<PAGE> 1
[AIM LOGO APPEARS HERE]
[GRAPHIC COLLAGE GOES HERE]
AIM MONEY MARKET FUND
ANNUAL REPORT
DECEMBER 31, 1995
<PAGE> 2
A Message From
The Chairman
Dear Fellow Shareholder:
At the start of the 1995 fiscal year covered by this report,
interest rates were near the high point of their cycle. The
yield on a 30-year Treasury bond was almost 8%, and the
short-term Federal Funds rate was targeted at 6%. The Federal
[PHOTO OF Reserve Board was pursuing a relatively tight monetary policy,
Charles T. seeking a sustainable, noninflationary economic growth rate of
Bauer, approximately 2.50% per year.
Chairman of In ensuing months, evidence of moderate growth and mild
the Board of inflation led the Fed to lower the Federal Funds rate 25 basis
the Fund, points on July 6. (A basis point is 1/100 of a percentage
APPEARS HERE] point.) The rate was reduced another 25 basis points in
December as concerns mounted that economic growth might be
more sluggish than desired. Slow Christmas sales, rapid growth
in consumer indebtedness, a continuing wave of restructurings
and layoffs among U.S. corporations, and flat wages were among the phenomena
fostering that concern.
As the economy moderated, long- and short-term interest rates declined. By
the end of 1995, the yield on a 30-year Treasury bond had dipped below
the 6% mark, and the Federal Funds target rate was 5.50%
Declining rates prompted Fund management to gradually lengthen the weighted
average maturity of the portfolio from just seven days when the fiscal year
opened to approximately 34 days as of December 31. As the fiscal year closed,
the Fund provided a seven-day yield of 4.71% for Class A shares, 4.00% for
Class B shares, and 4.69% for Class C shares. Net assets of the combined three
classes of shares were $584.8 million at fiscal year-end, up from $542.8
million when the year opened.
The consensus of economists and other market watchers was that interest rates
should remain stable or decline during 1996. Inflation should remain under
control in an economy many had begun to view with caution. Although this
type of environment may reduce yields on money market funds, the short
maturities of the securities in your Fund's portfolio make it possible to
pursue relative stability amid the potential volatility of financial markets.
AIM Money Market Fund seeks to provide as high a level of current income as
possible consistent with preservation of capital and liquidity by investing in
high-quality money market instruments, including commercial paper, repurchase
agreements, and U.S. Treasury and U.S. Government agency securities. An
investment in the Fund is neither insured nor guaranteed by the U.S.
Government, and there can be no assurance the Fund will be able to maintain a
stable net asset value of $1.00 per share.
As always, we are ready to respond to your questions or comments about this
report. Please call Client Services at 800-959-4246 during normal business
hours. For automated account information 24 hours a day, please dial the AIM
Investor Line toll-free at 800-246-5463.
Respectfully submitted,
/s/ CHARLES T. BAUER
Charles T. Bauer
Chairman
<PAGE> 3
Financials
SCHEDULE OF INVESTMENTS
December 31, 1995
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE
<S> <C> <C> <C>
COMMERCIAL PAPER-47.34%(a)
ASSET-BACKED SECURITIES-18.02%
Asset Securitization Cooperative Corp.
5.65% 02/08/96 $ 28,500 $ 28,330,029
- ----------------------------------------------------------------------------------------------
Delaware Funding Corp.
5.71% 02/07/96 26,500 26,344,482
- ----------------------------------------------------------------------------------------------
Eiger Capital Corp.
5.83% 01/30/96 29,000 28,863,805
- ----------------------------------------------------------------------------------------------
Preferred Receivables Funding Corp.
5.65% 02/26/96 22,000 21,806,644
- ----------------------------------------------------------------------------------------------
105,344,960
- ----------------------------------------------------------------------------------------------
BROKER/DEALER-4.44%
Goldman Sachs Group, L.P.(The)
6.05% 01/11/96 26,000 25,956,306
- ----------------------------------------------------------------------------------------------
FINANCE (PERSONAL CREDIT)-7.12%
Associates Corp. of North America
5.59% 03/18/96 22,000 21,736,959
- ----------------------------------------------------------------------------------------------
Transamerica Finance Corp.
