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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-2731
--------
Tax-Free Investments Trust
------------------------------------------------
(Exact name of registrant as specified in charter)
11 Greenway Plaza, Suite 100 Houston, Texas 77046
-------------------------------------------------
(Address of principal executive offices) (Zip code)
Robert H. Graham 11 Greenway Plaza, Suite 100 Houston, Texas 77046
---------------------------------------------------------------------
(Name and address of agent for service)
Registrant's telephone number, including area code: (713) 626-1919
--------------
Date of fiscal year end: 3/31
----
Date of reporting period: 03/31/05
--------
Item 1. Reports to Stockholders.
TAX-FREE CASH RESERVE PORTFOLIO
Cash Management Class
TAX-FREE INVESTMENTS TRUST (TFIT)
March 31, 2005
Annual Report
[COVER IMAGE]
[YOUR GOALS. OUR SOLUTIONS.]
--REGISTERED TRADEMARK--
[1980-2005 25TH [AIM INVESTMENTS LOGO]
CASH MANAGEMENT LOGO] --REGISTERED TRADEMARK--
TAX-FREE CASH RESERVE PORTFOLIO
DEAR SHAREHOLDER:
[GRAHAM This is the annual report on the performance of the Cash
PHOTO] Management Class of the Tax-Free Cash Reserve Portfolio of
Tax-Free Investments Trust, a money market fund investing in
short-term municipal bonds of the highest credit ratings.
The report is for the fiscal year ended March 31, 2005.
ROBERT H. GRAHAM
The Tax-Free Cash Reserve Portfolio seeks to provide as
high a level of tax-exempt income as is consistent with
preservation of capital and maintenance of liquidity. The
Portfolio invests in high quality, short-term municipal
obligations, seeking to provide income exempt from federal
taxation. The Portfolio structure is driven to some extent
by the supply and availability of municipal securities.
Liquidity is managed with daily and weekly variable-rate
[WILLIAMSON demand notes.
PHOTO]
Through a combination of short-term cash management
vehicles and selective use of a longer maturity schedule for
higher yields, the Portfolio continued to provide attractive
returns. The Portfolio maintained a relatively short
MARK H. WILLIAMSON maturity structure to take advantage of any sudden rise in
market yields.
The Portfolio continued 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 Ratings. Portfolio ratings are
subject to change and are based on several factors,
including an analysis of a Portfolio's overall credit
quality, market price exposure and management.
The table below summaries important Portfolio data as of
fiscal year-end:
<Table>
<Caption>
================================= ===============================
YIELD WEIGHTED AVERAGE MATURITY
7 DAY SEC YIELD* MONTHLY YIELD* RANGE END OF FISCAL YEAR
1.81% 1.64% 25-42 Days 30 Days
================================= ===============================
======================================================================
NET ASSETS AT CLOSE OF FISCAL YEAR
$725.1 MILLION
*The seven-day SEC yield and monthly yield represent annualized
results for the period, net of fees and expenses, and exclude any
realized capital gains or losses. Yields will fluctuate. Had the
advisor and distributor not waived fees and/or reimbursed expenses,
seven-day and monthly yields would have been lower.
======================================================================
</Table>
MARKET CONDITIONS AFFECTING MONEY MARKET FUNDS
Economic activity expanded at a moderate pace throughout the fiscal year,
according to Beige Book economic commentaries published by the Federal Reserve
(the Fed) that cover the period.
o Gross domestic product (GDP), generally considered the broadest measure of
economic activity, grew at an annualized rate of 4.4% during 2004.
o The S&P 500--Registered Trademark-- Index returned 6.69% during the
fiscal year.
o The Fed reported a moderate increase in consumer spending, although auto
sales were lackluster. Travel and tourism and most service industries
reported improvements, and manufacturing activity also expanded. Housing
and residential construction was robust, according to the March Beige
Book.
In an effort to forestall the inflation that may accompany robust economic
growth, the Fed increased the federal funds target rate seven times in 0.25%
increments during the reporting period, bringing the rate to 2.75% on March 22,
2005. (The federal funds target rate is a benchmark interest rate used by banks
for overnight loans to one another.) Despite the increases, the Fed said
monetary policy remained accommodative.
These rate increases helped boost yields on short-term investments such as
money market funds. The impact of changes in the federal funds target rate is
generally felt in money market funds approximately two weeks after the
announcement of an increase or decrease, but the change in yields may not be
equivalent to the change in the federal funds target rate. Management made no
changes to strategy as a result of federal funds target rate increases.
TAX-FREE CASH RESERVE PORTFOLIO
IN CONCLUSION
We are pleased to send you this report on your investment. AIM is committed to
the primary goals of safety, liquidity and yield in institutional fund
management. We are also dedicated to customer service. Should you have comments
or questions about this report, please contact one of our representatives at
800-659-1005.
Sincerely,
<Table>
/s/ ROBERT H. GRAHAM /s/ MARK H. WILLIAMSON
Robert H. Graham Mark H. Williamson
Vice Chair & President, Tax-Free Investments Trust Chairman & President, A I M Advisors, Inc.
</Table>
May 20, 2005
The views and opinions expressed in this letter are those of A I M Advisors,
Inc. These views and opinions are subject to change at any time based on factors
such as market and economic conditions. These views and opinions may not be
relied upon as investment advice or recommendations, or as an offer for a
particular security. Statements of fact are from sources considered reliable,
but A I M Advisors, Inc. makes no representation or warranty as to their
completeness or accuracy. Although historical performance is no guarantee of
future results, these insights may help you understand our investment management
philosophy.
<Table>
<Caption>
===================================
PORTFOLIO COMPOSITION BY MATURITY The number of days to maturity of each holding is determined
in accordance with the provisions of Rule 2a-7 under the
IN DAYS, AS OF 3/31/05 Investment Company Act of 1940.
1-7 78.6%
8-14 0.9
15-60 4.8
61-120 7.3
121-180 3.1
181-240 3.7 The unmanaged Standard & Poor's Composite Index of 500 Stocks
241+ 1.6 (the S&P 500 Index) is an index of common stocks frequently
used as a general measure of U.S. stock market performance.
===================================
</Table>
THIS REPORT MUST BE ACCOMPANIED OR PRECEDED BY A CURRENTLY EFFECTIVE FUND
PROSPECTUS, WHICH CONTAINS MORE COMPLETE INFORMATION, INCLUDING FEES AND
EXPENSES. READ IT CAREFULLY BEFORE YOU INVEST OR SEND MONEY.
PERFORMANCE QUOTED IS PAST PERFORMANCE AND CANNOT GUARANTEE COMPARABLE FUTURE
RESULTS; CURRENT PERFORMANCE MAY BE LOWER OR HIGHER. VISIT AIMINVESTMENTS.COM
FOR THE MOST RECENT MONTH-END PERFORMANCE.
AN INVESTMENT IN THE FUND IS NOT INSURED OR GUARANTEED BY THE FEDERAL DEPOSIT
INSURANCE CORPORATION OR ANY OTHER GOVERNMENT AGENCY AND IS NOT A DEPOSIT OR
OTHER OBLIGATION OF, OR GUARANTEED BY, A DEPOSITORY INSTITUTION. ALTHOUGH THE
FUND SEEKS TO PRESERVE THE VALUE OF YOUR INVESTMENT AT $1.00 PER SHARE, IT IS
POSSIBLE TO LOSE MONEY BY INVESTING IN THE FUND.
TAX-FREE CASH RESERVE PORTFOLIO
CALCULATING YOUR ONGOING FUND EXPENSES
<Table>
EXAMPLE expenses that you paid over the period. and expenses may not be used to estimate
Simply divide your account value by $1,000 the actual ending account balance or
As a shareholder of the Fund, you incur (for example, an $8,600 account value expenses you paid for the period. You may
ongoing costs, including management fees divided by $1,000 = 8.6), then multiply use this information to compare the
and other Fund expenses. This example is the result by the number in the table ongoing costs of investing in the Fund and
intended to help you understand your under the heading entitled "Actual other funds. To do so, compare this 5%
ongoing costs (in dollars) of investing in Expenses Paid During Period" to estimate hypothetical example with the 5%
the Fund and to compare these costs with the expenses you paid on your account hypothetical examples that appear in the
ongoing costs of investing in other mutual during this period. shareholder reports of the other funds.
funds. The example is based on an
investment of $1,000 invested at the HYPOTHETICAL EXAMPLE FOR COMPARISON Please note that the expenses shown in
beginning of the period and held for the PURPOSES the table are meant to highlight your
entire period October 1, 2004, through ongoing costs only. Therefore, the
March 31, 2005. The table below also provides information hypothetical information is useful in
about hypothetical account values and comparing ongoing costs only, and will not
ACTUAL EXPENSES hypothetical expenses based on the Fund's help you determine the relative total
actual expense ratio and an assumed rate costs of owning different funds.
The table below provides information about of return of 5% per year before expenses,
actual account values and actual expenses. which is not the Fund's actual return. The
You may use the information in this table, hypothetical account values
together with the amount you invested, to
estimate the
====================================================================================================================================
ACTUAL HYPOTHETICAL
(5% ANNUAL RETURN BEFORE EXPENSES)
BEGINNING ACCOUNT ENDING ACCOUNT EXPENSES ENDING ACCOUNT EXPENSES
SHARE CLASS VALUE VALUE PAID DURING VALUE PAID DURING
(10/01/04) (3/31/05)(1) PERIOD(2) (3/31/05) PERIOD(2)
Cash Management $1,000.00 $1,007.30 $1.50 $1,023.40 $1.51
(1) The actual ending account value is based on the actual total return of the Fund for the period October 1, 2004, to March 31,
2005, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund's expense ratio
and a hypothetical annual return of 5% before expenses. The actual total cumulative return at net asset value for the period October
1, 2004, to March 31, 2005, was 0.73% for Cash Management Class shares.
(2) Expenses are equal to the Fund's annualized expense ratio (0.30% for Cash Management Class shares) multiplied by the average
account value over the period, multiplied by 182/365 (to reflect the one-half year period).
====================================================================================================================================
</Table>
SCHEDULE OF INVESTMENTS
March 31, 2005
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
MUNICIPAL NOTES-99.22%
ALABAMA-1.68%
Alabama (State of) Public School & College
Authority; Capital Improvement Series 1999
D RB
5.25%, 08/01/05 AA Aa3 $ 1,425 $ 1,440,302
- ---------------------------------------------------------------------------------------
Birmingham (City of) Public Educational
Building Authority Student Housing (CHF UAB
II LLC); VRD Series 2005 A RB (LOC-Regions
Bank Alabama)
2.30%, 07/01/37(b)(c) -- VMIG-1 6,000 6,000,000
- ---------------------------------------------------------------------------------------
Birmingham (City of) Public Parks &
Recreation Board (Children's Zoo Project);
VRD Series 2002 RB (LOC-AmSouth Bank)
2.40%, 05/01/07(b)(c) -- VMIG-1 1,725 1,725,000
- ---------------------------------------------------------------------------------------
Birmingham (City of) Public Parks &
Recreation Board (YMCA Project); Refunding
VRD Series 1996 RB (LOC-AmSouth Bank)
2.36%, 06/01/16(b)(c) -- VMIG-1 1,770 1,770,000
- ---------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Birmingham
Waterworks & Sewer Board); VRD Series
2002-6009 Class A COP (Acquired 11/05/02;
Cost $4,100,000)
2.32%, 01/01/43(c)(d)(e) A-1+ -- 4,100 4,100,000
- ---------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Birmingham
Waterworks & Sewer Board); VRD Series
2003-0007 Class A COP (Acquired 04/16/03;
Cost $7,370,000)
2.32%, 01/01/43(c)(d)(e) A-1+ -- 7,370 7,370,000
- ---------------------------------------------------------------------------------------
Elmore (County of) Ridge Improvement
District; Special Assessment VRD Series
2000 RB (LOC-AmSouth Bank)
2.30%, 10/01/25(b)(c) -- VMIG-1 13,335 13,335,000
- ---------------------------------------------------------------------------------------
Homewood (City of) Medical Clinic Board
(Lakeshore Foundation Project); Lease
Revenue VRD Series 2000 RB (LOC-AmSouth
Bank)
2.38%, 11/01/24(b)(c) A-1 -- 7,255 7,255,000
- ---------------------------------------------------------------------------------------
Mobile (City of); Port City Medical Clinic
Board (Infirmary Health); VRD Series 1998 B
RB
2.30%, 02/01/25(c)(f) A-1 VMIG-1 5,000 5,000,000
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
<Caption>
ALABAMA-(CONTINUED)
Montgomery (City of) Industrial Development
Board (Industrial Partners Project);
Refunding VRD Series 1989 IDR (LOC-SunTrust
Bank)
2.30%, 01/01/07(b)(c) -- Aa2 $ 430 $ 430,000
- ---------------------------------------------------------------------------------------
Oxford (City of); Unlimited Tax VRD Series
2003 GO Wts. (LOC- Branch Banking & Trust
Co.)
2.30%, 07/01/15(b)(c) -- VMIG-1 5,180 5,180,000
- ---------------------------------------------------------------------------------------
Tuscaloosa (City of) Educational Building
Authority (Stillman College Project);
Refunding Capital Improvement VRD Series
2002 A RB (LOC-AmSouth Bank)
2.40%, 10/01/23(b)(c) -- VMIG-1 2,519 2,519,000
=======================================================================================
56,124,302
=======================================================================================
ALASKA-0.04%
Alaska (State of) Industrial Development &
Export Authority (Safeway Inc. Projects);
Refunding VRD Series 1991 IDR (LOC-Deutsche
Bank A.G.)
2.15%, 06/01/05(b)(g)(h) A-1 -- 1,340 1,340,000
=======================================================================================
ARIZONA-0.83%
Apache (County of) Industrial Development
Authority (Tucson Electric Power Co.);
Floating Rate Series 1983 A IDR (LOC-Credit
Suisse First Boston)
2.35%, 12/15/18(b)(c) A-1 VMIG-1 8,225 8,225,000
- ---------------------------------------------------------------------------------------
Apache (County of) Industrial Development
Authority (Tucson Electric Power Co.-
SpringerValley); VRD Series 1985 IDR
(LOC-Credit Suisse First Boston)
2.35%, 12/01/20(b)(c) A-1 VMIG-1 1,000 1,000,000
- ---------------------------------------------------------------------------------------
Casa Grande (City of) Industrial Development
Authority (Center Park Apartments
Projects); Refunding Multi-Family Housing
VRD Series 2001 A IDR (CEP- Federal
National Mortgage Association)
2.33%, 06/15/31(c) -- VMIG-1 2,010 2,010,000
- ---------------------------------------------------------------------------------------
</Table>
F-1
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
ARIZONA-(CONTINUED)
Casa Grande (City of) Industrial Development
Authority (Quail Gardens Apartments);
Refunding Multi-Family Housing VRD Series
2001 A IDR (CEP-Federal National Mortgage
Association)
2.33%, 06/15/31(c) -- VMIG-1 $ 1,550 $ 1,550,000
- ---------------------------------------------------------------------------------------
Mesa (City of); Utility System Series 1995 RB
5.38%, 07/01/05(g)(i) AAA Aaa 1,000 1,018,554
- ---------------------------------------------------------------------------------------
Phoenix (City of) Industrial Development
Authority (Lynwood Apartments Project);
Refunding VRD Series 1994 IDR (CEP- Federal
Home Loan Bank of San Francisco)
2.34%, 10/01/25(c) A-1+ -- 5,825 5,825,000
- ---------------------------------------------------------------------------------------
Pima (County of) Industrial Development
Authority (El Dorado Hospital); VRD Series
2004 RB (LOC-Branch Banking & Trust Co.)
2.27%, 04/01/38(b)(c) -- VMIG-1 6,000 6,000,000
- ---------------------------------------------------------------------------------------
Pima (County of) Industrial Development
Authority (Tucson Electric Power
Co.-Irvington Road Project); VRD Series
1982 IDR (LOC-Credit Suisse First Boston)
2.32%, 10/01/22(b)(c) A-1 VMIG-1 2,000 2,000,000
=======================================================================================
27,628,554
=======================================================================================
ARKANSAS-0.07%
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.)
2.35%, 07/01/08(b)(c)(j) -- -- 2,500 2,500,000
=======================================================================================
CALIFORNIA-0.91%
California (State of) Economic Recovery; VRD
Series 2004 C-6 RB (LOC-Citibank N.A.)
2.28%, 07/01/23(b)(k) A-1+ VMIG-1 29,050 29,050,000
- ---------------------------------------------------------------------------------------
San Diego (County of) (Friends of Chabad
Lubavitch); VRD Series 2003 COP
(LOC-Comerica Bank)
2.38%, 01/01/23(b)(c)(j) -- -- 1,410 1,410,000
=======================================================================================
30,460,000
=======================================================================================
COLORADO-3.26%
Adams & Weld (Counties of) School District
No. 27J Brighton; Unlimited Tax Series 2004
GO
2.50%, 12/01/05(f) AAA Aaa 1,950 1,955,505
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
<Caption>
- ---------------------------------------------------------------------------------------
COLORADO-(CONTINUED)
Colorado (State of) Educational & Cultural
Facilities Authority (Denver Art Museum
Project); VRD Series 2004 RB (LOC-Wells
Fargo Bank N.A.)
2.28%, 01/01/34(b)(c) A-1+ -- $ 4,950 $ 4,950,000
- ---------------------------------------------------------------------------------------
Colorado (State of) Educational & Cultural
Facilities Authority (Regis Jesuit High
School Project); VRD Series 2003 RB
(LOC-Wells Fargo Bank N.A.)
2.28%, 12/01/33(b)(c) A-1+ -- 5,415 5,415,000
- ---------------------------------------------------------------------------------------
Colorado (State of) Educational & Cultural
Facilities Authority (Southeastern Baptist
Theological Seminary); VRD Series 2005
(LOC-Branch Banking & Trust Co.)
2.27%, 03/01/25(b)(c) -- VMIG-1 8,955 8,955,000
- ---------------------------------------------------------------------------------------
Colorado (State of) Health Facilities
Authority (Arapahoe House Project); VRD
Series 2004 A RB (LOC-Wells Fargo Bank
N.A.)
2.35%, 04/01/24(b)(c) A-1+ -- 1,200 1,200,000
- ---------------------------------------------------------------------------------------
Colorado (State of) Health Facilities
Authority (Bethesda Collinwood); Refunding
VRD Series 2004 B RB (LOC-ABN AMRO Bank
N.V.)
2.30%, 08/01/34(b)(c) A-1 -- 4,230 4,230,000
- ---------------------------------------------------------------------------------------
Colorado (State of) Health Facilities
Authority (Bethesda Living Centers);
Refunding VRD Series 2004 A RB (LOC-ABN
AMRO Bank N.V.)
2.30%, 08/01/34(b)(c) A-1 -- 5,270 5,270,000
- ---------------------------------------------------------------------------------------
Colorado (State of) Health Facilities
Authority (Bethesda Living Centers
Project); VRD Series 1999 RB (LOC-ABN AMRO
Bank N.V.)
2.30%, 08/15/30(b)(c) A-1 -- 9,855 9,855,000
- ---------------------------------------------------------------------------------------
Colorado (State of) Health Facilities
Authority (Catholic Health Initiatives);
VRD Series 2000 B RB
2.30%, 12/01/20(c) A-1+ VMIG-1 2,000 2,000,000
- ---------------------------------------------------------------------------------------
Colorado (State of) Health Facilities
Authority (Christian Living Project);
Refunding VRD Series 2002 A RB (LOC- U.S.
Bank N.A.)
2.32%, 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.)
2.28%, 12/01/20(b)(c) A-1+ -- 3,580 3,580,000
- ---------------------------------------------------------------------------------------
</Table>
F-2
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
COLORADO-(CONTINUED)
Colorado (State of) Health Facilities
Authority (Golden West Manor Inc. Project);
VRD Series 2002 A RB (LOC-U.S. Bank N.A.)
2.32%, 07/01/32(b)(c) A-1+ -- $ 4,210 $ 4,210,000
- ---------------------------------------------------------------------------------------
Colorado Springs (City of) (Pikes Peak Mental
Health); VRD Series 2003 RB (LOC-Wells
Fargo Bank N.A.)
2.28%, 03/15/23(b)(c) A-1+ -- 3,615 3,615,000
- ---------------------------------------------------------------------------------------
Concord (Metropolitan District of); Refunding
& Improvement Unlimited Tax Series 2004 GO
(LOC-Wells Fargo Bank N.A.)
2.25%, 12/01/05(b)(g)(l) A-1+ -- 1,585 1,585,000
- ---------------------------------------------------------------------------------------
Crystal Valley (Metropolitan) District No. 1;
VRD Series 2004 RB (LOC-Wells Fargo Bank
N.A.)
2.28%, 10/01/34(b)(c) A-1+ -- 2,795 2,795,000
- ---------------------------------------------------------------------------------------
Denver (City & County of) (Cottonwood Creek);
Refunding Multi-Family Housing Revenue VRD
Series 1989 A RB (CEP- Federal Home Loan
Mortgage Corp.) (Acquired 12/28/04; Cost
$1,000,000)
2.30%, 04/15/14(c)(e) A-1+ -- 1,000 1,000,000
- ---------------------------------------------------------------------------------------
Denver (City & County of) (Kentucky Circle
Village Project); VRD Series 2000 RB (LOC-
Mountain States Bank, U.S. Bank N.A.)
2.32%, 10/01/29(b)(c) A-1+ -- 1,740 1,740,000
- ---------------------------------------------------------------------------------------
Denver (City & County of) (Wellington E Web);
Refunding VRD Series 2003 C2 COP
2.30%, 12/01/29(c)(f) A-1+ VMIG-1 2,245 2,245,000
- ---------------------------------------------------------------------------------------
Denver (City & County of) (Colorado
Convention Center Project); Excise Tax VRD
Series 2001 B RB
2.30%, 09/01/25(c)(f) A-1+ VMIG-1 2,905 2,905,000
- ---------------------------------------------------------------------------------------
Idaho Springs (City of); (Safeway Inc.
Project); Refunding VRD Series 1993 IDR
(LOC-Deutsche Bank A.G.)
2.15%, 06/01/05(b)(g)(h) A-1+ -- 940 940,000
- ---------------------------------------------------------------------------------------
Jefferson (County of) School District No.
R-001; Series 2004 A TAN
3.00%, 06/30/05 SP-1+ MIG-1 30,000 30,109,955
- ---------------------------------------------------------------------------------------
Jefferson (County of) Section 14 Metropolitan
District; Refunding Unlimited Tax Series
2004 GO (LOC-U.S. Bank N.A.)
2.25%, 12/01/05(b)(g)(l) A-1+ -- 1,200 1,200,000
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
<Caption>
COLORADO-(CONTINUED)
Kipling Ridge (Metropolitan) District; VRD
Unlimited Tax Series 2005 GO (LOC-U.S. Bank
N.A.)
2.32%, 12/01/23(b)(c) A-1+ -- $ 3,725 $ 3,725,000
- ---------------------------------------------------------------------------------------
Lafayette (City of) Exempla Improvement
District (Special Improvement No. 2-01);
Refunding Special Assessment VRD Series
2002 RB (LOC-Wells Fargo Bank N.A.)
2.32%, 12/01/22(b)(c) A-1+ -- 1,000 1,000,000
- ---------------------------------------------------------------------------------------
Westminster (City of) Water & Wastewater
Utility Enterprise; VRD Series 2002 RB
2.32%, 12/01/22(c)(f) A-1+ VMIG-1 1,415 1,415,000
=======================================================================================
109,295,460
=======================================================================================
CONNECTICUT-0.04%
Connecticut (State of) Development Authority
(Central Vermont Public Service); Floating
Rate Series 1985 PCR (LOC-Royal Bank of
Scotland)
2.05%, 12/01/15(b)(m) A-1+ -- 1,400 1,400,000
=======================================================================================
DELAWARE-0.25%
Delaware (State of) Economic Development
Authority (Independent School Inc.
Project); VRD Series 2003 RB (LOC-Royal
Bank of Scotland)
2.28%, 07/01/33(b)(c) A-1+ -- 8,250 8,250,000
=======================================================================================
DISTRICT OF COLUMBIA-1.86%
District of Columbia (American Library
Association); VRD Series 2005 RB (LOC-Bank
of America, N.A.)
2.32%, 02/01/35(b)(c) -- VMIG-1 3,175 3,175,000
- ---------------------------------------------------------------------------------------
District of Columbia (American Psychology
Association); VRD Series 2003 RB (LOC-Bank
of America, N.A.)
2.35%, 03/01/28(b)(c) A-1+ -- 970 970,000
- ---------------------------------------------------------------------------------------
District of Columbia (Consortium Issue); VRD
Series 1998 RB (LOC-Wachovia Bank, N.A.)
2.29%, 07/01/23(b)(c) A-1 -- 15,755 15,755,000
- ---------------------------------------------------------------------------------------
District of Columbia (Resources for the
Future Inc.); VRD Series 1998 RB
(LOC-Wachovia Bank, N.A.)
2.35%, 08/01/29(b)(c) A-1 -- 2,015 2,015,000
- ---------------------------------------------------------------------------------------
District of Columbia (The John F. Kennedy
Center for the Performing Arts); VRD
Series 1999 RB
2.26%, 10/01/29(c)(f) A-1+ VMIG-1 19,820 19,820,000
- ---------------------------------------------------------------------------------------
</Table>
F-3
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA-(CONTINUED)
District of Columbia Pooled Loan Program
(American Council on Education); VRD Series
1998 A RB (LOC-Bank of America, N.A.)
(Acquired 01/06/08; Cost $10,000,000)
2.30%, 01/01/29(b)(c)(e) A-1+ -- $10,000 $ 10,000,000
- ---------------------------------------------------------------------------------------
District of Columbia; Refunding Unlimited Tax
Series 1993 B-1 GO
5.30%, 06/01/05(f) AAA Aaa 6,000 6,032,755
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (District of Columbia Water
& Sewer Authority); VRD Series 2003 A12 RB
(Acquired 02/24/03; Cost $4,640,000)
2.35%, 10/01/17(c)(d)(e) -- VMIG-1 4,640 4,640,000
=======================================================================================
62,407,755
=======================================================================================
FLORIDA-3.99%
ABN AMRO Munitops Ctfs. Trust (County of
Escambia); Refunding Florida Non-AMT VRD
Series 2002-24 Ctfs. (Acquired 10/24/02;
Cost $5,000,000)
2.31%, 10/01/10(c)(d)(e) -- VMIG-1 5,000 5,000,000
- ---------------------------------------------------------------------------------------
Alachua (County of) Health Facilities
Authority (Shands Teaching Hospital and
Clinics Inc.); VRD Series 2002 A RB
(LOC-SunTrust Bank)
2.29%, 12/01/12(b)(k) -- VMIG-1 10,485 10,485,000
- ---------------------------------------------------------------------------------------
Capital Projects Finance Authority (Capital
Projects Loan Program); VRD Series 1997 A
RB
2.31%, 08/01/17(c)(f) A-1+ -- 800 800,000
- ---------------------------------------------------------------------------------------
Collier (County of) Health Facilities
Authority (Cleveland Health Clinic); VRD
Hospital Series 2003 C-2 BAN (LOC- JPMorgan
Chase Bank)
2.11%, 05/11/05(b)(g)(l) A-1+ VMIG-1 3,500 3,500,000
- ---------------------------------------------------------------------------------------
Collier (County of) Industrial Development
Authority (Redlands Christian Migrant
Association Inc.); VRD Series 2001 RB (LOC-
Bank of America, N.A.)
2.35%, 12/01/26(b)(c)(j) -- -- 2,800 2,800,000
- ---------------------------------------------------------------------------------------
Dade (County of) Industrial Development
Authority (Dolphin's Stadium Project); VRD
Series 1985 D RB (LOC-Societe Generale)
2.26%, 01/01/16(b)(c) A-1+ -- 2,000 2,000,000
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
<Caption>
- ---------------------------------------------------------------------------------------
FLORIDA-(CONTINUED)
Florida (State of) Housing Finance Agency
(Huntington Place Apartments LP); VRD
Multifamily Housing Series 1985 GGG RB
(CEP-Federal National Mortgage Association)
2.28%, 12/01/13(c) A-1+ -- $ 4,500 $ 4,500,000
- ---------------------------------------------------------------------------------------
Jacksonville (City of) (Baptist Medical
Center); Commercial Paper Series 2004 RB
(LOC-Bank of America, N.A.)
1.93%, 07/27/05(b) A-1+ -- 18,000 18,000,000
- ---------------------------------------------------------------------------------------
Jacksonville (City of) Health Facilities
Authority (Samuel C. Taylor Foundation
Project); VRD Series 1998 RB (LOC-Bank of
America, N.A.) (Acquired 02/20/01; Cost
$2,600,000)
2.35%, 12/01/23(b)(c)(e)(j) -- -- 2,600 2,600,000
- ---------------------------------------------------------------------------------------
Jacksonville (City of) Health Facilities
Authority (University of Florida
Jacksonville Physicians, Inc.); VRD Series
2002 RB (LOC- Bank of America, N.A.)
2.35%, 06/01/22(b)(c) -- VMIG-1 12,140 12,140,000
- ---------------------------------------------------------------------------------------
Lee (County of) Industrial Development
Authority (Hope of Southwest Florida Inc.
Project); Refunding & Improvement VRD
Series 2004 RB (LOC-SunTrust Bank)
2.29%, 10/01/23(b)(j)(k) -- -- 4,000 4,000,000
- ---------------------------------------------------------------------------------------
Miami-Dade (County of) Educational Facilities
Authority (Carlos Albizu University
Project); VRD Series 2000 RB (LOC-Bank of
America, N.A.)
2.35%, 12/01/25(b)(c)(j) -- -- 9,200 9,200,000
- ---------------------------------------------------------------------------------------
Miami-Dade (County of) Industrial Development
Authority (Palmer Trinity Private School
Project); VRD Series 1999 IDR (LOC-Bank of
America, N.A.)
2.35%, 12/01/19(b)(c)(j) -- -- 3,100 3,100,000
- ---------------------------------------------------------------------------------------
Morgan Stanley & Co. Inc. Trust Floater Ctfs.
(State of Florida Department of
Environmental Protection); Floating Rate
Trust Ctfs. VRD Series 2002-722 RB
(Acquired 11/13/02; Cost $9,850,000)
2.32%, 07/01/22(c)(d)(e) A-1 -- 9,850 9,850,000
- ---------------------------------------------------------------------------------------
North Miami (City of) Educational Facilities
(Miami Country Day School Project); VRD
Series 1999 RB (LOC-Bank of America, N.A.)
2.35%, 08/01/19(b)(c)(j) -- -- 1,750 1,750,000
- ---------------------------------------------------------------------------------------
</Table>
F-4
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
FLORIDA-(CONTINUED)
Orange (County of) Health Facilities
Authority (Adventist Health System/Sunbelt
Inc.); VRD Series 1992 RB (LOC-SunTrust
Bank)
2.30%, 11/15/14(b)(c) A-1+ VMIG-1 $ 9,950 $ 9,950,000
- ---------------------------------------------------------------------------------------
Orange (County of) Health Facilities
Authority (Presbyterian Retirement
Communities Project); VRD Series 1998 RB
(LOC-Bank of America, N.A.)
2.35%, 11/01/28(b)(c)(j) -- -- 7,970 7,970,000
- ---------------------------------------------------------------------------------------
Orlando & Orange (Counties of) Expressway
Authority; VRD Sub Series 2005 A-3 RB
2.28%, 07/01/40(c)(f) A-1+ VMIG-1 10,000 10,000,000
- ---------------------------------------------------------------------------------------
Palm Beach (County of) Educational Facilities
Authority (Atlantic College Project);
Educational Facilities VRD Series 2001 RB
(LOC-Bank of America, N.A.)
2.35%, 12/01/31(b)(c)(j) -- -- 2,700 2,700,000
- ---------------------------------------------------------------------------------------
Palm Beach (County of) Health Facilities
Authority (Jupiter Medical Center Inc.);
VRD Series 1999 B RB (LOC-Wachovia Bank,
N.A.)
2.35%, 08/01/20(b)(c)(j) -- -- 7,250 7,250,000
- ---------------------------------------------------------------------------------------
Tampa (City of) (Agency for Community
Treatment DACCO Project); VRD Series 2001
RB (LOC-Bank of America, N.A.)
2.35%, 07/01/22(b)(c)(j) -- -- 5,080 5,080,000
- ---------------------------------------------------------------------------------------
University of North Florida Foundation, Inc.
(Parking System); VRD Series 1998 RB
(LOC-Wachovia Bank, N.A.)
2.30%, 05/01/28(b)(c) A-1 -- 800 800,000
=======================================================================================
133,475,000
=======================================================================================
GEORGIA-3.94%
ABN AMRO Munitops Ctfs. Trust (State of
Georgia); Non-AMT VRD Series 2004-15 Ctfs.
(Acquired 10/12/04; Cost $9,995,000)
2.32%, 04/06/05(c)(d)(e) -- VMIG-1 9,995 9,995,000
- ---------------------------------------------------------------------------------------
Bartow (County of) School District; Unlimited
Tax Series 2003 GO
3.00%, 11/01/05 AA+ -- 950 954,922
- ---------------------------------------------------------------------------------------
Burke (County of) Development Authority
(Oglethorpe Power Corp.); VRD Series 1994 A
PCR
2.30%, 01/01/19(c)(f) A-1+ VMIG-1 17,700 17,700,000
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
<Caption>
- ---------------------------------------------------------------------------------------
GEORGIA-(CONTINUED)
CDC Municipal Products, Inc. (Forsyth (County
of) School District); VRD Unlimited Tax
Series 2004-6 A GO (Acquired 10/20/04; Cost
$3,000,000)
2.32%, 02/01/18(c)(d)(e) A-1+ -- $ 3,000 $ 3,000,000
- ---------------------------------------------------------------------------------------
Clayton (County of) Development Authority
(Delta Airlines Project); Special
Facilities VRD Series 2000 A RB
(CEP-General Electric Capital Corp.)
2.32%, 06/01/29(c) A-1+ VMIG-1 12,000 12,000,000
- ---------------------------------------------------------------------------------------
Cobb (County of) Development Authority (YMCA
of Cobb County); VRD Series 2003 RB (LOC-
Branch Banking & Trust Co.)
2.27%, 12/01/25(b)(c) -- VMIG-1 1,000 1,000,000
- ---------------------------------------------------------------------------------------
Cobb (County of) Housing Authority (Tamarron
Apartments Project); Refunding Multi-Family
Housing VRD Series 2003 RB (CEP- Federal
Home Loan Mortgage Corp.)
2.30%, 03/01/24(c) A-1+ -- 4,820 4,820,000
- ---------------------------------------------------------------------------------------
DeKalb (County of) Hospital Authority (DeKalb
Medical Center Inc. Project); VRD Series
2000 B RB (LOC-Wachovia Bank, N.A.)
2.29%, 10/01/25(b)(c) -- VMIG-1 10,450 10,450,000
- ---------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (State of Georgia);
VRD Series 2000-1001 Class C COP (Acquired
07/26/00; Cost $20,000,000)
2.32%, 07/01/15(c)(d)(e) A-1+ -- 20,000 20,000,000
- ---------------------------------------------------------------------------------------
Floyd (County of) Development Authority
(Shorter College Project); VRD Series 1998
RB (LOC-SunTrust Bank)
2.43%, 06/01/17(b)(c) A-1+ -- 1,800 1,800,000
- ---------------------------------------------------------------------------------------
Fulton (County of) Development Authority
(Bridgeway Foundation for Education
Project); Educational Facilities VRD Series
2000 RB (LOC-Wachovia Bank, N.A.)
2.34%, 06/01/15(b)(c) A-1 -- 1,400 1,400,000
- ---------------------------------------------------------------------------------------
Fulton (County of) Development Authority
(Pace Academy Inc. Project); VRD Series
1998 RB (LOC-Bank of America, N.A.)
2.30%, 07/01/18(b)(c)(j) -- -- 5,375 5,375,000
- ---------------------------------------------------------------------------------------
Fulton (County of) Development Authority
(Woodward Academy Inc. Project); VRD Series
2002 RB (LOC-SunTrust Bank)
2.29%, 12/01/27(b)(c) -- VMIG-1 6,400 6,400,000
- ---------------------------------------------------------------------------------------
</Table>
F-5
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
GEORGIA-(CONTINUED)
Fulton (County of) Hospital Authority
(Northside Hospital Inc.); VRD Series 2003
A RAN (LOC-Wachovia Bank, N.A.)
2.29%, 10/01/18(b)(c) -- VMIG-1 $28,080 $ 28,080,000
- ---------------------------------------------------------------------------------------
Smyrna (City of) Hospital Authority
(Ridgeview Institute Inc. Project); VRD
Series 2002 RB (LOC- Wachovia Bank, N.A.)
2.34%, 11/01/27(b)(c) -- VMIG-1 2,060 2,060,000
- ---------------------------------------------------------------------------------------
Tallapoosa (City of) Development Authority
(U.S. Can Co. Project); VRD Series 1994
RB(LOC- Deutsche Bank A.G.)
2.35%, 02/01/15(b)(c) A-1 -- 2,000 2,000,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (City of Dalton); Utilities
VRD Series 2003 A02 RB (Acquired 08/25/04;
Cost $4,860,000)
2.35%, 01/01/12(c)(d)(e) -- VMIG-1 4,860 4,860,000
=======================================================================================
131,894,922
=======================================================================================
HAWAII-0.29%
Eagle Tax Exempt Trust (State of Hawaii); VRD
Series 2000-1101 COP (Acquired 01/11/01;
Cost $6,000,000)
2.32%, 12/01/16(c)(d)(e) A-1+ -- 6,000 6,000,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (State of Hawaii); Unlimited
Tax VRD Series 2003 A16 GO (Acquired
02/27/03; Cost $3,880,000)
2.35%, 07/01/18(c)(d)(e) -- VMIG-1 3,880 3,880,000
=======================================================================================
9,880,000
=======================================================================================
IDAHO-0.36%
Custer (County of) Pollution Control (Amoco
Oil Co.-Standard Oil Industry Project); VRD
Series 1983 RB
1.55%, 04/01/05(g)(h) A-1+ Aa1 10,000 10,000,000
- ---------------------------------------------------------------------------------------
Magic Valley Healthcare System Inc. (Magic
Valley Regional Medical Center Project);
VRD Series 2001 RB (LOC-Wells Fargo Bank
N.A.)
2.28%, 12/01/21(b)(c) -- VMIG-1 2,040 2,040,000
=======================================================================================
12,040,000
=======================================================================================
ILLINOIS-14.93%
ABN AMRO Munitops Ctfs. Trust (City of
Chicago); Refunding Multi-State Non-AMT VRD
Limited Tax Series 2001-34 Ctfs. (Acquired
11/15/01; Cost $10,000,000)
2.33%, 07/01/07(c)(d)(e) -- VMIG-1 10,000 10,000,000
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
<Caption>
- ---------------------------------------------------------------------------------------
ILLINOIS-(CONTINUED)
Bear Stearns Municipal Securities Trust Ctfs.
(State of Illinois Sales Tax); VRD Series
1998-25 A RB (Acquired 08/26/99; Cost
$10,000,000)
2.30%, 03/15/07(c)(d)(e) A-1 Aa2 $10,000 $ 10,000,000
- ---------------------------------------------------------------------------------------
Bear Stearns Municipal Securities Trust Ctfs.
(State of Illinois); VRD Series 2002-190 A
RB (Acquired 05/06/02; Cost $10,130,00)
2.30%, 06/05/14(c)(d)(e) A-1 -- 10,130 10,130,000
- ---------------------------------------------------------------------------------------
Chicago (City of); VRD Limited Tax Obligation
Tender Series 2004 GO (LOC-State Street
Bank & Trust Co.)
2.20%, 12/08/05(b)(g)(l) SP-1+ MIG-1 7,000 7,000,000
- ---------------------------------------------------------------------------------------
Chicago (City of); Refunding Water Revenue
Second Lien VRD Series 2004 RB
2.28%, 11/01/31(c)(f) A-1+ VMIG-1 30,000 30,000,000
- ---------------------------------------------------------------------------------------
Cook (County of) (Catholic Theological Union
Project); VRD Series 2005 RB (LOC-Bank of
Montreal)
2.30%, 02/01/35(b)(c) -- VMIG-1 4,000 4,000,000
- ---------------------------------------------------------------------------------------
Cook (County of) High School District No. 201
(J. Sterling Morton Township); School
Limited Tax Series 2004 GO
4.38%, 12/01/05(f) -- Aaa 5,000 5,074,796
- ---------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Chicago Park
District); VRD Unlimited Tax Series
2002-1306 A COP (Acquired 05/02/02; Cost
$5,500,000)
2.32%, 01/01/29(c)(d)(e) A-1+ -- 5,500 5,500,000
- ---------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Chicago
Public Building Commission); VRD Series
2003-0015 A COP (Acquired 05/14/03; Cost
$2,800,000)
2.32%, 12/01/14(c)(d)(e) A-1+ -- 2,800 2,800,000
- ---------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Chicago Water
& Sewer); VRD Series 2001-1308 COP
(Acquired 12/12/01; Cost $8,655,000)
2.32%, 11/01/26(c)(d)(e) A-1+ -- 8,655 8,655,000
- ---------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Chicago); VRD
Series 2001-1305 COP (Acquired 04/02/01;
Cost $4,950,000)
2.43%, 01/01/35(c)(d)(e) A-1+ -- 4,950 4,950,000
- ---------------------------------------------------------------------------------------
</Table>
F-6
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
ILLINOIS-(CONTINUED)
Eagle Tax Exempt Trust (County of Cook
Regional Transportation Authority); VRD
Series 2000-1303 COP (Acquired 03/26/01;
Cost $19,000,000)
2.32%, 07/01/23(c)(d)(e) A-1+ -- $19,000 $ 19,000,000
- ---------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (State of Illinois);
VRD Series 2000-1304 COP (Acquired
06/27/00; Cost $7,340,000)
2.32%, 06/01/21(c)(d)(e) A-1+ -- 7,340 7,340,000
- ---------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (State of Illinois);
VRD Unlimited Tax Series 2003-0023 A COP
(Acquired 06/12/03; Cost $3,775,000)
2.32%, 06/01/15(c)(d)(e) A-1+ -- 3,775 3,775,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (American College of Surgeons);
VRD Series 1996 RB (LOC-Northern Trust Co.)
2.17%, 08/01/26(b)(c) A-1+ -- 6,120 6,120,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (BAPS Inc. Project); VRD Series
2002 RB (LOC-Comerica Bank)
2.30%, 06/01/17(b)(c) A-1 -- 8,385 8,385,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (British Home for Retired Men &
Women); VRD Series 2001 RB (LOC-ABN AMRO
Bank N.V.)
2.30%, 11/01/27(b)(c) A-1 -- 8,740 8,740,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (Chicago Shakespeare Theater
Project); VRD Series 1999 RB (LOC-ABN AMRO
Bank N.V.) (Acquired 09/24/03; Cost
$4,100,000)
2.30%, 01/01/19(b)(c)(e) A-1 -- 4,100 4,100,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (Embers Elementary School
Project); Educational Facilities VRD Series
2002 RB (LOC-ABN AMRO Bank N.V.) (Acquired
11/04/03; Cost $2,250,000)
2.31%, 04/01/32(b)(c)(e) A-1 -- 2,250 2,250,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (Fenwick High School Project);
VRD Series 1997 RB (LOC-JPMorgan Chase
Bank)
2.30%, 03/01/32(b)(c) A-1+ -- 6,200 6,200,000
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
<Caption>
- ---------------------------------------------------------------------------------------
ILLINOIS-(CONTINUED)
Illinois (State of) Development Finance
Authority (Institute of Gas Technology
Project); VRD Series 1999 IDR (LOC-Bank of
Montreal)
2.33%, 09/01/24(b)(c) A-1+ -- $ 2,000 $ 2,000,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (Lyric Opera of Chicago Project);
VRD Series 1994 RB (LOC-Northern Trust Co.,
Bank of Montreal, JPMorgan Chase Bank)
2.30%, 12/01/28(b)(c) A-1+ VMIG-1 49,800 49,800,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (Mount Carmel High School
Project); VRD Series 2003 RB (LOC-JPMorgan
Chase Bank)
2.30%, 07/01/33(b)(c) -- VMIG-1 5,600 5,600,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (The Museum of Contemporary Art
Project); VRD Series 1994 RB (LOC- JPMorgan
Chase Bank, Northern Trust Co.)
2.30%, 02/01/29(b)(c) A-1 VMIG-1 14,950 14,950,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (North Shore Country Day School);
VRD Series 2003 RB (LOC-Northern Trust Co.)
2.30%, 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-ABN AMRO
Bank N.V.) (Acquired 01/29/03; Cost
$2,975,000)
2.30%, 07/01/41(b)(c)(e) 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)
2.30%, 07/01/33(b)(c) -- VMIG-1 4,600 4,600,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (West Central Illinois
Educational Project); VRD Series 2002 RB
(LOC-JPMorgan Chase Bank)
2.30%, 09/01/32(b)(c) -- VMIG-1 4,800 4,800,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Educational Facilities
Authority (Aurora University); VRD Cultural
Pooled Financing Series 1998 RB (LOC- Bank
of America, N.A.)
2.32%, 03/01/28(b)(c) A-1+ -- 6,670 6,670,000
- ---------------------------------------------------------------------------------------
</Table>
F-7
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
ILLINOIS-(CONTINUED)
Illinois (State of) Educational Facilities
Authority (Aurora University); VRD Series
2002 RB (LOC-Fifth Third Bank)
2.35%, 03/01/32(b)(c) -- VMIG-1 $ 3,300 $ 3,300,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Educational Facilities
Authority (Blackburn University); Cultural
Pooled Financing VRD Series 1999 RB
(LOC-Bank of America, N.A.)
2.32%, 07/01/29(b)(c) A-1+ -- 1,385 1,385,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Educational Facilities
Authority (Chicago Childrens Museum); VRD
Series 1994 RB (LOC-JPMorgan Chase Bank)
2.30%, 02/01/28(b)(c) A-1 VMIG-1 4,250 4,250,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Educational Facilities
Authority (Lincoln Park Society); VRD
Series 1999 RB (LOC-JPMorgan Chase Bank)
2.30%, 01/01/29(b)(c) A-1+ -- 2,825 2,825,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Educational Facilities
Authority (National Louis University); VRD
Series 1999 B RB (LOC-JPMorgan Chase Bank)
2.30%, 06/01/29(b)(c) A-1+ -- 2,300 2,300,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Finance Authority
(Illinois Institute of Technology); VRD
Series 2004 RB (LOC-Bank of Montreal)
2.30%, 12/01/24(b)(c) -- VMIG-1 5,000 5,000,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Finance Authority (Jewish
Charities); VRD Series 2004 A RN (LOC-Bank
of Montreal)
2.30%, 06/30/05(b)(c) A-1+ -- 7,630 7,630,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Finance Authority (Kohl
Children's Museum); VRD Series 2004 RB
(LOC-Fifth Third Bank)
2.30%, 07/01/34(b)(c) -- VMIG-1 2,680 2,680,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Finance Authority (Mercy
Alliance Project); VRD Series 2005 RB
(LOC-M&I Marshall & Ilsley Bank)
2.31%, 02/15/35(b)(c) -- VMIG-1 7,000 7,000,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Finance Authority
(Richard H. Driehaus Museum); VRD Series
2005 RB (LOC- Northern Trust Co.)
2.30%, 02/01/35(b)(c) -- VMIG-1 2,900 2,900,000
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
<Caption>
- ---------------------------------------------------------------------------------------
ILLINOIS-(CONTINUED)
Illinois (State of) Finance Authority
(Sunshine Through Golf Foundation Project);
VRD Series 2004 A RB (LOC-ABN AMRO Bank
N.V.)
2.31%, 11/01/24(b)(c) A-1 -- $ 2,100 $ 2,100,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Finance Authority; VRD
Series 2005 RAN (LOC-Bank of Montreal)
2.30%, 06/30/05(b)(c) A-1+ -- 3,300 3,300,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Health Facilities
Authority (Bensenville Home Society); VRD
Series 1989 A RB (LOC-JPMorgan Chase Bank)
2.32%, 02/15/19(b)(c) A-1 -- 1,100 1,100,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Health Facilities
Authority (OSF Healthcare System); VRD
Series 2002 RB (LOC-Fifth Third Bank)
2.27%, 11/15/27(b)(k) A-1+ VMIG-1 7,100 7,100,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Health Facilities
Authority (Peace Memorial Ministries); VRD
Series 2003 B RB (LOC-ABN AMRO Bank N.V.)
2.30%, 08/15/33(b)(c) A-1 -- 9,845 9,845,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Health Facilities
Authority (St. Lukes Medical Center); VRD
Series 1998 B RB
2.28%, 11/15/23(c)(f) A-1+ VMIG-1 1,000 1,000,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Health Facilities
Authority; Revolving Fund Pooled VRD Series
1985 C RB (LOC- JPMorgan Chase Bank)
2.30%, 08/01/15(b)(c) A-1+ VMIG-1 7,000 7,000,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Health Facilities
(Franciscan Eldercare Service); VRD Series
2001 RB (LOC-ABN AMRO Bank N.V.)
2.30%, 05/15/32(b)(c) A-1 -- 10,800 10,800,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Regional Transportation
Authority; Series 1994 A RB
5.80%, 06/01/05(f) AAA Aaa 3,300 3,321,356
- ---------------------------------------------------------------------------------------
Illinois (State of) Toll Highway Authority;
Refunding Toll Highway VRD Series 1998 B RB
2.25%, 01/01/16(c)(f) -- VMIG-1 15,900 15,900,000
- ---------------------------------------------------------------------------------------
2.25%, 01/01/17(c)(f) -- VMIG-1 4,600 4,600,000
- ---------------------------------------------------------------------------------------
Lombard (City of) (Clover Creek Apartments
Project); VRD Multi-Family Housing Series
2000 RB (CEP-Federal National Mortgage
Association)
2.31%, 12/15/30(c) A-1+ -- 14,855 14,855,000
- ---------------------------------------------------------------------------------------
</Table>
F-8
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
ILLINOIS-(CONTINUED)
Macon (County of) (Millikin University); VRD
Series 1999 RB
2.30%, 10/01/28(c)(f) A-1+ -- $ 4,500 $ 4,500,000
- ---------------------------------------------------------------------------------------
McCook (City of) (Illinois Saint Andrew
Society); VRD Series 1996 A RB
(LOC-Northern Trust Co.)
2.32%, 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-ABN AMRO Bank
N.V.)
2.30%, 12/01/14(b)(c) A-1 -- 2,470 2,470,000
- ---------------------------------------------------------------------------------------
Quincy (City of) (Blessing Hospital Project);
VRD Series 2004 RB (LOC-JPMorgan Chase
Bank)
2.30%, 11/15/33(b)(c) A-1+ VMIG-1 13,900 13,900,000
- ---------------------------------------------------------------------------------------
Rochelle (City of) Hospital Facility
(Rochelle Community Hospital Project); VRD
Series 2004 RB (LOC-JPMorgan Chase Bank.)
2.30%, 08/01/34(b)(c) -- VMIG-1 5,200 5,200,000
- ---------------------------------------------------------------------------------------
Rockford (City of) (Wesley Willows); VRD
Series 2002 RB (LOC-M&I Marshall & Isley
Bank)
2.31%, 04/01/32(b)(k) A-1 -- 9,000 9,000,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (Central Lake County Joint
Action Water Agency); VRD Series 2003 B18
RB (Acquired 02/19/03; Cost $3,150,000)
2.35%, 05/01/20(c)(d)(e) -- VMIG-1 3,150 3,150,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (City of Chicago Board of
Education); VRD Unlimited Tax Series 2000
A4 GO (Acquired 11/12/03; Cost $4,845,000)
2.11%, 11/10/05(d)(e)(g)(l)(n) -- VMIG-1 4,845 4,845,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (City of Chicago Emergency
Telephone System); VRD Limited Tax Series
2002 A44 GO (Acquired 08/02/02; Cost
$7,845,000)
2.35%, 01/01/20(c)(d)(e) -- VMIG-1 7,845 7,845,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (City of Chicago); VRD
Limited Tax Series 2000 A12 GO (Acquired
10/13/00; Cost $10,000,000)
2.35%, 01/01/23(c)(d)(e) -- VMIG-1 10,000 10,000,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (Cook County Regional
Transportation Authority); VRD Series 2001
A93 RB (Acquired 10/10/01; Cost $3,665,000)
2.35%, 07/01/27(c)(d)(e) -- VMIG-1 3,665 3,665,000
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
<Caption>
ILLINOIS-(CONTINUED)
Wachovia MERLOTs (Cook County Regional
Transportation Authority); VRD Unlimited
Tax Series 2002 A41 GO (Acquired 07/25/02;
Cost $17,775,000)
2.35%, 06/01/17(c)(d)(e) -- VMIG-1 $17,775 $ 17,775,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (Cook County); VRD Unlimited
Tax Series 2003 B11 GO (Acquired 01/29/03;
Cost $6,995,000)
2.35%, 11/15/25(c)(d)(e) -- VMIG-1 6,995 6,995,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (Regional Transportation
Authority); VRD Series 2001 A69 RB
(Acquired 11/09/04; Cost $11,770,000)
2.11%, 11/10/05(d)(e)(g)(l)(n) -- VMIG-1 11,770 11,770,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (State of Illinois); VRD
Unlimited Tax Series 2001 A124 GO (Acquired
11/26/01; Cost $7,905,000)
2.35%, 11/01/26(c)(d)(e) A-1 -- 7,905 7,905,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (University of Illinois);
VRD Series 2000 S GO (Acquired 03/20/00;
Cost $7,400,000)
2.35%, 04/01/30(c)(d)(e) -- VMIG-1 7,400 7,400,000
=======================================================================================
499,851,152
=======================================================================================
INDIANA-3.26%
ABN AMRO Munitops Ctfs. Trust (Township of
Wayne, County of Marion School Building
Corp.); Multi-State Non-AMT VRD Series
2003-27 RB (Acquired 11/12/03; Cost
$13,795,000)
2.33%, 07/15/11(c)(d)(e) -- VMIG-1 13,795 13,795,000
- ---------------------------------------------------------------------------------------
CDC Municipal Products, Inc. (Indiana State
of Transportation Finance Authority);
Highway VRD Series 2004-5 A RB (Acquired
10/21/04; Cost $2,000,000)
2.32%, 12/01/18(c)(d)(e) A-1+ -- 2,000 2,000,000
- ---------------------------------------------------------------------------------------
Indiana (State of) Bond Bank; Advance Funding
Program Series 2005 A RN
3.25%, 01/26/06 SP-1+ MIG-1 20,000 20,152,637
- ---------------------------------------------------------------------------------------
Indiana (State of) Educational Facilities
Authority (Indiana Wesleyan University
Project); Educational Facilities VRD Series
1998 A RB (LOC-JPMorgan Chase Bank)
2.30%, 06/01/28(b)(c) A-1+ -- 9,600 9,600,000
- ---------------------------------------------------------------------------------------
</Table>
F-9
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
INDIANA-(CONTINUED)
Indiana (State of) Educational Facilities
Authority (Wabash College Project);
Educational Facilities Series 2003 RB (LOC-
JPMorgan Chase Bank)
2.30%, 12/01/23(b)(c) -- VMIG-1 $ 5,870 $ 5,870,000
- ---------------------------------------------------------------------------------------
Indiana (State of) Health Facilities
Financing Authority (Community Hospitals
Project); VRD Hospital Series 2000 A RB
(LOC-Bank of America, N.A.)
2.30%, 07/01/28(b)(c) A-1+ -- 3,892 3,892,000
- ---------------------------------------------------------------------------------------
Indiana (State of) Health Facilities
Financing Authority (Deaconess Hospital
Inc.); Hospital VRD Series 1992 ACES RB
(LOC-Fifth Third Bank)
2.30%, 01/01/22(b)(c) A-1+ -- 11,920 11,920,000
- ---------------------------------------------------------------------------------------
Indiana (State of) Health Facilities
Financing Authority (Golden Years
Homestead); VRD Series 2002 A RB (LOC-Wells
Fargo Bank N.A.)
2.28%, 06/01/25(b)(c) A-1+ -- 6,500 6,500,000
- ---------------------------------------------------------------------------------------
Kokomo (City of) Hospital Authority (St.
Joseph's Hospital Center); Refunding
Hospital Series 1993 RB
6.35%, 08/15/05(g)(i) AAA Aaa 3,000 3,050,845
- ---------------------------------------------------------------------------------------
Petersburg (City of) Pollution Control
(Indianapolis Power & Light Co.); Refunding
VRD Series 1995 B PCR
2.30%, 01/01/23(c)(f) -- VMIG-1 23,000 23,000,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (County of Porter Jail
Building Corp.); VRD Series 2001 A58 RB
(Acquired 11/12/03; Cost $9,410,000)
2.11%, 11/10/05(d)(e)(g)(l)(n) -- VMIG-1 9,410 9,410,000
=======================================================================================
109,190,482
=======================================================================================
IOWA-1.20%
Iowa (State of) Finance Authority
(Morningside College Project); Private
College Facility VRD Series 2002 RB (LOC-
U.S. Bank N.A.)
2.35%, 10/01/32(b)(c) A-1+ -- 2,320 2,320,000
- ---------------------------------------------------------------------------------------
Iowa (State of) Finance Authority Retirement
Community (Deerfield Retirement Community);
VRD Series 2003 A RB (LOC-ABN AMRO Bank
N.V.)
2.30%, 12/01/33(b)(c) A-1 -- 15,000 15,000,000
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
<Caption>
- ---------------------------------------------------------------------------------------
IOWA-(CONTINUED)
Iowa (State of) Higher Education Loan
Authority (Graceland Private College); VRD
Series 2003 RB (LOC-Bank of America, N.A.)
2.35%, 02/01/33(b)(c) -- VMIG-1 $ 2,000 $ 2,000,000
- ---------------------------------------------------------------------------------------
Iowa (State of) School Corps.; School Cash
Anticipation Program Series 2004 A Wts.
Ctfs.
3.00%, 06/30/05(f) -- MIG-1 10,000 10,034,200
- ---------------------------------------------------------------------------------------
Iowa (State of); School Cash Anticipation
Program Series 2005 B RN
3.50%, 01/27/06(f) -- MIG-1 10,700 10,805,204
=======================================================================================
40,159,404
=======================================================================================
KANSAS-1.27%
Eagle Tax Exempt Trust (County of Wyandotte
Unified Government Utility System); VRD
Series 2004-0038 A COP (Acquired 09/08/04;
Cost $5,000,000)
2.32%, 09/01/21(c)(d)(e) A-1+ -- 5,000 5,000,000
- ---------------------------------------------------------------------------------------
Kansas (State of) Development Finance
Authority (Deaconess Long Term Care);
Health Facilities VRD Series 2000 C RB
(LOC-ABN AMRO Bank N.V.)
2.29%, 05/15/30(b)(c) -- VMIG-1 4,380 4,380,000
- ---------------------------------------------------------------------------------------
Leawood (City of); Unlimited Tax Temporary
Notes Series 2004-2 GO
3.00%, 10/01/05 -- MIG-1 14,000 14,091,450
- ---------------------------------------------------------------------------------------
Lenexa (City of) Health Care Facilities
(Lakeview Village Inc.); VRD Series 2002 B
RB (LOC-ABN AMRO Bank N.V.)
2.30%, 05/15/32(b)(c) A-1 -- 7,500 7,500,000
- ---------------------------------------------------------------------------------------
Olathe (City of) Health Facilities (Cedar
Lake Village Inc. Project); VRD Series 2004
RB (LOC-Bank of America, N.A.)
2.30%, 12/01/29(b)(c) -- VMIG-1 5,000 5,000,000
- ---------------------------------------------------------------------------------------
Olathe (City of) Recreational Facilities
(YMCA of Greater Kansas City Project); VRD
Series 2002 B RB (LOC-Bank of America,
N.A.)
2.35%, 11/01/18(b)(c) -- VMIG-1 3,100 3,100,000
- ---------------------------------------------------------------------------------------
Wichita (City of) Recreational Facilities
(YMCA of Wichita Project); VRD Series 1998
XI RB (LOC-Bank of America, N.A.) (Acquired
02/15/01; Cost $3,500,000)
2.35%, 08/01/09(b)(c)(e) A-1+ -- 3,500 3,500,000
=======================================================================================
42,571,450
=======================================================================================
</Table>
F-10
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
KENTUCKY-1.20%
Kentucky (State of) Area Development
Districts Financing Trust (Weekly
Acquisition-Ewing); Lease Program VRD
Series 2000 RB (LOC-Wachovia Bank, N.A.)
2.39%, 06/01/33(b)(c) A-1 -- $ 5,660 $ 5,660,000
- ---------------------------------------------------------------------------------------
Kentucky (State of) Asset/Liability
Commission; General Funding Series 2004 A
TRAN
3.00%, 06/29/05 SP-1+ MIG-1 15,000 15,052,221
- ---------------------------------------------------------------------------------------
Newport (City of) Kentucky League of Cities
Funding Trust; Lease Program VRD Series
2002 RB (LOC-U.S. Bank N.A.)
2.19%, 04/01/32(b)(c) -- VMIG-1 19,600 19,600,000
=======================================================================================
40,312,221
=======================================================================================
LOUISIANA-0.88%
Eagle Tax Exempt Trust (City of New Orleans);
VRD Series 2000-1801 COP (Acquired
10/10/00; Cost $6,000,000)
2.32%, 12/01/21(c)(d)(e) A-1+ -- 6,000 6,000,000
- ---------------------------------------------------------------------------------------
Louisiana (State of) Public Facilities
Authority (Glen Retirement System Project);
VRD Series 2001 RB (LOC-AmSouth Bank)
(Acquired 08/15/01; Cost $3,270,000)
2.40%, 08/01/16(b)(c)(e) -- VMIG-1 3,270 3,270,000
- ---------------------------------------------------------------------------------------
Louisiana (State of) Regional Transit
Authority; Lease Series 1998 Long Fund RB
6.13%, 05/01/05(g)(i) AAA Aaa 1,800 1,807,860
- ---------------------------------------------------------------------------------------
Louisiana (State of); Unlimited Tax Series
1995 A GO
6.00%, 05/15/05(g)(i) AAA Aaa 5,890 6,036,193
- ---------------------------------------------------------------------------------------
Series 1998 B GO
5.50%, 04/15/05(f) AAA Aaa 1,775 1,777,874
- ---------------------------------------------------------------------------------------
Series 2003 A GO
6.00%, 05/01/05(o) AAA Aaa 10,665 10,701,707
=======================================================================================
29,593,634
=======================================================================================
MAINE-0.20%
JPMorgan PUTTERs (State of Maine Turnpike
Authority); VRD Turnpike Series 2004 546 RB
(Acquired 10/28/04; Cost $1,800,000)
2.32%, 07/01/12(c)(d)(e) -- VMIG-1 1,800 1,800,000
- ---------------------------------------------------------------------------------------
Maine (State of) Housing Authority; Mortgage
Series 2003 E-1 RB
2.26%, 11/15/30(c)(f) A-1+ VMIG-1 4,785 4,785,000
=======================================================================================
6,585,000
=======================================================================================
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
<Caption>
MARYLAND-0.55%
Frederick (County of) Retirement Community
(Buckingham's Choice Inc. Project); VRD
Series 1997 C RB (LOC-Branch Banking &
Trust Co.)
2.31%, 01/01/27(b)(c) A-1 -- $ 6,000 $ 6,000,000
- ---------------------------------------------------------------------------------------
Howard (County of) Economic Development
(Norbel School Inc. Project); VRD Series
2001 RB (LOC-Branch Banking & Trust Co.)
2.27%, 02/01/28(b)(c) -- Aa3 4,785 4,785,000
- ---------------------------------------------------------------------------------------
Maryland (State of) Economic Development
Corp. (YMCA of Central Maryland Inc.
Project); VRD Series 2003 RB (LOC- Branch
Banking & Trust Co.)
2.27%, 04/01/28(b)(c) -- VMIG-1 3,800 3,800,000
- ---------------------------------------------------------------------------------------
Morgan Stanley & Co. Inc. Trust Floater Ctfs.
(State of Maryland Health & Higher
Educational Facilities Authority); VRD
Floating Rate Trust Ctfs. Series 2003-829
RB (Acquired 06/19/03; Cost $3,800,000)
2.32%, 08/15/38(c)(d)(e) -- VMIG-1 3,800 3,800,000
=======================================================================================
18,385,000
=======================================================================================
MASSACHUSETTS-0.65%
Massachusetts (State of) Health & Educational
Facilities Authority (Fairview Extended
Care Services Inc.); Refunding VRD Series
1997 B RB (LOC-Bank of America, N.A.)
2.29%, 01/01/21(b)(c) -- VMIG-1 21,620 21,620,000
=======================================================================================
MICHIGAN-4.91%
Bruce (Township of) Hospital Finance
Authority (Sisters Charity of St. Joseph);
Health Care System VRD Series 1988 A RB
1.80%, 05/02/05(f)(g)(h) A-1+ VMIG-1 2,000 2,000,000
- ---------------------------------------------------------------------------------------
Dearborn (City of) Economic Development Corp.
(Henry Ford Village Inc. Project); VRD
Limited Tax Series 1998 IDR (LOC- Comerica
Bank)
2.33%, 10/01/23(b)(c)(p) -- -- 8,600 8,600,000
- ---------------------------------------------------------------------------------------
Eagle Tax-Exempt Trust (City of Detroit
School District); VRD Unlimited Tax Series
2002-6014 A GO (Acquired 11/06/02; Cost
$7,105,000)
2.32%, 05/01/32(c)(d)(e) A-1+ -- 7,105 7,105,000
- ---------------------------------------------------------------------------------------
</Table>
F-11
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
MICHIGAN-(CONTINUED)
Kalamazoo (County of) Economic Development
Corp. (Heritage Community Project);
Refunding VRD Limited Tax Series 2004 RB
(LOC-Fifth Third Bank)
2.28%, 05/15/17(b)(c) A-1+ -- $ 5,405 $ 5,405,000
- ---------------------------------------------------------------------------------------
Lake Orion (City of) Community School
District; Refunding Unlimited Tax Series
1994 GO
7.00%, 05/01/05(g)(i) AAA Aaa 13,170 13,357,320
- ---------------------------------------------------------------------------------------
Michigan (State of) Higher Educational
Facilities Authority (Hope College);
Refunding VRD Limited Tax Series 2004 GO
(LOC-JPMorgan Chase Bank)
2.31%, 04/01/34(b)(c) A-1 -- 1,900 1,900,000
- ---------------------------------------------------------------------------------------
Michigan (State of) Hospital Finance
Authority (Holland Community Hospital); VRD
Series 2004 B RB (LOC-JPMorgan Chase Bank)
2.29%, 01/01/34(b)(c) -- VMIG-1 2,000 2,000,000
- ---------------------------------------------------------------------------------------
Michigan (State of) Municipal Bond Authority;
Series 2004 B-2 RN (LOC-JPMorgan Chase
Bank)
3.00%, 08/23/05(b) SP-1+ -- 15,000 15,083,289
- ---------------------------------------------------------------------------------------
Michigan (State of) Strategic Fund (Van Andel
Research Institute Project); VRD Limited
Tax Series 1997 RB (LOC-ABN AMRO Bank N.V.)
2.30%, 11/01/27(b)(c) A-1 -- 16,200 16,200,000
- ---------------------------------------------------------------------------------------
Michigan (State of) Strategic Fund (Washtenaw
Christian Project); VRD Limited Tax Series
2003 RB (LOC-ABN AMRO Bank N.V.)
2.29%, 11/01/33(b)(c) A-1 -- 1,500 1,500,000
- ---------------------------------------------------------------------------------------
Michigan (State of); Unlimited Tax Series
2004 A GO
3.50%, 09/30/05 SP-1+ MIG-1 40,000 40,283,819
- ---------------------------------------------------------------------------------------
Oakland (County of) Economic Development
Corp. (Rochester College Project); VRD
Limited Obligation Series 2001 RB (LOC-
JPMorgan Chase Bank)
2.30%, 08/01/21(b)(c) -- VMIG-1 6,900 6,900,000
- ---------------------------------------------------------------------------------------
Troy (City of) School District; Refunding
School Building & Site Unlimited Tax Series
2004 GO
3.00%, 05/01/05 AA Aa1 1,805 1,807,356
- ---------------------------------------------------------------------------------------
University of Michigan; VRD Hospital Series
1995 A RB
2.26%, 12/01/27(c) A-1+ VMIG-1 2,340 2,340,000
- ---------------------------------------------------------------------------------------
University of Michigan; VRD Medical Services
Plan Series 1995 A RB
2.26%, 12/01/27(c) A-1+ VMIG-1 3,160 3,160,000
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
<Caption>
MICHIGAN-(CONTINUED)
Wachovia MERLOTs (City of Detroit Sewage
Disposal System); VRD Series 2001 A112 RB
(Acquired 10/31/01; Cost $4,895,000)
2.35%, 07/01/32(c)(d)(e) -- VMIG-1 $ 4,895 $ 4,895,000
- ---------------------------------------------------------------------------------------
VRD Series 2003 B41 RB (Acquired 07/09/03;
Cost $6,755,000)
2.35%, 07/01/26(c)(d)(e) -- VMIG-1 6,755 6,755,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (City of Detroit Water
Supply System); VRD Series 2000 D RB
(Acquired 01/21/00; Cost $10,000,000)
2.35%, 07/01/29(c)(d)(e) -- VMIG-1 10,000 10,000,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (State of Michigan Hospital
Finance Authority); VRD Series 1997 X RB
(Acquired 12/12/03; Cost $15,000,000)
2.35%, 08/15/24(c)(d)(e) -- VMIG-1 15,000 15,000,000
=======================================================================================
164,291,784
=======================================================================================
MINNESOTA-3.59%
JPMorgan PUTTERs (State of Minnesota Public
Facilities Authority); VRD Drinking Water
Series 2002-319 COP (Acquired 07/31/03;
Cost $14,000,000)
2.30%, 03/01/21(c)(d)(e) A-1 -- 14,000 14,000,000
- ---------------------------------------------------------------------------------------
Minnesota (State of); Refunding Unlimited Tax
Series 2003 GO
2.00%, 08/01/05 AAA Aa1 2,240 2,244,075
- ---------------------------------------------------------------------------------------
Rochester (City of) Health Care Facilities
(Mayo Foundation); Commercial Paper Notes,
Adjustable Tender Series 1988 F
2.05%, 05/09/05 A-1+ -- 20,000 20,000,000
- ---------------------------------------------------------------------------------------
Series 2000 B
2.03%, 06/08/05 A-1+ -- 20,500 20,500,000
- ---------------------------------------------------------------------------------------
Series 2001 A
2.05%, 06/07/05 -- VMIG-1 15,000 15,000,000
- ---------------------------------------------------------------------------------------
Series 2001 B
2.05%, 06/07/05 -- VMIG-1 13,600 13,600,000
- ---------------------------------------------------------------------------------------
Series 2001 C
2.03%, 05/10/05 -- VMIG-1 17,600 17,600,000
- ---------------------------------------------------------------------------------------
St. Paul (City of) Housing & Redevelopment
Authority (Science Museum of Minnesota);
VRD Series 1997 A RB (LOC- U.S. Bank N.A.)
2.33%, 05/01/27(b)(c) -- VMIG-1 17,360 17,360,000
=======================================================================================
120,304,075
=======================================================================================
</Table>
F-12
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
MISSISSIPPI-2.17%
ABN AMRO Munitops Ctfs. Trust (State of
Mississippi Development Board-Jackson Water
& Sewer); Multi-State Non-AMT VRD Series
2002-22 Ctfs. (Acquired 09/10/03; Cost
$9,995,000)
2.33%, 09/01/10(c)(d)(e) -- VMIG-1 $ 9,995 $ 9,995,000
- ---------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (State of
Mississippi); VRD Unlimited Tax Series
2002-6018 A COP (Acquired 11/20/02; Cost
$3,200,000)
2.32%, 11/01/22(c)(d)(e) A-1+ -- 3,200 3,200,000
- ---------------------------------------------------------------------------------------
Mississippi (State of) Business Finance Corp.
(Jackson Medical Mall); VRD Series 2000 A
RB (LOC-JPMorgan Chase Bank)
2.30%, 11/01/18(b)(c) A-1 -- 5,300 5,300,000
- ---------------------------------------------------------------------------------------
Mississippi (State of) Business Finance Corp.
(Mississippi College Project); VRD Series
2003 RB (LOC-AmSouth Bank)
2.40%, 07/01/23(b)(c) -- VMIG-1 9,300 9,300,000
- ---------------------------------------------------------------------------------------
Perry (County of) (Leaf River Forest Products
Project); Refunding VRD Series 2002 PCR
(LOC- Citibank N.A.)
2.25%, 02/01/22(b)(c) A-1+ -- 36,500 36,500,000
- ---------------------------------------------------------------------------------------
University of Mississippi Educational
Building Corp. (Campus Improvements
Project); VRD Series 2000 RB
2.31%, 10/01/20(c)(f) -- VMIG-1 8,235 8,235,000
=======================================================================================
72,530,000
=======================================================================================
MISSOURI-1.15%
Missouri (State of) Development Finance Board
(Center of Creative Arts Project); Cultural
Facilities VRD Series 2004 RB (LOC-
National City Bank)
2.32%, 07/01/24(b)(c) -- VMIG-1 2,100 2,100,000
- ---------------------------------------------------------------------------------------
Missouri (State of) Health & Educational
Facilities Authority (Lutheran Senior
Services); Health Facilities VRD Series
2000 RB (LOC-U.S. Bank N.A.)
2.30%, 02/01/31(b)(c) -- VMIG-1 29,000 29,000,000
- ---------------------------------------------------------------------------------------
Missouri (State of) Health & Educational
Facilities Authority (Washington University
Project); Educational Facilities VRD Series
1985 B RB
2.33%, 09/01/10(c) A-1+ VMIG-1 1,100 1,100,000
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
<Caption>
MISSOURI-(CONTINUED)
Platte (County of) Industrial Development
Authority (Southern Platte County Athletic
Assoc. Inc.); Recreational Facilities VRD
Series 2005 A RB (LOC-Bank of America,
N.A.)
2.32%, 10/01/25(b)(c) -- VMIG-1 $ 2,140 $ 2,140,000
- ---------------------------------------------------------------------------------------
St. Louis (County of) Industrial Development
Authority (Friendship Village of South
County); VRD Series 2002 B IDR (LOC-ABN
AMRO Bank N.V.)
2.30%, 09/01/22(b)(c) A-1 -- 2,915 2,915,000
- ---------------------------------------------------------------------------------------
St. Louis (County of) Industrial Development
Authority (Whitfield School Inc.);
Educational Facilities Refunding VRD Series
2004 B IDR (LOC- U.S. Bank N.A.)
2.32%, 06/15/24(b)(c) A-1+ -- 1,400 1,400,000
=======================================================================================
38,655,000
=======================================================================================
MONTANA-0.34%
Montana (State of) Facility Finance Authority
(Mission Ridge Project); VRD Series 2002 RB
(LOC-ABN AMRO Bank N.V.)
2.31%, 08/01/27(b)(c)(j) -- -- 11,365 11,365,000
=======================================================================================
NEBRASKA-1.32%
Nebhelp Inc.; Multi-Mode VRD Series 1985 A RB
2.35%, 12/01/15(c)(f) A-1+ VMIG-1 5,995 5,995,000
- ---------------------------------------------------------------------------------------
VRD Series 1985 B RB
2.35%, 12/01/15(c)(f) A-1+ VMIG-1 3,590 3,590,000
- ---------------------------------------------------------------------------------------
VRD Series 1985 D RB
2.35%, 12/01/15(c)(f) A-1+ VMIG-1 5,865 5,865,000
- ---------------------------------------------------------------------------------------
VRD Series 1985 E RB
2.35%, 12/01/15(c)(f) A-1+ VMIG-1 28,635 28,635,000
=======================================================================================
44,085,000
=======================================================================================
NEVADA-0.48%
ABN AMRO Munitops Ctfs. Trust (County of
Washoe); Refunding VRD Limited Tax Series
2001-24 Single Asset Trust Ctfs. (Acquired
06/21/01; Cost $5,500,000)
2.33%, 07/01/09(c)(d)(e) -- VMIG-1 5,500 5,500,000
- ---------------------------------------------------------------------------------------
Carson (City of) (Tahoe Hospital Project);
Hospital VRD Series 2003 B RB (LOC- U.S.
Bank N.A.)
2.30%, 09/01/33(b)(c) A-1+ -- 10,500 10,500,000
=======================================================================================
16,000,000
=======================================================================================
</Table>
F-13
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
NEW HAMPSHIRE-0.69%
Morgan Stanley & Co. Inc. Trust Floater Ctfs.
(New Hampshire Higher Education & Health
Facilities Authority); Refunding VRD Series
2003-772 RB (Acquired 01/22/03; Cost
$5,475,000)
2.34%, 01/01/17(c)(d)(e) A-1 -- $ 5,475 $ 5,475,000
- ---------------------------------------------------------------------------------------
Morgan Stanley & Co. Inc. Trust Floater Ctfs.
(New Hampshire Higher Educational & Health
Facilities Authority); Refunding VRD Series
2003-866 RB (Acquired 10/23/03; Cost
$7,485,000)
2.34%, 08/15/21(c)(d)(e) A-1 -- 7,485 7,485,000
- ---------------------------------------------------------------------------------------
New Hampshire (State of) Higher Educational &
Health Facilities Authority (VHA-New
England Inc.); VRD Series 1985 G RB
2.30%, 12/01/25(c)(f) A-1+ -- 10,000 10,000,000
=======================================================================================
22,960,000
=======================================================================================
NEW JERSEY-0.13%
Salem (County of) Improvement Authority
(Friends Home at Woodstown Inc.); VRD
Series 2004 RB (LOC-Bank of America, N.A.)
2.30%, 04/01/34(b)(c) -- VMIG-1 4,440 4,440,000
=======================================================================================
NEW YORK-0.53%
ABN AMRO Munitops Ctfs. Trust (Triborough
Bridge & Tunnel Authority); Non-AMT VRD
Series 2002-31 Ctfs. (Acquired 03/24/04;
Cost $16,000,000)
2.30%, 11/15/10(c)(d)(e) -- VMIG-1 16,000 16,000,000
- ---------------------------------------------------------------------------------------
New York (State of) Dormitory Authority
(Rochester Institute of Technology); Series
1997 RB
6.00%, 08/15/05(f) AAA Aaa 1,815 1,841,296
=======================================================================================
17,841,296
=======================================================================================
NORTH CAROLINA-1.05%
North Carolina (State of) Capital Facilities
Finance Agency (Barton College);
Educational Facilities VRD Series 2004 RB
(LOC- Branch Banking & Trust Co.)
2.27%, 07/01/19(b)(c) -- VMIG-1 5,750 5,750,000
- ---------------------------------------------------------------------------------------
North Carolina (State of) Capital Facilities
Finance Agency (Elon College); VRD Series
2001 A RB (LOC-Bank of America, N.A.)
2.30%, 01/01/14(b)(c)(j) -- -- 8,115 8,115,000
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
<Caption>
NORTH CAROLINA-(CONTINUED)
North Carolina (State of) Capital Facilities
Finance Agency (Goodwill Community
Foundation Project); VRD Series 2002 RB
(LOC-Bank of America, N.A.)
2.30%, 04/01/22(b)(c)(j) -- -- $ 2,070 $ 2,070,000
- ---------------------------------------------------------------------------------------
North Carolina (State of) Capital Facilities
Finance Agency (Goodwill Industries of
Central North Carolina Inc.); VRD Series
2004 RB (LOC-Bank of America, N.A.)
2.30%, 12/01/24(b)(c)(j) -- -- 4,915 4,915,000
- ---------------------------------------------------------------------------------------
North Carolina (State of) Capital Facilities
Finance Agency (Thompson Children's Home);
Educational Facilities VRD Series 2000 RB
(LOC-Bank of America, N.A.)
2.30%, 12/01/20(b)(c)(j) -- -- 3,150 3,150,000
- ---------------------------------------------------------------------------------------
North Carolina (State of) Capital Facilities
Finance Agency (Wolfpack Club Project); VRD
Series 2002 RB (LOC-Bank of America, N.A.)
2.30%, 04/01/12(b)(c)(j) -- -- 6,800 6,800,000
- ---------------------------------------------------------------------------------------
North Carolina (State of) Medical Care
Commission; Refunding First Mortgage Health
Care Facilities VRD Series 2004 C RB (LOC-
SunTrust Bank)
2.27%, 11/01/27(b)(c) -- VMIG-1 3,500 3,500,000
- ---------------------------------------------------------------------------------------
University of North Carolina; VRD Series 2001
B RB
2.30%, 12/01/25(c) A-1+ VMIG-1 1,000 1,000,000
=======================================================================================
35,300,000
=======================================================================================
OHIO-3.66%
Akron, Bath & Copley (Townships of) Joint
Township Hospital District (Summa Health
Systems); VRD Series 2004 B RB (LOC-
JPMorgan Chase Bank)
2.29%, 11/01/34(b)(c) -- VMIG-1 5,000 5,000,000
- ---------------------------------------------------------------------------------------
Butler (County of) Health Care Facilities
(Lifesphere Project); Refunding &
Improvement VRD Series 2002 RB (LOC- U.S.
Bank N.A.)
2.30%, 05/01/27(b)(c) A-1+ -- 8,500 8,500,000
- ---------------------------------------------------------------------------------------
Cambridge (City of) Hospital Facilities
(Regional Medical Center Project);
Refunding & Improvement VRD Series 2001 RB
(LOC-National City Bank)
2.31%, 12/01/21(b)(c) -- VMIG-1 10,790 10,790,000
- ---------------------------------------------------------------------------------------
</Table>
F-14
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
OHIO-(CONTINUED)
Centerville (City of) (Bethany Lutheran
Village Project); Health Care VRD Series
1994 RB (LOC- National City Bank)
2.31%, 11/01/13(b)(c) -- VMIG-1 $ 2,905 $ 2,905,000
- ---------------------------------------------------------------------------------------
Cleveland Heights (City of); Limited Tax
Series 2004 BAN GO
2.00%, 08/18/05(p) -- -- 3,234 3,238,840
- ---------------------------------------------------------------------------------------
Cuyahoga (County of) Health Care Facilities
(Judson Retirement Community); Refunding
VRD Series 2000 RB (LOC-National City Bank)
2.31%, 11/15/19(b)(c) A-1 -- 700 700,000
- ---------------------------------------------------------------------------------------
Franklin (County of) Health Care Facilities
(First Community Village); Refunding &
Improvement VRD Series 2005 RB
(LOC-Sovereign Bank, KBC Bank N.V.)
2.33%, 03/01/36(b)(c) A-1+ -- 5,000 5,000,000
- ---------------------------------------------------------------------------------------
Lake (County of); Limited Tax Series 2004 BAN
GO
2.00%, 04/14/05(p) -- -- 5,250 5,251,154
- ---------------------------------------------------------------------------------------
Lorain (County of) (EMH Regional Medical
Center Project); Hospital Facilities VRD
Series 2001 RB (LOC-National City Bank)
2.34%, 05/01/26(b)(c)(p) -- -- 14,950 14,950,000
- ---------------------------------------------------------------------------------------
Mahoning (County of) Hospital Facilities
(Forum Health Obligation Group) VRD Series
1997 B RB
2.28%, 12/01/28(c)(f) A-1+ VMIG-1 19,100 19,100,000
- ---------------------------------------------------------------------------------------
VRD Series 2002 B RB (LOC- Fifth Third
Bank)
2.31%, 12/01/27(b)(c) -- VMIG-1 6,800 6,800,000
- ---------------------------------------------------------------------------------------
Marion (County of) (Pooled Lease Program);
Hospital Improvement VRD Series 1990 RB
(LOC- JPMorgan Chase Bank)
2.31%, 08/01/20(b)(c) A-1+ -- 1,325 1,325,000
- ---------------------------------------------------------------------------------------
Middleburg Heights (City of) (Southwest
General Health); Hospital Improvement
Series 1997 RB (LOC-Fifth Third Bank)
2.31%, 08/15/22(b)(c) A-1+ -- 5,405 5,405,000
- ---------------------------------------------------------------------------------------
Montgomery (County of) (St. Vincent DePaul
Society); Limited Obligation VRD Series
1996 RB (LOC-National City Bank)
2.31%, 12/01/10(b)(c) A-1 -- 1,735 1,735,000
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
<Caption>
OHIO-(CONTINUED)
Portage (County of) (Robinson Memorial
Hospital); Hospital VRD Series 2002 RB
(LOC-JPMorgan Chase Bank)
2.31%, 05/01/17(b)(c) -- VMIG-1 $ 6,255 $ 6,255,000
- ---------------------------------------------------------------------------------------
Reynoldsburg (City of) School District
(School Facilities Construction); Unlimited
Tax Series 2004 A BAN GO
2.75%, 06/24/05 -- MIG-1 5,900 5,910,765
- ---------------------------------------------------------------------------------------
Unlimited Tax Series 2005 BAN GO
3.00%, 06/24/05 -- MIG1 3,150 3,157,955
- ---------------------------------------------------------------------------------------
Solon (City of); Series 2004 BAN
2.75%, 12/01/05(p) -- -- 3,000 3,013,738
- ---------------------------------------------------------------------------------------
Toledo-Lucas (County of) Port Authority
(Franciscan Communities St. Mary of the
Woods Inc.); VRD Series 2004 C RB
(LOC-Sovereign Bank, Bank of Nova Scotia)
2.28%, 05/15/38(b)(c) A-1+ -- 10,700 10,700,000
- ---------------------------------------------------------------------------------------
Upper Arlington (City of); Street Improvement
Limited Tax Series 2005 BAN GO
3.00%, 01/10/06 -- MIG-1 1,802 1,813,655
- ---------------------------------------------------------------------------------------
Youngstown (City of) School District
(Classroom Facilities & School
Improvement); Unlimited Tax Series 2005 GO
3.00%, 12/01/05(f) AAA Aaa 1,000 1,005,299
=======================================================================================
122,556,406
=======================================================================================
OKLAHOMA-1.01%
Oklahoma (County of) Finance Authority
(Oxford Oaks Apartments Projects);
Refunding Multi-Family Housing VRD Series
2000 RB (CEP-Federal National Mortgage
Association)
2.30%, 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.)
2.38%, 06/01/11(b)(c) A-1+ -- 3,785 3,785,000
- ---------------------------------------------------------------------------------------
Tulsa (County of) Industrial Authority;
Capital Improvements Series 2003 B RB
4.00%, 05/15/05 AA- -- 2,500 2,507,347
=======================================================================================
33,987,347
=======================================================================================
</Table>
F-15
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
OREGON-0.75%
JPMorgan PUTTERs (City of Portland); Sewer
System VRD Series 2004 614 RB (Acquired
12/02/04; Cost $1,600,000)
2.32%, 10/01/12(c)(d)(e) -- VMIG-1 $ 1,600 $ 1,600,000
- ---------------------------------------------------------------------------------------
Oregon (State of) Health, Housing,
Educational & Cultural Facilities Authority
(Quatama Crossing LLC Housing Project); VRD
Series 1998 RB (LOC-U.S. Bank N.A.)
2.35%, 01/01/31(b)(c) -- Aa2 7,320 7,320,000
- ---------------------------------------------------------------------------------------
Oregon (State of) Housing & Community
Services Department Mortgage; Single Family
Mortgage Program Series 2004 O RN
2.00%, 06/01/05 -- MIG-1 2,300 2,300,000
- ---------------------------------------------------------------------------------------
Series 2004 O-2 RN
2.10%, 09/01/05 -- MIG-1 3,000 3,000,000
- ---------------------------------------------------------------------------------------
Oregon (State of); Series 2004 A TAN
3.00%, 06/30/05 SP-1+ MIG-1 6,500 6,519,573
- ---------------------------------------------------------------------------------------
Portland (City of) Housing Authority
(Riverwood Project); Refunding Multi-Family
Series 1995 RB
6.00%, 01/01/06(g)(i) AAA NRR 1,170 1,202,371
- ---------------------------------------------------------------------------------------
Portland (City of); Unlimited Tax Series 1995
B GO
5.75%, 06/01/05(g)(i) NRR Aaa 2,000 2,012,136
- ---------------------------------------------------------------------------------------
Salem (City of) Water & Sewer; Refunding
Series 2004 RB
3.00%, 05/01/05(f) AAA Aaa 1,175 1,176,383
=======================================================================================
25,130,463
=======================================================================================
PENNSYLVANIA-3.07%
ABN AMRO Munitops Ctfs. Trust (City of
Reading School District); Non-AMT VRD
Series 2003-20 Ctfs. (Acquired 03/02/05;
Cost $4,225,000)
2.32%, 07/15/11(c)(d)(e)(j) -- -- 4,225 4,225,000
- ---------------------------------------------------------------------------------------
ABN AMRO Munitops Ctfs. Trust (State of
Pennsylvania Public School Building
Authority); Non-AMT VRD Series 2001-30
Ctfs. (Acquired 10/31/02; Cost $5,000,000)
2.32%, 09/01/09(c)(d)(e) -- VMIG-1 5,000 5,000,000
- ---------------------------------------------------------------------------------------
Series 2003-24 Ctfs. (Acquired 03/08/04;
Cost $7,000,000)
2.32%, 06/01/11(c)(d)(e) -- VMIG-1 7,000 7,000,000
- ---------------------------------------------------------------------------------------
Allegheny (County of) Industrial Development
Authority (Carnegie Museums of Pittsburgh);
VRD Series 2002 IDR (LOC-Royal Bank of
Scotland)
2.40%, 08/01/32(b)(c) -- VMIG-1 2,000 2,000,000
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
<Caption>
PENNSYLVANIA-(CONTINUED)
Berks (County of) Industrial Development
Authority (Lutheran Services); Health Care
VRD Series 1998 A IDR
2.29%, 01/01/28(c)(f) -- VMIG-1 $ 9,995 $ 9,995,000
- ---------------------------------------------------------------------------------------
Chartiers Valley (Community of) Industrial &
Commercial Development Authority (Asbury
Villas Project); VRD Series 2000 B IDR
(LOC-ABN AMRO Bank N.V.)
2.31%, 12/01/30(b)(c) A-1 -- 3,000 3,000,000
- ---------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (Delaware Valley
Regional); VRD Series 2001-3801 COP
(Acquired 06/04/01; Cost $8,900,000)
2.31%, 08/01/28(c)(d)(e) A-1+ -- 8,900 8,900,000
- ---------------------------------------------------------------------------------------
Franklin (County of) Industrial Development
Authority (Chambersburg Hospital
Obligation); Health Care VRD Series 2000
IDR
2.38%, 12/01/24(c)(f) A-1 -- 3,385 3,385,000
- ---------------------------------------------------------------------------------------
Geisinger (City of) Authority (Geisinger
Health System); VRD Series 2002 RB
2.30%, 11/15/32(k) A-1+ VMIG-1 12,200 12,200,000
- ---------------------------------------------------------------------------------------
Lehigh (County of) Industrial Development
Authority (Allegheny Electric Coop. Inc.);
Refunding VRD Series 1984 PCR (LOC-
Rabobank Nederland)
2.05%, 06/01/14(b)(m) A-1+ -- 1,030 1,030,000
- ---------------------------------------------------------------------------------------
VRD Series 1984 PCR (LOC- Rabobank
Nederland)
2.05%, 10/01/14(b)(m) A-1+ -- 7,180 7,180,000
- ---------------------------------------------------------------------------------------
Montgomery (County of) Higher Education &
Health Authority (Holy Redeemer Health
System); Health Care Series 1997 A RB
5.50%, 10/01/05(f) AAA Aaa 2,240 2,276,734
- ---------------------------------------------------------------------------------------
Pennsylvania (State of) Higher Educational
Facilities Authority (Washington &
Jefferson Development); VRD Series 2005 A
RB (LOC-Sovereign Bank, Uncredito Italiano
S.p.A.)
2.25%, 11/01/36(b)(c) -- VMIG-1 3,000 3,000,000
- ---------------------------------------------------------------------------------------
Philadelphia (City of) Hospitals & Higher
Education of Facilities Authority
(Children's Hospital of Philadelphia
Project); Hospital VRD Series 2002 A RB
2.28%, 07/01/22(k) A-1+ VMIG-1 8,400 8,400,000
- ---------------------------------------------------------------------------------------
</Table>
F-16
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
PENNSYLVANIA-(CONTINUED)
Sayre (City of) Health Care Facilities
Authority (VHR of Pennsylvania Capital
Financing Project); VRD Series 1985 K RB
2.30%, 12/01/20(c)(f) A-1+ Aaa $19,800 $ 19,800,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (City of Scranton & County
of Lackawanna Health & Welfare Authority);
VRD Series 2002 A-18 RB (Acquired 03/22/02;
Cost $5,120,000)
2.35%, 03/01/15(c)(d)(e) -- VMIG-1 5,120 5,120,000
=======================================================================================
102,511,734
=======================================================================================
SOUTH CAROLINA-1.91%
Cherokee (County of) (Newark Electronics
Division); Industrial VRD Series 1985 RB
(LOC-ABN AMRO Bank N.V.)
2.30%, 12/01/15(b)(c) A-1 -- 6,500 6,500,000
- ---------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (State of South
Carolina Public Service Authority); VRD
Series 2000-4001 A COP (Acquired 09/08/00;
Cost $10,100,000)
2.32%, 01/01/22(c)(d)(e) A-1+ -- 10,100 10,100,000
- ---------------------------------------------------------------------------------------
Horry (County of) School District; Unlimited
Tax Series 2004 GO BAN
3.50%, 09/01/05 SP-1 MIG-1 10,000 10,070,209
- ---------------------------------------------------------------------------------------
Morgan Stanley & Co. Inc. Trust Floater Ctfs.
(State of South Carolina Transportation
Infrastructure Bank); Floating Rate Trust
Ctfs. VRD Series 2002-728 RB (Acquired
11/13/02; Cost $7,185,000)
2.32%, 10/01/22(c)(d)(e) -- VMIG-1 7,185 7,185,000
- ---------------------------------------------------------------------------------------
South Carolina (State of) Educational
Facilities Authority for Non-Profit
Institutions (Morris College Project); VRD
Series 1997 RB (LOC-Bank of America, N.A.)
(Acquired 07/30/02; Cost $2,100,000)
2.35%, 07/01/17(b)(c)(e) A-1+ -- 2,100 2,100,000
- ---------------------------------------------------------------------------------------
South Carolina (State of) Educational
Facilities Authority for Non-Profit
Institutions (The Allen University
Project); VRD Series 1998 RB (LOC-Bank of
America, N.A.) (Acquired 03/27/01; Cost
$2,525,000)
2.35%, 09/01/18(b)(c)(e) A-1+ -- 2,525 2,525,000
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
<Caption>
- ---------------------------------------------------------------------------------------
SOUTH CAROLINA-(CONTINUED)
South Carolina (State of) Jobs-Economic
Development Authority (Carolina Children's
Home Project); VRD Series 2003 RB
(LOC-Branch Banking & Trust Co.)
2.27%, 03/01/23(b)(c) -- VMIG-1 $ 3,365 $ 3,365,000
- ---------------------------------------------------------------------------------------
South Carolina (State of) Jobs-Economic
Development Authority (Carolina Piedmont
Foundation Project); VRD Series 2002 RB
(LOC-Bank of America, N.A.)
2.35%, 09/01/32(b)(c) -- -- 4,000 4,000,000
- ---------------------------------------------------------------------------------------
South Carolina (State of) Jobs-Economic
Development Authority (Catholic Diocese of
South Carolina Project); VRD Series 1998 RB
(LOC-Bank of America, N.A.) (Acquired
07/23/02; Cost $2,555,000)
2.35%, 09/01/18(b)(c)(e) A-1+ -- 2,555 2,555,000
- ---------------------------------------------------------------------------------------
South Carolina (State of) Jobs-Economic
Development Authority (Presbyterian Home of
South Carolina Project); VRD Series 2003 A
RB (LOC-Wachovia Bank, N.A.)
2.35%, 04/01/20(b)(c) A-1 -- 4,070 4,070,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (State of South Carolina
Public Service Authority); VRD Series 2000
L RB (Acquired 02/25/00; Cost $11,590,000)
2.35%, 01/01/22(c)(d)(e) -- VMIG-1 11,590 11,590,000
=======================================================================================
64,060,209
=======================================================================================
SOUTH DAKOTA-0.09%
South Dakota (State of) Health & Educational
Facilities Authority (University of Sioux
Falls); VRD Series 2001 RB (LOC-Wells Fargo
Bank N.A.)
2.28%, 10/01/16(b)(c) A-1+ -- 3,155 3,155,000
=======================================================================================
TENNESSEE-5.14%
Clarksville (City of) Public Building
Authority (Tennessee Municipal Bond Fund);
Pooled Financing VRD Series 1999 RB
(LOC-Bank of America, N.A.) (Acquired
03/15/05; Cost $27,205,000)
2.30%, 06/01/29(b)(c)(e) -- VMIG-1 27,205 27,205,000
- ---------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Chattanooga);
VRD Series 2000-4202 A COP (Acquired
10/10/00; Cost $14,040,000)
2.32%, 10/01/27(c)(d)(e) A-1+ -- 14,040 14,040,000
- ---------------------------------------------------------------------------------------
</Table>
F-17
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
TENNESSEE-(CONTINUED)
Jackson (City of) Energy Authority; Electric
Systems VRD Series 2003 B RB
2.30%, 11/01/26(c)(f) -- VMIG-1 $12,200 $ 12,200,000
- ---------------------------------------------------------------------------------------
Jackson (City of) Health & Educational
Facilities Board (Trinity Christian
Academy); Educational Facilities VRD Series
2002 RB (LOC-AmSouth Bank)
2.40%, 03/01/22(b)(c) -- VMIG-1 5,295 5,295,000
- ---------------------------------------------------------------------------------------
Knox (County of) Health Educational & Housing
Facility Board (Volunteer Student Housing
LLC Project); Student Housing VRD Series
2002 RB (LOC- Wachovia Bank, N.A.)
2.29%, 09/01/34(b)(c) -- VMIG-1 26,625 26,625,000
- ---------------------------------------------------------------------------------------
Morgan Stanley & Co. Inc. Trust Floater Ctfs.
(City of Nashville & County of Davidson);
Unlimited Tax Series 2003-871 GO (Acquired
11/17/03; Cost $4,995,000)
2.32%, 10/15/10(c)(d)(e) -- VMIG-1 4,995 4,995,000
- ---------------------------------------------------------------------------------------
Nashville (City of) & Davidson (County of)
Metropolitan Government Health &
Educational Facilities Board (Adventist
Health System); VRD Series 1997 A RB
(LOC-SunTrust Bank)
2.28%, 11/15/27(b)(c) A-1+ VMIG-1 2,325 2,325,000
- ---------------------------------------------------------------------------------------
Nashville (City of) & Davidson (County of)
Metropolitan Government Health &
Educational Facilities Board (Ensworth
School Project); VRD Series 2002 RB
(LOC-SunTrust Bank)
2.29%, 12/01/27(b)(c) -- VMIG-1 7,675 7,675,000
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
<Caption>
- ---------------------------------------------------------------------------------------
TENNESSEE-(CONTINUED)
Sevier (County of) Public Building Authority
(Local Government Public Improvement); VRD
Series 1995 A RB
2.31%, 06/01/15(c)(f) -- VMIG-1 $ 5,230 $ 5,230,000
- ---------------------------------------------------------------------------------------
VRD Series 1995 B-2 RB
2.31%, 06/01/06(c)(f) -- VMIG-1 1,200 1,200,000
- ---------------------------------------------------------------------------------------
VRD Series 1997 I A-1 RB
2.31%, 06/01/22(c)(f) -- VMIG-1 5,900 5,900,000
- ---------------------------------------------------------------------------------------
VRD Series 1997 II E-1 RB
2.31%, 06/01/21(c)(f) -- VMIG-1 2,100 2,100,000
- ---------------------------------------------------------------------------------------
VRD Series 1997 II E-3 RB
2.31%, 06/01/10(c)(f) -- VMIG-1 1,485 1,485,000
- ---------------------------------------------------------------------------------------
VRD Series 1997 II E-5 RB
2.31%, 06/01/17(c)(f) -- VMIG-1 1,320 1,320,000
- ---------------------------------------------------------------------------------------
VRD Series 1997 II F-1 RB
2.31%, 06/01/17(c)(f) -- VMIG-1 1,190 1,190,000
- ---------------------------------------------------------------------------------------
VRD Series 1997 II F-5 RB
2.31%, 06/01/27(c)(f) -- VMIG-1 2,265 2,265,000
- ---------------------------------------------------------------------------------------
VRD Series 1998 III A-1 RB
2.31%, 06/01/07(c)(f) -- VMIG-1 14,950 14,950,000
- ---------------------------------------------------------------------------------------
VRD Series 1998 III A-3 RB
2.31%, 06/01/19(c)(f) -- VMIG-1 1,425 1,425,000
- ---------------------------------------------------------------------------------------
VRD Series 1998 III A-4 RB
2.31%, 06/01/17(c)(f) -- VMIG-1 300 300,000
- ---------------------------------------------------------------------------------------
VRD Series 1998 III B-2 RB
2.31%, 06/01/19(c)(f) -- VMIG-1 5,650 5,650,000
- ---------------------------------------------------------------------------------------
VRD Series 1998 III C-3 RB
2.31%, 06/01/18(c)(f) -- VMIG-1 3,475 3,475,000
- ---------------------------------------------------------------------------------------
VRD Series 1998 III C-4 RB
2.31%, 06/01/20(c)(f) -- VMIG-1 10,000 10,000,000
- ---------------------------------------------------------------------------------------
VRD Series 1999 II A-1 RB
2.31%, 06/01/24(c)(f) -- VMIG-1 6,300 6,300,000
- ---------------------------------------------------------------------------------------
VRD Series 1999 II B-1 RB
2.31%, 06/01/25(c)(f) -- VMIG-1 1,700 1,700,000
- ---------------------------------------------------------------------------------------
Shelby (County of) Health, Educational &
Housing Facilities Board (St. Benedict
Auburndale School); VRD Series 2003 RB
(LOC-AmSouth Bank)
2.32%, 05/01/33(b)(c) -- VMIG-1 5,000 5,000,000
- ---------------------------------------------------------------------------------------
Williamson (County of) Industrial Development
Board (Currey Ingram Academy); Educational
Facilities VRD Series 2003 RB (LOC-SunTrust
Bank)
2.35%, 04/01/23(b)(c) -- VMIG-1 2,400 2,400,000
=======================================================================================
172,250,000
=======================================================================================
</Table>
F-18
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
TEXAS-12.01%
ABN AMRO Munitops Ctfs. Trust (City of
Leander Independent School District);
Unlimited Multi-State Non-AMT VRD Series
2002-16 Ctfs. (Acquired 08/20/03; Cost
$5,395,000)
2.33%, 08/15/10(c)(d)(e) -- VMIG-1 $ 5,395 $ 5,395,000
- ---------------------------------------------------------------------------------------
Amarillo (City of) Health Facilities Corp.
(Panhandle Pooled Health Care); VRD Series
1985 RB (LOC-BNP Paribas)
2.42%, 05/31/25(b)(c) -- VMIG-1 655 655,000
- ---------------------------------------------------------------------------------------
Austin (City of); Refunding Utility System
Series 1995 RB
5.60%, 05/15/05(g)(i) AAA Aaa 5,000 5,025,074
- ---------------------------------------------------------------------------------------
Bell (County of) Health Facilities
Development Corp. (Scott & White Memorial
Hospital); VRD Series 2000 B-1 RB
2.30%, 08/15/29(f)(k) A-1+ VMIG-1 32,300 32,300,000
- ---------------------------------------------------------------------------------------
Bexar (County of) Health Facilities
Development Corp. (Air Force Village); VRD
Series 2000 RB (LOC-Bank of America, N.A.)
2.28%, 04/11/05(b)(c) A-1+ -- 9,500 9,500,000
- ---------------------------------------------------------------------------------------
Bexar (County of) Health Facilities
Development Corp. (Warm Springs
Rehabilitation Foundation); Health Care
System VRD Series 1997 RB (LOC-JPMorgan
Chase Bank)
2.35%, 09/01/27(b)(c) -- VMIG-1 3,435 3,435,000
- ---------------------------------------------------------------------------------------
Brownsville (City of) Utility Systems;
Refunding VRD Sub Lien Series 2001 A RB
2.05%, 06/21/05(f)(h)(l) A-1+ VMIG-1 3,000 3,000,000
- ---------------------------------------------------------------------------------------
Crawford (City of) Education Facilities Corp.
Package (University Parking System
Project); Refunding VRD Series 2004 A RB
(LOC-BNP Paribas)
2.38%, 05/01/35(b)(c) -- VMIG-1 5,000 5,000,000
- ---------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Houston
Airport); VRD Series 2000-4307 COP
(Acquired 11/15/00; Cost $15,750,000)
2.32%, 07/01/28(c)(d)(e) A-1+ -- 15,750 15,750,000
- ---------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Houston Water
& Sewer); VRD Series 1997-4305 A COP
(Acquired 04/27/99; Cost $14,005,000)
2.32%, 12/01/27(c)(d)(e) A-1+ -- 14,005 14,005,000
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
<Caption>
TEXAS-(CONTINUED)
Eagle Tax Exempt Trust (City of Houston Water
& Sewer); VRD Series 2002-6019 A COP
(Acquired 11/13/02; Cost $8,910,000)
2.32%, 12/01/30(c)(d)(e) A-1+ -- $ 8,910 $ 8,910,000
- ---------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (Harris County Toll
Road); VRD Series 2001-4305 COP (Acquired
05/08/01; Cost $7,390,000)
2.32%, 08/01/14(c)(d)(e) A-1+ -- 7,390 7,390,000
- ---------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (Harris County Toll
Road); VRD Series 2002-6012 A COP (Acquired
11/20/02; Cost $1,580,000)
2.32%, 08/15/30(c)(d)(e) A-1+ -- 1,580 1,580,000
- ---------------------------------------------------------------------------------------
Garland (City of) Industrial Development
Authority Inc. (Carroll Co. Project); VRD
Series 1984 IDR (LOC-Wells Fargo Bank N.A.)
(Acquired 09/03/03; Cost $2,300,000)
2.35%, 12/01/14(b)(c)(e) -- Aaa 2,300 2,300,000
- ---------------------------------------------------------------------------------------
Grand Prairie (City of) Housing Finance Corp.
(Lincoln Property Co.); Refunding
Multi-Family Housing VRD Series 1993 RB
(CEP-General Electric Corp.)
2.30%, 06/01/10(c) A-1+ -- 2,700 2,700,000
- ---------------------------------------------------------------------------------------
Grapevine (City of) Industrial Development
Corp. (Southern Air Transport); Refunding
Airport Series 1993 RB (LOC-JPMorgan Chase
Bank)
2.30%, 03/01/10(b)(c) A-1+ -- 2,300 2,300,000
- ---------------------------------------------------------------------------------------
Harris (County of) Cultural Education
Facilities Finance Corp. (Houston Music
Hall Foundation); VRD Series 1999 RB (LOC-
JPMorgan Chase Bank)
2.35%, 06/01/29(b)(c) A-1+ -- 700 700,000
- ---------------------------------------------------------------------------------------
Harris (County of) Health Facilities
Development Corp. (Texas Children's
Hospital Project); Refunding Hospital
Series 1995 RB
6.00%, 10/01/05(o) AAA Aaa 1,250 1,273,825
- ---------------------------------------------------------------------------------------
Harris (County of) Health Facilities
Development Corp. (Methodist Hospital);
Refunding VRD Series 2005 B RB
2.07%, 05/09/05(h)(l) A-1+ -- 11,800 11,800,000
- ---------------------------------------------------------------------------------------
Harris (County of) Hospital District; Sub.
Lien Commercial Paper Series A RN (LOC-Bank
of America, N.A.)
2.11%, 05/11/05(b) A-1+ -- 9,451 9,451,000
- ---------------------------------------------------------------------------------------
</Table>
F-19
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
TEXAS-(CONTINUED)
Harris (County of) Houston Texas Sports
Authority (Rodeo); Jr. Lein VRD Series 2001
C RB
2.30%, 11/15/30(c)(f) A-1+ VMIG-1 $ 6,300 $ 6,300,000
- ---------------------------------------------------------------------------------------
Hays (County of) Memorial Health Facilities
Development Corp. (Central Texas Medical
Center Project); Hospital VRD Series 1990 B
RB (LOC-SunTrust Bank)
2.30%, 11/15/14(b)(c) A-1+ -- 10,200 10,200,000
- ---------------------------------------------------------------------------------------
Hockley (County of) Industrial Development
Corp. (AMOCO Project); VRD Series 1985 PCR
1.80%, 05/01/05(g)(h) A-1+ P-1 10,000 10,000,000
- ---------------------------------------------------------------------------------------
Hockley (County of) Industrial Development
Corp. (AMOCO Project-Standard Oil Co.); VRD
Series 1983 PCR
2.10%, 09/01/05(g)(h) A-1+ Aa1 12,775 12,775,000
- ---------------------------------------------------------------------------------------
Houston (City of) Higher Education Finance
Corp. (Houston Baptist University); Higher
Education Refunding VRD Series 2000 RB
(LOC-JPMorgan Chase Bank)
2.35%, 07/01/20(b)(c)(j) -- -- 3,665 3,665,000
- ---------------------------------------------------------------------------------------
Houston (City of) Independent School District
(Schoolhouse); Limited Tax Series 2004 GO
(CEP-Texas Permanent School Fund)
1.62%, 06/09/05(g)(l) A-1+ VMIG-1 15,000 15,000,000
- ---------------------------------------------------------------------------------------
Houston (City of); Commercial Paper Notes
Series 2003 A GO
1.95%, 04/07/05 A-1+ P-1 26,900 26,900,000
- ---------------------------------------------------------------------------------------
Series 2003 A GO
1.95%, 04/12/05 A-1+ P-1 24,000 24,000,000
- ---------------------------------------------------------------------------------------
Humble (City of) Independent School District;
School Building VRD Limited Tax Series 2003
GO (CEP-Texas Permanent School Fund)
2.28%, 06/15/23(c) A-1+ VMIG-1 13,000 13,000,000
- ---------------------------------------------------------------------------------------
JPMorgan PUTTERs (City of Boerne Independent
School District); VRD Series 2005 752 GO
(Acquired 03/09/05; Cost $2,640,000)
2.32%, 02/01/11(c)(d)(e) A-1+ -- 2,640 2,640,000
- ---------------------------------------------------------------------------------------
JPMorgan PUTTERs (County of Bexar); Limited
Tax VRD Series 2004 530 GO (Acquired
10/28/04; Cost $4,645,000)
2.32%, 06/15/12(c)(d)(e) -- VMIG-1 4,645 4,645,000
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
<Caption>
- ---------------------------------------------------------------------------------------
TEXAS-(CONTINUED)
Merrill Lynch P-Floats (City of Brazosport
Independent School District); Refunding
Unlimited Tax VRD Series 2003 PT-1690 GO
(Acquired 02/20/03; Cost $4,898,000)
2.32%, 08/15/10(c)(d)(e) -- VMIG-1 $ 4,898 $ 4,898,000
- ---------------------------------------------------------------------------------------
Merrill Lynch P-Floats (Harris County
Hospital District); VRD Series 2002 PT-665
RB (Acquired 10/02/02; Cost $5,935,000)
2.32%, 08/15/08(c)(d)(e) A-1+ -- 5,935 5,935,000
- ---------------------------------------------------------------------------------------
Northside Independent School District;
Refunding Unlimited Tax VRD Series 2003 B
GO (CEP- Texas Permanent School Fund)
1.75%, 08/01/05(g)(l) A-1+ VMIG-1 1,870 1,870,000
- ---------------------------------------------------------------------------------------
San Antonio (City of) Water & Sewer System;
Commercial Paper Notes Series 2001 A GO
(Acquired 01/26/05; Cost $29,900,000)
2.00%, 05/17/05(e) A-1+ P-1 29,900 29,900,000
- ---------------------------------------------------------------------------------------
Sherman (City of) Higher Education Finance
Corp. (Austin College Project); Higher
Education VRD Series 1997 RB (LOC-Bank of
America, N.A.)
2.35%, 01/01/18(b)(c) A-1+ -- 12,800 12,800,000
- ---------------------------------------------------------------------------------------
Texas (State of); Series 2004 TRAN
3.00%, 08/31/05 SP-1+ MIG-1 40,000 40,225,139
- ---------------------------------------------------------------------------------------
University of Texas Board of Regents (Revenue
Financing System); Commercial Paper Notes
Series A
2.05%, 05/17/05 A-1+ P-1 7,650 7,650,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (City of Austin); VRD Series
2000 A26 RB (Acquired 11/09/04; Cost
$9,230,000)
2.11%, 11/10/05(d)(e)(g)(l)(n) -- VMIG-1 9,230 9,230,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (Harris County Toll Road);
VRD Series 2003 B16 RB (Acquired 02/19/03;
Cost $3,015,000)
2.35%, 08/15/25(c)(d)(e) -- VMIG-1 3,015 3,015,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (Jefferson County Health
Facilities Development Corp.); VRD Series
2001 A83 RB (Acquired 11/18/03; Cost
$3,565,000)
2.11%, 11/16/05(d)(e)(g)(l)(n) A-1 -- 3,565 3,565,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (Southeast Texas Housing
Finance Corp.); VRD Series 2001 A18 RB
(Acquired 11/18/03; Cost $3,430,000)
2.11%, 11/16/05(d)(e)(g)(l)(n) A-1 -- 3,430 3,430,000
- ---------------------------------------------------------------------------------------
</Table>
F-20
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
TEXAS-(CONTINUED)
Wachovia MERLOTs (University of Texas);
Refunding VRD Series 2003 B14 RB (Acquired
01/29/03; Cost $8,000,000)
2.35%, 08/15/22(c)(d)(e) -- VMIG-1 $ 8,000 $ 8,000,000
=======================================================================================
402,113,038
=======================================================================================
UTAH-2.13%
Merrill Lynch P-Floats (City of Murray
Hospital); VRD Series 2002 PA-1066 RB
(Acquired 10/02/02; Cost $5,995,000)
2.32%, 05/15/22(c)(d)(e) A-1 -- 5,995 5,995,000
- ---------------------------------------------------------------------------------------
Salt Lake (City of) (Gateway Project);
Special Assessment VRD Series 2003
(LOC-Citibank N.A.)
2.30%, 12/01/23(b)(c) A-1+ -- 7,200 7,200,000
- ---------------------------------------------------------------------------------------
Sanpete (County of) School Facilities
(Wasatch Academy); VRD Series 2003 RB (LOC-
U.S. Bank N.A.)
2.33%, 08/01/28(b)(c) A-1+ -- 900 900,000
- ---------------------------------------------------------------------------------------
St. George (City of) (OK Foundation
Projects); Sr. Housing VRD Series 2004 A RB
(CEP-Federal National Mortgage Association)
2.28%, 12/15/29(c) A-1+ -- 30,640 30,640,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (Intermountain Power
Agency); Power Supply VRD Series 2002 A59
RB (Acquired 10/23/02; Cost $6,960,000)
2.35%, 07/01/10(c)(d)(e) -- VMIG-1 6,960 6,960,000
- ---------------------------------------------------------------------------------------
Weber (County of) (IHC Health Service); VRD
Series 2000 C RB
2.30%, 02/15/35(k) A-1+ VMIG-1 10,000 10,000,000
- ---------------------------------------------------------------------------------------
West Jordan (City of) (Broadmoor Village
Apartments LLC Project); Refunding
Multi-Family Housing VRD Series 2004 RB
(CEP- Federal Home Loan Mortgage Corp.)
2.30%, 12/01/34(c) A-1+ -- 9,675 9,675,000
=======================================================================================
71,370,000
=======================================================================================
VERMONT-0.08%
Vermont (State of) Student Assistance Corp.;
Student Loan VRD Series 1985 RB (LOC-State
Street Bank & Trust Co.)
2.05%, 01/01/08(b)(m) -- VMIG-1 2,640 2,640,000
=======================================================================================
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
<Caption>
- ---------------------------------------------------------------------------------------
VIRGINIA-1.05%
Henrico (County of) Economic Development
Authority (Westminster Canterbury);
Residential Care Facilities VRD Series 2003
B RB (LOC-KBC Bank N.V.)
2.29%, 07/01/08(b)(c) -- VMIG-1 $17,100 $ 17,100,000
- ---------------------------------------------------------------------------------------
Lynchburg (City of) Industrial Development
Authority (Lynchburg College); VRD Series
2004 RB (LOC-SunTrust Bank)
2.29%, 12/01/34(b)(c) -- VMIG-1 6,275 6,275,000
- ---------------------------------------------------------------------------------------
Newport News (City of) Redevelopment &
Housing Authority (Springhouse Apartments
Project); Multi-Family Housing VRD Series
2001 RB (CEP-Federal Home Loan Mortgage
Corp.)
2.30%, 09/01/26(c) A-1+ -- 2,000 2,000,000
- ---------------------------------------------------------------------------------------
Norfolk (City of) Redevelopment & Housing
Authority (E2F Student Housing LLC
Project); VRD Series 2005 RB (LOC-Bank of
America, N.A.)
2.30%, 07/01/34(b)(c) -- VMIG-1 7,000 7,000,000
- ---------------------------------------------------------------------------------------
Rockingham (County of) Industrial Development
Authority (Sunnyside Presbyterian Home);
Residential Care Facilities VRD Series 2003
RB (LOC-Branch Banking & Trust Co.)
2.27%, 12/01/33(b)(c) A-1 -- 750 750,000
- ---------------------------------------------------------------------------------------
Suffolk (City of) Redevelopment & Housing
Authority (Oak Springs Apartments);
Multi-Family Housing VRD Series 1999 RB
(CEP-Federal Home Loan Mortgage Corp.)
2.30%, 04/11/05(c) -- VMIG-1 1,900 1,900,000
=======================================================================================
35,025,000
=======================================================================================
WASHINGTON-6.72%
ABN AMRO Munitops Ctfs. Trust (City of
Seattle Municipal Light & Power);
Multi-State Non-AMT VRD Series 2002-12
Ctfs. (Acquired 05/25/04; Cost $9,755,000)
2.33%, 03/01/09(c)(d)(e) -- VMIG-1 9,755 9,755,000
- ---------------------------------------------------------------------------------------
ABN AMRO Munitops Ctfs. Trust (City of
Seattle); Multi-State Non-AMT VRD Limited
Tax Series 2003-7 GO Ctfs. (Acquired
05/13/03; Cost $10,685,000)
2.33%, 07/01/10(c)(d)(e)(j) -- -- 10,685 10,685,000
- ---------------------------------------------------------------------------------------
</Table>
F-21
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
WASHINGTON-(CONTINUED)
ABN AMRO Munitops Ctfs. Trust (King County);
Multi-State Non-AMT VRD Limited Tax Series
2001-1 GO Ctfs. (Acquired 01/04/01; Cost
$10,000,000)
2.33%, 07/01/06(c)(d)(e) -- VMIG-1 $10,000 $ 10,000,000
- ---------------------------------------------------------------------------------------
Bremerton (City of) (Kitsap Regional
Conference Center); VRD Series 2003 RB
(LOC-Bank of America, N.A.)
2.35%, 12/01/28(b)(c)(j) -- -- 2,565 2,565,000
- ---------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (State of Washington
Public Power Supply Systems Project No. 2);
VRD Series 1996-4703 A COP (Acquired
05/02/01; Cost $5,870,000)
2.32%, 07/01/11(c)(d)(e) A-1+ -- 5,870 5,870,000
- ---------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (State of Washington);
VRD Series 1998-4701 A COP (Acquired
07/20/00; Cost $14,400,000)
2.32%, 05/01/18(c)(d)(e) A-1+ -- 14,400 14,400,000
- ---------------------------------------------------------------------------------------
Everett (City of); Limited Tax VRD Series
2001 GO (LOC-Bank of America, N.A.)
2.35%, 12/01/21(b)(c)(j) -- -- 2,600 2,600,000
- ---------------------------------------------------------------------------------------
Everett (City of) Public Facilities District;
Commercial Paper Notes (LOC-Bank of
America, N.A.)
2.08%, 06/09/05(b) A-1+ -- 34,700 34,700,000
- ---------------------------------------------------------------------------------------
Everett (City of) Public Facilities District;
Commercial Paper TRAN (LOC-Bank of America,
N.A.)
2.08%, 06/09/05(b) A-1+ P-1 16,800 16,800,000
- ---------------------------------------------------------------------------------------
Issaquah (City of) Community Properties; VRD
Special Revenue Series 2001 A RB (LOC-Bank
of America, N.A.)
2.30%, 02/15/21(b)(c) -- VMIG-1 10,150 10,150,000
- ---------------------------------------------------------------------------------------
JPMorgan PUTTERs (State of Washington);
Unlimited Tax VRD Series 2004 593 GO
(Acquired 11/18/04; Cost $1,500,000)
2.32%, 07/01/12(c)(d)(e) -- VMIG-1 1,500 1,500,000
- ---------------------------------------------------------------------------------------
King (County of) Economic Enterprise Corp.
(Puget Sound Blood Center Project); VRD
Series 1998 RB (LOC-U.S. Bank N.A.)
2.35%, 04/01/23(b)(c) -- VMIG-1 3,700 3,700,000
- ---------------------------------------------------------------------------------------
King (County of) Water & Sewer; VRD Jr. Lien
Series 2001 B RB(LOC-Landesbank Hessen-
Thuringen Girozentrale)
2.27%, 01/01/32(b)(c) A-1+ VMIG-1 2,000 2,000,000
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
<Caption>
- ---------------------------------------------------------------------------------------
WASHINGTON-(CONTINUED)
Lake Tapps Parkway Properties; Special
Revenue VRD Series 1999 A RB (LOC- U.S.
Bank N.A.)
2.32%, 12/01/19(b)(c) -- VMIG-1 $11,800 $ 11,800,000
- ---------------------------------------------------------------------------------------
Lake Tapps Parkway Properties; Special
Revenue VRD Series 1999 B RB (LOC- U.S.
Bank N.A.)
2.32%, 12/01/19(b)(c) -- VMIG-1 800 800,000
- ---------------------------------------------------------------------------------------
Morgan Stanley & Co. Inc. Trust Floater Ctfs.
(Port of Seattle); VRD Series 2002-739D RB
(Acquired 07/21/04; Cost $5,000,000)
2.32%, 09/01/20(c)(d)(e) A-1 -- 5,000 5,000,000
- ---------------------------------------------------------------------------------------
Pierce (County of) Economic Development Corp.
(Weyerhaeuser Real Estate); Special Revenue
VRD Series 1997 RB (LOC-Bank of America,
N.A.)
2.35%, 01/01/27(b)(c) A-1+ VMIG-1 12,705 12,705,000
- ---------------------------------------------------------------------------------------
Seattle (City of) Housing Authority (Bayview
Manor Project); Low Income Housing
Assistance VRD Series 1994 B RB (LOC- U.S.
Bank N.A.)
2.35%, 05/01/19(b)(c) A-1+ -- 2,340 2,340,000
- ---------------------------------------------------------------------------------------
Seattle (City of) Housing Authority (Pioneer
Human Services Project); Refunding VRD
Series 1995 RB (LOC-U.S. Bank N.A.)
2.35%, 12/01/15(b)(c) A-1+ -- 2,295 2,295,000
- ---------------------------------------------------------------------------------------
Seattle (Port of) Industrial Development
Corp. (Sysco Food Services Project);
Refunding VRD Series 1994 IDR
2.32%, 11/01/25(c) A-1+ VMIG-1 6,208 6,208,000
- ---------------------------------------------------------------------------------------
Snohomish (County of) Housing Authority (Ebey
Arms Centerhouse Project); Refunding
Housing VRD Series 2003 RB (LOC-Bank of
America, N.A.)
2.35%, 12/01/34(b)(c)(j) -- -- 6,245 6,245,000
- ---------------------------------------------------------------------------------------
Vancouver (City of) Housing Authority
(Village Park Apartments Project); Housing
VRD Series 2000 RB (LOC-U.S. Bank N.A.)
2.32%, 11/02/05(b)(c) A-1+ -- 1,340 1,340,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (Central Puget Sound
Regional Transit Authority); Sales Tax &
Motor VRD Series 2001 A46 RB (Acquired
11/12/03; Cost $6,270,000)
2.11%, 11/10/05(d)(e)(g)(l)(n) -- VMIG-1 6,270 6,270,000
- ---------------------------------------------------------------------------------------
</Table>
F-22
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
WASHINGTON-(CONTINUED)
Washington (State of) Economic Development
Finance Authority (Seadrunar Recycling LLC
Project); Economic Development VRD Series
2000 E RB (LOC- U.S. Bank N.A.)
2.35%, 08/01/25(b)(c) A-1+ -- $ 2,735 $ 2,735,000
- ---------------------------------------------------------------------------------------
Washington (State of) Health Care Facilities
Authority (National Healthcare Research &
Education Finance Corp.); Lease VRD Series
2000 RB (LOC-BNP Paribas)
2.30%, 01/01/32(b)(c) -- VMIG-1 6,800 6,800,000
- ---------------------------------------------------------------------------------------
Washington (State of) Higher Education
Facilities Authority (Cornish College Arts
Project); VRD Series 2003 A RB (LOC- Bank
of America, N.A.)
2.35%, 12/01/33(b)(c) -- VMIG-1 5,000 5,000,000
- ---------------------------------------------------------------------------------------
Washington (State of) Housing Finance
Commission (Hearthstone Project);
Non-Profit Revenue Refunding VRD Series
2004 RB (LOC-Bank of America, N.A.)
2.30%, 12/01/29(b)(c) A-1+ -- 12,000 12,000,000
- ---------------------------------------------------------------------------------------
Washington (State of) Housing Finance
Commission (Nikkei Concerns Project);
Non-Profit Housing VRD Series 1994 RB
(LOC-U.S. Bank N.A.)
2.35%, 10/01/19(b)(c) A-1+ -- 3,605 3,605,000
- ---------------------------------------------------------------------------------------
Washington (State of) Housing Finance
Commission (The Evergreen School Project);
Non-Profit VRD Series 2002 RB (LOC-Wells
Fargo Bank N.A.)
2.28%, 07/01/28(b)(c) A-1+ -- 2,660 2,660,000
- ---------------------------------------------------------------------------------------
Washington (State of) Housing Finance
Commission (University Preparatory Academy
Project); Non-Profit VRD Series 2000 RB
(LOC-Bank of America, N.A.)
2.35%, 07/01/30(b)(c) -- VMIG-1 1,250 1,250,000
- ---------------------------------------------------------------------------------------
Washington (State of) Housing Finance
Commission (YMCA of Columbia-Willamette);
Non-Profit Revenue VRD Series 1999 RB
(LOC-Wells Fargo Bank N.A.)
2.33%, 08/01/24(b)(c) A-1+ -- 2,300 2,300,000
- ---------------------------------------------------------------------------------------
Washington (State of) Public Power Supply
System (Nuclear Project No. 3); Refunding
Series 1993 C RB
5.00%, 07/01/05(f) AAA Aaa 3,850 3,878,185
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
<Caption>
- ---------------------------------------------------------------------------------------
WASHINGTON-(CONTINUED)
Washington (State of); Unlimited Tax Series
1995C, AT-8 & R-95B GO
5.90%, 07/01/05(g)(i) NRR NRR $ 5,000 $ 5,047,805
=======================================================================================
225,003,990
=======================================================================================
WEST VIRGINIA-0.19%
Monongalia (County of) Building Community
Hospital (Monongalia General Hospital);
Refunding VRD Series 2002 A RB
(LOC-JPMorgan Chase Bank)
2.29%, 07/01/17(b)(c) A-1+ VMIG-1 645 645,000
- ---------------------------------------------------------------------------------------
West Virginia (State of) Hospital Finance
Authority (VHA Mid-Atlantic/Cap); Hospital
VRD Series 1985 F RB
2.30%, 12/01/25(c)(f) A-1+ -- 5,700 5,700,000
=======================================================================================
6,345,000
=======================================================================================
WISCONSIN-3.39%
Kimberly (City of) (Fox Cities YMCA Project);
VRD Series 2002 RB (LOC-M&I Marshall &
Ilsley Bank)
2.35%, 04/01/32(b)(c) -- VMIG-1 1,940 1,940,000
- ---------------------------------------------------------------------------------------
Menomonee Falls (City of); Refunding Sewer
System Series 2004 RB
2.00%, 05/01/05(f) -- Aaa 1,425 1,425,652
- ---------------------------------------------------------------------------------------
Waukesha (County of); Promissory Notes
Unlimited Tax Series 2004 GO
2.00%, 04/01/05 -- Aaa 1,500 1,500,000
- ---------------------------------------------------------------------------------------
West Allis (City of) (State Fair Park
Exposition Center Inc.); VRD Series 2001 RB
(LOC- U.S. Bank N.A.)
2.35%, 08/01/28(b)(c) -- VMIG-1 2,300 2,300,000
- ---------------------------------------------------------------------------------------
Wind Point (City of) (Johnson Foundation
Project); VRD Series 2000 RB (LOC-Bank of
Montreal)
2.33%, 09/01/35(b)(c) A-1+ -- 4,665 4,665,000
- ---------------------------------------------------------------------------------------
Wisconsin (State of) Health & Educational
Facilities Authority (Eastcastle Place
Inc.); VRD Series 2004 C RB (LOC-ABN AMRO
Bank N.V.)
2.30%, 12/01/34(b)(c) A-1 -- 7,000 7,000,000
- ---------------------------------------------------------------------------------------
Wisconsin (State of) Health & Educational
Facilities Authority (Mequon Jewish
Project); VRD Series 2003 RB (LOC-JPMorgan
Chase Bank)
2.32%, 07/01/28(b)(c) -- VMIG-1 2,150 2,150,000
- ---------------------------------------------------------------------------------------
</Table>
F-23
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
WISCONSIN-(CONTINUED)
Wisconsin (State of) Health & Educational
Facilities Authority (Mercy Health System);
Pooled Loan VRD Series 2003 I RB (LOC-M&I
Marshall & Ilsley Bank)
2.33%, 06/01/23(b)(c) -- VMIG-1 $ 9,570 $ 9,570,000
- ---------------------------------------------------------------------------------------
Wisconsin (State of) Health & Educational
Facilities Authority (Mercy Health System);
VRD Series 2003 C RB (LOC-M&I Marshall &
Ilsley Bank)
2.31%, 08/15/23(b)(c) -- VMIG-1 7,300 7,300,000
- ---------------------------------------------------------------------------------------
Wisconsin (State of) Health & Educational
Facilities Authority (Sinai Samaritan
Medical Center Inc.); VRD Series 1994 A RB
(LOC-M&I Marshall & Ilsley Bank)
2.31%, 09/01/19(b)(c) A-1 -- 5,649 5,649,000
- ---------------------------------------------------------------------------------------
Wisconsin (State of) Health & Educational
Facilities Authority (St. John's Home);
Pooled Loan VRD Series 2003 J RB (LOC-M&I
Marshall & Ilsley Bank)
2.33%, 07/01/23(b)(c) -- VMIG-1 4,250 4,250,000
- ---------------------------------------------------------------------------------------
Wisconsin (State of) Health & Educational
Facilities Authority (St. Luke's Medical
Center); VRD Series 1987 RB (LOC-KBC Bank
N.V.) (Acquired 06/01/04; Cost $28,600,000)
2.30%, 12/01/17(b)(c)(e) A-1 -- 28,600 28,600,000
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
<Caption>
- ---------------------------------------------------------------------------------------
WISCONSIN-(CONTINUED)
Wisconsin (State of) Health & Educational
Facilities Authority (St. Mary's School);
VRD Series 2004 RB (LOC-M&I Marshall &
Ilsley Bank)
2.31%, 08/01/19(b)(c) A-1 -- $ 2,695 $ 2,695,000
- ---------------------------------------------------------------------------------------
Wisconsin (State of) Petroleum Inspection
Fee; Series 2000 A RB
5.75%, 07/01/05(g)(i) AA- Aa3 8,000 8,235,885
- ---------------------------------------------------------------------------------------
Wisconsin (State of) School Districts Cash
Flow Management Program; Series 2004 A-1
COP
3.00%, 09/20/05(p) -- -- 8,000 8,048,916
- ---------------------------------------------------------------------------------------
Wisconsin (State of) School Districts Cash
Flow Management Program; Series 2004 B-1
COP
3.50%, 11/01/05 -- MIG-1 15,000 15,116,273
- ---------------------------------------------------------------------------------------
Wisconsin (State of); Unlimited Tax Series
1995 A GO
6.10%, 05/01/05(g)(i) NRR Aaa 3,000 3,012,436
=======================================================================================
113,458,162
=======================================================================================
TOTAL INVESTMENTS-99.22% (Cost
$3,322,342,840)(q) 3,322,342,840
=======================================================================================
OTHER ASSETS LESS LIABILITIES-0.78% 26,258,985
=======================================================================================
NET ASSETS-100.00% $3,348,601,825
_______________________________________________________________________________________
=======================================================================================
</Table>
Investment Abbreviations:
<Table>
ACES - Automatically Convertible Extendable Security
AMT - Alternative Minimum Tax
BAN - Bond Anticipation Note
CEP - Credit Enhancement Provider
COP - Certificate of Participation
Ctfs. - Certificates
GO - General Obligation Bonds
IDR - Industrial Development Revenue Bonds
Jr. - Junior
LOC - Letter of Credit
MERLOT - Municipal Exempt Receipts Liquidity Optional Tender
NRR - Not Re-Rated
P-Floats - Puttable Floating Option Tax-Exempt Receipt
PCR - Pollution Control Revenue Bonds
PUTTERs - Putable Tax Exempt Receipts
RAN - Revenue Anticipation Notes
RB - Revenue Bonds
RN - Revenue Notes
Sr. - Senior
Sub. - Subordinated
TAN - Tax Anticipation Notes
TRAN - Tax and Revenue Anticipation Notes
VRD - Variable Rate Demand
Wts. - Warrants
</Table>
F-24
Notes to Schedule of Investments:
(a) Ratings assigned by Standard & Poor's Corporation ("S&P") and Moody's
Investors Service, Inc. ("Moody's"), except as indicated in note (j) and (p)
below. NRR indicates a security that is not re-rated subsequent to funding
of an escrow fund (consisting of U.S. Treasury obligations held by a bank
custodian); this funding is pursuant to an advance refunding of this
security. Ratings are not covered by the Report of Independent Registered
Public Accounting Firm.
(b) Principal and interest payments are fully enhanced by a letter of credit
from the bank listed or a predecessor bank, branch or subsidiary.
(c) Demand security; payable upon demand by the Fund at specified time intervals
no greater than thirteen months. Interest rate is redetermined weekly. Rate
shown is the rate in effect on March 31, 2005.
(d) Synthetic municipal instruments; 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.
(e) 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 March 31, 2005 was
$768,868,000, which represented 22.96% of the Fund's Net Assets. Unless
otherwise indicated, these securities are not considered to be illiquid.
(f) Principal and/or 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.
(g) Security has an irrevocable call or mandatory put by the issuer. Maturity
date reflects such call or put.
(h) Demand security; payable upon demand by the Fund at specified time intervals
no greater than thirteen months. Interest rate is redetermined
semi-annually. Rate shown is the rate in effect on March 31, 2005.
(i) Advance refunded; secured by an escrow fund of U.S. Treasury obligations.
(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 rate is redetermined daily. Rate
shown is the rate in effect on March 31, 2005.
(l) Demand security; payable upon demand by the Fund at specified time intervals
no greater than thirteen months. Interest rate is redetermined at
intermittent intervals. Rate shown is the rate in effect on March 31, 2005.
(m) Demand security; payable upon demand by the Fund at specified time intervals
no greater than thirteen months. Interest rate is redetermined monthly. Rate
shown is the rate in effect on March 31, 2005.
(n) Security considered to be illiquid; the portfolio is limited to investing
10% of Net Assets in illiquid securities. The aggregate market value of
these securities considered illiquid at March 31, 2005 was $58,515,000,
which represented 1.75% of the Fund's Net Assets.
(o) Secured by an escrow fund of U.S. Treasury obligations.
(p) Determined by the investment advisor to be of comparable quality to the
rated securities in which the Fund may invest, pursuant to guidelines of
quality adopted by the Board of Trustees and followed by the investment
advisor.
(q) Also represents cost for federal income tax purposes.
See accompanying notes which are an integral part of the financial statements.
F-25
STATEMENT OF ASSETS AND LIABILITIES
March 31, 2005
<Table>
ASSETS:
Investments, at value (cost $3,322,342,840) $3,322,342,840
- ------------------------------------------------------------
Cash 11,284,350
- ------------------------------------------------------------
Receivables for:
Investments sold 6,190,049
- ------------------------------------------------------------
Interest 13,396,750
- ------------------------------------------------------------
Amount due from advisor 94,353
- ------------------------------------------------------------
Investment for trustee deferred compensation
and retirement plans 116,507
- ------------------------------------------------------------
Other assets 148,419
============================================================
Total assets 3,353,573,268
____________________________________________________________
============================================================
LIABILITIES:
Payables for:
Dividends 4,412,045
- ------------------------------------------------------------
Trustee deferred compensation and
retirement plans 231,330
- ------------------------------------------------------------
Accrued distribution fees 132,821
- ------------------------------------------------------------
Accrued trustees' fees 9,908
- ------------------------------------------------------------
Accrued transfer agent fees 75,398
- ------------------------------------------------------------
Accrued operating expenses 109,941
============================================================
Total liabilities 4,971,443
============================================================
Net assets applicable to shares outstanding $3,348,601,825
____________________________________________________________
============================================================
NET ASSETS CONSIST OF:
Shares of beneficial interest $3,348,663,731
- ------------------------------------------------------------
Undistributed net realized gain (loss) from
investment securities (61,906)
============================================================
$3,348,601,825
____________________________________________________________
============================================================
NET ASSETS:
Institutional Class $2,117,055,426
____________________________________________________________
============================================================
Private Investment Class $ 196,616,507
____________________________________________________________
============================================================
Personal Investment Class $ 10,877,052
____________________________________________________________
============================================================
Cash Management Class $ 725,123,738
____________________________________________________________
============================================================
Reserve Class $ 9,308,226
____________________________________________________________
============================================================
Resource Class $ 289,620,876
____________________________________________________________
============================================================
SHARES OUTSTANDING, $0.001 PAR VALUE PER
SHARE, UNLIMITED NUMBER OF SHARES
AUTHORIZED:
Institutional Class 2,117,040,310
____________________________________________________________
============================================================
Private Investment Class 196,606,167
____________________________________________________________
============================================================
Personal Investment Class 10,874,255
____________________________________________________________
============================================================
Cash Management Class 725,129,583
____________________________________________________________
============================================================
Reserve Class 9,306,389
____________________________________________________________
============================================================
Resource Class 289,623,534
____________________________________________________________
============================================================
Net asset value, offering and redemption
price per share for each class $ 1.00
____________________________________________________________
============================================================
</Table>
See accompanying notes which are an integral part of the financial statements.
F-26
STATEMENT OF OPERATIONS
For the year ended March 31, 2005
<Table>
INVESTMENT INCOME:
Interest $45,234,430
=========================================================================
EXPENSES:
Advisory fees 6,427,161
- -------------------------------------------------------------------------
Administrative services fees 593,616
- -------------------------------------------------------------------------
Custodian fees 116,420
- -------------------------------------------------------------------------
Distribution fees:
Private Investment Class 896,739
- -------------------------------------------------------------------------
Personal Investment Class 78,707
- -------------------------------------------------------------------------
Cash Management Class 682,153
- -------------------------------------------------------------------------
Reserve Class 103,030
- -------------------------------------------------------------------------
Resource Class 509,985
- -------------------------------------------------------------------------
Transfer agent fees 505,749
- -------------------------------------------------------------------------
Trustees' fees and retirement benefits 94,630
- -------------------------------------------------------------------------
Other 650,568
=========================================================================
Total expenses 10,658,758
=========================================================================
Less: Fees waived and expenses reimbursed (2,284,421)
=========================================================================
Net expenses 8,374,337
=========================================================================
Net investment income 36,860,093
=========================================================================
Net realized gain (loss) from investment securities (60,974)
=========================================================================
Net increase in net assets resulting from operations $36,799,119
_________________________________________________________________________
=========================================================================
</Table>
See accompanying notes which are an integral part of the financial statements.
F-27
STATEMENT OF CHANGES IN NET ASSETS
For the years ended March 31, 2005 and 2004
<Table>
<Caption>
2005 2004
- ----------------------------------------------------------------------------------------------
OPERATIONS:
Net investment income $ 36,860,093 $ 22,690,885
- ----------------------------------------------------------------------------------------------
Net realized gain (loss) from investment securities (60,974) 40,841
==============================================================================================
Net increase in net assets resulting from operations 36,799,119 22,731,726
==============================================================================================
Distributions to shareholders from net investment income:
Institutional Class (24,315,215) (14,405,472)
- ----------------------------------------------------------------------------------------------
Private Investment Class (1,826,828) (1,230,193)
- ----------------------------------------------------------------------------------------------
Personal Investment Class (70,609) (37,490)
- ----------------------------------------------------------------------------------------------
Cash Management Class (7,900,652) (5,040,826)
- ----------------------------------------------------------------------------------------------
Reserve Class (39,173) (8,425)
- ----------------------------------------------------------------------------------------------
Resource Class (2,707,616) (1,968,479)
==============================================================================================
Decrease in net assets resulting from distributions (36,860,093) (22,690,885)
==============================================================================================
Share transactions-net:
Institutional Class 163,325,063 632,519,818
- ----------------------------------------------------------------------------------------------
Private Investment Class 46,220,760 (77,436,378)
- ----------------------------------------------------------------------------------------------
Personal Investment Class 483,638 (6,598,054)
- ----------------------------------------------------------------------------------------------
Cash Management Class (43,002,612) 150,447,508
- ----------------------------------------------------------------------------------------------
Reserve Class (4,721,188) 1,376,091
- ----------------------------------------------------------------------------------------------
Resource Class (9,579,676) 39,025,099
==============================================================================================
Net increase in net assets resulting from share
transactions 152,725,985 739,334,084
==============================================================================================
Net increase in net assets 152,665,011 739,374,925
==============================================================================================
NET ASSETS:
Beginning of year 3,195,936,814 2,456,561,889
==============================================================================================
End of year (including undistributed net investment income
of $0 and $0, respectively) $3,348,601,825 $3,195,936,814
______________________________________________________________________________________________
==============================================================================================
</Table>
See accompanying notes which are an integral part of the financial statements.
F-28
NOTES TO FINANCIAL STATEMENTS
March 31, 2005
NOTE 1--SIGNIFICANT ACCOUNTING POLICIES
Tax-Free Investments Trust (the "Trust") is registered under the Investment
Company Act of 1940, as amended (the "1940 Act"), as a diversified, open-end
management investment company. The Trust is organized as a Delaware statutory
trust consisting of one portfolio, the Tax-Free Cash Reserve Portfolio (the
"Fund"). The Fund currently offers multiple classes of shares. Matters affecting
each class are voted on exclusively by the shareholders of each class.
The Fund's investment objective is to provide as high a level of tax-exempt
income as is consistent with the preservation of capital and maintenance of
liquidity. Each company listed in the Schedule of Investments is organized in
the United States of America unless otherwise noted.
Under the Trust's organizational documents, each Trustee, officer, employee
or other agent of the Trust (including the Trust's investment manager) is
indemnified against certain liabilities that may arise out of performance of
their duties to the Fund. Additionally, in the normal course of business, the
Fund enters into contracts that contain a variety of indemnification clauses.
The Fund's maximum exposure under these arrangements is unknown as this would
involve future claims that may be made against the Fund that have not yet
occurred. However, the Fund has not had prior claims or losses pursuant to these
contracts.
The preparation of financial statements in conformity with accounting
principles generally accepted in the United States of America requires
management to make estimates and assumptions that affect the reported amounts of
assets and liabilities at the date of the financial statements and the reported
amounts of revenues and expenses during the reporting period. Actual results
could differ from those estimates. The following is a summary of the significant
accounting policies followed by the Fund in the preparation of its financial
statements.
A. SECURITY VALUATIONS -- The Fund's securities are valued on the basis of
amortized cost which approximates market value as permitted by Rule 2a-7
under 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.
Brokerage commissions and mark ups are considered transaction costs and
are recorded as an increase to the cost basis of securities purchased
and/or a reduction of proceeds on a sale of securities. Such transaction
costs are included in the determination of realized gain (loss) from
investment securities reported in the Statement of Operations and the
Statement of Changes in Net Assets and the realized net gains (losses) on
securities per share in the Financial Highlights. Transaction costs are
included in the calculation of the Fund's net asset value and, accordingly,
they reduce the Fund's total returns. These transaction costs are not
considered operating expenses and are not reflected in net investment
income reported in the Statement of Operations and Statement of Changes in
Net Assets, or the net investment income per share and ratios of expenses
and net investment income reported in the Financial Highlights, nor are
they limited by any expense limitation arrangements between the Fund and
the advisor.
The Fund allocates realized capital gains and losses to a class based on
the relative net assets of each class. The Fund allocates income to a class
based on the relative value of the settled shares of each class.
C. DISTRIBUTIONS -- Distributions from income are declared daily and paid
monthly. Distributions from net realized capital gain, if any, are
generally paid annually and recorded on ex-dividend date. The Fund may
elect to use a portion of the proceeds from redemptions as distributions
for federal income tax purposes.
D. FEDERAL INCOME TAXES -- The Fund intends to comply with the requirements of
Subchapter M of the Internal Revenue Code necessary to qualify as a
regulated investment company and, as such, will not be subject to federal
income taxes on otherwise taxable income (including net realized capital
gain) which is distributed to shareholders. Therefore, no provision for
federal income taxes is recorded in the financial statements.
In addition, the Fund intends to invest in securities to allow it to
qualify to pay shareholders "exempt interest dividends", as defined in the
Internal Revenue Code of 1986, as amended.
E. EXPENSES -- Fees provided for under the Rule 12b-1 plan of a particular
class of the Fund and which are directly attributable to that class are
charged to the operations of such class. All other expenses are allocated
among the classes based on relative net assets.
