<PAGE> 1
[AIM LOGO APPEARS HERE]
LETTER TO OUR
SHAREHOLDERS
January 31, 1996
Dear Shareholder:
In a favorable environment in the financial
markets, Limited Maturity Treasury Portfolio
[PHOTO OF Institutional Shares produced a total return
Charles T. Bauer of 3.99%, including re-invested distributions,
Chairman of during the six-month reporting period ended
the Board January 31, 1996. Net assets under management
of the Fund grew from $129.5 million to $145.9 million.
APPEARS HERE] In keeping with its clearly defined investment
strategy, the portfolio purchased mainly
two-year U.S. Treasury notes, held them until they had one year
to maturity, then sold them and reinvested the proceeds in more
two-year Treasuries. This strategy seeks to provide competitive
monthly income from the coupon-bearing securities and low share
price volatility because of the portfolio's short 1.4-year duration.
Duration is a widely used measure of a bond fund's reaction to
changes in interest rates; the shorter a fund's duration, the lower
its volatility.
As of January 31, 1996, the 30-day SEC yield for Limited Maturity
Treasury Portfolio Institutional Shares was 4.95%; the 30-day
distribution rate was 5.69%. The 30-day SEC yield is calculated on
the basis of a 30-day period according to the SEC formula. The
formula is based upon the portfolio's potential earnings from
dividends, interest and yield-to-maturity or yield-to-call of its
holdings, net of all expenses and expressed on an annualized basis.
The annualized 30-day distribution rate reflects the Fund's most
recent monthly dividend distribution multiplied by 12 and divided by
the most recent month-end net asset value.
Net asset value of a share as of January 31, 1996, was $10.12.
Net asset value per share fluctuated between a low of $9.99 and a
high of $10.12 during the six months covered by this report. Since
the Fund's inception in 1987, the rolling 12-month net asset value
of a share has never deviated more than 1.71%.
Your Fund continued to earn Standard & Poor's Corporation's
highest possible credit-quality rating of AAAf. This rating is based
on an annual analysis of the portfolio's credit quality,
composition, and management, and a weekly portfolio review. Funds
are rated from highest quality (AAA) to lowest credit quality (CCC)
by Standard & Poor's Corporation, an independent organization that
monitors the credit quality of bonds and other financial
instruments, including mutual funds.
The portfolio produced this excellent performance in a period of
continued boom in fixed-income markets, changing economic
performance, and anticipation of declining interest rates. The
benchmark short-term Federal Funds rate remained at 5.75% from July
until December, partly because economic activity appeared moderate
and partly because the Federal Reserve refrained from monetary
action while negotiations over a balanced federal government budget
were under way.
However, signs of economic weakness began to emerge late in 1995,
and at its December meeting, the Federal Reserve Board lowered the
Federal Funds rate to 5.50%. Further reports of disappointing
economic performance led the Federal Reserve Board to lower the
Federal Funds rate by another 0.25% at the end of January 1996.
As the reporting period closed, the prognosis for the near term
was for slow to moderate economic growth with low inflation. Such
economic conditions could put downward pressure on interest rates,
and many believe further rate cuts necessary. Because of its
laddered maturity structure, Limited Maturity Treasury Portfolio
Institutional Shares is well positioned for possible interest rate
changes.
We are pleased to send you this report on your Fund. As always,
we are ready to respond to your questions or comments about this
report. Please call one of our representatives at 800-659-1005.
Respectfully submitted,
/s/ CHARLES T. BAUER
Charles T. Bauer
Chairman
- -----------------------------------------------------------------------------
Government securities, such as U.S. Treasury bills and bonds, offer a high
degree of safety and are guaranteed as to the timely payment of principal and
interest. Fund shares are not insured and their value and yield will vary
with market conditions.