5.52% 01/31/96 19,963 19,871,170
- ----------------------------------------------------------------------------------------------
41,608,129
- ----------------------------------------------------------------------------------------------
HOUSEHOLD PRODUCTS-2.53%
Colgate-Palmolive Co.
5.27% 06/21/96 15,200 14,817,281
- ----------------------------------------------------------------------------------------------
INSURANCE (LIFE)-3.77%
Cargill Financial Services Corp.
5.47% 01/08/96 18,000 17,980,855
- ----------------------------------------------------------------------------------------------
Lincoln National Corp.
5.62% 03/08/96 4,100 4,057,116
- ----------------------------------------------------------------------------------------------
22,037,971
- ----------------------------------------------------------------------------------------------
INSURANCE (OTHER)-2.35%
Marsh & McLennan Companies, Inc.
5.62% 04/25/96 14,000 13,748,662
- ----------------------------------------------------------------------------------------------
OIL & GAS-4.22%
ARCO Coal Australia Inc.
5.60% 03/18/96 25,000 24,700,556
- ----------------------------------------------------------------------------------------------
POLLUTION CONTROL-0.83%
WMX Technologies Inc.
5.51% 06/11/96 5,000 4,876,025
- ----------------------------------------------------------------------------------------------
TELEPHONE-4.06%
American Telephone & Telegraph Co.
5.60% 03/12/96 24,000 23,734,933
- ----------------------------------------------------------------------------------------------
Total Commercial Paper 276,824,823
- ----------------------------------------------------------------------------------------------
</TABLE>
<PAGE> 4
Financials
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE
<S> <C> <C> <C>
MASTER NOTE AGREEMENT-3.59%
Citicorp Securities, Inc.(b)
6.25% 03/11/96 $ 21,000 $ 21,000,000
- ----------------------------------------------------------------------------------------------
U.S. TREASURY SECURITIES-1.00%
U.S. Treasury Bills(c)
5.04% 06/27/96 6,000 5,850,480
- ----------------------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY SECURITIES-8.83%
Federal Home Loan Bank
5.90% 10/11/96 5,000 5,000,000
- ----------------------------------------------------------------------------------------------
Federal National Mortgage Association
5.26%(d) 06/02/99 32,000 32,000,000
- ----------------------------------------------------------------------------------------------
6.86% 02/28/96 2,000 2,003,021
- ----------------------------------------------------------------------------------------------
Student Loan Marketing Association
5.24%(d) 08/20/98 2,600 2,600,000
- ----------------------------------------------------------------------------------------------
5.26%(d) 02/08/99 10,000 10,005,254
- ----------------------------------------------------------------------------------------------
Total U.S. Government Agency Securities 51,608,275
- ----------------------------------------------------------------------------------------------
Total Investments (excluding Repurchase
Agreements) 355,283,578
- ----------------------------------------------------------------------------------------------
REPURCHASE AGREEMENTS(e)-35.91%
Daiwa Securities America Inc.(f)
5.92% 01/02/96 75,010 75,009,763
- ----------------------------------------------------------------------------------------------
Goldman Sachs & Co.(g)
5.92% 01/02/96 135,000 135,000,000
- ----------------------------------------------------------------------------------------------
Total Repurchase Agreements 210,009,763
- ----------------------------------------------------------------------------------------------
TOTAL INVESTMENTS -- 96.67% 565,293,341(h)
- ----------------------------------------------------------------------------------------------
OTHER ASSETS LESS LIABILITIES -- 3.33% 19,500,339
- ----------------------------------------------------------------------------------------------
NET ASSETS -- 100.00% $584,793,680
==============================================================================================
</TABLE>
Notes to Schedule of Investments:
(a) Some commercial paper is traded on a discount basis. In such cases the
interest rate shown represents the rate of discount paid or received at
the time of purchase by the Fund.
(b) The Fund may demand prepayment of notes purchased under the Master Note
Purchase Agreement upon notice to the issuer. Interest rate on the
master note is redetermined periodically. Rate shown is the rate in
effect on December 31, 1995.
(c) U.S. Treasury bills are traded on a discount basis. In such cases, the
interest rate shown represents the rate of discount paid or received at
the time purchase by the Fund.
