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 811-5785 Colonial Investment Grade Municipal Trust -------------------------------------------------------------------------------- (Exact name of registrant as specified in charter) One Financial Center, Boston, Massachusetts 02111 -------------------------------------------------------------------------------- (Address of principal executive offices) (Zip code) James R. Bordewick, Jr., Esq. Columbia Management Advisors, LLC One Financial Center Boston, MA 02111 -------------------------------------------------------------------------------- (Name and address of agent for service) Registrant's telephone number, including area code: 1-617-426-3750 Date of fiscal year end: November 30, 2006 Date of reporting period: May 31, 2006 Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles. A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. Section 3507. Item 1. Reports to Stockholders [PHOTO] COLONIAL INVESTMENT GRADE MUNICIPAL TRUST Semiannual Report May 31, 2006 [LOGO] Not FDIC Insured May Lose Value No Bank Guarantee [GRAPHIC] Dear Shareholder: The US stock and bond markets delivered positive, but modest, returns during the six month period ended May 31, 2006. After a weak fourth quarter, economic growth turned sharply higher in 2006 and job growth was steady, although somewhat slower at the end of the period. Confident consumers continued to pump dollars into US retail markets, despite higher energy prices, which boosted inflation. The housing market continued to cool as mortgage rates moved higher, but housing-market indicators--such as housing starts, sales of existing homes, and house prices--remained strong by historical measures. In this environment, the US fixed income markets faced the challenge of rising interest rates, especially within the short-and intermediate-maturity ranges and was generally flat for the period. The Federal Reserve Board, in an effort to balance economic growth and the forces of inflation, raised short-term interest rates by one full percentage point during the reporting period. The yield on the 10-year US Treasury note, a bellwether for the bond market, moved up from 4.5% to 5.1%. Lower quality bonds did better than higher quality bonds. In fact, high-yield bonds did better than either stocks or investment-grade bonds. A strong economy favored corporate high-yield bonds, as default rates remained low and corporate profits surprised investors with better-than-expected results. However, that trend showed signs of shifting near the end of the six-month period. The municipal sector generated respectable gains as economic growth helped buoy revenues and stabilize budgets in many states and municipalities. Within the municipal market, high-yield also outperformed high-grade bonds for the period. In the pages that follow, your fund's manager discusses key factors that influenced performance during this six-month reporting period. We urge you to read this report carefully and to discuss any questions you might have with your financial advisor. As always, we thank you for choosing Colonial Funds. We look forward to continuing to help you build toward your financial goals. Sincerely, /s/ Christopher L. Wilson Christopher L. Wilson President, Columbia Funds Past performance is no guarantee of future results. Investments in high-yield or "junk" bonds offer the potential for higher income than investments in investment-grade bonds, but also have a higher degree of risk. Changes in economic conditions or other circumstances may adversely effect a high-yield bond issuer's ability to make timely principal and interest payments. The views expressed in the President's Message and Portfolio Manager's Report reflect the current views of the respective parties. These views are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict so actual outcomes and results may differ significantly from the views expressed. These views are subject to change at any time based upon economic, market or other conditions and the respective parties disclaim any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Colonial Fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any particular Colonial Fund. References for specific company securities should not be construed as a recommendation or investment advice. [GRAPHIC] [GRAPHIC] PORTFOLIO MANAGER'S REPORT Summary .. For the six-month period ended May 31, 2006, Colonial Investment Grade Municipal Trust generated a total return of 1.89%, based on its market price. During the period, the trust returned 2.73%, based on investment at net asset value. By comparison, the average return of the Lipper General Municipal Debt Funds (Leveraged) Category was 2.65% for the same period./1/ The trust benefited from having slightly more exposure to long-term bonds than many of its peers, as well as an above-average stake in non-rated bonds. The trust's dividend yield dropped as rising short-term interest rates reduced some of the income derived from leverage. However, we believe that the trust's leverage continued to give the common shareholders a higher dividend payment than would have been available without it. .. Airline bonds, which are higher-yielding issues, did especially well for the trust. Non-rated bonds, which accounted for approximately 14% of total investments at the end of the period, were also top gainers. Bonds that are not rated by national credit rating agencies tend to have higher yields because they are often of lower quality. The trust's short position in Treasury futures contracts, which shortens duration (and reduces the trust's price volatility), also did well. Duration is a measure of interest rate sensitivity. Bonds issued by Northwest Parkway (0.4% of total investments)/2/, a toll road northwest of Denver, detracted from performance, as did Northwest Airlines bonds, which we sold at a loss. .. Although the Federal Reserve Board appears to be committed to keeping inflation in check, we believe it may be nearly finished hiking short-term interest rates. If interest rates stabilize, we believe that long-term bonds, whose yields reflect inflation expectations, could do well. At the end of the period, we believe that the trust had greater exposure than its peers to long-term bonds. Portfolio Management Maureen G. Newman has been the portfolio manager of Colonial Investment Grade Municipal Trust since January 2002. Shares of closed-end funds frequently trade at a discount to net asset value. The price of the trust's shares is determined by a number of factors, several of which are beyond the control of the trust. Therefore, the trust cannot predict whether its shares will trade at, below or above net asset value. Performance data quoted represents past performance and current performance may be lower or higher. Past performance is no guarantee of future results. ----------- /1/Lipper Inc., a widely respected data provider in the industry, calculates an average total return (assuming reinvestment of distributions) for mutual funds with investment objectives similar to those of the fund. Lipper makes no adjustment for the effect of sales loads. /2/Holdings are discussed as of May 31, 2006, and are subject to change. *See page 19 for the long term returns based on market price. Price per share as of 05/31/06 ($) Market price 10.30 --------------------- Net asset value 11.16 --------------------- 6-month (cumulative) total return as of 05/31/06 (%)* Market price 1.89 ---------------------------------- Net asset value 2.73 ---------------------------------- Lipper General Municipal Debt Funds (Leveraged) Category average 2.65 ---------------------------------- PERFORMANCE IS HISTORICAL, ASSUMES REINVESTMENT OF ALL DIVIDENDS AND CAPITAL GAINS, AND DOES NOT GUARANTEE FUTURE RESULTS. INVESTMENT RETURN AND PRINCIPAL VALUE FLUCTUATE WITH CHANGING MARKET CONDITIONS SO THAT, WHEN SOLD, SHARES MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE DATA QUOTED. PLEASE CALL 800-730-6001 FOR THE TRUST'S MOST RECENT PERFORMANCE. TOTAL RETURN BASED ON NET ASSET VALUE REFLECTS CHANGES IN THE TRUST'S NET ASSET VALUE DURING EACH PERIOD. TOTAL RETURN BASED ON MARKET VALUE REFLECTS CHANGES IN MARKET VALUE. THESE FIGURES WILL DIFFER DEPENDING ON THE LEVEL OF ANY DISCOUNT FROM OR PREMIUM TO DURING THE PERIOD. Distributions declared per common share 12/01/05-05/31/06 ($) 0.30 -------- A 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. Top 5 sectors as of 05/31/06 (%) Local general obligations 9.3 ----------------------------- Hospitals 9.1 ----------------------------- Refunded/escrowed 8.4 ----------------------------- State appropriated 7.4 ----------------------------- Investor owned 7.4 ----------------------------- Quality breakdown as of 05/31/06 (%) AAA 45.4 --------------------- AA 9.6 --------------------- A 10.1 --------------------- BBB 17.9 --------------------- BB 1.3 --------------------- B 1.0 --------------------- Non-rated 14.2 --------------------- Cash equivalents 0.5 --------------------- Sector and quality breakdowns are calculated as a percentage of total investments. Ratings shown in the quality breakdown represent the rating assigned to a particular bond by one of the following nationally recognized rating agencies: Standard & Poor's, a division of The McGraw-Hill Companies, Inc., Moody's Investors Service, Inc. or Fitch Ratings, Ltd. Ratings are relative and subjective and are not absolute standards of quality. The trust's credit quality does not remove market risk. The majority of the bonds that are non-rated are considered by the advisor to be of non-investment grade quality. Because the trust is actively managed, there is no guarantee that the trust will continue to invest in these sectors or maintain these quality breakdowns in the future. 1 [GRAPHIC] Investing in fixed-income securities may involve certain risks, including the credit quality of individual issuers, possible prepayments, market or economic developments and yield and share price fluctuations due to changes in interest rates. When interest rates go up, bond prices typically drop, and vice versa. Investing in high-yield or "junk" bonds offers the potential for higher income than investments in investment-grade bonds but they also have a higher degree of risk. Changes in economic conditions or other circumstances may adversely affect a high-yield bond issuer's ability to make timely principal and interest payments. Tax-exempt investing offers current tax-exempt income, but it also involves special risks. The value of the fund will be affected by interest rate changes and the creditworthiness of issues held in the fund. Interest income from certain tax-exempt bonds may be subject to certain state and local taxes and, if applicable, the alternative minimum tax. Capital gains are not exempt from income taxes. 