<PAGE> 1
ANNUAL REPORT / DECEMBER 31 1999
AIM MONEY MARKET FUND
[COVER IMAGE]
[AIM LOGO APPEARS HERE]
<PAGE> 2
ANNUAL REPORT / CHAIRMAN'S LETTER
Dear Shareholder:
We are pleased to send you this report on AIM Money Market
[PHOTO OF Fund for the 1999 fiscal year, a year that saw a dramatic
Charles T. rise in equity markets, an unpleasant bond market, continued
Bauer, growth in the U.S. economy and an ever-vigilant Federal
Chairman of Reserve Board on the lookout for inflation.
the Board of
THE FUND INFLATION FEARS SPOOK MARKETS
APPEARS HERE] With the worst of the global financial crisis past, the
question throughout much of 1999 was whether or not the
Federal Reserve Board (the Fed) would need to raise interest
rates to forestall inflation. Inflation fears spawned
volatility in equity markets and unsettled bond markets as
investors were concerned that ongoing strong economic growth
in the United States would prompt the Fed to raise interest
rates. Ultimately, in three separate moves, the Fed raised
the key federal funds rate from 4.75% to 5.50%.
While many stock indexes finished the year quite strongly, the bond market
did not enjoy the same upward performance. Inflation fears, driven by strong
economic growth and an overabundance of bond supply, drove interest rates across
the yield curve higher during the year, as reflected in the yield of the
benchmark 30-year Treasury bond. The benchmark bond's yield rose from 5.09% at
the beginning of 1999 to 6.48% at the end of the year. Yields for three- and
six-month Treasury bills rose from 4.46% to 5.31% and 4.54% to 5.73%,
respectively, during the 12-month period. As a result, the Treasury market
turned in its worst one-year performance in 22 years during 1999.
In the midst of it all, the U.S. economy continued to blaze ahead
relentlessly, experiencing a near-record level of consumer confidence. Recent
economic indicators, such as employment data and consumer prices, have shown
that the frenetic growth has produced a surprising lack of inflation. However,
now that Y2K is past and the Fed no longer has to sit on the sidelines, the Fed
will again begin to address concerns that imbalances between supply and demand
may be developing within the economy.
FUND PROVIDES STABILITY AMIDST UNCERTAINTY
For investors, cash proved to be one of the best-performing fixed-income asset
classes during 1999. In addition, the combination of rising interest rates and a
short maturity structure provided investors with an attractive level of income
throughout 1999. The fund maintained a weighted average maturity (WAM) in the
20- to 25-day range throughout the reporting period. At the end of the fiscal
year, the WAM stood at 20 days, and seven-day yields for the fund were 4.43% for
Cash Reserve Shares, 3.69% for Class B shares and 3.68% for Class C shares. At
the end of the reporting period, total net assets in the fund stood at $1.45
billion.
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.
There is no assurance that the fund will be able to maintain a stable net asset
value of $1.00 per share.
OUTLOOK
In February, the current period of economic expansion became the longest in U.S.
history. Many analysts expect this growth to continue through at least the
first half of 2000. This has led to the belief that the Fed will need to raise
interest rates at least once--if not more--to slow economic growth to a more
sustainable pace. It seems that the same story that dogged markets in 1999 is so
far continuing, with persistent upward pressure on interest rates.
As always, please feel free to contact our Client Services department at
800-959-4246 if you have any questions or comments about this report on your
fund. Automated information about your AIM account is available 24 hours a day
on the AIM Investor Line at 800-246-5463. Or visit our Web site at
www.aimfunds.com for account or fund information.
Sincerely,
/s/ CHARLES T. BAUER
Charles T. Bauer
Chairman, A I M Advisors, Inc.
-------------------------------------
IN FEBRUARY,
THE CURRENT PERIOD OF
ECONOMIC EXPANSION
BECAME THE LONGEST
IN U.S. HISTORY.
-------------------------------------
-------------------------------------
COVER ART:
WATER LILIES
BY CLAUDE MONET
-------------------------------------
AIM MONEY MARKET FUND
<PAGE> 3
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1999
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE
<S> <C> <C> <C>
COMMERCIAL PAPER-42.22%(a)
ASSET-BACKED SECURITIES-
COMMERCIAL/LOAN/LEASES-3.69%
Centric Capital Corp.
6.02% 01/31/00 $ 21,533 $ 21,424,976
- ------------------------------------------------------------------
6.00% 02/17/00 17,000 16,866,833
- ------------------------------------------------------------------
5.80% 03/28/00 15,459 15,242,317
- ------------------------------------------------------------------
53,534,126
- ------------------------------------------------------------------
ASSET-BACKED SECURITIES-
CONSUMER RECEIVABLES-5.06%
Old Line Funding Corp.
