<PAGE> 1
[AIM LOGO APPEARS HERE]
AIM ADVISOR CASH
MANAGEMENT FUND
ANNUAL REPORT DECEMBER 31, 1997
<PAGE> 2
The Chairman's Letter
Dear Shareholder:
We are pleased to send you this report on AIM Advisor Cash
[PHOTO OF Management Fund for the 1997 fiscal year.
Charles T. The fixed-income markets were influenced by several
Bauer, events in the past year. The Federal Reserve Board (the Fed)
Chairman of raised the federal funds rate target in March, and market
the Board of participants spent the rest of the year speculating when the
THE FUND next move would occur. Continued low inflation in the face of
APPEARS HERE] sturdy economic growth also held market watchers' attention.
Finally, the Asian financial crisis increased market
volatility in the second half of 1997.
In March, the Fed raised the federal funds rate target
from 5.25% to 5.50%. For much of the second and third
quarters of the year, market participants anticipated
additional rate hikes. Interest rate volatility increased as
the markets were buffeted by wide swings in the reported
economic numbers. Despite overall growth in the economy, the
Consumer Price Index (CPI) and other inflation measures remained at acceptable
levels. The Fed was able to adhere to its steady policy and not raise rates a
second time during 1997.
In the fourth quarter of the year, the U.S. market began to focus on the
Asian crisis. Initially, this led to lower yields in the Treasury market as the
ensuing flight to quality pushed prices higher. However, rumored foreign selling
in the Treasury and government markets, coupled with year-end technical
pressures, caused rates to rise in December.
Because the Asian turmoil is expected to have a slowing effect on the U.S.
economy, many market participants are anticipating stable to lower interest
rates as 1998 unfolds.
YOUR INVESTMENT PORTFOLIO
In light of the continued volatility and uncertainty in the markets, the Fund
maintained a relatively short weighted average maturity (WAM). At fiscal
year-end, the WAM stood at 18.53 days. This strategy produced a competitive
seven-day yield of 4.92% for both Class A and Class C shares.
AIM Advisor Cash Management 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, short-term money market instruments including
obligations issued or guaranteed by the U.S. government or any of its agencies
or instruments, and U.S. dollar-denominated certificates of deposit, commercial
paper, and repurchase agreements. 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.
OUTLOOK FOR THE FUTURE
As of the close of the fiscal year, the U.S. economy was growing strongly
without generating inflationary pressures: for 1997 as a whole, the rise in the
core CPI, which excludes the volatile energy and food sectors, was a mere
2.2%--the smallest increase since 1965. Sound fiscal policy was shrinking the
federal deficit, short-term interest rates had been stable for nine months, and
opinion was almost unanimous that the Federal Reserve would not raise rates
early in 1998.
Indeed, some considered a monetary easing as the next Fed policy move. The
yield curve was extremely flat as the fiscal year closed, with the 30-year
Treasury bond yielding only 60 basis points more than the three-month Treasury
bill. (A basis point is one one-hundredth of a percentage point.)
The short maturities of the securities held by AIM Advisor Cash Management
Fund enable it to respond swiftly to changes in the financial environment and to
provide an attractive shelter from potential market volatility.
As always, we are ready to respond to any questions or comments you may have
concerning this report on your Fund. Please contact our Client Services
department at 800-959-4246. Automated information about your AIM account is
available 24 hours a day on the AIM Investor Line, 800-246-5463. Or visit our
Web site, at www.aimfunds.com.
Sincerely,
/s/ CHARLES T. BAUER
Charles T. Bauer
Chairman
<PAGE> 3
SCHEDULE OF INVESTMENTS
December 31, 1997
<TABLE>
<CAPTION>
MATURITY PAR(000) VALUE
<S> <C> <C> <C>
COMMERCIAL PAPER-42.29%(a)
ASSET-BACKED SECURITIES-14.46%
Ciesco, L.P.