2 [GRAPHIC] PORTFOLIO MANAGER'S REPORT (continued) [GRAPHIC] INVESTMENT PORTFOLIO May 31, 2006 (Unaudited) MUNICIPAL BONDS - 143.7% PAR ($) VALUE ($) --------------------------------------------------------- EDUCATION - 6.8% EDUCATION - 2.8% FL Broward County Educational Facilities Authority, Nova Southeastern University, Series 2004 B, 5.500% 04/01/24 155,000 160,856 IL Chicago State University, Series 1998, Insured: MBIA 5.500% 12/01/23 1,085,000 1,226,755 PA Higher Education Facilities Authority, Philadelphia University, Series 2004 A, 5.125% 06/01/25 500,000 505,395 TN Metropolitan Government, Nashville & Davidson County, Health & Educational Facilities Board, Meharry Medical College, Series 1996, Insured: AMBAC 6.000% 12/01/16 1,575,000 1,788,066 --------- Education Total 3,681,072 --------- PREP SCHOOL - 1.5% KY Louisville & Jefferson County Metropolitan Government, Sisters of Mercy, Series 2006, 5.000% 10/01/35 500,000 500,485 MA Industrial Finance Agency, Tabor Academy, Series 1998, 5.400% 12/01/28 1,000,000 1,045,880 NH Business Finance Authority, Proctor Academy, Series 1998 A, 5.400% 06/01/17 365,000 373,556 --------- Prep School Total 1,919,921 --------- STUDENT LOAN - 2.5% CT Higher Education Supplemental Loan Authority, Senior Family Education Loan Program, Series 2005 A, AMT, Insured: MBIA 4.250% 11/15/19 1,700,000 1,651,567 NE Nebhelp, Inc., Series 1993 A-6, AMT, Insured: MBIA 6.450% 06/01/18 1,500,000 1,516,530 --------- Student Loan Total 3,168,097 --------- EDUCATION TOTAL 8,769,090 --------- --------------------------------------------------------- HEALTH CARE - 26.6% CONTINUING CARE RETIREMENT - 8.5% CA La Verne, Brethren Hillcrest Homes, Series 2003 B, 6.625% 02/15/25 350,000 378,913 PAR ($) VALUE ($) ---------------------------------------------------------- CO Health Facilities Authority, Covenant Retirement Communities, Inc., Series 2005 B, 5.000% 12/01/16 860,000 871,885 CT Development Authority, Elim Park Baptist Home, Inc., Series 2003, 5.750% 12/01/23 250,000 260,513 FL Capital Projects Finance Authority, Glenridge on Palmer Ranch, Series 2002 A, 8.000% 06/01/32 500,000 551,860 FL Lee County Industrial Development Authority, Shell Point Village Project, Series 1999 A, 5.500% 11/15/29 175,000 175,894 GA Fulton County, Canterbury Court Project, Series 2004 A, 6.125% 02/15/34 250,000 258,463 GA Savannah Economic Development Authority, Marshes of Skidaway, Series 2003 A, 7.400% 01/01/24 250,000 271,100 IL Finance Authority, Washington & Jane Smith Community, Series 2005 A, 6.250% 11/15/35 500,000 516,015 IL Health Facilities Authority: Lutheran Senior Ministries, Series 2001, 7.375% 08/15/31 250,000 271,572 Washington & Jane Smith Community, Series 2003 A, 7.000% 11/15/32 250,000 268,072 IN Health & Educational Facilities Financing Authority, Baptist Homes of Indiana Inc., Series 2005, 5.250% 11/15/35 500,000 498,575 MA Development Finance Agency, Loomis Communities, Series 1999 A, 5.625% 07/01/15 200,000 203,942 MD Westminster Economic Development Authority, Carroll Lutheran Village, Inc., Series 2004 A, 5.875% 05/01/21 500,000 510,610 MO Cole County Industrial Development Authority, Lutheran Senior Services, Series 2004, 5.500% 02/01/35 500,000 514,725 NC Medical Care Commission, United Methodist Retirement Home, Inc., Series 2005 C, 5.250% 10/01/24 250,000 251,005 See Accompanying Notes to Financial Statements. 3 [GRAPHIC] INVESTMENT PORTFOLIO (CONTINUED) May 31, 2006 (Unaudited) MUNICIPAL BONDS (CONTINUED) PAR ($) VALUE ($) ------------------------------------------------------ HEALTH CARE (CONTINUED) CONTINUING CARE RETIREMENT (CONTINUED) NJ Economic Development Authority: Cranes Mill, Series 2005 A, 5.100% 06/01/27 250,000 244,578 Lions Gate, Series 2005 A: 5.750% 01/01/25 310,000 315,726 5.875% 01/01/37 100,000 101,849 Winchester Gardens, Series 2004 A, 5.750% 11/01/24 350,000 368,868 PA Bucks County Industrial Development Authority, Ann's Choice, Inc., Series 2005 A, 6.125% 01/01/25 500,000 510,410 PA Chartiers Valley Industrial & Commercial Development Authority, Friendship Village/South, Series 2003 A, 5.250% 08/15/13 500,000 505,385 PA Delaware County Authority, Dunwoody Village, Series 2003 A, 5.375% 04/01/17 250,000 261,130 PA Montgomery County Industrial Development Authority, Whitemarsh Continuing Care Retirement Community, Series 2005: 6.125% 02/01/28 200,000 209,828 6.250% 02/01/35 300,000 315,717 TN Johnson City Health & Educational Facilities Authority, Appalachian Christian Village, Series 2004 A, 6.250% 02/15/32 250,000 256,455 TN Shelby County Health Educational & Housing Facilities Board, Germantown Village, Series 2003 A, 7.250% 12/01/34 150,000 159,222 TX Abilene Health Facilities Development Corp., Sears Methodist Retirement Center, Series 2003 A, 7.000% 11/15/33 500,000 535,785 TX Tarrant County Cultural Education Facilities, Northwest Senior Housing-Edgemere, Series 2006 A, 6.000% 11/15/36 250,000 259,640 VA Virginia Beach Development Authority, Westminster-Canterbury of Hampton, Series 2005, 5.250% 11/01/26 300,000 301,449 VA Winchester Industrial Development Authority, Westminster-Canterbury, Series 2005 A, 5.300% 01/01/35 250,000 249,878 PAR ($) VALUE ($) ---------------------------------------------------------- WI Health & Educational Facilities Authority: Eastcastle Place, Inc., Series 2004, 6.125% 12/01/34 150,000 151,326 Three Pillars Senior Living Communities, Series 2003, 5.600% 08/15/23 300,000 305,703 ---------- Continuing Care Retirement Total 10,856,093 ---------- HEALTH SERVICES - 1.2% CO Health Facilities Authority, National Jewish Medical & Research Center, Series 1998 B, 5.375% 01/01/29 250,000 249,663 LA Public Facilities Authority, Pennington Medical Foundation Project, Series 2006, 5.000% 07/01/21 1,000,000 1,017,400 MA Health & Educational Facilities Authority, Civic Investments, Inc., Series 2002 A, 9.000% 12/15/15 250,000 300,937 ---------- Health Services Total 1,568,000 ---------- HOSPITALS - 13.4% AL Health Care Authority, Baptist Health, Series 2006 B, 5.000% 11/15/21 850,000 855,261 AR Washington County, Washington Regional Medical Center, Series 2005 B, 5.000% 02/01/30 400,000 393,432 CA Health Facilities Financing Authority, Catholic Healthcare West, Series 2004 I, 4.950% 07/01/26 200,000 206,514 CA Rancho Mirage Joint Powers Financing Authority, Eisenhower Medical Center, Series 2004, 5.625% 07/01/29 1,000,000 1,058,470 CA Statewide Communities Development Authority, Kaiser Permanente, Series 2004 I, 3.450% 04/01/35 250,000 239,970 CA Turlock, Emanuel Medical Center, Inc., Series 2004, 5.375% 10/15/34 500,000 510,505 CO Health Facilities Authority: Parkview Medical Center, Series 2004, 5.000% 09/01/25 250,000 250,328 Vail Valley Medical Center, Series 2004, 5.000% 01/15/20 250,000 254,703 See Accompanying Notes to Financial Statements. 4 [GRAPHIC] INVESTMENT PORTFOLIO (CONTINUED) May 31, 2006 (Unaudited) MUNICIPAL BONDS (CONTINUED) PAR ($) VALUE ($) --------------------------------------------------------- HEALTH CARE (CONTINUED) HOSPITALS (CONTINUED) DE Health Facilities Authority, Beebe Medical Center, Series 2004 A, 5.000% 06/01/16 500,000 513,700 FL Orange County Health Facilities Authority, Orlando Regional Healthcare System: Series 1996 C, Insured: MBIA 6.250% 10/01/13 720,000 816,163 Series 1999 E, 6.000% 10/01/26 170,000 178,796 FL South Broward Hospital District, Series 2002, 5.625% 05/01/32 1,000,000 1,057,060 IL Southwestern Development Authority, Anderson Hospital, Series 1999, 5.375% 08/15/15 380,000 389,713 IN Health & Educational Facility Financing Authority, Schneck Memorial Hospital Project, Series 2006 A, 5.250% 02/15/36(a) 350,000 359,072 IN Health Facility Financing Authority, Community Foundation of Northwest Indiana, Inc., Series 2004 A, 6.000% 03/01/34 150,000 157,374 KS University Hospital Authority, Kansas University Health System, Series 2002, 5.625% 09/01/32 500,000 526,055 LA Public Facilities Authority, Touro Infirmary, Series 1999 A, 5.625% 08/15/29 500,000 480,860 MA Health & Educational Facilities Authority: Milford-Whitinsville Regional Hospital, Series 1998 C, 5.750% 07/15/13 500,000 512,715 South Shore Hospital, Series 1999 F, 5.750% 07/01/29 1,000,000 1,052,550 MD Health & Higher Educational Facilities Authority, Adventist Healthcare, Series 2003 A: 5.000% 01/01/16 250,000 253,930 5.750% 01/01/25 250,000 263,312 MI Hospital Finance Authority, Oakwood Obligated Group, Series 2003, 5.500% 11/01/18 400,000 425,360 PAR ($) VALUE ($) -------------------------------------------------------- MN St. Paul Housing & Redevelopment Authority, HealthEast, Inc.: Series 2001 A, 5.700% 11/01/15 250,000 257,692 Series 2005, 5.150% 11/15/20 250,000 255,188 MO Saline County Industrial Development Authority, John Fitzgibbon Memorial Hospital, Series 2005, 5.625% 12/01/35 500,000 496,750 MT Facilities Finance Authority, Montana's Children's Home and Hospital, Series 2005 B, 4.750% 01/01/24 250,000 249,990 NH Higher Educational & Health Facilities Authority, Catholic Medical Center, Series 2002, 6.125% 07/01/32 500,000 532,465 NJ Health Care Facilities Financing Authority, Capital Health Systems, Inc., Series 2003 A, 5.750% 07/01/23 350,000 368,784 NV Henderson: Catholic Healthcare West, Series 1999 A, 6.750% 07/01/20 60,000 65,330 St. Rose Dominican Hospital, Series 1998 A, 5.375% 07/01/26 195,000 198,598 NY Dormitory Authority: Mt Sinai - NYU Medical Center: Series 2000, 5.500% 07/01/26 200,000 202,802 Series 2000 C, 5.500% 07/01/26 300,000 304,203 North Shore - Long Island Jewish Medical Center, Series 2003, 5.500% 05/01/33 100,000 105,258 OH Lakewood, Lakewood Hospital Association, Series 2003, 5.500% 02/15/14 385,000 405,771 RI Health & Educational Building Corp., Hospital Foundation, Lifespan Obligated Group, Series 2002, 6.375% 08/15/21 65,000 70,607 SC Jobs Economic Development Authority, Bon Secours-St. Francis Medical Center, Series 2002, 5.500% 11/15/23 500,000 522,065 See Accompanying Notes to Financial Statements. 5 [GRAPHIC] INVESTMENT PORTFOLIO (CONTINUED) May 31, 2006 (Unaudited) MUNICIPAL BONDS (CONTINUED) PAR ($) VALUE ($) --------------------------------------------------------- HEALTH CARE (CONTINUED) HOSPITALS (CONTINUED) SC Lexington County Health Services District Revenue, Lexington Medical Center Project, Refunding, Series 2003, 5.500% 11/01/23 500,000 519,770 SD Health & Educational Facilities Authority, Sioux Valley Hospital & Health System, Series 2004 A, 5.250% 11/01/34 250,000 256,363 VA Augusta County Industrial Development Authority, Augusta Health Care, Inc., Series 2003, 5.250% 09/01/19 1,000,000 1,058,780 WI Health & Educational Facilities Authority: Aurora Health Care, Inc., Series 2003, 6.400% 04/15/33 175,000 191,343 Fort Healthcare, Inc., Series 2004, 5.375% 05/01/18 385,000 402,775 ---------- Hospitals Total 17,220,377 ---------- INTERMEDIATE CARE FACILITIES - 0.5% IL Development Finance Authority, Hoosier Care, Inc., Series 1999 A, 7.125% 06/01/34 455,000 440,203 MA Development Finance Agency, Evergreen Center, Inc., Series 2005, 5.000% 01/01/24 250,000 237,365 ---------- Intermediate Care Facilities Total 677,568 ---------- NURSING HOMES - 3.0% AK Juneau, St. Ann's Care Center, Inc., Series 1999, 6.875% 12/01/25 485,000 480,441 CO Health Facilities Authority: Evangelical Lutheran Good Samaritan Foundation, Series 2005, 5.000% 06/01/35 125,000 124,299 Pioneer Health Care, Series 1989, 10.500% 05/01/19 1,490,000 1,197,841 DE Economic Development Authority, Churchman Village Project, Series 1991 A, 10.000% 03/01/21 840,000 849,677 PA Chester County Industrial Development Authority, Pennsylvania Nursing Home, Series 2002, 8.500% 05/01/32 740,000 759,329 PAR ($) VALUE ($) --------------------------------------------------------- PA Delaware County Industrial Development Authority, Care Institute-Main Line LLC, Series 2005, 9.000% 08/01/31 540,000 459,524 WI Health & Educational Facilities Authority, Metro Health Foundation, Inc., Series 1993, 11.000% 11/01/22(b) 966,819 10,876 ---------- Nursing Homes Total 3,881,987 ---------- HEALTH CARE TOTAL 34,204,025 ---------- --------------------------------------------------------- HOUSING - 14.0% ASSISTED LIVING/SENIOR - 1.5% NC Medical Care Commission, DePaul Community Facilities, Series 1998, 6.125% 01/01/28 500,000 461,880 NY Suffolk County Industrial Development Agency, Gurwin-Jewish Phase II, Series 2004, 6.700% 05/01/39 500,000 536,165 OR Clackamas County Hospital Facility Authority, Robison Jewish Home, Series 2005, 5.250% 10/01/27 500,000 489,280 TX Bell County Health Facility Development Corp., Care Institute, Inc., Series 1994, 9.000% 11/01/24 450,000 439,335 ---------- Assisted Living/Senior Total 1,926,660 ---------- MULTI-FAMILY - 7.5% DC Housing Finance Agency, Henson Ridge, Series 2004 E, AMT, Insured: FHA 5.100% 06/01/37 500,000 504,360 FL Broward County Housing Finance Authority, Chaves Lake Apartment Project, Series 2000 A, AMT, 7.500% 07/01/40 500,000 514,885 FL Capital Trust Agency, Atlantic Housing Foundation, Inc., Series 2005 C, 5.875% 01/01/28 375,000 372,484 FL Clay County Housing Finance Authority, Madison Commons Apartments, Series 2000 A, AMT, 7.450% 07/01/40 245,000 251,938 MA Housing Finance Agency: Series 2004 A, AMT, Insured: FSA 5.250% 07/01/25 2,000,000 2,053,420 Series 2005 E, AMT, 5.000% 12/01/28 250,000 250,688 See Accompanying Notes to Financial Statements. 