------------------------------------------------------
COLONIAL HIGH INCOME MUNICIPAL TRUST SEMIANNUAL REPORT
------------------------------------------------------
May 31, 2001
[graphic omitted]
President's Message
Dear Shareholder:
Toward the end of 2000, it became apparent that the US economy was not going
to experience the "soft landing" the Federal Reserve Board (the Fed) had
intended. In hopes of re-stimulating the sagging economy, the Fed began reducing
short-term interest rates just after the first of the year. We saw five rate
cuts during the six-month period ended May 31, 2001, bringing the short-term
interest rate down from 6.5% to 4.0%.
The aggressive rate cuts created some concern in the markets that the Fed was
providing too much economic stimulation, causing some fear that inflationary
pressures could surface. However, the weakness in the economy, and in corporate
profits, prompted investors to rotate some assets out of the stock market and
into the municipal bond market -- a shift which provided support for municipal
bond prices.
The following report will provide you with information about the fund's
performance and the strategies used by portfolio manager Maureen G. Newman and
associate portfolio manager Gary Lasman. As always, we thank you for choosing
Colonial High Income Municipal Trust and for giving us the opportunity to serve
your investment needs.
Respectfully,
/s/ Stephen E. Gibson
Stephen E. Gibson
President
July 12, 2001
----------------------------
NOT FDIC MAY LOSE VALUE
INSURED NO BANK GUARANTEE
----------------------------
Because economic and market conditions change, there can be no
assurance that the trends described in this report will continue or come to
pass.
--------------------------------------------------------------------------------
PORTFOLIO MANAGERS' REPORT
--------------------------------------------------------------------------------
As economic growth slowed and the stock market weakened, investors looked to
diversify their portfolios by investing in municipal bonds. The Colonial High
Income Municipal Trust benefited from this increased demand for municipal bonds,
returning 5.46% at NAV for the six-month period ended May 31, 2001. This
performance exceeded that of the fund's benchmark, the Lehman Municipal Bond
Index, which returned 4.73% for the same period. A strong income stream also
helped to boost total return during the period.
The fund is leveraged through the use of preferred shares, which pay interest
rates comparable to those of short-term securities. Approximately one-third of
the fund's assets were raised through the issuance of preferred shares, and that
money was invested in long-term municipal bonds which typically pay higher
yields. While the issuance of preferred shares provides the possibility of
higher tax-exempt income, it also adds price volatility to the portfolio.
During the first half of 2001, the Fed aggressively cut interest rates. We feel
the bond market probably overreacted to concerns about inflation stemming from
these cuts, and that the recent drop in bond prices has created some good
opportunities in the bond market. While we do not expect to see inflation return
in the months to come, we also do not expect a strong economic rebound in the
second half of 2001. We anticipate further rate cuts from the Fed, although not
on such an aggressive schedule, and we have positioned the fund to take
advantage of lower long-term interest rates.
/s/ Maureen G. Newman /s/ Gary A. Lasman
MAUREEN G. NEWMAN is portfolio manager of Colonial High Income Municipal Trust
and a senior vice president of Colonial Management Associates, Inc. (CMA).
GARY A. LASMAN is associate portfolio manager of Colonial High Income Municipal
Trust and a vice president of CMA.
Tax-exempt investing offers current tax-free income but also involves certain
risks. The value of the fund will be affected by interest rate changes and the
creditworthiness of issues held in the fund. The municipal bond management team
identifies problems and opportunities and reacts quickly to market changes.
SIX-MONTH CUMULATIVE TOTAL RETURNS,
ASSUMING REINVESTMENT OF ALL DISTRIBUTIONS
FOR THE PERIOD ENDED 5/31/01 (%)
------------------------------
NAV 5.46
------------------------------
Market price 15.95
------------------------------
Distributions
declared per
common share,
12/1/00 - 5/31/01(1) $0.219
------------------------------
(1) portion of the trust's
income may be subject to
the alternative minimum
tax. The trust may at
times purchase tax-exempt
securities at a discount
from their original issue
price. Some or all of this
discount may be included
in the trust's ordinary
income, and any market
discount is taxable when
distributed.
PRICE PER SHARE AS OF 5/31/01 ($)
------------------------------
NAV 7.06
------------------------------
Market price 6.45
------------------------------
TOP FIVE INDUSTRY SECTORS AS OF 5/31/01 (%)
------------------------------
Hospitals 13.1
------------------------------
Airport 11.2
------------------------------
Local General Obligations 9.1
------------------------------
Nursing Home 8.6
------------------------------
Multi-Family 6.9
------------------------------
Sector breakdowns are calculated
as a percentage of net assets.
QUALITY BREAKDOWN AS OF 5/31/01 (%)
------------------------------
AAA 31.7
------------------------------
AA 8.2
------------------------------
A 9.2
------------------------------
BBB 12.4
------------------------------
BB 2.2
------------------------------
CCC 0.2
------------------------------
D 0.1
------------------------------
Non-rated 34.1
------------------------------
Cash equivalents 1.9
------------------------------
Quality breakdowns are calculated as a percentage of total investments,
including short-term obligations. Ratings shown in the quality breakdown
represent the highest rating assigned to a particular bond by one of the
following nationally-recognized rating agencies: Standard & Poor's Corporation,
Moody's Investors Service, Inc. or Fitch Investors Service, Inc.
Because the trust is actively managed, there can be no guarantee the trust will
continue to maintain these quality breakdowns or invest in these sectors in the
future.
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INVESTMENT PORTFOLIO
-------------------------------------------------------------------------------------------------------
May 31, 2001 (Unaudited)
MUNICIPAL BONDS - 96.2% PAR VALUE
-------------------------------------------------------------------------------------------------------
EDUCATION - 2.1%
EDUCATION - 2.1%
CA Loyola Marymount University,
(a) 10/01/19 $ 2,025,000 $ 751,563
CA Statewide Communities Development Authority, Crossroads
School for Arts & Sciences,
Series 1998,
6.000% 08/01/28 1,350,000 1,365,039
IL State Development Finance Authority, Latin School of
Chicago, Series 1998,
5.650% 08/01/28 230,000 215,117
MA State Industrial Finance Agency:
Cambridge Friends School,
Series 1998,
5.800% 09/01/28 1,000,000 938,250
St. John's High School, Series 1998,
5.350% 06/01/28 300,000 271,311
MI Southfield Economic Development Corp., Lawrence University,
Series 1998 A,
5.400% 02/01/18 1,000,000 927,700
MN Victoria, Holy Family Catholic High School, Series 1999 A,
5.875% 09/01/29 1,000,000 936,250
VT State Educational & Health Buildings Finance Agency,
Norwich University, Series 1998,
