<PAGE> 1
[AIM LOGO APPEARS HERE]
[COLLAGE APPEARS HERE]
AIM MONEY
MARKET FUND
SEMIANNUAL REPORT JUNE 30, 1996
<PAGE> 2
The Chairman's Letter
Dear Fellow Shareholder:
During the six-month reporting period ended June 30, 1996,
[PHOTO OF the most important factor influencing the financial markets
Charles T. Bauer was concern that interest rates would rise if inflation
Chairman of began to accelerate. At the beginning of 1996, the economy
the Board of appeared weak. Consumer debt was growing, wages remained
the Fund, stagnant, and some major corporations were announcing
APPEARS HERE] extensive layoffs. The annualized growth rate of the economy
in the last quarter of 1995 was just 0.5%. That's why the
Federal Reserve Board lowered rates at the end of January,
reducing the short-term Fed Funds rate by 0.25% to 5.25%.
In the ensuing months, the economy gained strength. Despite the unusually
bitter winter, the economy expanded at a 2.0% annual rate for the first
quarter of this year. Consumer spending, government spending, and capital
spending all increased. During the second quarter of 1996, the economy grew at
an annualized 4.2% rate, first reports on growth showed.
The markets feared that renewed economic growth would bring higher inflation.
The markets also began factoring in the possibility that the Fed would raise
rates to prevent the economy from overheating.
In this environment, AIM Money Market Fund continued to produce a competitive
yield. When the reporting period ended, the seven-day yield was 4.33% for Class
A shares, 3.60% for Class B shares, and 4.33% for Class C shares. Net assets of
the Fund also grew considerably, from $584.8 million at the start of the
reporting period to $813.5 million at its end.
While interest rates were falling, Fund management lengthened the weighted
average maturity of the portfolio to lock in the higher interest rates
available on longer-term money market instruments. But once the interest rate
environment began to change, management gradually reversed course. The Fund's
weighted average maturity had dropped to 28.31 days at the end of the reporting
period.
The report the Federal Reserve produced in preparation for its July 2-3
meeting indicated that economic growth remains good and inflation under
control. In keeping with that, the Fed decided not to raise interest rates. A
stable interest rate environment is good for fixed-income and money market
investors. Additionally, the short maturities of the securities held by the
Fund means it is always positioned to respond quickly to market changes.
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 that 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 per 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
June 30, 1996
(Unaudited)
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE
<S> <C> <C> <C>
COMMERCIAL PAPER-46.73%(a)
ASSET-BACKED SECURITIES-14.06%
Asset Securitization Cooperative Corp.
5.41% 08/20/96 $ 20,000 $ 19,849,722
- ----------------------------------------------------------------------------------------------
5.40% 09/16/96 20,000 19,769,000
- ----------------------------------------------------------------------------------------------
Clipper Receivables Corp.
5.38% 07/23/96 22,000 21,927,669
- ----------------------------------------------------------------------------------------------
5.43% 07/24/96 10,000 9,965,308
- ----------------------------------------------------------------------------------------------
Corporate Asset Funding Co.
5.29% 08/16/96 10,000 9,932,406
- ----------------------------------------------------------------------------------------------
Falcon Asset Securitization Corp.
5.28% 08/26/96 12,500 12,397,333
- ----------------------------------------------------------------------------------------------
Preferred Receivables Funding Corp.
5.37% 07/15/96 11,150 11,126,715
- ----------------------------------------------------------------------------------------------
5.34% 07/17/96 9,450 9,427,572
- ----------------------------------------------------------------------------------------------
114,395,725
- ----------------------------------------------------------------------------------------------
AUTOMOBILE (MANUFACTURERS)-7.91%
Ford Motor Credit Co.
5.36% 10/21/96 40,000 39,332,978
- ----------------------------------------------------------------------------------------------
Toyota Motor Credit Corp.
5.38% 07/09/96 25,000 24,970,111
- ----------------------------------------------------------------------------------------------
64,303,089
- ----------------------------------------------------------------------------------------------
BROKER/DEALER-5.98%
Merrill Lynch & Co. Inc.
5.30% 10/07/96 4,090 4,030,992
- ----------------------------------------------------------------------------------------------
5.42% 10/10/96 25,000 24,619,847
- ----------------------------------------------------------------------------------------------
Smith Barney, Inc.