- -----------------------------------------------------------------------------
<PAGE> 2
SCHEDULE OF INVESTMENTS
January 31, 1996
(Unaudited)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MARKET
MATURITY (000s) VALUE
<S> <C> <C> <C>
U.S. TREASURY SECURITIES
U.S. TREASURY NOTES-97.83%
6.875% 02/28/97 $ 37,705 $ 38,466,641
- -----------------------------------------------------------------------------------------
6.625% 03/31/97 37,455 38,168,518
- -----------------------------------------------------------------------------------------
6.50% 04/30/97 37,780 38,493,664
- -----------------------------------------------------------------------------------------
6.125% 05/31/97 37,640 38,212,504
- -----------------------------------------------------------------------------------------
5.625% 06/30/97 38,240 38,612,075
- -----------------------------------------------------------------------------------------
5.875% 07/31/97 38,475 39,006,340
- -----------------------------------------------------------------------------------------
6.00% 08/31/97 38,575 39,191,043
- -----------------------------------------------------------------------------------------
5.75% 09/30/97 37,925 38,420,680
- -----------------------------------------------------------------------------------------
5.625% 10/31/97 37,475 37,905,213
- -----------------------------------------------------------------------------------------
5.375% 11/30/97 38,300 38,592,229
- -----------------------------------------------------------------------------------------
5.25% 12/31/97 37,800 38,028,690
- -----------------------------------------------------------------------------------------
5.00% 01/31/98 37,500 37,561,875
- -----------------------------------------------------------------------------------------
Total U.S. Treasury Securities 460,659,472
- -----------------------------------------------------------------------------------------
TOTAL INVESTMENTS -- 97.83% 460,659,472
- -----------------------------------------------------------------------------------------
OTHER ASSETS LESS LIABILITIES -- 2.17% 10,233,192
- -----------------------------------------------------------------------------------------
NET ASSETS -- 100.00% $470,892,664
=========================================================================================
</TABLE>
See Notes to Financial Statements.
2
<PAGE> 3
STATEMENT OF ASSETS AND LIABILITIES
January 31, 1996
(Unaudited)
<TABLE>
<S> <C>
ASSETS:
Investments, at market value (cost $455,148,847) $460,659,472
- ---------------------------------------------------------------------------------------------
Cash 20,433
- ---------------------------------------------------------------------------------------------
Receivables for:
Fund shares sold 6,897,680
- ---------------------------------------------------------------------------------------------
Interest 5,925,179
- ---------------------------------------------------------------------------------------------
Investment in deferred compensation plan 2,758
- ---------------------------------------------------------------------------------------------
Other assets 162,061
- ---------------------------------------------------------------------------------------------
Total assets 473,667,583
- ---------------------------------------------------------------------------------------------
LIABILITIES:
Payables for:
Fund shares reacquired 1,554,589
- ---------------------------------------------------------------------------------------------
Dividends 1,033,830
- ---------------------------------------------------------------------------------------------
Deferred compensation 2,758
- ---------------------------------------------------------------------------------------------
Accrued advisory fees 80,090
- ---------------------------------------------------------------------------------------------
Accrued distribution fees 40,336
- ---------------------------------------------------------------------------------------------
Accrued transfer agent fees 32,702
- ---------------------------------------------------------------------------------------------
Accrued operating expenses 30,614
- ---------------------------------------------------------------------------------------------
Total liabilities 2,774,919
- ---------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO SHARES OUTSTANDING $470,892,664
=============================================================================================
</TABLE>
<TABLE>
<CAPTION>
INSTITUTIONAL AIM
SHARES SHARES FUND
<S> <C> <C> <C>
NET ASSETS: $145,917,162 $324,975,502 $470,892,664
=============================================================================================
Shares outstanding, $0.01 par value per share 14,417,348 32,109,210 46,526,558
=============================================================================================
NET ASSET VALUE AND REDEMPTION PRICE PER SHARE $10.12
=============================================================================================
OFFERING PRICE PER SHARE:
(Net asset value of $10.12 divided by 99.00%)* $10.22
=============================================================================================
</TABLE>
* There is no sales charge or 12b-1 fee on sales of Institutional Shares.
See Notes to Financial Statements.