6.28% 01/07/00 20,000 19,979,066
- ------------------------------------------------------------------
6.15% 01/12/00 28,611 28,557,236
- ------------------------------------------------------------------
Riverwoods Funding Corp.
6.07% 01/11/00 25,000 24,957,847
- ------------------------------------------------------------------
73,494,149
- ------------------------------------------------------------------
ASSET-BACKED SECURITIES-
MULTI-PURPOSE-15.47%
Bavaria TRR Corp.
5.48% 01/27/00 30,700 30,578,496
- ------------------------------------------------------------------
5.92% 03/23/00 20,000 19,730,311
- ------------------------------------------------------------------
Edison Asset Securitization,
L.L.C.
6.11% 01/24/00 20,000 19,921,928
- ------------------------------------------------------------------
Falcon Asset Securitization
Corp.
6.30% 01/05/00 25,750 25,731,976
- ------------------------------------------------------------------
6.25% 01/07/00 16,525 16,507,786
- ------------------------------------------------------------------
6.10% 02/02/00 24,000 23,869,867
- ------------------------------------------------------------------
Park Avenue Receivables
Corp.
5.81% 03/08/00 20,000 19,783,738
- ------------------------------------------------------------------
Three Rivers Funding Corp.
7.00% 01/12/00 37,002 36,922,857
- ------------------------------------------------------------------
6.51% 01/13/00 31,573 31,504,486
- ------------------------------------------------------------------
224,551,445
- ------------------------------------------------------------------
ASSET-BACKED SECURITIES-TRADE
RECEIVABLES-6.83%
Asset Securitization,
Floating Rate Notes(b)
6.09% 03/10/00 25,000 24,996,868
- ------------------------------------------------------------------
Corporate Asset Funding Co.
5.50% 01/19/00 22,220 22,158,895
- ------------------------------------------------------------------
Variable Funding Capital
5.76% 01/10/00 17,000 16,975,520
- ------------------------------------------------------------------
5.42% 01/18/00 15,024 14,985,547
- ------------------------------------------------------------------
5.68% 01/21/00 20,000 19,936,889
- ------------------------------------------------------------------
99,053,719
- ------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE
<S> <C> <C> <C>
AUTOMOBILE-1.70%
Daimler-Chrysler North
America Holding
5.87% 03/22/00 $ 25,000 $ 24,669,812
- ------------------------------------------------------------------
BANKS-DOMESTIC-1.72%
Abbey National North America
Corp.
12.50% 01/04/00 25,000 24,973,959
- ------------------------------------------------------------------
FINANCE-MULTIPLE INDUSTRY-6.72%
Associates First Capital
Corp.
5.60% 02/09/00 25,000 24,848,333
- ------------------------------------------------------------------
Caterpillar Finance Services
Corp.
5.80% 03/15/00 10,000 9,996,361
- ------------------------------------------------------------------
GE Capital International
Funding
5.89% 03/09/00 25,000 24,721,860
- ------------------------------------------------------------------
General Electric Capital
Corp., Floating Rate Notes
4.98%(b) 08/21/00 13,000 12,982,673
- ------------------------------------------------------------------
Prudential Funding Corp.
5.72% 01/28/00 25,000 24,892,750
- ------------------------------------------------------------------
97,441,977
- ------------------------------------------------------------------
INVESTMENT BANKING/BROKERAGE-1.03%
Credit Suisse First Boston,
Inc.
5.74% 02/18/00 15,000 14,885,200
- ------------------------------------------------------------------
Total Commercial Paper
(Cost $612,604,387) 612,604,387
- ------------------------------------------------------------------
BANK NOTES-0.86%
BANKS-DOMESTIC-0.86%
Atlantic American Corp.
6.47% (Cost
$12,500,000)(c) 06/01/09 12,500 12,500,000
- ------------------------------------------------------------------
TAXABLE MUNICIPAL BONDS-1.34%
HOSPITAL MANAGEMENT-0.65%
Illinois Health Facilities
Authority (Loyola
University Health
Systems); Revenue Bonds
6.50%(d) 07/01/24 9,500 9,500,000
- ------------------------------------------------------------------
FINANCE-MULTIPLE
INDUSTRY-0.69%
Mississippi Business Finance
Corp. (Mississippi
Industrial Development);
Revenue Bonds
6.46%(e) 02/01/23 10,000 10,000,000
- ------------------------------------------------------------------
Total Taxable Municipal
Bonds (Cost
$19,500,000) 19,500,000
- ------------------------------------------------------------------
CERTIFICATE OF DEPOSIT-0.69%
Bank Austria
5.65% (Cost $9,997,546) 07/06/00 10,000 9,997,546
- ------------------------------------------------------------------
</TABLE>
<PAGE> 4
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE
<S> <C> <C> <C>
MASTER NOTE
AGREEMENTS-9.24%(f)
Merrill Lynch Mortgage
Capital, Inc.