(d) Interest rates are redetermined weekly. Rates shown are in effect on
December 31, 1995.
(e) Collateral on repurchase agreements, including the Fund's pro-rata
interest in joint repurchase agreements, is taken into possession by the
Fund upon entering into the repurchase agreement. The collateral is
marked to market daily to ensure its market value as being 102 percent
of the sales price of the repurchase agreement. The investments in some
repurchase agreements are through participation in joint accounts with
other mutual funds managed by the investment advisor.
(f) Joint repurchase agreement entered into 12/29/95 with a maturing value of
$646,679,181. Collateralized by $537,995,000 U.S. Treasury obligations,
7.875% to 11.25% due 11/15/07 to 02/15/15.
(g) Joint repurchase agreement entered into 12/29/95 with a maturing value of
$1,195,786,044. Collateralized by $1,106,121,000 U.S. Treasury
obligations, 5.50% to 11.25% due 01/31/98 to 02/15/23.
(h) Also represents cost for federal income tax purposes.
See Notes to Financial Statements.
2
<PAGE> 5
Financials
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1995
<TABLE>
<S> <C>
ASSETS:
Investments, excluding repurchase agreements, at value (amortized cost) $355,283,578
- -----------------------------------------------------------------------------------------
Repurchase agreements 210,009,763
- -----------------------------------------------------------------------------------------
Receivables for:
Capital stock sold 40,213,522
- -----------------------------------------------------------------------------------------
Interest 566,974
- -----------------------------------------------------------------------------------------
Investment for deferred compensation plan 83,541
- -----------------------------------------------------------------------------------------
Other assets 74,878
- -----------------------------------------------------------------------------------------
Total assets 606,232,256
- -----------------------------------------------------------------------------------------
LIABILITIES:
Payables for:
Capital stock reacquired 20,517,335
- -----------------------------------------------------------------------------------------
Dividends 168,489
- -----------------------------------------------------------------------------------------
Deferred compensation plan 83,541
- -----------------------------------------------------------------------------------------
Accrued advisory fees 267,751
- -----------------------------------------------------------------------------------------
Accrued administrative service fees 4,337
- -----------------------------------------------------------------------------------------
Accrued distribution fees 393,684
- -----------------------------------------------------------------------------------------
Accrued operating expenses 3,439
- -----------------------------------------------------------------------------------------
Total liabilities 21,438,576
- -----------------------------------------------------------------------------------------
Net assets applicable to shares outstanding $584,793,680
=========================================================================================
NET ASSETS:
Class A $221,487,213
=========================================================================================
Class B $ 69,856,594
=========================================================================================
Class C $293,449,873
=========================================================================================
SHARES OUTSTANDING, $0.01 PAR VALUE PER SHARE:
Class A 221,519,702
=========================================================================================
Class B 69,864,136
=========================================================================================
Class C 293,502,963
=========================================================================================
Class A:
Net asset value and redemption price per share $ 1.00
=========================================================================================
Offering price per share:
(Net asset value of $1.00 divided by 94.50%) $ 1.06
=========================================================================================
Class B:
Net asset value and offering price per share $ 1.00
=========================================================================================
Class C:
Net asset value, offering and redemption price per share $ 1.00
=========================================================================================
</TABLE>
See Notes to Financial Statements.