5.500% 07/01/21 1,500,000 1,446,945
WV State University, Series 2000 A,
(a) 04/01/19 1,000,000 374,760
-------------
7,226,935
-------------
-------------------------------------------------------------------------------------------------------
HEALTHCARE - 25.8%
CONGREGATE CARE RETIREMENT - 2.9%
CA Statewide Community Development Authority, Eskaton
Village - Grass Valley, Series 2000,
8.250% 11/15/31 1,000,000 997,940
KS Manhattan, Meadowlark Hills Retirement Home, Series 1999 A,
6.375% 05/15/20 650,000 621,563
KY State Economic Development Finance Authority, Christian
Church Homes of Kentucky, Inc., Series 1998,
5.500% 11/15/30 320,000 257,443
MA Boston Industrial Development Financing Authority,
Springhouse, Inc., Series 1988,
5.875% 07/01/20 605,000 490,050
MA State Development Finance Agency, Series 1999 A:
5.625% 07/01/15 500,000 427,425
5.750% 07/01/23 250,000 204,510
MN Columbia Heights, Crest View Corp., Series 1998,
6.000% 03/01/33 740,000 616,050
NH State Higher Educational & Health Facilities Authority,
Rivermead at Peterborough, Series 1998:
5.625% 07/01/18 500,000 408,750
5.750% 07/01/28 500,000 394,375
NJ Economic Development Authority, Seabrook Village, Inc.,
Series 2000 A,
8.250% 11/15/30 625,000 624,219
PA Lancaster Industrial Development Authority, Garden Spot
Village, Series 2000 A,
7.625% 05/01/31 500,000 503,750
PA Philadelphia Authority for Industrial Development,
Baptist Home of Philadelphia, Series 1998 A:
5.500% 11/15/18 360,000 286,200
5.600% 11/15/28 500,000 378,750
TN Metropolitan Government, Nashville & Davidson Counties,
Blakeford at Green Hills, Series 1998,
5.650% 07/01/24 600,000 461,250
TX Abilene Health Facilities Development Corp., Sears
Methodist Retirement Obligation Group:
Series 1998 A,
5.900% 11/15/25 1,000,000 796,250
Series 1999,
6.000% 11/15/29 500,000 396,875
WI State Health & Educational Facilities Authority:
Attic Angel Obligated Group,
5.750% 11/15/27 1,000,000 772,500
Clement Manor, Series 1998,
5.750% 08/15/24 600,000 483,000
United Lutheran Program for Aging, Inc.,
5.700% 03/01/28 1,000,000 787,500
-------------
9,908,400
-------------
HEALTH SERVICES - 0.2%
IL State Health Facilities Authority, Midwest Physician
Group, Ltd., Series 1998,
5.500% 11/15/19 120,000 95,509
MA State Development Finance Agency, Boston Biomedical
Research Institute, Series 1999:
5.650% 02/01/19 200,000 185,942
5.750% 02/01/29 450,000 411,435
-------------
692,886
-------------
HOSPITALS - 13.1%
AR Conway Health Facilities Board, Conway Regional Medical
Center:
Series 1999 A,
6.400% 08/01/29 425,000 431,677
Series 1999 B,
6.400% 08/01/29 1,000,000 1,015,710
AZ Maricopa County Industrial Development Authority:
Mayo Clinic Hospital, Series 1998,
5.250% 11/15/37 6,000,000 5,867,340
National Health Facilities II Project,
5.100% 01/01/33 4,500,000 4,331,835
CA State Health Facilities Financing Authority, Cedars-
Sinai Medical Center, Series 1999 A,
6.125% 12/01/30 750,000 781,508
CO State Health Care Facilities Authority, National Jewish
Medical & Research Center, Series 1998,
5.375% 01/01/23 330,000 276,177
CO State Health Facilities Authority, Parkview Medical
Center, Inc., Series 2001,
6.600% 09/01/25 300,000 298,875
FL Tampa, H. Lee Moffitt Cancer Center, Series 1999 A,
5.750% 07/01/29 2,000,000 1,921,920
GA Forsyth County Hospital Authority, Georgia Baptist
Heathcare System, Series 1998,
6.000% 10/01/08 1,000,000 980,000
IL Health Facilities Authority, Thorek Hospital & Medical
Center,
5.250% 08/15/18 600,000 497,424
IL Southwestern Illinois Development Authority, Anderson
Hospital, Series 1999,
5.500% 08/15/20 225,000 193,869
IL State Health Facilities Authority, Swedish American Hospital,
Series 2000,
6.875% 11/15/30 500,000 524,965
LA State Public Facilities Authority, Touro Infirmary, Series 1999,
5.625% 08/15/29 1,100,000 1,046,980
MI Dickinson County Healthcare System, Series 1999,
5.700% 11/01/18 750,000 647,280
MI Flint Hospital Building Authority, Hurley Medical Center,
Series 1998 A,
5.375% 07/01/20 625,000 508,169
MI State Hospital Finance Authority, Detroit Medical Center,
Series 1998 A,
5.250% 08/15/28 650,000 490,887
MN St. Paul Housing & Redevelopment Authority, Healtheast
Project, Series A,
5.700% 11/01/15 1,000,000 761,250
MN Washington County Housing & Redevelopment Authority,
Healtheast, Inc., Series 1998,
5.250% 11/15/12 1,500,000 1,211,250
MS State Business Finance Corp., Rush Medical Foundation,
Inc., Series 1998,
5.625% 07/01/23 1,450,000 1,153,461
NC Medical Care Commission:
Gaston Health Care, Series 1998,
5.000% 02/15/29 5,000,000 4,370,750
Stanley Memorial Hospital, Series 1999,
6.375% 10/01/29 1,915,000 1,987,023
NH State Higher Educational & Health Facilities Authority,
Littleton Hospital Association, Inc., Series 1998 A:
5.900% 05/01/28 780,000 584,025
6.000% 05/01/28 625,000 475,000
NY Yonkers Industrial Development Agency, St. Johns
Riverside Hospital, Series 2001 A,
7.125% 07/01/31 1,000,000 1,010,980
OH Belmont County, East Ohio Regional Hospital, Series 1998,
5.700% 01/01/13 1,875,000 1,619,531
OH Highland County Joint Township Hospital District,
Series 1999,
6.750% 12/01/29 990,000 866,250
OH Miami County, Upper Valley Medical Center, Inc., Series
1996 A,
6.375% 05/15/26 1,000,000 958,480
OH Sandusky County, Memorial Hospital, Series 1998,
5.150% 01/01/10 250,000 235,285
PA Allegheny County Hospital Development, Ohio Valley
General Hospital, Series 1998 A,
5.450% 01/01/28 1,000,000 816,120
PA Pottsville Hospital Authority, Pottsville Hospital &
Warne Clinic, Series 1998,
5.500% 07/01/18 1,000,000 825,800
TX Lufkin Health Facilities Development Corp., Memorial
Health Systems of East Texas, Series 1998,
5.700% 02/15/28 1,120,000 851,334
TX Richardson Hospital Authority, Baylor Richardson
Medical Center, Series 1998,
5.625% 12/01/28 1,200,000 1,028,256
UT Weber County, IHC Health Services, Inc., Series 1999,
5.000% 08/15/30 2,500,000 2,325,975
VT State Educational & Health Buildings Authority:
Brattleboro Memorial Hospital,
5.375% 03/01/28 1,075,000 861,666
Springfield Hospital, Series A,
7.750% 01/01/13 910,000 959,795
WA State Health Care Facilities Authority, Kadlec Medical
Center, Series 2001,
5.875% 12/01/21 600,000 603,684
WV Hospital Finance Authority, Charleston Medical Center,
Series 2000 A,
6.750% 09/01/30 1,000,000 1,056,680
-------------
44,377,211
-------------
INTERMEDIATE CARE FACILITIES - 1.0%
IL State Development Finance Authority, Hoosier Care, Inc.,
Series 1999 A,
7.125% 06/01/34 1,225,000 1,076,469
IN State Health Facilities Financing Authority, Hoosier
Care, Inc.,
Series 1999 A,
7.125% 06/01/34 150,000 131,813
PA State Economic Development Financing Authority,
Northwestern Human Services, Inc., Series 1998 A,
5.250% 06/01/14 2,510,000 2,144,594
-------------
3,352,876
-------------
NURSING HOMES - 8.6%
AK Juneau, St. Ann's Care Center, Series 1999,
6.875% 12/01/25 700,000 653,625
CO Healthcare Facilities Authority:
American Housing Foundation, Inc., Series 1990 A,
10.250% 12/01/20 (b) 1,300,000 520,000
Pioneer Healthcare, Series 1989,
10.500% 05/01/19 1,925,000 1,903,344
CO State Health Facilities Authority, Volunteers of
America Care Facilities, Inc., Series 1998 A:
5.450% 07/01/08 300,000 277,125
5.750% 07/01/20 865,000 704,975
Series 1999 A,
6.000% 07/01/29 350,000 281,750
FL Gadsden County Industrial Development Authority,
Florida Properties, Inc., Series 1988 A,