4.76%(g) 08/17/00 $ 75,000 $ 75,000,000
- ------------------------------------------------------------------
Morgan Stanley, Dean Witter,
Discover & Co.
4.60%(h) 03/01/00 59,000 59,000,000
- ------------------------------------------------------------------
Total Master Note
Agreements (Cost
$134,000,000) 134,000,000
- ------------------------------------------------------------------
PROMISSORY NOTE-3.24%
Goldman Sachs & Co.
4.90% (Cost $47,000,000) 02/24/00 47,000 47,000,000
- ------------------------------------------------------------------
Total Investments
(excluding repurchase
agreements) (Cost
$835,601,933) 835,601,933
- ------------------------------------------------------------------
REPURCHASE AGREEMENTS-38.51%(I)
Banc One Capital Markets,
Inc.
3.25%(j) 01/03/00 68,000 68,000,000
- ------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE
<S> <C> <C> <C>
Bank of America Securities
3.15%(k) 01/03/00 $300,000 $ 300,000,000
- ------------------------------------------------------------------
CIBC Oppenheimer Corp.
3.25%(l) 01/03/00 68,000 68,000,000
- ------------------------------------------------------------------
Deutsche Bank Securities
Corp.
3.50%(m) 01/03/00 8,343 8,342,665
- ------------------------------------------------------------------
Goldman Sachs & Co.
5.64%(n) 01/07/00 46,500 46,500,000
- ------------------------------------------------------------------
Greenwich Capital Markets,
Inc.
3.30%(o) 01/03/00 68,000 68,000,000
- ------------------------------------------------------------------
Total Repurchase
Agreements (Cost
$558,842,665) 558,842,665
- ------------------------------------------------------------------
TOTAL INVESTMENTS-96.10% $1,394,444,598(p)
- ------------------------------------------------------------------
OTHER ASSETS LESS
LIABILITIES-3.90% 56,580,651
- ------------------------------------------------------------------
NET ASSETS-100.00% $1,451,025,249
==================================================================
</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 coupon rate shown on floating rate notes represents the rate at period
end.
(c) Interest rates are redetermined weekly. Rate shown is the rate in effect on
12/31/99.
(d) Demand security; payable upon demand by the Fund with usually no more than
seven calendar days notice. Interest rates are redetermined weekly. Rates
shown are rates in effect on 12/31/99.
(e) Demand security; payable upon demand by the Fund with usually no more than
seven calendar days notice. Interest rates are redetermined monthly. Rates
shown are rates in effect on 12/31/99.
(f) The investments in master note agreements are through participation in joint
accounts with other mutual funds, private accounts, and certain
nonregistered investment companies managed by the investment advisor or its
affiliates.
(g) The Fund may demand prepayment of notes purchased under the Master Note
Purchase Agreement upon one business day notice. Interest rates on master
notes are redetermined periodically. Rate shown is the rate in effect on
12/31/99.
(h) 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
12/31/99.
(i) 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 is at least 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.
(j) Joint repurchase agreement entered into 12/31/99 with a maturing value of
$300,081,250 and collateralized by $300,000,000 U.S. Government obligations
0% to 8.125% due 01/03/00 to 05/15/21 with an aggregate market value at
12/31/99 of $306,004,707.
(k) Joint repurchase agreement entered into 12/31/99 with a maturing value of
$470,258,255 and collateralized by $470,134,815 U.S. Government obligations,
4.75% to 5.25% due 02/01/01 to 11/14/03 with an aggregate market value at
12/31/99 of $510,000,998.
(l) Joint repurchase agreement entered into 12/31/99 with a maturing value of
$285,077,188 and collateralized by $285,000,000 U.S. Government and Treasury
obligations, 5.812% to 8.023% due 04/01/19 to 05/01/35 with an aggregate
market value at 12/31/99 of $290,700,000.
(m) Joint repurchase agreement entered into 12/31/99 with a maturing value of
$300,087,500 and collateralized by $300,000,000 U.S. Government obligations,
5.75% to 7.089% due 09/01/17 to 02/01/38 with an aggregate market value at
12/31/99 of $306,000,000.
(n) Joint repurchase agreement entered into 12/31/99 with a maturing value of
$100,501,333 and collateralized by $100,000,000 U.S. Government and Treasury
obligations, 0% to 8.625% due 06/30/00 to 12/15/43 with an aggregate market
value at 12/31/99 of $102,004,901.
(o) Joint repurchase agreement entered into 12/31/99 with a maturing value of
$240,066,000 and collateralized by $240,000,000 U.S. Government and Treasury
obligations, 5% to 10% due 02/01/00 to 12/01/29 with an aggregate market
value at 12/31/99 of $244,803,339.
(p) Also represents cost for federal income tax purposes.