3
<PAGE> 6
Financials
STATEMENT OF OPERATIONS
For the year ended December 31, 1995
<TABLE>
<CAPTION>
<S> <C>
INVESTMENT INCOME:
Interest $28,031,456
- -------------------------------------------------------------------------------------------
EXPENSES:
Advisory fees 2,589,822
- -------------------------------------------------------------------------------------------
Custodian fees 42,019
- -------------------------------------------------------------------------------------------
Distribution fees -- Class A 410,703
- -------------------------------------------------------------------------------------------
Distribution fees -- Class B 381,405
- -------------------------------------------------------------------------------------------
Distribution fees -- Class C 671,137
- -------------------------------------------------------------------------------------------
Trustees' fees 8,896
- -------------------------------------------------------------------------------------------
Transfer agent fees -- Class A 251,325
- -------------------------------------------------------------------------------------------
Transfer agent fees -- Class B 58,270
- -------------------------------------------------------------------------------------------
Transfer agent fees -- Class C 398,344
- -------------------------------------------------------------------------------------------
Administrative service fees 55,020
- -------------------------------------------------------------------------------------------
Other 300,209
- -------------------------------------------------------------------------------------------
Total expenses 5,167,150
- -------------------------------------------------------------------------------------------
Net investment income 22,864,306
- -------------------------------------------------------------------------------------------
Net realized gain (loss) on sales of investments (93,121)
- -------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $22,771,185
===========================================================================================
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
For the years ended December 31, 1995 and 1994
<TABLE>
<CAPTION>
1995 1994
<S> <C> <C>
OPERATIONS:
Net investment income $ 22,864,306 $ 15,485,684
- -------------------------------------------------------------------------------------------
Net realized gain (loss) on sales of investment securities (93,121) --
- -------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 22,771,185 15,485,684
- -------------------------------------------------------------------------------------------
Distributions to shareholders from net investment income:
Class A (8,071,868) (3,918,606)
- -------------------------------------------------------------------------------------------
Class B (1,577,348) (600,466)
- -------------------------------------------------------------------------------------------
Class C (13,215,090) (10,966,612)
- -------------------------------------------------------------------------------------------
Share transactions-net:
Class A 72,633,973 67,425,582
- -------------------------------------------------------------------------------------------
Class B 35,865,178 32,709,856
- -------------------------------------------------------------------------------------------
Class C (66,448,589) 118,173,709
- -------------------------------------------------------------------------------------------
Net increase in net assets 41,957,441 218,309,147
- -------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 542,836,239 324,527,092
- -------------------------------------------------------------------------------------------
End of period $584,793,680 $542,836,239
===========================================================================================
NET ASSETS CONSIST OF:
Shares of beneficial interest $584,886,801 $542,836,239
- -------------------------------------------------------------------------------------------
Undistributed net realized gain (loss) on sales of
investments (93,121) --
- -------------------------------------------------------------------------------------------
$584,793,680 $542,836,239
===========================================================================================
</TABLE>
See Notes to Financial Statements.
4
<PAGE> 7
Financials
NOTES TO FINANCIAL STATEMENTS
December 31, 1995
NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES
AIM Money Market Fund (the "Fund") is a series portfolio of AIM Funds Group (the
"Trust"). The Trust is a Delaware business trust registered under the Investment
Company Act of 1940, as amended (the "1940 Act"), as an open-end series
management investment company consisting of nine separate series portfolios,
each having an unlimited number of shares of beneficial interest. The Fund
currently offers three different classes of shares: the Class A shares, the
Class B shares and the Class C shares. Class A shares are sold with a front-end
sales charge. Class B shares are sold with a contingent deferred sales charge.
Class C shares are sold at net asset value. Matters affecting each portfolio or
class will be voted on exclusively by the shareholders of such portfolio or
class. The assets, liabilities and operations of each portfolio are accounted
for separately. Information presented in these financial statements pertains
only to the Fund. The Fund's objective is to provide as high a level of current
income as is consistent with preservation of capital and liquidity.
The following is a summary of significant accounting policies followed by
the Fund in the preparation of its financial statements. The preparation of
financial statements in conformity with generally accepted accounting principles
requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates.
A. Security Valuations - The Fund invests only in securities which have
maturities of 397 days or less from the date of purchase. The securities are
valued on the basis of amortized cost which approximates market value. This
method values a security at its cost on the date of purchase and thereafter
assumes a constant amortization to maturity of any discount or premium.
B. Securities Transactions, Investment Income and Distributions - Securities
transactions are accounted for on a trade date basis. Realized gains or
losses on sales are computed on the basis of specific identification of the
securities sold. Interest income, adjusted for amortization of premiums and
discounts on investments, is recorded as earned from settlement date and is
recorded on the accrual basis. Dividends to shareholders are declared daily
and are paid monthly.
C. Federal Income Taxes - The Fund intends to comply with the requirements of
the Internal Revenue Code necessary to qualify as a regulated investment
company and, as such, will not be subject to federal income taxes on
otherwise taxable income (including net realized capital gains) which is
distributed to shareholders. Therefore, no provision for federal income taxes
is recorded in the financial statements. The Fund has a capital loss
carryforward of $93,121 (which may be carried forward to offset future
taxable capital gains, if any) which expires, if not previously utilized, in
the year 2003.