5.67% 02/09/98 $ 250 $ 248,464
- ----------------------------------------------------------------
Fleet Funding Corp.
5.83% 01/30/98 280 278,685
- ----------------------------------------------------------------
Preferred Receivable Funding
Corp.
5.75% 03/11/98 250 247,245
- ----------------------------------------------------------------
774,394
- ----------------------------------------------------------------
FINANCE (MISCELLANEOUS)-4.66%
USAA Capital Corp.
6.50% 01/16/98 250 249,323
- ----------------------------------------------------------------
FINANCE (MULTIPLE INDUSTRY)-4.66%
General Electric Capital Corp.
5.57% 01/08/98 250 249,729
- ----------------------------------------------------------------
FINANCE (PERSONAL CREDIT)-4.64%
Associates Corp. of North
America
5.68% 02/11/98 250 248,383
- ----------------------------------------------------------------
INSURANCE (LIFE)-4.61%
MetLife Funding, Inc.
5.71% 03/20/98 250 246,907
- ----------------------------------------------------------------
MACHINERY-4.65%
Dover Corp.
6.50% 01/16/98 250 249,323
- ----------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MATURITY PAR(000) VALUE
<S> <C> <C> <C>
METAL MINING-4.61%
U.S. Borax, Inc.
5.70% 03/19/98 $ 250 $ 246,952
- ----------------------------------------------------------------
Total Commercial Paper 2,265,011
- ----------------------------------------------------------------
MASTER NOTE AGREEMENTS-18.67%
Goldman Sachs & Co.(b)
5.69% 04/20/98 250 250,000
- ----------------------------------------------------------------
Merrill Lynch Mortgage Capital,
Inc.(c)
7.05% 08/17/98 250 250,000
- ----------------------------------------------------------------
Morgan (J.P.) Securities,
Inc.(d)
6.82% 04/06/98 250 250,000
- ----------------------------------------------------------------
Morgan Stanley, Dean Witter, Discover &
Co.(e)
6.85% 05/26/98 250 250,000
- ----------------------------------------------------------------
Total Master Note Agreements 1,000,000
- ----------------------------------------------------------------
Total Investments (excluding
Repurchase Agreements) 3,265,011
- ----------------------------------------------------------------
REPURCHASE AGREEMENTS(f)-39.15%
Goldman Sachs & Co.(g)
6.53% 01/02/98 797 796,755
- ----------------------------------------------------------------
Smith Barney, Inc.(h)
6.75% 01/02/98 1,300 1,300,000
- ----------------------------------------------------------------
Total Repurchase Agreements 2,096,755
- ----------------------------------------------------------------
TOTAL INVESTMENTS-100.11% 5,361,766(i)
- ----------------------------------------------------------------
OTHER ASSETS LESS LIABILITIES-(0.11)% (5,819)
- ----------------------------------------------------------------
NET ASSETS-100.00% $5,355,947
================================================================
</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) Master Note Purchase Agreement may be terminated by either party upon seven
business days' notice, at which time all amounts outstanding under the notes
purchased under the Master Note Agreement will become payable. Rate shown is
the rate in effect on 12/31/97.
(c) Master Note Purchase Agreement may be terminated by either party by giving
no less than sixty days' notice, at which time all amounts outstanding under
the notes purchased under the Master Note Agreement will become payable.
Rate shown is the rate in effect on 12/31/97.
(d) Master Note Purchase Agreement may be terminated by either party upon thirty
business days' notice, at which time all amounts outstanding under the notes
purchased under the Master Note Agreement will become payable. Rate shown is
the rate in effect on 12/31/97.
(e) Master Note Purchase Agreement may be terminated by either party upon three
business days' notice, at which time all amounts outstanding under the notes
purchased under the Master Note Agreement will become payable. Rate shown is
the rate in effect on 12/31/97.
(f) 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 nonregistered investment companies managed by the
investment advisor or its affiliates.