NOTE 2--ADVISORY FEES AND OTHER FEES PAID TO AFFILIATES
The Trust has entered into a master investment advisory agreement with A I M
Advisors, Inc. ("AIM"). Under the terms of the investment advisory agreement,
the Fund pays an advisory fee to AIM at the annual rate of 0.25% of the first
$500 million of the Fund's average daily net assets plus 0.20% of the Fund's
average daily net assets in excess of $500 million. AIM has voluntarily agreed
to waive advisory fees and/or reimburse expenses to the extent necessary to
limit total annual fund operating expenses (excluding certain items discussed
below) to 0.22% of the Fund's average daily net assets. In determining the
advisor's obligation to waive advisory fees and/or reimburse expenses, the
following expenses are not taken into account, and could cause the total annual
fund operating expenses to exceed the limit stated above: (i) Rule 12b-1 plan
fees, if any; (ii) interest; (iii) taxes; (iv) extraordinary items (these are
expenses that are not anticipated to arise from the Fund's day-to-day
operations), or items designated as such by the Fund's Board of Trustees; (v)
expenses related to a merger or reorganization, as approved by the Fund's Board
of Trustees; (vi) expenses that the Fund has incurred but did not actually pay
because of an expense offset arrangement; (vii) trustees' fees; and (viii)
federal registration fees. Currently, in addition to the expense
F-29
reimbursement arrangement with AMVESCAP PLC ("AMVESCAP") described more fully
below, the only expense offset arrangements from which the Fund may benefit are
in the form of credits that the Fund receives from banks where the Fund or its
transfer agent has deposit accounts in which it holds uninvested cash. Those
credits are used to pay certain expenses incurred by the Fund. Voluntary fee
waivers or reimbursements may be modified or discontinued at any time upon
consultation with the Board of Trustees without further notice to investors.
For the year ended March 31, 2005, AIM waived fees of $1,559,355.
For the year ended March 31, 2005, at the request of the Trustees of the
Trust, AMVESCAP agreed to reimburse $1,679 of expenses incurred by the Fund in
connection with market timing matters in the AIM Funds, including legal, audit,
shareholder reporting, communications and trustee expenses. These expenses along
with the related expense reimbursement, are included in the Statement of
Operations.
The Trust, pursuant to a master administrative services agreement with AIM,
has agreed to pay AIM for certain administrative costs incurred in providing
accounting services to the Fund. Pursuant to such agreement, for the year ended
March 31, 2005, AIM was paid $593,616.
The Trust, pursuant to a transfer agency and service agreement, has agreed
to pay AIM Investment Services, Inc. ("AISI") a fee for providing transfer
agency and shareholder services to the Fund. During the year ended March 31,
2005, AISI retained $459,758.
Under the terms of a master distribution agreement between Fund Management
Company ("FMC") and the Trust, FMC acts as the exclusive distributor of the
Fund's shares. The Trust has adopted a master distribution plan pursuant to Rule
12b-1 under the 1940 Act with respect to the Fund's Private Investment Class,
Personal Investment Class, Cash Management Class, Reserve Class and Resource
Class (the "Plan"). The Plan provides that the Private Investment Class, the
Personal Investment Class, the Cash Management Class, the Reserve Class and the
Resource Class pay up to the maximum annual rate of 0.50%, 0.75%, 0.10%, 1.00%
and 0.20%, respectively, of the average daily net assets attributable to such
class. Of this amount, up to 0.25% of the average daily net assets of each class
may be paid to furnish continuing personal shareholder services to customers who
purchase and own shares of such classes. Any amounts not paid as a service fee
under such Plan would constitute an asset-based sales charge. NASD Rules also
impose a cap on the total amount of sales charges, including asset-based sales
charges, that may be paid by any class of shares of the Fund. Currently, FMC has
elected to waive a portion of its compensation payable by the Fund such that
compensation paid pursuant to the Plan with respect to the Private Investment
Class, the Personal Investment Class, the Cash Management Class, the Reserve
Class and the Resource Class equals the maximum annual rate of 0.25%, 0.55%,
0.08%, 0.87% and 0.16%, respectively, of the average daily net assets
attributable to such class. Further, FMC voluntarily waived additional Rule
12b-1 plan fees for the Reserve Class during the year in order to increase the
yield. Waivers may be modified or discontinued at any time. Pursuant to the
Plan, for the year ended March 31, 2005, the Private Investment Class, the
Personal Investment Class, the Cash Management Class, the Reserve Class and the
Resource Class paid $448,369, $57,719, $545,722 $87,429 and $407,988,
respectively, after FMC waived Plan fees of $448,370, $20,988, $136,431, $15,601
and $101,997, respectively.
Certain officers and trustees of the Trust are officers and directors of
AIM, FMC and/or AISI.
NOTE 3--TRUSTEES' FEES
Trustees' fees represent remuneration paid to each Trustee of the Trust who is
not an "interested person" of AIM. Trustees have the option to defer
compensation payable by the Trust. Those Trustees who defer compensation have
the option to select various AIM Funds in which their deferral accounts shall be
deemed to be invested.
Current Trustees are eligible to participate in a retirement plan that
provides for benefits to be paid upon retirement to Trustees over a period of
time based on the number of years of service. The Fund may have certain former
Trustees that also participate in a retirement plan and receive benefits under
such plan.
Obligations under the deferred compensation and retirement plans represent
unsecured claims against the general assets of the Fund.
During the year ended March 31, 2005, the Fund paid legal fees of $13,558
for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the
Independent Trustees. A member of that firm is a Trustee of the Trust.
NOTE 4--BORROWINGS
Pursuant to an exemptive order from the SEC, the Fund may participate in an
interfund lending facility that AIM has established for temporary borrowings by
the AIM Funds. An interfund loan will be made under this facility only if the
loan rate (an 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. A loan will be secured by collateral if the
Fund's aggregate borrowings from all sources exceeds 10% of the Fund's total
assets. To the extent that the loan is required to be secured by collateral, the
collateral is marked to market daily to ensure that the market value is at least
102% of the outstanding principal value of the loan. The Fund did not borrow or
lend under the facility during the year ended March 31, 2005.
Additionally, the Fund is permitted to temporarily carry a negative or
overdrawn balance in its account with The Bank of New York, the custodian bank.
To compensate the custodian bank for such overdrafts, the overdrawn Fund may
either (i) leave funds in the account so the custodian can be compensated by
earning the additional interest; or (ii) compensate by paying the custodian
bank. In either case, the custodian bank will be compensated at an amount equal
to the Federal Funds rate plus 100 basis points.
F-30
NOTE 5--DISTRIBUTIONS TO SHAREHOLDERS AND TAX COMPONENTS OF NET ASSETS
DISTRIBUTIONS TO SHAREHOLDERS:
The tax character of distributions paid during the years ended March 31, 2005
and 2004 was as follows:
<Table>
<Caption>
2005 2004
- ----------------------------------------------------------------------------------------
Distributions paid from ordinary income--Tax Exempt $36,860,093 $22,690,885
________________________________________________________________________________________
========================================================================================
</Table>
TAX COMPONENTS OF NET ASSETS:
As of March 31, 2005, the components of net assets on a tax basis were as
follows:
<Table>
<Caption>
2005
- ----------------------------------------------------------------------------
Undistributed ordinary income--Tax Exempt $ 185,341
- ----------------------------------------------------------------------------
Temporary book/tax differences (185,341)
- ----------------------------------------------------------------------------
Capital loss carryforward (54,712)
- ----------------------------------------------------------------------------
Post-October capital loss deferral (7,194)
- ----------------------------------------------------------------------------
Shares of beneficial interest 3,348,663,731
============================================================================
Total net assets $3,348,601,825
____________________________________________________________________________
============================================================================
</Table>
The temporary book/tax differences are a result of timing differences
between book and tax recognition of income and/or expenses. The Fund's temporary
book/tax differences are the result of the trustee deferral of compensation and
retirement plan expenses.
Capital loss carryforward is calculated and reported as of a specific date.
Results of transactions and other activity after that date may affect the amount
of capital loss carryforward actually available for the Fund to utilize. The
ability to utilize capital loss carryforward in the future may be limited under
the Internal Revenue Code and related regulations based on the results of future
transactions.
The Fund has a capital loss carryforward as of March 31, 2005 which expires
as follows:
<Table>
<Caption>
CAPITAL LOSS
EXPIRATION CARRYFORWARD*
- -----------------------------------------------------------------------------
March 31, 2011 $ 933
- -----------------------------------------------------------------------------
March 31, 2013 53,779
=============================================================================
Total capital loss carryforward $54,712
_____________________________________________________________________________
=============================================================================
</Table>
* Capital loss carryforward as of the date listed above is reduced for
limitations, if any, to the extent required by the Internal Revenue Code.
F-31
NOTE 6--SHARE INFORMATION
The Fund currently offers six different classes of shares: Institutional Class,
Private Investment Class, Personal Investment Class, Cash Management Class,
Reserve Class and Resource Class.
<Table>
<Caption>
CHANGES IN SHARES OUTSTANDING(a)
- ---------------------------------------------------------------------------------------------------------------------------------
YEAR ENDED MARCH 31,
--------------------------------------------------------------------------
2005 2004
----------------------------------- -----------------------------------
SHARES AMOUNT SHARES AMOUNT
- ---------------------------------------------------------------------------------------------------------------------------------
Sold:
Institutional Class 19,309,850,248 $ 19,309,850,248 13,446,683,719 $ 13,446,683,719
- ---------------------------------------------------------------------------------------------------------------------------------
Private Investment Class 442,201,609 442,201,609 489,285,624 489,285,624
- ---------------------------------------------------------------------------------------------------------------------------------
Personal Investment Class 31,788,215 31,788,215 26,756,133 26,756,133
- ---------------------------------------------------------------------------------------------------------------------------------
Cash Management Class 5,913,083,202 5,913,083,202 5,641,820,633 5,641,820,633
- ---------------------------------------------------------------------------------------------------------------------------------
Reserve Class 138,866,847 138,866,847 156,764,612 156,764,612
- ---------------------------------------------------------------------------------------------------------------------------------
Resource Class 1,776,129,695 1,776,129,695 1,508,376,051 1,508,376,051
=================================================================================================================================
Issued as reinvestment of dividends:
Institutional Class 13,098,927 13,098,927 7,301,226 7,301,226
- ---------------------------------------------------------------------------------------------------------------------------------
Private Investment Class 1,185,307 1,185,307 737,747 737,747
- ---------------------------------------------------------------------------------------------------------------------------------
Personal Investment Class 9,987 9,987 4,054 4,054
- ---------------------------------------------------------------------------------------------------------------------------------
Cash Management Class 5,725,182 5,725,182 4,115,815 4,115,815
- ---------------------------------------------------------------------------------------------------------------------------------
Reserve Class 32,528 32,528 8,921 8,921
- ---------------------------------------------------------------------------------------------------------------------------------
Resource Class 2,383,423 2,383,423 1,860,224 1,860,224
=================================================================================================================================
Reacquired:
Institutional Class (19,159,624,112) (19,159,624,112) (12,821,465,127) (12,821,465,127)
- ---------------------------------------------------------------------------------------------------------------------------------
Private Investment Class (397,166,156) (397,166,156) (567,459,749) (567,459,749)
- ---------------------------------------------------------------------------------------------------------------------------------
Personal Investment Class (31,314,564) (31,314,564) (33,358,241) (33,358,241)
- ---------------------------------------------------------------------------------------------------------------------------------
Cash Management Class (5,961,810,996) (5,961,810,996) (5,495,488,940) (5,495,488,940)
- ---------------------------------------------------------------------------------------------------------------------------------
Reserve Class (143,620,563) (143,620,563) (155,397,442) (155,397,442)
- ---------------------------------------------------------------------------------------------------------------------------------
Resource Class (1,788,092,794) (1,788,092,794) (1,471,211,176) (1,471,211,176)
=================================================================================================================================
152,725,985 $ 152,725,985 739,334,084 $ 739,334,084
_________________________________________________________________________________________________________________________________
=================================================================================================================================
</Table>
(a) There are three entities that are each record owners of more than 5% of
the outstanding shares of the Fund and in the aggregate they own 57% of
the outstanding shares of the Fund. AIM Distributors has an agreement
with these entities to sell Fund shares. The Fund, AIM and/or AIM
affiliates may make payments to these entities, which are considered to
be related to the Fund, for providing services to the Fund, AIM and/or
AIM affiliates including but not limited to services such as, securities
brokerage, distribution, third party record keeping and account
servicing. The Trust has no knowledge as to whether all or any portion
of the shares owned of record by these entities are also owned
beneficially.
F-32
NOTE 7--FINANCIAL HIGHLIGHTS
The following schedule presents financial highlights for a share of the Fund
outstanding throughout the periods indicated.
<Table>
<Caption>
CASH MANAGEMENT CLASS
----------------------------------------------------------
YEAR ENDED MARCH 31,
----------------------------------------------------------
2005 2004 2003 2002 2001
- ------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
- ------------------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income 0.01 0.01 0.01 0.02 0.04
========================================================================================================================
Less distributions from net investment income (0.01) (0.01) (0.01) (0.02) (0.04)
========================================================================================================================
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
________________________________________________________________________________________________________________________
========================================================================================================================
Total return(a) 1.16% 0.76% 1.14% 2.08% 3.87%
________________________________________________________________________________________________________________________
========================================================================================================================
Ratios/supplemental data:
Net assets, end of period (000s omitted) $725,124 $768,141 $617,683 $320,502 $15,668
________________________________________________________________________________________________________________________
========================================================================================================================
Ratio of expenses to average net assets:
With fee waivers and/or expense reimbursements 0.30%(b) 0.30% 0.30% 0.30% 0.28%
- ------------------------------------------------------------------------------------------------------------------------
Without fee waivers and/or expense reimbursements 0.37%(b) 0.37% 0.37% 0.38% 0.39%
________________________________________________________________________________________________________________________
========================================================================================================================
Ratio of net investment income to average net assets 1.16%(b) 0.75% 1.12% 1.92% 3.76%
________________________________________________________________________________________________________________________
========================================================================================================================
</Table>
(a) Includes adjustments in accordance with accounting principles generally
accepted in the United States of America.
(b) Ratios are based on average daily net assets of $682,153,242.
NOTE 8--CHANGE IN INDEPENDENT REGISTERED ACCOUNTING FIRM
On March 23, 2005, the Audit Committee (the "Audit Committee") of the Board of
Trustees of the Trust appointed PricewaterhouseCoopers LLP ("PWC") as the
independent registered public accounting firm of the Fund for the fiscal year
ending March 31, 2006. For the prior reporting period, Ernst & Young ("E&Y") was
the Fund's independent registered public accounting firm. The change in the
Fund's independent auditors was part of an effort by the Audit Committee to
increase operational efficiencies by reducing the number of different audit
firms engaged by the Audit Committee to audit AIM Funds with March 31 fiscal
year ends. The Fund is in the process of obtaining a formal resignation from E&Y
as the independent registered public accounting firm of the Fund.
E&Y's report on the financial statements of the Fund for the past two years
did not contain an adverse or disclaimer of opinion, and was not qualified or
modified as to uncertainty, audit scope or accounting principles. During the
period E&Y was engaged, there were no disagreements with E&Y on any matter of
accounting principles or practices, financial statement disclosure, or auditing
scope or procedure which, if not resolved to E&Y's satisfaction, would have
caused it to make reference to that matter in connection with its report.
F-33
NOTE 9--LEGAL PROCEEDINGS
Terms used in the Legal Proceedings Note are defined terms solely for the
purpose of this note.
SETTLED ENFORCEMENT ACTIONS AND INVESTIGATIONS RELATED TO MARKET TIMING
On October 8, 2004, INVESCO Funds Group, Inc. ("IFG") (the former investment
advisor to certain AIM Funds) and A I M Advisors, Inc. ("AIM") (the Fund's
investment advisor) reached final settlements with certain regulators, including
without limitation the Securities and Exchange Commission ("SEC"), the New York
Attorney General ("NYAG") and the Colorado Attorney General ("COAG"), to resolve
civil enforcement actions and investigations related to market timing activity
and related issues in the AIM Funds, including those formerly advised by IFG.
These regulators alleged, in substance, that IFG and AIM failed to disclose in
the prospectuses for the AIM Funds that they advised and to the independent
directors/trustees of such Funds that they had entered into certain arrangements
permitting market timing of such Funds, thereby breaching their fiduciary duties
to such Funds. As a result of the foregoing, the regulators alleged that IFG and
AIM breached various Federal and state securities, business and consumer
protection laws. On the same date, A I M Distributors, Inc. ("ADI") (the
distributor of the retail AIM Funds) reached a final settlement with the SEC to
resolve an investigation relating to market timing activity and related issues
in the AIM Funds. The SEC also alleged that ADI violated various Federal
securities laws. The SEC also has settled related market timing enforcement
actions brought against certain former officers and employees of IFG.
Under the terms of the settlements, IFG agreed to pay a total of $325 million,
of which $110 million is civil penalties. Of this $325 million total payment,
half has been paid and the remaining half will be paid on or before December 31,
2005. AIM and ADI agreed to pay a total of $50 million, of which $30 million is
civil penalties, all of which has been paid. The entire $325 million IFG
settlement fund will be made available for distribution to the shareholders of
those AIM Funds that IFG formerly advised that were harmed by market timing
activity, and the entire $50 million settlement fund by AIM and ADI will be made
available for distribution to the shareholders of those AIM Funds advised by AIM
that were harmed by market timing activity, all as to be determined by an
independent distribution consultant. The IFG and AIM settlement funds may
increase as a result of contributions from third parties who reach final
settlements with the SEC or other regulators to resolve allegations of market
timing and/or late trading. The settlement funds will be distributed in
accordance with a methodology to be determined by the independent distribution
consultant, in consultation with AIM and the independent trustees of the AIM
Funds and acceptable to the staff of the SEC. Under the settlements with the
NYAG and COAG, AIM has agreed to reduce management fees on certain equity and
balanced AIM Funds by $15 million per year for the next five years, based upon
effective fee rates and assets under management as of July 1, 2004, not to
increase certain management fees and to provide more information to investors
regarding fees.
Under the terms of the settlements, AIM is undertaking certain governance and
compliance reforms, including maintaining an internal controls committee and
retaining an independent compliance consultant and a corporate ombudsman. Also,
commencing in 2007 and at least once every other year thereafter, AIM will
undergo a compliance review by an independent third party. In addition, under
the terms of the settlements, AIM has undertaken to cause the AIM Funds to
operate in accordance with certain governance policies and practices, including
retaining a full-time independent senior officer whose duties include monitoring
compliance and managing the process by which proposed management fees to be
charged the AIM Funds are negotiated. Also, commencing in 2008 and not less than
every fifth calendar year thereafter, the AIM Funds will hold shareholder
meetings at which their Boards of Trustees will be elected.
At the request of the trustees of the AIM Funds, AMVESCAP PLC ("AMVESCAP"),
the parent company of IFG and AIM, has agreed to reimburse expenses incurred by
such Funds related to market timing matters.
The SEC has also settled market timing enforcement actions against Raymond R.
Cunningham (the former president and chief executive officer of IFG and a former
member of the board of directors of the AIM Funds formerly advised by IFG),
Timothy J. Miller (the former chief investment officer and a former portfolio
manager for IFG), Thomas A. Kolbe (the former national sales manager of IFG) and
Michael D. Legoski (a former assistant vice president in IFG's sales
department). As part of these settlements, the SEC ordered these individuals to
pay restitution and civil penalties in various amounts and prohibited them from
associating with, or serving as an officer or director of, an investment
advisor, broker, dealer and/or investment company, as applicable, for certain
periods of time.
The payments made in connection with the above-referenced settlements by IFG,
AIM and ADI will total approximately $375 million (not including AIM's agreement
to reduce management fees on certain equity and balanced AIM Funds by $15
million per year for the next five years, based upon effective fee rates and
assets under management as of July 1, 2004). The manner in which the settlement
payments will be distributed is unknown at the present time and will be
determined by an independent distribution consultant appointed under the
settlement agreements. Therefore, management of AIM and the Fund are unable at
the present time to estimate the impact, if any, that the distribution of the
settlement payments may have on the Fund or whether such distribution will have
an impact on the Fund's financial statements in the future.
At the present time, management of AIM and the Fund are unable to estimate the
impact, if any, that the outcome of the Regulatory Inquiries and Pending
Litigation described below may have on AIM, ADI or the Fund.
REGULATORY INQUIRIES AND PENDING LITIGATION
The mutual fund industry as a whole is currently subject to regulatory
inquiries and litigation related to a wide range of issues. These issues
include, among others, market timing activity, late trading, fair value pricing,
excessive or improper advisory and/or distribution fees, mutual fund sales
practices, including but not limited to revenue sharing and directed-brokerage
arrangements, investments in securities of other registered investment
companies, contractual plans, issues related to Section 529 college savings
plans, procedures for locating lost security holders and participation in class
action settlements.
As described more fully below, IFG and AIM are the subject of a number of
ongoing regulatory inquiries and civil lawsuits related to one or more of the
issues currently being scrutinized by various Federal and state regulators,
including but not limited to those issues described above. Additional regulatory
actions and/or civil lawsuits related to the above or other issues may be filed
against the AIM Funds, IFG, AIM and/or related entities and
F-34
NOTE 9--LEGAL PROCEEDINGS (CONTINUED)
individuals in the future. Additional regulatory inquiries related to the above
or other issues also may be received by the AIM Funds, IFG, AIM and/or related
entities and individuals in the future.
Ongoing Regulatory Inquiries Concerning IFG and AIM
IFG, certain related entities, certain of their current and former officers
and/or certain of the AIM Funds formerly advised by IFG have received regulatory
inquiries in the form of subpoenas or other oral or written requests for
information and/or documents related to one or more of the following issues,
some of which concern one or more such Funds: market timing activity, late
trading, fair value pricing, excessive or improper advisory and/or distribution
fees, mutual fund sales practices, including revenue sharing and
directed-brokerage arrangements, and investments in securities of other
registered investment companies. These regulators include the SEC, the NASD,
Inc. ("NASD"), the Florida Department of Financial Services, the Attorney
General of the State of West Virginia, the West Virginia Securities Commission
and the Bureau of Securities of the State of New Jersey. IFG and certain of
these other parties also have received more limited inquiries from the United
States Department of Labor ("DOL") and the United States Attorney's Office for
the Southern District of New York, some of which concern one or more of the AIM
Funds formerly advised by IFG. IFG is providing full cooperation with respect to
these inquiries.
AIM, certain related entities, certain of their current and former officers
and/or certain of the AIM Funds have received regulatory inquiries in the form
of subpoenas or other oral or written requests for information and/or documents
related to one or more of the following issues, some of which concern one or
more AIM Funds: market timing activity, late trading, fair value pricing,
excessive or improper advisory and/or distribution fees, mutual fund sales
practices, including revenue sharing and directed-brokerage arrangements,
investments in securities of other registered investment companies, contractual
plans, issues related to Section 529 college savings plans and procedures for
locating lost securityholders. These regulators include the SEC, the NASD, the
Department of Banking for the State of Connecticut, the Attorney General of the
State of West Virginia, the West Virginia Securities Commission and the Bureau
of Securities of the State of New Jersey. AIM and certain of these other parties
also have received more limited inquiries from the SEC, the NASD, the DOL, the
Internal Revenue Service, the United States Attorney's Office for the Southern
District of New York, the United States Attorney's Office for the Central
District of California, the United States Attorney's Office for the District of
Massachusetts, the Massachusetts Securities Division, the U.S. Postal Inspection
Service and the Commodity Futures Trading Commission, some of which concern one
or more AIM Funds. AIM is providing full cooperation with respect to these
inquiries.
Pending Regulatory Civil Action Alleging Market Timing
On April 12, 2005, the Attorney General of the State of West Virginia ("WVAG")
filed civil proceedings against AIM, IFG and ADI, as well as numerous unrelated
mutual fund complexes and financial institutions. None of the AIM Funds has been
named as a defendant in these proceedings. The WVAG complaint, filed in the
Circuit Court of Marshall County, West Virginia [Civil Action No. 05-C-81],
alleges, in substance, that AIM, IFG and ADI engaged in unfair competition
and/or unfair or deceptive trade practices by failing to disclose in the
prospectuses for the AIM Funds, including those formerly advised by IFG, that
they had entered into certain arrangements permitting market timing of such
Funds. As a result of the foregoing, the WVAG alleges violations of W. Va. Code
sec. 46A-1-101, et seq. (the West Virginia Consumer Credit and Protection Act).
The WVAG complaint is seeking injunctive relief; civil monetary penalties; a
writ of quo warranto against the defendants; pre-judgment and post-judgment
interest; costs and expenses, including counsel fees; and other relief.
If AIM is unsuccessful in its defense of the WVAG proceedings, it could be
barred from serving as an investment adviser for any investment company
registered under the Investment Company Act of 1940, as amended (a "registered
investment company"). Such results could affect the ability of AIM or any other
investment advisor directly or indirectly owned by AMVESCAP, from serving as an
investment advisor to any registered investment company, including your Fund.
Your Fund has been informed by AIM that, if these results occur, AIM will seek
exemptive relief from the SEC to permit it to continue to serve as your Fund's
investment advisor. There is no assurance that such exemptive relief will be
granted.
Private Civil Actions Alleging Market Timing
Multiple civil lawsuits, including purported class action and shareholder
derivative suits, have been filed against various parties (including, depending
on the lawsuit, certain AIM Funds, IFG, AIM, AIM Management, AMVESCAP, certain
related entities, certain of their current and former officers and/or certain
unrelated third parties) making allegations that are similar in many respects to
those in the settled regulatory actions brought by the SEC, the NYAG and the
COAG concerning market timing activity in the AIM Funds. These lawsuits allege a
variety of theories of recovery, including but not limited to: (i) violation of
various provisions of the Federal and state securities laws; (ii) violation of
various provisions of ERISA; (iii) breach of fiduciary duty; and/or (iv) breach
of contract. These lawsuits were initiated in both Federal and state courts and
seek such remedies as compensatory damages; restitution; injunctive relief;
disgorgement of management fees; imposition of a constructive trust; removal of
certain directors and/or employees; various corrective measures under ERISA;
rescission of certain Funds' advisory agreements; interest; and attorneys' and
experts' fees.
All lawsuits based on allegations of market timing, late trading, and related
issues have been transferred to the United States District Court for the
District of Maryland (the "MDL Court") for consolidated or coordinated pre-trial
proceedings. Pursuant to an Order of the MDL Court, plaintiffs consolidated
their claims for pre-trial purposes into three amended complaints against
various AIM- and IFG-related parties: (i) a Consolidated Amended Class Action
Complaint purportedly brought on behalf of shareholders of the AIM Funds; (ii) a
Consolidated Amended Fund Derivative Complaint purportedly brought on behalf of
the AIM Funds and fund registrants; and (iii) an Amended Class Action Complaint
for Violations of the Employee Retirement Income Securities Act ("ERISA")
purportedly brought on behalf of participants in AMVESCAP's 401(k) plan. The
plaintiffs in two of the underlying lawsuits continue to seek remand of their
lawsuit to state court.
F-35
NOTE 9--LEGAL PROCEEDINGS (CONTINUED)
Private Civil Actions Alleging Improper Use of Fair Value Pricing
Multiple civil class action lawsuits have been filed against various parties
(including, depending on the lawsuit, certain AIM Funds, IFG and/or AIM)
alleging that certain AIM Funds inadequately employed fair value pricing. These
lawsuits allege a variety of theories of recovery, including but not limited to:
(i) violations of various provisions of the Federal securities laws; (ii) common
law breach of duty; and (iii) common law negligence and gross negligence. These
lawsuits have been filed in both Federal and state courts and seek such remedies
as compensatory and punitive damages; interest; and attorneys' fees and costs.
Based on a recent court decision, the state court action has been removed to
Federal court.
Private Civil Actions Alleging Excessive Advisory and/or Distribution Fees
Multiple civil lawsuits, including purported class action and shareholder
derivative suits, have been filed against various parties (including, depending
on the lawsuit, IFG, AIM, INVESCO Institutional (N.A.), Inc. ("IINA"), ADI
and/or INVESCO Distributors, Inc. ("INVESCO Distributors")) alleging that the
defendants charged excessive advisory and/or distribution fees and failed to
pass on to shareholders the perceived savings generated by economies of scale.
Certain of these lawsuits also allege that the defendants adopted unlawful
distribution plans. These lawsuits allege a variety of theories of recovery,
including but not limited to: (i) violation of various provisions of the Federal
securities laws; (ii) breach of fiduciary duty; and/or (iii) breach of contract.
These lawsuits have been filed in Federal courts and seek such remedies as
damages; injunctive relief; rescission of certain Funds' advisory agreements and
distribution plans; interest; prospective relief in the form of reduced fees;
and attorneys' and experts' fees. All of these lawsuits have been transferred to
the United States District Court for the Southern District of Texas, Houston
Division and subsequently consolidated for pre-trial purposes into one lawsuit.
Private Civil Actions Alleging Improper Charging of Distribution Fees on Limited
Offering Funds or Share Classes
Multiple civil lawsuits, including shareholder derivative suits, have been
filed against various parties (including, depending on the lawsuit, IFG, AIM,
ADI and/or certain of the trustees of the AIM Funds) alleging that the
defendants breached their fiduciary duties by charging distribution fees while
funds and/or specific share classes were closed generally to new investors
and/or while other share classes of the same fund were not charged the same
distribution fees. These lawsuits allege a variety of theories of recovery,
including but not limited to: (i) violation of various provisions of the Federal
securities laws; and (ii) breach of fiduciary duty. These lawsuits have been
filed in Federal courts and seek such remedies as damages; injunctive relief;
and attorneys' and experts' fees.
Private Civil Actions Alleging Improper Mutual Fund Sales Practices and
Directed-Brokerage Arrangements
Multiple civil lawsuits, including purported class action and shareholder
derivative suits, have been filed against various parties (including, depending
on the lawsuit, AIM Management, IFG, AIM, AIM Investment Services, Inc. ("AIS")
and/or certain of the trustees of the AIM Funds) alleging that the defendants
improperly used the assets of the AIM Funds to pay brokers to aggressively
promote the sale of the AIM Funds over other mutual funds and that the
defendants concealed such payments from investors by disguising them as
brokerage commissions. These lawsuits allege a variety of theories of recovery,
including but not limited to: (i) violation of various provisions of the Federal
securities laws; (ii) breach of fiduciary duty; and (iii) aiding and abetting a
breach of fiduciary duty. These lawsuits have been filed in Federal courts and
seek such remedies as compensatory and punitive damages; rescission of certain
Funds' advisory agreements and distribution plans and recovery of all fees paid;
an accounting of all fund-related fees, commissions and soft dollar payments;
restitution of all unlawfully or discriminatorily obtained fees and charges; and
attorneys' and experts' fees. These actions have been consolidated for pre-trial
purposes.
Private Civil Action Alleging Failure to Ensure Participation in Class Action
Settlements
A civil lawsuit, purporting to be a class action lawsuit, has been filed
against AIM, IINA, A I M Capital Management, Inc. and the trustees of the AIM
Funds alleging that the defendants breached their fiduciary duties by failing to
ensure that the AIM Funds participated in class action settlements in which the
AIM Funds were eligible to participate. This lawsuit alleges as theories of
recovery: (i) violation of various provisions of the Federal securities laws;
(ii) common law breach of fiduciary duty; and (iii) common law negligence. This
lawsuit has been filed in Federal court and seeks such remedies as compensatory
and punitive damages; forfeiture of all commissions and fees paid by the class
of plaintiffs; and costs and attorneys' fees.
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
* * * * * *
As a result of the matters discussed above, investors in the AIM Funds might
react by redeeming their investments. This might require the Funds to sell
investments to provide for sufficient liquidity and could also have an adverse
effect on the investment performance of the Funds.
F-36
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Shareholders of Tax-Free Cash Reserve Portfolio
and the Board of Trustees of Tax-Free Investments Trust:
We have audited the accompanying statement of assets and liabilities of Tax-Free
Cash Reserve Portfolio (a portfolio of Tax-Free Investments Trust), including
the schedule of investments, as of March 31, 2005, and the related statement of
operations for the year then ended, the statements of changes in net assets for
each of the two years in the period then ended, and the financial highlights for
each of the five years in the period then ended. These financial statements and
financial highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. We were
not engaged to perform an audit of the Fund's internal control over financial
reporting. Our audits included consideration of internal control over financial
reporting as a basis for designing audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Fund's internal control over financial reporting.
Accordingly, we express no such opinion. An audit also includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements and financial highlights, assessing the accounting principles used
and significant estimates made by management, and evaluating the overall
financial statement presentation. Our procedures included confirmation of
securities owned as of March 31, 2005 by correspondence with the custodian and
brokers or by other appropriate auditing procedures where replies from brokers
were not received. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Tax-Free Cash Reserve Portfolio as of March 31, 2005, the results of its
operations for the year then ended, the changes in its net assets for each of
the two years in the period then ended, and the financial highlights for each of
the five years in the period then ended, in conformity with U.S. generally
accepted accounting principles.
Houston, Texas -s- ERNST & YOUNG LLP
May 18, 2005
F-37
TRUSTEES AND OFFICERS
As of March 31, 2005
The address of each trustee and officer of Tax-Free Investments Trust (the
"Trust"), is 11 Greenway Plaza, Suite 100, Houston, Texas 77046. Each trustee
oversees 114 portfolios in the AIM Funds complex. The trustees serve for the
life of the Trust, subject to their earlier death, incapacitation, resignation,
retirement or removal as more specifically provided in the Trust's
organizational documents. Column two below includes length of time served with
predecessor entities, if any.
<Table>
<Caption>
TRUSTEE AND/
NAME, YEAR OF BIRTH AND OR OFFICER PRINCIPAL OCCUPATION(S) OTHER DIRECTORSHIP(S)
POSITION(S) HELD WITH THE TRUST SINCE DURING PAST 5 YEARS HELD BY TRUSTEE
- --------------------------------------------------------------------------------------------------------------------
INTERESTED PERSONS
- --------------------------------------------------------------------------------------------------------------------
Robert H. Graham(1) -- 1946 1977 Director and Chairman, A I M None
Trustee, Vice Chair and Management Group Inc.
President (financial services holding
company); Director and Vice
Chairman, AMVESCAP PLC and
Chairman, AMVESCAP PLC -- AIM
Division (parent of AIM and a
global investment management
firm)
Formerly: President and Chief
Executive Officer, A I M
Management Group Inc.;
Director, Chairman and
President, A I M Advisors,
Inc. (registered investment
advisor); Director and
Chairman, A I M Capital
Management, Inc. (registered
investment advisor), A I M
Distributors, Inc. (registered
broker dealer), AIM Investment
Services, Inc., (registered
transfer agent), and Fund
Management Company (registered
broker dealer); and Chief
Executive Officer, AMVESCAP
PLC -- Managed Products
- --------------------------------------------------------------------------------------------------------------------
Mark H. Williamson(2) -- 1951 2003 Director, President and Chief None
Trustee and Executive Vice Executive Officer, A I M
President Management Group Inc.;
Director, Chairman and
President, A I M Advisors,
Inc.; Director, A I M Capital
Management, Inc. and A I M
Distributors, Inc.; Director
and Chairman, AIM Investment
Services, Inc., Fund
Management Company and INVESCO
Distributors, Inc. (registered
broker dealer); and Chief
Executive Officer, AMVESCAP
PLC -- AIM Division (parent of
AIM and a global investment
management firm)
Formerly: Director, Chairman,
President and Chief Executive
Officer, INVESCO Funds Group,
Inc.; President and Chief
Executive Officer, INVESCO
Distributors, Inc.; Chief
Executive Officer, AMVESCAP
PLC -- Managed Products
- --------------------------------------------------------------------------------------------------------------------
INDEPENDENT TRUSTEES
- --------------------------------------------------------------------------------------------------------------------
Bruce L. Crockett(3) -- 1944 1992 Chairman, Crockett Technology ACE Limited (insurance
Trustee and Chair Associates (technology company); and Captaris,
consulting company) Inc. (unified messaging
provider)
- --------------------------------------------------------------------------------------------------------------------
Bob R. Baker -- 1936 2003 Retired None
Trustee
- --------------------------------------------------------------------------------------------------------------------
Frank S. Bayley -- 1939 2001 Retired Badgley Funds, Inc.
Trustee (registered investment
Formerly: Partner, law firm of company)
Baker & McKenzie
- --------------------------------------------------------------------------------------------------------------------
James T. Bunch -- 1942 2003 Co-President and Founder, None
Trustee Green, Manning & Bunch Ltd.,
(investment banking firm); and
Director, Policy Studies, Inc.
and Van Gilder Insurance
Corporation
- --------------------------------------------------------------------------------------------------------------------
Albert R. Dowden -- 1941 2000 Director of a number of public None
Trustee and private business
corporations, including the
Boss Group Ltd. (private
investment and management);
Cortland Trust, Inc.
(Chairman) (registered
investment company); Annuity
and Life Re (Holdings), Ltd.
(insurance company); and
CompuDyne Corporation
(provider of products and
services to the public
security market)
Formerly: Director, President
and Chief Executive Officer,
Volvo Group North America,
Inc.; Senior Vice President,
AB Volvo; and director of
various affiliated Volvo
companies
- --------------------------------------------------------------------------------------------------------------------
Edward K. Dunn, Jr. -- 1935 1998 Retired None
Trustee
Formerly: Chairman, Mercantile
Mortgage Corp.; President and
Chief Operating Officer,
Mercantile-Safe Deposit &
Trust Co.; and President,
Mercantile Bankshares Corp.
- --------------------------------------------------------------------------------------------------------------------
Jack M. Fields -- 1952 1997 Chief Executive Officer, Administaff, and
Trustee Twenty First Century Group, Discovery Global
Inc. (government affairs Education Fund
company) (owner) Dos Angelos (non-profit)
Ranch, L.P.
Formerly: Chief Executive
Officer, Texana Timber LP
(sustainable forestry company)
- --------------------------------------------------------------------------------------------------------------------
Carl Frischling -- 1937 1992 Partner, law firm of Kramer Cortland Trust, Inc.
Trustee Levin Naftalis and Frankel LLP (registered investment
company)
- --------------------------------------------------------------------------------------------------------------------
Gerald J. Lewis -- 1933 2003 Chairman, Lawsuit Resolution General Chemical Group,
Trustee Services (San Diego, Inc.
California)
- --------------------------------------------------------------------------------------------------------------------
Prema Mathai-Davis -- 1950 1998 Formerly: Chief Executive None
Trustee Officer, YWCA of the USA
- --------------------------------------------------------------------------------------------------------------------
</Table>
(1) Mr. Graham is considered an interested person of the Trust because he is a
director of AMVESCAP PLC, parent of the advisor to the Trust. Prior to
October 4, 2004, Mr. Graham served as Chairman of the Board of Trustees of
the Trust.
(2) Mr. Williamson is considered an interested person of the Trust because he is
an officer and a director of the advisor to, and a director of the principal
underwriter of, the Trust.
(3) Mr. Crockett was elected Chair of the Board of Trustees of the Trust
effective October 4, 2004.
TRUSTEES AND OFFICERS (continued)
As of March 31, 2005
The address of each trustee and officer of Tax-Free Investments Trust (the
"Trust"), is 11 Greenway Plaza, Suite 100, Houston, Texas 77046. Each trustee
oversees 114 portfolios in the AIM Funds complex. The trustees serve for the
life of the Trust, subject to their earlier death, incapacitation, resignation,
retirement or removal as more specifically provided in the Trust's
organizational documents. Column two below includes length of time served with
predecessor entities, if any.
<Table>
<Caption>
TRUSTEE AND/
NAME, YEAR OF BIRTH AND OR OFFICER PRINCIPAL OCCUPATION(S) OTHER DIRECTORSHIP(S)
POSITION(S) HELD WITH THE TRUST SINCE DURING PAST 5 YEARS HELD BY TRUSTEE
- -------------------------------------------------------------------------------------------------------------------------------
Lewis F. Pennock -- 1942 1992 Partner, law firm of Pennock & Cooper None
Trustee
- -------------------------------------------------------------------------------------------------------------------------------
Ruth H. Quigley -- 1935 2001 Retired None
Trustee
- -------------------------------------------------------------------------------------------------------------------------------
Larry Soll -- 1942 2003 Retired None
Trustee
- -------------------------------------------------------------------------------------------------------------------------------
OTHER OFFICERS
- -------------------------------------------------------------------------------------------------------------------------------
Lisa O. Brinkley(4) -- 1959 2004 Senior Vice President, A I M Management N/A
Senior Vice President and Chief Group Inc.; Senior Vice President and
Compliance Officer Chief Compliance Officer, A I M
Advisors, Inc.; Vice President and Chief
Compliance Officer, A I M Capital
Management, Inc. and Vice President,
A I M Distributors, Inc., AIM Investment
Services, Inc. and Fund Management
Company
Formerly: Senior Vice President and
Compliance Director, Delaware
Investments Family of Funds and Chief
Compliance Officer, A I M Distributors,
Inc.
- -------------------------------------------------------------------------------------------------------------------------------
Russell C. Burk(5) -- 1958 2005 Formerly: Director of Compliance and N/A
Senior Vice President Assistant General Counsel, ICON
Advisers, Inc.; Financial Consultant,
Merrill Lynch; General Counsel and
Director of Compliance, ALPS Mutual
Funds, Inc.
- -------------------------------------------------------------------------------------------------------------------------------
Kevin M. Carome -- 1956 2003 Director, Senior Vice President, N/A
Senior Vice President, Secretary and General Counsel, A I M
Secretary and Chief Legal Management Group Inc. and A I M
Officer Advisors, Inc.; Director and Vice
President, INVESCO Distributors, Inc.;
Vice President, A I M Capital
Management, Inc., and AIM Investment
Services, Inc.; Director, Vice President
and General Counsel, Fund Management
Company; and Senior Vice President,
A I M Distributors, Inc.
Formerly: Senior Vice President and
General Counsel, Liberty Financial
Companies, Inc.; and Senior Vice
President and General Counsel, Liberty
Funds Group, LLC; and Vice President,
A I M Distributors, Inc.
- -------------------------------------------------------------------------------------------------------------------------------
Stuart W. Coco -- 1955 1992 Managing Director and Director of Money N/A
Vice President Market Research and Special Projects,
A I M Capital Management, Inc.; and Vice
President, A I M Advisors, Inc.
- -------------------------------------------------------------------------------------------------------------------------------
Sidney M. Dilgren -- 1961 2004 Vice President and Fund Treasurer, A I M N/A
Vice President and Treasurer Advisors, Inc.
Formerly: Senior Vice President, AIM
Investment Services, Inc.; and Vice
President, A I M Distributors, Inc.
- -------------------------------------------------------------------------------------------------------------------------------
J. Philip Ferguson(6) -- 1945 2005 Senior Vice President and Chief N/A
Vice President Investment Officer, A I M Advisors Inc.;
Director, Chairman, Chief Executive
Officer, President and Chief Investment
Officer, A I M Capital Management, Inc.;
Executive Vice President, A I M
Management Group Inc.
Formerly: Senior Vice President, AIM
Private Asset Management, Inc.; Chief
Equity Officer, and Senior Investment
Officer, A I M Capital Management, Inc.;
and Managing Partner, Beutel, Goodman
Capital Management
- -------------------------------------------------------------------------------------------------------------------------------
Karen Dunn Kelley -- 1960 1992 Director of Cash Management, Managing N/A
Vice President Director and Chief Cash Management
Officer, A I M Capital Management, Inc;
Director and President, Fund Management
Company; and Vice President, A I M
Advisors, Inc.
- -------------------------------------------------------------------------------------------------------------------------------
</Table>
(4) Ms. Brinkley was elected Senior Vice President and Chief Compliance Officer
of the Trust effective September 20, 2004.
(5) Mr. Burk was elected Senior Vice President of the Trust effective February
15, 2005.
(6) Mr. Ferguson was elected Vice President of the Trust effective February 24,
2005.
The Statement of Additional Information of the Trust includes additional
information about the Fund's Trustees and is available upon request, without
charge, by calling 1.800.959.4246.
<Table>
OFFICE OF THE FUND INVESTMENT ADVISOR DISTRIBUTOR AUDITORS
11 Greenway Plaza A I M Advisors, Inc. Fund Management Company Ernst & Young LLP
Suite 100 11 Greenway Plaza 11 Greenway Plaza 5 Houston Center
Houston, TX 77046-1173 Suite 100 Suite 100 1401 McKinney, Suite
Houston, TX 77046-1173 Houston, TX 77046-1173 1200
Houston, TX 77010-4035
COUNSEL TO THE
COUNSEL TO THE FUND INDEPENDENT TRUSTEES TRANSFER AGENT CUSTODIAN
Ballard Spahr Kramer, Levin, Naftalis AIM Investment The Bank of New York
Andrews & Ingersoll, LLP & Frankel LLP Services, Inc. 2 Hanson Place
1735 Market Street 1177 Avenue of the P.O. Box 4739 Brooklyn, NY 11217-1431
Philadelphia, PA 19103-7599 Americas Houston, TX 77210-4739
New York, NY 10036-2714
</Table>
REQUIRED FEDERAL INCOME TAX INFORMATION (UNAUDITED)
We are required by Internal Revenue Code to advise you within 60 days of the
Fund's fiscal year end as to the federal tax status of dividends paid by the
Fund during its fiscal year ended March 31, 2005.
AIM Tax-Free Cash Reserve Portfolio Institutional Class paid ordinary dividends
in the amount of $0.0123 during its tax year ended March 31, 2005. Of this
amount, 100% qualified as tax-exempt interest dividends for federal income tax
purposes.
For the purpose of preparing your annual federal income tax returns, however,
you should report the amounts as reflected on the Statement of Tax-Exempt
Income.
The Fund provides a complete list of its holdings four times in each fiscal
year, at the quarter-ends. For the second and fourth quarters, the lists appear
in the Fund's semiannual and annual reports to shareholders. For the first and
third quarters, the Fund files the lists with the Securities and Exchange
Commission (SEC) on Form N-Q. Shareholders can look up the Fund's Forms N-Q on
the SEC's Web site at sec.gov. Copies of the Fund's Forms N-Q may be reviewed
and copied at the SEC's Public Reference Room at 450 Fifth Street, N.W.,
Washington, D.C. 20549-0102. You can obtain information on the operation of the
Public Reference Room, including information about duplicating fee charges, by
calling 1-202-942-8090 or by electronic request at the following email address:
publicinfo@sec.gov. The SEC file numbers for the Fund are 811-2731 and 2-58286.
The Fund's most recent portfolio holdings, as filed on Form N-Q, are also
available at AIMinvestments.com.
A description of the policies and procedures that the Fund uses to determine how
to vote proxies relating to portfolio securities is available without charge,
upon request, from our Client Services department at 800-659-1005 or on the AIM
Web site, AIMinvestments.com. On the home page, scroll down and click on the AIM
Funds Proxy Policy. The information is also available on the SEC Web site,
sec.gov.
Information regarding how the Fund voted proxies related to its portfolio
securities during the 12 months ended June 30, 2004, is available at our Web
site. Go to AIMinvestments.com, access the About Us tab, click on Required
Notices and then click on Proxy Voting Activity. Next, select the Fund from the
drop-down menu. The information is also available on the SEC Web site, sec.gov.
[YOUR GOALS. OUR SOLUTIONS.]
--REGISTERED TRADEMARK--
[AIM INVESTMENTS LOGO]
--REGISTERED TRADEMARK--
AIMinvestments.com TFIT-AR-3 Fund Management Company
TAX-FREE CASH RESERVE PORTFOLIO
Institutional Class
TAX-FREE INVESTMENTS TRUST (TFIT)
March 31, 2005
Annual Report
[COVER IMAGE]
[YOUR GOALS. OUR SOLUTIONS.]
--REGISTERED TRADEMARK--
[1980-2005 25TH [AIM INVESTMENTS LOGO]
CASH MANAGEMENT LOGO] --REGISTERED TRADEMARK--
TAX-FREE CASH RESERVE PORTFOLIO
DEAR SHAREHOLDER:
[GRAHAM This is the annual report on the performance of the
PHOTO] Institutional Class of the Tax-Free Cash Reserve Portfolio
of Tax-Free Investments Trust, a money market fund
investing in short-term municipal bonds of the highest
credit ratings. The report is for the fiscal year ended
March 31, 2005.
ROBERT H. GRAHAM
The Tax-Free Cash Reserve Portfolio seeks to provide as
high a level of tax-exempt income as is consistent with
preservation of capital and maintenance of liquidity. The
Portfolio invests in high quality, short-term municipal
obligations, seeking to provide income exempt from federal
taxation. The Portfolio structure is driven to some extent
by the supply and availability of municipal securities.
Liquidity is managed with daily and weekly variable-rate
[WILLIAMSON demand notes.
PHOTO]
Through a combination of short-term cash management
vehicles and selective use of a longer maturity schedule
for higher yields, the Portfolio continued to provide
attractive returns. The Portfolio maintained a relatively
MARK H. WILLIAMSON short maturity structure to take advantage of any sudden
rise in market yields.
The Portfolio continued 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 Ratings. Portfolio ratings are
subject to change and are based on several factors,
including an analysis of a Portfolio's overall credit
quality, market price exposure and management.
The table below summarizes important Portfolio data as
of fiscal year-end.
<Table>
<Caption>
================================ ===============================
YIELD WEIGHTED AVERAGE MATURITY
7-DAY SEC YIELD* MONTHLY YIELD* RANGE END OF FISCAL YEAR
1.89% 1.72% 25-42 Days 30 Days
================================ ===============================
====================================================================
NET ASSETS AT CLOSE OF FISCAL YEAR
$2.1 BILLION
*The seven-day SEC yield and monthly yield represent annualized
results for the period, net of fees and expenses, and exclude any
realized capital gains or losses. Yields will fluctuate. Had the
advisor not waived fees and/or reimbursed expenses, seven-day and
monthly yields would have been lower.
====================================================================
</Table>
MARKET CONDITIONS AFFECTING MONEY MARKET FUNDS
Economic activity expanded at a moderate pace throughout the fiscal year,
according to Beige Book economic commentaries published by the Federal Reserve
(the Fed) that cover the period.
o Gross domestic product (GDP), generally considered the broadest measure of
economic activity, grew at an annualized rate of 4.4% during 2004.
o The S&P 500--Registered Trademark-- Index returned 6.69% during the fiscal
year.
o The Fed reported a moderate increase in consumer spending, although auto
sales were lackluster. Travel and tourism and most service industries
reported improvements, and manufacturing activity also expanded. Housing
and residential construction was robust, according to the March Beige
Book.
In an effort to forestall the inflation that may accompany robust economic
growth, the Fed increased the federal funds target rate seven times in 0.25%
increments during the reporting period, bringing the rate to 2.75% on March 22,
2005. (The federal funds target rate is a benchmark interest rate used by banks
for overnight loans to one another.) Despite the increases, the Fed said
monetary policy remained accommodative.
TAX-FREE CASH RESERVE PORTFOLIO
These rate increases helped boost yields on short-term investments such as
money market funds. The impact of changes in the federal funds target rate is
generally felt in money market funds approximately two weeks after the
announcement of an increase or decrease, but the change in yields may not be
equivalent to the change in the federal funds target rate. Management made no
changes to strategy as a result of federal funds target rate increases.
IN CONCLUSION
We are pleased to send you this report on your investment. AIM is committed to
the primary goals of safety, liquidity and yield in institutional fund
management. We are also dedicated to customer service. Should you have comments
or questions about this report, please contact one of our representatives at
800-659-1005.
Sincerely,
<Table>
/s/ ROBERT H. GRAHAM /s/ MARK H. WILLIAMSON
Robert H. Graham Mark H. Williamson
Vice Chair & President, Tax-Free Investments Trust Chairman & President, A I M Advisors, Inc.
</Table>
May 20, 2005
The views and opinions expressed in this letter are those of A I M Advisors,
Inc. These views and opinions are subject to change at any time based on factors
such as market and economic conditions. These views and opinions may not be
relied upon as investment advice or recommendations, or as an offer for a
particular security. Statements of fact are from sources considered reliable,
but A I M Advisors, Inc. makes no representation or warranty as to their
completeness or accuracy. Although historical performance is no guarantee of
future results, these insights may help you understand our investment management
philosophy.
<Table>
<Caption>
====================================
PORTFOLIO COMPOSITION BY MATURITY The number of days to maturity of each holding is determined in
accordance with the provisions of Rule 2a-7 under the Investment
IN DAYS, AS OF 3/31/05 Company Act of 1940.
1-7 78.6%
8-14 0.9
15-60 4.8
61-120 7.3
121-180 3.1
181-240 3.7 The unmanaged Standard & Poor's Composite Index of 500 Stocks (the
241+ 1.6 S&P 500 Index) is an index of common stocks frequently used as a
general measure of U.S. stock market performance.
====================================
</Table>
THIS REPORT MUST BE ACCOMPANIED OR PRECEDED BY A CURRENTLY EFFECTIVE FUND
PROSPECTUS, WHICH CONTAINS MORE COMPLETE INFORMATION, INCLUDING FEES AND
EXPENSES. READ IT CAREFULLY BEFORE YOU INVEST OR SEND MONEY.
PERFORMANCE QUOTED IS PAST PERFORMANCE AND CANNOT GUARANTEE COMPARABLE FUTURE
RESULTS; CURRENT PERFORMANCE MAY BE LOWER OR HIGHER. VISIT AIMINVESTMENTS.COM
FOR THE MOST RECENT MONTH-END PERFORMANCE.
AN INVESTMENT IN THE FUND IS NOT INSURED OR GUARANTEED BY THE FEDERAL DEPOSIT
INSURANCE CORPORATION OR ANY OTHER GOVERNMENT AGENCY AND IS NOT A DEPOSIT OR
OTHER OBLIGATION OF, OR GUARANTEED BY, A DEPOSITORY INSTITUTION. ALTHOUGH THE
FUND SEEKS TO PRESERVE THE VALUE OF YOUR INVESTMENT AT $1.00 PER SHARE, IT IS
POSSIBLE TO LOSE MONEY BY INVESTING IN THE FUND.
TAX-FREE CASH RESERVE PORTFOLIO
CALCULATING YOUR ONGOING FUND EXPENSES
<Table>
EXAMPLE expenses that you paid over the period. and expenses may not be used to estimate
Simply divide your account value by the actual ending account balance or
As a shareholder of the Fund, you incur $1,000 (for example, an $8,600 account expenses you paid for the period. You may
ongoing costs, including management fees value divided by $1,000 = 8.6), then use this information to compare the
and other Fund expenses. This example is multiply the result by the number in the ongoing costs of investing in the Fund
intended to help you understand your table under the heading entitled "Actual and other funds. To do so, compare this
ongoing costs (in dollars) of investing Expenses Paid During Period" to estimate 5% hypothetical example with the 5%
in the Fund and to compare these costs the expenses you paid on your account hypothetical examples that appear in the
with ongoing costs of investing in other during this period. shareholder reports of the other funds.
mutual funds. The example is based on an
investment of $1,000 invested at the HYPOTHETICAL EXAMPLE FOR COMPARISON Please note that the expenses shown in
beginning of the period and held for the PURPOSES the table are meant to highlight your
entire period October 1, 2004, through ongoing costs only. Therefore, the
March 31, 2005. The table below also provides information hypothetical information is useful in
about hypothetical account values and comparing ongoing costs only, and will
ACTUAL EXPENSES hypothetical expenses based on the Fund's not help you determine the relative total
actual expense ratio and an assumed rate costs of owning different funds.
The table below provides information of return of 5% per year before expenses,
about actual account values and actual which is not the Fund's actual return.
expenses. You may use the information in The hypothetical account values
this table, together with the amount you
invested, to estimate the
====================================================================================================================================
ACTUAL HYPOTHETICAL
(5% ANNUAL RETURN BEFORE EXPENSES)
BEGINNING ACCOUNT ENDING ACCOUNT EXPENSES ENDING ACCOUNT EXPENSES
SHARE VALUE VALUE PAID DURING VALUE PAID DURING
CLASS (10/01/04) (3/31/05)(1) PERIOD(2) (3/31/05) PERIOD(2)
Institutional $1,000.00 $1,007.70 $1.10 $1,023.83 $1.11
(1) The actual ending account value is based on the actual total return of the Fund for the period October 1, 2004, to March 31,
2005, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund's expense ratio
and a hypothetical annual return of 5% before expenses. The actual total cumulative return at net asset value for the period October
1, 2004, to March 31, 2005, was 0.77% for Institutional Class shares.
(2) Expenses are equal to the Fund's annualized expense ratio (0.22% for Institutional Class shares) multiplied by the average
account value over the period, multiplied by 182/365 (to reflect the one-half year period).
====================================================================================================================================
</Table>
SCHEDULE OF INVESTMENTS
March 31, 2005
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
MUNICIPAL NOTES-99.22%
ALABAMA-1.68%
Alabama (State of) Public School & College
Authority; Capital Improvement Series 1999
D RB
5.25%, 08/01/05 AA Aa3 $ 1,425 $ 1,440,302
- ---------------------------------------------------------------------------------------
Birmingham (City of) Public Educational
Building Authority Student Housing (CHF UAB
II LLC); VRD Series 2005 A RB (LOC-Regions
Bank Alabama)
2.30%, 07/01/37(b)(c) -- VMIG-1 6,000 6,000,000
- ---------------------------------------------------------------------------------------
Birmingham (City of) Public Parks &
Recreation Board (Children's Zoo Project);
VRD Series 2002 RB (LOC-AmSouth Bank)
2.40%, 05/01/07(b)(c) -- VMIG-1 1,725 1,725,000
- ---------------------------------------------------------------------------------------
Birmingham (City of) Public Parks &
Recreation Board (YMCA Project); Refunding
VRD Series 1996 RB (LOC-AmSouth Bank)
2.36%, 06/01/16(b)(c) -- VMIG-1 1,770 1,770,000
- ---------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Birmingham
Waterworks & Sewer Board); VRD Series
2002-6009 Class A COP (Acquired 11/05/02;
Cost $4,100,000)
2.32%, 01/01/43(c)(d)(e) A-1+ -- 4,100 4,100,000
- ---------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Birmingham
Waterworks & Sewer Board); VRD Series
2003-0007 Class A COP (Acquired 04/16/03;
Cost $7,370,000)
2.32%, 01/01/43(c)(d)(e) A-1+ -- 7,370 7,370,000
- ---------------------------------------------------------------------------------------
Elmore (County of) Ridge Improvement
District; Special Assessment VRD Series
2000 RB (LOC-AmSouth Bank)
2.30%, 10/01/25(b)(c) -- VMIG-1 13,335 13,335,000
- ---------------------------------------------------------------------------------------
Homewood (City of) Medical Clinic Board
(Lakeshore Foundation Project); Lease
Revenue VRD Series 2000 RB (LOC-AmSouth
Bank)
2.38%, 11/01/24(b)(c) A-1 -- 7,255 7,255,000
- ---------------------------------------------------------------------------------------
Mobile (City of); Port City Medical Clinic
Board (Infirmary Health); VRD Series 1998 B
RB
2.30%, 02/01/25(c)(f) A-1 VMIG-1 5,000 5,000,000
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
<Caption>
ALABAMA-(CONTINUED)
Montgomery (City of) Industrial Development
Board (Industrial Partners Project);
Refunding VRD Series 1989 IDR (LOC-SunTrust
Bank)
2.30%, 01/01/07(b)(c) -- Aa2 $ 430 $ 430,000
- ---------------------------------------------------------------------------------------
Oxford (City of); Unlimited Tax VRD Series
2003 GO Wts. (LOC- Branch Banking & Trust
Co.)
2.30%, 07/01/15(b)(c) -- VMIG-1 5,180 5,180,000
- ---------------------------------------------------------------------------------------
Tuscaloosa (City of) Educational Building
Authority (Stillman College Project);
Refunding Capital Improvement VRD Series
2002 A RB (LOC-AmSouth Bank)
2.40%, 10/01/23(b)(c) -- VMIG-1 2,519 2,519,000
=======================================================================================
56,124,302
=======================================================================================
ALASKA-0.04%
Alaska (State of) Industrial Development &
Export Authority (Safeway Inc. Projects);
Refunding VRD Series 1991 IDR (LOC-Deutsche
Bank A.G.)
2.15%, 06/01/05(b)(g)(h) A-1 -- 1,340 1,340,000
=======================================================================================
ARIZONA-0.83%
Apache (County of) Industrial Development
Authority (Tucson Electric Power Co.);
Floating Rate Series 1983 A IDR (LOC-Credit
Suisse First Boston)
2.35%, 12/15/18(b)(c) A-1 VMIG-1 8,225 8,225,000
- ---------------------------------------------------------------------------------------
Apache (County of) Industrial Development
Authority (Tucson Electric Power Co.-
SpringerValley); VRD Series 1985 IDR
(LOC-Credit Suisse First Boston)
2.35%, 12/01/20(b)(c) A-1 VMIG-1 1,000 1,000,000
- ---------------------------------------------------------------------------------------
Casa Grande (City of) Industrial Development
Authority (Center Park Apartments
Projects); Refunding Multi-Family Housing
VRD Series 2001 A IDR (CEP- Federal
National Mortgage Association)
2.33%, 06/15/31(c) -- VMIG-1 2,010 2,010,000
- ---------------------------------------------------------------------------------------
</Table>
F-1
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
ARIZONA-(CONTINUED)
Casa Grande (City of) Industrial Development
Authority (Quail Gardens Apartments);
Refunding Multi-Family Housing VRD Series
2001 A IDR (CEP-Federal National Mortgage
Association)
2.33%, 06/15/31(c) -- VMIG-1 $ 1,550 $ 1,550,000
- ---------------------------------------------------------------------------------------
Mesa (City of); Utility System Series 1995 RB
5.38%, 07/01/05(g)(i) AAA Aaa 1,000 1,018,554
- ---------------------------------------------------------------------------------------
Phoenix (City of) Industrial Development
Authority (Lynwood Apartments Project);
Refunding VRD Series 1994 IDR (CEP- Federal
Home Loan Bank of San Francisco)
2.34%, 10/01/25(c) A-1+ -- 5,825 5,825,000
- ---------------------------------------------------------------------------------------
Pima (County of) Industrial Development
Authority (El Dorado Hospital); VRD Series
2004 RB (LOC-Branch Banking & Trust Co.)
2.27%, 04/01/38(b)(c) -- VMIG-1 6,000 6,000,000
- ---------------------------------------------------------------------------------------
Pima (County of) Industrial Development
Authority (Tucson Electric Power
Co.-Irvington Road Project); VRD Series
1982 IDR (LOC-Credit Suisse First Boston)
2.32%, 10/01/22(b)(c) A-1 VMIG-1 2,000 2,000,000
=======================================================================================
27,628,554
=======================================================================================
ARKANSAS-0.07%
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.)
2.35%, 07/01/08(b)(c)(j) -- -- 2,500 2,500,000
=======================================================================================
CALIFORNIA-0.91%
California (State of) Economic Recovery; VRD
Series 2004 C-6 RB (LOC-Citibank N.A.)
2.28%, 07/01/23(b)(k) A-1+ VMIG-1 29,050 29,050,000
- ---------------------------------------------------------------------------------------
San Diego (County of) (Friends of Chabad
Lubavitch); VRD Series 2003 COP
(LOC-Comerica Bank)
2.38%, 01/01/23(b)(c)(j) -- -- 1,410 1,410,000
=======================================================================================
30,460,000
=======================================================================================
COLORADO-3.26%
Adams & Weld (Counties of) School District
No. 27J Brighton; Unlimited Tax Series 2004
GO
2.50%, 12/01/05(f) AAA Aaa 1,950 1,955,505
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
<Caption>
- ---------------------------------------------------------------------------------------
COLORADO-(CONTINUED)
Colorado (State of) Educational & Cultural
Facilities Authority (Denver Art Museum
Project); VRD Series 2004 RB (LOC-Wells
Fargo Bank N.A.)
2.28%, 01/01/34(b)(c) A-1+ -- $ 4,950 $ 4,950,000
- ---------------------------------------------------------------------------------------
Colorado (State of) Educational & Cultural
Facilities Authority (Regis Jesuit High
School Project); VRD Series 2003 RB
(LOC-Wells Fargo Bank N.A.)
2.28%, 12/01/33(b)(c) A-1+ -- 5,415 5,415,000
- ---------------------------------------------------------------------------------------
Colorado (State of) Educational & Cultural
Facilities Authority (Southeastern Baptist
Theological Seminary); VRD Series 2005
(LOC-Branch Banking & Trust Co.)
2.27%, 03/01/25(b)(c) -- VMIG-1 8,955 8,955,000
- ---------------------------------------------------------------------------------------
Colorado (State of) Health Facilities
Authority (Arapahoe House Project); VRD
Series 2004 A RB (LOC-Wells Fargo Bank
N.A.)
2.35%, 04/01/24(b)(c) A-1+ -- 1,200 1,200,000
- ---------------------------------------------------------------------------------------
Colorado (State of) Health Facilities
Authority (Bethesda Collinwood); Refunding
VRD Series 2004 B RB (LOC-ABN AMRO Bank
N.V.)
2.30%, 08/01/34(b)(c) A-1 -- 4,230 4,230,000
- ---------------------------------------------------------------------------------------
Colorado (State of) Health Facilities
Authority (Bethesda Living Centers);
Refunding VRD Series 2004 A RB (LOC-ABN
AMRO Bank N.V.)
2.30%, 08/01/34(b)(c) A-1 -- 5,270 5,270,000
- ---------------------------------------------------------------------------------------
Colorado (State of) Health Facilities
Authority (Bethesda Living Centers
Project); VRD Series 1999 RB (LOC-ABN AMRO
Bank N.V.)
2.30%, 08/15/30(b)(c) A-1 -- 9,855 9,855,000
- ---------------------------------------------------------------------------------------
Colorado (State of) Health Facilities
Authority (Catholic Health Initiatives);
VRD Series 2000 B RB
2.30%, 12/01/20(c) A-1+ VMIG-1 2,000 2,000,000
- ---------------------------------------------------------------------------------------
Colorado (State of) Health Facilities
Authority (Christian Living Project);
Refunding VRD Series 2002 A RB (LOC- U.S.
Bank N.A.)
2.32%, 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.)
2.28%, 12/01/20(b)(c) A-1+ -- 3,580 3,580,000
- ---------------------------------------------------------------------------------------
</Table>
F-2
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
COLORADO-(CONTINUED)
Colorado (State of) Health Facilities
Authority (Golden West Manor Inc. Project);
VRD Series 2002 A RB (LOC-U.S. Bank N.A.)
2.32%, 07/01/32(b)(c) A-1+ -- $ 4,210 $ 4,210,000
- ---------------------------------------------------------------------------------------
Colorado Springs (City of) (Pikes Peak Mental
Health); VRD Series 2003 RB (LOC-Wells
Fargo Bank N.A.)
2.28%, 03/15/23(b)(c) A-1+ -- 3,615 3,615,000
- ---------------------------------------------------------------------------------------
Concord (Metropolitan District of); Refunding
& Improvement Unlimited Tax Series 2004 GO
(LOC-Wells Fargo Bank N.A.)
2.25%, 12/01/05(b)(g)(l) A-1+ -- 1,585 1,585,000
- ---------------------------------------------------------------------------------------
Crystal Valley (Metropolitan) District No. 1;
VRD Series 2004 RB (LOC-Wells Fargo Bank
N.A.)
2.28%, 10/01/34(b)(c) A-1+ -- 2,795 2,795,000
- ---------------------------------------------------------------------------------------
Denver (City & County of) (Cottonwood Creek);
Refunding Multi-Family Housing Revenue VRD
Series 1989 A RB (CEP- Federal Home Loan
Mortgage Corp.) (Acquired 12/28/04; Cost
$1,000,000)
2.30%, 04/15/14(c)(e) A-1+ -- 1,000 1,000,000
- ---------------------------------------------------------------------------------------
Denver (City & County of) (Kentucky Circle
Village Project); VRD Series 2000 RB (LOC-
Mountain States Bank, U.S. Bank N.A.)
2.32%, 10/01/29(b)(c) A-1+ -- 1,740 1,740,000
- ---------------------------------------------------------------------------------------
Denver (City & County of) (Wellington E Web);
Refunding VRD Series 2003 C2 COP
2.30%, 12/01/29(c)(f) A-1+ VMIG-1 2,245 2,245,000
- ---------------------------------------------------------------------------------------
Denver (City & County of) (Colorado
Convention Center Project); Excise Tax VRD
Series 2001 B RB
2.30%, 09/01/25(c)(f) A-1+ VMIG-1 2,905 2,905,000
- ---------------------------------------------------------------------------------------
Idaho Springs (City of); (Safeway Inc.
Project); Refunding VRD Series 1993 IDR
(LOC-Deutsche Bank A.G.)
2.15%, 06/01/05(b)(g)(h) A-1+ -- 940 940,000
- ---------------------------------------------------------------------------------------
Jefferson (County of) School District No.
R-001; Series 2004 A TAN
3.00%, 06/30/05 SP-1+ MIG-1 30,000 30,109,955
- ---------------------------------------------------------------------------------------
Jefferson (County of) Section 14 Metropolitan
District; Refunding Unlimited Tax Series
2004 GO (LOC-U.S. Bank N.A.)
2.25%, 12/01/05(b)(g)(l) A-1+ -- 1,200 1,200,000
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
<Caption>
COLORADO-(CONTINUED)
Kipling Ridge (Metropolitan) District; VRD
Unlimited Tax Series 2005 GO (LOC-U.S. Bank
N.A.)
2.32%, 12/01/23(b)(c) A-1+ -- $ 3,725 $ 3,725,000
- ---------------------------------------------------------------------------------------
Lafayette (City of) Exempla Improvement
District (Special Improvement No. 2-01);
Refunding Special Assessment VRD Series
2002 RB (LOC-Wells Fargo Bank N.A.)
2.32%, 12/01/22(b)(c) A-1+ -- 1,000 1,000,000
- ---------------------------------------------------------------------------------------
Westminster (City of) Water & Wastewater
Utility Enterprise; VRD Series 2002 RB
2.32%, 12/01/22(c)(f) A-1+ VMIG-1 1,415 1,415,000
=======================================================================================
109,295,460
=======================================================================================
CONNECTICUT-0.04%
Connecticut (State of) Development Authority
(Central Vermont Public Service); Floating
Rate Series 1985 PCR (LOC-Royal Bank of
Scotland)
2.05%, 12/01/15(b)(m) A-1+ -- 1,400 1,400,000
=======================================================================================
DELAWARE-0.25%
Delaware (State of) Economic Development
Authority (Independent School Inc.
Project); VRD Series 2003 RB (LOC-Royal
Bank of Scotland)
2.28%, 07/01/33(b)(c) A-1+ -- 8,250 8,250,000
=======================================================================================
DISTRICT OF COLUMBIA-1.86%
District of Columbia (American Library
Association); VRD Series 2005 RB (LOC-Bank
of America, N.A.)
2.32%, 02/01/35(b)(c) -- VMIG-1 3,175 3,175,000
- ---------------------------------------------------------------------------------------
District of Columbia (American Psychology
Association); VRD Series 2003 RB (LOC-Bank
of America, N.A.)
2.35%, 03/01/28(b)(c) A-1+ -- 970 970,000
- ---------------------------------------------------------------------------------------
District of Columbia (Consortium Issue); VRD
Series 1998 RB (LOC-Wachovia Bank, N.A.)
2.29%, 07/01/23(b)(c) A-1 -- 15,755 15,755,000
- ---------------------------------------------------------------------------------------
District of Columbia (Resources for the
Future Inc.); VRD Series 1998 RB
(LOC-Wachovia Bank, N.A.)
2.35%, 08/01/29(b)(c) A-1 -- 2,015 2,015,000
- ---------------------------------------------------------------------------------------
District of Columbia (The John F. Kennedy
Center for the Performing Arts); VRD
Series 1999 RB
2.26%, 10/01/29(c)(f) A-1+ VMIG-1 19,820 19,820,000
- ---------------------------------------------------------------------------------------
</Table>
F-3
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA-(CONTINUED)
District of Columbia Pooled Loan Program
(American Council on Education); VRD Series
1998 A RB (LOC-Bank of America, N.A.)
(Acquired 01/06/08; Cost $10,000,000)
2.30%, 01/01/29(b)(c)(e) A-1+ -- $10,000 $ 10,000,000
- ---------------------------------------------------------------------------------------
District of Columbia; Refunding Unlimited Tax
Series 1993 B-1 GO
5.30%, 06/01/05(f) AAA Aaa 6,000 6,032,755
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (District of Columbia Water
& Sewer Authority); VRD Series 2003 A12 RB
(Acquired 02/24/03; Cost $4,640,000)
2.35%, 10/01/17(c)(d)(e) -- VMIG-1 4,640 4,640,000
=======================================================================================
62,407,755
=======================================================================================
FLORIDA-3.99%
ABN AMRO Munitops Ctfs. Trust (County of
Escambia); Refunding Florida Non-AMT VRD
Series 2002-24 Ctfs. (Acquired 10/24/02;
Cost $5,000,000)
2.31%, 10/01/10(c)(d)(e) -- VMIG-1 5,000 5,000,000
- ---------------------------------------------------------------------------------------
Alachua (County of) Health Facilities
Authority (Shands Teaching Hospital and
Clinics Inc.); VRD Series 2002 A RB
(LOC-SunTrust Bank)
2.29%, 12/01/12(b)(k) -- VMIG-1 10,485 10,485,000
- ---------------------------------------------------------------------------------------
Capital Projects Finance Authority (Capital
Projects Loan Program); VRD Series 1997 A
RB
2.31%, 08/01/17(c)(f) A-1+ -- 800 800,000
- ---------------------------------------------------------------------------------------
Collier (County of) Health Facilities
Authority (Cleveland Health Clinic); VRD
Hospital Series 2003 C-2 BAN (LOC- JPMorgan
Chase Bank)
2.11%, 05/11/05(b)(g)(l) A-1+ VMIG-1 3,500 3,500,000
- ---------------------------------------------------------------------------------------
Collier (County of) Industrial Development
Authority (Redlands Christian Migrant
Association Inc.); VRD Series 2001 RB (LOC-
Bank of America, N.A.)
2.35%, 12/01/26(b)(c)(j) -- -- 2,800 2,800,000
- ---------------------------------------------------------------------------------------
Dade (County of) Industrial Development
Authority (Dolphin's Stadium Project); VRD
Series 1985 D RB (LOC-Societe Generale)
2.26%, 01/01/16(b)(c) A-1+ -- 2,000 2,000,000
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
<Caption>
- ---------------------------------------------------------------------------------------
FLORIDA-(CONTINUED)
Florida (State of) Housing Finance Agency
(Huntington Place Apartments LP); VRD
Multifamily Housing Series 1985 GGG RB
(CEP-Federal National Mortgage Association)
2.28%, 12/01/13(c) A-1+ -- $ 4,500 $ 4,500,000
- ---------------------------------------------------------------------------------------
Jacksonville (City of) (Baptist Medical
Center); Commercial Paper Series 2004 RB
(LOC-Bank of America, N.A.)
1.93%, 07/27/05(b) A-1+ -- 18,000 18,000,000
- ---------------------------------------------------------------------------------------
Jacksonville (City of) Health Facilities
Authority (Samuel C. Taylor Foundation
Project); VRD Series 1998 RB (LOC-Bank of
America, N.A.) (Acquired 02/20/01; Cost
$2,600,000)
2.35%, 12/01/23(b)(c)(e)(j) -- -- 2,600 2,600,000
- ---------------------------------------------------------------------------------------
Jacksonville (City of) Health Facilities
Authority (University of Florida
Jacksonville Physicians, Inc.); VRD Series
2002 RB (LOC- Bank of America, N.A.)
2.35%, 06/01/22(b)(c) -- VMIG-1 12,140 12,140,000
- ---------------------------------------------------------------------------------------
Lee (County of) Industrial Development
Authority (Hope of Southwest Florida Inc.
Project); Refunding & Improvement VRD
Series 2004 RB (LOC-SunTrust Bank)
2.29%, 10/01/23(b)(j)(k) -- -- 4,000 4,000,000
- ---------------------------------------------------------------------------------------
Miami-Dade (County of) Educational Facilities
Authority (Carlos Albizu University
Project); VRD Series 2000 RB (LOC-Bank of
America, N.A.)
2.35%, 12/01/25(b)(c)(j) -- -- 9,200 9,200,000
- ---------------------------------------------------------------------------------------
Miami-Dade (County of) Industrial Development
Authority (Palmer Trinity Private School
Project); VRD Series 1999 IDR (LOC-Bank of
America, N.A.)
2.35%, 12/01/19(b)(c)(j) -- -- 3,100 3,100,000
- ---------------------------------------------------------------------------------------
Morgan Stanley & Co. Inc. Trust Floater Ctfs.
(State of Florida Department of
Environmental Protection); Floating Rate
Trust Ctfs. VRD Series 2002-722 RB
(Acquired 11/13/02; Cost $9,850,000)
2.32%, 07/01/22(c)(d)(e) A-1 -- 9,850 9,850,000
- ---------------------------------------------------------------------------------------
North Miami (City of) Educational Facilities
(Miami Country Day School Project); VRD
Series 1999 RB (LOC-Bank of America, N.A.)
2.35%, 08/01/19(b)(c)(j) -- -- 1,750 1,750,000
- ---------------------------------------------------------------------------------------
</Table>
F-4
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
FLORIDA-(CONTINUED)
Orange (County of) Health Facilities
Authority (Adventist Health System/Sunbelt
Inc.); VRD Series 1992 RB (LOC-SunTrust
Bank)
2.30%, 11/15/14(b)(c) A-1+ VMIG-1 $ 9,950 $ 9,950,000
- ---------------------------------------------------------------------------------------
Orange (County of) Health Facilities
Authority (Presbyterian Retirement
Communities Project); VRD Series 1998 RB
(LOC-Bank of America, N.A.)
2.35%, 11/01/28(b)(c)(j) -- -- 7,970 7,970,000
- ---------------------------------------------------------------------------------------
Orlando & Orange (Counties of) Expressway
Authority; VRD Sub Series 2005 A-3 RB
2.28%, 07/01/40(c)(f) A-1+ VMIG-1 10,000 10,000,000
- ---------------------------------------------------------------------------------------
Palm Beach (County of) Educational Facilities
Authority (Atlantic College Project);
Educational Facilities VRD Series 2001 RB
(LOC-Bank of America, N.A.)
2.35%, 12/01/31(b)(c)(j) -- -- 2,700 2,700,000
- ---------------------------------------------------------------------------------------
Palm Beach (County of) Health Facilities
Authority (Jupiter Medical Center Inc.);
VRD Series 1999 B RB (LOC-Wachovia Bank,
N.A.)
2.35%, 08/01/20(b)(c)(j) -- -- 7,250 7,250,000
- ---------------------------------------------------------------------------------------
Tampa (City of) (Agency for Community
Treatment DACCO Project); VRD Series 2001
RB (LOC-Bank of America, N.A.)
2.35%, 07/01/22(b)(c)(j) -- -- 5,080 5,080,000
- ---------------------------------------------------------------------------------------
University of North Florida Foundation, Inc.
(Parking System); VRD Series 1998 RB
(LOC-Wachovia Bank, N.A.)
2.30%, 05/01/28(b)(c) A-1 -- 800 800,000
=======================================================================================
133,475,000
=======================================================================================
GEORGIA-3.94%
ABN AMRO Munitops Ctfs. Trust (State of
Georgia); Non-AMT VRD Series 2004-15 Ctfs.
(Acquired 10/12/04; Cost $9,995,000)
2.32%, 04/06/05(c)(d)(e) -- VMIG-1 9,995 9,995,000
- ---------------------------------------------------------------------------------------
Bartow (County of) School District; Unlimited
Tax Series 2003 GO
3.00%, 11/01/05 AA+ -- 950 954,922
- ---------------------------------------------------------------------------------------
Burke (County of) Development Authority
(Oglethorpe Power Corp.); VRD Series 1994 A
PCR
2.30%, 01/01/19(c)(f) A-1+ VMIG-1 17,700 17,700,000
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
<Caption>
- ---------------------------------------------------------------------------------------
GEORGIA-(CONTINUED)
CDC Municipal Products, Inc. (Forsyth (County
of) School District); VRD Unlimited Tax
Series 2004-6 A GO (Acquired 10/20/04; Cost
$3,000,000)
2.32%, 02/01/18(c)(d)(e) A-1+ -- $ 3,000 $ 3,000,000
- ---------------------------------------------------------------------------------------
Clayton (County of) Development Authority
(Delta Airlines Project); Special
Facilities VRD Series 2000 A RB
(CEP-General Electric Capital Corp.)
2.32%, 06/01/29(c) A-1+ VMIG-1 12,000 12,000,000
- ---------------------------------------------------------------------------------------
Cobb (County of) Development Authority (YMCA
of Cobb County); VRD Series 2003 RB (LOC-
Branch Banking & Trust Co.)
2.27%, 12/01/25(b)(c) -- VMIG-1 1,000 1,000,000
- ---------------------------------------------------------------------------------------
Cobb (County of) Housing Authority (Tamarron
Apartments Project); Refunding Multi-Family
Housing VRD Series 2003 RB (CEP- Federal
Home Loan Mortgage Corp.)
2.30%, 03/01/24(c) A-1+ -- 4,820 4,820,000
- ---------------------------------------------------------------------------------------
DeKalb (County of) Hospital Authority (DeKalb
Medical Center Inc. Project); VRD Series
2000 B RB (LOC-Wachovia Bank, N.A.)
2.29%, 10/01/25(b)(c) -- VMIG-1 10,450 10,450,000
- ---------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (State of Georgia);
VRD Series 2000-1001 Class C COP (Acquired
07/26/00; Cost $20,000,000)
2.32%, 07/01/15(c)(d)(e) A-1+ -- 20,000 20,000,000
- ---------------------------------------------------------------------------------------
Floyd (County of) Development Authority
(Shorter College Project); VRD Series 1998
RB (LOC-SunTrust Bank)
2.43%, 06/01/17(b)(c) A-1+ -- 1,800 1,800,000
- ---------------------------------------------------------------------------------------
Fulton (County of) Development Authority
(Bridgeway Foundation for Education
Project); Educational Facilities VRD Series
2000 RB (LOC-Wachovia Bank, N.A.)
2.34%, 06/01/15(b)(c) A-1 -- 1,400 1,400,000
- ---------------------------------------------------------------------------------------
Fulton (County of) Development Authority
(Pace Academy Inc. Project); VRD Series
1998 RB (LOC-Bank of America, N.A.)
2.30%, 07/01/18(b)(c)(j) -- -- 5,375 5,375,000
- ---------------------------------------------------------------------------------------
Fulton (County of) Development Authority
(Woodward Academy Inc. Project); VRD Series
2002 RB (LOC-SunTrust Bank)
2.29%, 12/01/27(b)(c) -- VMIG-1 6,400 6,400,000
- ---------------------------------------------------------------------------------------
</Table>
F-5
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
GEORGIA-(CONTINUED)
Fulton (County of) Hospital Authority
(Northside Hospital Inc.); VRD Series 2003
A RAN (LOC-Wachovia Bank, N.A.)
2.29%, 10/01/18(b)(c) -- VMIG-1 $28,080 $ 28,080,000
- ---------------------------------------------------------------------------------------
Smyrna (City of) Hospital Authority
(Ridgeview Institute Inc. Project); VRD
Series 2002 RB (LOC- Wachovia Bank, N.A.)
2.34%, 11/01/27(b)(c) -- VMIG-1 2,060 2,060,000
- ---------------------------------------------------------------------------------------
Tallapoosa (City of) Development Authority
(U.S. Can Co. Project); VRD Series 1994
RB(LOC- Deutsche Bank A.G.)
2.35%, 02/01/15(b)(c) A-1 -- 2,000 2,000,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (City of Dalton); Utilities
VRD Series 2003 A02 RB (Acquired 08/25/04;
Cost $4,860,000)
2.35%, 01/01/12(c)(d)(e) -- VMIG-1 4,860 4,860,000
=======================================================================================
131,894,922
=======================================================================================
HAWAII-0.29%
Eagle Tax Exempt Trust (State of Hawaii); VRD
Series 2000-1101 COP (Acquired 01/11/01;
Cost $6,000,000)
2.32%, 12/01/16(c)(d)(e) A-1+ -- 6,000 6,000,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (State of Hawaii); Unlimited
Tax VRD Series 2003 A16 GO (Acquired
02/27/03; Cost $3,880,000)
2.35%, 07/01/18(c)(d)(e) -- VMIG-1 3,880 3,880,000
=======================================================================================
9,880,000
=======================================================================================
IDAHO-0.36%
Custer (County of) Pollution Control (Amoco
Oil Co.-Standard Oil Industry Project); VRD
Series 1983 RB
1.55%, 04/01/05(g)(h) A-1+ Aa1 10,000 10,000,000
- ---------------------------------------------------------------------------------------
Magic Valley Healthcare System Inc. (Magic
Valley Regional Medical Center Project);
VRD Series 2001 RB (LOC-Wells Fargo Bank
N.A.)
2.28%, 12/01/21(b)(c) -- VMIG-1 2,040 2,040,000
=======================================================================================
12,040,000
=======================================================================================
ILLINOIS-14.93%
ABN AMRO Munitops Ctfs. Trust (City of
Chicago); Refunding Multi-State Non-AMT VRD
Limited Tax Series 2001-34 Ctfs. (Acquired
11/15/01; Cost $10,000,000)
2.33%, 07/01/07(c)(d)(e) -- VMIG-1 10,000 10,000,000
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
<Caption>
- ---------------------------------------------------------------------------------------
ILLINOIS-(CONTINUED)
Bear Stearns Municipal Securities Trust Ctfs.
(State of Illinois Sales Tax); VRD Series
1998-25 A RB (Acquired 08/26/99; Cost
$10,000,000)
2.30%, 03/15/07(c)(d)(e) A-1 Aa2 $10,000 $ 10,000,000
- ---------------------------------------------------------------------------------------
Bear Stearns Municipal Securities Trust Ctfs.
(State of Illinois); VRD Series 2002-190 A
RB (Acquired 05/06/02; Cost $10,130,00)
2.30%, 06/05/14(c)(d)(e) A-1 -- 10,130 10,130,000
- ---------------------------------------------------------------------------------------
Chicago (City of); VRD Limited Tax Obligation
Tender Series 2004 GO (LOC-State Street
Bank & Trust Co.)
2.20%, 12/08/05(b)(g)(l) SP-1+ MIG-1 7,000 7,000,000
- ---------------------------------------------------------------------------------------
Chicago (City of); Refunding Water Revenue
Second Lien VRD Series 2004 RB
2.28%, 11/01/31(c)(f) A-1+ VMIG-1 30,000 30,000,000
- ---------------------------------------------------------------------------------------
Cook (County of) (Catholic Theological Union
Project); VRD Series 2005 RB (LOC-Bank of
Montreal)
2.30%, 02/01/35(b)(c) -- VMIG-1 4,000 4,000,000
- ---------------------------------------------------------------------------------------
Cook (County of) High School District No. 201
(J. Sterling Morton Township); School
Limited Tax Series 2004 GO
4.38%, 12/01/05(f) -- Aaa 5,000 5,074,796
- ---------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Chicago Park
District); VRD Unlimited Tax Series
2002-1306 A COP (Acquired 05/02/02; Cost
$5,500,000)
2.32%, 01/01/29(c)(d)(e) A-1+ -- 5,500 5,500,000
- ---------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Chicago
Public Building Commission); VRD Series
2003-0015 A COP (Acquired 05/14/03; Cost
$2,800,000)
2.32%, 12/01/14(c)(d)(e) A-1+ -- 2,800 2,800,000
- ---------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Chicago Water
& Sewer); VRD Series 2001-1308 COP
(Acquired 12/12/01; Cost $8,655,000)
2.32%, 11/01/26(c)(d)(e) A-1+ -- 8,655 8,655,000
- ---------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Chicago); VRD
Series 2001-1305 COP (Acquired 04/02/01;
Cost $4,950,000)
2.43%, 01/01/35(c)(d)(e) A-1+ -- 4,950 4,950,000
- ---------------------------------------------------------------------------------------
</Table>
F-6
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
ILLINOIS-(CONTINUED)
Eagle Tax Exempt Trust (County of Cook
Regional Transportation Authority); VRD
Series 2000-1303 COP (Acquired 03/26/01;
Cost $19,000,000)
2.32%, 07/01/23(c)(d)(e) A-1+ -- $19,000 $ 19,000,000
- ---------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (State of Illinois);
VRD Series 2000-1304 COP (Acquired
06/27/00; Cost $7,340,000)
2.32%, 06/01/21(c)(d)(e) A-1+ -- 7,340 7,340,000
- ---------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (State of Illinois);
VRD Unlimited Tax Series 2003-0023 A COP
(Acquired 06/12/03; Cost $3,775,000)
2.32%, 06/01/15(c)(d)(e) A-1+ -- 3,775 3,775,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (American College of Surgeons);
VRD Series 1996 RB (LOC-Northern Trust Co.)
2.17%, 08/01/26(b)(c) A-1+ -- 6,120 6,120,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (BAPS Inc. Project); VRD Series
2002 RB (LOC-Comerica Bank)
2.30%, 06/01/17(b)(c) A-1 -- 8,385 8,385,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (British Home for Retired Men &
Women); VRD Series 2001 RB (LOC-ABN AMRO
Bank N.V.)
2.30%, 11/01/27(b)(c) A-1 -- 8,740 8,740,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (Chicago Shakespeare Theater
Project); VRD Series 1999 RB (LOC-ABN AMRO
Bank N.V.) (Acquired 09/24/03; Cost
$4,100,000)
2.30%, 01/01/19(b)(c)(e) A-1 -- 4,100 4,100,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (Embers Elementary School
Project); Educational Facilities VRD Series
2002 RB (LOC-ABN AMRO Bank N.V.) (Acquired
11/04/03; Cost $2,250,000)
2.31%, 04/01/32(b)(c)(e) A-1 -- 2,250 2,250,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (Fenwick High School Project);
VRD Series 1997 RB (LOC-JPMorgan Chase
Bank)
2.30%, 03/01/32(b)(c) A-1+ -- 6,200 6,200,000
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
<Caption>
- ---------------------------------------------------------------------------------------
ILLINOIS-(CONTINUED)
Illinois (State of) Development Finance
Authority (Institute of Gas Technology
Project); VRD Series 1999 IDR (LOC-Bank of
Montreal)
2.33%, 09/01/24(b)(c) A-1+ -- $ 2,000 $ 2,000,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (Lyric Opera of Chicago Project);
VRD Series 1994 RB (LOC-Northern Trust Co.,
Bank of Montreal, JPMorgan Chase Bank)
2.30%, 12/01/28(b)(c) A-1+ VMIG-1 49,800 49,800,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (Mount Carmel High School
Project); VRD Series 2003 RB (LOC-JPMorgan
Chase Bank)
2.30%, 07/01/33(b)(c) -- VMIG-1 5,600 5,600,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (The Museum of Contemporary Art
Project); VRD Series 1994 RB (LOC- JPMorgan
Chase Bank, Northern Trust Co.)
2.30%, 02/01/29(b)(c) A-1 VMIG-1 14,950 14,950,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (North Shore Country Day School);
VRD Series 2003 RB (LOC-Northern Trust Co.)
2.30%, 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-ABN AMRO
Bank N.V.) (Acquired 01/29/03; Cost
$2,975,000)
2.30%, 07/01/41(b)(c)(e) 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)
2.30%, 07/01/33(b)(c) -- VMIG-1 4,600 4,600,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (West Central Illinois
Educational Project); VRD Series 2002 RB
(LOC-JPMorgan Chase Bank)
2.30%, 09/01/32(b)(c) -- VMIG-1 4,800 4,800,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Educational Facilities
Authority (Aurora University); VRD Cultural
Pooled Financing Series 1998 RB (LOC- Bank
of America, N.A.)
2.32%, 03/01/28(b)(c) A-1+ -- 6,670 6,670,000
- ---------------------------------------------------------------------------------------
</Table>
F-7
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
ILLINOIS-(CONTINUED)
Illinois (State of) Educational Facilities
Authority (Aurora University); VRD Series
2002 RB (LOC-Fifth Third Bank)
2.35%, 03/01/32(b)(c) -- VMIG-1 $ 3,300 $ 3,300,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Educational Facilities
Authority (Blackburn University); Cultural
Pooled Financing VRD Series 1999 RB
(LOC-Bank of America, N.A.)
2.32%, 07/01/29(b)(c) A-1+ -- 1,385 1,385,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Educational Facilities
Authority (Chicago Childrens Museum); VRD
Series 1994 RB (LOC-JPMorgan Chase Bank)
2.30%, 02/01/28(b)(c) A-1 VMIG-1 4,250 4,250,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Educational Facilities
Authority (Lincoln Park Society); VRD
Series 1999 RB (LOC-JPMorgan Chase Bank)
2.30%, 01/01/29(b)(c) A-1+ -- 2,825 2,825,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Educational Facilities
Authority (National Louis University); VRD
Series 1999 B RB (LOC-JPMorgan Chase Bank)
2.30%, 06/01/29(b)(c) A-1+ -- 2,300 2,300,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Finance Authority
(Illinois Institute of Technology); VRD
Series 2004 RB (LOC-Bank of Montreal)
2.30%, 12/01/24(b)(c) -- VMIG-1 5,000 5,000,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Finance Authority (Jewish
Charities); VRD Series 2004 A RN (LOC-Bank
of Montreal)
2.30%, 06/30/05(b)(c) A-1+ -- 7,630 7,630,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Finance Authority (Kohl
Children's Museum); VRD Series 2004 RB
(LOC-Fifth Third Bank)
2.30%, 07/01/34(b)(c) -- VMIG-1 2,680 2,680,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Finance Authority (Mercy
Alliance Project); VRD Series 2005 RB
(LOC-M&I Marshall & Ilsley Bank)
2.31%, 02/15/35(b)(c) -- VMIG-1 7,000 7,000,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Finance Authority
(Richard H. Driehaus Museum); VRD Series
2005 RB (LOC- Northern Trust Co.)
2.30%, 02/01/35(b)(c) -- VMIG-1 2,900 2,900,000
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
<Caption>
- ---------------------------------------------------------------------------------------
ILLINOIS-(CONTINUED)
Illinois (State of) Finance Authority
(Sunshine Through Golf Foundation Project);
VRD Series 2004 A RB (LOC-ABN AMRO Bank
N.V.)
2.31%, 11/01/24(b)(c) A-1 -- $ 2,100 $ 2,100,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Finance Authority; VRD
Series 2005 RAN (LOC-Bank of Montreal)
2.30%, 06/30/05(b)(c) A-1+ -- 3,300 3,300,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Health Facilities
Authority (Bensenville Home Society); VRD
Series 1989 A RB (LOC-JPMorgan Chase Bank)
2.32%, 02/15/19(b)(c) A-1 -- 1,100 1,100,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Health Facilities
Authority (OSF Healthcare System); VRD
Series 2002 RB (LOC-Fifth Third Bank)
2.27%, 11/15/27(b)(k) A-1+ VMIG-1 7,100 7,100,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Health Facilities
Authority (Peace Memorial Ministries); VRD
Series 2003 B RB (LOC-ABN AMRO Bank N.V.)
2.30%, 08/15/33(b)(c) A-1 -- 9,845 9,845,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Health Facilities
Authority (St. Lukes Medical Center); VRD
Series 1998 B RB
2.28%, 11/15/23(c)(f) A-1+ VMIG-1 1,000 1,000,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Health Facilities
Authority; Revolving Fund Pooled VRD Series
1985 C RB (LOC- JPMorgan Chase Bank)
2.30%, 08/01/15(b)(c) A-1+ VMIG-1 7,000 7,000,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Health Facilities
(Franciscan Eldercare Service); VRD Series
2001 RB (LOC-ABN AMRO Bank N.V.)
2.30%, 05/15/32(b)(c) A-1 -- 10,800 10,800,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Regional Transportation
Authority; Series 1994 A RB
5.80%, 06/01/05(f) AAA Aaa 3,300 3,321,356
- ---------------------------------------------------------------------------------------
Illinois (State of) Toll Highway Authority;
Refunding Toll Highway VRD Series 1998 B RB
2.25%, 01/01/16(c)(f) -- VMIG-1 15,900 15,900,000
- ---------------------------------------------------------------------------------------
2.25%, 01/01/17(c)(f) -- VMIG-1 4,600 4,600,000
- ---------------------------------------------------------------------------------------
Lombard (City of) (Clover Creek Apartments
Project); VRD Multi-Family Housing Series
2000 RB (CEP-Federal National Mortgage
Association)
2.31%, 12/15/30(c) A-1+ -- 14,855 14,855,000
- ---------------------------------------------------------------------------------------
</Table>
F-8
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
ILLINOIS-(CONTINUED)
Macon (County of) (Millikin University); VRD
Series 1999 RB
2.30%, 10/01/28(c)(f) A-1+ -- $ 4,500 $ 4,500,000
- ---------------------------------------------------------------------------------------
McCook (City of) (Illinois Saint Andrew
Society); VRD Series 1996 A RB
(LOC-Northern Trust Co.)
2.32%, 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-ABN AMRO Bank
N.V.)
2.30%, 12/01/14(b)(c) A-1 -- 2,470 2,470,000
- ---------------------------------------------------------------------------------------
Quincy (City of) (Blessing Hospital Project);
VRD Series 2004 RB (LOC-JPMorgan Chase
Bank)
2.30%, 11/15/33(b)(c) A-1+ VMIG-1 13,900 13,900,000
- ---------------------------------------------------------------------------------------
Rochelle (City of) Hospital Facility
(Rochelle Community Hospital Project); VRD
Series 2004 RB (LOC-JPMorgan Chase Bank.)
2.30%, 08/01/34(b)(c) -- VMIG-1 5,200 5,200,000
- ---------------------------------------------------------------------------------------
Rockford (City of) (Wesley Willows); VRD
Series 2002 RB (LOC-M&I Marshall & Isley
Bank)
2.31%, 04/01/32(b)(k) A-1 -- 9,000 9,000,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (Central Lake County Joint
Action Water Agency); VRD Series 2003 B18
RB (Acquired 02/19/03; Cost $3,150,000)
2.35%, 05/01/20(c)(d)(e) -- VMIG-1 3,150 3,150,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (City of Chicago Board of
Education); VRD Unlimited Tax Series 2000
A4 GO (Acquired 11/12/03; Cost $4,845,000)
2.11%, 11/10/05(d)(e)(g)(l)(n) -- VMIG-1 4,845 4,845,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (City of Chicago Emergency
Telephone System); VRD Limited Tax Series
2002 A44 GO (Acquired 08/02/02; Cost
$7,845,000)
2.35%, 01/01/20(c)(d)(e) -- VMIG-1 7,845 7,845,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (City of Chicago); VRD
Limited Tax Series 2000 A12 GO (Acquired
10/13/00; Cost $10,000,000)
2.35%, 01/01/23(c)(d)(e) -- VMIG-1 10,000 10,000,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (Cook County Regional
Transportation Authority); VRD Series 2001
A93 RB (Acquired 10/10/01; Cost $3,665,000)
2.35%, 07/01/27(c)(d)(e) -- VMIG-1 3,665 3,665,000
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
<Caption>
ILLINOIS-(CONTINUED)
Wachovia MERLOTs (Cook County Regional
Transportation Authority); VRD Unlimited
Tax Series 2002 A41 GO (Acquired 07/25/02;
Cost $17,775,000)
2.35%, 06/01/17(c)(d)(e) -- VMIG-1 $17,775 $ 17,775,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (Cook County); VRD Unlimited
Tax Series 2003 B11 GO (Acquired 01/29/03;
Cost $6,995,000)
2.35%, 11/15/25(c)(d)(e) -- VMIG-1 6,995 6,995,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (Regional Transportation
Authority); VRD Series 2001 A69 RB
(Acquired 11/09/04; Cost $11,770,000)
2.11%, 11/10/05(d)(e)(g)(l)(n) -- VMIG-1 11,770 11,770,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (State of Illinois); VRD
Unlimited Tax Series 2001 A124 GO (Acquired
11/26/01; Cost $7,905,000)
2.35%, 11/01/26(c)(d)(e) A-1 -- 7,905 7,905,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (University of Illinois);
VRD Series 2000 S GO (Acquired 03/20/00;
Cost $7,400,000)
2.35%, 04/01/30(c)(d)(e) -- VMIG-1 7,400 7,400,000
=======================================================================================
499,851,152
=======================================================================================
INDIANA-3.26%
ABN AMRO Munitops Ctfs. Trust (Township of
Wayne, County of Marion School Building
Corp.); Multi-State Non-AMT VRD Series
2003-27 RB (Acquired 11/12/03; Cost
$13,795,000)
2.33%, 07/15/11(c)(d)(e) -- VMIG-1 13,795 13,795,000
- ---------------------------------------------------------------------------------------
CDC Municipal Products, Inc. (Indiana State
of Transportation Finance Authority);
Highway VRD Series 2004-5 A RB (Acquired
10/21/04; Cost $2,000,000)
2.32%, 12/01/18(c)(d)(e) A-1+ -- 2,000 2,000,000
- ---------------------------------------------------------------------------------------
Indiana (State of) Bond Bank; Advance Funding
Program Series 2005 A RN
3.25%, 01/26/06 SP-1+ MIG-1 20,000 20,152,637
- ---------------------------------------------------------------------------------------
Indiana (State of) Educational Facilities
Authority (Indiana Wesleyan University
Project); Educational Facilities VRD Series
1998 A RB (LOC-JPMorgan Chase Bank)
2.30%, 06/01/28(b)(c) A-1+ -- 9,600 9,600,000
- ---------------------------------------------------------------------------------------
</Table>
F-9
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
INDIANA-(CONTINUED)
Indiana (State of) Educational Facilities
Authority (Wabash College Project);
Educational Facilities Series 2003 RB (LOC-
JPMorgan Chase Bank)
2.30%, 12/01/23(b)(c) -- VMIG-1 $ 5,870 $ 5,870,000
- ---------------------------------------------------------------------------------------
Indiana (State of) Health Facilities
Financing Authority (Community Hospitals
Project); VRD Hospital Series 2000 A RB
(LOC-Bank of America, N.A.)
2.30%, 07/01/28(b)(c) A-1+ -- 3,892 3,892,000
- ---------------------------------------------------------------------------------------
Indiana (State of) Health Facilities
Financing Authority (Deaconess Hospital
Inc.); Hospital VRD Series 1992 ACES RB
(LOC-Fifth Third Bank)
2.30%, 01/01/22(b)(c) A-1+ -- 11,920 11,920,000
- ---------------------------------------------------------------------------------------
Indiana (State of) Health Facilities
Financing Authority (Golden Years
Homestead); VRD Series 2002 A RB (LOC-Wells
Fargo Bank N.A.)
2.28%, 06/01/25(b)(c) A-1+ -- 6,500 6,500,000
- ---------------------------------------------------------------------------------------
Kokomo (City of) Hospital Authority (St.
Joseph's Hospital Center); Refunding
Hospital Series 1993 RB
6.35%, 08/15/05(g)(i) AAA Aaa 3,000 3,050,845
- ---------------------------------------------------------------------------------------
Petersburg (City of) Pollution Control
(Indianapolis Power & Light Co.); Refunding
VRD Series 1995 B PCR
2.30%, 01/01/23(c)(f) -- VMIG-1 23,000 23,000,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (County of Porter Jail
Building Corp.); VRD Series 2001 A58 RB
(Acquired 11/12/03; Cost $9,410,000)
2.11%, 11/10/05(d)(e)(g)(l)(n) -- VMIG-1 9,410 9,410,000
=======================================================================================
109,190,482
=======================================================================================
IOWA-1.20%
Iowa (State of) Finance Authority
(Morningside College Project); Private
College Facility VRD Series 2002 RB (LOC-
U.S. Bank N.A.)
2.35%, 10/01/32(b)(c) A-1+ -- 2,320 2,320,000
- ---------------------------------------------------------------------------------------
Iowa (State of) Finance Authority Retirement
Community (Deerfield Retirement Community);
VRD Series 2003 A RB (LOC-ABN AMRO Bank
N.V.)
2.30%, 12/01/33(b)(c) A-1 -- 15,000 15,000,000
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
<Caption>
- ---------------------------------------------------------------------------------------
IOWA-(CONTINUED)
Iowa (State of) Higher Education Loan
Authority (Graceland Private College); VRD
Series 2003 RB (LOC-Bank of America, N.A.)
2.35%, 02/01/33(b)(c) -- VMIG-1 $ 2,000 $ 2,000,000
- ---------------------------------------------------------------------------------------
Iowa (State of) School Corps.; School Cash
Anticipation Program Series 2004 A Wts.
Ctfs.
3.00%, 06/30/05(f) -- MIG-1 10,000 10,034,200
- ---------------------------------------------------------------------------------------
Iowa (State of); School Cash Anticipation
Program Series 2005 B RN
3.50%, 01/27/06(f) -- MIG-1 10,700 10,805,204
=======================================================================================
40,159,404
=======================================================================================
KANSAS-1.27%
Eagle Tax Exempt Trust (County of Wyandotte
Unified Government Utility System); VRD
Series 2004-0038 A COP (Acquired 09/08/04;
Cost $5,000,000)
2.32%, 09/01/21(c)(d)(e) A-1+ -- 5,000 5,000,000
- ---------------------------------------------------------------------------------------
Kansas (State of) Development Finance
Authority (Deaconess Long Term Care);
Health Facilities VRD Series 2000 C RB
(LOC-ABN AMRO Bank N.V.)
2.29%, 05/15/30(b)(c) -- VMIG-1 4,380 4,380,000
- ---------------------------------------------------------------------------------------
Leawood (City of); Unlimited Tax Temporary
Notes Series 2004-2 GO
3.00%, 10/01/05 -- MIG-1 14,000 14,091,450
- ---------------------------------------------------------------------------------------
Lenexa (City of) Health Care Facilities
(Lakeview Village Inc.); VRD Series 2002 B
RB (LOC-ABN AMRO Bank N.V.)
2.30%, 05/15/32(b)(c) A-1 -- 7,500 7,500,000
- ---------------------------------------------------------------------------------------
Olathe (City of) Health Facilities (Cedar
Lake Village Inc. Project); VRD Series 2004
RB (LOC-Bank of America, N.A.)
2.30%, 12/01/29(b)(c) -- VMIG-1 5,000 5,000,000
- ---------------------------------------------------------------------------------------
Olathe (City of) Recreational Facilities
(YMCA of Greater Kansas City Project); VRD
Series 2002 B RB (LOC-Bank of America,
N.A.)
2.35%, 11/01/18(b)(c) -- VMIG-1 3,100 3,100,000
- ---------------------------------------------------------------------------------------
Wichita (City of) Recreational Facilities
(YMCA of Wichita Project); VRD Series 1998
XI RB (LOC-Bank of America, N.A.) (Acquired
02/15/01; Cost $3,500,000)
2.35%, 08/01/09(b)(c)(e) A-1+ -- 3,500 3,500,000
=======================================================================================
42,571,450
=======================================================================================
</Table>
F-10
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
KENTUCKY-1.20%
Kentucky (State of) Area Development
Districts Financing Trust (Weekly
Acquisition-Ewing); Lease Program VRD
Series 2000 RB (LOC-Wachovia Bank, N.A.)
2.39%, 06/01/33(b)(c) A-1 -- $ 5,660 $ 5,660,000
- ---------------------------------------------------------------------------------------
Kentucky (State of) Asset/Liability
Commission; General Funding Series 2004 A
TRAN
3.00%, 06/29/05 SP-1+ MIG-1 15,000 15,052,221
- ---------------------------------------------------------------------------------------
Newport (City of) Kentucky League of Cities
Funding Trust; Lease Program VRD Series
2002 RB (LOC-U.S. Bank N.A.)
2.19%, 04/01/32(b)(c) -- VMIG-1 19,600 19,600,000
=======================================================================================
40,312,221
=======================================================================================
LOUISIANA-0.88%
Eagle Tax Exempt Trust (City of New Orleans);
VRD Series 2000-1801 COP (Acquired
10/10/00; Cost $6,000,000)
2.32%, 12/01/21(c)(d)(e) A-1+ -- 6,000 6,000,000
- ---------------------------------------------------------------------------------------
Louisiana (State of) Public Facilities
Authority (Glen Retirement System Project);
VRD Series 2001 RB (LOC-AmSouth Bank)
(Acquired 08/15/01; Cost $3,270,000)
2.40%, 08/01/16(b)(c)(e) -- VMIG-1 3,270 3,270,000
- ---------------------------------------------------------------------------------------
Louisiana (State of) Regional Transit
Authority; Lease Series 1998 Long Fund RB
6.13%, 05/01/05(g)(i) AAA Aaa 1,800 1,807,860
- ---------------------------------------------------------------------------------------
Louisiana (State of); Unlimited Tax Series
1995 A GO
6.00%, 05/15/05(g)(i) AAA Aaa 5,890 6,036,193
- ---------------------------------------------------------------------------------------
Series 1998 B GO
5.50%, 04/15/05(f) AAA Aaa 1,775 1,777,874
- ---------------------------------------------------------------------------------------
Series 2003 A GO
6.00%, 05/01/05(o) AAA Aaa 10,665 10,701,707
=======================================================================================
29,593,634
=======================================================================================
MAINE-0.20%
JPMorgan PUTTERs (State of Maine Turnpike
Authority); VRD Turnpike Series 2004 546 RB
(Acquired 10/28/04; Cost $1,800,000)
2.32%, 07/01/12(c)(d)(e) -- VMIG-1 1,800 1,800,000
- ---------------------------------------------------------------------------------------
Maine (State of) Housing Authority; Mortgage
Series 2003 E-1 RB
2.26%, 11/15/30(c)(f) A-1+ VMIG-1 4,785 4,785,000
=======================================================================================
6,585,000
=======================================================================================
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
<Caption>
MARYLAND-0.55%
Frederick (County of) Retirement Community
(Buckingham's Choice Inc. Project); VRD
Series 1997 C RB (LOC-Branch Banking &
Trust Co.)
2.31%, 01/01/27(b)(c) A-1 -- $ 6,000 $ 6,000,000
- ---------------------------------------------------------------------------------------
Howard (County of) Economic Development
(Norbel School Inc. Project); VRD Series
2001 RB (LOC-Branch Banking & Trust Co.)
2.27%, 02/01/28(b)(c) -- Aa3 4,785 4,785,000
- ---------------------------------------------------------------------------------------
Maryland (State of) Economic Development
Corp. (YMCA of Central Maryland Inc.
Project); VRD Series 2003 RB (LOC- Branch
Banking & Trust Co.)
2.27%, 04/01/28(b)(c) -- VMIG-1 3,800 3,800,000
- ---------------------------------------------------------------------------------------
Morgan Stanley & Co. Inc. Trust Floater Ctfs.
(State of Maryland Health & Higher
Educational Facilities Authority); VRD
Floating Rate Trust Ctfs. Series 2003-829
RB (Acquired 06/19/03; Cost $3,800,000)
2.32%, 08/15/38(c)(d)(e) -- VMIG-1 3,800 3,800,000
=======================================================================================
18,385,000
=======================================================================================
MASSACHUSETTS-0.65%
Massachusetts (State of) Health & Educational
Facilities Authority (Fairview Extended
Care Services Inc.); Refunding VRD Series
1997 B RB (LOC-Bank of America, N.A.)
2.29%, 01/01/21(b)(c) -- VMIG-1 21,620 21,620,000
=======================================================================================
MICHIGAN-4.91%
Bruce (Township of) Hospital Finance
Authority (Sisters Charity of St. Joseph);
Health Care System VRD Series 1988 A RB
1.80%, 05/02/05(f)(g)(h) A-1+ VMIG-1 2,000 2,000,000
- ---------------------------------------------------------------------------------------
Dearborn (City of) Economic Development Corp.
(Henry Ford Village Inc. Project); VRD
Limited Tax Series 1998 IDR (LOC- Comerica
Bank)
2.33%, 10/01/23(b)(c)(p) -- -- 8,600 8,600,000
- ---------------------------------------------------------------------------------------
Eagle Tax-Exempt Trust (City of Detroit
School District); VRD Unlimited Tax Series
2002-6014 A GO (Acquired 11/06/02; Cost
$7,105,000)
2.32%, 05/01/32(c)(d)(e) A-1+ -- 7,105 7,105,000
- ---------------------------------------------------------------------------------------
</Table>
F-11
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
MICHIGAN-(CONTINUED)
Kalamazoo (County of) Economic Development
Corp. (Heritage Community Project);
Refunding VRD Limited Tax Series 2004 RB
(LOC-Fifth Third Bank)
2.28%, 05/15/17(b)(c) A-1+ -- $ 5,405 $ 5,405,000
- ---------------------------------------------------------------------------------------
Lake Orion (City of) Community School
District; Refunding Unlimited Tax Series
1994 GO
7.00%, 05/01/05(g)(i) AAA Aaa 13,170 13,357,320
- ---------------------------------------------------------------------------------------
Michigan (State of) Higher Educational
Facilities Authority (Hope College);
Refunding VRD Limited Tax Series 2004 GO
(LOC-JPMorgan Chase Bank)
2.31%, 04/01/34(b)(c) A-1 -- 1,900 1,900,000
- ---------------------------------------------------------------------------------------
Michigan (State of) Hospital Finance
Authority (Holland Community Hospital); VRD
Series 2004 B RB (LOC-JPMorgan Chase Bank)
2.29%, 01/01/34(b)(c) -- VMIG-1 2,000 2,000,000
- ---------------------------------------------------------------------------------------
Michigan (State of) Municipal Bond Authority;
Series 2004 B-2 RN (LOC-JPMorgan Chase
Bank)
3.00%, 08/23/05(b) SP-1+ -- 15,000 15,083,289
- ---------------------------------------------------------------------------------------
Michigan (State of) Strategic Fund (Van Andel
Research Institute Project); VRD Limited
Tax Series 1997 RB (LOC-ABN AMRO Bank N.V.)
2.30%, 11/01/27(b)(c) A-1 -- 16,200 16,200,000
- ---------------------------------------------------------------------------------------
Michigan (State of) Strategic Fund (Washtenaw
Christian Project); VRD Limited Tax Series
2003 RB (LOC-ABN AMRO Bank N.V.)
2.29%, 11/01/33(b)(c) A-1 -- 1,500 1,500,000
- ---------------------------------------------------------------------------------------
Michigan (State of); Unlimited Tax Series
2004 A GO
3.50%, 09/30/05 SP-1+ MIG-1 40,000 40,283,819
- ---------------------------------------------------------------------------------------
Oakland (County of) Economic Development
Corp. (Rochester College Project); VRD
Limited Obligation Series 2001 RB (LOC-
JPMorgan Chase Bank)
2.30%, 08/01/21(b)(c) -- VMIG-1 6,900 6,900,000
- ---------------------------------------------------------------------------------------
Troy (City of) School District; Refunding
School Building & Site Unlimited Tax Series
2004 GO
3.00%, 05/01/05 AA Aa1 1,805 1,807,356
- ---------------------------------------------------------------------------------------
University of Michigan; VRD Hospital Series
1995 A RB
2.26%, 12/01/27(c) A-1+ VMIG-1 2,340 2,340,000
- ---------------------------------------------------------------------------------------
University of Michigan; VRD Medical Services
Plan Series 1995 A RB
2.26%, 12/01/27(c) A-1+ VMIG-1 3,160 3,160,000
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
<Caption>
MICHIGAN-(CONTINUED)
Wachovia MERLOTs (City of Detroit Sewage
Disposal System); VRD Series 2001 A112 RB
(Acquired 10/31/01; Cost $4,895,000)
2.35%, 07/01/32(c)(d)(e) -- VMIG-1 $ 4,895 $ 4,895,000
- ---------------------------------------------------------------------------------------
VRD Series 2003 B41 RB (Acquired 07/09/03;
Cost $6,755,000)
2.35%, 07/01/26(c)(d)(e) -- VMIG-1 6,755 6,755,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (City of Detroit Water
Supply System); VRD Series 2000 D RB
(Acquired 01/21/00; Cost $10,000,000)
2.35%, 07/01/29(c)(d)(e) -- VMIG-1 10,000 10,000,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (State of Michigan Hospital
Finance Authority); VRD Series 1997 X RB
(Acquired 12/12/03; Cost $15,000,000)
2.35%, 08/15/24(c)(d)(e) -- VMIG-1 15,000 15,000,000
=======================================================================================
164,291,784
=======================================================================================
MINNESOTA-3.59%
JPMorgan PUTTERs (State of Minnesota Public
Facilities Authority); VRD Drinking Water
Series 2002-319 COP (Acquired 07/31/03;
Cost $14,000,000)
2.30%, 03/01/21(c)(d)(e) A-1 -- 14,000 14,000,000
- ---------------------------------------------------------------------------------------
Minnesota (State of); Refunding Unlimited Tax
Series 2003 GO
2.00%, 08/01/05 AAA Aa1 2,240 2,244,075
- ---------------------------------------------------------------------------------------
Rochester (City of) Health Care Facilities
(Mayo Foundation); Commercial Paper Notes,
Adjustable Tender Series 1988 F
2.05%, 05/09/05 A-1+ -- 20,000 20,000,000
- ---------------------------------------------------------------------------------------
Series 2000 B
2.03%, 06/08/05 A-1+ -- 20,500 20,500,000
- ---------------------------------------------------------------------------------------
Series 2001 A
2.05%, 06/07/05 -- VMIG-1 15,000 15,000,000
- ---------------------------------------------------------------------------------------
Series 2001 B
2.05%, 06/07/05 -- VMIG-1 13,600 13,600,000
- ---------------------------------------------------------------------------------------
Series 2001 C
2.03%, 05/10/05 -- VMIG-1 17,600 17,600,000
- ---------------------------------------------------------------------------------------
St. Paul (City of) Housing & Redevelopment
Authority (Science Museum of Minnesota);
VRD Series 1997 A RB (LOC- U.S. Bank N.A.)
2.33%, 05/01/27(b)(c) -- VMIG-1 17,360 17,360,000
=======================================================================================
120,304,075
=======================================================================================
</Table>
F-12
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
MISSISSIPPI-2.17%
ABN AMRO Munitops Ctfs. Trust (State of
Mississippi Development Board-Jackson Water
& Sewer); Multi-State Non-AMT VRD Series
2002-22 Ctfs. (Acquired 09/10/03; Cost
$9,995,000)
2.33%, 09/01/10(c)(d)(e) -- VMIG-1 $ 9,995 $ 9,995,000
- ---------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (State of
Mississippi); VRD Unlimited Tax Series
2002-6018 A COP (Acquired 11/20/02; Cost
$3,200,000)
2.32%, 11/01/22(c)(d)(e) A-1+ -- 3,200 3,200,000
- ---------------------------------------------------------------------------------------
Mississippi (State of) Business Finance Corp.
(Jackson Medical Mall); VRD Series 2000 A
RB (LOC-JPMorgan Chase Bank)
2.30%, 11/01/18(b)(c) A-1 -- 5,300 5,300,000
- ---------------------------------------------------------------------------------------
Mississippi (State of) Business Finance Corp.
(Mississippi College Project); VRD Series
2003 RB (LOC-AmSouth Bank)
2.40%, 07/01/23(b)(c) -- VMIG-1 9,300 9,300,000
- ---------------------------------------------------------------------------------------
Perry (County of) (Leaf River Forest Products
Project); Refunding VRD Series 2002 PCR
(LOC- Citibank N.A.)
2.25%, 02/01/22(b)(c) A-1+ -- 36,500 36,500,000
- ---------------------------------------------------------------------------------------
University of Mississippi Educational
Building Corp. (Campus Improvements
Project); VRD Series 2000 RB
2.31%, 10/01/20(c)(f) -- VMIG-1 8,235 8,235,000
=======================================================================================
72,530,000
=======================================================================================
MISSOURI-1.15%
Missouri (State of) Development Finance Board
(Center of Creative Arts Project); Cultural
Facilities VRD Series 2004 RB (LOC-
National City Bank)
2.32%, 07/01/24(b)(c) -- VMIG-1 2,100 2,100,000
- ---------------------------------------------------------------------------------------
Missouri (State of) Health & Educational
Facilities Authority (Lutheran Senior
Services); Health Facilities VRD Series
2000 RB (LOC-U.S. Bank N.A.)
2.30%, 02/01/31(b)(c) -- VMIG-1 29,000 29,000,000
- ---------------------------------------------------------------------------------------
Missouri (State of) Health & Educational
Facilities Authority (Washington University
Project); Educational Facilities VRD Series
1985 B RB
2.33%, 09/01/10(c) A-1+ VMIG-1 1,100 1,100,000
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
<Caption>
MISSOURI-(CONTINUED)
Platte (County of) Industrial Development
Authority (Southern Platte County Athletic
Assoc. Inc.); Recreational Facilities VRD
Series 2005 A RB (LOC-Bank of America,
N.A.)
2.32%, 10/01/25(b)(c) -- VMIG-1 $ 2,140 $ 2,140,000
- ---------------------------------------------------------------------------------------
St. Louis (County of) Industrial Development
Authority (Friendship Village of South
County); VRD Series 2002 B IDR (LOC-ABN
AMRO Bank N.V.)
2.30%, 09/01/22(b)(c) A-1 -- 2,915 2,915,000
- ---------------------------------------------------------------------------------------
St. Louis (County of) Industrial Development
Authority (Whitfield School Inc.);
Educational Facilities Refunding VRD Series
2004 B IDR (LOC- U.S. Bank N.A.)
2.32%, 06/15/24(b)(c) A-1+ -- 1,400 1,400,000
=======================================================================================
38,655,000
=======================================================================================
MONTANA-0.34%
Montana (State of) Facility Finance Authority
(Mission Ridge Project); VRD Series 2002 RB
(LOC-ABN AMRO Bank N.V.)
2.31%, 08/01/27(b)(c)(j) -- -- 11,365 11,365,000
=======================================================================================
NEBRASKA-1.32%
Nebhelp Inc.; Multi-Mode VRD Series 1985 A RB
2.35%, 12/01/15(c)(f) A-1+ VMIG-1 5,995 5,995,000
- ---------------------------------------------------------------------------------------
VRD Series 1985 B RB
2.35%, 12/01/15(c)(f) A-1+ VMIG-1 3,590 3,590,000
- ---------------------------------------------------------------------------------------
VRD Series 1985 D RB
2.35%, 12/01/15(c)(f) A-1+ VMIG-1 5,865 5,865,000
- ---------------------------------------------------------------------------------------
VRD Series 1985 E RB
2.35%, 12/01/15(c)(f) A-1+ VMIG-1 28,635 28,635,000
=======================================================================================
44,085,000
=======================================================================================
NEVADA-0.48%
ABN AMRO Munitops Ctfs. Trust (County of
Washoe); Refunding VRD Limited Tax Series
2001-24 Single Asset Trust Ctfs. (Acquired
06/21/01; Cost $5,500,000)
2.33%, 07/01/09(c)(d)(e) -- VMIG-1 5,500 5,500,000
- ---------------------------------------------------------------------------------------
Carson (City of) (Tahoe Hospital Project);
Hospital VRD Series 2003 B RB (LOC- U.S.
Bank N.A.)
2.30%, 09/01/33(b)(c) A-1+ -- 10,500 10,500,000
=======================================================================================
16,000,000
=======================================================================================
</Table>
F-13
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
NEW HAMPSHIRE-0.69%
Morgan Stanley & Co. Inc. Trust Floater Ctfs.
(New Hampshire Higher Education & Health
Facilities Authority); Refunding VRD Series
2003-772 RB (Acquired 01/22/03; Cost
$5,475,000)
2.34%, 01/01/17(c)(d)(e) A-1 -- $ 5,475 $ 5,475,000
- ---------------------------------------------------------------------------------------
Morgan Stanley & Co. Inc. Trust Floater Ctfs.
(New Hampshire Higher Educational & Health
Facilities Authority); Refunding VRD Series
2003-866 RB (Acquired 10/23/03; Cost
$7,485,000)
2.34%, 08/15/21(c)(d)(e) A-1 -- 7,485 7,485,000
- ---------------------------------------------------------------------------------------
New Hampshire (State of) Higher Educational &
Health Facilities Authority (VHA-New
England Inc.); VRD Series 1985 G RB
2.30%, 12/01/25(c)(f) A-1+ -- 10,000 10,000,000
=======================================================================================
22,960,000
=======================================================================================
NEW JERSEY-0.13%
Salem (County of) Improvement Authority
(Friends Home at Woodstown Inc.); VRD
Series 2004 RB (LOC-Bank of America, N.A.)
2.30%, 04/01/34(b)(c) -- VMIG-1 4,440 4,440,000
=======================================================================================
NEW YORK-0.53%
ABN AMRO Munitops Ctfs. Trust (Triborough
Bridge & Tunnel Authority); Non-AMT VRD
Series 2002-31 Ctfs. (Acquired 03/24/04;
Cost $16,000,000)
2.30%, 11/15/10(c)(d)(e) -- VMIG-1 16,000 16,000,000
- ---------------------------------------------------------------------------------------
New York (State of) Dormitory Authority
(Rochester Institute of Technology); Series
1997 RB
6.00%, 08/15/05(f) AAA Aaa 1,815 1,841,296
=======================================================================================
17,841,296
=======================================================================================
NORTH CAROLINA-1.05%
North Carolina (State of) Capital Facilities
Finance Agency (Barton College);
Educational Facilities VRD Series 2004 RB
(LOC- Branch Banking & Trust Co.)
2.27%, 07/01/19(b)(c) -- VMIG-1 5,750 5,750,000
- ---------------------------------------------------------------------------------------
North Carolina (State of) Capital Facilities
Finance Agency (Elon College); VRD Series
2001 A RB (LOC-Bank of America, N.A.)
2.30%, 01/01/14(b)(c)(j) -- -- 8,115 8,115,000
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
<Caption>
NORTH CAROLINA-(CONTINUED)
North Carolina (State of) Capital Facilities
Finance Agency (Goodwill Community
Foundation Project); VRD Series 2002 RB
(LOC-Bank of America, N.A.)
2.30%, 04/01/22(b)(c)(j) -- -- $ 2,070 $ 2,070,000
- ---------------------------------------------------------------------------------------
North Carolina (State of) Capital Facilities
Finance Agency (Goodwill Industries of
Central North Carolina Inc.); VRD Series
2004 RB (LOC-Bank of America, N.A.)
2.30%, 12/01/24(b)(c)(j) -- -- 4,915 4,915,000
- ---------------------------------------------------------------------------------------
North Carolina (State of) Capital Facilities
Finance Agency (Thompson Children's Home);
Educational Facilities VRD Series 2000 RB
(LOC-Bank of America, N.A.)
2.30%, 12/01/20(b)(c)(j) -- -- 3,150 3,150,000
- ---------------------------------------------------------------------------------------
North Carolina (State of) Capital Facilities
Finance Agency (Wolfpack Club Project); VRD
Series 2002 RB (LOC-Bank of America, N.A.)
2.30%, 04/01/12(b)(c)(j) -- -- 6,800 6,800,000
- ---------------------------------------------------------------------------------------
North Carolina (State of) Medical Care
Commission; Refunding First Mortgage Health
Care Facilities VRD Series 2004 C RB (LOC-
SunTrust Bank)
2.27%, 11/01/27(b)(c) -- VMIG-1 3,500 3,500,000
- ---------------------------------------------------------------------------------------
University of North Carolina; VRD Series 2001
B RB
2.30%, 12/01/25(c) A-1+ VMIG-1 1,000 1,000,000
=======================================================================================
35,300,000
=======================================================================================
OHIO-3.66%
Akron, Bath & Copley (Townships of) Joint
Township Hospital District (Summa Health
Systems); VRD Series 2004 B RB (LOC-
JPMorgan Chase Bank)
2.29%, 11/01/34(b)(c) -- VMIG-1 5,000 5,000,000
- ---------------------------------------------------------------------------------------
Butler (County of) Health Care Facilities
(Lifesphere Project); Refunding &
Improvement VRD Series 2002 RB (LOC- U.S.
Bank N.A.)
2.30%, 05/01/27(b)(c) A-1+ -- 8,500 8,500,000
- ---------------------------------------------------------------------------------------
Cambridge (City of) Hospital Facilities
(Regional Medical Center Project);
Refunding & Improvement VRD Series 2001 RB
(LOC-National City Bank)
2.31%, 12/01/21(b)(c) -- VMIG-1 10,790 10,790,000
- ---------------------------------------------------------------------------------------
</Table>
F-14
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
OHIO-(CONTINUED)
Centerville (City of) (Bethany Lutheran
Village Project); Health Care VRD Series
1994 RB (LOC- National City Bank)
2.31%, 11/01/13(b)(c) -- VMIG-1 $ 2,905 $ 2,905,000
- ---------------------------------------------------------------------------------------
Cleveland Heights (City of); Limited Tax
Series 2004 BAN GO
2.00%, 08/18/05(p) -- -- 3,234 3,238,840
- ---------------------------------------------------------------------------------------
Cuyahoga (County of) Health Care Facilities
(Judson Retirement Community); Refunding
VRD Series 2000 RB (LOC-National City Bank)
2.31%, 11/15/19(b)(c) A-1 -- 700 700,000
- ---------------------------------------------------------------------------------------
Franklin (County of) Health Care Facilities
(First Community Village); Refunding &
Improvement VRD Series 2005 RB
(LOC-Sovereign Bank, KBC Bank N.V.)
2.33%, 03/01/36(b)(c) A-1+ -- 5,000 5,000,000
- ---------------------------------------------------------------------------------------
Lake (County of); Limited Tax Series 2004 BAN
GO
2.00%, 04/14/05(p) -- -- 5,250 5,251,154
- ---------------------------------------------------------------------------------------
Lorain (County of) (EMH Regional Medical
Center Project); Hospital Facilities VRD
Series 2001 RB (LOC-National City Bank)
2.34%, 05/01/26(b)(c)(p) -- -- 14,950 14,950,000
- ---------------------------------------------------------------------------------------
Mahoning (County of) Hospital Facilities
(Forum Health Obligation Group) VRD Series
1997 B RB
2.28%, 12/01/28(c)(f) A-1+ VMIG-1 19,100 19,100,000
- ---------------------------------------------------------------------------------------
VRD Series 2002 B RB (LOC- Fifth Third
Bank)
2.31%, 12/01/27(b)(c) -- VMIG-1 6,800 6,800,000
- ---------------------------------------------------------------------------------------
Marion (County of) (Pooled Lease Program);
Hospital Improvement VRD Series 1990 RB
(LOC- JPMorgan Chase Bank)
2.31%, 08/01/20(b)(c) A-1+ -- 1,325 1,325,000
- ---------------------------------------------------------------------------------------
Middleburg Heights (City of) (Southwest
General Health); Hospital Improvement
Series 1997 RB (LOC-Fifth Third Bank)
2.31%, 08/15/22(b)(c) A-1+ -- 5,405 5,405,000
- ---------------------------------------------------------------------------------------
Montgomery (County of) (St. Vincent DePaul
Society); Limited Obligation VRD Series
1996 RB (LOC-National City Bank)
2.31%, 12/01/10(b)(c) A-1 -- 1,735 1,735,000
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
<Caption>
OHIO-(CONTINUED)
Portage (County of) (Robinson Memorial
Hospital); Hospital VRD Series 2002 RB
(LOC-JPMorgan Chase Bank)
2.31%, 05/01/17(b)(c) -- VMIG-1 $ 6,255 $ 6,255,000
- ---------------------------------------------------------------------------------------
Reynoldsburg (City of) School District
(School Facilities Construction); Unlimited
Tax Series 2004 A BAN GO
2.75%, 06/24/05 -- MIG-1 5,900 5,910,765
- ---------------------------------------------------------------------------------------
Unlimited Tax Series 2005 BAN GO
3.00%, 06/24/05 -- MIG1 3,150 3,157,955
- ---------------------------------------------------------------------------------------
Solon (City of); Series 2004 BAN
2.75%, 12/01/05(p) -- -- 3,000 3,013,738
- ---------------------------------------------------------------------------------------
Toledo-Lucas (County of) Port Authority
(Franciscan Communities St. Mary of the
Woods Inc.); VRD Series 2004 C RB
(LOC-Sovereign Bank, Bank of Nova Scotia)
2.28%, 05/15/38(b)(c) A-1+ -- 10,700 10,700,000
- ---------------------------------------------------------------------------------------
Upper Arlington (City of); Street Improvement
Limited Tax Series 2005 BAN GO
3.00%, 01/10/06 -- MIG-1 1,802 1,813,655
- ---------------------------------------------------------------------------------------
Youngstown (City of) School District
(Classroom Facilities & School
Improvement); Unlimited Tax Series 2005 GO
3.00%, 12/01/05(f) AAA Aaa 1,000 1,005,299
=======================================================================================
122,556,406
=======================================================================================
OKLAHOMA-1.01%
Oklahoma (County of) Finance Authority
(Oxford Oaks Apartments Projects);
Refunding Multi-Family Housing VRD Series
2000 RB (CEP-Federal National Mortgage
Association)
2.30%, 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.)
2.38%, 06/01/11(b)(c) A-1+ -- 3,785 3,785,000
- ---------------------------------------------------------------------------------------
Tulsa (County of) Industrial Authority;
Capital Improvements Series 2003 B RB
4.00%, 05/15/05 AA- -- 2,500 2,507,347
=======================================================================================
33,987,347
=======================================================================================
</Table>
F-15
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
OREGON-0.75%
JPMorgan PUTTERs (City of Portland); Sewer
System VRD Series 2004 614 RB (Acquired
12/02/04; Cost $1,600,000)
2.32%, 10/01/12(c)(d)(e) -- VMIG-1 $ 1,600 $ 1,600,000
- ---------------------------------------------------------------------------------------
Oregon (State of) Health, Housing,
Educational & Cultural Facilities Authority
(Quatama Crossing LLC Housing Project); VRD
Series 1998 RB (LOC-U.S. Bank N.A.)
2.35%, 01/01/31(b)(c) -- Aa2 7,320 7,320,000
- ---------------------------------------------------------------------------------------
Oregon (State of) Housing & Community
Services Department Mortgage; Single Family
Mortgage Program Series 2004 O RN
2.00%, 06/01/05 -- MIG-1 2,300 2,300,000
- ---------------------------------------------------------------------------------------
Series 2004 O-2 RN
2.10%, 09/01/05 -- MIG-1 3,000 3,000,000
- ---------------------------------------------------------------------------------------
Oregon (State of); Series 2004 A TAN
3.00%, 06/30/05 SP-1+ MIG-1 6,500 6,519,573
- ---------------------------------------------------------------------------------------
Portland (City of) Housing Authority
(Riverwood Project); Refunding Multi-Family
Series 1995 RB
6.00%, 01/01/06(g)(i) AAA NRR 1,170 1,202,371
- ---------------------------------------------------------------------------------------
Portland (City of); Unlimited Tax Series 1995
B GO
5.75%, 06/01/05(g)(i) NRR Aaa 2,000 2,012,136
- ---------------------------------------------------------------------------------------
Salem (City of) Water & Sewer; Refunding
Series 2004 RB
3.00%, 05/01/05(f) AAA Aaa 1,175 1,176,383
=======================================================================================
25,130,463
=======================================================================================
PENNSYLVANIA-3.07%
ABN AMRO Munitops Ctfs. Trust (City of
Reading School District); Non-AMT VRD
Series 2003-20 Ctfs. (Acquired 03/02/05;
Cost $4,225,000)
2.32%, 07/15/11(c)(d)(e)(j) -- -- 4,225 4,225,000
- ---------------------------------------------------------------------------------------
ABN AMRO Munitops Ctfs. Trust (State of
Pennsylvania Public School Building
Authority); Non-AMT VRD Series 2001-30
Ctfs. (Acquired 10/31/02; Cost $5,000,000)
2.32%, 09/01/09(c)(d)(e) -- VMIG-1 5,000 5,000,000
- ---------------------------------------------------------------------------------------
Series 2003-24 Ctfs. (Acquired 03/08/04;
Cost $7,000,000)
2.32%, 06/01/11(c)(d)(e) -- VMIG-1 7,000 7,000,000
- ---------------------------------------------------------------------------------------
Allegheny (County of) Industrial Development
Authority (Carnegie Museums of Pittsburgh);
VRD Series 2002 IDR (LOC-Royal Bank of
Scotland)
2.40%, 08/01/32(b)(c) -- VMIG-1 2,000 2,000,000
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
<Caption>
PENNSYLVANIA-(CONTINUED)
Berks (County of) Industrial Development
Authority (Lutheran Services); Health Care
VRD Series 1998 A IDR
2.29%, 01/01/28(c)(f) -- VMIG-1 $ 9,995 $ 9,995,000
- ---------------------------------------------------------------------------------------
Chartiers Valley (Community of) Industrial &
Commercial Development Authority (Asbury
Villas Project); VRD Series 2000 B IDR
(LOC-ABN AMRO Bank N.V.)
2.31%, 12/01/30(b)(c) A-1 -- 3,000 3,000,000
- ---------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (Delaware Valley
Regional); VRD Series 2001-3801 COP
(Acquired 06/04/01; Cost $8,900,000)
2.31%, 08/01/28(c)(d)(e) A-1+ -- 8,900 8,900,000
- ---------------------------------------------------------------------------------------
Franklin (County of) Industrial Development
Authority (Chambersburg Hospital
Obligation); Health Care VRD Series 2000
IDR
2.38%, 12/01/24(c)(f) A-1 -- 3,385 3,385,000
- ---------------------------------------------------------------------------------------
Geisinger (City of) Authority (Geisinger
Health System); VRD Series 2002 RB
2.30%, 11/15/32(k) A-1+ VMIG-1 12,200 12,200,000
- ---------------------------------------------------------------------------------------
Lehigh (County of) Industrial Development
Authority (Allegheny Electric Coop. Inc.);
Refunding VRD Series 1984 PCR (LOC-
Rabobank Nederland)
2.05%, 06/01/14(b)(m) A-1+ -- 1,030 1,030,000
- ---------------------------------------------------------------------------------------
VRD Series 1984 PCR (LOC- Rabobank
Nederland)
2.05%, 10/01/14(b)(m) A-1+ -- 7,180 7,180,000
- ---------------------------------------------------------------------------------------
Montgomery (County of) Higher Education &
Health Authority (Holy Redeemer Health
System); Health Care Series 1997 A RB
5.50%, 10/01/05(f) AAA Aaa 2,240 2,276,734
- ---------------------------------------------------------------------------------------
Pennsylvania (State of) Higher Educational
Facilities Authority (Washington &
Jefferson Development); VRD Series 2005 A
RB (LOC-Sovereign Bank, Uncredito Italiano
S.p.A.)
2.25%, 11/01/36(b)(c) -- VMIG-1 3,000 3,000,000
- ---------------------------------------------------------------------------------------
Philadelphia (City of) Hospitals & Higher
Education of Facilities Authority
(Children's Hospital of Philadelphia
Project); Hospital VRD Series 2002 A RB
2.28%, 07/01/22(k) A-1+ VMIG-1 8,400 8,400,000
- ---------------------------------------------------------------------------------------
</Table>
F-16
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
PENNSYLVANIA-(CONTINUED)
Sayre (City of) Health Care Facilities
Authority (VHR of Pennsylvania Capital
Financing Project); VRD Series 1985 K RB
2.30%, 12/01/20(c)(f) A-1+ Aaa $19,800 $ 19,800,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (City of Scranton & County
of Lackawanna Health & Welfare Authority);
VRD Series 2002 A-18 RB (Acquired 03/22/02;
Cost $5,120,000)
2.35%, 03/01/15(c)(d)(e) -- VMIG-1 5,120 5,120,000
=======================================================================================
102,511,734
=======================================================================================
SOUTH CAROLINA-1.91%
Cherokee (County of) (Newark Electronics
Division); Industrial VRD Series 1985 RB
(LOC-ABN AMRO Bank N.V.)
2.30%, 12/01/15(b)(c) A-1 -- 6,500 6,500,000
- ---------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (State of South
Carolina Public Service Authority); VRD
Series 2000-4001 A COP (Acquired 09/08/00;
Cost $10,100,000)
2.32%, 01/01/22(c)(d)(e) A-1+ -- 10,100 10,100,000
- ---------------------------------------------------------------------------------------
Horry (County of) School District; Unlimited
Tax Series 2004 GO BAN
3.50%, 09/01/05 SP-1 MIG-1 10,000 10,070,209
- ---------------------------------------------------------------------------------------
Morgan Stanley & Co. Inc. Trust Floater Ctfs.
(State of South Carolina Transportation
Infrastructure Bank); Floating Rate Trust
Ctfs. VRD Series 2002-728 RB (Acquired
11/13/02; Cost $7,185,000)
2.32%, 10/01/22(c)(d)(e) -- VMIG-1 7,185 7,185,000
- ---------------------------------------------------------------------------------------
South Carolina (State of) Educational
Facilities Authority for Non-Profit
Institutions (Morris College Project); VRD
Series 1997 RB (LOC-Bank of America, N.A.)
(Acquired 07/30/02; Cost $2,100,000)
2.35%, 07/01/17(b)(c)(e) A-1+ -- 2,100 2,100,000
- ---------------------------------------------------------------------------------------
South Carolina (State of) Educational
Facilities Authority for Non-Profit
Institutions (The Allen University
Project); VRD Series 1998 RB (LOC-Bank of
America, N.A.) (Acquired 03/27/01; Cost
$2,525,000)
2.35%, 09/01/18(b)(c)(e) A-1+ -- 2,525 2,525,000
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
<Caption>
- ---------------------------------------------------------------------------------------
SOUTH CAROLINA-(CONTINUED)
South Carolina (State of) Jobs-Economic
Development Authority (Carolina Children's
Home Project); VRD Series 2003 RB
(LOC-Branch Banking & Trust Co.)
2.27%, 03/01/23(b)(c) -- VMIG-1 $ 3,365 $ 3,365,000
- ---------------------------------------------------------------------------------------
South Carolina (State of) Jobs-Economic
Development Authority (Carolina Piedmont
Foundation Project); VRD Series 2002 RB
(LOC-Bank of America, N.A.)
2.35%, 09/01/32(b)(c) -- -- 4,000 4,000,000
- ---------------------------------------------------------------------------------------
South Carolina (State of) Jobs-Economic
Development Authority (Catholic Diocese of
South Carolina Project); VRD Series 1998 RB
(LOC-Bank of America, N.A.) (Acquired
07/23/02; Cost $2,555,000)
2.35%, 09/01/18(b)(c)(e) A-1+ -- 2,555 2,555,000
- ---------------------------------------------------------------------------------------
South Carolina (State of) Jobs-Economic
Development Authority (Presbyterian Home of
South Carolina Project); VRD Series 2003 A
RB (LOC-Wachovia Bank, N.A.)
2.35%, 04/01/20(b)(c) A-1 -- 4,070 4,070,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (State of South Carolina
Public Service Authority); VRD Series 2000
L RB (Acquired 02/25/00; Cost $11,590,000)
2.35%, 01/01/22(c)(d)(e) -- VMIG-1 11,590 11,590,000
=======================================================================================
64,060,209
=======================================================================================
SOUTH DAKOTA-0.09%
South Dakota (State of) Health & Educational
Facilities Authority (University of Sioux
Falls); VRD Series 2001 RB (LOC-Wells Fargo
Bank N.A.)
2.28%, 10/01/16(b)(c) A-1+ -- 3,155 3,155,000
=======================================================================================
TENNESSEE-5.14%
Clarksville (City of) Public Building
Authority (Tennessee Municipal Bond Fund);
Pooled Financing VRD Series 1999 RB
(LOC-Bank of America, N.A.) (Acquired
03/15/05; Cost $27,205,000)
2.30%, 06/01/29(b)(c)(e) -- VMIG-1 27,205 27,205,000
- ---------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Chattanooga);
VRD Series 2000-4202 A COP (Acquired
10/10/00; Cost $14,040,000)
2.32%, 10/01/27(c)(d)(e) A-1+ -- 14,040 14,040,000
- ---------------------------------------------------------------------------------------
</Table>
F-17
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
TENNESSEE-(CONTINUED)
Jackson (City of) Energy Authority; Electric
Systems VRD Series 2003 B RB
2.30%, 11/01/26(c)(f) -- VMIG-1 $12,200 $ 12,200,000
- ---------------------------------------------------------------------------------------
Jackson (City of) Health & Educational
Facilities Board (Trinity Christian
Academy); Educational Facilities VRD Series
2002 RB (LOC-AmSouth Bank)
2.40%, 03/01/22(b)(c) -- VMIG-1 5,295 5,295,000
- ---------------------------------------------------------------------------------------
Knox (County of) Health Educational & Housing
Facility Board (Volunteer Student Housing
LLC Project); Student Housing VRD Series
2002 RB (LOC- Wachovia Bank, N.A.)
2.29%, 09/01/34(b)(c) -- VMIG-1 26,625 26,625,000
- ---------------------------------------------------------------------------------------
Morgan Stanley & Co. Inc. Trust Floater Ctfs.
(City of Nashville & County of Davidson);
Unlimited Tax Series 2003-871 GO (Acquired
11/17/03; Cost $4,995,000)
2.32%, 10/15/10(c)(d)(e) -- VMIG-1 4,995 4,995,000
- ---------------------------------------------------------------------------------------
Nashville (City of) & Davidson (County of)
Metropolitan Government Health &
Educational Facilities Board (Adventist
Health System); VRD Series 1997 A RB
(LOC-SunTrust Bank)
2.28%, 11/15/27(b)(c) A-1+ VMIG-1 2,325 2,325,000
- ---------------------------------------------------------------------------------------
Nashville (City of) & Davidson (County of)
Metropolitan Government Health &
Educational Facilities Board (Ensworth
School Project); VRD Series 2002 RB
(LOC-SunTrust Bank)
2.29%, 12/01/27(b)(c) -- VMIG-1 7,675 7,675,000
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
<Caption>
- ---------------------------------------------------------------------------------------
TENNESSEE-(CONTINUED)
Sevier (County of) Public Building Authority
(Local Government Public Improvement); VRD
Series 1995 A RB
2.31%, 06/01/15(c)(f) -- VMIG-1 $ 5,230 $ 5,230,000
- ---------------------------------------------------------------------------------------
VRD Series 1995 B-2 RB
2.31%, 06/01/06(c)(f) -- VMIG-1 1,200 1,200,000
- ---------------------------------------------------------------------------------------
VRD Series 1997 I A-1 RB
2.31%, 06/01/22(c)(f) -- VMIG-1 5,900 5,900,000
- ---------------------------------------------------------------------------------------
VRD Series 1997 II E-1 RB
2.31%, 06/01/21(c)(f) -- VMIG-1 2,100 2,100,000
- ---------------------------------------------------------------------------------------
VRD Series 1997 II E-3 RB
2.31%, 06/01/10(c)(f) -- VMIG-1 1,485 1,485,000
- ---------------------------------------------------------------------------------------
VRD Series 1997 II E-5 RB
2.31%, 06/01/17(c)(f) -- VMIG-1 1,320 1,320,000
- ---------------------------------------------------------------------------------------
VRD Series 1997 II F-1 RB
2.31%, 06/01/17(c)(f) -- VMIG-1 1,190 1,190,000
- ---------------------------------------------------------------------------------------
VRD Series 1997 II F-5 RB
2.31%, 06/01/27(c)(f) -- VMIG-1 2,265 2,265,000
- ---------------------------------------------------------------------------------------
VRD Series 1998 III A-1 RB
2.31%, 06/01/07(c)(f) -- VMIG-1 14,950 14,950,000
- ---------------------------------------------------------------------------------------
VRD Series 1998 III A-3 RB
2.31%, 06/01/19(c)(f) -- VMIG-1 1,425 1,425,000
- ---------------------------------------------------------------------------------------
VRD Series 1998 III A-4 RB
2.31%, 06/01/17(c)(f) -- VMIG-1 300 300,000
- ---------------------------------------------------------------------------------------
VRD Series 1998 III B-2 RB
2.31%, 06/01/19(c)(f) -- VMIG-1 5,650 5,650,000
- ---------------------------------------------------------------------------------------
VRD Series 1998 III C-3 RB
2.31%, 06/01/18(c)(f) -- VMIG-1 3,475 3,475,000
- ---------------------------------------------------------------------------------------
VRD Series 1998 III C-4 RB
2.31%, 06/01/20(c)(f) -- VMIG-1 10,000 10,000,000
- ---------------------------------------------------------------------------------------
VRD Series 1999 II A-1 RB
2.31%, 06/01/24(c)(f) -- VMIG-1 6,300 6,300,000
- ---------------------------------------------------------------------------------------
VRD Series 1999 II B-1 RB
2.31%, 06/01/25(c)(f) -- VMIG-1 1,700 1,700,000
- ---------------------------------------------------------------------------------------
Shelby (County of) Health, Educational &
Housing Facilities Board (St. Benedict
Auburndale School); VRD Series 2003 RB
(LOC-AmSouth Bank)
2.32%, 05/01/33(b)(c) -- VMIG-1 5,000 5,000,000
- ---------------------------------------------------------------------------------------
Williamson (County of) Industrial Development
Board (Currey Ingram Academy); Educational
Facilities VRD Series 2003 RB (LOC-SunTrust
Bank)
2.35%, 04/01/23(b)(c) -- VMIG-1 2,400 2,400,000
=======================================================================================
172,250,000
=======================================================================================
</Table>
F-18
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
TEXAS-12.01%
ABN AMRO Munitops Ctfs. Trust (City of
Leander Independent School District);
Unlimited Multi-State Non-AMT VRD Series
2002-16 Ctfs. (Acquired 08/20/03; Cost
$5,395,000)
2.33%, 08/15/10(c)(d)(e) -- VMIG-1 $ 5,395 $ 5,395,000
- ---------------------------------------------------------------------------------------
Amarillo (City of) Health Facilities Corp.