6 [GRAPHIC] INVESTMENT PORTFOLIO (CONTINUED) May 31, 2006 (Unaudited) MUNICIPAL BONDS (CONTINUED) PAR ($) VALUE ($) -------------------------------------------------------- HOUSING (CONTINUED) MULTI-FAMILY (CONTINUED) ME Housing Authority, Series 2005 A-2, AMT, 4.950% 11/15/27 500,000 498,940 MN Minneapolis Student Housing, Riverton Community Housing, Inc., Series 2006 A, 5.700% 08/01/40 250,000 241,685 MN White Bear Lake, Birch Lake Townhome Project: Series 1989 A, AMT, 10.250% 07/15/19 775,000 736,250 Series 1989 B, AMT, (c) 07/15/19 668,000 207,080 NC Medical Care Commission, ARC Projects, Series 2004 A, 5.800% 10/01/34 655,000 689,656 NJ Middlesex County Improvement Authority, George Street Student Housing, Series 2004 A, 5.000% 08/15/18 300,000 305,190 NM Mortgage Finance Authority, Series 2005 E, AMT, Insured: FHA 4.800% 09/01/40 500,000 480,560 NY New York City Housing Development Corp., Series 2005 F-1, 4.650% 11/01/25 500,000 499,345 OH Montgomery County, Series 2005, AMT, Insured: FHLMC 4.950% 11/01/35 250,000 248,260 Resolution Trust Corp., Pass-Through Certificates, Series 1993 A, 8.500% 12/01/16(d) 227,741 221,685 WA Seattle Housing Authority, High Rise Rehabilitation Phase I LP, Series 2005, AMT, Insured: FSA 5.000% 11/01/25 500,000 502,215 WA Tacoma Housing Authority, Redwood, Series 2005, AMT, Insured: GNMA 5.050% 11/20/37 1,040,000 1,043,848 --------- Multi-Family Total 9,622,489 --------- SINGLE-FAMILY - 5.0% CO Housing Finance Authority, Series 2000 B-2, AMT, 7.250% 10/01/31 75,000 77,090 IL Chicago, Series 2000 A, AMT, Insured: FNMA 7.150% 09/01/31 30,000 30,810 PAR ($) VALUE ($) ------------------------------------------------------- MA Housing Finance Agency: Series 2005 118, AMT, 4.850% 12/01/35 750,000 725,557 Series 2005 B, 5.000% 06/01/30 455,000 464,623 ME Housing Authority, Series 2005 D-2, AMT, 4.800% 11/15/36 1,500,000 1,467,300 MN Minneapolis/St. Paul Housing Finance Board, Series 2006, AMT, 5.000% 12/01/38(a) 500,000 499,520 MT Board of Housing, Series 2005 A, AMT, 5.000% 06/01/36 1,000,000 1,003,400 ND Housing Finance Agency, Series 2006 A, AMT, 4.850% 07/01/21(a) 500,000 504,255 OK Housing Finance Agency, Series 2006 C, AMT, 4.900% 09/01/21(a) 705,000 713,213 PA Pittsburgh Urban Redevelopment Authority, Series 2006 C, Insured: GNMA 4.800% 04/01/28 500,000 492,650 WI Housing & Economic Development Authority, Series 2005 C, AMT, 4.875% 03/01/36 495,000 485,585 ---------- Single-Family Total 6,464,003 ---------- HOUSING TOTAL 18,013,152 ---------- ------------------------------------------------------- INDUSTRIALS - 3.1% FOOD PRODUCTS - 1.0% MI Strategic Fund, Imperial Holly Corp., Series 1998 C, AMT, 6.550% 11/01/25 250,000 247,457 NE Washington County WasteWater Facilities Authority, Cargill, Inc., Series 2002, AMT, 5.900% 11/01/27 1,000,000 1,071,350 ---------- Food Products Total 1,318,807 ---------- FOREST PRODUCTS & PAPER - 1.1% AL Camden Industrial Development Board, Weyerhaeuser Co., Series 2003 B, AMT, 6.375% 12/01/24 275,000 298,678 AR Camden Environmental Improvement Authority, International Paper Co., Series 2004 A, AMT, 5.000% 11/01/18 500,000 494,065 See Accompanying Notes to Financial Statements. 7 [GRAPHIC] INVESTMENT PORTFOLIO (CONTINUED) May 31, 2006 (Unaudited) MUNICIPAL BONDS (CONTINUED) PAR ($) VALUE ($) -------------------------------------------------- INDUSTRIALS (CONTINUED) FOREST PRODUCTS & PAPER (CONTINUED) FL Escambia County Environmental Improvement Revenue, International Paper Co., Series 2003 A, AMT, 5.750% 11/01/27 250,000 259,450 MS Lowndes County, Weyerhaeuser Co. Project, Series 1992 B, 6.700% 04/01/22 325,000 382,557 --------- Forest Products & Paper Total 1,434,750 --------- MANUFACTURING - 0.2% MO Development Finance Board, Procter & Gamble Co., Series 1999, AMT, 5.200% 03/15/29 250,000 265,540 --------- Manufacturing Total 265,540 --------- OIL & GAS - 0.8% NJ Middlesex County Pollution Control Authority, Amerada Hess Corp., Series 2004, 6.050% 09/15/34 175,000 188,650 NV Clark County Industrial Development Authority, Southwest Gas Corp., Series 2003 E, AMT, 5.800% 03/01/38 250,000 265,433 TX Gulf Coast Industrial Development Authority, Citgo Petroleum, Series 1998, AMT, 8.000% 04/01/28 250,000 281,715 VI Virgin Islands Public Finance Authority, Hovensa LLC, Series 2003, AMT, 6.125% 07/01/22 200,000 219,264 --------- Oil & Gas Total 955,062 --------- INDUSTRIALS TOTAL 3,974,159 --------- -------------------------------------------------- OTHER - 16.6% OTHER - 0.7% NY Convention Center Operating Corp., Yale Building Project, Series 2003, (c) 06/01/08 700,000 648,998 PR Commonwealth of Puerto Rico Government Development Bank, Series 2006 B, 5.000% 12/01/15 250,000 258,658 --------- Other Total 907,656 --------- PAR ($) VALUE ($) ---------------------------------------------------------- POOL/BOND BANK - 1.4% KS Development Finance Authority, Water Pollution Control, Series 2001, 5.500% 11/01/17 1,125,000 1,256,738 OH Summit County Port Authority, Seville Project, Series 2005 A, 5.100% 05/15/25 495,000 495,267 --------- Pool/Bond Bank Total 1,752,005 --------- REFUNDED/ESCROWED(E) - 12.4% CA Golden State Tobacco Securitization Corp., Series 2003 B, Pre-refunded 06/01/13, 5.500% 06/01/43 500,000 549,335 CO Highlands Ranch Metropolitan District No. 2, Series 1996, Escrowed to Maturity, Insured:CGIC 6.500% 06/15/11 725,000 814,762 FL Orange County Health Facilities Authority, Orlando Regional Healthcare System: Series 1996 C, Escrowed to Maturity, Insured: MBIA 6.250% 10/01/13 1,740,000 1,994,927 Series 1999 E, Pre-refunded 10/01/09, 6.000% 10/01/26 5,000 5,393 Series 2002, Pre-refunded 12/01/12, 5.750% 12/01/32 150,000 165,554 IL Development Finance Authority, Adventist Health System, Series 1999, Pre-refunded 11/15/09, 5.500% 11/15/20 900,000 958,806 IL Health Facilities Authority, Swedish American Hospital, Series 2000, Pre-refunded 05/15/10, 6.875% 11/15/30 500,000 554,035 MA Development Finance Agency, Western New England College, Series 2002, Pre-refunded 12/01/12, 6.125% 12/01/32 315,000 356,829 MD Health & Higher Educational Facilities Authority, University of Maryland Medical System, Series 2000, Pre-refunded 07/01/10, 6.750% 07/01/30 250,000 280,390 See Accompanying Notes to Financial Statements. 8 [GRAPHIC] INVESTMENT PORTFOLIO (CONTINUED) May 31, 2006 (Unaudited) MUNICIPAL BONDS (CONTINUED) PAR ($) VALUE ($) ---------------------------------------------------------- OTHER (CONTINUED) REFUNDED/ESCROWED(E) (CONTINUED) MI Garden City School District, Series 2001, Pre-refunded 05/01/11, Insured: QSBLF 5.500% 05/01/16 325,000 350,113 MN University of Minnesota, Series 1996 A, Escrowed to Maturity: 5.500% 07/01/21 2,000,000 2,238,860 5.750% 07/01/14 500,000 559,540 MO Health & Educational Facilities Authority, Central Institute for the Deaf, Series 1999, Pre-refunded 01/01/10, Insured: RAD 5.850% 01/01/22 600,000 641,568 NC Lincoln County, Lincoln County Hospital, Series 1991, Escrowed to Maturity, 9.000% 05/01/07 25,000 26,152 NC Municipal Power Agency, Catawba No. 1, Series 1986, Escrowed to Maturity, 5.000% 01/01/20 1,670,000 1,802,581 NV Henderson: Catholic Healthcare West, Series 1999 A, Pre-refunded 07/01/10, 6.750% 07/01/20 440,000 491,889 St. Rose Dominican Hospital, Series 1998 A, Pre-refunded 07/01/08, 5.375% 07/01/26 55,000 56,968 NY New York City, Series 1997 A, Pre-refunded 08/01/06, 7.000% 08/01/07 80,000 81,643 RI State Health & Educational Building, Hospital Financing Lifespan, Series 2002, Pre-refunded 05/15/12, 6.375% 08/15/21 435,000 493,673 TN Shelby County Health, Educational & Housing Facilities Board, Open Arms Development Centers: Series 1992 A, Pre-refunded 08/01/07, 9.750% 08/01/19 390,000 432,132 Series 1992 C, Pre-refunded 08/01/12, 9.750% 08/01/19 395,000 437,672 PAR ($) VALUE ($) ---------------------------------------------------------- TX Texas Tech University, Series 1999, Pre-refunded 02/15/09, Insured: AMBAC 5.000% 02/15/29 2,500,000 2,582,475 ---------- Refunded/Escrowed Total 15,875,297 ---------- TOBACCO - 2.1% CA Golden State Tobacco Securitization Corp., Series 2003 A-1, 6.250% 06/01/33 750,000 811,695 CA Tobacco Securitization Authority, Series 2006, (c) 06/01/46 6,000,000 513,300 NY Tsasc, Inc., Series 2006 1, 5.125% 06/01/42 750,000 727,830 SC Tobacco Settlement Financing Corp., Series 2001 B, 6.375% 05/15/28 400,000 426,456 WI Badger Tobacco Asset Securitization Corp., Series 2002, 6.375% 06/01/32 250,000 267,497 ---------- Tobacco Total 2,746,778 ---------- OTHER TOTAL 21,281,736 ---------- ---------------------------------------------------------- OTHER REVENUE - 2.2% HOTELS - 0.6% MA Boston Industrial Development Finance Authority, Crosstown Center Project, Series 2002, AMT, 6.500% 09/01/35 285,000 289,703 NJ Middlesex County Improvement Authority, Heldrich Associates LLC, Series 2005 B, 6.250% 01/01/37 500,000 506,670 ---------- Hotels Total 796,373 ---------- RECREATION - 1.2% CA Cabazon Band Mission Indians, Series 2004: 8.375% 10/01/15(d) 105,000 106,308 8.750% 10/01/19(d) 360,000 365,897 DC District of Columbia, Smithsonian Institute, Series 1997, 5.000% 02/01/28 1,000,000 1,008,870 ---------- Recreation Total 1,481,075 ---------- RETAIL - 0.4% NY New York City Industrial Development Agency, IAC/Interactive Corp., Series 2005, 5.000% 09/01/35 500,000 501,430 ---------- Retail Total 501,430 ---------- OTHER REVENUE TOTAL 2,778,878 ---------- ---------------------------------------------------------- See Accompanying Notes to Financial Statements. 9 [GRAPHIC] INVESTMENT PORTFOLIO (CONTINUED) May 31, 2006 (Unaudited) MUNICIPAL BONDS (CONTINUED) PAR ($) VALUE ($) ------------------------------------------------------- RESOURCE RECOVERY - 3.4% DISPOSAL - 1.6% FL Lee County Solid Waste Systems, Series 2006 A, AMT, Insured: AMBAC 5.000% 10/01/17 1,500,000 1,563,870 OH Solid Waste, Republic Services, Series 2004, AMT, 4.250% 04/01/33 500,000 480,615 --------- Disposal Total 2,044,485 --------- RESOURCE RECOVERY - 1.8% MA Industrial Finance Agency, Ogden Haverhill Project, Series 1998 A, AMT, 5.450% 12/01/12 1,250,000 1,296,862 PA Delaware County Industrial Development Authority, BFI, Series 1997 A, 6.100% 07/01/13 1,000,000 1,042,630 --------- Resource Recovery Total 2,339,492 --------- RESOURCE RECOVERY TOTAL 4,383,977 --------- ------------------------------------------------------- TAX-BACKED - 43.6% LOCAL APPROPRIATED - 3.7% CA Compton, Civic Center & Capital Improvements, Series 1997 A, 5.500% 09/01/15 500,000 517,230 CA Los Angeles County, Series 1999 A, Insured: AMBAC (c) 08/01/21 2,135,000 1,024,544 MN Andover Economic Development Authority, Andover Community Center, Series 2004, 5.000% 02/01/19 600,000 618,372 MN Hibbing Economic Development Authority, Series 1997, 6.400% 02/01/12 335,000 337,184 MO St. Louis Industrial Development Authority, St. Louis Convention Center, Series 2000, Insured: AMBAC (c) 07/15/18 300,000 171,534 SC Berkeley County School District, Series 2003, 5.000% 12/01/28 500,000 502,485 SC Dorchester County School District No. 2, Series 2004, 5.250% 12/01/29 250,000 256,740 PAR ($) VALUE ($) ---------------------------------------------------------- SC Lancaster Educational Assistance Program, Lancaster County School District, Series 2004, 5.000% 12/01/26 550,000 552,684 SC Laurens County School District No. 55, Series 2005, 5.250% 12/01/30 350,000 357,112 SC Newberry County School District, Series 2005, 5.000% 12/01/30 350,000 348,530 --------- Local Appropriated Total 4,686,415 --------- LOCAL GENERAL OBLIGATIONS - 13.6% CA Modesto High School District, Series 2002 A, Insured: FGIC (c) 08/01/19 1,350,000 727,596 CA Pomona Unified School District, Series 2000 A, Insured: MBIA 6.450% 08/01/22 1,000,000 1,233,460 CA Vallejo City Unified School District, Series 2002 A, Insured: MBIA 5.900% 08/01/25 2,000,000 2,337,380 CA West Contra Costa Unified School District, Series 2001 B, Insured: MBIA 6.000% 08/01/24 250,000 298,960 CO Highlands Ranch Metropolitan District No. 2, Series 1996, Insured: CGIC 6.500% 06/15/11 650,000 729,846 IL Chicago: Series 1995 A-2, Insured: AMBAC 6.250% 01/01/14 1,480,000 1,685,542 Series 1999, Insured: FGIC 5.500% 01/01/23 1,000,000 1,125,960 IL Hoffman Estates Park District, Debt Certificates, Series 2004, 5.000% 12/01/16 500,000 517,570 IL St. Clair County, Public Building Commission: Series 1997 B, Insured: FGIC (c) 12/01/13 2,000,000 1,456,080 Series 1999, Insured: FGIC (c) 10/01/16 2,000,000 1,258,300 IL Will County School District No. 17, Series 2001, Insured: AMBAC 8.500% 12/01/15 1,400,000 1,866,690 MI St. John's Public School, Series 1998, Insured: FGIC 5.100% 05/01/25 1,000,000 1,083,570 See Accompanying Notes to Financial Statements. 