3
<PAGE> 4
STATEMENT OF OPERATIONS
For the six months ended January 31, 1996
(Unaudited)
<TABLE>
<CAPTION>
INSTITUTIONAL AIM
SHARES SHARES FUND
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest $ 4,332,914 $ 9,454,973 $ 13,787,887
- ----------------------------------------------------------------------------------------------
EXPENSES:
Advisory fees 137,704 301,086 438,790
- ----------------------------------------------------------------------------------------------
Administrative service fees 9,025 19,852 28,877
- ----------------------------------------------------------------------------------------------
Custodian fees 12,512 11,790 24,302
- ----------------------------------------------------------------------------------------------
Transfer agent fees 4,926 118,379 123,305
- ----------------------------------------------------------------------------------------------
Trustees' fees and expenses 1,493 3,387 4,880
- ----------------------------------------------------------------------------------------------
Distribution fees -- 225,814 225,814
- ----------------------------------------------------------------------------------------------
Other 29,693 122,399 152,092
- ----------------------------------------------------------------------------------------------
Total expenses 195,353 802,707 998,060
- ----------------------------------------------------------------------------------------------
Net investment income $ 4,137,561 $ 8,652,266 12,789,827
- ----------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Realized gain on sales of investment securities 2,658,303
- ----------------------------------------------------------------------------------------------
Unrealized appreciation of investment securities 1,498,997
- ----------------------------------------------------------------------------------------------
Net gain on investment securities 4,157,300
- ----------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 16,947,127
==============================================================================================
</TABLE>
See Notes to Financial Statements.
4
<PAGE> 5
STATEMENT OF CHANGES IN NET ASSETS
For the six months ended January 31, 1996 and
the year ended July 31, 1995
(Unaudited)
<TABLE>
<CAPTION>
JANUARY 31, JULY 31,
1996 1995
<S> <C> <C>
OPERATIONS:
Net investment income $ 12,789,827 $ 22,353,697
- ---------------------------------------------------------------------------------------
Net realized gain (loss) on sales of investment
securities 2,658,303 (7,239,070)
- ---------------------------------------------------------------------------------------
Net unrealized appreciation of investment securities 1,498,997 9,384,912
- ---------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 16,947,127 24,499,539
- ---------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM NET INVESTMENT INCOME:
Institutional Shares (4,137,561) (7,065,914)
- ---------------------------------------------------------------------------------------
AIM Shares (8,652,266) (15,287,783)
- ---------------------------------------------------------------------------------------
SHARE TRANSACTIONS-NET:
Institutional Shares 15,082,702 (6,229,532)
- ---------------------------------------------------------------------------------------
AIM Shares 47,642,288 (56,819,839)
- ---------------------------------------------------------------------------------------
Net increase (decrease) in net assets 66,882,290 (60,903,529)
- ---------------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 404,010,374 464,913,903
- ---------------------------------------------------------------------------------------
End of period $470,892,664 $404,010,374
=======================================================================================
NET ASSETS CONSIST OF:
Shares of beneficial interest $472,749,896 $410,024,906
- ---------------------------------------------------------------------------------------
Undistributed realized gain (loss) on sales of
investment securities (7,367,857) (10,026,160)
- ---------------------------------------------------------------------------------------
Unrealized appreciation of investment securities 5,510,625 4,011,628
- ---------------------------------------------------------------------------------------
$470,892,664 $404,010,374
=======================================================================================
</TABLE>
See Notes to Financial Statements.
5
<PAGE> 6
NOTES TO FINANCIAL STATEMENTS
January 31, 1996
(Unaudited)
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES
AIM Investment Securities Funds (the "Trust") is registered under the Investment
Company Act of 1940, as amended (the "1940 Act"), as an open-end series
management investment company. The Trust is organized as a Delaware business
trust consisting of one portfolio, the Limited Maturity Treasury Portfolio (the
"Fund"). The investment objective of the Fund is to seek liquidity with minimum
fluctuation in principal value and, consistent with this investment objective,
the highest total return achievable. The Fund currently offers two different
classes of shares: the AIM Limited Maturity Treasury Shares (the "AIM Shares")
and the Institutional Shares. Matters affecting each class are voted on
exclusively by such shareholders.