See Notes to Financial Statements.
2
<PAGE> 5
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1999
<TABLE>
<S> <C>
ASSETS:
Investments, excluding repurchase
agreements, at value (amortized cost) $ 835,601,933
- ----------------------------------------------------------
Repurchase agreements 558,842,665
- ----------------------------------------------------------
Receivables for:
Fund shares sold 79,248,923
- ----------------------------------------------------------
Interest 1,830,759
- ----------------------------------------------------------
Investment for deferred compensation plan 98,626
- ----------------------------------------------------------
Other assets 152,970
- ----------------------------------------------------------
Total assets 1,475,775,876
- ----------------------------------------------------------
LIABILITIES:
Payables for:
Fund shares reacquired 22,471,641
- ----------------------------------------------------------
Dividends 291,654
- ----------------------------------------------------------
Deferred compensation plan 98,626
- ----------------------------------------------------------
Accrued advisory fees 610,061
- ----------------------------------------------------------
Accrued distribution fees 1,116,373
- ----------------------------------------------------------
Accrued transfer agent fees 114,686
- ----------------------------------------------------------
Accrued operating expenses 47,586
- ----------------------------------------------------------
Total liabilities 24,750,627
- ----------------------------------------------------------
Net assets applicable to shares
outstanding $1,451,025,249
==========================================================
NET ASSETS:
AIM Cash Reserve Shares $ 989,478,007
==========================================================
Class B $ 404,911,432
==========================================================
Class C $ 56,635,810
==========================================================
SHARES OUTSTANDING, $0.01 PAR VALUE PER
SHARE:
AIM Cash Reserve Shares 989,471,533
==========================================================
Class B 404,900,819
==========================================================
Class C 56,634,526
==========================================================
AIM Cash Reserve Shares:
Net asset value and offering price per
share $ 1.00
==========================================================
Class B:
Net asset value and offering price per
share $ 1.00
==========================================================
Class C:
Net asset value and offering price per
share $ 1.00
==========================================================
</TABLE>
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1999
<TABLE>
<S> <C>
INVESTMENT INCOME:
Interest $72,284,896
- ---------------------------------------------------------
EXPENSES:
Advisory fees 7,448,373
- ---------------------------------------------------------
Administrative services fees 118,024
- ---------------------------------------------------------
Custodian fees 171,275
- ---------------------------------------------------------
Distribution fees - Class B 3,680,653
- ---------------------------------------------------------
Distribution fees - Class C 440,903
- ---------------------------------------------------------
Distribution fees - AIM Cash Reserve Shares 2,443,795
- ---------------------------------------------------------
Trustees' fees 15,267
- ---------------------------------------------------------
Transfer agent fees - Class B 583,322
- ---------------------------------------------------------
Transfer agent fees - Class C 69,876
- ---------------------------------------------------------
Transfer agent fees - AIM Cash Reserve
Shares 1,549,204
- ---------------------------------------------------------
Other 1,055,705
- ---------------------------------------------------------
Total expenses 17,576,397
- ---------------------------------------------------------
Less: Expenses paid indirectly (20,102)
- ---------------------------------------------------------
Net expenses 17,556,295
- ---------------------------------------------------------
Net investment income 54,728,601
- ---------------------------------------------------------
Net realized gain from investments 83
- ---------------------------------------------------------
Net increase in net assets resulting from
operations $54,728,684
=========================================================
</TABLE>
See Notes to Financial Statements.
3
<PAGE> 6
STATEMENT OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1999 AND 1998
<TABLE>
<CAPTION>
1999 1998
-------------- --------------
<S> <C> <C>
OPERATIONS:
Net investment income $ 54,728,601 $ 46,894,254
- ----------------------------------------------------------------------------------------------
Net realized gain from investments 83 2,781
- ----------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 54,728,684 46,897,035
- ----------------------------------------------------------------------------------------------
Distributions to shareholders from net investment income:
Class A* -- (20,797,936)
- ----------------------------------------------------------------------------------------------
Class B (12,546,032) (6,486,731)
- ----------------------------------------------------------------------------------------------
Class C (1,514,495) (628,599)
- ----------------------------------------------------------------------------------------------
AIM Cash Reserve Shares (40,668,074) (18,980,988)
- ----------------------------------------------------------------------------------------------
Share transactions-net:
Class A* -- (375,997,608)
- ----------------------------------------------------------------------------------------------
Class B 94,371,540 194,469,771
- ----------------------------------------------------------------------------------------------
Class C 29,244,201 19,103,703
- ----------------------------------------------------------------------------------------------
AIM Cash Reserve Shares (189,587,232) 834,944,363
- ----------------------------------------------------------------------------------------------
Net increase (decrease) in net assets (65,971,408) 672,523,010
- ----------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 1,516,996,657 844,473,647
- ----------------------------------------------------------------------------------------------
End of period $1,451,025,249 $1,516,996,657
==============================================================================================
NET ASSETS CONSIST OF:
Shares of beneficial interest $1,450,988,058 $1,516,959,549
- ----------------------------------------------------------------------------------------------
Undistributed net realized gain from investments 37,191 37,108
- ----------------------------------------------------------------------------------------------
$1,451,025,249 $1,516,996,657
==============================================================================================
</TABLE>
* The Fund's Class A shares were reclassified as AIM Cash Reserve Shares on
12/21/98.
