<PAGE> 1
[PHOTO APPEARS HERE]
AIM MONEY
MARKET FUND
[AIM LOGO APPEARS HERE] ANNUAL REPORT DECEMBER 31, 1996
<PAGE> 2
Chairman's Letter
Dear Fellow Shareholder:
We are pleased to send you this report on AIM Money Market
[PHOTO OF Fund for its 1996 fiscal year, a year during which interest
Charles T. rates fluctuated considerably even though Federal Reserve
Bauer, Board policy remained constant.
Chairman of In January 1996, the Federal Reserve Board lowered the
the Board of Federal Funds rate, which acts as a target for other interest
the Fund, rates, to 5.25%, as concern focused on the possibility of an
APPEARS HERE] economic downturn. That target rate was unchanged the rest of
the year. However, other interest rates varied as economic
signals shifted and markets attempted to foretell Fed action.
Instead of producing the threatened downturn, the economy grew at an annual
rate of 4.7% during the second quarter of the year. Rates rose in response, as
markets factored in the possibility the Fed would boost rates if it thought
economic overheating was imminent. From 4.97% at the opening of the fiscal
year, the yield on a three-month Treasury bill rose to a 1996 high of 5.36% on
September 5. At longer maturities, rates rose more than 100 basis points. (A
basis point is one one-hundredth of a percentage point.)
As the year advanced, economic growth appeared to settle at a sustainable,
noninflationary rate: 2.1% for the third quarter of 1996. For the year, the
economy grew at an annual rate of 2.5%. Inflation, likewise, continued to be
tame. For all of 1996, the core rate of inflation for producer prices was a
mere 0.6%.
Interest rates receded as such data changed market expectations and the
likelihood faded that the Fed would raise the 5.25% Federal Funds benchmark.
Yield on the three-month Treasury bill retreated to 5.17% by the time the
fiscal year closed. The advance and then decline in interest rates over the
course of 1996 led one market strategist to dub it "a round-trip year."
While market expectations shifted during the fiscal year, the Fund continued
to produce steady income. As of December 31, 1996, the seven-day yield was
4.50% for Class A Shares of the Fund, 3.76% for Class B Shares, and 4.49% for
Class C Shares. Net assets of the Fund stood at $694.5 million at the close of
the fiscal year, up from $584.8 million as it opened.
Because markets were changeable during 1996, AIM Money Market Fund managers
gradually shortened the weighted average maturity of the Fund's portfolio to
the 25- to 30-day range. The weighted average maturity of the portfolio was 26
days at the close of the fiscal year, down from 34 days as it opened. Although
Fed policy is expected to remain on hold for the near term, Fund managers
remain cautious and therefore will maintain this short maturity structure,
which enables the Fund to respond swiftly to any change in the market
environment.
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.
If you have any questions or comments about this report, please call our
Client Services department at 800-959-4246 during normal business hours. As
always, we are pleased to respond to your inquiries. For automated account
information 24 hours per day, please dial the AIM Investor Line toll-free at
800-246-5463 or visit our Internet Web site at http://www.aimfunds.com.
Thank you for your continued participation in The AIM Family of Funds
- --Registered Trademark--.
Respectfully submitted,
/s/ CHARLES T. BAUER
Charles T. Bauer
Chairman
-------------------------------
The advance and
then decline in interest rates
over the course of 1996
led one market strategist
to dub it
"a round-trip year."
-------------------------------
<PAGE> 3
SCHEDULE OF INVESTMENTS
December 31, 1996
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE
<S> <C> <C> <C>
COMMERCIAL PAPER-43.99%(a)
ASSET-BACKED SECURITIES-17.04%
Asset Securitization
Cooperative Corp.
5.33% 01/15/97 $12,000 $ 11,975,127
- ----------------------------------------------------------------
5.32% 03/11/97 15,000 14,847,050
- ----------------------------------------------------------------
5.35% 03/11/97 6,000 5,938,475
- ----------------------------------------------------------------
Delaware Funding Corp.
5.34% 01/31/97 13,000 12,942,150
- ----------------------------------------------------------------
5.40% 02/18/97 20,000 19,856,000
- ----------------------------------------------------------------
Monte Rosa Capital Corp.
5.50% 01/22/97 16,000 15,948,667
- ----------------------------------------------------------------
5.36% 03/12/97 4,000 3,958,311
- ----------------------------------------------------------------
Receivables Capital Corp.