5.38% 07/02/96 20,000 19,997,011
- ----------------------------------------------------------------------------------------------
48,647,850
- ----------------------------------------------------------------------------------------------
COMPUTER MINI/PCS-0.67%
Hewlett-Packard Co.
5.00% 07/26/96 5,500 5,480,903
- ----------------------------------------------------------------------------------------------
FINANCE (LEASING COMPANIES)-5.39%
Hertz Corp. (The)
5.30% 07/16/96 25,000 24,944,792
- ----------------------------------------------------------------------------------------------
5.30% 07/19/96 12,000 11,968,200
- ----------------------------------------------------------------------------------------------
International Lease Finance Corp.
5.28% 08/09/96 7,000 6,959,960
- ----------------------------------------------------------------------------------------------
43,872,952
- ----------------------------------------------------------------------------------------------
</TABLE>
<PAGE> 4
Financials
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE
<S> <C> <C> <C>
FINANCE (PERSONAL CREDIT)-5.62%
Avco Financial Services, Inc.
5.28% 08/19/96 $ 11,000 $ 10,920,947
- ----------------------------------------------------------------------------------------------
Household Finance Corp.
5.30% 08/12/96 35,000 34,783,583
- ----------------------------------------------------------------------------------------------
45,704,530
- ----------------------------------------------------------------------------------------------
INSURANCE (LIFE)-3.06%
Cargill Financial Services Corp.
4.83% 08/12/96 25,000 24,859,125
- ----------------------------------------------------------------------------------------------
MEDICAL (DRUGS)-1.22%
Lilly (Eli) and Co.
4.83% 08/22/96 10,000 9,930,234
- ----------------------------------------------------------------------------------------------
OIL & GAS-1.35%
Petrofina Delaware, Inc.
5.50% 07/05/96 11,000 10,993,278
- ----------------------------------------------------------------------------------------------
POLLUTION CONTROL-1.47%
Browning-Ferris Industries, Inc.
5.36% 08/12/96 12,000 11,924,960
- ----------------------------------------------------------------------------------------------
Total Commercial Paper 380,112,646
- ----------------------------------------------------------------------------------------------
MASTER NOTE AGREEMENTS-11.43%
Citicorp Securities, Inc.(b)
5.875% 09/09/96 21,000 21,000,000
- ----------------------------------------------------------------------------------------------
Morgan (J.P.) & Co. Inc.(c)
5.725% 10/09/96 44,000 44,000,000
- ----------------------------------------------------------------------------------------------
Morgan Stanley Group Inc.(d)
5.695% 07/31/96 28,000 28,000,000
- ----------------------------------------------------------------------------------------------
Total Master Note Agreements 93,000,000
- ----------------------------------------------------------------------------------------------
U.S. TREASURY SECURITIES-6.13%
U.S. Treasury Bills(e)-3.05%
4.785% 08/29/96 25,000 24,803,948
- ----------------------------------------------------------------------------------------------
U.S. Treasury Notes-3.08%
6.50% 09/30/96 25,000 25,091,078
- ----------------------------------------------------------------------------------------------
Total U.S. Treasury Securities 49,895,026
- ----------------------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY SECURITIES-5.48%
Federal National Mortgage Association
5.45%(f) 06/02/99 32,000 32,000,000
- ----------------------------------------------------------------------------------------------
Student Loan Marketing Association
5.43%(f) 08/20/98 2,600 2,600,000
- ----------------------------------------------------------------------------------------------
5.45%(f) 02/08/99 10,000 10,004,412
- ----------------------------------------------------------------------------------------------
Total U.S. Government Agency Securities 44,604,412
- ----------------------------------------------------------------------------------------------
Total Investments (excluding Repurchase
Agreements) 567,612,084
- ----------------------------------------------------------------------------------------------
</TABLE>
2
<PAGE> 5
Financials
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE
<S> <C> <C> <C>
REPURCHASE AGREEMENTS(g)-26.96%
Daiwa Securities America Inc.(h)
5.50% 07/01/96 $ 209,000 $209,000,000
- ----------------------------------------------------------------------------------------------
Goldman Sachs & Co.(i)
5.47% 07/01/96 10,263 10,263,219
- ----------------------------------------------------------------------------------------------
Total Repurchase Agreements 219,263,219
- ----------------------------------------------------------------------------------------------
TOTAL INVESTMENTS-96.73% 786,875,303(j)
- ----------------------------------------------------------------------------------------------
OTHER ASSETS LESS LIABILITIES-3.27% 26,606,738
- ----------------------------------------------------------------------------------------------
NET ASSETS-100.00% $813,482,041
==============================================================================================
</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 three business days notice. Interest rate on the
master note is redetermined periodically. Rate shown is the rate in
effect on June 30, 1996.