10 [GRAPHIC] INVESTMENT PORTFOLIO (CONTINUED) May 31, 2006 (Unaudited) MUNICIPAL BONDS (CONTINUED) PAR ($) VALUE ($) -------------------------------------------------------- TAX-BACKED (CONTINUED) LOCAL GENERAL OBLIGATIONS (CONTINUED) NY New York City, Series 2003 J, 5.500% 06/01/18 500,000 536,565 OH Kenston Local School District, Series 2003, Insured: MBIA 5.000% 12/01/23 1,000,000 1,036,730 TX Brenham, Series 2001, Insured: FSA 5.375% 08/15/16 1,040,000 1,112,488 TX Dallas County Flood Control District, Series 2002, 7.250% 04/01/32 500,000 526,965 ---------- Local General Obligations Total 17,533,702 ---------- SPECIAL NON-PROPERTY TAX - 6.5% FL Tampa Sports Authority, Tampa Bay Arena Project, Series 1995, Insured: MBIA 5.750% 10/01/25 1,000,000 1,158,970 IL Bolingbrook, Sales Tax Revenue, Series 2005, (f) 01/01/24 (6.250% 01/01/08) 250,000 224,342 KS Wyandotte County, Series 2005, 5.000% 12/01/20 100,000 102,355 NJ Economic Development Authority, Cigarette Tax, Series 2004, 5.750% 06/15/29 500,000 530,675 NM Dona Ana County, Series 1998, Insured: AMBAC 5.500% 06/01/15 1,000,000 1,104,720 NY Local Government Assistance Corp., Series 1993 E, 5.000% 04/01/21 3,000,000 3,184,920 NY New York City Transitional Finance Authority, Series 1998 A, 5.000% 11/15/26 1,960,000 2,031,442 ---------- Special Non-Property Tax Total 8,337,424 ---------- SPECIAL PROPERTY TAX - 5.3% CA Huntington Beach Community Facilities District, Grand Coast Resort, Series 2001-1, 6.450% 09/01/31 300,000 320,067 CA Lincoln Community Facilities District No. 2003-1, Series 2004, 5.550% 09/01/18 500,000 518,105 CA Oakdale Public Financing Authority, Central City Redevelopment Project, Series 2004, 5.375% 06/01/33 500,000 513,070 FL Celebration Community Development District, Series 2003 A, 6.400% 05/01/34 240,000 251,513 PAR ($) VALUE ($) --------------------------------------------------------- FL Double Branch Community Development District, Series 2002 A, 6.700% 05/01/34 325,000 350,308 FL Seven Oaks Community Development District: Series 2004 A, 5.875% 05/01/35 495,000 503,143 Series 2004 B, 5.000% 05/01/09 195,000 194,828 FL West Villages Improvement District, Series 2006, 5.500% 05/01/37 500,000 501,975 FL Westridge Community Development District, Series 2005, 5.800% 05/01/37 500,000 497,290 GA Atlanta, Eastside Project, Series 2005 A, AMT, 5.625% 01/01/16 400,000 408,608 IL Chicago, Pilsen Redevelopment, Series 2004 B, 6.750% 06/01/22 610,000 627,037 IL Lincolnshire Special Services Area No. 1, Sedgebrook Project, Series 2004, 6.250% 03/01/34 225,000 232,852 IL Plano Special Service Area No.4, Series 2005 5-B, 6.000% 03/01/35 750,000 727,050 IN City of Portage, Series 2006, 5.000% 01/15/27 105,000 102,344 MO Fenton, Tax Increment Revenue, Series 2006, 4.500% 04/01/21 500,000 499,435 MO Riverside, L-385 Levee Project, Series 2004, 5.250% 05/01/20 500,000 508,165 --------- Special Property Tax Total 6,755,790 --------- STATE APPROPRIATED - 10.9% IN Office Building Commission, Women's Prison, Series 1995 B, Insured: AMBAC 6.250% 07/01/16 2,820,000 3,240,011 KY Property & Buildings Commission, Series 2001, 5.500% 11/01/14 455,000 490,522 NY Dormitory Authority: City University, Series 1993 A, 5.750% 07/01/18 5,000,000 5,561,200 State University, Series 2000 C, Insured: FSA 5.750% 05/15/17 1,000,000 1,135,530 See Accompanying Notes to Financial Statements. 11 [GRAPHIC] INVESTMENT PORTFOLIO (CONTINUED) May 31, 2006 (Unaudited) MUNICIPAL BONDS (CONTINUED) PAR ($) VALUE ($) ------------------------------------------------------- TAX-BACKED (CONTINUED) STATE APPROPRIATED (CONTINUED) NY Urban Development Corp., Series 1995, 5.600% 04/01/15 1,000,000 1,087,630 UT Building Ownership Authority, Facilities Master Lease, Series 1998 C, Insured: FSA 5.500% 05/15/19 1,750,000 1,951,355 WV Building Commission, Series 1998 A, Insured: AMBAC 5.375% 07/01/18 500,000 545,295 ---------- State Appropriated Total 14,011,543 ---------- STATE GENERAL OBLIGATIONS - 3.6% CA State, Series 1995, 5.750% 03/01/19 70,000 70,603 MA State, Series 1998 C, 5.250% 08/01/17 1,000,000 1,087,560 PR Commonwealth of Puerto Rico Aqueduct & Sewer Authority: Series 1995, Insured: MBIA: 6.250% 07/01/12 1,000,000 1,126,710 6.250% 07/01/13 750,000 854,655 Series 2001, Insured: FSA 5.500% 07/01/17 1,000,000 1,110,940 Series 2004 A, 5.000% 07/01/30 415,000 428,147 ---------- State General Obligations Total 4,678,615 ---------- TAX-BACKED TOTAL 56,003,489 ---------- ------------------------------------------------------- TRANSPORTATION - 10.4% AIR TRANSPORTATION - 2.8% IN Indianapolis Airport Authority, FedEx Corp., Series 2004, AMT, 5.100% 01/15/17 250,000 257,388 NC Charlotte Douglas International Airport, US Airways, Inc., Series 2000, AMT, 7.750% 02/01/28 500,000 526,765 NJ Economic Development Authority, Continental Airlines, Inc., Series 1999, AMT, 6.250% 09/15/19 900,000 890,442 NY New York City Industrial Development Agency, Terminal One Group-JFK International Airport, Series 2005, AMT, 5.500% 01/01/21 250,000 264,487 PAR ($) VALUE ($) ---------------------------------------------------------- NY Port Authority of New York & New Jersey, JFK International Air Terminal, Series 1997, AMT, Insured: MBIA 6.250% 12/01/08 1,000,000 1,053,340 TX Alliance Airport Authority, Inc. Special Facilities, Federal Express Corp., Series 2006, AMT, 4.850% 04/01/21 250,000 246,835 TX Houston Industrial Development Corp., United Parcel Service, Series 2002, AMT, 6.000% 03/01/23 365,000 377,950 --------- Air Transportation Total 3,617,207 --------- AIRPORTS - 0.9% MA Port Authority, Series 1999, IFRN, Insured: FGIC 7.208% 07/01/29(g) 1,000,000 1,145,000 --------- Airports Total 1,145,000 --------- TOLL FACILITIES - 4.4% CA Foothill/Eastern Transportation Corridor Agency, Series 1995 A, 5.000% 01/01/35(h) 1,000,000 976,180 CA San Joaquin Hills Transportation Corridor Agency, Series 1997 A, Insured: MBIA (c) 01/15/15 2,000,000 1,375,260 CO Northwest Parkway Public Highway Authority, Series 2001 D, 7.125% 06/15/41 500,000 460,660 NH Turnpike Systems, Series 1991 C, IFRN, Insured: FGIC 9.780% 11/01/17(g) 1,000,000 1,064,020 NY Thruway Authority, Second General Highway & Bridge Trust Fund, Series 2005 B, Insured: AMBAC 5.500% 04/01/20 1,540,000 1,736,242 --------- Toll Facilities Total 5,612,362 --------- TRANSPORTATION - 2.3% IL Regional Transportation Authority, Series 1994 C, Insured: FGIC 7.750% 06/01/20 1,000,000 1,341,120 NV Department of Business & Industry, Las Vegas Monorail Project, Series 2000: 7.375% 01/01/30 250,000 257,448 7.375% 01/01/40 250,000 256,280 See Accompanying Notes to Financial Statements. 12 [GRAPHIC] INVESTMENT PORTFOLIO (CONTINUED) May 31, 2006 (Unaudited) MUNICIPAL BONDS (CONTINUED) PAR ($) VALUE ($) ----------------------------------------------------------- TRANSPORTATION (CONTINUED) TRANSPORTATION (CONTINUED) OH Toledo-Lucas County Port Authority, CSX Transportation, Inc., Series 1992, 6.450% 12/15/21 1,000,000 1,132,090 ---------- Transportation Total 2,986,938 ---------- TRANSPORTATION TOTAL 13,361,507 ---------- ----------------------------------------------------------- UTILITIES - 17.0% INDEPENDENT POWER PRODUCERS - 1.1% NY Suffolk County Industrial Development Authority, Nissequogue Cogeneration Partners Facilities, Series 1998, AMT, 5.500% 01/01/23 550,000 506,396 PA Carbon City Industrial Development Authority, Panther Creek Partners Project, Series 2000, AMT, 6.650% 05/01/10 110,000 116,269 PA Economic Development Financing Authority, Colver Project, Series 2005 G, AMT, 5.125% 12/01/15 425,000 415,038 PR Commonwealth of Puerto Rico Industrial, Tourist, Educational, Medical & Environmental Cogeneration Facilities, AES Project, Series 2000, AMT, 6.625% 06/01/26 320,000 348,950 ---------- Independent Power Producers Total 1,386,653 ---------- INVESTOR OWNED - 10.7% CA Chula Vista Industrial Development Authority, San Diego Gas & Electric Co., Series 1996 B, AMT, 5.500% 12/01/21 625,000 666,131 FL Polk County Industrial Development Authority, Tampa Electric Co., Series 1996, AMT, 5.850% 12/01/30 500,000 509,780 IN Petersburg, Indiana Power & Light Co., Series 1993 B, Insured: MBIA 5.400% 08/01/17 2,500,000 2,717,150 MI Strategic Fund, Detroit Edison Co., Series 1998 A, AMT, Insured: MBIA 5.550% 09/01/29 3,000,000 3,132,060 PAR ($) VALUE ($) ------------------------------------------------------- MS Business Finance Corp., Systems Energy Resources, Series 1998, 5.875% 04/01/22 1,000,000 1,006,120 MT Forsyth: Northwestern Corp., Series 2006, Insured: AMBAC 4.650% 08/01/23 500,000 500,290 Portland General, Series 1998 A, 5.200% 05/01/33 150,000 154,376 NV Clark County Industrial Development Authority, Nevada Power Co.: Series 1995 B, AMT, 5.900% 10/01/30 250,000 250,000 Series 1997 A, AMT, 5.900% 11/01/32 250,000 249,988 OH Air Quality Development Authority, Cleveland Electric Illuminating Co., Series 2002 A, 6.000% 12/01/13 650,000 673,393 PA Economic Development Financing Authority, Reliant Energy, Inc., Series 2001 A, AMT, 6.750% 12/01/36 200,000 214,058 TX Brazos River Authority, TXU Energy Co., LLC: Series 1999, AMT, 7.700% 04/01/33 250,000 291,687 Series 2001 C, AMT, 5.750% 05/01/36 100,000 105,758 Series 2003 C, AMT, 6.750% 10/01/38 270,000 303,164 TX Matagorda County Navigation District No. 1, Houston Light & Power Co., Series 1997, AMT, Insured: AMBAC 5.125% 11/01/28 2,000,000 2,082,680 WY Campbell County, Black Hills Power, Inc., Series 2004, 5.350% 10/01/24 500,000 514,805 WY Converse County, PacifiCorp, Series 1988, 3.900% 01/01/14 500,000 475,925 ---------- Investor Owned Total 13,847,365 ---------- JOINT POWER AUTHORITY - 3.7% MA Municipal Wholesale Electric Co., Power Supply System, Project 6-A, Series 2001, Insured: MBIA 5.250% 07/01/14 1,000,000 1,070,490 NC Eastern Municipal Power Agency, Series 2003 F, 5.500% 01/01/16 285,000 302,237 See Accompanying Notes to Financial Statements. 