10.450% 10/01/18 (b) 1,805,000 1,353,750
IA State Finance Authority, Care Initiatives Project:
Series 1996,
9.250% 07/01/25 1,000,000 1,210,000
Series 1998 B:
5.750% 07/01/18 550,000 466,813
5.750% 07/01/28 1,475,000 1,183,688
IN Gary Industrial Economic Development West Side Health
Care Center, Series 1987 A,
11.500% 10/01/17 1,395,000 1,407,597
IN Michigan City Health Facilities, Metropolitan Health
Foundation Inc. Project,
10.000% 11/01/22 (b) 3,085,000 1,264,850
IN State Health Facilities Financing Authority, Metro
Health Indiana, Inc., Series 1998,
6.400% 12/01/33 1,210,000 851,538
KS Washington County Industrial Development Authority,
Central States, Series 1989,
10.250% 11/01/19 1,750,000 1,487,500
MA State Development Finance Agency, Alliance Health Care
Facilities, Series 1999,
7.100% 07/01/32 1,500,000 1,361,250
MA State Industrial Finance Agency, Woodlawn Nursing Home:
7.750% 01/01/28 1,598,135 1,392,375
10.250% 07/01/27 336,372 312,826
MN Carlton, Inter-Faith Social Services, Inc., Series 2000,
7.750% 04/01/29 750,000 754,688
MN Minneapolis, Walker Methodist Senior Services Group,
Series 1998 A,
6.000% 11/15/28 700,000 593,250
MN New Hope, North Ridge Care Center, Inc., Series 1999,
5.875% 03/01/29 800,000 661,000
MN Sartell, Foundation for Healthcare, Series 1999 A,
6.625% 09/01/29 1,145,000 1,010,463
NJ State Economic Development Authority, Geriatric &
Medical Service, Inc., Series B,
10.500% 05/01/20 2,000,000 1,982,500
PA Chester County Industrial Development, Pennsylvania
Nursing Home, Inc., Series 1989,
10.125% 05/01/19 (b) 2,548,000 1,401,400
TN Metropolitan Government, Nashville & Davidson Counties
Health & Education Facilities, Central States, Series 1989,
10.250% 11/01/19 1,650,000 1,402,500
TX Kirbyville Health Facilities Development Corp.,
Heartway III Project:
Series 1997 A,
10.000% 03/20/18 708,644 641,323
Series 1997 B,
6.000% 03/20/04 106,000 5,300
TX Whitehouse Health Facilities Development Corp., Oak
Brook Healthcare Center, Series 1989,
10.000% 12/01/19 1,690,000 1,727,552
WA Kitsap County Housing Authority, Martha & Mary Nursing
Home,
7.100% 02/20/36 1,000,000 1,152,190
WI State Health & Educational Facilities Authority, Metro
Health Foundation, Inc., Series 1993,
10.000% 11/01/22 (b) 2,775,000 1,137,750
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29,102,922
-------------
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HOUSING - 11.5%
ASSISTED LIVING/SENIOR - 3.6%
CA Abag Finance Authority for Nonprofit Corps., Eskaton
Gold River Lodge, Series 1998:
6.375% 11/15/15 750,000 674,063
6.375% 11/15/28 550,000 466,125
DE Kent County, Heritage at Dover, Series 1999,
7.625% 01/01/30 1,750,000 1,564,063
GA Columbus Housing Authority, The Gardens at Calvary, Series 1999,
7.000% 11/15/19 500,000 443,750
IL Clarendon Hills Residential Facilities, Churchill Estate,
Series 1998 A:
6.750% 03/01/24 (b) 1,050,000 787,500
6.750% 03/01/31 (b) 1,370,000 1,027,500
IL State Development Finance Authority, Care Institute, Inc.,
8.250% 06/01/25 1,285,000 1,317,125
MN Roseville, Care Institute, Inc., Series 1993,
7.750% 11/01/23 1,740,000 1,468,125
NC State Medical Care Commission, DePaul Community
Facilities Project, Series 1999,
7.625% 11/01/29 1,500,000 1,453,125
NY Huntington Housing Authority, Gurwin Jewish Senior Center,
Series 1999:
5.875% 05/01/19 700,000 602,875
6.000% 05/01/29 775,000 652,938
TX Bell County Health Facilities Development Corp., Care
Institute, Inc.,
9.000% 11/01/24 1,775,000 1,881,500
-------------
12,338,689
-------------
MULTI-FAMILY - 6.9%
DE Wilmington, Electra Arms Senior Association Project,
6.250% 06/01/28 970,000 784,488
FL Broward County Housing Finance Authority, Chaves Lake
Apartment Project, Series 2000,
7.500% 07/01/40 750,000 762,188
FL Clay County Housing Finance Authority, Madison Commons
Apartments, Series 2000 A,
7.450% 07/01/40 750,000 762,188
GA Clayton County Housing Authority, Magnolia Park Apartments,
Series 1999 A,
6.250% 06/01/30 955,000 861,162
MN Lakeville, Southfork Apartments Project:
Series 1989 B,
(a) 02/01/20 921,000 1,017,314
Series 1989 A,
9.875% 02/01/20 2,570,000 2,603,204
MN Robbinsdale Economic Development Authority, Broadway
Court, Series 1999 A,
6.875% 01/01/26 500,000 465,625
MN Washington County Housing & Redevelopment Authority,
Cottages of Aspen, Series 1992,
9.250% 06/01/22 1,030,000 1,072,488
MN White Bear Lake, Birch Lake Townhome Project:
Series 1989 A,
10.250% 07/15/19 (c) 2,200,000 2,277,000
Series 1989 B,
(a) 07/15/19 (c) 720,000 291,060
NC Eastern Carolina Regional Housing Authority, New River
Apartments-Jacksonville, Series 1994,
8.250% 09/01/14 1,690,000 1,690,000
NY Nyack Housing Assistance Corp., Nyack Plaza Apartments,
7.375% 06/01/21 341,735 342,412
Resolution Trust Corp., Pass Through Certificates, Series
1993 A,
8.750% 12/01/16 (d) 4,154,935 4,174,089
TN Franklin Industrial Board, Landings Apartment Project,
Series 1996 B,
8.750% 04/01/27 905,000 954,775
TX El Paso County Housing Finance Corp., American Village
Communities:
Series 2000 C,
8.000% 12/01/32 400,000 399,000
Series 2000 D,
10.000% 12/01/32 425,000 423,938
TX Galveston Health Facilities Center,
8.000% 08/01/23 (d) 1,000,000 1,028,750
TX State Department of Housing & Community Affairs, Pebble
Brooks Apartments, Series 1998,
5.500% 12/01/18 1,000,000 1,000,730
VA Alexandria Redevelopment & Housing Authority,
Courthouse Commons Apartments,
Series 1990 A,
10.000% 01/01/21 1,500,000 1,350,000
WA Vancouver Housing Authority, Series I,
5.500% 03/01/28 1,000,000 959,380
-------------
23,219,791
-------------
SINGLE FAMILY - 1.0%
LA Louisiana Housing Finance Agency, Residual Lien
Mortgage, Series 1992,
7.375% 09/01/13 100,000 101,857
OH State Housing Finance Agency, Series B 4, IFRN
(variable rate)
9.970% 03/31/31 475,000 496,375
TX Bexar County Housing Finance Corp., GNMA Collateralized
Mortgage, Series 1989 A,
8.200% 04/01/22 1,635,000 1,653,835
WA State Housing Finance Commission, Series 1992,
6.150% 01/01/26 980,000 1,058,028
-------------
3,310,095
-------------
-------------------------------------------------------------------------------------------------------
INDUSTRIAL - 3.2%
FOOD PRODUCTS - 1.1%
IN Hammond, American Maize Products Co., Series 1994,
8.000% 12/01/24 2,000,000 2,052,980
LA Southern Louisiana Port Commission, Cargill, Inc. Project,
5.850% 04/01/17 1,000,000 1,032,470
MI State Strategic Fund, Michigan Sugar Co., Sebewang Project,
Series 1998 A,
6.250% 11/01/15 1,250,000 662,500
-------------
3,747,950
-------------
FOREST PRODUCTS - 0.5%
GA Rockdale County Development Authority, Solid Waste
Disposal, Visy Paper, Inc., Series 1993,
7.500% 01/01/26 1,800,000 1,811,250
-------------
MANUFACTURING - 1.1%
IL State Development Finance Authority, Armstrong World
Industries, Inc. Project,
5.950% 12/01/24 1,000,000 350,000
IL Will-Kankakee Regional Development Authority, Flanders
Corp./Precisionaire Project, Series 1997,
6.500% 12/15/17 920,000 864,800
MA State Industrial Finance Agency, House of Bianchi, Inc.,
8.750% 06/01/18 285,000 272,531
MN Brooklyn Park, TL Systems Corp., Series 1991,
10.000% 09/01/16 725,000 802,938
NV Henderson Public Improvement Trust, Integrated Coating
Technology Corp., Series 2000,
6.625% 11/01/10 (b) 271,540 5,431
TX Trinity River Authority, Texas Instruments Project,
Series 1996,
6.200% 03/01/20 1,000,000 1,035,340
WA Pilchuck Public Development Corp., Goodrich (B.F.) Co.