See Notes to Financial Statements.
4
<PAGE> 7
NOTES TO FINANCIAL STATEMENTS
December 31, 1999
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 portfolios, each
having an unlimited number of shares of beneficial interest. The Fund currently
offers three different classes of shares: Class B shares, Class C shares and AIM
Cash Reserve Shares. The Fund formerly offered Class A shares; however, on
December 21, 1998 the Class A shares were reclassified as AIM Cash Reserve
Shares. Class B shares and Class C shares are sold with a contingent deferred
sales charge. AIM Cash Reserve 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 investment objective
is to provide as high a level of current income as is consistent with the
preservation of capital and liquidity.
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. The
following is a summary of the significant accounting policies followed by the
Fund in the preparation of its financial statements.
A. Security Valuations -- The Fund's 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 premiums.
B. Securities Transactions and Investment Income -- 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.
C. Distributions -- It is the policy of the Fund to declare daily dividends from
net investment income. Such distributions are paid monthly. Distributions
from net realized capital gains, if any, are generally paid annually and
recorded on ex-dividend date. The Fund may elect to use a portion of the
proceeds of fund share redemptions as distributions for federal income tax
purposes.
D. 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.
E. Expenses -- Distribution expenses and transfer agency expenses directly
attributable to a class of shares are charged to that class' operations. All
other expenses which are attributable to more than one class are allocated
among the classes.
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% on
the first $1 billion of the Fund's average daily net assets, plus 0.50% on 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 pay AIM for certain administrative costs incurred in providing
accounting services to the Fund. For the year ended December 31, 1999, AIM was
paid $118,024 for such services.
The Fund, pursuant to a transfer agency and service agreement, has agreed to
pay A I M Fund Services, Inc. ("AFS") a fee for providing transfer agency and
shareholder services to the Fund. For the year ended December 31, 1999, AFS was
paid $1,341,736 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 B, Class C and the AIM Cash Reserve 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 B shares, Class C shares and AIM Cash Reserve Shares (collectively,
the "Plans"). The Fund, pursuant to the Plans, pays AIM Distributors
compensation at the annual rate of 0.25% of the Fund's average daily net assets
of AIM Cash Reserve Shares and 1.00% of the average daily net assets of Class B
and C shares. Of these amounts, the Fund may pay a service fee of 0.25% of the
average daily net assets of the Class B, Class C or AIM Cash Reserve Shares to
selected dealers and financial institutions who furnish continuing personal
shareholder services to their customers who purchase and own the appropriate
class of shares of the Fund. Any amounts not paid as a service fee under the
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. For the year ended December 31, 1999, the Class B,
Class C and AIM Cash Reserve Shares paid AIM Distributors $3,680,653, $440,903
and $2,443,795, respectively, as compensation under the Plans.
During the year ended December 31, 1999, AIM Distributors received $1,254,200
in contingent deferred sales charges imposed on redemptions of Fund shares.
Certain officers and trustees of the Trust are officers and directors of AIM,
AFS and AIM Distributors.
5
<PAGE> 8
During the year ended December 31, 1999, the Fund paid legal fees of $5,825
for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the
Board of Trustees. A member of that firm is a trustee of the Trust.
NOTE 3-INDIRECT EXPENSES
During the year ended December 31, 1999, the Fund received reductions in
transfer agency fees from AFS (an affiliate of AIM) and reductions in custodian
fees of $15,823 and $4,279, respectively, under expense offset arrangements. The
effect of the above arrangements resulted in a reduction of the Fund's total
expenses of $20,102 during the year ended December 31, 1999.
NOTE 4-TRUSTEES' FEES
Trustees' fees represent remuneration paid to trustees who are not an
"interested person" of AIM. The Trust invests trustees' fees, if so elected by a
trustee, in mutual fund shares in accordance with a deferred compensation plan.