13 [GRAPHIC] INVESTMENT PORTFOLIO (CONTINUED) May 31, 2006 (Unaudited) MUNICIPAL BONDS (CONTINUED) PAR ($) VALUE ($) --------------------------------------------------- UTILITIES (CONTINUED) JOINT POWER AUTHORITY (CONTINUED) NC Municipal Power Agency, Catawba Electric No. 1: Series 1998 A, Insured: MBIA 5.500% 01/01/15 640,000 700,864 Series 2003 A, Insured: MBIA 5.250% 01/01/18 2,500,000 2,652,475 ----------- Joint Power Authority Total 4,726,066 ----------- WATER & SEWER - 1.5% MS V Lakes Utility District, Series 1994, 8.250% 07/15/24(i) 135,000 106,767 WA King County, Series 1999, Insured: FGIC 5.250% 01/01/30 1,750,000 1,813,683 ----------- Water & Sewer Total 1,920,450 ----------- UTILITIES TOTAL 21,880,534 ----------- TOTAL MUNICIPAL BONDS (cost of $178,981,797) 184,650,547 ----------- MUNICIPAL PREFERRED STOCKS -2.0% SHARES --------------------------------------------------- HOUSING - 2.0% MULTI-FAMILY - 2.0% Charter Mac Equity Issuer Trust, AMT: 6.300% 04/30/19(d) 500,000 538,730 Series 2000, 7.600% 11/30/10(d) 500,000 554,115 GMAC Municipal Mortgage Trust, AMT, 5.600% 10/31/39(d) 500,000 509,970 Munimae TE Bond Subsidiary LLC, Series 2005 C-3, AMT, 5.500% 11/29/49(d) 1,000,000 1,002,890 --------- Multi-Family Total 2,605,705 --------- HOUSING TOTAL 2,605,705 --------- TOTAL MUNICIPAL PREFERRED STOCKS (cost of $2,500,000) 2,605,705 --------- INVESTMENT COMPANY - 0.0% --------------------------------------------------- Dreyfus Tax-Exempt Cash Management Fund 949 949 --------- TOTAL INVESTMENT COMPANY (cost of $949) 949 --------- SHORT-TERM OBLIGATIONS - 0.8% PAR ($) VALUE ($) --------------------------------------------------------- VARIABLE RATE DEMAND NOTES (J) - 0.8% FL Pinellas County Health Facility Authority, All Childrens Hospital, Series 1985, LOC: Wachovia Bank N.A. 3.600% 12/01/15 200,000 200,000 MN Center City Health Care Facilities, Hazelden Foundation, Series 2005, LOC: Bank of New York 3.580% 11/01/35 200,000 200,000 MN Mankato, Bethany Lutheran College, Inc., Series 2000 B, LOC: Wells Fargo Bank 3.630% 11/01/15 200,000 200,000 WY Uinta County, Chevron Corp., Series 1992, 3.540% 12/01/22 400,000 400,000 ----------- VARIABLE RATE DEMAND NOTES TOTAL 1,000,000 ----------- TOTAL SHORT-TERM OBLIGATIONS (cost of $1,000,000) 1,000,000 ----------- TOTAL INVESTMENTS - 146.5% 188,257,201 ----------- (cost of $182,482,746) (k) AUCTION PREFERRED SHARES PLUS CUMULATIVE UNPAID DISTRIBUTIONS - (46.7)% (60,016,603) OTHER ASSETS & LIABILITIES, NET - 0.2% 241,540 ----------- NET ASSETS - 100.0% 128,482,138 ----------- See Accompanying Notes to Financial Statements. 14 [GRAPHIC] INVESTMENT PORTFOLIO (CONTINUED) May 31, 2006 (Unaudited) NOTES TO INVESTMENT PORTFOLIO: -------------------------------------------------------------------------------- (a)Security purchased on a delayed delivery basis. (b)The issuer has filed for bankruptcy protection under Chapter 11, and is in default of certain debt covenants. Income is not being accrued. At May 31, 2006, the value of this security represents less than 0.1% of net assets. (c)Zero coupon bond. (d)Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At May 31, 2006, these securities, which did not include any illiquid securities except the following, amounted to $3,299,595, which represents 2.6% of net assets. Acquisition Security Date Par Cost Value ------------------------------------------------------------ Resolution Trust Corp., Pass- Through Certificates, Series 1993 A, 8.500% 12/01/16 08/27/93 $227,741 $232,276 $221,685 (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 principal and interest. (f)Step bond. This security is currently not paying a coupon. Shown parenthetically is the interest rate to be paid and the date the Trust will begin accruing at this rate. (g)The interest rate shown on floating rate or variable rate securities reflects the rate at May 31, 2006. (h)Security pledged as collateral for open futures contracts. (i)The issuer is in default of certain debt covenants. Income is being accrued. At May 31, 2006, the value of this security represents 0.1% of net assets. (j)Variable rate demand notes. These securities are payable upon demand and are secured by letters of credit or other credit support agreements from banks. The interest rates change periodically and the interest rates shown reflect the rates at May 31, 2006. (k)Cost for federal income tax purposes is $182,173,386. At May 31, 2006, the Trust held the following open short futures contracts: Number of Aggregate Expiration Unrealized Type Contracts Value Face Value Date Appreciation -------------------------------------------------------------------- 10-Year U.S Treasury Notes 75 $7,880,859 $8,011,865 Jun-06 $131,006 U.S Treasury Bonds 60 6,384,375 6,770,430 Jun-06 386,055 -------- $517,061 -------- At May 31, 2006, the Trust held the following forward swap contract: NET NOTIONAL EFFECTIVE EXPIRATION COUNTER- RECEIVE FIXED VARIABLE UNREALIZED AMOUNT DATE DATE PARTY (PAY) RATE RATE DEPRECIATION ------------------------------------------------------------------------------ $17,000,000 08/08/06 08/08/16 JPMorgan (Pay) 4.158% BMA $(78,525) Chase Index Bank At May 31, 2006, the composition of the Trust by revenue source is as follows: % OF HOLDINGS BY REVENUE SOURCE NET ASSETS -------------------------------------------- Tax-Backed 43.6% Health Care 26.6 Utilities 17.0 Other 16.6 Housing 16.0 Transportation 10.4 Education 6.8 Resource Recovery 3.4 Industrials 3.1 Other Revenue 2.2 Investment Company --* Short-Term Obligations 0.8 Auction Preferred Shares (46.7) Other Assets and Liabilities, Net 0.2 ----- 100.0% ----- * Rounds to less than 0.1%. See Accompanying Notes to Financial Statements. 15 [GRAPHIC] INVESTMENT PORTFOLIO (CONTINUED) May 31, 2006 (Unaudited) Acronym Name ------------------------------------------------- AMBAC Ambac Assurance Corp. AMT Alternative Minimum Tax BMA Bond Market Association CGIC Capital Guaranty Insurance Corp. FGIC Financial Guaranty Insurance Co. FHA Federal Housing Administration FHLMC Federal Home Loan Mortgage Corp. FNMA Federal National Mortgage Association FSA Financial Security Assurance, Inc. GNMA Government National Mortgage Association MBIA MBIA Insurance Corp. QSBLF Qualified State Bond Loan Fund RAD Radian Asset Assurance, Inc. See Accompanying Notes to Financial Statements. 16 [GRAPHIC] STATEMENT OF ASSETS AND LIABILITIES May 31, 2006 (Unaudited) ASSETS: Investments, at cost $182,482,746 ------------ Investments, at value $188,257,201 Cash 91,706 Receivable for: Interest 2,964,179 Futures variation margin 42,188 Deferred Trustees' compensation plan 16,603 ------------ Total Assets 191,371,877 ------------ LIABILITIES: Net unrealized depreciation on swap contracts 78,525 Payable for: Investments purchased on a delayed delivery basis 2,064,128 Distributions -- common shares 563,941 Distributions -- preferred shares 11,575 Investment advisory fee 98,476 Pricing and bookkeeping fees 15,294 Custody fee 3,482 Chief compliance officer expenses (See Note 4) 716 Deferred Trustees' fees 16,603 Other liabilities 36,999 ------------ Total Liabilities 2,889,739 ------------ AUCTION PREFERRED SHARES (2,400 shares issued and outstanding at $25,000 per share) 60,000,000 ------------ COMPOSITION OF NET ASSETS APPLICABLE TO COMMON SHARES: Paid-in capital -- common shares $126,993,092 Undistributed net investment income 288,571 Accumulated net realized loss (5,012,516) Net unrealized appreciation on: Investments 5,774,455 Swap contracts (78,525) Futures contracts 517,061 ------------ Net assets at value applicable to 11,509,000 common shares of beneficial interest outstanding $128,482,138 ------------ Net asset value per share per common share $ 11.16 ------------ [GRAPHIC] STATEMENT OF OPERATIONS For the Six Months Ended May 31, 2006 (Unaudited) INVESTMENT INCOME: Interest $ 5,194,598 ----------- EXPENSES: Investment advisory fee 612,634 Transfer agent fee 23,504 Pricing and bookkeeping fees 64,538 Trustees' fees 7,408 Preferred shares remarketing commissions 74,880 Custody fee 6,999 Chief compliance officer expenses (See Note 4) 2,231 Other expenses 68,773 ----------- Total Expenses 860,967 Fees and expenses waived or reimbursed by Investment Advisor (18,850) Custody earnings credit (978) ----------- Net Expenses 841,139 ----------- Net Investment Income 4,353,459 ----------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS, SWAP CONTRACTS AND FUTURES CONTRACTS: Net realized gain on: Investments 782,418 Futures contracts 372,532 ----------- Net realized gain 1,154,950 ----------- Net change in unrealized appreciation (depreciation) on: Investments (1,415,850) Swap contracts (78,525) Futures contracts 512,776 ----------- Net change in unrealized appreciation (depreciation) (981,599) ----------- Net Gain 173,351 ----------- Net Increase in Net Assets from Operations 4,526,810 ----------- LESS DISTRIBUTIONS DECLARED TO PREFERRED SHAREHOLDERS: From net investment income (971,139) ----------- Net Increase in Net Assets from Operations Applicable to Common Shares $ 3,555,671 ----------- See Accompanying Notes to Financial Statements. 17 [GRAPHIC] STATEMENT OF CHANGES IN NET ASSETS (UNAUDITED) SIX MONTHS ENDED YEAR ENDED MAY 31, NOVEMBER 30, 2006 2005 INCREASE (DECREASE) IN NET ASSETS: ------------ ------------ ------------------------------------ OPERATIONS: Net investment income $ 4,353,459 $ 8,608,973 Net realized gain on investments and futures contracts 1,154,950 1,361,892 Net change in unrealized appreciation (depreciation) on investments, swap contracts and futures contracts (981,599) (830,789) ------------ ------------ Net Increase from Operations 4,526,810 9,140,076 ------------ ------------ LESS DISTRIBUTIONS DECLARED TO PREFERRED SHAREHOLDERS: From net investment income (971,139) (1,333,536) ------------ ------------ Increase in Net Assets from Operations Applicable to Common Shares 3,555,671 7,806,540 ------------ ------------ LESS DISTRIBUTIONS DECLARED TO COMMON SHAREHOLDERS: From net investment income (3,475,718) (7,561,413) ------------ ------------ Total Increase in Net Assets Applicable to Common Shares 79,953 245,127 NET ASSETS APPLICABLE TO COMMON SHARES: Beginning of period 128,402,185 128,157,058 ------------ ------------ End of period (including undistributed net investment income of $288,571 and $381,969, respectively) $128,482,138 $128,402,185 ------------ ------------ NUMBER OF TRUST SHARES: Common Shares: Outstanding at end of period 11,509,000 11,509,000 ---------- ---------- Preferred Shares: Outstanding at end of period 2,400 2,400 ---------- ---------- See Accompanying Notes to Financial Statements. 18 [GRAPHIC] FINANCIAL HIGHLIGHTS Selected data for a share outstanding throughout each period is as follows (common shares unless otherwise noted): (UNAUDITED) SIX MONTHS ENDED YEAR ENDED NOVEMBER 30, MAY 31, ------------------------------------------------------ 2006 2005 2004 2003 2002 2001 ---------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 11.16 $ 11.14 $ 11.47 $ 11.04 $ 11.06 $ 10.55 -------- -------- -------- -------- -------- -------- INCOME FROM INVESTMENT OPERATIONS: Net investment income (a) 0.38 0.75 0.74 0.74 0.78 (b) 0.75 Net realized and unrealized gain (loss) on investments, swap contracts and futures contracts -- 0.05 (0.33) 0.42 (0.05)(b) 0.52 -------- -------- -------- -------- -------- -------- Total from Investment Operations 0.38 0.80 0.41 1.16 0.73 1.27 -------- -------- -------- -------- -------- -------- LESS DISTRIBUTIONS DECLARED TO PREFERRED SHAREHOLDERS: From net investment income (0.08) (0.12) (0.06) (0.05) (0.08) (0.16) -------- -------- -------- -------- -------- -------- Total from Investment Operations Applicable to Common Shareholders 0.30 0.68 0.35 1.11 0.65 1.11 -------- -------- -------- -------- -------- -------- LESS DISTRIBUTIONS DECLARED TO COMMON SHAREHOLDERS: From net investment income (0.30) (0.66) (0.68) (0.68) (0.67) (0.60) -------- -------- -------- -------- -------- -------- NET ASSET VALUE, END OF PERIOD $ 11.16 $ 11.16 $ 11.14 $ 11.47 $ 11.04 $ 11.06 -------- -------- -------- -------- -------- -------- Market price per share -- common shares $ 10.30 $ 10.40 $ 10.01 $ 10.63 $ 10.09 $ 10.87 -------- -------- -------- -------- -------- -------- Total return -- based on market value -- common shares (c) 1.89%(d)(e) 10.68%(d) 0.64% 12.48% (1.10)% 29.28% -------- -------- -------- -------- -------- -------- RATIOS TO AVERAGE NET ASSETS/ SUPPLEMENTAL DATA: Expenses (f)(g) 1.31%(h) 1.30% 1.29% 1.31% 1.28% 1.28% Net investment income before preferred stock dividend (f)(g) 6.77%(h) 6.64% 6.55% 6.57% 7.06%(b) 6.80% Net investment income after preferred stock dividend (f)(g) 5.26%(h) 5.61% 6.06% 6.12% 6.38%(b) 5.38% Waiver/reimbursement 0.03%(h) --%(i) -- -- -- -- Portfolio turnover rate 11%(e) 16% 15% 13% 10% 31% Net assets, end of period (000's) -- common shares $128,482 $128,402 $128,157 $131,966 $127,050 $127,273 (a)Per share data was calculated using average shares outstanding during the period. (b)Effective December 1, 2001, the Trust adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began accreting market discount on all debt securities. The effect of this change for the year ended November 30, 2002, was to increase net investment income per share by $0.01, increase net realized and unrealized loss per share by $0.01, increase the ratio of net investment income to average net assets from 6.98% to 7.06% and increase the ratio of net investment income (adjusted for dividend payments to preferred shareholders) from 6.30% to 6.38%. Per share data and ratios for periods prior to November 30, 2002 have not been restated to reflect this change in presentation. (c)Total return at market value assuming all distributions reinvested at prices calculated in accordance with the Dividend Reinvestment Plan. (d)Had the Investment Advisor and/or any of its affiliates not waived or reimbursed a portion of expenses, total return would have been reduced. (e)Not annualized. (f)The benefits derived from custody credits had an impact of less than 0.01%. (g)Ratios reflect average net assets available to common shares only. (h)Annualized. (i)Rounds to less than 0.01%. See Accompanying Notes to Financial Statements. 