(Panhandle Pooled Health Care); VRD Series
1985 RB (LOC-BNP Paribas)
2.42%, 05/31/25(b)(c) -- VMIG-1 655 655,000
- ---------------------------------------------------------------------------------------
Austin (City of); Refunding Utility System
Series 1995 RB
5.60%, 05/15/05(g)(i) AAA Aaa 5,000 5,025,074
- ---------------------------------------------------------------------------------------
Bell (County of) Health Facilities
Development Corp. (Scott & White Memorial
Hospital); VRD Series 2000 B-1 RB
2.30%, 08/15/29(f)(k) A-1+ VMIG-1 32,300 32,300,000
- ---------------------------------------------------------------------------------------
Bexar (County of) Health Facilities
Development Corp. (Air Force Village); VRD
Series 2000 RB (LOC-Bank of America, N.A.)
2.28%, 04/11/05(b)(c) A-1+ -- 9,500 9,500,000
- ---------------------------------------------------------------------------------------
Bexar (County of) Health Facilities
Development Corp. (Warm Springs
Rehabilitation Foundation); Health Care
System VRD Series 1997 RB (LOC-JPMorgan
Chase Bank)
2.35%, 09/01/27(b)(c) -- VMIG-1 3,435 3,435,000
- ---------------------------------------------------------------------------------------
Brownsville (City of) Utility Systems;
Refunding VRD Sub Lien Series 2001 A RB
2.05%, 06/21/05(f)(h)(l) A-1+ VMIG-1 3,000 3,000,000
- ---------------------------------------------------------------------------------------
Crawford (City of) Education Facilities Corp.
Package (University Parking System
Project); Refunding VRD Series 2004 A RB
(LOC-BNP Paribas)
2.38%, 05/01/35(b)(c) -- VMIG-1 5,000 5,000,000
- ---------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Houston
Airport); VRD Series 2000-4307 COP
(Acquired 11/15/00; Cost $15,750,000)
2.32%, 07/01/28(c)(d)(e) A-1+ -- 15,750 15,750,000
- ---------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Houston Water
& Sewer); VRD Series 1997-4305 A COP
(Acquired 04/27/99; Cost $14,005,000)
2.32%, 12/01/27(c)(d)(e) A-1+ -- 14,005 14,005,000
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
<Caption>
TEXAS-(CONTINUED)
Eagle Tax Exempt Trust (City of Houston Water
& Sewer); VRD Series 2002-6019 A COP
(Acquired 11/13/02; Cost $8,910,000)
2.32%, 12/01/30(c)(d)(e) A-1+ -- $ 8,910 $ 8,910,000
- ---------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (Harris County Toll
Road); VRD Series 2001-4305 COP (Acquired
05/08/01; Cost $7,390,000)
2.32%, 08/01/14(c)(d)(e) A-1+ -- 7,390 7,390,000
- ---------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (Harris County Toll
Road); VRD Series 2002-6012 A COP (Acquired
11/20/02; Cost $1,580,000)
2.32%, 08/15/30(c)(d)(e) A-1+ -- 1,580 1,580,000
- ---------------------------------------------------------------------------------------
Garland (City of) Industrial Development
Authority Inc. (Carroll Co. Project); VRD
Series 1984 IDR (LOC-Wells Fargo Bank N.A.)
(Acquired 09/03/03; Cost $2,300,000)
2.35%, 12/01/14(b)(c)(e) -- Aaa 2,300 2,300,000
- ---------------------------------------------------------------------------------------
Grand Prairie (City of) Housing Finance Corp.
(Lincoln Property Co.); Refunding
Multi-Family Housing VRD Series 1993 RB
(CEP-General Electric Corp.)
2.30%, 06/01/10(c) A-1+ -- 2,700 2,700,000
- ---------------------------------------------------------------------------------------
Grapevine (City of) Industrial Development
Corp. (Southern Air Transport); Refunding
Airport Series 1993 RB (LOC-JPMorgan Chase
Bank)
2.30%, 03/01/10(b)(c) A-1+ -- 2,300 2,300,000
- ---------------------------------------------------------------------------------------
Harris (County of) Cultural Education
Facilities Finance Corp. (Houston Music
Hall Foundation); VRD Series 1999 RB (LOC-
JPMorgan Chase Bank)
2.35%, 06/01/29(b)(c) A-1+ -- 700 700,000
- ---------------------------------------------------------------------------------------
Harris (County of) Health Facilities
Development Corp. (Texas Children's
Hospital Project); Refunding Hospital
Series 1995 RB
6.00%, 10/01/05(o) AAA Aaa 1,250 1,273,825
- ---------------------------------------------------------------------------------------
Harris (County of) Health Facilities
Development Corp. (Methodist Hospital);
Refunding VRD Series 2005 B RB
2.07%, 05/09/05(h)(l) A-1+ -- 11,800 11,800,000
- ---------------------------------------------------------------------------------------
Harris (County of) Hospital District; Sub.
Lien Commercial Paper Series A RN (LOC-Bank
of America, N.A.)
2.11%, 05/11/05(b) A-1+ -- 9,451 9,451,000
- ---------------------------------------------------------------------------------------
</Table>
F-19
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
TEXAS-(CONTINUED)
Harris (County of) Houston Texas Sports
Authority (Rodeo); Jr. Lein VRD Series 2001
C RB
2.30%, 11/15/30(c)(f) A-1+ VMIG-1 $ 6,300 $ 6,300,000
- ---------------------------------------------------------------------------------------
Hays (County of) Memorial Health Facilities
Development Corp. (Central Texas Medical
Center Project); Hospital VRD Series 1990 B
RB (LOC-SunTrust Bank)
2.30%, 11/15/14(b)(c) A-1+ -- 10,200 10,200,000
- ---------------------------------------------------------------------------------------
Hockley (County of) Industrial Development
Corp. (AMOCO Project); VRD Series 1985 PCR
1.80%, 05/01/05(g)(h) A-1+ P-1 10,000 10,000,000
- ---------------------------------------------------------------------------------------
Hockley (County of) Industrial Development
Corp. (AMOCO Project-Standard Oil Co.); VRD
Series 1983 PCR
2.10%, 09/01/05(g)(h) A-1+ Aa1 12,775 12,775,000
- ---------------------------------------------------------------------------------------
Houston (City of) Higher Education Finance
Corp. (Houston Baptist University); Higher
Education Refunding VRD Series 2000 RB
(LOC-JPMorgan Chase Bank)
2.35%, 07/01/20(b)(c)(j) -- -- 3,665 3,665,000
- ---------------------------------------------------------------------------------------
Houston (City of) Independent School District
(Schoolhouse); Limited Tax Series 2004 GO
(CEP-Texas Permanent School Fund)
1.62%, 06/09/05(g)(l) A-1+ VMIG-1 15,000 15,000,000
- ---------------------------------------------------------------------------------------
Houston (City of); Commercial Paper Notes
Series 2003 A GO
1.95%, 04/07/05 A-1+ P-1 26,900 26,900,000
- ---------------------------------------------------------------------------------------
Series 2003 A GO
1.95%, 04/12/05 A-1+ P-1 24,000 24,000,000
- ---------------------------------------------------------------------------------------
Humble (City of) Independent School District;
School Building VRD Limited Tax Series 2003
GO (CEP-Texas Permanent School Fund)
2.28%, 06/15/23(c) A-1+ VMIG-1 13,000 13,000,000
- ---------------------------------------------------------------------------------------
JPMorgan PUTTERs (City of Boerne Independent
School District); VRD Series 2005 752 GO
(Acquired 03/09/05; Cost $2,640,000)
2.32%, 02/01/11(c)(d)(e) A-1+ -- 2,640 2,640,000
- ---------------------------------------------------------------------------------------
JPMorgan PUTTERs (County of Bexar); Limited
Tax VRD Series 2004 530 GO (Acquired
10/28/04; Cost $4,645,000)
2.32%, 06/15/12(c)(d)(e) -- VMIG-1 4,645 4,645,000
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
<Caption>
- ---------------------------------------------------------------------------------------
TEXAS-(CONTINUED)
Merrill Lynch P-Floats (City of Brazosport
Independent School District); Refunding
Unlimited Tax VRD Series 2003 PT-1690 GO
(Acquired 02/20/03; Cost $4,898,000)
2.32%, 08/15/10(c)(d)(e) -- VMIG-1 $ 4,898 $ 4,898,000
- ---------------------------------------------------------------------------------------
Merrill Lynch P-Floats (Harris County
Hospital District); VRD Series 2002 PT-665
RB (Acquired 10/02/02; Cost $5,935,000)
2.32%, 08/15/08(c)(d)(e) A-1+ -- 5,935 5,935,000
- ---------------------------------------------------------------------------------------
Northside Independent School District;
Refunding Unlimited Tax VRD Series 2003 B
GO (CEP- Texas Permanent School Fund)
1.75%, 08/01/05(g)(l) A-1+ VMIG-1 1,870 1,870,000
- ---------------------------------------------------------------------------------------
San Antonio (City of) Water & Sewer System;
Commercial Paper Notes Series 2001 A GO
(Acquired 01/26/05; Cost $29,900,000)
2.00%, 05/17/05(e) A-1+ P-1 29,900 29,900,000
- ---------------------------------------------------------------------------------------
Sherman (City of) Higher Education Finance
Corp. (Austin College Project); Higher
Education VRD Series 1997 RB (LOC-Bank of
America, N.A.)
2.35%, 01/01/18(b)(c) A-1+ -- 12,800 12,800,000
- ---------------------------------------------------------------------------------------
Texas (State of); Series 2004 TRAN
3.00%, 08/31/05 SP-1+ MIG-1 40,000 40,225,139
- ---------------------------------------------------------------------------------------
University of Texas Board of Regents (Revenue
Financing System); Commercial Paper Notes
Series A
2.05%, 05/17/05 A-1+ P-1 7,650 7,650,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (City of Austin); VRD Series
2000 A26 RB (Acquired 11/09/04; Cost
$9,230,000)
2.11%, 11/10/05(d)(e)(g)(l)(n) -- VMIG-1 9,230 9,230,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (Harris County Toll Road);
VRD Series 2003 B16 RB (Acquired 02/19/03;
Cost $3,015,000)
2.35%, 08/15/25(c)(d)(e) -- VMIG-1 3,015 3,015,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (Jefferson County Health
Facilities Development Corp.); VRD Series
2001 A83 RB (Acquired 11/18/03; Cost
$3,565,000)
2.11%, 11/16/05(d)(e)(g)(l)(n) A-1 -- 3,565 3,565,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (Southeast Texas Housing
Finance Corp.); VRD Series 2001 A18 RB
(Acquired 11/18/03; Cost $3,430,000)
2.11%, 11/16/05(d)(e)(g)(l)(n) A-1 -- 3,430 3,430,000
- ---------------------------------------------------------------------------------------
</Table>
F-20
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
TEXAS-(CONTINUED)
Wachovia MERLOTs (University of Texas);
Refunding VRD Series 2003 B14 RB (Acquired
01/29/03; Cost $8,000,000)
2.35%, 08/15/22(c)(d)(e) -- VMIG-1 $ 8,000 $ 8,000,000
=======================================================================================
402,113,038
=======================================================================================
UTAH-2.13%
Merrill Lynch P-Floats (City of Murray
Hospital); VRD Series 2002 PA-1066 RB
(Acquired 10/02/02; Cost $5,995,000)
2.32%, 05/15/22(c)(d)(e) A-1 -- 5,995 5,995,000
- ---------------------------------------------------------------------------------------
Salt Lake (City of) (Gateway Project);
Special Assessment VRD Series 2003
(LOC-Citibank N.A.)
2.30%, 12/01/23(b)(c) A-1+ -- 7,200 7,200,000
- ---------------------------------------------------------------------------------------
Sanpete (County of) School Facilities
(Wasatch Academy); VRD Series 2003 RB (LOC-
U.S. Bank N.A.)
2.33%, 08/01/28(b)(c) A-1+ -- 900 900,000
- ---------------------------------------------------------------------------------------
St. George (City of) (OK Foundation
Projects); Sr. Housing VRD Series 2004 A RB
(CEP-Federal National Mortgage Association)
2.28%, 12/15/29(c) A-1+ -- 30,640 30,640,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (Intermountain Power
Agency); Power Supply VRD Series 2002 A59
RB (Acquired 10/23/02; Cost $6,960,000)
2.35%, 07/01/10(c)(d)(e) -- VMIG-1 6,960 6,960,000
- ---------------------------------------------------------------------------------------
Weber (County of) (IHC Health Service); VRD
Series 2000 C RB
2.30%, 02/15/35(k) A-1+ VMIG-1 10,000 10,000,000
- ---------------------------------------------------------------------------------------
West Jordan (City of) (Broadmoor Village
Apartments LLC Project); Refunding
Multi-Family Housing VRD Series 2004 RB
(CEP- Federal Home Loan Mortgage Corp.)
2.30%, 12/01/34(c) A-1+ -- 9,675 9,675,000
=======================================================================================
71,370,000
=======================================================================================
VERMONT-0.08%
Vermont (State of) Student Assistance Corp.;
Student Loan VRD Series 1985 RB (LOC-State
Street Bank & Trust Co.)
2.05%, 01/01/08(b)(m) -- VMIG-1 2,640 2,640,000
=======================================================================================
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
<Caption>
- ---------------------------------------------------------------------------------------
VIRGINIA-1.05%
Henrico (County of) Economic Development
Authority (Westminster Canterbury);
Residential Care Facilities VRD Series 2003
B RB (LOC-KBC Bank N.V.)
2.29%, 07/01/08(b)(c) -- VMIG-1 $17,100 $ 17,100,000
- ---------------------------------------------------------------------------------------
Lynchburg (City of) Industrial Development
Authority (Lynchburg College); VRD Series
2004 RB (LOC-SunTrust Bank)
2.29%, 12/01/34(b)(c) -- VMIG-1 6,275 6,275,000
- ---------------------------------------------------------------------------------------
Newport News (City of) Redevelopment &
Housing Authority (Springhouse Apartments
Project); Multi-Family Housing VRD Series
2001 RB (CEP-Federal Home Loan Mortgage
Corp.)
2.30%, 09/01/26(c) A-1+ -- 2,000 2,000,000
- ---------------------------------------------------------------------------------------
Norfolk (City of) Redevelopment & Housing
Authority (E2F Student Housing LLC
Project); VRD Series 2005 RB (LOC-Bank of
America, N.A.)
2.30%, 07/01/34(b)(c) -- VMIG-1 7,000 7,000,000
- ---------------------------------------------------------------------------------------
Rockingham (County of) Industrial Development
Authority (Sunnyside Presbyterian Home);
Residential Care Facilities VRD Series 2003
RB (LOC-Branch Banking & Trust Co.)
2.27%, 12/01/33(b)(c) A-1 -- 750 750,000
- ---------------------------------------------------------------------------------------
Suffolk (City of) Redevelopment & Housing
Authority (Oak Springs Apartments);
Multi-Family Housing VRD Series 1999 RB
(CEP-Federal Home Loan Mortgage Corp.)
2.30%, 04/11/05(c) -- VMIG-1 1,900 1,900,000
=======================================================================================
35,025,000
=======================================================================================
WASHINGTON-6.72%
ABN AMRO Munitops Ctfs. Trust (City of
Seattle Municipal Light & Power);
Multi-State Non-AMT VRD Series 2002-12
Ctfs. (Acquired 05/25/04; Cost $9,755,000)
2.33%, 03/01/09(c)(d)(e) -- VMIG-1 9,755 9,755,000
- ---------------------------------------------------------------------------------------
ABN AMRO Munitops Ctfs. Trust (City of
Seattle); Multi-State Non-AMT VRD Limited
Tax Series 2003-7 GO Ctfs. (Acquired
05/13/03; Cost $10,685,000)
2.33%, 07/01/10(c)(d)(e)(j) -- -- 10,685 10,685,000
- ---------------------------------------------------------------------------------------
</Table>
F-21
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
WASHINGTON-(CONTINUED)
ABN AMRO Munitops Ctfs. Trust (King County);
Multi-State Non-AMT VRD Limited Tax Series
2001-1 GO Ctfs. (Acquired 01/04/01; Cost
$10,000,000)
2.33%, 07/01/06(c)(d)(e) -- VMIG-1 $10,000 $ 10,000,000
- ---------------------------------------------------------------------------------------
Bremerton (City of) (Kitsap Regional
Conference Center); VRD Series 2003 RB
(LOC-Bank of America, N.A.)
2.35%, 12/01/28(b)(c)(j) -- -- 2,565 2,565,000
- ---------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (State of Washington
Public Power Supply Systems Project No. 2);
VRD Series 1996-4703 A COP (Acquired
05/02/01; Cost $5,870,000)
2.32%, 07/01/11(c)(d)(e) A-1+ -- 5,870 5,870,000
- ---------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (State of Washington);
VRD Series 1998-4701 A COP (Acquired
07/20/00; Cost $14,400,000)
2.32%, 05/01/18(c)(d)(e) A-1+ -- 14,400 14,400,000
- ---------------------------------------------------------------------------------------
Everett (City of); Limited Tax VRD Series
2001 GO (LOC-Bank of America, N.A.)
2.35%, 12/01/21(b)(c)(j) -- -- 2,600 2,600,000
- ---------------------------------------------------------------------------------------
Everett (City of) Public Facilities District;
Commercial Paper Notes (LOC-Bank of
America, N.A.)
2.08%, 06/09/05(b) A-1+ -- 34,700 34,700,000
- ---------------------------------------------------------------------------------------
Everett (City of) Public Facilities District;
Commercial Paper TRAN (LOC-Bank of America,
N.A.)
2.08%, 06/09/05(b) A-1+ P-1 16,800 16,800,000
- ---------------------------------------------------------------------------------------
Issaquah (City of) Community Properties; VRD
Special Revenue Series 2001 A RB (LOC-Bank
of America, N.A.)
2.30%, 02/15/21(b)(c) -- VMIG-1 10,150 10,150,000
- ---------------------------------------------------------------------------------------
JPMorgan PUTTERs (State of Washington);
Unlimited Tax VRD Series 2004 593 GO
(Acquired 11/18/04; Cost $1,500,000)
2.32%, 07/01/12(c)(d)(e) -- VMIG-1 1,500 1,500,000
- ---------------------------------------------------------------------------------------
King (County of) Economic Enterprise Corp.
(Puget Sound Blood Center Project); VRD
Series 1998 RB (LOC-U.S. Bank N.A.)
2.35%, 04/01/23(b)(c) -- VMIG-1 3,700 3,700,000
- ---------------------------------------------------------------------------------------
King (County of) Water & Sewer; VRD Jr. Lien
Series 2001 B RB(LOC-Landesbank Hessen-
Thuringen Girozentrale)
2.27%, 01/01/32(b)(c) A-1+ VMIG-1 2,000 2,000,000
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
<Caption>
- ---------------------------------------------------------------------------------------
WASHINGTON-(CONTINUED)
Lake Tapps Parkway Properties; Special
Revenue VRD Series 1999 A RB (LOC- U.S.
Bank N.A.)
2.32%, 12/01/19(b)(c) -- VMIG-1 $11,800 $ 11,800,000
- ---------------------------------------------------------------------------------------
Lake Tapps Parkway Properties; Special
Revenue VRD Series 1999 B RB (LOC- U.S.
Bank N.A.)
2.32%, 12/01/19(b)(c) -- VMIG-1 800 800,000
- ---------------------------------------------------------------------------------------
Morgan Stanley & Co. Inc. Trust Floater Ctfs.
(Port of Seattle); VRD Series 2002-739D RB
(Acquired 07/21/04; Cost $5,000,000)
2.32%, 09/01/20(c)(d)(e) A-1 -- 5,000 5,000,000
- ---------------------------------------------------------------------------------------
Pierce (County of) Economic Development Corp.
(Weyerhaeuser Real Estate); Special Revenue
VRD Series 1997 RB (LOC-Bank of America,
N.A.)
2.35%, 01/01/27(b)(c) A-1+ VMIG-1 12,705 12,705,000
- ---------------------------------------------------------------------------------------
Seattle (City of) Housing Authority (Bayview
Manor Project); Low Income Housing
Assistance VRD Series 1994 B RB (LOC- U.S.
Bank N.A.)
2.35%, 05/01/19(b)(c) A-1+ -- 2,340 2,340,000
- ---------------------------------------------------------------------------------------
Seattle (City of) Housing Authority (Pioneer
Human Services Project); Refunding VRD
Series 1995 RB (LOC-U.S. Bank N.A.)
2.35%, 12/01/15(b)(c) A-1+ -- 2,295 2,295,000
- ---------------------------------------------------------------------------------------
Seattle (Port of) Industrial Development
Corp. (Sysco Food Services Project);
Refunding VRD Series 1994 IDR
2.32%, 11/01/25(c) A-1+ VMIG-1 6,208 6,208,000
- ---------------------------------------------------------------------------------------
Snohomish (County of) Housing Authority (Ebey
Arms Centerhouse Project); Refunding
Housing VRD Series 2003 RB (LOC-Bank of
America, N.A.)
2.35%, 12/01/34(b)(c)(j) -- -- 6,245 6,245,000
- ---------------------------------------------------------------------------------------
Vancouver (City of) Housing Authority
(Village Park Apartments Project); Housing
VRD Series 2000 RB (LOC-U.S. Bank N.A.)
2.32%, 11/02/05(b)(c) A-1+ -- 1,340 1,340,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (Central Puget Sound
Regional Transit Authority); Sales Tax &
Motor VRD Series 2001 A46 RB (Acquired
11/12/03; Cost $6,270,000)
2.11%, 11/10/05(d)(e)(g)(l)(n) -- VMIG-1 6,270 6,270,000
- ---------------------------------------------------------------------------------------
</Table>
F-22
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
WASHINGTON-(CONTINUED)
Washington (State of) Economic Development
Finance Authority (Seadrunar Recycling LLC
Project); Economic Development VRD Series
2000 E RB (LOC- U.S. Bank N.A.)
2.35%, 08/01/25(b)(c) A-1+ -- $ 2,735 $ 2,735,000
- ---------------------------------------------------------------------------------------
Washington (State of) Health Care Facilities
Authority (National Healthcare Research &
Education Finance Corp.); Lease VRD Series
2000 RB (LOC-BNP Paribas)
2.30%, 01/01/32(b)(c) -- VMIG-1 6,800 6,800,000
- ---------------------------------------------------------------------------------------
Washington (State of) Higher Education
Facilities Authority (Cornish College Arts
Project); VRD Series 2003 A RB (LOC- Bank
of America, N.A.)
2.35%, 12/01/33(b)(c) -- VMIG-1 5,000 5,000,000
- ---------------------------------------------------------------------------------------
Washington (State of) Housing Finance
Commission (Hearthstone Project);
Non-Profit Revenue Refunding VRD Series
2004 RB (LOC-Bank of America, N.A.)
2.30%, 12/01/29(b)(c) A-1+ -- 12,000 12,000,000
- ---------------------------------------------------------------------------------------
Washington (State of) Housing Finance
Commission (Nikkei Concerns Project);
Non-Profit Housing VRD Series 1994 RB
(LOC-U.S. Bank N.A.)
2.35%, 10/01/19(b)(c) A-1+ -- 3,605 3,605,000
- ---------------------------------------------------------------------------------------
Washington (State of) Housing Finance
Commission (The Evergreen School Project);
Non-Profit VRD Series 2002 RB (LOC-Wells
Fargo Bank N.A.)
2.28%, 07/01/28(b)(c) A-1+ -- 2,660 2,660,000
- ---------------------------------------------------------------------------------------
Washington (State of) Housing Finance
Commission (University Preparatory Academy
Project); Non-Profit VRD Series 2000 RB
(LOC-Bank of America, N.A.)
2.35%, 07/01/30(b)(c) -- VMIG-1 1,250 1,250,000
- ---------------------------------------------------------------------------------------
Washington (State of) Housing Finance
Commission (YMCA of Columbia-Willamette);
Non-Profit Revenue VRD Series 1999 RB
(LOC-Wells Fargo Bank N.A.)
2.33%, 08/01/24(b)(c) A-1+ -- 2,300 2,300,000
- ---------------------------------------------------------------------------------------
Washington (State of) Public Power Supply
System (Nuclear Project No. 3); Refunding
Series 1993 C RB
5.00%, 07/01/05(f) AAA Aaa 3,850 3,878,185
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
<Caption>
- ---------------------------------------------------------------------------------------
WASHINGTON-(CONTINUED)
Washington (State of); Unlimited Tax Series
1995C, AT-8 & R-95B GO
5.90%, 07/01/05(g)(i) NRR NRR $ 5,000 $ 5,047,805
=======================================================================================
225,003,990
=======================================================================================
WEST VIRGINIA-0.19%
Monongalia (County of) Building Community
Hospital (Monongalia General Hospital);
Refunding VRD Series 2002 A RB
(LOC-JPMorgan Chase Bank)
2.29%, 07/01/17(b)(c) A-1+ VMIG-1 645 645,000
- ---------------------------------------------------------------------------------------
West Virginia (State of) Hospital Finance
Authority (VHA Mid-Atlantic/Cap); Hospital
VRD Series 1985 F RB
2.30%, 12/01/25(c)(f) A-1+ -- 5,700 5,700,000
=======================================================================================
6,345,000
=======================================================================================
WISCONSIN-3.39%
Kimberly (City of) (Fox Cities YMCA Project);
VRD Series 2002 RB (LOC-M&I Marshall &
Ilsley Bank)
2.35%, 04/01/32(b)(c) -- VMIG-1 1,940 1,940,000
- ---------------------------------------------------------------------------------------
Menomonee Falls (City of); Refunding Sewer
System Series 2004 RB
2.00%, 05/01/05(f) -- Aaa 1,425 1,425,652
- ---------------------------------------------------------------------------------------
Waukesha (County of); Promissory Notes
Unlimited Tax Series 2004 GO
2.00%, 04/01/05 -- Aaa 1,500 1,500,000
- ---------------------------------------------------------------------------------------
West Allis (City of) (State Fair Park
Exposition Center Inc.); VRD Series 2001 RB
(LOC- U.S. Bank N.A.)
2.35%, 08/01/28(b)(c) -- VMIG-1 2,300 2,300,000
- ---------------------------------------------------------------------------------------
Wind Point (City of) (Johnson Foundation
Project); VRD Series 2000 RB (LOC-Bank of
Montreal)
2.33%, 09/01/35(b)(c) A-1+ -- 4,665 4,665,000
- ---------------------------------------------------------------------------------------
Wisconsin (State of) Health & Educational
Facilities Authority (Eastcastle Place
Inc.); VRD Series 2004 C RB (LOC-ABN AMRO
Bank N.V.)
2.30%, 12/01/34(b)(c) A-1 -- 7,000 7,000,000
- ---------------------------------------------------------------------------------------
Wisconsin (State of) Health & Educational
Facilities Authority (Mequon Jewish
Project); VRD Series 2003 RB (LOC-JPMorgan
Chase Bank)
2.32%, 07/01/28(b)(c) -- VMIG-1 2,150 2,150,000
- ---------------------------------------------------------------------------------------
</Table>
F-23
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
WISCONSIN-(CONTINUED)
Wisconsin (State of) Health & Educational
Facilities Authority (Mercy Health System);
Pooled Loan VRD Series 2003 I RB (LOC-M&I
Marshall & Ilsley Bank)
2.33%, 06/01/23(b)(c) -- VMIG-1 $ 9,570 $ 9,570,000
- ---------------------------------------------------------------------------------------
Wisconsin (State of) Health & Educational
Facilities Authority (Mercy Health System);
VRD Series 2003 C RB (LOC-M&I Marshall &
Ilsley Bank)
2.31%, 08/15/23(b)(c) -- VMIG-1 7,300 7,300,000
- ---------------------------------------------------------------------------------------
Wisconsin (State of) Health & Educational
Facilities Authority (Sinai Samaritan
Medical Center Inc.); VRD Series 1994 A RB
(LOC-M&I Marshall & Ilsley Bank)
2.31%, 09/01/19(b)(c) A-1 -- 5,649 5,649,000
- ---------------------------------------------------------------------------------------
Wisconsin (State of) Health & Educational
Facilities Authority (St. John's Home);
Pooled Loan VRD Series 2003 J RB (LOC-M&I
Marshall & Ilsley Bank)
2.33%, 07/01/23(b)(c) -- VMIG-1 4,250 4,250,000
- ---------------------------------------------------------------------------------------
Wisconsin (State of) Health & Educational
Facilities Authority (St. Luke's Medical
Center); VRD Series 1987 RB (LOC-KBC Bank
N.V.) (Acquired 06/01/04; Cost $28,600,000)
2.30%, 12/01/17(b)(c)(e) A-1 -- 28,600 28,600,000
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
<Caption>
- ---------------------------------------------------------------------------------------
WISCONSIN-(CONTINUED)
Wisconsin (State of) Health & Educational
Facilities Authority (St. Mary's School);
VRD Series 2004 RB (LOC-M&I Marshall &
Ilsley Bank)
2.31%, 08/01/19(b)(c) A-1 -- $ 2,695 $ 2,695,000
- ---------------------------------------------------------------------------------------
Wisconsin (State of) Petroleum Inspection
Fee; Series 2000 A RB
5.75%, 07/01/05(g)(i) AA- Aa3 8,000 8,235,885
- ---------------------------------------------------------------------------------------
Wisconsin (State of) School Districts Cash
Flow Management Program; Series 2004 A-1
COP
3.00%, 09/20/05(p) -- -- 8,000 8,048,916
- ---------------------------------------------------------------------------------------
Wisconsin (State of) School Districts Cash
Flow Management Program; Series 2004 B-1
COP
3.50%, 11/01/05 -- MIG-1 15,000 15,116,273
- ---------------------------------------------------------------------------------------
Wisconsin (State of); Unlimited Tax Series
1995 A GO
6.10%, 05/01/05(g)(i) NRR Aaa 3,000 3,012,436
=======================================================================================
113,458,162
=======================================================================================
TOTAL INVESTMENTS-99.22% (Cost
$3,322,342,840)(q) 3,322,342,840
=======================================================================================
OTHER ASSETS LESS LIABILITIES-0.78% 26,258,985
=======================================================================================
NET ASSETS-100.00% $3,348,601,825
_______________________________________________________________________________________
=======================================================================================
</Table>
Investment Abbreviations:
<Table>
ACES - Automatically Convertible Extendable Security
AMT - Alternative Minimum Tax
BAN - Bond Anticipation Note
CEP - Credit Enhancement Provider
COP - Certificate of Participation
Ctfs. - Certificates
GO - General Obligation Bonds
IDR - Industrial Development Revenue Bonds
Jr. - Junior
LOC - Letter of Credit
MERLOT - Municipal Exempt Receipts Liquidity Optional Tender
NRR - Not Re-Rated
P-Floats - Puttable Floating Option Tax-Exempt Receipt
PCR - Pollution Control Revenue Bonds
PUTTERs - Putable Tax Exempt Receipts
RAN - Revenue Anticipation Notes
RB - Revenue Bonds
RN - Revenue Notes
Sr. - Senior
Sub. - Subordinated
TAN - Tax Anticipation Notes
TRAN - Tax and Revenue Anticipation Notes
VRD - Variable Rate Demand
Wts. - Warrants
</Table>
F-24
Notes to Schedule of Investments:
(a) Ratings assigned by Standard & Poor's Corporation ("S&P") and Moody's
Investors Service, Inc. ("Moody's"), except as indicated in note (j) and (p)
below. NRR indicates a security that is not re-rated subsequent to funding
of an escrow fund (consisting of U.S. Treasury obligations held by a bank
custodian); this funding is pursuant to an advance refunding of this
security. Ratings are not covered by the Report of Independent Registered
Public Accounting Firm.
(b) Principal and interest payments are fully enhanced by a letter of credit
from the bank listed or a predecessor bank, branch or subsidiary.
(c) Demand security; payable upon demand by the Fund at specified time intervals
no greater than thirteen months. Interest rate is redetermined weekly. Rate
shown is the rate in effect on March 31, 2005.
(d) Synthetic municipal instruments; 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.
(e) 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 March 31, 2005 was
$768,868,000, which represented 22.96% of the Fund's Net Assets. Unless
otherwise indicated, these securities are not considered to be illiquid.
(f) Principal and/or 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.
(g) Security has an irrevocable call or mandatory put by the issuer. Maturity
date reflects such call or put.
(h) Demand security; payable upon demand by the Fund at specified time intervals
no greater than thirteen months. Interest rate is redetermined
semi-annually. Rate shown is the rate in effect on March 31, 2005.
(i) Advance refunded; secured by an escrow fund of U.S. Treasury obligations.
(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 rate is redetermined daily. Rate
shown is the rate in effect on March 31, 2005.
(l) Demand security; payable upon demand by the Fund at specified time intervals
no greater than thirteen months. Interest rate is redetermined at
intermittent intervals. Rate shown is the rate in effect on March 31, 2005.
(m) Demand security; payable upon demand by the Fund at specified time intervals
no greater than thirteen months. Interest rate is redetermined monthly. Rate
shown is the rate in effect on March 31, 2005.
(n) Security considered to be illiquid; the portfolio is limited to investing
10% of Net Assets in illiquid securities. The aggregate market value of
these securities considered illiquid at March 31, 2005 was $58,515,000,
which represented 1.75% of the Fund's Net Assets.
(o) Secured by an escrow fund of U.S. Treasury obligations.
(p) Determined by the investment advisor to be of comparable quality to the
rated securities in which the Fund may invest, pursuant to guidelines of
quality adopted by the Board of Trustees and followed by the investment
advisor.
(q) Also represents cost for federal income tax purposes.
See accompanying notes which are an integral part of the financial statements.
F-25
STATEMENT OF ASSETS AND LIABILITIES
March 31, 2005
<Table>
ASSETS:
Investments, at value (cost $3,322,342,840) $3,322,342,840
- ------------------------------------------------------------
Cash 11,284,350
- ------------------------------------------------------------
Receivables for:
Investments sold 6,190,049
- ------------------------------------------------------------
Interest 13,396,750
- ------------------------------------------------------------
Amount due from advisor 94,353
- ------------------------------------------------------------
Investment for trustee deferred compensation
and retirement plans 116,507
- ------------------------------------------------------------
Other assets 148,419
============================================================
Total assets 3,353,573,268
____________________________________________________________
============================================================
LIABILITIES:
Payables for:
Dividends 4,412,045
- ------------------------------------------------------------
Trustee deferred compensation and
retirement plans 231,330
- ------------------------------------------------------------
Accrued distribution fees 132,821
- ------------------------------------------------------------
Accrued trustees' fees 9,908
- ------------------------------------------------------------
Accrued transfer agent fees 75,398
- ------------------------------------------------------------
Accrued operating expenses 109,941
============================================================
Total liabilities 4,971,443
============================================================
Net assets applicable to shares outstanding $3,348,601,825
____________________________________________________________
============================================================
NET ASSETS CONSIST OF:
Shares of beneficial interest $3,348,663,731
- ------------------------------------------------------------
Undistributed net realized gain (loss) from
investment securities (61,906)
============================================================
$3,348,601,825
____________________________________________________________
============================================================
NET ASSETS:
Institutional Class $2,117,055,426
____________________________________________________________
============================================================
Private Investment Class $ 196,616,507
____________________________________________________________
============================================================
Personal Investment Class $ 10,877,052
____________________________________________________________
============================================================
Cash Management Class $ 725,123,738
____________________________________________________________
============================================================
Reserve Class $ 9,308,226
____________________________________________________________
============================================================
Resource Class $ 289,620,876
____________________________________________________________
============================================================
SHARES OUTSTANDING, $0.001 PAR VALUE PER
SHARE, UNLIMITED NUMBER OF SHARES
AUTHORIZED:
Institutional Class 2,117,040,310
____________________________________________________________
============================================================
Private Investment Class 196,606,167
____________________________________________________________
============================================================
Personal Investment Class 10,874,255
____________________________________________________________
============================================================
Cash Management Class 725,129,583
____________________________________________________________
============================================================
Reserve Class 9,306,389
____________________________________________________________
============================================================
Resource Class 289,623,534
____________________________________________________________
============================================================
Net asset value, offering and redemption
price per share for each class $ 1.00
____________________________________________________________
============================================================
</Table>
See accompanying notes which are an integral part of the financial statements.
F-26
STATEMENT OF OPERATIONS
For the year ended March 31, 2005
<Table>
INVESTMENT INCOME:
Interest $45,234,430
=========================================================================
EXPENSES:
Advisory fees 6,427,161
- -------------------------------------------------------------------------
Administrative services fees 593,616
- -------------------------------------------------------------------------
Custodian fees 116,420
- -------------------------------------------------------------------------
Distribution fees:
Private Investment Class 896,739
- -------------------------------------------------------------------------
Personal Investment Class 78,707
- -------------------------------------------------------------------------
Cash Management Class 682,153
- -------------------------------------------------------------------------
Reserve Class 103,030
- -------------------------------------------------------------------------
Resource Class 509,985
- -------------------------------------------------------------------------
Transfer agent fees 505,749
- -------------------------------------------------------------------------
Trustees' fees and retirement benefits 94,630
- -------------------------------------------------------------------------
Other 650,568
=========================================================================
Total expenses 10,658,758
=========================================================================
Less: Fees waived and expenses reimbursed (2,284,421)
=========================================================================
Net expenses 8,374,337
=========================================================================
Net investment income 36,860,093
=========================================================================
Net realized gain (loss) from investment securities (60,974)
=========================================================================
Net increase in net assets resulting from operations $36,799,119
_________________________________________________________________________
=========================================================================
</Table>
See accompanying notes which are an integral part of the financial statements.
F-27
STATEMENT OF CHANGES IN NET ASSETS
For the years ended March 31, 2005 and 2004
<Table>
<Caption>
2005 2004
- ----------------------------------------------------------------------------------------------
OPERATIONS:
Net investment income $ 36,860,093 $ 22,690,885
- ----------------------------------------------------------------------------------------------
Net realized gain (loss) from investment securities (60,974) 40,841
==============================================================================================
Net increase in net assets resulting from operations 36,799,119 22,731,726
==============================================================================================
Distributions to shareholders from net investment income:
Institutional Class (24,315,215) (14,405,472)
- ----------------------------------------------------------------------------------------------
Private Investment Class (1,826,828) (1,230,193)
- ----------------------------------------------------------------------------------------------
Personal Investment Class (70,609) (37,490)
- ----------------------------------------------------------------------------------------------
Cash Management Class (7,900,652) (5,040,826)
- ----------------------------------------------------------------------------------------------
Reserve Class (39,173) (8,425)
- ----------------------------------------------------------------------------------------------
Resource Class (2,707,616) (1,968,479)
==============================================================================================
Decrease in net assets resulting from distributions (36,860,093) (22,690,885)
==============================================================================================
Share transactions-net:
Institutional Class 163,325,063 632,519,818
- ----------------------------------------------------------------------------------------------
Private Investment Class 46,220,760 (77,436,378)
- ----------------------------------------------------------------------------------------------
Personal Investment Class 483,638 (6,598,054)
- ----------------------------------------------------------------------------------------------
Cash Management Class (43,002,612) 150,447,508
- ----------------------------------------------------------------------------------------------
Reserve Class (4,721,188) 1,376,091
- ----------------------------------------------------------------------------------------------
Resource Class (9,579,676) 39,025,099
==============================================================================================
Net increase in net assets resulting from share
transactions 152,725,985 739,334,084
==============================================================================================
Net increase in net assets 152,665,011 739,374,925
==============================================================================================
NET ASSETS:
Beginning of year 3,195,936,814 2,456,561,889
==============================================================================================
End of year (including undistributed net investment income
of $0 and $0, respectively) $3,348,601,825 $3,195,936,814
______________________________________________________________________________________________
==============================================================================================
</Table>
See accompanying notes which are an integral part of the financial statements.
F-28
NOTES TO FINANCIAL STATEMENTS
March 31, 2005
NOTE 1--SIGNIFICANT ACCOUNTING POLICIES
Tax-Free Investments Trust (the "Trust") is registered under the Investment
Company Act of 1940, as amended (the "1940 Act"), as a diversified, open-end
management investment company. The Trust is organized as a Delaware statutory
trust consisting of one portfolio, the Tax-Free Cash Reserve Portfolio (the
"Fund"). The Fund currently offers multiple classes of shares. Matters affecting
each class are voted on exclusively by the shareholders of each class.
The Fund's investment objective is to provide as high a level of tax-exempt
income as is consistent with the preservation of capital and maintenance of
liquidity. Each company listed in the Schedule of Investments is organized in
the United States of America unless otherwise noted.
Under the Trust's organizational documents, each Trustee, officer, employee
or other agent of the Trust (including the Trust's investment manager) is
indemnified against certain liabilities that may arise out of performance of
their duties to the Fund. Additionally, in the normal course of business, the
Fund enters into contracts that contain a variety of indemnification clauses.
The Fund's maximum exposure under these arrangements is unknown as this would
involve future claims that may be made against the Fund that have not yet
occurred. However, the Fund has not had prior claims or losses pursuant to these
contracts.
The preparation of financial statements in conformity with accounting
principles generally accepted in the United States of America requires
management to make estimates and assumptions that affect the reported amounts of
assets and liabilities at the date of the financial statements and the reported
amounts of revenues and expenses during the reporting period. Actual results
could differ from those estimates. The following is a summary of the significant
accounting policies followed by the Fund in the preparation of its financial
statements.
A. SECURITY VALUATIONS -- The Fund's securities are valued on the basis of
amortized cost which approximates market value as permitted by Rule 2a-7
under 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.
Brokerage commissions and mark ups are considered transaction costs and
are recorded as an increase to the cost basis of securities purchased
and/or a reduction of proceeds on a sale of securities. Such transaction
costs are included in the determination of realized gain (loss) from
investment securities reported in the Statement of Operations and the
Statement of Changes in Net Assets and the realized net gains (losses) on
securities per share in the Financial Highlights. Transaction costs are
included in the calculation of the Fund's net asset value and, accordingly,
they reduce the Fund's total returns. These transaction costs are not
considered operating expenses and are not reflected in net investment
income reported in the Statement of Operations and Statement of Changes in
Net Assets, or the net investment income per share and ratios of expenses
and net investment income reported in the Financial Highlights, nor are
they limited by any expense limitation arrangements between the Fund and
the advisor.
The Fund allocates realized capital gains and losses to a class based on
the relative net assets of each class. The Fund allocates income to a class
based on the relative value of the settled shares of each class.
C. DISTRIBUTIONS -- Distributions from income are declared daily and paid
monthly. Distributions from net realized capital gain, if any, are
generally paid annually and recorded on ex-dividend date. The Fund may
elect to use a portion of the proceeds from redemptions as distributions
for federal income tax purposes.
D. FEDERAL INCOME TAXES -- The Fund intends to comply with the requirements of
Subchapter M of the Internal Revenue Code necessary to qualify as a
regulated investment company and, as such, will not be subject to federal
income taxes on otherwise taxable income (including net realized capital
gain) which is distributed to shareholders. Therefore, no provision for
federal income taxes is recorded in the financial statements.
In addition, the Fund intends to invest in securities to allow it to
qualify to pay shareholders "exempt interest dividends", as defined in the
Internal Revenue Code of 1986, as amended.
E. EXPENSES -- Fees provided for under the Rule 12b-1 plan of a particular
class of the Fund and which are directly attributable to that class are
charged to the operations of such class. All other expenses are allocated
among the classes based on relative net assets.
NOTE 2--ADVISORY FEES AND OTHER FEES PAID TO AFFILIATES
The Trust has entered into a master investment advisory agreement with A I M
Advisors, Inc. ("AIM"). Under the terms of the investment advisory agreement,
the Fund pays an advisory fee to AIM at the annual rate of 0.25% of the first
$500 million of the Fund's average daily net assets plus 0.20% of the Fund's
average daily net assets in excess of $500 million. AIM has voluntarily agreed
to waive advisory fees and/or reimburse expenses to the extent necessary to
limit total annual fund operating expenses (excluding certain items discussed
below) to 0.22% of the Fund's average daily net assets. In determining the
advisor's obligation to waive advisory fees and/or reimburse expenses, the
following expenses are not taken into account, and could cause the total annual
fund operating expenses to exceed the limit stated above: (i) Rule 12b-1 plan
fees, if any; (ii) interest; (iii) taxes; (iv) extraordinary items (these are
expenses that are not anticipated to arise from the Fund's day-to-day
operations), or items designated as such by the Fund's Board of Trustees; (v)
expenses related to a merger or reorganization, as approved by the Fund's Board
of Trustees; (vi) expenses that the Fund has incurred but did not actually pay
because of an expense offset arrangement; (vii) trustees' fees; and (viii)
federal registration fees. Currently, in addition to the expense
F-29
reimbursement arrangement with AMVESCAP PLC ("AMVESCAP") described more fully
below, the only expense offset arrangements from which the Fund may benefit are
in the form of credits that the Fund receives from banks where the Fund or its
transfer agent has deposit accounts in which it holds uninvested cash. Those
credits are used to pay certain expenses incurred by the Fund. Voluntary fee
waivers or reimbursements may be modified or discontinued at any time upon
consultation with the Board of Trustees without further notice to investors.
For the year ended March 31, 2005, AIM waived fees of $1,559,355.
For the year ended March 31, 2005, at the request of the Trustees of the
Trust, AMVESCAP agreed to reimburse $1,679 of expenses incurred by the Fund in
connection with market timing matters in the AIM Funds, including legal, audit,
shareholder reporting, communications and trustee expenses. These expenses along
with the related expense reimbursement, are included in the Statement of
Operations.
The Trust, pursuant to a master administrative services agreement with AIM,
has agreed to pay AIM for certain administrative costs incurred in providing
accounting services to the Fund. Pursuant to such agreement, for the year ended
March 31, 2005, AIM was paid $593,616.
The Trust, pursuant to a transfer agency and service agreement, has agreed
to pay AIM Investment Services, Inc. ("AISI") a fee for providing transfer
agency and shareholder services to the Fund. During the year ended March 31,
2005, AISI retained $459,758.
Under the terms of a master distribution agreement between Fund Management
Company ("FMC") and the Trust, FMC acts as the exclusive distributor of the
Fund's shares. The Trust has adopted a master distribution plan pursuant to Rule
12b-1 under the 1940 Act with respect to the Fund's Private Investment Class,
Personal Investment Class, Cash Management Class, Reserve Class and Resource
Class (the "Plan"). The Plan provides that the Private Investment Class, the
Personal Investment Class, the Cash Management Class, the Reserve Class and the
Resource Class pay up to the maximum annual rate of 0.50%, 0.75%, 0.10%, 1.00%
and 0.20%, respectively, of the average daily net assets attributable to such
class. Of this amount, up to 0.25% of the average daily net assets of each class
may be paid to furnish continuing personal shareholder services to customers who
purchase and own shares of such classes. Any amounts not paid as a service fee
under such Plan would constitute an asset-based sales charge. NASD Rules also
impose a cap on the total amount of sales charges, including asset-based sales
charges, that may be paid by any class of shares of the Fund. Currently, FMC has
elected to waive a portion of its compensation payable by the Fund such that
compensation paid pursuant to the Plan with respect to the Private Investment
Class, the Personal Investment Class, the Cash Management Class, the Reserve
Class and the Resource Class equals the maximum annual rate of 0.25%, 0.55%,
0.08%, 0.87% and 0.16%, respectively, of the average daily net assets
attributable to such class. Further, FMC voluntarily waived additional Rule
12b-1 plan fees for the Reserve Class during the year in order to increase the
yield. Waivers may be modified or discontinued at any time. Pursuant to the
Plan, for the year ended March 31, 2005, the Private Investment Class, the
Personal Investment Class, the Cash Management Class, the Reserve Class and the
Resource Class paid $448,369, $57,719, $545,722 $87,429 and $407,988,
respectively, after FMC waived Plan fees of $448,370, $20,988, $136,431, $15,601
and $101,997, respectively.
Certain officers and trustees of the Trust are officers and directors of
AIM, FMC and/or AISI.
NOTE 3--TRUSTEES' FEES
Trustees' fees represent remuneration paid to each Trustee of the Trust who is
not an "interested person" of AIM. Trustees have the option to defer
compensation payable by the Trust. Those Trustees who defer compensation have
the option to select various AIM Funds in which their deferral accounts shall be
deemed to be invested.
Current Trustees are eligible to participate in a retirement plan that
provides for benefits to be paid upon retirement to Trustees over a period of
time based on the number of years of service. The Fund may have certain former
Trustees that also participate in a retirement plan and receive benefits under
such plan.
Obligations under the deferred compensation and retirement plans represent
unsecured claims against the general assets of the Fund.
During the year ended March 31, 2005, the Fund paid legal fees of $13,558
for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the
Independent Trustees. A member of that firm is a Trustee of the Trust.
NOTE 4--BORROWINGS
Pursuant to an exemptive order from the SEC, the Fund may participate in an
interfund lending facility that AIM has established for temporary borrowings by
the AIM Funds. An interfund loan will be made under this facility only if the
loan rate (an 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. A loan will be secured by collateral if the
Fund's aggregate borrowings from all sources exceeds 10% of the Fund's total
assets. To the extent that the loan is required to be secured by collateral, the
collateral is marked to market daily to ensure that the market value is at least
102% of the outstanding principal value of the loan. The Fund did not borrow or
lend under the facility during the year ended March 31, 2005.
Additionally, the Fund is permitted to temporarily carry a negative or
overdrawn balance in its account with The Bank of New York, the custodian bank.
To compensate the custodian bank for such overdrafts, the overdrawn Fund may
either (i) leave funds in the account so the custodian can be compensated by
earning the additional interest; or (ii) compensate by paying the custodian
bank. In either case, the custodian bank will be compensated at an amount equal
to the Federal Funds rate plus 100 basis points.
F-30
NOTE 5--DISTRIBUTIONS TO SHAREHOLDERS AND TAX COMPONENTS OF NET ASSETS
DISTRIBUTIONS TO SHAREHOLDERS:
The tax character of distributions paid during the years ended March 31, 2005
and 2004 was as follows:
<Table>
<Caption>
2005 2004
- ----------------------------------------------------------------------------------------
Distributions paid from ordinary income--Tax Exempt $36,860,093 $22,690,885
________________________________________________________________________________________
========================================================================================
</Table>
TAX COMPONENTS OF NET ASSETS:
As of March 31, 2005, the components of net assets on a tax basis were as
follows:
<Table>
<Caption>
2005
- ----------------------------------------------------------------------------
Undistributed ordinary income--Tax Exempt $ 185,341
- ----------------------------------------------------------------------------
Temporary book/tax differences (185,341)
- ----------------------------------------------------------------------------
Capital loss carryforward (54,712)
- ----------------------------------------------------------------------------
Post-October capital loss deferral (7,194)
- ----------------------------------------------------------------------------
Shares of beneficial interest 3,348,663,731
============================================================================
Total net assets $3,348,601,825
____________________________________________________________________________
============================================================================
</Table>
The temporary book/tax differences are a result of timing differences
between book and tax recognition of income and/or expenses. The Fund's temporary
book/tax differences are the result of the trustee deferral of compensation and
retirement plan expenses.
Capital loss carryforward is calculated and reported as of a specific date.
Results of transactions and other activity after that date may affect the amount
of capital loss carryforward actually available for the Fund to utilize. The
ability to utilize capital loss carryforward in the future may be limited under
the Internal Revenue Code and related regulations based on the results of future
transactions.
The Fund has a capital loss carryforward as of March 31, 2005 which expires
as follows:
<Table>
<Caption>
CAPITAL LOSS
EXPIRATION CARRYFORWARD*
- -----------------------------------------------------------------------------
March 31, 2011 $ 933
- -----------------------------------------------------------------------------
March 31, 2013 53,779
=============================================================================
Total capital loss carryforward $54,712
_____________________________________________________________________________
=============================================================================
</Table>
* Capital loss carryforward as of the date listed above is reduced for
limitations, if any, to the extent required by the Internal Revenue Code.
F-31
NOTE 6--SHARE INFORMATION
The Fund currently offers six different classes of shares: Institutional Class,
Private Investment Class, Personal Investment Class, Cash Management Class,
Reserve Class and Resource Class.
<Table>
<Caption>
CHANGES IN SHARES OUTSTANDING(a)
- ---------------------------------------------------------------------------------------------------------------------------------
YEAR ENDED MARCH 31,
--------------------------------------------------------------------------
2005 2004
----------------------------------- -----------------------------------
SHARES AMOUNT SHARES AMOUNT
- ---------------------------------------------------------------------------------------------------------------------------------
Sold:
Institutional Class 19,309,850,248 $ 19,309,850,248 13,446,683,719 $ 13,446,683,719
- ---------------------------------------------------------------------------------------------------------------------------------
Private Investment Class 442,201,609 442,201,609 489,285,624 489,285,624
- ---------------------------------------------------------------------------------------------------------------------------------
Personal Investment Class 31,788,215 31,788,215 26,756,133 26,756,133
- ---------------------------------------------------------------------------------------------------------------------------------
Cash Management Class 5,913,083,202 5,913,083,202 5,641,820,633 5,641,820,633
- ---------------------------------------------------------------------------------------------------------------------------------
Reserve Class 138,866,847 138,866,847 156,764,612 156,764,612
- ---------------------------------------------------------------------------------------------------------------------------------
Resource Class 1,776,129,695 1,776,129,695 1,508,376,051 1,508,376,051
=================================================================================================================================
Issued as reinvestment of dividends:
Institutional Class 13,098,927 13,098,927 7,301,226 7,301,226
- ---------------------------------------------------------------------------------------------------------------------------------
Private Investment Class 1,185,307 1,185,307 737,747 737,747
- ---------------------------------------------------------------------------------------------------------------------------------
Personal Investment Class 9,987 9,987 4,054 4,054
- ---------------------------------------------------------------------------------------------------------------------------------
Cash Management Class 5,725,182 5,725,182 4,115,815 4,115,815
- ---------------------------------------------------------------------------------------------------------------------------------
Reserve Class 32,528 32,528 8,921 8,921
- ---------------------------------------------------------------------------------------------------------------------------------
Resource Class 2,383,423 2,383,423 1,860,224 1,860,224
=================================================================================================================================
Reacquired:
Institutional Class (19,159,624,112) (19,159,624,112) (12,821,465,127) (12,821,465,127)
- ---------------------------------------------------------------------------------------------------------------------------------
Private Investment Class (397,166,156) (397,166,156) (567,459,749) (567,459,749)
- ---------------------------------------------------------------------------------------------------------------------------------
Personal Investment Class (31,314,564) (31,314,564) (33,358,241) (33,358,241)
- ---------------------------------------------------------------------------------------------------------------------------------
Cash Management Class (5,961,810,996) (5,961,810,996) (5,495,488,940) (5,495,488,940)
- ---------------------------------------------------------------------------------------------------------------------------------
Reserve Class (143,620,563) (143,620,563) (155,397,442) (155,397,442)
- ---------------------------------------------------------------------------------------------------------------------------------
Resource Class (1,788,092,794) (1,788,092,794) (1,471,211,176) (1,471,211,176)
=================================================================================================================================
152,725,985 $ 152,725,985 739,334,084 $ 739,334,084
_________________________________________________________________________________________________________________________________
=================================================================================================================================
</Table>
(a) There are three entities that are each record owners of more than 5% of
the outstanding shares of the Fund and in the aggregate they own 57% of
the outstanding shares of the Fund. AIM Distributors has an agreement
with these entities to sell Fund shares. The Fund, AIM and/or AIM
affiliates may make payments to these entities, which are considered to
be related to the Fund, for providing services to the Fund, AIM and/or
AIM affiliates including but not limited to services such as, securities
brokerage, distribution, third party record keeping and account
servicing. The Trust has no knowledge as to whether all or any portion
of the shares owned of record by these entities are also owned
beneficially.
F-32
NOTE 7--FINANCIAL HIGHLIGHTS
The following schedule presents financial highlights for a share of the Fund
outstanding throughout the periods indicated.
<Table>
<Caption>
INSTITUTIONAL CLASS
-------------------------------------------------------------------
YEAR ENDED MARCH 31,
-------------------------------------------------------------------
2005 2004 2003 2002 2001
- ---------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
- ---------------------------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income 0.01 0.01 0.01 0.02 0.04
=================================================================================================================================
Less distributions from net investment income (0.01) (0.01) (0.01) (0.02) (0.04)
=================================================================================================================================
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
_________________________________________________________________________________________________________________________________
=================================================================================================================================
Total return(a) 1.24% 0.84% 1.22% 2.17% 3.95%
_________________________________________________________________________________________________________________________________
=================================================================================================================================
Ratios/supplemental data:
Net assets, end of period (000s omitted) $2,117,055 $1,953,769 $1,321,224 $1,239,058 $929,921
_________________________________________________________________________________________________________________________________
=================================================================================================================================
Ratio of expenses to average net assets:
With fee waivers and/or expense reimbursements 0.22%(b) 0.22% 0.22% 0.22% 0.20%
- ---------------------------------------------------------------------------------------------------------------------------------
Without fee waivers and/or expense reimbursements 0.27%(b) 0.27% 0.27% 0.28% 0.29%
_________________________________________________________________________________________________________________________________
=================================================================================================================================
Ratio of net investment income to average net assets 1.24%(b) 0.83% 1.20% 2.01% 3.84%
_________________________________________________________________________________________________________________________________
=================================================================================================================================
</Table>
(a) Includes adjustments in accordance with accounting principles generally
accepted in the United States of America.
(b) Ratios are based on average daily net assets of $1,951,289,628.
NOTE 8--CHANGE IN INDEPENDENT REGISTERED ACCOUNTING FIRM.
On March 23, 2005, the Audit Committee (the "Audit Committee") of the Board of
Trustees of the Trust appointed PricewaterhouseCoopers LLP ("PWC") as the
independent registered public accounting firm of the Fund for the fiscal year
ending March 31, 2006. For the prior reporting period, Ernst & Young ("E&Y") was
the Fund's independent registered public accounting firm. The change in the
Fund's independent auditors was part of an effort by the Audit Committee to
increase operational efficiencies by reducing the number of different audit
firms engaged by the Audit Committee to audit AIM Funds with March 31 fiscal
year ends. The Fund is in the process of obtaining a formal resignation from E&Y
as the independent registered public accounting firm of the Fund.
E&Y's report on the financial statements of the Fund for the past two years
did not contain an adverse or disclaimer of opinion, and was not qualified or
modified as to uncertainty, audit scope or accounting principles. During the
period E&Y was engaged, there were no disagreements with E&Y on any matter of
accounting principles or practices, financial statement disclosure, or auditing
scope or procedure which, if not resolved to E&Y's satisfaction, would have
caused it to make reference to that matter in connection with its report.
F-33
NOTE 9--LEGAL PROCEEDINGS
Terms used in the Legal Proceedings Note are defined terms solely for the
purpose of this note.
SETTLED ENFORCEMENT ACTIONS AND INVESTIGATIONS RELATED TO MARKET TIMING
On October 8, 2004, INVESCO Funds Group, Inc. ("IFG") (the former investment
advisor to certain AIM Funds) and A I M Advisors, Inc. ("AIM") (the Fund's
investment advisor) reached final settlements with certain regulators, including
without limitation the Securities and Exchange Commission ("SEC"), the New York
Attorney General ("NYAG") and the Colorado Attorney General ("COAG"), to resolve
civil enforcement actions and investigations related to market timing activity
and related issues in the AIM Funds, including those formerly advised by IFG.
These regulators alleged, in substance, that IFG and AIM failed to disclose in
the prospectuses for the AIM Funds that they advised and to the independent
directors/trustees of such Funds that they had entered into certain arrangements
permitting market timing of such Funds, thereby breaching their fiduciary duties
to such Funds. As a result of the foregoing, the regulators alleged that IFG and
AIM breached various Federal and state securities, business and consumer
protection laws. On the same date, A I M Distributors, Inc. ("ADI") (the
distributor of the retail AIM Funds) reached a final settlement with the SEC to
resolve an investigation relating to market timing activity and related issues
in the AIM Funds. The SEC also alleged that ADI violated various Federal
securities laws. The SEC also has settled related market timing enforcement
actions brought against certain former officers and employees of IFG.
Under the terms of the settlements, IFG agreed to pay a total of $325 million,
of which $110 million is civil penalties. Of this $325 million total payment,
half has been paid and the remaining half will be paid on or before December 31,
2005. AIM and ADI agreed to pay a total of $50 million, of which $30 million is
civil penalties, all of which has been paid. The entire $325 million IFG
settlement fund will be made available for distribution to the shareholders of
those AIM Funds that IFG formerly advised that were harmed by market timing
activity, and the entire $50 million settlement fund by AIM and ADI will be made
available for distribution to the shareholders of those AIM Funds advised by AIM
that were harmed by market timing activity, all as to be determined by an
independent distribution consultant. The IFG and AIM settlement funds may
increase as a result of contributions from third parties who reach final
settlements with the SEC or other regulators to resolve allegations of market
timing and/or late trading. The settlement funds will be distributed in
accordance with a methodology to be determined by the independent distribution
consultant, in consultation with AIM and the independent trustees of the AIM
Funds and acceptable to the staff of the SEC. Under the settlements with the
NYAG and COAG, AIM has agreed to reduce management fees on certain equity and
balanced AIM Funds by $15 million per year for the next five years, based upon
effective fee rates and assets under management as of July 1, 2004, not to
increase certain management fees and to provide more information to investors
regarding fees.
Under the terms of the settlements, AIM is undertaking certain governance and
compliance reforms, including maintaining an internal controls committee and
retaining an independent compliance consultant and a corporate ombudsman. Also,
commencing in 2007 and at least once every other year thereafter, AIM will
undergo a compliance review by an independent third party. In addition, under
the terms of the settlements, AIM has undertaken to cause the AIM Funds to
operate in accordance with certain governance policies and practices, including
retaining a full-time independent senior officer whose duties include monitoring
compliance and managing the process by which proposed management fees to be
charged the AIM Funds are negotiated. Also, commencing in 2008 and not less than
every fifth calendar year thereafter, the AIM Funds will hold shareholder
meetings at which their Boards of Trustees will be elected.
At the request of the trustees of the AIM Funds, AMVESCAP PLC ("AMVESCAP"),
the parent company of IFG and AIM, has agreed to reimburse expenses incurred by
such Funds related to market timing matters.
The SEC has also settled market timing enforcement actions against Raymond R.
Cunningham (the former president and chief executive officer of IFG and a former
member of the board of directors of the AIM Funds formerly advised by IFG),
Timothy J. Miller (the former chief investment officer and a former portfolio
manager for IFG), Thomas A. Kolbe (the former national sales manager of IFG) and
Michael D. Legoski (a former assistant vice president in IFG's sales
department). As part of these settlements, the SEC ordered these individuals to
pay restitution and civil penalties in various amounts and prohibited them from
associating with, or serving as an officer or director of, an investment
advisor, broker, dealer and/or investment company, as applicable, for certain
periods of time.
The payments made in connection with the above-referenced settlements by IFG,
AIM and ADI will total approximately $375 million (not including AIM's agreement
to reduce management fees on certain equity and balanced AIM Funds by $15
million per year for the next five years, based upon effective fee rates and
assets under management as of July 1, 2004). The manner in which the settlement
payments will be distributed is unknown at the present time and will be
determined by an independent distribution consultant appointed under the
settlement agreements. Therefore, management of AIM and the Fund are unable at
the present time to estimate the impact, if any, that the distribution of the
settlement payments may have on the Fund or whether such distribution will have
an impact on the Fund's financial statements in the future.
At the present time, management of AIM and the Fund are unable to estimate the
impact, if any, that the outcome of the Regulatory Inquiries and Pending
Litigation described below may have on AIM, ADI or the Fund.
REGULATORY INQUIRIES AND PENDING LITIGATION
The mutual fund industry as a whole is currently subject to regulatory
inquiries and litigation related to a wide range of issues. These issues
include, among others, market timing activity, late trading, fair value pricing,
excessive or improper advisory and/or distribution fees, mutual fund sales
practices, including but not limited to revenue sharing and directed-brokerage
arrangements, investments in securities of other registered investment
companies, contractual plans, issues related to Section 529 college savings
plans, procedures for locating lost security holders and participation in class
action settlements.
As described more fully below, IFG and AIM are the subject of a number of
ongoing regulatory inquiries and civil lawsuits related to one or more of the
issues currently being scrutinized by various Federal and state regulators,
including but not limited to those issues described above. Additional regulatory
actions and/or civil lawsuits related to the above or other issues may be filed
against the AIM Funds, IFG, AIM and/or related entities and
F-34
NOTE 9--LEGAL PROCEEDINGS (CONTINUED)
individuals in the future. Additional regulatory inquiries related to the above
or other issues also may be received by the AIM Funds, IFG, AIM and/or related
entities and individuals in the future.
Ongoing Regulatory Inquiries Concerning IFG and AIM
IFG, certain related entities, certain of their current and former officers
and/or certain of the AIM Funds formerly advised by IFG have received regulatory
inquiries in the form of subpoenas or other oral or written requests for
information and/or documents related to one or more of the following issues,
some of which concern one or more such Funds: market timing activity, late
trading, fair value pricing, excessive or improper advisory and/or distribution
fees, mutual fund sales practices, including revenue sharing and
directed-brokerage arrangements, and investments in securities of other
registered investment companies. These regulators include the SEC, the NASD,
Inc. ("NASD"), the Florida Department of Financial Services, the Attorney
General of the State of West Virginia, the West Virginia Securities Commission
and the Bureau of Securities of the State of New Jersey. IFG and certain of
these other parties also have received more limited inquiries from the United
States Department of Labor ("DOL") and the United States Attorney's Office for
the Southern District of New York, some of which concern one or more of the AIM
Funds formerly advised by IFG. IFG is providing full cooperation with respect to
these inquiries.
AIM, certain related entities, certain of their current and former officers
and/or certain of the AIM Funds have received regulatory inquiries in the form
of subpoenas or other oral or written requests for information and/or documents
related to one or more of the following issues, some of which concern one or
more AIM Funds: market timing activity, late trading, fair value pricing,
excessive or improper advisory and/or distribution fees, mutual fund sales
practices, including revenue sharing and directed-brokerage arrangements,
investments in securities of other registered investment companies, contractual
plans, issues related to Section 529 college savings plans and procedures for
locating lost securityholders. These regulators include the SEC, the NASD, the
Department of Banking for the State of Connecticut, the Attorney General of the
State of West Virginia, the West Virginia Securities Commission and the Bureau
of Securities of the State of New Jersey. AIM and certain of these other parties
also have received more limited inquiries from the SEC, the NASD, the DOL, the
Internal Revenue Service, the United States Attorney's Office for the Southern
District of New York, the United States Attorney's Office for the Central
District of California, the United States Attorney's Office for the District of
Massachusetts, the Massachusetts Securities Division, the U.S. Postal Inspection
Service and the Commodity Futures Trading Commission, some of which concern one
or more AIM Funds. AIM is providing full cooperation with respect to these
inquiries.
Pending Regulatory Civil Action Alleging Market Timing
On April 12, 2005, the Attorney General of the State of West Virginia ("WVAG")
filed civil proceedings against AIM, IFG and ADI, as well as numerous unrelated
mutual fund complexes and financial institutions. None of the AIM Funds has been
named as a defendant in these proceedings. The WVAG complaint, filed in the
Circuit Court of Marshall County, West Virginia [Civil Action No. 05-C-81],
alleges, in substance, that AIM, IFG and ADI engaged in unfair competition
and/or unfair or deceptive trade practices by failing to disclose in the
prospectuses for the AIM Funds, including those formerly advised by IFG, that
they had entered into certain arrangements permitting market timing of such
Funds. As a result of the foregoing, the WVAG alleges violations of W. Va. Code
sec. 46A-1-101, et seq. (the West Virginia Consumer Credit and Protection Act).
The WVAG complaint is seeking injunctive relief; civil monetary penalties; a
writ of quo warranto against the defendants; pre-judgment and post-judgment
interest; costs and expenses, including counsel fees; and other relief.
If AIM is unsuccessful in its defense of the WVAG proceedings, it could be
barred from serving as an investment adviser for any investment company
registered under the Investment Company Act of 1940, as amended (a "registered
investment company"). Such results could affect the ability of AIM or any other
investment advisor directly or indirectly owned by AMVESCAP, from serving as an
investment advisor to any registered investment company, including your Fund.
Your Fund has been informed by AIM that, if these results occur, AIM will seek
exemptive relief from the SEC to permit it to continue to serve as your Fund's
investment advisor. There is no assurance that such exemptive relief will be
granted.
Private Civil Actions Alleging Market Timing
Multiple civil lawsuits, including purported class action and shareholder
derivative suits, have been filed against various parties (including, depending
on the lawsuit, certain AIM Funds, IFG, AIM, AIM Management, AMVESCAP, certain
related entities, certain of their current and former officers and/or certain
unrelated third parties) making allegations that are similar in many respects to
those in the settled regulatory actions brought by the SEC, the NYAG and the
COAG concerning market timing activity in the AIM Funds. These lawsuits allege a
variety of theories of recovery, including but not limited to: (i) violation of
various provisions of the Federal and state securities laws; (ii) violation of
various provisions of ERISA; (iii) breach of fiduciary duty; and/or (iv) breach
of contract. These lawsuits were initiated in both Federal and state courts and
seek such remedies as compensatory damages; restitution; injunctive relief;
disgorgement of management fees; imposition of a constructive trust; removal of
certain directors and/or employees; various corrective measures under ERISA;
rescission of certain Funds' advisory agreements; interest; and attorneys' and
experts' fees.
All lawsuits based on allegations of market timing, late trading, and related
issues have been transferred to the United States District Court for the
District of Maryland (the "MDL Court") for consolidated or coordinated pre-trial
proceedings. Pursuant to an Order of the MDL Court, plaintiffs consolidated
their claims for pre-trial purposes into three amended complaints against
various AIM- and IFG-related parties: (i) a Consolidated Amended Class Action
Complaint purportedly brought on behalf of shareholders of the AIM Funds; (ii) a
Consolidated Amended Fund Derivative Complaint purportedly brought on behalf of
the AIM Funds and fund registrants; and (iii) an Amended Class Action Complaint
for Violations of the Employee Retirement Income Securities Act ("ERISA")
purportedly brought on behalf of participants in AMVESCAP's 401(k) plan. The
plaintiffs in two of the underlying lawsuits continue to seek remand of their
lawsuit to state court.
F-35
NOTE 9--LEGAL PROCEEDINGS (CONTINUED)
Private Civil Actions Alleging Improper Use of Fair Value Pricing
Multiple civil class action lawsuits have been filed against various parties
(including, depending on the lawsuit, certain AIM Funds, IFG and/or AIM)
alleging that certain AIM Funds inadequately employed fair value pricing. These
lawsuits allege a variety of theories of recovery, including but not limited to:
(i) violations of various provisions of the Federal securities laws; (ii) common
law breach of duty; and (iii) common law negligence and gross negligence. These
lawsuits have been filed in both Federal and state courts and seek such remedies
as compensatory and punitive damages; interest; and attorneys' fees and costs.
Based on a recent court decision, the state court action has been removed to
Federal court.
Private Civil Actions Alleging Excessive Advisory and/or Distribution Fees
Multiple civil lawsuits, including purported class action and shareholder
derivative suits, have been filed against various parties (including, depending
on the lawsuit, IFG, AIM, INVESCO Institutional (N.A.), Inc. ("IINA"), ADI
and/or INVESCO Distributors, Inc. ("INVESCO Distributors")) alleging that the
defendants charged excessive advisory and/or distribution fees and failed to
pass on to shareholders the perceived savings generated by economies of scale.
Certain of these lawsuits also allege that the defendants adopted unlawful
distribution plans. These lawsuits allege a variety of theories of recovery,
including but not limited to: (i) violation of various provisions of the Federal
securities laws; (ii) breach of fiduciary duty; and/or (iii) breach of contract.
These lawsuits have been filed in Federal courts and seek such remedies as
damages; injunctive relief; rescission of certain Funds' advisory agreements and
distribution plans; interest; prospective relief in the form of reduced fees;
and attorneys' and experts' fees. All of these lawsuits have been transferred to
the United States District Court for the Southern District of Texas, Houston
Division and subsequently consolidated for pre-trial purposes into one lawsuit.
Private Civil Actions Alleging Improper Charging of Distribution Fees on Limited
Offering Funds or Share Classes
Multiple civil lawsuits, including shareholder derivative suits, have been
filed against various parties (including, depending on the lawsuit, IFG, AIM,
ADI and/or certain of the trustees of the AIM Funds) alleging that the
defendants breached their fiduciary duties by charging distribution fees while
funds and/or specific share classes were closed generally to new investors
and/or while other share classes of the same fund were not charged the same
distribution fees. These lawsuits allege a variety of theories of recovery,
including but not limited to: (i) violation of various provisions of the Federal
securities laws; and (ii) breach of fiduciary duty. These lawsuits have been
filed in Federal courts and seek such remedies as damages; injunctive relief;
and attorneys' and experts' fees.
Private Civil Actions Alleging Improper Mutual Fund Sales Practices and
Directed-Brokerage Arrangements
Multiple civil lawsuits, including purported class action and shareholder
derivative suits, have been filed against various parties (including, depending
on the lawsuit, AIM Management, IFG, AIM, AIM Investment Services, Inc. ("AIS")
and/or certain of the trustees of the AIM Funds) alleging that the defendants
improperly used the assets of the AIM Funds to pay brokers to aggressively
promote the sale of the AIM Funds over other mutual funds and that the
defendants concealed such payments from investors by disguising them as
brokerage commissions. These lawsuits allege a variety of theories of recovery,
including but not limited to: (i) violation of various provisions of the Federal
securities laws; (ii) breach of fiduciary duty; and (iii) aiding and abetting a
breach of fiduciary duty. These lawsuits have been filed in Federal courts and
seek such remedies as compensatory and punitive damages; rescission of certain
Funds' advisory agreements and distribution plans and recovery of all fees paid;
an accounting of all fund-related fees, commissions and soft dollar payments;
restitution of all unlawfully or discriminatorily obtained fees and charges; and
attorneys' and experts' fees. These actions have been consolidated for pre-trial
purposes.
Private Civil Action Alleging Failure to Ensure Participation in Class Action
Settlements
A civil lawsuit, purporting to be a class action lawsuit, has been filed
against AIM, IINA, A I M Capital Management, Inc. and the trustees of the AIM
Funds alleging that the defendants breached their fiduciary duties by failing to
ensure that the AIM Funds participated in class action settlements in which the
AIM Funds were eligible to participate. This lawsuit alleges as theories of
recovery: (i) violation of various provisions of the Federal securities laws;
(ii) common law breach of fiduciary duty; and (iii) common law negligence. This
lawsuit has been filed in Federal court and seeks such remedies as compensatory
and punitive damages; forfeiture of all commissions and fees paid by the class
of plaintiffs; and costs and attorneys' fees.
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
* * * * * *
As a result of the matters discussed above, investors in the AIM Funds might
react by redeeming their investments. This might require the Funds to sell
investments to provide for sufficient liquidity and could also have an adverse
effect on the investment performance of the Funds.
F-36
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Shareholders of Tax-Free Cash Reserve Portfolio
and the Board of Trustees of Tax-Free Investments Trust:
We have audited the accompanying statement of assets and liabilities of Tax-Free
Cash Reserve Portfolio (a portfolio of Tax-Free Investments Trust), including
the schedule of investments, as of March 31, 2005, and the related statement of
operations for the year then ended, the statements of changes in net assets for
each of the two years in the period then ended, and the financial highlights for
each of the five years in the period then ended. These financial statements and
financial highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. We were
not engaged to perform an audit of the Fund's internal control over financial
reporting. Our audits included consideration of internal control over financial
reporting as a basis for designing audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Fund's internal control over financial reporting.
Accordingly, we express no such opinion. An audit also includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements and financial highlights, assessing the accounting principles used
and significant estimates made by management, and evaluating the overall
financial statement presentation. Our procedures included confirmation of
securities owned as of March 31, 2005 by correspondence with the custodian and
brokers or by other appropriate auditing procedures where replies from brokers
were not received. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Tax-Free Cash Reserve Portfolio as of March 31, 2005, the results of its
operations for the year then ended, the changes in its net assets for each of
the two years in the period then ended, and the financial highlights for each of
the five years in the period then ended, in conformity with U.S. generally
accepted accounting principles.
Houston, Texas -s- ERNST & YOUNG LLP
May 18, 2005
F-37
TRUSTEES AND OFFICERS
As of March 31, 2005
The address of each trustee and officer of Tax-Free Investments Trust (the
"Trust"), is 11 Greenway Plaza, Suite 100, Houston, Texas 77046. Each trustee
oversees 114 portfolios in the AIM Funds complex. The trustees serve for the
life of the Trust, subject to their earlier death, incapacitation, resignation,
retirement or removal as more specifically provided in the Trust's
organizational documents. Column two below includes length of time served with
predecessor entities, if any.
<Table>
<Caption>
TRUSTEE AND/
NAME, YEAR OF BIRTH AND OR OFFICER PRINCIPAL OCCUPATION(S) OTHER DIRECTORSHIP(S)
POSITION(S) HELD WITH THE TRUST SINCE DURING PAST 5 YEARS HELD BY TRUSTEE
- --------------------------------------------------------------------------------------------------------------------
INTERESTED PERSONS
- --------------------------------------------------------------------------------------------------------------------
Robert H. Graham(1) -- 1946 1977 Director and Chairman, A I M None
Trustee, Vice Chair and Management Group Inc.
President (financial services holding
company); Director and Vice
Chairman, AMVESCAP PLC and
Chairman, AMVESCAP PLC -- AIM
Division (parent of AIM and a
global investment management
firm)
Formerly: President and Chief
Executive Officer, A I M
Management Group Inc.;
Director, Chairman and
President, A I M Advisors,
Inc. (registered investment
advisor); Director and
Chairman, A I M Capital
Management, Inc. (registered
investment advisor), A I M
Distributors, Inc. (registered
broker dealer), AIM Investment
Services, Inc., (registered
transfer agent), and Fund
Management Company (registered
broker dealer); and Chief
Executive Officer, AMVESCAP
PLC -- Managed Products
- --------------------------------------------------------------------------------------------------------------------
Mark H. Williamson(2) -- 1951 2003 Director, President and Chief None
Trustee and Executive Vice Executive Officer, A I M
President Management Group Inc.;
Director, Chairman and
President, A I M Advisors,
Inc.; Director, A I M Capital
Management, Inc. and A I M
Distributors, Inc.; Director
and Chairman, AIM Investment
Services, Inc., Fund
Management Company and INVESCO
Distributors, Inc. (registered
broker dealer); and Chief
Executive Officer, AMVESCAP
PLC -- AIM Division (parent of
AIM and a global investment
management firm)
Formerly: Director, Chairman,
President and Chief Executive
Officer, INVESCO Funds Group,
Inc.; President and Chief
Executive Officer, INVESCO
Distributors, Inc.; Chief
Executive Officer, AMVESCAP
PLC -- Managed Products
- --------------------------------------------------------------------------------------------------------------------
INDEPENDENT TRUSTEES
- --------------------------------------------------------------------------------------------------------------------
Bruce L. Crockett(3) -- 1944 1992 Chairman, Crockett Technology ACE Limited (insurance
Trustee and Chair Associates (technology company); and Captaris,
consulting company) Inc. (unified messaging
provider)
- --------------------------------------------------------------------------------------------------------------------
Bob R. Baker -- 1936 2003 Retired None
Trustee
- --------------------------------------------------------------------------------------------------------------------
Frank S. Bayley -- 1939 2001 Retired Badgley Funds, Inc.
Trustee (registered investment
Formerly: Partner, law firm of company)
Baker & McKenzie
- --------------------------------------------------------------------------------------------------------------------
James T. Bunch -- 1942 2003 Co-President and Founder, None
Trustee Green, Manning & Bunch Ltd.,
(investment banking firm); and
Director, Policy Studies, Inc.
and Van Gilder Insurance
Corporation
- --------------------------------------------------------------------------------------------------------------------
Albert R. Dowden -- 1941 2000 Director of a number of public None
Trustee and private business
corporations, including the
Boss Group Ltd. (private
investment and management);
Cortland Trust, Inc.
(Chairman) (registered
investment company); Annuity
and Life Re (Holdings), Ltd.
(insurance company); and
CompuDyne Corporation
(provider of products and
services to the public
security market)
Formerly: Director, President
and Chief Executive Officer,
Volvo Group North America,
Inc.; Senior Vice President,
AB Volvo; and director of
various affiliated Volvo
companies
- --------------------------------------------------------------------------------------------------------------------
Edward K. Dunn, Jr. -- 1935 1998 Retired None
Trustee
Formerly: Chairman, Mercantile
Mortgage Corp.; President and
Chief Operating Officer,
Mercantile-Safe Deposit &
Trust Co.; and President,
Mercantile Bankshares Corp.
- --------------------------------------------------------------------------------------------------------------------
Jack M. Fields -- 1952 1997 Chief Executive Officer, Administaff, and
Trustee Twenty First Century Group, Discovery Global
Inc. (government affairs Education Fund
company) (owner) Dos Angelos (non-profit)
Ranch, L.P.
Formerly: Chief Executive
Officer, Texana Timber LP
(sustainable forestry company)
- --------------------------------------------------------------------------------------------------------------------
Carl Frischling -- 1937 1992 Partner, law firm of Kramer Cortland Trust, Inc.
Trustee Levin Naftalis and Frankel LLP (registered investment
company)
- --------------------------------------------------------------------------------------------------------------------
Gerald J. Lewis -- 1933 2003 Chairman, Lawsuit Resolution General Chemical Group,
Trustee Services (San Diego, Inc.
California)
- --------------------------------------------------------------------------------------------------------------------
Prema Mathai-Davis -- 1950 1998 Formerly: Chief Executive None
Trustee Officer, YWCA of the USA
- --------------------------------------------------------------------------------------------------------------------
</Table>
(1) Mr. Graham is considered an interested person of the Trust because he is a
director of AMVESCAP PLC, parent of the advisor to the Trust. Prior to
October 4, 2004, Mr. Graham served as Chairman of the Board of Trustees of
the Trust.
(2) Mr. Williamson is considered an interested person of the Trust because he is
an officer and a director of the advisor to, and a director of the principal
underwriter of, the Trust.
(3) Mr. Crockett was elected Chair of the Board of Trustees of the Trust
effective October 4, 2004.
TRUSTEES AND OFFICERS (continued)
As of March 31, 2005
The address of each trustee and officer of Tax-Free Investments Trust (the
"Trust"), is 11 Greenway Plaza, Suite 100, Houston, Texas 77046. Each trustee
oversees 114 portfolios in the AIM Funds complex. The trustees serve for the
life of the Trust, subject to their earlier death, incapacitation, resignation,
retirement or removal as more specifically provided in the Trust's
organizational documents. Column two below includes length of time served with
predecessor entities, if any.
<Table>
<Caption>
TRUSTEE AND/
NAME, YEAR OF BIRTH AND OR OFFICER PRINCIPAL OCCUPATION(S) OTHER DIRECTORSHIP(S)
POSITION(S) HELD WITH THE TRUST SINCE DURING PAST 5 YEARS HELD BY TRUSTEE
- -------------------------------------------------------------------------------------------------------------------------------
Lewis F. Pennock -- 1942 1992 Partner, law firm of Pennock & Cooper None
Trustee
- -------------------------------------------------------------------------------------------------------------------------------
Ruth H. Quigley -- 1935 2001 Retired None
Trustee
- -------------------------------------------------------------------------------------------------------------------------------
Larry Soll -- 1942 2003 Retired None
Trustee
- -------------------------------------------------------------------------------------------------------------------------------
OTHER OFFICERS
- -------------------------------------------------------------------------------------------------------------------------------
Lisa O. Brinkley(4) -- 1959 2004 Senior Vice President, A I M Management N/A
Senior Vice President and Chief Group Inc.; Senior Vice President and
Compliance Officer Chief Compliance Officer, A I M
Advisors, Inc.; Vice President and Chief
Compliance Officer, A I M Capital
Management, Inc. and Vice President,
A I M Distributors, Inc., AIM Investment
Services, Inc. and Fund Management
Company
Formerly: Senior Vice President and
Compliance Director, Delaware
Investments Family of Funds and Chief
Compliance Officer, A I M Distributors,
Inc.
- -------------------------------------------------------------------------------------------------------------------------------
Russell C. Burk(5) -- 1958 2005 Formerly: Director of Compliance and N/A
Senior Vice President Assistant General Counsel, ICON
Advisers, Inc.; Financial Consultant,
Merrill Lynch; General Counsel and
Director of Compliance, ALPS Mutual
Funds, Inc.
- -------------------------------------------------------------------------------------------------------------------------------
Kevin M. Carome -- 1956 2003 Director, Senior Vice President, N/A
Senior Vice President, Secretary and General Counsel, A I M
Secretary and Chief Legal Management Group Inc. and A I M
Officer Advisors, Inc.; Director and Vice
President, INVESCO Distributors, Inc.;
Vice President, A I M Capital
Management, Inc., and AIM Investment
Services, Inc.; Director, Vice President
and General Counsel, Fund Management
Company; and Senior Vice President,
A I M Distributors, Inc.
Formerly: Senior Vice President and
General Counsel, Liberty Financial
Companies, Inc.; and Senior Vice
President and General Counsel, Liberty
Funds Group, LLC; and Vice President,
A I M Distributors, Inc.
- -------------------------------------------------------------------------------------------------------------------------------
Stuart W. Coco -- 1955 1992 Managing Director and Director of Money N/A
Vice President Market Research and Special Projects,
A I M Capital Management, Inc.; and Vice
President, A I M Advisors, Inc.
- -------------------------------------------------------------------------------------------------------------------------------
Sidney M. Dilgren -- 1961 2004 Vice President and Fund Treasurer, A I M N/A
Vice President and Treasurer Advisors, Inc.
Formerly: Senior Vice President, AIM
Investment Services, Inc.; and Vice
President, A I M Distributors, Inc.
- -------------------------------------------------------------------------------------------------------------------------------
J. Philip Ferguson(6) -- 1945 2005 Senior Vice President and Chief N/A
Vice President Investment Officer, A I M Advisors Inc.;
Director, Chairman, Chief Executive
Officer, President and Chief Investment
Officer, A I M Capital Management, Inc.;
Executive Vice President, A I M
Management Group Inc.
Formerly: Senior Vice President, AIM
Private Asset Management, Inc.; Chief
Equity Officer, and Senior Investment
Officer, A I M Capital Management, Inc.;
and Managing Partner, Beutel, Goodman
Capital Management
- -------------------------------------------------------------------------------------------------------------------------------
Karen Dunn Kelley -- 1960 1992 Director of Cash Management, Managing N/A
Vice President Director and Chief Cash Management
Officer, A I M Capital Management, Inc;
Director and President, Fund Management
Company; and Vice President, A I M
Advisors, Inc.
- -------------------------------------------------------------------------------------------------------------------------------
</Table>
(4) Ms. Brinkley was elected Senior Vice President and Chief Compliance Officer
of the Trust effective September 20, 2004.
(5) Mr. Burk was elected Senior Vice President of the Trust effective February
15, 2005.
(6) Mr. Ferguson was elected Vice President of the Trust effective February 24,
2005.
The Statement of Additional Information of the Trust includes additional
information about the Fund's Trustees and is available upon request, without
charge, by calling 1.800.959.4246.
<Table>
OFFICE OF THE FUND INVESTMENT ADVISOR DISTRIBUTOR AUDITORS
11 Greenway Plaza A I M Advisors, Inc. Fund Management Company Ernst & Young LLP
Suite 100 11 Greenway Plaza 11 Greenway Plaza 5 Houston Center
Houston, TX 77046-1173 Suite 100 Suite 100 1401 McKinney, Suite
Houston, TX 77046-1173 Houston, TX 77046-1173 1200
Houston, TX 77010-4035
COUNSEL TO THE
COUNSEL TO THE FUND INDEPENDENT TRUSTEES TRANSFER AGENT CUSTODIAN
Ballard Spahr Kramer, Levin, Naftalis AIM Investment The Bank of New York
Andrews & Ingersoll, LLP & Frankel LLP Services, Inc. 2 Hanson Place
1735 Market Street 1177 Avenue of the P.O. Box 4739 Brooklyn, NY 11217-1431
Philadelphia, PA 19103-7599 Americas Houston, TX 77210-4739
New York, NY 10036-2714
</Table>
REQUIRED FEDERAL INCOME TAX INFORMATION (UNAUDITED)
We are required by Internal Revenue Code to advise you within 60 days of the
Fund's fiscal year end as to the federal tax status of dividends paid by the
Fund during its fiscal year ended March 31, 2005.
AIM Tax-Free Cash Reserve Portfolio Institutional Class paid ordinary dividends
in the amount of $0.0123 during its tax year ended March 31, 2005. Of this
amount, 100% qualified as tax-exempt interest dividends for federal income tax
purposes.
For the purpose of preparing your annual federal income tax returns, however,
you should report the amounts as reflected on the Statement of Tax-Exempt
Income.
The Fund provides a complete list of its holdings four times in each fiscal
year, at the quarter-ends. For the second and fourth quarters, the lists appear
in the Fund's semiannual and annual reports to shareholders. For the first and
third quarters, the Fund files the lists with the Securities and Exchange
Commission (SEC) on Form N-Q. Shareholders can look up the Fund's Forms N-Q on
the SEC's Web site at sec.gov. Copies of the Fund's Forms N-Q may be reviewed
and copied at the SEC's Public Reference Room at 450 Fifth Street, N.W.,
Washington, D.C. 20549-0102. You can obtain information on the operation of the
Public Reference Room, including information about duplicating fee charges, by
calling 1-202-942-8090 or by electronic request at the following e-mail address:
publicinfo@sec.gov. The SEC file numbers for the Fund are 811-2731 and 2-58286.
The Fund's most recent portfolio holdings, as filed on Form N-Q, are also
available at AIMinvestments.com.
A description of the policies and procedures that the Fund uses to determine how
to vote proxies relating to portfolio securities is available without charge,
upon request, from our Client Services department at 800-659-1005 or on the AIM
Web site, AIMinvestments.com. On the home page, scroll down and click on the AIM
Funds Proxy Policy. The information is also available on the SEC Web site,
sec.gov.
Information regarding how the Fund voted proxies related to its portfolio
securities during the 12 months ended June 30, 2004, is available at our Web
site. Go to AIMinvestments.com, access the About Us tab, click on Required
Notices and then click on Proxy Voting Activity. Next, select the Fund from the
drop-down menu. The information is also available on the SEC Web site, sec.gov.
[YOUR GOALS. OUR SOLUTIONS.]
--REGISTERED TRADEMARK--
[AIM INVESTMENTS LOGO]
--REGISTERED TRADEMARK--
AIMinvestments.com TFIT-AR-1 Fund Management Company
TAX-FREE CASH RESERVE PORTFOLIO
Personal Investment Class
TAX-FREE INVESTMENTS TRUST (TFIT)
March 31, 2005
Annual Report
[COVER IMAGE]
[YOUR GOALS. OUR SOLUTIONS.]
[1980-2005 25TH --REGISTERED TRADEMARK-- [AIM INVESTMENTS LOGO]
CASH MANAGEMENT LOGO] --REGISTERED TRADEMARK--
TAX-FREE CASH RESERVE PORTFOLIO
DEAR SHAREHOLDER:
[GRAHAM This is the annual report on the performance of the Personal
PHOTO] Investment Class of the Tax-Free Cash Reserve Portfolio of
Tax-Free Investments Trust, a money market fund investing in
short-term municipal bonds of the highest credit ratings.
The report is for the fiscal year ended March 31, 2005.
ROBERT H. GRAHAM
The Tax-Free Cash Reserve Portfolio seeks to provide as
high a level of tax-exempt income as is consistent with
preservation of capital and maintenance of liquidity. The
Portfolio invests in high quality, short-term municipal
obligations, seeking to provide income exempt from federal
taxation. The Portfolio structure is driven to some extent
by the supply and availability of municipal securities.
Liquidity is managed with daily and weekly variable-rate
[WILLIAMSON demand notes.
PHOTO]
Through a combination of short-term cash management
vehicles and selective use of a longer maturity schedule for
higher yields, the Portfolio continued to provide attractive
returns. The Portfolio maintained a relatively short
MARK H. WILLIAMSON maturity structure to take advantage of any sudden rise in
market yields.
The Portfolio continued 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 Ratings. Portfolio ratings are subject to
change and are based on several factors, including an
analysis of a Portfolio's overall credit quality, market
price exposure and management.
The table below summarizes important Portfolio data as of
fiscal year-end.
<Table>
<Caption>
================================ ==============================
YIELD WEIGHTED AVERAGE MATURITY
7-DAY SEC YIELD* MONTHLY YIELD* RANGE END OF FISCAL YEAR
1.34% 1.17% 25-42 Days 30 Days
================================ ==============================
=================================================================
NET ASSETS AT CLOSE OF FISCAL YEAR
$10.9 MILLION
*The seven-day SEC yield and monthly yield represent annualized
results for the period, net of fees and expenses, and exclude any
realized capital gains or losses. Yields will fluctuate. Had the
advisor and distributor not waived fees and/or reimbursed
expenses, seven-day and monthly yields would have been lower.
=================================================================
</Table>
MARKET CONDITIONS AFFECTING MONEY MARKET FUNDS
Economic activity expanded at a moderate pace throughout the fiscal year,
according to Beige Book economic commentaries published by the Federal Reserve
(the Fed) that cover the period.
o Gross domestic product (GDP), generally considered the broadest measure of
economic activity, grew at an annualized rate of 4.4% during 2004.
o The S&P 500--Registered Trademark-- Index returned 6.69% during the fiscal
year.
o The Fed reported a moderate increase in consumer spending, although auto
sales were lackluster. Travel and tourism and most service industries
reported improvements, and manufacturing activity also expanded. Housing
and residential construction was robust, according to the March Beige
Book.
In an effort to forestall the inflation that may accompany robust economic
growth, the Fed increased the federal funds target rate seven times in 0.25%
increments during the reporting period, bringing the rate to 2.75% on March 22,
2005. (The federal funds target rate is a benchmark interest rate used by banks
for overnight loans to one another.) Despite the increases, the Fed said
monetary policy remained accommodative.
TAX-FREE CASH RESERVE PORTFOLIO
These rate increases helped boost yields on short-term investments such as
money market funds. The impact of changes in the federal funds target rate is
generally felt in money market funds approximately two weeks after the
announcement of an increase or decrease, but the change in yields may not be
equivalent to the change in the federal funds target rate. Management made no
changes to strategy as a result of federal funds target rate increases.
IN CONCLUSION
We are pleased to send you this report on your investment. AIM is committed to
the primary goals of safety, liquidity and yield in money market fund
management. We are also dedicated to customer service. Should you have comments
or questions about this report, please contact one of our representatives at
800-659-1005.
Sincerely,
<Table>
/s/ ROBERT H. GRAHAM /s/ MARK H. WILLIAMSON
Robert H. Graham Mark H. Williamson
Vice Chair & President, Tax-Free Investments Trust Chairman & President, A I M Advisors, Inc.
</Table>
May 20, 2005
The views and opinions expressed in this letter are those of A I M Advisors,
Inc. These views and opinions are subject to change at any time based on factors
such as market and economic conditions. These views and opinions may not be
relied upon as investment advice or recommendations, or as an offer for a
particular security. Statements of fact are from sources considered reliable,
but A I M Advisors, Inc. makes no representation or warranty as to their
completeness or accuracy. Although historical performance is no guarantee of
future results, these insights may help you understand our investment management
philosophy.
<Table>
<Caption>
===========================================
PORTFOLIO COMPOSITION BY MATURITY The number of days to maturity of each holding is determined in
accordance with the provisions of Rule 2a-7 under the Investment
IN DAYS, AS OF 3/31/05 Company Act of 1940.
1-7 78.6%
8-14 0.9
15-60 4.8
61-120 7.3
121-180 3.1
181-240 3.7 The unmanaged Standard & Poor's Composite Index of 500 Stocks (the
241+ 1.6 S&P 500 Index) is an index of common stocks frequently used as a
general measure of U.S. stock market performance.
===========================================
</Table>
THIS REPORT MUST BE ACCOMPANIED OR PRECEDED BY A CURRENTLY EFFECTIVE FUND
PROSPECTUS, WHICH CONTAINS MORE COMPLETE INFORMATION, INCLUDING FEES AND
EXPENSES. READ IT CAREFULLY BEFORE YOU INVEST OR SEND MONEY.
PERFORMANCE QUOTED IS PAST PERFORMANCE AND CANNOT GUARANTEE COMPARABLE FUTURE
RESULTS; CURRENT PERFORMANCE MAY BE LOWER OR HIGHER. VISIT AIMINVESTMENTS.COM
FOR THE MOST RECENT MONTH-END PERFORMANCE.
AN INVESTMENT IN THE FUND IS NOT INSURED OR GUARANTEED BY THE FEDERAL DEPOSIT
INSURANCE CORPORATION OR ANY OTHER GOVERNMENT AGENCY AND IS NOT A DEPOSIT OR
OTHER OBLIGATION OF, OR GUARANTEED BY, A DEPOSITORY INSTITUTION. ALTHOUGH THE
FUND SEEKS TO PRESERVE THE VALUE OF YOUR INVESTMENT AT $1.00 PER SHARE, IT IS
POSSIBLE TO LOSE MONEY BY INVESTING IN THE FUND.
TAX-FREE CASH RESERVE PORTFOLIO
CALCULATING YOUR ONGOING FUND EXPENSES
<Table>
EXAMPLE expenses that you paid over the period. and expenses may not be used to estimate
Simply divide your account value by the actual ending account balance or
As a shareholder of the Fund, you incur $1,000 (for example, an $8,600 account expenses you paid for the period. You
ongoing costs, including management fees value divided by $1,000 = 8.6), then may use this information to compare the
and other Fund expenses. This example is multiply the result by the number in the ongoing costs of investing in the Fund
intended to help you understand your table under the heading entitled "Actual and other funds. To do so, compare this
ongoing costs (in dollars) of investing Expenses Paid During Period" to estimate 5% hypothetical example with the 5%
in the Fund and to compare these costs the expenses you paid on your account hypothetical examples that appear in the
with ongoing costs of investing in other during this period. shareholder reports of the other funds.
mutual funds. The example is based on an
investment of $1,000 invested at the HYPOTHETICAL EXAMPLE FOR COMPARISON Please note that the expenses shown in
beginning of the period and held for the PURPOSES the table are meant to highlight your
entire period October 1, 2004, through ongoing costs only. Therefore, the
March 31, 2005. The table below also provides hypothetical information is useful in
information about hypothetical account comparing ongoing costs only, and will
ACTUAL EXPENSES values and hypothetical expenses based not help you determine the relative
on the Fund's actual expense ratio and total costs of owning different funds.
The table below provides information an assumed rate of return of 5% per year
about actual account values and actual before expenses, which is not the Fund's
expenses. You may use the information in actual return. The hypothetical account
this table, together with the amount you values
invested, to estimate the
====================================================================================================================================
ACTUAL HYPOTHETICAL
(5% ANNUAL RETURN BEFORE EXPENSES)
BEGINNING ACCOUNT ENDING ACCOUNT EXPENSES ENDING ACCOUNT EXPENSES
SHARE VALUE VALUE PAID DURING VALUE PAID DURING
CLASS (10/01/04) (3/31/05)(1) PERIOD(2) (3/31/05) PERIOD(2)
Personal Investment $1,000.00 $1,005.00 $3.85 $1,021.09 $3.88
(1) The actual ending account value is based on the actual total return of the Fund for the period October 1, 2004, to March 31,
2005, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund's expense ratio
and a hypothetical annual return of 5% before expenses. The actual total cumulative return at net asset value for the period October
1, 2004, to March 31, 2005, was 0.50% for Personal Investment Class shares.
(2) Expenses are equal to the Fund's annualized expense ratio (0.77% for Personal Investment Class shares) multiplied by the average
account value over the period, multiplied by 182/365 (to reflect the one-half year period).
====================================================================================================================================
</Table>
SCHEDULE OF INVESTMENTS
March 31, 2005
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
MUNICIPAL NOTES-99.22%
ALABAMA-1.68%
Alabama (State of) Public School & College
Authority; Capital Improvement Series 1999
D RB
5.25%, 08/01/05 AA Aa3 $ 1,425 $ 1,440,302
- ---------------------------------------------------------------------------------------
Birmingham (City of) Public Educational
Building Authority Student Housing (CHF UAB
II LLC); VRD Series 2005 A RB (LOC-Regions
Bank Alabama)
2.30%, 07/01/37(b)(c) -- VMIG-1 6,000 6,000,000
- ---------------------------------------------------------------------------------------
Birmingham (City of) Public Parks &
Recreation Board (Children's Zoo Project);
VRD Series 2002 RB (LOC-AmSouth Bank)
2.40%, 05/01/07(b)(c) -- VMIG-1 1,725 1,725,000
- ---------------------------------------------------------------------------------------
Birmingham (City of) Public Parks &
Recreation Board (YMCA Project); Refunding
VRD Series 1996 RB (LOC-AmSouth Bank)
2.36%, 06/01/16(b)(c) -- VMIG-1 1,770 1,770,000
- ---------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Birmingham
Waterworks & Sewer Board); VRD Series
2002-6009 Class A COP (Acquired 11/05/02;
Cost $4,100,000)
2.32%, 01/01/43(c)(d)(e) A-1+ -- 4,100 4,100,000
- ---------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Birmingham
Waterworks & Sewer Board); VRD Series
2003-0007 Class A COP (Acquired 04/16/03;
Cost $7,370,000)
2.32%, 01/01/43(c)(d)(e) A-1+ -- 7,370 7,370,000
- ---------------------------------------------------------------------------------------
Elmore (County of) Ridge Improvement
District; Special Assessment VRD Series
2000 RB (LOC-AmSouth Bank)
2.30%, 10/01/25(b)(c) -- VMIG-1 13,335 13,335,000
- ---------------------------------------------------------------------------------------
Homewood (City of) Medical Clinic Board
(Lakeshore Foundation Project); Lease
Revenue VRD Series 2000 RB (LOC-AmSouth
Bank)
2.38%, 11/01/24(b)(c) A-1 -- 7,255 7,255,000
- ---------------------------------------------------------------------------------------
Mobile (City of); Port City Medical Clinic
Board (Infirmary Health); VRD Series 1998 B
RB
2.30%, 02/01/25(c)(f) A-1 VMIG-1 5,000 5,000,000
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
<Caption>
ALABAMA-(CONTINUED)
Montgomery (City of) Industrial Development
Board (Industrial Partners Project);
Refunding VRD Series 1989 IDR (LOC-SunTrust
Bank)
2.30%, 01/01/07(b)(c) -- Aa2 $ 430 $ 430,000
- ---------------------------------------------------------------------------------------
Oxford (City of); Unlimited Tax VRD Series
2003 GO Wts. (LOC- Branch Banking & Trust
Co.)
2.30%, 07/01/15(b)(c) -- VMIG-1 5,180 5,180,000
- ---------------------------------------------------------------------------------------
Tuscaloosa (City of) Educational Building
Authority (Stillman College Project);
Refunding Capital Improvement VRD Series
2002 A RB (LOC-AmSouth Bank)
2.40%, 10/01/23(b)(c) -- VMIG-1 2,519 2,519,000
=======================================================================================
56,124,302
=======================================================================================
ALASKA-0.04%
Alaska (State of) Industrial Development &
Export Authority (Safeway Inc. Projects);
Refunding VRD Series 1991 IDR (LOC-Deutsche
Bank A.G.)
2.15%, 06/01/05(b)(g)(h) A-1 -- 1,340 1,340,000
=======================================================================================
ARIZONA-0.83%
Apache (County of) Industrial Development
Authority (Tucson Electric Power Co.);
Floating Rate Series 1983 A IDR (LOC-Credit
Suisse First Boston)
2.35%, 12/15/18(b)(c) A-1 VMIG-1 8,225 8,225,000
- ---------------------------------------------------------------------------------------
Apache (County of) Industrial Development
Authority (Tucson Electric Power Co.-
SpringerValley); VRD Series 1985 IDR
(LOC-Credit Suisse First Boston)
2.35%, 12/01/20(b)(c) A-1 VMIG-1 1,000 1,000,000
- ---------------------------------------------------------------------------------------
Casa Grande (City of) Industrial Development
Authority (Center Park Apartments
Projects); Refunding Multi-Family Housing
VRD Series 2001 A IDR (CEP- Federal
National Mortgage Association)
2.33%, 06/15/31(c) -- VMIG-1 2,010 2,010,000
- ---------------------------------------------------------------------------------------
</Table>
F-1
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
ARIZONA-(CONTINUED)
Casa Grande (City of) Industrial Development
Authority (Quail Gardens Apartments);
Refunding Multi-Family Housing VRD Series
2001 A IDR (CEP-Federal National Mortgage
Association)
2.33%, 06/15/31(c) -- VMIG-1 $ 1,550 $ 1,550,000
- ---------------------------------------------------------------------------------------
Mesa (City of); Utility System Series 1995 RB
5.38%, 07/01/05(g)(i) AAA Aaa 1,000 1,018,554
- ---------------------------------------------------------------------------------------
Phoenix (City of) Industrial Development
Authority (Lynwood Apartments Project);
Refunding VRD Series 1994 IDR (CEP- Federal
Home Loan Bank of San Francisco)
2.34%, 10/01/25(c) A-1+ -- 5,825 5,825,000
- ---------------------------------------------------------------------------------------
Pima (County of) Industrial Development
Authority (El Dorado Hospital); VRD Series
2004 RB (LOC-Branch Banking & Trust Co.)
2.27%, 04/01/38(b)(c) -- VMIG-1 6,000 6,000,000
- ---------------------------------------------------------------------------------------
Pima (County of) Industrial Development
Authority (Tucson Electric Power
Co.-Irvington Road Project); VRD Series
1982 IDR (LOC-Credit Suisse First Boston)
2.32%, 10/01/22(b)(c) A-1 VMIG-1 2,000 2,000,000
=======================================================================================
27,628,554
=======================================================================================
ARKANSAS-0.07%
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.)
2.35%, 07/01/08(b)(c)(j) -- -- 2,500 2,500,000
=======================================================================================
CALIFORNIA-0.91%
California (State of) Economic Recovery; VRD
Series 2004 C-6 RB (LOC-Citibank N.A.)
2.28%, 07/01/23(b)(k) A-1+ VMIG-1 29,050 29,050,000
- ---------------------------------------------------------------------------------------
San Diego (County of) (Friends of Chabad
Lubavitch); VRD Series 2003 COP
(LOC-Comerica Bank)
2.38%, 01/01/23(b)(c)(j) -- -- 1,410 1,410,000
=======================================================================================
30,460,000
=======================================================================================
COLORADO-3.26%
Adams & Weld (Counties of) School District
No. 27J Brighton; Unlimited Tax Series 2004
GO
2.50%, 12/01/05(f) AAA Aaa 1,950 1,955,505
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
<Caption>
- ---------------------------------------------------------------------------------------
COLORADO-(CONTINUED)
Colorado (State of) Educational & Cultural
Facilities Authority (Denver Art Museum
Project); VRD Series 2004 RB (LOC-Wells
Fargo Bank N.A.)
2.28%, 01/01/34(b)(c) A-1+ -- $ 4,950 $ 4,950,000
- ---------------------------------------------------------------------------------------
Colorado (State of) Educational & Cultural
Facilities Authority (Regis Jesuit High
School Project); VRD Series 2003 RB
(LOC-Wells Fargo Bank N.A.)
2.28%, 12/01/33(b)(c) A-1+ -- 5,415 5,415,000
- ---------------------------------------------------------------------------------------
Colorado (State of) Educational & Cultural
Facilities Authority (Southeastern Baptist
Theological Seminary); VRD Series 2005
(LOC-Branch Banking & Trust Co.)
2.27%, 03/01/25(b)(c) -- VMIG-1 8,955 8,955,000
- ---------------------------------------------------------------------------------------
Colorado (State of) Health Facilities
Authority (Arapahoe House Project); VRD
Series 2004 A RB (LOC-Wells Fargo Bank
N.A.)
2.35%, 04/01/24(b)(c) A-1+ -- 1,200 1,200,000
- ---------------------------------------------------------------------------------------
Colorado (State of) Health Facilities
Authority (Bethesda Collinwood); Refunding
VRD Series 2004 B RB (LOC-ABN AMRO Bank
N.V.)
2.30%, 08/01/34(b)(c) A-1 -- 4,230 4,230,000
- ---------------------------------------------------------------------------------------
Colorado (State of) Health Facilities
Authority (Bethesda Living Centers);
Refunding VRD Series 2004 A RB (LOC-ABN
AMRO Bank N.V.)
2.30%, 08/01/34(b)(c) A-1 -- 5,270 5,270,000
- ---------------------------------------------------------------------------------------
Colorado (State of) Health Facilities
Authority (Bethesda Living Centers
Project); VRD Series 1999 RB (LOC-ABN AMRO
Bank N.V.)
2.30%, 08/15/30(b)(c) A-1 -- 9,855 9,855,000
- ---------------------------------------------------------------------------------------
Colorado (State of) Health Facilities
Authority (Catholic Health Initiatives);
VRD Series 2000 B RB
2.30%, 12/01/20(c) A-1+ VMIG-1 2,000 2,000,000
- ---------------------------------------------------------------------------------------
Colorado (State of) Health Facilities
Authority (Christian Living Project);
Refunding VRD Series 2002 A RB (LOC- U.S.
Bank N.A.)
2.32%, 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.)
2.28%, 12/01/20(b)(c) A-1+ -- 3,580 3,580,000
- ---------------------------------------------------------------------------------------
</Table>
F-2
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
COLORADO-(CONTINUED)
Colorado (State of) Health Facilities
Authority (Golden West Manor Inc. Project);
VRD Series 2002 A RB (LOC-U.S. Bank N.A.)
2.32%, 07/01/32(b)(c) A-1+ -- $ 4,210 $ 4,210,000
- ---------------------------------------------------------------------------------------
Colorado Springs (City of) (Pikes Peak Mental
Health); VRD Series 2003 RB (LOC-Wells
Fargo Bank N.A.)
2.28%, 03/15/23(b)(c) A-1+ -- 3,615 3,615,000
- ---------------------------------------------------------------------------------------
Concord (Metropolitan District of); Refunding
& Improvement Unlimited Tax Series 2004 GO
(LOC-Wells Fargo Bank N.A.)
2.25%, 12/01/05(b)(g)(l) A-1+ -- 1,585 1,585,000
- ---------------------------------------------------------------------------------------
Crystal Valley (Metropolitan) District No. 1;
VRD Series 2004 RB (LOC-Wells Fargo Bank
N.A.)
2.28%, 10/01/34(b)(c) A-1+ -- 2,795 2,795,000
- ---------------------------------------------------------------------------------------
Denver (City & County of) (Cottonwood Creek);
Refunding Multi-Family Housing Revenue VRD
Series 1989 A RB (CEP- Federal Home Loan
Mortgage Corp.) (Acquired 12/28/04; Cost
$1,000,000)
2.30%, 04/15/14(c)(e) A-1+ -- 1,000 1,000,000
- ---------------------------------------------------------------------------------------
Denver (City & County of) (Kentucky Circle
Village Project); VRD Series 2000 RB (LOC-
Mountain States Bank, U.S. Bank N.A.)
2.32%, 10/01/29(b)(c) A-1+ -- 1,740 1,740,000
- ---------------------------------------------------------------------------------------
Denver (City & County of) (Wellington E Web);
Refunding VRD Series 2003 C2 COP
2.30%, 12/01/29(c)(f) A-1+ VMIG-1 2,245 2,245,000
- ---------------------------------------------------------------------------------------
Denver (City & County of) (Colorado
Convention Center Project); Excise Tax VRD
Series 2001 B RB
2.30%, 09/01/25(c)(f) A-1+ VMIG-1 2,905 2,905,000
- ---------------------------------------------------------------------------------------
Idaho Springs (City of); (Safeway Inc.
Project); Refunding VRD Series 1993 IDR
(LOC-Deutsche Bank A.G.)
2.15%, 06/01/05(b)(g)(h) A-1+ -- 940 940,000
- ---------------------------------------------------------------------------------------
Jefferson (County of) School District No.
R-001; Series 2004 A TAN
3.00%, 06/30/05 SP-1+ MIG-1 30,000 30,109,955
- ---------------------------------------------------------------------------------------
Jefferson (County of) Section 14 Metropolitan
District; Refunding Unlimited Tax Series
2004 GO (LOC-U.S. Bank N.A.)
2.25%, 12/01/05(b)(g)(l) A-1+ -- 1,200 1,200,000
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
<Caption>
COLORADO-(CONTINUED)
Kipling Ridge (Metropolitan) District; VRD
Unlimited Tax Series 2005 GO (LOC-U.S. Bank
N.A.)
2.32%, 12/01/23(b)(c) A-1+ -- $ 3,725 $ 3,725,000
- ---------------------------------------------------------------------------------------
Lafayette (City of) Exempla Improvement
District (Special Improvement No. 2-01);
Refunding Special Assessment VRD Series
2002 RB (LOC-Wells Fargo Bank N.A.)
2.32%, 12/01/22(b)(c) A-1+ -- 1,000 1,000,000
- ---------------------------------------------------------------------------------------
Westminster (City of) Water & Wastewater
Utility Enterprise; VRD Series 2002 RB
2.32%, 12/01/22(c)(f) A-1+ VMIG-1 1,415 1,415,000
=======================================================================================
109,295,460
=======================================================================================
CONNECTICUT-0.04%
Connecticut (State of) Development Authority
(Central Vermont Public Service); Floating
Rate Series 1985 PCR (LOC-Royal Bank of
Scotland)
2.05%, 12/01/15(b)(m) A-1+ -- 1,400 1,400,000
=======================================================================================
DELAWARE-0.25%
Delaware (State of) Economic Development
Authority (Independent School Inc.
Project); VRD Series 2003 RB (LOC-Royal
Bank of Scotland)
2.28%, 07/01/33(b)(c) A-1+ -- 8,250 8,250,000
=======================================================================================
DISTRICT OF COLUMBIA-1.86%
District of Columbia (American Library
Association); VRD Series 2005 RB (LOC-Bank
of America, N.A.)
2.32%, 02/01/35(b)(c) -- VMIG-1 3,175 3,175,000
- ---------------------------------------------------------------------------------------
District of Columbia (American Psychology
Association); VRD Series 2003 RB (LOC-Bank
of America, N.A.)
2.35%, 03/01/28(b)(c) A-1+ -- 970 970,000
- ---------------------------------------------------------------------------------------
District of Columbia (Consortium Issue); VRD
Series 1998 RB (LOC-Wachovia Bank, N.A.)
2.29%, 07/01/23(b)(c) A-1 -- 15,755 15,755,000
- ---------------------------------------------------------------------------------------
District of Columbia (Resources for the
Future Inc.); VRD Series 1998 RB
(LOC-Wachovia Bank, N.A.)
2.35%, 08/01/29(b)(c) A-1 -- 2,015 2,015,000
- ---------------------------------------------------------------------------------------
District of Columbia (The John F. Kennedy
Center for the Performing Arts); VRD
Series 1999 RB
2.26%, 10/01/29(c)(f) A-1+ VMIG-1 19,820 19,820,000
- ---------------------------------------------------------------------------------------
</Table>
F-3
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA-(CONTINUED)
District of Columbia Pooled Loan Program
(American Council on Education); VRD Series
1998 A RB (LOC-Bank of America, N.A.)
(Acquired 01/06/08; Cost $10,000,000)
2.30%, 01/01/29(b)(c)(e) A-1+ -- $10,000 $ 10,000,000
- ---------------------------------------------------------------------------------------
District of Columbia; Refunding Unlimited Tax
Series 1993 B-1 GO
5.30%, 06/01/05(f) AAA Aaa 6,000 6,032,755
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (District of Columbia Water
& Sewer Authority); VRD Series 2003 A12 RB
(Acquired 02/24/03; Cost $4,640,000)
2.35%, 10/01/17(c)(d)(e) -- VMIG-1 4,640 4,640,000
=======================================================================================
62,407,755
=======================================================================================
FLORIDA-3.99%
ABN AMRO Munitops Ctfs. Trust (County of
Escambia); Refunding Florida Non-AMT VRD
Series 2002-24 Ctfs. (Acquired 10/24/02;
Cost $5,000,000)
2.31%, 10/01/10(c)(d)(e) -- VMIG-1 5,000 5,000,000
- ---------------------------------------------------------------------------------------
Alachua (County of) Health Facilities
Authority (Shands Teaching Hospital and
Clinics Inc.); VRD Series 2002 A RB
(LOC-SunTrust Bank)
2.29%, 12/01/12(b)(k) -- VMIG-1 10,485 10,485,000
- ---------------------------------------------------------------------------------------
Capital Projects Finance Authority (Capital
Projects Loan Program); VRD Series 1997 A
RB
2.31%, 08/01/17(c)(f) A-1+ -- 800 800,000
- ---------------------------------------------------------------------------------------
Collier (County of) Health Facilities
Authority (Cleveland Health Clinic); VRD
Hospital Series 2003 C-2 BAN (LOC- JPMorgan
Chase Bank)
2.11%, 05/11/05(b)(g)(l) A-1+ VMIG-1 3,500 3,500,000
- ---------------------------------------------------------------------------------------
Collier (County of) Industrial Development
Authority (Redlands Christian Migrant
Association Inc.); VRD Series 2001 RB (LOC-
Bank of America, N.A.)
2.35%, 12/01/26(b)(c)(j) -- -- 2,800 2,800,000
- ---------------------------------------------------------------------------------------
Dade (County of) Industrial Development
Authority (Dolphin's Stadium Project); VRD
Series 1985 D RB (LOC-Societe Generale)
2.26%, 01/01/16(b)(c) A-1+ -- 2,000 2,000,000
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
<Caption>
- ---------------------------------------------------------------------------------------
FLORIDA-(CONTINUED)
Florida (State of) Housing Finance Agency
(Huntington Place Apartments LP); VRD
Multifamily Housing Series 1985 GGG RB
(CEP-Federal National Mortgage Association)
2.28%, 12/01/13(c) A-1+ -- $ 4,500 $ 4,500,000
- ---------------------------------------------------------------------------------------
Jacksonville (City of) (Baptist Medical
Center); Commercial Paper Series 2004 RB
(LOC-Bank of America, N.A.)
1.93%, 07/27/05(b) A-1+ -- 18,000 18,000,000
- ---------------------------------------------------------------------------------------
Jacksonville (City of) Health Facilities
Authority (Samuel C. Taylor Foundation
Project); VRD Series 1998 RB (LOC-Bank of
America, N.A.) (Acquired 02/20/01; Cost
$2,600,000)
2.35%, 12/01/23(b)(c)(e)(j) -- -- 2,600 2,600,000
- ---------------------------------------------------------------------------------------
Jacksonville (City of) Health Facilities
Authority (University of Florida
Jacksonville Physicians, Inc.); VRD Series
2002 RB (LOC- Bank of America, N.A.)
2.35%, 06/01/22(b)(c) -- VMIG-1 12,140 12,140,000
- ---------------------------------------------------------------------------------------
Lee (County of) Industrial Development
Authority (Hope of Southwest Florida Inc.
Project); Refunding & Improvement VRD
Series 2004 RB (LOC-SunTrust Bank)
2.29%, 10/01/23(b)(j)(k) -- -- 4,000 4,000,000
- ---------------------------------------------------------------------------------------
Miami-Dade (County of) Educational Facilities
Authority (Carlos Albizu University
Project); VRD Series 2000 RB (LOC-Bank of
America, N.A.)
2.35%, 12/01/25(b)(c)(j) -- -- 9,200 9,200,000
- ---------------------------------------------------------------------------------------
Miami-Dade (County of) Industrial Development
Authority (Palmer Trinity Private School
Project); VRD Series 1999 IDR (LOC-Bank of
America, N.A.)
2.35%, 12/01/19(b)(c)(j) -- -- 3,100 3,100,000
- ---------------------------------------------------------------------------------------
Morgan Stanley & Co. Inc. Trust Floater Ctfs.
(State of Florida Department of
Environmental Protection); Floating Rate
Trust Ctfs. VRD Series 2002-722 RB
(Acquired 11/13/02; Cost $9,850,000)
2.32%, 07/01/22(c)(d)(e) A-1 -- 9,850 9,850,000
- ---------------------------------------------------------------------------------------
North Miami (City of) Educational Facilities
(Miami Country Day School Project); VRD
Series 1999 RB (LOC-Bank of America, N.A.)
2.35%, 08/01/19(b)(c)(j) -- -- 1,750 1,750,000
- ---------------------------------------------------------------------------------------
</Table>
F-4
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
FLORIDA-(CONTINUED)
Orange (County of) Health Facilities
Authority (Adventist Health System/Sunbelt
Inc.); VRD Series 1992 RB (LOC-SunTrust
Bank)
2.30%, 11/15/14(b)(c) A-1+ VMIG-1 $ 9,950 $ 9,950,000
- ---------------------------------------------------------------------------------------
Orange (County of) Health Facilities
Authority (Presbyterian Retirement
Communities Project); VRD Series 1998 RB
(LOC-Bank of America, N.A.)
2.35%, 11/01/28(b)(c)(j) -- -- 7,970 7,970,000
- ---------------------------------------------------------------------------------------
Orlando & Orange (Counties of) Expressway
Authority; VRD Sub Series 2005 A-3 RB
2.28%, 07/01/40(c)(f) A-1+ VMIG-1 10,000 10,000,000
- ---------------------------------------------------------------------------------------
Palm Beach (County of) Educational Facilities
Authority (Atlantic College Project);
Educational Facilities VRD Series 2001 RB
(LOC-Bank of America, N.A.)
2.35%, 12/01/31(b)(c)(j) -- -- 2,700 2,700,000
- ---------------------------------------------------------------------------------------
Palm Beach (County of) Health Facilities
Authority (Jupiter Medical Center Inc.);
VRD Series 1999 B RB (LOC-Wachovia Bank,
N.A.)
2.35%, 08/01/20(b)(c)(j) -- -- 7,250 7,250,000
- ---------------------------------------------------------------------------------------
Tampa (City of) (Agency for Community
Treatment DACCO Project); VRD Series 2001
RB (LOC-Bank of America, N.A.)
2.35%, 07/01/22(b)(c)(j) -- -- 5,080 5,080,000
- ---------------------------------------------------------------------------------------
University of North Florida Foundation, Inc.
(Parking System); VRD Series 1998 RB
(LOC-Wachovia Bank, N.A.)
2.30%, 05/01/28(b)(c) A-1 -- 800 800,000
=======================================================================================
133,475,000
=======================================================================================
GEORGIA-3.94%
ABN AMRO Munitops Ctfs. Trust (State of
Georgia); Non-AMT VRD Series 2004-15 Ctfs.
(Acquired 10/12/04; Cost $9,995,000)
2.32%, 04/06/05(c)(d)(e) -- VMIG-1 9,995 9,995,000
- ---------------------------------------------------------------------------------------
Bartow (County of) School District; Unlimited
Tax Series 2003 GO
3.00%, 11/01/05 AA+ -- 950 954,922
- ---------------------------------------------------------------------------------------
Burke (County of) Development Authority
(Oglethorpe Power Corp.); VRD Series 1994 A
PCR
2.30%, 01/01/19(c)(f) A-1+ VMIG-1 17,700 17,700,000
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
<Caption>
- ---------------------------------------------------------------------------------------
GEORGIA-(CONTINUED)
CDC Municipal Products, Inc. (Forsyth (County
of) School District); VRD Unlimited Tax
Series 2004-6 A GO (Acquired 10/20/04; Cost
$3,000,000)
2.32%, 02/01/18(c)(d)(e) A-1+ -- $ 3,000 $ 3,000,000
- ---------------------------------------------------------------------------------------
Clayton (County of) Development Authority
(Delta Airlines Project); Special
Facilities VRD Series 2000 A RB
(CEP-General Electric Capital Corp.)
2.32%, 06/01/29(c) A-1+ VMIG-1 12,000 12,000,000
- ---------------------------------------------------------------------------------------
Cobb (County of) Development Authority (YMCA
of Cobb County); VRD Series 2003 RB (LOC-
Branch Banking & Trust Co.)
2.27%, 12/01/25(b)(c) -- VMIG-1 1,000 1,000,000
- ---------------------------------------------------------------------------------------
Cobb (County of) Housing Authority (Tamarron
Apartments Project); Refunding Multi-Family
Housing VRD Series 2003 RB (CEP- Federal
Home Loan Mortgage Corp.)
2.30%, 03/01/24(c) A-1+ -- 4,820 4,820,000
- ---------------------------------------------------------------------------------------
DeKalb (County of) Hospital Authority (DeKalb
Medical Center Inc. Project); VRD Series
2000 B RB (LOC-Wachovia Bank, N.A.)
2.29%, 10/01/25(b)(c) -- VMIG-1 10,450 10,450,000
- ---------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (State of Georgia);
VRD Series 2000-1001 Class C COP (Acquired
07/26/00; Cost $20,000,000)
2.32%, 07/01/15(c)(d)(e) A-1+ -- 20,000 20,000,000
- ---------------------------------------------------------------------------------------
Floyd (County of) Development Authority
(Shorter College Project); VRD Series 1998
RB (LOC-SunTrust Bank)
2.43%, 06/01/17(b)(c) A-1+ -- 1,800 1,800,000
- ---------------------------------------------------------------------------------------
Fulton (County of) Development Authority
(Bridgeway Foundation for Education
Project); Educational Facilities VRD Series
2000 RB (LOC-Wachovia Bank, N.A.)
2.34%, 06/01/15(b)(c) A-1 -- 1,400 1,400,000
- ---------------------------------------------------------------------------------------
Fulton (County of) Development Authority
(Pace Academy Inc. Project); VRD Series
1998 RB (LOC-Bank of America, N.A.)
2.30%, 07/01/18(b)(c)(j) -- -- 5,375 5,375,000
- ---------------------------------------------------------------------------------------
Fulton (County of) Development Authority
(Woodward Academy Inc. Project); VRD Series
2002 RB (LOC-SunTrust Bank)
2.29%, 12/01/27(b)(c) -- VMIG-1 6,400 6,400,000
- ---------------------------------------------------------------------------------------
</Table>
F-5
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
GEORGIA-(CONTINUED)
Fulton (County of) Hospital Authority
(Northside Hospital Inc.); VRD Series 2003
A RAN (LOC-Wachovia Bank, N.A.)
2.29%, 10/01/18(b)(c) -- VMIG-1 $28,080 $ 28,080,000
- ---------------------------------------------------------------------------------------
Smyrna (City of) Hospital Authority
(Ridgeview Institute Inc. Project); VRD
Series 2002 RB (LOC- Wachovia Bank, N.A.)
2.34%, 11/01/27(b)(c) -- VMIG-1 2,060 2,060,000
- ---------------------------------------------------------------------------------------
Tallapoosa (City of) Development Authority
(U.S. Can Co. Project); VRD Series 1994
RB(LOC- Deutsche Bank A.G.)
2.35%, 02/01/15(b)(c) A-1 -- 2,000 2,000,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (City of Dalton); Utilities
VRD Series 2003 A02 RB (Acquired 08/25/04;
Cost $4,860,000)
2.35%, 01/01/12(c)(d)(e) -- VMIG-1 4,860 4,860,000
=======================================================================================
131,894,922
=======================================================================================
HAWAII-0.29%
Eagle Tax Exempt Trust (State of Hawaii); VRD
Series 2000-1101 COP (Acquired 01/11/01;
Cost $6,000,000)
2.32%, 12/01/16(c)(d)(e) A-1+ -- 6,000 6,000,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (State of Hawaii); Unlimited
Tax VRD Series 2003 A16 GO (Acquired
02/27/03; Cost $3,880,000)
2.35%, 07/01/18(c)(d)(e) -- VMIG-1 3,880 3,880,000
=======================================================================================
9,880,000
=======================================================================================
IDAHO-0.36%
Custer (County of) Pollution Control (Amoco
Oil Co.-Standard Oil Industry Project); VRD
Series 1983 RB
1.55%, 04/01/05(g)(h) A-1+ Aa1 10,000 10,000,000
- ---------------------------------------------------------------------------------------
Magic Valley Healthcare System Inc. (Magic
Valley Regional Medical Center Project);
VRD Series 2001 RB (LOC-Wells Fargo Bank
N.A.)
2.28%, 12/01/21(b)(c) -- VMIG-1 2,040 2,040,000
=======================================================================================
12,040,000
=======================================================================================
ILLINOIS-14.93%
ABN AMRO Munitops Ctfs. Trust (City of
Chicago); Refunding Multi-State Non-AMT VRD
Limited Tax Series 2001-34 Ctfs. (Acquired
11/15/01; Cost $10,000,000)
2.33%, 07/01/07(c)(d)(e) -- VMIG-1 10,000 10,000,000
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
<Caption>
- ---------------------------------------------------------------------------------------
ILLINOIS-(CONTINUED)
Bear Stearns Municipal Securities Trust Ctfs.
(State of Illinois Sales Tax); VRD Series
1998-25 A RB (Acquired 08/26/99; Cost
$10,000,000)
2.30%, 03/15/07(c)(d)(e) A-1 Aa2 $10,000 $ 10,000,000
- ---------------------------------------------------------------------------------------
Bear Stearns Municipal Securities Trust Ctfs.
(State of Illinois); VRD Series 2002-190 A
RB (Acquired 05/06/02; Cost $10,130,00)
2.30%, 06/05/14(c)(d)(e) A-1 -- 10,130 10,130,000
- ---------------------------------------------------------------------------------------
Chicago (City of); VRD Limited Tax Obligation
Tender Series 2004 GO (LOC-State Street
Bank & Trust Co.)
2.20%, 12/08/05(b)(g)(l) SP-1+ MIG-1 7,000 7,000,000
- ---------------------------------------------------------------------------------------
Chicago (City of); Refunding Water Revenue
Second Lien VRD Series 2004 RB
2.28%, 11/01/31(c)(f) A-1+ VMIG-1 30,000 30,000,000
- ---------------------------------------------------------------------------------------
Cook (County of) (Catholic Theological Union
Project); VRD Series 2005 RB (LOC-Bank of
Montreal)
2.30%, 02/01/35(b)(c) -- VMIG-1 4,000 4,000,000
- ---------------------------------------------------------------------------------------
Cook (County of) High School District No. 201
(J. Sterling Morton Township); School
Limited Tax Series 2004 GO
4.38%, 12/01/05(f) -- Aaa 5,000 5,074,796
- ---------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Chicago Park
District); VRD Unlimited Tax Series
2002-1306 A COP (Acquired 05/02/02; Cost
$5,500,000)
2.32%, 01/01/29(c)(d)(e) A-1+ -- 5,500 5,500,000
- ---------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Chicago
Public Building Commission); VRD Series
2003-0015 A COP (Acquired 05/14/03; Cost
$2,800,000)
2.32%, 12/01/14(c)(d)(e) A-1+ -- 2,800 2,800,000
- ---------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Chicago Water
& Sewer); VRD Series 2001-1308 COP
(Acquired 12/12/01; Cost $8,655,000)
2.32%, 11/01/26(c)(d)(e) A-1+ -- 8,655 8,655,000
- ---------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Chicago); VRD
Series 2001-1305 COP (Acquired 04/02/01;
Cost $4,950,000)
2.43%, 01/01/35(c)(d)(e) A-1+ -- 4,950 4,950,000
- ---------------------------------------------------------------------------------------
</Table>
F-6
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
ILLINOIS-(CONTINUED)
Eagle Tax Exempt Trust (County of Cook
Regional Transportation Authority); VRD
Series 2000-1303 COP (Acquired 03/26/01;
Cost $19,000,000)
2.32%, 07/01/23(c)(d)(e) A-1+ -- $19,000 $ 19,000,000
- ---------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (State of Illinois);
VRD Series 2000-1304 COP (Acquired
06/27/00; Cost $7,340,000)
2.32%, 06/01/21(c)(d)(e) A-1+ -- 7,340 7,340,000
- ---------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (State of Illinois);
VRD Unlimited Tax Series 2003-0023 A COP
(Acquired 06/12/03; Cost $3,775,000)
2.32%, 06/01/15(c)(d)(e) A-1+ -- 3,775 3,775,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (American College of Surgeons);
VRD Series 1996 RB (LOC-Northern Trust Co.)
2.17%, 08/01/26(b)(c) A-1+ -- 6,120 6,120,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (BAPS Inc. Project); VRD Series
2002 RB (LOC-Comerica Bank)
2.30%, 06/01/17(b)(c) A-1 -- 8,385 8,385,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (British Home for Retired Men &
Women); VRD Series 2001 RB (LOC-ABN AMRO
Bank N.V.)
2.30%, 11/01/27(b)(c) A-1 -- 8,740 8,740,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (Chicago Shakespeare Theater
Project); VRD Series 1999 RB (LOC-ABN AMRO
Bank N.V.) (Acquired 09/24/03; Cost
$4,100,000)
2.30%, 01/01/19(b)(c)(e) A-1 -- 4,100 4,100,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (Embers Elementary School
Project); Educational Facilities VRD Series
2002 RB (LOC-ABN AMRO Bank N.V.) (Acquired
11/04/03; Cost $2,250,000)
2.31%, 04/01/32(b)(c)(e) A-1 -- 2,250 2,250,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (Fenwick High School Project);
VRD Series 1997 RB (LOC-JPMorgan Chase
Bank)
2.30%, 03/01/32(b)(c) A-1+ -- 6,200 6,200,000
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
<Caption>
- ---------------------------------------------------------------------------------------
ILLINOIS-(CONTINUED)
Illinois (State of) Development Finance
Authority (Institute of Gas Technology
Project); VRD Series 1999 IDR (LOC-Bank of
Montreal)
2.33%, 09/01/24(b)(c) A-1+ -- $ 2,000 $ 2,000,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (Lyric Opera of Chicago Project);
VRD Series 1994 RB (LOC-Northern Trust Co.,
Bank of Montreal, JPMorgan Chase Bank)
2.30%, 12/01/28(b)(c) A-1+ VMIG-1 49,800 49,800,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (Mount Carmel High School
Project); VRD Series 2003 RB (LOC-JPMorgan
Chase Bank)
2.30%, 07/01/33(b)(c) -- VMIG-1 5,600 5,600,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (The Museum of Contemporary Art
Project); VRD Series 1994 RB (LOC- JPMorgan
Chase Bank, Northern Trust Co.)
2.30%, 02/01/29(b)(c) A-1 VMIG-1 14,950 14,950,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (North Shore Country Day School);
VRD Series 2003 RB (LOC-Northern Trust Co.)
2.30%, 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-ABN AMRO
Bank N.V.) (Acquired 01/29/03; Cost
$2,975,000)
2.30%, 07/01/41(b)(c)(e) 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)
2.30%, 07/01/33(b)(c) -- VMIG-1 4,600 4,600,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (West Central Illinois
Educational Project); VRD Series 2002 RB
(LOC-JPMorgan Chase Bank)
2.30%, 09/01/32(b)(c) -- VMIG-1 4,800 4,800,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Educational Facilities
Authority (Aurora University); VRD Cultural
Pooled Financing Series 1998 RB (LOC- Bank
of America, N.A.)
2.32%, 03/01/28(b)(c) A-1+ -- 6,670 6,670,000
- ---------------------------------------------------------------------------------------
</Table>
F-7
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
ILLINOIS-(CONTINUED)
Illinois (State of) Educational Facilities
Authority (Aurora University); VRD Series
2002 RB (LOC-Fifth Third Bank)
2.35%, 03/01/32(b)(c) -- VMIG-1 $ 3,300 $ 3,300,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Educational Facilities
Authority (Blackburn University); Cultural
Pooled Financing VRD Series 1999 RB
(LOC-Bank of America, N.A.)
2.32%, 07/01/29(b)(c) A-1+ -- 1,385 1,385,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Educational Facilities
Authority (Chicago Childrens Museum); VRD
Series 1994 RB (LOC-JPMorgan Chase Bank)
2.30%, 02/01/28(b)(c) A-1 VMIG-1 4,250 4,250,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Educational Facilities
Authority (Lincoln Park Society); VRD
Series 1999 RB (LOC-JPMorgan Chase Bank)
2.30%, 01/01/29(b)(c) A-1+ -- 2,825 2,825,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Educational Facilities
Authority (National Louis University); VRD
Series 1999 B RB (LOC-JPMorgan Chase Bank)
2.30%, 06/01/29(b)(c) A-1+ -- 2,300 2,300,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Finance Authority
(Illinois Institute of Technology); VRD
Series 2004 RB (LOC-Bank of Montreal)
2.30%, 12/01/24(b)(c) -- VMIG-1 5,000 5,000,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Finance Authority (Jewish
Charities); VRD Series 2004 A RN (LOC-Bank
of Montreal)
2.30%, 06/30/05(b)(c) A-1+ -- 7,630 7,630,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Finance Authority (Kohl
Children's Museum); VRD Series 2004 RB
(LOC-Fifth Third Bank)
2.30%, 07/01/34(b)(c) -- VMIG-1 2,680 2,680,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Finance Authority (Mercy
Alliance Project); VRD Series 2005 RB
(LOC-M&I Marshall & Ilsley Bank)
2.31%, 02/15/35(b)(c) -- VMIG-1 7,000 7,000,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Finance Authority
(Richard H. Driehaus Museum); VRD Series
2005 RB (LOC- Northern Trust Co.)
2.30%, 02/01/35(b)(c) -- VMIG-1 2,900 2,900,000
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
<Caption>
- ---------------------------------------------------------------------------------------
ILLINOIS-(CONTINUED)
Illinois (State of) Finance Authority
(Sunshine Through Golf Foundation Project);
VRD Series 2004 A RB (LOC-ABN AMRO Bank
N.V.)
2.31%, 11/01/24(b)(c) A-1 -- $ 2,100 $ 2,100,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Finance Authority; VRD
Series 2005 RAN (LOC-Bank of Montreal)
2.30%, 06/30/05(b)(c) A-1+ -- 3,300 3,300,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Health Facilities
Authority (Bensenville Home Society); VRD
Series 1989 A RB (LOC-JPMorgan Chase Bank)
2.32%, 02/15/19(b)(c) A-1 -- 1,100 1,100,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Health Facilities
Authority (OSF Healthcare System); VRD
Series 2002 RB (LOC-Fifth Third Bank)
2.27%, 11/15/27(b)(k) A-1+ VMIG-1 7,100 7,100,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Health Facilities
Authority (Peace Memorial Ministries); VRD
Series 2003 B RB (LOC-ABN AMRO Bank N.V.)
2.30%, 08/15/33(b)(c) A-1 -- 9,845 9,845,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Health Facilities
Authority (St. Lukes Medical Center); VRD
Series 1998 B RB
2.28%, 11/15/23(c)(f) A-1+ VMIG-1 1,000 1,000,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Health Facilities
Authority; Revolving Fund Pooled VRD Series
1985 C RB (LOC- JPMorgan Chase Bank)
2.30%, 08/01/15(b)(c) A-1+ VMIG-1 7,000 7,000,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Health Facilities
(Franciscan Eldercare Service); VRD Series
2001 RB (LOC-ABN AMRO Bank N.V.)
2.30%, 05/15/32(b)(c) A-1 -- 10,800 10,800,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Regional Transportation
Authority; Series 1994 A RB
5.80%, 06/01/05(f) AAA Aaa 3,300 3,321,356
- ---------------------------------------------------------------------------------------
Illinois (State of) Toll Highway Authority;
Refunding Toll Highway VRD Series 1998 B RB
2.25%, 01/01/16(c)(f) -- VMIG-1 15,900 15,900,000
- ---------------------------------------------------------------------------------------
2.25%, 01/01/17(c)(f) -- VMIG-1 4,600 4,600,000
- ---------------------------------------------------------------------------------------
Lombard (City of) (Clover Creek Apartments
Project); VRD Multi-Family Housing Series
2000 RB (CEP-Federal National Mortgage
Association)
2.31%, 12/15/30(c) A-1+ -- 14,855 14,855,000
- ---------------------------------------------------------------------------------------
</Table>
F-8
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
ILLINOIS-(CONTINUED)
Macon (County of) (Millikin University); VRD
Series 1999 RB
2.30%, 10/01/28(c)(f) A-1+ -- $ 4,500 $ 4,500,000
- ---------------------------------------------------------------------------------------
McCook (City of) (Illinois Saint Andrew
Society); VRD Series 1996 A RB
(LOC-Northern Trust Co.)
2.32%, 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-ABN AMRO Bank
N.V.)
2.30%, 12/01/14(b)(c) A-1 -- 2,470 2,470,000
- ---------------------------------------------------------------------------------------
Quincy (City of) (Blessing Hospital Project);
VRD Series 2004 RB (LOC-JPMorgan Chase
Bank)
2.30%, 11/15/33(b)(c) A-1+ VMIG-1 13,900 13,900,000
- ---------------------------------------------------------------------------------------
Rochelle (City of) Hospital Facility
(Rochelle Community Hospital Project); VRD
Series 2004 RB (LOC-JPMorgan Chase Bank.)
2.30%, 08/01/34(b)(c) -- VMIG-1 5,200 5,200,000
- ---------------------------------------------------------------------------------------
Rockford (City of) (Wesley Willows); VRD
Series 2002 RB (LOC-M&I Marshall & Isley
Bank)
2.31%, 04/01/32(b)(k) A-1 -- 9,000 9,000,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (Central Lake County Joint
Action Water Agency); VRD Series 2003 B18
RB (Acquired 02/19/03; Cost $3,150,000)
2.35%, 05/01/20(c)(d)(e) -- VMIG-1 3,150 3,150,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (City of Chicago Board of
Education); VRD Unlimited Tax Series 2000
A4 GO (Acquired 11/12/03; Cost $4,845,000)
2.11%, 11/10/05(d)(e)(g)(l)(n) -- VMIG-1 4,845 4,845,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (City of Chicago Emergency
Telephone System); VRD Limited Tax Series
2002 A44 GO (Acquired 08/02/02; Cost
$7,845,000)
2.35%, 01/01/20(c)(d)(e) -- VMIG-1 7,845 7,845,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (City of Chicago); VRD
Limited Tax Series 2000 A12 GO (Acquired
10/13/00; Cost $10,000,000)
2.35%, 01/01/23(c)(d)(e) -- VMIG-1 10,000 10,000,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (Cook County Regional
Transportation Authority); VRD Series 2001
A93 RB (Acquired 10/10/01; Cost $3,665,000)
2.35%, 07/01/27(c)(d)(e) -- VMIG-1 3,665 3,665,000
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
<Caption>
ILLINOIS-(CONTINUED)
Wachovia MERLOTs (Cook County Regional
Transportation Authority); VRD Unlimited
Tax Series 2002 A41 GO (Acquired 07/25/02;
Cost $17,775,000)
2.35%, 06/01/17(c)(d)(e) -- VMIG-1 $17,775 $ 17,775,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (Cook County); VRD Unlimited
Tax Series 2003 B11 GO (Acquired 01/29/03;
Cost $6,995,000)
2.35%, 11/15/25(c)(d)(e) -- VMIG-1 6,995 6,995,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (Regional Transportation
Authority); VRD Series 2001 A69 RB
(Acquired 11/09/04; Cost $11,770,000)
2.11%, 11/10/05(d)(e)(g)(l)(n) -- VMIG-1 11,770 11,770,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (State of Illinois); VRD
Unlimited Tax Series 2001 A124 GO (Acquired
11/26/01; Cost $7,905,000)
2.35%, 11/01/26(c)(d)(e) A-1 -- 7,905 7,905,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (University of Illinois);
VRD Series 2000 S GO (Acquired 03/20/00;
Cost $7,400,000)
2.35%, 04/01/30(c)(d)(e) -- VMIG-1 7,400 7,400,000
=======================================================================================
499,851,152
=======================================================================================
INDIANA-3.26%
ABN AMRO Munitops Ctfs. Trust (Township of
Wayne, County of Marion School Building
Corp.); Multi-State Non-AMT VRD Series
2003-27 RB (Acquired 11/12/03; Cost
$13,795,000)
2.33%, 07/15/11(c)(d)(e) -- VMIG-1 13,795 13,795,000
- ---------------------------------------------------------------------------------------
CDC Municipal Products, Inc. (Indiana State
of Transportation Finance Authority);
Highway VRD Series 2004-5 A RB (Acquired
10/21/04; Cost $2,000,000)
2.32%, 12/01/18(c)(d)(e) A-1+ -- 2,000 2,000,000
- ---------------------------------------------------------------------------------------
Indiana (State of) Bond Bank; Advance Funding
Program Series 2005 A RN
3.25%, 01/26/06 SP-1+ MIG-1 20,000 20,152,637
- ---------------------------------------------------------------------------------------
Indiana (State of) Educational Facilities
Authority (Indiana Wesleyan University
Project); Educational Facilities VRD Series
1998 A RB (LOC-JPMorgan Chase Bank)
2.30%, 06/01/28(b)(c) A-1+ -- 9,600 9,600,000
- ---------------------------------------------------------------------------------------
</Table>
F-9
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
INDIANA-(CONTINUED)
Indiana (State of) Educational Facilities
Authority (Wabash College Project);
Educational Facilities Series 2003 RB (LOC-
JPMorgan Chase Bank)
2.30%, 12/01/23(b)(c) -- VMIG-1 $ 5,870 $ 5,870,000
- ---------------------------------------------------------------------------------------
Indiana (State of) Health Facilities
Financing Authority (Community Hospitals
Project); VRD Hospital Series 2000 A RB
(LOC-Bank of America, N.A.)