(c) The Fund may demand prepayment of notes purchased under the Master Note
Purchase Agreement upon seven calendar days notice. Interest rates on
master notes are determined periodically. Rate shown is the rate in
effect on June 30, 1996.
(d) Master Note Purchase Agreement may be terminated by either party as of any
business day upon not less than three business days' notice, at which
time all amounts outstanding under the notes purchased under the Master
Note Purchase Agreement will become payable. Interest rate shown is the
rate in effect on June 30, 1996.
(e) 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 of purchase by the Fund.
(f) Interest rates are redetermined weekly. Rates shown are rates in effect
on June 30, 1996.
(g) 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% of the
sales price of the repurchase agreement. The investments in some
repurchase agreements are through participation in joint accounts with
other mutual funds, private accounts and certain non-registered
investment companies managed by the investment advisor or its affiliates.
(h) Joint repurchase agreement entered into 06/28/96 with a maturing value of
$270,069,404. Collateralized by $258,303,000 U.S. Treasury obligations,
7.875% due 11/15/07.
(i) Joint repurchase agreement entered into 06/28/96 with a maturing value of
$110,313,481. Collateralized by $84,304,000 U.S. Treasury obligations,
6.00% to 11.25% due 08/31/97 to 02/15/15.
(j) Also represents cost for federal income tax purposes.
See Notes to Financial Statements.
3
<PAGE> 6
Financials
STATEMENT OF ASSETS AND LIABILITIES
June 30, 1996
(Unaudited)
<TABLE>
<S> <C>
ASSETS:
Investments, excluding repurchase agreements, at value (amortized cost) $567,612,084
- -----------------------------------------------------------------------------------------
Repurchase agreements 219,263,219
- -----------------------------------------------------------------------------------------
Receivables for:
Capital stock sold 41,374,063
- -----------------------------------------------------------------------------------------
Interest 1,164,898
- -----------------------------------------------------------------------------------------
Investment for deferred compensation plan 76,684
- -----------------------------------------------------------------------------------------
Other assets 130,350
- -----------------------------------------------------------------------------------------
Total assets 829,621,298
- -----------------------------------------------------------------------------------------
LIABILITIES:
Payables for:
Capital stock reacquired 14,933,084
- -----------------------------------------------------------------------------------------
Dividends 125,550
- -----------------------------------------------------------------------------------------
Deferred compensation plan 76,684
- -----------------------------------------------------------------------------------------
Accrued advisory fees 366,010
- -----------------------------------------------------------------------------------------
Accrued administrative service fees 4,374
- -----------------------------------------------------------------------------------------
Accrued distribution fees 524,139
- -----------------------------------------------------------------------------------------
Accrued operating expenses 28,701
- -----------------------------------------------------------------------------------------
Accrued transfer agent fees 80,715
- -----------------------------------------------------------------------------------------
Total liabilities 16,139,257
- -----------------------------------------------------------------------------------------
Net assets applicable to shares outstanding $813,482,041
=========================================================================================
NET ASSETS:
Class A $254,802,917
=========================================================================================
Class B $109,267,563
=========================================================================================
Class C $449,411,561
=========================================================================================
SHARES OUTSTANDING, $0.01 PAR VALUE PER SHARE:
Class A 254,809,534
=========================================================================================
Class B 109,269,892
=========================================================================================
Class C 449,421,224
=========================================================================================
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.