D. Expenses - Operating expenses directly attributable to a class of shares are
charged to that class' operations. Expenses which are applicable to all
classes, e.g. advisory fees, are allocated among them.
NOTE 2 - ADVISORY FEES AND OTHER TRANSACTIONS WITH AFFILIATES
The Trust has entered into a master investment advisory agreement with A I M
Advisors, Inc. ("AIM"). Under the terms of the master investment advisory
agreement, the Fund pays an advisory fee to AIM at an annual rate of 0.55% of
the first $1 billion of the Fund's average daily net assets plus 0.50% of the
Fund's average daily net assets in excess of $1 billion. This agreement requires
AIM to reduce its fees or, if necessary, make payments to the Fund to the extent
required to satisfy any expense limitations imposed by the securities laws or
regulations thereunder of any state in which the Fund's shares are qualified for
sale.
The Fund, pursuant to a master administrative services agreement with AIM,
has agreed to reimburse AIM for certain administrative costs incurred in
providing accounting services to the Fund. During the year ended December 31,
1995, AIM was reimbursed $55,020 for such services.
The Fund, pursuant to a transfer agency and service agreement, has agreed to
pay A I M Fund Services, Inc. ("AFS") for certain costs incurred in providing
transfer agency and shareholder services to the Fund. During the year ended
December 31, 1995, the Fund paid AFS $363,275 for such services.
The Trust has entered into master distribution agreements with A I M
Distributors, Inc. ("AIM Distributors") to serve as the distributor for the
Class A shares, the Class B shares and the Class C shares of the Fund. The Trust
has adopted Plans pursuant to Rule 12b-1 under the 1940 Act with respect to the
Fund's Class A shares and Class C
5
<PAGE> 8
Financials
NOTE 2 - ADVISORY FEES AND OTHER TRANSACTIONS WITH AFFILIATES (continued)
shares (the "Class A and C Plan") and with respect to the Fund's Class B shares
(the "Class B Plan") (collectively, the "Plans"). The Fund, pursuant to the
Class A and C Plan, pays to AIM Distributors compensation at an annual rate of
0.25% of the average daily net assets attributable to the Class A shares and the
Class C shares. The Class A and C Plan is designed to compensate AIM
Distributors for certain promotional and other sales related costs and provides
periodic payments to selected dealers and financial institutions who furnish
continuing personal shareholder services to their customers who purchase and own
Class A shares or Class C shares of the Fund. The Fund, pursuant to the Class B
Plan, pays AIM Distributors compensation at an annual rate of 1.00% of the
average daily net assets attributable to the Class B shares. Of this amount, the
Fund may pay a service fee of 0.25% of the average daily net assets of the Class
B shares to selected dealers and financial institutions who furnish continuing
personal shareholder services to their customers who purchase and own Class B
shares of the Fund. Any amounts not paid as a service fee under such Plans would
constitute an asset-based sales charge. The Plans also impose a cap on the total
sales charges, including asset-based sales charges, that may be paid by the
respective classes. AIM Distributors may, from time to time, assign, transfer or
pledge to one or more assignees, its rights to all or a portion of (a)
compensation received by AIM Distributors from the Fund pursuant to the Class B
Plan (but not AIM Distributors' duties and obligations pursuant to the Class B
Plan) and (b) any contingent deferred sales charges payable to AIM Distributors
related to the Class B Plan. During the year ended December 31, 1995, the Class
A shares, the Class B shares and the Class C shares paid AIM Distributors
$410,703, $381,405 and $671,137, respectively, as compensation under the Plans.
AIM Distributors received commissions of $494,184 from sales of the Class A
shares of the Fund during the year ended December 31, 1995. Such commissions are
not an expense of the Fund. They are deducted from, and are not included in, the
proceeds from sales of Class A shares. During the year ended December 31, 1995,
AIM Distributors received $256,618 in contingent deferred sales charges imposed
on redemptions of Fund shares. Certain officers and trustees of the Trust are
officers and directors of AIM, AIM Distributors and AFS.