(g) Joint repurchase agreement entered into 12/31/97 with a maturing value of
$900,326,500. Collateralized by $856,643,000 U.S. Government obligations, 0%
to 14% due 01/08/98 to 05/15/21 with an aggregate market value at 12/31/97
of $918,902,583.
(h) Joint repurchase agreement entered into 12/31/97 with a maturing value of
$400,150,000. Collateralized by $395,097,000 U.S. Government obligations, 0%
to 13.875% due 01/07/98 to 12/15/43 with an aggregate market value at
12/31/97 of $408,000,323.
(i) Also represents cost for federal income tax purposes.
See Notes to Financial Statements.
<PAGE> 4
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1997
<TABLE>
<S> <C>
ASSETS:
Investments, excluding repurchase
agreements, at value (amortized cost) $ 3,265,011
- ---------------------------------------------------------
Repurchase agreements 2,096,755
- ---------------------------------------------------------
Receivables for:
Interest and dividends 6,097
- ---------------------------------------------------------
Investment for deferred compensation plan 1,918
- ---------------------------------------------------------
Total assets 5,369,781
- ---------------------------------------------------------
LIABILITIES:
Payables for:
Dividends 6,580
- ---------------------------------------------------------
Deferred compensation plan 1,918
- ---------------------------------------------------------
Accrued advisory fees 2,308
- ---------------------------------------------------------
Accrued operating services fees 2,077
- ---------------------------------------------------------
Accrued directors' fees & expenses 951
- ---------------------------------------------------------
Total liabilities 13,834
- ---------------------------------------------------------
Net assets applicable to shares outstanding $ 5,355,947
=========================================================
NET ASSETS:
Class A $ 136,718
=========================================================
Class C $ 5,219,229
=========================================================
SHARES OUTSTANDING:
Capital stock $.001 par value per share
Class A:
Authorized 100,000,000
- ---------------------------------------------------------
Outstanding 136,739
=========================================================
Class C:
Authorized 100,000,000
- ---------------------------------------------------------
Outstanding 5,221,311
=========================================================
Class A:
Net asset value, redemption and offering
price per share $ 1.00
=========================================================
Class C:
Net asset value, redemption and offering
price per share $ 1.00
=========================================================
</TABLE>
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1997
<TABLE>
<S> <C>
INVESTMENT INCOME:
Interest $ 457,406
- --------------------------------------------------------
EXPENSES:
Advisory fees 41,373
- --------------------------------------------------------
Operating services fees 37,235
- --------------------------------------------------------
Directors' fees & expenses 4,220
- --------------------------------------------------------
Total expenses 82,828
- --------------------------------------------------------
Net investment income 374,578
- --------------------------------------------------------
Net realized gain (loss) from:
Investment securities (145)
- --------------------------------------------------------
Net increase in net assets resulting from
operations $ 374,433
========================================================
</TABLE>
See Notes to Financial Statements.
2
<PAGE> 5
STATEMENT OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1997 AND 1996
<TABLE>
<CAPTION>
1997 1996
------------ ------------
<S> <C> <C>
OPERATIONS:
Net investment income $ 374,578 $ 836,628
- -----------------------------------------------------------------------------------------
Net realized gain (loss) from investment securities (145) (22)
- -----------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 374,433 836,606
- -----------------------------------------------------------------------------------------
Distributions to shareholders from net investment income:
Class A (5,663) --
- -----------------------------------------------------------------------------------------
Class C (369,819) (836,527)
- -----------------------------------------------------------------------------------------
Share transactions-net:
Class A 136,730 --
- -----------------------------------------------------------------------------------------
Class C (10,726,039) (4,492,544)
- -----------------------------------------------------------------------------------------
Net increase (decrease) in net assets (10,590,358) (4,492,465)
- -----------------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 15,946,305 20,438,770
- -----------------------------------------------------------------------------------------
End of period $ 5,355,947 $ 15,946,305
=========================================================================================
NET ASSETS CONSIST OF:
Capital (par value and additional paid-in) $ 5,358,008 $ 15,947,317
- -----------------------------------------------------------------------------------------
Undistributed net investment income (803) 101
- -----------------------------------------------------------------------------------------
Undistributed net realized gain (loss) from investment
securities (1,258) (1,113)
- -----------------------------------------------------------------------------------------
$ 5,355,947 $ 15,946,305
=========================================================================================
</TABLE>
See Notes to Financial Statements.