NOTE 5-SHARE INFORMATION
Changes in shares outstanding during the years ended December 31, 1999 and 1998
were as follows:
<TABLE>
<CAPTION>
1999 1998
-------------------------------- ----------------------------------
SHARES AMOUNT SHARES AMOUNT
-------------- --------------- --------------- ----------------
<S> <C> <C> <C> <C>
Sold:
Class A* -- -- 12,526,260,894 $ 12,526,260,894
- -------------------------------------------------------------------------------------------------------------------------------
Class B 1,129,278,732 $ 1,129,278,732 732,230,888 732,230,888
- -------------------------------------------------------------------------------------------------------------------------------
Class C 387,953,922 387,953,922 350,900,238 350,900,238
- -------------------------------------------------------------------------------------------------------------------------------
AIM Cash Reserve Shares 8,060,651,699 8,060,651,699 6,566,275,190 6,566,275,190
- -------------------------------------------------------------------------------------------------------------------------------
Issued as reinvestment of dividends:
Class A* -- -- 15,630,817 15,630,817
- -------------------------------------------------------------------------------------------------------------------------------
Class B 10,880,999 10,880,999 5,684,934 5,684,934
- -------------------------------------------------------------------------------------------------------------------------------
Class C 1,259,465 1,259,465 536,206 536,206
- -------------------------------------------------------------------------------------------------------------------------------
AIM Cash Reserve Shares 34,229,027 34,229,027 15,456,154 15,456,154
- -------------------------------------------------------------------------------------------------------------------------------
Issued in connection with acquisitions:**
Class A* -- -- 135,276 135,276
- -------------------------------------------------------------------------------------------------------------------------------
Class B -- -- 72,923,588 72,923,588
- -------------------------------------------------------------------------------------------------------------------------------
Class C -- -- 5,548,897 5,548,897
- -------------------------------------------------------------------------------------------------------------------------------
AIM Cash Reserve Shares -- -- 117,682,745 117,682,745
- -------------------------------------------------------------------------------------------------------------------------------
Reacquired:
Class A* -- -- (12,918,024,595) (12,918,024,595)
- -------------------------------------------------------------------------------------------------------------------------------
Class B (1,045,788,191) (1,045,788,191) (616,369,639) (616,369,639)
- -------------------------------------------------------------------------------------------------------------------------------
Class C (359,969,186) (359,969,186) (337,881,638) (337,881,638)
- -------------------------------------------------------------------------------------------------------------------------------
AIM Cash Reserve Shares (8,284,467,958) (8,284,467,958) (5,864,469,726) (5,864,469,726)
- -------------------------------------------------------------------------------------------------------------------------------
(65,971,491) $ (65,971,491) 672,520,229 $ 672,520,229
===============================================================================================================================
</TABLE>
* Class A shares were reclassified to AIM Cash Reserve Shares effective
December 21, 1998.
** The Fund acquired AIM Advisor Cash Management Fund and AIM Dollar Fund on
February 27, 1998 and December 21, 1998, respectively. The acquired funds'
net assets as of the respective closing dates were $5,680,255 and
$190,605,903, respectively. The net assets of the Fund immediately prior to
each acquisition were $701,467,228 and $1,383,530,387, respectively.
6
<PAGE> 9
NOTE 6-FINANCIAL HIGHLIGHTS
Shown below are the financial highlights for a share of AIM Cash Reserve Shares
and Class B outstanding during each of the years in the five-year period ended
December 31, 1999, and for a share of Class C outstanding during each of the
years in the two-year period ended December 31, 1999 and the period August 4,
1997 (date sales commenced) through December 31, 1997.
<TABLE>
<CAPTION>
AIM CASH RESERVE SHARES
---------------------------------------------------------
1999 1998 1997 1996 1995
-------- ---------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
- ------------------------------------------------------------ -------- ---------- -------- -------- --------
Income from investment operations:
Net investment income 0.0414 0.0453 0.0456 0.0433 0.0493
- ------------------------------------------------------------ -------- ---------- -------- -------- --------
Less distributions:
Dividends from net investment income (0.0414) (0.0453) (0.0456) (0.0433) (0.0493)
- ------------------------------------------------------------ -------- ---------- -------- -------- --------
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
============================================================ ======== ========== ======== ======== ========
Total return(a) 4.22% 4.62% 4.66% 4.41% 5.04%
============================================================ ======== ========== ======== ======== ========
Ratios/supplemental data:
Net assets, end of period (000s omitted) $989,478 $1,179,072 $344,117 $315,470 $293,450
============================================================ ======== ========== ======== ======== ========
Ratio of expenses to average net assets 1.04%(b) 0.99% 1.05% 1.08% 1.04%
============================================================ ======== ========== ======== ======== ========
Ratio of net investment income to average net assets 4.16%(b) 4.53% 4.55% 4.32% 4.92%
============================================================ ======== ========== ======== ======== ========
</TABLE>
(a) Does not deduct contingent deferred sales charges where applicable.
(b) Ratios are based on average net assets of $977,518,910.