19 [GRAPHIC] FINANCIAL HIGHLIGHTS (CONTINUED) Selected data for a share outstanding throughout each period is as follows (common shares unless otherwise noted): YEAR PERIOD ENDED ENDED YEAR ENDED DECEMBER 31, NOVEMBER 30, NOVEMBER 30, ---------------------------------------- 2000 1999(A) 1998 1997 1996 1995 ----------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 10.31 $ 11.49 $ 11.43 $ 10.87 $ 11.05 $ 9.93 -------- -------- -------- -------- -------- -------- INCOME FROM INVESTMENT OPERATIONS: Net investment income 0.81(b) 0.58 0.60 0.62 0.63 0.64 Net realized and unrealized gain (loss) on investments and futures contracts 0.27 (1.12) 0.07 0.58 (0.19) 1.11 -------- -------- -------- -------- -------- -------- Total from Investment Operations 1.08 (0.54) 0.67 1.20 0.44 1.75 -------- -------- -------- -------- -------- -------- LESS DISTRIBUTIONS DECLARED TO PREFERRED SHAREHOLDERS: From net investment income (0.22) (0.05) -- -- -- -- -------- -------- -------- -------- -------- -------- Total from Investment Operations Applicable to Common Shareholders 0.86 (0.59) 0.67 1.20 0.44 1.75 -------- -------- -------- -------- -------- -------- LESS DISTRIBUTIONS DECLARED TO COMMON SHAREHOLDERS: From net investment income (0.60) (0.52) (0.61) (0.64) (0.62) (0.63) In excess of net investment income -- -- --(c) -- -- -- -------- -------- -------- -------- -------- -------- Total Distributions Declared to Common Shareholders (0.60) (0.52) (0.61) (0.64) (0.62) (0.63) -------- -------- -------- -------- -------- -------- LESS SHARE TRANSACTIONS: Commission and offering costs -- preferred shares (0.02) (0.07) -- -- -- -- -------- -------- -------- -------- -------- -------- NET ASSET VALUE, END OF PERIOD $ 10.55 $ 10.31 $ 11.49 $ 11.43 $ 10.87 $ 11.05 -------- -------- -------- -------- -------- -------- Market price per share -- common shares $ 8.92 $ 9.06 $ 11.19 $ 10.56 $ 10.13 $ 9.88 -------- -------- -------- -------- -------- -------- Total return -- based on market value -- common shares (d) 5.20% (14.64)%(e) 11.94% 10.76% 9.06% 13.87% -------- -------- -------- -------- -------- -------- RATIOS TO AVERAGE NET ASSETS/ SUPPLEMENTAL DATA: Expenses (f) 1.31%(g) 1.03%(g)(h) 0.77% 0.83% 0.88% 1.08% Net investment income before preferred stock dividend (f) 7.91%(g) 5.75%(g)(h) 5.24% 5.63% 5.80% 6.08% Net investment income after preferred stock dividend (f) 5.80%(g) 5.26%(g)(h) -- -- -- -- Portfolio turnover rate 23% 25%(e) 24% 21% 20% 37% Net assets, end of period (000's) -- common shares $121,366 $118,660 $132,242 $131,503 $125,125 $127,118 (a)The Trust changed its fiscal year end from December 31 to November 30. (b)The per share net investment income amount does not reflect the period's reclassification of differences between book and tax basis net investment income. (c)Rounds to less than $0.01 per share. (d)Total return at market value assuming all distributions reinvested at prices calculated in accordance with the Dividend Reinvestment Plan. (e)Not annualized. (f)The benefits derived from custody credits had an impact of less than 0.01%. (g)Ratios reflect average net assets available to common shares only. (h)Annualized. See Accompanying Notes to Financial Statements. 20 [GRAPHIC] NOTES TO FINANCIAL STATEMENTS May 31, 2006 (Unaudited) NOTE 1. ORGANIZATION Colonial Investment Grade 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. INVESTMENT GOAL The Trust seeks as high a level of after-tax return as is consistent with prudent risk, by pursuing current income generally exempt from ordinary federal income tax and opportunities for long-term appreciation from a portfolio primarily invested in investment grade municipal bonds. TRUST SHARES The Trust may issue an unlimited number of common shares. On August 26, 1999, the Trust issued 2,400 Auction Preferred Shares ("APS"). NOTE 2. SIGNIFICANT ACCOUNTING POLICIES USE OF ESTIMATES The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. The following is a summary of significant accounting policies consistently followed by the Trust in the preparation of its financial statements. SECURITY VALUATION Debt securities generally are valued by pricing services approved by the Trust's Board of Trustees, based upon market transactions for normal, institutional-size trading units of similar securities. The services may use various pricing techniques which take into account appropriate factors such as yield, quality, coupon rate, maturity, type of issue, trading characteristics and other data, as well as broker quotes. Debt securities for which quotations are readily available are valued at an over-the-counter or exchange bid quotation. Certain debt securities, which tend to be more thinly traded and of lesser quality, are priced based on fundamental analysis of the financial condition of the issuer and the estimated value of any collateral. Valuations developed through pricing techniques may vary from the actual amounts realized upon sale of the securities, and the potential variation may be greater for those securities valued using fundamental analysis. Short-term debt obligations maturing within 60 days are valued at amortized cost, which approximates market value. Investments in open-end investment companies are valued at net asset value. Futures contracts are valued at the settlement price established each day by the board of trade or exchange on which they are traded. Investments for which market quotations are not readily available, or that have quotations which management believes are not appropriate, are valued at fair value as determined in good faith under consistently applied procedures established by and under the general supervision of the Board of Trustees. If a security is valued at a "fair value", such value is likely to be different from the last quoted market price for the security. SECURITY TRANSACTIONS Security transactions are accounted for on the trade date. Cost is determined and gains (losses) are based upon the specific identification method for both financial statement and federal income tax purposes. FUTURES CONTRACTS The Trust may invest in municipal and U.S. Treasury futures contracts. The Trust will 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 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 differing trading hours, or the temporary absence of a liquid market, for either the instrument or the underlying securities, or (3) an inaccurate prediction by Columbia Management Advisors, LLC of the future direction of interest rates. Any of these risks may involve amounts exceeding the variation margin recorded in the Trust's Statement of Assets and Liabilities at any given time. Upon entering into a futures contract, the Trust deposits cash or securities with the broker in an amount sufficient to meet the initial margin requirement. Subsequent payments are made or received by the Trust equal to the daily change in the contract value and are recorded as variation margin receivable or payable and offset in unrealized gains or losses. The Trust also identifies portfolio securities as segregated with the custodian in a separate account in an 21 [GRAPHIC] NOTES TO FINANCIAL STATEMENTS (continued) May 31, 2006 (Unaudited) amount equal to the futures contract. The Trust recognizes a realized gain or loss when the contract is closed or expires. SWAP CONTRACTS The Trust may engage in swap transactions such as interest rate, forward, total return or index swaps, consistent with its investment objective and policies to obtain a desired return at a lower cost than if the Trust had invested directly in the asset that yielded the desired return. Swaps involve the exchange by a Trust with another party of their respective commitments to pay or receive interest or total return throughout the lives of the agreements. The interest to be paid or received on swaps is included in net realized gain/(loss) on investments. Unrealized gains are reported as an asset and unrealized losses are reported as a liability on the Statement of assets and liabilities. A realized gain or loss is recorded upon termination of swap agreements and is equal to the difference between the Trust's basis in the swap and the proceeds from (or cost of) the closing transaction. Swap agreements are stated at fair value. Notional principal amounts are used to express the extent of involvement in these transactions, but the amounts potentially subject to credit risk are much smaller. If there is a default by the counterparty to a swap contract, a Trust will be limited to contractual remedies pursuant to the agreements related to the transaction. There is no assurance that the swap contract counterparties will be able to meet their obligations pursuant to the swap contracts or that, in the event of default, the Trust will succeed in pursuing contractual remedies. The Trust thus assumes the risk that it may be delayed in or prevented from obtaining payments owed to it pursuant to the swap contracts. The use of derivative instruments involves, to varying degrees, elements of market risk in excess of the amount recognized in the Statements of assets and liabilities. DELAYED DELIVERY SECURITIES The Trust may trade securities on other than normal settlement terms, including securities purchased or sold on a "when-issued" basis. 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. The Trust identifies cash or liquid portfolio securities as segregated with the custodian in an amount equal to the delayed delivery commitment. INCOME RECOGNITION Interest income is recorded on the accrual basis. Original issue discount is accreted to interest income over the life of the security with a corresponding increase in the cost basis. Premium and discount are amortized and accreted, respectively, on all debt securities. Dividend income is recorded on the ex-date. FEDERAL INCOME TAX STATUS The Trust intends to qualify each year as a "regulated investment company" under Subchapter M of the Internal Revenue Code, as amended, and will distribute substantially all of its taxable income, if any, for its tax year, and as such will not be subject to federal income taxes. In addition, the Trust intends to distribute in each calendar year substantially all of its net investment income, capital gains and certain other amounts, if any, such that the Trust should not be subject to federal excise tax. Therefore, no federal income or excise tax provision is recorded. DISTRIBUTIONS TO SHAREHOLDERS Distributions to common shareholders are recorded on the ex-date. Distributions to Auction Preferred shareholders are recorded daily and 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, 2006, was 3.52%. For the six months ended May 31, 2006, the Trust declared dividends to Auction Preferred shareholders amounting to $971,139, representing an average dividend rate of 3.26% per APS. NOTE 3. FEDERAL TAX INFORMATION The tax character of distributions paid during the year ended November 30, 2005 was as follows: Tax-Exempt Income $8,894,949 Ordinary Income -- Long-Term Capital Gains -- Unrealized appreciation and depreciation at May 31, 2006, based on cost of investments for federal income tax purposes, was: Unrealized appreciation $11,388,900 Unrealized depreciation (5,305,085) ----------- Net unrealized appreciation $ 6,083,815 ----------- The following capital loss carryforwards, determined as of November 30, 2005, may be available to reduce taxable income arising from future net realized gains on investments, if any, to the extent permitted by the Internal Revenue Code: YEAR OF CAPITAL LOSS EXPIRATION CARRYFORWARD ------------ -------------- 2008.... $ 543,740 2010.... 