5.46% 01/08/97 15,000 14,984,075
- ----------------------------------------------------------------
5.43% 01/16/97 7,000 6,984,162
- ----------------------------------------------------------------
Sheffield Receivables Corp.
5.37% 02/07/97 11,000 10,939,289
- ----------------------------------------------------------------
118,373,306
- ----------------------------------------------------------------
AUTOMOBILE-2.12%
Ford Motor Credit Co.
5.32% 04/28/97 15,000 14,740,650
- ----------------------------------------------------------------
FINANCE (ASSET
MANAGEMENT)-5.73%
Merrill Lynch & Co., Inc.
5.35% 02/04/97 25,000 24,873,681
- ----------------------------------------------------------------
5.35% 02/10/97 15,000 14,910,833
- ----------------------------------------------------------------
39,784,514
- ----------------------------------------------------------------
FINANCE (BUSINESS CREDIT)-2.15%
National Rural Utilities
Cooperative Finance Corp.
5.29% 02/11/97 10,000 9,939,752
- ----------------------------------------------------------------
Pitney Bowes Credit Corp.
5.36% 01/16/97 5,000 4,988,833
- ----------------------------------------------------------------
14,928,585
- ----------------------------------------------------------------
FINANCE (CONSUMER CREDIT)-3.56%
International Lease Finance
Corp.
5.31% 03/04/97 15,000 14,862,825
- ----------------------------------------------------------------
5.29% 03/26/97 10,000 9,876,566
- ----------------------------------------------------------------
24,739,391
- ----------------------------------------------------------------
FINANCE (MISCELLANEOUS)-0.71%
BTR Dunlop Finance Inc.
5.33% 03/06/97 5,000 4,952,622
- ----------------------------------------------------------------
FINANCE (PERSONAL CREDIT)-2.67%
Student Loan Corp.
5.27% 03/12/97 10,000 9,897,528
- ----------------------------------------------------------------
Transamerica Finance Corp.
5.32% 03/12/97 8,700 8,610,004
- ----------------------------------------------------------------
18,507,532
- ----------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE
<S> <C> <C> <C>
MEDICAL (DRUGS)-2.14%
Bayer Corp.
5.30% 03/03/97 $15,000 $ 14,865,292
- ----------------------------------------------------------------
OIL & GAS (INTEGRATED)-6.30%
Mobil Australia Finance Co.
Inc.
5.30% 02/28/97 10,000 9,914,611
- ----------------------------------------------------------------
5.37% 03/18/97 24,172 23,897,970
- ----------------------------------------------------------------
Petrofina Delaware, Inc.
5.40% 01/27/97 10,000 9,961,000
- ----------------------------------------------------------------
43,773,581
- ----------------------------------------------------------------
PUBLISHING-0.71%
McGraw-Hill Inc.
5.32% 03/11/97 5,000 4,949,017
- ----------------------------------------------------------------
TELEPHONE-0.86%
MCI Communications Corp.
5.30% 02/20/97 6,000 5,955,833
- ----------------------------------------------------------------
Total Commercial Paper 305,570,323
- ----------------------------------------------------------------
MEDIUM-TERM NOTES-2.45%
FINANCE (BUSINESS CREDIT)-1.73%
CIT Group Holdings (The),
Inc.(b)
5.61% 03/19/97 12,000 11,998,297
- ----------------------------------------------------------------
OIL & GAS (INTEGRATED)-0.72%
Shell Oil Co.