Tramco Project, Series 1993,
6.000% 08/01/23 420,000 409,563
-------------
3,740,603
-------------
METALS & MINING - 0.5%
MD Baltimore County, Bethlehem Steel Corp. Project, Series B,
7.500% 06/01/15 500,000 330,000
NV State Department of Business & Industry, Wheeling-
Pittsburgh Steel Corp., Series 1999 A,
8.000% 09/01/14 1,000,000 800,000
VA Greensville County Industrial Development Authority,
Wheeling-Pittsburgh Steel Corp.,
Series 1999 A:
6.375% 04/01/04 95,000 76,000
7.000% 04/01/14 500,000 389,375
-------------
1,595,375
-------------
OTHER - 6.9%
OTHER - 0.5%
MD Baltimore, Park Charles Project, Series 1986,
8.000% 01/01/15 695,000 709,991
SC Tobacco Settlement Revenue Management Authority,
Series 2001 B,
6.375% 05/15/28 975,000 984,760
-------------
1,694,751
-------------
POOL/BOND BANK - 0.2%
MI State Municipal Bond Authority, Local Government Loan
Project, Series 2001 A,
5.375% 11/01/17 750,000 764,648
-------------
REFUNDED/ESCROWED (E) - 6.2%
CA Colton Public Financing Authority, Series 1995,
7.500% 10/01/20 1,920,000 2,100,000
CA San Joaquin Hills Transportation Corridor Agency, Series 1993,
7.000% 01/01/30 775,000 836,845
CO Denver City and County Airport:
Series B,
7.250% 11/15/23 580,000 624,585
Series C,
6.125% 11/15/25 2,280,000 2,489,760
FL Clearwater Housing Authority, Hampton Apartments, Series 1994,
8.250% 05/01/24 2,430,000 2,767,163
ID State Health Facilities Authority, IHC Hospitals, Inc.,
6.650% 02/15/21 1,750,000 2,069,970
IL State Health Facilities Authority, Edgewater Medical
Center, Series A,
9.250% 07/01/24 1,950,000 2,276,430
MA State Health & Educational Facilities, Authority
Corporation for Independent Living,
8.100% 07/01/18 680,000 757,350
MN Mille Lacs Capital Improvement Authority, Mille Lacs
Band of Chippewa, Series 1992 A,
9.250% 11/01/12 940,000 1,036,350
NC Lincoln County, Lincoln County Hospital,
9.000% 05/01/07 340,000 394,825
PA Delaware County Authority, Southeastern Pennsyvania
Obligated Group, Series 1996:
6.000% 12/15/16 1,400,000 1,525,286
6.000% 12/15/26 1,000,000 1,039,870
PA Montgomery County Industrial Development Authority,
Assisted Living Facility, Series 1993 A,
8.250% 05/01/23 815,000 889,369
TN Shelby County, Health, Education, & Housing Facilities
Board, Open Arms Development Center, Series 1992 A,
9.750% 08/01/19 1,760,000 2,277,001
-------------
21,084,804
-------------
-------------------------------------------------------------------------------------------------------
OTHER REVENUE - 1.2%
HOTELS - 0.3%
PA Philadelphia Authority for Industrial Development,
Doubletree Project,
6.500% 10/01/27 1,000,000 998,750
-------------
RECREATION - 0.3%
NM Red River Sports Facility, Red River Ski Area Project,
Series 1998,
6.450% 06/01/07 945,000 926,100
-------------
RETAIL - 0.6%
NJ State Economic Development Authority, Glimcher
Properties L.P. Project,
6.000% 11/01/28 1,250,000 1,170,313
OH Lake County, North Madison Properties, Series 1993,
8.819% 09/01/11 765,000 765,000
-------------
1,935,313
-------------
-------------------------------------------------------------------------------------------------------
RESOURCE RECOVERY - 1.5%
DISPOSAL - 0.8%
CT State Development Authority, Sewer Sludge Disposal
Facilities, Series 1996,
8.250% 12/01/06 800,000 899,000
MA State Industrial Finance Agency:
Massachusetts Environmental Services, Series 1994 A,
8.750% 11/01/21 (b) 975,000 487,500
Peabody Monofill Associates, Inc., Series 1995,
9.000% 09/01/05 885,000 929,250
UT Carbon County, Laidlaw Environmental, Series A,
7.450% 07/01/17 500,000 491,250
-------------
2,807,000
-------------
RESOURCE RECOVERY - 0.7%
MA State Industrial Finance Agency, Ogden Hill Project,
Series 1998 A,
5.500% 12/01/13 500,000 486,360
PA Delaware County Industrial Development Authority,
Series A,
6.200% 07/01/19 2,000,000 1,965,000
-------------
2,451,360
-------------
TAX-BACKED - 18.6%
LOCAL GENERAL OBLIGATIONS - 9.1%
IL Chicago Board of Education, Series 1997 A,
5.250% 12/01/30 (f) 14,470,000 13,945,028
IL Cook County, Series 1997 A,
5.625% 11/15/22 4,200,000 4,294,794
NY New York City:
Series 1997 A,
7.000% 08/01/07 1,000,000 1,147,400
Series 1997 H,
6.000% 08/01/17 1,400,000 1,489,082
TX Irving Independent School District, Series 1997,
(a) 02/15/18 1,000,000 399,860
TX San Antonio Independent School District, Series 1997,
5.000% 08/15/27 10,435,000 9,756,934
-------------
31,033,098
-------------
SPECIAL NON-PROPERTY TAX - 1.8%
IL Metropolitan Pier & Exposition Authority, McCormick
Place Expansion Project, Series A,
(a) 06/15/16 10,000,000 4,461,100
OH Hamilton County, Series 2000 B,
(a) 12/01/21 5,000,000 1,627,750
-------------
6,088,850
-------------
SPECIAL PROPERTY TAX - 2.6%
CA Carson, Series 1992,
7.375% 09/02/22 185,000 193,094
CA Orange County Community Facilities District, Ladera
Ranch, Series 1999 A,
6.700% 08/15/29 500,000 528,750
CA Placer Unified High School District, Series 2000 A,
(a) 08/01/19 1,700,000 636,667
CA Riverside County Public Financing Authority,
Redevelopment Projects, Series A,
5.500% 10/01/22 650,000 628,563
FL Heritage Palms Community Development District:
Series 1999,
6.250% 11/01/04 1,240,000 1,249,300
Series 1999 B,
6.250% 05/01/05 1,030,000 1,037,725
FL Lexington Oaks Community Development District:
Series 1998 A,
6.125% 05/01/19 380,000 372,400
Series 1998 B,
5.500% 05/01/05 345,000 342,413
Series 2000 A,
7.200% 05/01/30 300,000 309,375
Series 2000 D,
6.700% 05/01/07 200,000 204,250
FL Northern Palm Beach County Improvement District, Series
1999,
6.000% 08/01/29 750,000 704,063
FL Orlando, Conroy Road Interchange Project, Series 1998
A:
5.500% 05/01/10 180,000 176,850
5.800% 05/01/26 500,000 465,000
FL Stoneybrook Community Development District, Series 1998
B,
5.700% 05/01/08 675,000 668,250
MI Taylor Tax Increment Finance Authority, Series 2001,
5.375% 05/01/17 1,220,000 1,236,324
-------------
8,753,024
-------------
STATE APPROPRIATED - 0.3%
NY State Urban Development Corp., University Facilities Grants,
Series 1995,
5.875% 01/01/21 1,000,000 1,088,720
-------------
STATE GENERAL OBLIGATIONS - 4.8%
DC District of Columbia,
Series 1999 A,
5.375% 06/01/18 2,395,000 2,423,644
TX State, Series 1999 ABC,
5.500% 08/01/35 4,200,000 4,205,670
WA State, Series 1999 B,
5.000% 01/01/24 10,000,000 9,483,700
-------------
16,113,014
-------------
-------------------------------------------------------------------------------------------------------
TRANSPORTATION - 14.5%
AIR TRANSPORTATION - 1.8%
CO Denver City & County Airport, United Airlines Inc.,