The following is a summary of the 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 these financial statements and
the reported amount of revenues and expenses during the reporting period. Actual
results could differ from those estimates.
A. Security Valuations--Debt obligations that are issued or guaranteed by the
U.S. Treasury are valued on the basis of prices provided by an independent
pricing service. Prices provided by the pricing service may be determined
without exclusive reliance on quoted prices, and may reflect appropriate
factors such as yield, type of issue, coupon rate and maturity date.
Securities for which market prices are not provided by the pricing service
are valued at the mean between last bid and asked prices based upon quotes
furnished by independent sources. Securities for which market quotations are
not readily available are valued at fair value as determined in good faith by
or under the supervision of the Trust's officers in a manner specifically
authorized by the Board of Trustees. Securities with a remaining maturity of
60 days or less are valued at amortized cost which approximates market value.
B. Securities Transactions and Investment Income--Securities transactions are
accounted for on a trade date basis. Interest income, adjusted for
amortization of discounts on investments, is earned from settlement date and
is recorded on the accrual basis. It is the policy of the Fund not to
amortize bond premiums for financial reporting purposes. Interest income is
allocated to each class daily, based upon each class' pro-rata share of the
total shares of the Fund outstanding. Realized gains and losses from
securities transactions are recorded on the identified cost basis.
C. Dividends and Distributions to Shareholders--It is the policy of the Fund to
declare daily dividends from net investment income. Such dividends are paid
monthly. Net realized short-term capital gains, if any, are distributed
quarterly. Net realized long-term capital gains, if any, are distributed
annually.
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. The Fund has a capital loss carryforward (which may
be carried forward to offset future taxable capital gains, if any) of
$5,819,679, which expires, if not previously utilized, in the year 2003.
6
<PAGE> 7
E. Expenses--Operating expenses directly attributable to a class of shares are
charged to that class' operations. Expenses which are applicable to more than
one class, e.g., advisory fees, are allocated between 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") with respect to the Fund. Under the terms of the master
investment advisory agreement, the Fund pays AIM an advisory fee at the annual
rate of 0.20% of the first $500 million of the Fund's average daily net assets
plus 0.175% of the Fund's average daily net assets in excess of $500 million.
This agreement requires AIM to reduce its fee or, if necessary, make payments to
the extent required to satisfy any expense limitations imposed by the securities
laws or regulations thereunder of any state in which the Fund shares are
qualified for sale.
The Fund, pursuant to a master administrative services agreement with AIM,
has agreed to reimburse AIM for certain administrative costs incurred in
providing accounting services to the Fund. During the six months ended
January 31, 1996, the Fund reimbursed AIM $28,877 for such services.
The Fund, pursuant to a transfer agent 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 AIM shares. During the six months ended January 31,
1996, AFS was paid $75,075 for such services. During the six months ended
January 31, 1996, the Fund paid A I M Institutional Fund Services, Inc. ("AIFS")
$4,820 pursuant to a transfer agency and shareholder services agreement with
respect to the Institutional Shares.
The Trust has entered into a master distribution agreement with A I M
Distributors, Inc. ("AIM Distributors") to serve as the distributor for the AIM
Shares and a master distribution agreement with Fund Management Company ("FMC")
to serve as the distributor for the Institutional Shares. The Trust has adopted
a Plan pursuant to Rule 12b-1 under the 1940 Act (the "Plan") with respect to
the AIM Shares. The Fund pays AIM Distributors compensation at an annual rate of
0.15% of the average net assets attributable to the AIM Shares. The 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 AIM Shares of the Fund. Any amounts not paid as a
service fee under such Plan would constitute an asset-based sales charge. The
Plan also imposes a cap on the total amount of sales charges, including
asset-based sales charges, that may be paid by the Fund. During the six months
ended January 31, 1996, the AIM Shares paid AIM Distributors $225,814 as
compensation under the Plan.