2.30%, 07/01/28(b)(c) A-1+ -- 3,892 3,892,000
- ---------------------------------------------------------------------------------------
Indiana (State of) Health Facilities
Financing Authority (Deaconess Hospital
Inc.); Hospital VRD Series 1992 ACES RB
(LOC-Fifth Third Bank)
2.30%, 01/01/22(b)(c) A-1+ -- 11,920 11,920,000
- ---------------------------------------------------------------------------------------
Indiana (State of) Health Facilities
Financing Authority (Golden Years
Homestead); VRD Series 2002 A RB (LOC-Wells
Fargo Bank N.A.)
2.28%, 06/01/25(b)(c) A-1+ -- 6,500 6,500,000
- ---------------------------------------------------------------------------------------
Kokomo (City of) Hospital Authority (St.
Joseph's Hospital Center); Refunding
Hospital Series 1993 RB
6.35%, 08/15/05(g)(i) AAA Aaa 3,000 3,050,845
- ---------------------------------------------------------------------------------------
Petersburg (City of) Pollution Control
(Indianapolis Power & Light Co.); Refunding
VRD Series 1995 B PCR
2.30%, 01/01/23(c)(f) -- VMIG-1 23,000 23,000,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (County of Porter Jail
Building Corp.); VRD Series 2001 A58 RB
(Acquired 11/12/03; Cost $9,410,000)
2.11%, 11/10/05(d)(e)(g)(l)(n) -- VMIG-1 9,410 9,410,000
=======================================================================================
109,190,482
=======================================================================================
IOWA-1.20%
Iowa (State of) Finance Authority
(Morningside College Project); Private
College Facility VRD Series 2002 RB (LOC-
U.S. Bank N.A.)
2.35%, 10/01/32(b)(c) A-1+ -- 2,320 2,320,000
- ---------------------------------------------------------------------------------------
Iowa (State of) Finance Authority Retirement
Community (Deerfield Retirement Community);
VRD Series 2003 A RB (LOC-ABN AMRO Bank
N.V.)
2.30%, 12/01/33(b)(c) A-1 -- 15,000 15,000,000
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
<Caption>
- ---------------------------------------------------------------------------------------
IOWA-(CONTINUED)
Iowa (State of) Higher Education Loan
Authority (Graceland Private College); VRD
Series 2003 RB (LOC-Bank of America, N.A.)
2.35%, 02/01/33(b)(c) -- VMIG-1 $ 2,000 $ 2,000,000
- ---------------------------------------------------------------------------------------
Iowa (State of) School Corps.; School Cash
Anticipation Program Series 2004 A Wts.
Ctfs.
3.00%, 06/30/05(f) -- MIG-1 10,000 10,034,200
- ---------------------------------------------------------------------------------------
Iowa (State of); School Cash Anticipation
Program Series 2005 B RN
3.50%, 01/27/06(f) -- MIG-1 10,700 10,805,204
=======================================================================================
40,159,404
=======================================================================================
KANSAS-1.27%
Eagle Tax Exempt Trust (County of Wyandotte
Unified Government Utility System); VRD
Series 2004-0038 A COP (Acquired 09/08/04;
Cost $5,000,000)
2.32%, 09/01/21(c)(d)(e) A-1+ -- 5,000 5,000,000
- ---------------------------------------------------------------------------------------
Kansas (State of) Development Finance
Authority (Deaconess Long Term Care);
Health Facilities VRD Series 2000 C RB
(LOC-ABN AMRO Bank N.V.)
2.29%, 05/15/30(b)(c) -- VMIG-1 4,380 4,380,000
- ---------------------------------------------------------------------------------------
Leawood (City of); Unlimited Tax Temporary
Notes Series 2004-2 GO
3.00%, 10/01/05 -- MIG-1 14,000 14,091,450
- ---------------------------------------------------------------------------------------
Lenexa (City of) Health Care Facilities
(Lakeview Village Inc.); VRD Series 2002 B
RB (LOC-ABN AMRO Bank N.V.)
2.30%, 05/15/32(b)(c) A-1 -- 7,500 7,500,000
- ---------------------------------------------------------------------------------------
Olathe (City of) Health Facilities (Cedar
Lake Village Inc. Project); VRD Series 2004
RB (LOC-Bank of America, N.A.)
2.30%, 12/01/29(b)(c) -- VMIG-1 5,000 5,000,000
- ---------------------------------------------------------------------------------------
Olathe (City of) Recreational Facilities
(YMCA of Greater Kansas City Project); VRD
Series 2002 B RB (LOC-Bank of America,
N.A.)
2.35%, 11/01/18(b)(c) -- VMIG-1 3,100 3,100,000
- ---------------------------------------------------------------------------------------
Wichita (City of) Recreational Facilities
(YMCA of Wichita Project); VRD Series 1998
XI RB (LOC-Bank of America, N.A.) (Acquired
02/15/01; Cost $3,500,000)
2.35%, 08/01/09(b)(c)(e) A-1+ -- 3,500 3,500,000
=======================================================================================
42,571,450
=======================================================================================
</Table>
F-10
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
KENTUCKY-1.20%
Kentucky (State of) Area Development
Districts Financing Trust (Weekly
Acquisition-Ewing); Lease Program VRD
Series 2000 RB (LOC-Wachovia Bank, N.A.)
2.39%, 06/01/33(b)(c) A-1 -- $ 5,660 $ 5,660,000
- ---------------------------------------------------------------------------------------
Kentucky (State of) Asset/Liability
Commission; General Funding Series 2004 A
TRAN
3.00%, 06/29/05 SP-1+ MIG-1 15,000 15,052,221
- ---------------------------------------------------------------------------------------
Newport (City of) Kentucky League of Cities
Funding Trust; Lease Program VRD Series
2002 RB (LOC-U.S. Bank N.A.)
2.19%, 04/01/32(b)(c) -- VMIG-1 19,600 19,600,000
=======================================================================================
40,312,221
=======================================================================================
LOUISIANA-0.88%
Eagle Tax Exempt Trust (City of New Orleans);
VRD Series 2000-1801 COP (Acquired
10/10/00; Cost $6,000,000)
2.32%, 12/01/21(c)(d)(e) A-1+ -- 6,000 6,000,000
- ---------------------------------------------------------------------------------------
Louisiana (State of) Public Facilities
Authority (Glen Retirement System Project);
VRD Series 2001 RB (LOC-AmSouth Bank)
(Acquired 08/15/01; Cost $3,270,000)
2.40%, 08/01/16(b)(c)(e) -- VMIG-1 3,270 3,270,000
- ---------------------------------------------------------------------------------------
Louisiana (State of) Regional Transit
Authority; Lease Series 1998 Long Fund RB
6.13%, 05/01/05(g)(i) AAA Aaa 1,800 1,807,860
- ---------------------------------------------------------------------------------------
Louisiana (State of); Unlimited Tax Series
1995 A GO
6.00%, 05/15/05(g)(i) AAA Aaa 5,890 6,036,193
- ---------------------------------------------------------------------------------------
Series 1998 B GO
5.50%, 04/15/05(f) AAA Aaa 1,775 1,777,874
- ---------------------------------------------------------------------------------------
Series 2003 A GO
6.00%, 05/01/05(o) AAA Aaa 10,665 10,701,707
=======================================================================================
29,593,634
=======================================================================================
MAINE-0.20%
JPMorgan PUTTERs (State of Maine Turnpike
Authority); VRD Turnpike Series 2004 546 RB
(Acquired 10/28/04; Cost $1,800,000)
2.32%, 07/01/12(c)(d)(e) -- VMIG-1 1,800 1,800,000
- ---------------------------------------------------------------------------------------
Maine (State of) Housing Authority; Mortgage
Series 2003 E-1 RB
2.26%, 11/15/30(c)(f) A-1+ VMIG-1 4,785 4,785,000
=======================================================================================
6,585,000
=======================================================================================
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
<Caption>
MARYLAND-0.55%
Frederick (County of) Retirement Community
(Buckingham's Choice Inc. Project); VRD
Series 1997 C RB (LOC-Branch Banking &
Trust Co.)
2.31%, 01/01/27(b)(c) A-1 -- $ 6,000 $ 6,000,000
- ---------------------------------------------------------------------------------------
Howard (County of) Economic Development
(Norbel School Inc. Project); VRD Series
2001 RB (LOC-Branch Banking & Trust Co.)
2.27%, 02/01/28(b)(c) -- Aa3 4,785 4,785,000
- ---------------------------------------------------------------------------------------
Maryland (State of) Economic Development
Corp. (YMCA of Central Maryland Inc.
Project); VRD Series 2003 RB (LOC- Branch
Banking & Trust Co.)
2.27%, 04/01/28(b)(c) -- VMIG-1 3,800 3,800,000
- ---------------------------------------------------------------------------------------
Morgan Stanley & Co. Inc. Trust Floater Ctfs.
(State of Maryland Health & Higher
Educational Facilities Authority); VRD
Floating Rate Trust Ctfs. Series 2003-829
RB (Acquired 06/19/03; Cost $3,800,000)
2.32%, 08/15/38(c)(d)(e) -- VMIG-1 3,800 3,800,000
=======================================================================================
18,385,000
=======================================================================================
MASSACHUSETTS-0.65%
Massachusetts (State of) Health & Educational
Facilities Authority (Fairview Extended
Care Services Inc.); Refunding VRD Series
1997 B RB (LOC-Bank of America, N.A.)
2.29%, 01/01/21(b)(c) -- VMIG-1 21,620 21,620,000
=======================================================================================
MICHIGAN-4.91%
Bruce (Township of) Hospital Finance
Authority (Sisters Charity of St. Joseph);
Health Care System VRD Series 1988 A RB
1.80%, 05/02/05(f)(g)(h) A-1+ VMIG-1 2,000 2,000,000
- ---------------------------------------------------------------------------------------
Dearborn (City of) Economic Development Corp.
(Henry Ford Village Inc. Project); VRD
Limited Tax Series 1998 IDR (LOC- Comerica
Bank)
2.33%, 10/01/23(b)(c)(p) -- -- 8,600 8,600,000
- ---------------------------------------------------------------------------------------
Eagle Tax-Exempt Trust (City of Detroit
School District); VRD Unlimited Tax Series
2002-6014 A GO (Acquired 11/06/02; Cost
$7,105,000)
2.32%, 05/01/32(c)(d)(e) A-1+ -- 7,105 7,105,000
- ---------------------------------------------------------------------------------------
</Table>
F-11
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
MICHIGAN-(CONTINUED)
Kalamazoo (County of) Economic Development
Corp. (Heritage Community Project);
Refunding VRD Limited Tax Series 2004 RB
(LOC-Fifth Third Bank)
2.28%, 05/15/17(b)(c) A-1+ -- $ 5,405 $ 5,405,000
- ---------------------------------------------------------------------------------------
Lake Orion (City of) Community School
District; Refunding Unlimited Tax Series
1994 GO
7.00%, 05/01/05(g)(i) AAA Aaa 13,170 13,357,320
- ---------------------------------------------------------------------------------------
Michigan (State of) Higher Educational
Facilities Authority (Hope College);
Refunding VRD Limited Tax Series 2004 GO
(LOC-JPMorgan Chase Bank)
2.31%, 04/01/34(b)(c) A-1 -- 1,900 1,900,000
- ---------------------------------------------------------------------------------------
Michigan (State of) Hospital Finance
Authority (Holland Community Hospital); VRD
Series 2004 B RB (LOC-JPMorgan Chase Bank)
2.29%, 01/01/34(b)(c) -- VMIG-1 2,000 2,000,000
- ---------------------------------------------------------------------------------------
Michigan (State of) Municipal Bond Authority;
Series 2004 B-2 RN (LOC-JPMorgan Chase
Bank)
3.00%, 08/23/05(b) SP-1+ -- 15,000 15,083,289
- ---------------------------------------------------------------------------------------
Michigan (State of) Strategic Fund (Van Andel
Research Institute Project); VRD Limited
Tax Series 1997 RB (LOC-ABN AMRO Bank N.V.)
2.30%, 11/01/27(b)(c) A-1 -- 16,200 16,200,000
- ---------------------------------------------------------------------------------------
Michigan (State of) Strategic Fund (Washtenaw
Christian Project); VRD Limited Tax Series
2003 RB (LOC-ABN AMRO Bank N.V.)
2.29%, 11/01/33(b)(c) A-1 -- 1,500 1,500,000
- ---------------------------------------------------------------------------------------
Michigan (State of); Unlimited Tax Series
2004 A GO
3.50%, 09/30/05 SP-1+ MIG-1 40,000 40,283,819
- ---------------------------------------------------------------------------------------
Oakland (County of) Economic Development
Corp. (Rochester College Project); VRD
Limited Obligation Series 2001 RB (LOC-
JPMorgan Chase Bank)
2.30%, 08/01/21(b)(c) -- VMIG-1 6,900 6,900,000
- ---------------------------------------------------------------------------------------
Troy (City of) School District; Refunding
School Building & Site Unlimited Tax Series
2004 GO
3.00%, 05/01/05 AA Aa1 1,805 1,807,356
- ---------------------------------------------------------------------------------------
University of Michigan; VRD Hospital Series
1995 A RB
2.26%, 12/01/27(c) A-1+ VMIG-1 2,340 2,340,000
- ---------------------------------------------------------------------------------------
University of Michigan; VRD Medical Services
Plan Series 1995 A RB
2.26%, 12/01/27(c) A-1+ VMIG-1 3,160 3,160,000
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
<Caption>
MICHIGAN-(CONTINUED)
Wachovia MERLOTs (City of Detroit Sewage
Disposal System); VRD Series 2001 A112 RB
(Acquired 10/31/01; Cost $4,895,000)
2.35%, 07/01/32(c)(d)(e) -- VMIG-1 $ 4,895 $ 4,895,000
- ---------------------------------------------------------------------------------------
VRD Series 2003 B41 RB (Acquired 07/09/03;
Cost $6,755,000)
2.35%, 07/01/26(c)(d)(e) -- VMIG-1 6,755 6,755,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (City of Detroit Water
Supply System); VRD Series 2000 D RB
(Acquired 01/21/00; Cost $10,000,000)
2.35%, 07/01/29(c)(d)(e) -- VMIG-1 10,000 10,000,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (State of Michigan Hospital
Finance Authority); VRD Series 1997 X RB
(Acquired 12/12/03; Cost $15,000,000)
2.35%, 08/15/24(c)(d)(e) -- VMIG-1 15,000 15,000,000
=======================================================================================
164,291,784
=======================================================================================
MINNESOTA-3.59%
JPMorgan PUTTERs (State of Minnesota Public
Facilities Authority); VRD Drinking Water
Series 2002-319 COP (Acquired 07/31/03;
Cost $14,000,000)
2.30%, 03/01/21(c)(d)(e) A-1 -- 14,000 14,000,000
- ---------------------------------------------------------------------------------------
Minnesota (State of); Refunding Unlimited Tax
Series 2003 GO
2.00%, 08/01/05 AAA Aa1 2,240 2,244,075
- ---------------------------------------------------------------------------------------
Rochester (City of) Health Care Facilities
(Mayo Foundation); Commercial Paper Notes,
Adjustable Tender Series 1988 F
2.05%, 05/09/05 A-1+ -- 20,000 20,000,000
- ---------------------------------------------------------------------------------------
Series 2000 B
2.03%, 06/08/05 A-1+ -- 20,500 20,500,000
- ---------------------------------------------------------------------------------------
Series 2001 A
2.05%, 06/07/05 -- VMIG-1 15,000 15,000,000
- ---------------------------------------------------------------------------------------
Series 2001 B
2.05%, 06/07/05 -- VMIG-1 13,600 13,600,000
- ---------------------------------------------------------------------------------------
Series 2001 C
2.03%, 05/10/05 -- VMIG-1 17,600 17,600,000
- ---------------------------------------------------------------------------------------
St. Paul (City of) Housing & Redevelopment
Authority (Science Museum of Minnesota);
VRD Series 1997 A RB (LOC- U.S. Bank N.A.)
2.33%, 05/01/27(b)(c) -- VMIG-1 17,360 17,360,000
=======================================================================================
120,304,075
=======================================================================================
</Table>
F-12
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
MISSISSIPPI-2.17%
ABN AMRO Munitops Ctfs. Trust (State of
Mississippi Development Board-Jackson Water
& Sewer); Multi-State Non-AMT VRD Series
2002-22 Ctfs. (Acquired 09/10/03; Cost
$9,995,000)
2.33%, 09/01/10(c)(d)(e) -- VMIG-1 $ 9,995 $ 9,995,000
- ---------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (State of
Mississippi); VRD Unlimited Tax Series
2002-6018 A COP (Acquired 11/20/02; Cost
$3,200,000)
2.32%, 11/01/22(c)(d)(e) A-1+ -- 3,200 3,200,000
- ---------------------------------------------------------------------------------------
Mississippi (State of) Business Finance Corp.
(Jackson Medical Mall); VRD Series 2000 A
RB (LOC-JPMorgan Chase Bank)
2.30%, 11/01/18(b)(c) A-1 -- 5,300 5,300,000
- ---------------------------------------------------------------------------------------
Mississippi (State of) Business Finance Corp.
(Mississippi College Project); VRD Series
2003 RB (LOC-AmSouth Bank)
2.40%, 07/01/23(b)(c) -- VMIG-1 9,300 9,300,000
- ---------------------------------------------------------------------------------------
Perry (County of) (Leaf River Forest Products
Project); Refunding VRD Series 2002 PCR
(LOC- Citibank N.A.)
2.25%, 02/01/22(b)(c) A-1+ -- 36,500 36,500,000
- ---------------------------------------------------------------------------------------
University of Mississippi Educational
Building Corp. (Campus Improvements
Project); VRD Series 2000 RB
2.31%, 10/01/20(c)(f) -- VMIG-1 8,235 8,235,000
=======================================================================================
72,530,000
=======================================================================================
MISSOURI-1.15%
Missouri (State of) Development Finance Board
(Center of Creative Arts Project); Cultural
Facilities VRD Series 2004 RB (LOC-
National City Bank)
2.32%, 07/01/24(b)(c) -- VMIG-1 2,100 2,100,000
- ---------------------------------------------------------------------------------------
Missouri (State of) Health & Educational
Facilities Authority (Lutheran Senior
Services); Health Facilities VRD Series
2000 RB (LOC-U.S. Bank N.A.)
2.30%, 02/01/31(b)(c) -- VMIG-1 29,000 29,000,000
- ---------------------------------------------------------------------------------------
Missouri (State of) Health & Educational
Facilities Authority (Washington University
Project); Educational Facilities VRD Series
1985 B RB
2.33%, 09/01/10(c) A-1+ VMIG-1 1,100 1,100,000
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
<Caption>
MISSOURI-(CONTINUED)
Platte (County of) Industrial Development
Authority (Southern Platte County Athletic
Assoc. Inc.); Recreational Facilities VRD
Series 2005 A RB (LOC-Bank of America,
N.A.)
2.32%, 10/01/25(b)(c) -- VMIG-1 $ 2,140 $ 2,140,000
- ---------------------------------------------------------------------------------------
St. Louis (County of) Industrial Development
Authority (Friendship Village of South
County); VRD Series 2002 B IDR (LOC-ABN
AMRO Bank N.V.)
2.30%, 09/01/22(b)(c) A-1 -- 2,915 2,915,000
- ---------------------------------------------------------------------------------------
St. Louis (County of) Industrial Development
Authority (Whitfield School Inc.);
Educational Facilities Refunding VRD Series
2004 B IDR (LOC- U.S. Bank N.A.)
2.32%, 06/15/24(b)(c) A-1+ -- 1,400 1,400,000
=======================================================================================
38,655,000
=======================================================================================
MONTANA-0.34%
Montana (State of) Facility Finance Authority
(Mission Ridge Project); VRD Series 2002 RB
(LOC-ABN AMRO Bank N.V.)
2.31%, 08/01/27(b)(c)(j) -- -- 11,365 11,365,000
=======================================================================================
NEBRASKA-1.32%
Nebhelp Inc.; Multi-Mode VRD Series 1985 A RB
2.35%, 12/01/15(c)(f) A-1+ VMIG-1 5,995 5,995,000
- ---------------------------------------------------------------------------------------
VRD Series 1985 B RB
2.35%, 12/01/15(c)(f) A-1+ VMIG-1 3,590 3,590,000
- ---------------------------------------------------------------------------------------
VRD Series 1985 D RB
2.35%, 12/01/15(c)(f) A-1+ VMIG-1 5,865 5,865,000
- ---------------------------------------------------------------------------------------
VRD Series 1985 E RB
2.35%, 12/01/15(c)(f) A-1+ VMIG-1 28,635 28,635,000
=======================================================================================
44,085,000
=======================================================================================
NEVADA-0.48%
ABN AMRO Munitops Ctfs. Trust (County of
Washoe); Refunding VRD Limited Tax Series
2001-24 Single Asset Trust Ctfs. (Acquired
06/21/01; Cost $5,500,000)
2.33%, 07/01/09(c)(d)(e) -- VMIG-1 5,500 5,500,000
- ---------------------------------------------------------------------------------------
Carson (City of) (Tahoe Hospital Project);
Hospital VRD Series 2003 B RB (LOC- U.S.
Bank N.A.)
2.30%, 09/01/33(b)(c) A-1+ -- 10,500 10,500,000
=======================================================================================
16,000,000
=======================================================================================
</Table>
F-13
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
NEW HAMPSHIRE-0.69%
Morgan Stanley & Co. Inc. Trust Floater Ctfs.
(New Hampshire Higher Education & Health
Facilities Authority); Refunding VRD Series
2003-772 RB (Acquired 01/22/03; Cost
$5,475,000)
2.34%, 01/01/17(c)(d)(e) A-1 -- $ 5,475 $ 5,475,000
- ---------------------------------------------------------------------------------------
Morgan Stanley & Co. Inc. Trust Floater Ctfs.
(New Hampshire Higher Educational & Health
Facilities Authority); Refunding VRD Series
2003-866 RB (Acquired 10/23/03; Cost
$7,485,000)
2.34%, 08/15/21(c)(d)(e) A-1 -- 7,485 7,485,000
- ---------------------------------------------------------------------------------------
New Hampshire (State of) Higher Educational &
Health Facilities Authority (VHA-New
England Inc.); VRD Series 1985 G RB
2.30%, 12/01/25(c)(f) A-1+ -- 10,000 10,000,000
=======================================================================================
22,960,000
=======================================================================================
NEW JERSEY-0.13%
Salem (County of) Improvement Authority
(Friends Home at Woodstown Inc.); VRD
Series 2004 RB (LOC-Bank of America, N.A.)
2.30%, 04/01/34(b)(c) -- VMIG-1 4,440 4,440,000
=======================================================================================
NEW YORK-0.53%
ABN AMRO Munitops Ctfs. Trust (Triborough
Bridge & Tunnel Authority); Non-AMT VRD
Series 2002-31 Ctfs. (Acquired 03/24/04;
Cost $16,000,000)
2.30%, 11/15/10(c)(d)(e) -- VMIG-1 16,000 16,000,000
- ---------------------------------------------------------------------------------------
New York (State of) Dormitory Authority
(Rochester Institute of Technology); Series
1997 RB
6.00%, 08/15/05(f) AAA Aaa 1,815 1,841,296
=======================================================================================
17,841,296
=======================================================================================
NORTH CAROLINA-1.05%
North Carolina (State of) Capital Facilities
Finance Agency (Barton College);
Educational Facilities VRD Series 2004 RB
(LOC- Branch Banking & Trust Co.)
2.27%, 07/01/19(b)(c) -- VMIG-1 5,750 5,750,000
- ---------------------------------------------------------------------------------------
North Carolina (State of) Capital Facilities
Finance Agency (Elon College); VRD Series
2001 A RB (LOC-Bank of America, N.A.)
2.30%, 01/01/14(b)(c)(j) -- -- 8,115 8,115,000
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
<Caption>
NORTH CAROLINA-(CONTINUED)
North Carolina (State of) Capital Facilities
Finance Agency (Goodwill Community
Foundation Project); VRD Series 2002 RB
(LOC-Bank of America, N.A.)
2.30%, 04/01/22(b)(c)(j) -- -- $ 2,070 $ 2,070,000
- ---------------------------------------------------------------------------------------
North Carolina (State of) Capital Facilities
Finance Agency (Goodwill Industries of
Central North Carolina Inc.); VRD Series
2004 RB (LOC-Bank of America, N.A.)
2.30%, 12/01/24(b)(c)(j) -- -- 4,915 4,915,000
- ---------------------------------------------------------------------------------------
North Carolina (State of) Capital Facilities
Finance Agency (Thompson Children's Home);
Educational Facilities VRD Series 2000 RB
(LOC-Bank of America, N.A.)
2.30%, 12/01/20(b)(c)(j) -- -- 3,150 3,150,000
- ---------------------------------------------------------------------------------------
North Carolina (State of) Capital Facilities
Finance Agency (Wolfpack Club Project); VRD
Series 2002 RB (LOC-Bank of America, N.A.)
2.30%, 04/01/12(b)(c)(j) -- -- 6,800 6,800,000
- ---------------------------------------------------------------------------------------
North Carolina (State of) Medical Care
Commission; Refunding First Mortgage Health
Care Facilities VRD Series 2004 C RB (LOC-
SunTrust Bank)
2.27%, 11/01/27(b)(c) -- VMIG-1 3,500 3,500,000
- ---------------------------------------------------------------------------------------
University of North Carolina; VRD Series 2001
B RB
2.30%, 12/01/25(c) A-1+ VMIG-1 1,000 1,000,000
=======================================================================================
35,300,000
=======================================================================================
OHIO-3.66%
Akron, Bath & Copley (Townships of) Joint
Township Hospital District (Summa Health
Systems); VRD Series 2004 B RB (LOC-
JPMorgan Chase Bank)
2.29%, 11/01/34(b)(c) -- VMIG-1 5,000 5,000,000
- ---------------------------------------------------------------------------------------
Butler (County of) Health Care Facilities
(Lifesphere Project); Refunding &
Improvement VRD Series 2002 RB (LOC- U.S.
Bank N.A.)
2.30%, 05/01/27(b)(c) A-1+ -- 8,500 8,500,000
- ---------------------------------------------------------------------------------------
Cambridge (City of) Hospital Facilities
(Regional Medical Center Project);
Refunding & Improvement VRD Series 2001 RB
(LOC-National City Bank)
2.31%, 12/01/21(b)(c) -- VMIG-1 10,790 10,790,000
- ---------------------------------------------------------------------------------------
</Table>
F-14
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
OHIO-(CONTINUED)
Centerville (City of) (Bethany Lutheran
Village Project); Health Care VRD Series
1994 RB (LOC- National City Bank)
2.31%, 11/01/13(b)(c) -- VMIG-1 $ 2,905 $ 2,905,000
- ---------------------------------------------------------------------------------------
Cleveland Heights (City of); Limited Tax
Series 2004 BAN GO
2.00%, 08/18/05(p) -- -- 3,234 3,238,840
- ---------------------------------------------------------------------------------------
Cuyahoga (County of) Health Care Facilities
(Judson Retirement Community); Refunding
VRD Series 2000 RB (LOC-National City Bank)
2.31%, 11/15/19(b)(c) A-1 -- 700 700,000
- ---------------------------------------------------------------------------------------
Franklin (County of) Health Care Facilities
(First Community Village); Refunding &
Improvement VRD Series 2005 RB
(LOC-Sovereign Bank, KBC Bank N.V.)
2.33%, 03/01/36(b)(c) A-1+ -- 5,000 5,000,000
- ---------------------------------------------------------------------------------------
Lake (County of); Limited Tax Series 2004 BAN
GO
2.00%, 04/14/05(p) -- -- 5,250 5,251,154
- ---------------------------------------------------------------------------------------
Lorain (County of) (EMH Regional Medical
Center Project); Hospital Facilities VRD
Series 2001 RB (LOC-National City Bank)
2.34%, 05/01/26(b)(c)(p) -- -- 14,950 14,950,000
- ---------------------------------------------------------------------------------------
Mahoning (County of) Hospital Facilities
(Forum Health Obligation Group) VRD Series
1997 B RB
2.28%, 12/01/28(c)(f) A-1+ VMIG-1 19,100 19,100,000
- ---------------------------------------------------------------------------------------
VRD Series 2002 B RB (LOC- Fifth Third
Bank)
2.31%, 12/01/27(b)(c) -- VMIG-1 6,800 6,800,000
- ---------------------------------------------------------------------------------------
Marion (County of) (Pooled Lease Program);
Hospital Improvement VRD Series 1990 RB
(LOC- JPMorgan Chase Bank)
2.31%, 08/01/20(b)(c) A-1+ -- 1,325 1,325,000
- ---------------------------------------------------------------------------------------
Middleburg Heights (City of) (Southwest
General Health); Hospital Improvement
Series 1997 RB (LOC-Fifth Third Bank)
2.31%, 08/15/22(b)(c) A-1+ -- 5,405 5,405,000
- ---------------------------------------------------------------------------------------
Montgomery (County of) (St. Vincent DePaul
Society); Limited Obligation VRD Series
1996 RB (LOC-National City Bank)
2.31%, 12/01/10(b)(c) A-1 -- 1,735 1,735,000
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
<Caption>
OHIO-(CONTINUED)
Portage (County of) (Robinson Memorial
Hospital); Hospital VRD Series 2002 RB
(LOC-JPMorgan Chase Bank)
2.31%, 05/01/17(b)(c) -- VMIG-1 $ 6,255 $ 6,255,000
- ---------------------------------------------------------------------------------------
Reynoldsburg (City of) School District
(School Facilities Construction); Unlimited
Tax Series 2004 A BAN GO
2.75%, 06/24/05 -- MIG-1 5,900 5,910,765
- ---------------------------------------------------------------------------------------
Unlimited Tax Series 2005 BAN GO
3.00%, 06/24/05 -- MIG1 3,150 3,157,955
- ---------------------------------------------------------------------------------------
Solon (City of); Series 2004 BAN
2.75%, 12/01/05(p) -- -- 3,000 3,013,738
- ---------------------------------------------------------------------------------------
Toledo-Lucas (County of) Port Authority
(Franciscan Communities St. Mary of the
Woods Inc.); VRD Series 2004 C RB
(LOC-Sovereign Bank, Bank of Nova Scotia)
2.28%, 05/15/38(b)(c) A-1+ -- 10,700 10,700,000
- ---------------------------------------------------------------------------------------
Upper Arlington (City of); Street Improvement
Limited Tax Series 2005 BAN GO
3.00%, 01/10/06 -- MIG-1 1,802 1,813,655
- ---------------------------------------------------------------------------------------
Youngstown (City of) School District
(Classroom Facilities & School
Improvement); Unlimited Tax Series 2005 GO
3.00%, 12/01/05(f) AAA Aaa 1,000 1,005,299
=======================================================================================
122,556,406
=======================================================================================
OKLAHOMA-1.01%
Oklahoma (County of) Finance Authority
(Oxford Oaks Apartments Projects);
Refunding Multi-Family Housing VRD Series
2000 RB (CEP-Federal National Mortgage
Association)
2.30%, 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.)
2.38%, 06/01/11(b)(c) A-1+ -- 3,785 3,785,000
- ---------------------------------------------------------------------------------------
Tulsa (County of) Industrial Authority;
Capital Improvements Series 2003 B RB
4.00%, 05/15/05 AA- -- 2,500 2,507,347
=======================================================================================
33,987,347
=======================================================================================
</Table>
F-15
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
OREGON-0.75%
JPMorgan PUTTERs (City of Portland); Sewer
System VRD Series 2004 614 RB (Acquired
12/02/04; Cost $1,600,000)
2.32%, 10/01/12(c)(d)(e) -- VMIG-1 $ 1,600 $ 1,600,000
- ---------------------------------------------------------------------------------------
Oregon (State of) Health, Housing,
Educational & Cultural Facilities Authority
(Quatama Crossing LLC Housing Project); VRD
Series 1998 RB (LOC-U.S. Bank N.A.)
2.35%, 01/01/31(b)(c) -- Aa2 7,320 7,320,000
- ---------------------------------------------------------------------------------------
Oregon (State of) Housing & Community
Services Department Mortgage; Single Family
Mortgage Program Series 2004 O RN
2.00%, 06/01/05 -- MIG-1 2,300 2,300,000
- ---------------------------------------------------------------------------------------
Series 2004 O-2 RN
2.10%, 09/01/05 -- MIG-1 3,000 3,000,000
- ---------------------------------------------------------------------------------------
Oregon (State of); Series 2004 A TAN
3.00%, 06/30/05 SP-1+ MIG-1 6,500 6,519,573
- ---------------------------------------------------------------------------------------
Portland (City of) Housing Authority
(Riverwood Project); Refunding Multi-Family
Series 1995 RB
6.00%, 01/01/06(g)(i) AAA NRR 1,170 1,202,371
- ---------------------------------------------------------------------------------------
Portland (City of); Unlimited Tax Series 1995
B GO
5.75%, 06/01/05(g)(i) NRR Aaa 2,000 2,012,136
- ---------------------------------------------------------------------------------------
Salem (City of) Water & Sewer; Refunding
Series 2004 RB
3.00%, 05/01/05(f) AAA Aaa 1,175 1,176,383
=======================================================================================
25,130,463
=======================================================================================
PENNSYLVANIA-3.07%
ABN AMRO Munitops Ctfs. Trust (City of
Reading School District); Non-AMT VRD
Series 2003-20 Ctfs. (Acquired 03/02/05;
Cost $4,225,000)
2.32%, 07/15/11(c)(d)(e)(j) -- -- 4,225 4,225,000
- ---------------------------------------------------------------------------------------
ABN AMRO Munitops Ctfs. Trust (State of
Pennsylvania Public School Building
Authority); Non-AMT VRD Series 2001-30
Ctfs. (Acquired 10/31/02; Cost $5,000,000)
2.32%, 09/01/09(c)(d)(e) -- VMIG-1 5,000 5,000,000
- ---------------------------------------------------------------------------------------
Series 2003-24 Ctfs. (Acquired 03/08/04;
Cost $7,000,000)
2.32%, 06/01/11(c)(d)(e) -- VMIG-1 7,000 7,000,000
- ---------------------------------------------------------------------------------------
Allegheny (County of) Industrial Development
Authority (Carnegie Museums of Pittsburgh);
VRD Series 2002 IDR (LOC-Royal Bank of
Scotland)
2.40%, 08/01/32(b)(c) -- VMIG-1 2,000 2,000,000
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
<Caption>
PENNSYLVANIA-(CONTINUED)
Berks (County of) Industrial Development
Authority (Lutheran Services); Health Care
VRD Series 1998 A IDR
2.29%, 01/01/28(c)(f) -- VMIG-1 $ 9,995 $ 9,995,000
- ---------------------------------------------------------------------------------------
Chartiers Valley (Community of) Industrial &
Commercial Development Authority (Asbury
Villas Project); VRD Series 2000 B IDR
(LOC-ABN AMRO Bank N.V.)
2.31%, 12/01/30(b)(c) A-1 -- 3,000 3,000,000
- ---------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (Delaware Valley
Regional); VRD Series 2001-3801 COP
(Acquired 06/04/01; Cost $8,900,000)
2.31%, 08/01/28(c)(d)(e) A-1+ -- 8,900 8,900,000
- ---------------------------------------------------------------------------------------
Franklin (County of) Industrial Development
Authority (Chambersburg Hospital
Obligation); Health Care VRD Series 2000
IDR
2.38%, 12/01/24(c)(f) A-1 -- 3,385 3,385,000
- ---------------------------------------------------------------------------------------
Geisinger (City of) Authority (Geisinger
Health System); VRD Series 2002 RB
2.30%, 11/15/32(k) A-1+ VMIG-1 12,200 12,200,000
- ---------------------------------------------------------------------------------------
Lehigh (County of) Industrial Development
Authority (Allegheny Electric Coop. Inc.);
Refunding VRD Series 1984 PCR (LOC-
Rabobank Nederland)
2.05%, 06/01/14(b)(m) A-1+ -- 1,030 1,030,000
- ---------------------------------------------------------------------------------------
VRD Series 1984 PCR (LOC- Rabobank
Nederland)
2.05%, 10/01/14(b)(m) A-1+ -- 7,180 7,180,000
- ---------------------------------------------------------------------------------------
Montgomery (County of) Higher Education &
Health Authority (Holy Redeemer Health
System); Health Care Series 1997 A RB
5.50%, 10/01/05(f) AAA Aaa 2,240 2,276,734
- ---------------------------------------------------------------------------------------
Pennsylvania (State of) Higher Educational
Facilities Authority (Washington &
Jefferson Development); VRD Series 2005 A
RB (LOC-Sovereign Bank, Uncredito Italiano
S.p.A.)
2.25%, 11/01/36(b)(c) -- VMIG-1 3,000 3,000,000
- ---------------------------------------------------------------------------------------
Philadelphia (City of) Hospitals & Higher
Education of Facilities Authority
(Children's Hospital of Philadelphia
Project); Hospital VRD Series 2002 A RB
2.28%, 07/01/22(k) A-1+ VMIG-1 8,400 8,400,000
- ---------------------------------------------------------------------------------------
</Table>
F-16
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
PENNSYLVANIA-(CONTINUED)
Sayre (City of) Health Care Facilities
Authority (VHR of Pennsylvania Capital
Financing Project); VRD Series 1985 K RB
2.30%, 12/01/20(c)(f) A-1+ Aaa $19,800 $ 19,800,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (City of Scranton & County
of Lackawanna Health & Welfare Authority);
VRD Series 2002 A-18 RB (Acquired 03/22/02;
Cost $5,120,000)
2.35%, 03/01/15(c)(d)(e) -- VMIG-1 5,120 5,120,000
=======================================================================================
102,511,734
=======================================================================================
SOUTH CAROLINA-1.91%
Cherokee (County of) (Newark Electronics
Division); Industrial VRD Series 1985 RB
(LOC-ABN AMRO Bank N.V.)
2.30%, 12/01/15(b)(c) A-1 -- 6,500 6,500,000
- ---------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (State of South
Carolina Public Service Authority); VRD
Series 2000-4001 A COP (Acquired 09/08/00;
Cost $10,100,000)
2.32%, 01/01/22(c)(d)(e) A-1+ -- 10,100 10,100,000
- ---------------------------------------------------------------------------------------
Horry (County of) School District; Unlimited
Tax Series 2004 GO BAN
3.50%, 09/01/05 SP-1 MIG-1 10,000 10,070,209
- ---------------------------------------------------------------------------------------
Morgan Stanley & Co. Inc. Trust Floater Ctfs.
(State of South Carolina Transportation
Infrastructure Bank); Floating Rate Trust
Ctfs. VRD Series 2002-728 RB (Acquired
11/13/02; Cost $7,185,000)
2.32%, 10/01/22(c)(d)(e) -- VMIG-1 7,185 7,185,000
- ---------------------------------------------------------------------------------------
South Carolina (State of) Educational
Facilities Authority for Non-Profit
Institutions (Morris College Project); VRD
Series 1997 RB (LOC-Bank of America, N.A.)
(Acquired 07/30/02; Cost $2,100,000)
2.35%, 07/01/17(b)(c)(e) A-1+ -- 2,100 2,100,000
- ---------------------------------------------------------------------------------------
South Carolina (State of) Educational
Facilities Authority for Non-Profit
Institutions (The Allen University
Project); VRD Series 1998 RB (LOC-Bank of
America, N.A.) (Acquired 03/27/01; Cost
$2,525,000)
2.35%, 09/01/18(b)(c)(e) A-1+ -- 2,525 2,525,000
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
<Caption>
- ---------------------------------------------------------------------------------------
SOUTH CAROLINA-(CONTINUED)
South Carolina (State of) Jobs-Economic
Development Authority (Carolina Children's
Home Project); VRD Series 2003 RB
(LOC-Branch Banking & Trust Co.)
2.27%, 03/01/23(b)(c) -- VMIG-1 $ 3,365 $ 3,365,000
- ---------------------------------------------------------------------------------------
South Carolina (State of) Jobs-Economic
Development Authority (Carolina Piedmont
Foundation Project); VRD Series 2002 RB
(LOC-Bank of America, N.A.)
2.35%, 09/01/32(b)(c) -- -- 4,000 4,000,000
- ---------------------------------------------------------------------------------------
South Carolina (State of) Jobs-Economic
Development Authority (Catholic Diocese of
South Carolina Project); VRD Series 1998 RB
(LOC-Bank of America, N.A.) (Acquired
07/23/02; Cost $2,555,000)
2.35%, 09/01/18(b)(c)(e) A-1+ -- 2,555 2,555,000
- ---------------------------------------------------------------------------------------
South Carolina (State of) Jobs-Economic
Development Authority (Presbyterian Home of
South Carolina Project); VRD Series 2003 A
RB (LOC-Wachovia Bank, N.A.)
2.35%, 04/01/20(b)(c) A-1 -- 4,070 4,070,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (State of South Carolina
Public Service Authority); VRD Series 2000
L RB (Acquired 02/25/00; Cost $11,590,000)
2.35%, 01/01/22(c)(d)(e) -- VMIG-1 11,590 11,590,000
=======================================================================================
64,060,209
=======================================================================================
SOUTH DAKOTA-0.09%
South Dakota (State of) Health & Educational
Facilities Authority (University of Sioux
Falls); VRD Series 2001 RB (LOC-Wells Fargo
Bank N.A.)
2.28%, 10/01/16(b)(c) A-1+ -- 3,155 3,155,000
=======================================================================================
TENNESSEE-5.14%
Clarksville (City of) Public Building
Authority (Tennessee Municipal Bond Fund);
Pooled Financing VRD Series 1999 RB
(LOC-Bank of America, N.A.) (Acquired
03/15/05; Cost $27,205,000)
2.30%, 06/01/29(b)(c)(e) -- VMIG-1 27,205 27,205,000
- ---------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Chattanooga);
VRD Series 2000-4202 A COP (Acquired
10/10/00; Cost $14,040,000)
2.32%, 10/01/27(c)(d)(e) A-1+ -- 14,040 14,040,000
- ---------------------------------------------------------------------------------------
</Table>
F-17
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
TENNESSEE-(CONTINUED)
Jackson (City of) Energy Authority; Electric
Systems VRD Series 2003 B RB
2.30%, 11/01/26(c)(f) -- VMIG-1 $12,200 $ 12,200,000
- ---------------------------------------------------------------------------------------
Jackson (City of) Health & Educational
Facilities Board (Trinity Christian
Academy); Educational Facilities VRD Series
2002 RB (LOC-AmSouth Bank)
2.40%, 03/01/22(b)(c) -- VMIG-1 5,295 5,295,000
- ---------------------------------------------------------------------------------------
Knox (County of) Health Educational & Housing
Facility Board (Volunteer Student Housing
LLC Project); Student Housing VRD Series
2002 RB (LOC- Wachovia Bank, N.A.)
2.29%, 09/01/34(b)(c) -- VMIG-1 26,625 26,625,000
- ---------------------------------------------------------------------------------------
Morgan Stanley & Co. Inc. Trust Floater Ctfs.
(City of Nashville & County of Davidson);
Unlimited Tax Series 2003-871 GO (Acquired
11/17/03; Cost $4,995,000)
2.32%, 10/15/10(c)(d)(e) -- VMIG-1 4,995 4,995,000
- ---------------------------------------------------------------------------------------
Nashville (City of) & Davidson (County of)
Metropolitan Government Health &
Educational Facilities Board (Adventist
Health System); VRD Series 1997 A RB
(LOC-SunTrust Bank)
2.28%, 11/15/27(b)(c) A-1+ VMIG-1 2,325 2,325,000
- ---------------------------------------------------------------------------------------
Nashville (City of) & Davidson (County of)
Metropolitan Government Health &
Educational Facilities Board (Ensworth
School Project); VRD Series 2002 RB
(LOC-SunTrust Bank)
2.29%, 12/01/27(b)(c) -- VMIG-1 7,675 7,675,000
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
<Caption>
- ---------------------------------------------------------------------------------------
TENNESSEE-(CONTINUED)
Sevier (County of) Public Building Authority
(Local Government Public Improvement); VRD
Series 1995 A RB
2.31%, 06/01/15(c)(f) -- VMIG-1 $ 5,230 $ 5,230,000
- ---------------------------------------------------------------------------------------
VRD Series 1995 B-2 RB
2.31%, 06/01/06(c)(f) -- VMIG-1 1,200 1,200,000
- ---------------------------------------------------------------------------------------
VRD Series 1997 I A-1 RB
2.31%, 06/01/22(c)(f) -- VMIG-1 5,900 5,900,000
- ---------------------------------------------------------------------------------------
VRD Series 1997 II E-1 RB
2.31%, 06/01/21(c)(f) -- VMIG-1 2,100 2,100,000
- ---------------------------------------------------------------------------------------
VRD Series 1997 II E-3 RB
2.31%, 06/01/10(c)(f) -- VMIG-1 1,485 1,485,000
- ---------------------------------------------------------------------------------------
VRD Series 1997 II E-5 RB
2.31%, 06/01/17(c)(f) -- VMIG-1 1,320 1,320,000
- ---------------------------------------------------------------------------------------
VRD Series 1997 II F-1 RB
2.31%, 06/01/17(c)(f) -- VMIG-1 1,190 1,190,000
- ---------------------------------------------------------------------------------------
VRD Series 1997 II F-5 RB
2.31%, 06/01/27(c)(f) -- VMIG-1 2,265 2,265,000
- ---------------------------------------------------------------------------------------
VRD Series 1998 III A-1 RB
2.31%, 06/01/07(c)(f) -- VMIG-1 14,950 14,950,000
- ---------------------------------------------------------------------------------------
VRD Series 1998 III A-3 RB
2.31%, 06/01/19(c)(f) -- VMIG-1 1,425 1,425,000
- ---------------------------------------------------------------------------------------
VRD Series 1998 III A-4 RB
2.31%, 06/01/17(c)(f) -- VMIG-1 300 300,000
- ---------------------------------------------------------------------------------------
VRD Series 1998 III B-2 RB
2.31%, 06/01/19(c)(f) -- VMIG-1 5,650 5,650,000
- ---------------------------------------------------------------------------------------
VRD Series 1998 III C-3 RB
2.31%, 06/01/18(c)(f) -- VMIG-1 3,475 3,475,000
- ---------------------------------------------------------------------------------------
VRD Series 1998 III C-4 RB
2.31%, 06/01/20(c)(f) -- VMIG-1 10,000 10,000,000
- ---------------------------------------------------------------------------------------
VRD Series 1999 II A-1 RB
2.31%, 06/01/24(c)(f) -- VMIG-1 6,300 6,300,000
- ---------------------------------------------------------------------------------------
VRD Series 1999 II B-1 RB
2.31%, 06/01/25(c)(f) -- VMIG-1 1,700 1,700,000
- ---------------------------------------------------------------------------------------
Shelby (County of) Health, Educational &
Housing Facilities Board (St. Benedict
Auburndale School); VRD Series 2003 RB
(LOC-AmSouth Bank)
2.32%, 05/01/33(b)(c) -- VMIG-1 5,000 5,000,000
- ---------------------------------------------------------------------------------------
Williamson (County of) Industrial Development
Board (Currey Ingram Academy); Educational
Facilities VRD Series 2003 RB (LOC-SunTrust
Bank)
2.35%, 04/01/23(b)(c) -- VMIG-1 2,400 2,400,000
=======================================================================================
172,250,000
=======================================================================================
</Table>
F-18
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
TEXAS-12.01%
ABN AMRO Munitops Ctfs. Trust (City of
Leander Independent School District);
Unlimited Multi-State Non-AMT VRD Series
2002-16 Ctfs. (Acquired 08/20/03; Cost
$5,395,000)
2.33%, 08/15/10(c)(d)(e) -- VMIG-1 $ 5,395 $ 5,395,000
- ---------------------------------------------------------------------------------------
Amarillo (City of) Health Facilities Corp.
(Panhandle Pooled Health Care); VRD Series
1985 RB (LOC-BNP Paribas)
2.42%, 05/31/25(b)(c) -- VMIG-1 655 655,000
- ---------------------------------------------------------------------------------------
Austin (City of); Refunding Utility System
Series 1995 RB
5.60%, 05/15/05(g)(i) AAA Aaa 5,000 5,025,074
- ---------------------------------------------------------------------------------------
Bell (County of) Health Facilities
Development Corp. (Scott & White Memorial
Hospital); VRD Series 2000 B-1 RB
2.30%, 08/15/29(f)(k) A-1+ VMIG-1 32,300 32,300,000
- ---------------------------------------------------------------------------------------
Bexar (County of) Health Facilities
Development Corp. (Air Force Village); VRD
Series 2000 RB (LOC-Bank of America, N.A.)
2.28%, 04/11/05(b)(c) A-1+ -- 9,500 9,500,000
- ---------------------------------------------------------------------------------------
Bexar (County of) Health Facilities
Development Corp. (Warm Springs
Rehabilitation Foundation); Health Care
System VRD Series 1997 RB (LOC-JPMorgan
Chase Bank)
2.35%, 09/01/27(b)(c) -- VMIG-1 3,435 3,435,000
- ---------------------------------------------------------------------------------------
Brownsville (City of) Utility Systems;
Refunding VRD Sub Lien Series 2001 A RB
2.05%, 06/21/05(f)(h)(l) A-1+ VMIG-1 3,000 3,000,000
- ---------------------------------------------------------------------------------------
Crawford (City of) Education Facilities Corp.
Package (University Parking System
Project); Refunding VRD Series 2004 A RB
(LOC-BNP Paribas)
2.38%, 05/01/35(b)(c) -- VMIG-1 5,000 5,000,000
- ---------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Houston
Airport); VRD Series 2000-4307 COP
(Acquired 11/15/00; Cost $15,750,000)
2.32%, 07/01/28(c)(d)(e) A-1+ -- 15,750 15,750,000
- ---------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Houston Water
& Sewer); VRD Series 1997-4305 A COP
(Acquired 04/27/99; Cost $14,005,000)
2.32%, 12/01/27(c)(d)(e) A-1+ -- 14,005 14,005,000
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
<Caption>
TEXAS-(CONTINUED)
Eagle Tax Exempt Trust (City of Houston Water
& Sewer); VRD Series 2002-6019 A COP
(Acquired 11/13/02; Cost $8,910,000)
2.32%, 12/01/30(c)(d)(e) A-1+ -- $ 8,910 $ 8,910,000
- ---------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (Harris County Toll
Road); VRD Series 2001-4305 COP (Acquired
05/08/01; Cost $7,390,000)
2.32%, 08/01/14(c)(d)(e) A-1+ -- 7,390 7,390,000
- ---------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (Harris County Toll
Road); VRD Series 2002-6012 A COP (Acquired
11/20/02; Cost $1,580,000)
2.32%, 08/15/30(c)(d)(e) A-1+ -- 1,580 1,580,000
- ---------------------------------------------------------------------------------------
Garland (City of) Industrial Development
Authority Inc. (Carroll Co. Project); VRD
Series 1984 IDR (LOC-Wells Fargo Bank N.A.)
(Acquired 09/03/03; Cost $2,300,000)
2.35%, 12/01/14(b)(c)(e) -- Aaa 2,300 2,300,000
- ---------------------------------------------------------------------------------------
Grand Prairie (City of) Housing Finance Corp.
(Lincoln Property Co.); Refunding
Multi-Family Housing VRD Series 1993 RB
(CEP-General Electric Corp.)
2.30%, 06/01/10(c) A-1+ -- 2,700 2,700,000
- ---------------------------------------------------------------------------------------
Grapevine (City of) Industrial Development
Corp. (Southern Air Transport); Refunding
Airport Series 1993 RB (LOC-JPMorgan Chase
Bank)
2.30%, 03/01/10(b)(c) A-1+ -- 2,300 2,300,000
- ---------------------------------------------------------------------------------------
Harris (County of) Cultural Education
Facilities Finance Corp. (Houston Music
Hall Foundation); VRD Series 1999 RB (LOC-
JPMorgan Chase Bank)
2.35%, 06/01/29(b)(c) A-1+ -- 700 700,000
- ---------------------------------------------------------------------------------------
Harris (County of) Health Facilities
Development Corp. (Texas Children's
Hospital Project); Refunding Hospital
Series 1995 RB
6.00%, 10/01/05(o) AAA Aaa 1,250 1,273,825
- ---------------------------------------------------------------------------------------
Harris (County of) Health Facilities
Development Corp. (Methodist Hospital);
Refunding VRD Series 2005 B RB
2.07%, 05/09/05(h)(l) A-1+ -- 11,800 11,800,000
- ---------------------------------------------------------------------------------------
Harris (County of) Hospital District; Sub.
Lien Commercial Paper Series A RN (LOC-Bank
of America, N.A.)
2.11%, 05/11/05(b) A-1+ -- 9,451 9,451,000
- ---------------------------------------------------------------------------------------
</Table>
F-19
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
TEXAS-(CONTINUED)
Harris (County of) Houston Texas Sports
Authority (Rodeo); Jr. Lein VRD Series 2001
C RB
2.30%, 11/15/30(c)(f) A-1+ VMIG-1 $ 6,300 $ 6,300,000
- ---------------------------------------------------------------------------------------
Hays (County of) Memorial Health Facilities
Development Corp. (Central Texas Medical
Center Project); Hospital VRD Series 1990 B
RB (LOC-SunTrust Bank)
2.30%, 11/15/14(b)(c) A-1+ -- 10,200 10,200,000
- ---------------------------------------------------------------------------------------
Hockley (County of) Industrial Development
Corp. (AMOCO Project); VRD Series 1985 PCR
1.80%, 05/01/05(g)(h) A-1+ P-1 10,000 10,000,000
- ---------------------------------------------------------------------------------------
Hockley (County of) Industrial Development
Corp. (AMOCO Project-Standard Oil Co.); VRD
Series 1983 PCR
2.10%, 09/01/05(g)(h) A-1+ Aa1 12,775 12,775,000
- ---------------------------------------------------------------------------------------
Houston (City of) Higher Education Finance
Corp. (Houston Baptist University); Higher
Education Refunding VRD Series 2000 RB
(LOC-JPMorgan Chase Bank)
2.35%, 07/01/20(b)(c)(j) -- -- 3,665 3,665,000
- ---------------------------------------------------------------------------------------
Houston (City of) Independent School District
(Schoolhouse); Limited Tax Series 2004 GO
(CEP-Texas Permanent School Fund)
1.62%, 06/09/05(g)(l) A-1+ VMIG-1 15,000 15,000,000
- ---------------------------------------------------------------------------------------
Houston (City of); Commercial Paper Notes
Series 2003 A GO
1.95%, 04/07/05 A-1+ P-1 26,900 26,900,000
- ---------------------------------------------------------------------------------------
Series 2003 A GO
1.95%, 04/12/05 A-1+ P-1 24,000 24,000,000
- ---------------------------------------------------------------------------------------
Humble (City of) Independent School District;
School Building VRD Limited Tax Series 2003
GO (CEP-Texas Permanent School Fund)
2.28%, 06/15/23(c) A-1+ VMIG-1 13,000 13,000,000
- ---------------------------------------------------------------------------------------
JPMorgan PUTTERs (City of Boerne Independent
School District); VRD Series 2005 752 GO
(Acquired 03/09/05; Cost $2,640,000)
2.32%, 02/01/11(c)(d)(e) A-1+ -- 2,640 2,640,000
- ---------------------------------------------------------------------------------------
JPMorgan PUTTERs (County of Bexar); Limited
Tax VRD Series 2004 530 GO (Acquired
10/28/04; Cost $4,645,000)
2.32%, 06/15/12(c)(d)(e) -- VMIG-1 4,645 4,645,000
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
<Caption>
- ---------------------------------------------------------------------------------------
TEXAS-(CONTINUED)
Merrill Lynch P-Floats (City of Brazosport
Independent School District); Refunding
Unlimited Tax VRD Series 2003 PT-1690 GO
(Acquired 02/20/03; Cost $4,898,000)
2.32%, 08/15/10(c)(d)(e) -- VMIG-1 $ 4,898 $ 4,898,000
- ---------------------------------------------------------------------------------------
Merrill Lynch P-Floats (Harris County
Hospital District); VRD Series 2002 PT-665
RB (Acquired 10/02/02; Cost $5,935,000)
2.32%, 08/15/08(c)(d)(e) A-1+ -- 5,935 5,935,000
- ---------------------------------------------------------------------------------------
Northside Independent School District;
Refunding Unlimited Tax VRD Series 2003 B
GO (CEP- Texas Permanent School Fund)
1.75%, 08/01/05(g)(l) A-1+ VMIG-1 1,870 1,870,000
- ---------------------------------------------------------------------------------------
San Antonio (City of) Water & Sewer System;
Commercial Paper Notes Series 2001 A GO
(Acquired 01/26/05; Cost $29,900,000)
2.00%, 05/17/05(e) A-1+ P-1 29,900 29,900,000
- ---------------------------------------------------------------------------------------
Sherman (City of) Higher Education Finance
Corp. (Austin College Project); Higher
Education VRD Series 1997 RB (LOC-Bank of
America, N.A.)
2.35%, 01/01/18(b)(c) A-1+ -- 12,800 12,800,000
- ---------------------------------------------------------------------------------------
Texas (State of); Series 2004 TRAN
3.00%, 08/31/05 SP-1+ MIG-1 40,000 40,225,139
- ---------------------------------------------------------------------------------------
University of Texas Board of Regents (Revenue
Financing System); Commercial Paper Notes
Series A
2.05%, 05/17/05 A-1+ P-1 7,650 7,650,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (City of Austin); VRD Series
2000 A26 RB (Acquired 11/09/04; Cost
$9,230,000)
2.11%, 11/10/05(d)(e)(g)(l)(n) -- VMIG-1 9,230 9,230,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (Harris County Toll Road);
VRD Series 2003 B16 RB (Acquired 02/19/03;
Cost $3,015,000)
2.35%, 08/15/25(c)(d)(e) -- VMIG-1 3,015 3,015,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (Jefferson County Health
Facilities Development Corp.); VRD Series
2001 A83 RB (Acquired 11/18/03; Cost
$3,565,000)
2.11%, 11/16/05(d)(e)(g)(l)(n) A-1 -- 3,565 3,565,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (Southeast Texas Housing
Finance Corp.); VRD Series 2001 A18 RB
(Acquired 11/18/03; Cost $3,430,000)
2.11%, 11/16/05(d)(e)(g)(l)(n) A-1 -- 3,430 3,430,000
- ---------------------------------------------------------------------------------------
</Table>
F-20
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
TEXAS-(CONTINUED)
Wachovia MERLOTs (University of Texas);
Refunding VRD Series 2003 B14 RB (Acquired
01/29/03; Cost $8,000,000)
2.35%, 08/15/22(c)(d)(e) -- VMIG-1 $ 8,000 $ 8,000,000
=======================================================================================
402,113,038
=======================================================================================
UTAH-2.13%
Merrill Lynch P-Floats (City of Murray
Hospital); VRD Series 2002 PA-1066 RB
(Acquired 10/02/02; Cost $5,995,000)
2.32%, 05/15/22(c)(d)(e) A-1 -- 5,995 5,995,000
- ---------------------------------------------------------------------------------------
Salt Lake (City of) (Gateway Project);
Special Assessment VRD Series 2003
(LOC-Citibank N.A.)
2.30%, 12/01/23(b)(c) A-1+ -- 7,200 7,200,000
- ---------------------------------------------------------------------------------------
Sanpete (County of) School Facilities
(Wasatch Academy); VRD Series 2003 RB (LOC-
U.S. Bank N.A.)
2.33%, 08/01/28(b)(c) A-1+ -- 900 900,000
- ---------------------------------------------------------------------------------------
St. George (City of) (OK Foundation
Projects); Sr. Housing VRD Series 2004 A RB
(CEP-Federal National Mortgage Association)
2.28%, 12/15/29(c) A-1+ -- 30,640 30,640,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (Intermountain Power
Agency); Power Supply VRD Series 2002 A59
RB (Acquired 10/23/02; Cost $6,960,000)
2.35%, 07/01/10(c)(d)(e) -- VMIG-1 6,960 6,960,000
- ---------------------------------------------------------------------------------------
Weber (County of) (IHC Health Service); VRD
Series 2000 C RB
2.30%, 02/15/35(k) A-1+ VMIG-1 10,000 10,000,000
- ---------------------------------------------------------------------------------------
West Jordan (City of) (Broadmoor Village
Apartments LLC Project); Refunding
Multi-Family Housing VRD Series 2004 RB
(CEP- Federal Home Loan Mortgage Corp.)
2.30%, 12/01/34(c) A-1+ -- 9,675 9,675,000
=======================================================================================
71,370,000
=======================================================================================
VERMONT-0.08%
Vermont (State of) Student Assistance Corp.;
Student Loan VRD Series 1985 RB (LOC-State
Street Bank & Trust Co.)
2.05%, 01/01/08(b)(m) -- VMIG-1 2,640 2,640,000
=======================================================================================
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
<Caption>
- ---------------------------------------------------------------------------------------
VIRGINIA-1.05%
Henrico (County of) Economic Development
Authority (Westminster Canterbury);
Residential Care Facilities VRD Series 2003
B RB (LOC-KBC Bank N.V.)
2.29%, 07/01/08(b)(c) -- VMIG-1 $17,100 $ 17,100,000
- ---------------------------------------------------------------------------------------
Lynchburg (City of) Industrial Development
Authority (Lynchburg College); VRD Series
2004 RB (LOC-SunTrust Bank)
2.29%, 12/01/34(b)(c) -- VMIG-1 6,275 6,275,000
- ---------------------------------------------------------------------------------------
Newport News (City of) Redevelopment &
Housing Authority (Springhouse Apartments
Project); Multi-Family Housing VRD Series
2001 RB (CEP-Federal Home Loan Mortgage
Corp.)
2.30%, 09/01/26(c) A-1+ -- 2,000 2,000,000
- ---------------------------------------------------------------------------------------
Norfolk (City of) Redevelopment & Housing
Authority (E2F Student Housing LLC
Project); VRD Series 2005 RB (LOC-Bank of
America, N.A.)
2.30%, 07/01/34(b)(c) -- VMIG-1 7,000 7,000,000
- ---------------------------------------------------------------------------------------
Rockingham (County of) Industrial Development
Authority (Sunnyside Presbyterian Home);
Residential Care Facilities VRD Series 2003
RB (LOC-Branch Banking & Trust Co.)
2.27%, 12/01/33(b)(c) A-1 -- 750 750,000
- ---------------------------------------------------------------------------------------
Suffolk (City of) Redevelopment & Housing
Authority (Oak Springs Apartments);
Multi-Family Housing VRD Series 1999 RB
(CEP-Federal Home Loan Mortgage Corp.)
2.30%, 04/11/05(c) -- VMIG-1 1,900 1,900,000
=======================================================================================
35,025,000
=======================================================================================
WASHINGTON-6.72%
ABN AMRO Munitops Ctfs. Trust (City of
Seattle Municipal Light & Power);
Multi-State Non-AMT VRD Series 2002-12
Ctfs. (Acquired 05/25/04; Cost $9,755,000)
2.33%, 03/01/09(c)(d)(e) -- VMIG-1 9,755 9,755,000
- ---------------------------------------------------------------------------------------
ABN AMRO Munitops Ctfs. Trust (City of
Seattle); Multi-State Non-AMT VRD Limited
Tax Series 2003-7 GO Ctfs. (Acquired
05/13/03; Cost $10,685,000)
2.33%, 07/01/10(c)(d)(e)(j) -- -- 10,685 10,685,000
- ---------------------------------------------------------------------------------------
</Table>
F-21
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
WASHINGTON-(CONTINUED)
ABN AMRO Munitops Ctfs. Trust (King County);
Multi-State Non-AMT VRD Limited Tax Series
2001-1 GO Ctfs. (Acquired 01/04/01; Cost
$10,000,000)
2.33%, 07/01/06(c)(d)(e) -- VMIG-1 $10,000 $ 10,000,000
- ---------------------------------------------------------------------------------------
Bremerton (City of) (Kitsap Regional
Conference Center); VRD Series 2003 RB
(LOC-Bank of America, N.A.)
2.35%, 12/01/28(b)(c)(j) -- -- 2,565 2,565,000
- ---------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (State of Washington
Public Power Supply Systems Project No. 2);
VRD Series 1996-4703 A COP (Acquired
05/02/01; Cost $5,870,000)
2.32%, 07/01/11(c)(d)(e) A-1+ -- 5,870 5,870,000
- ---------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (State of Washington);
VRD Series 1998-4701 A COP (Acquired
07/20/00; Cost $14,400,000)
2.32%, 05/01/18(c)(d)(e) A-1+ -- 14,400 14,400,000
- ---------------------------------------------------------------------------------------
Everett (City of); Limited Tax VRD Series
2001 GO (LOC-Bank of America, N.A.)
2.35%, 12/01/21(b)(c)(j) -- -- 2,600 2,600,000
- ---------------------------------------------------------------------------------------
Everett (City of) Public Facilities District;
Commercial Paper Notes (LOC-Bank of
America, N.A.)
2.08%, 06/09/05(b) A-1+ -- 34,700 34,700,000
- ---------------------------------------------------------------------------------------
Everett (City of) Public Facilities District;
Commercial Paper TRAN (LOC-Bank of America,
N.A.)
2.08%, 06/09/05(b) A-1+ P-1 16,800 16,800,000
- ---------------------------------------------------------------------------------------
Issaquah (City of) Community Properties; VRD
Special Revenue Series 2001 A RB (LOC-Bank
of America, N.A.)
2.30%, 02/15/21(b)(c) -- VMIG-1 10,150 10,150,000
- ---------------------------------------------------------------------------------------
JPMorgan PUTTERs (State of Washington);
Unlimited Tax VRD Series 2004 593 GO
(Acquired 11/18/04; Cost $1,500,000)
2.32%, 07/01/12(c)(d)(e) -- VMIG-1 1,500 1,500,000
- ---------------------------------------------------------------------------------------
King (County of) Economic Enterprise Corp.
(Puget Sound Blood Center Project); VRD
Series 1998 RB (LOC-U.S. Bank N.A.)
2.35%, 04/01/23(b)(c) -- VMIG-1 3,700 3,700,000
- ---------------------------------------------------------------------------------------
King (County of) Water & Sewer; VRD Jr. Lien
Series 2001 B RB(LOC-Landesbank Hessen-
Thuringen Girozentrale)
2.27%, 01/01/32(b)(c) A-1+ VMIG-1 2,000 2,000,000
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
<Caption>
- ---------------------------------------------------------------------------------------
WASHINGTON-(CONTINUED)
Lake Tapps Parkway Properties; Special
Revenue VRD Series 1999 A RB (LOC- U.S.
Bank N.A.)
2.32%, 12/01/19(b)(c) -- VMIG-1 $11,800 $ 11,800,000
- ---------------------------------------------------------------------------------------
Lake Tapps Parkway Properties; Special
Revenue VRD Series 1999 B RB (LOC- U.S.
Bank N.A.)
2.32%, 12/01/19(b)(c) -- VMIG-1 800 800,000
- ---------------------------------------------------------------------------------------
Morgan Stanley & Co. Inc. Trust Floater Ctfs.
(Port of Seattle); VRD Series 2002-739D RB
(Acquired 07/21/04; Cost $5,000,000)
2.32%, 09/01/20(c)(d)(e) A-1 -- 5,000 5,000,000
- ---------------------------------------------------------------------------------------
Pierce (County of) Economic Development Corp.
(Weyerhaeuser Real Estate); Special Revenue
VRD Series 1997 RB (LOC-Bank of America,
N.A.)
2.35%, 01/01/27(b)(c) A-1+ VMIG-1 12,705 12,705,000
- ---------------------------------------------------------------------------------------
Seattle (City of) Housing Authority (Bayview
Manor Project); Low Income Housing
Assistance VRD Series 1994 B RB (LOC- U.S.
Bank N.A.)
2.35%, 05/01/19(b)(c) A-1+ -- 2,340 2,340,000
- ---------------------------------------------------------------------------------------
Seattle (City of) Housing Authority (Pioneer
Human Services Project); Refunding VRD
Series 1995 RB (LOC-U.S. Bank N.A.)
2.35%, 12/01/15(b)(c) A-1+ -- 2,295 2,295,000
- ---------------------------------------------------------------------------------------
Seattle (Port of) Industrial Development
Corp. (Sysco Food Services Project);
Refunding VRD Series 1994 IDR
2.32%, 11/01/25(c) A-1+ VMIG-1 6,208 6,208,000
- ---------------------------------------------------------------------------------------
Snohomish (County of) Housing Authority (Ebey
Arms Centerhouse Project); Refunding
Housing VRD Series 2003 RB (LOC-Bank of
America, N.A.)
2.35%, 12/01/34(b)(c)(j) -- -- 6,245 6,245,000
- ---------------------------------------------------------------------------------------
Vancouver (City of) Housing Authority
(Village Park Apartments Project); Housing
VRD Series 2000 RB (LOC-U.S. Bank N.A.)
2.32%, 11/02/05(b)(c) A-1+ -- 1,340 1,340,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (Central Puget Sound
Regional Transit Authority); Sales Tax &
Motor VRD Series 2001 A46 RB (Acquired
11/12/03; Cost $6,270,000)
2.11%, 11/10/05(d)(e)(g)(l)(n) -- VMIG-1 6,270 6,270,000
- ---------------------------------------------------------------------------------------
</Table>
F-22
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
WASHINGTON-(CONTINUED)
Washington (State of) Economic Development
Finance Authority (Seadrunar Recycling LLC
Project); Economic Development VRD Series
2000 E RB (LOC- U.S. Bank N.A.)
2.35%, 08/01/25(b)(c) A-1+ -- $ 2,735 $ 2,735,000
- ---------------------------------------------------------------------------------------
Washington (State of) Health Care Facilities
Authority (National Healthcare Research &
Education Finance Corp.); Lease VRD Series
2000 RB (LOC-BNP Paribas)
2.30%, 01/01/32(b)(c) -- VMIG-1 6,800 6,800,000
- ---------------------------------------------------------------------------------------
Washington (State of) Higher Education
Facilities Authority (Cornish College Arts
Project); VRD Series 2003 A RB (LOC- Bank
of America, N.A.)
2.35%, 12/01/33(b)(c) -- VMIG-1 5,000 5,000,000
- ---------------------------------------------------------------------------------------
Washington (State of) Housing Finance
Commission (Hearthstone Project);
Non-Profit Revenue Refunding VRD Series
2004 RB (LOC-Bank of America, N.A.)
2.30%, 12/01/29(b)(c) A-1+ -- 12,000 12,000,000
- ---------------------------------------------------------------------------------------
Washington (State of) Housing Finance
Commission (Nikkei Concerns Project);
Non-Profit Housing VRD Series 1994 RB
(LOC-U.S. Bank N.A.)
2.35%, 10/01/19(b)(c) A-1+ -- 3,605 3,605,000
- ---------------------------------------------------------------------------------------
Washington (State of) Housing Finance
Commission (The Evergreen School Project);
Non-Profit VRD Series 2002 RB (LOC-Wells
Fargo Bank N.A.)
2.28%, 07/01/28(b)(c) A-1+ -- 2,660 2,660,000
- ---------------------------------------------------------------------------------------
Washington (State of) Housing Finance
Commission (University Preparatory Academy
Project); Non-Profit VRD Series 2000 RB
(LOC-Bank of America, N.A.)
2.35%, 07/01/30(b)(c) -- VMIG-1 1,250 1,250,000
- ---------------------------------------------------------------------------------------
Washington (State of) Housing Finance
Commission (YMCA of Columbia-Willamette);
Non-Profit Revenue VRD Series 1999 RB
(LOC-Wells Fargo Bank N.A.)
2.33%, 08/01/24(b)(c) A-1+ -- 2,300 2,300,000
- ---------------------------------------------------------------------------------------
Washington (State of) Public Power Supply
System (Nuclear Project No. 3); Refunding
Series 1993 C RB
5.00%, 07/01/05(f) AAA Aaa 3,850 3,878,185
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
<Caption>
- ---------------------------------------------------------------------------------------
WASHINGTON-(CONTINUED)
Washington (State of); Unlimited Tax Series
1995C, AT-8 & R-95B GO
5.90%, 07/01/05(g)(i) NRR NRR $ 5,000 $ 5,047,805
=======================================================================================
225,003,990
=======================================================================================
WEST VIRGINIA-0.19%
Monongalia (County of) Building Community
Hospital (Monongalia General Hospital);
Refunding VRD Series 2002 A RB
(LOC-JPMorgan Chase Bank)
2.29%, 07/01/17(b)(c) A-1+ VMIG-1 645 645,000
- ---------------------------------------------------------------------------------------
West Virginia (State of) Hospital Finance
Authority (VHA Mid-Atlantic/Cap); Hospital
VRD Series 1985 F RB
2.30%, 12/01/25(c)(f) A-1+ -- 5,700 5,700,000
=======================================================================================
6,345,000
=======================================================================================
WISCONSIN-3.39%
Kimberly (City of) (Fox Cities YMCA Project);
VRD Series 2002 RB (LOC-M&I Marshall &
Ilsley Bank)
2.35%, 04/01/32(b)(c) -- VMIG-1 1,940 1,940,000
- ---------------------------------------------------------------------------------------
Menomonee Falls (City of); Refunding Sewer
System Series 2004 RB
2.00%, 05/01/05(f) -- Aaa 1,425 1,425,652
- ---------------------------------------------------------------------------------------
Waukesha (County of); Promissory Notes
Unlimited Tax Series 2004 GO
2.00%, 04/01/05 -- Aaa 1,500 1,500,000
- ---------------------------------------------------------------------------------------
West Allis (City of) (State Fair Park
Exposition Center Inc.); VRD Series 2001 RB
(LOC- U.S. Bank N.A.)
2.35%, 08/01/28(b)(c) -- VMIG-1 2,300 2,300,000
- ---------------------------------------------------------------------------------------
Wind Point (City of) (Johnson Foundation
Project); VRD Series 2000 RB (LOC-Bank of
Montreal)
2.33%, 09/01/35(b)(c) A-1+ -- 4,665 4,665,000
- ---------------------------------------------------------------------------------------
Wisconsin (State of) Health & Educational
Facilities Authority (Eastcastle Place
Inc.); VRD Series 2004 C RB (LOC-ABN AMRO
Bank N.V.)
2.30%, 12/01/34(b)(c) A-1 -- 7,000 7,000,000
- ---------------------------------------------------------------------------------------
Wisconsin (State of) Health & Educational
Facilities Authority (Mequon Jewish
Project); VRD Series 2003 RB (LOC-JPMorgan
Chase Bank)
2.32%, 07/01/28(b)(c) -- VMIG-1 2,150 2,150,000
- ---------------------------------------------------------------------------------------
</Table>
F-23
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
WISCONSIN-(CONTINUED)
Wisconsin (State of) Health & Educational
Facilities Authority (Mercy Health System);
Pooled Loan VRD Series 2003 I RB (LOC-M&I
Marshall & Ilsley Bank)
2.33%, 06/01/23(b)(c) -- VMIG-1 $ 9,570 $ 9,570,000
- ---------------------------------------------------------------------------------------
Wisconsin (State of) Health & Educational
Facilities Authority (Mercy Health System);
VRD Series 2003 C RB (LOC-M&I Marshall &
Ilsley Bank)
2.31%, 08/15/23(b)(c) -- VMIG-1 7,300 7,300,000
- ---------------------------------------------------------------------------------------
Wisconsin (State of) Health & Educational
Facilities Authority (Sinai Samaritan
Medical Center Inc.); VRD Series 1994 A RB
(LOC-M&I Marshall & Ilsley Bank)
2.31%, 09/01/19(b)(c) A-1 -- 5,649 5,649,000
- ---------------------------------------------------------------------------------------
Wisconsin (State of) Health & Educational
Facilities Authority (St. John's Home);
Pooled Loan VRD Series 2003 J RB (LOC-M&I
Marshall & Ilsley Bank)
2.33%, 07/01/23(b)(c) -- VMIG-1 4,250 4,250,000
- ---------------------------------------------------------------------------------------
Wisconsin (State of) Health & Educational
Facilities Authority (St. Luke's Medical
Center); VRD Series 1987 RB (LOC-KBC Bank
N.V.) (Acquired 06/01/04; Cost $28,600,000)
2.30%, 12/01/17(b)(c)(e) A-1 -- 28,600 28,600,000
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
<Caption>
- ---------------------------------------------------------------------------------------
WISCONSIN-(CONTINUED)
Wisconsin (State of) Health & Educational
Facilities Authority (St. Mary's School);
VRD Series 2004 RB (LOC-M&I Marshall &
Ilsley Bank)
2.31%, 08/01/19(b)(c) A-1 -- $ 2,695 $ 2,695,000
- ---------------------------------------------------------------------------------------
Wisconsin (State of) Petroleum Inspection
Fee; Series 2000 A RB
5.75%, 07/01/05(g)(i) AA- Aa3 8,000 8,235,885
- ---------------------------------------------------------------------------------------
Wisconsin (State of) School Districts Cash
Flow Management Program; Series 2004 A-1
COP
3.00%, 09/20/05(p) -- -- 8,000 8,048,916
- ---------------------------------------------------------------------------------------
Wisconsin (State of) School Districts Cash
Flow Management Program; Series 2004 B-1
COP
3.50%, 11/01/05 -- MIG-1 15,000 15,116,273
- ---------------------------------------------------------------------------------------
Wisconsin (State of); Unlimited Tax Series
1995 A GO
6.10%, 05/01/05(g)(i) NRR Aaa 3,000 3,012,436
=======================================================================================
113,458,162
=======================================================================================
TOTAL INVESTMENTS-99.22% (Cost
$3,322,342,840)(q) 3,322,342,840
=======================================================================================
OTHER ASSETS LESS LIABILITIES-0.78% 26,258,985
=======================================================================================
NET ASSETS-100.00% $3,348,601,825
_______________________________________________________________________________________
=======================================================================================
</Table>
Investment Abbreviations:
<Table>
ACES - Automatically Convertible Extendable Security
AMT - Alternative Minimum Tax
BAN - Bond Anticipation Note
CEP - Credit Enhancement Provider
COP - Certificate of Participation
Ctfs. - Certificates
GO - General Obligation Bonds
IDR - Industrial Development Revenue Bonds
Jr. - Junior
LOC - Letter of Credit
MERLOT - Municipal Exempt Receipts Liquidity Optional Tender
NRR - Not Re-Rated
P-Floats - Puttable Floating Option Tax-Exempt Receipt
PCR - Pollution Control Revenue Bonds
PUTTERs - Putable Tax Exempt Receipts
RAN - Revenue Anticipation Notes
RB - Revenue Bonds
RN - Revenue Notes
Sr. - Senior
Sub. - Subordinated
TAN - Tax Anticipation Notes
TRAN - Tax and Revenue Anticipation Notes
VRD - Variable Rate Demand
Wts. - Warrants
</Table>
F-24
Notes to Schedule of Investments:
(a) Ratings assigned by Standard & Poor's Corporation ("S&P") and Moody's
Investors Service, Inc. ("Moody's"), except as indicated in note (j) and (p)
below. NRR indicates a security that is not re-rated subsequent to funding
of an escrow fund (consisting of U.S. Treasury obligations held by a bank
custodian); this funding is pursuant to an advance refunding of this
security. Ratings are not covered by the Report of Independent Registered
Public Accounting Firm.
(b) Principal and interest payments are fully enhanced by a letter of credit
from the bank listed or a predecessor bank, branch or subsidiary.
(c) Demand security; payable upon demand by the Fund at specified time intervals
no greater than thirteen months. Interest rate is redetermined weekly. Rate
shown is the rate in effect on March 31, 2005.
(d) Synthetic municipal instruments; 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.
(e) 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 March 31, 2005 was
$768,868,000, which represented 22.96% of the Fund's Net Assets. Unless
otherwise indicated, these securities are not considered to be illiquid.
(f) Principal and/or 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.
(g) Security has an irrevocable call or mandatory put by the issuer. Maturity
date reflects such call or put.
(h) Demand security; payable upon demand by the Fund at specified time intervals
no greater than thirteen months. Interest rate is redetermined
semi-annually. Rate shown is the rate in effect on March 31, 2005.
(i) Advance refunded; secured by an escrow fund of U.S. Treasury obligations.
(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 rate is redetermined daily. Rate
shown is the rate in effect on March 31, 2005.
(l) Demand security; payable upon demand by the Fund at specified time intervals
no greater than thirteen months. Interest rate is redetermined at
intermittent intervals. Rate shown is the rate in effect on March 31, 2005.
(m) Demand security; payable upon demand by the Fund at specified time intervals
no greater than thirteen months. Interest rate is redetermined monthly. Rate
shown is the rate in effect on March 31, 2005.
(n) Security considered to be illiquid; the portfolio is limited to investing
10% of Net Assets in illiquid securities. The aggregate market value of
these securities considered illiquid at March 31, 2005 was $58,515,000,
which represented 1.75% of the Fund's Net Assets.
(o) Secured by an escrow fund of U.S. Treasury obligations.
(p) Determined by the investment advisor to be of comparable quality to the
rated securities in which the Fund may invest, pursuant to guidelines of
quality adopted by the Board of Trustees and followed by the investment
advisor.
(q) Also represents cost for federal income tax purposes.
See accompanying notes which are an integral part of the financial statements.
F-25
STATEMENT OF ASSETS AND LIABILITIES
March 31, 2005
<Table>
ASSETS:
Investments, at value (cost $3,322,342,840) $3,322,342,840
- ------------------------------------------------------------
Cash 11,284,350
- ------------------------------------------------------------
Receivables for:
Investments sold 6,190,049
- ------------------------------------------------------------
Interest 13,396,750
- ------------------------------------------------------------
Amount due from advisor 94,353
- ------------------------------------------------------------
Investment for trustee deferred compensation
and retirement plans 116,507
- ------------------------------------------------------------
Other assets 148,419
============================================================
Total assets 3,353,573,268
____________________________________________________________
============================================================
LIABILITIES:
Payables for:
Dividends 4,412,045
- ------------------------------------------------------------
Trustee deferred compensation and
retirement plans 231,330
- ------------------------------------------------------------
Accrued distribution fees 132,821
- ------------------------------------------------------------
Accrued trustees' fees 9,908
- ------------------------------------------------------------
Accrued transfer agent fees 75,398
- ------------------------------------------------------------
Accrued operating expenses 109,941
============================================================
Total liabilities 4,971,443
============================================================
Net assets applicable to shares outstanding $3,348,601,825
____________________________________________________________
============================================================
NET ASSETS CONSIST OF:
Shares of beneficial interest $3,348,663,731
- ------------------------------------------------------------
Undistributed net realized gain (loss) from
investment securities (61,906)
============================================================
$3,348,601,825
____________________________________________________________
============================================================
NET ASSETS:
Institutional Class $2,117,055,426
____________________________________________________________
============================================================
Private Investment Class $ 196,616,507
____________________________________________________________
============================================================
Personal Investment Class $ 10,877,052
____________________________________________________________
============================================================
Cash Management Class $ 725,123,738
____________________________________________________________
============================================================
Reserve Class $ 9,308,226
____________________________________________________________
============================================================
Resource Class $ 289,620,876
____________________________________________________________
============================================================
SHARES OUTSTANDING, $0.001 PAR VALUE PER
SHARE, UNLIMITED NUMBER OF SHARES
AUTHORIZED:
Institutional Class 2,117,040,310
____________________________________________________________
============================================================
Private Investment Class 196,606,167
____________________________________________________________
============================================================
Personal Investment Class 10,874,255
____________________________________________________________
============================================================
Cash Management Class 725,129,583
____________________________________________________________
============================================================
Reserve Class 9,306,389
____________________________________________________________
============================================================
Resource Class 289,623,534
____________________________________________________________
============================================================
Net asset value, offering and redemption
price per share for each class $ 1.00
____________________________________________________________
============================================================
</Table>
See accompanying notes which are an integral part of the financial statements.
F-26
STATEMENT OF OPERATIONS
For the year ended March 31, 2005
<Table>
INVESTMENT INCOME:
Interest $45,234,430
=========================================================================
EXPENSES:
Advisory fees 6,427,161
- -------------------------------------------------------------------------
Administrative services fees 593,616
- -------------------------------------------------------------------------
Custodian fees 116,420
- -------------------------------------------------------------------------
Distribution fees:
Private Investment Class 896,739
- -------------------------------------------------------------------------
Personal Investment Class 78,707
- -------------------------------------------------------------------------
Cash Management Class 682,153
- -------------------------------------------------------------------------
Reserve Class 103,030
- -------------------------------------------------------------------------
Resource Class 509,985
- -------------------------------------------------------------------------
Transfer agent fees 505,749
- -------------------------------------------------------------------------
Trustees' fees and retirement benefits 94,630
- -------------------------------------------------------------------------
Other 650,568
=========================================================================
Total expenses 10,658,758
=========================================================================
Less: Fees waived and expenses reimbursed (2,284,421)
=========================================================================
Net expenses 8,374,337
=========================================================================
Net investment income 36,860,093
=========================================================================
Net realized gain (loss) from investment securities (60,974)
=========================================================================
Net increase in net assets resulting from operations $36,799,119
_________________________________________________________________________
=========================================================================
</Table>
See accompanying notes which are an integral part of the financial statements.
F-27
STATEMENT OF CHANGES IN NET ASSETS
For the years ended March 31, 2005 and 2004
<Table>
<Caption>
2005 2004
- ----------------------------------------------------------------------------------------------
OPERATIONS:
Net investment income $ 36,860,093 $ 22,690,885
- ----------------------------------------------------------------------------------------------
Net realized gain (loss) from investment securities (60,974) 40,841
==============================================================================================
Net increase in net assets resulting from operations 36,799,119 22,731,726
==============================================================================================
Distributions to shareholders from net investment income:
Institutional Class (24,315,215) (14,405,472)
- ----------------------------------------------------------------------------------------------
Private Investment Class (1,826,828) (1,230,193)
- ----------------------------------------------------------------------------------------------
Personal Investment Class (70,609) (37,490)
- ----------------------------------------------------------------------------------------------
Cash Management Class (7,900,652) (5,040,826)
- ----------------------------------------------------------------------------------------------
Reserve Class (39,173) (8,425)
- ----------------------------------------------------------------------------------------------
Resource Class (2,707,616) (1,968,479)
==============================================================================================
Decrease in net assets resulting from distributions (36,860,093) (22,690,885)
==============================================================================================
Share transactions-net:
Institutional Class 163,325,063 632,519,818
- ----------------------------------------------------------------------------------------------
Private Investment Class 46,220,760 (77,436,378)
- ----------------------------------------------------------------------------------------------
Personal Investment Class 483,638 (6,598,054)
- ----------------------------------------------------------------------------------------------
Cash Management Class (43,002,612) 150,447,508
- ----------------------------------------------------------------------------------------------
Reserve Class (4,721,188) 1,376,091
- ----------------------------------------------------------------------------------------------
Resource Class (9,579,676) 39,025,099
==============================================================================================
Net increase in net assets resulting from share
transactions 152,725,985 739,334,084
==============================================================================================
Net increase in net assets 152,665,011 739,374,925
==============================================================================================
NET ASSETS:
Beginning of year 3,195,936,814 2,456,561,889
==============================================================================================
End of year (including undistributed net investment income
of $0 and $0, respectively) $3,348,601,825 $3,195,936,814
______________________________________________________________________________________________
==============================================================================================
</Table>
See accompanying notes which are an integral part of the financial statements.
F-28
NOTES TO FINANCIAL STATEMENTS
March 31, 2005
NOTE 1--SIGNIFICANT ACCOUNTING POLICIES
Tax-Free Investments Trust (the "Trust") is registered under the Investment
Company Act of 1940, as amended (the "1940 Act"), as a diversified, open-end
management investment company. The Trust is organized as a Delaware statutory
trust consisting of one portfolio, the Tax-Free Cash Reserve Portfolio (the
"Fund"). The Fund currently offers multiple classes of shares. Matters affecting
each class are voted on exclusively by the shareholders of each class.
The Fund's investment objective is to provide as high a level of tax-exempt
income as is consistent with the preservation of capital and maintenance of
liquidity. Each company listed in the Schedule of Investments is organized in
the United States of America unless otherwise noted.
Under the Trust's organizational documents, each Trustee, officer, employee
or other agent of the Trust (including the Trust's investment manager) is
indemnified against certain liabilities that may arise out of performance of
their duties to the Fund. Additionally, in the normal course of business, the
Fund enters into contracts that contain a variety of indemnification clauses.
The Fund's maximum exposure under these arrangements is unknown as this would
involve future claims that may be made against the Fund that have not yet
occurred. However, the Fund has not had prior claims or losses pursuant to these
contracts.
The preparation of financial statements in conformity with accounting
principles generally accepted in the United States of America requires
management to make estimates and assumptions that affect the reported amounts of
assets and liabilities at the date of the financial statements and the reported
amounts of revenues and expenses during the reporting period. Actual results
could differ from those estimates. The following is a summary of the significant
accounting policies followed by the Fund in the preparation of its financial
statements.
A. SECURITY VALUATIONS -- The Fund's securities are valued on the basis of
amortized cost which approximates market value as permitted by Rule 2a-7
under 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.
Brokerage commissions and mark ups are considered transaction costs and
are recorded as an increase to the cost basis of securities purchased
and/or a reduction of proceeds on a sale of securities. Such transaction
costs are included in the determination of realized gain (loss) from
investment securities reported in the Statement of Operations and the
Statement of Changes in Net Assets and the realized net gains (losses) on
securities per share in the Financial Highlights. Transaction costs are
included in the calculation of the Fund's net asset value and, accordingly,
they reduce the Fund's total returns. These transaction costs are not
considered operating expenses and are not reflected in net investment
income reported in the Statement of Operations and Statement of Changes in
Net Assets, or the net investment income per share and ratios of expenses
and net investment income reported in the Financial Highlights, nor are
they limited by any expense limitation arrangements between the Fund and
the advisor.
The Fund allocates realized capital gains and losses to a class based on
the relative net assets of each class. The Fund allocates income to a class
based on the relative value of the settled shares of each class.
C. DISTRIBUTIONS -- Distributions from income are declared daily and paid
monthly. Distributions from net realized capital gain, if any, are
generally paid annually and recorded on ex-dividend date. The Fund may
elect to use a portion of the proceeds from redemptions as distributions
for federal income tax purposes.
D. FEDERAL INCOME TAXES -- The Fund intends to comply with the requirements of
Subchapter M of the Internal Revenue Code necessary to qualify as a
regulated investment company and, as such, will not be subject to federal
income taxes on otherwise taxable income (including net realized capital
gain) which is distributed to shareholders. Therefore, no provision for
federal income taxes is recorded in the financial statements.
In addition, the Fund intends to invest in securities to allow it to
qualify to pay shareholders "exempt interest dividends", as defined in the
Internal Revenue Code of 1986, as amended.
E. EXPENSES -- Fees provided for under the Rule 12b-1 plan of a particular
class of the Fund and which are directly attributable to that class are
charged to the operations of such class. All other expenses are allocated
among the classes based on relative net assets.
NOTE 2--ADVISORY FEES AND OTHER FEES PAID TO AFFILIATES
The Trust has entered into a master investment advisory agreement with A I M
Advisors, Inc. ("AIM"). Under the terms of the investment advisory agreement,
the Fund pays an advisory fee to AIM at the annual rate of 0.25% of the first
$500 million of the Fund's average daily net assets plus 0.20% of the Fund's
average daily net assets in excess of $500 million. AIM has voluntarily agreed
to waive advisory fees and/or reimburse expenses to the extent necessary to
limit total annual fund operating expenses (excluding certain items discussed
below) to 0.22% of the Fund's average daily net assets. In determining the
advisor's obligation to waive advisory fees and/or reimburse expenses, the
following expenses are not taken into account, and could cause the total annual
fund operating expenses to exceed the limit stated above: (i) Rule 12b-1 plan
fees, if any; (ii) interest; (iii) taxes; (iv) extraordinary items (these are
expenses that are not anticipated to arise from the Fund's day-to-day
operations), or items designated as such by the Fund's Board of Trustees; (v)
expenses related to a merger or reorganization, as approved by the Fund's Board
of Trustees; (vi) expenses that the Fund has incurred but did not actually pay
because of an expense offset arrangement; (vii) trustees' fees; and (viii)
federal registration fees. Currently, in addition to the expense
F-29
reimbursement arrangement with AMVESCAP PLC ("AMVESCAP") described more fully
below, the only expense offset arrangements from which the Fund may benefit are
in the form of credits that the Fund receives from banks where the Fund or its
transfer agent has deposit accounts in which it holds uninvested cash. Those
credits are used to pay certain expenses incurred by the Fund. Voluntary fee
waivers or reimbursements may be modified or discontinued at any time upon
consultation with the Board of Trustees without further notice to investors.
For the year ended March 31, 2005, AIM waived fees of $1,559,355.
For the year ended March 31, 2005, at the request of the Trustees of the
Trust, AMVESCAP agreed to reimburse $1,679 of expenses incurred by the Fund in
connection with market timing matters in the AIM Funds, including legal, audit,
shareholder reporting, communications and trustee expenses. These expenses along
with the related expense reimbursement, are included in the Statement of
Operations.
The Trust, pursuant to a master administrative services agreement with AIM,
has agreed to pay AIM for certain administrative costs incurred in providing
accounting services to the Fund. Pursuant to such agreement, for the year ended
March 31, 2005, AIM was paid $593,616.
The Trust, pursuant to a transfer agency and service agreement, has agreed
to pay AIM Investment Services, Inc. ("AISI") a fee for providing transfer
agency and shareholder services to the Fund. During the year ended March 31,
2005, AISI retained $459,758.
Under the terms of a master distribution agreement between Fund Management
Company ("FMC") and the Trust, FMC acts as the exclusive distributor of the
Fund's shares. The Trust has adopted a master distribution plan pursuant to Rule
12b-1 under the 1940 Act with respect to the Fund's Private Investment Class,
Personal Investment Class, Cash Management Class, Reserve Class and Resource
Class (the "Plan"). The Plan provides that the Private Investment Class, the
Personal Investment Class, the Cash Management Class, the Reserve Class and the
Resource Class pay up to the maximum annual rate of 0.50%, 0.75%, 0.10%, 1.00%
and 0.20%, respectively, of the average daily net assets attributable to such
class. Of this amount, up to 0.25% of the average daily net assets of each class
may be paid to furnish continuing personal shareholder services to customers who
purchase and own shares of such classes. Any amounts not paid as a service fee
under such Plan would constitute an asset-based sales charge. NASD Rules also
impose a cap on the total amount of sales charges, including asset-based sales
charges, that may be paid by any class of shares of the Fund. Currently, FMC has
elected to waive a portion of its compensation payable by the Fund such that
compensation paid pursuant to the Plan with respect to the Private Investment
Class, the Personal Investment Class, the Cash Management Class, the Reserve
Class and the Resource Class equals the maximum annual rate of 0.25%, 0.55%,
0.08%, 0.87% and 0.16%, respectively, of the average daily net assets
attributable to such class. Further, FMC voluntarily waived additional Rule
12b-1 plan fees for the Reserve Class during the year in order to increase the
yield. Waivers may be modified or discontinued at any time. Pursuant to the
Plan, for the year ended March 31, 2005, the Private Investment Class, the
Personal Investment Class, the Cash Management Class, the Reserve Class and the
Resource Class paid $448,369, $57,719, $545,722 $87,429 and $407,988,
respectively, after FMC waived Plan fees of $448,370, $20,988, $136,431, $15,601
and $101,997, respectively.
Certain officers and trustees of the Trust are officers and directors of
AIM, FMC and/or AISI.
NOTE 3--TRUSTEES' FEES
Trustees' fees represent remuneration paid to each Trustee of the Trust who is
not an "interested person" of AIM. Trustees have the option to defer
compensation payable by the Trust. Those Trustees who defer compensation have
the option to select various AIM Funds in which their deferral accounts shall be
deemed to be invested.
Current Trustees are eligible to participate in a retirement plan that
provides for benefits to be paid upon retirement to Trustees over a period of
time based on the number of years of service. The Fund may have certain former
Trustees that also participate in a retirement plan and receive benefits under
such plan.
Obligations under the deferred compensation and retirement plans represent
unsecured claims against the general assets of the Fund.
During the year ended March 31, 2005, the Fund paid legal fees of $13,558
for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the
Independent Trustees. A member of that firm is a Trustee of the Trust.
NOTE 4--BORROWINGS
Pursuant to an exemptive order from the SEC, the Fund may participate in an
interfund lending facility that AIM has established for temporary borrowings by
the AIM Funds. An interfund loan will be made under this facility only if the
loan rate (an 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. A loan will be secured by collateral if the
Fund's aggregate borrowings from all sources exceeds 10% of the Fund's total
assets. To the extent that the loan is required to be secured by collateral, the
collateral is marked to market daily to ensure that the market value is at least
102% of the outstanding principal value of the loan. The Fund did not borrow or
lend under the facility during the year ended March 31, 2005.
Additionally, the Fund is permitted to temporarily carry a negative or
overdrawn balance in its account with The Bank of New York, the custodian bank.
To compensate the custodian bank for such overdrafts, the overdrawn Fund may
either (i) leave funds in the account so the custodian can be compensated by
earning the additional interest; or (ii) compensate by paying the custodian
bank. In either case, the custodian bank will be compensated at an amount equal
to the Federal Funds rate plus 100 basis points.
F-30
NOTE 5--DISTRIBUTIONS TO SHAREHOLDERS AND TAX COMPONENTS OF NET ASSETS
DISTRIBUTIONS TO SHAREHOLDERS:
The tax character of distributions paid during the years ended March 31, 2005
and 2004 was as follows:
<Table>
<Caption>
2005 2004
- ----------------------------------------------------------------------------------------
Distributions paid from ordinary income--Tax Exempt $36,860,093 $22,690,885
________________________________________________________________________________________
========================================================================================
</Table>
TAX COMPONENTS OF NET ASSETS:
As of March 31, 2005, the components of net assets on a tax basis were as
follows:
<Table>
<Caption>
2005
- ----------------------------------------------------------------------------
Undistributed ordinary income--Tax Exempt $ 185,341
- ----------------------------------------------------------------------------
Temporary book/tax differences (185,341)
- ----------------------------------------------------------------------------
Capital loss carryforward (54,712)
- ----------------------------------------------------------------------------
Post-October capital loss deferral (7,194)
- ----------------------------------------------------------------------------
Shares of beneficial interest 3,348,663,731
============================================================================
Total net assets $3,348,601,825
____________________________________________________________________________
============================================================================
</Table>
The temporary book/tax differences are a result of timing differences
between book and tax recognition of income and/or expenses. The Fund's temporary
book/tax differences are the result of the trustee deferral of compensation and
retirement plan expenses.
Capital loss carryforward is calculated and reported as of a specific date.
Results of transactions and other activity after that date may affect the amount
of capital loss carryforward actually available for the Fund to utilize. The
ability to utilize capital loss carryforward in the future may be limited under
the Internal Revenue Code and related regulations based on the results of future
transactions.
The Fund has a capital loss carryforward as of March 31, 2005 which expires
as follows:
<Table>
<Caption>
CAPITAL LOSS
EXPIRATION CARRYFORWARD*
- -----------------------------------------------------------------------------
March 31, 2011 $ 933
- -----------------------------------------------------------------------------
March 31, 2013 53,779
=============================================================================
Total capital loss carryforward $54,712
_____________________________________________________________________________
=============================================================================
</Table>
* Capital loss carryforward as of the date listed above is reduced for
limitations, if any, to the extent required by the Internal Revenue Code.
F-31
NOTE 6--SHARE INFORMATION
The Fund currently offers six different classes of shares: Institutional Class,
Private Investment Class, Personal Investment Class, Cash Management Class,
Reserve Class and Resource Class.
<Table>
<Caption>
CHANGES IN SHARES OUTSTANDING(a)
- ---------------------------------------------------------------------------------------------------------------------------------
YEAR ENDED MARCH 31,
--------------------------------------------------------------------------
2005 2004
----------------------------------- -----------------------------------
SHARES AMOUNT SHARES AMOUNT
- ---------------------------------------------------------------------------------------------------------------------------------
Sold:
Institutional Class 19,309,850,248 $ 19,309,850,248 13,446,683,719 $ 13,446,683,719
- ---------------------------------------------------------------------------------------------------------------------------------
Private Investment Class 442,201,609 442,201,609 489,285,624 489,285,624
- ---------------------------------------------------------------------------------------------------------------------------------
Personal Investment Class 31,788,215 31,788,215 26,756,133 26,756,133
- ---------------------------------------------------------------------------------------------------------------------------------
Cash Management Class 5,913,083,202 5,913,083,202 5,641,820,633 5,641,820,633
- ---------------------------------------------------------------------------------------------------------------------------------
Reserve Class 138,866,847 138,866,847 156,764,612 156,764,612
- ---------------------------------------------------------------------------------------------------------------------------------
Resource Class 1,776,129,695 1,776,129,695 1,508,376,051 1,508,376,051
=================================================================================================================================
Issued as reinvestment of dividends:
Institutional Class 13,098,927 13,098,927 7,301,226 7,301,226
- ---------------------------------------------------------------------------------------------------------------------------------
Private Investment Class 1,185,307 1,185,307 737,747 737,747
- ---------------------------------------------------------------------------------------------------------------------------------
Personal Investment Class 9,987 9,987 4,054 4,054
- ---------------------------------------------------------------------------------------------------------------------------------
Cash Management Class 5,725,182 5,725,182 4,115,815 4,115,815
- ---------------------------------------------------------------------------------------------------------------------------------
Reserve Class 32,528 32,528 8,921 8,921
- ---------------------------------------------------------------------------------------------------------------------------------
Resource Class 2,383,423 2,383,423 1,860,224 1,860,224
=================================================================================================================================
Reacquired:
Institutional Class (19,159,624,112) (19,159,624,112) (12,821,465,127) (12,821,465,127)
- ---------------------------------------------------------------------------------------------------------------------------------
Private Investment Class (397,166,156) (397,166,156) (567,459,749) (567,459,749)
- ---------------------------------------------------------------------------------------------------------------------------------
Personal Investment Class (31,314,564) (31,314,564) (33,358,241) (33,358,241)
- ---------------------------------------------------------------------------------------------------------------------------------
Cash Management Class (5,961,810,996) (5,961,810,996) (5,495,488,940) (5,495,488,940)
- ---------------------------------------------------------------------------------------------------------------------------------
Reserve Class (143,620,563) (143,620,563) (155,397,442) (155,397,442)
- ---------------------------------------------------------------------------------------------------------------------------------
Resource Class (1,788,092,794) (1,788,092,794) (1,471,211,176) (1,471,211,176)
=================================================================================================================================
152,725,985 $ 152,725,985 739,334,084 $ 739,334,084
_________________________________________________________________________________________________________________________________
=================================================================================================================================
</Table>
(a) There are three entities that are each record owners of more than 5% of
the outstanding shares of the Fund and in the aggregate they own 57% of
the outstanding shares of the Fund. AIM Distributors has an agreement
with these entities to sell Fund shares. The Fund, AIM and/or AIM
affiliates may make payments to these entities, which are considered to
be related to the Fund, for providing services to the Fund, AIM and/or
AIM affiliates including but not limited to services such as, securities
brokerage, distribution, third party record keeping and account
servicing. The Trust has no knowledge as to whether all or any portion
of the shares owned of record by these entities are also owned
beneficially.
F-32
NOTE 7--FINANCIAL HIGHLIGHTS
The following schedule presents financial highlights for a share of the Fund
outstanding throughout the periods indicated.
<Table>
<Caption>
PERSONAL INVESTMENT CLASS
--------------------------------------------------------------
DECEMBER 4, 2000
(DATE SALES
YEAR ENDED MARCH 31, COMMENCED) TO
------------------------------------------ MARCH 31,
2005 2004 2003 2002 2001
- ----------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
- ----------------------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income 0.01 0.003 0.01 0.02(a) 0.01
============================================================================================================================
Less distributions from net investment income (0.01) (0.003) (0.01) (0.02) (0.01)
============================================================================================================================
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
____________________________________________________________________________________________________________________________
============================================================================================================================
Total return(b) 0.68% 0.28% 0.69% 1.66% 0.95%
____________________________________________________________________________________________________________________________
============================================================================================================================
Ratios/supplemental data:
Net assets, end of period (000s omitted) $10,877 $10,394 $16,991 $5,102 $ 722
____________________________________________________________________________________________________________________________
============================================================================================================================
Ratio of expenses to average net assets:
With fee waivers and/or expense reimbursements 0.77%(c) 0.77% 0.76% 0.72% 0.70%(d)
- ----------------------------------------------------------------------------------------------------------------------------
Without fee waivers and/or expense reimbursements 1.02%(c) 1.02% 1.02% 1.03% 1.04%(d)
____________________________________________________________________________________________________________________________
============================================================================================================================
Ratio of net investment income to average net assets 0.69%(c) 0.28% 0.66% 1.51% 3.35%(d)
____________________________________________________________________________________________________________________________
============================================================================================================================
</Table>
(a) Calculated using average shares outstanding.
(b) Includes adjustments in accordance with accounting principles generally
accepted in the United States of America and is not annualized for
periods less than one year.
(c) Ratios are based on average daily net assets of $10,494,220.
(d) Annualized.
NOTE 8--CHANGE IN INDEPENDENT REGISTERED ACCOUNTING FIRM
On March 23, 2005, the Audit Committee (the "Audit Committee") of the Board of
Trustees of the Trust appointed PricewaterhouseCoopers LLP ("PWC") as the
independent registered public accounting firm of the Fund for the fiscal year
ending March 31, 2006. For the prior reporting period, Ernst & Young ("E&Y") was
the Fund's independent registered public accounting firm. The change in the
Fund's independent auditors was part of an effort by the Audit Committee to
increase operational efficiencies by reducing the number of different audit
firms engaged by the Audit Committee to audit AIM Funds with March 31 fiscal
year ends. The Fund is in the process of obtaining a formal resignation from E&Y
as the independent registered public accounting firm of the Fund.
E&Y's report on the financial statements of the Fund for the past two years
did not contain an adverse or disclaimer of opinion, and was not qualified or
modified as to uncertainty, audit scope or accounting principles. During the
period E&Y was engaged, there were no disagreements with E&Y on any matter of
accounting principles or practices, financial statement disclosure, or auditing
scope or procedure which, if not resolved to E&Y's satisfaction, would have
caused it to make reference to that matter in connection with its report.
F-33
NOTE 9--LEGAL PROCEEDINGS
Terms used in the Legal Proceedings Note are defined terms solely for the
purpose of this note.
SETTLED ENFORCEMENT ACTIONS AND INVESTIGATIONS RELATED TO MARKET TIMING
On October 8, 2004, INVESCO Funds Group, Inc. ("IFG") (the former investment
advisor to certain AIM Funds) and A I M Advisors, Inc. ("AIM") (the Fund's
investment advisor) reached final settlements with certain regulators, including
without limitation the Securities and Exchange Commission ("SEC"), the New York
Attorney General ("NYAG") and the Colorado Attorney General ("COAG"), to resolve
civil enforcement actions and investigations related to market timing activity
and related issues in the AIM Funds, including those formerly advised by IFG.
These regulators alleged, in substance, that IFG and AIM failed to disclose in
the prospectuses for the AIM Funds that they advised and to the independent
directors/trustees of such Funds that they had entered into certain arrangements
permitting market timing of such Funds, thereby breaching their fiduciary duties
to such Funds. As a result of the foregoing, the regulators alleged that IFG and
AIM breached various Federal and state securities, business and consumer
protection laws. On the same date, A I M Distributors, Inc. ("ADI") (the
distributor of the retail AIM Funds) reached a final settlement with the SEC to
resolve an investigation relating to market timing activity and related issues
in the AIM Funds. The SEC also alleged that ADI violated various Federal
securities laws. The SEC also has settled related market timing enforcement
actions brought against certain former officers and employees of IFG.
Under the terms of the settlements, IFG agreed to pay a total of $325 million,
of which $110 million is civil penalties. Of this $325 million total payment,
half has been paid and the remaining half will be paid on or before December 31,
2005. AIM and ADI agreed to pay a total of $50 million, of which $30 million is
civil penalties, all of which has been paid. The entire $325 million IFG
settlement fund will be made available for distribution to the shareholders of
those AIM Funds that IFG formerly advised that were harmed by market timing
activity, and the entire $50 million settlement fund by AIM and ADI will be made
available for distribution to the shareholders of those AIM Funds advised by AIM
that were harmed by market timing activity, all as to be determined by an
independent distribution consultant. The IFG and AIM settlement funds may
increase as a result of contributions from third parties who reach final
settlements with the SEC or other regulators to resolve allegations of market
timing and/or late trading. The settlement funds will be distributed in
accordance with a methodology to be determined by the independent distribution
consultant, in consultation with AIM and the independent trustees of the AIM
Funds and acceptable to the staff of the SEC. Under the settlements with the
NYAG and COAG, AIM has agreed to reduce management fees on certain equity and
balanced AIM Funds by $15 million per year for the next five years, based upon
effective fee rates and assets under management as of July 1, 2004, not to
increase certain management fees and to provide more information to investors
regarding fees.
Under the terms of the settlements, AIM is undertaking certain governance and
compliance reforms, including maintaining an internal controls committee and
retaining an independent compliance consultant and a corporate ombudsman. Also,
commencing in 2007 and at least once every other year thereafter, AIM will
undergo a compliance review by an independent third party. In addition, under
the terms of the settlements, AIM has undertaken to cause the AIM Funds to
operate in accordance with certain governance policies and practices, including
retaining a full-time independent senior officer whose duties include monitoring
compliance and managing the process by which proposed management fees to be
charged the AIM Funds are negotiated. Also, commencing in 2008 and not less than
every fifth calendar year thereafter, the AIM Funds will hold shareholder
meetings at which their Boards of Trustees will be elected.
At the request of the trustees of the AIM Funds, AMVESCAP PLC ("AMVESCAP"),
the parent company of IFG and AIM, has agreed to reimburse expenses incurred by
such Funds related to market timing matters.
The SEC has also settled market timing enforcement actions against Raymond R.
Cunningham (the former president and chief executive officer of IFG and a former
member of the board of directors of the AIM Funds formerly advised by IFG),
Timothy J. Miller (the former chief investment officer and a former portfolio
manager for IFG), Thomas A. Kolbe (the former national sales manager of IFG) and
Michael D. Legoski (a former assistant vice president in IFG's sales
department). As part of these settlements, the SEC ordered these individuals to
pay restitution and civil penalties in various amounts and prohibited them from
associating with, or serving as an officer or director of, an investment
advisor, broker, dealer and/or investment company, as applicable, for certain
periods of time.
The payments made in connection with the above-referenced settlements by IFG,
AIM and ADI will total approximately $375 million (not including AIM's agreement
to reduce management fees on certain equity and balanced AIM Funds by $15
million per year for the next five years, based upon effective fee rates and
assets under management as of July 1, 2004). The manner in which the settlement
payments will be distributed is unknown at the present time and will be
determined by an independent distribution consultant appointed under the
settlement agreements. Therefore, management of AIM and the Fund are unable at
the present time to estimate the impact, if any, that the distribution of the
settlement payments may have on the Fund or whether such distribution will have
an impact on the Fund's financial statements in the future.
At the present time, management of AIM and the Fund are unable to estimate the
impact, if any, that the outcome of the Regulatory Inquiries and Pending
Litigation described below may have on AIM, ADI or the Fund.
REGULATORY INQUIRIES AND PENDING LITIGATION
The mutual fund industry as a whole is currently subject to regulatory
inquiries and litigation related to a wide range of issues. These issues
include, among others, market timing activity, late trading, fair value pricing,
excessive or improper advisory and/or distribution fees, mutual fund sales
practices, including but not limited to revenue sharing and directed-brokerage
arrangements, investments in securities of other registered investment
companies, contractual plans, issues related to Section 529 college savings
plans, procedures for locating lost security holders and participation in class
action settlements.
As described more fully below, IFG and AIM are the subject of a number of
ongoing regulatory inquiries and civil lawsuits related to one or more of the
issues currently being scrutinized by various Federal and state regulators,
including but not limited to those issues described above. Additional regulatory
actions and/or civil lawsuits related to the above or other issues may be filed
against the AIM Funds, IFG, AIM and/or related entities and
F-34
NOTE 9--LEGAL PROCEEDINGS (CONTINUED)
individuals in the future. Additional regulatory inquiries related to the above
or other issues also may be received by the AIM Funds, IFG, AIM and/or related
entities and individuals in the future.
Ongoing Regulatory Inquiries Concerning IFG and AIM
IFG, certain related entities, certain of their current and former officers
and/or certain of the AIM Funds formerly advised by IFG have received regulatory
inquiries in the form of subpoenas or other oral or written requests for
information and/or documents related to one or more of the following issues,
some of which concern one or more such Funds: market timing activity, late
trading, fair value pricing, excessive or improper advisory and/or distribution
fees, mutual fund sales practices, including revenue sharing and
directed-brokerage arrangements, and investments in securities of other
registered investment companies. These regulators include the SEC, the NASD,
Inc. ("NASD"), the Florida Department of Financial Services, the Attorney
General of the State of West Virginia, the West Virginia Securities Commission
and the Bureau of Securities of the State of New Jersey. IFG and certain of
these other parties also have received more limited inquiries from the United
States Department of Labor ("DOL") and the United States Attorney's Office for
the Southern District of New York, some of which concern one or more of the AIM
Funds formerly advised by IFG. IFG is providing full cooperation with respect to
these inquiries.
AIM, certain related entities, certain of their current and former officers
and/or certain of the AIM Funds have received regulatory inquiries in the form
of subpoenas or other oral or written requests for information and/or documents
related to one or more of the following issues, some of which concern one or
more AIM Funds: market timing activity, late trading, fair value pricing,
excessive or improper advisory and/or distribution fees, mutual fund sales
practices, including revenue sharing and directed-brokerage arrangements,
investments in securities of other registered investment companies, contractual
plans, issues related to Section 529 college savings plans and procedures for
locating lost securityholders. These regulators include the SEC, the NASD, the
Department of Banking for the State of Connecticut, the Attorney General of the
State of West Virginia, the West Virginia Securities Commission and the Bureau
of Securities of the State of New Jersey. AIM and certain of these other parties
also have received more limited inquiries from the SEC, the NASD, the DOL, the
Internal Revenue Service, the United States Attorney's Office for the Southern
District of New York, the United States Attorney's Office for the Central
District of California, the United States Attorney's Office for the District of
Massachusetts, the Massachusetts Securities Division, the U.S. Postal Inspection
Service and the Commodity Futures Trading Commission, some of which concern one
or more AIM Funds. AIM is providing full cooperation with respect to these
inquiries.
Pending Regulatory Civil Action Alleging Market Timing
On April 12, 2005, the Attorney General of the State of West Virginia ("WVAG")
filed civil proceedings against AIM, IFG and ADI, as well as numerous unrelated
mutual fund complexes and financial institutions. None of the AIM Funds has been
named as a defendant in these proceedings. The WVAG complaint, filed in the
Circuit Court of Marshall County, West Virginia [Civil Action No. 05-C-81],
alleges, in substance, that AIM, IFG and ADI engaged in unfair competition
and/or unfair or deceptive trade practices by failing to disclose in the
prospectuses for the AIM Funds, including those formerly advised by IFG, that
they had entered into certain arrangements permitting market timing of such
Funds. As a result of the foregoing, the WVAG alleges violations of W. Va. Code
sec. 46A-1-101, et seq. (the West Virginia Consumer Credit and Protection Act).
The WVAG complaint is seeking injunctive relief; civil monetary penalties; a
writ of quo warranto against the defendants; pre-judgment and post-judgment
interest; costs and expenses, including counsel fees; and other relief.
If AIM is unsuccessful in its defense of the WVAG proceedings, it could be
barred from serving as an investment adviser for any investment company
registered under the Investment Company Act of 1940, as amended (a "registered
investment company"). Such results could affect the ability of AIM or any other
investment advisor directly or indirectly owned by AMVESCAP, from serving as an
investment advisor to any registered investment company, including your Fund.
Your Fund has been informed by AIM that, if these results occur, AIM will seek
exemptive relief from the SEC to permit it to continue to serve as your Fund's
investment advisor. There is no assurance that such exemptive relief will be
granted.
Private Civil Actions Alleging Market Timing
Multiple civil lawsuits, including purported class action and shareholder
derivative suits, have been filed against various parties (including, depending
on the lawsuit, certain AIM Funds, IFG, AIM, AIM Management, AMVESCAP, certain
related entities, certain of their current and former officers and/or certain
unrelated third parties) making allegations that are similar in many respects to
those in the settled regulatory actions brought by the SEC, the NYAG and the
COAG concerning market timing activity in the AIM Funds. These lawsuits allege a
variety of theories of recovery, including but not limited to: (i) violation of
various provisions of the Federal and state securities laws; (ii) violation of
various provisions of ERISA; (iii) breach of fiduciary duty; and/or (iv) breach
of contract. These lawsuits were initiated in both Federal and state courts and
seek such remedies as compensatory damages; restitution; injunctive relief;
disgorgement of management fees; imposition of a constructive trust; removal of
certain directors and/or employees; various corrective measures under ERISA;
rescission of certain Funds' advisory agreements; interest; and attorneys' and
experts' fees.
All lawsuits based on allegations of market timing, late trading, and related
issues have been transferred to the United States District Court for the
District of Maryland (the "MDL Court") for consolidated or coordinated pre-trial
proceedings. Pursuant to an Order of the MDL Court, plaintiffs consolidated
their claims for pre-trial purposes into three amended complaints against
various AIM- and IFG-related parties: (i) a Consolidated Amended Class Action
Complaint purportedly brought on behalf of shareholders of the AIM Funds; (ii) a
Consolidated Amended Fund Derivative Complaint purportedly brought on behalf of
the AIM Funds and fund registrants; and (iii) an Amended Class Action Complaint
for Violations of the Employee Retirement Income Securities Act ("ERISA")
purportedly brought on behalf of participants in AMVESCAP's 401(k) plan. The
plaintiffs in two of the underlying lawsuits continue to seek remand of their
lawsuit to state court.
F-35
NOTE 9--LEGAL PROCEEDINGS (CONTINUED)
Private Civil Actions Alleging Improper Use of Fair Value Pricing
Multiple civil class action lawsuits have been filed against various parties
(including, depending on the lawsuit, certain AIM Funds, IFG and/or AIM)
alleging that certain AIM Funds inadequately employed fair value pricing. These
lawsuits allege a variety of theories of recovery, including but not limited to:
(i) violations of various provisions of the Federal securities laws; (ii) common
law breach of duty; and (iii) common law negligence and gross negligence. These
lawsuits have been filed in both Federal and state courts and seek such remedies
as compensatory and punitive damages; interest; and attorneys' fees and costs.
Based on a recent court decision, the state court action has been removed to
Federal court.
Private Civil Actions Alleging Excessive Advisory and/or Distribution Fees
Multiple civil lawsuits, including purported class action and shareholder
derivative suits, have been filed against various parties (including, depending
on the lawsuit, IFG, AIM, INVESCO Institutional (N.A.), Inc. ("IINA"), ADI
and/or INVESCO Distributors, Inc. ("INVESCO Distributors")) alleging that the
defendants charged excessive advisory and/or distribution fees and failed to
pass on to shareholders the perceived savings generated by economies of scale.
Certain of these lawsuits also allege that the defendants adopted unlawful
distribution plans. These lawsuits allege a variety of theories of recovery,
including but not limited to: (i) violation of various provisions of the Federal
securities laws; (ii) breach of fiduciary duty; and/or (iii) breach of contract.
These lawsuits have been filed in Federal courts and seek such remedies as
damages; injunctive relief; rescission of certain Funds' advisory agreements and
distribution plans; interest; prospective relief in the form of reduced fees;
and attorneys' and experts' fees. All of these lawsuits have been transferred to
the United States District Court for the Southern District of Texas, Houston
Division and subsequently consolidated for pre-trial purposes into one lawsuit.
Private Civil Actions Alleging Improper Charging of Distribution Fees on Limited
Offering Funds or Share Classes
Multiple civil lawsuits, including shareholder derivative suits, have been
filed against various parties (including, depending on the lawsuit, IFG, AIM,
ADI and/or certain of the trustees of the AIM Funds) alleging that the
defendants breached their fiduciary duties by charging distribution fees while
funds and/or specific share classes were closed generally to new investors
and/or while other share classes of the same fund were not charged the same
distribution fees. These lawsuits allege a variety of theories of recovery,
including but not limited to: (i) violation of various provisions of the Federal
securities laws; and (ii) breach of fiduciary duty. These lawsuits have been
filed in Federal courts and seek such remedies as damages; injunctive relief;
and attorneys' and experts' fees.
Private Civil Actions Alleging Improper Mutual Fund Sales Practices and
Directed-Brokerage Arrangements
Multiple civil lawsuits, including purported class action and shareholder
derivative suits, have been filed against various parties (including, depending
on the lawsuit, AIM Management, IFG, AIM, AIM Investment Services, Inc. ("AIS")
and/or certain of the trustees of the AIM Funds) alleging that the defendants
improperly used the assets of the AIM Funds to pay brokers to aggressively
promote the sale of the AIM Funds over other mutual funds and that the
defendants concealed such payments from investors by disguising them as
brokerage commissions. These lawsuits allege a variety of theories of recovery,
including but not limited to: (i) violation of various provisions of the Federal
securities laws; (ii) breach of fiduciary duty; and (iii) aiding and abetting a
breach of fiduciary duty. These lawsuits have been filed in Federal courts and
seek such remedies as compensatory and punitive damages; rescission of certain
Funds' advisory agreements and distribution plans and recovery of all fees paid;
an accounting of all fund-related fees, commissions and soft dollar payments;
restitution of all unlawfully or discriminatorily obtained fees and charges; and
attorneys' and experts' fees. These actions have been consolidated for pre-trial
purposes.
Private Civil Action Alleging Failure to Ensure Participation in Class Action
Settlements
A civil lawsuit, purporting to be a class action lawsuit, has been filed
against AIM, IINA, A I M Capital Management, Inc. and the trustees of the AIM
Funds alleging that the defendants breached their fiduciary duties by failing to
ensure that the AIM Funds participated in class action settlements in which the
AIM Funds were eligible to participate. This lawsuit alleges as theories of
recovery: (i) violation of various provisions of the Federal securities laws;
(ii) common law breach of fiduciary duty; and (iii) common law negligence. This
lawsuit has been filed in Federal court and seeks such remedies as compensatory
and punitive damages; forfeiture of all commissions and fees paid by the class
of plaintiffs; and costs and attorneys' fees.
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
* * * * * *
As a result of the matters discussed above, investors in the AIM Funds might
react by redeeming their investments. This might require the Funds to sell
investments to provide for sufficient liquidity and could also have an adverse
effect on the investment performance of the Funds.
F-36
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Shareholders of Tax-Free Cash Reserve Portfolio
and the Board of Trustees of Tax-Free Investments Trust:
We have audited the accompanying statement of assets and liabilities of Tax-Free
Cash Reserve Portfolio (a portfolio of Tax-Free Investments Trust), including
the schedule of investments, as of March 31, 2005, and the related statement of
operations for the year then ended, the statements of changes in net assets for
each of the two years in the period then ended, and the financial highlights for
each of the five years in the period then ended. These financial statements and
financial highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. We were
not engaged to perform an audit of the Fund's internal control over financial
reporting. Our audits included consideration of internal control over financial
reporting as a basis for designing audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Fund's internal control over financial reporting.
Accordingly, we express no such opinion. An audit also includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements and financial highlights, assessing the accounting principles used
and significant estimates made by management, and evaluating the overall
financial statement presentation. Our procedures included confirmation of
securities owned as of March 31, 2005 by correspondence with the custodian and
brokers or by other appropriate auditing procedures where replies from brokers
were not received. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Tax-Free Cash Reserve Portfolio as of March 31, 2005, the results of its
operations for the year then ended, the changes in its net assets for each of
the two years in the period then ended, and the financial highlights for each of
the five years in the period then ended, in conformity with U.S. generally
accepted accounting principles.
Houston, Texas -s- ERNST & YOUNG LLP
May 18, 2005
F-37
TRUSTEES AND OFFICERS
As of March 31, 2005
The address of each trustee and officer of Tax-Free Investments Trust (the
"Trust"), is 11 Greenway Plaza, Suite 100, Houston, Texas 77046. Each trustee
oversees 114 portfolios in the AIM Funds complex. The trustees serve for the
life of the Trust, subject to their earlier death, incapacitation, resignation,
retirement or removal as more specifically provided in the Trust's
organizational documents. Column two below includes length of time served with
predecessor entities, if any.
<Table>
<Caption>
TRUSTEE AND/
NAME, YEAR OF BIRTH AND OR OFFICER PRINCIPAL OCCUPATION(S) OTHER DIRECTORSHIP(S)
POSITION(S) HELD WITH THE TRUST SINCE DURING PAST 5 YEARS HELD BY TRUSTEE
- --------------------------------------------------------------------------------------------------------------------
INTERESTED PERSONS
- --------------------------------------------------------------------------------------------------------------------
Robert H. Graham(1) -- 1946 1977 Director and Chairman, A I M None
Trustee, Vice Chair and Management Group Inc.
President (financial services holding
company); Director and Vice
Chairman, AMVESCAP PLC and
Chairman, AMVESCAP PLC -- AIM
Division (parent of AIM and a
global investment management
firm)
Formerly: President and Chief
Executive Officer, A I M
Management Group Inc.;
Director, Chairman and
President, A I M Advisors,
Inc. (registered investment
advisor); Director and
Chairman, A I M Capital
Management, Inc. (registered
investment advisor), A I M
Distributors, Inc. (registered
broker dealer), AIM Investment
Services, Inc., (registered
transfer agent), and Fund
Management Company (registered
broker dealer); and Chief
Executive Officer, AMVESCAP
PLC -- Managed Products
- --------------------------------------------------------------------------------------------------------------------
Mark H. Williamson(2) -- 1951 2003 Director, President and Chief None
Trustee and Executive Vice Executive Officer, A I M
President Management Group Inc.;
Director, Chairman and
President, A I M Advisors,
Inc.; Director, A I M Capital
Management, Inc. and A I M
Distributors, Inc.; Director
and Chairman, AIM Investment
Services, Inc., Fund
Management Company and INVESCO
Distributors, Inc. (registered
broker dealer); and Chief
Executive Officer, AMVESCAP
PLC -- AIM Division (parent of
AIM and a global investment
management firm)
Formerly: Director, Chairman,
President and Chief Executive
Officer, INVESCO Funds Group,
Inc.; President and Chief
Executive Officer, INVESCO
Distributors, Inc.; Chief
Executive Officer, AMVESCAP
PLC -- Managed Products
- --------------------------------------------------------------------------------------------------------------------
INDEPENDENT TRUSTEES
- --------------------------------------------------------------------------------------------------------------------
Bruce L. Crockett(3) -- 1944 1992 Chairman, Crockett Technology ACE Limited (insurance
Trustee and Chair Associates (technology company); and Captaris,
consulting company) Inc. (unified messaging
provider)
- --------------------------------------------------------------------------------------------------------------------
Bob R. Baker -- 1936 2003 Retired None
Trustee
- --------------------------------------------------------------------------------------------------------------------
Frank S. Bayley -- 1939 2001 Retired Badgley Funds, Inc.
Trustee (registered investment
Formerly: Partner, law firm of company)
Baker & McKenzie
- --------------------------------------------------------------------------------------------------------------------
James T. Bunch -- 1942 2003 Co-President and Founder, None
Trustee Green, Manning & Bunch Ltd.,
(investment banking firm); and
Director, Policy Studies, Inc.
and Van Gilder Insurance
Corporation
- --------------------------------------------------------------------------------------------------------------------
Albert R. Dowden -- 1941 2000 Director of a number of public None
Trustee and private business
corporations, including the
Boss Group Ltd. (private
investment and management);
Cortland Trust, Inc.
(Chairman) (registered
investment company); Annuity
and Life Re (Holdings), Ltd.
(insurance company); and
CompuDyne Corporation
(provider of products and
services to the public
security market)
Formerly: Director, President
and Chief Executive Officer,
Volvo Group North America,
Inc.; Senior Vice President,
AB Volvo; and director of
various affiliated Volvo
companies
- --------------------------------------------------------------------------------------------------------------------
Edward K. Dunn, Jr. -- 1935 1998 Retired None
Trustee
Formerly: Chairman, Mercantile
Mortgage Corp.; President and
Chief Operating Officer,
Mercantile-Safe Deposit &
Trust Co.; and President,
Mercantile Bankshares Corp.
- --------------------------------------------------------------------------------------------------------------------
Jack M. Fields -- 1952 1997 Chief Executive Officer, Administaff, and
Trustee Twenty First Century Group, Discovery Global
Inc. (government affairs Education Fund
company) (owner) Dos Angelos (non-profit)
Ranch, L.P.
Formerly: Chief Executive
Officer, Texana Timber LP
(sustainable forestry company)
- --------------------------------------------------------------------------------------------------------------------
Carl Frischling -- 1937 1992 Partner, law firm of Kramer Cortland Trust, Inc.
Trustee Levin Naftalis and Frankel LLP (registered investment
company)
- --------------------------------------------------------------------------------------------------------------------
Gerald J. Lewis -- 1933 2003 Chairman, Lawsuit Resolution General Chemical Group,
Trustee Services (San Diego, Inc.
California)
- --------------------------------------------------------------------------------------------------------------------
Prema Mathai-Davis -- 1950 1998 Formerly: Chief Executive None
Trustee Officer, YWCA of the USA
- --------------------------------------------------------------------------------------------------------------------
</Table>
(1) Mr. Graham is considered an interested person of the Trust because he is a
director of AMVESCAP PLC, parent of the advisor to the Trust. Prior to
October 4, 2004, Mr. Graham served as Chairman of the Board of Trustees of
the Trust.
(2) Mr. Williamson is considered an interested person of the Trust because he is
an officer and a director of the advisor to, and a director of the principal
underwriter of, the Trust.
(3) Mr. Crockett was elected Chair of the Board of Trustees of the Trust
effective October 4, 2004.
TRUSTEES AND OFFICERS (continued)
As of March 31, 2005
The address of each trustee and officer of Tax-Free Investments Trust (the
"Trust"), is 11 Greenway Plaza, Suite 100, Houston, Texas 77046. Each trustee
oversees 114 portfolios in the AIM Funds complex. The trustees serve for the
life of the Trust, subject to their earlier death, incapacitation, resignation,
retirement or removal as more specifically provided in the Trust's
organizational documents. Column two below includes length of time served with
predecessor entities, if any.
<Table>
<Caption>
TRUSTEE AND/
NAME, YEAR OF BIRTH AND OR OFFICER PRINCIPAL OCCUPATION(S) OTHER DIRECTORSHIP(S)
POSITION(S) HELD WITH THE TRUST SINCE DURING PAST 5 YEARS HELD BY TRUSTEE
- -------------------------------------------------------------------------------------------------------------------------------
Lewis F. Pennock -- 1942 1992 Partner, law firm of Pennock & Cooper None
Trustee
- -------------------------------------------------------------------------------------------------------------------------------
Ruth H. Quigley -- 1935 2001 Retired None
Trustee
- -------------------------------------------------------------------------------------------------------------------------------
Larry Soll -- 1942 2003 Retired None
Trustee
- -------------------------------------------------------------------------------------------------------------------------------
OTHER OFFICERS
- -------------------------------------------------------------------------------------------------------------------------------
Lisa O. Brinkley(4) -- 1959 2004 Senior Vice President, A I M Management N/A
Senior Vice President and Chief Group Inc.; Senior Vice President and
Compliance Officer Chief Compliance Officer, A I M
Advisors, Inc.; Vice President and Chief
Compliance Officer, A I M Capital
Management, Inc. and Vice President,
A I M Distributors, Inc., AIM Investment
Services, Inc. and Fund Management
Company
Formerly: Senior Vice President and
Compliance Director, Delaware
Investments Family of Funds and Chief
Compliance Officer, A I M Distributors,
Inc.
- -------------------------------------------------------------------------------------------------------------------------------
Russell C. Burk(5) -- 1958 2005 Formerly: Director of Compliance and N/A
Senior Vice President Assistant General Counsel, ICON
Advisers, Inc.; Financial Consultant,
Merrill Lynch; General Counsel and
Director of Compliance, ALPS Mutual
Funds, Inc.
- -------------------------------------------------------------------------------------------------------------------------------
Kevin M. Carome -- 1956 2003 Director, Senior Vice President, N/A
Senior Vice President, Secretary and General Counsel, A I M
Secretary and Chief Legal Management Group Inc. and A I M
Officer Advisors, Inc.; Director and Vice
President, INVESCO Distributors, Inc.;
Vice President, A I M Capital
Management, Inc., and AIM Investment
Services, Inc.; Director, Vice President
and General Counsel, Fund Management
Company; and Senior Vice President,
A I M Distributors, Inc.
Formerly: Senior Vice President and
General Counsel, Liberty Financial
Companies, Inc.; and Senior Vice
President and General Counsel, Liberty
Funds Group, LLC; and Vice President,
A I M Distributors, Inc.
- -------------------------------------------------------------------------------------------------------------------------------
Stuart W. Coco -- 1955 1992 Managing Director and Director of Money N/A
Vice President Market Research and Special Projects,
A I M Capital Management, Inc.; and Vice
President, A I M Advisors, Inc.
- -------------------------------------------------------------------------------------------------------------------------------
Sidney M. Dilgren -- 1961 2004 Vice President and Fund Treasurer, A I M N/A
Vice President and Treasurer Advisors, Inc.
Formerly: Senior Vice President, AIM
Investment Services, Inc.; and Vice
President, A I M Distributors, Inc.
- -------------------------------------------------------------------------------------------------------------------------------
J. Philip Ferguson(6) -- 1945 2005 Senior Vice President and Chief N/A
Vice President Investment Officer, A I M Advisors Inc.;
Director, Chairman, Chief Executive
Officer, President and Chief Investment
Officer, A I M Capital Management, Inc.;
Executive Vice President, A I M
Management Group Inc.
Formerly: Senior Vice President, AIM
Private Asset Management, Inc.; Chief
Equity Officer, and Senior Investment
Officer, A I M Capital Management, Inc.;
and Managing Partner, Beutel, Goodman
Capital Management
- -------------------------------------------------------------------------------------------------------------------------------
Karen Dunn Kelley -- 1960 1992 Director of Cash Management, Managing N/A
Vice President Director and Chief Cash Management
Officer, A I M Capital Management, Inc;
Director and President, Fund Management
Company; and Vice President, A I M
Advisors, Inc.
- -------------------------------------------------------------------------------------------------------------------------------
</Table>
(4) Ms. Brinkley was elected Senior Vice President and Chief Compliance Officer
of the Trust effective September 20, 2004.
(5) Mr. Burk was elected Senior Vice President of the Trust effective February
15, 2005.
(6) Mr. Ferguson was elected Vice President of the Trust effective February 24,
2005.
The Statement of Additional Information of the Trust includes additional
information about the Fund's Trustees and is available upon request, without
charge, by calling 1.800.959.4246.
<Table>
OFFICE OF THE FUND INVESTMENT ADVISOR DISTRIBUTOR AUDITORS
11 Greenway Plaza A I M Advisors, Inc. Fund Management Company Ernst & Young LLP
Suite 100 11 Greenway Plaza 11 Greenway Plaza 5 Houston Center
Houston, TX 77046-1173 Suite 100 Suite 100 1401 McKinney, Suite
Houston, TX 77046-1173 Houston, TX 77046-1173 1200
Houston, TX 77010-4035
COUNSEL TO THE
COUNSEL TO THE FUND INDEPENDENT TRUSTEES TRANSFER AGENT CUSTODIAN
Ballard Spahr Kramer, Levin, Naftalis AIM Investment The Bank of New York
Andrews & Ingersoll, LLP & Frankel LLP Services, Inc. 2 Hanson Place
1735 Market Street 1177 Avenue of the P.O. Box 4739 Brooklyn, NY 11217-1431
Philadelphia, PA 19103-7599 Americas Houston, TX 77210-4739
New York, NY 10036-2714
</Table>
REQUIRED FEDERAL INCOME TAX INFORMATION (UNAUDITED)
We are required by Internal Revenue Code to advise you within 60 days of the
Fund's fiscal year end as to the federal tax status of dividends paid by the
Fund during its fiscal year ended March 31, 2005.
AIM Tax-Free Cash Reserve Portfolio Institutional Class paid ordinary dividends
in the amount of $0.0123 during its tax year ended March 31, 2005. Of this
amount, 100% qualified as tax-exempt interest dividends for federal income tax
purposes.
For the purpose of preparing your annual federal income tax returns, however,
you should report the amounts as reflected on the Statement of Tax-Exempt
Income.
The Fund provides a complete list of its holdings four times in each fiscal
year, at the quarter-ends. For the second and fourth quarters, the lists appear
in the Fund's semiannual and annual reports to shareholders. For the first and
third quarters, the Fund files the lists with the Securities and Exchange
Commission (SEC) on Form N-Q. Shareholders can look up the Fund's Forms N-Q on
the SEC's Web site at sec.gov. Copies of the Fund's Forms N-Q may be reviewed
and copied at the SEC's Public Reference Room at 450 Fifth Street, N.W.,
Washington, D.C. 20549-0102. You can obtain information on the operation of the
Public Reference Room, including information about duplicating fee charges, by
calling 1-202-942-8090 or by electronic request at the following e-mail address:
publicinfo@sec.gov. The SEC file numbers for the Fund are 811-2731 and 2-58286.
The Fund's most recent portfolio holdings, as filed on Form N-Q, are also
available at AIMinvestments.com.
A description of the policies and procedures that the Fund uses to determine how
to vote proxies relating to portfolio securities is available without charge,
upon request, from our Client Services department at 800-659-1005 or on the AIM
Web site, AIMinvestments.com. On the home page, scroll down and click on the AIM
Funds Proxy Policy. The information is also available on the SEC Web site,
sec.gov.
Information regarding how the Fund voted proxies related to its portfolio
securities during the 12 months ended June 30, 2004, is available at our Web
site. Go to AIMinvestments.com, access the About Us tab, click on Required
Notices and then click on Proxy Voting Activity. Next, select the Fund from the
drop-down menu. The information is also available on the SEC Web site, sec.gov.
[YOUR GOALS. OUR SOLUTIONS.]
--REGISTERED TRADEMARK--
[AIM INVESTMENTS LOGO]
--REGISTERED TRADEMARK--
AIMinvestments.com TFIT-AR-6 Fund Management Company
TAX-FREE CASH RESERVE PORTFOLIO
Private Investment Class
TAX-FREE INVESTMENTS TRUST (TFIT)
March 31, 2005
Annual Report
[COVER IMAGE]
[YOUR GOALS. OUR SOLUTIONS.]
--REGISTERED TRADEMARK--
[1980-2005 25TH [AIM INVESTMENTS LOGO]
CASH MANAGEMENT LOGO] --REGISTERED TRADEMARK--
TAX-FREE CASH RESERVE PORTFOLIO
DEAR SHAREHOLDER:
[GRAHAM This is the annual report on the performance of the Private
PHOTO] Investment Class of the Tax-Free Cash Reserve Portfolio of
Tax-Free Investments Trust, a money market fund investing
in short-term municipal bonds of the highest credit
ratings. The report is for the fiscal year ended
March 31, 2005.
ROBERT H. GRAHAM
The Tax-Free Cash Reserve Portfolio seeks to provide as
high a level of tax-exempt income as is consistent with
preservation of capital and maintenance of liquidity. The
Portfolio invests in high quality, short-term municipal
obligations, seeking to provide income exempt from federal
taxation. The Portfolio structure is driven to some extent
by the supply and availability of municipal securities.
Liquidity is managed with daily and weekly variable-rate
[WILLIAMSON demand notes.
PHOTO]
Through a combination of short-term cash management
vehicles and selective use of a longer maturity schedule
for higher yields, the Portfolio continued to provide
attractive returns. The Portfolio maintained a relatively
MARK. H. WILLIAMSON short maturity structure to take advantage of any sudden
rise in market yields.
The Portfolio continued 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 Ratings. Portfolio ratings are
subject to change and are based on several factors,
including an analysis of a Portfolio's overall credit
quality, market price exposure and management.
The table below summarizes important Portfolio data as
of fiscal year-end.
<Table>
<Caption>
=============================== ===============================
YIELD WEIGHTED AVERAGE MATURITY
7-DAY SEC YIELD* MONTHLY YIELD* RANGE END OF FISCAL YEAR
1.64% 1.47% 25-42 Days 30 Days
=============================== ===============================
===================================================================
NET ASSETS AT CLOSE OF FISCAL YEAR
$196.6 MILLION
*The seven-day SEC yield and monthly yield represent annualized
results for the period, net of fees and expenses, and exclude any
realized capital gains or losses. Yields will fluctuate. Had the
advisor and distributor not waived fees and/or reimbursed expenses,
seven-day and monthly yields would have been lower.
===================================================================
</Table>
MARKET CONDITIONS AFFECTING MONEY MARKET FUNDS
Economic activity expanded at a moderate pace throughout the fiscal year,
according to Beige Book economic commentaries published by the Federal Reserve
(the Fed) that cover the period.
o Gross domestic product (GDP), generally considered the broadest measure of
economic activity, grew at an annualized rate of 4.4% during 2004.
o The S&P 500--Registered Trademark-- Index returned 6.69% during the fiscal
year.
o The Fed reported a moderate increase in consumer spending, although auto
sales were lackluster. Travel and tourism and most service industries
reported improvements, and manufacturing activity also expanded. Housing
and residential construction was robust, according to the March Beige
Book.
In an effort to forestall the inflation that may accompany robust economic
growth, the Fed increased the federal funds target rate seven times in 0.25%
increments during the reporting period, bringing the rate to 2.75% on March 22,
2005. (The federal funds target rate is a benchmark interest rate used by banks
for overnight loans to one another.) Despite the increases, the Fed said
monetary policy remained accommodative.
TAX-FREE CASH RESERVE PORTFOLIO
These rate increases helped boost yields on short-term investments such as
money market funds. The impact of changes in the federal funds target rate is
generally felt in money market funds approximately two weeks after the
announcement of an increase or decrease, but the change in yields may not be
equivalent to the change in the federal funds target rate. Management made no
changes to strategy as a result of federal funds target rate increases.
IN CONCLUSION
We are pleased to send you this report on your investment. AIM is committed to
the primary goals of safety, liquidity and yield in institutional fund
management. We are also dedicated to customer service. Should you have comments
or questions about this report, please contact one of our representatives at
800-659-1005.
Sincerely,
<Table>
/s/ ROBERT H. GRAHAM /s/ MARK H. WILLIAMSON
Robert H. Graham Mark H. Williamson
Vice Chair & President, Tax-Free Investments Trust Chairman & President, A I M Advisors, Inc.
</Table>
May 20, 2005
The views and opinions expressed in this letter are those of A I M Advisors,
Inc. These views and opinions are subject to change at any time based on factors
such as market and economic conditions. These views and opinions may not be
relied upon as investment advice or recommendations, or as an offer for a
particular security. Statements of fact are from sources considered reliable,
but A I M Advisors, Inc. makes no representation or warranty as to their
completeness or accuracy. Although historical performance is no guarantee of
future results, these insights may help you understand our investment management
philosophy.
<Table>
<Caption>
====================================
PORTFOLIO COMPOSITION BY MATURITY The number of days to maturity of each holding is determined in
accordance with the provisions of Rule 2a-7 under the Investment
IN DAYS, AS OF 3/31/05 Company Act of 1940.
1-7 78.6%
8-14 0.9
15-60 4.8
61-120 7.3
121-180 3.1
181-240 3.7 The unmanaged Standard & Poor's Composite Index of 500 Stocks (the
241+ 1.6 S&P 500 Index) is an index of common stocks frequently used as a
general measure of U.S. stock market performance.
====================================
</Table>
THIS REPORT MUST BE ACCOMPANIED OR PRECEDED BY A CURRENTLY EFFECTIVE FUND
PROSPECTUS, WHICH CONTAINS MORE COMPLETE INFORMATION, INCLUDING FEES AND
EXPENSES. READ IT CAREFULLY BEFORE YOU INVEST OR SEND MONEY.
PERFORMANCE QUOTED IS PAST PERFORMANCE AND CANNOT GUARANTEE COMPARABLE FUTURE
RESULTS; CURRENT PERFORMANCE MAY BE LOWER OR HIGHER. VISIT AIMINVESTMENTS.COM
FOR THE MOST RECENT MONTH-END PERFORMANCE.
AN INVESTMENT IN THE FUND IS NOT INSURED OR GUARANTEED BY THE FEDERAL DEPOSIT
INSURANCE CORPORATION OR ANY OTHER GOVERNMENT AGENCY AND IS NOT A DEPOSIT OR
OTHER OBLIGATION OF, OR GUARANTEED BY, A DEPOSITORY INSTITUTION. ALTHOUGH THE
FUND SEEKS TO PRESERVE THE VALUE OF YOUR INVESTMENT AT $1.00 PER SHARE, IT IS
POSSIBLE TO LOSE MONEY BY INVESTING IN THE FUND.
TAX-FREE CASH RESERVE PORTFOLIO
CALCULATING YOUR ONGOING FUND EXPENSES
<Table>
EXAMPLE with the amount you invested, to estimate year before expenses, which is not the
the expenses that you paid over the Fund's actual return. The hypothetical
As a shareholder of the Fund, you incur period. Simply divide your account value account values and expenses may not be
ongoing costs, including management fees by $1,000 (for example, an $8,600 account used to estimate the actual ending
and other Fund expenses. This example is value divided by $1,000 = 8.6), then account balance or expenses you paid for
intended to help you understand your multiply the result by the number in the the period. You may use this information
ongoing costs (in dollars) of investing table under the heading entitled "Actual to compare the ongoing costs of investing
in the Fund and to compare these costs Expenses Paid During Period" to estimate in the Fund and other funds. To do so,
with ongoing costs of investing in other the expenses you paid on your account compare this 5% hypothetical example with
mutual funds. The example is based on an during this period. the 5% hypothetical examples that appear
investment of $1,000 invested at the in the shareholder reports of the other
beginning of the period and held for the HYPOTHETICAL EXAMPLE FOR COMPARISON funds.
entire period October 1, 2004, through PURPOSES
March 31, 2005. Please note that the expenses shown in
The table below also provides information the table are meant to highlight your
ACTUAL EXPENSES about hypothetical account values and ongoing costs only. Therefore, the
hypothetical expenses based on the Fund's hypothetical information is useful in
The table below provides information actual expense ratio and an assumed rate comparing ongoing costs only, and will
about actual account values and actual of return of 5% per not help you determine the relative total
expenses. You may use the information in costs of owning different funds.
this table, together
====================================================================================================================================
ACTUAL HYPOTHETICAL
(5% ANNUAL RETURN BEFORE EXPENSES)
SHARE BEGINNING ACCOUNT ENDING ACCOUNT EXPENSES ENDING ACCOUNT EXPENSES
CLASS VALUE VALUE PAID DURING VALUE PAID DURING
Private (10/1/04) (3/31/05)(1) PERIOD(2) (3/31/05) PERIOD(2)
Investment $1,000.00 $1,006.50 $2.35 $1,022.59 $2.37
(1) The actual ending account value is based on the actual total return of the Fund for the period October 1, 2004, to March 31,
2005, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund's expense ratio
and a hypothetical annual return of 5% before expenses. The actual total cumulative return at net asset value for the period October
1, 2004, to March 31, 2005, was 0.65% for Private Investment Class shares.