<TABLE>
<CAPTION>
CLASS B SHARES CLASS C SHARES
-------------------------------------------------------- -------------------------------
1999 1998 1997 1996 1995 1999 1998 1997
-------- -------- -------- -------- -------- -------- -------- --------
<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 0.0339 0.0371 0.0378 0.0360 0.0419 0.0339 0.0371 0.0158
- --------------------------------- -------- -------- -------- -------- -------- -------- -------- --------
Less distributions:
Dividends from net investment
income (0.0339) (0.0371) (0.0378) (0.0360) (0.0419) (0.0339) (0.0371) (0.0158)
- --------------------------------- -------- -------- -------- -------- -------- -------- -------- --------
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) 3.45% 3.78% 3.84% 3.66% 4.27% 3.44% 3.78% 3.92%
================================= ======== ======== ======== ======== ======== ======== ======== ========
Ratios/supplemental data:
Net assets, end of period (000s
omitted) $404,911 $310,534 $116,058 $ 91,148 $ 69,857 $ 56,636 $ 27,391 $ 8,287
================================= ======== ======== ======== ======== ======== ======== ======== ========
Ratio of expenses to average net
assets 1.79%(b) 1.81% 1.80% 1.81% 1.78% 1.79%(b) 1.81% 1.80%(c)
================================= ======== ======== ======== ======== ======== ======== ======== ========
Ratio of net investment income to
average net assets 3.41%(b) 3.71% 3.80% 3.60% 4.14% 3.41%(b) 3.71% 3.80%(c)
================================= ======== ======== ======== ======== ======== ======== ======== ========
</TABLE>
(a) Does not deduct contingent deferred sales charges where applicable and is
annualized for periods less than one year.
(b) Ratios are based on average net assets of $368,065,266 and $44,090,340 for
Class B and Class C, respectively.
(c) Annualized.
7
<PAGE> 10
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, 1999, 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 five-year period then ended.
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, 1999, 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, 1999, 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 five-year period then ended, in conformity with
generally accepted accounting principles.
KPMG LLP
February 4, 2000
Houston, Texas
<PAGE> 11
<TABLE>
<CAPTION>
BOARD OF TRUSTEES OFFICERS OFFICE OF THE FUND
<S> <C> <C>
Charles T. Bauer Charles T. Bauer 11 Greenway Plaza
Chairman Chairman Suite 100
A I M Management Group Inc. Houston, TX 77046
Robert H. Graham
Bruce L. Crockett President INVESTMENT ADVISOR
Director
ACE Limited; Carol F. Relihan A I M Advisors, Inc.
Formerly Director, President, and Senior Vice President and Secretary 11 Greenway Plaza
Chief Executive Officer Suite 100
COMSAT Corporation Gary T. Crum Houston, TX 77046
Senior Vice President
Owen Daly II TRANSFER AGENT
Director Dana R. Sutton
Cortland Trust Inc. Vice President and Treasurer A I M Fund Services, Inc.
P.O. Box 4739
Edward K. Dunn Jr. Robert G. Alley Houston, TX 77210-4739
Chairman, Mercantile Mortgage Corp.; Vice President
Formerly Vice Chairman, President CUSTODIAN
and Chief Operating Officer, Stuart W. Coco
Mercantile-Safe Deposit & Trust Co.; and Vice President State Street Bank and Trust Company
President, Mercantile Bankshares 225 Franklin Street
Melville B. Cox Boston, MA 02110
Jack Fields Vice President
Chief Executive Officer COUNSEL TO THE FUND
Texana Global, Inc.; Karen Dunn Kelley
Formerly Member Vice President Ballard Spahr
of the U.S. House of Representatives Andrews & Ingersoll, LLP
Edgar M. Larsen 1735 Market Street
Carl Frischling Vice President Philadelphia, PA 19103
Partner
Kramer, Levin, Naftalis & Frankel LLP Mary J. Benson COUNSEL TO THE TRUSTEES
Assistant Vice President and
Robert H. Graham Assistant Treasurer Kramer, Levin, Naftalis & Frankel LLP
President and Chief Executive Officer 919 Third Avenue
A I M Management Group Inc. Sheri Morris New York, NY 10022
Assistant Vice President and
Prema Mathai-Davis Assistant Treasurer DISTRIBUTOR
Chief Executive Officer, YWCA of the U.S.A.
Renee A. Friedli A I M Distributors, Inc.
Lewis F. Pennock Assistant Secretary 11 Greenway Plaza
Attorney Suite 100
P. Michelle Grace Houston, TX 77046
Louis S. Sklar Assistant Secretary
Executive Vice President AUDITORS
Hines Interests Nancy L. Martin
Limited Partnership Assistant Secretary KPMG
700 Louisiana
Ofelia M. Mayo Houston, TX 77002
Assistant Secretary
Lisa A. Moss
Assistant Secretary
Kathleen J. Pflueger
Assistant Secretary
Samuel D. Sirko
Assistant Secretary
Stephen I. Winer
Assistant Secretary
</TABLE>
REQUIRED FEDERAL INCOME TAX INFORMATION (UNAUDITED)
AIM Money Market Fund Class B, and Class C shares paid ordinary dividends in the
amount of $0.0339 per share and AIM Cash Reserve Shares paid $0.0414 per share
to shareholders during its tax year ended December 31, 1999. Of these amounts
0.00% is eligible for the dividends received deduction for corporations.