1,238,884 ---------- $1,782,624 ---------- 22 [GRAPHIC] NOTES TO FINANCIAL STATEMENTS (continued) May 31, 2006 (Unaudited) Capital loss carryforwards of $1,369,281 were utilized during the year ended November 30, 2005 for the Trust. NOTE 4. FEES AND COMPENSATION PAID TO AFFILIATES INVESTMENT ADVISORY FEE Columbia Management Advisors, LLC ("Columbia"), an indirect, wholly-owned subsidiary of Bank of America Corporation ("BOA"), is the investment advisor to the Trust and provides administrative and other services. Columbia receives a monthly investment advisory fee at the annual rate of 0.65% of the Trust's average weekly net assets, including assets applicable to the APS. Columbia has voluntarily agreed to reduce the investment advisory fee by the annual rate of 0.02% of the Trust's average weekly net assets, including assets applicable to the APS. Columbia, at its discretion, may revise or discontinue this arrangement any time. PRICING AND BOOKKEEPING FEES Columbia is responsible for providing pricing and bookkeeping services to the Trust under a pricing and bookkeeping agreement. Under a separate agreement (the "Outsourcing Agreement"), Columbia has delegated those functions to State Street Corporation ("State Street"). As a result, Columbia pays State Street the total fees collected under the pricing and bookkeeping agreement. Under its pricing and bookkeeping agreement with the Trust, Columbia receives an annual fee of $38,000 paid monthly plus an additional monthly fee based on the level of average daily net assets for the month; provided that during any 12-month period, the aggregate fee, exclusive of out-of-pocket expenses and charges, shall not exceed $140,000. The Trust also reimburses Columbia and State Street for out-of-pocket expenses and charges, including fees payable to third parties for pricing the Trust's portfolio securities and direct internal costs incurred by Columbia in connection with providing fund accounting oversight and monitoring and certain other services. For the six months ended May 31, 2006, the annualized effective pricing and bookkeeping fee rate for the Trust, inclusive of out-of-pocket expenses, was 0.068% of the Trust's average daily net assets. CUSTODY CREDITS The Trust has an agreement with its custodian bank under which custody fees may be reduced by balance credits. These credits are recorded as a reduction of total expenses on the Statement of operations. The Trust could have invested a portion of the assets utilized in connection with the expense offset arrangement in an income-producing asset if it had not entered into such an agreement. FEES PAID TO OFFICERS AND TRUSTEES All officers of the Trust, with the exception of the Trust's Chief Compliance Officer, are employees of Columbia or its affiliates and receive no compensation from the Trust. The Board of Trustees has appointed a Chief Compliance Officer to the Trust in accordance with federal securities regulations. The Trust, along with other affiliated funds, pays its pro-rata share of the expenses associated with the Chief Compliance Officer. The Trust's expenses for the Chief Compliance Officer will not exceed $15,000 per year. 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. OTHER Columbia provides certain services to the Trust related to Sarbanes-Oxley compliance. For the six months ended May 31, 2006, the Trust paid $1,222 to Columbia for such services. This amount is included in "Other expenses" on the Statement of operations. NOTE 5. PORTFOLIO INFORMATION For the six months ended May 31, 2006, the cost of purchases and proceeds from sales of securities, excluding short-term obligations, were $41,855,838 and $20,773,000, respectively. NOTE 6. PREFERRED SHARES The Trust currently has outstanding 2,400 APS. 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). 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 Agreement and in accordance with the guidelines prescribed by the APS' 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 APS. At May 31, 2006, there were no such restrictions on the Trust. 23 [GRAPHIC] NOTES TO FINANCIAL STATEMENTS (continued) May 31, 2006 (Unaudited) NOTE 7. DISCLOSURE OF SIGNIFICANT RISKS AND CONTINGENCIES CONCENTRATION OF CREDIT RISK The Trust holds investments that are insured by private insurers who guarantee the payment of principal and interest in the event of default or that are supported by a letter of credit. Each of the Trust's insurers is rated Aaa by Moody's Investor Services Inc., except for Radian Asset Assurance, Inc., which is rated Aa3. At May 31, 2006, private insurers who insure greater than 5% of the total investments of the Trust were as follows: % OF TOTAL INSURER INVESTMENTS ---------------------------------------------- MBIA Insurance Corp. 14.9% Ambac Assurance Corp. 10.6 Financial Guaranty Insurance Corp. 5.9 GEOGRAPHIC CONCENTRATION The Trust has greater than 5% of its total investments at May 31, 2006 invested in debt obligations issued by the states of California, Florida, Illinois, Massachusetts and New York, and their respective political subdivisions, agencies and public authorities. The Trust is more susceptible to economic and political factors adversely affecting issuers of the specific state's municipal securities than are municipal bond funds that are not concentrated to the same extent in these issuers. HIGH-YIELD SECURITIES Investing in high-yield securities may involve greater credit risk and considerations not typically associated with investing in U.S. government bonds and other higher quality fixed income securities. These securities are non-investment grade securities, often referred to as "junk" bonds. Economic downturns may disrupt the high yield market and impair the ability of issuers to repay principal and interest. Also, an increase in interest rates would likely have an adverse impact on the value of such obligations. Moreover, high-yield securities may be less liquid to the extent that there is no established secondary market. LEGAL PROCEEDINGS On February 9, 2005, Columbia Management Advisors, Inc. (which has since merged into Banc of America Capital Management, LLC (now named Columbia Management Advisors, LLC)) ("Columbia") and Columbia Funds Distributor, Inc. (which has been renamed Columbia Management Distributors, Inc.) (the "Distributor") (collectively, the "Columbia Group") entered into an Assurance of Discontinuance with the New York Attorney General ("NYAG") (the "NYAG Settlement") and consented to the entry of a cease-and-desist order by the Securities and Exchange Commission ("SEC") (the "SEC Order"). The SEC Order and the NYAG Settlement are referred to collectively as the "Settlements". The Settlements contain substantially the same terms and conditions as outlined in the agreements in principle which Columbia Group entered into with the SEC and NYAG in March 2004. Under the terms of the SEC Order, the Columbia Group agreed, among other things, to: pay $70 million in disgorgement and $70 million in civil money penalties; cease and desist from violations of the antifraud provisions and certain other provisions of the federal securities laws; maintain certain compliance and ethics oversight structures; retain an independent consultant to review the Columbia Group's applicable supervisory, compliance, control and other policies and procedures; and retain an independent distribution consultant (see below). The Columbia Funds have also voluntarily undertaken to implement certain governance measures designed to maintain the independence of their boards of trustees. The NYAG Settlement also, among other things, requires Columbia and its affiliates to reduce management fees for certain Columbia Funds (including the former Nations Funds) and other mutual funds collectively by $32 million per year for five years, for a projected total of $160 million in management fee reductions. Pursuant to the procedures set forth in the SEC order, the $140 million in settlement amounts described above will be distributed in accordance with a distribution plan developed by an independent distribution consultant and approved by the SEC. The independent distribution consultant has been in consultation with the staff of the SEC and has submitted a proposed plan of distribution. The SEC has not yet approved a final plan of distribution. As a result of these matters or any adverse publicity or other developments resulting from them, the market price of the shares could decline. A copy of the SEC Order is available on the SEC website at http://www.sec.gov. A copy of the NYAG Settlement is available as part of the Bank of America Corporation Form 8-K filing on February 10, 2005. In connection with the events described in detail above, various parties have filed suit against certain funds, the Trustees of the Columbia Funds, FleetBoston Financial Corporation and its affiliated entities and/or Bank of America and its affiliated entities. 24 [GRAPHIC] NOTES TO FINANCIAL STATEMENTS (continued) May 31, 2006 (Unaudited) On February 20, 2004, the Judicial Panel on Multidistrict Litigation transferred these cases and cases against several other mutual fund companies based on similar allegations to the United States District Court in Maryland for consolidated or coordinated pretrial proceedings (the "MDL"). Subsequently, additional related cases were transferred to the MDL. On September 29, 2004, the plaintiffs in the MDL filed amended and consolidated complaints. One of these amended complaints is a putative class action that includes claims under the federal securities laws and state common law, and that names Columbia, the Distributor, the Trustees of the Columbia Funds, Bank of America Corporation and others as defendants. Another of the amended complaints is a derivative action purportedly on behalf of the Columbia Funds that asserts claims under federal securities laws and state common law. On February 25, 2005, Columbia and other defendants filed motions to dismiss the claims in the pending cases. On March 1, 2006, for reasons stated in the court's memoranda dated November 3, 2005, the U.S. District Court for the District of Maryland granted in part and denied in part the defendants' motions to dismiss. The court dismissed all of the class action claims pending against the Columbia Funds Trusts and the Columbia Acorn Trusts. As to Columbia and the Distributor, the claims under the Securities Act of 1933, the claims under Sections 34(b) and 36(a) of the Investment Company Act of 1940 ("ICA") and the state law claims were dismissed. The claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and claims under Section 36(b) of the ICA along with related claims under Section 48(a) of the ICA were not dismissed. On March 21, 2005, a purported class action was filed in Massachusetts state court alleging that the conduct, including market timing, entitles Class B shareholders in certain Columbia funds to an exemption from contingent deferred sales charges upon early redemption ("the CDSC Lawsuit"). The CDSC Lawsuit has been removed to federal court in Massachusetts and the federal Judicial Panel has transferred the CDSC Lawsuit to the MDL. The MDL is ongoing. Accordingly, an estimate of the financial impact of this litigation on any fund, if any, cannot currently be made. In 2004, certain Columbia funds, the Trustees of the Columbia Funds, advisers and affiliated entities were named as defendants in certain purported shareholder class and derivative actions making claims, including claims under the Investment Company and the Investment Advisers Acts of 1940 and state law. The suits allege, inter alia, that the fees and expenses paid by the funds are excessive and that the advisers and their affiliates inappropriately used fund assets to distribute the funds and for other improper purpose. On March 2, 2005, the actions were consolidated in the Massachusetts federal court as In re Columbia Entities Litigation. The plaintiffs filed a consolidated amended complaint on June 9, 2005. On November 30, 2005, the judge dismissed all claims by plaintiffs and ordered that the case be closed. The plaintiffs filed a notice of appeal on December 30, 2005 and this appeal is pending. 