(2) Expenses are equal to the Fund's annualized expense ratio (0.47% for Private Investment Class shares) multiplied by the average
account value over the period, multiplied by 182/365 (to reflect the one-half year period).
====================================================================================================================================
</Table>
SCHEDULE OF INVESTMENTS
March 31, 2005
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
MUNICIPAL NOTES-99.22%
ALABAMA-1.68%
Alabama (State of) Public School & College
Authority; Capital Improvement Series 1999
D RB
5.25%, 08/01/05 AA Aa3 $ 1,425 $ 1,440,302
- ---------------------------------------------------------------------------------------
Birmingham (City of) Public Educational
Building Authority Student Housing (CHF UAB
II LLC); VRD Series 2005 A RB (LOC-Regions
Bank Alabama)
2.30%, 07/01/37(b)(c) -- VMIG-1 6,000 6,000,000
- ---------------------------------------------------------------------------------------
Birmingham (City of) Public Parks &
Recreation Board (Children's Zoo Project);
VRD Series 2002 RB (LOC-AmSouth Bank)
2.40%, 05/01/07(b)(c) -- VMIG-1 1,725 1,725,000
- ---------------------------------------------------------------------------------------
Birmingham (City of) Public Parks &
Recreation Board (YMCA Project); Refunding
VRD Series 1996 RB (LOC-AmSouth Bank)
2.36%, 06/01/16(b)(c) -- VMIG-1 1,770 1,770,000
- ---------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Birmingham
Waterworks & Sewer Board); VRD Series
2002-6009 Class A COP (Acquired 11/05/02;
Cost $4,100,000)
2.32%, 01/01/43(c)(d)(e) A-1+ -- 4,100 4,100,000
- ---------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Birmingham
Waterworks & Sewer Board); VRD Series
2003-0007 Class A COP (Acquired 04/16/03;
Cost $7,370,000)
2.32%, 01/01/43(c)(d)(e) A-1+ -- 7,370 7,370,000
- ---------------------------------------------------------------------------------------
Elmore (County of) Ridge Improvement
District; Special Assessment VRD Series
2000 RB (LOC-AmSouth Bank)
2.30%, 10/01/25(b)(c) -- VMIG-1 13,335 13,335,000
- ---------------------------------------------------------------------------------------
Homewood (City of) Medical Clinic Board
(Lakeshore Foundation Project); Lease
Revenue VRD Series 2000 RB (LOC-AmSouth
Bank)
2.38%, 11/01/24(b)(c) A-1 -- 7,255 7,255,000
- ---------------------------------------------------------------------------------------
Mobile (City of); Port City Medical Clinic
Board (Infirmary Health); VRD Series 1998 B
RB
2.30%, 02/01/25(c)(f) A-1 VMIG-1 5,000 5,000,000
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
<Caption>
ALABAMA-(CONTINUED)
Montgomery (City of) Industrial Development
Board (Industrial Partners Project);
Refunding VRD Series 1989 IDR (LOC-SunTrust
Bank)
2.30%, 01/01/07(b)(c) -- Aa2 $ 430 $ 430,000
- ---------------------------------------------------------------------------------------
Oxford (City of); Unlimited Tax VRD Series
2003 GO Wts. (LOC- Branch Banking & Trust
Co.)
2.30%, 07/01/15(b)(c) -- VMIG-1 5,180 5,180,000
- ---------------------------------------------------------------------------------------
Tuscaloosa (City of) Educational Building
Authority (Stillman College Project);
Refunding Capital Improvement VRD Series
2002 A RB (LOC-AmSouth Bank)
2.40%, 10/01/23(b)(c) -- VMIG-1 2,519 2,519,000
=======================================================================================
56,124,302
=======================================================================================
ALASKA-0.04%
Alaska (State of) Industrial Development &
Export Authority (Safeway Inc. Projects);
Refunding VRD Series 1991 IDR (LOC-Deutsche
Bank A.G.)
2.15%, 06/01/05(b)(g)(h) A-1 -- 1,340 1,340,000
=======================================================================================
ARIZONA-0.83%
Apache (County of) Industrial Development
Authority (Tucson Electric Power Co.);
Floating Rate Series 1983 A IDR (LOC-Credit
Suisse First Boston)
2.35%, 12/15/18(b)(c) A-1 VMIG-1 8,225 8,225,000
- ---------------------------------------------------------------------------------------
Apache (County of) Industrial Development
Authority (Tucson Electric Power Co.-
SpringerValley); VRD Series 1985 IDR
(LOC-Credit Suisse First Boston)
2.35%, 12/01/20(b)(c) A-1 VMIG-1 1,000 1,000,000
- ---------------------------------------------------------------------------------------
Casa Grande (City of) Industrial Development
Authority (Center Park Apartments
Projects); Refunding Multi-Family Housing
VRD Series 2001 A IDR (CEP- Federal
National Mortgage Association)
2.33%, 06/15/31(c) -- VMIG-1 2,010 2,010,000
- ---------------------------------------------------------------------------------------
</Table>
F-1
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
ARIZONA-(CONTINUED)
Casa Grande (City of) Industrial Development
Authority (Quail Gardens Apartments);
Refunding Multi-Family Housing VRD Series
2001 A IDR (CEP-Federal National Mortgage
Association)
2.33%, 06/15/31(c) -- VMIG-1 $ 1,550 $ 1,550,000
- ---------------------------------------------------------------------------------------
Mesa (City of); Utility System Series 1995 RB
5.38%, 07/01/05(g)(i) AAA Aaa 1,000 1,018,554
- ---------------------------------------------------------------------------------------
Phoenix (City of) Industrial Development
Authority (Lynwood Apartments Project);
Refunding VRD Series 1994 IDR (CEP- Federal
Home Loan Bank of San Francisco)
2.34%, 10/01/25(c) A-1+ -- 5,825 5,825,000
- ---------------------------------------------------------------------------------------
Pima (County of) Industrial Development
Authority (El Dorado Hospital); VRD Series
2004 RB (LOC-Branch Banking & Trust Co.)
2.27%, 04/01/38(b)(c) -- VMIG-1 6,000 6,000,000
- ---------------------------------------------------------------------------------------
Pima (County of) Industrial Development
Authority (Tucson Electric Power
Co.-Irvington Road Project); VRD Series
1982 IDR (LOC-Credit Suisse First Boston)
2.32%, 10/01/22(b)(c) A-1 VMIG-1 2,000 2,000,000
=======================================================================================
27,628,554
=======================================================================================
ARKANSAS-0.07%
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.)
2.35%, 07/01/08(b)(c)(j) -- -- 2,500 2,500,000
=======================================================================================
CALIFORNIA-0.91%
California (State of) Economic Recovery; VRD
Series 2004 C-6 RB (LOC-Citibank N.A.)
2.28%, 07/01/23(b)(k) A-1+ VMIG-1 29,050 29,050,000
- ---------------------------------------------------------------------------------------
San Diego (County of) (Friends of Chabad
Lubavitch); VRD Series 2003 COP
(LOC-Comerica Bank)
2.38%, 01/01/23(b)(c)(j) -- -- 1,410 1,410,000
=======================================================================================
30,460,000
=======================================================================================
COLORADO-3.26%
Adams & Weld (Counties of) School District
No. 27J Brighton; Unlimited Tax Series 2004
GO
2.50%, 12/01/05(f) AAA Aaa 1,950 1,955,505
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
<Caption>
- ---------------------------------------------------------------------------------------
COLORADO-(CONTINUED)
Colorado (State of) Educational & Cultural
Facilities Authority (Denver Art Museum
Project); VRD Series 2004 RB (LOC-Wells
Fargo Bank N.A.)
2.28%, 01/01/34(b)(c) A-1+ -- $ 4,950 $ 4,950,000
- ---------------------------------------------------------------------------------------
Colorado (State of) Educational & Cultural
Facilities Authority (Regis Jesuit High
School Project); VRD Series 2003 RB
(LOC-Wells Fargo Bank N.A.)
2.28%, 12/01/33(b)(c) A-1+ -- 5,415 5,415,000
- ---------------------------------------------------------------------------------------
Colorado (State of) Educational & Cultural
Facilities Authority (Southeastern Baptist
Theological Seminary); VRD Series 2005
(LOC-Branch Banking & Trust Co.)
2.27%, 03/01/25(b)(c) -- VMIG-1 8,955 8,955,000
- ---------------------------------------------------------------------------------------
Colorado (State of) Health Facilities
Authority (Arapahoe House Project); VRD
Series 2004 A RB (LOC-Wells Fargo Bank
N.A.)
2.35%, 04/01/24(b)(c) A-1+ -- 1,200 1,200,000
- ---------------------------------------------------------------------------------------
Colorado (State of) Health Facilities
Authority (Bethesda Collinwood); Refunding
VRD Series 2004 B RB (LOC-ABN AMRO Bank
N.V.)
2.30%, 08/01/34(b)(c) A-1 -- 4,230 4,230,000
- ---------------------------------------------------------------------------------------
Colorado (State of) Health Facilities
Authority (Bethesda Living Centers);
Refunding VRD Series 2004 A RB (LOC-ABN
AMRO Bank N.V.)
2.30%, 08/01/34(b)(c) A-1 -- 5,270 5,270,000
- ---------------------------------------------------------------------------------------
Colorado (State of) Health Facilities
Authority (Bethesda Living Centers
Project); VRD Series 1999 RB (LOC-ABN AMRO
Bank N.V.)
2.30%, 08/15/30(b)(c) A-1 -- 9,855 9,855,000
- ---------------------------------------------------------------------------------------
Colorado (State of) Health Facilities
Authority (Catholic Health Initiatives);
VRD Series 2000 B RB
2.30%, 12/01/20(c) A-1+ VMIG-1 2,000 2,000,000
- ---------------------------------------------------------------------------------------
Colorado (State of) Health Facilities
Authority (Christian Living Project);
Refunding VRD Series 2002 A RB (LOC- U.S.
Bank N.A.)
2.32%, 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.)
2.28%, 12/01/20(b)(c) A-1+ -- 3,580 3,580,000
- ---------------------------------------------------------------------------------------
</Table>
F-2
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
COLORADO-(CONTINUED)
Colorado (State of) Health Facilities
Authority (Golden West Manor Inc. Project);
VRD Series 2002 A RB (LOC-U.S. Bank N.A.)
2.32%, 07/01/32(b)(c) A-1+ -- $ 4,210 $ 4,210,000
- ---------------------------------------------------------------------------------------
Colorado Springs (City of) (Pikes Peak Mental
Health); VRD Series 2003 RB (LOC-Wells
Fargo Bank N.A.)
2.28%, 03/15/23(b)(c) A-1+ -- 3,615 3,615,000
- ---------------------------------------------------------------------------------------
Concord (Metropolitan District of); Refunding
& Improvement Unlimited Tax Series 2004 GO
(LOC-Wells Fargo Bank N.A.)
2.25%, 12/01/05(b)(g)(l) A-1+ -- 1,585 1,585,000
- ---------------------------------------------------------------------------------------
Crystal Valley (Metropolitan) District No. 1;
VRD Series 2004 RB (LOC-Wells Fargo Bank
N.A.)
2.28%, 10/01/34(b)(c) A-1+ -- 2,795 2,795,000
- ---------------------------------------------------------------------------------------
Denver (City & County of) (Cottonwood Creek);
Refunding Multi-Family Housing Revenue VRD
Series 1989 A RB (CEP- Federal Home Loan
Mortgage Corp.) (Acquired 12/28/04; Cost
$1,000,000)
2.30%, 04/15/14(c)(e) A-1+ -- 1,000 1,000,000
- ---------------------------------------------------------------------------------------
Denver (City & County of) (Kentucky Circle
Village Project); VRD Series 2000 RB (LOC-
Mountain States Bank, U.S. Bank N.A.)
2.32%, 10/01/29(b)(c) A-1+ -- 1,740 1,740,000
- ---------------------------------------------------------------------------------------
Denver (City & County of) (Wellington E Web);
Refunding VRD Series 2003 C2 COP
2.30%, 12/01/29(c)(f) A-1+ VMIG-1 2,245 2,245,000
- ---------------------------------------------------------------------------------------
Denver (City & County of) (Colorado
Convention Center Project); Excise Tax VRD
Series 2001 B RB
2.30%, 09/01/25(c)(f) A-1+ VMIG-1 2,905 2,905,000
- ---------------------------------------------------------------------------------------
Idaho Springs (City of); (Safeway Inc.
Project); Refunding VRD Series 1993 IDR
(LOC-Deutsche Bank A.G.)
2.15%, 06/01/05(b)(g)(h) A-1+ -- 940 940,000
- ---------------------------------------------------------------------------------------
Jefferson (County of) School District No.
R-001; Series 2004 A TAN
3.00%, 06/30/05 SP-1+ MIG-1 30,000 30,109,955
- ---------------------------------------------------------------------------------------
Jefferson (County of) Section 14 Metropolitan
District; Refunding Unlimited Tax Series
2004 GO (LOC-U.S. Bank N.A.)
2.25%, 12/01/05(b)(g)(l) A-1+ -- 1,200 1,200,000
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
<Caption>
COLORADO-(CONTINUED)
Kipling Ridge (Metropolitan) District; VRD
Unlimited Tax Series 2005 GO (LOC-U.S. Bank
N.A.)
2.32%, 12/01/23(b)(c) A-1+ -- $ 3,725 $ 3,725,000
- ---------------------------------------------------------------------------------------
Lafayette (City of) Exempla Improvement
District (Special Improvement No. 2-01);
Refunding Special Assessment VRD Series
2002 RB (LOC-Wells Fargo Bank N.A.)
2.32%, 12/01/22(b)(c) A-1+ -- 1,000 1,000,000
- ---------------------------------------------------------------------------------------
Westminster (City of) Water & Wastewater
Utility Enterprise; VRD Series 2002 RB
2.32%, 12/01/22(c)(f) A-1+ VMIG-1 1,415 1,415,000
=======================================================================================
109,295,460
=======================================================================================
CONNECTICUT-0.04%
Connecticut (State of) Development Authority
(Central Vermont Public Service); Floating
Rate Series 1985 PCR (LOC-Royal Bank of
Scotland)
2.05%, 12/01/15(b)(m) A-1+ -- 1,400 1,400,000
=======================================================================================
DELAWARE-0.25%
Delaware (State of) Economic Development
Authority (Independent School Inc.
Project); VRD Series 2003 RB (LOC-Royal
Bank of Scotland)
2.28%, 07/01/33(b)(c) A-1+ -- 8,250 8,250,000
=======================================================================================
DISTRICT OF COLUMBIA-1.86%
District of Columbia (American Library
Association); VRD Series 2005 RB (LOC-Bank
of America, N.A.)
2.32%, 02/01/35(b)(c) -- VMIG-1 3,175 3,175,000
- ---------------------------------------------------------------------------------------
District of Columbia (American Psychology
Association); VRD Series 2003 RB (LOC-Bank
of America, N.A.)
2.35%, 03/01/28(b)(c) A-1+ -- 970 970,000
- ---------------------------------------------------------------------------------------
District of Columbia (Consortium Issue); VRD
Series 1998 RB (LOC-Wachovia Bank, N.A.)
2.29%, 07/01/23(b)(c) A-1 -- 15,755 15,755,000
- ---------------------------------------------------------------------------------------
District of Columbia (Resources for the
Future Inc.); VRD Series 1998 RB
(LOC-Wachovia Bank, N.A.)
2.35%, 08/01/29(b)(c) A-1 -- 2,015 2,015,000
- ---------------------------------------------------------------------------------------
District of Columbia (The John F. Kennedy
Center for the Performing Arts); VRD
Series 1999 RB
2.26%, 10/01/29(c)(f) A-1+ VMIG-1 19,820 19,820,000
- ---------------------------------------------------------------------------------------
</Table>
F-3
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA-(CONTINUED)
District of Columbia Pooled Loan Program
(American Council on Education); VRD Series
1998 A RB (LOC-Bank of America, N.A.)
(Acquired 01/06/08; Cost $10,000,000)
2.30%, 01/01/29(b)(c)(e) A-1+ -- $10,000 $ 10,000,000
- ---------------------------------------------------------------------------------------
District of Columbia; Refunding Unlimited Tax
Series 1993 B-1 GO
5.30%, 06/01/05(f) AAA Aaa 6,000 6,032,755
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (District of Columbia Water
& Sewer Authority); VRD Series 2003 A12 RB
(Acquired 02/24/03; Cost $4,640,000)
2.35%, 10/01/17(c)(d)(e) -- VMIG-1 4,640 4,640,000
=======================================================================================
62,407,755
=======================================================================================
FLORIDA-3.99%
ABN AMRO Munitops Ctfs. Trust (County of
Escambia); Refunding Florida Non-AMT VRD
Series 2002-24 Ctfs. (Acquired 10/24/02;
Cost $5,000,000)
2.31%, 10/01/10(c)(d)(e) -- VMIG-1 5,000 5,000,000
- ---------------------------------------------------------------------------------------
Alachua (County of) Health Facilities
Authority (Shands Teaching Hospital and
Clinics Inc.); VRD Series 2002 A RB
(LOC-SunTrust Bank)
2.29%, 12/01/12(b)(k) -- VMIG-1 10,485 10,485,000
- ---------------------------------------------------------------------------------------
Capital Projects Finance Authority (Capital
Projects Loan Program); VRD Series 1997 A
RB
2.31%, 08/01/17(c)(f) A-1+ -- 800 800,000
- ---------------------------------------------------------------------------------------
Collier (County of) Health Facilities
Authority (Cleveland Health Clinic); VRD
Hospital Series 2003 C-2 BAN (LOC- JPMorgan
Chase Bank)
2.11%, 05/11/05(b)(g)(l) A-1+ VMIG-1 3,500 3,500,000
- ---------------------------------------------------------------------------------------
Collier (County of) Industrial Development
Authority (Redlands Christian Migrant
Association Inc.); VRD Series 2001 RB (LOC-
Bank of America, N.A.)
2.35%, 12/01/26(b)(c)(j) -- -- 2,800 2,800,000
- ---------------------------------------------------------------------------------------
Dade (County of) Industrial Development
Authority (Dolphin's Stadium Project); VRD
Series 1985 D RB (LOC-Societe Generale)
2.26%, 01/01/16(b)(c) A-1+ -- 2,000 2,000,000
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
<Caption>
- ---------------------------------------------------------------------------------------
FLORIDA-(CONTINUED)
Florida (State of) Housing Finance Agency
(Huntington Place Apartments LP); VRD
Multifamily Housing Series 1985 GGG RB
(CEP-Federal National Mortgage Association)
2.28%, 12/01/13(c) A-1+ -- $ 4,500 $ 4,500,000
- ---------------------------------------------------------------------------------------
Jacksonville (City of) (Baptist Medical
Center); Commercial Paper Series 2004 RB
(LOC-Bank of America, N.A.)
1.93%, 07/27/05(b) A-1+ -- 18,000 18,000,000
- ---------------------------------------------------------------------------------------
Jacksonville (City of) Health Facilities
Authority (Samuel C. Taylor Foundation
Project); VRD Series 1998 RB (LOC-Bank of
America, N.A.) (Acquired 02/20/01; Cost
$2,600,000)
2.35%, 12/01/23(b)(c)(e)(j) -- -- 2,600 2,600,000
- ---------------------------------------------------------------------------------------
Jacksonville (City of) Health Facilities
Authority (University of Florida
Jacksonville Physicians, Inc.); VRD Series
2002 RB (LOC- Bank of America, N.A.)
2.35%, 06/01/22(b)(c) -- VMIG-1 12,140 12,140,000
- ---------------------------------------------------------------------------------------
Lee (County of) Industrial Development
Authority (Hope of Southwest Florida Inc.
Project); Refunding & Improvement VRD
Series 2004 RB (LOC-SunTrust Bank)
2.29%, 10/01/23(b)(j)(k) -- -- 4,000 4,000,000
- ---------------------------------------------------------------------------------------
Miami-Dade (County of) Educational Facilities
Authority (Carlos Albizu University
Project); VRD Series 2000 RB (LOC-Bank of
America, N.A.)
2.35%, 12/01/25(b)(c)(j) -- -- 9,200 9,200,000
- ---------------------------------------------------------------------------------------
Miami-Dade (County of) Industrial Development
Authority (Palmer Trinity Private School
Project); VRD Series 1999 IDR (LOC-Bank of
America, N.A.)
2.35%, 12/01/19(b)(c)(j) -- -- 3,100 3,100,000
- ---------------------------------------------------------------------------------------
Morgan Stanley & Co. Inc. Trust Floater Ctfs.
(State of Florida Department of
Environmental Protection); Floating Rate
Trust Ctfs. VRD Series 2002-722 RB
(Acquired 11/13/02; Cost $9,850,000)
2.32%, 07/01/22(c)(d)(e) A-1 -- 9,850 9,850,000
- ---------------------------------------------------------------------------------------
North Miami (City of) Educational Facilities
(Miami Country Day School Project); VRD
Series 1999 RB (LOC-Bank of America, N.A.)
2.35%, 08/01/19(b)(c)(j) -- -- 1,750 1,750,000
- ---------------------------------------------------------------------------------------
</Table>
F-4
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
FLORIDA-(CONTINUED)
Orange (County of) Health Facilities
Authority (Adventist Health System/Sunbelt
Inc.); VRD Series 1992 RB (LOC-SunTrust
Bank)
2.30%, 11/15/14(b)(c) A-1+ VMIG-1 $ 9,950 $ 9,950,000
- ---------------------------------------------------------------------------------------
Orange (County of) Health Facilities
Authority (Presbyterian Retirement
Communities Project); VRD Series 1998 RB
(LOC-Bank of America, N.A.)
2.35%, 11/01/28(b)(c)(j) -- -- 7,970 7,970,000
- ---------------------------------------------------------------------------------------
Orlando & Orange (Counties of) Expressway
Authority; VRD Sub Series 2005 A-3 RB
2.28%, 07/01/40(c)(f) A-1+ VMIG-1 10,000 10,000,000
- ---------------------------------------------------------------------------------------
Palm Beach (County of) Educational Facilities
Authority (Atlantic College Project);
Educational Facilities VRD Series 2001 RB
(LOC-Bank of America, N.A.)
2.35%, 12/01/31(b)(c)(j) -- -- 2,700 2,700,000
- ---------------------------------------------------------------------------------------
Palm Beach (County of) Health Facilities
Authority (Jupiter Medical Center Inc.);
VRD Series 1999 B RB (LOC-Wachovia Bank,
N.A.)
2.35%, 08/01/20(b)(c)(j) -- -- 7,250 7,250,000
- ---------------------------------------------------------------------------------------
Tampa (City of) (Agency for Community
Treatment DACCO Project); VRD Series 2001
RB (LOC-Bank of America, N.A.)
2.35%, 07/01/22(b)(c)(j) -- -- 5,080 5,080,000
- ---------------------------------------------------------------------------------------
University of North Florida Foundation, Inc.
(Parking System); VRD Series 1998 RB
(LOC-Wachovia Bank, N.A.)
2.30%, 05/01/28(b)(c) A-1 -- 800 800,000
=======================================================================================
133,475,000
=======================================================================================
GEORGIA-3.94%
ABN AMRO Munitops Ctfs. Trust (State of
Georgia); Non-AMT VRD Series 2004-15 Ctfs.
(Acquired 10/12/04; Cost $9,995,000)
2.32%, 04/06/05(c)(d)(e) -- VMIG-1 9,995 9,995,000
- ---------------------------------------------------------------------------------------
Bartow (County of) School District; Unlimited
Tax Series 2003 GO
3.00%, 11/01/05 AA+ -- 950 954,922
- ---------------------------------------------------------------------------------------
Burke (County of) Development Authority
(Oglethorpe Power Corp.); VRD Series 1994 A
PCR
2.30%, 01/01/19(c)(f) A-1+ VMIG-1 17,700 17,700,000
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
<Caption>
- ---------------------------------------------------------------------------------------
GEORGIA-(CONTINUED)
CDC Municipal Products, Inc. (Forsyth (County
of) School District); VRD Unlimited Tax
Series 2004-6 A GO (Acquired 10/20/04; Cost
$3,000,000)
2.32%, 02/01/18(c)(d)(e) A-1+ -- $ 3,000 $ 3,000,000
- ---------------------------------------------------------------------------------------
Clayton (County of) Development Authority
(Delta Airlines Project); Special
Facilities VRD Series 2000 A RB
(CEP-General Electric Capital Corp.)
2.32%, 06/01/29(c) A-1+ VMIG-1 12,000 12,000,000
- ---------------------------------------------------------------------------------------
Cobb (County of) Development Authority (YMCA
of Cobb County); VRD Series 2003 RB (LOC-
Branch Banking & Trust Co.)
2.27%, 12/01/25(b)(c) -- VMIG-1 1,000 1,000,000
- ---------------------------------------------------------------------------------------
Cobb (County of) Housing Authority (Tamarron
Apartments Project); Refunding Multi-Family
Housing VRD Series 2003 RB (CEP- Federal
Home Loan Mortgage Corp.)
2.30%, 03/01/24(c) A-1+ -- 4,820 4,820,000
- ---------------------------------------------------------------------------------------
DeKalb (County of) Hospital Authority (DeKalb
Medical Center Inc. Project); VRD Series
2000 B RB (LOC-Wachovia Bank, N.A.)
2.29%, 10/01/25(b)(c) -- VMIG-1 10,450 10,450,000
- ---------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (State of Georgia);
VRD Series 2000-1001 Class C COP (Acquired
07/26/00; Cost $20,000,000)
2.32%, 07/01/15(c)(d)(e) A-1+ -- 20,000 20,000,000
- ---------------------------------------------------------------------------------------
Floyd (County of) Development Authority
(Shorter College Project); VRD Series 1998
RB (LOC-SunTrust Bank)
2.43%, 06/01/17(b)(c) A-1+ -- 1,800 1,800,000
- ---------------------------------------------------------------------------------------
Fulton (County of) Development Authority
(Bridgeway Foundation for Education
Project); Educational Facilities VRD Series
2000 RB (LOC-Wachovia Bank, N.A.)
2.34%, 06/01/15(b)(c) A-1 -- 1,400 1,400,000
- ---------------------------------------------------------------------------------------
Fulton (County of) Development Authority
(Pace Academy Inc. Project); VRD Series
1998 RB (LOC-Bank of America, N.A.)
2.30%, 07/01/18(b)(c)(j) -- -- 5,375 5,375,000
- ---------------------------------------------------------------------------------------
Fulton (County of) Development Authority
(Woodward Academy Inc. Project); VRD Series
2002 RB (LOC-SunTrust Bank)
2.29%, 12/01/27(b)(c) -- VMIG-1 6,400 6,400,000
- ---------------------------------------------------------------------------------------
</Table>
F-5
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
GEORGIA-(CONTINUED)
Fulton (County of) Hospital Authority
(Northside Hospital Inc.); VRD Series 2003
A RAN (LOC-Wachovia Bank, N.A.)
2.29%, 10/01/18(b)(c) -- VMIG-1 $28,080 $ 28,080,000
- ---------------------------------------------------------------------------------------
Smyrna (City of) Hospital Authority
(Ridgeview Institute Inc. Project); VRD
Series 2002 RB (LOC- Wachovia Bank, N.A.)
2.34%, 11/01/27(b)(c) -- VMIG-1 2,060 2,060,000
- ---------------------------------------------------------------------------------------
Tallapoosa (City of) Development Authority
(U.S. Can Co. Project); VRD Series 1994
RB(LOC- Deutsche Bank A.G.)
2.35%, 02/01/15(b)(c) A-1 -- 2,000 2,000,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (City of Dalton); Utilities
VRD Series 2003 A02 RB (Acquired 08/25/04;
Cost $4,860,000)
2.35%, 01/01/12(c)(d)(e) -- VMIG-1 4,860 4,860,000
=======================================================================================
131,894,922
=======================================================================================
HAWAII-0.29%
Eagle Tax Exempt Trust (State of Hawaii); VRD
Series 2000-1101 COP (Acquired 01/11/01;
Cost $6,000,000)
2.32%, 12/01/16(c)(d)(e) A-1+ -- 6,000 6,000,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (State of Hawaii); Unlimited
Tax VRD Series 2003 A16 GO (Acquired
02/27/03; Cost $3,880,000)
2.35%, 07/01/18(c)(d)(e) -- VMIG-1 3,880 3,880,000
=======================================================================================
9,880,000
=======================================================================================
IDAHO-0.36%
Custer (County of) Pollution Control (Amoco
Oil Co.-Standard Oil Industry Project); VRD
Series 1983 RB
1.55%, 04/01/05(g)(h) A-1+ Aa1 10,000 10,000,000
- ---------------------------------------------------------------------------------------
Magic Valley Healthcare System Inc. (Magic
Valley Regional Medical Center Project);
VRD Series 2001 RB (LOC-Wells Fargo Bank
N.A.)
2.28%, 12/01/21(b)(c) -- VMIG-1 2,040 2,040,000
=======================================================================================
12,040,000
=======================================================================================
ILLINOIS-14.93%
ABN AMRO Munitops Ctfs. Trust (City of
Chicago); Refunding Multi-State Non-AMT VRD
Limited Tax Series 2001-34 Ctfs. (Acquired
11/15/01; Cost $10,000,000)
2.33%, 07/01/07(c)(d)(e) -- VMIG-1 10,000 10,000,000
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
<Caption>
- ---------------------------------------------------------------------------------------
ILLINOIS-(CONTINUED)
Bear Stearns Municipal Securities Trust Ctfs.
(State of Illinois Sales Tax); VRD Series
1998-25 A RB (Acquired 08/26/99; Cost
$10,000,000)
2.30%, 03/15/07(c)(d)(e) A-1 Aa2 $10,000 $ 10,000,000
- ---------------------------------------------------------------------------------------
Bear Stearns Municipal Securities Trust Ctfs.
(State of Illinois); VRD Series 2002-190 A
RB (Acquired 05/06/02; Cost $10,130,00)
2.30%, 06/05/14(c)(d)(e) A-1 -- 10,130 10,130,000
- ---------------------------------------------------------------------------------------
Chicago (City of); VRD Limited Tax Obligation
Tender Series 2004 GO (LOC-State Street
Bank & Trust Co.)
2.20%, 12/08/05(b)(g)(l) SP-1+ MIG-1 7,000 7,000,000
- ---------------------------------------------------------------------------------------
Chicago (City of); Refunding Water Revenue
Second Lien VRD Series 2004 RB
2.28%, 11/01/31(c)(f) A-1+ VMIG-1 30,000 30,000,000
- ---------------------------------------------------------------------------------------
Cook (County of) (Catholic Theological Union
Project); VRD Series 2005 RB (LOC-Bank of
Montreal)
2.30%, 02/01/35(b)(c) -- VMIG-1 4,000 4,000,000
- ---------------------------------------------------------------------------------------
Cook (County of) High School District No. 201
(J. Sterling Morton Township); School
Limited Tax Series 2004 GO
4.38%, 12/01/05(f) -- Aaa 5,000 5,074,796
- ---------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Chicago Park
District); VRD Unlimited Tax Series
2002-1306 A COP (Acquired 05/02/02; Cost
$5,500,000)
2.32%, 01/01/29(c)(d)(e) A-1+ -- 5,500 5,500,000
- ---------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Chicago
Public Building Commission); VRD Series
2003-0015 A COP (Acquired 05/14/03; Cost
$2,800,000)
2.32%, 12/01/14(c)(d)(e) A-1+ -- 2,800 2,800,000
- ---------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Chicago Water
& Sewer); VRD Series 2001-1308 COP
(Acquired 12/12/01; Cost $8,655,000)
2.32%, 11/01/26(c)(d)(e) A-1+ -- 8,655 8,655,000
- ---------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Chicago); VRD
Series 2001-1305 COP (Acquired 04/02/01;
Cost $4,950,000)
2.43%, 01/01/35(c)(d)(e) A-1+ -- 4,950 4,950,000
- ---------------------------------------------------------------------------------------
</Table>
F-6
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
ILLINOIS-(CONTINUED)
Eagle Tax Exempt Trust (County of Cook
Regional Transportation Authority); VRD
Series 2000-1303 COP (Acquired 03/26/01;
Cost $19,000,000)
2.32%, 07/01/23(c)(d)(e) A-1+ -- $19,000 $ 19,000,000
- ---------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (State of Illinois);
VRD Series 2000-1304 COP (Acquired
06/27/00; Cost $7,340,000)
2.32%, 06/01/21(c)(d)(e) A-1+ -- 7,340 7,340,000
- ---------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (State of Illinois);
VRD Unlimited Tax Series 2003-0023 A COP
(Acquired 06/12/03; Cost $3,775,000)
2.32%, 06/01/15(c)(d)(e) A-1+ -- 3,775 3,775,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (American College of Surgeons);
VRD Series 1996 RB (LOC-Northern Trust Co.)
2.17%, 08/01/26(b)(c) A-1+ -- 6,120 6,120,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (BAPS Inc. Project); VRD Series
2002 RB (LOC-Comerica Bank)
2.30%, 06/01/17(b)(c) A-1 -- 8,385 8,385,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (British Home for Retired Men &
Women); VRD Series 2001 RB (LOC-ABN AMRO
Bank N.V.)
2.30%, 11/01/27(b)(c) A-1 -- 8,740 8,740,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (Chicago Shakespeare Theater
Project); VRD Series 1999 RB (LOC-ABN AMRO
Bank N.V.) (Acquired 09/24/03; Cost
$4,100,000)
2.30%, 01/01/19(b)(c)(e) A-1 -- 4,100 4,100,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (Embers Elementary School
Project); Educational Facilities VRD Series
2002 RB (LOC-ABN AMRO Bank N.V.) (Acquired
11/04/03; Cost $2,250,000)
2.31%, 04/01/32(b)(c)(e) A-1 -- 2,250 2,250,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (Fenwick High School Project);
VRD Series 1997 RB (LOC-JPMorgan Chase
Bank)
2.30%, 03/01/32(b)(c) A-1+ -- 6,200 6,200,000
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
<Caption>
- ---------------------------------------------------------------------------------------
ILLINOIS-(CONTINUED)
Illinois (State of) Development Finance
Authority (Institute of Gas Technology
Project); VRD Series 1999 IDR (LOC-Bank of
Montreal)
2.33%, 09/01/24(b)(c) A-1+ -- $ 2,000 $ 2,000,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (Lyric Opera of Chicago Project);
VRD Series 1994 RB (LOC-Northern Trust Co.,
Bank of Montreal, JPMorgan Chase Bank)
2.30%, 12/01/28(b)(c) A-1+ VMIG-1 49,800 49,800,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (Mount Carmel High School
Project); VRD Series 2003 RB (LOC-JPMorgan
Chase Bank)
2.30%, 07/01/33(b)(c) -- VMIG-1 5,600 5,600,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (The Museum of Contemporary Art
Project); VRD Series 1994 RB (LOC- JPMorgan
Chase Bank, Northern Trust Co.)
2.30%, 02/01/29(b)(c) A-1 VMIG-1 14,950 14,950,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (North Shore Country Day School);
VRD Series 2003 RB (LOC-Northern Trust Co.)
2.30%, 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-ABN AMRO
Bank N.V.) (Acquired 01/29/03; Cost
$2,975,000)
2.30%, 07/01/41(b)(c)(e) 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)
2.30%, 07/01/33(b)(c) -- VMIG-1 4,600 4,600,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (West Central Illinois
Educational Project); VRD Series 2002 RB
(LOC-JPMorgan Chase Bank)
2.30%, 09/01/32(b)(c) -- VMIG-1 4,800 4,800,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Educational Facilities
Authority (Aurora University); VRD Cultural
Pooled Financing Series 1998 RB (LOC- Bank
of America, N.A.)
2.32%, 03/01/28(b)(c) A-1+ -- 6,670 6,670,000
- ---------------------------------------------------------------------------------------
</Table>
F-7
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
ILLINOIS-(CONTINUED)
Illinois (State of) Educational Facilities
Authority (Aurora University); VRD Series
2002 RB (LOC-Fifth Third Bank)
2.35%, 03/01/32(b)(c) -- VMIG-1 $ 3,300 $ 3,300,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Educational Facilities
Authority (Blackburn University); Cultural
Pooled Financing VRD Series 1999 RB
(LOC-Bank of America, N.A.)
2.32%, 07/01/29(b)(c) A-1+ -- 1,385 1,385,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Educational Facilities
Authority (Chicago Childrens Museum); VRD
Series 1994 RB (LOC-JPMorgan Chase Bank)
2.30%, 02/01/28(b)(c) A-1 VMIG-1 4,250 4,250,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Educational Facilities
Authority (Lincoln Park Society); VRD
Series 1999 RB (LOC-JPMorgan Chase Bank)
2.30%, 01/01/29(b)(c) A-1+ -- 2,825 2,825,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Educational Facilities
Authority (National Louis University); VRD
Series 1999 B RB (LOC-JPMorgan Chase Bank)
2.30%, 06/01/29(b)(c) A-1+ -- 2,300 2,300,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Finance Authority
(Illinois Institute of Technology); VRD
Series 2004 RB (LOC-Bank of Montreal)
2.30%, 12/01/24(b)(c) -- VMIG-1 5,000 5,000,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Finance Authority (Jewish
Charities); VRD Series 2004 A RN (LOC-Bank
of Montreal)
2.30%, 06/30/05(b)(c) A-1+ -- 7,630 7,630,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Finance Authority (Kohl
Children's Museum); VRD Series 2004 RB
(LOC-Fifth Third Bank)
2.30%, 07/01/34(b)(c) -- VMIG-1 2,680 2,680,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Finance Authority (Mercy
Alliance Project); VRD Series 2005 RB
(LOC-M&I Marshall & Ilsley Bank)
2.31%, 02/15/35(b)(c) -- VMIG-1 7,000 7,000,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Finance Authority
(Richard H. Driehaus Museum); VRD Series
2005 RB (LOC- Northern Trust Co.)
2.30%, 02/01/35(b)(c) -- VMIG-1 2,900 2,900,000
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
<Caption>
- ---------------------------------------------------------------------------------------
ILLINOIS-(CONTINUED)
Illinois (State of) Finance Authority
(Sunshine Through Golf Foundation Project);
VRD Series 2004 A RB (LOC-ABN AMRO Bank
N.V.)
2.31%, 11/01/24(b)(c) A-1 -- $ 2,100 $ 2,100,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Finance Authority; VRD
Series 2005 RAN (LOC-Bank of Montreal)
2.30%, 06/30/05(b)(c) A-1+ -- 3,300 3,300,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Health Facilities
Authority (Bensenville Home Society); VRD
Series 1989 A RB (LOC-JPMorgan Chase Bank)
2.32%, 02/15/19(b)(c) A-1 -- 1,100 1,100,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Health Facilities
Authority (OSF Healthcare System); VRD
Series 2002 RB (LOC-Fifth Third Bank)
2.27%, 11/15/27(b)(k) A-1+ VMIG-1 7,100 7,100,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Health Facilities
Authority (Peace Memorial Ministries); VRD
Series 2003 B RB (LOC-ABN AMRO Bank N.V.)
2.30%, 08/15/33(b)(c) A-1 -- 9,845 9,845,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Health Facilities
Authority (St. Lukes Medical Center); VRD
Series 1998 B RB
2.28%, 11/15/23(c)(f) A-1+ VMIG-1 1,000 1,000,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Health Facilities
Authority; Revolving Fund Pooled VRD Series
1985 C RB (LOC- JPMorgan Chase Bank)
2.30%, 08/01/15(b)(c) A-1+ VMIG-1 7,000 7,000,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Health Facilities
(Franciscan Eldercare Service); VRD Series
2001 RB (LOC-ABN AMRO Bank N.V.)
2.30%, 05/15/32(b)(c) A-1 -- 10,800 10,800,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Regional Transportation
Authority; Series 1994 A RB
5.80%, 06/01/05(f) AAA Aaa 3,300 3,321,356
- ---------------------------------------------------------------------------------------
Illinois (State of) Toll Highway Authority;
Refunding Toll Highway VRD Series 1998 B RB
2.25%, 01/01/16(c)(f) -- VMIG-1 15,900 15,900,000
- ---------------------------------------------------------------------------------------
2.25%, 01/01/17(c)(f) -- VMIG-1 4,600 4,600,000
- ---------------------------------------------------------------------------------------
Lombard (City of) (Clover Creek Apartments
Project); VRD Multi-Family Housing Series
2000 RB (CEP-Federal National Mortgage
Association)
2.31%, 12/15/30(c) A-1+ -- 14,855 14,855,000
- ---------------------------------------------------------------------------------------
</Table>
F-8
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
ILLINOIS-(CONTINUED)
Macon (County of) (Millikin University); VRD
Series 1999 RB
2.30%, 10/01/28(c)(f) A-1+ -- $ 4,500 $ 4,500,000
- ---------------------------------------------------------------------------------------
McCook (City of) (Illinois Saint Andrew
Society); VRD Series 1996 A RB
(LOC-Northern Trust Co.)
2.32%, 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-ABN AMRO Bank
N.V.)
2.30%, 12/01/14(b)(c) A-1 -- 2,470 2,470,000
- ---------------------------------------------------------------------------------------
Quincy (City of) (Blessing Hospital Project);
VRD Series 2004 RB (LOC-JPMorgan Chase
Bank)
2.30%, 11/15/33(b)(c) A-1+ VMIG-1 13,900 13,900,000
- ---------------------------------------------------------------------------------------
Rochelle (City of) Hospital Facility
(Rochelle Community Hospital Project); VRD
Series 2004 RB (LOC-JPMorgan Chase Bank.)
2.30%, 08/01/34(b)(c) -- VMIG-1 5,200 5,200,000
- ---------------------------------------------------------------------------------------
Rockford (City of) (Wesley Willows); VRD
Series 2002 RB (LOC-M&I Marshall & Isley
Bank)
2.31%, 04/01/32(b)(k) A-1 -- 9,000 9,000,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (Central Lake County Joint
Action Water Agency); VRD Series 2003 B18
RB (Acquired 02/19/03; Cost $3,150,000)
2.35%, 05/01/20(c)(d)(e) -- VMIG-1 3,150 3,150,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (City of Chicago Board of
Education); VRD Unlimited Tax Series 2000
A4 GO (Acquired 11/12/03; Cost $4,845,000)
2.11%, 11/10/05(d)(e)(g)(l)(n) -- VMIG-1 4,845 4,845,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (City of Chicago Emergency
Telephone System); VRD Limited Tax Series
2002 A44 GO (Acquired 08/02/02; Cost
$7,845,000)
2.35%, 01/01/20(c)(d)(e) -- VMIG-1 7,845 7,845,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (City of Chicago); VRD
Limited Tax Series 2000 A12 GO (Acquired
10/13/00; Cost $10,000,000)
2.35%, 01/01/23(c)(d)(e) -- VMIG-1 10,000 10,000,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (Cook County Regional
Transportation Authority); VRD Series 2001
A93 RB (Acquired 10/10/01; Cost $3,665,000)
2.35%, 07/01/27(c)(d)(e) -- VMIG-1 3,665 3,665,000
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
<Caption>
ILLINOIS-(CONTINUED)
Wachovia MERLOTs (Cook County Regional
Transportation Authority); VRD Unlimited
Tax Series 2002 A41 GO (Acquired 07/25/02;
Cost $17,775,000)
2.35%, 06/01/17(c)(d)(e) -- VMIG-1 $17,775 $ 17,775,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (Cook County); VRD Unlimited
Tax Series 2003 B11 GO (Acquired 01/29/03;
Cost $6,995,000)
2.35%, 11/15/25(c)(d)(e) -- VMIG-1 6,995 6,995,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (Regional Transportation
Authority); VRD Series 2001 A69 RB
(Acquired 11/09/04; Cost $11,770,000)
2.11%, 11/10/05(d)(e)(g)(l)(n) -- VMIG-1 11,770 11,770,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (State of Illinois); VRD
Unlimited Tax Series 2001 A124 GO (Acquired
11/26/01; Cost $7,905,000)
2.35%, 11/01/26(c)(d)(e) A-1 -- 7,905 7,905,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (University of Illinois);
VRD Series 2000 S GO (Acquired 03/20/00;
Cost $7,400,000)
2.35%, 04/01/30(c)(d)(e) -- VMIG-1 7,400 7,400,000
=======================================================================================
499,851,152
=======================================================================================
INDIANA-3.26%
ABN AMRO Munitops Ctfs. Trust (Township of
Wayne, County of Marion School Building
Corp.); Multi-State Non-AMT VRD Series
2003-27 RB (Acquired 11/12/03; Cost
$13,795,000)
2.33%, 07/15/11(c)(d)(e) -- VMIG-1 13,795 13,795,000
- ---------------------------------------------------------------------------------------
CDC Municipal Products, Inc. (Indiana State
of Transportation Finance Authority);
Highway VRD Series 2004-5 A RB (Acquired
10/21/04; Cost $2,000,000)
2.32%, 12/01/18(c)(d)(e) A-1+ -- 2,000 2,000,000
- ---------------------------------------------------------------------------------------
Indiana (State of) Bond Bank; Advance Funding
Program Series 2005 A RN
3.25%, 01/26/06 SP-1+ MIG-1 20,000 20,152,637
- ---------------------------------------------------------------------------------------
Indiana (State of) Educational Facilities
Authority (Indiana Wesleyan University
Project); Educational Facilities VRD Series
1998 A RB (LOC-JPMorgan Chase Bank)
2.30%, 06/01/28(b)(c) A-1+ -- 9,600 9,600,000
- ---------------------------------------------------------------------------------------
</Table>
F-9
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
INDIANA-(CONTINUED)
Indiana (State of) Educational Facilities
Authority (Wabash College Project);
Educational Facilities Series 2003 RB (LOC-
JPMorgan Chase Bank)
2.30%, 12/01/23(b)(c) -- VMIG-1 $ 5,870 $ 5,870,000
- ---------------------------------------------------------------------------------------
Indiana (State of) Health Facilities
Financing Authority (Community Hospitals
Project); VRD Hospital Series 2000 A RB
(LOC-Bank of America, N.A.)
2.30%, 07/01/28(b)(c) A-1+ -- 3,892 3,892,000
- ---------------------------------------------------------------------------------------
Indiana (State of) Health Facilities
Financing Authority (Deaconess Hospital
Inc.); Hospital VRD Series 1992 ACES RB
(LOC-Fifth Third Bank)
2.30%, 01/01/22(b)(c) A-1+ -- 11,920 11,920,000
- ---------------------------------------------------------------------------------------
Indiana (State of) Health Facilities
Financing Authority (Golden Years
Homestead); VRD Series 2002 A RB (LOC-Wells
Fargo Bank N.A.)
2.28%, 06/01/25(b)(c) A-1+ -- 6,500 6,500,000
- ---------------------------------------------------------------------------------------
Kokomo (City of) Hospital Authority (St.
Joseph's Hospital Center); Refunding
Hospital Series 1993 RB
6.35%, 08/15/05(g)(i) AAA Aaa 3,000 3,050,845
- ---------------------------------------------------------------------------------------
Petersburg (City of) Pollution Control
(Indianapolis Power & Light Co.); Refunding
VRD Series 1995 B PCR
2.30%, 01/01/23(c)(f) -- VMIG-1 23,000 23,000,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (County of Porter Jail
Building Corp.); VRD Series 2001 A58 RB
(Acquired 11/12/03; Cost $9,410,000)
2.11%, 11/10/05(d)(e)(g)(l)(n) -- VMIG-1 9,410 9,410,000
=======================================================================================
109,190,482
=======================================================================================
IOWA-1.20%
Iowa (State of) Finance Authority
(Morningside College Project); Private
College Facility VRD Series 2002 RB (LOC-
U.S. Bank N.A.)
2.35%, 10/01/32(b)(c) A-1+ -- 2,320 2,320,000
- ---------------------------------------------------------------------------------------
Iowa (State of) Finance Authority Retirement
Community (Deerfield Retirement Community);
VRD Series 2003 A RB (LOC-ABN AMRO Bank
N.V.)
2.30%, 12/01/33(b)(c) A-1 -- 15,000 15,000,000
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
<Caption>
- ---------------------------------------------------------------------------------------
IOWA-(CONTINUED)
Iowa (State of) Higher Education Loan
Authority (Graceland Private College); VRD
Series 2003 RB (LOC-Bank of America, N.A.)
2.35%, 02/01/33(b)(c) -- VMIG-1 $ 2,000 $ 2,000,000
- ---------------------------------------------------------------------------------------
Iowa (State of) School Corps.; School Cash
Anticipation Program Series 2004 A Wts.
Ctfs.
3.00%, 06/30/05(f) -- MIG-1 10,000 10,034,200
- ---------------------------------------------------------------------------------------
Iowa (State of); School Cash Anticipation
Program Series 2005 B RN
3.50%, 01/27/06(f) -- MIG-1 10,700 10,805,204
=======================================================================================
40,159,404
=======================================================================================
KANSAS-1.27%
Eagle Tax Exempt Trust (County of Wyandotte
Unified Government Utility System); VRD
Series 2004-0038 A COP (Acquired 09/08/04;
Cost $5,000,000)
2.32%, 09/01/21(c)(d)(e) A-1+ -- 5,000 5,000,000
- ---------------------------------------------------------------------------------------
Kansas (State of) Development Finance
Authority (Deaconess Long Term Care);
Health Facilities VRD Series 2000 C RB
(LOC-ABN AMRO Bank N.V.)
2.29%, 05/15/30(b)(c) -- VMIG-1 4,380 4,380,000
- ---------------------------------------------------------------------------------------
Leawood (City of); Unlimited Tax Temporary
Notes Series 2004-2 GO
3.00%, 10/01/05 -- MIG-1 14,000 14,091,450
- ---------------------------------------------------------------------------------------
Lenexa (City of) Health Care Facilities
(Lakeview Village Inc.); VRD Series 2002 B
RB (LOC-ABN AMRO Bank N.V.)
2.30%, 05/15/32(b)(c) A-1 -- 7,500 7,500,000
- ---------------------------------------------------------------------------------------
Olathe (City of) Health Facilities (Cedar
Lake Village Inc. Project); VRD Series 2004
RB (LOC-Bank of America, N.A.)
2.30%, 12/01/29(b)(c) -- VMIG-1 5,000 5,000,000
- ---------------------------------------------------------------------------------------
Olathe (City of) Recreational Facilities
(YMCA of Greater Kansas City Project); VRD
Series 2002 B RB (LOC-Bank of America,
N.A.)
2.35%, 11/01/18(b)(c) -- VMIG-1 3,100 3,100,000
- ---------------------------------------------------------------------------------------
Wichita (City of) Recreational Facilities
(YMCA of Wichita Project); VRD Series 1998
XI RB (LOC-Bank of America, N.A.) (Acquired
02/15/01; Cost $3,500,000)
2.35%, 08/01/09(b)(c)(e) A-1+ -- 3,500 3,500,000
=======================================================================================
42,571,450
=======================================================================================
</Table>
F-10
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
KENTUCKY-1.20%
Kentucky (State of) Area Development
Districts Financing Trust (Weekly
Acquisition-Ewing); Lease Program VRD
Series 2000 RB (LOC-Wachovia Bank, N.A.)
2.39%, 06/01/33(b)(c) A-1 -- $ 5,660 $ 5,660,000
- ---------------------------------------------------------------------------------------
Kentucky (State of) Asset/Liability
Commission; General Funding Series 2004 A
TRAN
3.00%, 06/29/05 SP-1+ MIG-1 15,000 15,052,221
- ---------------------------------------------------------------------------------------
Newport (City of) Kentucky League of Cities
Funding Trust; Lease Program VRD Series
2002 RB (LOC-U.S. Bank N.A.)
2.19%, 04/01/32(b)(c) -- VMIG-1 19,600 19,600,000
=======================================================================================
40,312,221
=======================================================================================
LOUISIANA-0.88%
Eagle Tax Exempt Trust (City of New Orleans);
VRD Series 2000-1801 COP (Acquired
10/10/00; Cost $6,000,000)
2.32%, 12/01/21(c)(d)(e) A-1+ -- 6,000 6,000,000
- ---------------------------------------------------------------------------------------
Louisiana (State of) Public Facilities
Authority (Glen Retirement System Project);
VRD Series 2001 RB (LOC-AmSouth Bank)
(Acquired 08/15/01; Cost $3,270,000)
2.40%, 08/01/16(b)(c)(e) -- VMIG-1 3,270 3,270,000
- ---------------------------------------------------------------------------------------
Louisiana (State of) Regional Transit
Authority; Lease Series 1998 Long Fund RB
6.13%, 05/01/05(g)(i) AAA Aaa 1,800 1,807,860
- ---------------------------------------------------------------------------------------
Louisiana (State of); Unlimited Tax Series
1995 A GO
6.00%, 05/15/05(g)(i) AAA Aaa 5,890 6,036,193
- ---------------------------------------------------------------------------------------
Series 1998 B GO
5.50%, 04/15/05(f) AAA Aaa 1,775 1,777,874
- ---------------------------------------------------------------------------------------
Series 2003 A GO
6.00%, 05/01/05(o) AAA Aaa 10,665 10,701,707
=======================================================================================
29,593,634
=======================================================================================
MAINE-0.20%
JPMorgan PUTTERs (State of Maine Turnpike
Authority); VRD Turnpike Series 2004 546 RB
(Acquired 10/28/04; Cost $1,800,000)
2.32%, 07/01/12(c)(d)(e) -- VMIG-1 1,800 1,800,000
- ---------------------------------------------------------------------------------------
Maine (State of) Housing Authority; Mortgage
Series 2003 E-1 RB
2.26%, 11/15/30(c)(f) A-1+ VMIG-1 4,785 4,785,000
=======================================================================================
6,585,000
=======================================================================================
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
<Caption>
MARYLAND-0.55%
Frederick (County of) Retirement Community
(Buckingham's Choice Inc. Project); VRD
Series 1997 C RB (LOC-Branch Banking &
Trust Co.)
2.31%, 01/01/27(b)(c) A-1 -- $ 6,000 $ 6,000,000
- ---------------------------------------------------------------------------------------
Howard (County of) Economic Development
(Norbel School Inc. Project); VRD Series
2001 RB (LOC-Branch Banking & Trust Co.)
2.27%, 02/01/28(b)(c) -- Aa3 4,785 4,785,000
- ---------------------------------------------------------------------------------------
Maryland (State of) Economic Development
Corp. (YMCA of Central Maryland Inc.
Project); VRD Series 2003 RB (LOC- Branch
Banking & Trust Co.)
2.27%, 04/01/28(b)(c) -- VMIG-1 3,800 3,800,000
- ---------------------------------------------------------------------------------------
Morgan Stanley & Co. Inc. Trust Floater Ctfs.
(State of Maryland Health & Higher
Educational Facilities Authority); VRD
Floating Rate Trust Ctfs. Series 2003-829
RB (Acquired 06/19/03; Cost $3,800,000)
2.32%, 08/15/38(c)(d)(e) -- VMIG-1 3,800 3,800,000
=======================================================================================
18,385,000
=======================================================================================
MASSACHUSETTS-0.65%
Massachusetts (State of) Health & Educational
Facilities Authority (Fairview Extended
Care Services Inc.); Refunding VRD Series
1997 B RB (LOC-Bank of America, N.A.)
2.29%, 01/01/21(b)(c) -- VMIG-1 21,620 21,620,000
=======================================================================================
MICHIGAN-4.91%
Bruce (Township of) Hospital Finance
Authority (Sisters Charity of St. Joseph);
Health Care System VRD Series 1988 A RB
1.80%, 05/02/05(f)(g)(h) A-1+ VMIG-1 2,000 2,000,000
- ---------------------------------------------------------------------------------------
Dearborn (City of) Economic Development Corp.
(Henry Ford Village Inc. Project); VRD
Limited Tax Series 1998 IDR (LOC- Comerica
Bank)
2.33%, 10/01/23(b)(c)(p) -- -- 8,600 8,600,000
- ---------------------------------------------------------------------------------------
Eagle Tax-Exempt Trust (City of Detroit
School District); VRD Unlimited Tax Series
2002-6014 A GO (Acquired 11/06/02; Cost
$7,105,000)
2.32%, 05/01/32(c)(d)(e) A-1+ -- 7,105 7,105,000
- ---------------------------------------------------------------------------------------
</Table>
F-11
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
MICHIGAN-(CONTINUED)
Kalamazoo (County of) Economic Development
Corp. (Heritage Community Project);
Refunding VRD Limited Tax Series 2004 RB
(LOC-Fifth Third Bank)
2.28%, 05/15/17(b)(c) A-1+ -- $ 5,405 $ 5,405,000
- ---------------------------------------------------------------------------------------
Lake Orion (City of) Community School
District; Refunding Unlimited Tax Series
1994 GO
7.00%, 05/01/05(g)(i) AAA Aaa 13,170 13,357,320
- ---------------------------------------------------------------------------------------
Michigan (State of) Higher Educational
Facilities Authority (Hope College);
Refunding VRD Limited Tax Series 2004 GO
(LOC-JPMorgan Chase Bank)
2.31%, 04/01/34(b)(c) A-1 -- 1,900 1,900,000
- ---------------------------------------------------------------------------------------
Michigan (State of) Hospital Finance
Authority (Holland Community Hospital); VRD
Series 2004 B RB (LOC-JPMorgan Chase Bank)
2.29%, 01/01/34(b)(c) -- VMIG-1 2,000 2,000,000
- ---------------------------------------------------------------------------------------
Michigan (State of) Municipal Bond Authority;
Series 2004 B-2 RN (LOC-JPMorgan Chase
Bank)
3.00%, 08/23/05(b) SP-1+ -- 15,000 15,083,289
- ---------------------------------------------------------------------------------------
Michigan (State of) Strategic Fund (Van Andel
Research Institute Project); VRD Limited
Tax Series 1997 RB (LOC-ABN AMRO Bank N.V.)
2.30%, 11/01/27(b)(c) A-1 -- 16,200 16,200,000
- ---------------------------------------------------------------------------------------
Michigan (State of) Strategic Fund (Washtenaw
Christian Project); VRD Limited Tax Series
2003 RB (LOC-ABN AMRO Bank N.V.)
2.29%, 11/01/33(b)(c) A-1 -- 1,500 1,500,000
- ---------------------------------------------------------------------------------------
Michigan (State of); Unlimited Tax Series
2004 A GO
3.50%, 09/30/05 SP-1+ MIG-1 40,000 40,283,819
- ---------------------------------------------------------------------------------------
Oakland (County of) Economic Development
Corp. (Rochester College Project); VRD
Limited Obligation Series 2001 RB (LOC-
JPMorgan Chase Bank)
2.30%, 08/01/21(b)(c) -- VMIG-1 6,900 6,900,000
- ---------------------------------------------------------------------------------------
Troy (City of) School District; Refunding
School Building & Site Unlimited Tax Series
2004 GO
3.00%, 05/01/05 AA Aa1 1,805 1,807,356
- ---------------------------------------------------------------------------------------
University of Michigan; VRD Hospital Series
1995 A RB
2.26%, 12/01/27(c) A-1+ VMIG-1 2,340 2,340,000
- ---------------------------------------------------------------------------------------
University of Michigan; VRD Medical Services
Plan Series 1995 A RB
2.26%, 12/01/27(c) A-1+ VMIG-1 3,160 3,160,000
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
<Caption>
MICHIGAN-(CONTINUED)
Wachovia MERLOTs (City of Detroit Sewage
Disposal System); VRD Series 2001 A112 RB
(Acquired 10/31/01; Cost $4,895,000)
2.35%, 07/01/32(c)(d)(e) -- VMIG-1 $ 4,895 $ 4,895,000
- ---------------------------------------------------------------------------------------
VRD Series 2003 B41 RB (Acquired 07/09/03;
Cost $6,755,000)
2.35%, 07/01/26(c)(d)(e) -- VMIG-1 6,755 6,755,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (City of Detroit Water
Supply System); VRD Series 2000 D RB
(Acquired 01/21/00; Cost $10,000,000)
2.35%, 07/01/29(c)(d)(e) -- VMIG-1 10,000 10,000,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (State of Michigan Hospital
Finance Authority); VRD Series 1997 X RB
(Acquired 12/12/03; Cost $15,000,000)
2.35%, 08/15/24(c)(d)(e) -- VMIG-1 15,000 15,000,000
=======================================================================================
164,291,784
=======================================================================================
MINNESOTA-3.59%
JPMorgan PUTTERs (State of Minnesota Public
Facilities Authority); VRD Drinking Water
Series 2002-319 COP (Acquired 07/31/03;
Cost $14,000,000)
2.30%, 03/01/21(c)(d)(e) A-1 -- 14,000 14,000,000
- ---------------------------------------------------------------------------------------
Minnesota (State of); Refunding Unlimited Tax
Series 2003 GO
2.00%, 08/01/05 AAA Aa1 2,240 2,244,075
- ---------------------------------------------------------------------------------------
Rochester (City of) Health Care Facilities
(Mayo Foundation); Commercial Paper Notes,
Adjustable Tender Series 1988 F
2.05%, 05/09/05 A-1+ -- 20,000 20,000,000
- ---------------------------------------------------------------------------------------
Series 2000 B
2.03%, 06/08/05 A-1+ -- 20,500 20,500,000
- ---------------------------------------------------------------------------------------
Series 2001 A
2.05%, 06/07/05 -- VMIG-1 15,000 15,000,000
- ---------------------------------------------------------------------------------------
Series 2001 B
2.05%, 06/07/05 -- VMIG-1 13,600 13,600,000
- ---------------------------------------------------------------------------------------
Series 2001 C
2.03%, 05/10/05 -- VMIG-1 17,600 17,600,000
- ---------------------------------------------------------------------------------------
St. Paul (City of) Housing & Redevelopment
Authority (Science Museum of Minnesota);
VRD Series 1997 A RB (LOC- U.S. Bank N.A.)
2.33%, 05/01/27(b)(c) -- VMIG-1 17,360 17,360,000
=======================================================================================
120,304,075
=======================================================================================
</Table>
F-12
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
MISSISSIPPI-2.17%
ABN AMRO Munitops Ctfs. Trust (State of
Mississippi Development Board-Jackson Water
& Sewer); Multi-State Non-AMT VRD Series
2002-22 Ctfs. (Acquired 09/10/03; Cost
$9,995,000)
2.33%, 09/01/10(c)(d)(e) -- VMIG-1 $ 9,995 $ 9,995,000
- ---------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (State of
Mississippi); VRD Unlimited Tax Series
2002-6018 A COP (Acquired 11/20/02; Cost
$3,200,000)
2.32%, 11/01/22(c)(d)(e) A-1+ -- 3,200 3,200,000
- ---------------------------------------------------------------------------------------
Mississippi (State of) Business Finance Corp.
(Jackson Medical Mall); VRD Series 2000 A
RB (LOC-JPMorgan Chase Bank)
2.30%, 11/01/18(b)(c) A-1 -- 5,300 5,300,000
- ---------------------------------------------------------------------------------------
Mississippi (State of) Business Finance Corp.
(Mississippi College Project); VRD Series
2003 RB (LOC-AmSouth Bank)
2.40%, 07/01/23(b)(c) -- VMIG-1 9,300 9,300,000
- ---------------------------------------------------------------------------------------
Perry (County of) (Leaf River Forest Products
Project); Refunding VRD Series 2002 PCR
(LOC- Citibank N.A.)
2.25%, 02/01/22(b)(c) A-1+ -- 36,500 36,500,000
- ---------------------------------------------------------------------------------------
University of Mississippi Educational
Building Corp. (Campus Improvements
Project); VRD Series 2000 RB
2.31%, 10/01/20(c)(f) -- VMIG-1 8,235 8,235,000
=======================================================================================
72,530,000
=======================================================================================
MISSOURI-1.15%
Missouri (State of) Development Finance Board
(Center of Creative Arts Project); Cultural
Facilities VRD Series 2004 RB (LOC-
National City Bank)
2.32%, 07/01/24(b)(c) -- VMIG-1 2,100 2,100,000
- ---------------------------------------------------------------------------------------
Missouri (State of) Health & Educational
Facilities Authority (Lutheran Senior
Services); Health Facilities VRD Series
2000 RB (LOC-U.S. Bank N.A.)
2.30%, 02/01/31(b)(c) -- VMIG-1 29,000 29,000,000
- ---------------------------------------------------------------------------------------
Missouri (State of) Health & Educational
Facilities Authority (Washington University
Project); Educational Facilities VRD Series
1985 B RB
2.33%, 09/01/10(c) A-1+ VMIG-1 1,100 1,100,000
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
<Caption>
MISSOURI-(CONTINUED)
Platte (County of) Industrial Development
Authority (Southern Platte County Athletic
Assoc. Inc.); Recreational Facilities VRD
Series 2005 A RB (LOC-Bank of America,
N.A.)
2.32%, 10/01/25(b)(c) -- VMIG-1 $ 2,140 $ 2,140,000
- ---------------------------------------------------------------------------------------
St. Louis (County of) Industrial Development
Authority (Friendship Village of South
County); VRD Series 2002 B IDR (LOC-ABN
AMRO Bank N.V.)
2.30%, 09/01/22(b)(c) A-1 -- 2,915 2,915,000
- ---------------------------------------------------------------------------------------
St. Louis (County of) Industrial Development
Authority (Whitfield School Inc.);
Educational Facilities Refunding VRD Series
2004 B IDR (LOC- U.S. Bank N.A.)
2.32%, 06/15/24(b)(c) A-1+ -- 1,400 1,400,000
=======================================================================================
38,655,000
=======================================================================================
MONTANA-0.34%
Montana (State of) Facility Finance Authority
(Mission Ridge Project); VRD Series 2002 RB
(LOC-ABN AMRO Bank N.V.)
2.31%, 08/01/27(b)(c)(j) -- -- 11,365 11,365,000
=======================================================================================
NEBRASKA-1.32%
Nebhelp Inc.; Multi-Mode VRD Series 1985 A RB
2.35%, 12/01/15(c)(f) A-1+ VMIG-1 5,995 5,995,000
- ---------------------------------------------------------------------------------------
VRD Series 1985 B RB
2.35%, 12/01/15(c)(f) A-1+ VMIG-1 3,590 3,590,000
- ---------------------------------------------------------------------------------------
VRD Series 1985 D RB
2.35%, 12/01/15(c)(f) A-1+ VMIG-1 5,865 5,865,000
- ---------------------------------------------------------------------------------------
VRD Series 1985 E RB
2.35%, 12/01/15(c)(f) A-1+ VMIG-1 28,635 28,635,000
=======================================================================================
44,085,000
=======================================================================================
NEVADA-0.48%
ABN AMRO Munitops Ctfs. Trust (County of
Washoe); Refunding VRD Limited Tax Series
2001-24 Single Asset Trust Ctfs. (Acquired
06/21/01; Cost $5,500,000)
2.33%, 07/01/09(c)(d)(e) -- VMIG-1 5,500 5,500,000
- ---------------------------------------------------------------------------------------
Carson (City of) (Tahoe Hospital Project);
Hospital VRD Series 2003 B RB (LOC- U.S.
Bank N.A.)
2.30%, 09/01/33(b)(c) A-1+ -- 10,500 10,500,000
=======================================================================================
16,000,000
=======================================================================================
</Table>
F-13
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
NEW HAMPSHIRE-0.69%
Morgan Stanley & Co. Inc. Trust Floater Ctfs.
(New Hampshire Higher Education & Health
Facilities Authority); Refunding VRD Series
2003-772 RB (Acquired 01/22/03; Cost
$5,475,000)
2.34%, 01/01/17(c)(d)(e) A-1 -- $ 5,475 $ 5,475,000
- ---------------------------------------------------------------------------------------
Morgan Stanley & Co. Inc. Trust Floater Ctfs.
(New Hampshire Higher Educational & Health
Facilities Authority); Refunding VRD Series
2003-866 RB (Acquired 10/23/03; Cost
$7,485,000)
2.34%, 08/15/21(c)(d)(e) A-1 -- 7,485 7,485,000
- ---------------------------------------------------------------------------------------
New Hampshire (State of) Higher Educational &
Health Facilities Authority (VHA-New
England Inc.); VRD Series 1985 G RB
2.30%, 12/01/25(c)(f) A-1+ -- 10,000 10,000,000
=======================================================================================
22,960,000
=======================================================================================
NEW JERSEY-0.13%
Salem (County of) Improvement Authority
(Friends Home at Woodstown Inc.); VRD
Series 2004 RB (LOC-Bank of America, N.A.)
2.30%, 04/01/34(b)(c) -- VMIG-1 4,440 4,440,000
=======================================================================================
NEW YORK-0.53%
ABN AMRO Munitops Ctfs. Trust (Triborough
Bridge & Tunnel Authority); Non-AMT VRD
Series 2002-31 Ctfs. (Acquired 03/24/04;
Cost $16,000,000)
2.30%, 11/15/10(c)(d)(e) -- VMIG-1 16,000 16,000,000
- ---------------------------------------------------------------------------------------
New York (State of) Dormitory Authority
(Rochester Institute of Technology); Series
1997 RB
6.00%, 08/15/05(f) AAA Aaa 1,815 1,841,296
=======================================================================================
17,841,296
=======================================================================================
NORTH CAROLINA-1.05%
North Carolina (State of) Capital Facilities
Finance Agency (Barton College);
Educational Facilities VRD Series 2004 RB
(LOC- Branch Banking & Trust Co.)
2.27%, 07/01/19(b)(c) -- VMIG-1 5,750 5,750,000
- ---------------------------------------------------------------------------------------
North Carolina (State of) Capital Facilities
Finance Agency (Elon College); VRD Series
2001 A RB (LOC-Bank of America, N.A.)
2.30%, 01/01/14(b)(c)(j) -- -- 8,115 8,115,000
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
<Caption>
NORTH CAROLINA-(CONTINUED)
North Carolina (State of) Capital Facilities
Finance Agency (Goodwill Community
Foundation Project); VRD Series 2002 RB
(LOC-Bank of America, N.A.)
2.30%, 04/01/22(b)(c)(j) -- -- $ 2,070 $ 2,070,000
- ---------------------------------------------------------------------------------------
North Carolina (State of) Capital Facilities
Finance Agency (Goodwill Industries of
Central North Carolina Inc.); VRD Series
2004 RB (LOC-Bank of America, N.A.)
2.30%, 12/01/24(b)(c)(j) -- -- 4,915 4,915,000
- ---------------------------------------------------------------------------------------
North Carolina (State of) Capital Facilities
Finance Agency (Thompson Children's Home);
Educational Facilities VRD Series 2000 RB
(LOC-Bank of America, N.A.)
2.30%, 12/01/20(b)(c)(j) -- -- 3,150 3,150,000
- ---------------------------------------------------------------------------------------
North Carolina (State of) Capital Facilities
Finance Agency (Wolfpack Club Project); VRD
Series 2002 RB (LOC-Bank of America, N.A.)
2.30%, 04/01/12(b)(c)(j) -- -- 6,800 6,800,000
- ---------------------------------------------------------------------------------------
North Carolina (State of) Medical Care
Commission; Refunding First Mortgage Health
Care Facilities VRD Series 2004 C RB (LOC-
SunTrust Bank)
2.27%, 11/01/27(b)(c) -- VMIG-1 3,500 3,500,000
- ---------------------------------------------------------------------------------------
University of North Carolina; VRD Series 2001
B RB
2.30%, 12/01/25(c) A-1+ VMIG-1 1,000 1,000,000
=======================================================================================
35,300,000
=======================================================================================
OHIO-3.66%
Akron, Bath & Copley (Townships of) Joint
Township Hospital District (Summa Health
Systems); VRD Series 2004 B RB (LOC-
JPMorgan Chase Bank)
2.29%, 11/01/34(b)(c) -- VMIG-1 5,000 5,000,000
- ---------------------------------------------------------------------------------------
Butler (County of) Health Care Facilities
(Lifesphere Project); Refunding &
Improvement VRD Series 2002 RB (LOC- U.S.
Bank N.A.)
2.30%, 05/01/27(b)(c) A-1+ -- 8,500 8,500,000
- ---------------------------------------------------------------------------------------
Cambridge (City of) Hospital Facilities
(Regional Medical Center Project);
Refunding & Improvement VRD Series 2001 RB
(LOC-National City Bank)
2.31%, 12/01/21(b)(c) -- VMIG-1 10,790 10,790,000
- ---------------------------------------------------------------------------------------
</Table>
F-14
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
OHIO-(CONTINUED)
Centerville (City of) (Bethany Lutheran
Village Project); Health Care VRD Series
1994 RB (LOC- National City Bank)
2.31%, 11/01/13(b)(c) -- VMIG-1 $ 2,905 $ 2,905,000
- ---------------------------------------------------------------------------------------
Cleveland Heights (City of); Limited Tax
Series 2004 BAN GO
2.00%, 08/18/05(p) -- -- 3,234 3,238,840
- ---------------------------------------------------------------------------------------
Cuyahoga (County of) Health Care Facilities
(Judson Retirement Community); Refunding
VRD Series 2000 RB (LOC-National City Bank)
2.31%, 11/15/19(b)(c) A-1 -- 700 700,000
- ---------------------------------------------------------------------------------------
Franklin (County of) Health Care Facilities
(First Community Village); Refunding &
Improvement VRD Series 2005 RB
(LOC-Sovereign Bank, KBC Bank N.V.)
2.33%, 03/01/36(b)(c) A-1+ -- 5,000 5,000,000
- ---------------------------------------------------------------------------------------
Lake (County of); Limited Tax Series 2004 BAN
GO
2.00%, 04/14/05(p) -- -- 5,250 5,251,154
- ---------------------------------------------------------------------------------------
Lorain (County of) (EMH Regional Medical
Center Project); Hospital Facilities VRD
Series 2001 RB (LOC-National City Bank)
2.34%, 05/01/26(b)(c)(p) -- -- 14,950 14,950,000
- ---------------------------------------------------------------------------------------
Mahoning (County of) Hospital Facilities
(Forum Health Obligation Group) VRD Series
1997 B RB
2.28%, 12/01/28(c)(f) A-1+ VMIG-1 19,100 19,100,000
- ---------------------------------------------------------------------------------------
VRD Series 2002 B RB (LOC- Fifth Third
Bank)
2.31%, 12/01/27(b)(c) -- VMIG-1 6,800 6,800,000
- ---------------------------------------------------------------------------------------
Marion (County of) (Pooled Lease Program);
Hospital Improvement VRD Series 1990 RB
(LOC- JPMorgan Chase Bank)
2.31%, 08/01/20(b)(c) A-1+ -- 1,325 1,325,000
- ---------------------------------------------------------------------------------------
Middleburg Heights (City of) (Southwest
General Health); Hospital Improvement
Series 1997 RB (LOC-Fifth Third Bank)
2.31%, 08/15/22(b)(c) A-1+ -- 5,405 5,405,000
- ---------------------------------------------------------------------------------------
Montgomery (County of) (St. Vincent DePaul
Society); Limited Obligation VRD Series
1996 RB (LOC-National City Bank)
2.31%, 12/01/10(b)(c) A-1 -- 1,735 1,735,000
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
<Caption>
OHIO-(CONTINUED)
Portage (County of) (Robinson Memorial
Hospital); Hospital VRD Series 2002 RB
(LOC-JPMorgan Chase Bank)
2.31%, 05/01/17(b)(c) -- VMIG-1 $ 6,255 $ 6,255,000
- ---------------------------------------------------------------------------------------
Reynoldsburg (City of) School District
(School Facilities Construction); Unlimited
Tax Series 2004 A BAN GO
2.75%, 06/24/05 -- MIG-1 5,900 5,910,765
- ---------------------------------------------------------------------------------------
Unlimited Tax Series 2005 BAN GO
3.00%, 06/24/05 -- MIG1 3,150 3,157,955
- ---------------------------------------------------------------------------------------
Solon (City of); Series 2004 BAN
2.75%, 12/01/05(p) -- -- 3,000 3,013,738
- ---------------------------------------------------------------------------------------
Toledo-Lucas (County of) Port Authority
(Franciscan Communities St. Mary of the
Woods Inc.); VRD Series 2004 C RB
(LOC-Sovereign Bank, Bank of Nova Scotia)
2.28%, 05/15/38(b)(c) A-1+ -- 10,700 10,700,000
- ---------------------------------------------------------------------------------------
Upper Arlington (City of); Street Improvement
Limited Tax Series 2005 BAN GO
3.00%, 01/10/06 -- MIG-1 1,802 1,813,655
- ---------------------------------------------------------------------------------------
Youngstown (City of) School District
(Classroom Facilities & School
Improvement); Unlimited Tax Series 2005 GO
3.00%, 12/01/05(f) AAA Aaa 1,000 1,005,299
=======================================================================================
122,556,406
=======================================================================================
OKLAHOMA-1.01%
Oklahoma (County of) Finance Authority
(Oxford Oaks Apartments Projects);
Refunding Multi-Family Housing VRD Series
2000 RB (CEP-Federal National Mortgage
Association)
2.30%, 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.)
2.38%, 06/01/11(b)(c) A-1+ -- 3,785 3,785,000
- ---------------------------------------------------------------------------------------
Tulsa (County of) Industrial Authority;
Capital Improvements Series 2003 B RB
4.00%, 05/15/05 AA- -- 2,500 2,507,347
=======================================================================================
33,987,347
=======================================================================================
</Table>
F-15
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
OREGON-0.75%
JPMorgan PUTTERs (City of Portland); Sewer
System VRD Series 2004 614 RB (Acquired
12/02/04; Cost $1,600,000)
2.32%, 10/01/12(c)(d)(e) -- VMIG-1 $ 1,600 $ 1,600,000
- ---------------------------------------------------------------------------------------
Oregon (State of) Health, Housing,
Educational & Cultural Facilities Authority
(Quatama Crossing LLC Housing Project); VRD
Series 1998 RB (LOC-U.S. Bank N.A.)
2.35%, 01/01/31(b)(c) -- Aa2 7,320 7,320,000
- ---------------------------------------------------------------------------------------
Oregon (State of) Housing & Community
Services Department Mortgage; Single Family
Mortgage Program Series 2004 O RN
2.00%, 06/01/05 -- MIG-1 2,300 2,300,000
- ---------------------------------------------------------------------------------------
Series 2004 O-2 RN
2.10%, 09/01/05 -- MIG-1 3,000 3,000,000
- ---------------------------------------------------------------------------------------
Oregon (State of); Series 2004 A TAN
3.00%, 06/30/05 SP-1+ MIG-1 6,500 6,519,573
- ---------------------------------------------------------------------------------------
Portland (City of) Housing Authority
(Riverwood Project); Refunding Multi-Family
Series 1995 RB
6.00%, 01/01/06(g)(i) AAA NRR 1,170 1,202,371
- ---------------------------------------------------------------------------------------
Portland (City of); Unlimited Tax Series 1995
B GO
5.75%, 06/01/05(g)(i) NRR Aaa 2,000 2,012,136
- ---------------------------------------------------------------------------------------
Salem (City of) Water & Sewer; Refunding
Series 2004 RB
3.00%, 05/01/05(f) AAA Aaa 1,175 1,176,383
=======================================================================================
25,130,463
=======================================================================================
PENNSYLVANIA-3.07%
ABN AMRO Munitops Ctfs. Trust (City of
Reading School District); Non-AMT VRD
Series 2003-20 Ctfs. (Acquired 03/02/05;
Cost $4,225,000)
2.32%, 07/15/11(c)(d)(e)(j) -- -- 4,225 4,225,000
- ---------------------------------------------------------------------------------------
ABN AMRO Munitops Ctfs. Trust (State of
Pennsylvania Public School Building
Authority); Non-AMT VRD Series 2001-30
Ctfs. (Acquired 10/31/02; Cost $5,000,000)
2.32%, 09/01/09(c)(d)(e) -- VMIG-1 5,000 5,000,000
- ---------------------------------------------------------------------------------------
Series 2003-24 Ctfs. (Acquired 03/08/04;
Cost $7,000,000)
2.32%, 06/01/11(c)(d)(e) -- VMIG-1 7,000 7,000,000
- ---------------------------------------------------------------------------------------
Allegheny (County of) Industrial Development
Authority (Carnegie Museums of Pittsburgh);
VRD Series 2002 IDR (LOC-Royal Bank of
Scotland)
2.40%, 08/01/32(b)(c) -- VMIG-1 2,000 2,000,000
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
<Caption>
PENNSYLVANIA-(CONTINUED)
Berks (County of) Industrial Development
Authority (Lutheran Services); Health Care
VRD Series 1998 A IDR
2.29%, 01/01/28(c)(f) -- VMIG-1 $ 9,995 $ 9,995,000
- ---------------------------------------------------------------------------------------
Chartiers Valley (Community of) Industrial &
Commercial Development Authority (Asbury
Villas Project); VRD Series 2000 B IDR
(LOC-ABN AMRO Bank N.V.)
2.31%, 12/01/30(b)(c) A-1 -- 3,000 3,000,000
- ---------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (Delaware Valley
Regional); VRD Series 2001-3801 COP
(Acquired 06/04/01; Cost $8,900,000)
2.31%, 08/01/28(c)(d)(e) A-1+ -- 8,900 8,900,000
- ---------------------------------------------------------------------------------------
Franklin (County of) Industrial Development
Authority (Chambersburg Hospital
Obligation); Health Care VRD Series 2000
IDR
2.38%, 12/01/24(c)(f) A-1 -- 3,385 3,385,000
- ---------------------------------------------------------------------------------------
Geisinger (City of) Authority (Geisinger
Health System); VRD Series 2002 RB
2.30%, 11/15/32(k) A-1+ VMIG-1 12,200 12,200,000
- ---------------------------------------------------------------------------------------
Lehigh (County of) Industrial Development
Authority (Allegheny Electric Coop. Inc.);
Refunding VRD Series 1984 PCR (LOC-
Rabobank Nederland)
2.05%, 06/01/14(b)(m) A-1+ -- 1,030 1,030,000
- ---------------------------------------------------------------------------------------
VRD Series 1984 PCR (LOC- Rabobank
Nederland)
2.05%, 10/01/14(b)(m) A-1+ -- 7,180 7,180,000
- ---------------------------------------------------------------------------------------
Montgomery (County of) Higher Education &
Health Authority (Holy Redeemer Health
System); Health Care Series 1997 A RB
5.50%, 10/01/05(f) AAA Aaa 2,240 2,276,734
- ---------------------------------------------------------------------------------------
Pennsylvania (State of) Higher Educational
Facilities Authority (Washington &
Jefferson Development); VRD Series 2005 A
RB (LOC-Sovereign Bank, Uncredito Italiano
S.p.A.)
2.25%, 11/01/36(b)(c) -- VMIG-1 3,000 3,000,000
- ---------------------------------------------------------------------------------------
Philadelphia (City of) Hospitals & Higher
Education of Facilities Authority
(Children's Hospital of Philadelphia
Project); Hospital VRD Series 2002 A RB
2.28%, 07/01/22(k) A-1+ VMIG-1 8,400 8,400,000
- ---------------------------------------------------------------------------------------
</Table>
F-16
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
PENNSYLVANIA-(CONTINUED)
Sayre (City of) Health Care Facilities
Authority (VHR of Pennsylvania Capital
Financing Project); VRD Series 1985 K RB
2.30%, 12/01/20(c)(f) A-1+ Aaa $19,800 $ 19,800,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (City of Scranton & County
of Lackawanna Health & Welfare Authority);
VRD Series 2002 A-18 RB (Acquired 03/22/02;
Cost $5,120,000)
2.35%, 03/01/15(c)(d)(e) -- VMIG-1 5,120 5,120,000
=======================================================================================
102,511,734
=======================================================================================
SOUTH CAROLINA-1.91%
Cherokee (County of) (Newark Electronics
Division); Industrial VRD Series 1985 RB
(LOC-ABN AMRO Bank N.V.)
2.30%, 12/01/15(b)(c) A-1 -- 6,500 6,500,000
- ---------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (State of South
Carolina Public Service Authority); VRD
Series 2000-4001 A COP (Acquired 09/08/00;
Cost $10,100,000)
2.32%, 01/01/22(c)(d)(e) A-1+ -- 10,100 10,100,000
- ---------------------------------------------------------------------------------------
Horry (County of) School District; Unlimited
Tax Series 2004 GO BAN
3.50%, 09/01/05 SP-1 MIG-1 10,000 10,070,209
- ---------------------------------------------------------------------------------------
Morgan Stanley & Co. Inc. Trust Floater Ctfs.
(State of South Carolina Transportation
Infrastructure Bank); Floating Rate Trust
Ctfs. VRD Series 2002-728 RB (Acquired
11/13/02; Cost $7,185,000)
2.32%, 10/01/22(c)(d)(e) -- VMIG-1 7,185 7,185,000
- ---------------------------------------------------------------------------------------
South Carolina (State of) Educational
Facilities Authority for Non-Profit
Institutions (Morris College Project); VRD
Series 1997 RB (LOC-Bank of America, N.A.)
(Acquired 07/30/02; Cost $2,100,000)
2.35%, 07/01/17(b)(c)(e) A-1+ -- 2,100 2,100,000
- ---------------------------------------------------------------------------------------
South Carolina (State of) Educational
Facilities Authority for Non-Profit
Institutions (The Allen University
Project); VRD Series 1998 RB (LOC-Bank of
America, N.A.) (Acquired 03/27/01; Cost
$2,525,000)
2.35%, 09/01/18(b)(c)(e) A-1+ -- 2,525 2,525,000
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
<Caption>
- ---------------------------------------------------------------------------------------
SOUTH CAROLINA-(CONTINUED)
South Carolina (State of) Jobs-Economic
Development Authority (Carolina Children's
Home Project); VRD Series 2003 RB
(LOC-Branch Banking & Trust Co.)
2.27%, 03/01/23(b)(c) -- VMIG-1 $ 3,365 $ 3,365,000
- ---------------------------------------------------------------------------------------
South Carolina (State of) Jobs-Economic
Development Authority (Carolina Piedmont
Foundation Project); VRD Series 2002 RB
(LOC-Bank of America, N.A.)
2.35%, 09/01/32(b)(c) -- -- 4,000 4,000,000
- ---------------------------------------------------------------------------------------
South Carolina (State of) Jobs-Economic
Development Authority (Catholic Diocese of
South Carolina Project); VRD Series 1998 RB
(LOC-Bank of America, N.A.) (Acquired
07/23/02; Cost $2,555,000)
2.35%, 09/01/18(b)(c)(e) A-1+ -- 2,555 2,555,000
- ---------------------------------------------------------------------------------------
South Carolina (State of) Jobs-Economic
Development Authority (Presbyterian Home of
South Carolina Project); VRD Series 2003 A
RB (LOC-Wachovia Bank, N.A.)
2.35%, 04/01/20(b)(c) A-1 -- 4,070 4,070,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (State of South Carolina
Public Service Authority); VRD Series 2000
L RB (Acquired 02/25/00; Cost $11,590,000)
2.35%, 01/01/22(c)(d)(e) -- VMIG-1 11,590 11,590,000
=======================================================================================
64,060,209
=======================================================================================
SOUTH DAKOTA-0.09%
South Dakota (State of) Health & Educational
Facilities Authority (University of Sioux
Falls); VRD Series 2001 RB (LOC-Wells Fargo
Bank N.A.)
2.28%, 10/01/16(b)(c) A-1+ -- 3,155 3,155,000
=======================================================================================
TENNESSEE-5.14%
Clarksville (City of) Public Building
Authority (Tennessee Municipal Bond Fund);
Pooled Financing VRD Series 1999 RB
(LOC-Bank of America, N.A.) (Acquired
03/15/05; Cost $27,205,000)
2.30%, 06/01/29(b)(c)(e) -- VMIG-1 27,205 27,205,000
- ---------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Chattanooga);
VRD Series 2000-4202 A COP (Acquired
10/10/00; Cost $14,040,000)
2.32%, 10/01/27(c)(d)(e) A-1+ -- 14,040 14,040,000
- ---------------------------------------------------------------------------------------
</Table>
F-17
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
TENNESSEE-(CONTINUED)
Jackson (City of) Energy Authority; Electric
Systems VRD Series 2003 B RB
2.30%, 11/01/26(c)(f) -- VMIG-1 $12,200 $ 12,200,000
- ---------------------------------------------------------------------------------------
Jackson (City of) Health & Educational
Facilities Board (Trinity Christian
Academy); Educational Facilities VRD Series
2002 RB (LOC-AmSouth Bank)
2.40%, 03/01/22(b)(c) -- VMIG-1 5,295 5,295,000
- ---------------------------------------------------------------------------------------
Knox (County of) Health Educational & Housing
Facility Board (Volunteer Student Housing
LLC Project); Student Housing VRD Series
2002 RB (LOC- Wachovia Bank, N.A.)
2.29%, 09/01/34(b)(c) -- VMIG-1 26,625 26,625,000
- ---------------------------------------------------------------------------------------
Morgan Stanley & Co. Inc. Trust Floater Ctfs.
(City of Nashville & County of Davidson);
Unlimited Tax Series 2003-871 GO (Acquired
11/17/03; Cost $4,995,000)
2.32%, 10/15/10(c)(d)(e) -- VMIG-1 4,995 4,995,000
- ---------------------------------------------------------------------------------------
Nashville (City of) & Davidson (County of)
Metropolitan Government Health &
Educational Facilities Board (Adventist
Health System); VRD Series 1997 A RB
(LOC-SunTrust Bank)
2.28%, 11/15/27(b)(c) A-1+ VMIG-1 2,325 2,325,000
- ---------------------------------------------------------------------------------------
Nashville (City of) & Davidson (County of)
Metropolitan Government Health &
Educational Facilities Board (Ensworth
School Project); VRD Series 2002 RB
(LOC-SunTrust Bank)
2.29%, 12/01/27(b)(c) -- VMIG-1 7,675 7,675,000
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
<Caption>
- ---------------------------------------------------------------------------------------
TENNESSEE-(CONTINUED)
Sevier (County of) Public Building Authority
(Local Government Public Improvement); VRD
Series 1995 A RB
2.31%, 06/01/15(c)(f) -- VMIG-1 $ 5,230 $ 5,230,000
- ---------------------------------------------------------------------------------------
VRD Series 1995 B-2 RB
2.31%, 06/01/06(c)(f) -- VMIG-1 1,200 1,200,000
- ---------------------------------------------------------------------------------------
VRD Series 1997 I A-1 RB
2.31%, 06/01/22(c)(f) -- VMIG-1 5,900 5,900,000
- ---------------------------------------------------------------------------------------
VRD Series 1997 II E-1 RB
2.31%, 06/01/21(c)(f) -- VMIG-1 2,100 2,100,000
- ---------------------------------------------------------------------------------------
VRD Series 1997 II E-3 RB
2.31%, 06/01/10(c)(f) -- VMIG-1 1,485 1,485,000
- ---------------------------------------------------------------------------------------
VRD Series 1997 II E-5 RB
2.31%, 06/01/17(c)(f) -- VMIG-1 1,320 1,320,000
- ---------------------------------------------------------------------------------------
VRD Series 1997 II F-1 RB
2.31%, 06/01/17(c)(f) -- VMIG-1 1,190 1,190,000
- ---------------------------------------------------------------------------------------
VRD Series 1997 II F-5 RB
2.31%, 06/01/27(c)(f) -- VMIG-1 2,265 2,265,000
- ---------------------------------------------------------------------------------------
VRD Series 1998 III A-1 RB
2.31%, 06/01/07(c)(f) -- VMIG-1 14,950 14,950,000
- ---------------------------------------------------------------------------------------
VRD Series 1998 III A-3 RB
2.31%, 06/01/19(c)(f) -- VMIG-1 1,425 1,425,000
- ---------------------------------------------------------------------------------------
VRD Series 1998 III A-4 RB
2.31%, 06/01/17(c)(f) -- VMIG-1 300 300,000
- ---------------------------------------------------------------------------------------
VRD Series 1998 III B-2 RB
2.31%, 06/01/19(c)(f) -- VMIG-1 5,650 5,650,000
- ---------------------------------------------------------------------------------------
VRD Series 1998 III C-3 RB
2.31%, 06/01/18(c)(f) -- VMIG-1 3,475 3,475,000
- ---------------------------------------------------------------------------------------
VRD Series 1998 III C-4 RB
2.31%, 06/01/20(c)(f) -- VMIG-1 10,000 10,000,000
- ---------------------------------------------------------------------------------------
VRD Series 1999 II A-1 RB
2.31%, 06/01/24(c)(f) -- VMIG-1 6,300 6,300,000
- ---------------------------------------------------------------------------------------
VRD Series 1999 II B-1 RB
2.31%, 06/01/25(c)(f) -- VMIG-1 1,700 1,700,000
- ---------------------------------------------------------------------------------------
Shelby (County of) Health, Educational &
Housing Facilities Board (St. Benedict
Auburndale School); VRD Series 2003 RB
(LOC-AmSouth Bank)
2.32%, 05/01/33(b)(c) -- VMIG-1 5,000 5,000,000
- ---------------------------------------------------------------------------------------
Williamson (County of) Industrial Development
Board (Currey Ingram Academy); Educational
Facilities VRD Series 2003 RB (LOC-SunTrust
Bank)
2.35%, 04/01/23(b)(c) -- VMIG-1 2,400 2,400,000
=======================================================================================
172,250,000
=======================================================================================
</Table>
F-18
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
TEXAS-12.01%
ABN AMRO Munitops Ctfs. Trust (City of
Leander Independent School District);
Unlimited Multi-State Non-AMT VRD Series
2002-16 Ctfs. (Acquired 08/20/03; Cost
$5,395,000)
2.33%, 08/15/10(c)(d)(e) -- VMIG-1 $ 5,395 $ 5,395,000
- ---------------------------------------------------------------------------------------
Amarillo (City of) Health Facilities Corp.
(Panhandle Pooled Health Care); VRD Series
1985 RB (LOC-BNP Paribas)
2.42%, 05/31/25(b)(c) -- VMIG-1 655 655,000
- ---------------------------------------------------------------------------------------
Austin (City of); Refunding Utility System
Series 1995 RB
5.60%, 05/15/05(g)(i) AAA Aaa 5,000 5,025,074
- ---------------------------------------------------------------------------------------
Bell (County of) Health Facilities
Development Corp. (Scott & White Memorial
Hospital); VRD Series 2000 B-1 RB
2.30%, 08/15/29(f)(k) A-1+ VMIG-1 32,300 32,300,000
- ---------------------------------------------------------------------------------------
Bexar (County of) Health Facilities
Development Corp. (Air Force Village); VRD
Series 2000 RB (LOC-Bank of America, N.A.)
2.28%, 04/11/05(b)(c) A-1+ -- 9,500 9,500,000
- ---------------------------------------------------------------------------------------
Bexar (County of) Health Facilities
Development Corp. (Warm Springs
Rehabilitation Foundation); Health Care
System VRD Series 1997 RB (LOC-JPMorgan
Chase Bank)
2.35%, 09/01/27(b)(c) -- VMIG-1 3,435 3,435,000
- ---------------------------------------------------------------------------------------
Brownsville (City of) Utility Systems;
Refunding VRD Sub Lien Series 2001 A RB
2.05%, 06/21/05(f)(h)(l) A-1+ VMIG-1 3,000 3,000,000
- ---------------------------------------------------------------------------------------
Crawford (City of) Education Facilities Corp.
Package (University Parking System
Project); Refunding VRD Series 2004 A RB
(LOC-BNP Paribas)
2.38%, 05/01/35(b)(c) -- VMIG-1 5,000 5,000,000
- ---------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Houston
Airport); VRD Series 2000-4307 COP
(Acquired 11/15/00; Cost $15,750,000)
2.32%, 07/01/28(c)(d)(e) A-1+ -- 15,750 15,750,000
- ---------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Houston Water
& Sewer); VRD Series 1997-4305 A COP
(Acquired 04/27/99; Cost $14,005,000)
2.32%, 12/01/27(c)(d)(e) A-1+ -- 14,005 14,005,000
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
<Caption>
TEXAS-(CONTINUED)
Eagle Tax Exempt Trust (City of Houston Water
& Sewer); VRD Series 2002-6019 A COP
(Acquired 11/13/02; Cost $8,910,000)
2.32%, 12/01/30(c)(d)(e) A-1+ -- $ 8,910 $ 8,910,000
- ---------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (Harris County Toll
Road); VRD Series 2001-4305 COP (Acquired
05/08/01; Cost $7,390,000)
2.32%, 08/01/14(c)(d)(e) A-1+ -- 7,390 7,390,000
- ---------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (Harris County Toll
Road); VRD Series 2002-6012 A COP (Acquired
11/20/02; Cost $1,580,000)
2.32%, 08/15/30(c)(d)(e) A-1+ -- 1,580 1,580,000
- ---------------------------------------------------------------------------------------
Garland (City of) Industrial Development
Authority Inc. (Carroll Co. Project); VRD
Series 1984 IDR (LOC-Wells Fargo Bank N.A.)
(Acquired 09/03/03; Cost $2,300,000)
2.35%, 12/01/14(b)(c)(e) -- Aaa 2,300 2,300,000
- ---------------------------------------------------------------------------------------
Grand Prairie (City of) Housing Finance Corp.
(Lincoln Property Co.); Refunding
Multi-Family Housing VRD Series 1993 RB
(CEP-General Electric Corp.)
2.30%, 06/01/10(c) A-1+ -- 2,700 2,700,000
- ---------------------------------------------------------------------------------------
Grapevine (City of) Industrial Development
Corp. (Southern Air Transport); Refunding
Airport Series 1993 RB (LOC-JPMorgan Chase
Bank)
2.30%, 03/01/10(b)(c) A-1+ -- 2,300 2,300,000
- ---------------------------------------------------------------------------------------
Harris (County of) Cultural Education
Facilities Finance Corp. (Houston Music
Hall Foundation); VRD Series 1999 RB (LOC-
JPMorgan Chase Bank)
2.35%, 06/01/29(b)(c) A-1+ -- 700 700,000
- ---------------------------------------------------------------------------------------
Harris (County of) Health Facilities
Development Corp. (Texas Children's
Hospital Project); Refunding Hospital
Series 1995 RB
6.00%, 10/01/05(o) AAA Aaa 1,250 1,273,825
- ---------------------------------------------------------------------------------------
Harris (County of) Health Facilities
Development Corp. (Methodist Hospital);
Refunding VRD Series 2005 B RB
2.07%, 05/09/05(h)(l) A-1+ -- 11,800 11,800,000
- ---------------------------------------------------------------------------------------
Harris (County of) Hospital District; Sub.
Lien Commercial Paper Series A RN (LOC-Bank
of America, N.A.)
2.11%, 05/11/05(b) A-1+ -- 9,451 9,451,000
- ---------------------------------------------------------------------------------------
</Table>
F-19
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
TEXAS-(CONTINUED)
Harris (County of) Houston Texas Sports
Authority (Rodeo); Jr. Lein VRD Series 2001
C RB
2.30%, 11/15/30(c)(f) A-1+ VMIG-1 $ 6,300 $ 6,300,000
- ---------------------------------------------------------------------------------------
Hays (County of) Memorial Health Facilities
Development Corp. (Central Texas Medical
Center Project); Hospital VRD Series 1990 B
RB (LOC-SunTrust Bank)
2.30%, 11/15/14(b)(c) A-1+ -- 10,200 10,200,000
- ---------------------------------------------------------------------------------------
Hockley (County of) Industrial Development
Corp. (AMOCO Project); VRD Series 1985 PCR
1.80%, 05/01/05(g)(h) A-1+ P-1 10,000 10,000,000
- ---------------------------------------------------------------------------------------
Hockley (County of) Industrial Development
Corp. (AMOCO Project-Standard Oil Co.); VRD
Series 1983 PCR
2.10%, 09/01/05(g)(h) A-1+ Aa1 12,775 12,775,000
- ---------------------------------------------------------------------------------------
Houston (City of) Higher Education Finance
Corp. (Houston Baptist University); Higher
Education Refunding VRD Series 2000 RB
(LOC-JPMorgan Chase Bank)
2.35%, 07/01/20(b)(c)(j) -- -- 3,665 3,665,000
- ---------------------------------------------------------------------------------------
Houston (City of) Independent School District
(Schoolhouse); Limited Tax Series 2004 GO
(CEP-Texas Permanent School Fund)
1.62%, 06/09/05(g)(l) A-1+ VMIG-1 15,000 15,000,000
- ---------------------------------------------------------------------------------------
Houston (City of); Commercial Paper Notes
Series 2003 A GO
1.95%, 04/07/05 A-1+ P-1 26,900 26,900,000
- ---------------------------------------------------------------------------------------
Series 2003 A GO
1.95%, 04/12/05 A-1+ P-1 24,000 24,000,000
- ---------------------------------------------------------------------------------------
Humble (City of) Independent School District;
School Building VRD Limited Tax Series 2003
GO (CEP-Texas Permanent School Fund)
2.28%, 06/15/23(c) A-1+ VMIG-1 13,000 13,000,000
- ---------------------------------------------------------------------------------------
JPMorgan PUTTERs (City of Boerne Independent
School District); VRD Series 2005 752 GO
(Acquired 03/09/05; Cost $2,640,000)
2.32%, 02/01/11(c)(d)(e) A-1+ -- 2,640 2,640,000
- ---------------------------------------------------------------------------------------
JPMorgan PUTTERs (County of Bexar); Limited
Tax VRD Series 2004 530 GO (Acquired
10/28/04; Cost $4,645,000)
2.32%, 06/15/12(c)(d)(e) -- VMIG-1 4,645 4,645,000
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
<Caption>
- ---------------------------------------------------------------------------------------
TEXAS-(CONTINUED)
Merrill Lynch P-Floats (City of Brazosport
Independent School District); Refunding
Unlimited Tax VRD Series 2003 PT-1690 GO
(Acquired 02/20/03; Cost $4,898,000)
2.32%, 08/15/10(c)(d)(e) -- VMIG-1 $ 4,898 $ 4,898,000
- ---------------------------------------------------------------------------------------
Merrill Lynch P-Floats (Harris County
Hospital District); VRD Series 2002 PT-665
RB (Acquired 10/02/02; Cost $5,935,000)
2.32%, 08/15/08(c)(d)(e) A-1+ -- 5,935 5,935,000
- ---------------------------------------------------------------------------------------
Northside Independent School District;
Refunding Unlimited Tax VRD Series 2003 B
GO (CEP- Texas Permanent School Fund)
1.75%, 08/01/05(g)(l) A-1+ VMIG-1 1,870 1,870,000
- ---------------------------------------------------------------------------------------
San Antonio (City of) Water & Sewer System;
Commercial Paper Notes Series 2001 A GO
(Acquired 01/26/05; Cost $29,900,000)
2.00%, 05/17/05(e) A-1+ P-1 29,900 29,900,000
- ---------------------------------------------------------------------------------------
Sherman (City of) Higher Education Finance
Corp. (Austin College Project); Higher
Education VRD Series 1997 RB (LOC-Bank of
America, N.A.)
2.35%, 01/01/18(b)(c) A-1+ -- 12,800 12,800,000
- ---------------------------------------------------------------------------------------
Texas (State of); Series 2004 TRAN
3.00%, 08/31/05 SP-1+ MIG-1 40,000 40,225,139
- ---------------------------------------------------------------------------------------
University of Texas Board of Regents (Revenue
Financing System); Commercial Paper Notes
Series A
2.05%, 05/17/05 A-1+ P-1 7,650 7,650,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (City of Austin); VRD Series
2000 A26 RB (Acquired 11/09/04; Cost
$9,230,000)
2.11%, 11/10/05(d)(e)(g)(l)(n) -- VMIG-1 9,230 9,230,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (Harris County Toll Road);
VRD Series 2003 B16 RB (Acquired 02/19/03;
Cost $3,015,000)
2.35%, 08/15/25(c)(d)(e) -- VMIG-1 3,015 3,015,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (Jefferson County Health
Facilities Development Corp.); VRD Series
2001 A83 RB (Acquired 11/18/03; Cost
$3,565,000)
2.11%, 11/16/05(d)(e)(g)(l)(n) A-1 -- 3,565 3,565,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (Southeast Texas Housing
Finance Corp.); VRD Series 2001 A18 RB
(Acquired 11/18/03; Cost $3,430,000)
2.11%, 11/16/05(d)(e)(g)(l)(n) A-1 -- 3,430 3,430,000
- ---------------------------------------------------------------------------------------
</Table>
F-20
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
TEXAS-(CONTINUED)
Wachovia MERLOTs (University of Texas);
Refunding VRD Series 2003 B14 RB (Acquired
01/29/03; Cost $8,000,000)
2.35%, 08/15/22(c)(d)(e) -- VMIG-1 $ 8,000 $ 8,000,000
=======================================================================================
402,113,038
=======================================================================================
UTAH-2.13%
Merrill Lynch P-Floats (City of Murray
Hospital); VRD Series 2002 PA-1066 RB
(Acquired 10/02/02; Cost $5,995,000)
2.32%, 05/15/22(c)(d)(e) A-1 -- 5,995 5,995,000
- ---------------------------------------------------------------------------------------
Salt Lake (City of) (Gateway Project);
Special Assessment VRD Series 2003
(LOC-Citibank N.A.)
2.30%, 12/01/23(b)(c) A-1+ -- 7,200 7,200,000
- ---------------------------------------------------------------------------------------
Sanpete (County of) School Facilities
(Wasatch Academy); VRD Series 2003 RB (LOC-
U.S. Bank N.A.)
2.33%, 08/01/28(b)(c) A-1+ -- 900 900,000
- ---------------------------------------------------------------------------------------
St. George (City of) (OK Foundation
Projects); Sr. Housing VRD Series 2004 A RB
(CEP-Federal National Mortgage Association)
2.28%, 12/15/29(c) A-1+ -- 30,640 30,640,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (Intermountain Power
Agency); Power Supply VRD Series 2002 A59
RB (Acquired 10/23/02; Cost $6,960,000)
2.35%, 07/01/10(c)(d)(e) -- VMIG-1 6,960 6,960,000
- ---------------------------------------------------------------------------------------
Weber (County of) (IHC Health Service); VRD
Series 2000 C RB
2.30%, 02/15/35(k) A-1+ VMIG-1 10,000 10,000,000
- ---------------------------------------------------------------------------------------
West Jordan (City of) (Broadmoor Village
Apartments LLC Project); Refunding
Multi-Family Housing VRD Series 2004 RB
(CEP- Federal Home Loan Mortgage Corp.)
2.30%, 12/01/34(c) A-1+ -- 9,675 9,675,000
=======================================================================================
71,370,000
=======================================================================================
VERMONT-0.08%
Vermont (State of) Student Assistance Corp.;
Student Loan VRD Series 1985 RB (LOC-State
Street Bank & Trust Co.)
2.05%, 01/01/08(b)(m) -- VMIG-1 2,640 2,640,000
=======================================================================================
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
<Caption>
- ---------------------------------------------------------------------------------------
VIRGINIA-1.05%
Henrico (County of) Economic Development
Authority (Westminster Canterbury);
Residential Care Facilities VRD Series 2003
B RB (LOC-KBC Bank N.V.)
2.29%, 07/01/08(b)(c) -- VMIG-1 $17,100 $ 17,100,000
- ---------------------------------------------------------------------------------------
Lynchburg (City of) Industrial Development
Authority (Lynchburg College); VRD Series
2004 RB (LOC-SunTrust Bank)
2.29%, 12/01/34(b)(c) -- VMIG-1 6,275 6,275,000
- ---------------------------------------------------------------------------------------
Newport News (City of) Redevelopment &
Housing Authority (Springhouse Apartments
Project); Multi-Family Housing VRD Series
2001 RB (CEP-Federal Home Loan Mortgage
Corp.)
2.30%, 09/01/26(c) A-1+ -- 2,000 2,000,000
- ---------------------------------------------------------------------------------------
Norfolk (City of) Redevelopment & Housing
Authority (E2F Student Housing LLC
Project); VRD Series 2005 RB (LOC-Bank of
America, N.A.)
2.30%, 07/01/34(b)(c) -- VMIG-1 7,000 7,000,000
- ---------------------------------------------------------------------------------------
Rockingham (County of) Industrial Development
Authority (Sunnyside Presbyterian Home);
Residential Care Facilities VRD Series 2003
RB (LOC-Branch Banking & Trust Co.)
2.27%, 12/01/33(b)(c) A-1 -- 750 750,000
- ---------------------------------------------------------------------------------------
Suffolk (City of) Redevelopment & Housing
Authority (Oak Springs Apartments);
Multi-Family Housing VRD Series 1999 RB
(CEP-Federal Home Loan Mortgage Corp.)
2.30%, 04/11/05(c) -- VMIG-1 1,900 1,900,000
=======================================================================================
35,025,000
=======================================================================================
WASHINGTON-6.72%
ABN AMRO Munitops Ctfs. Trust (City of
Seattle Municipal Light & Power);
Multi-State Non-AMT VRD Series 2002-12
Ctfs. (Acquired 05/25/04; Cost $9,755,000)
2.33%, 03/01/09(c)(d)(e) -- VMIG-1 9,755 9,755,000
- ---------------------------------------------------------------------------------------
ABN AMRO Munitops Ctfs. Trust (City of
Seattle); Multi-State Non-AMT VRD Limited
Tax Series 2003-7 GO Ctfs. (Acquired
05/13/03; Cost $10,685,000)
2.33%, 07/01/10(c)(d)(e)(j) -- -- 10,685 10,685,000
- ---------------------------------------------------------------------------------------
</Table>
F-21
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
WASHINGTON-(CONTINUED)
ABN AMRO Munitops Ctfs. Trust (King County);
Multi-State Non-AMT VRD Limited Tax Series
2001-1 GO Ctfs. (Acquired 01/04/01; Cost
$10,000,000)
2.33%, 07/01/06(c)(d)(e) -- VMIG-1 $10,000 $ 10,000,000
- ---------------------------------------------------------------------------------------
Bremerton (City of) (Kitsap Regional
Conference Center); VRD Series 2003 RB
(LOC-Bank of America, N.A.)
2.35%, 12/01/28(b)(c)(j) -- -- 2,565 2,565,000
- ---------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (State of Washington
Public Power Supply Systems Project No. 2);
VRD Series 1996-4703 A COP (Acquired
05/02/01; Cost $5,870,000)
2.32%, 07/01/11(c)(d)(e) A-1+ -- 5,870 5,870,000
- ---------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (State of Washington);
VRD Series 1998-4701 A COP (Acquired
07/20/00; Cost $14,400,000)
2.32%, 05/01/18(c)(d)(e) A-1+ -- 14,400 14,400,000
- ---------------------------------------------------------------------------------------
Everett (City of); Limited Tax VRD Series
2001 GO (LOC-Bank of America, N.A.)
2.35%, 12/01/21(b)(c)(j) -- -- 2,600 2,600,000
- ---------------------------------------------------------------------------------------
Everett (City of) Public Facilities District;
Commercial Paper Notes (LOC-Bank of
America, N.A.)
2.08%, 06/09/05(b) A-1+ -- 34,700 34,700,000
- ---------------------------------------------------------------------------------------
Everett (City of) Public Facilities District;
Commercial Paper TRAN (LOC-Bank of America,
N.A.)
2.08%, 06/09/05(b) A-1+ P-1 16,800 16,800,000
- ---------------------------------------------------------------------------------------
Issaquah (City of) Community Properties; VRD
Special Revenue Series 2001 A RB (LOC-Bank
of America, N.A.)
2.30%, 02/15/21(b)(c) -- VMIG-1 10,150 10,150,000
- ---------------------------------------------------------------------------------------
JPMorgan PUTTERs (State of Washington);
Unlimited Tax VRD Series 2004 593 GO
(Acquired 11/18/04; Cost $1,500,000)
2.32%, 07/01/12(c)(d)(e) -- VMIG-1 1,500 1,500,000
- ---------------------------------------------------------------------------------------
King (County of) Economic Enterprise Corp.
(Puget Sound Blood Center Project); VRD
Series 1998 RB (LOC-U.S. Bank N.A.)
2.35%, 04/01/23(b)(c) -- VMIG-1 3,700 3,700,000
- ---------------------------------------------------------------------------------------
King (County of) Water & Sewer; VRD Jr. Lien
Series 2001 B RB(LOC-Landesbank Hessen-
Thuringen Girozentrale)
2.27%, 01/01/32(b)(c) A-1+ VMIG-1 2,000 2,000,000
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
<Caption>
- ---------------------------------------------------------------------------------------
WASHINGTON-(CONTINUED)
Lake Tapps Parkway Properties; Special
Revenue VRD Series 1999 A RB (LOC- U.S.
Bank N.A.)
2.32%, 12/01/19(b)(c) -- VMIG-1 $11,800 $ 11,800,000
- ---------------------------------------------------------------------------------------
Lake Tapps Parkway Properties; Special
Revenue VRD Series 1999 B RB (LOC- U.S.
Bank N.A.)
2.32%, 12/01/19(b)(c) -- VMIG-1 800 800,000
- ---------------------------------------------------------------------------------------
Morgan Stanley & Co. Inc. Trust Floater Ctfs.
(Port of Seattle); VRD Series 2002-739D RB
(Acquired 07/21/04; Cost $5,000,000)
2.32%, 09/01/20(c)(d)(e) A-1 -- 5,000 5,000,000
- ---------------------------------------------------------------------------------------
Pierce (County of) Economic Development Corp.
(Weyerhaeuser Real Estate); Special Revenue
VRD Series 1997 RB (LOC-Bank of America,
N.A.)
2.35%, 01/01/27(b)(c) A-1+ VMIG-1 12,705 12,705,000
- ---------------------------------------------------------------------------------------
Seattle (City of) Housing Authority (Bayview
Manor Project); Low Income Housing
Assistance VRD Series 1994 B RB (LOC- U.S.
Bank N.A.)
2.35%, 05/01/19(b)(c) A-1+ -- 2,340 2,340,000
- ---------------------------------------------------------------------------------------
Seattle (City of) Housing Authority (Pioneer
Human Services Project); Refunding VRD
Series 1995 RB (LOC-U.S. Bank N.A.)
2.35%, 12/01/15(b)(c) A-1+ -- 2,295 2,295,000
- ---------------------------------------------------------------------------------------
Seattle (Port of) Industrial Development
Corp. (Sysco Food Services Project);
Refunding VRD Series 1994 IDR
2.32%, 11/01/25(c) A-1+ VMIG-1 6,208 6,208,000
- ---------------------------------------------------------------------------------------
Snohomish (County of) Housing Authority (Ebey
Arms Centerhouse Project); Refunding
Housing VRD Series 2003 RB (LOC-Bank of
America, N.A.)
2.35%, 12/01/34(b)(c)(j) -- -- 6,245 6,245,000
- ---------------------------------------------------------------------------------------
Vancouver (City of) Housing Authority
(Village Park Apartments Project); Housing
VRD Series 2000 RB (LOC-U.S. Bank N.A.)
2.32%, 11/02/05(b)(c) A-1+ -- 1,340 1,340,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (Central Puget Sound
Regional Transit Authority); Sales Tax &
Motor VRD Series 2001 A46 RB (Acquired
11/12/03; Cost $6,270,000)
2.11%, 11/10/05(d)(e)(g)(l)(n) -- VMIG-1 6,270 6,270,000
- ---------------------------------------------------------------------------------------
</Table>
F-22
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
WASHINGTON-(CONTINUED)
Washington (State of) Economic Development
Finance Authority (Seadrunar Recycling LLC
Project); Economic Development VRD Series
2000 E RB (LOC- U.S. Bank N.A.)
2.35%, 08/01/25(b)(c) A-1+ -- $ 2,735 $ 2,735,000
- ---------------------------------------------------------------------------------------
Washington (State of) Health Care Facilities
Authority (National Healthcare Research &
Education Finance Corp.); Lease VRD Series
2000 RB (LOC-BNP Paribas)
2.30%, 01/01/32(b)(c) -- VMIG-1 6,800 6,800,000
- ---------------------------------------------------------------------------------------
Washington (State of) Higher Education
Facilities Authority (Cornish College Arts
Project); VRD Series 2003 A RB (LOC- Bank
of America, N.A.)
2.35%, 12/01/33(b)(c) -- VMIG-1 5,000 5,000,000
- ---------------------------------------------------------------------------------------
Washington (State of) Housing Finance
Commission (Hearthstone Project);
Non-Profit Revenue Refunding VRD Series
2004 RB (LOC-Bank of America, N.A.)
2.30%, 12/01/29(b)(c) A-1+ -- 12,000 12,000,000
- ---------------------------------------------------------------------------------------
Washington (State of) Housing Finance
Commission (Nikkei Concerns Project);
Non-Profit Housing VRD Series 1994 RB
(LOC-U.S. Bank N.A.)
2.35%, 10/01/19(b)(c) A-1+ -- 3,605 3,605,000
- ---------------------------------------------------------------------------------------
Washington (State of) Housing Finance
Commission (The Evergreen School Project);
Non-Profit VRD Series 2002 RB (LOC-Wells
Fargo Bank N.A.)
2.28%, 07/01/28(b)(c) A-1+ -- 2,660 2,660,000
- ---------------------------------------------------------------------------------------
Washington (State of) Housing Finance
Commission (University Preparatory Academy
Project); Non-Profit VRD Series 2000 RB
(LOC-Bank of America, N.A.)
2.35%, 07/01/30(b)(c) -- VMIG-1 1,250 1,250,000
- ---------------------------------------------------------------------------------------
Washington (State of) Housing Finance
Commission (YMCA of Columbia-Willamette);
Non-Profit Revenue VRD Series 1999 RB
(LOC-Wells Fargo Bank N.A.)
2.33%, 08/01/24(b)(c) A-1+ -- 2,300 2,300,000
- ---------------------------------------------------------------------------------------
Washington (State of) Public Power Supply
System (Nuclear Project No. 3); Refunding
Series 1993 C RB
5.00%, 07/01/05(f) AAA Aaa 3,850 3,878,185
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
<Caption>
- ---------------------------------------------------------------------------------------
WASHINGTON-(CONTINUED)
Washington (State of); Unlimited Tax Series
1995C, AT-8 & R-95B GO
5.90%, 07/01/05(g)(i) NRR NRR $ 5,000 $ 5,047,805
=======================================================================================
225,003,990
=======================================================================================
WEST VIRGINIA-0.19%
Monongalia (County of) Building Community
Hospital (Monongalia General Hospital);
Refunding VRD Series 2002 A RB
(LOC-JPMorgan Chase Bank)
2.29%, 07/01/17(b)(c) A-1+ VMIG-1 645 645,000
- ---------------------------------------------------------------------------------------
West Virginia (State of) Hospital Finance
Authority (VHA Mid-Atlantic/Cap); Hospital
VRD Series 1985 F RB
2.30%, 12/01/25(c)(f) A-1+ -- 5,700 5,700,000
=======================================================================================
6,345,000
=======================================================================================
WISCONSIN-3.39%
Kimberly (City of) (Fox Cities YMCA Project);
VRD Series 2002 RB (LOC-M&I Marshall &
Ilsley Bank)
2.35%, 04/01/32(b)(c) -- VMIG-1 1,940 1,940,000
- ---------------------------------------------------------------------------------------
Menomonee Falls (City of); Refunding Sewer
System Series 2004 RB
2.00%, 05/01/05(f) -- Aaa 1,425 1,425,652
- ---------------------------------------------------------------------------------------
Waukesha (County of); Promissory Notes
Unlimited Tax Series 2004 GO
2.00%, 04/01/05 -- Aaa 1,500 1,500,000
- ---------------------------------------------------------------------------------------
West Allis (City of) (State Fair Park
Exposition Center Inc.); VRD Series 2001 RB
(LOC- U.S. Bank N.A.)
2.35%, 08/01/28(b)(c) -- VMIG-1 2,300 2,300,000
- ---------------------------------------------------------------------------------------
Wind Point (City of) (Johnson Foundation
Project); VRD Series 2000 RB (LOC-Bank of
Montreal)
2.33%, 09/01/35(b)(c) A-1+ -- 4,665 4,665,000
- ---------------------------------------------------------------------------------------
Wisconsin (State of) Health & Educational
Facilities Authority (Eastcastle Place
Inc.); VRD Series 2004 C RB (LOC-ABN AMRO
Bank N.V.)
2.30%, 12/01/34(b)(c) A-1 -- 7,000 7,000,000
- ---------------------------------------------------------------------------------------
Wisconsin (State of) Health & Educational
Facilities Authority (Mequon Jewish
Project); VRD Series 2003 RB (LOC-JPMorgan
Chase Bank)
2.32%, 07/01/28(b)(c) -- VMIG-1 2,150 2,150,000
- ---------------------------------------------------------------------------------------
</Table>
F-23
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
WISCONSIN-(CONTINUED)
Wisconsin (State of) Health & Educational
Facilities Authority (Mercy Health System);
Pooled Loan VRD Series 2003 I RB (LOC-M&I
Marshall & Ilsley Bank)
2.33%, 06/01/23(b)(c) -- VMIG-1 $ 9,570 $ 9,570,000
- ---------------------------------------------------------------------------------------
Wisconsin (State of) Health & Educational
Facilities Authority (Mercy Health System);
VRD Series 2003 C RB (LOC-M&I Marshall &
Ilsley Bank)
2.31%, 08/15/23(b)(c) -- VMIG-1 7,300 7,300,000
- ---------------------------------------------------------------------------------------
Wisconsin (State of) Health & Educational
Facilities Authority (Sinai Samaritan
Medical Center Inc.); VRD Series 1994 A RB
(LOC-M&I Marshall & Ilsley Bank)
2.31%, 09/01/19(b)(c) A-1 -- 5,649 5,649,000
- ---------------------------------------------------------------------------------------
Wisconsin (State of) Health & Educational
Facilities Authority (St. John's Home);
Pooled Loan VRD Series 2003 J RB (LOC-M&I
Marshall & Ilsley Bank)
2.33%, 07/01/23(b)(c) -- VMIG-1 4,250 4,250,000
- ---------------------------------------------------------------------------------------
Wisconsin (State of) Health & Educational
Facilities Authority (St. Luke's Medical
Center); VRD Series 1987 RB (LOC-KBC Bank
N.V.) (Acquired 06/01/04; Cost $28,600,000)
2.30%, 12/01/17(b)(c)(e) A-1 -- 28,600 28,600,000
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
<Caption>
- ---------------------------------------------------------------------------------------
WISCONSIN-(CONTINUED)
Wisconsin (State of) Health & Educational
Facilities Authority (St. Mary's School);
VRD Series 2004 RB (LOC-M&I Marshall &
Ilsley Bank)
2.31%, 08/01/19(b)(c) A-1 -- $ 2,695 $ 2,695,000
- ---------------------------------------------------------------------------------------
Wisconsin (State of) Petroleum Inspection
Fee; Series 2000 A RB
5.75%, 07/01/05(g)(i) AA- Aa3 8,000 8,235,885
- ---------------------------------------------------------------------------------------
Wisconsin (State of) School Districts Cash
Flow Management Program; Series 2004 A-1
COP
3.00%, 09/20/05(p) -- -- 8,000 8,048,916
- ---------------------------------------------------------------------------------------
Wisconsin (State of) School Districts Cash
Flow Management Program; Series 2004 B-1
COP
3.50%, 11/01/05 -- MIG-1 15,000 15,116,273
- ---------------------------------------------------------------------------------------
Wisconsin (State of); Unlimited Tax Series
1995 A GO
6.10%, 05/01/05(g)(i) NRR Aaa 3,000 3,012,436
=======================================================================================
113,458,162
=======================================================================================
TOTAL INVESTMENTS-99.22% (Cost
$3,322,342,840)(q) 3,322,342,840
=======================================================================================
OTHER ASSETS LESS LIABILITIES-0.78% 26,258,985
=======================================================================================
NET ASSETS-100.00% $3,348,601,825
_______________________________________________________________________________________
=======================================================================================
</Table>
Investment Abbreviations:
<Table>
ACES - Automatically Convertible Extendable Security
AMT - Alternative Minimum Tax
BAN - Bond Anticipation Note
CEP - Credit Enhancement Provider
COP - Certificate of Participation
Ctfs. - Certificates
GO - General Obligation Bonds
IDR - Industrial Development Revenue Bonds
Jr. - Junior
LOC - Letter of Credit
MERLOT - Municipal Exempt Receipts Liquidity Optional Tender
NRR - Not Re-Rated
P-Floats - Puttable Floating Option Tax-Exempt Receipt
PCR - Pollution Control Revenue Bonds
PUTTERs - Putable Tax Exempt Receipts
RAN - Revenue Anticipation Notes
RB - Revenue Bonds
RN - Revenue Notes
Sr. - Senior
Sub. - Subordinated
TAN - Tax Anticipation Notes
TRAN - Tax and Revenue Anticipation Notes
VRD - Variable Rate Demand
Wts. - Warrants
</Table>
F-24
Notes to Schedule of Investments:
(a) Ratings assigned by Standard & Poor's Corporation ("S&P") and Moody's
Investors Service, Inc. ("Moody's"), except as indicated in note (j) and (p)
below. NRR indicates a security that is not re-rated subsequent to funding
of an escrow fund (consisting of U.S. Treasury obligations held by a bank
custodian); this funding is pursuant to an advance refunding of this
security. Ratings are not covered by the Report of Independent Registered
Public Accounting Firm.
(b) Principal and interest payments are fully enhanced by a letter of credit
from the bank listed or a predecessor bank, branch or subsidiary.
(c) Demand security; payable upon demand by the Fund at specified time intervals
no greater than thirteen months. Interest rate is redetermined weekly. Rate
shown is the rate in effect on March 31, 2005.
(d) Synthetic municipal instruments; 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.
(e) 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 March 31, 2005 was
$768,868,000, which represented 22.96% of the Fund's Net Assets. Unless
otherwise indicated, these securities are not considered to be illiquid.
(f) Principal and/or 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.
(g) Security has an irrevocable call or mandatory put by the issuer. Maturity
date reflects such call or put.
(h) Demand security; payable upon demand by the Fund at specified time intervals
no greater than thirteen months. Interest rate is redetermined
semi-annually. Rate shown is the rate in effect on March 31, 2005.
(i) Advance refunded; secured by an escrow fund of U.S. Treasury obligations.
(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 rate is redetermined daily. Rate
shown is the rate in effect on March 31, 2005.
(l) Demand security; payable upon demand by the Fund at specified time intervals
no greater than thirteen months. Interest rate is redetermined at
intermittent intervals. Rate shown is the rate in effect on March 31, 2005.
(m) Demand security; payable upon demand by the Fund at specified time intervals
no greater than thirteen months. Interest rate is redetermined monthly. Rate
shown is the rate in effect on March 31, 2005.
(n) Security considered to be illiquid; the portfolio is limited to investing
10% of Net Assets in illiquid securities. The aggregate market value of
these securities considered illiquid at March 31, 2005 was $58,515,000,
which represented 1.75% of the Fund's Net Assets.
(o) Secured by an escrow fund of U.S. Treasury obligations.
(p) Determined by the investment advisor to be of comparable quality to the
rated securities in which the Fund may invest, pursuant to guidelines of
quality adopted by the Board of Trustees and followed by the investment
advisor.
(q) Also represents cost for federal income tax purposes.
See accompanying notes which are an integral part of the financial statements.
F-25
STATEMENT OF ASSETS AND LIABILITIES
March 31, 2005
<Table>
ASSETS:
Investments, at value (cost $3,322,342,840) $3,322,342,840
- ------------------------------------------------------------
Cash 11,284,350
- ------------------------------------------------------------
Receivables for:
Investments sold 6,190,049
- ------------------------------------------------------------
Interest 13,396,750
- ------------------------------------------------------------
Amount due from advisor 94,353
- ------------------------------------------------------------
Investment for trustee deferred compensation
and retirement plans 116,507
- ------------------------------------------------------------
Other assets 148,419
============================================================
Total assets 3,353,573,268
____________________________________________________________
============================================================
LIABILITIES:
Payables for:
Dividends 4,412,045
- ------------------------------------------------------------
Trustee deferred compensation and
retirement plans 231,330
- ------------------------------------------------------------
Accrued distribution fees 132,821
- ------------------------------------------------------------
Accrued trustees' fees 9,908
- ------------------------------------------------------------
Accrued transfer agent fees 75,398
- ------------------------------------------------------------
Accrued operating expenses 109,941
============================================================
Total liabilities 4,971,443
============================================================
Net assets applicable to shares outstanding $3,348,601,825
____________________________________________________________
============================================================
NET ASSETS CONSIST OF:
Shares of beneficial interest $3,348,663,731
- ------------------------------------------------------------
Undistributed net realized gain (loss) from
investment securities (61,906)
============================================================
$3,348,601,825
____________________________________________________________
============================================================
NET ASSETS:
Institutional Class $2,117,055,426
____________________________________________________________
============================================================
Private Investment Class $ 196,616,507
____________________________________________________________
============================================================
Personal Investment Class $ 10,877,052
____________________________________________________________
============================================================
Cash Management Class $ 725,123,738
____________________________________________________________
============================================================
Reserve Class $ 9,308,226
____________________________________________________________
============================================================
Resource Class $ 289,620,876
____________________________________________________________
============================================================
SHARES OUTSTANDING, $0.001 PAR VALUE PER
SHARE, UNLIMITED NUMBER OF SHARES
AUTHORIZED:
Institutional Class 2,117,040,310
____________________________________________________________
============================================================
Private Investment Class 196,606,167
____________________________________________________________
============================================================
Personal Investment Class 10,874,255
____________________________________________________________
============================================================
Cash Management Class 725,129,583
____________________________________________________________
============================================================
Reserve Class 9,306,389
____________________________________________________________
============================================================
Resource Class 289,623,534
____________________________________________________________
============================================================
Net asset value, offering and redemption
price per share for each class $ 1.00
____________________________________________________________
============================================================
</Table>
See accompanying notes which are an integral part of the financial statements.
F-26
STATEMENT OF OPERATIONS
For the year ended March 31, 2005
<Table>
INVESTMENT INCOME:
Interest $45,234,430
=========================================================================
EXPENSES:
Advisory fees 6,427,161
- -------------------------------------------------------------------------
Administrative services fees 593,616
- -------------------------------------------------------------------------
Custodian fees 116,420
- -------------------------------------------------------------------------
Distribution fees:
Private Investment Class 896,739
- -------------------------------------------------------------------------
Personal Investment Class 78,707
- -------------------------------------------------------------------------
Cash Management Class 682,153
- -------------------------------------------------------------------------
Reserve Class 103,030
- -------------------------------------------------------------------------
Resource Class 509,985
- -------------------------------------------------------------------------
Transfer agent fees 505,749
- -------------------------------------------------------------------------
Trustees' fees and retirement benefits 94,630
- -------------------------------------------------------------------------
Other 650,568
=========================================================================
Total expenses 10,658,758
=========================================================================
Less: Fees waived and expenses reimbursed (2,284,421)
=========================================================================
Net expenses 8,374,337
=========================================================================
Net investment income 36,860,093
=========================================================================
Net realized gain (loss) from investment securities (60,974)
=========================================================================
Net increase in net assets resulting from operations $36,799,119
_________________________________________________________________________
=========================================================================
</Table>
See accompanying notes which are an integral part of the financial statements.
F-27
STATEMENT OF CHANGES IN NET ASSETS
For the years ended March 31, 2005 and 2004
<Table>
<Caption>
2005 2004
- ----------------------------------------------------------------------------------------------
OPERATIONS:
Net investment income $ 36,860,093 $ 22,690,885
- ----------------------------------------------------------------------------------------------
Net realized gain (loss) from investment securities (60,974) 40,841
==============================================================================================
Net increase in net assets resulting from operations 36,799,119 22,731,726
==============================================================================================
Distributions to shareholders from net investment income:
Institutional Class (24,315,215) (14,405,472)
- ----------------------------------------------------------------------------------------------
Private Investment Class (1,826,828) (1,230,193)
- ----------------------------------------------------------------------------------------------
Personal Investment Class (70,609) (37,490)
- ----------------------------------------------------------------------------------------------
Cash Management Class (7,900,652) (5,040,826)
- ----------------------------------------------------------------------------------------------
Reserve Class (39,173) (8,425)
- ----------------------------------------------------------------------------------------------
Resource Class (2,707,616) (1,968,479)
==============================================================================================
Decrease in net assets resulting from distributions (36,860,093) (22,690,885)
==============================================================================================
Share transactions-net:
Institutional Class 163,325,063 632,519,818
- ----------------------------------------------------------------------------------------------
Private Investment Class 46,220,760 (77,436,378)
- ----------------------------------------------------------------------------------------------
Personal Investment Class 483,638 (6,598,054)
- ----------------------------------------------------------------------------------------------
Cash Management Class (43,002,612) 150,447,508
- ----------------------------------------------------------------------------------------------
Reserve Class (4,721,188) 1,376,091
- ----------------------------------------------------------------------------------------------
Resource Class (9,579,676) 39,025,099
==============================================================================================
Net increase in net assets resulting from share
transactions 152,725,985 739,334,084
==============================================================================================
Net increase in net assets 152,665,011 739,374,925
==============================================================================================
NET ASSETS:
Beginning of year 3,195,936,814 2,456,561,889
==============================================================================================
End of year (including undistributed net investment income
of $0 and $0, respectively) $3,348,601,825 $3,195,936,814
______________________________________________________________________________________________
==============================================================================================
</Table>
See accompanying notes which are an integral part of the financial statements.
F-28
NOTES TO FINANCIAL STATEMENTS
March 31, 2005
NOTE 1--SIGNIFICANT ACCOUNTING POLICIES
Tax-Free Investments Trust (the "Trust") is registered under the Investment
Company Act of 1940, as amended (the "1940 Act"), as a diversified, open-end
management investment company. The Trust is organized as a Delaware statutory
trust consisting of one portfolio, the Tax-Free Cash Reserve Portfolio (the
"Fund"). The Fund currently offers multiple classes of shares. Matters affecting
each class are voted on exclusively by the shareholders of each class.
The Fund's investment objective is to provide as high a level of tax-exempt
income as is consistent with the preservation of capital and maintenance of
liquidity. Each company listed in the Schedule of Investments is organized in
the United States of America unless otherwise noted.
Under the Trust's organizational documents, each Trustee, officer, employee
or other agent of the Trust (including the Trust's investment manager) is
indemnified against certain liabilities that may arise out of performance of
their duties to the Fund. Additionally, in the normal course of business, the
Fund enters into contracts that contain a variety of indemnification clauses.
The Fund's maximum exposure under these arrangements is unknown as this would
involve future claims that may be made against the Fund that have not yet
occurred. However, the Fund has not had prior claims or losses pursuant to these
contracts.
The preparation of financial statements in conformity with accounting
principles generally accepted in the United States of America requires
management to make estimates and assumptions that affect the reported amounts of
assets and liabilities at the date of the financial statements and the reported
amounts of revenues and expenses during the reporting period. Actual results
could differ from those estimates. The following is a summary of the significant
accounting policies followed by the Fund in the preparation of its financial
statements.
A. SECURITY VALUATIONS -- The Fund's securities are valued on the basis of
amortized cost which approximates market value as permitted by Rule 2a-7
under 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.
Brokerage commissions and mark ups are considered transaction costs and
are recorded as an increase to the cost basis of securities purchased
and/or a reduction of proceeds on a sale of securities. Such transaction
costs are included in the determination of realized gain (loss) from
investment securities reported in the Statement of Operations and the
Statement of Changes in Net Assets and the realized net gains (losses) on
securities per share in the Financial Highlights. Transaction costs are
included in the calculation of the Fund's net asset value and, accordingly,
they reduce the Fund's total returns. These transaction costs are not
considered operating expenses and are not reflected in net investment
income reported in the Statement of Operations and Statement of Changes in
Net Assets, or the net investment income per share and ratios of expenses
and net investment income reported in the Financial Highlights, nor are
they limited by any expense limitation arrangements between the Fund and
the advisor.
The Fund allocates realized capital gains and losses to a class based on
the relative net assets of each class. The Fund allocates income to a class
based on the relative value of the settled shares of each class.
C. DISTRIBUTIONS -- Distributions from income are declared daily and paid
monthly. Distributions from net realized capital gain, if any, are
generally paid annually and recorded on ex-dividend date. The Fund may
elect to use a portion of the proceeds from redemptions as distributions
for federal income tax purposes.
D. FEDERAL INCOME TAXES -- The Fund intends to comply with the requirements of
Subchapter M of the Internal Revenue Code necessary to qualify as a
regulated investment company and, as such, will not be subject to federal
income taxes on otherwise taxable income (including net realized capital
gain) which is distributed to shareholders. Therefore, no provision for
federal income taxes is recorded in the financial statements.
In addition, the Fund intends to invest in securities to allow it to
qualify to pay shareholders "exempt interest dividends", as defined in the
Internal Revenue Code of 1986, as amended.
E. EXPENSES -- Fees provided for under the Rule 12b-1 plan of a particular
class of the Fund and which are directly attributable to that class are
charged to the operations of such class. All other expenses are allocated
among the classes based on relative net assets.
NOTE 2--ADVISORY FEES AND OTHER FEES PAID TO AFFILIATES
The Trust has entered into a master investment advisory agreement with A I M
Advisors, Inc. ("AIM"). Under the terms of the investment advisory agreement,
the Fund pays an advisory fee to AIM at the annual rate of 0.25% of the first
$500 million of the Fund's average daily net assets plus 0.20% of the Fund's
average daily net assets in excess of $500 million. AIM has voluntarily agreed
to waive advisory fees and/or reimburse expenses to the extent necessary to
limit total annual fund operating expenses (excluding certain items discussed
below) to 0.22% of the Fund's average daily net assets. In determining the
advisor's obligation to waive advisory fees and/or reimburse expenses, the
following expenses are not taken into account, and could cause the total annual
fund operating expenses to exceed the limit stated above: (i) Rule 12b-1 plan
fees, if any; (ii) interest; (iii) taxes; (iv) extraordinary items (these are
expenses that are not anticipated to arise from the Fund's day-to-day
operations), or items designated as such by the Fund's Board of Trustees; (v)
expenses related to a merger or reorganization, as approved by the Fund's Board
of Trustees; (vi) expenses that the Fund has incurred but did not actually pay
because of an expense offset arrangement; (vii) trustees' fees; and (viii)
federal registration fees. Currently, in addition to the expense
F-29
reimbursement arrangement with AMVESCAP PLC ("AMVESCAP") described more fully
below, the only expense offset arrangements from which the Fund may benefit are
in the form of credits that the Fund receives from banks where the Fund or its
transfer agent has deposit accounts in which it holds uninvested cash. Those
credits are used to pay certain expenses incurred by the Fund. Voluntary fee
waivers or reimbursements may be modified or discontinued at any time upon
consultation with the Board of Trustees without further notice to investors.
For the year ended March 31, 2005, AIM waived fees of $1,559,355.
For the year ended March 31, 2005, at the request of the Trustees of the
Trust, AMVESCAP agreed to reimburse $1,679 of expenses incurred by the Fund in
connection with market timing matters in the AIM Funds, including legal, audit,
shareholder reporting, communications and trustee expenses. These expenses along
with the related expense reimbursement, are included in the Statement of
Operations.
The Trust, pursuant to a master administrative services agreement with AIM,
has agreed to pay AIM for certain administrative costs incurred in providing
accounting services to the Fund. Pursuant to such agreement, for the year ended
March 31, 2005, AIM was paid $593,616.
The Trust, pursuant to a transfer agency and service agreement, has agreed
to pay AIM Investment Services, Inc. ("AISI") a fee for providing transfer
agency and shareholder services to the Fund. During the year ended March 31,
2005, AISI retained $459,758.
Under the terms of a master distribution agreement between Fund Management
Company ("FMC") and the Trust, FMC acts as the exclusive distributor of the
Fund's shares. The Trust has adopted a master distribution plan pursuant to Rule
12b-1 under the 1940 Act with respect to the Fund's Private Investment Class,
Personal Investment Class, Cash Management Class, Reserve Class and Resource
Class (the "Plan"). The Plan provides that the Private Investment Class, the
Personal Investment Class, the Cash Management Class, the Reserve Class and the
Resource Class pay up to the maximum annual rate of 0.50%, 0.75%, 0.10%, 1.00%
and 0.20%, respectively, of the average daily net assets attributable to such
class. Of this amount, up to 0.25% of the average daily net assets of each class
may be paid to furnish continuing personal shareholder services to customers who
purchase and own shares of such classes. Any amounts not paid as a service fee
under such Plan would constitute an asset-based sales charge. NASD Rules also
impose a cap on the total amount of sales charges, including asset-based sales
charges, that may be paid by any class of shares of the Fund. Currently, FMC has
elected to waive a portion of its compensation payable by the Fund such that
compensation paid pursuant to the Plan with respect to the Private Investment
Class, the Personal Investment Class, the Cash Management Class, the Reserve
Class and the Resource Class equals the maximum annual rate of 0.25%, 0.55%,
0.08%, 0.87% and 0.16%, respectively, of the average daily net assets
attributable to such class. Further, FMC voluntarily waived additional Rule
12b-1 plan fees for the Reserve Class during the year in order to increase the
yield. Waivers may be modified or discontinued at any time. Pursuant to the
Plan, for the year ended March 31, 2005, the Private Investment Class, the
Personal Investment Class, the Cash Management Class, the Reserve Class and the
Resource Class paid $448,369, $57,719, $545,722 $87,429 and $407,988,
respectively, after FMC waived Plan fees of $448,370, $20,988, $136,431, $15,601
and $101,997, respectively.
Certain officers and trustees of the Trust are officers and directors of
AIM, FMC and/or AISI.
NOTE 3--TRUSTEES' FEES
Trustees' fees represent remuneration paid to each Trustee of the Trust who is
not an "interested person" of AIM. Trustees have the option to defer
compensation payable by the Trust. Those Trustees who defer compensation have
the option to select various AIM Funds in which their deferral accounts shall be
deemed to be invested.
Current Trustees are eligible to participate in a retirement plan that
provides for benefits to be paid upon retirement to Trustees over a period of
time based on the number of years of service. The Fund may have certain former
Trustees that also participate in a retirement plan and receive benefits under
such plan.
Obligations under the deferred compensation and retirement plans represent
unsecured claims against the general assets of the Fund.
During the year ended March 31, 2005, the Fund paid legal fees of $13,558
for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the
Independent Trustees. A member of that firm is a Trustee of the Trust.
NOTE 4--BORROWINGS
Pursuant to an exemptive order from the SEC, the Fund may participate in an
interfund lending facility that AIM has established for temporary borrowings by
the AIM Funds. An interfund loan will be made under this facility only if the
loan rate (an 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. A loan will be secured by collateral if the
Fund's aggregate borrowings from all sources exceeds 10% of the Fund's total
assets. To the extent that the loan is required to be secured by collateral, the
collateral is marked to market daily to ensure that the market value is at least
102% of the outstanding principal value of the loan. The Fund did not borrow or
lend under the facility during the year ended March 31, 2005.
Additionally, the Fund is permitted to temporarily carry a negative or
overdrawn balance in its account with The Bank of New York, the custodian bank.
To compensate the custodian bank for such overdrafts, the overdrawn Fund may
either (i) leave funds in the account so the custodian can be compensated by
earning the additional interest; or (ii) compensate by paying the custodian
bank. In either case, the custodian bank will be compensated at an amount equal
to the Federal Funds rate plus 100 basis points.
F-30
NOTE 5--DISTRIBUTIONS TO SHAREHOLDERS AND TAX COMPONENTS OF NET ASSETS
DISTRIBUTIONS TO SHAREHOLDERS:
The tax character of distributions paid during the years ended March 31, 2005
and 2004 was as follows:
<Table>
<Caption>
2005 2004
- ----------------------------------------------------------------------------------------
Distributions paid from ordinary income--Tax Exempt $36,860,093 $22,690,885
________________________________________________________________________________________
========================================================================================
</Table>
TAX COMPONENTS OF NET ASSETS:
As of March 31, 2005, the components of net assets on a tax basis were as
follows:
<Table>
<Caption>
2005
- ----------------------------------------------------------------------------
Undistributed ordinary income--Tax Exempt $ 185,341
- ----------------------------------------------------------------------------
Temporary book/tax differences (185,341)
- ----------------------------------------------------------------------------
Capital loss carryforward (54,712)
- ----------------------------------------------------------------------------
Post-October capital loss deferral (7,194)
- ----------------------------------------------------------------------------
Shares of beneficial interest 3,348,663,731
============================================================================
Total net assets $3,348,601,825
____________________________________________________________________________
============================================================================
</Table>
The temporary book/tax differences are a result of timing differences
between book and tax recognition of income and/or expenses. The Fund's temporary
book/tax differences are the result of the trustee deferral of compensation and
retirement plan expenses.
Capital loss carryforward is calculated and reported as of a specific date.
Results of transactions and other activity after that date may affect the amount
of capital loss carryforward actually available for the Fund to utilize. The
ability to utilize capital loss carryforward in the future may be limited under
the Internal Revenue Code and related regulations based on the results of future
transactions.
The Fund has a capital loss carryforward as of March 31, 2005 which expires
as follows:
<Table>
<Caption>
CAPITAL LOSS
EXPIRATION CARRYFORWARD*
- -----------------------------------------------------------------------------
March 31, 2011 $ 933
- -----------------------------------------------------------------------------
March 31, 2013 53,779
=============================================================================
Total capital loss carryforward $54,712
_____________________________________________________________________________
=============================================================================
</Table>
* Capital loss carryforward as of the date listed above is reduced for
limitations, if any, to the extent required by the Internal Revenue Code.
F-31
NOTE 6--SHARE INFORMATION
The Fund currently offers six different classes of shares: Institutional Class,
Private Investment Class, Personal Investment Class, Cash Management Class,
Reserve Class and Resource Class.