6.00% 01/15/97 5,000 5,000,800
- ----------------------------------------------------------------
Total Medium-Term Notes 16,999,097
- ----------------------------------------------------------------
MASTER NOTE AGREEMENTS-13.68%
Citicorp Securities, Inc.(c)
7.25% 01/27/97 48,000 48,000,000
- ----------------------------------------------------------------
Goldman Sachs & Co.(d)
7.13% 04/23/97 19,000 19,000,000
- ----------------------------------------------------------------
Morgan (J.P.) Securities,
Inc.(e)
5.563% 04/07/97 28,000 28,000,000
- ----------------------------------------------------------------
Total Master Note
Agreements 95,000,000
- ----------------------------------------------------------------
U.S. GOVERNMENT AGENCY
SECURITIES-6.42%
Federal National Mortgage
Association
5.29%(f) 06/02/99 32,000 32,000,000
- ----------------------------------------------------------------
Student Loan Marketing
Association
5.24%(f) 08/20/98 2,600 2,600,000
- ----------------------------------------------------------------
5.26%(f) 02/08/99 10,000 10,003,558
- ----------------------------------------------------------------
Total U.S. Government
Agency Securities 44,603,558
- ----------------------------------------------------------------
Total Investments
(excluding Repurchase
Agreements) 462,172,978
- ----------------------------------------------------------------
REPURCHASE AGREEMENTS(g)-26.81%
Dresdner Securities (USA),
Inc.(h)
7.05% 01/02/97 96,167 96,166,506
- ----------------------------------------------------------------
HSBC Securities, Inc.(i)
7.05% 01/02/97 30,000 30,000,000
- ----------------------------------------------------------------
</TABLE>
2
<PAGE> 4
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE
<S> <C> <C> <C>
</TABLE>
REPURCHASE AGREEMENTS-(CONTINUED)
SBC Capital Markets Inc.(j)
6.25% 01/02/97 $30,000 $ 30,000,000
- ----------------------------------------------------------------
UBS Securities Inc.(k)
7.05% 01/02/97 30,000 30,000,000
- ----------------------------------------------------------------
Total Repurchase
Agreements 186,166,506
- ----------------------------------------------------------------
TOTAL INVESTMENTS-93.35% 648,339,484(l)
- ----------------------------------------------------------------
OTHER ASSETS LESS
LIABILITIES-6.65% 46,183,911
- ----------------------------------------------------------------
NET ASSETS-100.00% $694,523,395
================================================================
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) Interest rate is redetermined daily. Rate shown is the rate in effect on
December 31, 1996.
(c) The Fund may demand prepayment of notes purchased under the Master Note
Purchase Agreement upon three business days notice. Interest rates on master
notes are redetermined periodically. Rate shown is the rate in effect on
December 31, 1996.
(d) The Fund may demand prepayment of notes purchased under the Master Note
Purchase Agreement upon notice to the issuer. Interest rates on master notes
are redetermined periodically. Rate shown is the rate in effect on December
31, 1996.
(e) 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 redetermined periodically. Rate shown is the rate in effect on
December 31, 1996.
(f) Interest rates are redetermined weekly. Rates shown are the rates in effect
on December 31, 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 12/31/96 with a maturing value of
$100,039,167. Collateralized by $136,515,003 U.S. Government obligations, 0%
to 9.00% due 01/01/09 to 08/01/34.
(i) Joint repurchase agreement entered into 12/31/96 with a maturing value of
$300,117,500. Collateralized by $633,913,662 U.S. Government obligations,
0% to 8.00% due 07/16/97 to 11/01/35.
(j) Joint repurchase agreement entered into 12/31/96 with a maturing value of
$400,138,889. Collateralized by $473,268,844 U.S. Government obligations,
5.035% to 7.679% due 03/03/97 to 03/01/33 and $44,915,000 U.S. Treasury
obligations, 0% due 02/15/09 to 11/15/13.
(k) Joint repurchase agreement entered into 12/31/96 with a maturing value of
$550,215,417. Collateralized by $732,485,305 U.S. Government obligations, 0%
to 9.50% due 01/01/98 to 12/15/26.
(l) Also represents cost for federal income tax purposes.
See Notes to Financial Statements.