4
<PAGE> 7
Financials
STATEMENT OF OPERATIONS
For the six months ended June 30, 1996
(Unaudited)
<TABLE>
<S> <C>
INVESTMENT INCOME:
Interest $18,282,264
- ----------------------------------------------------------------------------------------
EXPENSES:
Advisory fees 1,863,228
- ----------------------------------------------------------------------------------------
Custodian fees 46,990
- ----------------------------------------------------------------------------------------
Distribution fees -- Class A 301,643
- ----------------------------------------------------------------------------------------
Distribution fees -- Class B 424,619
- ----------------------------------------------------------------------------------------
Distribution fees -- Class C 440,504
- ----------------------------------------------------------------------------------------
Trustees' fees 4,991
- ----------------------------------------------------------------------------------------
Transfer agent fees -- Class A 252,331
- ----------------------------------------------------------------------------------------
Transfer agent fees -- Class B 84,689
- ----------------------------------------------------------------------------------------
Transfer agent fees -- Class C 381,697
- ----------------------------------------------------------------------------------------
Administrative service fees 26,244
- ----------------------------------------------------------------------------------------
Other 146,026
- ----------------------------------------------------------------------------------------
Total expenses 3,972,962
- ----------------------------------------------------------------------------------------
Net investment income 14,309,302
- ----------------------------------------------------------------------------------------
Net realized gain on sales of investments 74,512
- ----------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $14,383,814
========================================================================================
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
For the six months ended June 30, 1996 and the year ended December 31, 1995
(Unaudited)
<TABLE>
<CAPTION>
JUNE 30, DECEMBER 31,
1996 1995
------------ ------------
<S> <C> <C>
OPERATIONS:
Net investment income $ 14,309,302 $ 22,864,306
- ----------------------------------------------------------------------------------------------------
Net realized gain (loss) on sales of investment
securities 74,512 (93,121)
- ----------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 14,383,814 22,771,185
- ----------------------------------------------------------------------------------------------------
Distributions to shareholders from net investment income:
Class A (5,209,815) (8,071,868)
- ----------------------------------------------------------------------------------------------------
Class B (1,517,890) (1,577,348)
- ----------------------------------------------------------------------------------------------------
Class C (7,581,597) (13,215,090)
- ----------------------------------------------------------------------------------------------------
Share transactions-net:
Class A 33,289,832 72,633,973
- ----------------------------------------------------------------------------------------------------
Class B 39,405,756 35,865,178
- ----------------------------------------------------------------------------------------------------
Class C 155,918,261 (66,448,589)
- ----------------------------------------------------------------------------------------------------
Net increase in net assets 228,688,361 41,957,441
- ----------------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 584,793,680 542,836,239
- ----------------------------------------------------------------------------------------------------
End of period $813,482,041 $584,793,680
====================================================================================================
NET ASSETS CONSIST OF:
Shares of beneficial interest $813,500,650 $584,886,801
- ----------------------------------------------------------------------------------------------------
Undistributed net realized gain (loss) on sales of investments (18,609) (93,121)
- ----------------------------------------------------------------------------------------------------
$813,432,041 $584,793,680
====================================================================================================
</TABLE>
See Notes to Financial Statements.
5
<PAGE> 8
Financials
NOTES TO FINANCIAL STATEMENTS
June 30, 1996
(Unaudited)
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 six months ended June 30, 1996, AIM
was reimbursed $26,244 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 six months
ended June 30, 1996, the Fund paid AFS $409,234 for such services.
6
<PAGE> 9
Financials
NOTE 2 - ADVISORY FEES AND OTHER TRANSACTIONS WITH AFFILIATES (continued)
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 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 six
months ended June 30, 1996, the Class A shares, the Class B shares and the Class
C shares paid AIM Distributors $301,643, $424,619 and $440,504, respectively, as
compensation under the Plans.
AIM Distributors received commissions of $406,815 from sales of the Class A
shares of the Fund during the six months ended June 30, 1996. 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 six months ended June 30,
1996, AIM Distributors received $104,706 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 six months ended June 30, 1996, the Fund paid legal fees of $1,924
for services rendered by Kramer, Levin, Naftalis & 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.