<Table>
<Caption>
CHANGES IN SHARES OUTSTANDING(a)
- ---------------------------------------------------------------------------------------------------------------------------------
YEAR ENDED MARCH 31,
--------------------------------------------------------------------------
2005 2004
----------------------------------- -----------------------------------
SHARES AMOUNT SHARES AMOUNT
- ---------------------------------------------------------------------------------------------------------------------------------
Sold:
Institutional Class 19,309,850,248 $ 19,309,850,248 13,446,683,719 $ 13,446,683,719
- ---------------------------------------------------------------------------------------------------------------------------------
Private Investment Class 442,201,609 442,201,609 489,285,624 489,285,624
- ---------------------------------------------------------------------------------------------------------------------------------
Personal Investment Class 31,788,215 31,788,215 26,756,133 26,756,133
- ---------------------------------------------------------------------------------------------------------------------------------
Cash Management Class 5,913,083,202 5,913,083,202 5,641,820,633 5,641,820,633
- ---------------------------------------------------------------------------------------------------------------------------------
Reserve Class 138,866,847 138,866,847 156,764,612 156,764,612
- ---------------------------------------------------------------------------------------------------------------------------------
Resource Class 1,776,129,695 1,776,129,695 1,508,376,051 1,508,376,051
=================================================================================================================================
Issued as reinvestment of dividends:
Institutional Class 13,098,927 13,098,927 7,301,226 7,301,226
- ---------------------------------------------------------------------------------------------------------------------------------
Private Investment Class 1,185,307 1,185,307 737,747 737,747
- ---------------------------------------------------------------------------------------------------------------------------------
Personal Investment Class 9,987 9,987 4,054 4,054
- ---------------------------------------------------------------------------------------------------------------------------------
Cash Management Class 5,725,182 5,725,182 4,115,815 4,115,815
- ---------------------------------------------------------------------------------------------------------------------------------
Reserve Class 32,528 32,528 8,921 8,921
- ---------------------------------------------------------------------------------------------------------------------------------
Resource Class 2,383,423 2,383,423 1,860,224 1,860,224
=================================================================================================================================
Reacquired:
Institutional Class (19,159,624,112) (19,159,624,112) (12,821,465,127) (12,821,465,127)
- ---------------------------------------------------------------------------------------------------------------------------------
Private Investment Class (397,166,156) (397,166,156) (567,459,749) (567,459,749)
- ---------------------------------------------------------------------------------------------------------------------------------
Personal Investment Class (31,314,564) (31,314,564) (33,358,241) (33,358,241)
- ---------------------------------------------------------------------------------------------------------------------------------
Cash Management Class (5,961,810,996) (5,961,810,996) (5,495,488,940) (5,495,488,940)
- ---------------------------------------------------------------------------------------------------------------------------------
Reserve Class (143,620,563) (143,620,563) (155,397,442) (155,397,442)
- ---------------------------------------------------------------------------------------------------------------------------------
Resource Class (1,788,092,794) (1,788,092,794) (1,471,211,176) (1,471,211,176)
=================================================================================================================================
152,725,985 $ 152,725,985 739,334,084 $ 739,334,084
_________________________________________________________________________________________________________________________________
=================================================================================================================================
</Table>
(a) There are three entities that are each record owners of more than 5% of
the outstanding shares of the Fund and in the aggregate they own 57% of
the outstanding shares of the Fund. AIM Distributors has an agreement
with these entities to sell Fund shares. The Fund, AIM and/or AIM
affiliates may make payments to these entities, which are considered to
be related to the Fund, for providing services to the Fund, AIM and/or
AIM affiliates including but not limited to services such as, securities
brokerage, distribution, third party record keeping and account
servicing. The Trust has no knowledge as to whether all or any portion
of the shares owned of record by these entities are also owned
beneficially.
F-32
NOTE 7--FINANCIAL HIGHLIGHTS
The following schedule presents financial highlights for a share of the Fund
outstanding throughout the periods indicated.
<Table>
<Caption>
PRIVATE INVESTMENT CLASS
-----------------------------------------------------------
YEAR ENDED MARCH 31,
-----------------------------------------------------------
2005 2004 2003 2002 2001
- -------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
- -------------------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income 0.01 0.01 0.01 0.02 0.04
=========================================================================================================================
Less distributions from net investment income (0.01) (0.01) (0.01) (0.02) (0.04)
=========================================================================================================================
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
_________________________________________________________________________________________________________________________
=========================================================================================================================
Total return(a) 0.99% 0.59% 0.97% 1.91% 3.69%
_________________________________________________________________________________________________________________________
=========================================================================================================================
Ratios/supplemental data:
Net assets, end of period (000s omitted) $196,617 $150,399 $227,832 $179,095 $141,946
_________________________________________________________________________________________________________________________
=========================================================================================================================
Ratio of expenses to average net assets:
With fee waivers and/or expense reimbursements 0.47%(b) 0.47% 0.47% 0.47% 0.45%
- -------------------------------------------------------------------------------------------------------------------------
Without fee waivers and/or expense reimbursements 0.77%(b) 0.77% 0.77% 0.78% 0.79%
_________________________________________________________________________________________________________________________
=========================================================================================================================
Ratio of net investment income to average net assets 0.99%(b) 0.58% 0.95% 1.76% 3.60%
_________________________________________________________________________________________________________________________
=========================================================================================================================
</Table>
(a) Includes adjustments in accordance with accounting principles generally
accepted in the United States of America.
(b) Ratios are based on average daily net assets of $179,347,860.
NOTE 8--CHANGE IN INDEPENDENT REGISTERED ACCOUNTING FIRM.
On March 23, 2005, the Audit Committee (the "Audit Committee") of the Board of
Trustees of the Trust appointed PricewaterhouseCoopers LLP ("PWC") as the
independent registered public accounting firm of the Fund for the fiscal year
ending March 31, 2006. For the prior reporting period, Ernst & Young ("E&Y") was
the Fund's independent registered public accounting firm. The change in the
Fund's independent auditors was part of an effort by the Audit Committee to
increase operational efficiencies by reducing the number of different audit
firms engaged by the Audit Committee to audit AIM Funds with March 31 fiscal
year ends. The Fund is in the process of obtaining a formal resignation from E&Y
as the independent registered public accounting firm of the Fund.
E&Y's report on the financial statements of the Fund for the past two years
did not contain an adverse or disclaimer of opinion, and was not qualified or
modified as to uncertainty, audit scope or accounting principles. During the
period E&Y was engaged, there were no disagreements with E&Y on any matter of
accounting principles or practices, financial statement disclosure, or auditing
scope or procedure which, if not resolved to E&Y's satisfaction, would have
caused it to make reference to that matter in connection with its report.
F-33
NOTE 9--LEGAL PROCEEDINGS
Terms used in the Legal Proceedings Note are defined terms solely for the
purpose of this note.
SETTLED ENFORCEMENT ACTIONS AND INVESTIGATIONS RELATED TO MARKET TIMING
On October 8, 2004, INVESCO Funds Group, Inc. ("IFG") (the former investment
advisor to certain AIM Funds) and A I M Advisors, Inc. ("AIM") (the Fund's
investment advisor) reached final settlements with certain regulators, including
without limitation the Securities and Exchange Commission ("SEC"), the New York
Attorney General ("NYAG") and the Colorado Attorney General ("COAG"), to resolve
civil enforcement actions and investigations related to market timing activity
and related issues in the AIM Funds, including those formerly advised by IFG.
These regulators alleged, in substance, that IFG and AIM failed to disclose in
the prospectuses for the AIM Funds that they advised and to the independent
directors/trustees of such Funds that they had entered into certain arrangements
permitting market timing of such Funds, thereby breaching their fiduciary duties
to such Funds. As a result of the foregoing, the regulators alleged that IFG and
AIM breached various Federal and state securities, business and consumer
protection laws. On the same date, A I M Distributors, Inc. ("ADI") (the
distributor of the retail AIM Funds) reached a final settlement with the SEC to
resolve an investigation relating to market timing activity and related issues
in the AIM Funds. The SEC also alleged that ADI violated various Federal
securities laws. The SEC also has settled related market timing enforcement
actions brought against certain former officers and employees of IFG.
Under the terms of the settlements, IFG agreed to pay a total of $325 million,
of which $110 million is civil penalties. Of this $325 million total payment,
half has been paid and the remaining half will be paid on or before December 31,
2005. AIM and ADI agreed to pay a total of $50 million, of which $30 million is
civil penalties, all of which has been paid. The entire $325 million IFG
settlement fund will be made available for distribution to the shareholders of
those AIM Funds that IFG formerly advised that were harmed by market timing
activity, and the entire $50 million settlement fund by AIM and ADI will be made
available for distribution to the shareholders of those AIM Funds advised by AIM
that were harmed by market timing activity, all as to be determined by an
independent distribution consultant. The IFG and AIM settlement funds may
increase as a result of contributions from third parties who reach final
settlements with the SEC or other regulators to resolve allegations of market
timing and/or late trading. The settlement funds will be distributed in
accordance with a methodology to be determined by the independent distribution
consultant, in consultation with AIM and the independent trustees of the AIM
Funds and acceptable to the staff of the SEC. Under the settlements with the
NYAG and COAG, AIM has agreed to reduce management fees on certain equity and
balanced AIM Funds by $15 million per year for the next five years, based upon
effective fee rates and assets under management as of July 1, 2004, not to
increase certain management fees and to provide more information to investors
regarding fees.
Under the terms of the settlements, AIM is undertaking certain governance and
compliance reforms, including maintaining an internal controls committee and
retaining an independent compliance consultant and a corporate ombudsman. Also,
commencing in 2007 and at least once every other year thereafter, AIM will
undergo a compliance review by an independent third party. In addition, under
the terms of the settlements, AIM has undertaken to cause the AIM Funds to
operate in accordance with certain governance policies and practices, including
retaining a full-time independent senior officer whose duties include monitoring
compliance and managing the process by which proposed management fees to be
charged the AIM Funds are negotiated. Also, commencing in 2008 and not less than
every fifth calendar year thereafter, the AIM Funds will hold shareholder
meetings at which their Boards of Trustees will be elected.
At the request of the trustees of the AIM Funds, AMVESCAP PLC ("AMVESCAP"),
the parent company of IFG and AIM, has agreed to reimburse expenses incurred by
such Funds related to market timing matters.
The SEC has also settled market timing enforcement actions against Raymond R.
Cunningham (the former president and chief executive officer of IFG and a former
member of the board of directors of the AIM Funds formerly advised by IFG),
Timothy J. Miller (the former chief investment officer and a former portfolio
manager for IFG), Thomas A. Kolbe (the former national sales manager of IFG) and
Michael D. Legoski (a former assistant vice president in IFG's sales
department). As part of these settlements, the SEC ordered these individuals to
pay restitution and civil penalties in various amounts and prohibited them from
associating with, or serving as an officer or director of, an investment
advisor, broker, dealer and/or investment company, as applicable, for certain
periods of time.
The payments made in connection with the above-referenced settlements by IFG,
AIM and ADI will total approximately $375 million (not including AIM's agreement
to reduce management fees on certain equity and balanced AIM Funds by $15
million per year for the next five years, based upon effective fee rates and
assets under management as of July 1, 2004). The manner in which the settlement
payments will be distributed is unknown at the present time and will be
determined by an independent distribution consultant appointed under the
settlement agreements. Therefore, management of AIM and the Fund are unable at
the present time to estimate the impact, if any, that the distribution of the
settlement payments may have on the Fund or whether such distribution will have
an impact on the Fund's financial statements in the future.
At the present time, management of AIM and the Fund are unable to estimate the
impact, if any, that the outcome of the Regulatory Inquiries and Pending
Litigation described below may have on AIM, ADI or the Fund.
REGULATORY INQUIRIES AND PENDING LITIGATION
The mutual fund industry as a whole is currently subject to regulatory
inquiries and litigation related to a wide range of issues. These issues
include, among others, market timing activity, late trading, fair value pricing,
excessive or improper advisory and/or distribution fees, mutual fund sales
practices, including but not limited to revenue sharing and directed-brokerage
arrangements, investments in securities of other registered investment
companies, contractual plans, issues related to Section 529 college savings
plans, procedures for locating lost security holders and participation in class
action settlements.
As described more fully below, IFG and AIM are the subject of a number of
ongoing regulatory inquiries and civil lawsuits related to one or more of the
issues currently being scrutinized by various Federal and state regulators,
including but not limited to those issues described above. Additional regulatory
actions and/or civil lawsuits related to the above or other issues may be filed
against the AIM Funds, IFG, AIM and/or related entities and
F-34
NOTE 9--LEGAL PROCEEDINGS (CONTINUED)
individuals in the future. Additional regulatory inquiries related to the above
or other issues also may be received by the AIM Funds, IFG, AIM and/or related
entities and individuals in the future.
Ongoing Regulatory Inquiries Concerning IFG and AIM
IFG, certain related entities, certain of their current and former officers
and/or certain of the AIM Funds formerly advised by IFG have received regulatory
inquiries in the form of subpoenas or other oral or written requests for
information and/or documents related to one or more of the following issues,
some of which concern one or more such Funds: market timing activity, late
trading, fair value pricing, excessive or improper advisory and/or distribution
fees, mutual fund sales practices, including revenue sharing and
directed-brokerage arrangements, and investments in securities of other
registered investment companies. These regulators include the SEC, the NASD,
Inc. ("NASD"), the Florida Department of Financial Services, the Attorney
General of the State of West Virginia, the West Virginia Securities Commission
and the Bureau of Securities of the State of New Jersey. IFG and certain of
these other parties also have received more limited inquiries from the United
States Department of Labor ("DOL") and the United States Attorney's Office for
the Southern District of New York, some of which concern one or more of the AIM
Funds formerly advised by IFG. IFG is providing full cooperation with respect to
these inquiries.
AIM, certain related entities, certain of their current and former officers
and/or certain of the AIM Funds have received regulatory inquiries in the form
of subpoenas or other oral or written requests for information and/or documents
related to one or more of the following issues, some of which concern one or
more AIM Funds: market timing activity, late trading, fair value pricing,
excessive or improper advisory and/or distribution fees, mutual fund sales
practices, including revenue sharing and directed-brokerage arrangements,
investments in securities of other registered investment companies, contractual
plans, issues related to Section 529 college savings plans and procedures for
locating lost securityholders. These regulators include the SEC, the NASD, the
Department of Banking for the State of Connecticut, the Attorney General of the
State of West Virginia, the West Virginia Securities Commission and the Bureau
of Securities of the State of New Jersey. AIM and certain of these other parties
also have received more limited inquiries from the SEC, the NASD, the DOL, the
Internal Revenue Service, the United States Attorney's Office for the Southern
District of New York, the United States Attorney's Office for the Central
District of California, the United States Attorney's Office for the District of
Massachusetts, the Massachusetts Securities Division, the U.S. Postal Inspection
Service and the Commodity Futures Trading Commission, some of which concern one
or more AIM Funds. AIM is providing full cooperation with respect to these
inquiries.
Pending Regulatory Civil Action Alleging Market Timing
On April 12, 2005, the Attorney General of the State of West Virginia ("WVAG")
filed civil proceedings against AIM, IFG and ADI, as well as numerous unrelated
mutual fund complexes and financial institutions. None of the AIM Funds has been
named as a defendant in these proceedings. The WVAG complaint, filed in the
Circuit Court of Marshall County, West Virginia [Civil Action No. 05-C-81],
alleges, in substance, that AIM, IFG and ADI engaged in unfair competition
and/or unfair or deceptive trade practices by failing to disclose in the
prospectuses for the AIM Funds, including those formerly advised by IFG, that
they had entered into certain arrangements permitting market timing of such
Funds. As a result of the foregoing, the WVAG alleges violations of W. Va. Code
sec. 46A-1-101, et seq. (the West Virginia Consumer Credit and Protection Act).
The WVAG complaint is seeking injunctive relief; civil monetary penalties; a
writ of quo warranto against the defendants; pre-judgment and post-judgment
interest; costs and expenses, including counsel fees; and other relief.
If AIM is unsuccessful in its defense of the WVAG proceedings, it could be
barred from serving as an investment adviser for any investment company
registered under the Investment Company Act of 1940, as amended (a "registered
investment company"). Such results could affect the ability of AIM or any other
investment advisor directly or indirectly owned by AMVESCAP, from serving as an
investment advisor to any registered investment company, including your Fund.
Your Fund has been informed by AIM that, if these results occur, AIM will seek
exemptive relief from the SEC to permit it to continue to serve as your Fund's
investment advisor. There is no assurance that such exemptive relief will be
granted.
Private Civil Actions Alleging Market Timing
Multiple civil lawsuits, including purported class action and shareholder
derivative suits, have been filed against various parties (including, depending
on the lawsuit, certain AIM Funds, IFG, AIM, AIM Management, AMVESCAP, certain
related entities, certain of their current and former officers and/or certain
unrelated third parties) making allegations that are similar in many respects to
those in the settled regulatory actions brought by the SEC, the NYAG and the
COAG concerning market timing activity in the AIM Funds. These lawsuits allege a
variety of theories of recovery, including but not limited to: (i) violation of
various provisions of the Federal and state securities laws; (ii) violation of
various provisions of ERISA; (iii) breach of fiduciary duty; and/or (iv) breach
of contract. These lawsuits were initiated in both Federal and state courts and
seek such remedies as compensatory damages; restitution; injunctive relief;
disgorgement of management fees; imposition of a constructive trust; removal of
certain directors and/or employees; various corrective measures under ERISA;
rescission of certain Funds' advisory agreements; interest; and attorneys' and
experts' fees.
All lawsuits based on allegations of market timing, late trading, and related
issues have been transferred to the United States District Court for the
District of Maryland (the "MDL Court") for consolidated or coordinated pre-trial
proceedings. Pursuant to an Order of the MDL Court, plaintiffs consolidated
their claims for pre-trial purposes into three amended complaints against
various AIM- and IFG-related parties: (i) a Consolidated Amended Class Action
Complaint purportedly brought on behalf of shareholders of the AIM Funds; (ii) a
Consolidated Amended Fund Derivative Complaint purportedly brought on behalf of
the AIM Funds and fund registrants; and (iii) an Amended Class Action Complaint
for Violations of the Employee Retirement Income Securities Act ("ERISA")
purportedly brought on behalf of participants in AMVESCAP's 401(k) plan. The
plaintiffs in two of the underlying lawsuits continue to seek remand of their
lawsuit to state court.
F-35
NOTE 9--LEGAL PROCEEDINGS (CONTINUED)
Private Civil Actions Alleging Improper Use of Fair Value Pricing
Multiple civil class action lawsuits have been filed against various parties
(including, depending on the lawsuit, certain AIM Funds, IFG and/or AIM)
alleging that certain AIM Funds inadequately employed fair value pricing. These
lawsuits allege a variety of theories of recovery, including but not limited to:
(i) violations of various provisions of the Federal securities laws; (ii) common
law breach of duty; and (iii) common law negligence and gross negligence. These
lawsuits have been filed in both Federal and state courts and seek such remedies
as compensatory and punitive damages; interest; and attorneys' fees and costs.
Based on a recent court decision, the state court action has been removed to
Federal court.
Private Civil Actions Alleging Excessive Advisory and/or Distribution Fees
Multiple civil lawsuits, including purported class action and shareholder
derivative suits, have been filed against various parties (including, depending
on the lawsuit, IFG, AIM, INVESCO Institutional (N.A.), Inc. ("IINA"), ADI
and/or INVESCO Distributors, Inc. ("INVESCO Distributors")) alleging that the
defendants charged excessive advisory and/or distribution fees and failed to
pass on to shareholders the perceived savings generated by economies of scale.
Certain of these lawsuits also allege that the defendants adopted unlawful
distribution plans. These lawsuits allege a variety of theories of recovery,
including but not limited to: (i) violation of various provisions of the Federal
securities laws; (ii) breach of fiduciary duty; and/or (iii) breach of contract.
These lawsuits have been filed in Federal courts and seek such remedies as
damages; injunctive relief; rescission of certain Funds' advisory agreements and
distribution plans; interest; prospective relief in the form of reduced fees;
and attorneys' and experts' fees. All of these lawsuits have been transferred to
the United States District Court for the Southern District of Texas, Houston
Division and subsequently consolidated for pre-trial purposes into one lawsuit.
Private Civil Actions Alleging Improper Charging of Distribution Fees on Limited
Offering Funds or Share Classes
Multiple civil lawsuits, including shareholder derivative suits, have been
filed against various parties (including, depending on the lawsuit, IFG, AIM,
ADI and/or certain of the trustees of the AIM Funds) alleging that the
defendants breached their fiduciary duties by charging distribution fees while
funds and/or specific share classes were closed generally to new investors
and/or while other share classes of the same fund were not charged the same
distribution fees. These lawsuits allege a variety of theories of recovery,
including but not limited to: (i) violation of various provisions of the Federal
securities laws; and (ii) breach of fiduciary duty. These lawsuits have been
filed in Federal courts and seek such remedies as damages; injunctive relief;
and attorneys' and experts' fees.
Private Civil Actions Alleging Improper Mutual Fund Sales Practices and
Directed-Brokerage Arrangements
Multiple civil lawsuits, including purported class action and shareholder
derivative suits, have been filed against various parties (including, depending
on the lawsuit, AIM Management, IFG, AIM, AIM Investment Services, Inc. ("AIS")
and/or certain of the trustees of the AIM Funds) alleging that the defendants
improperly used the assets of the AIM Funds to pay brokers to aggressively
promote the sale of the AIM Funds over other mutual funds and that the
defendants concealed such payments from investors by disguising them as
brokerage commissions. These lawsuits allege a variety of theories of recovery,
including but not limited to: (i) violation of various provisions of the Federal
securities laws; (ii) breach of fiduciary duty; and (iii) aiding and abetting a
breach of fiduciary duty. These lawsuits have been filed in Federal courts and
seek such remedies as compensatory and punitive damages; rescission of certain
Funds' advisory agreements and distribution plans and recovery of all fees paid;
an accounting of all fund-related fees, commissions and soft dollar payments;
restitution of all unlawfully or discriminatorily obtained fees and charges; and
attorneys' and experts' fees. These actions have been consolidated for pre-trial
purposes.
Private Civil Action Alleging Failure to Ensure Participation in Class Action
Settlements
A civil lawsuit, purporting to be a class action lawsuit, has been filed
against AIM, IINA, A I M Capital Management, Inc. and the trustees of the AIM
Funds alleging that the defendants breached their fiduciary duties by failing to
ensure that the AIM Funds participated in class action settlements in which the
AIM Funds were eligible to participate. This lawsuit alleges as theories of
recovery: (i) violation of various provisions of the Federal securities laws;
(ii) common law breach of fiduciary duty; and (iii) common law negligence. This
lawsuit has been filed in Federal court and seeks such remedies as compensatory
and punitive damages; forfeiture of all commissions and fees paid by the class
of plaintiffs; and costs and attorneys' fees.
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
* * * * * *
As a result of the matters discussed above, investors in the AIM Funds might
react by redeeming their investments. This might require the Funds to sell
investments to provide for sufficient liquidity and could also have an adverse
effect on the investment performance of the Funds.
F-36
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Shareholders of Tax-Free Cash Reserve Portfolio
and the Board of Trustees of Tax-Free Investments Trust:
We have audited the accompanying statement of assets and liabilities of Tax-Free
Cash Reserve Portfolio (a portfolio of Tax-Free Investments Trust), including
the schedule of investments, as of March 31, 2005, and the related statement of
operations for the year then ended, the statements of changes in net assets for
each of the two years in the period then ended, and the financial highlights for
each of the five years in the period then ended. These financial statements and
financial highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. We were
not engaged to perform an audit of the Fund's internal control over financial
reporting. Our audits included consideration of internal control over financial
reporting as a basis for designing audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Fund's internal control over financial reporting.
Accordingly, we express no such opinion. An audit also includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements and financial highlights, assessing the accounting principles used
and significant estimates made by management, and evaluating the overall
financial statement presentation. Our procedures included confirmation of
securities owned as of March 31, 2005 by correspondence with the custodian and
brokers or by other appropriate auditing procedures where replies from brokers
were not received. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Tax-Free Cash Reserve Portfolio as of March 31, 2005, the results of its
operations for the year then ended, the changes in its net assets for each of
the two years in the period then ended, and the financial highlights for each of
the five years in the period then ended, in conformity with U.S. generally
accepted accounting principles.
Houston, Texas -s- ERNST & YOUNG LLP
May 18, 2005
F-37
TRUSTEES AND OFFICERS
As of March 31, 2005
The address of each trustee and officer of Tax-Free Investments Trust (the
"Trust"), is 11 Greenway Plaza, Suite 100, Houston, Texas 77046. Each trustee
oversees 114 portfolios in the AIM Funds complex. The trustees serve for the
life of the Trust, subject to their earlier death, incapacitation, resignation,
retirement or removal as more specifically provided in the Trust's
organizational documents. Column two below includes length of time served with
predecessor entities, if any.
<Table>
<Caption>
TRUSTEE AND/
NAME, YEAR OF BIRTH AND OR OFFICER PRINCIPAL OCCUPATION(S) OTHER DIRECTORSHIP(S)
POSITION(S) HELD WITH THE TRUST SINCE DURING PAST 5 YEARS HELD BY TRUSTEE
- --------------------------------------------------------------------------------------------------------------------
INTERESTED PERSONS
- --------------------------------------------------------------------------------------------------------------------
Robert H. Graham(1) -- 1946 1977 Director and Chairman, A I M None
Trustee, Vice Chair and Management Group Inc.
President (financial services holding
company); Director and Vice
Chairman, AMVESCAP PLC and
Chairman, AMVESCAP PLC -- AIM
Division (parent of AIM and a
global investment management
firm)
Formerly: President and Chief
Executive Officer, A I M
Management Group Inc.;
Director, Chairman and
President, A I M Advisors,
Inc. (registered investment
advisor); Director and
Chairman, A I M Capital
Management, Inc. (registered
investment advisor), A I M
Distributors, Inc. (registered
broker dealer), AIM Investment
Services, Inc., (registered
transfer agent), and Fund
Management Company (registered
broker dealer); and Chief
Executive Officer, AMVESCAP
PLC -- Managed Products
- --------------------------------------------------------------------------------------------------------------------
Mark H. Williamson(2) -- 1951 2003 Director, President and Chief None
Trustee and Executive Vice Executive Officer, A I M
President Management Group Inc.;
Director, Chairman and
President, A I M Advisors,
Inc.; Director, A I M Capital
Management, Inc. and A I M
Distributors, Inc.; Director
and Chairman, AIM Investment
Services, Inc., Fund
Management Company and INVESCO
Distributors, Inc. (registered
broker dealer); and Chief
Executive Officer, AMVESCAP
PLC -- AIM Division (parent of
AIM and a global investment
management firm)
Formerly: Director, Chairman,
President and Chief Executive
Officer, INVESCO Funds Group,
Inc.; President and Chief
Executive Officer, INVESCO
Distributors, Inc.; Chief
Executive Officer, AMVESCAP
PLC -- Managed Products
- --------------------------------------------------------------------------------------------------------------------
INDEPENDENT TRUSTEES
- --------------------------------------------------------------------------------------------------------------------
Bruce L. Crockett(3) -- 1944 1992 Chairman, Crockett Technology ACE Limited (insurance
Trustee and Chair Associates (technology company); and Captaris,
consulting company) Inc. (unified messaging
provider)
- --------------------------------------------------------------------------------------------------------------------
Bob R. Baker -- 1936 2003 Retired None
Trustee
- --------------------------------------------------------------------------------------------------------------------
Frank S. Bayley -- 1939 2001 Retired Badgley Funds, Inc.
Trustee (registered investment
Formerly: Partner, law firm of company)
Baker & McKenzie
- --------------------------------------------------------------------------------------------------------------------
James T. Bunch -- 1942 2003 Co-President and Founder, None
Trustee Green, Manning & Bunch Ltd.,
(investment banking firm); and
Director, Policy Studies, Inc.
and Van Gilder Insurance
Corporation
- --------------------------------------------------------------------------------------------------------------------
Albert R. Dowden -- 1941 2000 Director of a number of public None
Trustee and private business
corporations, including the
Boss Group Ltd. (private
investment and management);
Cortland Trust, Inc.
(Chairman) (registered
investment company); Annuity
and Life Re (Holdings), Ltd.
(insurance company); and
CompuDyne Corporation
(provider of products and
services to the public
security market)
Formerly: Director, President
and Chief Executive Officer,
Volvo Group North America,
Inc.; Senior Vice President,
AB Volvo; and director of
various affiliated Volvo
companies
- --------------------------------------------------------------------------------------------------------------------
Edward K. Dunn, Jr. -- 1935 1998 Retired None
Trustee
Formerly: Chairman, Mercantile
Mortgage Corp.; President and
Chief Operating Officer,
Mercantile-Safe Deposit &
Trust Co.; and President,
Mercantile Bankshares Corp.
- --------------------------------------------------------------------------------------------------------------------
Jack M. Fields -- 1952 1997 Chief Executive Officer, Administaff, and
Trustee Twenty First Century Group, Discovery Global
Inc. (government affairs Education Fund
company) (owner) Dos Angelos (non-profit)
Ranch, L.P.
Formerly: Chief Executive
Officer, Texana Timber LP
(sustainable forestry company)
- --------------------------------------------------------------------------------------------------------------------
Carl Frischling -- 1937 1992 Partner, law firm of Kramer Cortland Trust, Inc.
Trustee Levin Naftalis and Frankel LLP (registered investment
company)
- --------------------------------------------------------------------------------------------------------------------
Gerald J. Lewis -- 1933 2003 Chairman, Lawsuit Resolution General Chemical Group,
Trustee Services (San Diego, Inc.
California)
- --------------------------------------------------------------------------------------------------------------------
Prema Mathai-Davis -- 1950 1998 Formerly: Chief Executive None
Trustee Officer, YWCA of the USA
- --------------------------------------------------------------------------------------------------------------------
</Table>
(1) Mr. Graham is considered an interested person of the Trust because he is a
director of AMVESCAP PLC, parent of the advisor to the Trust. Prior to
October 4, 2004, Mr. Graham served as Chairman of the Board of Trustees of
the Trust.
(2) Mr. Williamson is considered an interested person of the Trust because he is
an officer and a director of the advisor to, and a director of the principal
underwriter of, the Trust.
(3) Mr. Crockett was elected Chair of the Board of Trustees of the Trust
effective October 4, 2004.
TRUSTEES AND OFFICERS (continued)
As of March 31, 2005
The address of each trustee and officer of Tax-Free Investments Trust (the
"Trust"), is 11 Greenway Plaza, Suite 100, Houston, Texas 77046. Each trustee
oversees 114 portfolios in the AIM Funds complex. The trustees serve for the
life of the Trust, subject to their earlier death, incapacitation, resignation,
retirement or removal as more specifically provided in the Trust's
organizational documents. Column two below includes length of time served with
predecessor entities, if any.
<Table>
<Caption>
TRUSTEE AND/
NAME, YEAR OF BIRTH AND OR OFFICER PRINCIPAL OCCUPATION(S) OTHER DIRECTORSHIP(S)
POSITION(S) HELD WITH THE TRUST SINCE DURING PAST 5 YEARS HELD BY TRUSTEE
- -------------------------------------------------------------------------------------------------------------------------------
Lewis F. Pennock -- 1942 1992 Partner, law firm of Pennock & Cooper None
Trustee
- -------------------------------------------------------------------------------------------------------------------------------
Ruth H. Quigley -- 1935 2001 Retired None
Trustee
- -------------------------------------------------------------------------------------------------------------------------------
Larry Soll -- 1942 2003 Retired None
Trustee
- -------------------------------------------------------------------------------------------------------------------------------
OTHER OFFICERS
- -------------------------------------------------------------------------------------------------------------------------------
Lisa O. Brinkley(4) -- 1959 2004 Senior Vice President, A I M Management N/A
Senior Vice President and Chief Group Inc.; Senior Vice President and
Compliance Officer Chief Compliance Officer, A I M
Advisors, Inc.; Vice President and Chief
Compliance Officer, A I M Capital
Management, Inc. and Vice President,
A I M Distributors, Inc., AIM Investment
Services, Inc. and Fund Management
Company
Formerly: Senior Vice President and
Compliance Director, Delaware
Investments Family of Funds and Chief
Compliance Officer, A I M Distributors,
Inc.
- -------------------------------------------------------------------------------------------------------------------------------
Russell C. Burk(5) -- 1958 2005 Formerly: Director of Compliance and N/A
Senior Vice President Assistant General Counsel, ICON
Advisers, Inc.; Financial Consultant,
Merrill Lynch; General Counsel and
Director of Compliance, ALPS Mutual
Funds, Inc.
- -------------------------------------------------------------------------------------------------------------------------------
Kevin M. Carome -- 1956 2003 Director, Senior Vice President, N/A
Senior Vice President, Secretary and General Counsel, A I M
Secretary and Chief Legal Management Group Inc. and A I M
Officer Advisors, Inc.; Director and Vice
President, INVESCO Distributors, Inc.;
Vice President, A I M Capital
Management, Inc., and AIM Investment
Services, Inc.; Director, Vice President
and General Counsel, Fund Management
Company; and Senior Vice President,
A I M Distributors, Inc.
Formerly: Senior Vice President and
General Counsel, Liberty Financial
Companies, Inc.; and Senior Vice
President and General Counsel, Liberty
Funds Group, LLC; and Vice President,
A I M Distributors, Inc.
- -------------------------------------------------------------------------------------------------------------------------------
Stuart W. Coco -- 1955 1992 Managing Director and Director of Money N/A
Vice President Market Research and Special Projects,
A I M Capital Management, Inc.; and Vice
President, A I M Advisors, Inc.
- -------------------------------------------------------------------------------------------------------------------------------
Sidney M. Dilgren -- 1961 2004 Vice President and Fund Treasurer, A I M N/A
Vice President and Treasurer Advisors, Inc.
Formerly: Senior Vice President, AIM
Investment Services, Inc.; and Vice
President, A I M Distributors, Inc.
- -------------------------------------------------------------------------------------------------------------------------------
J. Philip Ferguson(6) -- 1945 2005 Senior Vice President and Chief N/A
Vice President Investment Officer, A I M Advisors Inc.;
Director, Chairman, Chief Executive
Officer, President and Chief Investment
Officer, A I M Capital Management, Inc.;
Executive Vice President, A I M
Management Group Inc.
Formerly: Senior Vice President, AIM
Private Asset Management, Inc.; Chief
Equity Officer, and Senior Investment
Officer, A I M Capital Management, Inc.;
and Managing Partner, Beutel, Goodman
Capital Management
- -------------------------------------------------------------------------------------------------------------------------------
Karen Dunn Kelley -- 1960 1992 Director of Cash Management, Managing N/A
Vice President Director and Chief Cash Management
Officer, A I M Capital Management, Inc;
Director and President, Fund Management
Company; and Vice President, A I M
Advisors, Inc.
- -------------------------------------------------------------------------------------------------------------------------------
</Table>
(4) Ms. Brinkley was elected Senior Vice President and Chief Compliance Officer
of the Trust effective September 20, 2004.
(5) Mr. Burk was elected Senior Vice President of the Trust effective February
15, 2005.
(6) Mr. Ferguson was elected Vice President of the Trust effective February 24,
2005.
The Statement of Additional Information of the Trust includes additional
information about the Fund's Trustees and is available upon request, without
charge, by calling 1.800.959.4246.
<Table>
OFFICE OF THE FUND INVESTMENT ADVISOR DISTRIBUTOR AUDITORS
11 Greenway Plaza A I M Advisors, Inc. Fund Management Company Ernst & Young LLP
Suite 100 11 Greenway Plaza 11 Greenway Plaza 5 Houston Center
Houston, TX 77046-1173 Suite 100 Suite 100 1401 McKinney, Suite
Houston, TX 77046-1173 Houston, TX 77046-1173 1200
Houston, TX 77010-4035
COUNSEL TO THE
COUNSEL TO THE FUND INDEPENDENT TRUSTEES TRANSFER AGENT CUSTODIAN
Ballard Spahr Kramer, Levin, Naftalis AIM Investment The Bank of New York
Andrews & Ingersoll, LLP & Frankel LLP Services, Inc. 2 Hanson Place
1735 Market Street 1177 Avenue of the P.O. Box 4739 Brooklyn, NY 11217-1431
Philadelphia, PA 19103-7599 Americas Houston, TX 77210-4739
New York, NY 10036-2714
</Table>
REQUIRED FEDERAL INCOME TAX INFORMATION (UNAUDITED)
We are required by Internal Revenue Code to advise you within 60 days of the
Fund's fiscal year end as to the federal tax status of dividends paid by the
Fund during its fiscal year ended March 31, 2005.
AIM Tax-Free Cash Reserve Portfolio Institutional Class paid ordinary dividends
in the amount of $0.0123 during its tax year ended March 31, 2005. Of this
amount, 100% qualified as tax-exempt interest dividends for federal income tax
purposes.
For the purpose of preparing your annual federal income tax returns, however,
you should report the amounts as reflected on the Statement of Tax-Exempt
Income.
The Fund provides a complete list of its holdings four times in each fiscal
year, at the quarter-ends. For the second and fourth quarters, the lists appear
in the Fund's semiannual and annual reports to shareholders. For the first and
third quarters, the Fund files the lists with the Securities and Exchange
Commission (SEC) on Form N-Q. Shareholders can look up the Fund's Forms N-Q on
the SEC's Web site at sec.gov. Copies of the Fund's Forms N-Q may be reviewed
and copied at the SEC's Public Reference Room at 450 Fifth Street, N.W.,
Washington, D.C. 20549-0102. You can obtain information on the operation of the
Public Reference Room, including information about duplicating fee charges, by
calling 1-202-942-8090 or by electronic request at the following e-mail address:
publicinfo@sec.gov. The SEC file numbers for the Fund are 811-2731 and 2-58286.
The Fund's most recent portfolio holdings, as filed on Form N-Q, are also
available at AIMinvestments.com.
A description of the policies and procedures that the Fund uses to determine how
to vote proxies relating to portfolio securities is available without charge,
upon request, from our Client Services department at 800-659-1005 or on the AIM
Web site, AIMinvestments.com. On the home page, scroll down and click on the AIM
Funds Proxy Policy. The information is also available on the SEC Web site,
sec.gov.
Information regarding how the Fund voted proxies related to its portfolio
securities during the 12 months ended June 30, 2004, is available at our Web
site. Go to AIMinvestments.com, access the About Us tab, click on Required
Notices and then click on Proxy Voting Activity. Next, select the Fund from the
drop-down menu. The information is also available on the SEC Web site, sec.gov.
[YOUR GOALS. OUR SOLUTIONS.]
--REGISTERED TRADEMARK--
[AIM INVESTMENTS LOGO]
--Registered Trademark--
AIMinvestments.com TFIT-AR-2 Fund Management Company
TAX-FREE CASH RESERVE PORTFOLIO
Reserve Class
TAX-FREE INVESTMENTS TRUST (TFIT)
March 31, 2005
Annual Report
[COVER IMAGE]
[YOUR GOALS. OUR SOLUTIONS.]
--REGISTERED TRADEMARK--
[1980-2005 25TH [AIM INVESTMENTS LOGO]
CASH MANAGEMENT LOGO] --REGISTERED TRADEMARK--
TAX-FREE CASH RESERVE PORTFOLIO
DEAR SHAREHOLDER:
[GRAHAM This is the annual report on the performance of the Reserve
PHOTO] Class of the Tax-Free Cash Reserve Portfolio of Tax-Free
Investments Trust, a money market fund investing in
short-term municipal bonds of the highest credit ratings.
The report is for the fiscal year ended March 31, 2005.
ROBERT H. GRAHAM
Tax-Free Cash Reserve Portfolio seeks to provide as high
a level of tax-exempt income as is consistent with
preservation of capital and maintenance of liquidity. The
Portfolio invests in high quality, short-term municipal
obligations, seeking to provide income exempt from federal
taxation. The Portfolio structure is driven to some extent
by the supply and availability of municipal securities.
Liquidity is managed with daily and weekly variable-rate
[WILLIAMSON demand notes.
PHOTO]
Through a combination of short-term cash management
vehicles and selective use of a longer maturity schedule for
higher yields, the Portfolio continued to provide attractive
returns. The Portfolio maintained a relatively short
MARK H. WILLIAMSON maturity structure to take advantage of any sudden rise in
market yields.
The Portfolio continued 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 Ratings. Portfolio 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.
Below, you will find a table summarizing the Portfolio's
return during the reporting period along with weighted
average maturity and net asset value:
<Table>
<Caption>
================================= ===============================
YIELD WEIGHTED AVERAGE MATURITY
7 DAY SEC YIELD* MONTHLY YIELD* RANGE END OF FISCAL YEAR
1.02% 0.85% 25-42 Days 30 Days
================================= ===============================
======================================================================
NET ASSETS AT CLOSE OF FISCAL YEAR
$9.3 MILLION
*The seven-day SEC yield and monthly yield represent annualized
results for the period, net of fees and expenses, and exclude any
realized capital gains or losses. Yields will fluctuate. Had the
advisor and distributor not waived fees and/or reimbursed expenses,
seven-day and monthly yields would have been lower.
======================================================================
</Table>
MARKET CONDITIONS AFFECTING MONEY MARKET FUNDS
Economic activity expanded at a moderate pace throughout the fiscal year,
according to Beige Book economic commentaries published by the Federal Reserve
(the Fed) that cover the period.
o Gross domestic product (GDP), generally considered the broadest measure of
economic activity, grew at an annualized rate of 4.4% during 2004.
o The S&P 500--Registered Trademark-- Index returned 6.69% during the fiscal
year.
o The Fed reported a moderate increase in consumer spending, although auto
sales were lackluster. Travel and tourism and most service industries
reported improvements, and manufacturing activity also expanded. Housing
and residential construction was robust, according to the March Beige
Book.
In an effort to forestall the inflation that may accompany robust economic
growth, the Fed increased the federal funds target rate seven times in 0.25%
increments during the reporting period, bringing the rate to 2.75% on March 22,
2005. (The federal funds target rate is a benchmark interest rate used by banks
for overnight loans to one another.) Despite the increases, the Fed said
monetary policy remained accommodative.
TAX-FREE CASH RESERVE PORTFOLIO
These rate increases helped boost yields on short-term investments such as
money market funds. The impact of changes in the federal funds target rate is
generally felt in money market funds approximately two weeks after the
announcement of an increase or decrease, but the change in yields may not be
equivalent to the change in the federal funds target rate. Management made no
changes to strategy as a result of federal funds target rate increases.
IN CONCLUSION
We are pleased to send you this report on your investment. AIM is committed to
the primary goals of safety, liquidity and yield in institutional fund
management. We are also dedicated to customer service. Should you have comments
or questions about this report, please contact one of our representatives at
800-659-1005.
Sincerely,
<Table>
/s/ ROBERT H. GRAHAM /s/ MARK H. WILLIAMSON
Robert H. Graham Mark H. Williamson
Vice Chair & President, Tax-Free Investments Trust Chairman & President, A I M Advisors, Inc.
</Table>
May 20, 2005
The views and opinions expressed in this letter are those of A I M Advisors,
Inc. These views and opinions are subject to change at any time based on factors
such as market and economic conditions. These views and opinions may not be
relied upon as investment advice or recommendations, or as an offer for a
particular security. Statements of fact are from sources considered reliable,
but A I M Advisors, Inc. makes no representation or warranty as to their
completeness or accuracy. Although historical performance is no guarantee of
future results, these insights may help you understand our investment management
philosophy.
<Table>
<Caption>
===================================
PORTFOLIO COMPOSITION BY MATURITY The number of days to maturity of each holding is determined in
accordance with the provisions of Rule 2a-7 under the Investment
IN DAYS, AS OF 3/31/05 Company Act of 1940.
1-7 78.6%
8-14 0.9
15-60 4.8
61-120 7.3
121-180 3.1
181-240 3.7 The unmanaged Standard & Poor's Composite Index of 500 Stocks (the
241+ 1.6 S&P 500 Index) is an index of common stocks frequently used as a
general measure of U.S. stock market performance.
===================================
</Table>
THIS REPORT MUST BE ACCOMPANIED OR PRECEDED BY A CURRENTLY EFFECTIVE FUND
PROSPECTUS, WHICH CONTAINS MORE COMPLETE INFORMATION, INCLUDING FEES AND
EXPENSES. READ IT CAREFULLY BEFORE YOU INVEST OR SEND MONEY.
PERFORMANCE QUOTED IS PAST PERFORMANCE AND CANNOT GUARANTEE COMPARABLE FUTURE
RESULTS; CURRENT PERFORMANCE MAY BE LOWER OR HIGHER. VISIT AIMINVESTMENTS.COM
FOR THE MOST RECENT MONTH-END PERFORMANCE.
AN INVESTMENT IN THE FUND IS NOT INSURED OR GUARANTEED BY THE FEDERAL DEPOSIT
INSURANCE CORPORATION OR ANY OTHER GOVERNMENT AGENCY AND IS NOT A DEPOSIT OR
OTHER OBLIGATION OF, OR GUARANTEED BY, A DEPOSITORY INSTITUTION. ALTHOUGH THE
FUND SEEKS TO PRESERVE THE VALUE OF YOUR INVESTMENT AT $1.00 PER SHARE, IT IS
POSSIBLE TO LOSE MONEY BY INVESTING IN THE FUND.
TAX-FREE CASH RESERVE PORTFOLIO
CALCULATING YOUR ONGOING FUND EXPENSES
<Table>
EXAMPLE expenses that you paid over the period. and expenses may not be used to estimate
Simply divide your account value by the actual ending account balance or
As a shareholder of the Fund, you incur $1,000 (for example, an $8,600 account expenses you paid for the period. You may
ongoing costs, including management fees value divided by $1,000 = 8.6), then use this information to compare the
and other Fund expenses. This example is multiply the result by the number in the ongoing costs of investing in the Fund
intended to help you understand your table under the heading entitled "Actual and other funds. To do so, compare this
ongoing costs (in dollars) of investing Expenses Paid During Period" to estimate 5% hypothetical example with the 5%
in the Fund and to compare these costs the expenses you paid on your account hypothetical examples that appear in the
with ongoing costs of investing in other during this period. shareholder reports of the other funds.
mutual funds. The example is based on an
investment of $1,000 invested at the HYPOTHETICAL EXAMPLE FOR COMPARISON Please note that the expenses shown
beginning of the period and held for the PURPOSES in the table are meant to highlight your
entire period October 1, 2004, through ongoing costs only. Therefore, the
March 31, 2005. The table below also provides information hypothetical information is useful in
about hypothetical account values and comparing ongoing costs only, and will
ACTUAL EXPENSES hypothetical expenses based on the Fund's not help you determine the relative total
actual expense ratio and an assumed rate costs of owning different funds.
The table below provides information of return of 5% per year before expenses,
about actual account values and actual which is not the Fund's actual return.
expenses. You may use the information in The hypothetical account values
this table, together with the amount you
invested, to estimate the
====================================================================================================================================
ACTUAL HYPOTHETICAL
(5% ANNUAL RETURN BEFORE EXPENSES)
BEGINNING ACCOUNT ENDING ACCOUNT EXPENSES ENDING ACCOUNT EXPENSES
SHARE VALUE VALUE PAID DURING VALUE PAID DURING
CLASS (10/01/04) (3/31/05)(1) PERIOD(2) (3/31/05) PERIOD(2)
Reserve $1,000.00 $1,003.30 $5.44 $1,019.50 $5.49
(1) The actual ending account value is based on the actual total return of the Fund for the period October 1, 2004, to March 31,
2005, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund's expense ratio
and a hypothetical annual return of 5% before expenses. The actual total cumulative return at net asset value for the period October
1, 2004, to March 31, 2005, was 0.33% for Reserve Class shares.
(2) Expenses are equal to the Fund's annualized expense ratio (1.09% for Reserve Class shares) multiplied by the average account
value over the period, multiplied by 182/365 (to reflect the one-half year period).
====================================================================================================================================
</Table>
SCHEDULE OF INVESTMENTS
March 31, 2005
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
MUNICIPAL NOTES-99.22%
ALABAMA-1.68%
Alabama (State of) Public School & College
Authority; Capital Improvement Series 1999
D RB
5.25%, 08/01/05 AA Aa3 $ 1,425 $ 1,440,302
- ---------------------------------------------------------------------------------------
Birmingham (City of) Public Educational
Building Authority Student Housing (CHF UAB
II LLC); VRD Series 2005 A RB (LOC-Regions
Bank Alabama)
2.30%, 07/01/37(b)(c) -- VMIG-1 6,000 6,000,000
- ---------------------------------------------------------------------------------------
Birmingham (City of) Public Parks &
Recreation Board (Children's Zoo Project);
VRD Series 2002 RB (LOC-AmSouth Bank)
2.40%, 05/01/07(b)(c) -- VMIG-1 1,725 1,725,000
- ---------------------------------------------------------------------------------------
Birmingham (City of) Public Parks &
Recreation Board (YMCA Project); Refunding
VRD Series 1996 RB (LOC-AmSouth Bank)
2.36%, 06/01/16(b)(c) -- VMIG-1 1,770 1,770,000
- ---------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Birmingham
Waterworks & Sewer Board); VRD Series
2002-6009 Class A COP (Acquired 11/05/02;
Cost $4,100,000)
2.32%, 01/01/43(c)(d)(e) A-1+ -- 4,100 4,100,000
- ---------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Birmingham
Waterworks & Sewer Board); VRD Series
2003-0007 Class A COP (Acquired 04/16/03;
Cost $7,370,000)
2.32%, 01/01/43(c)(d)(e) A-1+ -- 7,370 7,370,000
- ---------------------------------------------------------------------------------------
Elmore (County of) Ridge Improvement
District; Special Assessment VRD Series
2000 RB (LOC-AmSouth Bank)
2.30%, 10/01/25(b)(c) -- VMIG-1 13,335 13,335,000
- ---------------------------------------------------------------------------------------
Homewood (City of) Medical Clinic Board
(Lakeshore Foundation Project); Lease
Revenue VRD Series 2000 RB (LOC-AmSouth
Bank)
2.38%, 11/01/24(b)(c) A-1 -- 7,255 7,255,000
- ---------------------------------------------------------------------------------------
Mobile (City of); Port City Medical Clinic
Board (Infirmary Health); VRD Series 1998 B
RB
2.30%, 02/01/25(c)(f) A-1 VMIG-1 5,000 5,000,000
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
<Caption>
ALABAMA-(CONTINUED)
Montgomery (City of) Industrial Development
Board (Industrial Partners Project);
Refunding VRD Series 1989 IDR (LOC-SunTrust
Bank)
2.30%, 01/01/07(b)(c) -- Aa2 $ 430 $ 430,000
- ---------------------------------------------------------------------------------------
Oxford (City of); Unlimited Tax VRD Series
2003 GO Wts. (LOC- Branch Banking & Trust
Co.)
2.30%, 07/01/15(b)(c) -- VMIG-1 5,180 5,180,000
- ---------------------------------------------------------------------------------------
Tuscaloosa (City of) Educational Building
Authority (Stillman College Project);
Refunding Capital Improvement VRD Series
2002 A RB (LOC-AmSouth Bank)
2.40%, 10/01/23(b)(c) -- VMIG-1 2,519 2,519,000
=======================================================================================
56,124,302
=======================================================================================
ALASKA-0.04%
Alaska (State of) Industrial Development &
Export Authority (Safeway Inc. Projects);
Refunding VRD Series 1991 IDR (LOC-Deutsche
Bank A.G.)
2.15%, 06/01/05(b)(g)(h) A-1 -- 1,340 1,340,000
=======================================================================================
ARIZONA-0.83%
Apache (County of) Industrial Development
Authority (Tucson Electric Power Co.);
Floating Rate Series 1983 A IDR (LOC-Credit
Suisse First Boston)
2.35%, 12/15/18(b)(c) A-1 VMIG-1 8,225 8,225,000
- ---------------------------------------------------------------------------------------
Apache (County of) Industrial Development
Authority (Tucson Electric Power Co.-
SpringerValley); VRD Series 1985 IDR
(LOC-Credit Suisse First Boston)
2.35%, 12/01/20(b)(c) A-1 VMIG-1 1,000 1,000,000
- ---------------------------------------------------------------------------------------
Casa Grande (City of) Industrial Development
Authority (Center Park Apartments
Projects); Refunding Multi-Family Housing
VRD Series 2001 A IDR (CEP- Federal
National Mortgage Association)
2.33%, 06/15/31(c) -- VMIG-1 2,010 2,010,000
- ---------------------------------------------------------------------------------------
</Table>
F-1
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
ARIZONA-(CONTINUED)
Casa Grande (City of) Industrial Development
Authority (Quail Gardens Apartments);
Refunding Multi-Family Housing VRD Series
2001 A IDR (CEP-Federal National Mortgage
Association)
2.33%, 06/15/31(c) -- VMIG-1 $ 1,550 $ 1,550,000
- ---------------------------------------------------------------------------------------
Mesa (City of); Utility System Series 1995 RB
5.38%, 07/01/05(g)(i) AAA Aaa 1,000 1,018,554
- ---------------------------------------------------------------------------------------
Phoenix (City of) Industrial Development
Authority (Lynwood Apartments Project);
Refunding VRD Series 1994 IDR (CEP- Federal
Home Loan Bank of San Francisco)
2.34%, 10/01/25(c) A-1+ -- 5,825 5,825,000
- ---------------------------------------------------------------------------------------
Pima (County of) Industrial Development
Authority (El Dorado Hospital); VRD Series
2004 RB (LOC-Branch Banking & Trust Co.)
2.27%, 04/01/38(b)(c) -- VMIG-1 6,000 6,000,000
- ---------------------------------------------------------------------------------------
Pima (County of) Industrial Development
Authority (Tucson Electric Power
Co.-Irvington Road Project); VRD Series
1982 IDR (LOC-Credit Suisse First Boston)
2.32%, 10/01/22(b)(c) A-1 VMIG-1 2,000 2,000,000
=======================================================================================
27,628,554
=======================================================================================
ARKANSAS-0.07%
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.)
2.35%, 07/01/08(b)(c)(j) -- -- 2,500 2,500,000
=======================================================================================
CALIFORNIA-0.91%
California (State of) Economic Recovery; VRD
Series 2004 C-6 RB (LOC-Citibank N.A.)
2.28%, 07/01/23(b)(k) A-1+ VMIG-1 29,050 29,050,000
- ---------------------------------------------------------------------------------------
San Diego (County of) (Friends of Chabad
Lubavitch); VRD Series 2003 COP
(LOC-Comerica Bank)
2.38%, 01/01/23(b)(c)(j) -- -- 1,410 1,410,000
=======================================================================================
30,460,000
=======================================================================================
COLORADO-3.26%
Adams & Weld (Counties of) School District
No. 27J Brighton; Unlimited Tax Series 2004
GO
2.50%, 12/01/05(f) AAA Aaa 1,950 1,955,505
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
<Caption>
- ---------------------------------------------------------------------------------------
COLORADO-(CONTINUED)
Colorado (State of) Educational & Cultural
Facilities Authority (Denver Art Museum
Project); VRD Series 2004 RB (LOC-Wells
Fargo Bank N.A.)
2.28%, 01/01/34(b)(c) A-1+ -- $ 4,950 $ 4,950,000
- ---------------------------------------------------------------------------------------
Colorado (State of) Educational & Cultural
Facilities Authority (Regis Jesuit High
School Project); VRD Series 2003 RB
(LOC-Wells Fargo Bank N.A.)
2.28%, 12/01/33(b)(c) A-1+ -- 5,415 5,415,000
- ---------------------------------------------------------------------------------------
Colorado (State of) Educational & Cultural
Facilities Authority (Southeastern Baptist
Theological Seminary); VRD Series 2005
(LOC-Branch Banking & Trust Co.)
2.27%, 03/01/25(b)(c) -- VMIG-1 8,955 8,955,000
- ---------------------------------------------------------------------------------------
Colorado (State of) Health Facilities
Authority (Arapahoe House Project); VRD
Series 2004 A RB (LOC-Wells Fargo Bank
N.A.)
2.35%, 04/01/24(b)(c) A-1+ -- 1,200 1,200,000
- ---------------------------------------------------------------------------------------
Colorado (State of) Health Facilities
Authority (Bethesda Collinwood); Refunding
VRD Series 2004 B RB (LOC-ABN AMRO Bank
N.V.)
2.30%, 08/01/34(b)(c) A-1 -- 4,230 4,230,000
- ---------------------------------------------------------------------------------------
Colorado (State of) Health Facilities
Authority (Bethesda Living Centers);
Refunding VRD Series 2004 A RB (LOC-ABN
AMRO Bank N.V.)
2.30%, 08/01/34(b)(c) A-1 -- 5,270 5,270,000
- ---------------------------------------------------------------------------------------
Colorado (State of) Health Facilities
Authority (Bethesda Living Centers
Project); VRD Series 1999 RB (LOC-ABN AMRO
Bank N.V.)
2.30%, 08/15/30(b)(c) A-1 -- 9,855 9,855,000
- ---------------------------------------------------------------------------------------
Colorado (State of) Health Facilities
Authority (Catholic Health Initiatives);
VRD Series 2000 B RB
2.30%, 12/01/20(c) A-1+ VMIG-1 2,000 2,000,000
- ---------------------------------------------------------------------------------------
Colorado (State of) Health Facilities
Authority (Christian Living Project);
Refunding VRD Series 2002 A RB (LOC- U.S.
Bank N.A.)
2.32%, 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.)
2.28%, 12/01/20(b)(c) A-1+ -- 3,580 3,580,000
- ---------------------------------------------------------------------------------------
</Table>
F-2
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
COLORADO-(CONTINUED)
Colorado (State of) Health Facilities
Authority (Golden West Manor Inc. Project);
VRD Series 2002 A RB (LOC-U.S. Bank N.A.)
2.32%, 07/01/32(b)(c) A-1+ -- $ 4,210 $ 4,210,000
- ---------------------------------------------------------------------------------------
Colorado Springs (City of) (Pikes Peak Mental
Health); VRD Series 2003 RB (LOC-Wells
Fargo Bank N.A.)
2.28%, 03/15/23(b)(c) A-1+ -- 3,615 3,615,000
- ---------------------------------------------------------------------------------------
Concord (Metropolitan District of); Refunding
& Improvement Unlimited Tax Series 2004 GO
(LOC-Wells Fargo Bank N.A.)
2.25%, 12/01/05(b)(g)(l) A-1+ -- 1,585 1,585,000
- ---------------------------------------------------------------------------------------
Crystal Valley (Metropolitan) District No. 1;
VRD Series 2004 RB (LOC-Wells Fargo Bank
N.A.)
2.28%, 10/01/34(b)(c) A-1+ -- 2,795 2,795,000
- ---------------------------------------------------------------------------------------
Denver (City & County of) (Cottonwood Creek);
Refunding Multi-Family Housing Revenue VRD
Series 1989 A RB (CEP- Federal Home Loan
Mortgage Corp.) (Acquired 12/28/04; Cost
$1,000,000)
2.30%, 04/15/14(c)(e) A-1+ -- 1,000 1,000,000
- ---------------------------------------------------------------------------------------
Denver (City & County of) (Kentucky Circle
Village Project); VRD Series 2000 RB (LOC-
Mountain States Bank, U.S. Bank N.A.)
2.32%, 10/01/29(b)(c) A-1+ -- 1,740 1,740,000
- ---------------------------------------------------------------------------------------
Denver (City & County of) (Wellington E Web);
Refunding VRD Series 2003 C2 COP
2.30%, 12/01/29(c)(f) A-1+ VMIG-1 2,245 2,245,000
- ---------------------------------------------------------------------------------------
Denver (City & County of) (Colorado
Convention Center Project); Excise Tax VRD
Series 2001 B RB
2.30%, 09/01/25(c)(f) A-1+ VMIG-1 2,905 2,905,000
- ---------------------------------------------------------------------------------------
Idaho Springs (City of); (Safeway Inc.
Project); Refunding VRD Series 1993 IDR
(LOC-Deutsche Bank A.G.)
2.15%, 06/01/05(b)(g)(h) A-1+ -- 940 940,000
- ---------------------------------------------------------------------------------------
Jefferson (County of) School District No.
R-001; Series 2004 A TAN
3.00%, 06/30/05 SP-1+ MIG-1 30,000 30,109,955
- ---------------------------------------------------------------------------------------
Jefferson (County of) Section 14 Metropolitan
District; Refunding Unlimited Tax Series
2004 GO (LOC-U.S. Bank N.A.)
2.25%, 12/01/05(b)(g)(l) A-1+ -- 1,200 1,200,000
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
<Caption>
COLORADO-(CONTINUED)
Kipling Ridge (Metropolitan) District; VRD
Unlimited Tax Series 2005 GO (LOC-U.S. Bank
N.A.)
2.32%, 12/01/23(b)(c) A-1+ -- $ 3,725 $ 3,725,000
- ---------------------------------------------------------------------------------------
Lafayette (City of) Exempla Improvement
District (Special Improvement No. 2-01);
Refunding Special Assessment VRD Series
2002 RB (LOC-Wells Fargo Bank N.A.)
2.32%, 12/01/22(b)(c) A-1+ -- 1,000 1,000,000
- ---------------------------------------------------------------------------------------
Westminster (City of) Water & Wastewater
Utility Enterprise; VRD Series 2002 RB
2.32%, 12/01/22(c)(f) A-1+ VMIG-1 1,415 1,415,000
=======================================================================================
109,295,460
=======================================================================================
CONNECTICUT-0.04%
Connecticut (State of) Development Authority
(Central Vermont Public Service); Floating
Rate Series 1985 PCR (LOC-Royal Bank of
Scotland)
2.05%, 12/01/15(b)(m) A-1+ -- 1,400 1,400,000
=======================================================================================
DELAWARE-0.25%
Delaware (State of) Economic Development
Authority (Independent School Inc.
Project); VRD Series 2003 RB (LOC-Royal
Bank of Scotland)
2.28%, 07/01/33(b)(c) A-1+ -- 8,250 8,250,000
=======================================================================================
DISTRICT OF COLUMBIA-1.86%
District of Columbia (American Library
Association); VRD Series 2005 RB (LOC-Bank
of America, N.A.)
2.32%, 02/01/35(b)(c) -- VMIG-1 3,175 3,175,000
- ---------------------------------------------------------------------------------------
District of Columbia (American Psychology
Association); VRD Series 2003 RB (LOC-Bank
of America, N.A.)
2.35%, 03/01/28(b)(c) A-1+ -- 970 970,000
- ---------------------------------------------------------------------------------------
District of Columbia (Consortium Issue); VRD
Series 1998 RB (LOC-Wachovia Bank, N.A.)
2.29%, 07/01/23(b)(c) A-1 -- 15,755 15,755,000
- ---------------------------------------------------------------------------------------
District of Columbia (Resources for the
Future Inc.); VRD Series 1998 RB
(LOC-Wachovia Bank, N.A.)
2.35%, 08/01/29(b)(c) A-1 -- 2,015 2,015,000
- ---------------------------------------------------------------------------------------
District of Columbia (The John F. Kennedy
Center for the Performing Arts); VRD
Series 1999 RB
2.26%, 10/01/29(c)(f) A-1+ VMIG-1 19,820 19,820,000
- ---------------------------------------------------------------------------------------
</Table>
F-3
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA-(CONTINUED)
District of Columbia Pooled Loan Program
(American Council on Education); VRD Series
1998 A RB (LOC-Bank of America, N.A.)
(Acquired 01/06/08; Cost $10,000,000)
2.30%, 01/01/29(b)(c)(e) A-1+ -- $10,000 $ 10,000,000
- ---------------------------------------------------------------------------------------
District of Columbia; Refunding Unlimited Tax
Series 1993 B-1 GO
5.30%, 06/01/05(f) AAA Aaa 6,000 6,032,755
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (District of Columbia Water
& Sewer Authority); VRD Series 2003 A12 RB
(Acquired 02/24/03; Cost $4,640,000)
2.35%, 10/01/17(c)(d)(e) -- VMIG-1 4,640 4,640,000
=======================================================================================
62,407,755
=======================================================================================
FLORIDA-3.99%
ABN AMRO Munitops Ctfs. Trust (County of
Escambia); Refunding Florida Non-AMT VRD
Series 2002-24 Ctfs. (Acquired 10/24/02;
Cost $5,000,000)
2.31%, 10/01/10(c)(d)(e) -- VMIG-1 5,000 5,000,000
- ---------------------------------------------------------------------------------------
Alachua (County of) Health Facilities
Authority (Shands Teaching Hospital and
Clinics Inc.); VRD Series 2002 A RB
(LOC-SunTrust Bank)
2.29%, 12/01/12(b)(k) -- VMIG-1 10,485 10,485,000
- ---------------------------------------------------------------------------------------
Capital Projects Finance Authority (Capital
Projects Loan Program); VRD Series 1997 A
RB
2.31%, 08/01/17(c)(f) A-1+ -- 800 800,000
- ---------------------------------------------------------------------------------------
Collier (County of) Health Facilities
Authority (Cleveland Health Clinic); VRD
Hospital Series 2003 C-2 BAN (LOC- JPMorgan
Chase Bank)
2.11%, 05/11/05(b)(g)(l) A-1+ VMIG-1 3,500 3,500,000
- ---------------------------------------------------------------------------------------
Collier (County of) Industrial Development
Authority (Redlands Christian Migrant
Association Inc.); VRD Series 2001 RB (LOC-
Bank of America, N.A.)
2.35%, 12/01/26(b)(c)(j) -- -- 2,800 2,800,000
- ---------------------------------------------------------------------------------------
Dade (County of) Industrial Development
Authority (Dolphin's Stadium Project); VRD
Series 1985 D RB (LOC-Societe Generale)
2.26%, 01/01/16(b)(c) A-1+ -- 2,000 2,000,000
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
<Caption>
- ---------------------------------------------------------------------------------------
FLORIDA-(CONTINUED)
Florida (State of) Housing Finance Agency
(Huntington Place Apartments LP); VRD
Multifamily Housing Series 1985 GGG RB
(CEP-Federal National Mortgage Association)
2.28%, 12/01/13(c) A-1+ -- $ 4,500 $ 4,500,000
- ---------------------------------------------------------------------------------------
Jacksonville (City of) (Baptist Medical
Center); Commercial Paper Series 2004 RB
(LOC-Bank of America, N.A.)
1.93%, 07/27/05(b) A-1+ -- 18,000 18,000,000
- ---------------------------------------------------------------------------------------
Jacksonville (City of) Health Facilities
Authority (Samuel C. Taylor Foundation
Project); VRD Series 1998 RB (LOC-Bank of
America, N.A.) (Acquired 02/20/01; Cost
$2,600,000)
2.35%, 12/01/23(b)(c)(e)(j) -- -- 2,600 2,600,000
- ---------------------------------------------------------------------------------------
Jacksonville (City of) Health Facilities
Authority (University of Florida
Jacksonville Physicians, Inc.); VRD Series
2002 RB (LOC- Bank of America, N.A.)
2.35%, 06/01/22(b)(c) -- VMIG-1 12,140 12,140,000
- ---------------------------------------------------------------------------------------
Lee (County of) Industrial Development
Authority (Hope of Southwest Florida Inc.
Project); Refunding & Improvement VRD
Series 2004 RB (LOC-SunTrust Bank)
2.29%, 10/01/23(b)(j)(k) -- -- 4,000 4,000,000
- ---------------------------------------------------------------------------------------
Miami-Dade (County of) Educational Facilities
Authority (Carlos Albizu University
Project); VRD Series 2000 RB (LOC-Bank of
America, N.A.)
2.35%, 12/01/25(b)(c)(j) -- -- 9,200 9,200,000
- ---------------------------------------------------------------------------------------
Miami-Dade (County of) Industrial Development
Authority (Palmer Trinity Private School
Project); VRD Series 1999 IDR (LOC-Bank of
America, N.A.)
2.35%, 12/01/19(b)(c)(j) -- -- 3,100 3,100,000
- ---------------------------------------------------------------------------------------
Morgan Stanley & Co. Inc. Trust Floater Ctfs.
(State of Florida Department of
Environmental Protection); Floating Rate
Trust Ctfs. VRD Series 2002-722 RB
(Acquired 11/13/02; Cost $9,850,000)
2.32%, 07/01/22(c)(d)(e) A-1 -- 9,850 9,850,000
- ---------------------------------------------------------------------------------------
North Miami (City of) Educational Facilities
(Miami Country Day School Project); VRD
Series 1999 RB (LOC-Bank of America, N.A.)
2.35%, 08/01/19(b)(c)(j) -- -- 1,750 1,750,000
- ---------------------------------------------------------------------------------------
</Table>
F-4
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
FLORIDA-(CONTINUED)
Orange (County of) Health Facilities
Authority (Adventist Health System/Sunbelt
Inc.); VRD Series 1992 RB (LOC-SunTrust
Bank)
2.30%, 11/15/14(b)(c) A-1+ VMIG-1 $ 9,950 $ 9,950,000
- ---------------------------------------------------------------------------------------
Orange (County of) Health Facilities
Authority (Presbyterian Retirement
Communities Project); VRD Series 1998 RB
(LOC-Bank of America, N.A.)
2.35%, 11/01/28(b)(c)(j) -- -- 7,970 7,970,000
- ---------------------------------------------------------------------------------------
Orlando & Orange (Counties of) Expressway
Authority; VRD Sub Series 2005 A-3 RB
2.28%, 07/01/40(c)(f) A-1+ VMIG-1 10,000 10,000,000
- ---------------------------------------------------------------------------------------
Palm Beach (County of) Educational Facilities
Authority (Atlantic College Project);
Educational Facilities VRD Series 2001 RB
(LOC-Bank of America, N.A.)
2.35%, 12/01/31(b)(c)(j) -- -- 2,700 2,700,000
- ---------------------------------------------------------------------------------------
Palm Beach (County of) Health Facilities
Authority (Jupiter Medical Center Inc.);
VRD Series 1999 B RB (LOC-Wachovia Bank,
N.A.)
2.35%, 08/01/20(b)(c)(j) -- -- 7,250 7,250,000
- ---------------------------------------------------------------------------------------
Tampa (City of) (Agency for Community
Treatment DACCO Project); VRD Series 2001
RB (LOC-Bank of America, N.A.)
2.35%, 07/01/22(b)(c)(j) -- -- 5,080 5,080,000
- ---------------------------------------------------------------------------------------
University of North Florida Foundation, Inc.
(Parking System); VRD Series 1998 RB
(LOC-Wachovia Bank, N.A.)
2.30%, 05/01/28(b)(c) A-1 -- 800 800,000
=======================================================================================
133,475,000
=======================================================================================
GEORGIA-3.94%
ABN AMRO Munitops Ctfs. Trust (State of
Georgia); Non-AMT VRD Series 2004-15 Ctfs.
(Acquired 10/12/04; Cost $9,995,000)
2.32%, 04/06/05(c)(d)(e) -- VMIG-1 9,995 9,995,000
- ---------------------------------------------------------------------------------------
Bartow (County of) School District; Unlimited
Tax Series 2003 GO
3.00%, 11/01/05 AA+ -- 950 954,922
- ---------------------------------------------------------------------------------------
Burke (County of) Development Authority
(Oglethorpe Power Corp.); VRD Series 1994 A
PCR
2.30%, 01/01/19(c)(f) A-1+ VMIG-1 17,700 17,700,000
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
<Caption>
- ---------------------------------------------------------------------------------------
GEORGIA-(CONTINUED)
CDC Municipal Products, Inc. (Forsyth (County
of) School District); VRD Unlimited Tax
Series 2004-6 A GO (Acquired 10/20/04; Cost
$3,000,000)
2.32%, 02/01/18(c)(d)(e) A-1+ -- $ 3,000 $ 3,000,000
- ---------------------------------------------------------------------------------------
Clayton (County of) Development Authority
(Delta Airlines Project); Special
Facilities VRD Series 2000 A RB
(CEP-General Electric Capital Corp.)
2.32%, 06/01/29(c) A-1+ VMIG-1 12,000 12,000,000
- ---------------------------------------------------------------------------------------
Cobb (County of) Development Authority (YMCA
of Cobb County); VRD Series 2003 RB (LOC-
Branch Banking & Trust Co.)
2.27%, 12/01/25(b)(c) -- VMIG-1 1,000 1,000,000
- ---------------------------------------------------------------------------------------
Cobb (County of) Housing Authority (Tamarron
Apartments Project); Refunding Multi-Family
Housing VRD Series 2003 RB (CEP- Federal
Home Loan Mortgage Corp.)
2.30%, 03/01/24(c) A-1+ -- 4,820 4,820,000
- ---------------------------------------------------------------------------------------
DeKalb (County of) Hospital Authority (DeKalb
Medical Center Inc. Project); VRD Series
2000 B RB (LOC-Wachovia Bank, N.A.)
2.29%, 10/01/25(b)(c) -- VMIG-1 10,450 10,450,000
- ---------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (State of Georgia);
VRD Series 2000-1001 Class C COP (Acquired
07/26/00; Cost $20,000,000)
2.32%, 07/01/15(c)(d)(e) A-1+ -- 20,000 20,000,000
- ---------------------------------------------------------------------------------------
Floyd (County of) Development Authority
(Shorter College Project); VRD Series 1998
RB (LOC-SunTrust Bank)
2.43%, 06/01/17(b)(c) A-1+ -- 1,800 1,800,000
- ---------------------------------------------------------------------------------------
Fulton (County of) Development Authority
(Bridgeway Foundation for Education
Project); Educational Facilities VRD Series
2000 RB (LOC-Wachovia Bank, N.A.)
2.34%, 06/01/15(b)(c) A-1 -- 1,400 1,400,000
- ---------------------------------------------------------------------------------------
Fulton (County of) Development Authority
(Pace Academy Inc. Project); VRD Series
1998 RB (LOC-Bank of America, N.A.)
2.30%, 07/01/18(b)(c)(j) -- -- 5,375 5,375,000
- ---------------------------------------------------------------------------------------
Fulton (County of) Development Authority
(Woodward Academy Inc. Project); VRD Series
2002 RB (LOC-SunTrust Bank)
2.29%, 12/01/27(b)(c) -- VMIG-1 6,400 6,400,000
- ---------------------------------------------------------------------------------------
</Table>
F-5
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
GEORGIA-(CONTINUED)
Fulton (County of) Hospital Authority
(Northside Hospital Inc.); VRD Series 2003
A RAN (LOC-Wachovia Bank, N.A.)
2.29%, 10/01/18(b)(c) -- VMIG-1 $28,080 $ 28,080,000
- ---------------------------------------------------------------------------------------
Smyrna (City of) Hospital Authority
(Ridgeview Institute Inc. Project); VRD
Series 2002 RB (LOC- Wachovia Bank, N.A.)
2.34%, 11/01/27(b)(c) -- VMIG-1 2,060 2,060,000
- ---------------------------------------------------------------------------------------
Tallapoosa (City of) Development Authority
(U.S. Can Co. Project); VRD Series 1994
RB(LOC- Deutsche Bank A.G.)
2.35%, 02/01/15(b)(c) A-1 -- 2,000 2,000,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (City of Dalton); Utilities
VRD Series 2003 A02 RB (Acquired 08/25/04;
Cost $4,860,000)
2.35%, 01/01/12(c)(d)(e) -- VMIG-1 4,860 4,860,000
=======================================================================================
131,894,922
=======================================================================================
HAWAII-0.29%
Eagle Tax Exempt Trust (State of Hawaii); VRD
Series 2000-1101 COP (Acquired 01/11/01;
Cost $6,000,000)
2.32%, 12/01/16(c)(d)(e) A-1+ -- 6,000 6,000,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (State of Hawaii); Unlimited
Tax VRD Series 2003 A16 GO (Acquired
02/27/03; Cost $3,880,000)
2.35%, 07/01/18(c)(d)(e) -- VMIG-1 3,880 3,880,000
=======================================================================================
9,880,000
=======================================================================================
IDAHO-0.36%
Custer (County of) Pollution Control (Amoco
Oil Co.-Standard Oil Industry Project); VRD
Series 1983 RB
1.55%, 04/01/05(g)(h) A-1+ Aa1 10,000 10,000,000
- ---------------------------------------------------------------------------------------
Magic Valley Healthcare System Inc. (Magic
Valley Regional Medical Center Project);
VRD Series 2001 RB (LOC-Wells Fargo Bank
N.A.)
2.28%, 12/01/21(b)(c) -- VMIG-1 2,040 2,040,000
=======================================================================================
12,040,000
=======================================================================================
ILLINOIS-14.93%
ABN AMRO Munitops Ctfs. Trust (City of
Chicago); Refunding Multi-State Non-AMT VRD
Limited Tax Series 2001-34 Ctfs. (Acquired
11/15/01; Cost $10,000,000)
2.33%, 07/01/07(c)(d)(e) -- VMIG-1 10,000 10,000,000
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
<Caption>
- ---------------------------------------------------------------------------------------
ILLINOIS-(CONTINUED)
Bear Stearns Municipal Securities Trust Ctfs.
(State of Illinois Sales Tax); VRD Series
1998-25 A RB (Acquired 08/26/99; Cost
$10,000,000)
2.30%, 03/15/07(c)(d)(e) A-1 Aa2 $10,000 $ 10,000,000
- ---------------------------------------------------------------------------------------
Bear Stearns Municipal Securities Trust Ctfs.
(State of Illinois); VRD Series 2002-190 A
RB (Acquired 05/06/02; Cost $10,130,00)
2.30%, 06/05/14(c)(d)(e) A-1 -- 10,130 10,130,000
- ---------------------------------------------------------------------------------------
Chicago (City of); VRD Limited Tax Obligation
Tender Series 2004 GO (LOC-State Street
Bank & Trust Co.)
2.20%, 12/08/05(b)(g)(l) SP-1+ MIG-1 7,000 7,000,000
- ---------------------------------------------------------------------------------------
Chicago (City of); Refunding Water Revenue
Second Lien VRD Series 2004 RB
2.28%, 11/01/31(c)(f) A-1+ VMIG-1 30,000 30,000,000
- ---------------------------------------------------------------------------------------
Cook (County of) (Catholic Theological Union
Project); VRD Series 2005 RB (LOC-Bank of
Montreal)
2.30%, 02/01/35(b)(c) -- VMIG-1 4,000 4,000,000
- ---------------------------------------------------------------------------------------
Cook (County of) High School District No. 201
(J. Sterling Morton Township); School
Limited Tax Series 2004 GO
4.38%, 12/01/05(f) -- Aaa 5,000 5,074,796
- ---------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Chicago Park
District); VRD Unlimited Tax Series
2002-1306 A COP (Acquired 05/02/02; Cost
$5,500,000)
2.32%, 01/01/29(c)(d)(e) A-1+ -- 5,500 5,500,000
- ---------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Chicago
Public Building Commission); VRD Series
2003-0015 A COP (Acquired 05/14/03; Cost
$2,800,000)
2.32%, 12/01/14(c)(d)(e) A-1+ -- 2,800 2,800,000
- ---------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Chicago Water
& Sewer); VRD Series 2001-1308 COP
(Acquired 12/12/01; Cost $8,655,000)
2.32%, 11/01/26(c)(d)(e) A-1+ -- 8,655 8,655,000
- ---------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Chicago); VRD
Series 2001-1305 COP (Acquired 04/02/01;
Cost $4,950,000)
2.43%, 01/01/35(c)(d)(e) A-1+ -- 4,950 4,950,000
- ---------------------------------------------------------------------------------------
</Table>
F-6
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
ILLINOIS-(CONTINUED)
Eagle Tax Exempt Trust (County of Cook
Regional Transportation Authority); VRD
Series 2000-1303 COP (Acquired 03/26/01;
Cost $19,000,000)
2.32%, 07/01/23(c)(d)(e) A-1+ -- $19,000 $ 19,000,000
- ---------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (State of Illinois);
VRD Series 2000-1304 COP (Acquired
06/27/00; Cost $7,340,000)
2.32%, 06/01/21(c)(d)(e) A-1+ -- 7,340 7,340,000
- ---------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (State of Illinois);
VRD Unlimited Tax Series 2003-0023 A COP
(Acquired 06/12/03; Cost $3,775,000)
2.32%, 06/01/15(c)(d)(e) A-1+ -- 3,775 3,775,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (American College of Surgeons);
VRD Series 1996 RB (LOC-Northern Trust Co.)
2.17%, 08/01/26(b)(c) A-1+ -- 6,120 6,120,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (BAPS Inc. Project); VRD Series
2002 RB (LOC-Comerica Bank)
2.30%, 06/01/17(b)(c) A-1 -- 8,385 8,385,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (British Home for Retired Men &
Women); VRD Series 2001 RB (LOC-ABN AMRO
Bank N.V.)
2.30%, 11/01/27(b)(c) A-1 -- 8,740 8,740,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (Chicago Shakespeare Theater
Project); VRD Series 1999 RB (LOC-ABN AMRO
Bank N.V.) (Acquired 09/24/03; Cost
$4,100,000)
2.30%, 01/01/19(b)(c)(e) A-1 -- 4,100 4,100,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (Embers Elementary School
Project); Educational Facilities VRD Series
2002 RB (LOC-ABN AMRO Bank N.V.) (Acquired
11/04/03; Cost $2,250,000)
2.31%, 04/01/32(b)(c)(e) A-1 -- 2,250 2,250,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (Fenwick High School Project);
VRD Series 1997 RB (LOC-JPMorgan Chase
Bank)
2.30%, 03/01/32(b)(c) A-1+ -- 6,200 6,200,000
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
<Caption>
- ---------------------------------------------------------------------------------------
ILLINOIS-(CONTINUED)
Illinois (State of) Development Finance
Authority (Institute of Gas Technology
Project); VRD Series 1999 IDR (LOC-Bank of
Montreal)
2.33%, 09/01/24(b)(c) A-1+ -- $ 2,000 $ 2,000,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (Lyric Opera of Chicago Project);
VRD Series 1994 RB (LOC-Northern Trust Co.,
Bank of Montreal, JPMorgan Chase Bank)
2.30%, 12/01/28(b)(c) A-1+ VMIG-1 49,800 49,800,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (Mount Carmel High School
Project); VRD Series 2003 RB (LOC-JPMorgan
Chase Bank)
2.30%, 07/01/33(b)(c) -- VMIG-1 5,600 5,600,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (The Museum of Contemporary Art
Project); VRD Series 1994 RB (LOC- JPMorgan
Chase Bank, Northern Trust Co.)
2.30%, 02/01/29(b)(c) A-1 VMIG-1 14,950 14,950,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (North Shore Country Day School);
VRD Series 2003 RB (LOC-Northern Trust Co.)
2.30%, 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-ABN AMRO
Bank N.V.) (Acquired 01/29/03; Cost
$2,975,000)
2.30%, 07/01/41(b)(c)(e) 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)
2.30%, 07/01/33(b)(c) -- VMIG-1 4,600 4,600,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (West Central Illinois
Educational Project); VRD Series 2002 RB
(LOC-JPMorgan Chase Bank)
2.30%, 09/01/32(b)(c) -- VMIG-1 4,800 4,800,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Educational Facilities
Authority (Aurora University); VRD Cultural
Pooled Financing Series 1998 RB (LOC- Bank
of America, N.A.)
2.32%, 03/01/28(b)(c) A-1+ -- 6,670 6,670,000
- ---------------------------------------------------------------------------------------
</Table>
F-7
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
ILLINOIS-(CONTINUED)
Illinois (State of) Educational Facilities
Authority (Aurora University); VRD Series
2002 RB (LOC-Fifth Third Bank)
2.35%, 03/01/32(b)(c) -- VMIG-1 $ 3,300 $ 3,300,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Educational Facilities
Authority (Blackburn University); Cultural
Pooled Financing VRD Series 1999 RB
(LOC-Bank of America, N.A.)
2.32%, 07/01/29(b)(c) A-1+ -- 1,385 1,385,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Educational Facilities
Authority (Chicago Childrens Museum); VRD
Series 1994 RB (LOC-JPMorgan Chase Bank)
2.30%, 02/01/28(b)(c) A-1 VMIG-1 4,250 4,250,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Educational Facilities
Authority (Lincoln Park Society); VRD
Series 1999 RB (LOC-JPMorgan Chase Bank)
2.30%, 01/01/29(b)(c) A-1+ -- 2,825 2,825,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Educational Facilities
Authority (National Louis University); VRD
Series 1999 B RB (LOC-JPMorgan Chase Bank)
2.30%, 06/01/29(b)(c) A-1+ -- 2,300 2,300,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Finance Authority
(Illinois Institute of Technology); VRD
Series 2004 RB (LOC-Bank of Montreal)
2.30%, 12/01/24(b)(c) -- VMIG-1 5,000 5,000,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Finance Authority (Jewish
Charities); VRD Series 2004 A RN (LOC-Bank
of Montreal)
2.30%, 06/30/05(b)(c) A-1+ -- 7,630 7,630,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Finance Authority (Kohl
Children's Museum); VRD Series 2004 RB
(LOC-Fifth Third Bank)
2.30%, 07/01/34(b)(c) -- VMIG-1 2,680 2,680,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Finance Authority (Mercy
Alliance Project); VRD Series 2005 RB
(LOC-M&I Marshall & Ilsley Bank)
2.31%, 02/15/35(b)(c) -- VMIG-1 7,000 7,000,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Finance Authority
(Richard H. Driehaus Museum); VRD Series
2005 RB (LOC- Northern Trust Co.)
2.30%, 02/01/35(b)(c) -- VMIG-1 2,900 2,900,000
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
<Caption>
- ---------------------------------------------------------------------------------------
ILLINOIS-(CONTINUED)
Illinois (State of) Finance Authority
(Sunshine Through Golf Foundation Project);
VRD Series 2004 A RB (LOC-ABN AMRO Bank
N.V.)
2.31%, 11/01/24(b)(c) A-1 -- $ 2,100 $ 2,100,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Finance Authority; VRD
Series 2005 RAN (LOC-Bank of Montreal)
2.30%, 06/30/05(b)(c) A-1+ -- 3,300 3,300,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Health Facilities
Authority (Bensenville Home Society); VRD
Series 1989 A RB (LOC-JPMorgan Chase Bank)
2.32%, 02/15/19(b)(c) A-1 -- 1,100 1,100,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Health Facilities
Authority (OSF Healthcare System); VRD
Series 2002 RB (LOC-Fifth Third Bank)
2.27%, 11/15/27(b)(k) A-1+ VMIG-1 7,100 7,100,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Health Facilities
Authority (Peace Memorial Ministries); VRD
Series 2003 B RB (LOC-ABN AMRO Bank N.V.)
2.30%, 08/15/33(b)(c) A-1 -- 9,845 9,845,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Health Facilities
Authority (St. Lukes Medical Center); VRD
Series 1998 B RB
2.28%, 11/15/23(c)(f) A-1+ VMIG-1 1,000 1,000,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Health Facilities
Authority; Revolving Fund Pooled VRD Series
1985 C RB (LOC- JPMorgan Chase Bank)
2.30%, 08/01/15(b)(c) A-1+ VMIG-1 7,000 7,000,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Health Facilities
(Franciscan Eldercare Service); VRD Series
2001 RB (LOC-ABN AMRO Bank N.V.)
2.30%, 05/15/32(b)(c) A-1 -- 10,800 10,800,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Regional Transportation
Authority; Series 1994 A RB
5.80%, 06/01/05(f) AAA Aaa 3,300 3,321,356
- ---------------------------------------------------------------------------------------
Illinois (State of) Toll Highway Authority;
Refunding Toll Highway VRD Series 1998 B RB
2.25%, 01/01/16(c)(f) -- VMIG-1 15,900 15,900,000
- ---------------------------------------------------------------------------------------
2.25%, 01/01/17(c)(f) -- VMIG-1 4,600 4,600,000
- ---------------------------------------------------------------------------------------
Lombard (City of) (Clover Creek Apartments
Project); VRD Multi-Family Housing Series
2000 RB (CEP-Federal National Mortgage
Association)
2.31%, 12/15/30(c) A-1+ -- 14,855 14,855,000
- ---------------------------------------------------------------------------------------
</Table>
F-8
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
ILLINOIS-(CONTINUED)
Macon (County of) (Millikin University); VRD
Series 1999 RB
2.30%, 10/01/28(c)(f) A-1+ -- $ 4,500 $ 4,500,000
- ---------------------------------------------------------------------------------------
McCook (City of) (Illinois Saint Andrew
Society); VRD Series 1996 A RB
(LOC-Northern Trust Co.)
2.32%, 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-ABN AMRO Bank
N.V.)
2.30%, 12/01/14(b)(c) A-1 -- 2,470 2,470,000
- ---------------------------------------------------------------------------------------
Quincy (City of) (Blessing Hospital Project);
VRD Series 2004 RB (LOC-JPMorgan Chase
Bank)
2.30%, 11/15/33(b)(c) A-1+ VMIG-1 13,900 13,900,000
- ---------------------------------------------------------------------------------------
Rochelle (City of) Hospital Facility
(Rochelle Community Hospital Project); VRD
Series 2004 RB (LOC-JPMorgan Chase Bank.)
2.30%, 08/01/34(b)(c) -- VMIG-1 5,200 5,200,000
- ---------------------------------------------------------------------------------------
Rockford (City of) (Wesley Willows); VRD
Series 2002 RB (LOC-M&I Marshall & Isley
Bank)
2.31%, 04/01/32(b)(k) A-1 -- 9,000 9,000,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (Central Lake County Joint
Action Water Agency); VRD Series 2003 B18
RB (Acquired 02/19/03; Cost $3,150,000)
2.35%, 05/01/20(c)(d)(e) -- VMIG-1 3,150 3,150,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (City of Chicago Board of
Education); VRD Unlimited Tax Series 2000
A4 GO (Acquired 11/12/03; Cost $4,845,000)
2.11%, 11/10/05(d)(e)(g)(l)(n) -- VMIG-1 4,845 4,845,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (City of Chicago Emergency
Telephone System); VRD Limited Tax Series
2002 A44 GO (Acquired 08/02/02; Cost
$7,845,000)
2.35%, 01/01/20(c)(d)(e) -- VMIG-1 7,845 7,845,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (City of Chicago); VRD
Limited Tax Series 2000 A12 GO (Acquired
10/13/00; Cost $10,000,000)
2.35%, 01/01/23(c)(d)(e) -- VMIG-1 10,000 10,000,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (Cook County Regional
Transportation Authority); VRD Series 2001
A93 RB (Acquired 10/10/01; Cost $3,665,000)
2.35%, 07/01/27(c)(d)(e) -- VMIG-1 3,665 3,665,000
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
<Caption>
ILLINOIS-(CONTINUED)
Wachovia MERLOTs (Cook County Regional
Transportation Authority); VRD Unlimited
Tax Series 2002 A41 GO (Acquired 07/25/02;
Cost $17,775,000)
2.35%, 06/01/17(c)(d)(e) -- VMIG-1 $17,775 $ 17,775,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (Cook County); VRD Unlimited
Tax Series 2003 B11 GO (Acquired 01/29/03;
Cost $6,995,000)
2.35%, 11/15/25(c)(d)(e) -- VMIG-1 6,995 6,995,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (Regional Transportation
Authority); VRD Series 2001 A69 RB
(Acquired 11/09/04; Cost $11,770,000)
2.11%, 11/10/05(d)(e)(g)(l)(n) -- VMIG-1 11,770 11,770,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (State of Illinois); VRD
Unlimited Tax Series 2001 A124 GO (Acquired
11/26/01; Cost $7,905,000)
2.35%, 11/01/26(c)(d)(e) A-1 -- 7,905 7,905,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (University of Illinois);
VRD Series 2000 S GO (Acquired 03/20/00;
Cost $7,400,000)
2.35%, 04/01/30(c)(d)(e) -- VMIG-1 7,400 7,400,000
=======================================================================================
499,851,152
=======================================================================================
INDIANA-3.26%
ABN AMRO Munitops Ctfs. Trust (Township of
Wayne, County of Marion School Building
Corp.); Multi-State Non-AMT VRD Series
2003-27 RB (Acquired 11/12/03; Cost
$13,795,000)
2.33%, 07/15/11(c)(d)(e) -- VMIG-1 13,795 13,795,000
- ---------------------------------------------------------------------------------------
CDC Municipal Products, Inc. (Indiana State
of Transportation Finance Authority);
Highway VRD Series 2004-5 A RB (Acquired
10/21/04; Cost $2,000,000)
2.32%, 12/01/18(c)(d)(e) A-1+ -- 2,000 2,000,000
- ---------------------------------------------------------------------------------------
Indiana (State of) Bond Bank; Advance Funding
Program Series 2005 A RN
3.25%, 01/26/06 SP-1+ MIG-1 20,000 20,152,637
- ---------------------------------------------------------------------------------------
Indiana (State of) Educational Facilities
Authority (Indiana Wesleyan University
Project); Educational Facilities VRD Series
1998 A RB (LOC-JPMorgan Chase Bank)
2.30%, 06/01/28(b)(c) A-1+ -- 9,600 9,600,000
- ---------------------------------------------------------------------------------------
</Table>
F-9
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
INDIANA-(CONTINUED)
Indiana (State of) Educational Facilities
Authority (Wabash College Project);
Educational Facilities Series 2003 RB (LOC-
JPMorgan Chase Bank)
2.30%, 12/01/23(b)(c) -- VMIG-1 $ 5,870 $ 5,870,000
- ---------------------------------------------------------------------------------------
Indiana (State of) Health Facilities
Financing Authority (Community Hospitals
Project); VRD Hospital Series 2000 A RB
(LOC-Bank of America, N.A.)
2.30%, 07/01/28(b)(c) A-1+ -- 3,892 3,892,000
- ---------------------------------------------------------------------------------------
Indiana (State of) Health Facilities
Financing Authority (Deaconess Hospital
Inc.); Hospital VRD Series 1992 ACES RB
(LOC-Fifth Third Bank)
2.30%, 01/01/22(b)(c) A-1+ -- 11,920 11,920,000
- ---------------------------------------------------------------------------------------
Indiana (State of) Health Facilities
Financing Authority (Golden Years
Homestead); VRD Series 2002 A RB (LOC-Wells
Fargo Bank N.A.)
2.28%, 06/01/25(b)(c) A-1+ -- 6,500 6,500,000
- ---------------------------------------------------------------------------------------
Kokomo (City of) Hospital Authority (St.
Joseph's Hospital Center); Refunding
Hospital Series 1993 RB
6.35%, 08/15/05(g)(i) AAA Aaa 3,000 3,050,845
- ---------------------------------------------------------------------------------------
Petersburg (City of) Pollution Control
(Indianapolis Power & Light Co.); Refunding
VRD Series 1995 B PCR
2.30%, 01/01/23(c)(f) -- VMIG-1 23,000 23,000,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (County of Porter Jail
Building Corp.); VRD Series 2001 A58 RB
(Acquired 11/12/03; Cost $9,410,000)
2.11%, 11/10/05(d)(e)(g)(l)(n) -- VMIG-1 9,410 9,410,000
=======================================================================================
109,190,482
=======================================================================================
IOWA-1.20%
Iowa (State of) Finance Authority
(Morningside College Project); Private
College Facility VRD Series 2002 RB (LOC-
U.S. Bank N.A.)
2.35%, 10/01/32(b)(c) A-1+ -- 2,320 2,320,000
- ---------------------------------------------------------------------------------------
Iowa (State of) Finance Authority Retirement
Community (Deerfield Retirement Community);
VRD Series 2003 A RB (LOC-ABN AMRO Bank
N.V.)
2.30%, 12/01/33(b)(c) A-1 -- 15,000 15,000,000
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
<Caption>
- ---------------------------------------------------------------------------------------
IOWA-(CONTINUED)
Iowa (State of) Higher Education Loan
Authority (Graceland Private College); VRD
Series 2003 RB (LOC-Bank of America, N.A.)
2.35%, 02/01/33(b)(c) -- VMIG-1 $ 2,000 $ 2,000,000
- ---------------------------------------------------------------------------------------
Iowa (State of) School Corps.; School Cash
Anticipation Program Series 2004 A Wts.
Ctfs.
3.00%, 06/30/05(f) -- MIG-1 10,000 10,034,200
- ---------------------------------------------------------------------------------------
Iowa (State of); School Cash Anticipation
Program Series 2005 B RN
3.50%, 01/27/06(f) -- MIG-1 10,700 10,805,204
=======================================================================================
40,159,404
=======================================================================================
KANSAS-1.27%
Eagle Tax Exempt Trust (County of Wyandotte
Unified Government Utility System); VRD
Series 2004-0038 A COP (Acquired 09/08/04;
Cost $5,000,000)
2.32%, 09/01/21(c)(d)(e) A-1+ -- 5,000 5,000,000
- ---------------------------------------------------------------------------------------
Kansas (State of) Development Finance
Authority (Deaconess Long Term Care);
Health Facilities VRD Series 2000 C RB
(LOC-ABN AMRO Bank N.V.)
2.29%, 05/15/30(b)(c) -- VMIG-1 4,380 4,380,000
- ---------------------------------------------------------------------------------------
Leawood (City of); Unlimited Tax Temporary
Notes Series 2004-2 GO
3.00%, 10/01/05 -- MIG-1 14,000 14,091,450
- ---------------------------------------------------------------------------------------
Lenexa (City of) Health Care Facilities
(Lakeview Village Inc.); VRD Series 2002 B
RB (LOC-ABN AMRO Bank N.V.)
2.30%, 05/15/32(b)(c) A-1 -- 7,500 7,500,000
- ---------------------------------------------------------------------------------------
Olathe (City of) Health Facilities (Cedar
Lake Village Inc. Project); VRD Series 2004
RB (LOC-Bank of America, N.A.)
2.30%, 12/01/29(b)(c) -- VMIG-1 5,000 5,000,000
- ---------------------------------------------------------------------------------------
Olathe (City of) Recreational Facilities
(YMCA of Greater Kansas City Project); VRD
Series 2002 B RB (LOC-Bank of America,
N.A.)
2.35%, 11/01/18(b)(c) -- VMIG-1 3,100 3,100,000
- ---------------------------------------------------------------------------------------
Wichita (City of) Recreational Facilities
(YMCA of Wichita Project); VRD Series 1998
XI RB (LOC-Bank of America, N.A.) (Acquired
02/15/01; Cost $3,500,000)
2.35%, 08/01/09(b)(c)(e) A-1+ -- 3,500 3,500,000
=======================================================================================
42,571,450
=======================================================================================
</Table>
F-10
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
KENTUCKY-1.20%
Kentucky (State of) Area Development
Districts Financing Trust (Weekly
Acquisition-Ewing); Lease Program VRD
Series 2000 RB (LOC-Wachovia Bank, N.A.)
2.39%, 06/01/33(b)(c) A-1 -- $ 5,660 $ 5,660,000
- ---------------------------------------------------------------------------------------
Kentucky (State of) Asset/Liability
Commission; General Funding Series 2004 A
TRAN
3.00%, 06/29/05 SP-1+ MIG-1 15,000 15,052,221
- ---------------------------------------------------------------------------------------
Newport (City of) Kentucky League of Cities
Funding Trust; Lease Program VRD Series
2002 RB (LOC-U.S. Bank N.A.)
2.19%, 04/01/32(b)(c) -- VMIG-1 19,600 19,600,000
=======================================================================================
40,312,221
=======================================================================================
LOUISIANA-0.88%
Eagle Tax Exempt Trust (City of New Orleans);
VRD Series 2000-1801 COP (Acquired
10/10/00; Cost $6,000,000)
2.32%, 12/01/21(c)(d)(e) A-1+ -- 6,000 6,000,000
- ---------------------------------------------------------------------------------------
Louisiana (State of) Public Facilities
Authority (Glen Retirement System Project);
VRD Series 2001 RB (LOC-AmSouth Bank)
(Acquired 08/15/01; Cost $3,270,000)
2.40%, 08/01/16(b)(c)(e) -- VMIG-1 3,270 3,270,000
- ---------------------------------------------------------------------------------------
Louisiana (State of) Regional Transit
Authority; Lease Series 1998 Long Fund RB
6.13%, 05/01/05(g)(i) AAA Aaa 1,800 1,807,860
- ---------------------------------------------------------------------------------------
Louisiana (State of); Unlimited Tax Series
1995 A GO
6.00%, 05/15/05(g)(i) AAA Aaa 5,890 6,036,193
- ---------------------------------------------------------------------------------------
Series 1998 B GO
5.50%, 04/15/05(f) AAA Aaa 1,775 1,777,874
- ---------------------------------------------------------------------------------------
Series 2003 A GO
6.00%, 05/01/05(o) AAA Aaa 10,665 10,701,707
=======================================================================================
29,593,634
=======================================================================================
MAINE-0.20%
JPMorgan PUTTERs (State of Maine Turnpike
Authority); VRD Turnpike Series 2004 546 RB
(Acquired 10/28/04; Cost $1,800,000)
2.32%, 07/01/12(c)(d)(e) -- VMIG-1 1,800 1,800,000
- ---------------------------------------------------------------------------------------
Maine (State of) Housing Authority; Mortgage
Series 2003 E-1 RB
2.26%, 11/15/30(c)(f) A-1+ VMIG-1 4,785 4,785,000
=======================================================================================
6,585,000
=======================================================================================
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
<Caption>
MARYLAND-0.55%
Frederick (County of) Retirement Community
(Buckingham's Choice Inc. Project); VRD
Series 1997 C RB (LOC-Branch Banking &
Trust Co.)
2.31%, 01/01/27(b)(c) A-1 -- $ 6,000 $ 6,000,000
- ---------------------------------------------------------------------------------------
Howard (County of) Economic Development
(Norbel School Inc. Project); VRD Series
2001 RB (LOC-Branch Banking & Trust Co.)
2.27%, 02/01/28(b)(c) -- Aa3 4,785 4,785,000
- ---------------------------------------------------------------------------------------
Maryland (State of) Economic Development
Corp. (YMCA of Central Maryland Inc.
Project); VRD Series 2003 RB (LOC- Branch
Banking & Trust Co.)
2.27%, 04/01/28(b)(c) -- VMIG-1 3,800 3,800,000
- ---------------------------------------------------------------------------------------
Morgan Stanley & Co. Inc. Trust Floater Ctfs.
(State of Maryland Health & Higher
Educational Facilities Authority); VRD
Floating Rate Trust Ctfs. Series 2003-829
RB (Acquired 06/19/03; Cost $3,800,000)
2.32%, 08/15/38(c)(d)(e) -- VMIG-1 3,800 3,800,000
=======================================================================================
18,385,000
=======================================================================================
MASSACHUSETTS-0.65%
Massachusetts (State of) Health & Educational
Facilities Authority (Fairview Extended
Care Services Inc.); Refunding VRD Series
1997 B RB (LOC-Bank of America, N.A.)
2.29%, 01/01/21(b)(c) -- VMIG-1 21,620 21,620,000
=======================================================================================
MICHIGAN-4.91%
Bruce (Township of) Hospital Finance
Authority (Sisters Charity of St. Joseph);
Health Care System VRD Series 1988 A RB
1.80%, 05/02/05(f)(g)(h) A-1+ VMIG-1 2,000 2,000,000
- ---------------------------------------------------------------------------------------
Dearborn (City of) Economic Development Corp.
(Henry Ford Village Inc. Project); VRD
Limited Tax Series 1998 IDR (LOC- Comerica
Bank)
2.33%, 10/01/23(b)(c)(p) -- -- 8,600 8,600,000
- ---------------------------------------------------------------------------------------
Eagle Tax-Exempt Trust (City of Detroit
School District); VRD Unlimited Tax Series
2002-6014 A GO (Acquired 11/06/02; Cost
$7,105,000)
2.32%, 05/01/32(c)(d)(e) A-1+ -- 7,105 7,105,000
- ---------------------------------------------------------------------------------------
</Table>
F-11
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
MICHIGAN-(CONTINUED)
Kalamazoo (County of) Economic Development
Corp. (Heritage Community Project);
Refunding VRD Limited Tax Series 2004 RB
(LOC-Fifth Third Bank)
2.28%, 05/15/17(b)(c) A-1+ -- $ 5,405 $ 5,405,000
- ---------------------------------------------------------------------------------------
Lake Orion (City of) Community School
District; Refunding Unlimited Tax Series
1994 GO
7.00%, 05/01/05(g)(i) AAA Aaa 13,170 13,357,320
- ---------------------------------------------------------------------------------------
Michigan (State of) Higher Educational
Facilities Authority (Hope College);
Refunding VRD Limited Tax Series 2004 GO
(LOC-JPMorgan Chase Bank)
2.31%, 04/01/34(b)(c) A-1 -- 1,900 1,900,000
- ---------------------------------------------------------------------------------------
Michigan (State of) Hospital Finance
Authority (Holland Community Hospital); VRD
Series 2004 B RB (LOC-JPMorgan Chase Bank)
2.29%, 01/01/34(b)(c) -- VMIG-1 2,000 2,000,000
- ---------------------------------------------------------------------------------------
Michigan (State of) Municipal Bond Authority;
Series 2004 B-2 RN (LOC-JPMorgan Chase
Bank)
3.00%, 08/23/05(b) SP-1+ -- 15,000 15,083,289
- ---------------------------------------------------------------------------------------
Michigan (State of) Strategic Fund (Van Andel
Research Institute Project); VRD Limited
Tax Series 1997 RB (LOC-ABN AMRO Bank N.V.)
2.30%, 11/01/27(b)(c) A-1 -- 16,200 16,200,000
- ---------------------------------------------------------------------------------------
Michigan (State of) Strategic Fund (Washtenaw
Christian Project); VRD Limited Tax Series
2003 RB (LOC-ABN AMRO Bank N.V.)
2.29%, 11/01/33(b)(c) A-1 -- 1,500 1,500,000
- ---------------------------------------------------------------------------------------
Michigan (State of); Unlimited Tax Series
2004 A GO
3.50%, 09/30/05 SP-1+ MIG-1 40,000 40,283,819
- ---------------------------------------------------------------------------------------
Oakland (County of) Economic Development
Corp. (Rochester College Project); VRD
Limited Obligation Series 2001 RB (LOC-
JPMorgan Chase Bank)
2.30%, 08/01/21(b)(c) -- VMIG-1 6,900 6,900,000
- ---------------------------------------------------------------------------------------
Troy (City of) School District; Refunding
School Building & Site Unlimited Tax Series
2004 GO
3.00%, 05/01/05 AA Aa1 1,805 1,807,356
- ---------------------------------------------------------------------------------------
University of Michigan; VRD Hospital Series
1995 A RB
2.26%, 12/01/27(c) A-1+ VMIG-1 2,340 2,340,000
- ---------------------------------------------------------------------------------------
University of Michigan; VRD Medical Services
Plan Series 1995 A RB
2.26%, 12/01/27(c) A-1+ VMIG-1 3,160 3,160,000
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
<Caption>
MICHIGAN-(CONTINUED)
Wachovia MERLOTs (City of Detroit Sewage
Disposal System); VRD Series 2001 A112 RB
(Acquired 10/31/01; Cost $4,895,000)
2.35%, 07/01/32(c)(d)(e) -- VMIG-1 $ 4,895 $ 4,895,000
- ---------------------------------------------------------------------------------------
VRD Series 2003 B41 RB (Acquired 07/09/03;
Cost $6,755,000)
2.35%, 07/01/26(c)(d)(e) -- VMIG-1 6,755 6,755,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (City of Detroit Water
Supply System); VRD Series 2000 D RB
(Acquired 01/21/00; Cost $10,000,000)
2.35%, 07/01/29(c)(d)(e) -- VMIG-1 10,000 10,000,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (State of Michigan Hospital
Finance Authority); VRD Series 1997 X RB
(Acquired 12/12/03; Cost $15,000,000)
2.35%, 08/15/24(c)(d)(e) -- VMIG-1 15,000 15,000,000
=======================================================================================
164,291,784
=======================================================================================
MINNESOTA-3.59%
JPMorgan PUTTERs (State of Minnesota Public
Facilities Authority); VRD Drinking Water
Series 2002-319 COP (Acquired 07/31/03;
Cost $14,000,000)
2.30%, 03/01/21(c)(d)(e) A-1 -- 14,000 14,000,000
- ---------------------------------------------------------------------------------------
Minnesota (State of); Refunding Unlimited Tax
Series 2003 GO
2.00%, 08/01/05 AAA Aa1 2,240 2,244,075
- ---------------------------------------------------------------------------------------
Rochester (City of) Health Care Facilities
(Mayo Foundation); Commercial Paper Notes,
Adjustable Tender Series 1988 F
2.05%, 05/09/05 A-1+ -- 20,000 20,000,000
- ---------------------------------------------------------------------------------------
Series 2000 B
2.03%, 06/08/05 A-1+ -- 20,500 20,500,000
- ---------------------------------------------------------------------------------------
Series 2001 A
2.05%, 06/07/05 -- VMIG-1 15,000 15,000,000
- ---------------------------------------------------------------------------------------
Series 2001 B
2.05%, 06/07/05 -- VMIG-1 13,600 13,600,000
- ---------------------------------------------------------------------------------------
Series 2001 C
2.03%, 05/10/05 -- VMIG-1 17,600 17,600,000
- ---------------------------------------------------------------------------------------
St. Paul (City of) Housing & Redevelopment
Authority (Science Museum of Minnesota);
VRD Series 1997 A RB (LOC- U.S. Bank N.A.)
2.33%, 05/01/27(b)(c) -- VMIG-1 17,360 17,360,000
=======================================================================================
120,304,075
=======================================================================================
</Table>
F-12
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
MISSISSIPPI-2.17%
ABN AMRO Munitops Ctfs. Trust (State of
Mississippi Development Board-Jackson Water
& Sewer); Multi-State Non-AMT VRD Series
2002-22 Ctfs. (Acquired 09/10/03; Cost
$9,995,000)
2.33%, 09/01/10(c)(d)(e) -- VMIG-1 $ 9,995 $ 9,995,000
- ---------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (State of
Mississippi); VRD Unlimited Tax Series
2002-6018 A COP (Acquired 11/20/02; Cost
$3,200,000)
2.32%, 11/01/22(c)(d)(e) A-1+ -- 3,200 3,200,000
- ---------------------------------------------------------------------------------------
Mississippi (State of) Business Finance Corp.
(Jackson Medical Mall); VRD Series 2000 A
RB (LOC-JPMorgan Chase Bank)
2.30%, 11/01/18(b)(c) A-1 -- 5,300 5,300,000
- ---------------------------------------------------------------------------------------
Mississippi (State of) Business Finance Corp.
(Mississippi College Project); VRD Series
2003 RB (LOC-AmSouth Bank)
2.40%, 07/01/23(b)(c) -- VMIG-1 9,300 9,300,000
- ---------------------------------------------------------------------------------------
Perry (County of) (Leaf River Forest Products
Project); Refunding VRD Series 2002 PCR
(LOC- Citibank N.A.)
2.25%, 02/01/22(b)(c) A-1+ -- 36,500 36,500,000
- ---------------------------------------------------------------------------------------
University of Mississippi Educational
Building Corp. (Campus Improvements
Project); VRD Series 2000 RB
2.31%, 10/01/20(c)(f) -- VMIG-1 8,235 8,235,000
=======================================================================================
72,530,000
=======================================================================================
MISSOURI-1.15%
Missouri (State of) Development Finance Board
(Center of Creative Arts Project); Cultural
Facilities VRD Series 2004 RB (LOC-
National City Bank)
2.32%, 07/01/24(b)(c) -- VMIG-1 2,100 2,100,000
- ---------------------------------------------------------------------------------------
Missouri (State of) Health & Educational
Facilities Authority (Lutheran Senior
Services); Health Facilities VRD Series
2000 RB (LOC-U.S. Bank N.A.)
2.30%, 02/01/31(b)(c) -- VMIG-1 29,000 29,000,000
- ---------------------------------------------------------------------------------------
Missouri (State of) Health & Educational
Facilities Authority (Washington University
Project); Educational Facilities VRD Series
1985 B RB
2.33%, 09/01/10(c) A-1+ VMIG-1 1,100 1,100,000
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
<Caption>
MISSOURI-(CONTINUED)
Platte (County of) Industrial Development
Authority (Southern Platte County Athletic
Assoc. Inc.); Recreational Facilities VRD
Series 2005 A RB (LOC-Bank of America,
N.A.)
2.32%, 10/01/25(b)(c) -- VMIG-1 $ 2,140 $ 2,140,000
- ---------------------------------------------------------------------------------------
St. Louis (County of) Industrial Development
Authority (Friendship Village of South
County); VRD Series 2002 B IDR (LOC-ABN
AMRO Bank N.V.)
2.30%, 09/01/22(b)(c) A-1 -- 2,915 2,915,000
- ---------------------------------------------------------------------------------------
St. Louis (County of) Industrial Development
Authority (Whitfield School Inc.);
Educational Facilities Refunding VRD Series
2004 B IDR (LOC- U.S. Bank N.A.)
2.32%, 06/15/24(b)(c) A-1+ -- 1,400 1,400,000
=======================================================================================
38,655,000
=======================================================================================
MONTANA-0.34%
Montana (State of) Facility Finance Authority
(Mission Ridge Project); VRD Series 2002 RB
(LOC-ABN AMRO Bank N.V.)
2.31%, 08/01/27(b)(c)(j) -- -- 11,365 11,365,000
=======================================================================================
NEBRASKA-1.32%
Nebhelp Inc.; Multi-Mode VRD Series 1985 A RB
2.35%, 12/01/15(c)(f) A-1+ VMIG-1 5,995 5,995,000
- ---------------------------------------------------------------------------------------
VRD Series 1985 B RB
2.35%, 12/01/15(c)(f) A-1+ VMIG-1 3,590 3,590,000
- ---------------------------------------------------------------------------------------
VRD Series 1985 D RB
2.35%, 12/01/15(c)(f) A-1+ VMIG-1 5,865 5,865,000
- ---------------------------------------------------------------------------------------
VRD Series 1985 E RB
2.35%, 12/01/15(c)(f) A-1+ VMIG-1 28,635 28,635,000
=======================================================================================
44,085,000
=======================================================================================
NEVADA-0.48%
ABN AMRO Munitops Ctfs. Trust (County of
Washoe); Refunding VRD Limited Tax Series
2001-24 Single Asset Trust Ctfs. (Acquired
06/21/01; Cost $5,500,000)
2.33%, 07/01/09(c)(d)(e) -- VMIG-1 5,500 5,500,000
- ---------------------------------------------------------------------------------------
Carson (City of) (Tahoe Hospital Project);
Hospital VRD Series 2003 B RB (LOC- U.S.
Bank N.A.)
2.30%, 09/01/33(b)(c) A-1+ -- 10,500 10,500,000
=======================================================================================
16,000,000
=======================================================================================
</Table>
F-13
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
NEW HAMPSHIRE-0.69%
Morgan Stanley & Co. Inc. Trust Floater Ctfs.
(New Hampshire Higher Education & Health
Facilities Authority); Refunding VRD Series
2003-772 RB (Acquired 01/22/03; Cost
$5,475,000)
2.34%, 01/01/17(c)(d)(e) A-1 -- $ 5,475 $ 5,475,000
- ---------------------------------------------------------------------------------------
Morgan Stanley & Co. Inc. Trust Floater Ctfs.
(New Hampshire Higher Educational & Health
Facilities Authority); Refunding VRD Series
2003-866 RB (Acquired 10/23/03; Cost
$7,485,000)
2.34%, 08/15/21(c)(d)(e) A-1 -- 7,485 7,485,000
- ---------------------------------------------------------------------------------------
New Hampshire (State of) Higher Educational &
Health Facilities Authority (VHA-New
England Inc.); VRD Series 1985 G RB
2.30%, 12/01/25(c)(f) A-1+ -- 10,000 10,000,000
=======================================================================================
22,960,000
=======================================================================================
NEW JERSEY-0.13%
Salem (County of) Improvement Authority
(Friends Home at Woodstown Inc.); VRD
Series 2004 RB (LOC-Bank of America, N.A.)
2.30%, 04/01/34(b)(c) -- VMIG-1 4,440 4,440,000
=======================================================================================
NEW YORK-0.53%
ABN AMRO Munitops Ctfs. Trust (Triborough
Bridge & Tunnel Authority); Non-AMT VRD
Series 2002-31 Ctfs. (Acquired 03/24/04;
Cost $16,000,000)
2.30%, 11/15/10(c)(d)(e) -- VMIG-1 16,000 16,000,000
- ---------------------------------------------------------------------------------------
New York (State of) Dormitory Authority
(Rochester Institute of Technology); Series
1997 RB
6.00%, 08/15/05(f) AAA Aaa 1,815 1,841,296
=======================================================================================
17,841,296
=======================================================================================
NORTH CAROLINA-1.05%
North Carolina (State of) Capital Facilities
Finance Agency (Barton College);
Educational Facilities VRD Series 2004 RB
(LOC- Branch Banking & Trust Co.)
2.27%, 07/01/19(b)(c) -- VMIG-1 5,750 5,750,000
- ---------------------------------------------------------------------------------------
North Carolina (State of) Capital Facilities
Finance Agency (Elon College); VRD Series
2001 A RB (LOC-Bank of America, N.A.)
2.30%, 01/01/14(b)(c)(j) -- -- 8,115 8,115,000
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
<Caption>
NORTH CAROLINA-(CONTINUED)
North Carolina (State of) Capital Facilities
Finance Agency (Goodwill Community
Foundation Project); VRD Series 2002 RB
(LOC-Bank of America, N.A.)
2.30%, 04/01/22(b)(c)(j) -- -- $ 2,070 $ 2,070,000
- ---------------------------------------------------------------------------------------
North Carolina (State of) Capital Facilities
Finance Agency (Goodwill Industries of
Central North Carolina Inc.); VRD Series
2004 RB (LOC-Bank of America, N.A.)
2.30%, 12/01/24(b)(c)(j) -- -- 4,915 4,915,000
- ---------------------------------------------------------------------------------------
North Carolina (State of) Capital Facilities
Finance Agency (Thompson Children's Home);
Educational Facilities VRD Series 2000 RB
(LOC-Bank of America, N.A.)
2.30%, 12/01/20(b)(c)(j) -- -- 3,150 3,150,000
- ---------------------------------------------------------------------------------------
North Carolina (State of) Capital Facilities
Finance Agency (Wolfpack Club Project); VRD
Series 2002 RB (LOC-Bank of America, N.A.)
2.30%, 04/01/12(b)(c)(j) -- -- 6,800 6,800,000
- ---------------------------------------------------------------------------------------
North Carolina (State of) Medical Care
Commission; Refunding First Mortgage Health
Care Facilities VRD Series 2004 C RB (LOC-
SunTrust Bank)
2.27%, 11/01/27(b)(c) -- VMIG-1 3,500 3,500,000
- ---------------------------------------------------------------------------------------
University of North Carolina; VRD Series 2001
B RB
2.30%, 12/01/25(c) A-1+ VMIG-1 1,000 1,000,000
=======================================================================================
35,300,000
=======================================================================================
OHIO-3.66%
Akron, Bath & Copley (Townships of) Joint
Township Hospital District (Summa Health
Systems); VRD Series 2004 B RB (LOC-
JPMorgan Chase Bank)
2.29%, 11/01/34(b)(c) -- VMIG-1 5,000 5,000,000
- ---------------------------------------------------------------------------------------
Butler (County of) Health Care Facilities
(Lifesphere Project); Refunding &
Improvement VRD Series 2002 RB (LOC- U.S.
Bank N.A.)
2.30%, 05/01/27(b)(c) A-1+ -- 8,500 8,500,000
- ---------------------------------------------------------------------------------------
Cambridge (City of) Hospital Facilities
(Regional Medical Center Project);
Refunding & Improvement VRD Series 2001 RB
(LOC-National City Bank)
2.31%, 12/01/21(b)(c) -- VMIG-1 10,790 10,790,000
- ---------------------------------------------------------------------------------------
</Table>
F-14
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
OHIO-(CONTINUED)
Centerville (City of) (Bethany Lutheran
Village Project); Health Care VRD Series
1994 RB (LOC- National City Bank)
2.31%, 11/01/13(b)(c) -- VMIG-1 $ 2,905 $ 2,905,000
- ---------------------------------------------------------------------------------------
Cleveland Heights (City of); Limited Tax
Series 2004 BAN GO
2.00%, 08/18/05(p) -- -- 3,234 3,238,840
- ---------------------------------------------------------------------------------------
Cuyahoga (County of) Health Care Facilities
(Judson Retirement Community); Refunding
VRD Series 2000 RB (LOC-National City Bank)
2.31%, 11/15/19(b)(c) A-1 -- 700 700,000
- ---------------------------------------------------------------------------------------
Franklin (County of) Health Care Facilities
(First Community Village); Refunding &
Improvement VRD Series 2005 RB
(LOC-Sovereign Bank, KBC Bank N.V.)
2.33%, 03/01/36(b)(c) A-1+ -- 5,000 5,000,000
- ---------------------------------------------------------------------------------------
Lake (County of); Limited Tax Series 2004 BAN
GO
2.00%, 04/14/05(p) -- -- 5,250 5,251,154
- ---------------------------------------------------------------------------------------
Lorain (County of) (EMH Regional Medical
Center Project); Hospital Facilities VRD
Series 2001 RB (LOC-National City Bank)
2.34%, 05/01/26(b)(c)(p) -- -- 14,950 14,950,000
- ---------------------------------------------------------------------------------------
Mahoning (County of) Hospital Facilities
(Forum Health Obligation Group) VRD Series
1997 B RB
2.28%, 12/01/28(c)(f) A-1+ VMIG-1 19,100 19,100,000
- ---------------------------------------------------------------------------------------
VRD Series 2002 B RB (LOC- Fifth Third
Bank)
2.31%, 12/01/27(b)(c) -- VMIG-1 6,800 6,800,000
- ---------------------------------------------------------------------------------------
Marion (County of) (Pooled Lease Program);
Hospital Improvement VRD Series 1990 RB
(LOC- JPMorgan Chase Bank)
2.31%, 08/01/20(b)(c) A-1+ -- 1,325 1,325,000
- ---------------------------------------------------------------------------------------
Middleburg Heights (City of) (Southwest
General Health); Hospital Improvement
Series 1997 RB (LOC-Fifth Third Bank)
2.31%, 08/15/22(b)(c) A-1+ -- 5,405 5,405,000
- ---------------------------------------------------------------------------------------
Montgomery (County of) (St. Vincent DePaul
Society); Limited Obligation VRD Series
1996 RB (LOC-National City Bank)
2.31%, 12/01/10(b)(c) A-1 -- 1,735 1,735,000
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
<Caption>
OHIO-(CONTINUED)
Portage (County of) (Robinson Memorial
Hospital); Hospital VRD Series 2002 RB
(LOC-JPMorgan Chase Bank)
2.31%, 05/01/17(b)(c) -- VMIG-1 $ 6,255 $ 6,255,000
- ---------------------------------------------------------------------------------------
Reynoldsburg (City of) School District
(School Facilities Construction); Unlimited
Tax Series 2004 A BAN GO
2.75%, 06/24/05 -- MIG-1 5,900 5,910,765
- ---------------------------------------------------------------------------------------
Unlimited Tax Series 2005 BAN GO
3.00%, 06/24/05 -- MIG1 3,150 3,157,955
- ---------------------------------------------------------------------------------------
Solon (City of); Series 2004 BAN
2.75%, 12/01/05(p) -- -- 3,000 3,013,738
- ---------------------------------------------------------------------------------------
Toledo-Lucas (County of) Port Authority
(Franciscan Communities St. Mary of the
Woods Inc.); VRD Series 2004 C RB
(LOC-Sovereign Bank, Bank of Nova Scotia)
2.28%, 05/15/38(b)(c) A-1+ -- 10,700 10,700,000
- ---------------------------------------------------------------------------------------
Upper Arlington (City of); Street Improvement
Limited Tax Series 2005 BAN GO
3.00%, 01/10/06 -- MIG-1 1,802 1,813,655
- ---------------------------------------------------------------------------------------
Youngstown (City of) School District
(Classroom Facilities & School
Improvement); Unlimited Tax Series 2005 GO
3.00%, 12/01/05(f) AAA Aaa 1,000 1,005,299
=======================================================================================
122,556,406
=======================================================================================
OKLAHOMA-1.01%
Oklahoma (County of) Finance Authority
(Oxford Oaks Apartments Projects);
Refunding Multi-Family Housing VRD Series
2000 RB (CEP-Federal National Mortgage
Association)
2.30%, 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.)
2.38%, 06/01/11(b)(c) A-1+ -- 3,785 3,785,000
- ---------------------------------------------------------------------------------------
Tulsa (County of) Industrial Authority;
Capital Improvements Series 2003 B RB
4.00%, 05/15/05 AA- -- 2,500 2,507,347
=======================================================================================
33,987,347
=======================================================================================
</Table>
F-15
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
OREGON-0.75%
JPMorgan PUTTERs (City of Portland); Sewer
System VRD Series 2004 614 RB (Acquired
12/02/04; Cost $1,600,000)
2.32%, 10/01/12(c)(d)(e) -- VMIG-1 $ 1,600 $ 1,600,000
- ---------------------------------------------------------------------------------------
Oregon (State of) Health, Housing,
Educational & Cultural Facilities Authority
(Quatama Crossing LLC Housing Project); VRD
Series 1998 RB (LOC-U.S. Bank N.A.)
2.35%, 01/01/31(b)(c) -- Aa2 7,320 7,320,000
- ---------------------------------------------------------------------------------------
Oregon (State of) Housing & Community
Services Department Mortgage; Single Family
Mortgage Program Series 2004 O RN
2.00%, 06/01/05 -- MIG-1 2,300 2,300,000
- ---------------------------------------------------------------------------------------
Series 2004 O-2 RN
2.10%, 09/01/05 -- MIG-1 3,000 3,000,000
- ---------------------------------------------------------------------------------------
Oregon (State of); Series 2004 A TAN
3.00%, 06/30/05 SP-1+ MIG-1 6,500 6,519,573
- ---------------------------------------------------------------------------------------
Portland (City of) Housing Authority
(Riverwood Project); Refunding Multi-Family
Series 1995 RB
6.00%, 01/01/06(g)(i) AAA NRR 1,170 1,202,371
- ---------------------------------------------------------------------------------------
Portland (City of); Unlimited Tax Series 1995
B GO
5.75%, 06/01/05(g)(i) NRR Aaa 2,000 2,012,136
- ---------------------------------------------------------------------------------------
Salem (City of) Water & Sewer; Refunding
Series 2004 RB
3.00%, 05/01/05(f) AAA Aaa 1,175 1,176,383
=======================================================================================
25,130,463
=======================================================================================
PENNSYLVANIA-3.07%
ABN AMRO Munitops Ctfs. Trust (City of
Reading School District); Non-AMT VRD
Series 2003-20 Ctfs. (Acquired 03/02/05;
Cost $4,225,000)
2.32%, 07/15/11(c)(d)(e)(j) -- -- 4,225 4,225,000
- ---------------------------------------------------------------------------------------
ABN AMRO Munitops Ctfs. Trust (State of
Pennsylvania Public School Building
Authority); Non-AMT VRD Series 2001-30
Ctfs. (Acquired 10/31/02; Cost $5,000,000)
2.32%, 09/01/09(c)(d)(e) -- VMIG-1 5,000 5,000,000
- ---------------------------------------------------------------------------------------
Series 2003-24 Ctfs. (Acquired 03/08/04;
Cost $7,000,000)
2.32%, 06/01/11(c)(d)(e) -- VMIG-1 7,000 7,000,000
- ---------------------------------------------------------------------------------------
Allegheny (County of) Industrial Development
Authority (Carnegie Museums of Pittsburgh);
VRD Series 2002 IDR (LOC-Royal Bank of
Scotland)
2.40%, 08/01/32(b)(c) -- VMIG-1 2,000 2,000,000
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
<Caption>
PENNSYLVANIA-(CONTINUED)
Berks (County of) Industrial Development
Authority (Lutheran Services); Health Care
VRD Series 1998 A IDR
2.29%, 01/01/28(c)(f) -- VMIG-1 $ 9,995 $ 9,995,000
- ---------------------------------------------------------------------------------------
Chartiers Valley (Community of) Industrial &
Commercial Development Authority (Asbury
Villas Project); VRD Series 2000 B IDR
(LOC-ABN AMRO Bank N.V.)
2.31%, 12/01/30(b)(c) A-1 -- 3,000 3,000,000
- ---------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (Delaware Valley
Regional); VRD Series 2001-3801 COP
(Acquired 06/04/01; Cost $8,900,000)
2.31%, 08/01/28(c)(d)(e) A-1+ -- 8,900 8,900,000
- ---------------------------------------------------------------------------------------
Franklin (County of) Industrial Development
Authority (Chambersburg Hospital
Obligation); Health Care VRD Series 2000
IDR
2.38%, 12/01/24(c)(f) A-1 -- 3,385 3,385,000
- ---------------------------------------------------------------------------------------
Geisinger (City of) Authority (Geisinger
Health System); VRD Series 2002 RB
2.30%, 11/15/32(k) A-1+ VMIG-1 12,200 12,200,000
- ---------------------------------------------------------------------------------------
Lehigh (County of) Industrial Development
Authority (Allegheny Electric Coop. Inc.);
Refunding VRD Series 1984 PCR (LOC-
Rabobank Nederland)
2.05%, 06/01/14(b)(m) A-1+ -- 1,030 1,030,000
- ---------------------------------------------------------------------------------------
VRD Series 1984 PCR (LOC- Rabobank
Nederland)
2.05%, 10/01/14(b)(m) A-1+ -- 7,180 7,180,000
- ---------------------------------------------------------------------------------------
Montgomery (County of) Higher Education &
Health Authority (Holy Redeemer Health
System); Health Care Series 1997 A RB
5.50%, 10/01/05(f) AAA Aaa 2,240 2,276,734
- ---------------------------------------------------------------------------------------
Pennsylvania (State of) Higher Educational
Facilities Authority (Washington &
Jefferson Development); VRD Series 2005 A
RB (LOC-Sovereign Bank, Uncredito Italiano
S.p.A.)
2.25%, 11/01/36(b)(c) -- VMIG-1 3,000 3,000,000
- ---------------------------------------------------------------------------------------
Philadelphia (City of) Hospitals & Higher
Education of Facilities Authority
(Children's Hospital of Philadelphia
Project); Hospital VRD Series 2002 A RB
2.28%, 07/01/22(k) A-1+ VMIG-1 8,400 8,400,000
- ---------------------------------------------------------------------------------------
</Table>
F-16
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
PENNSYLVANIA-(CONTINUED)
Sayre (City of) Health Care Facilities
Authority (VHR of Pennsylvania Capital
Financing Project); VRD Series 1985 K RB
2.30%, 12/01/20(c)(f) A-1+ Aaa $19,800 $ 19,800,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (City of Scranton & County
of Lackawanna Health & Welfare Authority);
VRD Series 2002 A-18 RB (Acquired 03/22/02;
Cost $5,120,000)
2.35%, 03/01/15(c)(d)(e) -- VMIG-1 5,120 5,120,000
=======================================================================================
102,511,734
=======================================================================================
SOUTH CAROLINA-1.91%
Cherokee (County of) (Newark Electronics
Division); Industrial VRD Series 1985 RB
(LOC-ABN AMRO Bank N.V.)
2.30%, 12/01/15(b)(c) A-1 -- 6,500 6,500,000
- ---------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (State of South
Carolina Public Service Authority); VRD
Series 2000-4001 A COP (Acquired 09/08/00;
Cost $10,100,000)
2.32%, 01/01/22(c)(d)(e) A-1+ -- 10,100 10,100,000
- ---------------------------------------------------------------------------------------
Horry (County of) School District; Unlimited
Tax Series 2004 GO BAN
3.50%, 09/01/05 SP-1 MIG-1 10,000 10,070,209
- ---------------------------------------------------------------------------------------
Morgan Stanley & Co. Inc. Trust Floater Ctfs.
(State of South Carolina Transportation
Infrastructure Bank); Floating Rate Trust
Ctfs. VRD Series 2002-728 RB (Acquired
11/13/02; Cost $7,185,000)
2.32%, 10/01/22(c)(d)(e) -- VMIG-1 7,185 7,185,000
- ---------------------------------------------------------------------------------------
South Carolina (State of) Educational
Facilities Authority for Non-Profit
Institutions (Morris College Project); VRD
Series 1997 RB (LOC-Bank of America, N.A.)
(Acquired 07/30/02; Cost $2,100,000)
2.35%, 07/01/17(b)(c)(e) A-1+ -- 2,100 2,100,000
- ---------------------------------------------------------------------------------------
South Carolina (State of) Educational
Facilities Authority for Non-Profit
Institutions (The Allen University
Project); VRD Series 1998 RB (LOC-Bank of
America, N.A.) (Acquired 03/27/01; Cost
$2,525,000)
2.35%, 09/01/18(b)(c)(e) A-1+ -- 2,525 2,525,000
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
<Caption>
- ---------------------------------------------------------------------------------------
SOUTH CAROLINA-(CONTINUED)
South Carolina (State of) Jobs-Economic
Development Authority (Carolina Children's
Home Project); VRD Series 2003 RB
(LOC-Branch Banking & Trust Co.)
2.27%, 03/01/23(b)(c) -- VMIG-1 $ 3,365 $ 3,365,000
- ---------------------------------------------------------------------------------------
South Carolina (State of) Jobs-Economic
Development Authority (Carolina Piedmont
Foundation Project); VRD Series 2002 RB
(LOC-Bank of America, N.A.)
2.35%, 09/01/32(b)(c) -- -- 4,000 4,000,000
- ---------------------------------------------------------------------------------------
South Carolina (State of) Jobs-Economic
Development Authority (Catholic Diocese of
South Carolina Project); VRD Series 1998 RB
(LOC-Bank of America, N.A.) (Acquired
07/23/02; Cost $2,555,000)
2.35%, 09/01/18(b)(c)(e) A-1+ -- 2,555 2,555,000
- ---------------------------------------------------------------------------------------
South Carolina (State of) Jobs-Economic
Development Authority (Presbyterian Home of
South Carolina Project); VRD Series 2003 A
RB (LOC-Wachovia Bank, N.A.)
2.35%, 04/01/20(b)(c) A-1 -- 4,070 4,070,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (State of South Carolina
Public Service Authority); VRD Series 2000
L RB (Acquired 02/25/00; Cost $11,590,000)
2.35%, 01/01/22(c)(d)(e) -- VMIG-1 11,590 11,590,000
=======================================================================================
64,060,209
=======================================================================================
SOUTH DAKOTA-0.09%
South Dakota (State of) Health & Educational
Facilities Authority (University of Sioux
Falls); VRD Series 2001 RB (LOC-Wells Fargo
Bank N.A.)
2.28%, 10/01/16(b)(c) A-1+ -- 3,155 3,155,000
=======================================================================================
TENNESSEE-5.14%
Clarksville (City of) Public Building
Authority (Tennessee Municipal Bond Fund);
Pooled Financing VRD Series 1999 RB
(LOC-Bank of America, N.A.) (Acquired
03/15/05; Cost $27,205,000)
2.30%, 06/01/29(b)(c)(e) -- VMIG-1 27,205 27,205,000
- ---------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Chattanooga);
VRD Series 2000-4202 A COP (Acquired
10/10/00; Cost $14,040,000)
2.32%, 10/01/27(c)(d)(e) A-1+ -- 14,040 14,040,000
- ---------------------------------------------------------------------------------------
</Table>
F-17
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
TENNESSEE-(CONTINUED)
Jackson (City of) Energy Authority; Electric
Systems VRD Series 2003 B RB
2.30%, 11/01/26(c)(f) -- VMIG-1 $12,200 $ 12,200,000
- ---------------------------------------------------------------------------------------
Jackson (City of) Health & Educational
Facilities Board (Trinity Christian
Academy); Educational Facilities VRD Series
2002 RB (LOC-AmSouth Bank)
2.40%, 03/01/22(b)(c) -- VMIG-1 5,295 5,295,000
- ---------------------------------------------------------------------------------------
Knox (County of) Health Educational & Housing
Facility Board (Volunteer Student Housing
LLC Project); Student Housing VRD Series
2002 RB (LOC- Wachovia Bank, N.A.)
2.29%, 09/01/34(b)(c) -- VMIG-1 26,625 26,625,000
- ---------------------------------------------------------------------------------------
Morgan Stanley & Co. Inc. Trust Floater Ctfs.
(City of Nashville & County of Davidson);
Unlimited Tax Series 2003-871 GO (Acquired
11/17/03; Cost $4,995,000)
2.32%, 10/15/10(c)(d)(e) -- VMIG-1 4,995 4,995,000
- ---------------------------------------------------------------------------------------
Nashville (City of) & Davidson (County of)
Metropolitan Government Health &
Educational Facilities Board (Adventist
Health System); VRD Series 1997 A RB
(LOC-SunTrust Bank)
2.28%, 11/15/27(b)(c) A-1+ VMIG-1 2,325 2,325,000
- ---------------------------------------------------------------------------------------
Nashville (City of) & Davidson (County of)
Metropolitan Government Health &
Educational Facilities Board (Ensworth
School Project); VRD Series 2002 RB
(LOC-SunTrust Bank)
2.29%, 12/01/27(b)(c) -- VMIG-1 7,675 7,675,000
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
<Caption>
- ---------------------------------------------------------------------------------------
TENNESSEE-(CONTINUED)
Sevier (County of) Public Building Authority
(Local Government Public Improvement); VRD
Series 1995 A RB
2.31%, 06/01/15(c)(f) -- VMIG-1 $ 5,230 $ 5,230,000
- ---------------------------------------------------------------------------------------
VRD Series 1995 B-2 RB
2.31%, 06/01/06(c)(f) -- VMIG-1 1,200 1,200,000
- ---------------------------------------------------------------------------------------
VRD Series 1997 I A-1 RB
2.31%, 06/01/22(c)(f) -- VMIG-1 5,900 5,900,000
- ---------------------------------------------------------------------------------------
VRD Series 1997 II E-1 RB
2.31%, 06/01/21(c)(f) -- VMIG-1 2,100 2,100,000
- ---------------------------------------------------------------------------------------
VRD Series 1997 II E-3 RB
2.31%, 06/01/10(c)(f) -- VMIG-1 1,485 1,485,000
- ---------------------------------------------------------------------------------------
VRD Series 1997 II E-5 RB
2.31%, 06/01/17(c)(f) -- VMIG-1 1,320 1,320,000
- ---------------------------------------------------------------------------------------
VRD Series 1997 II F-1 RB
2.31%, 06/01/17(c)(f) -- VMIG-1 1,190 1,190,000
- ---------------------------------------------------------------------------------------
VRD Series 1997 II F-5 RB
2.31%, 06/01/27(c)(f) -- VMIG-1 2,265 2,265,000
- ---------------------------------------------------------------------------------------
VRD Series 1998 III A-1 RB
2.31%, 06/01/07(c)(f) -- VMIG-1 14,950 14,950,000
- ---------------------------------------------------------------------------------------
VRD Series 1998 III A-3 RB
2.31%, 06/01/19(c)(f) -- VMIG-1 1,425 1,425,000
- ---------------------------------------------------------------------------------------
VRD Series 1998 III A-4 RB
2.31%, 06/01/17(c)(f) -- VMIG-1 300 300,000
- ---------------------------------------------------------------------------------------
VRD Series 1998 III B-2 RB
2.31%, 06/01/19(c)(f) -- VMIG-1 5,650 5,650,000
- ---------------------------------------------------------------------------------------
VRD Series 1998 III C-3 RB
2.31%, 06/01/18(c)(f) -- VMIG-1 3,475 3,475,000
- ---------------------------------------------------------------------------------------
VRD Series 1998 III C-4 RB
2.31%, 06/01/20(c)(f) -- VMIG-1 10,000 10,000,000
- ---------------------------------------------------------------------------------------
VRD Series 1999 II A-1 RB
2.31%, 06/01/24(c)(f) -- VMIG-1 6,300 6,300,000
- ---------------------------------------------------------------------------------------
VRD Series 1999 II B-1 RB
2.31%, 06/01/25(c)(f) -- VMIG-1 1,700 1,700,000
- ---------------------------------------------------------------------------------------
Shelby (County of) Health, Educational &
Housing Facilities Board (St. Benedict
Auburndale School); VRD Series 2003 RB
(LOC-AmSouth Bank)
2.32%, 05/01/33(b)(c) -- VMIG-1 5,000 5,000,000
- ---------------------------------------------------------------------------------------
Williamson (County of) Industrial Development
Board (Currey Ingram Academy); Educational
Facilities VRD Series 2003 RB (LOC-SunTrust
Bank)
2.35%, 04/01/23(b)(c) -- VMIG-1 2,400 2,400,000
=======================================================================================
172,250,000
=======================================================================================
</Table>
F-18
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
TEXAS-12.01%
ABN AMRO Munitops Ctfs. Trust (City of
Leander Independent School District);
Unlimited Multi-State Non-AMT VRD Series
2002-16 Ctfs. (Acquired 08/20/03; Cost
$5,395,000)
2.33%, 08/15/10(c)(d)(e) -- VMIG-1 $ 5,395 $ 5,395,000
- ---------------------------------------------------------------------------------------
Amarillo (City of) Health Facilities Corp.
(Panhandle Pooled Health Care); VRD Series
1985 RB (LOC-BNP Paribas)
2.42%, 05/31/25(b)(c) -- VMIG-1 655 655,000
- ---------------------------------------------------------------------------------------
Austin (City of); Refunding Utility System
Series 1995 RB
5.60%, 05/15/05(g)(i) AAA Aaa 5,000 5,025,074
- ---------------------------------------------------------------------------------------
Bell (County of) Health Facilities
Development Corp. (Scott & White Memorial
Hospital); VRD Series 2000 B-1 RB
2.30%, 08/15/29(f)(k) A-1+ VMIG-1 32,300 32,300,000
- ---------------------------------------------------------------------------------------
Bexar (County of) Health Facilities
Development Corp. (Air Force Village); VRD
Series 2000 RB (LOC-Bank of America, N.A.)
2.28%, 04/11/05(b)(c) A-1+ -- 9,500 9,500,000
- ---------------------------------------------------------------------------------------
Bexar (County of) Health Facilities
Development Corp. (Warm Springs
Rehabilitation Foundation); Health Care
System VRD Series 1997 RB (LOC-JPMorgan
Chase Bank)
2.35%, 09/01/27(b)(c) -- VMIG-1 3,435 3,435,000
- ---------------------------------------------------------------------------------------
Brownsville (City of) Utility Systems;
Refunding VRD Sub Lien Series 2001 A RB
2.05%, 06/21/05(f)(h)(l) A-1+ VMIG-1 3,000 3,000,000
- ---------------------------------------------------------------------------------------
Crawford (City of) Education Facilities Corp.
Package (University Parking System
Project); Refunding VRD Series 2004 A RB
(LOC-BNP Paribas)
2.38%, 05/01/35(b)(c) -- VMIG-1 5,000 5,000,000
- ---------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Houston
Airport); VRD Series 2000-4307 COP
(Acquired 11/15/00; Cost $15,750,000)
2.32%, 07/01/28(c)(d)(e) A-1+ -- 15,750 15,750,000
- ---------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Houston Water
& Sewer); VRD Series 1997-4305 A COP
(Acquired 04/27/99; Cost $14,005,000)
2.32%, 12/01/27(c)(d)(e) A-1+ -- 14,005 14,005,000
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
<Caption>
TEXAS-(CONTINUED)
Eagle Tax Exempt Trust (City of Houston Water
& Sewer); VRD Series 2002-6019 A COP
(Acquired 11/13/02; Cost $8,910,000)
2.32%, 12/01/30(c)(d)(e) A-1+ -- $ 8,910 $ 8,910,000
- ---------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (Harris County Toll
Road); VRD Series 2001-4305 COP (Acquired
05/08/01; Cost $7,390,000)
2.32%, 08/01/14(c)(d)(e) A-1+ -- 7,390 7,390,000
- ---------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (Harris County Toll
Road); VRD Series 2002-6012 A COP (Acquired
11/20/02; Cost $1,580,000)
2.32%, 08/15/30(c)(d)(e) A-1+ -- 1,580 1,580,000
- ---------------------------------------------------------------------------------------
Garland (City of) Industrial Development
Authority Inc. (Carroll Co. Project); VRD
Series 1984 IDR (LOC-Wells Fargo Bank N.A.)
(Acquired 09/03/03; Cost $2,300,000)
2.35%, 12/01/14(b)(c)(e) -- Aaa 2,300 2,300,000
- ---------------------------------------------------------------------------------------
Grand Prairie (City of) Housing Finance Corp.
(Lincoln Property Co.); Refunding
Multi-Family Housing VRD Series 1993 RB
(CEP-General Electric Corp.)
2.30%, 06/01/10(c) A-1+ -- 2,700 2,700,000
- ---------------------------------------------------------------------------------------
Grapevine (City of) Industrial Development
Corp. (Southern Air Transport); Refunding
Airport Series 1993 RB (LOC-JPMorgan Chase
Bank)
2.30%, 03/01/10(b)(c) A-1+ -- 2,300 2,300,000
- ---------------------------------------------------------------------------------------
Harris (County of) Cultural Education
Facilities Finance Corp. (Houston Music
Hall Foundation); VRD Series 1999 RB (LOC-
JPMorgan Chase Bank)
2.35%, 06/01/29(b)(c) A-1+ -- 700 700,000
- ---------------------------------------------------------------------------------------
Harris (County of) Health Facilities
Development Corp. (Texas Children's
Hospital Project); Refunding Hospital
Series 1995 RB
6.00%, 10/01/05(o) AAA Aaa 1,250 1,273,825
- ---------------------------------------------------------------------------------------
Harris (County of) Health Facilities
Development Corp. (Methodist Hospital);
Refunding VRD Series 2005 B RB
2.07%, 05/09/05(h)(l) A-1+ -- 11,800 11,800,000
- ---------------------------------------------------------------------------------------
Harris (County of) Hospital District; Sub.
Lien Commercial Paper Series A RN (LOC-Bank
of America, N.A.)