AIM Distributors received commissions of $95,700 during the six months ended
January 31, 1996 from sales of AIM Shares. Such commissions are not an expense
of the Fund. They are deducted from, and are not included in, proceeds from
sales of AIM shares. Certain officers and trustees of the Trust are officers and
directors of AIM, AIM Distributors, FMC, AFS and AIFS.
During the six months ended January 31, 1996, the Fund paid legal fees of
$2,764 for services rendered by Kramer, Levin, Naftalis, Nessen, Kamin & Frankel
as counsel to the Board of Trustees. A member of that firm is a trustee of the
Trust.
NOTE 3-BANK BORROWINGS
The Fund has a $6,700,000 committed line of credit with a financial institution
syndicate with Chemical Bank of New York as the administrative agent. Interest
on borrowings under the line of credit is payable on maturity or prepayment
date. During the six months ended January 31, 1996, the Fund did not borrow
under the line of credit agreement. The Fund is charged a commitment fee,
payable quarterly, at the rate of 1/10 of 1% per annum on the unused balance of
the Fund's committed line.
7
<PAGE> 8
NOTE 4-INVESTMENT SECURITIES
The aggregate amount of investment securities (other than short-term securities)
purchased and sold by the Fund during the six months ended January 31, 1996 was
$304,570,432 and $246,324,185, respectively.
The amount of unrealized appreciation (depreciation) of investment securities
on a tax basis as of January 31, 1996 is as follows:
<TABLE>
<S> <C>
Aggregate unrealized appreciation of investment securities $ 5,504,569
- ------------------------------------------------------------------------------
Aggregate unrealized (depreciation) of investment securities --
- ------------------------------------------------------------------------------
Net unrealized appreciation of investment securities $ 5,504,569
==============================================================================
</TABLE>
Cost of investments for tax purposes is $455,154,903.
NOTE 5-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.
NOTE 6-SHARE INFORMATION
Changes in the Institutional Shares outstanding during the six months ended
January 31, 1996 and the year ended July 31, 1995 were as follows:
<TABLE>
<CAPTION>
JANUARY 31, 1996 JULY 31, 1995
---------------------------- ----------------------------
SHARES AMOUNT SHARES AMOUNT
----------- ------------- ----------- -------------
<S> <C> <C> <C> <C>
Sold 3,326,757 $ 33,503,262 1,443,720 $ 14,412,733
- --------------------------------------------------------- ----------------------------
Issued as reinvestment of
dividends 66,552 669,682 113,174 1,124,015
- --------------------------------------------------------- ----------------------------
Reacquired (1,891,870) (19,090,242) (2,194,873) (21,766,280)
- --------------------------------------------------------- ----------------------------
1,501,439 $ 15,082,702 (637,979) $ (6,229,532)
========================================================= ============================
</TABLE>
8
<PAGE> 9
NOTE 7-FINANCIAL HIGHLIGHTS
Shown below are the condensed financial highlights for a share of Institutional
Shares outstanding during the six months ended January 31, 1996, the year ended
July 31, 1995, the eleven months ended July 31, 1994, each of the years in the
six-year period ended August 31, 1993 and the period July 13, 1987 (date
operations commenced) through August 31, 1987.