3
<PAGE> 5
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1996
<TABLE>
<S> <C>
ASSETS:
Investments, excluding repurchase
agreements, at value (amortized cost) $462,172,978
- ---------------------------------------------------------
Repurchase agreements 186,166,506
- ---------------------------------------------------------
Receivables for:
Capital stock sold 77,420,534
- ---------------------------------------------------------
Interest 891,168
- ---------------------------------------------------------
Investment for deferred compensation plan 85,314
- ---------------------------------------------------------
Other assets 139,530
- ---------------------------------------------------------
Total assets 726,876,030
- ---------------------------------------------------------
LIABILITIES:
Payables for:
Capital stock reacquired 31,044,304
- ---------------------------------------------------------
Dividends 186,678
- ---------------------------------------------------------
Deferred compensation plan 85,314
- ---------------------------------------------------------
Accrued advisory fees 306,767
- ---------------------------------------------------------
Accrued administrative service fees 6,175
- ---------------------------------------------------------
Accrued distribution fees 509,055
- ---------------------------------------------------------
Accrued operating expenses 25,729
- ---------------------------------------------------------
Accrued transfer agent fees 188,613
- ---------------------------------------------------------
Total liabilities 32,352,635
- ---------------------------------------------------------
Net assets applicable to shares outstanding $694,523,395
=========================================================
NET ASSETS:
Class A $287,905,201
=========================================================
Class B $ 91,148,487
=========================================================
Class C $315,469,707
=========================================================
SHARES OUTSTANDING, $0.01 PAR VALUE PER SHARE:
Class A 287,864,283
=========================================================
Class B 91,170,897
=========================================================
Class C 315,473,235
=========================================================
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>
STATEMENT OF OPERATIONS
For the year ended December 31, 1996
<TABLE>
<S> <C>
INVESTMENT INCOME:
Interest $40,647,910
- ---------------------------------------------------------
EXPENSES:
Advisory fees 4,136,659
- ---------------------------------------------------------
Custodian fees 80,854
- ---------------------------------------------------------
Distribution fees -- Class A 666,569
- ---------------------------------------------------------
Distribution fees -- Class B 990,337
- ---------------------------------------------------------
Distribution fees -- Class C 964,703
- ---------------------------------------------------------
Trustees' fees 10,124
- ---------------------------------------------------------
Transfer agent fees -- Class A 582,756
- ---------------------------------------------------------
Transfer agent fees -- Class B 266,042
- ---------------------------------------------------------
Transfer agent fees -- Class C 741,975
- ---------------------------------------------------------
Administrative service fees 58,665
- ---------------------------------------------------------
Other 354,001
- ---------------------------------------------------------
Total expenses 8,852,685
- ---------------------------------------------------------
Less: Expenses paid indirectly (11,126)
- ---------------------------------------------------------
Net expenses 8,841,559
- ---------------------------------------------------------
Net investment income 31,806,351
- ---------------------------------------------------------
Net realized gain on sales of investments 108,101
- ---------------------------------------------------------
Net increase in net assets resulting from
operations $31,914,452
=========================================================
</TABLE>
See Notes to Financial Statements.
4
<PAGE> 6
STATEMENT OF CHANGES IN NET ASSETS
For the years ended December 31, 1996 and 1995
<TABLE>
<CAPTION>
1996 1995
<S> <C> <C>
OPERATIONS:
Net investment income $ 31,806,351 $ 22,864,306
- ------------------------------------------------------------------------------------------
Net realized gain (loss) on sales of investment securities 108,101 (93,121)
- ------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 31,914,452 22,771,185
- ------------------------------------------------------------------------------------------
Distributions to shareholders from net investment income:
Class A (11,567,004) (8,071,868)
- ------------------------------------------------------------------------------------------
Class B (3,560,364) (1,577,348)
- ------------------------------------------------------------------------------------------
Class C (16,678,983) (13,215,090)
- ------------------------------------------------------------------------------------------
Share transactions-net:
Class A 66,344,581 72,633,973
- ------------------------------------------------------------------------------------------
Class B 21,306,761 35,865,178
- ------------------------------------------------------------------------------------------
Class C 21,970,272 (66,448,589)
- ------------------------------------------------------------------------------------------
Net increase in net assets 109,729,715 41,957,441
- ------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 584,793,680 542,836,239
- ------------------------------------------------------------------------------------------
End of period $694,523,395 $584,793,680
==========================================================================================
NET ASSETS CONSIST OF:
Shares of beneficial interest $694,508,415 $584,886,801
- ------------------------------------------------------------------------------------------
Undistributed net realized gain (loss) on sales of
investments 14,980 (93,121)
- ------------------------------------------------------------------------------------------
$694,523,395 $584,793,680
==========================================================================================
</TABLE>
See Notes to Financial Statements.
NOTES TO FINANCIAL STATEMENTS
December 31, 1996
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.
5
<PAGE> 7
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.
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.
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, 1996, AIM
was reimbursed $58,665 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, 1996, the Fund paid AFS $897,280 for such services.
The Fund received reductions in transfer agency fees payable to AFS of $11,126
from dividends received on balances in cash management bank accounts which
resulted in a reduction in the Fund's total expenses.
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 shares. During the
year ended December 31, 1996, the Class A shares, the Class B shares and the
Class C shares paid AIM Distributors $666,569, $990,337 and $964,703,
respectively, as compensation under the Plans.
AIM Distributors received commissions of $736,782 from sales of the Class A
shares of the Fund during the year ended December 31, 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 year ended December 31, 1996,
AIM Distributors received $211,316 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, 1996, the Fund paid legal fees of $4,488
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.