2.11%, 05/11/05(b) A-1+ -- 9,451 9,451,000
- ---------------------------------------------------------------------------------------
</Table>
F-19
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
TEXAS-(CONTINUED)
Harris (County of) Houston Texas Sports
Authority (Rodeo); Jr. Lein VRD Series 2001
C RB
2.30%, 11/15/30(c)(f) A-1+ VMIG-1 $ 6,300 $ 6,300,000
- ---------------------------------------------------------------------------------------
Hays (County of) Memorial Health Facilities
Development Corp. (Central Texas Medical
Center Project); Hospital VRD Series 1990 B
RB (LOC-SunTrust Bank)
2.30%, 11/15/14(b)(c) A-1+ -- 10,200 10,200,000
- ---------------------------------------------------------------------------------------
Hockley (County of) Industrial Development
Corp. (AMOCO Project); VRD Series 1985 PCR
1.80%, 05/01/05(g)(h) A-1+ P-1 10,000 10,000,000
- ---------------------------------------------------------------------------------------
Hockley (County of) Industrial Development
Corp. (AMOCO Project-Standard Oil Co.); VRD
Series 1983 PCR
2.10%, 09/01/05(g)(h) A-1+ Aa1 12,775 12,775,000
- ---------------------------------------------------------------------------------------
Houston (City of) Higher Education Finance
Corp. (Houston Baptist University); Higher
Education Refunding VRD Series 2000 RB
(LOC-JPMorgan Chase Bank)
2.35%, 07/01/20(b)(c)(j) -- -- 3,665 3,665,000
- ---------------------------------------------------------------------------------------
Houston (City of) Independent School District
(Schoolhouse); Limited Tax Series 2004 GO
(CEP-Texas Permanent School Fund)
1.62%, 06/09/05(g)(l) A-1+ VMIG-1 15,000 15,000,000
- ---------------------------------------------------------------------------------------
Houston (City of); Commercial Paper Notes
Series 2003 A GO
1.95%, 04/07/05 A-1+ P-1 26,900 26,900,000
- ---------------------------------------------------------------------------------------
Series 2003 A GO
1.95%, 04/12/05 A-1+ P-1 24,000 24,000,000
- ---------------------------------------------------------------------------------------
Humble (City of) Independent School District;
School Building VRD Limited Tax Series 2003
GO (CEP-Texas Permanent School Fund)
2.28%, 06/15/23(c) A-1+ VMIG-1 13,000 13,000,000
- ---------------------------------------------------------------------------------------
JPMorgan PUTTERs (City of Boerne Independent
School District); VRD Series 2005 752 GO
(Acquired 03/09/05; Cost $2,640,000)
2.32%, 02/01/11(c)(d)(e) A-1+ -- 2,640 2,640,000
- ---------------------------------------------------------------------------------------
JPMorgan PUTTERs (County of Bexar); Limited
Tax VRD Series 2004 530 GO (Acquired
10/28/04; Cost $4,645,000)
2.32%, 06/15/12(c)(d)(e) -- VMIG-1 4,645 4,645,000
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
<Caption>
- ---------------------------------------------------------------------------------------
TEXAS-(CONTINUED)
Merrill Lynch P-Floats (City of Brazosport
Independent School District); Refunding
Unlimited Tax VRD Series 2003 PT-1690 GO
(Acquired 02/20/03; Cost $4,898,000)
2.32%, 08/15/10(c)(d)(e) -- VMIG-1 $ 4,898 $ 4,898,000
- ---------------------------------------------------------------------------------------
Merrill Lynch P-Floats (Harris County
Hospital District); VRD Series 2002 PT-665
RB (Acquired 10/02/02; Cost $5,935,000)
2.32%, 08/15/08(c)(d)(e) A-1+ -- 5,935 5,935,000
- ---------------------------------------------------------------------------------------
Northside Independent School District;
Refunding Unlimited Tax VRD Series 2003 B
GO (CEP- Texas Permanent School Fund)
1.75%, 08/01/05(g)(l) A-1+ VMIG-1 1,870 1,870,000
- ---------------------------------------------------------------------------------------
San Antonio (City of) Water & Sewer System;
Commercial Paper Notes Series 2001 A GO
(Acquired 01/26/05; Cost $29,900,000)
2.00%, 05/17/05(e) A-1+ P-1 29,900 29,900,000
- ---------------------------------------------------------------------------------------
Sherman (City of) Higher Education Finance
Corp. (Austin College Project); Higher
Education VRD Series 1997 RB (LOC-Bank of
America, N.A.)
2.35%, 01/01/18(b)(c) A-1+ -- 12,800 12,800,000
- ---------------------------------------------------------------------------------------
Texas (State of); Series 2004 TRAN
3.00%, 08/31/05 SP-1+ MIG-1 40,000 40,225,139
- ---------------------------------------------------------------------------------------
University of Texas Board of Regents (Revenue
Financing System); Commercial Paper Notes
Series A
2.05%, 05/17/05 A-1+ P-1 7,650 7,650,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (City of Austin); VRD Series
2000 A26 RB (Acquired 11/09/04; Cost
$9,230,000)
2.11%, 11/10/05(d)(e)(g)(l)(n) -- VMIG-1 9,230 9,230,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (Harris County Toll Road);
VRD Series 2003 B16 RB (Acquired 02/19/03;
Cost $3,015,000)
2.35%, 08/15/25(c)(d)(e) -- VMIG-1 3,015 3,015,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (Jefferson County Health
Facilities Development Corp.); VRD Series
2001 A83 RB (Acquired 11/18/03; Cost
$3,565,000)
2.11%, 11/16/05(d)(e)(g)(l)(n) A-1 -- 3,565 3,565,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (Southeast Texas Housing
Finance Corp.); VRD Series 2001 A18 RB
(Acquired 11/18/03; Cost $3,430,000)
2.11%, 11/16/05(d)(e)(g)(l)(n) A-1 -- 3,430 3,430,000
- ---------------------------------------------------------------------------------------
</Table>
F-20
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
TEXAS-(CONTINUED)
Wachovia MERLOTs (University of Texas);
Refunding VRD Series 2003 B14 RB (Acquired
01/29/03; Cost $8,000,000)
2.35%, 08/15/22(c)(d)(e) -- VMIG-1 $ 8,000 $ 8,000,000
=======================================================================================
402,113,038
=======================================================================================
UTAH-2.13%
Merrill Lynch P-Floats (City of Murray
Hospital); VRD Series 2002 PA-1066 RB
(Acquired 10/02/02; Cost $5,995,000)
2.32%, 05/15/22(c)(d)(e) A-1 -- 5,995 5,995,000
- ---------------------------------------------------------------------------------------
Salt Lake (City of) (Gateway Project);
Special Assessment VRD Series 2003
(LOC-Citibank N.A.)
2.30%, 12/01/23(b)(c) A-1+ -- 7,200 7,200,000
- ---------------------------------------------------------------------------------------
Sanpete (County of) School Facilities
(Wasatch Academy); VRD Series 2003 RB (LOC-
U.S. Bank N.A.)
2.33%, 08/01/28(b)(c) A-1+ -- 900 900,000
- ---------------------------------------------------------------------------------------
St. George (City of) (OK Foundation
Projects); Sr. Housing VRD Series 2004 A RB
(CEP-Federal National Mortgage Association)
2.28%, 12/15/29(c) A-1+ -- 30,640 30,640,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (Intermountain Power
Agency); Power Supply VRD Series 2002 A59
RB (Acquired 10/23/02; Cost $6,960,000)
2.35%, 07/01/10(c)(d)(e) -- VMIG-1 6,960 6,960,000
- ---------------------------------------------------------------------------------------
Weber (County of) (IHC Health Service); VRD
Series 2000 C RB
2.30%, 02/15/35(k) A-1+ VMIG-1 10,000 10,000,000
- ---------------------------------------------------------------------------------------
West Jordan (City of) (Broadmoor Village
Apartments LLC Project); Refunding
Multi-Family Housing VRD Series 2004 RB
(CEP- Federal Home Loan Mortgage Corp.)
2.30%, 12/01/34(c) A-1+ -- 9,675 9,675,000
=======================================================================================
71,370,000
=======================================================================================
VERMONT-0.08%
Vermont (State of) Student Assistance Corp.;
Student Loan VRD Series 1985 RB (LOC-State
Street Bank & Trust Co.)
2.05%, 01/01/08(b)(m) -- VMIG-1 2,640 2,640,000
=======================================================================================
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
<Caption>
- ---------------------------------------------------------------------------------------
VIRGINIA-1.05%
Henrico (County of) Economic Development
Authority (Westminster Canterbury);
Residential Care Facilities VRD Series 2003
B RB (LOC-KBC Bank N.V.)
2.29%, 07/01/08(b)(c) -- VMIG-1 $17,100 $ 17,100,000
- ---------------------------------------------------------------------------------------
Lynchburg (City of) Industrial Development
Authority (Lynchburg College); VRD Series
2004 RB (LOC-SunTrust Bank)
2.29%, 12/01/34(b)(c) -- VMIG-1 6,275 6,275,000
- ---------------------------------------------------------------------------------------
Newport News (City of) Redevelopment &
Housing Authority (Springhouse Apartments
Project); Multi-Family Housing VRD Series
2001 RB (CEP-Federal Home Loan Mortgage
Corp.)
2.30%, 09/01/26(c) A-1+ -- 2,000 2,000,000
- ---------------------------------------------------------------------------------------
Norfolk (City of) Redevelopment & Housing
Authority (E2F Student Housing LLC
Project); VRD Series 2005 RB (LOC-Bank of
America, N.A.)
2.30%, 07/01/34(b)(c) -- VMIG-1 7,000 7,000,000
- ---------------------------------------------------------------------------------------
Rockingham (County of) Industrial Development
Authority (Sunnyside Presbyterian Home);
Residential Care Facilities VRD Series 2003
RB (LOC-Branch Banking & Trust Co.)
2.27%, 12/01/33(b)(c) A-1 -- 750 750,000
- ---------------------------------------------------------------------------------------
Suffolk (City of) Redevelopment & Housing
Authority (Oak Springs Apartments);
Multi-Family Housing VRD Series 1999 RB
(CEP-Federal Home Loan Mortgage Corp.)
2.30%, 04/11/05(c) -- VMIG-1 1,900 1,900,000
=======================================================================================
35,025,000
=======================================================================================
WASHINGTON-6.72%
ABN AMRO Munitops Ctfs. Trust (City of
Seattle Municipal Light & Power);
Multi-State Non-AMT VRD Series 2002-12
Ctfs. (Acquired 05/25/04; Cost $9,755,000)
2.33%, 03/01/09(c)(d)(e) -- VMIG-1 9,755 9,755,000
- ---------------------------------------------------------------------------------------
ABN AMRO Munitops Ctfs. Trust (City of
Seattle); Multi-State Non-AMT VRD Limited
Tax Series 2003-7 GO Ctfs. (Acquired
05/13/03; Cost $10,685,000)
2.33%, 07/01/10(c)(d)(e)(j) -- -- 10,685 10,685,000
- ---------------------------------------------------------------------------------------
</Table>
F-21
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
WASHINGTON-(CONTINUED)
ABN AMRO Munitops Ctfs. Trust (King County);
Multi-State Non-AMT VRD Limited Tax Series
2001-1 GO Ctfs. (Acquired 01/04/01; Cost
$10,000,000)
2.33%, 07/01/06(c)(d)(e) -- VMIG-1 $10,000 $ 10,000,000
- ---------------------------------------------------------------------------------------
Bremerton (City of) (Kitsap Regional
Conference Center); VRD Series 2003 RB
(LOC-Bank of America, N.A.)
2.35%, 12/01/28(b)(c)(j) -- -- 2,565 2,565,000
- ---------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (State of Washington
Public Power Supply Systems Project No. 2);
VRD Series 1996-4703 A COP (Acquired
05/02/01; Cost $5,870,000)
2.32%, 07/01/11(c)(d)(e) A-1+ -- 5,870 5,870,000
- ---------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (State of Washington);
VRD Series 1998-4701 A COP (Acquired
07/20/00; Cost $14,400,000)
2.32%, 05/01/18(c)(d)(e) A-1+ -- 14,400 14,400,000
- ---------------------------------------------------------------------------------------
Everett (City of); Limited Tax VRD Series
2001 GO (LOC-Bank of America, N.A.)
2.35%, 12/01/21(b)(c)(j) -- -- 2,600 2,600,000
- ---------------------------------------------------------------------------------------
Everett (City of) Public Facilities District;
Commercial Paper Notes (LOC-Bank of
America, N.A.)
2.08%, 06/09/05(b) A-1+ -- 34,700 34,700,000
- ---------------------------------------------------------------------------------------
Everett (City of) Public Facilities District;
Commercial Paper TRAN (LOC-Bank of America,
N.A.)
2.08%, 06/09/05(b) A-1+ P-1 16,800 16,800,000
- ---------------------------------------------------------------------------------------
Issaquah (City of) Community Properties; VRD
Special Revenue Series 2001 A RB (LOC-Bank
of America, N.A.)
2.30%, 02/15/21(b)(c) -- VMIG-1 10,150 10,150,000
- ---------------------------------------------------------------------------------------
JPMorgan PUTTERs (State of Washington);
Unlimited Tax VRD Series 2004 593 GO
(Acquired 11/18/04; Cost $1,500,000)
2.32%, 07/01/12(c)(d)(e) -- VMIG-1 1,500 1,500,000
- ---------------------------------------------------------------------------------------
King (County of) Economic Enterprise Corp.
(Puget Sound Blood Center Project); VRD
Series 1998 RB (LOC-U.S. Bank N.A.)
2.35%, 04/01/23(b)(c) -- VMIG-1 3,700 3,700,000
- ---------------------------------------------------------------------------------------
King (County of) Water & Sewer; VRD Jr. Lien
Series 2001 B RB(LOC-Landesbank Hessen-
Thuringen Girozentrale)
2.27%, 01/01/32(b)(c) A-1+ VMIG-1 2,000 2,000,000
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
<Caption>
- ---------------------------------------------------------------------------------------
WASHINGTON-(CONTINUED)
Lake Tapps Parkway Properties; Special
Revenue VRD Series 1999 A RB (LOC- U.S.
Bank N.A.)
2.32%, 12/01/19(b)(c) -- VMIG-1 $11,800 $ 11,800,000
- ---------------------------------------------------------------------------------------
Lake Tapps Parkway Properties; Special
Revenue VRD Series 1999 B RB (LOC- U.S.
Bank N.A.)
2.32%, 12/01/19(b)(c) -- VMIG-1 800 800,000
- ---------------------------------------------------------------------------------------
Morgan Stanley & Co. Inc. Trust Floater Ctfs.
(Port of Seattle); VRD Series 2002-739D RB
(Acquired 07/21/04; Cost $5,000,000)
2.32%, 09/01/20(c)(d)(e) A-1 -- 5,000 5,000,000
- ---------------------------------------------------------------------------------------
Pierce (County of) Economic Development Corp.
(Weyerhaeuser Real Estate); Special Revenue
VRD Series 1997 RB (LOC-Bank of America,
N.A.)
2.35%, 01/01/27(b)(c) A-1+ VMIG-1 12,705 12,705,000
- ---------------------------------------------------------------------------------------
Seattle (City of) Housing Authority (Bayview
Manor Project); Low Income Housing
Assistance VRD Series 1994 B RB (LOC- U.S.
Bank N.A.)
2.35%, 05/01/19(b)(c) A-1+ -- 2,340 2,340,000
- ---------------------------------------------------------------------------------------
Seattle (City of) Housing Authority (Pioneer
Human Services Project); Refunding VRD
Series 1995 RB (LOC-U.S. Bank N.A.)
2.35%, 12/01/15(b)(c) A-1+ -- 2,295 2,295,000
- ---------------------------------------------------------------------------------------
Seattle (Port of) Industrial Development
Corp. (Sysco Food Services Project);
Refunding VRD Series 1994 IDR
2.32%, 11/01/25(c) A-1+ VMIG-1 6,208 6,208,000
- ---------------------------------------------------------------------------------------
Snohomish (County of) Housing Authority (Ebey
Arms Centerhouse Project); Refunding
Housing VRD Series 2003 RB (LOC-Bank of
America, N.A.)
2.35%, 12/01/34(b)(c)(j) -- -- 6,245 6,245,000
- ---------------------------------------------------------------------------------------
Vancouver (City of) Housing Authority
(Village Park Apartments Project); Housing
VRD Series 2000 RB (LOC-U.S. Bank N.A.)
2.32%, 11/02/05(b)(c) A-1+ -- 1,340 1,340,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (Central Puget Sound
Regional Transit Authority); Sales Tax &
Motor VRD Series 2001 A46 RB (Acquired
11/12/03; Cost $6,270,000)
2.11%, 11/10/05(d)(e)(g)(l)(n) -- VMIG-1 6,270 6,270,000
- ---------------------------------------------------------------------------------------
</Table>
F-22
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
WASHINGTON-(CONTINUED)
Washington (State of) Economic Development
Finance Authority (Seadrunar Recycling LLC
Project); Economic Development VRD Series
2000 E RB (LOC- U.S. Bank N.A.)
2.35%, 08/01/25(b)(c) A-1+ -- $ 2,735 $ 2,735,000
- ---------------------------------------------------------------------------------------
Washington (State of) Health Care Facilities
Authority (National Healthcare Research &
Education Finance Corp.); Lease VRD Series
2000 RB (LOC-BNP Paribas)
2.30%, 01/01/32(b)(c) -- VMIG-1 6,800 6,800,000
- ---------------------------------------------------------------------------------------
Washington (State of) Higher Education
Facilities Authority (Cornish College Arts
Project); VRD Series 2003 A RB (LOC- Bank
of America, N.A.)
2.35%, 12/01/33(b)(c) -- VMIG-1 5,000 5,000,000
- ---------------------------------------------------------------------------------------
Washington (State of) Housing Finance
Commission (Hearthstone Project);
Non-Profit Revenue Refunding VRD Series
2004 RB (LOC-Bank of America, N.A.)
2.30%, 12/01/29(b)(c) A-1+ -- 12,000 12,000,000
- ---------------------------------------------------------------------------------------
Washington (State of) Housing Finance
Commission (Nikkei Concerns Project);
Non-Profit Housing VRD Series 1994 RB
(LOC-U.S. Bank N.A.)
2.35%, 10/01/19(b)(c) A-1+ -- 3,605 3,605,000
- ---------------------------------------------------------------------------------------
Washington (State of) Housing Finance
Commission (The Evergreen School Project);
Non-Profit VRD Series 2002 RB (LOC-Wells
Fargo Bank N.A.)
2.28%, 07/01/28(b)(c) A-1+ -- 2,660 2,660,000
- ---------------------------------------------------------------------------------------
Washington (State of) Housing Finance
Commission (University Preparatory Academy
Project); Non-Profit VRD Series 2000 RB
(LOC-Bank of America, N.A.)
2.35%, 07/01/30(b)(c) -- VMIG-1 1,250 1,250,000
- ---------------------------------------------------------------------------------------
Washington (State of) Housing Finance
Commission (YMCA of Columbia-Willamette);
Non-Profit Revenue VRD Series 1999 RB
(LOC-Wells Fargo Bank N.A.)
2.33%, 08/01/24(b)(c) A-1+ -- 2,300 2,300,000
- ---------------------------------------------------------------------------------------
Washington (State of) Public Power Supply
System (Nuclear Project No. 3); Refunding
Series 1993 C RB
5.00%, 07/01/05(f) AAA Aaa 3,850 3,878,185
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
<Caption>
- ---------------------------------------------------------------------------------------
WASHINGTON-(CONTINUED)
Washington (State of); Unlimited Tax Series
1995C, AT-8 & R-95B GO
5.90%, 07/01/05(g)(i) NRR NRR $ 5,000 $ 5,047,805
=======================================================================================
225,003,990
=======================================================================================
WEST VIRGINIA-0.19%
Monongalia (County of) Building Community
Hospital (Monongalia General Hospital);
Refunding VRD Series 2002 A RB
(LOC-JPMorgan Chase Bank)
2.29%, 07/01/17(b)(c) A-1+ VMIG-1 645 645,000
- ---------------------------------------------------------------------------------------
West Virginia (State of) Hospital Finance
Authority (VHA Mid-Atlantic/Cap); Hospital
VRD Series 1985 F RB
2.30%, 12/01/25(c)(f) A-1+ -- 5,700 5,700,000
=======================================================================================
6,345,000
=======================================================================================
WISCONSIN-3.39%
Kimberly (City of) (Fox Cities YMCA Project);
VRD Series 2002 RB (LOC-M&I Marshall &
Ilsley Bank)
2.35%, 04/01/32(b)(c) -- VMIG-1 1,940 1,940,000
- ---------------------------------------------------------------------------------------
Menomonee Falls (City of); Refunding Sewer
System Series 2004 RB
2.00%, 05/01/05(f) -- Aaa 1,425 1,425,652
- ---------------------------------------------------------------------------------------
Waukesha (County of); Promissory Notes
Unlimited Tax Series 2004 GO
2.00%, 04/01/05 -- Aaa 1,500 1,500,000
- ---------------------------------------------------------------------------------------
West Allis (City of) (State Fair Park
Exposition Center Inc.); VRD Series 2001 RB
(LOC- U.S. Bank N.A.)
2.35%, 08/01/28(b)(c) -- VMIG-1 2,300 2,300,000
- ---------------------------------------------------------------------------------------
Wind Point (City of) (Johnson Foundation
Project); VRD Series 2000 RB (LOC-Bank of
Montreal)
2.33%, 09/01/35(b)(c) A-1+ -- 4,665 4,665,000
- ---------------------------------------------------------------------------------------
Wisconsin (State of) Health & Educational
Facilities Authority (Eastcastle Place
Inc.); VRD Series 2004 C RB (LOC-ABN AMRO
Bank N.V.)
2.30%, 12/01/34(b)(c) A-1 -- 7,000 7,000,000
- ---------------------------------------------------------------------------------------
Wisconsin (State of) Health & Educational
Facilities Authority (Mequon Jewish
Project); VRD Series 2003 RB (LOC-JPMorgan
Chase Bank)
2.32%, 07/01/28(b)(c) -- VMIG-1 2,150 2,150,000
- ---------------------------------------------------------------------------------------
</Table>
F-23
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
WISCONSIN-(CONTINUED)
Wisconsin (State of) Health & Educational
Facilities Authority (Mercy Health System);
Pooled Loan VRD Series 2003 I RB (LOC-M&I
Marshall & Ilsley Bank)
2.33%, 06/01/23(b)(c) -- VMIG-1 $ 9,570 $ 9,570,000
- ---------------------------------------------------------------------------------------
Wisconsin (State of) Health & Educational
Facilities Authority (Mercy Health System);
VRD Series 2003 C RB (LOC-M&I Marshall &
Ilsley Bank)
2.31%, 08/15/23(b)(c) -- VMIG-1 7,300 7,300,000
- ---------------------------------------------------------------------------------------
Wisconsin (State of) Health & Educational
Facilities Authority (Sinai Samaritan
Medical Center Inc.); VRD Series 1994 A RB
(LOC-M&I Marshall & Ilsley Bank)
2.31%, 09/01/19(b)(c) A-1 -- 5,649 5,649,000
- ---------------------------------------------------------------------------------------
Wisconsin (State of) Health & Educational
Facilities Authority (St. John's Home);
Pooled Loan VRD Series 2003 J RB (LOC-M&I
Marshall & Ilsley Bank)
2.33%, 07/01/23(b)(c) -- VMIG-1 4,250 4,250,000
- ---------------------------------------------------------------------------------------
Wisconsin (State of) Health & Educational
Facilities Authority (St. Luke's Medical
Center); VRD Series 1987 RB (LOC-KBC Bank
N.V.) (Acquired 06/01/04; Cost $28,600,000)
2.30%, 12/01/17(b)(c)(e) A-1 -- 28,600 28,600,000
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
<Caption>
- ---------------------------------------------------------------------------------------
WISCONSIN-(CONTINUED)
Wisconsin (State of) Health & Educational
Facilities Authority (St. Mary's School);
VRD Series 2004 RB (LOC-M&I Marshall &
Ilsley Bank)
2.31%, 08/01/19(b)(c) A-1 -- $ 2,695 $ 2,695,000
- ---------------------------------------------------------------------------------------
Wisconsin (State of) Petroleum Inspection
Fee; Series 2000 A RB
5.75%, 07/01/05(g)(i) AA- Aa3 8,000 8,235,885
- ---------------------------------------------------------------------------------------
Wisconsin (State of) School Districts Cash
Flow Management Program; Series 2004 A-1
COP
3.00%, 09/20/05(p) -- -- 8,000 8,048,916
- ---------------------------------------------------------------------------------------
Wisconsin (State of) School Districts Cash
Flow Management Program; Series 2004 B-1
COP
3.50%, 11/01/05 -- MIG-1 15,000 15,116,273
- ---------------------------------------------------------------------------------------
Wisconsin (State of); Unlimited Tax Series
1995 A GO
6.10%, 05/01/05(g)(i) NRR Aaa 3,000 3,012,436
=======================================================================================
113,458,162
=======================================================================================
TOTAL INVESTMENTS-99.22% (Cost
$3,322,342,840)(q) 3,322,342,840
=======================================================================================
OTHER ASSETS LESS LIABILITIES-0.78% 26,258,985
=======================================================================================
NET ASSETS-100.00% $3,348,601,825
_______________________________________________________________________________________
=======================================================================================
</Table>
Investment Abbreviations:
<Table>
ACES - Automatically Convertible Extendable Security
AMT - Alternative Minimum Tax
BAN - Bond Anticipation Note
CEP - Credit Enhancement Provider
COP - Certificate of Participation
Ctfs. - Certificates
GO - General Obligation Bonds
IDR - Industrial Development Revenue Bonds
Jr. - Junior
LOC - Letter of Credit
MERLOT - Municipal Exempt Receipts Liquidity Optional Tender
NRR - Not Re-Rated
P-Floats - Puttable Floating Option Tax-Exempt Receipt
PCR - Pollution Control Revenue Bonds
PUTTERs - Putable Tax Exempt Receipts
RAN - Revenue Anticipation Notes
RB - Revenue Bonds
RN - Revenue Notes
Sr. - Senior
Sub. - Subordinated
TAN - Tax Anticipation Notes
TRAN - Tax and Revenue Anticipation Notes
VRD - Variable Rate Demand
Wts. - Warrants
</Table>
F-24
Notes to Schedule of Investments:
(a) Ratings assigned by Standard & Poor's Corporation ("S&P") and Moody's
Investors Service, Inc. ("Moody's"), except as indicated in note (j) and (p)
below. NRR indicates a security that is not re-rated subsequent to funding
of an escrow fund (consisting of U.S. Treasury obligations held by a bank
custodian); this funding is pursuant to an advance refunding of this
security. Ratings are not covered by the Report of Independent Registered
Public Accounting Firm.
(b) Principal and interest payments are fully enhanced by a letter of credit
from the bank listed or a predecessor bank, branch or subsidiary.
(c) Demand security; payable upon demand by the Fund at specified time intervals
no greater than thirteen months. Interest rate is redetermined weekly. Rate
shown is the rate in effect on March 31, 2005.
(d) Synthetic municipal instruments; 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.
(e) 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 March 31, 2005 was
$768,868,000, which represented 22.96% of the Fund's Net Assets. Unless
otherwise indicated, these securities are not considered to be illiquid.
(f) Principal and/or 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.
(g) Security has an irrevocable call or mandatory put by the issuer. Maturity
date reflects such call or put.
(h) Demand security; payable upon demand by the Fund at specified time intervals
no greater than thirteen months. Interest rate is redetermined
semi-annually. Rate shown is the rate in effect on March 31, 2005.
(i) Advance refunded; secured by an escrow fund of U.S. Treasury obligations.
(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 rate is redetermined daily. Rate
shown is the rate in effect on March 31, 2005.
(l) Demand security; payable upon demand by the Fund at specified time intervals
no greater than thirteen months. Interest rate is redetermined at
intermittent intervals. Rate shown is the rate in effect on March 31, 2005.
(m) Demand security; payable upon demand by the Fund at specified time intervals
no greater than thirteen months. Interest rate is redetermined monthly. Rate
shown is the rate in effect on March 31, 2005.
(n) Security considered to be illiquid; the portfolio is limited to investing
10% of Net Assets in illiquid securities. The aggregate market value of
these securities considered illiquid at March 31, 2005 was $58,515,000,
which represented 1.75% of the Fund's Net Assets.
(o) Secured by an escrow fund of U.S. Treasury obligations.
(p) Determined by the investment advisor to be of comparable quality to the
rated securities in which the Fund may invest, pursuant to guidelines of
quality adopted by the Board of Trustees and followed by the investment
advisor.
(q) Also represents cost for federal income tax purposes.
See accompanying notes which are an integral part of the financial statements.
F-25
STATEMENT OF ASSETS AND LIABILITIES
March 31, 2005
<Table>
ASSETS:
Investments, at value (cost $3,322,342,840) $3,322,342,840
- ------------------------------------------------------------
Cash 11,284,350
- ------------------------------------------------------------
Receivables for:
Investments sold 6,190,049
- ------------------------------------------------------------
Interest 13,396,750
- ------------------------------------------------------------
Amount due from advisor 94,353
- ------------------------------------------------------------
Investment for trustee deferred compensation
and retirement plans 116,507
- ------------------------------------------------------------
Other assets 148,419
============================================================
Total assets 3,353,573,268
____________________________________________________________
============================================================
LIABILITIES:
Payables for:
Dividends 4,412,045
- ------------------------------------------------------------
Trustee deferred compensation and
retirement plans 231,330
- ------------------------------------------------------------
Accrued distribution fees 132,821
- ------------------------------------------------------------
Accrued trustees' fees 9,908
- ------------------------------------------------------------
Accrued transfer agent fees 75,398
- ------------------------------------------------------------
Accrued operating expenses 109,941
============================================================
Total liabilities 4,971,443
============================================================
Net assets applicable to shares outstanding $3,348,601,825
____________________________________________________________
============================================================
NET ASSETS CONSIST OF:
Shares of beneficial interest $3,348,663,731
- ------------------------------------------------------------
Undistributed net realized gain (loss) from
investment securities (61,906)
============================================================
$3,348,601,825
____________________________________________________________
============================================================
NET ASSETS:
Institutional Class $2,117,055,426
____________________________________________________________
============================================================
Private Investment Class $ 196,616,507
____________________________________________________________
============================================================
Personal Investment Class $ 10,877,052
____________________________________________________________
============================================================
Cash Management Class $ 725,123,738
____________________________________________________________
============================================================
Reserve Class $ 9,308,226
____________________________________________________________
============================================================
Resource Class $ 289,620,876
____________________________________________________________
============================================================
SHARES OUTSTANDING, $0.001 PAR VALUE PER
SHARE, UNLIMITED NUMBER OF SHARES
AUTHORIZED:
Institutional Class 2,117,040,310
____________________________________________________________
============================================================
Private Investment Class 196,606,167
____________________________________________________________
============================================================
Personal Investment Class 10,874,255
____________________________________________________________
============================================================
Cash Management Class 725,129,583
____________________________________________________________
============================================================
Reserve Class 9,306,389
____________________________________________________________
============================================================
Resource Class 289,623,534
____________________________________________________________
============================================================
Net asset value, offering and redemption
price per share for each class $ 1.00
____________________________________________________________
============================================================
</Table>
See accompanying notes which are an integral part of the financial statements.
F-26
STATEMENT OF OPERATIONS
For the year ended March 31, 2005
<Table>
INVESTMENT INCOME:
Interest $45,234,430
=========================================================================
EXPENSES:
Advisory fees 6,427,161
- -------------------------------------------------------------------------
Administrative services fees 593,616
- -------------------------------------------------------------------------
Custodian fees 116,420
- -------------------------------------------------------------------------
Distribution fees:
Private Investment Class 896,739
- -------------------------------------------------------------------------
Personal Investment Class 78,707
- -------------------------------------------------------------------------
Cash Management Class 682,153
- -------------------------------------------------------------------------
Reserve Class 103,030
- -------------------------------------------------------------------------
Resource Class 509,985
- -------------------------------------------------------------------------
Transfer agent fees 505,749
- -------------------------------------------------------------------------
Trustees' fees and retirement benefits 94,630
- -------------------------------------------------------------------------
Other 650,568
=========================================================================
Total expenses 10,658,758
=========================================================================
Less: Fees waived and expenses reimbursed (2,284,421)
=========================================================================
Net expenses 8,374,337
=========================================================================
Net investment income 36,860,093
=========================================================================
Net realized gain (loss) from investment securities (60,974)
=========================================================================
Net increase in net assets resulting from operations $36,799,119
_________________________________________________________________________
=========================================================================
</Table>
See accompanying notes which are an integral part of the financial statements.
F-27
STATEMENT OF CHANGES IN NET ASSETS
For the years ended March 31, 2005 and 2004
<Table>
<Caption>
2005 2004
- ----------------------------------------------------------------------------------------------
OPERATIONS:
Net investment income $ 36,860,093 $ 22,690,885
- ----------------------------------------------------------------------------------------------
Net realized gain (loss) from investment securities (60,974) 40,841
==============================================================================================
Net increase in net assets resulting from operations 36,799,119 22,731,726
==============================================================================================
Distributions to shareholders from net investment income:
Institutional Class (24,315,215) (14,405,472)
- ----------------------------------------------------------------------------------------------
Private Investment Class (1,826,828) (1,230,193)
- ----------------------------------------------------------------------------------------------
Personal Investment Class (70,609) (37,490)
- ----------------------------------------------------------------------------------------------
Cash Management Class (7,900,652) (5,040,826)
- ----------------------------------------------------------------------------------------------
Reserve Class (39,173) (8,425)
- ----------------------------------------------------------------------------------------------
Resource Class (2,707,616) (1,968,479)
==============================================================================================
Decrease in net assets resulting from distributions (36,860,093) (22,690,885)
==============================================================================================
Share transactions-net:
Institutional Class 163,325,063 632,519,818
- ----------------------------------------------------------------------------------------------
Private Investment Class 46,220,760 (77,436,378)
- ----------------------------------------------------------------------------------------------
Personal Investment Class 483,638 (6,598,054)
- ----------------------------------------------------------------------------------------------
Cash Management Class (43,002,612) 150,447,508
- ----------------------------------------------------------------------------------------------
Reserve Class (4,721,188) 1,376,091
- ----------------------------------------------------------------------------------------------
Resource Class (9,579,676) 39,025,099
==============================================================================================
Net increase in net assets resulting from share
transactions 152,725,985 739,334,084
==============================================================================================
Net increase in net assets 152,665,011 739,374,925
==============================================================================================
NET ASSETS:
Beginning of year 3,195,936,814 2,456,561,889
==============================================================================================
End of year (including undistributed net investment income
of $0 and $0, respectively) $3,348,601,825 $3,195,936,814
______________________________________________________________________________________________
==============================================================================================
</Table>
See accompanying notes which are an integral part of the financial statements.
F-28
NOTES TO FINANCIAL STATEMENTS
March 31, 2005
NOTE 1--SIGNIFICANT ACCOUNTING POLICIES
Tax-Free Investments Trust (the "Trust") is registered under the Investment
Company Act of 1940, as amended (the "1940 Act"), as a diversified, open-end
management investment company. The Trust is organized as a Delaware statutory
trust consisting of one portfolio, the Tax-Free Cash Reserve Portfolio (the
"Fund"). The Fund currently offers multiple classes of shares. Matters affecting
each class are voted on exclusively by the shareholders of each class.
The Fund's investment objective is to provide as high a level of tax-exempt
income as is consistent with the preservation of capital and maintenance of
liquidity. Each company listed in the Schedule of Investments is organized in
the United States of America unless otherwise noted.
Under the Trust's organizational documents, each Trustee, officer, employee
or other agent of the Trust (including the Trust's investment manager) is
indemnified against certain liabilities that may arise out of performance of
their duties to the Fund. Additionally, in the normal course of business, the
Fund enters into contracts that contain a variety of indemnification clauses.
The Fund's maximum exposure under these arrangements is unknown as this would
involve future claims that may be made against the Fund that have not yet
occurred. However, the Fund has not had prior claims or losses pursuant to these
contracts.
The preparation of financial statements in conformity with accounting
principles generally accepted in the United States of America requires
management to make estimates and assumptions that affect the reported amounts of
assets and liabilities at the date of the financial statements and the reported
amounts of revenues and expenses during the reporting period. Actual results
could differ from those estimates. The following is a summary of the significant
accounting policies followed by the Fund in the preparation of its financial
statements.
A. SECURITY VALUATIONS -- The Fund's securities are valued on the basis of
amortized cost which approximates market value as permitted by Rule 2a-7
under 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.
Brokerage commissions and mark ups are considered transaction costs and
are recorded as an increase to the cost basis of securities purchased
and/or a reduction of proceeds on a sale of securities. Such transaction
costs are included in the determination of realized gain (loss) from
investment securities reported in the Statement of Operations and the
Statement of Changes in Net Assets and the realized net gains (losses) on
securities per share in the Financial Highlights. Transaction costs are
included in the calculation of the Fund's net asset value and, accordingly,
they reduce the Fund's total returns. These transaction costs are not
considered operating expenses and are not reflected in net investment
income reported in the Statement of Operations and Statement of Changes in
Net Assets, or the net investment income per share and ratios of expenses
and net investment income reported in the Financial Highlights, nor are
they limited by any expense limitation arrangements between the Fund and
the advisor.
The Fund allocates realized capital gains and losses to a class based on
the relative net assets of each class. The Fund allocates income to a class
based on the relative value of the settled shares of each class.
C. DISTRIBUTIONS -- Distributions from income are declared daily and paid
monthly. Distributions from net realized capital gain, if any, are
generally paid annually and recorded on ex-dividend date. The Fund may
elect to use a portion of the proceeds from redemptions as distributions
for federal income tax purposes.
D. FEDERAL INCOME TAXES -- The Fund intends to comply with the requirements of
Subchapter M of the Internal Revenue Code necessary to qualify as a
regulated investment company and, as such, will not be subject to federal
income taxes on otherwise taxable income (including net realized capital
gain) which is distributed to shareholders. Therefore, no provision for
federal income taxes is recorded in the financial statements.
In addition, the Fund intends to invest in securities to allow it to
qualify to pay shareholders "exempt interest dividends", as defined in the
Internal Revenue Code of 1986, as amended.
E. EXPENSES -- Fees provided for under the Rule 12b-1 plan of a particular
class of the Fund and which are directly attributable to that class are
charged to the operations of such class. All other expenses are allocated
among the classes based on relative net assets.
NOTE 2--ADVISORY FEES AND OTHER FEES PAID TO AFFILIATES
The Trust has entered into a master investment advisory agreement with A I M
Advisors, Inc. ("AIM"). Under the terms of the investment advisory agreement,
the Fund pays an advisory fee to AIM at the annual rate of 0.25% of the first
$500 million of the Fund's average daily net assets plus 0.20% of the Fund's
average daily net assets in excess of $500 million. AIM has voluntarily agreed
to waive advisory fees and/or reimburse expenses to the extent necessary to
limit total annual fund operating expenses (excluding certain items discussed
below) to 0.22% of the Fund's average daily net assets. In determining the
advisor's obligation to waive advisory fees and/or reimburse expenses, the
following expenses are not taken into account, and could cause the total annual
fund operating expenses to exceed the limit stated above: (i) Rule 12b-1 plan
fees, if any; (ii) interest; (iii) taxes; (iv) extraordinary items (these are
expenses that are not anticipated to arise from the Fund's day-to-day
operations), or items designated as such by the Fund's Board of Trustees; (v)
expenses related to a merger or reorganization, as approved by the Fund's Board
of Trustees; (vi) expenses that the Fund has incurred but did not actually pay
because of an expense offset arrangement; (vii) trustees' fees; and (viii)
federal registration fees. Currently, in addition to the expense
F-29
reimbursement arrangement with AMVESCAP PLC ("AMVESCAP") described more fully
below, the only expense offset arrangements from which the Fund may benefit are
in the form of credits that the Fund receives from banks where the Fund or its
transfer agent has deposit accounts in which it holds uninvested cash. Those
credits are used to pay certain expenses incurred by the Fund. Voluntary fee
waivers or reimbursements may be modified or discontinued at any time upon
consultation with the Board of Trustees without further notice to investors.
For the year ended March 31, 2005, AIM waived fees of $1,559,355.
For the year ended March 31, 2005, at the request of the Trustees of the
Trust, AMVESCAP agreed to reimburse $1,679 of expenses incurred by the Fund in
connection with market timing matters in the AIM Funds, including legal, audit,
shareholder reporting, communications and trustee expenses. These expenses along
with the related expense reimbursement, are included in the Statement of
Operations.
The Trust, pursuant to a master administrative services agreement with AIM,
has agreed to pay AIM for certain administrative costs incurred in providing
accounting services to the Fund. Pursuant to such agreement, for the year ended
March 31, 2005, AIM was paid $593,616.
The Trust, pursuant to a transfer agency and service agreement, has agreed
to pay AIM Investment Services, Inc. ("AISI") a fee for providing transfer
agency and shareholder services to the Fund. During the year ended March 31,
2005, AISI retained $459,758.
Under the terms of a master distribution agreement between Fund Management
Company ("FMC") and the Trust, FMC acts as the exclusive distributor of the
Fund's shares. The Trust has adopted a master distribution plan pursuant to Rule
12b-1 under the 1940 Act with respect to the Fund's Private Investment Class,
Personal Investment Class, Cash Management Class, Reserve Class and Resource
Class (the "Plan"). The Plan provides that the Private Investment Class, the
Personal Investment Class, the Cash Management Class, the Reserve Class and the
Resource Class pay up to the maximum annual rate of 0.50%, 0.75%, 0.10%, 1.00%
and 0.20%, respectively, of the average daily net assets attributable to such
class. Of this amount, up to 0.25% of the average daily net assets of each class
may be paid to furnish continuing personal shareholder services to customers who
purchase and own shares of such classes. Any amounts not paid as a service fee
under such Plan would constitute an asset-based sales charge. NASD Rules also
impose a cap on the total amount of sales charges, including asset-based sales
charges, that may be paid by any class of shares of the Fund. Currently, FMC has
elected to waive a portion of its compensation payable by the Fund such that
compensation paid pursuant to the Plan with respect to the Private Investment
Class, the Personal Investment Class, the Cash Management Class, the Reserve
Class and the Resource Class equals the maximum annual rate of 0.25%, 0.55%,
0.08%, 0.87% and 0.16%, respectively, of the average daily net assets
attributable to such class. Further, FMC voluntarily waived additional Rule
12b-1 plan fees for the Reserve Class during the year in order to increase the
yield. Waivers may be modified or discontinued at any time. Pursuant to the
Plan, for the year ended March 31, 2005, the Private Investment Class, the
Personal Investment Class, the Cash Management Class, the Reserve Class and the
Resource Class paid $448,369, $57,719, $545,722 $87,429 and $407,988,
respectively, after FMC waived Plan fees of $448,370, $20,988, $136,431, $15,601
and $101,997, respectively.
Certain officers and trustees of the Trust are officers and directors of
AIM, FMC and/or AISI.
NOTE 3--TRUSTEES' FEES
Trustees' fees represent remuneration paid to each Trustee of the Trust who is
not an "interested person" of AIM. Trustees have the option to defer
compensation payable by the Trust. Those Trustees who defer compensation have
the option to select various AIM Funds in which their deferral accounts shall be
deemed to be invested.
Current Trustees are eligible to participate in a retirement plan that
provides for benefits to be paid upon retirement to Trustees over a period of
time based on the number of years of service. The Fund may have certain former
Trustees that also participate in a retirement plan and receive benefits under
such plan.
Obligations under the deferred compensation and retirement plans represent
unsecured claims against the general assets of the Fund.
During the year ended March 31, 2005, the Fund paid legal fees of $13,558
for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the
Independent Trustees. A member of that firm is a Trustee of the Trust.
NOTE 4--BORROWINGS
Pursuant to an exemptive order from the SEC, the Fund may participate in an
interfund lending facility that AIM has established for temporary borrowings by
the AIM Funds. An interfund loan will be made under this facility only if the
loan rate (an 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. A loan will be secured by collateral if the
Fund's aggregate borrowings from all sources exceeds 10% of the Fund's total
assets. To the extent that the loan is required to be secured by collateral, the
collateral is marked to market daily to ensure that the market value is at least
102% of the outstanding principal value of the loan. The Fund did not borrow or
lend under the facility during the year ended March 31, 2005.
Additionally, the Fund is permitted to temporarily carry a negative or
overdrawn balance in its account with The Bank of New York, the custodian bank.
To compensate the custodian bank for such overdrafts, the overdrawn Fund may
either (i) leave funds in the account so the custodian can be compensated by
earning the additional interest; or (ii) compensate by paying the custodian
bank. In either case, the custodian bank will be compensated at an amount equal
to the Federal Funds rate plus 100 basis points.
F-30
NOTE 5--DISTRIBUTIONS TO SHAREHOLDERS AND TAX COMPONENTS OF NET ASSETS
DISTRIBUTIONS TO SHAREHOLDERS:
The tax character of distributions paid during the years ended March 31, 2005
and 2004 was as follows:
<Table>
<Caption>
2005 2004
- ----------------------------------------------------------------------------------------
Distributions paid from ordinary income--Tax Exempt $36,860,093 $22,690,885
________________________________________________________________________________________
========================================================================================
</Table>
TAX COMPONENTS OF NET ASSETS:
As of March 31, 2005, the components of net assets on a tax basis were as
follows:
<Table>
<Caption>
2005
- ----------------------------------------------------------------------------
Undistributed ordinary income--Tax Exempt $ 185,341
- ----------------------------------------------------------------------------
Temporary book/tax differences (185,341)
- ----------------------------------------------------------------------------
Capital loss carryforward (54,712)
- ----------------------------------------------------------------------------
Post-October capital loss deferral (7,194)
- ----------------------------------------------------------------------------
Shares of beneficial interest 3,348,663,731
============================================================================
Total net assets $3,348,601,825
____________________________________________________________________________
============================================================================
</Table>
The temporary book/tax differences are a result of timing differences
between book and tax recognition of income and/or expenses. The Fund's temporary
book/tax differences are the result of the trustee deferral of compensation and
retirement plan expenses.
Capital loss carryforward is calculated and reported as of a specific date.
Results of transactions and other activity after that date may affect the amount
of capital loss carryforward actually available for the Fund to utilize. The
ability to utilize capital loss carryforward in the future may be limited under
the Internal Revenue Code and related regulations based on the results of future
transactions.
The Fund has a capital loss carryforward as of March 31, 2005 which expires
as follows:
<Table>
<Caption>
CAPITAL LOSS
EXPIRATION CARRYFORWARD*
- -----------------------------------------------------------------------------
March 31, 2011 $ 933
- -----------------------------------------------------------------------------
March 31, 2013 53,779
=============================================================================
Total capital loss carryforward $54,712
_____________________________________________________________________________
=============================================================================
</Table>
* Capital loss carryforward as of the date listed above is reduced for
limitations, if any, to the extent required by the Internal Revenue Code.
F-31
NOTE 6--SHARE INFORMATION
The Fund currently offers six different classes of shares: Institutional Class,
Private Investment Class, Personal Investment Class, Cash Management Class,
Reserve Class and Resource Class.
<Table>
<Caption>
CHANGES IN SHARES OUTSTANDING(a)
- ---------------------------------------------------------------------------------------------------------------------------------
YEAR ENDED MARCH 31,
--------------------------------------------------------------------------
2005 2004
----------------------------------- -----------------------------------
SHARES AMOUNT SHARES AMOUNT
- ---------------------------------------------------------------------------------------------------------------------------------
Sold:
Institutional Class 19,309,850,248 $ 19,309,850,248 13,446,683,719 $ 13,446,683,719
- ---------------------------------------------------------------------------------------------------------------------------------
Private Investment Class 442,201,609 442,201,609 489,285,624 489,285,624
- ---------------------------------------------------------------------------------------------------------------------------------
Personal Investment Class 31,788,215 31,788,215 26,756,133 26,756,133
- ---------------------------------------------------------------------------------------------------------------------------------
Cash Management Class 5,913,083,202 5,913,083,202 5,641,820,633 5,641,820,633
- ---------------------------------------------------------------------------------------------------------------------------------
Reserve Class 138,866,847 138,866,847 156,764,612 156,764,612
- ---------------------------------------------------------------------------------------------------------------------------------
Resource Class 1,776,129,695 1,776,129,695 1,508,376,051 1,508,376,051
=================================================================================================================================
Issued as reinvestment of dividends:
Institutional Class 13,098,927 13,098,927 7,301,226 7,301,226
- ---------------------------------------------------------------------------------------------------------------------------------
Private Investment Class 1,185,307 1,185,307 737,747 737,747
- ---------------------------------------------------------------------------------------------------------------------------------
Personal Investment Class 9,987 9,987 4,054 4,054
- ---------------------------------------------------------------------------------------------------------------------------------
Cash Management Class 5,725,182 5,725,182 4,115,815 4,115,815
- ---------------------------------------------------------------------------------------------------------------------------------
Reserve Class 32,528 32,528 8,921 8,921
- ---------------------------------------------------------------------------------------------------------------------------------
Resource Class 2,383,423 2,383,423 1,860,224 1,860,224
=================================================================================================================================
Reacquired:
Institutional Class (19,159,624,112) (19,159,624,112) (12,821,465,127) (12,821,465,127)
- ---------------------------------------------------------------------------------------------------------------------------------
Private Investment Class (397,166,156) (397,166,156) (567,459,749) (567,459,749)
- ---------------------------------------------------------------------------------------------------------------------------------
Personal Investment Class (31,314,564) (31,314,564) (33,358,241) (33,358,241)
- ---------------------------------------------------------------------------------------------------------------------------------
Cash Management Class (5,961,810,996) (5,961,810,996) (5,495,488,940) (5,495,488,940)
- ---------------------------------------------------------------------------------------------------------------------------------
Reserve Class (143,620,563) (143,620,563) (155,397,442) (155,397,442)
- ---------------------------------------------------------------------------------------------------------------------------------
Resource Class (1,788,092,794) (1,788,092,794) (1,471,211,176) (1,471,211,176)
=================================================================================================================================
152,725,985 $ 152,725,985 739,334,084 $ 739,334,084
_________________________________________________________________________________________________________________________________
=================================================================================================================================
</Table>
(a) There are three entities that are each record owners of more than 5% of
the outstanding shares of the Fund and in the aggregate they own 57% of
the outstanding shares of the Fund. AIM Distributors has an agreement
with these entities to sell Fund shares. The Fund, AIM and/or AIM
affiliates may make payments to these entities, which are considered to
be related to the Fund, for providing services to the Fund, AIM and/or
AIM affiliates including but not limited to services such as, securities
brokerage, distribution, third party record keeping and account
servicing. The Trust has no knowledge as to whether all or any portion
of the shares owned of record by these entities are also owned
beneficially.
F-32
NOTE 7--FINANCIAL HIGHLIGHTS
The following schedule presents financial highlights for a share of the Fund
outstanding throughout the periods indicated.
<Table>
<Caption>
RESERVE CLASS
------------------------------------------------------
YEAR ENDED MARCH 31,
------------------------------------------------------
2005 2004 2003 2002 2001
- --------------------------------------------------------------------------------------------------------------------
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 0.001 0.004 0.01 0.03
====================================================================================================================
Less distributions from net investment income (0.004) (0.001) (0.004) (0.01) (0.03)
====================================================================================================================
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
____________________________________________________________________________________________________________________
====================================================================================================================
Total return(a) 0.38% 0.08% 0.39% 1.35% 3.12%
____________________________________________________________________________________________________________________
====================================================================================================================
Ratios/supplemental data:
Net assets, end of period (000s omitted) $ 9,308 $14,030 $12,653 $18,200 $15,871
____________________________________________________________________________________________________________________
====================================================================================================================
Ratio of expenses to average net assets:
With fee waivers and/or expense reimbursements 1.07%(b) 0.98% 1.05% 1.02% 1.00%
- --------------------------------------------------------------------------------------------------------------------
Without fee waivers and/or expense reimbursements 1.27%(b) 1.27% 1.27% 1.28% 1.29%
____________________________________________________________________________________________________________________
====================================================================================================================
Ratio of net investment income to average net assets 0.39%(b) 0.07% 0.37% 1.21% 3.05%
____________________________________________________________________________________________________________________
====================================================================================================================
</Table>
(a) Includes adjustments in accordance with accounting principles generally
accepted in the United States of America.
(b) Ratios are based on average daily net assets of $10,302,991.
NOTE 8--CHANGE IN INDEPENDENT REGISTERED ACCOUNTING FIRM
On March 23, 2005, the Audit Committee (the "Audit Committee") of the Board of
Trustees of the Trust appointed PricewaterhouseCoopers LLP ("PWC") as the
independent registered public accounting firm of the Fund for the fiscal year
ending March 31, 2006. For the prior reporting period, Ernst & Young ("E&Y") was
the Fund's independent registered public accounting firm. The change in the
Fund's independent auditors was part of an effort by the Audit Committee to
increase operational efficiencies by reducing the number of different audit
firms engaged by the Audit Committee to audit AIM Funds with March 31 fiscal
year ends. The Fund is in the process of obtaining a formal resignation from E&Y
as the independent registered public accounting firm of the Fund.
E&Y's report on the financial statements of the Fund for the past two years
did not contain an adverse or disclaimer of opinion, and was not qualified or
modified as to uncertainty, audit scope or accounting principles. During the
period E&Y was engaged, there were no disagreements with E&Y on any matter of
accounting principles or practices, financial statement disclosure, or auditing
scope or procedure which, if not resolved to E&Y's satisfaction, would have
caused it to make reference to that matter in connection with its report.
F-33
NOTE 9--LEGAL PROCEEDINGS
Terms used in the Legal Proceedings Note are defined terms solely for the
purpose of this note.
SETTLED ENFORCEMENT ACTIONS AND INVESTIGATIONS RELATED TO MARKET TIMING
On October 8, 2004, INVESCO Funds Group, Inc. ("IFG") (the former investment
advisor to certain AIM Funds) and A I M Advisors, Inc. ("AIM") (the Fund's
investment advisor) reached final settlements with certain regulators, including
without limitation the Securities and Exchange Commission ("SEC"), the New York
Attorney General ("NYAG") and the Colorado Attorney General ("COAG"), to resolve
civil enforcement actions and investigations related to market timing activity
and related issues in the AIM Funds, including those formerly advised by IFG.
These regulators alleged, in substance, that IFG and AIM failed to disclose in
the prospectuses for the AIM Funds that they advised and to the independent
directors/trustees of such Funds that they had entered into certain arrangements
permitting market timing of such Funds, thereby breaching their fiduciary duties
to such Funds. As a result of the foregoing, the regulators alleged that IFG and
AIM breached various Federal and state securities, business and consumer
protection laws. On the same date, A I M Distributors, Inc. ("ADI") (the
distributor of the retail AIM Funds) reached a final settlement with the SEC to
resolve an investigation relating to market timing activity and related issues
in the AIM Funds. The SEC also alleged that ADI violated various Federal
securities laws. The SEC also has settled related market timing enforcement
actions brought against certain former officers and employees of IFG.
Under the terms of the settlements, IFG agreed to pay a total of $325 million,
of which $110 million is civil penalties. Of this $325 million total payment,
half has been paid and the remaining half will be paid on or before December 31,
2005. AIM and ADI agreed to pay a total of $50 million, of which $30 million is
civil penalties, all of which has been paid. The entire $325 million IFG
settlement fund will be made available for distribution to the shareholders of
those AIM Funds that IFG formerly advised that were harmed by market timing
activity, and the entire $50 million settlement fund by AIM and ADI will be made
available for distribution to the shareholders of those AIM Funds advised by AIM
that were harmed by market timing activity, all as to be determined by an
independent distribution consultant. The IFG and AIM settlement funds may
increase as a result of contributions from third parties who reach final
settlements with the SEC or other regulators to resolve allegations of market
timing and/or late trading. The settlement funds will be distributed in
accordance with a methodology to be determined by the independent distribution
consultant, in consultation with AIM and the independent trustees of the AIM
Funds and acceptable to the staff of the SEC. Under the settlements with the
NYAG and COAG, AIM has agreed to reduce management fees on certain equity and
balanced AIM Funds by $15 million per year for the next five years, based upon
effective fee rates and assets under management as of July 1, 2004, not to
increase certain management fees and to provide more information to investors
regarding fees.
Under the terms of the settlements, AIM is undertaking certain governance and
compliance reforms, including maintaining an internal controls committee and
retaining an independent compliance consultant and a corporate ombudsman. Also,
commencing in 2007 and at least once every other year thereafter, AIM will
undergo a compliance review by an independent third party. In addition, under
the terms of the settlements, AIM has undertaken to cause the AIM Funds to
operate in accordance with certain governance policies and practices, including
retaining a full-time independent senior officer whose duties include monitoring
compliance and managing the process by which proposed management fees to be
charged the AIM Funds are negotiated. Also, commencing in 2008 and not less than
every fifth calendar year thereafter, the AIM Funds will hold shareholder
meetings at which their Boards of Trustees will be elected.
At the request of the trustees of the AIM Funds, AMVESCAP PLC ("AMVESCAP"),
the parent company of IFG and AIM, has agreed to reimburse expenses incurred by
such Funds related to market timing matters.
The SEC has also settled market timing enforcement actions against Raymond R.
Cunningham (the former president and chief executive officer of IFG and a former
member of the board of directors of the AIM Funds formerly advised by IFG),
Timothy J. Miller (the former chief investment officer and a former portfolio
manager for IFG), Thomas A. Kolbe (the former national sales manager of IFG) and
Michael D. Legoski (a former assistant vice president in IFG's sales
department). As part of these settlements, the SEC ordered these individuals to
pay restitution and civil penalties in various amounts and prohibited them from
associating with, or serving as an officer or director of, an investment
advisor, broker, dealer and/or investment company, as applicable, for certain
periods of time.
The payments made in connection with the above-referenced settlements by IFG,
AIM and ADI will total approximately $375 million (not including AIM's agreement
to reduce management fees on certain equity and balanced AIM Funds by $15
million per year for the next five years, based upon effective fee rates and
assets under management as of July 1, 2004). The manner in which the settlement
payments will be distributed is unknown at the present time and will be
determined by an independent distribution consultant appointed under the
settlement agreements. Therefore, management of AIM and the Fund are unable at
the present time to estimate the impact, if any, that the distribution of the
settlement payments may have on the Fund or whether such distribution will have
an impact on the Fund's financial statements in the future.
At the present time, management of AIM and the Fund are unable to estimate the
impact, if any, that the outcome of the Regulatory Inquiries and Pending
Litigation described below may have on AIM, ADI or the Fund.
REGULATORY INQUIRIES AND PENDING LITIGATION
The mutual fund industry as a whole is currently subject to regulatory
inquiries and litigation related to a wide range of issues. These issues
include, among others, market timing activity, late trading, fair value pricing,
excessive or improper advisory and/or distribution fees, mutual fund sales
practices, including but not limited to revenue sharing and directed-brokerage
arrangements, investments in securities of other registered investment
companies, contractual plans, issues related to Section 529 college savings
plans, procedures for locating lost security holders and participation in class
action settlements.
As described more fully below, IFG and AIM are the subject of a number of
ongoing regulatory inquiries and civil lawsuits related to one or more of the
issues currently being scrutinized by various Federal and state regulators,
including but not limited to those issues described above. Additional regulatory
actions and/or civil lawsuits related to the above or other issues may be filed
against the AIM Funds, IFG, AIM and/or related entities and
F-34
NOTE 9--LEGAL PROCEEDINGS (CONTINUED)
individuals in the future. Additional regulatory inquiries related to the above
or other issues also may be received by the AIM Funds, IFG, AIM and/or related
entities and individuals in the future.
Ongoing Regulatory Inquiries Concerning IFG and AIM
IFG, certain related entities, certain of their current and former officers
and/or certain of the AIM Funds formerly advised by IFG have received regulatory
inquiries in the form of subpoenas or other oral or written requests for
information and/or documents related to one or more of the following issues,
some of which concern one or more such Funds: market timing activity, late
trading, fair value pricing, excessive or improper advisory and/or distribution
fees, mutual fund sales practices, including revenue sharing and
directed-brokerage arrangements, and investments in securities of other
registered investment companies. These regulators include the SEC, the NASD,
Inc. ("NASD"), the Florida Department of Financial Services, the Attorney
General of the State of West Virginia, the West Virginia Securities Commission
and the Bureau of Securities of the State of New Jersey. IFG and certain of
these other parties also have received more limited inquiries from the United
States Department of Labor ("DOL") and the United States Attorney's Office for
the Southern District of New York, some of which concern one or more of the AIM
Funds formerly advised by IFG. IFG is providing full cooperation with respect to
these inquiries.
AIM, certain related entities, certain of their current and former officers
and/or certain of the AIM Funds have received regulatory inquiries in the form
of subpoenas or other oral or written requests for information and/or documents
related to one or more of the following issues, some of which concern one or
more AIM Funds: market timing activity, late trading, fair value pricing,
excessive or improper advisory and/or distribution fees, mutual fund sales
practices, including revenue sharing and directed-brokerage arrangements,
investments in securities of other registered investment companies, contractual
plans, issues related to Section 529 college savings plans and procedures for
locating lost securityholders. These regulators include the SEC, the NASD, the
Department of Banking for the State of Connecticut, the Attorney General of the
State of West Virginia, the West Virginia Securities Commission and the Bureau
of Securities of the State of New Jersey. AIM and certain of these other parties
also have received more limited inquiries from the SEC, the NASD, the DOL, the
Internal Revenue Service, the United States Attorney's Office for the Southern
District of New York, the United States Attorney's Office for the Central
District of California, the United States Attorney's Office for the District of
Massachusetts, the Massachusetts Securities Division, the U.S. Postal Inspection
Service and the Commodity Futures Trading Commission, some of which concern one
or more AIM Funds. AIM is providing full cooperation with respect to these
inquiries.
Pending Regulatory Civil Action Alleging Market Timing
On April 12, 2005, the Attorney General of the State of West Virginia ("WVAG")
filed civil proceedings against AIM, IFG and ADI, as well as numerous unrelated
mutual fund complexes and financial institutions. None of the AIM Funds has been
named as a defendant in these proceedings. The WVAG complaint, filed in the
Circuit Court of Marshall County, West Virginia [Civil Action No. 05-C-81],
alleges, in substance, that AIM, IFG and ADI engaged in unfair competition
and/or unfair or deceptive trade practices by failing to disclose in the
prospectuses for the AIM Funds, including those formerly advised by IFG, that
they had entered into certain arrangements permitting market timing of such
Funds. As a result of the foregoing, the WVAG alleges violations of W. Va. Code
sec. 46A-1-101, et seq. (the West Virginia Consumer Credit and Protection Act).
The WVAG complaint is seeking injunctive relief; civil monetary penalties; a
writ of quo warranto against the defendants; pre-judgment and post-judgment
interest; costs and expenses, including counsel fees; and other relief.
If AIM is unsuccessful in its defense of the WVAG proceedings, it could be
barred from serving as an investment adviser for any investment company
registered under the Investment Company Act of 1940, as amended (a "registered
investment company"). Such results could affect the ability of AIM or any other
investment advisor directly or indirectly owned by AMVESCAP, from serving as an
investment advisor to any registered investment company, including your Fund.
Your Fund has been informed by AIM that, if these results occur, AIM will seek
exemptive relief from the SEC to permit it to continue to serve as your Fund's
investment advisor. There is no assurance that such exemptive relief will be
granted.
Private Civil Actions Alleging Market Timing
Multiple civil lawsuits, including purported class action and shareholder
derivative suits, have been filed against various parties (including, depending
on the lawsuit, certain AIM Funds, IFG, AIM, AIM Management, AMVESCAP, certain
related entities, certain of their current and former officers and/or certain
unrelated third parties) making allegations that are similar in many respects to
those in the settled regulatory actions brought by the SEC, the NYAG and the
COAG concerning market timing activity in the AIM Funds. These lawsuits allege a
variety of theories of recovery, including but not limited to: (i) violation of
various provisions of the Federal and state securities laws; (ii) violation of
various provisions of ERISA; (iii) breach of fiduciary duty; and/or (iv) breach
of contract. These lawsuits were initiated in both Federal and state courts and
seek such remedies as compensatory damages; restitution; injunctive relief;
disgorgement of management fees; imposition of a constructive trust; removal of
certain directors and/or employees; various corrective measures under ERISA;
rescission of certain Funds' advisory agreements; interest; and attorneys' and
experts' fees.
All lawsuits based on allegations of market timing, late trading, and related
issues have been transferred to the United States District Court for the
District of Maryland (the "MDL Court") for consolidated or coordinated pre-trial
proceedings. Pursuant to an Order of the MDL Court, plaintiffs consolidated
their claims for pre-trial purposes into three amended complaints against
various AIM- and IFG-related parties: (i) a Consolidated Amended Class Action
Complaint purportedly brought on behalf of shareholders of the AIM Funds; (ii) a
Consolidated Amended Fund Derivative Complaint purportedly brought on behalf of
the AIM Funds and fund registrants; and (iii) an Amended Class Action Complaint
for Violations of the Employee Retirement Income Securities Act ("ERISA")
purportedly brought on behalf of participants in AMVESCAP's 401(k) plan. The
plaintiffs in two of the underlying lawsuits continue to seek remand of their
lawsuit to state court.
F-35
NOTE 9--LEGAL PROCEEDINGS (CONTINUED)
Private Civil Actions Alleging Improper Use of Fair Value Pricing
Multiple civil class action lawsuits have been filed against various parties
(including, depending on the lawsuit, certain AIM Funds, IFG and/or AIM)
alleging that certain AIM Funds inadequately employed fair value pricing. These
lawsuits allege a variety of theories of recovery, including but not limited to:
(i) violations of various provisions of the Federal securities laws; (ii) common
law breach of duty; and (iii) common law negligence and gross negligence. These
lawsuits have been filed in both Federal and state courts and seek such remedies
as compensatory and punitive damages; interest; and attorneys' fees and costs.
Based on a recent court decision, the state court action has been removed to
Federal court.
Private Civil Actions Alleging Excessive Advisory and/or Distribution Fees
Multiple civil lawsuits, including purported class action and shareholder
derivative suits, have been filed against various parties (including, depending
on the lawsuit, IFG, AIM, INVESCO Institutional (N.A.), Inc. ("IINA"), ADI
and/or INVESCO Distributors, Inc. ("INVESCO Distributors")) alleging that the
defendants charged excessive advisory and/or distribution fees and failed to
pass on to shareholders the perceived savings generated by economies of scale.
Certain of these lawsuits also allege that the defendants adopted unlawful
distribution plans. These lawsuits allege a variety of theories of recovery,
including but not limited to: (i) violation of various provisions of the Federal
securities laws; (ii) breach of fiduciary duty; and/or (iii) breach of contract.
These lawsuits have been filed in Federal courts and seek such remedies as
damages; injunctive relief; rescission of certain Funds' advisory agreements and
distribution plans; interest; prospective relief in the form of reduced fees;
and attorneys' and experts' fees. All of these lawsuits have been transferred to
the United States District Court for the Southern District of Texas, Houston
Division and subsequently consolidated for pre-trial purposes into one lawsuit.
Private Civil Actions Alleging Improper Charging of Distribution Fees on Limited
Offering Funds or Share Classes
Multiple civil lawsuits, including shareholder derivative suits, have been
filed against various parties (including, depending on the lawsuit, IFG, AIM,
ADI and/or certain of the trustees of the AIM Funds) alleging that the
defendants breached their fiduciary duties by charging distribution fees while
funds and/or specific share classes were closed generally to new investors
and/or while other share classes of the same fund were not charged the same
distribution fees. These lawsuits allege a variety of theories of recovery,
including but not limited to: (i) violation of various provisions of the Federal
securities laws; and (ii) breach of fiduciary duty. These lawsuits have been
filed in Federal courts and seek such remedies as damages; injunctive relief;
and attorneys' and experts' fees.
Private Civil Actions Alleging Improper Mutual Fund Sales Practices and
Directed-Brokerage Arrangements
Multiple civil lawsuits, including purported class action and shareholder
derivative suits, have been filed against various parties (including, depending
on the lawsuit, AIM Management, IFG, AIM, AIM Investment Services, Inc. ("AIS")
and/or certain of the trustees of the AIM Funds) alleging that the defendants
improperly used the assets of the AIM Funds to pay brokers to aggressively
promote the sale of the AIM Funds over other mutual funds and that the
defendants concealed such payments from investors by disguising them as
brokerage commissions. These lawsuits allege a variety of theories of recovery,
including but not limited to: (i) violation of various provisions of the Federal
securities laws; (ii) breach of fiduciary duty; and (iii) aiding and abetting a
breach of fiduciary duty. These lawsuits have been filed in Federal courts and
seek such remedies as compensatory and punitive damages; rescission of certain
Funds' advisory agreements and distribution plans and recovery of all fees paid;
an accounting of all fund-related fees, commissions and soft dollar payments;
restitution of all unlawfully or discriminatorily obtained fees and charges; and
attorneys' and experts' fees. These actions have been consolidated for pre-trial
purposes.
Private Civil Action Alleging Failure to Ensure Participation in Class Action
Settlements
A civil lawsuit, purporting to be a class action lawsuit, has been filed
against AIM, IINA, A I M Capital Management, Inc. and the trustees of the AIM
Funds alleging that the defendants breached their fiduciary duties by failing to
ensure that the AIM Funds participated in class action settlements in which the
AIM Funds were eligible to participate. This lawsuit alleges as theories of
recovery: (i) violation of various provisions of the Federal securities laws;
(ii) common law breach of fiduciary duty; and (iii) common law negligence. This
lawsuit has been filed in Federal court and seeks such remedies as compensatory
and punitive damages; forfeiture of all commissions and fees paid by the class
of plaintiffs; and costs and attorneys' fees.
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
* * * * * *
As a result of the matters discussed above, investors in the AIM Funds might
react by redeeming their investments. This might require the Funds to sell
investments to provide for sufficient liquidity and could also have an adverse
effect on the investment performance of the Funds.
F-36
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Shareholders of Tax-Free Cash Reserve Portfolio
and the Board of Trustees of Tax-Free Investments Trust:
We have audited the accompanying statement of assets and liabilities of Tax-Free
Cash Reserve Portfolio (a portfolio of Tax-Free Investments Trust), including
the schedule of investments, as of March 31, 2005, and the related statement of
operations for the year then ended, the statements of changes in net assets for
each of the two years in the period then ended, and the financial highlights for
each of the five years in the period then ended. These financial statements and
financial highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. We were
not engaged to perform an audit of the Fund's internal control over financial
reporting. Our audits included consideration of internal control over financial
reporting as a basis for designing audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Fund's internal control over financial reporting.
Accordingly, we express no such opinion. An audit also includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements and financial highlights, assessing the accounting principles used
and significant estimates made by management, and evaluating the overall
financial statement presentation. Our procedures included confirmation of
securities owned as of March 31, 2005 by correspondence with the custodian and
brokers or by other appropriate auditing procedures where replies from brokers
were not received. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Tax-Free Cash Reserve Portfolio as of March 31, 2005, the results of its
operations for the year then ended, the changes in its net assets for each of
the two years in the period then ended, and the financial highlights for each of
the five years in the period then ended, in conformity with U.S. generally
accepted accounting principles.
Houston, Texas -s- ERNST & YOUNG LLP
May 18, 2005
F-37
TRUSTEES AND OFFICERS
As of March 31, 2005
The address of each trustee and officer of Tax-Free Investments Trust (the
"Trust"), is 11 Greenway Plaza, Suite 100, Houston, Texas 77046. Each trustee
oversees 114 portfolios in the AIM Funds complex. The trustees serve for the
life of the Trust, subject to their earlier death, incapacitation, resignation,
retirement or removal as more specifically provided in the Trust's
organizational documents. Column two below includes length of time served with
predecessor entities, if any.
<Table>
<Caption>
TRUSTEE AND/
NAME, YEAR OF BIRTH AND OR OFFICER PRINCIPAL OCCUPATION(S) OTHER DIRECTORSHIP(S)
POSITION(S) HELD WITH THE TRUST SINCE DURING PAST 5 YEARS HELD BY TRUSTEE
- --------------------------------------------------------------------------------------------------------------------
INTERESTED PERSONS
- --------------------------------------------------------------------------------------------------------------------
Robert H. Graham(1) -- 1946 1977 Director and Chairman, A I M None
Trustee, Vice Chair and Management Group Inc.
President (financial services holding
company); Director and Vice
Chairman, AMVESCAP PLC and
Chairman, AMVESCAP PLC -- AIM
Division (parent of AIM and a
global investment management
firm)
Formerly: President and Chief
Executive Officer, A I M
Management Group Inc.;
Director, Chairman and
President, A I M Advisors,
Inc. (registered investment
advisor); Director and
Chairman, A I M Capital
Management, Inc. (registered
investment advisor), A I M
Distributors, Inc. (registered
broker dealer), AIM Investment
Services, Inc., (registered
transfer agent), and Fund
Management Company (registered
broker dealer); and Chief
Executive Officer, AMVESCAP
PLC -- Managed Products
- --------------------------------------------------------------------------------------------------------------------
Mark H. Williamson(2) -- 1951 2003 Director, President and Chief None
Trustee and Executive Vice Executive Officer, A I M
President Management Group Inc.;
Director, Chairman and
President, A I M Advisors,
Inc.; Director, A I M Capital
Management, Inc. and A I M
Distributors, Inc.; Director
and Chairman, AIM Investment
Services, Inc., Fund
Management Company and INVESCO
Distributors, Inc. (registered
broker dealer); and Chief
Executive Officer, AMVESCAP
PLC -- AIM Division (parent of
AIM and a global investment
management firm)
Formerly: Director, Chairman,
President and Chief Executive
Officer, INVESCO Funds Group,
Inc.; President and Chief
Executive Officer, INVESCO
Distributors, Inc.; Chief
Executive Officer, AMVESCAP
PLC -- Managed Products
- --------------------------------------------------------------------------------------------------------------------
INDEPENDENT TRUSTEES
- --------------------------------------------------------------------------------------------------------------------
Bruce L. Crockett(3) -- 1944 1992 Chairman, Crockett Technology ACE Limited (insurance
Trustee and Chair Associates (technology company); and Captaris,
consulting company) Inc. (unified messaging
provider)
- --------------------------------------------------------------------------------------------------------------------
Bob R. Baker -- 1936 2003 Retired None
Trustee
- --------------------------------------------------------------------------------------------------------------------
Frank S. Bayley -- 1939 2001 Retired Badgley Funds, Inc.
Trustee (registered investment
Formerly: Partner, law firm of company)
Baker & McKenzie
- --------------------------------------------------------------------------------------------------------------------
James T. Bunch -- 1942 2003 Co-President and Founder, None
Trustee Green, Manning & Bunch Ltd.,
(investment banking firm); and
Director, Policy Studies, Inc.
and Van Gilder Insurance
Corporation
- --------------------------------------------------------------------------------------------------------------------
Albert R. Dowden -- 1941 2000 Director of a number of public None
Trustee and private business
corporations, including the
Boss Group Ltd. (private
investment and management);
Cortland Trust, Inc.
(Chairman) (registered
investment company); Annuity
and Life Re (Holdings), Ltd.
(insurance company); and
CompuDyne Corporation
(provider of products and
services to the public
security market)
Formerly: Director, President
and Chief Executive Officer,
Volvo Group North America,
Inc.; Senior Vice President,
AB Volvo; and director of
various affiliated Volvo
companies
- --------------------------------------------------------------------------------------------------------------------
Edward K. Dunn, Jr. -- 1935 1998 Retired None
Trustee
Formerly: Chairman, Mercantile
Mortgage Corp.; President and
Chief Operating Officer,
Mercantile-Safe Deposit &
Trust Co.; and President,
Mercantile Bankshares Corp.
- --------------------------------------------------------------------------------------------------------------------
Jack M. Fields -- 1952 1997 Chief Executive Officer, Administaff, and
Trustee Twenty First Century Group, Discovery Global
Inc. (government affairs Education Fund
company) (owner) Dos Angelos (non-profit)
Ranch, L.P.
Formerly: Chief Executive
Officer, Texana Timber LP
(sustainable forestry company)
- --------------------------------------------------------------------------------------------------------------------
Carl Frischling -- 1937 1992 Partner, law firm of Kramer Cortland Trust, Inc.
Trustee Levin Naftalis and Frankel LLP (registered investment
company)
- --------------------------------------------------------------------------------------------------------------------
Gerald J. Lewis -- 1933 2003 Chairman, Lawsuit Resolution General Chemical Group,
Trustee Services (San Diego, Inc.
California)
- --------------------------------------------------------------------------------------------------------------------
Prema Mathai-Davis -- 1950 1998 Formerly: Chief Executive None
Trustee Officer, YWCA of the USA
- --------------------------------------------------------------------------------------------------------------------
</Table>
(1) Mr. Graham is considered an interested person of the Trust because he is a
director of AMVESCAP PLC, parent of the advisor to the Trust. Prior to
October 4, 2004, Mr. Graham served as Chairman of the Board of Trustees of
the Trust.
(2) Mr. Williamson is considered an interested person of the Trust because he is
an officer and a director of the advisor to, and a director of the principal
underwriter of, the Trust.
(3) Mr. Crockett was elected Chair of the Board of Trustees of the Trust
effective October 4, 2004.
TRUSTEES AND OFFICERS (continued)
As of March 31, 2005
The address of each trustee and officer of Tax-Free Investments Trust (the
"Trust"), is 11 Greenway Plaza, Suite 100, Houston, Texas 77046. Each trustee
oversees 114 portfolios in the AIM Funds complex. The trustees serve for the
life of the Trust, subject to their earlier death, incapacitation, resignation,
retirement or removal as more specifically provided in the Trust's
organizational documents. Column two below includes length of time served with
predecessor entities, if any.
<Table>
<Caption>
TRUSTEE AND/
NAME, YEAR OF BIRTH AND OR OFFICER PRINCIPAL OCCUPATION(S) OTHER DIRECTORSHIP(S)
POSITION(S) HELD WITH THE TRUST SINCE DURING PAST 5 YEARS HELD BY TRUSTEE
- -------------------------------------------------------------------------------------------------------------------------------
Lewis F. Pennock -- 1942 1992 Partner, law firm of Pennock & Cooper None
Trustee
- -------------------------------------------------------------------------------------------------------------------------------
Ruth H. Quigley -- 1935 2001 Retired None
Trustee
- -------------------------------------------------------------------------------------------------------------------------------
Larry Soll -- 1942 2003 Retired None
Trustee
- -------------------------------------------------------------------------------------------------------------------------------
OTHER OFFICERS
- -------------------------------------------------------------------------------------------------------------------------------
Lisa O. Brinkley(4) -- 1959 2004 Senior Vice President, A I M Management N/A
Senior Vice President and Chief Group Inc.; Senior Vice President and
Compliance Officer Chief Compliance Officer, A I M
Advisors, Inc.; Vice President and Chief
Compliance Officer, A I M Capital
Management, Inc. and Vice President,
A I M Distributors, Inc., AIM Investment
Services, Inc. and Fund Management
Company
Formerly: Senior Vice President and
Compliance Director, Delaware
Investments Family of Funds and Chief
Compliance Officer, A I M Distributors,
Inc.
- -------------------------------------------------------------------------------------------------------------------------------
Russell C. Burk(5) -- 1958 2005 Formerly: Director of Compliance and N/A
Senior Vice President Assistant General Counsel, ICON
Advisers, Inc.; Financial Consultant,
Merrill Lynch; General Counsel and
Director of Compliance, ALPS Mutual
Funds, Inc.
- -------------------------------------------------------------------------------------------------------------------------------
Kevin M. Carome -- 1956 2003 Director, Senior Vice President, N/A
Senior Vice President, Secretary and General Counsel, A I M
Secretary and Chief Legal Management Group Inc. and A I M
Officer Advisors, Inc.; Director and Vice
President, INVESCO Distributors, Inc.;
Vice President, A I M Capital
Management, Inc., and AIM Investment
Services, Inc.; Director, Vice President
and General Counsel, Fund Management
Company; and Senior Vice President,
A I M Distributors, Inc.
Formerly: Senior Vice President and
General Counsel, Liberty Financial
Companies, Inc.; and Senior Vice
President and General Counsel, Liberty
Funds Group, LLC; and Vice President,
A I M Distributors, Inc.
- -------------------------------------------------------------------------------------------------------------------------------
Stuart W. Coco -- 1955 1992 Managing Director and Director of Money N/A
Vice President Market Research and Special Projects,
A I M Capital Management, Inc.; and Vice
President, A I M Advisors, Inc.
- -------------------------------------------------------------------------------------------------------------------------------
Sidney M. Dilgren -- 1961 2004 Vice President and Fund Treasurer, A I M N/A
Vice President and Treasurer Advisors, Inc.
Formerly: Senior Vice President, AIM
Investment Services, Inc.; and Vice
President, A I M Distributors, Inc.
- -------------------------------------------------------------------------------------------------------------------------------
J. Philip Ferguson(6) -- 1945 2005 Senior Vice President and Chief N/A
Vice President Investment Officer, A I M Advisors Inc.;
Director, Chairman, Chief Executive
Officer, President and Chief Investment
Officer, A I M Capital Management, Inc.;
Executive Vice President, A I M
Management Group Inc.
Formerly: Senior Vice President, AIM
Private Asset Management, Inc.; Chief
Equity Officer, and Senior Investment
Officer, A I M Capital Management, Inc.;
and Managing Partner, Beutel, Goodman
Capital Management
- -------------------------------------------------------------------------------------------------------------------------------
Karen Dunn Kelley -- 1960 1992 Director of Cash Management, Managing N/A
Vice President Director and Chief Cash Management
Officer, A I M Capital Management, Inc;
Director and President, Fund Management
Company; and Vice President, A I M
Advisors, Inc.
- -------------------------------------------------------------------------------------------------------------------------------
</Table>
(4) Ms. Brinkley was elected Senior Vice President and Chief Compliance Officer
of the Trust effective September 20, 2004.
(5) Mr. Burk was elected Senior Vice President of the Trust effective February
15, 2005.
(6) Mr. Ferguson was elected Vice President of the Trust effective February 24,
2005.
The Statement of Additional Information of the Trust includes additional
information about the Fund's Trustees and is available upon request, without
charge, by calling 1.800.959.4246.
<Table>
OFFICE OF THE FUND INVESTMENT ADVISOR DISTRIBUTOR AUDITORS
11 Greenway Plaza A I M Advisors, Inc. Fund Management Company Ernst & Young LLP
Suite 100 11 Greenway Plaza 11 Greenway Plaza 5 Houston Center
Houston, TX 77046-1173 Suite 100 Suite 100 1401 McKinney, Suite
Houston, TX 77046-1173 Houston, TX 77046-1173 1200
Houston, TX 77010-4035
COUNSEL TO THE
COUNSEL TO THE FUND INDEPENDENT TRUSTEES TRANSFER AGENT CUSTODIAN
Ballard Spahr Kramer, Levin, Naftalis AIM Investment The Bank of New York
Andrews & Ingersoll, LLP & Frankel LLP Services, Inc. 2 Hanson Place
1735 Market Street 1177 Avenue of the P.O. Box 4739 Brooklyn, NY 11217-1431
Philadelphia, PA 19103-7599 Americas Houston, TX 77210-4739
New York, NY 10036-2714
</Table>
REQUIRED FEDERAL INCOME TAX INFORMATION (UNAUDITED)
We are required by Internal Revenue Code to advise you within 60 days of the
Fund's fiscal year end as to the federal tax status of dividends paid by the
Fund during its fiscal year ended March 31, 2005.
AIM Tax-Free Cash Reserve Portfolio Institutional Class paid ordinary dividends
in the amount of $0.0123 during its tax year ended March 31, 2005. Of this
amount, 100% qualified as tax-exempt interest dividends for federal income tax
purposes.
For the purpose of preparing your annual federal income tax returns, however,
you should report the amounts as reflected on the Statement of Tax-Exempt
Income.
The Fund provides a complete list of its holdings four times in each fiscal
year, at the quarter-ends. For the second and fourth quarters, the lists appear
in the Fund's semiannual and annual reports to shareholders. For the first and
third quarters, the Fund files the lists with the Securities and Exchange
Commission (SEC) on Form N-Q. Shareholders can look up the Fund's Forms N-Q on
the SEC's Web site at sec.gov. Copies of the Fund's Forms NQ may be reviewed and
copied at the SEC's Public Reference Room at 450 Fifth Street, N.W., Washington,
D.C. 20549-0102. You can obtain information on the operation of the Public
Reference Room, including information about duplicating fee charges, by calling
1-202-942-8090 or by electronic request at the following e-mail address:
publicinfo@sec.gov. The SEC file numbers for the Fund are 811-2731 and 2-58286.
The Fund's most recent portfolio holdings, as filed on Form N-Q, are also
available at AIMinvestments.com.
A description of the policies and procedures that the fund uses to determine how
to vote proxies relating to portfolio securities is available without charge,
upon request, from our Client Services department at 800-659-1005 or on the AIM
Web site, AIMinvestments.com. On the home page, scroll down and click on AIM
Funds Proxy Policy. The information is also available on the SEC Web site,
sec.gov.
Information regarding how the fund voted proxies related to its portfolio
securities during the 12 months ended June 30, 2004 is available at our Web
site. Go to AIMinvestments.com, access the About Us tab, click on Required
Notices and then click on Proxy Voting Activity. Next, select your fund from the
drop-down menu. The information is also available on the SEC Web site, sec.gov.
[YOUR GOALS. OUR SOLUTIONS.]
--REGISTERED TRADEMARK--
[AIM INVESTMENTS LOGO]
--REGISTERED TRADEMARK--
AIMinvestments.com TFIT-AR-4 Fund Management Company
TAX-FREE CASH RESERVE PORTFOLIO
Resource Class
TAX-FREE INVESTMENTS TRUST (TFIT)
March 31, 2005
Annual Report
[COVER IMAGE]
[YOUR GOALS. OUR SOLUTIONS.]
--REGISTERED TRADEMARK--
[1980-2005 25TH [AIM INVESTMENTS LOGO]
CASH MANAGEMENT LOGO] --REGISTERED TRADEMARK--
TAX-FREE CASH RESERVE PORTFOLIO
DEAR SHAREHOLDER:
[GRAHAM This is the annual report on the performance of the Resource
PHOTO] Class of the Tax-Free Cash Reserve Portfolio of Tax-Free
Investments Trust, a money market fund investing in
short-term municipal bonds of the highest credit ratings.
The report is for the fiscal year ended March 31, 2005.
ROBERT H. GRAHAM
The Tax-Free Cash Reserve Portfolio seeks to provide as
high a level of tax-exempt income as is consistent with
preservation of capital and maintenance of liquidity. The
Portfolio invests in high quality, short-term municipal
obligations, seeking to provide income exempt from federal
taxation. The Portfolio structure is driven to some extent
by the supply and availability of municipal securities.
Liquidity is managed with daily and weekly variable-rate
[WILLIAMSON demand notes.
PHOTO]
Through a combination of short-term cash management
vehicles and selective use of a longer maturity schedule for
higher yields, the Portfolio continued to provide attractive
returns. The Portfolio maintained a relatively short
MARK H. WILLIAMSON maturity structure to take advantage of any sudden rise in
market yields.
The Portfolio continued 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 Ratings. Portfolio ratings are
subject to change and are based on several factors,
including an analysis of a Portfolio's overall credit
quality, market price exposure and management.
The table below summarizes important Portfolio data as of
fiscal year-end.
<Table>
<Caption>
================================= ===============================
YIELD WEIGHTED AVERAGE MATURITY
7 DAY SEC YIELD* MONTHLY YIELD* RANGE END OF FISCAL YEAR
1.73% 1.56% 25-42 Days 30 Days
================================= ===============================
======================================================================
NET ASSETS AT CLOSE OF FISCAL YEAR
$289.6 MILLION
*The seven-day SEC yield and monthly yield represent annualized
results for the period, net of fees and expenses, and exclude any
realized capital gains or losses. Yields will fluctuate. Had the
advisor and distributor not waived fees and/or reimbursed expenses,
seven-day and monthly yields would have been lower.
======================================================================
</Table>
YOUR INVESTMENT PORTFOLIO
Economic activity expanded at a moderate pace throughout the fiscal year,
according to Beige Book economic commentaries published by the Federal Reserve
(the Fed) that cover the period.
o Gross domestic product (GDP), generally considered the broadest measure of
economic activity, grew at an annualized rate of 4.4% during 2004.
o The S&P 500--Registered Trademark-- Index returned 6.69% during the
fiscal year.
o The Fed reported a moderate increase in consumer spending, although auto
sales were lackluster. Travel and tourism and most service industries
reported improvements, and manufacturing activity also expanded. Housing
and residential construction was robust, according to the March Beige
Book.
In an effort to forestall the inflation that may accompany robust economic
growth, the Fed increased the federal funds target rate seven times in 0.25%
increments during the reporting period, bringing the rate to 2.75% on March 22,
2005. (The federal funds target rate is a benchmark interest rate used by banks
for overnight loans to one another.) Despite the increases, the Fed said
monetary policy remained accommodative.
TAX-FREE CASH RESERVE PORTFOLIO
These rate increases helped boost yields on short-term investments such as
money market funds. The impact of changes in the federal funds target rate is
generally felt in money market funds approximately two weeks after the
announcement of an increase or decrease, but the change in yields may not be
equivalent to the change in the federal funds target rate. Management made no
changes to strategy as a result of federal funds target rate increases.
IN CONCLUSION
We are pleased to send you this report on your investment. AIM is committed to
the primary goals of safety, liquidity and yield in institutional fund
management. We are also dedicated to customer service. Should you have comments
or questions about this report, please contact one of our representatives at
800-659-1005.
Sincerely,
<Table>
/s/ ROBERT H. GRAHAM /s/ MARK H. WILLIAMSON
Robert H. Graham Mark H. Williamson
Vice Chair & President, Tax-Free Investments Trust Chairman & President, A I M Advisors, Inc.
</Table>
May 20, 2005
The views and opinions expressed in this letter are those of A I M Advisors,
Inc. These views and opinions are subject to change at any time based on factors
such as market and economic conditions. These views and opinions may not be
relied upon as investment advice or recommendations, or as an offer for a
particular security. Statements of fact are from sources considered reliable,
but A I M Advisors, Inc. makes no representation or warranty as to their
completeness or accuracy. Although historical performance is no guarantee of
future results, these insights may help you understand our investment management
philosophy.
<Table>
<Caption>
====================================
PORTFOLIO COMPOSITION BY MATURITY The number of days to maturity of each holding is determined
in accordance with the provisions of Rule 2a-7 under the
Investment Company Act of 1940.
IN DAYS, AS OF 3/31/05
1-7 78.6%
8-14 0.9
15-60 4.8
61-120 7.3
121-180 3.1
181-240 3.7 The unmanaged Standard & Poor's Composite Index of 500 Stocks
241+ 1.6 (the S&P 500 Index) is an index of common stocks frequently
used as a general measure of U.S. stock market performance.
====================================
</Table>
THIS REPORT MUST BE ACCOMPANIED OR PRECEDED BY A CURRENTLY EFFECTIVE FUND
PROSPECTUS, WHICH CONTAINS MORE COMPLETE INFORMATION, INCLUDING FEES AND
EXPENSES. READ IT CAREFULLY BEFORE YOU INVEST OR SEND MONEY.
PERFORMANCE QUOTED IS PAST PERFORMANCE AND CANNOT GUARANTEE COMPARABLE FUTURE
RESULTS; CURRENT PERFORMANCE MAY BE LOWER OR HIGHER. VISIT AIMINVESTMENTS.COM
FOR THE MOST RECENT MONTH-END PERFORMANCE.
AN INVESTMENT IN THE FUND IS NOT INSURED OR GUARANTEED BY THE FEDERAL DEPOSIT
INSURANCE CORPORATION OR ANY OTHER GOVERNMENT AGENCY AND IS NOT A DEPOSIT OR
OTHER OBLIGATION OF, OR GUARANTEED BY, A DEPOSITORY INSTITUTION. ALTHOUGH THE
FUND SEEKS TO PRESERVE THE VALUE OF YOUR INVESTMENT AT $1.00 PER SHARE, IT IS
POSSIBLE TO LOSE MONEY BY INVESTING IN THE FUND.
TAX-FREE CASH RESERVE PORTFOLIO
CALCULATING YOUR ONGOING FUND EXPENSES
<Table>
EXAMPLE
As a shareholder of the Fund, you incur expenses that you paid over the period. and expenses may not be used to estimate
ongoing costs, including management fees Simply divide your account value by the actual ending account balance or
and other Fund expenses. This example is $1,000 (for example, an $8,600 account expenses you paid for the period. You may
intended to help you understand your value divided by $1,000 = 8.6), then use this information to compare the
ongoing costs (in dollars) of investing multiply the result by the number in the ongoing costs of investing in the Fund
in the Fund and to compare these costs table under the heading entitled "Actual and other funds. To do so, compare this
with ongoing costs of investing in other Expenses Paid During Period" to estimate 5% hypothetical example with the 5%
mutual funds. The example is based on an the expenses you paid on your account hypothetical examples that appear in the
investment of $1,000 invested at the during this period. shareholder reports of the other funds.
beginning of the period and held for the
entire period October 1, 2004, through HYPOTHETICAL EXAMPLE FOR COMPARISON Please note that the expenses shown in
March 31, 2005. PURPOSES the table are meant to highlight your
ongoing costs only. Therefore, the
ACTUAL EXPENSES The table below also provides information hypothetical information is useful in
about hypothetical account values and comparing ongoing costs only, and will
The table below provides information hypothetical expenses based on the Fund's not help you determine the relative total
about actual account values and actual actual expense ratio and an assumed rate costs of owning different funds.
expenses. You may use the information in of return of 5% per year before expenses,
this table, together with the amount you which is not the Fund's actual return.
invested, to estimate the The hypothetical account values
====================================================================================================================================
ACTUAL HYPOTHETICAL
(5% ANNUAL RETURN BEFORE EXPENSES)
BEGINNING ACCOUNT ENDING ACCOUNT EXPENSES ENDING ACCOUNT EXPENSES
SHARE VALUE VALUE PAID DURING VALUE PAID DURING
CLASS (10/01/04) (3/31/05)(1) PERIOD(2) (3/31/05) PERIOD(2)
Resource $1,000.00 $1,006.90 $1.90 $1,023.04 $1.92
(1) The actual ending account value is based on the actual total return of the Fund for the period October 1, 2004, to March 31,
2005, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund's expense ratio
and a hypothetical annual return of 5% before expenses. The actual total cumulative return at net asset value for the period October
1, 2004, to March 31, 2005, was 0.69% for Resource Class shares.
(2) Expenses are equal to the Fund's annualized expense ratio (0.38% for Resource Class shares) multiplied by the average account
value over the period, multiplied by 182/365 (to reflect the one-half year period).
====================================================================================================================================
</Table>
SCHEDULE OF INVESTMENTS
March 31, 2005
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
MUNICIPAL NOTES-99.22%
ALABAMA-1.68%
Alabama (State of) Public School & College
Authority; Capital Improvement Series 1999
D RB
5.25%, 08/01/05 AA Aa3 $ 1,425 $ 1,440,302
- ---------------------------------------------------------------------------------------
Birmingham (City of) Public Educational
Building Authority Student Housing (CHF UAB
II LLC); VRD Series 2005 A RB (LOC-Regions
Bank Alabama)
2.30%, 07/01/37(b)(c) -- VMIG-1 6,000 6,000,000
- ---------------------------------------------------------------------------------------
Birmingham (City of) Public Parks &
Recreation Board (Children's Zoo Project);
VRD Series 2002 RB (LOC-AmSouth Bank)
2.40%, 05/01/07(b)(c) -- VMIG-1 1,725 1,725,000
- ---------------------------------------------------------------------------------------
Birmingham (City of) Public Parks &
Recreation Board (YMCA Project); Refunding
VRD Series 1996 RB (LOC-AmSouth Bank)
2.36%, 06/01/16(b)(c) -- VMIG-1 1,770 1,770,000
- ---------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Birmingham
Waterworks & Sewer Board); VRD Series
2002-6009 Class A COP (Acquired 11/05/02;
Cost $4,100,000)
2.32%, 01/01/43(c)(d)(e) A-1+ -- 4,100 4,100,000
- ---------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Birmingham
Waterworks & Sewer Board); VRD Series
2003-0007 Class A COP (Acquired 04/16/03;
Cost $7,370,000)
2.32%, 01/01/43(c)(d)(e) A-1+ -- 7,370 7,370,000
- ---------------------------------------------------------------------------------------
Elmore (County of) Ridge Improvement
District; Special Assessment VRD Series
2000 RB (LOC-AmSouth Bank)
2.30%, 10/01/25(b)(c) -- VMIG-1 13,335 13,335,000
- ---------------------------------------------------------------------------------------
Homewood (City of) Medical Clinic Board
(Lakeshore Foundation Project); Lease
Revenue VRD Series 2000 RB (LOC-AmSouth
Bank)
2.38%, 11/01/24(b)(c) A-1 -- 7,255 7,255,000
- ---------------------------------------------------------------------------------------
Mobile (City of); Port City Medical Clinic
Board (Infirmary Health); VRD Series 1998 B
RB
2.30%, 02/01/25(c)(f) A-1 VMIG-1 5,000 5,000,000
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
<Caption>
ALABAMA-(CONTINUED)
Montgomery (City of) Industrial Development
Board (Industrial Partners Project);
Refunding VRD Series 1989 IDR (LOC-SunTrust
Bank)
2.30%, 01/01/07(b)(c) -- Aa2 $ 430 $ 430,000
- ---------------------------------------------------------------------------------------
Oxford (City of); Unlimited Tax VRD Series
2003 GO Wts. (LOC- Branch Banking & Trust
Co.)
2.30%, 07/01/15(b)(c) -- VMIG-1 5,180 5,180,000
- ---------------------------------------------------------------------------------------
Tuscaloosa (City of) Educational Building
Authority (Stillman College Project);
Refunding Capital Improvement VRD Series
2002 A RB (LOC-AmSouth Bank)
2.40%, 10/01/23(b)(c) -- VMIG-1 2,519 2,519,000
=======================================================================================
56,124,302
=======================================================================================
ALASKA-0.04%
Alaska (State of) Industrial Development &
Export Authority (Safeway Inc. Projects);
Refunding VRD Series 1991 IDR (LOC-Deutsche
Bank A.G.)
2.15%, 06/01/05(b)(g)(h) A-1 -- 1,340 1,340,000
=======================================================================================
ARIZONA-0.83%
Apache (County of) Industrial Development
Authority (Tucson Electric Power Co.);
Floating Rate Series 1983 A IDR (LOC-Credit
Suisse First Boston)
2.35%, 12/15/18(b)(c) A-1 VMIG-1 8,225 8,225,000
- ---------------------------------------------------------------------------------------
Apache (County of) Industrial Development
Authority (Tucson Electric Power Co.-
SpringerValley); VRD Series 1985 IDR
(LOC-Credit Suisse First Boston)
2.35%, 12/01/20(b)(c) A-1 VMIG-1 1,000 1,000,000
- ---------------------------------------------------------------------------------------
Casa Grande (City of) Industrial Development
Authority (Center Park Apartments
Projects); Refunding Multi-Family Housing
VRD Series 2001 A IDR (CEP- Federal
National Mortgage Association)
2.33%, 06/15/31(c) -- VMIG-1 2,010 2,010,000
- ---------------------------------------------------------------------------------------
</Table>
F-1
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
ARIZONA-(CONTINUED)
Casa Grande (City of) Industrial Development
Authority (Quail Gardens Apartments);
Refunding Multi-Family Housing VRD Series
2001 A IDR (CEP-Federal National Mortgage
Association)
2.33%, 06/15/31(c) -- VMIG-1 $ 1,550 $ 1,550,000
- ---------------------------------------------------------------------------------------
Mesa (City of); Utility System Series 1995 RB
5.38%, 07/01/05(g)(i) AAA Aaa 1,000 1,018,554
- ---------------------------------------------------------------------------------------
Phoenix (City of) Industrial Development
Authority (Lynwood Apartments Project);
Refunding VRD Series 1994 IDR (CEP- Federal
Home Loan Bank of San Francisco)
2.34%, 10/01/25(c) A-1+ -- 5,825 5,825,000
- ---------------------------------------------------------------------------------------
Pima (County of) Industrial Development
Authority (El Dorado Hospital); VRD Series
2004 RB (LOC-Branch Banking & Trust Co.)
2.27%, 04/01/38(b)(c) -- VMIG-1 6,000 6,000,000
- ---------------------------------------------------------------------------------------
Pima (County of) Industrial Development
Authority (Tucson Electric Power
Co.-Irvington Road Project); VRD Series
1982 IDR (LOC-Credit Suisse First Boston)
2.32%, 10/01/22(b)(c) A-1 VMIG-1 2,000 2,000,000
=======================================================================================
27,628,554
=======================================================================================
ARKANSAS-0.07%
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.)
2.35%, 07/01/08(b)(c)(j) -- -- 2,500 2,500,000
=======================================================================================
CALIFORNIA-0.91%
California (State of) Economic Recovery; VRD
Series 2004 C-6 RB (LOC-Citibank N.A.)
2.28%, 07/01/23(b)(k) A-1+ VMIG-1 29,050 29,050,000
- ---------------------------------------------------------------------------------------
San Diego (County of) (Friends of Chabad
Lubavitch); VRD Series 2003 COP
(LOC-Comerica Bank)
2.38%, 01/01/23(b)(c)(j) -- -- 1,410 1,410,000
=======================================================================================
30,460,000
=======================================================================================
COLORADO-3.26%
Adams & Weld (Counties of) School District
No. 27J Brighton; Unlimited Tax Series 2004
GO
2.50%, 12/01/05(f) AAA Aaa 1,950 1,955,505
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
<Caption>
- ---------------------------------------------------------------------------------------
COLORADO-(CONTINUED)
Colorado (State of) Educational & Cultural
Facilities Authority (Denver Art Museum
Project); VRD Series 2004 RB (LOC-Wells
Fargo Bank N.A.)
2.28%, 01/01/34(b)(c) A-1+ -- $ 4,950 $ 4,950,000
- ---------------------------------------------------------------------------------------
Colorado (State of) Educational & Cultural
Facilities Authority (Regis Jesuit High
School Project); VRD Series 2003 RB
(LOC-Wells Fargo Bank N.A.)
2.28%, 12/01/33(b)(c) A-1+ -- 5,415 5,415,000
- ---------------------------------------------------------------------------------------
Colorado (State of) Educational & Cultural
Facilities Authority (Southeastern Baptist
Theological Seminary); VRD Series 2005
(LOC-Branch Banking & Trust Co.)
2.27%, 03/01/25(b)(c) -- VMIG-1 8,955 8,955,000
- ---------------------------------------------------------------------------------------
Colorado (State of) Health Facilities
Authority (Arapahoe House Project); VRD
Series 2004 A RB (LOC-Wells Fargo Bank
N.A.)
2.35%, 04/01/24(b)(c) A-1+ -- 1,200 1,200,000
- ---------------------------------------------------------------------------------------
Colorado (State of) Health Facilities
Authority (Bethesda Collinwood); Refunding
VRD Series 2004 B RB (LOC-ABN AMRO Bank
N.V.)
2.30%, 08/01/34(b)(c) A-1 -- 4,230 4,230,000
- ---------------------------------------------------------------------------------------
Colorado (State of) Health Facilities
Authority (Bethesda Living Centers);
Refunding VRD Series 2004 A RB (LOC-ABN
AMRO Bank N.V.)
2.30%, 08/01/34(b)(c) A-1 -- 5,270 5,270,000
- ---------------------------------------------------------------------------------------
Colorado (State of) Health Facilities
Authority (Bethesda Living Centers
Project); VRD Series 1999 RB (LOC-ABN AMRO
Bank N.V.)
2.30%, 08/15/30(b)(c) A-1 -- 9,855 9,855,000
- ---------------------------------------------------------------------------------------
Colorado (State of) Health Facilities
Authority (Catholic Health Initiatives);
VRD Series 2000 B RB
2.30%, 12/01/20(c) A-1+ VMIG-1 2,000 2,000,000
- ---------------------------------------------------------------------------------------
Colorado (State of) Health Facilities
Authority (Christian Living Project);
Refunding VRD Series 2002 A RB (LOC- U.S.
Bank N.A.)
2.32%, 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.)
2.28%, 12/01/20(b)(c) A-1+ -- 3,580 3,580,000
- ---------------------------------------------------------------------------------------
</Table>
F-2
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
COLORADO-(CONTINUED)
Colorado (State of) Health Facilities
Authority (Golden West Manor Inc. Project);
VRD Series 2002 A RB (LOC-U.S. Bank N.A.)
2.32%, 07/01/32(b)(c) A-1+ -- $ 4,210 $ 4,210,000
- ---------------------------------------------------------------------------------------
Colorado Springs (City of) (Pikes Peak Mental
Health); VRD Series 2003 RB (LOC-Wells
Fargo Bank N.A.)
2.28%, 03/15/23(b)(c) A-1+ -- 3,615 3,615,000
- ---------------------------------------------------------------------------------------
Concord (Metropolitan District of); Refunding
& Improvement Unlimited Tax Series 2004 GO
(LOC-Wells Fargo Bank N.A.)
2.25%, 12/01/05(b)(g)(l) A-1+ -- 1,585 1,585,000
- ---------------------------------------------------------------------------------------
Crystal Valley (Metropolitan) District No. 1;
VRD Series 2004 RB (LOC-Wells Fargo Bank
N.A.)
2.28%, 10/01/34(b)(c) A-1+ -- 2,795 2,795,000
- ---------------------------------------------------------------------------------------
Denver (City & County of) (Cottonwood Creek);
Refunding Multi-Family Housing Revenue VRD
Series 1989 A RB (CEP- Federal Home Loan
Mortgage Corp.) (Acquired 12/28/04; Cost
$1,000,000)
2.30%, 04/15/14(c)(e) A-1+ -- 1,000 1,000,000
- ---------------------------------------------------------------------------------------
Denver (City & County of) (Kentucky Circle
Village Project); VRD Series 2000 RB (LOC-
Mountain States Bank, U.S. Bank N.A.)
2.32%, 10/01/29(b)(c) A-1+ -- 1,740 1,740,000
- ---------------------------------------------------------------------------------------
Denver (City & County of) (Wellington E Web);
Refunding VRD Series 2003 C2 COP
2.30%, 12/01/29(c)(f) A-1+ VMIG-1 2,245 2,245,000
- ---------------------------------------------------------------------------------------
Denver (City & County of) (Colorado
Convention Center Project); Excise Tax VRD
Series 2001 B RB
2.30%, 09/01/25(c)(f) A-1+ VMIG-1 2,905 2,905,000
- ---------------------------------------------------------------------------------------
Idaho Springs (City of); (Safeway Inc.
Project); Refunding VRD Series 1993 IDR
(LOC-Deutsche Bank A.G.)
2.15%, 06/01/05(b)(g)(h) A-1+ -- 940 940,000
- ---------------------------------------------------------------------------------------
Jefferson (County of) School District No.
R-001; Series 2004 A TAN
3.00%, 06/30/05 SP-1+ MIG-1 30,000 30,109,955
- ---------------------------------------------------------------------------------------
Jefferson (County of) Section 14 Metropolitan
District; Refunding Unlimited Tax Series
2004 GO (LOC-U.S. Bank N.A.)
2.25%, 12/01/05(b)(g)(l) A-1+ -- 1,200 1,200,000
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
<Caption>
COLORADO-(CONTINUED)
Kipling Ridge (Metropolitan) District; VRD
Unlimited Tax Series 2005 GO (LOC-U.S. Bank
N.A.)
2.32%, 12/01/23(b)(c) A-1+ -- $ 3,725 $ 3,725,000
- ---------------------------------------------------------------------------------------
Lafayette (City of) Exempla Improvement
District (Special Improvement No. 2-01);
Refunding Special Assessment VRD Series
2002 RB (LOC-Wells Fargo Bank N.A.)
2.32%, 12/01/22(b)(c) A-1+ -- 1,000 1,000,000
- ---------------------------------------------------------------------------------------
Westminster (City of) Water & Wastewater
Utility Enterprise; VRD Series 2002 RB
2.32%, 12/01/22(c)(f) A-1+ VMIG-1 1,415 1,415,000
=======================================================================================
109,295,460
=======================================================================================
CONNECTICUT-0.04%
Connecticut (State of) Development Authority
(Central Vermont Public Service); Floating
Rate Series 1985 PCR (LOC-Royal Bank of
Scotland)
2.05%, 12/01/15(b)(m) A-1+ -- 1,400 1,400,000
=======================================================================================
DELAWARE-0.25%
Delaware (State of) Economic Development
Authority (Independent School Inc.
Project); VRD Series 2003 RB (LOC-Royal
Bank of Scotland)
2.28%, 07/01/33(b)(c) A-1+ -- 8,250 8,250,000
=======================================================================================
DISTRICT OF COLUMBIA-1.86%
District of Columbia (American Library
Association); VRD Series 2005 RB (LOC-Bank
of America, N.A.)
2.32%, 02/01/35(b)(c) -- VMIG-1 3,175 3,175,000
- ---------------------------------------------------------------------------------------
District of Columbia (American Psychology
Association); VRD Series 2003 RB (LOC-Bank
of America, N.A.)
2.35%, 03/01/28(b)(c) A-1+ -- 970 970,000
- ---------------------------------------------------------------------------------------
District of Columbia (Consortium Issue); VRD
Series 1998 RB (LOC-Wachovia Bank, N.A.)
2.29%, 07/01/23(b)(c) A-1 -- 15,755 15,755,000
- ---------------------------------------------------------------------------------------
District of Columbia (Resources for the
Future Inc.); VRD Series 1998 RB
(LOC-Wachovia Bank, N.A.)
2.35%, 08/01/29(b)(c) A-1 -- 2,015 2,015,000
- ---------------------------------------------------------------------------------------
District of Columbia (The John F. Kennedy
Center for the Performing Arts); VRD
Series 1999 RB
2.26%, 10/01/29(c)(f) A-1+ VMIG-1 19,820 19,820,000
- ---------------------------------------------------------------------------------------
</Table>
F-3
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA-(CONTINUED)
District of Columbia Pooled Loan Program
(American Council on Education); VRD Series
1998 A RB (LOC-Bank of America, N.A.)
(Acquired 01/06/08; Cost $10,000,000)
2.30%, 01/01/29(b)(c)(e) A-1+ -- $10,000 $ 10,000,000
- ---------------------------------------------------------------------------------------
District of Columbia; Refunding Unlimited Tax
Series 1993 B-1 GO
5.30%, 06/01/05(f) AAA Aaa 6,000 6,032,755
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (District of Columbia Water
& Sewer Authority); VRD Series 2003 A12 RB
(Acquired 02/24/03; Cost $4,640,000)
2.35%, 10/01/17(c)(d)(e) -- VMIG-1 4,640 4,640,000
=======================================================================================
62,407,755
=======================================================================================
FLORIDA-3.99%
ABN AMRO Munitops Ctfs. Trust (County of
Escambia); Refunding Florida Non-AMT VRD
Series 2002-24 Ctfs. (Acquired 10/24/02;
Cost $5,000,000)
2.31%, 10/01/10(c)(d)(e) -- VMIG-1 5,000 5,000,000
- ---------------------------------------------------------------------------------------
Alachua (County of) Health Facilities
Authority (Shands Teaching Hospital and
Clinics Inc.); VRD Series 2002 A RB
(LOC-SunTrust Bank)
2.29%, 12/01/12(b)(k) -- VMIG-1 10,485 10,485,000
- ---------------------------------------------------------------------------------------
Capital Projects Finance Authority (Capital
Projects Loan Program); VRD Series 1997 A
RB
2.31%, 08/01/17(c)(f) A-1+ -- 800 800,000
- ---------------------------------------------------------------------------------------
Collier (County of) Health Facilities
Authority (Cleveland Health Clinic); VRD
Hospital Series 2003 C-2 BAN (LOC- JPMorgan
Chase Bank)
2.11%, 05/11/05(b)(g)(l) A-1+ VMIG-1 3,500 3,500,000
- ---------------------------------------------------------------------------------------
Collier (County of) Industrial Development
Authority (Redlands Christian Migrant
Association Inc.); VRD Series 2001 RB (LOC-
Bank of America, N.A.)
2.35%, 12/01/26(b)(c)(j) -- -- 2,800 2,800,000
- ---------------------------------------------------------------------------------------
Dade (County of) Industrial Development
Authority (Dolphin's Stadium Project); VRD
Series 1985 D RB (LOC-Societe Generale)
2.26%, 01/01/16(b)(c) A-1+ -- 2,000 2,000,000
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
<Caption>
- ---------------------------------------------------------------------------------------
FLORIDA-(CONTINUED)
Florida (State of) Housing Finance Agency
(Huntington Place Apartments LP); VRD
Multifamily Housing Series 1985 GGG RB
(CEP-Federal National Mortgage Association)
2.28%, 12/01/13(c) A-1+ -- $ 4,500 $ 4,500,000
- ---------------------------------------------------------------------------------------
Jacksonville (City of) (Baptist Medical
Center); Commercial Paper Series 2004 RB
(LOC-Bank of America, N.A.)
1.93%, 07/27/05(b) A-1+ -- 18,000 18,000,000
- ---------------------------------------------------------------------------------------
Jacksonville (City of) Health Facilities
Authority (Samuel C. Taylor Foundation
Project); VRD Series 1998 RB (LOC-Bank of
America, N.A.) (Acquired 02/20/01; Cost
$2,600,000)
2.35%, 12/01/23(b)(c)(e)(j) -- -- 2,600 2,600,000
- ---------------------------------------------------------------------------------------
Jacksonville (City of) Health Facilities
Authority (University of Florida
Jacksonville Physicians, Inc.); VRD Series
2002 RB (LOC- Bank of America, N.A.)
2.35%, 06/01/22(b)(c) -- VMIG-1 12,140 12,140,000
- ---------------------------------------------------------------------------------------
Lee (County of) Industrial Development
Authority (Hope of Southwest Florida Inc.
Project); Refunding & Improvement VRD
Series 2004 RB (LOC-SunTrust Bank)
2.29%, 10/01/23(b)(j)(k) -- -- 4,000 4,000,000
- ---------------------------------------------------------------------------------------
Miami-Dade (County of) Educational Facilities
Authority (Carlos Albizu University
Project); VRD Series 2000 RB (LOC-Bank of
America, N.A.)
2.35%, 12/01/25(b)(c)(j) -- -- 9,200 9,200,000
- ---------------------------------------------------------------------------------------
Miami-Dade (County of) Industrial Development
Authority (Palmer Trinity Private School
Project); VRD Series 1999 IDR (LOC-Bank of
America, N.A.)
2.35%, 12/01/19(b)(c)(j) -- -- 3,100 3,100,000
- ---------------------------------------------------------------------------------------
Morgan Stanley & Co. Inc. Trust Floater Ctfs.
(State of Florida Department of
Environmental Protection); Floating Rate
Trust Ctfs. VRD Series 2002-722 RB
(Acquired 11/13/02; Cost $9,850,000)
2.32%, 07/01/22(c)(d)(e) A-1 -- 9,850 9,850,000
- ---------------------------------------------------------------------------------------
North Miami (City of) Educational Facilities
(Miami Country Day School Project); VRD
Series 1999 RB (LOC-Bank of America, N.A.)
2.35%, 08/01/19(b)(c)(j) -- -- 1,750 1,750,000
- ---------------------------------------------------------------------------------------
</Table>
F-4
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
FLORIDA-(CONTINUED)
Orange (County of) Health Facilities
Authority (Adventist Health System/Sunbelt
Inc.); VRD Series 1992 RB (LOC-SunTrust
Bank)
2.30%, 11/15/14(b)(c) A-1+ VMIG-1 $ 9,950 $ 9,950,000
- ---------------------------------------------------------------------------------------
Orange (County of) Health Facilities
Authority (Presbyterian Retirement
Communities Project); VRD Series 1998 RB
(LOC-Bank of America, N.A.)
2.35%, 11/01/28(b)(c)(j) -- -- 7,970 7,970,000
- ---------------------------------------------------------------------------------------
Orlando & Orange (Counties of) Expressway
Authority; VRD Sub Series 2005 A-3 RB
2.28%, 07/01/40(c)(f) A-1+ VMIG-1 10,000 10,000,000
- ---------------------------------------------------------------------------------------
Palm Beach (County of) Educational Facilities
Authority (Atlantic College Project);
Educational Facilities VRD Series 2001 RB
(LOC-Bank of America, N.A.)
2.35%, 12/01/31(b)(c)(j) -- -- 2,700 2,700,000
- ---------------------------------------------------------------------------------------
Palm Beach (County of) Health Facilities
Authority (Jupiter Medical Center Inc.);
VRD Series 1999 B RB (LOC-Wachovia Bank,
N.A.)
2.35%, 08/01/20(b)(c)(j) -- -- 7,250 7,250,000
- ---------------------------------------------------------------------------------------
Tampa (City of) (Agency for Community
Treatment DACCO Project); VRD Series 2001
RB (LOC-Bank of America, N.A.)
2.35%, 07/01/22(b)(c)(j) -- -- 5,080 5,080,000
- ---------------------------------------------------------------------------------------
University of North Florida Foundation, Inc.
(Parking System); VRD Series 1998 RB
(LOC-Wachovia Bank, N.A.)
2.30%, 05/01/28(b)(c) A-1 -- 800 800,000
=======================================================================================
133,475,000
=======================================================================================
GEORGIA-3.94%
ABN AMRO Munitops Ctfs. Trust (State of
Georgia); Non-AMT VRD Series 2004-15 Ctfs.
(Acquired 10/12/04; Cost $9,995,000)
2.32%, 04/06/05(c)(d)(e) -- VMIG-1 9,995 9,995,000
- ---------------------------------------------------------------------------------------
Bartow (County of) School District; Unlimited
Tax Series 2003 GO
3.00%, 11/01/05 AA+ -- 950 954,922
- ---------------------------------------------------------------------------------------
Burke (County of) Development Authority
(Oglethorpe Power Corp.); VRD Series 1994 A
PCR
2.30%, 01/01/19(c)(f) A-1+ VMIG-1 17,700 17,700,000
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
<Caption>
- ---------------------------------------------------------------------------------------
GEORGIA-(CONTINUED)
CDC Municipal Products, Inc. (Forsyth (County
of) School District); VRD Unlimited Tax
Series 2004-6 A GO (Acquired 10/20/04; Cost
$3,000,000)
2.32%, 02/01/18(c)(d)(e) A-1+ -- $ 3,000 $ 3,000,000
- ---------------------------------------------------------------------------------------
Clayton (County of) Development Authority
(Delta Airlines Project); Special
Facilities VRD Series 2000 A RB
(CEP-General Electric Capital Corp.)
2.32%, 06/01/29(c) A-1+ VMIG-1 12,000 12,000,000
- ---------------------------------------------------------------------------------------
Cobb (County of) Development Authority (YMCA
of Cobb County); VRD Series 2003 RB (LOC-
Branch Banking & Trust Co.)
2.27%, 12/01/25(b)(c) -- VMIG-1 1,000 1,000,000
- ---------------------------------------------------------------------------------------
Cobb (County of) Housing Authority (Tamarron
Apartments Project); Refunding Multi-Family
Housing VRD Series 2003 RB (CEP- Federal
Home Loan Mortgage Corp.)
2.30%, 03/01/24(c) A-1+ -- 4,820 4,820,000
- ---------------------------------------------------------------------------------------
DeKalb (County of) Hospital Authority (DeKalb
Medical Center Inc. Project); VRD Series
2000 B RB (LOC-Wachovia Bank, N.A.)
2.29%, 10/01/25(b)(c) -- VMIG-1 10,450 10,450,000
- ---------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (State of Georgia);
VRD Series 2000-1001 Class C COP (Acquired
07/26/00; Cost $20,000,000)
2.32%, 07/01/15(c)(d)(e) A-1+ -- 20,000 20,000,000
- ---------------------------------------------------------------------------------------
Floyd (County of) Development Authority
(Shorter College Project); VRD Series 1998
RB (LOC-SunTrust Bank)
2.43%, 06/01/17(b)(c) A-1+ -- 1,800 1,800,000
- ---------------------------------------------------------------------------------------
Fulton (County of) Development Authority
(Bridgeway Foundation for Education
Project); Educational Facilities VRD Series
2000 RB (LOC-Wachovia Bank, N.A.)
2.34%, 06/01/15(b)(c) A-1 -- 1,400 1,400,000
- ---------------------------------------------------------------------------------------
Fulton (County of) Development Authority
(Pace Academy Inc. Project); VRD Series
1998 RB (LOC-Bank of America, N.A.)
2.30%, 07/01/18(b)(c)(j) -- -- 5,375 5,375,000
- ---------------------------------------------------------------------------------------
Fulton (County of) Development Authority
(Woodward Academy Inc. Project); VRD Series
2002 RB (LOC-SunTrust Bank)
2.29%, 12/01/27(b)(c) -- VMIG-1 6,400 6,400,000
- ---------------------------------------------------------------------------------------
</Table>
F-5
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
GEORGIA-(CONTINUED)
Fulton (County of) Hospital Authority
(Northside Hospital Inc.); VRD Series 2003
A RAN (LOC-Wachovia Bank, N.A.)
2.29%, 10/01/18(b)(c) -- VMIG-1 $28,080 $ 28,080,000
- ---------------------------------------------------------------------------------------
Smyrna (City of) Hospital Authority
(Ridgeview Institute Inc. Project); VRD
Series 2002 RB (LOC- Wachovia Bank, N.A.)
2.34%, 11/01/27(b)(c) -- VMIG-1 2,060 2,060,000
- ---------------------------------------------------------------------------------------
Tallapoosa (City of) Development Authority
(U.S. Can Co. Project); VRD Series 1994
RB(LOC- Deutsche Bank A.G.)
2.35%, 02/01/15(b)(c) A-1 -- 2,000 2,000,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (City of Dalton); Utilities
VRD Series 2003 A02 RB (Acquired 08/25/04;
Cost $4,860,000)
2.35%, 01/01/12(c)(d)(e) -- VMIG-1 4,860 4,860,000
=======================================================================================
131,894,922
=======================================================================================
HAWAII-0.29%
Eagle Tax Exempt Trust (State of Hawaii); VRD
Series 2000-1101 COP (Acquired 01/11/01;
Cost $6,000,000)
2.32%, 12/01/16(c)(d)(e) A-1+ -- 6,000 6,000,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (State of Hawaii); Unlimited
Tax VRD Series 2003 A16 GO (Acquired
02/27/03; Cost $3,880,000)
2.35%, 07/01/18(c)(d)(e) -- VMIG-1 3,880 3,880,000
=======================================================================================
9,880,000
=======================================================================================
IDAHO-0.36%
Custer (County of) Pollution Control (Amoco
Oil Co.-Standard Oil Industry Project); VRD
Series 1983 RB
1.55%, 04/01/05(g)(h) A-1+ Aa1 10,000 10,000,000
- ---------------------------------------------------------------------------------------
Magic Valley Healthcare System Inc. (Magic
Valley Regional Medical Center Project);
VRD Series 2001 RB (LOC-Wells Fargo Bank
N.A.)
2.28%, 12/01/21(b)(c) -- VMIG-1 2,040 2,040,000
=======================================================================================
12,040,000
=======================================================================================
ILLINOIS-14.93%
ABN AMRO Munitops Ctfs. Trust (City of
Chicago); Refunding Multi-State Non-AMT VRD
Limited Tax Series 2001-34 Ctfs. (Acquired
11/15/01; Cost $10,000,000)
2.33%, 07/01/07(c)(d)(e) -- VMIG-1 10,000 10,000,000
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
<Caption>
- ---------------------------------------------------------------------------------------
ILLINOIS-(CONTINUED)
Bear Stearns Municipal Securities Trust Ctfs.
(State of Illinois Sales Tax); VRD Series
1998-25 A RB (Acquired 08/26/99; Cost
$10,000,000)
2.30%, 03/15/07(c)(d)(e) A-1 Aa2 $10,000 $ 10,000,000
- ---------------------------------------------------------------------------------------
Bear Stearns Municipal Securities Trust Ctfs.
(State of Illinois); VRD Series 2002-190 A
RB (Acquired 05/06/02; Cost $10,130,00)
2.30%, 06/05/14(c)(d)(e) A-1 -- 10,130 10,130,000
- ---------------------------------------------------------------------------------------
Chicago (City of); VRD Limited Tax Obligation
Tender Series 2004 GO (LOC-State Street
Bank & Trust Co.)
2.20%, 12/08/05(b)(g)(l) SP-1+ MIG-1 7,000 7,000,000
- ---------------------------------------------------------------------------------------
Chicago (City of); Refunding Water Revenue
Second Lien VRD Series 2004 RB
2.28%, 11/01/31(c)(f) A-1+ VMIG-1 30,000 30,000,000
- ---------------------------------------------------------------------------------------
Cook (County of) (Catholic Theological Union
Project); VRD Series 2005 RB (LOC-Bank of
Montreal)
2.30%, 02/01/35(b)(c) -- VMIG-1 4,000 4,000,000
- ---------------------------------------------------------------------------------------
Cook (County of) High School District No. 201
(J. Sterling Morton Township); School
Limited Tax Series 2004 GO
4.38%, 12/01/05(f) -- Aaa 5,000 5,074,796
- ---------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Chicago Park
District); VRD Unlimited Tax Series
2002-1306 A COP (Acquired 05/02/02; Cost
$5,500,000)
2.32%, 01/01/29(c)(d)(e) A-1+ -- 5,500 5,500,000
- ---------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Chicago
Public Building Commission); VRD Series
2003-0015 A COP (Acquired 05/14/03; Cost
$2,800,000)
2.32%, 12/01/14(c)(d)(e) A-1+ -- 2,800 2,800,000
- ---------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Chicago Water
& Sewer); VRD Series 2001-1308 COP
(Acquired 12/12/01; Cost $8,655,000)
2.32%, 11/01/26(c)(d)(e) A-1+ -- 8,655 8,655,000
- ---------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Chicago); VRD
Series 2001-1305 COP (Acquired 04/02/01;
Cost $4,950,000)
2.43%, 01/01/35(c)(d)(e) A-1+ -- 4,950 4,950,000
- ---------------------------------------------------------------------------------------
</Table>
F-6
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
ILLINOIS-(CONTINUED)
Eagle Tax Exempt Trust (County of Cook
Regional Transportation Authority); VRD
Series 2000-1303 COP (Acquired 03/26/01;
Cost $19,000,000)
2.32%, 07/01/23(c)(d)(e) A-1+ -- $19,000 $ 19,000,000
- ---------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (State of Illinois);
VRD Series 2000-1304 COP (Acquired
06/27/00; Cost $7,340,000)
2.32%, 06/01/21(c)(d)(e) A-1+ -- 7,340 7,340,000
- ---------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (State of Illinois);
VRD Unlimited Tax Series 2003-0023 A COP
(Acquired 06/12/03; Cost $3,775,000)
2.32%, 06/01/15(c)(d)(e) A-1+ -- 3,775 3,775,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (American College of Surgeons);
VRD Series 1996 RB (LOC-Northern Trust Co.)
2.17%, 08/01/26(b)(c) A-1+ -- 6,120 6,120,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (BAPS Inc. Project); VRD Series
2002 RB (LOC-Comerica Bank)
2.30%, 06/01/17(b)(c) A-1 -- 8,385 8,385,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (British Home for Retired Men &
Women); VRD Series 2001 RB (LOC-ABN AMRO
Bank N.V.)
2.30%, 11/01/27(b)(c) A-1 -- 8,740 8,740,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (Chicago Shakespeare Theater
Project); VRD Series 1999 RB (LOC-ABN AMRO
Bank N.V.) (Acquired 09/24/03; Cost
$4,100,000)
2.30%, 01/01/19(b)(c)(e) A-1 -- 4,100 4,100,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (Embers Elementary School
Project); Educational Facilities VRD Series
2002 RB (LOC-ABN AMRO Bank N.V.) (Acquired
11/04/03; Cost $2,250,000)
2.31%, 04/01/32(b)(c)(e) A-1 -- 2,250 2,250,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (Fenwick High School Project);
VRD Series 1997 RB (LOC-JPMorgan Chase
Bank)
2.30%, 03/01/32(b)(c) A-1+ -- 6,200 6,200,000
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
<Caption>
- ---------------------------------------------------------------------------------------
ILLINOIS-(CONTINUED)
Illinois (State of) Development Finance
Authority (Institute of Gas Technology
Project); VRD Series 1999 IDR (LOC-Bank of
Montreal)
2.33%, 09/01/24(b)(c) A-1+ -- $ 2,000 $ 2,000,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (Lyric Opera of Chicago Project);
VRD Series 1994 RB (LOC-Northern Trust Co.,
Bank of Montreal, JPMorgan Chase Bank)
2.30%, 12/01/28(b)(c) A-1+ VMIG-1 49,800 49,800,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (Mount Carmel High School
Project); VRD Series 2003 RB (LOC-JPMorgan
Chase Bank)
2.30%, 07/01/33(b)(c) -- VMIG-1 5,600 5,600,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (The Museum of Contemporary Art
Project); VRD Series 1994 RB (LOC- JPMorgan
Chase Bank, Northern Trust Co.)
2.30%, 02/01/29(b)(c) A-1 VMIG-1 14,950 14,950,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (North Shore Country Day School);
VRD Series 2003 RB (LOC-Northern Trust Co.)
2.30%, 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-ABN AMRO
Bank N.V.) (Acquired 01/29/03; Cost
$2,975,000)
2.30%, 07/01/41(b)(c)(e) 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)
2.30%, 07/01/33(b)(c) -- VMIG-1 4,600 4,600,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Development Finance
Authority (West Central Illinois
Educational Project); VRD Series 2002 RB
(LOC-JPMorgan Chase Bank)
2.30%, 09/01/32(b)(c) -- VMIG-1 4,800 4,800,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Educational Facilities
Authority (Aurora University); VRD Cultural
Pooled Financing Series 1998 RB (LOC- Bank
of America, N.A.)
2.32%, 03/01/28(b)(c) A-1+ -- 6,670 6,670,000
- ---------------------------------------------------------------------------------------
</Table>
F-7
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
ILLINOIS-(CONTINUED)
Illinois (State of) Educational Facilities
Authority (Aurora University); VRD Series
2002 RB (LOC-Fifth Third Bank)
2.35%, 03/01/32(b)(c) -- VMIG-1 $ 3,300 $ 3,300,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Educational Facilities
Authority (Blackburn University); Cultural
Pooled Financing VRD Series 1999 RB
(LOC-Bank of America, N.A.)
2.32%, 07/01/29(b)(c) A-1+ -- 1,385 1,385,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Educational Facilities
Authority (Chicago Childrens Museum); VRD
Series 1994 RB (LOC-JPMorgan Chase Bank)
2.30%, 02/01/28(b)(c) A-1 VMIG-1 4,250 4,250,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Educational Facilities
Authority (Lincoln Park Society); VRD
Series 1999 RB (LOC-JPMorgan Chase Bank)
2.30%, 01/01/29(b)(c) A-1+ -- 2,825 2,825,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Educational Facilities
Authority (National Louis University); VRD
Series 1999 B RB (LOC-JPMorgan Chase Bank)
2.30%, 06/01/29(b)(c) A-1+ -- 2,300 2,300,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Finance Authority
(Illinois Institute of Technology); VRD
Series 2004 RB (LOC-Bank of Montreal)
2.30%, 12/01/24(b)(c) -- VMIG-1 5,000 5,000,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Finance Authority (Jewish
Charities); VRD Series 2004 A RN (LOC-Bank
of Montreal)
2.30%, 06/30/05(b)(c) A-1+ -- 7,630 7,630,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Finance Authority (Kohl
Children's Museum); VRD Series 2004 RB
(LOC-Fifth Third Bank)
2.30%, 07/01/34(b)(c) -- VMIG-1 2,680 2,680,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Finance Authority (Mercy
Alliance Project); VRD Series 2005 RB
(LOC-M&I Marshall & Ilsley Bank)
2.31%, 02/15/35(b)(c) -- VMIG-1 7,000 7,000,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Finance Authority
(Richard H. Driehaus Museum); VRD Series
2005 RB (LOC- Northern Trust Co.)
2.30%, 02/01/35(b)(c) -- VMIG-1 2,900 2,900,000
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
<Caption>
- ---------------------------------------------------------------------------------------
ILLINOIS-(CONTINUED)
Illinois (State of) Finance Authority
(Sunshine Through Golf Foundation Project);
VRD Series 2004 A RB (LOC-ABN AMRO Bank
N.V.)
2.31%, 11/01/24(b)(c) A-1 -- $ 2,100 $ 2,100,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Finance Authority; VRD
Series 2005 RAN (LOC-Bank of Montreal)
2.30%, 06/30/05(b)(c) A-1+ -- 3,300 3,300,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Health Facilities
Authority (Bensenville Home Society); VRD
Series 1989 A RB (LOC-JPMorgan Chase Bank)
2.32%, 02/15/19(b)(c) A-1 -- 1,100 1,100,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Health Facilities
Authority (OSF Healthcare System); VRD
Series 2002 RB (LOC-Fifth Third Bank)
2.27%, 11/15/27(b)(k) A-1+ VMIG-1 7,100 7,100,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Health Facilities
Authority (Peace Memorial Ministries); VRD
Series 2003 B RB (LOC-ABN AMRO Bank N.V.)
2.30%, 08/15/33(b)(c) A-1 -- 9,845 9,845,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Health Facilities
Authority (St. Lukes Medical Center); VRD
Series 1998 B RB
2.28%, 11/15/23(c)(f) A-1+ VMIG-1 1,000 1,000,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Health Facilities
Authority; Revolving Fund Pooled VRD Series
1985 C RB (LOC- JPMorgan Chase Bank)
2.30%, 08/01/15(b)(c) A-1+ VMIG-1 7,000 7,000,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Health Facilities
(Franciscan Eldercare Service); VRD Series
2001 RB (LOC-ABN AMRO Bank N.V.)
2.30%, 05/15/32(b)(c) A-1 -- 10,800 10,800,000
- ---------------------------------------------------------------------------------------
Illinois (State of) Regional Transportation
Authority; Series 1994 A RB
5.80%, 06/01/05(f) AAA Aaa 3,300 3,321,356
- ---------------------------------------------------------------------------------------
Illinois (State of) Toll Highway Authority;
Refunding Toll Highway VRD Series 1998 B RB
2.25%, 01/01/16(c)(f) -- VMIG-1 15,900 15,900,000
- ---------------------------------------------------------------------------------------
2.25%, 01/01/17(c)(f) -- VMIG-1 4,600 4,600,000
- ---------------------------------------------------------------------------------------
Lombard (City of) (Clover Creek Apartments
Project); VRD Multi-Family Housing Series
2000 RB (CEP-Federal National Mortgage
Association)
2.31%, 12/15/30(c) A-1+ -- 14,855 14,855,000
- ---------------------------------------------------------------------------------------
</Table>
F-8
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
ILLINOIS-(CONTINUED)
Macon (County of) (Millikin University); VRD
Series 1999 RB
2.30%, 10/01/28(c)(f) A-1+ -- $ 4,500 $ 4,500,000
- ---------------------------------------------------------------------------------------
McCook (City of) (Illinois Saint Andrew
Society); VRD Series 1996 A RB
(LOC-Northern Trust Co.)
2.32%, 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-ABN AMRO Bank
N.V.)
2.30%, 12/01/14(b)(c) A-1 -- 2,470 2,470,000
- ---------------------------------------------------------------------------------------
Quincy (City of) (Blessing Hospital Project);
VRD Series 2004 RB (LOC-JPMorgan Chase
Bank)
2.30%, 11/15/33(b)(c) A-1+ VMIG-1 13,900 13,900,000
- ---------------------------------------------------------------------------------------
Rochelle (City of) Hospital Facility
(Rochelle Community Hospital Project); VRD
Series 2004 RB (LOC-JPMorgan Chase Bank.)
2.30%, 08/01/34(b)(c) -- VMIG-1 5,200 5,200,000
- ---------------------------------------------------------------------------------------
Rockford (City of) (Wesley Willows); VRD
Series 2002 RB (LOC-M&I Marshall & Isley
Bank)
2.31%, 04/01/32(b)(k) A-1 -- 9,000 9,000,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (Central Lake County Joint
Action Water Agency); VRD Series 2003 B18
RB (Acquired 02/19/03; Cost $3,150,000)
2.35%, 05/01/20(c)(d)(e) -- VMIG-1 3,150 3,150,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (City of Chicago Board of
Education); VRD Unlimited Tax Series 2000
A4 GO (Acquired 11/12/03; Cost $4,845,000)
2.11%, 11/10/05(d)(e)(g)(l)(n) -- VMIG-1 4,845 4,845,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (City of Chicago Emergency
Telephone System); VRD Limited Tax Series
2002 A44 GO (Acquired 08/02/02; Cost
$7,845,000)
2.35%, 01/01/20(c)(d)(e) -- VMIG-1 7,845 7,845,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (City of Chicago); VRD
Limited Tax Series 2000 A12 GO (Acquired
10/13/00; Cost $10,000,000)
2.35%, 01/01/23(c)(d)(e) -- VMIG-1 10,000 10,000,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (Cook County Regional
Transportation Authority); VRD Series 2001
A93 RB (Acquired 10/10/01; Cost $3,665,000)
2.35%, 07/01/27(c)(d)(e) -- VMIG-1 3,665 3,665,000
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
<Caption>
ILLINOIS-(CONTINUED)
Wachovia MERLOTs (Cook County Regional
Transportation Authority); VRD Unlimited
Tax Series 2002 A41 GO (Acquired 07/25/02;
Cost $17,775,000)
2.35%, 06/01/17(c)(d)(e) -- VMIG-1 $17,775 $ 17,775,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (Cook County); VRD Unlimited
Tax Series 2003 B11 GO (Acquired 01/29/03;
Cost $6,995,000)
2.35%, 11/15/25(c)(d)(e) -- VMIG-1 6,995 6,995,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (Regional Transportation
Authority); VRD Series 2001 A69 RB
(Acquired 11/09/04; Cost $11,770,000)
2.11%, 11/10/05(d)(e)(g)(l)(n) -- VMIG-1 11,770 11,770,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (State of Illinois); VRD
Unlimited Tax Series 2001 A124 GO (Acquired
11/26/01; Cost $7,905,000)
2.35%, 11/01/26(c)(d)(e) A-1 -- 7,905 7,905,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (University of Illinois);
VRD Series 2000 S GO (Acquired 03/20/00;
Cost $7,400,000)
2.35%, 04/01/30(c)(d)(e) -- VMIG-1 7,400 7,400,000
=======================================================================================
499,851,152
=======================================================================================
INDIANA-3.26%
ABN AMRO Munitops Ctfs. Trust (Township of
Wayne, County of Marion School Building
Corp.); Multi-State Non-AMT VRD Series
2003-27 RB (Acquired 11/12/03; Cost
$13,795,000)
2.33%, 07/15/11(c)(d)(e) -- VMIG-1 13,795 13,795,000
- ---------------------------------------------------------------------------------------
CDC Municipal Products, Inc. (Indiana State
of Transportation Finance Authority);
Highway VRD Series 2004-5 A RB (Acquired
10/21/04; Cost $2,000,000)
2.32%, 12/01/18(c)(d)(e) A-1+ -- 2,000 2,000,000
- ---------------------------------------------------------------------------------------
Indiana (State of) Bond Bank; Advance Funding
Program Series 2005 A RN
3.25%, 01/26/06 SP-1+ MIG-1 20,000 20,152,637
- ---------------------------------------------------------------------------------------
Indiana (State of) Educational Facilities
Authority (Indiana Wesleyan University
Project); Educational Facilities VRD Series
1998 A RB (LOC-JPMorgan Chase Bank)
2.30%, 06/01/28(b)(c) A-1+ -- 9,600 9,600,000
- ---------------------------------------------------------------------------------------
</Table>
F-9
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
INDIANA-(CONTINUED)
Indiana (State of) Educational Facilities
Authority (Wabash College Project);
Educational Facilities Series 2003 RB (LOC-
JPMorgan Chase Bank)
2.30%, 12/01/23(b)(c) -- VMIG-1 $ 5,870 $ 5,870,000
- ---------------------------------------------------------------------------------------
Indiana (State of) Health Facilities
Financing Authority (Community Hospitals
Project); VRD Hospital Series 2000 A RB
(LOC-Bank of America, N.A.)
2.30%, 07/01/28(b)(c) A-1+ -- 3,892 3,892,000
- ---------------------------------------------------------------------------------------
Indiana (State of) Health Facilities
Financing Authority (Deaconess Hospital
Inc.); Hospital VRD Series 1992 ACES RB
(LOC-Fifth Third Bank)
2.30%, 01/01/22(b)(c) A-1+ -- 11,920 11,920,000
- ---------------------------------------------------------------------------------------
Indiana (State of) Health Facilities
Financing Authority (Golden Years
Homestead); VRD Series 2002 A RB (LOC-Wells
Fargo Bank N.A.)
2.28%, 06/01/25(b)(c) A-1+ -- 6,500 6,500,000
- ---------------------------------------------------------------------------------------
Kokomo (City of) Hospital Authority (St.
Joseph's Hospital Center); Refunding
Hospital Series 1993 RB
6.35%, 08/15/05(g)(i) AAA Aaa 3,000 3,050,845
- ---------------------------------------------------------------------------------------
Petersburg (City of) Pollution Control
(Indianapolis Power & Light Co.); Refunding
VRD Series 1995 B PCR
2.30%, 01/01/23(c)(f) -- VMIG-1 23,000 23,000,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (County of Porter Jail
Building Corp.); VRD Series 2001 A58 RB
(Acquired 11/12/03; Cost $9,410,000)
2.11%, 11/10/05(d)(e)(g)(l)(n) -- VMIG-1 9,410 9,410,000
=======================================================================================
109,190,482
=======================================================================================
IOWA-1.20%
Iowa (State of) Finance Authority
(Morningside College Project); Private
College Facility VRD Series 2002 RB (LOC-
U.S. Bank N.A.)
2.35%, 10/01/32(b)(c) A-1+ -- 2,320 2,320,000
- ---------------------------------------------------------------------------------------
Iowa (State of) Finance Authority Retirement
Community (Deerfield Retirement Community);
VRD Series 2003 A RB (LOC-ABN AMRO Bank
N.V.)
2.30%, 12/01/33(b)(c) A-1 -- 15,000 15,000,000
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
<Caption>
- ---------------------------------------------------------------------------------------
IOWA-(CONTINUED)
Iowa (State of) Higher Education Loan
Authority (Graceland Private College); VRD
Series 2003 RB (LOC-Bank of America, N.A.)
2.35%, 02/01/33(b)(c) -- VMIG-1 $ 2,000 $ 2,000,000
- ---------------------------------------------------------------------------------------
Iowa (State of) School Corps.; School Cash
Anticipation Program Series 2004 A Wts.
Ctfs.
3.00%, 06/30/05(f) -- MIG-1 10,000 10,034,200
- ---------------------------------------------------------------------------------------
Iowa (State of); School Cash Anticipation
Program Series 2005 B RN
3.50%, 01/27/06(f) -- MIG-1 10,700 10,805,204
=======================================================================================
40,159,404
=======================================================================================
KANSAS-1.27%
Eagle Tax Exempt Trust (County of Wyandotte
Unified Government Utility System); VRD
Series 2004-0038 A COP (Acquired 09/08/04;
Cost $5,000,000)
2.32%, 09/01/21(c)(d)(e) A-1+ -- 5,000 5,000,000
- ---------------------------------------------------------------------------------------
Kansas (State of) Development Finance
Authority (Deaconess Long Term Care);
Health Facilities VRD Series 2000 C RB
(LOC-ABN AMRO Bank N.V.)
2.29%, 05/15/30(b)(c) -- VMIG-1 4,380 4,380,000
- ---------------------------------------------------------------------------------------
Leawood (City of); Unlimited Tax Temporary
Notes Series 2004-2 GO
3.00%, 10/01/05 -- MIG-1 14,000 14,091,450
- ---------------------------------------------------------------------------------------
Lenexa (City of) Health Care Facilities
(Lakeview Village Inc.); VRD Series 2002 B
RB (LOC-ABN AMRO Bank N.V.)
2.30%, 05/15/32(b)(c) A-1 -- 7,500 7,500,000
- ---------------------------------------------------------------------------------------
Olathe (City of) Health Facilities (Cedar
Lake Village Inc. Project); VRD Series 2004
RB (LOC-Bank of America, N.A.)
2.30%, 12/01/29(b)(c) -- VMIG-1 5,000 5,000,000
- ---------------------------------------------------------------------------------------
Olathe (City of) Recreational Facilities
(YMCA of Greater Kansas City Project); VRD
Series 2002 B RB (LOC-Bank of America,
N.A.)
2.35%, 11/01/18(b)(c) -- VMIG-1 3,100 3,100,000
- ---------------------------------------------------------------------------------------
Wichita (City of) Recreational Facilities
(YMCA of Wichita Project); VRD Series 1998
XI RB (LOC-Bank of America, N.A.) (Acquired
02/15/01; Cost $3,500,000)
2.35%, 08/01/09(b)(c)(e) A-1+ -- 3,500 3,500,000
=======================================================================================
42,571,450
=======================================================================================
</Table>
F-10
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
KENTUCKY-1.20%
Kentucky (State of) Area Development
Districts Financing Trust (Weekly
Acquisition-Ewing); Lease Program VRD
Series 2000 RB (LOC-Wachovia Bank, N.A.)
2.39%, 06/01/33(b)(c) A-1 -- $ 5,660 $ 5,660,000
- ---------------------------------------------------------------------------------------
Kentucky (State of) Asset/Liability
Commission; General Funding Series 2004 A
TRAN
3.00%, 06/29/05 SP-1+ MIG-1 15,000 15,052,221
- ---------------------------------------------------------------------------------------
Newport (City of) Kentucky League of Cities
Funding Trust; Lease Program VRD Series
2002 RB (LOC-U.S. Bank N.A.)
2.19%, 04/01/32(b)(c) -- VMIG-1 19,600 19,600,000
=======================================================================================
40,312,221
=======================================================================================
LOUISIANA-0.88%
Eagle Tax Exempt Trust (City of New Orleans);
VRD Series 2000-1801 COP (Acquired
10/10/00; Cost $6,000,000)
2.32%, 12/01/21(c)(d)(e) A-1+ -- 6,000 6,000,000
- ---------------------------------------------------------------------------------------
Louisiana (State of) Public Facilities
Authority (Glen Retirement System Project);
VRD Series 2001 RB (LOC-AmSouth Bank)
(Acquired 08/15/01; Cost $3,270,000)
2.40%, 08/01/16(b)(c)(e) -- VMIG-1 3,270 3,270,000
- ---------------------------------------------------------------------------------------
Louisiana (State of) Regional Transit
Authority; Lease Series 1998 Long Fund RB
6.13%, 05/01/05(g)(i) AAA Aaa 1,800 1,807,860
- ---------------------------------------------------------------------------------------
Louisiana (State of); Unlimited Tax Series
1995 A GO
6.00%, 05/15/05(g)(i) AAA Aaa 5,890 6,036,193
- ---------------------------------------------------------------------------------------
Series 1998 B GO
5.50%, 04/15/05(f) AAA Aaa 1,775 1,777,874
- ---------------------------------------------------------------------------------------
Series 2003 A GO
6.00%, 05/01/05(o) AAA Aaa 10,665 10,701,707
=======================================================================================
29,593,634
=======================================================================================
MAINE-0.20%
JPMorgan PUTTERs (State of Maine Turnpike
Authority); VRD Turnpike Series 2004 546 RB
(Acquired 10/28/04; Cost $1,800,000)
2.32%, 07/01/12(c)(d)(e) -- VMIG-1 1,800 1,800,000
- ---------------------------------------------------------------------------------------
Maine (State of) Housing Authority; Mortgage
Series 2003 E-1 RB
2.26%, 11/15/30(c)(f) A-1+ VMIG-1 4,785 4,785,000
=======================================================================================
6,585,000
=======================================================================================
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
<Caption>
MARYLAND-0.55%
Frederick (County of) Retirement Community
(Buckingham's Choice Inc. Project); VRD
Series 1997 C RB (LOC-Branch Banking &
Trust Co.)
2.31%, 01/01/27(b)(c) A-1 -- $ 6,000 $ 6,000,000
- ---------------------------------------------------------------------------------------
Howard (County of) Economic Development
(Norbel School Inc. Project); VRD Series
2001 RB (LOC-Branch Banking & Trust Co.)
2.27%, 02/01/28(b)(c) -- Aa3 4,785 4,785,000
- ---------------------------------------------------------------------------------------
Maryland (State of) Economic Development
Corp. (YMCA of Central Maryland Inc.