<TABLE>
<CAPTION>
JULY 31, AUGUST 31,
JANUARY 31, -------------------------- --------------------------
1996 1995 1994 1993 1992
----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 10.03 $ 9.96 $ 10.24 $ 10.21 $ 10.01
- ----------------------------------------------- --------- ---------- ---------- ---------- ----------
Income from investment operations:
Net investment income 0.31 0.57 0.37 0.44 0.60
- ----------------------------------------------- --------- ---------- ---------- ---------- ----------
Net gains (losses) on securities (both
realized and unrealized) 0.09 0.07 (0.20) 0.05 0.29
- ----------------------------------------------- --------- ---------- ---------- ---------- ----------
Total from investment operations 0.40 0.64 0.17 0.49 0.89
- ----------------------------------------------- --------- ---------- ---------- ---------- ----------
Less distributions:
Dividends from net investment income (0.31) (0.57) (0.37) (0.44) (0.60)
- ----------------------------------------------- --------- ---------- ---------- ---------- ----------
Distributions from net realized capital gains -- -- (0.08) (0.02) (0.09)
- ----------------------------------------------- --------- ---------- ---------- ---------- ----------
Total distributions (0.31) (0.57) (0.45) (0.46) (0.69)
- ----------------------------------------------- --------- ---------- ---------- ---------- ----------
Net asset value, end of period $ 10.12 $ 10.03 $ 9.96 $ 10.24 $ 10.21
=============================================== ========= ========== ========== ========== ==========
Total return(a) 3.99% 6.61% 1.72% 4.88% 9.14%
=============================================== ========= ========== ========== ========== ==========
Ratios/supplemental data:
Net assets, end of period (000s omitted) $ 145,917 $ 129,530 $ 134,971 $ 130,690 $ 89,352
=============================================== ========= ========== ========== ========== ==========
Ratio of expenses to average net assets 0.28%(b) 0.28% 0.25%(c) 0.24% 0.28%
=============================================== ========= ========== ========== ========== ==========
Ratio of net investment income to average net
assets 6.01%(b) 5.70% 3.98%(c) 4.30% 5.76%
=============================================== ========= ========== ========== ========== ==========
Portfolio turnover rate 56.15% 120.01% 120.40% 122.99% 119.62%
=============================================== ========= ========== ========== ========== ==========
Borrowings for the period:
Amount of debt outstanding at end of period
(000s omitted) -- -- -- -- --
- ----------------------------------------------- --------- ---------- ---------- ---------- ----------
Average amount of debt outstanding during the
period (000s omitted)(g) -- -- -- -- --
- ----------------------------------------------- --------- ---------- ---------- ---------- ----------
Average number of shares outstanding during
the period (000s omitted)(g) 13,544 12,540 16,864 9,785 6,097
- ----------------------------------------------- --------- ---------- ---------- ---------- ----------
Average amount of debt per share during the
period -- -- -- -- --
- ----------------------------------------------- --------- ---------- ---------- ---------- ----------
<CAPTION>
AUGUST 31,
-----------------------------------------------------------------------
1991 1990 1989 1988 1987
----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 9.79 $ 9.78 $ 9.80 $ 9.92 $ 10.00
- ----------------------------------------------- ---------- ---------- --------- ---------- ---------
Income from investment operations:
Net investment income 0.73 0.79 0.85 0.73 0.09
- ----------------------------------------------- ---------- ---------- --------- ---------- ---------
Net gains (losses) on securities (both
realized and unrealized) 0.22 0.01 (0.02) (0.12) (0.08)
- ----------------------------------------------- ---------- ---------- --------- ---------- ---------
Total from investment operations 0.95 0.80 0.83 0.61 0.01
- ----------------------------------------------- ---------- ---------- --------- ---------- ---------
Less distributions:
Dividends from net investment income (0.73) (0.79) (0.85) (0.83) (0.09)
- ----------------------------------------------- ---------- ---------- --------- ---------- ---------