6
<PAGE> 8
NOTE 4-SHARE INFORMATION
Changes in shares outstanding during the years ended December 31, 1996 and 1995
were as follows:
<TABLE>
<CAPTION>
1996 1995
--------------------------------- ---------------------------------
SHARES AMOUNT SHARES AMOUNT
-------------- --------------- -------------- ---------------
<S> <C> <C> <C> <C>
Sold:
Class A 2,107,832,986 $ 2,107,832,986 1,236,115,617 $ 1,236,115,617
- ----------------------------------------------------- --------------------------------- ---------------------------------
Class B 334,518,591 334,518,591 150,618,548 150,618,548
- ----------------------------------------------------- --------------------------------- ---------------------------------
Class C 3,871,719,488 3,871,719,488 3,387,330,655 3,387,330,655
- ----------------------------------------------------- --------------------------------- ---------------------------------
Issued as reinvestment of dividends:
Class A 10,061,164 10,061,164 7,057,740 7,057,740
- ----------------------------------------------------- --------------------------------- ---------------------------------
Class B 3,197,896 3,197,896 1,412,061 1,412,061
- ----------------------------------------------------- --------------------------------- ---------------------------------
Class C 14,185,926 14,185,926 10,700,895 10,700,895
- ----------------------------------------------------- --------------------------------- ---------------------------------
Reacquired:
Class A (2,051,549,569) (2,051,549,569) (1,170,539,384) (1,170,539,384)
- ----------------------------------------------------- --------------------------------- ---------------------------------
Class B (316,409,726) (316,409,726) (116,165,431) (116,165,431)
- ----------------------------------------------------- --------------------------------- ---------------------------------
Class C (3,863,935,142) (3,863,935,142) (3,464,480,139) (3,464,480,139)
- ----------------------------------------------------- --------------------------------- ---------------------------------
109,621,614 $ 109,621,614 42,050,562 $ 42,050,562
===================================================== ================================= =================================
</TABLE>
NOTE 5-FINANCIAL HIGHLIGHTS
Shown below are the financial highlights for a Class A share, a Class B share
and a Class C share outstanding during each of the years in the three-year
period ended December 31, 1996 and the period October 16, 1993 (date operations
commenced) through December 31, 1993.
<TABLE>
<CAPTION>
CLASS A SHARES CLASS B SHARES
-------------------------------------------- ---------------------------------------------
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 0.0433 0.0495 0.0337 0.0048 0.0360 .0419 0.0259 0.0032
- ------------------------ -------- -------- ------- -------- -------- ------ -------- --------
Less distributions:
Dividends from net
investment income (0.0433) (0.0495) (0.0337) (0.0048) (0.0360) .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) 4.42% 5.06% 3.43% 2.27%(e) 3.66% 4.27% 2.62% 1.51%(e)
======================== ======== ======== ======== ======== ========= ======= ======== ========
Ratios/supplemental
data:
Net assets, end of
period (000s omitted) $287,905 $221,487 148,886 $ 81,460 $ 91,148 $69,857 $ 33,999 $ 1,289
======================== ======== ======== ======== ======== ========= ======= ======== ========
Ratio of expenses to
average net assets 1.07%(b)(c) 1.03% 0.97%(d) 1.00%(d)(e) 1.81%(b)(c) 1.78% 1.78%(f) 1.75%(e)(f)
======================== ======== ======== ======== ======== ========= ======= ======== ========
Ratio of net investment
income to average net
assets 4.34%(b) 4.91% 3.53%(d) 2.27%(d)(e) 3.60%(b) 4.14% 3.14%(f) 1.54%(e)(f)
======================== ======== ======== ======== ======== ========= ======= ======== ========
<CAPTION>
CLASS C SHARES
-------------------------------------------
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 0.0433 0.0493 0.0337 0.0048
- ------------------------ -------- -------- -------- --------
Less distributions:
Dividends from net
investment income (0.0433) (0.0493) (0.0337) (0.0048)
- ------------------------ -------- -------- -------- --------
Net asset value, end of
period $ 1.00 $ 1.00 $ 1.00 $ 1.00
======================== ======== ======== ======== ========
Total return(a) 4.41% 5.04% 3.42% 2.27%(e)
======================== ======== ======== ======== ========
Ratios/supplemental
data:
Net assets, end of
period (000s omitted) $315,470 $293,450 $359,952 $241,778
======================== ======== ======== ======== ========
Ratio of expenses to
average net assets 1.08%(b)(c) 1.04% 0.99%(g) 1.00%(e)
======================== ======== ======== ======== ========
Ratio of net investment
income to average net
assets 4.32%(b) 4.92% 3.49%(g) 2.27%(e)
======================== ======== ======== ======== ========
</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 -
$266,627,474, Class B Shares - $99,033,713 and Class C Shares -
$385,881,111.