Series 1992 A,
6.875% 10/01/32 1,645,000 1,622,381
NC Charlotte, US Airways Inc., Series 2000,
7.750% 02/01/28 750,000 742,500
TX Alliance Airport Authority:
American Airlines Project,
7.500% 12/01/29 1,600,000 1,634,992
Federal Express Corp., Series 1996,
6.375% 04/01/21 1,000,000 1,011,740
WA Seattle, Northwest Airways,
7.250% 04/01/30 1,000,000 982,500
-------------
5,994,113
-------------
AIRPORT - 11.2%
CO Denver City & County Airport:
Series B,
7.250% 11/15/23 2,275,000 2,423,103
Series C,
6.125% 11/15/25 2,840,000 3,140,500
Series 1997 E,
5.250% 11/15/23 4,590,000 4,548,047
Series 1998 B,
5.000% 11/15/25 2,940,000 2,800,468
MA State Port Authority,
Series 1998 D,
5.000% 07/01/28 6,500,000 6,097,715
MI Wayne County, Detroit Metropolitan Airport, Series 1998 A,
5.000% 12/01/22 2,000,000 1,889,020
MO St. Louis Airport,
5.000% 07/01/26 4,200,000 3,998,106
OH Cleveland, Series 2001 A,
5.000% 01/01/31 14,000,000 13,216,140
-------------
38,113,099
-------------
TOLL FACILITIES - 1.2%
CO State Public Highway Authority,
E-470 Series 2000 B:
(a) 09/01/18 3,000,000 1,170,750
(a) 09/01/35 8,750,000 700,875
VA Richmond Metropolitan Authority, Series 1998,
5.250% 07/15/22 2,000,000 2,035,800
-------------
3,907,425
-------------
TRANSPORTATION - 0.3%
NV State Department of Business & Industry, Las Vegas
Monorail Project, Series 2000,
7.375% 01/01/40 1,000,000 1,001,250
-------------
-------------------------------------------------------------------------------------------------------
UTILITY - 10.9%
INDEPENDENT POWER PRODUCER - 2.6%
MI Midland County Economic Development Corp., Series 2000,
6.875% 07/23/09 1,000,000 1,026,250
NY Port Authority of New York & New Jersey, KIAC Partners,
Series 1996 IV,
6.750% 10/01/11 2,000,000 2,105,000
PA State Economic Development Finance Authority:
Colver Project, Series D,
7.125% 12/01/15 3,000,000 3,100,920
Northampton Generating, Series A,
6.500% 01/01/13 1,000,000 996,710
PR Commonwealth of Puerto Rico Industrial, Educational,
Medical & Environmental Cogeneration Facilities, AES
Project, Series 2000,
6.625% 06/01/26 650,000 682,461
VA Pittsylvania County Industrial Development Authority,
Multi-trade of Pittsylvania, Series 1994 A,
7.450% 01/01/09 1,000,000 973,750
-------------
8,885,091
-------------
INVESTOR OWNED - 4.0%
AZ Pima County Industrial Development Authority, Tucson
Electric Power Co., Series A,
6.100% 09/01/25 $ 750,000 $ 689,063
CT State Development Authority, Connecticut Light & Power
Co., Series 1993 B,
5.950% 09/01/28 400,000 393,076
IL Bryant, Central Illinois Light Co., Series 1993,
5.900% 08/01/23 5,000,000 5,047,950
LA Calcasieu Parish Industrial Development Board, Entergy
Gulf States, Inc., Series 1999,
5.450% 07/01/10 500,000 483,125
LA West Feliciana Parish, Entergy Gulf States, Inc.,
Series 1999 B,
6.600% 09/01/28 500,000 499,375
MS State Business Finance Corp., Systems Energy Resouces
Project, Series 1998,
5.875% 04/01/22 2,000,000 1,852,500
WV Pleasant County, Western Pennsylvania Power Co.,
Series 1999 E,
5.500% 04/01/29 4,750,000 4,762,778
-------------
13,727,867
-------------
JOINT POWER AUTHORITY - 0.2%
NC Eastern Municipal Power Agency, Series 1999 D,
6.700% 01/01/19 500,000 531,035
-------------
MUNICIPAL ELECTRIC - 1.6%
NY Long Island Power Authority, Series 1998 A,
5.250% 12/01/26 2,000,000 1,975,080
WA Chelan County Public Utilities District No. 1, Columbia
River Rock Hydroelectric,
(a) 06/01/14 5,000,000 2,539,450
WA Seattle, Series 2001,
5.500% 03/01/17 750,000 768,128
-------------
5,282,658
-------------
WATER & SEWER - 2.5%
LA Public Facility Belmont Water Authority,
9.000% 03/15/24 (b) 760,000 608,000
MA State Water Resources Authority, Series 1997 D,
5.000% 08/01/24 4,000,000 3,835,520
MS Five Lakes Utility District,
8.250% 07/15/24 500,000 450,625
NH State Industrial Development Authority, Pennichuck
Water Works, Inc., Series 1988,
7.500% 07/01/18 565,000 598,194
WA King County, Series 1999,
5.250% 01/01/30 3,250,000 3,133,455
-------------
8,625,794
-------------
TOTAL MUNICIPAL BONDS
(cost of $336,763,100) 326,232,747
-------------
MUNICIPAL PREFERRED STOCKS - 1.2% SHARES
-------------------------------------------------------------------------------------------------------
HOUSING - 1.2%
MULTI-FAMILY - 1.2%
Charter Mac Equity Issue Trust,
6.625% 06/30/49 (d) 2,000,000 2,035,000
Muni Mae Equity Issue Trust,
7.750% 11/01/10 (d) 2,000,000 2,112,500
-------------
TOTAL MUNICIPAL PREFERRED STOCKS (cost of $4,000,000) 4,147,500
-------------
SHORT-TERM OBLIGATIONS - 1.8% PAR
-------------------------------------------------------------------------------------------------------
VARIABLE RATE DEMAND NOTES - 1.8% (G)
CO Boulder County, Boulder Medical Center Project, Series
1998,
3.150% 01/01/17 $ 175,000 175,000
IA State Finance Authority, Diocese of Sioux City, Series
1999,
3.000% 03/01/19 200,000 200,000
IA State Higher Education Loan Authority, St.Ambrose
University:
Series 1995,
3.100% 02/01/05 200,000 200,000
Series 1999,
3.000% 10/01/09 300,000 300,000
IA Webster County, St. Edmond Project,
3.000% 07/01/20 100,000 100,000
KS State Development Finance Authority, Series 2000,
3.100% 05/15/26 900,000 900,000
MI Farmington Hills Hospital Fianance Authority, Botsford
General Hospital, Series 1991 B,
3.100% 02/15/16 200,000 200,000
MN Minneapolis:
Series 1997 B,
2.850% 12/01/07 585,000 585,000
Series 1999,
2.850% 12/01/04 190,000 190,000
MO State Environmental Improvement & Energy Resource
Authority, Monsanto Co., Series 1993,
3.050% 06/01/23 400,000 400,000
MS Perry County, Leaf River Forest Project,
3.100% 03/01/02 400,000 400,000
NV Clark County, Las Vegas Project, Series 1999,
3.000% 08/01/19 300,000 300,000
NY New York City, Series 1994 A-5,
3.050% 08/01/20 300,000 300,000
OH Columbus, Series 1995 I,
2.850% 06/01/16 600,000 600,000
TX Gulf Coast Waste Disposal Authority, Exxon Corp.,
Series 1995,
3.050% 06/01/20 385,000 385,000
WY Unita County, Chevron USA, Inc., Project,
3.050% 08/15/20 1,000,000 1,000,000
-------------
TOTAL SHORT-TERM OBLIGATIONS
(cost of $6,235,000) 6,235,000
-------------
TOTAL INVESTMENTS
(cost of $346,998,100) (h) 336,615,247
-------------
OTHER ASSETS & LIABILITIES, NET - 0.8% 2,742,503
-------------------------------------------------------------------------------------------------------
NET ASSETS - 100.0% $ 339,357,750
-------------
NOTES TO INVESTMENT PORTFOLIO:
-------------------------------------------------------------------------------
(a) Zero coupon bond.