25 [GRAPHIC] ASSET COVERAGE REQUIREMENTS INVOLUNTARY ASSET LIQUIDATING AVERAGE TOTAL AMOUNT COVERAGE PREFERENCE MARKET VALUE OUTSTANDING PER SHARE* PER SHARE PER SHARE ------------------------------------------------------------ 05/31/06** $60,000,000 $78,534 $25,005 $25,000 11/30/05 60,000,000 78,501 25,004 25,000 11/30/04 60,000,000 78,399 25,001 25,000 11/30/03 60,000,000 79,986 25,004 25,000 11/30/02 60,000,000 77,937 25,000 25,000 11/30/01 60,000,000 78,030 25,005 25,000 11/30/00 60,000,000 75,569 25,009 25,000 11/30/99*** 60,000,000 74,444 25,003 25,000 *Calculated by substracting the Trust's total liabilities from the Trust's total assets and dividing the amount by the number of APS outstanding. **Unaudited. ***On August 26, 1999, the Trust began offering Auction Preferred Shares. 26 See Accompanying Notes to Financial Statements. [GRAPHIC] RESULTS OF THE ANNUAL MEETING OF SHAREHOLDERS On May 24, 2006, the Annual Meeting of Shareholders of the Trust was held to consider re-election of Trustees. On March 10, 2006, the record date for the Meeting, the Trust had 11,509,000 common shares outstanding and 2,400 preferred shares outstanding. The votes cast were as follows: ELECTION OF TRUSTEES: The shareholders re-elected the following Trustees as follows: For Withheld ---------------------------------------- Janet Langford Kelly 10,433,160 157,983 Patrick J. Simpson 10,437,799 153,344 The holders of preferred shareholders re-elected the following Trustees as follows: For Withheld -------------------------------- Douglas A. Hacker 2,199 0 Thomas E. Stitzel 2,199 0 The terms of office of Thomas C. Theobald, John J. Neuhauser, Richard L. Woolworth, William E. Mayer, Richard W. Lowry, Charles R. Nelson and Anne-Lee Verville continued after the Meeting. 27 [GRAPHIC] DIVIDEND REINVESTMENT PLAN COLONIAL INVESTMENT GRADE MUNICIPAL TRUST Pursuant to the Trust's Dividend Reinvestment Plan (the "Plan"), all shareholders whose shares are registered in their own names will have all distributions reinvested automatically in additional shares of the Trust by Computershare (the "Plan Agent") unless a shareholder elects to receive cash. Shareholders whose shares are held in the name of a broker or nominee will have distributions reinvested automatically by the broker or nominee in additional shares under the Plan, unless the service is not provided by the broker or the nominee or the shareholder elects to receive distributions in cash. If the service is not available, such distributions will be paid in cash. Shareholders whose shares are held in the name of a broker or nominee should contact the broker or nominee for details. All distributions to shareholders who elect not to participate in the Plan will be paid by check mailed directly to the shareholder of record on the record date therefore by the Plan Agent as the dividend disbursing agent. Non-participants in the Plan will receive distributions in cash. Distributions payable to participants in the Plan will be applied by the Plan Agent, acting as agent for Plan participants, to the purchase of shares of the Trust. Such shares will be purchased by the Plan Agent at the then current market price of such shares in the open market, on the New York Stock Exchange or elsewhere, for the participants' accounts. Participants in the Plan may withdraw from the Plan upon written notice to the Plan Agent. When a participant withdraws from the Plan or upon termination of the Plan as provided below, certificates for whole shares credited to his account under the Plan will be issued and a cash payment will be made for any fraction of a share credited to such account. A shareholder's notice of election to withdraw from the Plan must be received by the Plan Agent before the record date for a dividend in order to be given effect with respect to that dividend. In the case of shareholders such as banks, brokers or nominees holding shares for others who are the beneficial owners of those shares, the Plan Agent will administer the Plan on the basis of the number of shares certified from time to time by the shareholder of record as representing the total amount registered in such shareholder's name and held for the account of beneficial owners who are to participate in the Plan. There is no charge to Plan participants for reinvesting distributions. The Plan Agent's fees for the handling of the reinvestment of distributions will be paid by the Trust. Each participant in the Plan will pay a pro rata share of brokerage commissions incurred with respect to the Plan Agent's open market purchases in connection with the reinvestment of distributions. Purchase orders from the participants in the Plan may be combined with those of other participants and the price paid by any particular participant may be the average of the price paid on various orders executed on behalf of groups of participants in the Plan. The automatic reinvestment of distributions will not relieve participants of any income tax that may be payable on such dividends or distributions. The Plan may be amended or terminated on 30 days written notice to Plan participants. Contact the Plan Agent for additional information regarding the Plan. All correspondence concerning the Plan should be directed to Computershare by mail at P.O. Box 43010, Providence, RI 02940-3010, or by phone at 1-800-730-6001. 28 [LOGO] Transfer Agent Important Information About This Report The Transfer Agent for Colonial Investment Grade Municipal Trust is: Computershare P.O.Box 43010 Providence, RI 02940-3010 The trust mails one shareholder report to each shareholder address. Shareholders can order additional reports by calling 800-730-6001. In addition, representatives at that number can provide shareholders information about the trust. Financial advisors who want additional information about the trust may speak to a representative at 800-426-3750. A description of the trust's proxy voting policies and procedures is available (i) at www.columbiamanagement.com; (ii) on the Securities and Exchange Commission's website at www.sec.gov, and (iii) without charge, upon request, by calling 800-730-6001. Information regarding how the trust voted proxies relating to portfolio securities during the 12-month period ended June 30 is available from the SEC's website. Information regarding how the trust voted proxies relating to portfolio securities is also available at www.columbiamanagement.com. The trust files a complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The trust's Form N-Q is available on the SEC's website at www.sec.gov and may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. Annual Certifications -- As required, on June 21, 2006, the trust submitted to the New York Stock Exchange ("NYSE") the annual certification of the trust's Chief Executive Officer certifying that he is not aware of any violation of the NYSE's Corporate Governance listing standards. The trust also has included the certifications of the trust's Chief Executive Officer and Chief Financial Officer required by Section 302 of the Sarbanes-Oxley Act of 2002 as exhibits to the trust's Form N-CSR filed with the Securities and Exchange Commission for the annual period. This report has been prepared for shareholders of Colonial Investment Grade Municipal Trust. [GRAPHIC] COLONIAL INVESTMENT GRADE MUNICIPAL TRUST SEMIANNUAL REPORT SHC-44/111422-0506 (07/06) 06/26645 Item 2. Code of Ethics. Not applicable at this time. Item 3. Audit Committee Financial Expert. Not applicable at this time. Item 4. Principal Accountant Fees and Services. Not applicable at this time. Item 5. Audit Committee of Listed Registrants. Not applicable. Item 6. Schedule of Investments The registrant's "Schedule I - Investments in securities of unaffiliated issuers" (as set forth in 17 CFR 210.12-12) is included in Item 1 of this Form N-CSR. 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 Investment Companies. Not applicable. Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers. Registrant Purchases of Equity Securities* ----------------------------------------------------------------- (c) Total Number of (d) (a) (b) Shares Purchased as Maximum Number of Total Number Average Part of Publicly Shares that May Yet of Shares Price Paid Announced Plans Be Purchased Under Period Purchased Per Share or Programs the Plans or Programs ------ ------------ ---------- ------------------- --------------------- 12/01/05 through 12/31/05... 6,652 $10.42 6,652 N/A 01/01/06 through 01/31/06... 6,532 $10.61 6,532 N/A 02/01/06 through 02/28/06... 6,575 $10.55 6,575 N/A 03/01/06 through 03/31/06... 6,235 $10.92 6,235 N/A 04/01/06 through 04/30/06... 6,286 $10.70 6,286 N/A 05/01/06 through 05/31/06... 6,359 $10.66 6,359 N/A ------ ------ ------ --- Total....................... 38,639 $10.64 38,639 N/A ------ ------ ------ --- -------- * Includes shares purchased by the Dividend Reinvestment Agent pursuant to the Registrant's Dividend Reinvestment Plan. Item 10. Submission of Matters to a Vote of Security Holders. There have not been any material changes to the procedures by which shareholders may recommend nominees to the registrant's board of directors, since those procedures were last disclosed in response to the requirements of Item 7(d)(2)(ii)(G) of Schedule 14A or this Item. Item 11. Controls and Procedures. (a) The registrant's principal executive officer and principal financial officers, based on their evaluation of the registrant's disclosure controls and procedures as of a date within 90 days of the filing of this report, have concluded that such controls and procedures are adequately designed to ensure that information required to be disclosed by the registrant in Form N-CSR is accumulated and communicated to the registrant's management, including the principal executive officer and principal financial officer, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure. (b) There were no changes in the registrant's internal control over financial reporting that occurred during the registrant's second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting. Item 12. Exhibits. (a)(1) Code of ethics required to be disclosed under Item 2 of Form N-CSR: Not applicable at this time. (a)(2) Certifications pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) attached hereto as Exhibit 99.CERT. (a)(3) Not applicable. (b) Certification pursuant to Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(b)) attached hereto as Exhibit 99.906CERT. 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) Colonial Investment Grade Municipal Trust ----------------------------------------------------- By (Signature and Title) /S/ Christopher L. Wilson ----------------------------------------- Christopher L. Wilson, President Date July 27, 2006 ------------------------------------------------------------- Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By (Signature and Title) /S/ Christopher L. Wilson ----------------------------------------- Christopher L. Wilson, President Date July 27, 2006 ------------------------------------------------------------- By (Signature and Title) /S/ J. Kevin Connaughton ----------------------------------------- J. Kevin Connaughton, Treasurer Date July 27, 2006 -------------------------------------------------------------