7
<PAGE> 10
Financials
NOTE 4 - SHARE INFORMATION
Changes in shares outstanding during the six months ended June 30, 1996 and the
year ended December 31, 1995 were as follows:
<TABLE>
<CAPTION>
JUNE 30, 1996 DECEMBER 31, 1995
----------------------------------- -----------------------------------
SHARES AMOUNT SHARES AMOUNT
-------------- --------------- -------------- ---------------
<S> <C> <C> <C> <C>
Sold:
Class A 980,956,985 $ 980,956,985 1,236,115,617 $ 1,236,115,617
- --------------------------------------- ----------------------------------- ----------------------------------
Class B 192,365,568 192,365,568 150,618,548 150,618,548
- --------------------------------------- ----------------------------------- ----------------------------------
Class C 2,002,775,938 2,002,775,938 3,387,330,655 3,387,330,655
- --------------------------------------- ----------------------------------- ----------------------------------
Issued as reinvestment of dividends:
Class A 4,470,753 4,470,753 7,057,740 7,057,740
- --------------------------------------- ----------------------------------- ----------------------------------
Class B 1,343,459 1,343,459 1,412,061 1,412,061
- --------------------------------------- ----------------------------------- ----------------------------------
Class C 6,374,834 6,374,834 10,700,895 10,700,895
- --------------------------------------- ----------------------------------- ----------------------------------
Reacquired:
Class A (952,137,906) (952,137,906) (1,170,539,384) (1,170,539,384)
- --------------------------------------- ----------------------------------- ----------------------------------
Class B (154,303,271) (154,303,271) (116,165,431) (116,165,431)
- --------------------------------------- ----------------------------------- ----------------------------------
Class C (1,853,232,511) (1,853,232,511) (3,464,480,139) (3,464,480,139)
- --------------------------------------- ----------------------------------- ----------------------------------
228,613,849 $ 228,613,849 42,050,562 $ 42,050,562
======================================= =================================== ==================================
</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 the six months ended June 30,
1996, 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
---------------------------------------------- ---------------------------------------------
DECEMBER 31, DECEMBER 31,
JUNE 30, -------------------------------- JUNE 30, -------------------------------
1996 1995 1994 1993 1996 1995 1994 1993
-------- -------- -------- -------- -------- ------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
- ------------------------- -------- -------- -------- -------- -------- ------- -------- --------
Income from investment
operations:
Net investment income 0.0215 0.0495 0.0337 0.0048 0.0178 0.0419 0.0259 0.0032
- ------------------------- -------- -------- -------- -------- -------- ------- -------- --------
Less distributions:
Dividends from net
investment income (0.0215) (0.0495) (0.0337) (0.0048) (0.0178) (0.0419) (0.0259) (0.0032)
- ------------------------- -------- -------- -------- -------- -------- ------- -------- --------
Net asset value, end
of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========================= ======== ======== ======== ======== ======== ======= ======== ========
Total return(a) 4.36% 5.06% 3.43% 2.27% 3.62% 4.27% 2.62% 1.51%
========================= ======== ======== ======== ======== ======== ======= ======== ========
Ratios/supplemental data:
Net assets, end of period
(000s omitted) $254,803 $221,487 $148,886 $ 81,460 $109,268 $ 69,857 $ 33,999 $ 1,289
========================= ======== ======== ======== ======== ======== ======= ======== ========
Ratio of expenses to
average net assets 1.07%(b) 1.03% 0.97%(c) 1.00%(c)(d) 1.81%(b) 1.78% 1.78%(e) 1.75%(d)(e)
========================= ======== ======== ======== ======== ======== ======= ======== ========
Ratio of net investment
income to average net
assets 4.32%(b) 4.91% 3.53%(c) 2.27%(c)(d) 3.57%(b) 4.14% 3.14%(e) 1.54%(d)(e)
========================= ======== ======== ======== ======== ======== ======= ======== ========
<CAPTION>
CLASS C SHARES
-----------------------------------------------
DECEMBER 31,
JUNE 30, ---------------------------------
1996 1995 1994 1993
--------- -------- -------- --------
<S> <C> <C> <C> <C>
Net asset value,
beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00
- ------------------------- -------- -------- -------- --------
Income from investment
operations:
Net investment income 0.0214 0.0493 0.0337 0.0048
- ------------------------- -------- -------- -------- --------
Less distributions:
Dividends from net
investment income (0.0214) (0.0493) (0.0337) (0.0048)
- ------------------------- -------- -------- -------- --------
Net asset value, end of
period $ 1.00 $ 1.00 $ 1.00 $ 1.00
- ------------------------- -------- -------- -------- --------
Total return(a) 4.34% 5.04% 3.42% 2.27%
========================= ======== ======== ======== ========
Ratios/supplemental data:
Net assets, end of period
(000s omitted) $449,412 $293,450 $359,952 $241,778
========================= ======== ======== ======== ========
Ratio of expenses to
average net assets 1.08%(b) 1.04% 0.99%(f) 1.00%(d)(f)
========================= ======== ======== ======== ========
Ratio of net investment
income to average net
assets 4.30%(b) 4.92% 3.49%(f) 2.27%(d)(f)
========================= ======== ======== ======== ========
</TABLE>
(a) Does not deduct sales charges or contingent deferred sales charges, where
applicable.