3
<PAGE> 6
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1997
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES
AIM Advisor Cash Management Fund (the "Fund", formerly INVESCO Advisor Cash
Management Portfolio) is a series portfolio of AIM Advisor Funds, Inc. (the
"Company" formerly, INVESCO Advisor Funds, Inc.). The Company is a Maryland
corporation and is registered under the Investment Company Act of 1940, as
amended (the "1940 Act"), as an open-end series management investment company
consisting of seven diversified portfolios. The Fund currently offers two
different classes of shares: Class A shares and Class C shares. Class A and
Class C shares are sold without an initial sales charge and are not subject to a
contingent deferred sales charge. A contingent deferred sales charge may be
imposed upon redemptions of Class C shares when such shares were purchased in an
exchange. 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. The Fund's investment
objective is to achieve as high a level of current income, without regard to
federal income tax consideration as is consistent with the preservation of
capital and the maintenance of liquidity. Information presented in these
financial statements pertains only to the Fund.
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amount of assets and liabilities at the date of the
financial statements and the reported amounts of income and expenses during the
reporting period. Actual results could differ from those estimates. The
following is a summary of 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, 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 $1,151 (which may be carried forward to offset future
taxable capital gains, if any) which expires, if not previously utilized,
through the year 2004.
D. Expenses-Expenses which are attributable to more than one class are
allocated between the classes.
NOTE 2-ADVISORY FEES AND OTHER TRANSACTIONS WITH AFFILIATES
The Company 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 the annual rate of 0.50% of
the Fund's average daily net assets. Prior to August 4, 1997, the Company had an
investment advisory agreement with INVESCO Services, Inc. ("ISI") to serve as
the Fund's investment advisor. Under the terms of the prior investment advisory
agreement, the Fund paid ISI an advisory fee equal to an annual rate of 0.50% of
the average daily net assets of the Fund. Under the terms of a prior
sub-advisory agreement between ISI and INVESCO Capital Management Inc. ("ICM"),
ISI paid ICM a sub-advisory fee equal to an annual rate of 0.10% of the Fund's
average daily net assets.
The Company, pursuant to an operating services agreement with AIM, has agreed
to pay AIM an annual rate of 0.45% of daily net assets of the Fund for providing
or arranging to provide accounting, legal (except litigation), dividend
disbursing, transfer agency, registrar, custodial, shareholder reporting,
sub-accounting and recordkeeping services and functions. This agreement provides
that AIM pays all fees and expenses associated with these and other functions,
including, but not limited to, registration fees, shareholder meeting fees, and
proxy statement and shareholder report expenses. During the period August 4,
1997 to December 31, 1997, AIM was paid $11,793 for such services. Prior to
August 4, 1997, the Company had an operating services agreement with ISI whereby
the Fund paid ISI an annual rate of 0.45% of daily net assets of the Fund.
During the period January 1, 1997 through August 3, 1997, the Fund paid ISI
$25,442.
During the period August 4, 1997 to December 31, 1997, AIM Distributors
received commissions of $778 in contingent deferred sales charges imposed on
redemptions of Fund shares. Certain officers and directors of the Company are
officers and directors of AIM and AIM Distributors. During the period January 1,
1997 through August 3, 1997, ISI received commissions of $3,541 in contingent
deferred sales charges imposed on redemptions of Fund shares.