Project); VRD Series 2003 RB (LOC- Branch
Banking & Trust Co.)
2.27%, 04/01/28(b)(c) -- VMIG-1 3,800 3,800,000
- ---------------------------------------------------------------------------------------
Morgan Stanley & Co. Inc. Trust Floater Ctfs.
(State of Maryland Health & Higher
Educational Facilities Authority); VRD
Floating Rate Trust Ctfs. Series 2003-829
RB (Acquired 06/19/03; Cost $3,800,000)
2.32%, 08/15/38(c)(d)(e) -- VMIG-1 3,800 3,800,000
=======================================================================================
18,385,000
=======================================================================================
MASSACHUSETTS-0.65%
Massachusetts (State of) Health & Educational
Facilities Authority (Fairview Extended
Care Services Inc.); Refunding VRD Series
1997 B RB (LOC-Bank of America, N.A.)
2.29%, 01/01/21(b)(c) -- VMIG-1 21,620 21,620,000
=======================================================================================
MICHIGAN-4.91%
Bruce (Township of) Hospital Finance
Authority (Sisters Charity of St. Joseph);
Health Care System VRD Series 1988 A RB
1.80%, 05/02/05(f)(g)(h) A-1+ VMIG-1 2,000 2,000,000
- ---------------------------------------------------------------------------------------
Dearborn (City of) Economic Development Corp.
(Henry Ford Village Inc. Project); VRD
Limited Tax Series 1998 IDR (LOC- Comerica
Bank)
2.33%, 10/01/23(b)(c)(p) -- -- 8,600 8,600,000
- ---------------------------------------------------------------------------------------
Eagle Tax-Exempt Trust (City of Detroit
School District); VRD Unlimited Tax Series
2002-6014 A GO (Acquired 11/06/02; Cost
$7,105,000)
2.32%, 05/01/32(c)(d)(e) A-1+ -- 7,105 7,105,000
- ---------------------------------------------------------------------------------------
</Table>
F-11
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
MICHIGAN-(CONTINUED)
Kalamazoo (County of) Economic Development
Corp. (Heritage Community Project);
Refunding VRD Limited Tax Series 2004 RB
(LOC-Fifth Third Bank)
2.28%, 05/15/17(b)(c) A-1+ -- $ 5,405 $ 5,405,000
- ---------------------------------------------------------------------------------------
Lake Orion (City of) Community School
District; Refunding Unlimited Tax Series
1994 GO
7.00%, 05/01/05(g)(i) AAA Aaa 13,170 13,357,320
- ---------------------------------------------------------------------------------------
Michigan (State of) Higher Educational
Facilities Authority (Hope College);
Refunding VRD Limited Tax Series 2004 GO
(LOC-JPMorgan Chase Bank)
2.31%, 04/01/34(b)(c) A-1 -- 1,900 1,900,000
- ---------------------------------------------------------------------------------------
Michigan (State of) Hospital Finance
Authority (Holland Community Hospital); VRD
Series 2004 B RB (LOC-JPMorgan Chase Bank)
2.29%, 01/01/34(b)(c) -- VMIG-1 2,000 2,000,000
- ---------------------------------------------------------------------------------------
Michigan (State of) Municipal Bond Authority;
Series 2004 B-2 RN (LOC-JPMorgan Chase
Bank)
3.00%, 08/23/05(b) SP-1+ -- 15,000 15,083,289
- ---------------------------------------------------------------------------------------
Michigan (State of) Strategic Fund (Van Andel
Research Institute Project); VRD Limited
Tax Series 1997 RB (LOC-ABN AMRO Bank N.V.)
2.30%, 11/01/27(b)(c) A-1 -- 16,200 16,200,000
- ---------------------------------------------------------------------------------------
Michigan (State of) Strategic Fund (Washtenaw
Christian Project); VRD Limited Tax Series
2003 RB (LOC-ABN AMRO Bank N.V.)
2.29%, 11/01/33(b)(c) A-1 -- 1,500 1,500,000
- ---------------------------------------------------------------------------------------
Michigan (State of); Unlimited Tax Series
2004 A GO
3.50%, 09/30/05 SP-1+ MIG-1 40,000 40,283,819
- ---------------------------------------------------------------------------------------
Oakland (County of) Economic Development
Corp. (Rochester College Project); VRD
Limited Obligation Series 2001 RB (LOC-
JPMorgan Chase Bank)
2.30%, 08/01/21(b)(c) -- VMIG-1 6,900 6,900,000
- ---------------------------------------------------------------------------------------
Troy (City of) School District; Refunding
School Building & Site Unlimited Tax Series
2004 GO
3.00%, 05/01/05 AA Aa1 1,805 1,807,356
- ---------------------------------------------------------------------------------------
University of Michigan; VRD Hospital Series
1995 A RB
2.26%, 12/01/27(c) A-1+ VMIG-1 2,340 2,340,000
- ---------------------------------------------------------------------------------------
University of Michigan; VRD Medical Services
Plan Series 1995 A RB
2.26%, 12/01/27(c) A-1+ VMIG-1 3,160 3,160,000
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
<Caption>
MICHIGAN-(CONTINUED)
Wachovia MERLOTs (City of Detroit Sewage
Disposal System); VRD Series 2001 A112 RB
(Acquired 10/31/01; Cost $4,895,000)
2.35%, 07/01/32(c)(d)(e) -- VMIG-1 $ 4,895 $ 4,895,000
- ---------------------------------------------------------------------------------------
VRD Series 2003 B41 RB (Acquired 07/09/03;
Cost $6,755,000)
2.35%, 07/01/26(c)(d)(e) -- VMIG-1 6,755 6,755,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (City of Detroit Water
Supply System); VRD Series 2000 D RB
(Acquired 01/21/00; Cost $10,000,000)
2.35%, 07/01/29(c)(d)(e) -- VMIG-1 10,000 10,000,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (State of Michigan Hospital
Finance Authority); VRD Series 1997 X RB
(Acquired 12/12/03; Cost $15,000,000)
2.35%, 08/15/24(c)(d)(e) -- VMIG-1 15,000 15,000,000
=======================================================================================
164,291,784
=======================================================================================
MINNESOTA-3.59%
JPMorgan PUTTERs (State of Minnesota Public
Facilities Authority); VRD Drinking Water
Series 2002-319 COP (Acquired 07/31/03;
Cost $14,000,000)
2.30%, 03/01/21(c)(d)(e) A-1 -- 14,000 14,000,000
- ---------------------------------------------------------------------------------------
Minnesota (State of); Refunding Unlimited Tax
Series 2003 GO
2.00%, 08/01/05 AAA Aa1 2,240 2,244,075
- ---------------------------------------------------------------------------------------
Rochester (City of) Health Care Facilities
(Mayo Foundation); Commercial Paper Notes,
Adjustable Tender Series 1988 F
2.05%, 05/09/05 A-1+ -- 20,000 20,000,000
- ---------------------------------------------------------------------------------------
Series 2000 B
2.03%, 06/08/05 A-1+ -- 20,500 20,500,000
- ---------------------------------------------------------------------------------------
Series 2001 A
2.05%, 06/07/05 -- VMIG-1 15,000 15,000,000
- ---------------------------------------------------------------------------------------
Series 2001 B
2.05%, 06/07/05 -- VMIG-1 13,600 13,600,000
- ---------------------------------------------------------------------------------------
Series 2001 C
2.03%, 05/10/05 -- VMIG-1 17,600 17,600,000
- ---------------------------------------------------------------------------------------
St. Paul (City of) Housing & Redevelopment
Authority (Science Museum of Minnesota);
VRD Series 1997 A RB (LOC- U.S. Bank N.A.)
2.33%, 05/01/27(b)(c) -- VMIG-1 17,360 17,360,000
=======================================================================================
120,304,075
=======================================================================================
</Table>
F-12
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
MISSISSIPPI-2.17%
ABN AMRO Munitops Ctfs. Trust (State of
Mississippi Development Board-Jackson Water
& Sewer); Multi-State Non-AMT VRD Series
2002-22 Ctfs. (Acquired 09/10/03; Cost
$9,995,000)
2.33%, 09/01/10(c)(d)(e) -- VMIG-1 $ 9,995 $ 9,995,000
- ---------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (State of
Mississippi); VRD Unlimited Tax Series
2002-6018 A COP (Acquired 11/20/02; Cost
$3,200,000)
2.32%, 11/01/22(c)(d)(e) A-1+ -- 3,200 3,200,000
- ---------------------------------------------------------------------------------------
Mississippi (State of) Business Finance Corp.
(Jackson Medical Mall); VRD Series 2000 A
RB (LOC-JPMorgan Chase Bank)
2.30%, 11/01/18(b)(c) A-1 -- 5,300 5,300,000
- ---------------------------------------------------------------------------------------
Mississippi (State of) Business Finance Corp.
(Mississippi College Project); VRD Series
2003 RB (LOC-AmSouth Bank)
2.40%, 07/01/23(b)(c) -- VMIG-1 9,300 9,300,000
- ---------------------------------------------------------------------------------------
Perry (County of) (Leaf River Forest Products
Project); Refunding VRD Series 2002 PCR
(LOC- Citibank N.A.)
2.25%, 02/01/22(b)(c) A-1+ -- 36,500 36,500,000
- ---------------------------------------------------------------------------------------
University of Mississippi Educational
Building Corp. (Campus Improvements
Project); VRD Series 2000 RB
2.31%, 10/01/20(c)(f) -- VMIG-1 8,235 8,235,000
=======================================================================================
72,530,000
=======================================================================================
MISSOURI-1.15%
Missouri (State of) Development Finance Board
(Center of Creative Arts Project); Cultural
Facilities VRD Series 2004 RB (LOC-
National City Bank)
2.32%, 07/01/24(b)(c) -- VMIG-1 2,100 2,100,000
- ---------------------------------------------------------------------------------------
Missouri (State of) Health & Educational
Facilities Authority (Lutheran Senior
Services); Health Facilities VRD Series
2000 RB (LOC-U.S. Bank N.A.)
2.30%, 02/01/31(b)(c) -- VMIG-1 29,000 29,000,000
- ---------------------------------------------------------------------------------------
Missouri (State of) Health & Educational
Facilities Authority (Washington University
Project); Educational Facilities VRD Series
1985 B RB
2.33%, 09/01/10(c) A-1+ VMIG-1 1,100 1,100,000
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
<Caption>
MISSOURI-(CONTINUED)
Platte (County of) Industrial Development
Authority (Southern Platte County Athletic
Assoc. Inc.); Recreational Facilities VRD
Series 2005 A RB (LOC-Bank of America,
N.A.)
2.32%, 10/01/25(b)(c) -- VMIG-1 $ 2,140 $ 2,140,000
- ---------------------------------------------------------------------------------------
St. Louis (County of) Industrial Development
Authority (Friendship Village of South
County); VRD Series 2002 B IDR (LOC-ABN
AMRO Bank N.V.)
2.30%, 09/01/22(b)(c) A-1 -- 2,915 2,915,000
- ---------------------------------------------------------------------------------------
St. Louis (County of) Industrial Development
Authority (Whitfield School Inc.);
Educational Facilities Refunding VRD Series
2004 B IDR (LOC- U.S. Bank N.A.)
2.32%, 06/15/24(b)(c) A-1+ -- 1,400 1,400,000
=======================================================================================
38,655,000
=======================================================================================
MONTANA-0.34%
Montana (State of) Facility Finance Authority
(Mission Ridge Project); VRD Series 2002 RB
(LOC-ABN AMRO Bank N.V.)
2.31%, 08/01/27(b)(c)(j) -- -- 11,365 11,365,000
=======================================================================================
NEBRASKA-1.32%
Nebhelp Inc.; Multi-Mode VRD Series 1985 A RB
2.35%, 12/01/15(c)(f) A-1+ VMIG-1 5,995 5,995,000
- ---------------------------------------------------------------------------------------
VRD Series 1985 B RB
2.35%, 12/01/15(c)(f) A-1+ VMIG-1 3,590 3,590,000
- ---------------------------------------------------------------------------------------
VRD Series 1985 D RB
2.35%, 12/01/15(c)(f) A-1+ VMIG-1 5,865 5,865,000
- ---------------------------------------------------------------------------------------
VRD Series 1985 E RB
2.35%, 12/01/15(c)(f) A-1+ VMIG-1 28,635 28,635,000
=======================================================================================
44,085,000
=======================================================================================
NEVADA-0.48%
ABN AMRO Munitops Ctfs. Trust (County of
Washoe); Refunding VRD Limited Tax Series
2001-24 Single Asset Trust Ctfs. (Acquired
06/21/01; Cost $5,500,000)
2.33%, 07/01/09(c)(d)(e) -- VMIG-1 5,500 5,500,000
- ---------------------------------------------------------------------------------------
Carson (City of) (Tahoe Hospital Project);
Hospital VRD Series 2003 B RB (LOC- U.S.
Bank N.A.)
2.30%, 09/01/33(b)(c) A-1+ -- 10,500 10,500,000
=======================================================================================
16,000,000
=======================================================================================
</Table>
F-13
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
NEW HAMPSHIRE-0.69%
Morgan Stanley & Co. Inc. Trust Floater Ctfs.
(New Hampshire Higher Education & Health
Facilities Authority); Refunding VRD Series
2003-772 RB (Acquired 01/22/03; Cost
$5,475,000)
2.34%, 01/01/17(c)(d)(e) A-1 -- $ 5,475 $ 5,475,000
- ---------------------------------------------------------------------------------------
Morgan Stanley & Co. Inc. Trust Floater Ctfs.
(New Hampshire Higher Educational & Health
Facilities Authority); Refunding VRD Series
2003-866 RB (Acquired 10/23/03; Cost
$7,485,000)
2.34%, 08/15/21(c)(d)(e) A-1 -- 7,485 7,485,000
- ---------------------------------------------------------------------------------------
New Hampshire (State of) Higher Educational &
Health Facilities Authority (VHA-New
England Inc.); VRD Series 1985 G RB
2.30%, 12/01/25(c)(f) A-1+ -- 10,000 10,000,000
=======================================================================================
22,960,000
=======================================================================================
NEW JERSEY-0.13%
Salem (County of) Improvement Authority
(Friends Home at Woodstown Inc.); VRD
Series 2004 RB (LOC-Bank of America, N.A.)
2.30%, 04/01/34(b)(c) -- VMIG-1 4,440 4,440,000
=======================================================================================
NEW YORK-0.53%
ABN AMRO Munitops Ctfs. Trust (Triborough
Bridge & Tunnel Authority); Non-AMT VRD
Series 2002-31 Ctfs. (Acquired 03/24/04;
Cost $16,000,000)
2.30%, 11/15/10(c)(d)(e) -- VMIG-1 16,000 16,000,000
- ---------------------------------------------------------------------------------------
New York (State of) Dormitory Authority
(Rochester Institute of Technology); Series
1997 RB
6.00%, 08/15/05(f) AAA Aaa 1,815 1,841,296
=======================================================================================
17,841,296
=======================================================================================
NORTH CAROLINA-1.05%
North Carolina (State of) Capital Facilities
Finance Agency (Barton College);
Educational Facilities VRD Series 2004 RB
(LOC- Branch Banking & Trust Co.)
2.27%, 07/01/19(b)(c) -- VMIG-1 5,750 5,750,000
- ---------------------------------------------------------------------------------------
North Carolina (State of) Capital Facilities
Finance Agency (Elon College); VRD Series
2001 A RB (LOC-Bank of America, N.A.)
2.30%, 01/01/14(b)(c)(j) -- -- 8,115 8,115,000
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
<Caption>
NORTH CAROLINA-(CONTINUED)
North Carolina (State of) Capital Facilities
Finance Agency (Goodwill Community
Foundation Project); VRD Series 2002 RB
(LOC-Bank of America, N.A.)
2.30%, 04/01/22(b)(c)(j) -- -- $ 2,070 $ 2,070,000
- ---------------------------------------------------------------------------------------
North Carolina (State of) Capital Facilities
Finance Agency (Goodwill Industries of
Central North Carolina Inc.); VRD Series
2004 RB (LOC-Bank of America, N.A.)
2.30%, 12/01/24(b)(c)(j) -- -- 4,915 4,915,000
- ---------------------------------------------------------------------------------------
North Carolina (State of) Capital Facilities
Finance Agency (Thompson Children's Home);
Educational Facilities VRD Series 2000 RB
(LOC-Bank of America, N.A.)
2.30%, 12/01/20(b)(c)(j) -- -- 3,150 3,150,000
- ---------------------------------------------------------------------------------------
North Carolina (State of) Capital Facilities
Finance Agency (Wolfpack Club Project); VRD
Series 2002 RB (LOC-Bank of America, N.A.)
2.30%, 04/01/12(b)(c)(j) -- -- 6,800 6,800,000
- ---------------------------------------------------------------------------------------
North Carolina (State of) Medical Care
Commission; Refunding First Mortgage Health
Care Facilities VRD Series 2004 C RB (LOC-
SunTrust Bank)
2.27%, 11/01/27(b)(c) -- VMIG-1 3,500 3,500,000
- ---------------------------------------------------------------------------------------
University of North Carolina; VRD Series 2001
B RB
2.30%, 12/01/25(c) A-1+ VMIG-1 1,000 1,000,000
=======================================================================================
35,300,000
=======================================================================================
OHIO-3.66%
Akron, Bath & Copley (Townships of) Joint
Township Hospital District (Summa Health
Systems); VRD Series 2004 B RB (LOC-
JPMorgan Chase Bank)
2.29%, 11/01/34(b)(c) -- VMIG-1 5,000 5,000,000
- ---------------------------------------------------------------------------------------
Butler (County of) Health Care Facilities
(Lifesphere Project); Refunding &
Improvement VRD Series 2002 RB (LOC- U.S.
Bank N.A.)
2.30%, 05/01/27(b)(c) A-1+ -- 8,500 8,500,000
- ---------------------------------------------------------------------------------------
Cambridge (City of) Hospital Facilities
(Regional Medical Center Project);
Refunding & Improvement VRD Series 2001 RB
(LOC-National City Bank)
2.31%, 12/01/21(b)(c) -- VMIG-1 10,790 10,790,000
- ---------------------------------------------------------------------------------------
</Table>
F-14
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
OHIO-(CONTINUED)
Centerville (City of) (Bethany Lutheran
Village Project); Health Care VRD Series
1994 RB (LOC- National City Bank)
2.31%, 11/01/13(b)(c) -- VMIG-1 $ 2,905 $ 2,905,000
- ---------------------------------------------------------------------------------------
Cleveland Heights (City of); Limited Tax
Series 2004 BAN GO
2.00%, 08/18/05(p) -- -- 3,234 3,238,840
- ---------------------------------------------------------------------------------------
Cuyahoga (County of) Health Care Facilities
(Judson Retirement Community); Refunding
VRD Series 2000 RB (LOC-National City Bank)
2.31%, 11/15/19(b)(c) A-1 -- 700 700,000
- ---------------------------------------------------------------------------------------
Franklin (County of) Health Care Facilities
(First Community Village); Refunding &
Improvement VRD Series 2005 RB
(LOC-Sovereign Bank, KBC Bank N.V.)
2.33%, 03/01/36(b)(c) A-1+ -- 5,000 5,000,000
- ---------------------------------------------------------------------------------------
Lake (County of); Limited Tax Series 2004 BAN
GO
2.00%, 04/14/05(p) -- -- 5,250 5,251,154
- ---------------------------------------------------------------------------------------
Lorain (County of) (EMH Regional Medical
Center Project); Hospital Facilities VRD
Series 2001 RB (LOC-National City Bank)
2.34%, 05/01/26(b)(c)(p) -- -- 14,950 14,950,000
- ---------------------------------------------------------------------------------------
Mahoning (County of) Hospital Facilities
(Forum Health Obligation Group) VRD Series
1997 B RB
2.28%, 12/01/28(c)(f) A-1+ VMIG-1 19,100 19,100,000
- ---------------------------------------------------------------------------------------
VRD Series 2002 B RB (LOC- Fifth Third
Bank)
2.31%, 12/01/27(b)(c) -- VMIG-1 6,800 6,800,000
- ---------------------------------------------------------------------------------------
Marion (County of) (Pooled Lease Program);
Hospital Improvement VRD Series 1990 RB
(LOC- JPMorgan Chase Bank)
2.31%, 08/01/20(b)(c) A-1+ -- 1,325 1,325,000
- ---------------------------------------------------------------------------------------
Middleburg Heights (City of) (Southwest
General Health); Hospital Improvement
Series 1997 RB (LOC-Fifth Third Bank)
2.31%, 08/15/22(b)(c) A-1+ -- 5,405 5,405,000
- ---------------------------------------------------------------------------------------
Montgomery (County of) (St. Vincent DePaul
Society); Limited Obligation VRD Series
1996 RB (LOC-National City Bank)
2.31%, 12/01/10(b)(c) A-1 -- 1,735 1,735,000
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
<Caption>
OHIO-(CONTINUED)
Portage (County of) (Robinson Memorial
Hospital); Hospital VRD Series 2002 RB
(LOC-JPMorgan Chase Bank)
2.31%, 05/01/17(b)(c) -- VMIG-1 $ 6,255 $ 6,255,000
- ---------------------------------------------------------------------------------------
Reynoldsburg (City of) School District
(School Facilities Construction); Unlimited
Tax Series 2004 A BAN GO
2.75%, 06/24/05 -- MIG-1 5,900 5,910,765
- ---------------------------------------------------------------------------------------
Unlimited Tax Series 2005 BAN GO
3.00%, 06/24/05 -- MIG1 3,150 3,157,955
- ---------------------------------------------------------------------------------------
Solon (City of); Series 2004 BAN
2.75%, 12/01/05(p) -- -- 3,000 3,013,738
- ---------------------------------------------------------------------------------------
Toledo-Lucas (County of) Port Authority
(Franciscan Communities St. Mary of the
Woods Inc.); VRD Series 2004 C RB
(LOC-Sovereign Bank, Bank of Nova Scotia)
2.28%, 05/15/38(b)(c) A-1+ -- 10,700 10,700,000
- ---------------------------------------------------------------------------------------
Upper Arlington (City of); Street Improvement
Limited Tax Series 2005 BAN GO
3.00%, 01/10/06 -- MIG-1 1,802 1,813,655
- ---------------------------------------------------------------------------------------
Youngstown (City of) School District
(Classroom Facilities & School
Improvement); Unlimited Tax Series 2005 GO
3.00%, 12/01/05(f) AAA Aaa 1,000 1,005,299
=======================================================================================
122,556,406
=======================================================================================
OKLAHOMA-1.01%
Oklahoma (County of) Finance Authority
(Oxford Oaks Apartments Projects);
Refunding Multi-Family Housing VRD Series
2000 RB (CEP-Federal National Mortgage
Association)
2.30%, 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.)
2.38%, 06/01/11(b)(c) A-1+ -- 3,785 3,785,000
- ---------------------------------------------------------------------------------------
Tulsa (County of) Industrial Authority;
Capital Improvements Series 2003 B RB
4.00%, 05/15/05 AA- -- 2,500 2,507,347
=======================================================================================
33,987,347
=======================================================================================
</Table>
F-15
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
OREGON-0.75%
JPMorgan PUTTERs (City of Portland); Sewer
System VRD Series 2004 614 RB (Acquired
12/02/04; Cost $1,600,000)
2.32%, 10/01/12(c)(d)(e) -- VMIG-1 $ 1,600 $ 1,600,000
- ---------------------------------------------------------------------------------------
Oregon (State of) Health, Housing,
Educational & Cultural Facilities Authority
(Quatama Crossing LLC Housing Project); VRD
Series 1998 RB (LOC-U.S. Bank N.A.)
2.35%, 01/01/31(b)(c) -- Aa2 7,320 7,320,000
- ---------------------------------------------------------------------------------------
Oregon (State of) Housing & Community
Services Department Mortgage; Single Family
Mortgage Program Series 2004 O RN
2.00%, 06/01/05 -- MIG-1 2,300 2,300,000
- ---------------------------------------------------------------------------------------
Series 2004 O-2 RN
2.10%, 09/01/05 -- MIG-1 3,000 3,000,000
- ---------------------------------------------------------------------------------------
Oregon (State of); Series 2004 A TAN
3.00%, 06/30/05 SP-1+ MIG-1 6,500 6,519,573
- ---------------------------------------------------------------------------------------
Portland (City of) Housing Authority
(Riverwood Project); Refunding Multi-Family
Series 1995 RB
6.00%, 01/01/06(g)(i) AAA NRR 1,170 1,202,371
- ---------------------------------------------------------------------------------------
Portland (City of); Unlimited Tax Series 1995
B GO
5.75%, 06/01/05(g)(i) NRR Aaa 2,000 2,012,136
- ---------------------------------------------------------------------------------------
Salem (City of) Water & Sewer; Refunding
Series 2004 RB
3.00%, 05/01/05(f) AAA Aaa 1,175 1,176,383
=======================================================================================
25,130,463
=======================================================================================
PENNSYLVANIA-3.07%
ABN AMRO Munitops Ctfs. Trust (City of
Reading School District); Non-AMT VRD
Series 2003-20 Ctfs. (Acquired 03/02/05;
Cost $4,225,000)
2.32%, 07/15/11(c)(d)(e)(j) -- -- 4,225 4,225,000
- ---------------------------------------------------------------------------------------
ABN AMRO Munitops Ctfs. Trust (State of
Pennsylvania Public School Building
Authority); Non-AMT VRD Series 2001-30
Ctfs. (Acquired 10/31/02; Cost $5,000,000)
2.32%, 09/01/09(c)(d)(e) -- VMIG-1 5,000 5,000,000
- ---------------------------------------------------------------------------------------
Series 2003-24 Ctfs. (Acquired 03/08/04;
Cost $7,000,000)
2.32%, 06/01/11(c)(d)(e) -- VMIG-1 7,000 7,000,000
- ---------------------------------------------------------------------------------------
Allegheny (County of) Industrial Development
Authority (Carnegie Museums of Pittsburgh);
VRD Series 2002 IDR (LOC-Royal Bank of
Scotland)
2.40%, 08/01/32(b)(c) -- VMIG-1 2,000 2,000,000
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
<Caption>
PENNSYLVANIA-(CONTINUED)
Berks (County of) Industrial Development
Authority (Lutheran Services); Health Care
VRD Series 1998 A IDR
2.29%, 01/01/28(c)(f) -- VMIG-1 $ 9,995 $ 9,995,000
- ---------------------------------------------------------------------------------------
Chartiers Valley (Community of) Industrial &
Commercial Development Authority (Asbury
Villas Project); VRD Series 2000 B IDR
(LOC-ABN AMRO Bank N.V.)
2.31%, 12/01/30(b)(c) A-1 -- 3,000 3,000,000
- ---------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (Delaware Valley
Regional); VRD Series 2001-3801 COP
(Acquired 06/04/01; Cost $8,900,000)
2.31%, 08/01/28(c)(d)(e) A-1+ -- 8,900 8,900,000
- ---------------------------------------------------------------------------------------
Franklin (County of) Industrial Development
Authority (Chambersburg Hospital
Obligation); Health Care VRD Series 2000
IDR
2.38%, 12/01/24(c)(f) A-1 -- 3,385 3,385,000
- ---------------------------------------------------------------------------------------
Geisinger (City of) Authority (Geisinger
Health System); VRD Series 2002 RB
2.30%, 11/15/32(k) A-1+ VMIG-1 12,200 12,200,000
- ---------------------------------------------------------------------------------------
Lehigh (County of) Industrial Development
Authority (Allegheny Electric Coop. Inc.);
Refunding VRD Series 1984 PCR (LOC-
Rabobank Nederland)
2.05%, 06/01/14(b)(m) A-1+ -- 1,030 1,030,000
- ---------------------------------------------------------------------------------------
VRD Series 1984 PCR (LOC- Rabobank
Nederland)
2.05%, 10/01/14(b)(m) A-1+ -- 7,180 7,180,000
- ---------------------------------------------------------------------------------------
Montgomery (County of) Higher Education &
Health Authority (Holy Redeemer Health
System); Health Care Series 1997 A RB
5.50%, 10/01/05(f) AAA Aaa 2,240 2,276,734
- ---------------------------------------------------------------------------------------
Pennsylvania (State of) Higher Educational
Facilities Authority (Washington &
Jefferson Development); VRD Series 2005 A
RB (LOC-Sovereign Bank, Uncredito Italiano
S.p.A.)
2.25%, 11/01/36(b)(c) -- VMIG-1 3,000 3,000,000
- ---------------------------------------------------------------------------------------
Philadelphia (City of) Hospitals & Higher
Education of Facilities Authority
(Children's Hospital of Philadelphia
Project); Hospital VRD Series 2002 A RB
2.28%, 07/01/22(k) A-1+ VMIG-1 8,400 8,400,000
- ---------------------------------------------------------------------------------------
</Table>
F-16
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
PENNSYLVANIA-(CONTINUED)
Sayre (City of) Health Care Facilities
Authority (VHR of Pennsylvania Capital
Financing Project); VRD Series 1985 K RB
2.30%, 12/01/20(c)(f) A-1+ Aaa $19,800 $ 19,800,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (City of Scranton & County
of Lackawanna Health & Welfare Authority);
VRD Series 2002 A-18 RB (Acquired 03/22/02;
Cost $5,120,000)
2.35%, 03/01/15(c)(d)(e) -- VMIG-1 5,120 5,120,000
=======================================================================================
102,511,734
=======================================================================================
SOUTH CAROLINA-1.91%
Cherokee (County of) (Newark Electronics
Division); Industrial VRD Series 1985 RB
(LOC-ABN AMRO Bank N.V.)
2.30%, 12/01/15(b)(c) A-1 -- 6,500 6,500,000
- ---------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (State of South
Carolina Public Service Authority); VRD
Series 2000-4001 A COP (Acquired 09/08/00;
Cost $10,100,000)
2.32%, 01/01/22(c)(d)(e) A-1+ -- 10,100 10,100,000
- ---------------------------------------------------------------------------------------
Horry (County of) School District; Unlimited
Tax Series 2004 GO BAN
3.50%, 09/01/05 SP-1 MIG-1 10,000 10,070,209
- ---------------------------------------------------------------------------------------
Morgan Stanley & Co. Inc. Trust Floater Ctfs.
(State of South Carolina Transportation
Infrastructure Bank); Floating Rate Trust
Ctfs. VRD Series 2002-728 RB (Acquired
11/13/02; Cost $7,185,000)
2.32%, 10/01/22(c)(d)(e) -- VMIG-1 7,185 7,185,000
- ---------------------------------------------------------------------------------------
South Carolina (State of) Educational
Facilities Authority for Non-Profit
Institutions (Morris College Project); VRD
Series 1997 RB (LOC-Bank of America, N.A.)
(Acquired 07/30/02; Cost $2,100,000)
2.35%, 07/01/17(b)(c)(e) A-1+ -- 2,100 2,100,000
- ---------------------------------------------------------------------------------------
South Carolina (State of) Educational
Facilities Authority for Non-Profit
Institutions (The Allen University
Project); VRD Series 1998 RB (LOC-Bank of
America, N.A.) (Acquired 03/27/01; Cost
$2,525,000)
2.35%, 09/01/18(b)(c)(e) A-1+ -- 2,525 2,525,000
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
<Caption>
- ---------------------------------------------------------------------------------------
SOUTH CAROLINA-(CONTINUED)
South Carolina (State of) Jobs-Economic
Development Authority (Carolina Children's
Home Project); VRD Series 2003 RB
(LOC-Branch Banking & Trust Co.)
2.27%, 03/01/23(b)(c) -- VMIG-1 $ 3,365 $ 3,365,000
- ---------------------------------------------------------------------------------------
South Carolina (State of) Jobs-Economic
Development Authority (Carolina Piedmont
Foundation Project); VRD Series 2002 RB
(LOC-Bank of America, N.A.)
2.35%, 09/01/32(b)(c) -- -- 4,000 4,000,000
- ---------------------------------------------------------------------------------------
South Carolina (State of) Jobs-Economic
Development Authority (Catholic Diocese of
South Carolina Project); VRD Series 1998 RB
(LOC-Bank of America, N.A.) (Acquired
07/23/02; Cost $2,555,000)
2.35%, 09/01/18(b)(c)(e) A-1+ -- 2,555 2,555,000
- ---------------------------------------------------------------------------------------
South Carolina (State of) Jobs-Economic
Development Authority (Presbyterian Home of
South Carolina Project); VRD Series 2003 A
RB (LOC-Wachovia Bank, N.A.)
2.35%, 04/01/20(b)(c) A-1 -- 4,070 4,070,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (State of South Carolina
Public Service Authority); VRD Series 2000
L RB (Acquired 02/25/00; Cost $11,590,000)
2.35%, 01/01/22(c)(d)(e) -- VMIG-1 11,590 11,590,000
=======================================================================================
64,060,209
=======================================================================================
SOUTH DAKOTA-0.09%
South Dakota (State of) Health & Educational
Facilities Authority (University of Sioux
Falls); VRD Series 2001 RB (LOC-Wells Fargo
Bank N.A.)
2.28%, 10/01/16(b)(c) A-1+ -- 3,155 3,155,000
=======================================================================================
TENNESSEE-5.14%
Clarksville (City of) Public Building
Authority (Tennessee Municipal Bond Fund);
Pooled Financing VRD Series 1999 RB
(LOC-Bank of America, N.A.) (Acquired
03/15/05; Cost $27,205,000)
2.30%, 06/01/29(b)(c)(e) -- VMIG-1 27,205 27,205,000
- ---------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Chattanooga);
VRD Series 2000-4202 A COP (Acquired
10/10/00; Cost $14,040,000)
2.32%, 10/01/27(c)(d)(e) A-1+ -- 14,040 14,040,000
- ---------------------------------------------------------------------------------------
</Table>
F-17
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
TENNESSEE-(CONTINUED)
Jackson (City of) Energy Authority; Electric
Systems VRD Series 2003 B RB
2.30%, 11/01/26(c)(f) -- VMIG-1 $12,200 $ 12,200,000
- ---------------------------------------------------------------------------------------
Jackson (City of) Health & Educational
Facilities Board (Trinity Christian
Academy); Educational Facilities VRD Series
2002 RB (LOC-AmSouth Bank)
2.40%, 03/01/22(b)(c) -- VMIG-1 5,295 5,295,000
- ---------------------------------------------------------------------------------------
Knox (County of) Health Educational & Housing
Facility Board (Volunteer Student Housing
LLC Project); Student Housing VRD Series
2002 RB (LOC- Wachovia Bank, N.A.)
2.29%, 09/01/34(b)(c) -- VMIG-1 26,625 26,625,000
- ---------------------------------------------------------------------------------------
Morgan Stanley & Co. Inc. Trust Floater Ctfs.
(City of Nashville & County of Davidson);
Unlimited Tax Series 2003-871 GO (Acquired
11/17/03; Cost $4,995,000)
2.32%, 10/15/10(c)(d)(e) -- VMIG-1 4,995 4,995,000
- ---------------------------------------------------------------------------------------
Nashville (City of) & Davidson (County of)
Metropolitan Government Health &
Educational Facilities Board (Adventist
Health System); VRD Series 1997 A RB
(LOC-SunTrust Bank)
2.28%, 11/15/27(b)(c) A-1+ VMIG-1 2,325 2,325,000
- ---------------------------------------------------------------------------------------
Nashville (City of) & Davidson (County of)
Metropolitan Government Health &
Educational Facilities Board (Ensworth
School Project); VRD Series 2002 RB
(LOC-SunTrust Bank)
2.29%, 12/01/27(b)(c) -- VMIG-1 7,675 7,675,000
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
<Caption>
- ---------------------------------------------------------------------------------------
TENNESSEE-(CONTINUED)
Sevier (County of) Public Building Authority
(Local Government Public Improvement); VRD
Series 1995 A RB
2.31%, 06/01/15(c)(f) -- VMIG-1 $ 5,230 $ 5,230,000
- ---------------------------------------------------------------------------------------
VRD Series 1995 B-2 RB
2.31%, 06/01/06(c)(f) -- VMIG-1 1,200 1,200,000
- ---------------------------------------------------------------------------------------
VRD Series 1997 I A-1 RB
2.31%, 06/01/22(c)(f) -- VMIG-1 5,900 5,900,000
- ---------------------------------------------------------------------------------------
VRD Series 1997 II E-1 RB
2.31%, 06/01/21(c)(f) -- VMIG-1 2,100 2,100,000
- ---------------------------------------------------------------------------------------
VRD Series 1997 II E-3 RB
2.31%, 06/01/10(c)(f) -- VMIG-1 1,485 1,485,000
- ---------------------------------------------------------------------------------------
VRD Series 1997 II E-5 RB
2.31%, 06/01/17(c)(f) -- VMIG-1 1,320 1,320,000
- ---------------------------------------------------------------------------------------
VRD Series 1997 II F-1 RB
2.31%, 06/01/17(c)(f) -- VMIG-1 1,190 1,190,000
- ---------------------------------------------------------------------------------------
VRD Series 1997 II F-5 RB
2.31%, 06/01/27(c)(f) -- VMIG-1 2,265 2,265,000
- ---------------------------------------------------------------------------------------
VRD Series 1998 III A-1 RB
2.31%, 06/01/07(c)(f) -- VMIG-1 14,950 14,950,000
- ---------------------------------------------------------------------------------------
VRD Series 1998 III A-3 RB
2.31%, 06/01/19(c)(f) -- VMIG-1 1,425 1,425,000
- ---------------------------------------------------------------------------------------
VRD Series 1998 III A-4 RB
2.31%, 06/01/17(c)(f) -- VMIG-1 300 300,000
- ---------------------------------------------------------------------------------------
VRD Series 1998 III B-2 RB
2.31%, 06/01/19(c)(f) -- VMIG-1 5,650 5,650,000
- ---------------------------------------------------------------------------------------
VRD Series 1998 III C-3 RB
2.31%, 06/01/18(c)(f) -- VMIG-1 3,475 3,475,000
- ---------------------------------------------------------------------------------------
VRD Series 1998 III C-4 RB
2.31%, 06/01/20(c)(f) -- VMIG-1 10,000 10,000,000
- ---------------------------------------------------------------------------------------
VRD Series 1999 II A-1 RB
2.31%, 06/01/24(c)(f) -- VMIG-1 6,300 6,300,000
- ---------------------------------------------------------------------------------------
VRD Series 1999 II B-1 RB
2.31%, 06/01/25(c)(f) -- VMIG-1 1,700 1,700,000
- ---------------------------------------------------------------------------------------
Shelby (County of) Health, Educational &
Housing Facilities Board (St. Benedict
Auburndale School); VRD Series 2003 RB
(LOC-AmSouth Bank)
2.32%, 05/01/33(b)(c) -- VMIG-1 5,000 5,000,000
- ---------------------------------------------------------------------------------------
Williamson (County of) Industrial Development
Board (Currey Ingram Academy); Educational
Facilities VRD Series 2003 RB (LOC-SunTrust
Bank)
2.35%, 04/01/23(b)(c) -- VMIG-1 2,400 2,400,000
=======================================================================================
172,250,000
=======================================================================================
</Table>
F-18
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
TEXAS-12.01%
ABN AMRO Munitops Ctfs. Trust (City of
Leander Independent School District);
Unlimited Multi-State Non-AMT VRD Series
2002-16 Ctfs. (Acquired 08/20/03; Cost
$5,395,000)
2.33%, 08/15/10(c)(d)(e) -- VMIG-1 $ 5,395 $ 5,395,000
- ---------------------------------------------------------------------------------------
Amarillo (City of) Health Facilities Corp.
(Panhandle Pooled Health Care); VRD Series
1985 RB (LOC-BNP Paribas)
2.42%, 05/31/25(b)(c) -- VMIG-1 655 655,000
- ---------------------------------------------------------------------------------------
Austin (City of); Refunding Utility System
Series 1995 RB
5.60%, 05/15/05(g)(i) AAA Aaa 5,000 5,025,074
- ---------------------------------------------------------------------------------------
Bell (County of) Health Facilities
Development Corp. (Scott & White Memorial
Hospital); VRD Series 2000 B-1 RB
2.30%, 08/15/29(f)(k) A-1+ VMIG-1 32,300 32,300,000
- ---------------------------------------------------------------------------------------
Bexar (County of) Health Facilities
Development Corp. (Air Force Village); VRD
Series 2000 RB (LOC-Bank of America, N.A.)
2.28%, 04/11/05(b)(c) A-1+ -- 9,500 9,500,000
- ---------------------------------------------------------------------------------------
Bexar (County of) Health Facilities
Development Corp. (Warm Springs
Rehabilitation Foundation); Health Care
System VRD Series 1997 RB (LOC-JPMorgan
Chase Bank)
2.35%, 09/01/27(b)(c) -- VMIG-1 3,435 3,435,000
- ---------------------------------------------------------------------------------------
Brownsville (City of) Utility Systems;
Refunding VRD Sub Lien Series 2001 A RB
2.05%, 06/21/05(f)(h)(l) A-1+ VMIG-1 3,000 3,000,000
- ---------------------------------------------------------------------------------------
Crawford (City of) Education Facilities Corp.
Package (University Parking System
Project); Refunding VRD Series 2004 A RB
(LOC-BNP Paribas)
2.38%, 05/01/35(b)(c) -- VMIG-1 5,000 5,000,000
- ---------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Houston
Airport); VRD Series 2000-4307 COP
(Acquired 11/15/00; Cost $15,750,000)
2.32%, 07/01/28(c)(d)(e) A-1+ -- 15,750 15,750,000
- ---------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (City of Houston Water
& Sewer); VRD Series 1997-4305 A COP
(Acquired 04/27/99; Cost $14,005,000)
2.32%, 12/01/27(c)(d)(e) A-1+ -- 14,005 14,005,000
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
<Caption>
TEXAS-(CONTINUED)
Eagle Tax Exempt Trust (City of Houston Water
& Sewer); VRD Series 2002-6019 A COP
(Acquired 11/13/02; Cost $8,910,000)
2.32%, 12/01/30(c)(d)(e) A-1+ -- $ 8,910 $ 8,910,000
- ---------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (Harris County Toll
Road); VRD Series 2001-4305 COP (Acquired
05/08/01; Cost $7,390,000)
2.32%, 08/01/14(c)(d)(e) A-1+ -- 7,390 7,390,000
- ---------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (Harris County Toll
Road); VRD Series 2002-6012 A COP (Acquired
11/20/02; Cost $1,580,000)
2.32%, 08/15/30(c)(d)(e) A-1+ -- 1,580 1,580,000
- ---------------------------------------------------------------------------------------
Garland (City of) Industrial Development
Authority Inc. (Carroll Co. Project); VRD
Series 1984 IDR (LOC-Wells Fargo Bank N.A.)
(Acquired 09/03/03; Cost $2,300,000)
2.35%, 12/01/14(b)(c)(e) -- Aaa 2,300 2,300,000
- ---------------------------------------------------------------------------------------
Grand Prairie (City of) Housing Finance Corp.
(Lincoln Property Co.); Refunding
Multi-Family Housing VRD Series 1993 RB
(CEP-General Electric Corp.)
2.30%, 06/01/10(c) A-1+ -- 2,700 2,700,000
- ---------------------------------------------------------------------------------------
Grapevine (City of) Industrial Development
Corp. (Southern Air Transport); Refunding
Airport Series 1993 RB (LOC-JPMorgan Chase
Bank)
2.30%, 03/01/10(b)(c) A-1+ -- 2,300 2,300,000
- ---------------------------------------------------------------------------------------
Harris (County of) Cultural Education
Facilities Finance Corp. (Houston Music
Hall Foundation); VRD Series 1999 RB (LOC-
JPMorgan Chase Bank)
2.35%, 06/01/29(b)(c) A-1+ -- 700 700,000
- ---------------------------------------------------------------------------------------
Harris (County of) Health Facilities
Development Corp. (Texas Children's
Hospital Project); Refunding Hospital
Series 1995 RB
6.00%, 10/01/05(o) AAA Aaa 1,250 1,273,825
- ---------------------------------------------------------------------------------------
Harris (County of) Health Facilities
Development Corp. (Methodist Hospital);
Refunding VRD Series 2005 B RB
2.07%, 05/09/05(h)(l) A-1+ -- 11,800 11,800,000
- ---------------------------------------------------------------------------------------
Harris (County of) Hospital District; Sub.
Lien Commercial Paper Series A RN (LOC-Bank
of America, N.A.)
2.11%, 05/11/05(b) A-1+ -- 9,451 9,451,000
- ---------------------------------------------------------------------------------------
</Table>
F-19
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
TEXAS-(CONTINUED)
Harris (County of) Houston Texas Sports
Authority (Rodeo); Jr. Lein VRD Series 2001
C RB
2.30%, 11/15/30(c)(f) A-1+ VMIG-1 $ 6,300 $ 6,300,000
- ---------------------------------------------------------------------------------------
Hays (County of) Memorial Health Facilities
Development Corp. (Central Texas Medical
Center Project); Hospital VRD Series 1990 B
RB (LOC-SunTrust Bank)
2.30%, 11/15/14(b)(c) A-1+ -- 10,200 10,200,000
- ---------------------------------------------------------------------------------------
Hockley (County of) Industrial Development
Corp. (AMOCO Project); VRD Series 1985 PCR
1.80%, 05/01/05(g)(h) A-1+ P-1 10,000 10,000,000
- ---------------------------------------------------------------------------------------
Hockley (County of) Industrial Development
Corp. (AMOCO Project-Standard Oil Co.); VRD
Series 1983 PCR
2.10%, 09/01/05(g)(h) A-1+ Aa1 12,775 12,775,000
- ---------------------------------------------------------------------------------------
Houston (City of) Higher Education Finance
Corp. (Houston Baptist University); Higher
Education Refunding VRD Series 2000 RB
(LOC-JPMorgan Chase Bank)
2.35%, 07/01/20(b)(c)(j) -- -- 3,665 3,665,000
- ---------------------------------------------------------------------------------------
Houston (City of) Independent School District
(Schoolhouse); Limited Tax Series 2004 GO
(CEP-Texas Permanent School Fund)
1.62%, 06/09/05(g)(l) A-1+ VMIG-1 15,000 15,000,000
- ---------------------------------------------------------------------------------------
Houston (City of); Commercial Paper Notes
Series 2003 A GO
1.95%, 04/07/05 A-1+ P-1 26,900 26,900,000
- ---------------------------------------------------------------------------------------
Series 2003 A GO
1.95%, 04/12/05 A-1+ P-1 24,000 24,000,000
- ---------------------------------------------------------------------------------------
Humble (City of) Independent School District;
School Building VRD Limited Tax Series 2003
GO (CEP-Texas Permanent School Fund)
2.28%, 06/15/23(c) A-1+ VMIG-1 13,000 13,000,000
- ---------------------------------------------------------------------------------------
JPMorgan PUTTERs (City of Boerne Independent
School District); VRD Series 2005 752 GO
(Acquired 03/09/05; Cost $2,640,000)
2.32%, 02/01/11(c)(d)(e) A-1+ -- 2,640 2,640,000
- ---------------------------------------------------------------------------------------
JPMorgan PUTTERs (County of Bexar); Limited
Tax VRD Series 2004 530 GO (Acquired
10/28/04; Cost $4,645,000)
2.32%, 06/15/12(c)(d)(e) -- VMIG-1 4,645 4,645,000
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
<Caption>
- ---------------------------------------------------------------------------------------
TEXAS-(CONTINUED)
Merrill Lynch P-Floats (City of Brazosport
Independent School District); Refunding
Unlimited Tax VRD Series 2003 PT-1690 GO
(Acquired 02/20/03; Cost $4,898,000)
2.32%, 08/15/10(c)(d)(e) -- VMIG-1 $ 4,898 $ 4,898,000
- ---------------------------------------------------------------------------------------
Merrill Lynch P-Floats (Harris County
Hospital District); VRD Series 2002 PT-665
RB (Acquired 10/02/02; Cost $5,935,000)
2.32%, 08/15/08(c)(d)(e) A-1+ -- 5,935 5,935,000
- ---------------------------------------------------------------------------------------
Northside Independent School District;
Refunding Unlimited Tax VRD Series 2003 B
GO (CEP- Texas Permanent School Fund)
1.75%, 08/01/05(g)(l) A-1+ VMIG-1 1,870 1,870,000
- ---------------------------------------------------------------------------------------
San Antonio (City of) Water & Sewer System;
Commercial Paper Notes Series 2001 A GO
(Acquired 01/26/05; Cost $29,900,000)
2.00%, 05/17/05(e) A-1+ P-1 29,900 29,900,000
- ---------------------------------------------------------------------------------------
Sherman (City of) Higher Education Finance
Corp. (Austin College Project); Higher
Education VRD Series 1997 RB (LOC-Bank of
America, N.A.)
2.35%, 01/01/18(b)(c) A-1+ -- 12,800 12,800,000
- ---------------------------------------------------------------------------------------
Texas (State of); Series 2004 TRAN
3.00%, 08/31/05 SP-1+ MIG-1 40,000 40,225,139
- ---------------------------------------------------------------------------------------
University of Texas Board of Regents (Revenue
Financing System); Commercial Paper Notes
Series A
2.05%, 05/17/05 A-1+ P-1 7,650 7,650,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (City of Austin); VRD Series
2000 A26 RB (Acquired 11/09/04; Cost
$9,230,000)
2.11%, 11/10/05(d)(e)(g)(l)(n) -- VMIG-1 9,230 9,230,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (Harris County Toll Road);
VRD Series 2003 B16 RB (Acquired 02/19/03;
Cost $3,015,000)
2.35%, 08/15/25(c)(d)(e) -- VMIG-1 3,015 3,015,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (Jefferson County Health
Facilities Development Corp.); VRD Series
2001 A83 RB (Acquired 11/18/03; Cost
$3,565,000)
2.11%, 11/16/05(d)(e)(g)(l)(n) A-1 -- 3,565 3,565,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (Southeast Texas Housing
Finance Corp.); VRD Series 2001 A18 RB
(Acquired 11/18/03; Cost $3,430,000)
2.11%, 11/16/05(d)(e)(g)(l)(n) A-1 -- 3,430 3,430,000
- ---------------------------------------------------------------------------------------
</Table>
F-20
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
TEXAS-(CONTINUED)
Wachovia MERLOTs (University of Texas);
Refunding VRD Series 2003 B14 RB (Acquired
01/29/03; Cost $8,000,000)
2.35%, 08/15/22(c)(d)(e) -- VMIG-1 $ 8,000 $ 8,000,000
=======================================================================================
402,113,038
=======================================================================================
UTAH-2.13%
Merrill Lynch P-Floats (City of Murray
Hospital); VRD Series 2002 PA-1066 RB
(Acquired 10/02/02; Cost $5,995,000)
2.32%, 05/15/22(c)(d)(e) A-1 -- 5,995 5,995,000
- ---------------------------------------------------------------------------------------
Salt Lake (City of) (Gateway Project);
Special Assessment VRD Series 2003
(LOC-Citibank N.A.)
2.30%, 12/01/23(b)(c) A-1+ -- 7,200 7,200,000
- ---------------------------------------------------------------------------------------
Sanpete (County of) School Facilities
(Wasatch Academy); VRD Series 2003 RB (LOC-
U.S. Bank N.A.)
2.33%, 08/01/28(b)(c) A-1+ -- 900 900,000
- ---------------------------------------------------------------------------------------
St. George (City of) (OK Foundation
Projects); Sr. Housing VRD Series 2004 A RB
(CEP-Federal National Mortgage Association)
2.28%, 12/15/29(c) A-1+ -- 30,640 30,640,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (Intermountain Power
Agency); Power Supply VRD Series 2002 A59
RB (Acquired 10/23/02; Cost $6,960,000)
2.35%, 07/01/10(c)(d)(e) -- VMIG-1 6,960 6,960,000
- ---------------------------------------------------------------------------------------
Weber (County of) (IHC Health Service); VRD
Series 2000 C RB
2.30%, 02/15/35(k) A-1+ VMIG-1 10,000 10,000,000
- ---------------------------------------------------------------------------------------
West Jordan (City of) (Broadmoor Village
Apartments LLC Project); Refunding
Multi-Family Housing VRD Series 2004 RB
(CEP- Federal Home Loan Mortgage Corp.)
2.30%, 12/01/34(c) A-1+ -- 9,675 9,675,000
=======================================================================================
71,370,000
=======================================================================================
VERMONT-0.08%
Vermont (State of) Student Assistance Corp.;
Student Loan VRD Series 1985 RB (LOC-State
Street Bank & Trust Co.)
2.05%, 01/01/08(b)(m) -- VMIG-1 2,640 2,640,000
=======================================================================================
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
<Caption>
- ---------------------------------------------------------------------------------------
VIRGINIA-1.05%
Henrico (County of) Economic Development
Authority (Westminster Canterbury);
Residential Care Facilities VRD Series 2003
B RB (LOC-KBC Bank N.V.)
2.29%, 07/01/08(b)(c) -- VMIG-1 $17,100 $ 17,100,000
- ---------------------------------------------------------------------------------------
Lynchburg (City of) Industrial Development
Authority (Lynchburg College); VRD Series
2004 RB (LOC-SunTrust Bank)
2.29%, 12/01/34(b)(c) -- VMIG-1 6,275 6,275,000
- ---------------------------------------------------------------------------------------
Newport News (City of) Redevelopment &
Housing Authority (Springhouse Apartments
Project); Multi-Family Housing VRD Series
2001 RB (CEP-Federal Home Loan Mortgage
Corp.)
2.30%, 09/01/26(c) A-1+ -- 2,000 2,000,000
- ---------------------------------------------------------------------------------------
Norfolk (City of) Redevelopment & Housing
Authority (E2F Student Housing LLC
Project); VRD Series 2005 RB (LOC-Bank of
America, N.A.)
2.30%, 07/01/34(b)(c) -- VMIG-1 7,000 7,000,000
- ---------------------------------------------------------------------------------------
Rockingham (County of) Industrial Development
Authority (Sunnyside Presbyterian Home);
Residential Care Facilities VRD Series 2003
RB (LOC-Branch Banking & Trust Co.)
2.27%, 12/01/33(b)(c) A-1 -- 750 750,000
- ---------------------------------------------------------------------------------------
Suffolk (City of) Redevelopment & Housing
Authority (Oak Springs Apartments);
Multi-Family Housing VRD Series 1999 RB
(CEP-Federal Home Loan Mortgage Corp.)
2.30%, 04/11/05(c) -- VMIG-1 1,900 1,900,000
=======================================================================================
35,025,000
=======================================================================================
WASHINGTON-6.72%
ABN AMRO Munitops Ctfs. Trust (City of
Seattle Municipal Light & Power);
Multi-State Non-AMT VRD Series 2002-12
Ctfs. (Acquired 05/25/04; Cost $9,755,000)
2.33%, 03/01/09(c)(d)(e) -- VMIG-1 9,755 9,755,000
- ---------------------------------------------------------------------------------------
ABN AMRO Munitops Ctfs. Trust (City of
Seattle); Multi-State Non-AMT VRD Limited
Tax Series 2003-7 GO Ctfs. (Acquired
05/13/03; Cost $10,685,000)
2.33%, 07/01/10(c)(d)(e)(j) -- -- 10,685 10,685,000
- ---------------------------------------------------------------------------------------
</Table>
F-21
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
WASHINGTON-(CONTINUED)
ABN AMRO Munitops Ctfs. Trust (King County);
Multi-State Non-AMT VRD Limited Tax Series
2001-1 GO Ctfs. (Acquired 01/04/01; Cost
$10,000,000)
2.33%, 07/01/06(c)(d)(e) -- VMIG-1 $10,000 $ 10,000,000
- ---------------------------------------------------------------------------------------
Bremerton (City of) (Kitsap Regional
Conference Center); VRD Series 2003 RB
(LOC-Bank of America, N.A.)
2.35%, 12/01/28(b)(c)(j) -- -- 2,565 2,565,000
- ---------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (State of Washington
Public Power Supply Systems Project No. 2);
VRD Series 1996-4703 A COP (Acquired
05/02/01; Cost $5,870,000)
2.32%, 07/01/11(c)(d)(e) A-1+ -- 5,870 5,870,000
- ---------------------------------------------------------------------------------------
Eagle Tax Exempt Trust (State of Washington);
VRD Series 1998-4701 A COP (Acquired
07/20/00; Cost $14,400,000)
2.32%, 05/01/18(c)(d)(e) A-1+ -- 14,400 14,400,000
- ---------------------------------------------------------------------------------------
Everett (City of); Limited Tax VRD Series
2001 GO (LOC-Bank of America, N.A.)
2.35%, 12/01/21(b)(c)(j) -- -- 2,600 2,600,000
- ---------------------------------------------------------------------------------------
Everett (City of) Public Facilities District;
Commercial Paper Notes (LOC-Bank of
America, N.A.)
2.08%, 06/09/05(b) A-1+ -- 34,700 34,700,000
- ---------------------------------------------------------------------------------------
Everett (City of) Public Facilities District;
Commercial Paper TRAN (LOC-Bank of America,
N.A.)
2.08%, 06/09/05(b) A-1+ P-1 16,800 16,800,000
- ---------------------------------------------------------------------------------------
Issaquah (City of) Community Properties; VRD
Special Revenue Series 2001 A RB (LOC-Bank
of America, N.A.)
2.30%, 02/15/21(b)(c) -- VMIG-1 10,150 10,150,000
- ---------------------------------------------------------------------------------------
JPMorgan PUTTERs (State of Washington);
Unlimited Tax VRD Series 2004 593 GO
(Acquired 11/18/04; Cost $1,500,000)
2.32%, 07/01/12(c)(d)(e) -- VMIG-1 1,500 1,500,000
- ---------------------------------------------------------------------------------------
King (County of) Economic Enterprise Corp.
(Puget Sound Blood Center Project); VRD
Series 1998 RB (LOC-U.S. Bank N.A.)
2.35%, 04/01/23(b)(c) -- VMIG-1 3,700 3,700,000
- ---------------------------------------------------------------------------------------
King (County of) Water & Sewer; VRD Jr. Lien
Series 2001 B RB(LOC-Landesbank Hessen-
Thuringen Girozentrale)
2.27%, 01/01/32(b)(c) A-1+ VMIG-1 2,000 2,000,000
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
<Caption>
- ---------------------------------------------------------------------------------------
WASHINGTON-(CONTINUED)
Lake Tapps Parkway Properties; Special
Revenue VRD Series 1999 A RB (LOC- U.S.
Bank N.A.)
2.32%, 12/01/19(b)(c) -- VMIG-1 $11,800 $ 11,800,000
- ---------------------------------------------------------------------------------------
Lake Tapps Parkway Properties; Special
Revenue VRD Series 1999 B RB (LOC- U.S.
Bank N.A.)
2.32%, 12/01/19(b)(c) -- VMIG-1 800 800,000
- ---------------------------------------------------------------------------------------
Morgan Stanley & Co. Inc. Trust Floater Ctfs.
(Port of Seattle); VRD Series 2002-739D RB
(Acquired 07/21/04; Cost $5,000,000)
2.32%, 09/01/20(c)(d)(e) A-1 -- 5,000 5,000,000
- ---------------------------------------------------------------------------------------
Pierce (County of) Economic Development Corp.
(Weyerhaeuser Real Estate); Special Revenue
VRD Series 1997 RB (LOC-Bank of America,
N.A.)
2.35%, 01/01/27(b)(c) A-1+ VMIG-1 12,705 12,705,000
- ---------------------------------------------------------------------------------------
Seattle (City of) Housing Authority (Bayview
Manor Project); Low Income Housing
Assistance VRD Series 1994 B RB (LOC- U.S.
Bank N.A.)
2.35%, 05/01/19(b)(c) A-1+ -- 2,340 2,340,000
- ---------------------------------------------------------------------------------------
Seattle (City of) Housing Authority (Pioneer
Human Services Project); Refunding VRD
Series 1995 RB (LOC-U.S. Bank N.A.)
2.35%, 12/01/15(b)(c) A-1+ -- 2,295 2,295,000
- ---------------------------------------------------------------------------------------
Seattle (Port of) Industrial Development
Corp. (Sysco Food Services Project);
Refunding VRD Series 1994 IDR
2.32%, 11/01/25(c) A-1+ VMIG-1 6,208 6,208,000
- ---------------------------------------------------------------------------------------
Snohomish (County of) Housing Authority (Ebey
Arms Centerhouse Project); Refunding
Housing VRD Series 2003 RB (LOC-Bank of
America, N.A.)
2.35%, 12/01/34(b)(c)(j) -- -- 6,245 6,245,000
- ---------------------------------------------------------------------------------------
Vancouver (City of) Housing Authority
(Village Park Apartments Project); Housing
VRD Series 2000 RB (LOC-U.S. Bank N.A.)
2.32%, 11/02/05(b)(c) A-1+ -- 1,340 1,340,000
- ---------------------------------------------------------------------------------------
Wachovia MERLOTs (Central Puget Sound
Regional Transit Authority); Sales Tax &
Motor VRD Series 2001 A46 RB (Acquired
11/12/03; Cost $6,270,000)
2.11%, 11/10/05(d)(e)(g)(l)(n) -- VMIG-1 6,270 6,270,000
- ---------------------------------------------------------------------------------------
</Table>
F-22
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
WASHINGTON-(CONTINUED)
Washington (State of) Economic Development
Finance Authority (Seadrunar Recycling LLC
Project); Economic Development VRD Series
2000 E RB (LOC- U.S. Bank N.A.)
2.35%, 08/01/25(b)(c) A-1+ -- $ 2,735 $ 2,735,000
- ---------------------------------------------------------------------------------------
Washington (State of) Health Care Facilities
Authority (National Healthcare Research &
Education Finance Corp.); Lease VRD Series
2000 RB (LOC-BNP Paribas)
2.30%, 01/01/32(b)(c) -- VMIG-1 6,800 6,800,000
- ---------------------------------------------------------------------------------------
Washington (State of) Higher Education
Facilities Authority (Cornish College Arts
Project); VRD Series 2003 A RB (LOC- Bank
of America, N.A.)
2.35%, 12/01/33(b)(c) -- VMIG-1 5,000 5,000,000
- ---------------------------------------------------------------------------------------
Washington (State of) Housing Finance
Commission (Hearthstone Project);
Non-Profit Revenue Refunding VRD Series
2004 RB (LOC-Bank of America, N.A.)
2.30%, 12/01/29(b)(c) A-1+ -- 12,000 12,000,000
- ---------------------------------------------------------------------------------------
Washington (State of) Housing Finance
Commission (Nikkei Concerns Project);
Non-Profit Housing VRD Series 1994 RB
(LOC-U.S. Bank N.A.)
2.35%, 10/01/19(b)(c) A-1+ -- 3,605 3,605,000
- ---------------------------------------------------------------------------------------
Washington (State of) Housing Finance
Commission (The Evergreen School Project);
Non-Profit VRD Series 2002 RB (LOC-Wells
Fargo Bank N.A.)
2.28%, 07/01/28(b)(c) A-1+ -- 2,660 2,660,000
- ---------------------------------------------------------------------------------------
Washington (State of) Housing Finance
Commission (University Preparatory Academy
Project); Non-Profit VRD Series 2000 RB
(LOC-Bank of America, N.A.)
2.35%, 07/01/30(b)(c) -- VMIG-1 1,250 1,250,000
- ---------------------------------------------------------------------------------------
Washington (State of) Housing Finance
Commission (YMCA of Columbia-Willamette);
Non-Profit Revenue VRD Series 1999 RB
(LOC-Wells Fargo Bank N.A.)
2.33%, 08/01/24(b)(c) A-1+ -- 2,300 2,300,000
- ---------------------------------------------------------------------------------------
Washington (State of) Public Power Supply
System (Nuclear Project No. 3); Refunding
Series 1993 C RB
5.00%, 07/01/05(f) AAA Aaa 3,850 3,878,185
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
<Caption>
- ---------------------------------------------------------------------------------------
WASHINGTON-(CONTINUED)
Washington (State of); Unlimited Tax Series
1995C, AT-8 & R-95B GO
5.90%, 07/01/05(g)(i) NRR NRR $ 5,000 $ 5,047,805
=======================================================================================
225,003,990
=======================================================================================
WEST VIRGINIA-0.19%
Monongalia (County of) Building Community
Hospital (Monongalia General Hospital);
Refunding VRD Series 2002 A RB
(LOC-JPMorgan Chase Bank)
2.29%, 07/01/17(b)(c) A-1+ VMIG-1 645 645,000
- ---------------------------------------------------------------------------------------
West Virginia (State of) Hospital Finance
Authority (VHA Mid-Atlantic/Cap); Hospital
VRD Series 1985 F RB
2.30%, 12/01/25(c)(f) A-1+ -- 5,700 5,700,000
=======================================================================================
6,345,000
=======================================================================================
WISCONSIN-3.39%
Kimberly (City of) (Fox Cities YMCA Project);
VRD Series 2002 RB (LOC-M&I Marshall &
Ilsley Bank)
2.35%, 04/01/32(b)(c) -- VMIG-1 1,940 1,940,000
- ---------------------------------------------------------------------------------------
Menomonee Falls (City of); Refunding Sewer
System Series 2004 RB
2.00%, 05/01/05(f) -- Aaa 1,425 1,425,652
- ---------------------------------------------------------------------------------------
Waukesha (County of); Promissory Notes
Unlimited Tax Series 2004 GO
2.00%, 04/01/05 -- Aaa 1,500 1,500,000
- ---------------------------------------------------------------------------------------
West Allis (City of) (State Fair Park
Exposition Center Inc.); VRD Series 2001 RB
(LOC- U.S. Bank N.A.)
2.35%, 08/01/28(b)(c) -- VMIG-1 2,300 2,300,000
- ---------------------------------------------------------------------------------------
Wind Point (City of) (Johnson Foundation
Project); VRD Series 2000 RB (LOC-Bank of
Montreal)
2.33%, 09/01/35(b)(c) A-1+ -- 4,665 4,665,000
- ---------------------------------------------------------------------------------------
Wisconsin (State of) Health & Educational
Facilities Authority (Eastcastle Place
Inc.); VRD Series 2004 C RB (LOC-ABN AMRO
Bank N.V.)
2.30%, 12/01/34(b)(c) A-1 -- 7,000 7,000,000
- ---------------------------------------------------------------------------------------
Wisconsin (State of) Health & Educational
Facilities Authority (Mequon Jewish
Project); VRD Series 2003 RB (LOC-JPMorgan
Chase Bank)
2.32%, 07/01/28(b)(c) -- VMIG-1 2,150 2,150,000
- ---------------------------------------------------------------------------------------
</Table>
F-23
<Table>
<Caption>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
- ---------------------------------------------------------------------------------------
WISCONSIN-(CONTINUED)
Wisconsin (State of) Health & Educational
Facilities Authority (Mercy Health System);
Pooled Loan VRD Series 2003 I RB (LOC-M&I
Marshall & Ilsley Bank)
2.33%, 06/01/23(b)(c) -- VMIG-1 $ 9,570 $ 9,570,000
- ---------------------------------------------------------------------------------------
Wisconsin (State of) Health & Educational
Facilities Authority (Mercy Health System);
VRD Series 2003 C RB (LOC-M&I Marshall &
Ilsley Bank)
2.31%, 08/15/23(b)(c) -- VMIG-1 7,300 7,300,000
- ---------------------------------------------------------------------------------------
Wisconsin (State of) Health & Educational
Facilities Authority (Sinai Samaritan
Medical Center Inc.); VRD Series 1994 A RB
(LOC-M&I Marshall & Ilsley Bank)
2.31%, 09/01/19(b)(c) A-1 -- 5,649 5,649,000
- ---------------------------------------------------------------------------------------
Wisconsin (State of) Health & Educational
Facilities Authority (St. John's Home);
Pooled Loan VRD Series 2003 J RB (LOC-M&I
Marshall & Ilsley Bank)
2.33%, 07/01/23(b)(c) -- VMIG-1 4,250 4,250,000
- ---------------------------------------------------------------------------------------
Wisconsin (State of) Health & Educational
Facilities Authority (St. Luke's Medical
Center); VRD Series 1987 RB (LOC-KBC Bank
N.V.) (Acquired 06/01/04; Cost $28,600,000)
2.30%, 12/01/17(b)(c)(e) A-1 -- 28,600 28,600,000
- ---------------------------------------------------------------------------------------
</Table>
<Table>
RATINGS(a) PAR
S&P MOODY'S (000) VALUE
<Caption>
- ---------------------------------------------------------------------------------------
WISCONSIN-(CONTINUED)
Wisconsin (State of) Health & Educational
Facilities Authority (St. Mary's School);
VRD Series 2004 RB (LOC-M&I Marshall &
Ilsley Bank)
2.31%, 08/01/19(b)(c) A-1 -- $ 2,695 $ 2,695,000
- ---------------------------------------------------------------------------------------
Wisconsin (State of) Petroleum Inspection
Fee; Series 2000 A RB
5.75%, 07/01/05(g)(i) AA- Aa3 8,000 8,235,885
- ---------------------------------------------------------------------------------------
Wisconsin (State of) School Districts Cash
Flow Management Program; Series 2004 A-1
COP
3.00%, 09/20/05(p) -- -- 8,000 8,048,916
- ---------------------------------------------------------------------------------------
Wisconsin (State of) School Districts Cash
Flow Management Program; Series 2004 B-1
COP
3.50%, 11/01/05 -- MIG-1 15,000 15,116,273
- ---------------------------------------------------------------------------------------
Wisconsin (State of); Unlimited Tax Series
1995 A GO
6.10%, 05/01/05(g)(i) NRR Aaa 3,000 3,012,436
=======================================================================================
113,458,162
=======================================================================================
TOTAL INVESTMENTS-99.22% (Cost
$3,322,342,840)(q) 3,322,342,840
=======================================================================================
OTHER ASSETS LESS LIABILITIES-0.78% 26,258,985
=======================================================================================
NET ASSETS-100.00% $3,348,601,825
_______________________________________________________________________________________
=======================================================================================
</Table>
Investment Abbreviations:
<Table>
ACES - Automatically Convertible Extendable Security
AMT - Alternative Minimum Tax
BAN - Bond Anticipation Note
CEP - Credit Enhancement Provider
COP - Certificate of Participation
Ctfs. - Certificates
GO - General Obligation Bonds
IDR - Industrial Development Revenue Bonds
Jr. - Junior
LOC - Letter of Credit
MERLOT - Municipal Exempt Receipts Liquidity Optional Tender
NRR - Not Re-Rated
P-Floats - Puttable Floating Option Tax-Exempt Receipt
PCR - Pollution Control Revenue Bonds
PUTTERs - Putable Tax Exempt Receipts
RAN - Revenue Anticipation Notes
RB - Revenue Bonds
RN - Revenue Notes
Sr. - Senior
Sub. - Subordinated
TAN - Tax Anticipation Notes
TRAN - Tax and Revenue Anticipation Notes
VRD - Variable Rate Demand
Wts. - Warrants
</Table>
F-24
Notes to Schedule of Investments:
(a) Ratings assigned by Standard & Poor's Corporation ("S&P") and Moody's
Investors Service, Inc. ("Moody's"), except as indicated in note (j) and (p)
below. NRR indicates a security that is not re-rated subsequent to funding
of an escrow fund (consisting of U.S. Treasury obligations held by a bank
custodian); this funding is pursuant to an advance refunding of this
security. Ratings are not covered by the Report of Independent Registered
Public Accounting Firm.
(b) Principal and interest payments are fully enhanced by a letter of credit
from the bank listed or a predecessor bank, branch or subsidiary.
(c) Demand security; payable upon demand by the Fund at specified time intervals
no greater than thirteen months. Interest rate is redetermined weekly. Rate
shown is the rate in effect on March 31, 2005.
(d) Synthetic municipal instruments; 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.
(e) 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 March 31, 2005 was
$768,868,000, which represented 22.96% of the Fund's Net Assets. Unless
otherwise indicated, these securities are not considered to be illiquid.
(f) Principal and/or 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.
(g) Security has an irrevocable call or mandatory put by the issuer. Maturity
date reflects such call or put.
(h) Demand security; payable upon demand by the Fund at specified time intervals
no greater than thirteen months. Interest rate is redetermined
semi-annually. Rate shown is the rate in effect on March 31, 2005.
(i) Advance refunded; secured by an escrow fund of U.S. Treasury obligations.
(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 rate is redetermined daily. Rate
shown is the rate in effect on March 31, 2005.
(l) Demand security; payable upon demand by the Fund at specified time intervals
no greater than thirteen months. Interest rate is redetermined at
intermittent intervals. Rate shown is the rate in effect on March 31, 2005.
(m) Demand security; payable upon demand by the Fund at specified time intervals
no greater than thirteen months. Interest rate is redetermined monthly. Rate
shown is the rate in effect on March 31, 2005.
(n) Security considered to be illiquid; the portfolio is limited to investing
10% of Net Assets in illiquid securities. The aggregate market value of
these securities considered illiquid at March 31, 2005 was $58,515,000,
which represented 1.75% of the Fund's Net Assets.
(o) Secured by an escrow fund of U.S. Treasury obligations.
(p) Determined by the investment advisor to be of comparable quality to the
rated securities in which the Fund may invest, pursuant to guidelines of
quality adopted by the Board of Trustees and followed by the investment
advisor.
(q) Also represents cost for federal income tax purposes.
See accompanying notes which are an integral part of the financial statements.
F-25
STATEMENT OF ASSETS AND LIABILITIES
March 31, 2005
<Table>
ASSETS:
Investments, at value (cost $3,322,342,840) $3,322,342,840
- ------------------------------------------------------------
Cash 11,284,350
- ------------------------------------------------------------
Receivables for:
Investments sold 6,190,049
- ------------------------------------------------------------
Interest 13,396,750
- ------------------------------------------------------------
Amount due from advisor 94,353
- ------------------------------------------------------------
Investment for trustee deferred compensation
and retirement plans 116,507
- ------------------------------------------------------------
Other assets 148,419
============================================================
Total assets 3,353,573,268
____________________________________________________________
============================================================
LIABILITIES:
Payables for:
Dividends 4,412,045
- ------------------------------------------------------------
Trustee deferred compensation and
retirement plans 231,330
- ------------------------------------------------------------
Accrued distribution fees 132,821
- ------------------------------------------------------------
Accrued trustees' fees 9,908
- ------------------------------------------------------------
Accrued transfer agent fees 75,398
- ------------------------------------------------------------
Accrued operating expenses 109,941
============================================================
Total liabilities 4,971,443
============================================================
Net assets applicable to shares outstanding $3,348,601,825
____________________________________________________________
============================================================
NET ASSETS CONSIST OF:
Shares of beneficial interest $3,348,663,731
- ------------------------------------------------------------
Undistributed net realized gain (loss) from
investment securities (61,906)
============================================================
$3,348,601,825
____________________________________________________________
============================================================
NET ASSETS:
Institutional Class $2,117,055,426
____________________________________________________________
============================================================
Private Investment Class $ 196,616,507
____________________________________________________________
============================================================
Personal Investment Class $ 10,877,052
____________________________________________________________
============================================================
Cash Management Class $ 725,123,738
____________________________________________________________
============================================================
Reserve Class $ 9,308,226
____________________________________________________________
============================================================
Resource Class $ 289,620,876
____________________________________________________________
============================================================
SHARES OUTSTANDING, $0.001 PAR VALUE PER
SHARE, UNLIMITED NUMBER OF SHARES
AUTHORIZED:
Institutional Class 2,117,040,310
____________________________________________________________
============================================================
Private Investment Class 196,606,167
____________________________________________________________
============================================================
Personal Investment Class 10,874,255
____________________________________________________________
============================================================
Cash Management Class 725,129,583
____________________________________________________________
============================================================
Reserve Class 9,306,389
____________________________________________________________
============================================================
Resource Class 289,623,534
____________________________________________________________
============================================================
Net asset value, offering and redemption
price per share for each class $ 1.00
____________________________________________________________
============================================================
</Table>
See accompanying notes which are an integral part of the financial statements.
F-26
STATEMENT OF OPERATIONS
For the year ended March 31, 2005
<Table>
INVESTMENT INCOME:
Interest $45,234,430
=========================================================================
EXPENSES:
Advisory fees 6,427,161
- -------------------------------------------------------------------------
Administrative services fees 593,616
- -------------------------------------------------------------------------
Custodian fees 116,420
- -------------------------------------------------------------------------
Distribution fees:
Private Investment Class 896,739
- -------------------------------------------------------------------------
Personal Investment Class 78,707
- -------------------------------------------------------------------------
Cash Management Class 682,153
- -------------------------------------------------------------------------
Reserve Class 103,030
- -------------------------------------------------------------------------
Resource Class 509,985
- -------------------------------------------------------------------------
Transfer agent fees 505,749
- -------------------------------------------------------------------------
Trustees' fees and retirement benefits 94,630
- -------------------------------------------------------------------------
Other 650,568
=========================================================================
Total expenses 10,658,758
=========================================================================
Less: Fees waived and expenses reimbursed (2,284,421)
=========================================================================
Net expenses 8,374,337
=========================================================================
Net investment income 36,860,093
=========================================================================
Net realized gain (loss) from investment securities (60,974)
=========================================================================
Net increase in net assets resulting from operations $36,799,119
_________________________________________________________________________
=========================================================================
</Table>
See accompanying notes which are an integral part of the financial statements.
F-27
STATEMENT OF CHANGES IN NET ASSETS
For the years ended March 31, 2005 and 2004
<Table>
<Caption>
2005 2004
- ----------------------------------------------------------------------------------------------
OPERATIONS:
Net investment income $ 36,860,093 $ 22,690,885
- ----------------------------------------------------------------------------------------------
Net realized gain (loss) from investment securities (60,974) 40,841
==============================================================================================
Net increase in net assets resulting from operations 36,799,119 22,731,726
==============================================================================================
Distributions to shareholders from net investment income:
Institutional Class (24,315,215) (14,405,472)
- ----------------------------------------------------------------------------------------------
Private Investment Class (1,826,828) (1,230,193)
- ----------------------------------------------------------------------------------------------
Personal Investment Class (70,609) (37,490)
- ----------------------------------------------------------------------------------------------
Cash Management Class (7,900,652) (5,040,826)
- ----------------------------------------------------------------------------------------------
Reserve Class (39,173) (8,425)
- ----------------------------------------------------------------------------------------------
Resource Class (2,707,616) (1,968,479)
==============================================================================================
Decrease in net assets resulting from distributions (36,860,093) (22,690,885)
==============================================================================================
Share transactions-net:
Institutional Class 163,325,063 632,519,818
- ----------------------------------------------------------------------------------------------
Private Investment Class 46,220,760 (77,436,378)
- ----------------------------------------------------------------------------------------------
Personal Investment Class 483,638 (6,598,054)
- ----------------------------------------------------------------------------------------------
Cash Management Class (43,002,612) 150,447,508
- ----------------------------------------------------------------------------------------------
Reserve Class (4,721,188) 1,376,091
- ----------------------------------------------------------------------------------------------
Resource Class (9,579,676) 39,025,099
==============================================================================================
Net increase in net assets resulting from share
transactions 152,725,985 739,334,084
==============================================================================================
Net increase in net assets 152,665,011 739,374,925
==============================================================================================
NET ASSETS:
Beginning of year 3,195,936,814 2,456,561,889
==============================================================================================
End of year (including undistributed net investment income
of $0 and $0, respectively) $3,348,601,825 $3,195,936,814
______________________________________________________________________________________________
==============================================================================================
</Table>
See accompanying notes which are an integral part of the financial statements.
F-28
NOTES TO FINANCIAL STATEMENTS
March 31, 2005
NOTE 1--SIGNIFICANT ACCOUNTING POLICIES
Tax-Free Investments Trust (the "Trust") is registered under the Investment
Company Act of 1940, as amended (the "1940 Act"), as a diversified, open-end
management investment company. The Trust is organized as a Delaware statutory
trust consisting of one portfolio, the Tax-Free Cash Reserve Portfolio (the
"Fund"). The Fund currently offers multiple classes of shares. Matters affecting
each class are voted on exclusively by the shareholders of each class.
The Fund's investment objective is to provide as high a level of tax-exempt
income as is consistent with the preservation of capital and maintenance of
liquidity. Each company listed in the Schedule of Investments is organized in
the United States of America unless otherwise noted.
Under the Trust's organizational documents, each Trustee, officer, employee
or other agent of the Trust (including the Trust's investment manager) is
indemnified against certain liabilities that may arise out of performance of
their duties to the Fund. Additionally, in the normal course of business, the
Fund enters into contracts that contain a variety of indemnification clauses.
The Fund's maximum exposure under these arrangements is unknown as this would
involve future claims that may be made against the Fund that have not yet
occurred. However, the Fund has not had prior claims or losses pursuant to these
contracts.
The preparation of financial statements in conformity with accounting
principles generally accepted in the United States of America requires
management to make estimates and assumptions that affect the reported amounts of
assets and liabilities at the date of the financial statements and the reported
amounts of revenues and expenses during the reporting period. Actual results
could differ from those estimates. The following is a summary of the significant
accounting policies followed by the Fund in the preparation of its financial
statements.
A. SECURITY VALUATIONS -- The Fund's securities are valued on the basis of
amortized cost which approximates market value as permitted by Rule 2a-7
under 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.
Brokerage commissions and mark ups are considered transaction costs and
are recorded as an increase to the cost basis of securities purchased
and/or a reduction of proceeds on a sale of securities. Such transaction
costs are included in the determination of realized gain (loss) from
investment securities reported in the Statement of Operations and the
Statement of Changes in Net Assets and the realized net gains (losses) on
securities per share in the Financial Highlights. Transaction costs are
included in the calculation of the Fund's net asset value and, accordingly,
they reduce the Fund's total returns. These transaction costs are not
considered operating expenses and are not reflected in net investment
income reported in the Statement of Operations and Statement of Changes in
Net Assets, or the net investment income per share and ratios of expenses
and net investment income reported in the Financial Highlights, nor are
they limited by any expense limitation arrangements between the Fund and
the advisor.
The Fund allocates realized capital gains and losses to a class based on
the relative net assets of each class. The Fund allocates income to a class
based on the relative value of the settled shares of each class.
C. DISTRIBUTIONS -- Distributions from income are declared daily and paid
monthly. Distributions from net realized capital gain, if any, are
generally paid annually and recorded on ex-dividend date. The Fund may
elect to use a portion of the proceeds from redemptions as distributions
for federal income tax purposes.
D. FEDERAL INCOME TAXES -- The Fund intends to comply with the requirements of
Subchapter M of the Internal Revenue Code necessary to qualify as a
regulated investment company and, as such, will not be subject to federal
income taxes on otherwise taxable income (including net realized capital
gain) which is distributed to shareholders. Therefore, no provision for
federal income taxes is recorded in the financial statements.
In addition, the Fund intends to invest in securities to allow it to
qualify to pay shareholders "exempt interest dividends", as defined in the
Internal Revenue Code of 1986, as amended.
E. EXPENSES -- Fees provided for under the Rule 12b-1 plan of a particular
class of the Fund and which are directly attributable to that class are
charged to the operations of such class. All other expenses are allocated
among the classes based on relative net assets.
NOTE 2--ADVISORY FEES AND OTHER FEES PAID TO AFFILIATES
The Trust has entered into a master investment advisory agreement with A I M
Advisors, Inc. ("AIM"). Under the terms of the investment advisory agreement,
the Fund pays an advisory fee to AIM at the annual rate of 0.25% of the first
$500 million of the Fund's average daily net assets plus 0.20% of the Fund's
average daily net assets in excess of $500 million. AIM has voluntarily agreed
to waive advisory fees and/or reimburse expenses to the extent necessary to
limit total annual fund operating expenses (excluding certain items discussed
below) to 0.22% of the Fund's average daily net assets. In determining the
advisor's obligation to waive advisory fees and/or reimburse expenses, the
following expenses are not taken into account, and could cause the total annual
fund operating expenses to exceed the limit stated above: (i) Rule 12b-1 plan
fees, if any; (ii) interest; (iii) taxes; (iv) extraordinary items (these are
expenses that are not anticipated to arise from the Fund's day-to-day
operations), or items designated as such by the Fund's Board of Trustees; (v)
expenses related to a merger or reorganization, as approved by the Fund's Board
of Trustees; (vi) expenses that the Fund has incurred but did not actually pay
because of an expense offset arrangement; (vii) trustees' fees; and (viii)
federal registration fees. Currently, in addition to the expense
F-29
reimbursement arrangement with AMVESCAP PLC ("AMVESCAP") described more fully
below, the only expense offset arrangements from which the Fund may benefit are
in the form of credits that the Fund receives from banks where the Fund or its
transfer agent has deposit accounts in which it holds uninvested cash. Those
credits are used to pay certain expenses incurred by the Fund. Voluntary fee
waivers or reimbursements may be modified or discontinued at any time upon
consultation with the Board of Trustees without further notice to investors.
For the year ended March 31, 2005, AIM waived fees of $1,559,355.
For the year ended March 31, 2005, at the request of the Trustees of the
Trust, AMVESCAP agreed to reimburse $1,679 of expenses incurred by the Fund in
connection with market timing matters in the AIM Funds, including legal, audit,
shareholder reporting, communications and trustee expenses. These expenses along
with the related expense reimbursement, are included in the Statement of
Operations.
The Trust, pursuant to a master administrative services agreement with AIM,
has agreed to pay AIM for certain administrative costs incurred in providing
accounting services to the Fund. Pursuant to such agreement, for the year ended
March 31, 2005, AIM was paid $593,616.
The Trust, pursuant to a transfer agency and service agreement, has agreed
to pay AIM Investment Services, Inc. ("AISI") a fee for providing transfer
agency and shareholder services to the Fund. During the year ended March 31,
2005, AISI retained $459,758.
Under the terms of a master distribution agreement between Fund Management
Company ("FMC") and the Trust, FMC acts as the exclusive distributor of the
Fund's shares. The Trust has adopted a master distribution plan pursuant to Rule
12b-1 under the 1940 Act with respect to the Fund's Private Investment Class,
Personal Investment Class, Cash Management Class, Reserve Class and Resource
Class (the "Plan"). The Plan provides that the Private Investment Class, the
Personal Investment Class, the Cash Management Class, the Reserve Class and the
Resource Class pay up to the maximum annual rate of 0.50%, 0.75%, 0.10%, 1.00%
and 0.20%, respectively, of the average daily net assets attributable to such
class. Of this amount, up to 0.25% of the average daily net assets of each class
may be paid to furnish continuing personal shareholder services to customers who
purchase and own shares of such classes. Any amounts not paid as a service fee
under such Plan would constitute an asset-based sales charge. NASD Rules also
impose a cap on the total amount of sales charges, including asset-based sales
charges, that may be paid by any class of shares of the Fund. Currently, FMC has
elected to waive a portion of its compensation payable by the Fund such that
compensation paid pursuant to the Plan with respect to the Private Investment
Class, the Personal Investment Class, the Cash Management Class, the Reserve
Class and the Resource Class equals the maximum annual rate of 0.25%, 0.55%,
0.08%, 0.87% and 0.16%, respectively, of the average daily net assets
attributable to such class. Further, FMC voluntarily waived additional Rule
12b-1 plan fees for the Reserve Class during the year in order to increase the
yield. Waivers may be modified or discontinued at any time. Pursuant to the
Plan, for the year ended March 31, 2005, the Private Investment Class, the
Personal Investment Class, the Cash Management Class, the Reserve Class and the
Resource Class paid $448,369, $57,719, $545,722 $87,429 and $407,988,
respectively, after FMC waived Plan fees of $448,370, $20,988, $136,431, $15,601
and $101,997, respectively.
Certain officers and trustees of the Trust are officers and directors of
AIM, FMC and/or AISI.
NOTE 3--TRUSTEES' FEES
Trustees' fees represent remuneration paid to each Trustee of the Trust who is
not an "interested person" of AIM. Trustees have the option to defer
compensation payable by the Trust. Those Trustees who defer compensation have
the option to select various AIM Funds in which their deferral accounts shall be
deemed to be invested.
Current Trustees are eligible to participate in a retirement plan that
provides for benefits to be paid upon retirement to Trustees over a period of
time based on the number of years of service. The Fund may have certain former
Trustees that also participate in a retirement plan and receive benefits under
such plan.
Obligations under the deferred compensation and retirement plans represent
unsecured claims against the general assets of the Fund.
During the year ended March 31, 2005, the Fund paid legal fees of $13,558
for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the
Independent Trustees. A member of that firm is a Trustee of the Trust.
NOTE 4--BORROWINGS
Pursuant to an exemptive order from the SEC, the Fund may participate in an
interfund lending facility that AIM has established for temporary borrowings by
the AIM Funds. An interfund loan will be made under this facility only if the
loan rate (an 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. A loan will be secured by collateral if the
Fund's aggregate borrowings from all sources exceeds 10% of the Fund's total
assets. To the extent that the loan is required to be secured by collateral, the
collateral is marked to market daily to ensure that the market value is at least
102% of the outstanding principal value of the loan. The Fund did not borrow or
lend under the facility during the year ended March 31, 2005.
Additionally, the Fund is permitted to temporarily carry a negative or
overdrawn balance in its account with The Bank of New York, the custodian bank.
To compensate the custodian bank for such overdrafts, the overdrawn Fund may
either (i) leave funds in the account so the custodian can be compensated by
earning the additional interest; or (ii) compensate by paying the custodian
bank. In either case, the custodian bank will be compensated at an amount equal
to the Federal Funds rate plus 100 basis points.
F-30
NOTE 5--DISTRIBUTIONS TO SHAREHOLDERS AND TAX COMPONENTS OF NET ASSETS
DISTRIBUTIONS TO SHAREHOLDERS:
The tax character of distributions paid during the years ended March 31, 2005
and 2004 was as follows:
<Table>
<Caption>
2005 2004
- ----------------------------------------------------------------------------------------
Distributions paid from ordinary income--Tax Exempt $36,860,093 $22,690,885
________________________________________________________________________________________
========================================================================================
</Table>
TAX COMPONENTS OF NET ASSETS:
As of March 31, 2005, the components of net assets on a tax basis were as
follows:
<Table>
<Caption>
2005
- ----------------------------------------------------------------------------
Undistributed ordinary income--Tax Exempt $ 185,341
- ----------------------------------------------------------------------------
Temporary book/tax differences (185,341)
- ----------------------------------------------------------------------------
Capital loss carryforward (54,712)
- ----------------------------------------------------------------------------
Post-October capital loss deferral (7,194)
- ----------------------------------------------------------------------------
Shares of beneficial interest 3,348,663,731
============================================================================
Total net assets $3,348,601,825
____________________________________________________________________________
============================================================================
</Table>
The temporary book/tax differences are a result of timing differences
between book and tax recognition of income and/or expenses. The Fund's temporary
book/tax differences are the result of the trustee deferral of compensation and
retirement plan expenses.
Capital loss carryforward is calculated and reported as of a specific date.
Results of transactions and other activity after that date may affect the amount
of capital loss carryforward actually available for the Fund to utilize. The
ability to utilize capital loss carryforward in the future may be limited under
the Internal Revenue Code and related regulations based on the results of future
transactions.
The Fund has a capital loss carryforward as of March 31, 2005 which expires
as follows:
<Table>
<Caption>
CAPITAL LOSS
EXPIRATION CARRYFORWARD*
- -----------------------------------------------------------------------------
March 31, 2011 $ 933
- -----------------------------------------------------------------------------
March 31, 2013 53,779
=============================================================================
Total capital loss carryforward $54,712
_____________________________________________________________________________
=============================================================================
</Table>
* Capital loss carryforward as of the date listed above is reduced for
limitations, if any, to the extent required by the Internal Revenue Code.
F-31
NOTE 6--SHARE INFORMATION
The Fund currently offers six different classes of shares: Institutional Class,
Private Investment Class, Personal Investment Class, Cash Management Class,
Reserve Class and Resource Class.
<Table>
<Caption>
CHANGES IN SHARES OUTSTANDING(a)
- ---------------------------------------------------------------------------------------------------------------------------------
YEAR ENDED MARCH 31,
--------------------------------------------------------------------------
2005 2004
----------------------------------- -----------------------------------
SHARES AMOUNT SHARES AMOUNT
- ---------------------------------------------------------------------------------------------------------------------------------
Sold:
Institutional Class 19,309,850,248 $ 19,309,850,248 13,446,683,719 $ 13,446,683,719
- ---------------------------------------------------------------------------------------------------------------------------------
Private Investment Class 442,201,609 442,201,609 489,285,624 489,285,624
- ---------------------------------------------------------------------------------------------------------------------------------
Personal Investment Class 31,788,215 31,788,215 26,756,133 26,756,133
- ---------------------------------------------------------------------------------------------------------------------------------
Cash Management Class 5,913,083,202 5,913,083,202 5,641,820,633 5,641,820,633
- ---------------------------------------------------------------------------------------------------------------------------------
Reserve Class 138,866,847 138,866,847 156,764,612 156,764,612
- ---------------------------------------------------------------------------------------------------------------------------------
Resource Class 1,776,129,695 1,776,129,695 1,508,376,051 1,508,376,051
=================================================================================================================================
Issued as reinvestment of dividends:
Institutional Class 13,098,927 13,098,927 7,301,226 7,301,226
- ---------------------------------------------------------------------------------------------------------------------------------
Private Investment Class 1,185,307 1,185,307 737,747 737,747
- ---------------------------------------------------------------------------------------------------------------------------------
Personal Investment Class 9,987 9,987 4,054 4,054
- ---------------------------------------------------------------------------------------------------------------------------------
Cash Management Class 5,725,182 5,725,182 4,115,815 4,115,815
- ---------------------------------------------------------------------------------------------------------------------------------
Reserve Class 32,528 32,528 8,921 8,921
- ---------------------------------------------------------------------------------------------------------------------------------
Resource Class 2,383,423 2,383,423 1,860,224 1,860,224
=================================================================================================================================
Reacquired:
Institutional Class (19,159,624,112) (19,159,624,112) (12,821,465,127) (12,821,465,127)
- ---------------------------------------------------------------------------------------------------------------------------------
Private Investment Class (397,166,156) (397,166,156) (567,459,749) (567,459,749)
- ---------------------------------------------------------------------------------------------------------------------------------
Personal Investment Class (31,314,564) (31,314,564) (33,358,241) (33,358,241)
- ---------------------------------------------------------------------------------------------------------------------------------
Cash Management Class (5,961,810,996) (5,961,810,996) (5,495,488,940) (5,495,488,940)
- ---------------------------------------------------------------------------------------------------------------------------------
Reserve Class (143,620,563) (143,620,563) (155,397,442) (155,397,442)
- ---------------------------------------------------------------------------------------------------------------------------------
Resource Class (1,788,092,794) (1,788,092,794) (1,471,211,176) (1,471,211,176)
=================================================================================================================================
152,725,985 $ 152,725,985 739,334,084 $ 739,334,084
_________________________________________________________________________________________________________________________________
=================================================================================================================================
</Table>
(a) There are three entities that are each record owners of more than 5% of
the outstanding shares of the Fund and in the aggregate they own 57% of
the outstanding shares of the Fund. AIM Distributors has an agreement
with these entities to sell Fund shares. The Fund, AIM and/or AIM
affiliates may make payments to these entities, which are considered to
be related to the Fund, for providing services to the Fund, AIM and/or
AIM affiliates including but not limited to services such as, securities
brokerage, distribution, third party record keeping and account
servicing. The Trust has no knowledge as to whether all or any portion
of the shares owned of record by these entities are also owned
beneficially.
F-32
NOTE 7--FINANCIAL HIGHLIGHTS
The following schedule presents financial highlights for a share of the Fund
outstanding throughout the periods indicated.
<Table>
<Caption>
RESOURCE CLASS
----------------------------------------------------------
YEAR ENDED MARCH 31,
----------------------------------------------------------
2005 2004 2003 2002 2001
- ------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
- ------------------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income 0.01 0.01 0.01 0.02 0.04
========================================================================================================================
Less distributions from net investment income (0.01) (0.01) (0.01) (0.02) (0.04)
========================================================================================================================
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
________________________________________________________________________________________________________________________
========================================================================================================================
Total return(a) 1.08% 0.68% 1.06% 2.00% 3.78%
________________________________________________________________________________________________________________________
========================================================================================================================
Ratios/supplemental data:
Net assets, end of period (000s omitted) $289,621 $299,205 $260,178 $137,307 $15,464
________________________________________________________________________________________________________________________
========================================================================================================================
Ratio of expenses to average net assets:
With fee waivers and/or expense reimbursements 0.38%(b) 0.38% 0.38% 0.38% 0.36%
- ------------------------------------------------------------------------------------------------------------------------
Without fee waivers and/or expense reimbursements 0.47%(b) 0.47% 0.47% 0.48% 0.49%
________________________________________________________________________________________________________________________
========================================================================================================================
Ratio of net investment income to average net assets 1.08%(b) 0.67% 1.04% 1.84% 3.68%
________________________________________________________________________________________________________________________
========================================================================================================================
</Table>
(a) Includes adjustments in accordance with accounting principles generally
accepted in the United States of America.
(b) Ratios are based on average daily net assets of $254,992,427.
NOTE 8--CHANGE IN INDEPENDENT REGISTERED ACCOUNTING FIRM
On March 23, 2005, the Audit Committee (the "Audit Committee") of the Board of
Trustees of the Trust appointed PricewaterhouseCoopers LLP ("PWC") as the
independent registered public accounting firm of the Fund for the fiscal year
ending March 31, 2006. For the prior reporting period, Ernst & Young ("E&Y") was
the Fund's independent registered public accounting firm. The change in the
Fund's independent auditors was part of an effort by the Audit Committee to
increase operational efficiencies by reducing the number of different audit
firms engaged by the Audit Committee to audit AIM Funds with March 31 fiscal
year ends. The Fund is in the process of obtaining a formal resignation from E&Y
as the independent registered public accounting firm of the Fund.
E&Y's report on the financial statements of the Fund for the past two years
did not contain an adverse or disclaimer of opinion, and was not qualified or
modified as to uncertainty, audit scope or accounting principles. During the
period E&Y was engaged, there were no disagreements with E&Y on any matter of
accounting principles or practices, financial statement disclosure, or auditing
scope or procedure which, if not resolved to E&Y's satisfaction, would have
caused it to make reference to that matter in connection with its report.
F-33
NOTE 9--LEGAL PROCEEDINGS
Terms used in the Legal Proceedings Note are defined terms solely for the
purpose of this note.
SETTLED ENFORCEMENT ACTIONS AND INVESTIGATIONS RELATED TO MARKET TIMING
On October 8, 2004, INVESCO Funds Group, Inc. ("IFG") (the former investment
advisor to certain AIM Funds) and A I M Advisors, Inc. ("AIM") (the Fund's
investment advisor) reached final settlements with certain regulators, including
without limitation the Securities and Exchange Commission ("SEC"), the New York
Attorney General ("NYAG") and the Colorado Attorney General ("COAG"), to resolve
civil enforcement actions and investigations related to market timing activity
and related issues in the AIM Funds, including those formerly advised by IFG.
These regulators alleged, in substance, that IFG and AIM failed to disclose in
the prospectuses for the AIM Funds that they advised and to the independent
directors/trustees of such Funds that they had entered into certain arrangements
permitting market timing of such Funds, thereby breaching their fiduciary duties
to such Funds. As a result of the foregoing, the regulators alleged that IFG and
AIM breached various Federal and state securities, business and consumer
protection laws. On the same date, A I M Distributors, Inc. ("ADI") (the
distributor of the retail AIM Funds) reached a final settlement with the SEC to
resolve an investigation relating to market timing activity and related issues
in the AIM Funds. The SEC also alleged that ADI violated various Federal
securities laws. The SEC also has settled related market timing enforcement
actions brought against certain former officers and employees of IFG.
Under the terms of the settlements, IFG agreed to pay a total of $325 million,
of which $110 million is civil penalties. Of this $325 million total payment,
half has been paid and the remaining half will be paid on or before December 31,
2005. AIM and ADI agreed to pay a total of $50 million, of which $30 million is
civil penalties, all of which has been paid. The entire $325 million IFG
settlement fund will be made available for distribution to the shareholders of
those AIM Funds that IFG formerly advised that were harmed by market timing
activity, and the entire $50 million settlement fund by AIM and ADI will be made
available for distribution to the shareholders of those AIM Funds advised by AIM
that were harmed by market timing activity, all as to be determined by an
independent distribution consultant. The IFG and AIM settlement funds may
increase as a result of contributions from third parties who reach final
settlements with the SEC or other regulators to resolve allegations of market
timing and/or late trading. The settlement funds will be distributed in
accordance with a methodology to be determined by the independent distribution
consultant, in consultation with AIM and the independent trustees of the AIM
Funds and acceptable to the staff of the SEC. Under the settlements with the
NYAG and COAG, AIM has agreed to reduce management fees on certain equity and
balanced AIM Funds by $15 million per year for the next five years, based upon
effective fee rates and assets under management as of July 1, 2004, not to
increase certain management fees and to provide more information to investors
regarding fees.
Under the terms of the settlements, AIM is undertaking certain governance and
compliance reforms, including maintaining an internal controls committee and
retaining an independent compliance consultant and a corporate ombudsman. Also,
commencing in 2007 and at least once every other year thereafter, AIM will
undergo a compliance review by an independent third party. In addition, under
the terms of the settlements, AIM has undertaken to cause the AIM Funds to
operate in accordance with certain governance policies and practices, including
retaining a full-time independent senior officer whose duties include monitoring
compliance and managing the process by which proposed management fees to be
charged the AIM Funds are negotiated. Also, commencing in 2008 and not less than
every fifth calendar year thereafter, the AIM Funds will hold shareholder
meetings at which their Boards of Trustees will be elected.
At the request of the trustees of the AIM Funds, AMVESCAP PLC ("AMVESCAP"),
the parent company of IFG and AIM, has agreed to reimburse expenses incurred by
such Funds related to market timing matters.
The SEC has also settled market timing enforcement actions against Raymond R.
Cunningham (the former president and chief executive officer of IFG and a former
member of the board of directors of the AIM Funds formerly advised by IFG),
Timothy J. Miller (the former chief investment officer and a former portfolio
manager for IFG), Thomas A. Kolbe (the former national sales manager of IFG) and
Michael D. Legoski (a former assistant vice president in IFG's sales
department). As part of these settlements, the SEC ordered these individuals to
pay restitution and civil penalties in various amounts and prohibited them from
associating with, or serving as an officer or director of, an investment
advisor, broker, dealer and/or investment company, as applicable, for certain
periods of time.
The payments made in connection with the above-referenced settlements by IFG,
AIM and ADI will total approximately $375 million (not including AIM's agreement
to reduce management fees on certain equity and balanced AIM Funds by $15
million per year for the next five years, based upon effective fee rates and
assets under management as of July 1, 2004). The manner in which the settlement
payments will be distributed is unknown at the present time and will be
determined by an independent distribution consultant appointed under the
settlement agreements. Therefore, management of AIM and the Fund are unable at
the present time to estimate the impact, if any, that the distribution of the
settlement payments may have on the Fund or whether such distribution will have
an impact on the Fund's financial statements in the future.
At the present time, management of AIM and the Fund are unable to estimate the
impact, if any, that the outcome of the Regulatory Inquiries and Pending
Litigation described below may have on AIM, ADI or the Fund.
REGULATORY INQUIRIES AND PENDING LITIGATION
The mutual fund industry as a whole is currently subject to regulatory
inquiries and litigation related to a wide range of issues. These issues
include, among others, market timing activity, late trading, fair value pricing,
excessive or improper advisory and/or distribution fees, mutual fund sales
practices, including but not limited to revenue sharing and directed-brokerage
arrangements, investments in securities of other registered investment
companies, contractual plans, issues related to Section 529 college savings
plans, procedures for locating lost security holders and participation in class
action settlements.
As described more fully below, IFG and AIM are the subject of a number of
ongoing regulatory inquiries and civil lawsuits related to one or more of the
issues currently being scrutinized by various Federal and state regulators,
including but not limited to those issues described above. Additional regulatory
actions and/or civil lawsuits related to the above or other issues may be filed
against the AIM Funds, IFG, AIM and/or related entities and
F-34
NOTE 9--LEGAL PROCEEDINGS (CONTINUED)
individuals in the future. Additional regulatory inquiries related to the above
or other issues also may be received by the AIM Funds, IFG, AIM and/or related
entities and individuals in the future.
Ongoing Regulatory Inquiries Concerning IFG and AIM
IFG, certain related entities, certain of their current and former officers
and/or certain of the AIM Funds formerly advised by IFG have received regulatory
inquiries in the form of subpoenas or other oral or written requests for
information and/or documents related to one or more of the following issues,
some of which concern one or more such Funds: market timing activity, late
trading, fair value pricing, excessive or improper advisory and/or distribution
fees, mutual fund sales practices, including revenue sharing and
directed-brokerage arrangements, and investments in securities of other
registered investment companies. These regulators include the SEC, the NASD,
Inc. ("NASD"), the Florida Department of Financial Services, the Attorney
General of the State of West Virginia, the West Virginia Securities Commission
and the Bureau of Securities of the State of New Jersey. IFG and certain of
these other parties also have received more limited inquiries from the United
States Department of Labor ("DOL") and the United States Attorney's Office for
the Southern District of New York, some of which concern one or more of the AIM
Funds formerly advised by IFG. IFG is providing full cooperation with respect to
these inquiries.
AIM, certain related entities, certain of their current and former officers
and/or certain of the AIM Funds have received regulatory inquiries in the form
of subpoenas or other oral or written requests for information and/or documents
related to one or more of the following issues, some of which concern one or
more AIM Funds: market timing activity, late trading, fair value pricing,
excessive or improper advisory and/or distribution fees, mutual fund sales
practices, including revenue sharing and directed-brokerage arrangements,
investments in securities of other registered investment companies, contractual
plans, issues related to Section 529 college savings plans and procedures for
locating lost securityholders. These regulators include the SEC, the NASD, the
Department of Banking for the State of Connecticut, the Attorney General of the
State of West Virginia, the West Virginia Securities Commission and the Bureau
of Securities of the State of New Jersey. AIM and certain of these other parties
also have received more limited inquiries from the SEC, the NASD, the DOL, the
Internal Revenue Service, the United States Attorney's Office for the Southern
District of New York, the United States Attorney's Office for the Central
District of California, the United States Attorney's Office for the District of
Massachusetts, the Massachusetts Securities Division, the U.S. Postal Inspection
Service and the Commodity Futures Trading Commission, some of which concern one
or more AIM Funds. AIM is providing full cooperation with respect to these
inquiries.
Pending Regulatory Civil Action Alleging Market Timing
On April 12, 2005, the Attorney General of the State of West Virginia ("WVAG")
filed civil proceedings against AIM, IFG and ADI, as well as numerous unrelated
mutual fund complexes and financial institutions. None of the AIM Funds has been
named as a defendant in these proceedings. The WVAG complaint, filed in the
Circuit Court of Marshall County, West Virginia [Civil Action No. 05-C-81],
alleges, in substance, that AIM, IFG and ADI engaged in unfair competition
and/or unfair or deceptive trade practices by failing to disclose in the
prospectuses for the AIM Funds, including those formerly advised by IFG, that
they had entered into certain arrangements permitting market timing of such
Funds. As a result of the foregoing, the WVAG alleges violations of W. Va. Code
sec. 46A-1-101, et seq. (the West Virginia Consumer Credit and Protection Act).
The WVAG complaint is seeking injunctive relief; civil monetary penalties; a
writ of quo warranto against the defendants; pre-judgment and post-judgment
interest; costs and expenses, including counsel fees; and other relief.
If AIM is unsuccessful in its defense of the WVAG proceedings, it could be
barred from serving as an investment adviser for any investment company
registered under the Investment Company Act of 1940, as amended (a "registered
investment company"). Such results could affect the ability of AIM or any other
investment advisor directly or indirectly owned by AMVESCAP, from serving as an
investment advisor to any registered investment company, including your Fund.
Your Fund has been informed by AIM that, if these results occur, AIM will seek
exemptive relief from the SEC to permit it to continue to serve as your Fund's
investment advisor. There is no assurance that such exemptive relief will be
granted.
Private Civil Actions Alleging Market Timing
Multiple civil lawsuits, including purported class action and shareholder
derivative suits, have been filed against various parties (including, depending
on the lawsuit, certain AIM Funds, IFG, AIM, AIM Management, AMVESCAP, certain
related entities, certain of their current and former officers and/or certain
unrelated third parties) making allegations that are similar in many respects to
those in the settled regulatory actions brought by the SEC, the NYAG and the
COAG concerning market timing activity in the AIM Funds. These lawsuits allege a
variety of theories of recovery, including but not limited to: (i) violation of
various provisions of the Federal and state securities laws; (ii) violation of
various provisions of ERISA; (iii) breach of fiduciary duty; and/or (iv) breach
of contract. These lawsuits were initiated in both Federal and state courts and
seek such remedies as compensatory damages; restitution; injunctive relief;
disgorgement of management fees; imposition of a constructive trust; removal of
certain directors and/or employees; various corrective measures under ERISA;
rescission of certain Funds' advisory agreements; interest; and attorneys' and
experts' fees.
All lawsuits based on allegations of market timing, late trading, and related
issues have been transferred to the United States District Court for the
District of Maryland (the "MDL Court") for consolidated or coordinated pre-trial
proceedings. Pursuant to an Order of the MDL Court, plaintiffs consolidated
their claims for pre-trial purposes into three amended complaints against
various AIM- and IFG-related parties: (i) a Consolidated Amended Class Action
Complaint purportedly brought on behalf of shareholders of the AIM Funds; (ii) a
Consolidated Amended Fund Derivative Complaint purportedly brought on behalf of
the AIM Funds and fund registrants; and (iii) an Amended Class Action Complaint
for Violations of the Employee Retirement Income Securities Act ("ERISA")
purportedly brought on behalf of participants in AMVESCAP's 401(k) plan. The
plaintiffs in two of the underlying lawsuits continue to seek remand of their
lawsuit to state court.
F-35
NOTE 9--LEGAL PROCEEDINGS (CONTINUED)
Private Civil Actions Alleging Improper Use of Fair Value Pricing
Multiple civil class action lawsuits have been filed against various parties
(including, depending on the lawsuit, certain AIM Funds, IFG and/or AIM)
alleging that certain AIM Funds inadequately employed fair value pricing. These
lawsuits allege a variety of theories of recovery, including but not limited to:
(i) violations of various provisions of the Federal securities laws; (ii) common
law breach of duty; and (iii) common law negligence and gross negligence. These
lawsuits have been filed in both Federal and state courts and seek such remedies
as compensatory and punitive damages; interest; and attorneys' fees and costs.
Based on a recent court decision, the state court action has been removed to
Federal court.
Private Civil Actions Alleging Excessive Advisory and/or Distribution Fees
Multiple civil lawsuits, including purported class action and shareholder
derivative suits, have been filed against various parties (including, depending
on the lawsuit, IFG, AIM, INVESCO Institutional (N.A.), Inc. ("IINA"), ADI
and/or INVESCO Distributors, Inc. ("INVESCO Distributors")) alleging that the
defendants charged excessive advisory and/or distribution fees and failed to
pass on to shareholders the perceived savings generated by economies of scale.
Certain of these lawsuits also allege that the defendants adopted unlawful
distribution plans. These lawsuits allege a variety of theories of recovery,
including but not limited to: (i) violation of various provisions of the Federal
securities laws; (ii) breach of fiduciary duty; and/or (iii) breach of contract.
These lawsuits have been filed in Federal courts and seek such remedies as
damages; injunctive relief; rescission of certain Funds' advisory agreements and
distribution plans; interest; prospective relief in the form of reduced fees;
and attorneys' and experts' fees. All of these lawsuits have been transferred to
the United States District Court for the Southern District of Texas, Houston
Division and subsequently consolidated for pre-trial purposes into one lawsuit.
Private Civil Actions Alleging Improper Charging of Distribution Fees on Limited
Offering Funds or Share Classes
Multiple civil lawsuits, including shareholder derivative suits, have been
filed against various parties (including, depending on the lawsuit, IFG, AIM,
ADI and/or certain of the trustees of the AIM Funds) alleging that the
defendants breached their fiduciary duties by charging distribution fees while
funds and/or specific share classes were closed generally to new investors
and/or while other share classes of the same fund were not charged the same
distribution fees. These lawsuits allege a variety of theories of recovery,
including but not limited to: (i) violation of various provisions of the Federal
securities laws; and (ii) breach of fiduciary duty. These lawsuits have been
filed in Federal courts and seek such remedies as damages; injunctive relief;
and attorneys' and experts' fees.
Private Civil Actions Alleging Improper Mutual Fund Sales Practices and
Directed-Brokerage Arrangements
Multiple civil lawsuits, including purported class action and shareholder
derivative suits, have been filed against various parties (including, depending
on the lawsuit, AIM Management, IFG, AIM, AIM Investment Services, Inc. ("AIS")
and/or certain of the trustees of the AIM Funds) alleging that the defendants
improperly used the assets of the AIM Funds to pay brokers to aggressively
promote the sale of the AIM Funds over other mutual funds and that the
defendants concealed such payments from investors by disguising them as
brokerage commissions. These lawsuits allege a variety of theories of recovery,
including but not limited to: (i) violation of various provisions of the Federal
securities laws; (ii) breach of fiduciary duty; and (iii) aiding and abetting a
breach of fiduciary duty. These lawsuits have been filed in Federal courts and
seek such remedies as compensatory and punitive damages; rescission of certain
Funds' advisory agreements and distribution plans and recovery of all fees paid;
an accounting of all fund-related fees, commissions and soft dollar payments;
restitution of all unlawfully or discriminatorily obtained fees and charges; and
attorneys' and experts' fees. These actions have been consolidated for pre-trial
purposes.
Private Civil Action Alleging Failure to Ensure Participation in Class Action
Settlements
A civil lawsuit, purporting to be a class action lawsuit, has been filed
against AIM, IINA, A I M Capital Management, Inc. and the trustees of the AIM
Funds alleging that the defendants breached their fiduciary duties by failing to
ensure that the AIM Funds participated in class action settlements in which the
AIM Funds were eligible to participate. This lawsuit alleges as theories of
recovery: (i) violation of various provisions of the Federal securities laws;
(ii) common law breach of fiduciary duty; and (iii) common law negligence. This
lawsuit has been filed in Federal court and seeks such remedies as compensatory
and punitive damages; forfeiture of all commissions and fees paid by the class
of plaintiffs; and costs and attorneys' fees.
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
* * * * * *
As a result of the matters discussed above, investors in the AIM Funds might
react by redeeming their investments. This might require the Funds to sell
investments to provide for sufficient liquidity and could also have an adverse
effect on the investment performance of the Funds.
F-36
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Shareholders of Tax-Free Cash Reserve Portfolio
and the Board of Trustees of Tax-Free Investments Trust:
We have audited the accompanying statement of assets and liabilities of Tax-Free
Cash Reserve Portfolio (a portfolio of Tax-Free Investments Trust), including
the schedule of investments, as of March 31, 2005, and the related statement of
operations for the year then ended, the statements of changes in net assets for
each of the two years in the period then ended, and the financial highlights for
each of the five years in the period then ended. These financial statements and
financial highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. We were
not engaged to perform an audit of the Fund's internal control over financial
reporting. Our audits included consideration of internal control over financial
reporting as a basis for designing audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Fund's internal control over financial reporting.
Accordingly, we express no such opinion. An audit also includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements and financial highlights, assessing the accounting principles used
and significant estimates made by management, and evaluating the overall
financial statement presentation. Our procedures included confirmation of
securities owned as of March 31, 2005 by correspondence with the custodian and
brokers or by other appropriate auditing procedures where replies from brokers
were not received. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Tax-Free Cash Reserve Portfolio as of March 31, 2005, the results of its
operations for the year then ended, the changes in its net assets for each of
the two years in the period then ended, and the financial highlights for each of
the five years in the period then ended, in conformity with U.S. generally
accepted accounting principles.
Houston, Texas -s- ERNST & YOUNG LLP
May 18, 2005
F-37
TRUSTEES AND OFFICERS
As of March 31, 2005
The address of each trustee and officer of Tax-Free Investments Trust (the
"Trust"), is 11 Greenway Plaza, Suite 100, Houston, Texas 77046. Each trustee
oversees 114 portfolios in the AIM Funds complex. The trustees serve for the
life of the Trust, subject to their earlier death, incapacitation, resignation,
retirement or removal as more specifically provided in the Trust's
organizational documents. Column two below includes length of time served with
predecessor entities, if any.
<Table>
<Caption>
TRUSTEE AND/
NAME, YEAR OF BIRTH AND OR OFFICER PRINCIPAL OCCUPATION(S) OTHER DIRECTORSHIP(S)
POSITION(S) HELD WITH THE TRUST SINCE DURING PAST 5 YEARS HELD BY TRUSTEE
- --------------------------------------------------------------------------------------------------------------------
INTERESTED PERSONS
- --------------------------------------------------------------------------------------------------------------------
Robert H. Graham(1) -- 1946 1977 Director and Chairman, A I M None
Trustee, Vice Chair and Management Group Inc.
President (financial services holding
company); Director and Vice
Chairman, AMVESCAP PLC and
Chairman, AMVESCAP PLC -- AIM
Division (parent of AIM and a
global investment management
firm)
Formerly: President and Chief
Executive Officer, A I M
Management Group Inc.;
Director, Chairman and
President, A I M Advisors,
Inc. (registered investment
advisor); Director and
Chairman, A I M Capital
Management, Inc. (registered
investment advisor), A I M
Distributors, Inc. (registered
broker dealer), AIM Investment
Services, Inc., (registered
transfer agent), and Fund
Management Company (registered
broker dealer); and Chief
Executive Officer, AMVESCAP
PLC -- Managed Products
- --------------------------------------------------------------------------------------------------------------------
Mark H. Williamson(2) -- 1951 2003 Director, President and Chief None
Trustee and Executive Vice Executive Officer, A I M
President Management Group Inc.;
Director, Chairman and
President, A I M Advisors,
Inc.; Director, A I M Capital
Management, Inc. and A I M
Distributors, Inc.; Director
and Chairman, AIM Investment
Services, Inc., Fund
Management Company and INVESCO
Distributors, Inc. (registered
broker dealer); and Chief
Executive Officer, AMVESCAP
PLC -- AIM Division (parent of
AIM and a global investment
management firm)
Formerly: Director, Chairman,
President and Chief Executive
Officer, INVESCO Funds Group,
Inc.; President and Chief
Executive Officer, INVESCO
Distributors, Inc.; Chief
Executive Officer, AMVESCAP
PLC -- Managed Products
- --------------------------------------------------------------------------------------------------------------------
INDEPENDENT TRUSTEES
- --------------------------------------------------------------------------------------------------------------------
Bruce L. Crockett(3) -- 1944 1992 Chairman, Crockett Technology ACE Limited (insurance
Trustee and Chair Associates (technology company); and Captaris,
consulting company) Inc. (unified messaging
provider)
- --------------------------------------------------------------------------------------------------------------------
Bob R. Baker -- 1936 2003 Retired None
Trustee
- --------------------------------------------------------------------------------------------------------------------
Frank S. Bayley -- 1939 2001 Retired Badgley Funds, Inc.
Trustee (registered investment
Formerly: Partner, law firm of company)
Baker & McKenzie
- --------------------------------------------------------------------------------------------------------------------
James T. Bunch -- 1942 2003 Co-President and Founder, None
Trustee Green, Manning & Bunch Ltd.,
(investment banking firm); and
Director, Policy Studies, Inc.
and Van Gilder Insurance
Corporation
- --------------------------------------------------------------------------------------------------------------------
Albert R. Dowden -- 1941 2000 Director of a number of public None
Trustee and private business
corporations, including the
Boss Group Ltd. (private
investment and management);
Cortland Trust, Inc.
(Chairman) (registered
investment company); Annuity
and Life Re (Holdings), Ltd.
(insurance company); and
CompuDyne Corporation
(provider of products and
services to the public
security market)
Formerly: Director, President
and Chief Executive Officer,
Volvo Group North America,
Inc.; Senior Vice President,
AB Volvo; and director of
various affiliated Volvo
companies
- --------------------------------------------------------------------------------------------------------------------
Edward K. Dunn, Jr. -- 1935 1998 Retired None
Trustee
Formerly: Chairman, Mercantile
Mortgage Corp.; President and
Chief Operating Officer,
Mercantile-Safe Deposit &
Trust Co.; and President,
Mercantile Bankshares Corp.
- --------------------------------------------------------------------------------------------------------------------
Jack M. Fields -- 1952 1997 Chief Executive Officer, Administaff, and
Trustee Twenty First Century Group, Discovery Global
Inc. (government affairs Education Fund
company) (owner) Dos Angelos (non-profit)
Ranch, L.P.
Formerly: Chief Executive
Officer, Texana Timber LP
(sustainable forestry company)
- --------------------------------------------------------------------------------------------------------------------
Carl Frischling -- 1937 1992 Partner, law firm of Kramer Cortland Trust, Inc.
Trustee Levin Naftalis and Frankel LLP (registered investment
company)
- --------------------------------------------------------------------------------------------------------------------
Gerald J. Lewis -- 1933 2003 Chairman, Lawsuit Resolution General Chemical Group,
Trustee Services (San Diego, Inc.
California)
- --------------------------------------------------------------------------------------------------------------------
Prema Mathai-Davis -- 1950 1998 Formerly: Chief Executive None
Trustee Officer, YWCA of the USA
- --------------------------------------------------------------------------------------------------------------------
</Table>
(1) Mr. Graham is considered an interested person of the Trust because he is a
director of AMVESCAP PLC, parent of the advisor to the Trust. Prior to
October 4, 2004, Mr. Graham served as Chairman of the Board of Trustees of
the Trust.
(2) Mr. Williamson is considered an interested person of the Trust because he is
an officer and a director of the advisor to, and a director of the principal
underwriter of, the Trust.
(3) Mr. Crockett was elected Chair of the Board of Trustees of the Trust
effective October 4, 2004.
TRUSTEES AND OFFICERS (continued)
As of March 31, 2005
The address of each trustee and officer of Tax-Free Investments Trust (the
"Trust"), is 11 Greenway Plaza, Suite 100, Houston, Texas 77046. Each trustee
oversees 114 portfolios in the AIM Funds complex. The trustees serve for the
life of the Trust, subject to their earlier death, incapacitation, resignation,
retirement or removal as more specifically provided in the Trust's
organizational documents. Column two below includes length of time served with
predecessor entities, if any.
<Table>
<Caption>
TRUSTEE AND/
NAME, YEAR OF BIRTH AND OR OFFICER PRINCIPAL OCCUPATION(S) OTHER DIRECTORSHIP(S)
POSITION(S) HELD WITH THE TRUST SINCE DURING PAST 5 YEARS HELD BY TRUSTEE
- -------------------------------------------------------------------------------------------------------------------------------
Lewis F. Pennock -- 1942 1992 Partner, law firm of Pennock & Cooper None
Trustee
- -------------------------------------------------------------------------------------------------------------------------------
Ruth H. Quigley -- 1935 2001 Retired None
Trustee
- -------------------------------------------------------------------------------------------------------------------------------
Larry Soll -- 1942 2003 Retired None
Trustee
- -------------------------------------------------------------------------------------------------------------------------------
OTHER OFFICERS
- -------------------------------------------------------------------------------------------------------------------------------
Lisa O. Brinkley(4) -- 1959 2004 Senior Vice President, A I M Management N/A
Senior Vice President and Chief Group Inc.; Senior Vice President and
Compliance Officer Chief Compliance Officer, A I M
Advisors, Inc.; Vice President and Chief
Compliance Officer, A I M Capital
Management, Inc. and Vice President,
A I M Distributors, Inc., AIM Investment
Services, Inc. and Fund Management
Company
Formerly: Senior Vice President and
Compliance Director, Delaware
Investments Family of Funds and Chief
Compliance Officer, A I M Distributors,
Inc.
- -------------------------------------------------------------------------------------------------------------------------------
Russell C. Burk(5) -- 1958 2005 Formerly: Director of Compliance and N/A
Senior Vice President Assistant General Counsel, ICON
Advisers, Inc.; Financial Consultant,
Merrill Lynch; General Counsel and
Director of Compliance, ALPS Mutual
Funds, Inc.
- -------------------------------------------------------------------------------------------------------------------------------
Kevin M. Carome -- 1956 2003 Director, Senior Vice President, N/A
Senior Vice President, Secretary and General Counsel, A I M
Secretary and Chief Legal Management Group Inc. and A I M
Officer Advisors, Inc.; Director and Vice
President, INVESCO Distributors, Inc.;
Vice President, A I M Capital
Management, Inc., and AIM Investment
Services, Inc.; Director, Vice President
and General Counsel, Fund Management
Company; and Senior Vice President,
A I M Distributors, Inc.
Formerly: Senior Vice President and
General Counsel, Liberty Financial
Companies, Inc.; and Senior Vice
President and General Counsel, Liberty
Funds Group, LLC; and Vice President,
A I M Distributors, Inc.
- -------------------------------------------------------------------------------------------------------------------------------
Stuart W. Coco -- 1955 1992 Managing Director and Director of Money N/A
Vice President Market Research and Special Projects,
A I M Capital Management, Inc.; and Vice
President, A I M Advisors, Inc.
- -------------------------------------------------------------------------------------------------------------------------------
Sidney M. Dilgren -- 1961 2004 Vice President and Fund Treasurer, A I M N/A
Vice President and Treasurer Advisors, Inc.
Formerly: Senior Vice President, AIM
Investment Services, Inc.; and Vice
President, A I M Distributors, Inc.
- -------------------------------------------------------------------------------------------------------------------------------
J. Philip Ferguson(6) -- 1945 2005 Senior Vice President and Chief N/A
Vice President Investment Officer, A I M Advisors Inc.;
Director, Chairman, Chief Executive
Officer, President and Chief Investment
Officer, A I M Capital Management, Inc.;
Executive Vice President, A I M
Management Group Inc.
Formerly: Senior Vice President, AIM
Private Asset Management, Inc.; Chief
Equity Officer, and Senior Investment
Officer, A I M Capital Management, Inc.;
and Managing Partner, Beutel, Goodman
Capital Management
- -------------------------------------------------------------------------------------------------------------------------------
Karen Dunn Kelley -- 1960 1992 Director of Cash Management, Managing N/A
Vice President Director and Chief Cash Management
Officer, A I M Capital Management, Inc;
Director and President, Fund Management
Company; and Vice President, A I M
Advisors, Inc.
- -------------------------------------------------------------------------------------------------------------------------------
</Table>
(4) Ms. Brinkley was elected Senior Vice President and Chief Compliance Officer
of the Trust effective September 20, 2004.
(5) Mr. Burk was elected Senior Vice President of the Trust effective February
15, 2005.
(6) Mr. Ferguson was elected Vice President of the Trust effective February 24,
2005.
The Statement of Additional Information of the Trust includes additional
information about the Fund's Trustees and is available upon request, without
charge, by calling 1.800.959.4246.
<Table>
OFFICE OF THE FUND INVESTMENT ADVISOR DISTRIBUTOR AUDITORS
11 Greenway Plaza A I M Advisors, Inc. Fund Management Company Ernst & Young LLP
Suite 100 11 Greenway Plaza 11 Greenway Plaza 5 Houston Center
Houston, TX 77046-1173 Suite 100 Suite 100 1401 McKinney, Suite
Houston, TX 77046-1173 Houston, TX 77046-1173 1200
Houston, TX 77010-4035
COUNSEL TO THE
COUNSEL TO THE FUND INDEPENDENT TRUSTEES TRANSFER AGENT CUSTODIAN
Ballard Spahr Kramer, Levin, Naftalis AIM Investment The Bank of New York
Andrews & Ingersoll, LLP & Frankel LLP Services, Inc. 2 Hanson Place
1735 Market Street 1177 Avenue of the P.O. Box 4739 Brooklyn, NY 11217-1431
Philadelphia, PA 19103-7599 Americas Houston, TX 77210-4739
New York, NY 10036-2714
</Table>
REQUIRED FEDERAL INCOME TAX INFORMATION (UNAUDITED)
We are required by Internal Revenue Code to advise you within 60 days of the
Fund's fiscal year end as to the federal tax status of dividends paid by the
Fund during its fiscal year ended March 31, 2005.
AIM Tax-Free Cash Reserve Portfolio Institutional Class paid ordinary dividends
in the amount of $0.0123 during its tax year ended March 31, 2005. Of this
amount, 100% qualified as tax-exempt interest dividends for federal income tax
purposes.
For the purpose of preparing your annual federal income tax returns, however,
you should report the amounts as reflected on the Statement of Tax-Exempt
Income.
The Fund provides a complete list of its holdings four times in each fiscal
year, at the quarter-ends. For the second and fourth quarters, the lists appear
in the Fund's semiannual and annual reports to shareholders. For the first and
third quarters, the Fund files the lists with the Securities and Exchange
Commission (SEC) on Form N-Q. Shareholders can look up the Fund's Forms N-Q on
the SEC's Web site at sec.gov. Copies of the Fund's Forms N-Q may be reviewed
and copied at the SEC's Public Reference Room at 450 Fifth Street, N.W.,
Washington, D.C. 20549-0102. You can obtain information on the operation of the
Public Reference Room, including information about duplicating fee charges, by
calling 1-202-942-8090 or by electronic request at the following e-mail address:
publicinfo@sec.gov. The SEC file numbers for the Fund are 811-2731 and 2-58286.
The Fund's most recent portfolio holdings, as filed on Form N-Q, are also
available at AIMinvestments.com.
A description of the policies and procedures that the fund uses to determine how
to vote proxies relating to portfolio securities is available without charge,
upon request, from our Client Services department at 800-659-1005 or on the AIM
Web site, AIMinvestments.com. On the home page, scroll down and click on AIM
Funds Proxy Policy. The information is also available on the SEC Web site,
sec.gov.
Information regarding how the fund voted proxies related to its portfolio
securities during the 12 months ended June 30, 2004 is available at our Web
site. Go to AIMinvestments.com, access the About Us tab, click on Required
Notices and then click on Proxy Voting Activity. Next, select your fund from the
dropdown menu. The information is also available on the SEC Web site, sec.gov.
[YOUR GOALS. OUR SOLUTIONS.]
--REGISTERED TRADEMARK--
[AIM INVESTMENTS LOGO]
--REGISTERED TRADEMARK--
AIMinvestments.com TFIT-AR-5 Fund Management Company
ITEM 2. CODE OF ETHICS.
As of the end of the period covered by this report, the Registrant had
adopted a code of ethics (the "Code") that applies to the Registrant's
principal executive officer ("PEO") and principal financial officer
("PFO"). There were no amendments to the Code during the period
covered by the report. The Registrant did not grant any waivers,
including implicit waivers, from any provisions of the Code to the PEO
or PFO during the period covered by this report.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
The Board of Trustees has determined that the Registrant has at least
one audit committee financial expert serving on its Audit Committee.
The Audit Committee financial expert is Prema Mathai-Davis. Dr.
Mathai-Davis is "independent" within the meaning of that term as used
in Form N-CSR.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
FEES BILLED BY E&Y RELATED TO THE REGISTRANT
E&Y billed the Registrant aggregate fees for services rendered to the
Registrant for the last two fiscal years as follows:
<Table>
<Caption>
Percentage of Fees
Billed Applicable Percentage of Fees
to Non-Audit Billed Applicable to
Services Provided Non-Audit Services
for fiscal year end Provided for fiscal
Fees Billed for 2005 Pursuant to Fees Billed for year end 2004
Services Rendered Waiver of Services Rendered to Pursuant to Waiver
to the Registrant for Pre-Approval the Registrant for of Pre-Approval
fiscal year end 2005 Requirement(1) fiscal year end 2004 Requirement(1)(2)
---------------------- ---------------------- ---------------------- ----------------------
Audit Fees $ 46,790 N/A $ 29,624 N/A
Audit-Related Fees $ 0 0% $ 0 0%
Tax Fees(3) $ 2,612 0% $ 2,716 0%
All Other Fees(4) $ 980 0% $ 0 0%
---------------------- ----------------------
Total Fees $ 50,382 0% $ 32,340 0%
</Table>
E&Y billed the Registrant aggregate non-audit fees of $3,592 for the fiscal year
ended 2005, and $2,716 for the fiscal year ended 2004, for non-audit services
rendered to the Registrant.
(1) With respect to the provision of non-audit services, the pre-approval
requirement is waived pursuant to a de minimis exception if (i) such
services were not recognized as non-audit services by the Registrant at
the time of engagement, (ii) the aggregate amount of all such services
provided is no more than 5% of the aggregate audit and non-audit fees
paid by the Registrant to E&Y during a fiscal year; and (iii) such
services are promptly approved by the Registrant's Audit Committee
prior to the completion of the audit by the Audit Committee.
(2) Prior to May 6, 2003, the Registrant's Audit Committee was not required
to pre-approve non-audit services. Therefore, the percentage of fees
shown in this column only represents fees billed for non-audit services
rendered after May 6, 2003, pursuant to a waiver of the pre-approval
requirement.
(3) Tax Fees for the fiscal year end March 31, 2005 includes fees billed
for reviewing tax returns. Tax fees for fiscal year end March 31, 2004
includes fees billed for reviewing tax returns and consultation
services.
(4) All Other Fees for the fiscal year ended March 31, 2005 includes fees
billed for access to an accounting and regulatory research tool.
FEES BILLED BY E&Y RELATED TO AIM AND AIM AFFILIATES
E&Y billed AIM Advisors, Inc. ("AIM"), the Registrant's adviser, and
any entity controlling, controlled by or under common control with AIM that
provides ongoing services to the Registrant ("AIM Affiliates") aggregate fees
for pre-approved non-audit services rendered to AIM and AIM Affiliates for the
last two fiscal years as follows:
<Table>
<Caption>
Fees Billed for Fees Billed for
Non-Audit Services Percentage of Fees Non-Audit Services Percentage of Fees
Rendered to AIM and Billed Applicable to Rendered to AIM and Billed Applicable to
AIM Affiliates for Non-Audit Services AIM Affiliates for Non-Audit Services
fiscal year end 2005 Provided for fiscal fiscal year end 2004 Provided for fiscal
That Were Required year end 2005 That Were Required year end 2004
to be Pre-Approved Pursuant to Waiver to be Pre-Approved Pursuant to Waiver of
by the Registrant's of Pre-Approval by the Registrant's Pre-Approval
Audit Committee Requirement(1) Audit Committee(2) Requirement(1)(3)
-------------------- -------------------- -------------------- --------------------
Audit-Related Fees(4) $ 220,115 0% $ 196,777 0%
Tax Fees $ 0 0% $ 0 0%
All Other Fees $ 0 0% $ 0 0%
-------------------- --------------------
Total Fees(5) $ 220,115 0% $ 196,777 0%
</Table>
(1) With respect to the provision of non-audit services, the pre-approval
requirement is waived pursuant to a de minimis exception if (i) such
services were not recognized as non-audit services by the Registrant at
the time of engagement, (ii) the aggregate amount of all such services
provided is no more than 5% of the aggregate audit and non-audit fees
paid by the Registrant, AIM and AIM Affiliates to E&Y during a fiscal
year; and (iii) such services are promptly approved by the Registrant's
Audit Committee prior to the completion of the audit by the Audit
Committee.
(2) Prior to May 6, 2003, the Registrant's Audit Committee was not required
to pre-approve non-audit services. Therefore, the fees billed for
non-audit services shown in this column only represents fees for
pre-approved non-audit services rendered after May 6, 2003, to AIM and
AIM Affiliates.
(3) Prior to May 6, 2003, the Registrant's Audit Committee was not required
to pre-approve non-audit services. Therefore, the percentage of fees
shown in this column only represents fees billed for non-audit services
rendered after May 6, 2003, pursuant to a waiver of the pre-approval
requirement.
(4) Audit-Related Fees for the fiscal year ended March 31, 2005 includes
fees billed for services to test and report on the controls and
operations of an affiliated transfer agent. Audit-Related Fees for the
fiscal year ended March 31, 2004 includes fees billed for services to
test and report on the controls and operations of an affiliated
transfer agent.
(5) Including the fees for services not required to be pre-approved by the
registrant's audit committee, E&Y billed AIM and AIM Affiliates
aggregate non-audit fees of $302,621 for the fiscal year ended 2005,
and $220,095 for the fiscal year ended 2004, for non-audit services
rendered to AIM and AIM Affiliates.
The Audit Committee also has considered whether the provision of
non-audit services that were rendered to AIM and AIM Affiliates that
were not required to be pre-approved pursuant to SEC regulations, if
any, is compatible with maintaining E&Y's independence. To the extent
that such services were provided, the Audit Committee determined that
the provision of such services is compatible with E&Y maintaining
independence with respect to the Registrant.
PRE-APPROVAL OF AUDIT AND NON-AUDIT SERVICES
POLICIES AND PROCEDURES
As adopted by the Audit Committees of
the AIM Funds and the INVESCO Funds (the "Funds")
Last Amended September 14, 2004
STATEMENT OF PRINCIPLES
Under the Sarbanes-Oxley Act of 2002 and rules adopted by the Securities and
Exchange Commission ("SEC") ("Rules"), the Audit Committees of the Funds' (the
"Audit Committee") Board of Directors/Trustees (the "Board") are responsible for
the appointment, compensation and oversight of the work of independent
accountants (an "Auditor"). As part of this responsibility and to assure that
the Auditor's independence is not impaired, the Audit Committees pre-approve the
audit and non-audit services provided to the Funds by each Auditor, as well as
all non-audit services provided by the Auditor to the Funds' investment adviser
and to affiliates of the adviser that provide ongoing services to the Funds
("Service Affiliates") if the services directly impact the Funds' operations or
financial reporting. The SEC Rules also specify the types of services that an
Auditor may not provide to its audit client. The following policies and
procedures comply with the requirements for pre-approval and provide a mechanism
by which management of the Funds may request and secure pre-approval of audit
and non-audit services in an orderly manner with minimal disruption to normal
business operations.
Proposed services either may be pre-approved without consideration of specific
case-by-case services by the Audit Committees ("general pre-approval") or
require the specific pre-approval of the Audit Committees ("specific
pre-approval"). As set forth in these policies and procedures, unless a type of
service has received general pre-approval, it will require specific pre-approval
by the Audit Committees. Additionally, any fees exceeding 110% of general
pre-approved fee levels will also require specific pre-approval by the Audit
Committees.
The Audit Committees will annually review and generally pre-approve the services
that may be provided by each Auditor without obtaining specific pre-approval
from the Audit Committee. The term of any general pre-approval runs from the
date of such pre-approval through September 30th of the following year, unless
the Audit Committees consider a different period and states otherwise. The Audit
Committees will add to or subtract from the list of general pre-approved
services from time to time, based on subsequent determinations.
The purpose of these policies and procedures is to set forth the guidelines to
assist the Audit Committees in fulfilling their responsibilities.
DELEGATION
The Audit Committees may from time to time delegate pre-approval authority to
one or more of its members who are Independent Directors. All decisions to
pre-approve a service by a delegated member shall be reported to the Audit
Committee at its next quarterly meeting.
AUDIT SERVICES
The annual audit services engagement terms (including fees) will be subject to
specific pre-approval of the Audit Committees. Audit services include the annual
financial statement audit and other procedures such as tax provision work that
is required to be performed by the independent auditor to be able to form an
opinion on the Funds' financial statements. The Audit Committee will obtain,
review and consider sufficient information concerning the proposed Auditor to
make a reasonable evaluation of the Auditor's qualifications and independence.
In addition to the annual Audit services engagement, the Audit Committees may
grant general pre-approval for other audit services, which are those services
that only the independent auditor reasonably can provide. Other Audit services
may include services such as issuing consents for the inclusion of audited
financial
statements with SEC registration statements, periodic reports and other
documents filed with the SEC or other documents issued in connection with
securities offerings.
GENERAL PRE-APPROVAL OF NON-AUDIT SERVICES
The Audit Committees may provide general pre-approval of types of non-audit
services described in this Section IV to the Funds and its Service Affiliates if
the Audit Committees believe that the provision of the service will not impair
the independence of the Auditor, is consistent with the SEC's Rules on auditor
independence, and otherwise conforms to the Audit Committee's general principles
and policies as set forth herein.
AUDIT-RELATED SERVICES
"Audit-related services" are assurance and related services that are reasonably
related to the performance of the audit or review of the Fund's financial
statements or that are traditionally performed by the independent auditor.
Audit-related services include, among others, accounting consultations related
to accounting, financial reporting or disclosure matters not classified as
"Audit services"; assistance with understanding and implementing new accounting
and financial reporting guidance from rulemaking authorities; and agreed-upon
procedures related to mergers.
TAX SERVICES
"Tax services" include, but are not limited to, the review and signing of the
Funds' federal tax returns, the review of required distributions by the Funds
and consultations regarding tax matters such as the tax treatment of new
investments or the impact of new regulations. The Audit Committee will
scrutinize carefully the retention of the Auditor in connection with a
transaction initially recommended by the Auditor, the major business purpose of
which may be tax avoidance or the tax treatment of which may not be supported in
the Internal Revenue Code and related regulations. The Audit Committee will
consult with the Funds' Treasurer (or his or her designee) and may consult with
outside counsel or advisors as necessary to ensure the consistency of Tax
services rendered by the Auditor with the foregoing policy.
No Auditor shall represent any Fund or any Service Provider before a tax court,
district court or federal court of claims.
ALL OTHER SERVICES
The Audit Committees may pre-approve non-audit services classified as "All other
services" that are not categorically prohibited by the SEC, as listed in Exhibit
1 to this policy.
SPECIFIC PRE-APPROVAL OF NON-AUDIT SERVICES
The Audit Committees may provide specific pre-approval of any non-audit services
to the Funds and its Service Affiliates if the Audit Committees believe that the
provision of the service will not impair the independence of the auditor, is
consistent with the SEC Rules on auditor independence, and otherwise conforms to
the Audit Committees' general principles and policies as set forth herein.
PRE-APPROVAL FEE LEVELS OR ESTABLISHED AMOUNTS
Pre-approval of fees or established amounts for services to be provided by the
Auditor under general pre-approval policies will be set periodically by the
Audit Committees. Any proposed fees exceeding 110% of the maximum such amounts
will be reported to the Audit Committees at the quarterly Audit Committees
meeting and will require specific pre-approval by the Audit Committees. The
Audit Committee will always factor in the overall relationship of fees for audit
and non-audit services in determining whether to pre-approve any such services.
PROCEDURES
On an annual basis, A I M Advisors, Inc. ("AIM") will submit to the Audit
Committees for general pre-approval, a list of non-audit services that the Funds
or Service Affiliates of the Funds may request from the
Auditor. The list will describe the non-audit services in reasonable detail and
will include an estimated range of fees and such other information as the Audit
Committee may request.
Each request for services to be provided by the Auditor under the general
pre-approval of the Audit Committees will be submitted to the Funds' Treasurer
(or his or her designee) and must include a detailed description of the services
to be rendered. The Treasurer or his or her designee will ensure that such
services are included within the list of services that have received the general
pre-approval of the Audit Committees. The Audit Committees will be informed at
the next quarterly scheduled Audit Committees meeting of any such services for
which the Auditor rendered an invoice and whether such services and fees had
been pre-approved and if so, by what means.
Each request to provide services that require specific approval by the Audit
Committees shall be submitted to the Audit Committees jointly by the Fund's
Treasurer or his or her designee and the Auditor, and must include a joint
statement that, in their view, such request is consistent with the policies and
procedures and the SEC Rules.
Non-audit services pursuant to the de minimis exception provided by the SEC
Rules will be promptly brought to the attention of the Audit Committees for
approval, including documentation that each of the conditions for this
exception, as set forth in the SEC Rules, has been satisfied.
On at least an annual basis, the Auditor will prepare a summary of all the
services provided to any entity in the investment company complex as defined in
section 2-01(f)(14) of Regulation S-X in sufficient detail as to the nature of
the engagement and the fees associated with those services.
The Audit Committees have designated the Funds' Treasurer to monitor the
performance of all services provided by the Auditor and to ensure such services
are in compliance with these policies and procedures. The Funds' Treasurer will
report to the Audit Committee on a periodic basis as to the results of such
monitoring. Both the Funds' Treasurer and management of AIM will immediately
report to the chairman of the Audit Committee any breach of these policies and
procedures that comes to the attention of the Funds' Treasurer or senior
management of AIM.
EXHIBIT 1 TO PRE-APPROVAL OF AUDIT AND NON-AUDIT SERVICES POLICIES AND
PROCEDURES
Conditionally Prohibited Non-Audit Services (not prohibited if the Fund can
reasonably conclude that the results of the service would not be subject to
audit procedures in connection with the audit of the Fund's financial
statements)
o Bookkeeping or other services related to the accounting
records or financial statements of the audit client
o Financial information systems design and implementation
Appraisal or valuation services, fairness opinions, or
contribution-in-kind reports
o Actuarial services
o Internal audit outsourcing services
Categorically Prohibited Non-Audit Services
o Management functions
o Human resources
o Broker-dealer, investment adviser, or investment banking
services
o Legal services
o Expert services unrelated to the audit
o Any other service that the Public Company Oversight Board
determines by regulation is impermissible
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable.
ITEM 6. SCHEDULE OF INVESTMENTS.
Investments in securities of unaffiliated issuers is included as part
of the reports to stockholders filed under Item 1 of this Form.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT COMPANIES.
Not applicable.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
None
ITEM 11. CONTROLS AND PROCEDURES.
(a) As of March 16, 2005, an evaluation was performed under the
supervision and with the participation of the officers of the
Registrant, including the PEO and PFO, to assess the effectiveness of
the Registrant's disclosure controls and procedures, as that term is
defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the
"Act"), as amended. Based on that evaluation, the Registrant's
officers, including the PEO and PFO, concluded that, as of March 16,
2005, the Registrant's disclosure controls and procedures were
reasonably designed to ensure: (1) that information required to be
disclosed by the Registrant on Form N-CSR is recorded, processed,
summarized and reported within the time periods specified by the rules
and forms of the Securities and Exchange Commission; and (2) that
material information relating to the Registrant is made known to the
PEO and PFO as appropriate to allow timely decisions regarding
required disclosure.
(b) There have been no changes in the Registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the Act) that
occurred during the second fiscal quarter of the period covered by the
report that have materially affected, or are reasonably likely to
materially affect, the Registrant's internal control over financial
reporting.
ITEM 12. EXHIBITS.
12(a)(1) Code of Ethics.
12(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.
12(a)(3) Not applicable.
12(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
By: /s/ ROBERT H. GRAHAM
---------------------------------
Robert H. Graham
Principal Executive Officer
Date: June 6, 2005
Pursuant to the requirements of the Securities and Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the Registrant and in the capacities and on the
dates indicated.
By: /s/ ROBERT H. GRAHAM
---------------------------------
Robert H. Graham
Principal Executive Officer
Date: June 6, 2005
By: /s/ SIDNEY M. DILGREN
---------------------------------
Sidney M. Dilgren
Principal Financial Officer
Date: June 6, 2005
EXHIBIT INDEX
12(a)(1) Code of Ethics.
12(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.
12(a)(3) Not applicable.
12(b) Certifications of principal executive officer and principal financial
officer as required by Rule 30a-2(b) under the Investment Company Act
of 1940.