(b) This issuer is in default of certain debt covenants. Income is not being accrued.
(c) Accrued interest accumulates in the value of the security and is payable at redemption.
(d) Denotes restricted security, which is subject to restrictions on resale under Federal Securities
laws. At May 31, 2001, these securities amounted to $5,176,250, which represented 1.5% of net
assets.
Additional information on these restricted securities held at May 31, 2001, is as follows:
ACQUISITION ACQUISITION
SECURITY DATE COST
----------------------------------------------------------------------------------------------------
Charter Mac Equity Issue Trust 06/11/99 $ 500,000
Muni Mae Equity Issue Trust 05/30/00 2,000,000
TX Galveston Health Facilities Center 09/28/94 1,000,000
(e) The Trust has been informed that each issuer has placed direct obligations of the U.S. Government in
an irrevocable trust, solely for the payment of the principal and interest.
(f) This security, or a portion thereof, with a total market value of $13,945,028, is being used to
collateralize open futures contracts.
(g) Variable rate demand notes are considered short-term obligations. Interest rates change periodically
on specified dates. These securities are payable on demand and are secured by either letters of
credit or other credit support agreements from banks. The rates listed are as of May 31, 2001.
(h) Cost for federal income tax purposes is the same.
Short futures contracts open at May 31, 2001:
PAR VALUE UNREALIZED
COVERED BY EXPIRATION DEPRECIATION
TYPE CONTRACTS MONTH AT 05/31/01
----------------------------------------------------------------------------------------------------
Treasury Bond $75,100,000 September $ (614,131)
Municipal Bond 42,700,000 September (310,509)
Treasury Note 34,000,000 September (182,495)
-----------
$(1,107,135)
-----------
ACRONYM NAME
-----------------------------------------------------------------------------------------------------
IFRN Inverse Floating Rate Note
--------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
--------------------------------------------------------------------------------
May 31, 2001 (Unaudited)
ASSETS
Investments, at value (cost of $346,998,100) $336,615,247
Cash 66,628
Receivable for:
Interest 5,827,137
Investments sold 1,177,257
Other assets 46,138
------------
Total Assets 343,732,407
------------
LIABILITIES
Payable for:
Investments purchased 1,715,007
Variation margin on futures contracts 1,283,127
Distributions -- common shares 1,118,808
Distributions -- preferred shares 3,598
Management fee 226,572
Bookkeeping fee 7,128
Trustees' fees 4,200
Custody fee 607
Deferred Trustees' fees 15,610
------------
Total Liabilities 4,374,657
------------
NET ASSETS $339,357,750
------------
COMPOSITION OF NET ASSETS
Auction Preferred shares
(4,800 shares issued and
outstanding at $25,000 per share) $120,000,000
Paid-in capital -- common shares 280,313,561
Overdistributed net investment income (1,222,930)
Accumulated net realized loss (48,242,893)
Net unrealized depreciation on:
Investments (10,382,853)
Open futures contracts (1,107,135)
------------
$339,357,750
------------
Net Assets at value for 31,078,027 common shares of
beneficial interest outstanding $219,357,750
------------
Net asset value per common share $ 7.06
------------
Net Assets at value including undeclared dividends for
4,800 preferred shares outstanding $120,000,000
------------
See notes to financial statements.
--------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
--------------------------------------------------------------------------------
For the Six Months Ended May 31, 2001 (Unaudited)
INVESTMENT INCOME
Interest Income $10,954,264
EXPENSES
Management fee $1,351,851
Bookkeeping fee 42,650
Trustees' fee 8,190
Custody fee 3,640
Preferred shares remarketing commissions 132,186
Other expenses 133,993
Net Expenses 1,672,510
-----------
Net Investment Income 9,281,754
-----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
PORTFOLIO POSITIONS
Net realized gain (loss) on:
Investments 55,594
Closed futures contracts (1,202,737)
-----------
Net realized loss (1,147,143)
Net change in unrealized
appreciation/depreciation on:
Investments 3,706,221
Open futures contracts 1,563,558
-----------
Net change in unrealized
appreciation/depreciation 5,269,779
-----------
Net Gain 4,122,636
-----------
Increase in Net Assets from
Operations $13,404,390
-----------
See notes to financial statements.
--------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
(UNAUDITED)
SIX MONTHS ENDED YEAR ENDED
MAY 31 NOVEMBER 30
----- -----------
INCREASE (DECREASE) IN NET ASSETS 2001 2000
------------------------------------------------------------------------------
OPERATIONS:
Net investment income $ 9,281,754 $ 19,146,997
Net realized loss on investments and
futures contracts (1,147,143) (16,825,430)
Net change in unrealized appreciation/
depreciation on investments and
futures contracts 5,269,779 137,081
------------ ------------
Net Increase from Operations 13,404,390 2,458,648
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS:
Distributions from net investment
income -- common shares (6,806,088) (14,824,209)
Distributions from net investment
income -- preferred shares (2,215,543) (5,015,808)
------------ ------------
Total Distributions to Shareholders (9,021,631) (19,840,017)
------------ ------------
SHARE TRANSACTIONS:
Preferred share offering (net of
$282,640 commissions and offering
costs) -- (282,640)
------------ ------------
Total Increase (Decrease) in Net
Assets 4,382,759 (17,664,009)
------------ ------------
NET ASSETS
Beginning of period 334,974,991 352,639,000
------------ ------------
End of period (including
overdistributed net investment income
of ($1,222,930) and ($1,483,053),
respectively) $339,357,750 $334,974,991
------------ ------------
NUMBER OF FUND SHARES:
Common shares:
Outstanding at end of period 31,078,027 31,078,027
------------ ------------
Preferred shares:
Outstanding at end of period 4,800 4,800
------------ ------------
See notse to financial statements.
NOTES TO FINANCIAL STATEMENTS
May 31, 2001 (Unaudited)
NOTE 1. ACCOUNTING POLICIES
ORGANIZATION
Colonial High Income Municipal Trust (the "Trust"), is a Massachusetts
business trust registered under the Investment Company Act of 1940 (the
"Act"), as amended, as a diversified, closed-end, management investment
company. The Trust's investment objective is to provide high current income,
generally exempt from federal income taxes, by investing primarily in medium
and lower quality municipal securities. The Trust authorized an unlimited
number of common shares of beneficial interest and 4,800 Auction Preferred
Shares ("APS").