(b) Ratios are annualized and based on average daily net assets as follows:
Class A Shares - $242,646,552, Class B Shares - $85,390,321 and Class C
Shares - $354,339,256.
(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.
8
<PAGE> 11
Trustees &
Officers
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<S> <C> <C>
TRUSTEES OFFICERS OFFICE OF THE FUND
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
Formerly Director, President, and Chief
Executive Officer John J. Arthur A I M Advisors, Inc.
COMSAT Corporation Senior Vice President and Treasurer 11 Greenway Plaza
Suite 1919
Owen Daly II Gary T. Crum Houston, TX 77046
Director Senior Vice President
Cortland Trust Inc. TRANSFER AGENT
Scott G. Lucas
Carl Frischling Senior Vice President A I M Fund Services, Inc.
Partner P.O. Box 4739
Kramer, Levin, Naftalis & Frankel Carol F. Relihan Houston, TX 77210-4739
Senior Vice President and Secretary
Robert H. Graham CUSTODIAN
President and Chief Operating Officer Robert G. Alley
A I M Management Group Inc. Vice President State Street Bank & Trust Company
225 Franklin Street
John F. Kroeger Stuart W. Coco Boston, MA 02110
Formerly, Consultant Vice President
Wendell & Stockel Associates, Inc. COUNSEL TO THE FUND
Melville B. Cox
Lewis F. Pennock Vice President Ballard Spahr
Attorney Andrews & Ingersoll
Karen Dunn Kelley 1735 Market Street
Ian W. Robinson Vice President Philadelphia, PA 19103
Consultant; Formerly Executive
Vice President and Chief Financial Officer Jonathan C. Schoolar COUNSEL TO THE TRUSTEES
Bell Atlantic Management Vice President
Services, Inc. Kramer, Levin, Naftalis & Frankel
Dana R. Sutton 919 Third Avenue
Louis S. Sklar Vice President and Assistant Treasurer New York, NY 10022
Executive Vice President
Hines Interests P. Michelle Grace DISTRIBUTOR
Limited Partnership Assistant Secretary
A I M Distributors, Inc.
David L. Kite 11 Greenway Plaza
Assistant Secretary Suite 1919
Houston, TX 77046
Nancy L. Martin
Assistant Secretary
Ofelia M. Mayo
Assistant Secretary
Kathleen J. Pflueger
Assistant Secretary
Samuel D. Sirko
Assistant Secretary
Stephen I. Winer
Assistant Secretary
Mary J. Benson
Assistant Treasurer
</TABLE>
Mutual funds, annuities, and other investments are not insured by the FDIC or
any other government agency; are not deposits or other obligations of, or
guaranteed by, any bank or any affiliate; and are subject to investment risks,
including possible loss of principal amount invested.
This report may be distributed only to current shareholders or to persons
who have received a current prospectus of the Fund.
<PAGE> 12
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<S> <C>
[PHOTO OF 11 GREENWAY PLAZA] THE AIM FAMILY OF FUNDS--Registered Trademark--
AGGRESSIVE GROWTH
AIM Aggressive Growth Fund*
AIM Capital Development Fund
AIM Constellation Fund
AIM Global Aggressive Growth Fund
GROWTH
AIM Blue Chip Fund
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 Management Group has provided *AIM Aggressive Growth Fund was
leadership in the mutual fund industry closed to new investors on July 18,
since 1976 and currently manages 1995. **On September 25, 1995, AIM
approximately $55 billion in assets Government Securities Fund became
for more than 3 million shareholders, AIM Intermediate Government Fund.
including individual investors, For more complete information about
corporate clients, and financial any AIM Fund(s), including sales
institutions. The AIM Family of charges and expenses, ask your
Funds--Registered Trademark-- is financial consultant or securities
distributed nationwide, and AIM today dealer for a free prospectus(es).
ranks among the nation's top 15 mutual Please read the prospectus(es)
fund companies in assets under carefully before you invest or send
management, according to Lipper money.
Analytical Services, Inc.
[AIM LOGO APPEARS HERE] ------------------
BULK RATE
A I M Distributors, Inc. U.S. POSTAGE
11 Greenway Plaza, Suite 1919 PAID
Houston, TX 77046 HOUSTON, TX
Permit No. 1919
------------------
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