The combined effect of the advisory agreement and operating services agreement
for the Fund is to place a cap or ceiling on the total expenses of the Fund,
other than brokerage commissions, interest, taxes, litigation, directors' fees
and expenses, and other extraordinary expenses. AIM has voluntarily agreed to
adhere to the maximum expense ratio for the Fund. To the extent that the Fund
exceeds the amounts, AIM will waive its fees to reimburse the Fund to assure
that the Fund's expenses do not exceed 0.95% of the Fund's average daily net
assets.
During the period August 4, 1997 to December 31, 1997, the Fund paid legal
fees of $573 for services rendered by Kramer, Levin, Naftalis & Frankel as
counsel to the Company's directors. A member of that firm is a director of the
Company.
4
<PAGE> 7
NOTE 3-DIRECTORS' FEES
Directors' fees represent remuneration paid or accrued to each director who is
not an "interested person" of AIM. The Company may invest directors' fees, if so
elected by a director, in mutual fund shares in accordance with a deferred
compensation plan.
NOTE 4-CAPITAL STOCK
Changes in the Fund's capital stock outstanding for the years ended December 31,
1997 and 1996 were as follows:
<TABLE>
<CAPTION>
1997 1996
-------------------------- --------------------------
SHARES AMOUNT SHARES AMOUNT
----------- ------------ ----------- ------------
<S> <C> <C> <C> <C>
Sold:
Class A* 196,674 $ 196,674 -- $ --
- ---------------------------------------------------------------------------------------------------------------------
Class C 18,074,098 18,074,098 35,844,336 35,844,336
- ---------------------------------------------------------------------------------------------------------------------
Issued as reinvestment of dividends:
Class A* 5,517 5,517 -- --
- ---------------------------------------------------------------------------------------------------------------------
Class C 354,946 354,946 487,618 487,618
- ---------------------------------------------------------------------------------------------------------------------
Reacquired:
Class A* (65,453) (65,453) -- --
- ---------------------------------------------------------------------------------------------------------------------
Class C (29,154,378) (29,154,378) (40,824,498) (40,824,498)
- ---------------------------------------------------------------------------------------------------------------------
(10,588,596) $(10,588,596) (4,492,544) $ (4,492,544)
=====================================================================================================================
</TABLE>
* Class A shares commenced operations on January 1, 1997.
5
<PAGE> 8
NOTE 5-FINANCIAL HIGHLIGHTS
Shown below are the financial highlights for a share of Class A capital stock
outstanding during the year ended December 31, 1997 and a share of Class C
capital stock outstanding during each of the years in the five-year period ended
December 31, 1997.
CLASS A:
<TABLE>
<CAPTION>
1997(a)
----------
<S> <C>
Net asset value, beginning of period $ 1.00
- ------------------------------------------------------------ ----------
Income from investment operations:
Net investment income 0.04
- ------------------------------------------------------------ ----------
Less distributions:
Dividends from net investment income (0.04)
- ------------------------------------------------------------ ----------
Net asset value, end of period $ 1.00
============================================================ ==========
Total return(b) 4.60%
============================================================ ==========
Ratios/supplemental data:
Net assets, end of period (000s omitted) $ 137
============================================================ ==========
Ratio of expenses to average net assets(c) 1.02%
============================================================ ==========
Ratio of net investment income to average net assets(c) 4.51%
============================================================ ==========
</TABLE>
(a) The Fund changed investment advisors on August 4, 1997.
(b) Does not deduct sales charges.
(c) Ratios are based on average net assets of $126,742.