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities and disclosure of
contingent 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 significant
accounting policies are consistently followed by the Trust in the preparation
of its financial statements.
SECURITY VALUATION AND TRANSACTIONS
Debt securities generally are valued by a pricing service based upon market
transactions for normal, institutional-size trading units of similar
securities. When management deems it appropriate, an over-the-counter or
exchange bid quotation is used.
Futures contracts are valued based on the difference between the last sale
price and the opening price of the contract.
Options are valued at the last reported sale price, or in the absence of a
sale, the mean between the last quoted bid and asking price.
Short-term obligations with a maturity of 60 days or less are valued at
amortized cost.
Portfolio positions for which market quotations are not readily available are
valued at fair value under procedures approved by the Trustees.
Security transactions are accounted for on the date the securities are
purchased, sold or mature.
Cost is determined and gains and losses are based upon the specific
identification method for both financial statement and federal income tax
purposes.
The Trust may trade securities on other than normal settlement terms. This may
increase the risk if the other party to the transaction fails to deliver and
causes the Trust to subsequently invest at less advantageous prices.
FEDERAL INCOME TAXES
Consistent with the Trust's policy to qualify as a regulated investment
company and to distribute all of its taxable and tax-exempt income, no federal
income tax has been accrued.
INTEREST INCOME, DEBT DISCOUNT AND PREMIUM
Interest income is recorded on the accrual basis. Original issue discount is
accreted to interest income over the life of a security with a corresponding
increase in the cost basis; market discount is not accreted. Premium is
amortized against interest income with a corresponding decrease in the cost
basis.
Effective December 1, 2001, the Trust will adopt the provisions of the AICPA
Audit and Accounting Guide for Investment Companies and will be required to
amortize premium and discount on all debt securities. Upon the effective date,
this accounting principle change will not have an impact on total net assets
but will result in a reclassification between cost of securities held and net
unrealized appreciation/depreciation. The Trust currently has not determined
the impact of the adoption of the new accounting policy.
DISTRIBUTIONS TO SHAREHOLDERS
Distributions to common and preferred shareholders are recorded on the ex-date.
The amount and character of income and gains to be distributed are determined
in accordance with income tax regulations which may differ from generally
accepted accounting principles. Reclassifications are made to the Trust's
capital accounts to reflect income and gains available for distribution (or
available capital loss carryforwards) under income tax regulations.
Distributions to preferred shareholders are recorded daily and are payable at
the end of each dividend period. Each dividend payment period for the APS is
generally seven days. The applicable dividend rate for the APS on May 31, 2001
was 3.20% for Series T and 3.10% for Series W. For the six months ended May
31, 2001, the Trust paid dividends to Auction Preferred shareholders amounting
to $2,215,543 representing an average APS dividend rate for such period of
3.70%.
NOTE 2. FEES AND COMPENSATION PAID TO AFFILIATES
MANAGEMENT FEE
Colonial Management Associates, Inc. (the "Advisor") is the investment advisor
of the Trust and furnishes accounting and other services and office facilities
for a monthly fee equal to 0.80% annually of the Trust's average weekly net
assets.
BOOKKEEPING FEE
The Advisor provides bookkeeping and pricing services for a monthly fee equal
to $18,000 per year plus 0.0233% annually of the Trust's average weekly net
assets over $50 million.
OTHER
The Trust pays no compensation to its officers, all of whom are employees of
the Advisor.
The Trust's Trustees may participate in a deferred compensation plan which may
be terminated at any time. Obligations of the plan will be paid solely out of
the Trust's assets.
NOTE 3. PREFERRED SHARE OFFERING
On August 20, 1999, the Trust offered and currently has outstanding 4,800 APS
(2,400 shares each of Series T and W). The APS are redeemable at the option of
the Trust on any dividend payment date at the redemption price of $25,000 per
share, plus an amount equal to any dividends accumulated on a daily basis
unpaid through the redemption date (whether or not such dividends have been
declared). Total proceeds, net of commissions, of $118,500,000, were received
upon completion of the offering.
Costs incurred by the Trust in connection with the offering of the APS
totaling and $282,640 and $106,148 for fiscal year 2000 and 1999,
respectively, were recorded as a reduction of capital paid in excess of par
applicable to common shares.
Under the Act, the Trust is required to maintain asset coverage of at least
200% with respect to the APS as of the last business day of each month in
which any APS are outstanding. Additionally, the Trust is required to meet
more stringent asset coverage requirements under the terms of the APS and in
accordance with the guidelines prescribed by the rating agencies. Should these
requirements not be met, or should dividends accrued on the APS not be paid,
the Trust may be restricted in its ability to declare dividends to common
shareholders or may be required to redeem certain of the APS. At May 31, 2001,
there were no such restrictions on the Trust.
NOTE 4. PORTFOLIO INFORMATION
INVESTMENT ACTIVITY
During the six months ended May 31, 2001, purchases and sales of investments,
other than short-term obligations, were $27,554,005 and $30,412,558,
respectively.
Unrealized appreciation (depreciation) at May 31, 2001, based on cost of
investments for federal income tax purposes was:
Gross unrealized appreciation $ 2,481,343
Gross unrealized depreciation (12,864,196)
------------
Net unrealized depreciation $(10,382,853)
============
CAPITAL LOSS CARRYFORWARDS
At November 30, 2000, capital loss carryforwards available (to the extent
provided in regulations) to offset future realized gains were approximately as
follows:
YEAR OF EXPIRATION CAPITAL LOSS CARRYFORWARD
------------------ -------------------------
2001 $ 5,578,000
2002 6,579,000
2003 5,268,000
2004 2,815,000
2005 5,927,000
2007 3,942,000
2008 14,341,000
-----------
$44,450,000
-----------
Expired capital loss carryforwards, if any, are recorded as a reduction of
paid-in capital.
To the extent loss carryforwards are used to offset any future realized gains,
it is unlikely that such gains would be distributed since they may be taxable
to shareholders as ordinary income.
OTHER
There are certain risks arising from geographic concentration in any state.
Certain revenue or tax related events in a state may impair the ability of
certain issuers of municipal securities to pay principal and interest on their
obligations.
The Trust may focus its investments in certain industries, subjecting it to
greater risk than a fund that is more diversified.
The Trust may purchase or sell municipal and Treasury bond futures contracts
and purchase and write options on futures. The Trust may invest in these
instruments to hedge against the effects of changes in the value of portfolio
securities due to anticipated changes in interest rates and/or market
conditions, for duration management, or when the transactions are economically
appropriate to the reduction of risk inherent in the management of the Trust
and not for trading purposes. The use of futures contracts and options
involves certain risks, which include (1) imperfect correlation between the
price movement of the instruments and the underlying securities, (2) inability
to close out positions due to different trading hours or the temporary absence
of a liquid market for either the instrument or the underlying securities or
(3) an inaccurate prediction by the Advisor of the future direction of
interest rates. Any of these risks may involve amounts exceeding the amount
recorded in the Trust's Statement of Assets and Liabilities at any given time.