During the year ended December 31, 1995, the Fund paid legal fees of $3,973
for services rendered by Kramer, Levin, Naftalis, Nessen, Kamin & Frankel as
counsel to the Board of Trustees. A member of that firm is a trustee of the
Trust.
NOTE 3 - TRUSTEES' FEES
Trustees' fees represent remuneration paid or accrued to each trustee who is not
an "interested person" of AIM. The Trust may invest trustees' fees, if so
elected by a trustee, in mutual fund shares in accordance with a deferred
compensation plan.
6
<PAGE> 9
Financials
NOTE 4 - SHARE INFORMATION
Changes in shares outstanding during the years ended December 31, 1995 and 1994
were as follows:
<TABLE>
<CAPTION>
1995 1994
----------------------------------- -----------------------------------
SHARES AMOUNT SHARES AMOUNT
-------------- --------------- -------------- ---------------
<S> <C> <C> <C> <C>
Sold:
Class A 1,236,115,617 $ 1,236,115,617 607,113,357 $ 607,113,357
- ------------------------------------------------ ----------------------------------- -----------------------------------
Class B 150,618,548 150,618,548 94,699,624 94,699,624
- ------------------------------------------------ ----------------------------------- -----------------------------------
Class C 3,387,330,655 3,387,330,655 2,084,342,014 2,084,342,014
- ------------------------------------------------ ----------------------------------- -----------------------------------
Issued as reinvestment of dividends:
Class A 7,057,740 7,057,740 3,420,397 3,420,397
- ------------------------------------------------ ----------------------------------- -----------------------------------
Class B 1,412,061 1,412,061 503,240 503,240
- ------------------------------------------------ ----------------------------------- -----------------------------------
Class C 10,700,895 10,700,895 9,396,978 9,396,978
- ------------------------------------------------ ----------------------------------- -----------------------------------
Reacquired:
Class A (1,170,539,384) (1,170,539,384) (543,108,172) (543,108,172)
- ------------------------------------------------ ----------------------------------- -----------------------------------
Class B (116,165,431) (116,165,431) (62,493,008) (62,493,008)
- ------------------------------------------------ ----------------------------------- -----------------------------------
Class C (3,464,480,139) (3,464,480,139) (1,975,565,283) (1,975,565,283)
- ------------------------------------------------ ----------------------------------- -----------------------------------
42,050,562 $ 42,050,562 218,309,147 $ 218,309,147
================================================ =================================== ===================================
</TABLE>
NOTE 5 - FINANCIAL HIGHLIGHTS
Shown below are the condensed financial highlights for a Class A share, a Class
B share and a Class C share outstanding during each of the years in the two-year
period ended December 31, 1995 and the period October 16, 1993 (date operations
commenced) through December 31, 1993.
<TABLE>
<CAPTION>
CLASS A SHARES CLASS B SHARES
------------------------------------ -----------------------------------
1995 1994 1993 1995 1994 1993
-------- -------- -------- -------- ------- --------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
- -------------------------------------------- -------- -------- -------- -------- ------- --------
Income from investment operations:
Net investment income 0.0495 0.0337 0.0048 0.0419 0.0259 0.0032
- -------------------------------------------- -------- -------- -------- -------- ------- --------
Less distributions:
Dividends from net investment income (0.0495) (0.0337) (0.0048) (0.0419) (0.0259) (0.0032)
- -------------------------------------------- -------- -------- -------- -------- -------- --------
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
============================================ ======== ======== ======== ======== ======== ========
Total return(a) 5.06% 3.43% 2.27% 4.27% 2.62% 1.51%
============================================ ======== ======== ======== ======== ======= ========
Ratios/supplemental data:
Net assets, end of period (000s omitted) $221,487 $148,886 $ 81,460 $69,857 $33,999 $ 1,289
============================================ ======== ======== ======== ======== ======= ========
Ratio of expenses to average net assets 1.03%(b) 0.97%(c) 1.00%(c)(d) 1.78%(b) 1.78%(e) 1.75%(d)(e)
============================================ ======== ======== ======== ======== ======= ========
Ratio of net investment income to average
net assets 4.91 %(b) 3.53%(c) 2.27%(c)(d) 4.14%(b) 3.14%(e) 1.54%(d)(e)
============================================ ======== ======== ======== ======== ======= ========
<CAPTION>
CLASS C SHARES
------------------------------------
1995 1994 1993
-------- -------- --------
<S> <<C> <C> <C>
Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00
- -------------------------------------------- -------- -------- --------
Income from investment operations:
Net investment income 0.0493 0.0337 0.0048
- -------------------------------------------- -------- -------- --------
Less distributions:
Dividends from net investment income (0.0493) (0.0337) (0.0048)
- -------------------------------------------- -------- -------- --------
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00
============================================ ======== ======== ========
Total return(a) 5.04% 3.42% 2.27%
============================================ ======== ======== ========
Ratios/supplemental data:
Net assets, end of period (000s omitted) $293,450 $359,952 $241,778
============================================ ======== ======== ========
Ratio of expenses to average net assets 1.04%(b) 0.99%(f) 1.00%(d)(f)
============================================ ======== ======== ========
Ratio of net investment income to average
net assets 4.92%(b) 3.49%(f) 2.27%(d)(f)
============================================ ======== ======== ========
</TABLE>
(a) Does not deduct sales charges or contingent deferred sales charges, where
applicable.