This report may be distributed only to current shareholders or to persons
who have received a current effective prospectus of the Fund.
<PAGE> 12
THE AIM FAMILY OF FUNDS--Registered Trademark--
<TABLE>
<S> <C> <C>
GROWTH FUNDS MONEY MARKET FUNDS A I M Management Group Inc. has
AIM Aggressive Growth Fund AIM Money Market Fund provided leadership in the
AIM Blue Chip Fund AIM Tax-Exempt Cash Fund mutual fund industry since 1976
AIM Capital Development Fund and managed approximately $160
AIM Constellation Fund(1) INTERNATIONAL GROWTH FUNDS billion in assets for more than
AIM Dent Demographic Trends Fund AIM Advisor International Value Fund 6.6 million shareholders,
AIM Large Cap Growth Fund AIM Asian Growth Fund including individual investors,
AIM Mid Cap Equity Fund AIM Developing Markets Fund corporate clients and financial
AIM Mid Cap Growth Fund AIM Euroland Growth Fund(4) institutions, as of December 31,
AIM Mid Cap Opportunities Fund AIM European Development Fund 1999.
AIM Select Growth Fund AIM International Equity Fund The AIM Family of Funds
AIM Small Cap Growth Fund(2) AIM Japan Growth Fund --Registered Trademark-- is
AIM Small Cap Opportunities Fund(3) AIM Latin American Growth Fund distributed nationwide, and AIM
AIM Value Fund AIM New Pacific Growth Fund today is the eighth-largest
AIM Weingarten Fund mutual fund complex in the
United States in assets under
GROWTH & INCOME FUNDS GLOBAL GROWTH FUNDS management, according to
AIM Advisor Flex Fund AIM Global Aggressive Growth Fund Strategic Insight, an
AIM Advisor Large Cap Value Fund AIM Global Growth Fund independent mutual fund monitor.
AIM Advisor Real Estate Fund
AIM Balanced Fund GLOBAL GROWTH & INCOME FUNDS
AIM Basic Value Fund AIM Global Growth & Income Fund
AIM Charter Fund AIM Global Utilities Fund
INCOME FUNDS GLOBAL INCOME FUNDS
AIM Floating Rate Fund AIM Emerging Markets Debt Fund
AIM High Yield Fund AIM Global Government Income Fund
AIM High Yield Fund II AIM Global Income Fund
AIM Income Fund AIM Strategic Income Fund
AIM Intermediate Government Fund
AIM Limited Maturity Treasury Fund THEME FUNDS
AIM Global Consumer Products and Services Fund
TAX-FREE INCOME FUNDS AIM Global Financial Services Fund
AIM High Income Municipal Fund AIM Global Health Care Fund
AIM Municipal Bond Fund AIM Global Infrastructure Fund
AIM Tax-Exempt Bond Fund of Connecticut AIM Global Resources Fund
AIM Tax-Free Intermediate Fund AIM Global Telecommunications and Technology Fund(5)
AIM Global Trends Fund(6)
</TABLE>
(1) Effective December 1, 1999, AIM Constellation Fund's investment strategy
broadened to allow investments across all market capitalizations. (2) AIM Small
Cap Growth Fund closed to new investors on November 8, 1999. (3) AIM Small Cap
Opportunities Fund closed to new investors on November 4, 1999. (4) On September
1, 1999, AIM Europe Growth Fund was renamed AIM Euroland Growth Fund. Previously
the fund invested in all size companies in most areas of Europe. The fund now
seeks to invest at least 65% of its assets in large-cap companies within
countries using the euro as their currency (EMU-member countries). (5) On June
1, 1999, AIM Global Telecommunications Fund was renamed AIM Global
Telecommunications and Technology Fund. (6) Effective August 27, 1999, AIM
Global Trends Fund was restructured to operate as a traditional mutual fund.
Before that date, the fund operated as a fund of funds. For more complete
information about any AIM fund(s), including sales charges and expenses, ask
your financial advisor or securities dealer for a free prospectus(es). Please
read the prospectus(es) carefully before you invest or send money. If used as
sales material after April 20, 2000, this report must be accompanied by a
current Quarterly Review of Performance for AIM Funds.
[AIM LOGO APPEARS HERE]
INVEST WITH DISCIPLINE
--Registered Trademark--
MKT-AR-1
A I M Distributors, Inc.