CLASS C:
<TABLE>
<CAPTION>
1997(a) 1996 1995 1994 1993
------- ------- ------- ------- -------
<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 0.05 0.04 0.05 0.03 0.02
- ------------------------------------------------------------ ------- ------- ------- ------- -------
Less distributions:
Dividends from net investment income (0.05) (0.04) (0.05) (0.03) (0.02)
- ------------------------------------------------------------ ------- ------- ------- ------- -------
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
============================================================ ======= ======= ======= ======= =======
Total return(b) 4.69% 4.48% 5.04% 3.30% 2.20%
============================================================ ======= ======= ======= ======= =======
Ratios/supplemental data:
Net assets, end of period (000s omitted) $ 5,219 $15,946 $20,439 $15,212 $13,827
============================================================ ======= ======= ======= ======= =======
Ratio of expenses to average net assets 1.00% 1.04% 1.00% 1.00% 0.95%(d)
============================================================ ======= ======= ======= ======= =======
Ratio of net investment income to average net assets 4.53% 4.36% 4.91% 3.23% 2.17%(d)
============================================================ ======= ======= ======= ======= =======
</TABLE>
(a) The Fund changed investment advisors on August 4, 1997.
(b) Does not deduct sales charges, if applicable.
(c) Ratios are based on average net assets of $8,139,834.
(d) After fee waivers and/or expense reimbursements. The ratios of expenses and
net investment income to average net assets prior to fee waivers and/or
expense reimbursements were 1.03% and 2.09% for 1993.
NOTE 6-SUBSEQUENT EVENT
On February 17, 1998, the shareholders approved an Agreement and Plan of
Reorganization providing for the transfer of the assets of the Fund to AIM Money
Market Fund, a series of AIM Funds Group, a Delaware business trust having the
same advisor (AIM) as the Fund. On March 2, 1998 shareholders of the Fund will
receive Class A shares of AIM Money Market Fund in a tax-free transaction in
exchange for their shares having an aggregate net asset value equal to the net
asset value of their holdings in the Fund.
6
<PAGE> 9
REPORT OF INDEPENDENT ACCOUNTANTS
The Board of Directors and Shareholders
of the AIM Advisor Funds, Inc.
In our opinion, the accompanying statements of assets and
liabilities, including the schedule of investments, and
the related statements of operations and of changes in
net assets and the financial highlights present fairly,
in all material respects, the financial position of the
AIM Advisor Cash Management Fund, one of the portfolios
of the AIM Advisor Funds, Inc., (hereafter referred to as
the "Fund") at December 31, 1997, the results of its
operations for the year then ended, the changes in its
net assets for each of the two years in the period then
ended and the financial highlights for the periods
indicated, in conformity with generally accepted
accounting principles. These financial statements and
financial highlights (hereafter referred to as "financial
statements") are the responsibility of the Fund's
management; our responsibility is to express an opinion
on these financial statements based on our audits. We
conducted our audits of these financial statements in
accordance with generally accepted auditing standards
which require that we plan and perform the audit to
obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements,
assessing the accounting principles used and significant
estimates made by management, and evaluating the overall
financial statement presentation. We believe that our
audits, which included confirmation of securities at
December 31, 1997 by correspondence with the custodian
and the application of alternative auditing procedures
where securities purchased had not been received, provide
a reasonable basis for the opinion expressed above.
PRICE WATERHOUSE LLP
Denver, Colorado
February 5, 1998
7
<PAGE> 10
8
<PAGE> 11
Directors & Officers
<TABLE>
<CAPTION>
BOARD OF DIRECTORS 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; John J. Arthur A I M Advisors, Inc.
Formerly Director, President, and Senior Vice President and Treasurer 11 Greenway Plaza
Chief Executive Officer Suite 100
COMSAT Corporation Carol F. Relihan Houston, TX 77046
Senior Vice President and Secretary
Owen Daly II TRANSFER AGENT
Director Gary T. Crum
Cortland Trust Inc. Senior Vice President A I M Fund Services, Inc.