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
Selected per share data, total return, ratios and supplemental data
throughout each period are as follows (common shares unless otherwise noted):
(UNAUDITED)
SIX MONTHS ENDED YEAR ENDED PERIOD ENDED
MAY 31, NOVEMBER 30 NOVEMBER 30, YEAR ENDED DECEMBER 31
---------------- ---------------- --------- ---------------------------------------------
2001 2000 1999(A) 1998 1997 1996 1995
-----------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE,
BEGINNING OF PERIOD $ 6.92 $ 7.49 $ 8.49 $ 8.56 $ 8.34 $ 8.55 $ 7.96
-------- -------- --------- --------- --------- --------- ---------
INCOME FROM INVESTMENT
OPERATIONS
Net investment income 0.30 0.62(g) 0.46 0.52 0.55 0.56 0.60
Commissions and
offering costs -
preferred shares -- (0.01) (0.05) -- -- -- --
Net realized and
unrealized gain
(loss) on
investments and
futures contracts 0.13 (0.54) (0.92) (0.07) 0.22 (0.19) 0.58
-------- -------- --------- --------- --------- --------- ---------
Total from
Investment
Operations 0.43 0.07 (0.51) 0.45 0.77 0.37 1.18
-------- -------- --------- --------- --------- --------- ---------
LESS DISTRIBUTIONS DECLARED
TO SHAREHOLDERS
From net investment
income - common
shares (0.22) (0.48) (0.45) (0.52) (0.55) (0.58) (0.59)
From net investment
income - preferred
shares (0.07) (0.16) (0.04) -- -- -- --
-------- -------- --------- --------- --------- --------- ---------
Total
Distributions
Declared to
Shareholders (0.29) (0.64) (0.49) (0.52) (0.55) (0.58) (0.59)
-------- -------- --------- --------- --------- --------- ---------
NET ASSET VALUE, END
OF PERIOD $ 7.06 $ 6.92 $ 7.49 $ 8.49 $ 8.56 $ 8.34 $ 8.55
-------- -------- --------- --------- --------- --------- ---------
Market price per share
- common shares $ 6.45 $ 5.75 $ 6.13 $ 8.31 $ 8.63 $ 8.25 $ 7.38
-------- -------- --------- --------- --------- --------- ---------
Total return based on
market value - on
common shares (b) 15.95%(c) 1.05% (21.72%)(c) 2.47% 11.60% 20.09% 15.65%
---------- -------- --------- --------- --------- --------- ---------
RATIOS TO AVERAGE NET ASSETS
(e)
Expenses (d) 1.53%(e)(f) 1.60%(f) 1.13%(f) 0.93% 0.96% 1.00% 1.06%
Net investment income (e)
(d) 8.50%(e)(f) 6.37%(f) 5.67%(f) 6.02% 6.54% 6.74% 7.15%
Portfolio turnover 8%(c) 10% 16%(c) 29% 17% 15% 23%
Net assets at end of
period (000) -
common shares $219,358 $214,975 $ 232,540 $ 263,705 $ 265,190 $ 257,768 $ 264,467
(a) The Fund changed its fiscal year end from December 31 to November 30.
(b) Total return at market value assuming all distributions reinvested and excluding brokerage commissions.
(c) Not annualized.
(d) The benefits derived from custody credits and directed brokerage arrangements had no impact.
(e) Annualized.
(f) Ratios reflect net assets available to common shares only; net investment income ratio also reflects reduction for dividend
payments to preferred shareholders.
(g) The per share net investment income amount does not reflect the period's reclassifications of differences between book and tax
basis net investment income.
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DIVIDEND REINVESTMENT PLAN
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As a shareholder in the Trust you are eligible to participate in the Dividend
Reinvestment Plan.
The Trust generally distributes net investment income and net short-term capital
gains monthly and net long-term capital gains annually. Under the Trust's
Dividend Reinvestment Plan (the "Plan") all distributions are reinvested
automatically in additional shares of the Trust, unless the shareholder elects
to receive cash or the shares are held in broker or nominee name and a
reinvestment service is not provided by the broker or nominee. All cash
distributions will be mailed by check directly to the record holder by the
dividend paying agent.
If the market price of Trust shares on the distribution payment date is equal to
or greater than the net asset value, Plan participants will be issued shares at
the higher of net asset value or 95% of the market price. However, if the market
price of shares is less than the net asset value, shares will be bought as soon
as practicable (but no more than 30 days after the distribution, except as may
be required to comply with federal securities laws) in the open market for the
accounts of Plan participants. If, during this purchase period, the market price
surpasses the net asset value, the average per share price paid may exceed the
net asset value of the shares, resulting in the acquisition of fewer shares than
if the distribution had been in newly-issued shares. The aggregate market value
of the shares may constitute taxable income to shareholders for federal income
tax purposes.
All Plan accounts receive monthly written confirmations of all transactions.
Shares purchased under the Plan ordinarily are held in uncertificated form,
although each participant has the right to receive certificates for whole shares
owned by the participant. Each shareholder's proxy includes shares purchased
pursuant to the Plan. The automatic reinvestment of distributions does not
relieve participants of any income tax payable on the distributions.
There is no charge to Plan participants for reinvesting distributions. Fees and
expenses of the Plan other than brokerage charges are paid by the Trust.
Participants bear a pro-rata share of brokerage charges incurred on open market
purchases of shares issued under the Plan. A shareholder may elect not to
participate or terminate his or her participation in the Plan by written notice
to the Plan administrator. Such notice must be received by the Plan
administrator before the dividend record date in order to be effective with
respect to that dividend. The Plan may be amended or terminated on 30 days'
written notice to the Plan participants. Upon withdrawal by any participant or
any termination of the Plan, certificates for whole shares will be issued and
cash payments will be made for any fractional shares. All correspondence
concerning the Plan should be directed to EquiServe Trust Company, the Trust's
dividend disbursing agent and administrator of the Plan, at P.O. Box 1681,
Boston, Massachusetts 02105, Attention: Dividend Reinvestment Department.
TRANSFER AGENT
IMPORTANT INFORMATION ABOUT THIS REPORT
The Transfer Agent for Colonial High Income Municipal Trust is:
EquiServe Trust Company
100 Federal Street
Boston, MA 02110
1-800-730-6001
The Colonial High Income Municipal Trust mails one shareholder report to each
shareholder address. If you would like more than one report, please call
1-800-426-3750 and additional reports will be sent to you.
This report has been prepared for shareholders of Colonial High Income Municipal
Trust.
TRUSTEES
DOUGLAS A. HACKER
Executive Vice President and Chief Financial Officer of UAL, Inc. (formerly
Senior Vice President and Chief Financial Officer of UAL, Inc.)
JANET LANGFORD KELLY
Executive Vice President-Corporate Development and Administration, General
Counsel and Secretary, Kellogg Company (formerly Senior Vice President,
Secretary and General Counsel, Sara Lee Corporation)
RICHARD W. LOWRY
Private Investor (formerly Chairman and Chief Executive Officer, U.S. Plywood
Corporation)
SALVATORE MACERA
Private Investor (formerly Executive Vice President and Director of Itek Corp.)
WILLIAM E. MAYER
Managing Partner, Park Avenue Equity Partners (formerly Founding Partner,
Development Capital LLC; Dean and Professor, College of Business and Management,
University of Maryland)
CHARLES R. NELSON
Van Voorhis Professor, Department of Economics, University of Washington;
consultant on econometric and statistical matters (formerly Department Chairman
and Director of the Institute for Economic Research)
JOHN J. NEUHAUSER
Academic Vice President and Dean of Faculties, Boston College (formerly Dean,
Boston College School of Management)
JOSEPH R. PALOMBO
Chief Operations Officer, Mutual Funds, Liberty Financial Companies, Inc.;
Executive Vice President and Director of Colonial Management Associates, Inc.
and Stein Roe & Farnham Incorporated; Executive Vice President and Chief
Administrative Officer of Liberty Funds Group LLC (formerly Vice President of
Liberty Mutual Funds, Stein Roe Mutual Funds and All-Star Funds, and Chief
Operating Officer, Putnam Mutual Funds)
THOMAS E. STITZEL
Business Consultant and Chartered Financial Analyst (formerly Professor of
Finance, College of Business, Boise State University)
THOMAS C. THEOBALD
Managing Director, William Blair Capital Partners (formerly Chief Executive
Officer and Chairman of the Board of Directors, Continental Bank Corporation)
ANNE-LEE VERVILLE
Chairman of the Board of Directors, Enesco Group, Inc. and author and speaker on
educational systems needs (formerly General Manager, Global Education Industry,
and President, Applications Solutions Division, IBM Corporation)
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COLONIAL HIGH INCOME MUNICIPAL TRUST SEMIANNUAL REPORT
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