(c) Ratio includes expenses paid indirectly. Excluding expenses paid indirectly
the ratio of expenses to average daily net assets would have been the same.
(d) 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.
(e) Annualized.
(f) 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.
(g) 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.
NOTE 6-SUBSEQUENT EVENT
On November 4, 1996, A I M Management Group Inc. ("AIM Management") and INVESCO
plc announced the execution of an agreement and plan of merger pursuant to which
AIM Management will be merged with and into a direct wholly-owned subsidiary of
INVESCO plc. AIM Management is the parent company of the Fund's advisor. The
merger is expected to take place during the first quarter of 1997.
7
<PAGE> 9
INDEPENDENT AUDITORS' REPORT
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, 1996, 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 three-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, 1996, 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, 1996, 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 the financial highlights for each of the years in
the three-year period then ended, and the period October
16, 1993 (date operations commenced) through December 31,
1993, in conformity with generally accepted accounting
principles.
KPM Peat Marwick LLP
Houston, Texas
February 7, 1997
8
<PAGE> 10
Trustees & Officers
<TABLE>
<CAPTION>
BOARD OF 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
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 Carol F. Relihan Houston, TX 77046
Director Senior Vice President and Secretary
Cortland Trust Inc. TRANSFER AGENT
Gary T. Crum
Carl Frischling Senior Vice President A I M Fund Services, Inc.
Partner P.O. Box 4739
Kramer, Levin, Naftalis & Frankel Scott G. Lucas Houston, TX 77210-4739
Senior Vice President
Robert H. Graham CUSTODIAN
President and Chief Operating Officer Dana R. Sutton
A I M Management Group Inc. Vice President and Assistant Treasurer State Street Bank & Trust Company
225 Franklin Street
John F. Kroeger Robert G. Alley Boston, MA 02110
Formerly Consultant Vice President
Wendell & Stockel Associates, Inc. COUNSEL TO THE FUND
Stuart W. Coco
Lewis F. Pennock Vice President Ballard Spahr
Attorney Andrews & Ingersoll
Melville B. Cox 1735 Market Street
Ian W. Robinson Vice President Philadelphia, PA 19103
Consultant; Formerly Executive
Vice President and Karen Dunn Kelley COUNSEL TO THE TRUSTEES
Chief Financial Officer Vice President
Bell Atlantic Management Kramer, Levin, Naftalis & Frankel
Services, Inc. Jonathan C. Schoolar 919 Third Avenue
Vice President New York, NY 10022
Louis S. Sklar
Executive Vice President P. Michelle Grace DISTRIBUTOR
Hines Interests Assistant Secretary
Limited Partnership A I M Distributors, Inc.
David L. Kite 11 Greenway Plaza
Assistant Secretary Suite 1919 Houston, TX 77046
Nancy L. Martin AUDITORS
Assistant Secretary
KPMG Peat Marwick LLP
Ofelia M. Mayo 700 Louisiana
Assistant Secretary NationsBank Bldg.
Houston, TX 77002
Kathleen J. Pflueger
Assistant Secretary
Samuel D. Sirko
Assistant Secretary
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> 11
<TABLE>
<S> <C>
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
[PHOTO OF AIM Growth Fund
11 Greenway Plaza AIM International Equity Fund
APPEARS HERE] 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
A I M Management Group Inc. has provided STABILITY, LIQUIDITY, AND CURRENT INCOME
leadership in the mutual fund industry AIM Money Market Fund
since 1976 and manages approximately $70
billion in assets for more than 3.5 STABILITY, LIQUIDITY, AND CURRENT TAX-FREE INCOME
million shareholders, including AIM Tax-Exempt Cash Fund
individual investors, corporate clients,
and financial institutions as of *AIM Aggressive Growth Fund was closed to new
February 11, 1997. The AIM Family of investors on July 18, 1995. For more complete
Funds--Registered Trademark-- is distributed information about any AIM Fund(s), including
nationwide, and AIM today ranks among the charges and expenses, ask your financial
nation's top 15 mutual fund companies in consultant or securities dealer for a free
assets under management, according to Lipper prospectus(es). Please read the prospectus(es)
Analytical Services, Inc. carefully before you invest or send money.
[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
---------------
</TABLE>