(b) Ratios are based on average daily net assets as follows: Class A Shares -
$164,281,243, Class B Shares - $38,140,475 and Class C Shares -
$268,454,942.
(c) Ratios of expenses and net investment income to average daily net assets
prior to waiver of advisory fees are 1.06% and 3.44% for 1994 and 1.20%
(annualized) and 2.07% (annualized) for 1993.
(d) Annualized.
(e) Ratios of expenses and net investment income to average daily net assets
prior to waiver of advisory fees are 1.87% and 3.05% for 1994 and 1.95%
(annualized) and 1.34% (annualized) for 1993.
(f) Ratios of expenses and net investment income to average daily net assets
prior to waiver of advisory fees are 1.08% and 3.40% for 1994 and 1.20%
(annualized) and 2.07% (annualized) for 1993.
7
<PAGE> 10
INDEPENDENT AUDITORS' REPORT
To the Board of Trustees and Shareholders of
AIM Money Market Fund:
We have audited the accompanying statement of assets and liabilities of AIM
Money Market Fund (a portfolio of AIM Funds Group), including the schedule of
investments, as of December 31, 1995, and the related statement of operations
for the year then ended, the statement of changes in net assets for each of the
years in the two-year period then ended and the financial highlights for each of
the years in the two-year period then ended and the period October 16, 1993
(date operations commenced) through December 31, 1993. These financial
statements and financial highlights are the responsibility of the Fund's
management. Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
December 31, 1995, by correspondence with the custodian. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of AIM
Money Market Fund as of December 31, 1995, the results of its operations for the
year then ended, the changes in net assets for each of the years in the two-year
period then ended and financial highlights for each of the years in the two-year
period then ended, and the period October 16, 1993 (date operations commenced)
through December 31, 1993, in conformity with generally accepted accounting
principles.
KPMG Peat Marwick LLP
Houston, Texas
February 7, 1996
8
<PAGE> 11
<TABLE>
<CAPTION>
Trustees
& Officers
TRUSTEES OFFICERS OFFICE OF THE FUND
<S> <C> <C>
Charles T. Bauer Charles T. Bauer 11 Greenway Plaza
Chairman and Chief Executive Officer Chairman Suite 1919
A I M Management Group Inc. Houston, TX 77046
Robert H. Graham
Bruce L. Crockett President INVESTMENT ADVISOR
Director, President, and Chief
Executive Officer John J. Arthur A I M Advisors, Inc.
COMSAT Corporation Senior Vice President & Treasurer 11 Greenway Plaza
Suite 1919
Owen Daly II Gary T. Crum Houston, TX 77046
Director Senior Vice President
Cortland Trust Inc. TRANSFER AGENT
Carol F. Relihan
Carl Frischling Vice President & Secretary A I M Fund Services, Inc.