P.O. Box 4739
Jack Fields Dana R. Sutton Houston, TX 77210-4739
Chief Executive Officer Vice President and Assistant Treasurer
Texana Global, Inc.; CUSTODIAN
Formerly Member of Robert G. Alley
the U.S. House of Representatives Vice President State Street Bank and Trust Company
225 Franklin Street
Carl Frischling Stuart W. Coco Boston, MA 02110
Partner Vice President
Kramer, Levin, Naftalis & Frankel COUNSEL TO THE FUND
Melville B. Cox
Robert H. Graham Vice President Ballard Spahr
President and Chief Executive Officer Andrews & Ingersoll
A I M Management Group Inc. Karen Dunn Kelly 1735 Market Street
Vice President Philadelphia, PA 19103
John F. Kroeger
Formerly Consultant Jonathan C. Schoolar COUNSEL TO THE DIRECTORS
Wendell & Stockel Associates, Inc. Vice President
Kramer, Levin, Naftalis & Frankel
Lewis F. Pennock P. Michelle Grace 919 Third Avenue
Attorney Assistant Secretary New York, NY 10022
Ian W. Robinson Nancy L. Martin DISTRIBUTOR
Consultant; Formerly Executive Assistant Secretary
Vice President and A I M Distributors, Inc.
Chief Financial Officer Ofelia M. Mayo 11 Greenway Plaza
Bell Atlantic Management Assistant Secretary Suite 100
Services, Inc. Houston, TX 77046
Lisa A. Moss
Louis S. Sklar Assistant Secretary AUDITORS
Executive Vice President
Hines Interests Kathleen J. Pflueger Price Waterhouse LLP
Limited Partnership Assistant Secretary 950 Seventeenth Street
Suite 2500
Samuel D. Sirko Denver, CO 80202
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> 12
<TABLE>
<S> <C>
THE AIM FAMILY OF FUNDS--Registered Trademark--
AGGRESSIVE GROWTH
AIM Aggressive Growth Fund*
AIM Asian Growth Fund
AIM Capital Development Fund
AIM Constellation Fund
AIM European Development Fund
AIM Global Aggressive Growth Fund
[PHOTO OF GROWTH OF CAPITAL
11 GREENWAY PLAZA AIM Advisor International Value Fund
APPEARS HERE] AIM Blue Chip Fund
AIM Global Growth Fund
AIM Growth Fund
AIM International Equity Fund
AIM Value Fund
AIM Weingarten Fund
GROWTH AND INCOME OR INCOME WITH CAPITAL GROWTH
AIM Advisor Flex Fund
AIM Advisor Large Cap Value Fund
AIM Advisor MultiFlex Fund
AIM Advisor Real Estate Fund
AIM Balanced Fund
AIM Charter Fund
AIM Global Utilities Fund
HIGH CURRENT INCOME OR CURRENT INCOME
AIM High Yield Fund
AIM Global Income Fund
AIM Income Fund
CURRENT TAX-FREE INCOME
AIM High Income Municipal Fund
AIM Municipal Bond Fund
AIM Tax-Exempt Bond Fund of Connecticut
AIM Tax-Free Intermediate Fund
CURRENT INCOME AND HIGH DEGREE OF SAFETY
AIM Advisor Cash Management Fund
AIM Advisor Income Fund
A I M Management Group Inc. has provided leadership in the AIM Intermediate Government Fund
mutual fund industry since 1976 and manages approximately AIM Limited Maturity Treasury Fund
$83 billion in assets for more than 3.7 million shareholders, AIM Money Market Fund
including individual investors, corporate clients, and financial AIM Tax-Exempt Cash Fund
institutions as of December 31, 1997. The AIM Family of
Funds--Registered Trademark-- is distributed nationwide, and *AIM Aggressive Growth Fund was closed to new investors on
AIM today ranks among the nation's top 15 mutual fund June 5, 1997. For more complete information about any AIM
companies in assets under management, according to Lipper Fund(s), including sales charges and expenses, ask your
Analytical Services, Inc. financial consultant or securities dealer for a free
prospectus(es). Please read the prospectus(es) carefully
before you invest or send money.
INVEST WITH DISCIPLINE-SM-
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