Distributions from net realized capital gains -- -- -- -- --
- ----------------------------------------------- ---------- ---------- --------- ---------- ---------
Total distributions (0.73) (0.79) (0.85) (0.73) (0.09)
- ----------------------------------------------- ---------- ---------- --------- ---------- ---------
Net asset value, end of period $ 10.01 $ 9.79 $ 9.78 $ 9.80 $ 9.92
=============================================== ========== ========== ========= ========== =========
Total return(a) 10.08% 8.52% 8.87% 6.34% 0.14%
=============================================== ========== ========== ========= ========== =========
Ratios/supplemental data:
Net assets, end of period (000s omitted) $ 25,528 $ 10,378 $ 16,065 $ 35,310 $ 4,202
=============================================== ========== ========== ========= ========== =========
Ratio of expenses to average net assets 0.41%(d) 0.31%(e) 0.31%(f) 0.31%(f) 0.25%(c)(f)
=============================================== ========== ========== ========= ========== =========
Ratio of net investment income to average net
assets 7.36%(d) 8.12%(e) 8.69%(f) 7.46%(f) 6.98%(c)(f)
=============================================== ========== ========== ========= ========== =========
Portfolio turnover rate 214.74% 192.46% 219.53% 140.83% 28.29%
=============================================== ========== ========== ========= ========== =========
Borrowings for the period:
Amount of debt outstanding at end of period
(000s omitted) -- -- $ 2,257 10,892 --
- ----------------------------------------------- ---------- ---------- --------- ---------- ---------
Average amount of debt outstanding during the
period (000s omitted)(g) -- $ 834 $ 3,562 $ 3,754
- ----------------------------------------------- ---------- ---------- --------- ---------- ---------
Average number of shares outstanding during
the period (000s omitted)(g) 1,477 1,208 1,817 2,118 390
- ----------------------------------------------- ---------- ---------- --------- ---------- ---------
Average amount of debt per share during the
period -- $ 0.69 $ 1.96 $ 1.69 --
- ----------------------------------------------- ---------- ---------- --------- ---------- ---------
</TABLE>
(a) For periods less than one year, the total return is not annualized.
(b) Ratios are annualized and based on average net assets of $136,581,665.
(c) Annualized.
(d) After expense reimbursements.
(e) After waiver of advisory fees and expense reimbursements.
(f) After waiver of advisory fees.
(g) Averages computed on a daily basis.
9
<PAGE> 10
This page intentionally left blank.
10
<PAGE> 11
<TABLE>
<S> <C> <C>
TRUSTEES
Charles T. Bauer John F. Kroeger
Bruce L. Crockett Lewis F. Pennock AIM INVESTMENT
Owen Daly II Ian W. Robinson SECURITIES FUNDS
Carl Frischling Louis S. Sklar
Robert H. Graham
OFFICERS
Charles T. Bauer Chairman
Robert H. Graham President
John J. Arthur Sr. Vice President & Treasurer
Gary T. Crum Sr. Vice President
Carol F. Relihan Vice President & Secretary LIMITED MATURITY
Melville B. Cox Vice President TREASURY PORTFOLIO
Karen Dunn Kelley Vice President --------------------------------
Dana R. Sutton Vice President & Assistant Treasurer INSTITUTIONAL SEMI-
P. Michelle Grace Assistant Secretary SHARES ANNUAL
David L. Kite Assistant Secretary REPORT
Nancy L. Martin Assistant Secretary
Ofelia M. Mayo Assistant Secretary
Kathleen J. Pflueger Assistant Secretary
Samuel D. Sirko Assistant Secretary
Stephen I. Winer Assistant Secretary
Mary J. Benson Assistant Treasurer
January 31, 1996
INVESTMENT ADVISOR
A I M Advisors, Inc.
11 Greenway Plaza, Suite 1919
Houston, TX 77046
800-347-1919
DISTRIBUTOR
Fund Management Company
11 Greenway Plaza, Suite 1919
Houston, TX 77046
800-659-1005
CUSTODIAN
The Bank of New York
110 Washington Street, 8th Floor
New York, NY 10286
LEGAL COUNSEL TO FUND
Ballard Spahr Andrews & Ingersoll
1735 Market Street
Philadelphia, PA 19103-7599
LEGAL COUNSEL TO TRUSTEES
Kramer, Levin, Naftalis, Nessen, Kamin & Frankel
919 Third Avenue
New York, NY 10022
TRANSFER AGENT
A I M Institutional Fund Services, Inc.
11 Greenway Plaza, Suite 1919
Houston, TX 77046
This report may be distributed only to current shareholders or [LOGO APPEARS HERE]
to persons who have received a current Fund prospectus. Fund Management Company [sm]
</TABLE>