Partner P.O. Box 4739
Kramer, Levin, Naftalis, Nessen, Dana R. Sutton Houston, TX 77210-4739
Kamin & Frankel Vice President & Assistant Treasurer
CUSTODIAN
Robert H. Graham Robert G. Alley
President and Chief Operating Vice President State Street Bank and Trust
Officer Company
A I M Management Group Inc. Stuart W. Coco 225 Franklin Street
Vice President Boston, MA 02110
John F. Kroeger
Formerly, Consultant Melville B. Cox LEGAL COUNSEL TO THE FUND
Wendell & Stockel Associates, Inc. Vice President
Ballard Spahr Andrews & Ingersoll
Lewis F. Pennock Karen Dunn Kelley 1735 Market Street, 51st Floor
Attorney Vice President Philadelphia, PA 19103-7599
Ian W. Robinson Jonathan C. Schoolar LEGAL COUNSEL TO THE TRUSTEES
Consultant; Former Executive Vice Vice President
President and Chief Financial Officer Kramer, Levin, Naftalis, Nessen,
Bell Atlantic Management Services, P. Michelle Grace Kamin & Frankel
Inc. Assistant Secretary 919 Third Avenue
New York, NY 10022
Louis S. Sklar David L. Kite
Executive Vice President Assistant Secretary DISTRIBUTOR
Hines Interests
Limited Partnership Nancy L. Martin A I M Distributors, Inc.
Assistant Secretary 11 Greenway Plaza
Suite 1919
Ofelia M. Mayo Houston, TX 77046
Assistant Secretary
AUDITORS
Kathleen J. Pflueger
Assistant Secretary KPMG Peat Marwick LLP
700 Louisiana
Samuel D. Sirko NationsBank Bldg.
Assistant Secretary Houston, TX 77002
Stephen I. Winer
Assistant Secretary
Mary J. Benson
Assistant Treasurer
</TABLE>
This report may be distributed only to current shareholders or to persons
who have received a current prospectus of the Fund.
<PAGE> 12
<TABLE>
<S> <C>
[PHOTO OF 11 GREENWAY PLAZA] THE AIM FAMILY OF FUNDS(R)
AGGRESSIVE GROWTH
AIM Aggressive Growth Fund*
AIM Constellation Fund
AIM Global Aggressive Growth Fund
GROWTH
AIM Global Growth Fund
AIM Growth Fund
AIM International Equity Fund
AIM Value Fund
AIM Weingarten Fund
GROWTH AND INCOME
AIM Balanced Fund
AIM Charter Fund
INCOME AND GROWTH
AIM Global Utilities Fund**
HIGH CURRENT INCOME
AIM High Yield Fund
CURRENT INCOME
AIM Global Income Fund
AIM Income Fund
CURRENT TAX-FREE INCOME
AIM Municipal Bond Fund
AIM Tax-Exempt Bond Fund of CT
AIM Tax-Free Intermediate Shares
CURRENT INCOME AND HIGH DEGREE
OF SAFETY
AIM Intermediate Government Fund***
HIGH DEGREE OF SAFETY AND
CURRENT INCOME
AIM Limited Maturity Treasury Shares
STABILITY, LIQUIDITY, AND
CURRENT INCOME
AIM Money Market Fund
STABILITY, LIQUIDITY, AND
CURRENT TAX-FREE INCOME
AIM Tax-Exempt Cash Fund
*AIM Aggressive Growth Fund was closed to new
investors on July 18, 1995. **On May 1,
1995, AIM Utilities Fund broadened its
investment strategy to permit up to 80%
of its total assets to be invested in
AIM Management Group has provided leadership foreign securities, and was renamed AIM
in the mutual fund industry since 1976 and Global Utilities Fund. ***On September 25, 1995,
currently manages approximately $42 billion AIM Government Securities Fund was renamed
in assets for more than 2 million shareholders, AIM Intermediate Government Fund. For more
including individual investors, corporate clients, complete information about any AIM Fund(s),
and financial institutions. The AIM Family of including sales charges and expenses, ask
Funds(R) is distributed nationwide, and AIM your financial consultant or securities dealer
today ranks among the nation's top 20 mutual for a free prospectus(es). Please read the
fund companies in assets under management, prospectus(es) carefully before you invest or
according to Lipper Analytical Services, Inc. send money.
--------------
BULK RATE
[AIM LOGO APPEARS HERE] U.S. POSTAGE
PAID
A I M Distributors, Inc. HOUSTON, TX
11 Greenway Plaza, Suite 1919 Permit No.1919
Houston, TX 77046 --------------
</TABLE>
