<PAGE> 1
ANNUAL REPORT / JULY 31 2000
AIM MONEY MARKET FUND
[COVER IMAGE]
[AIM LOGO APPEARS HERE]
--Registered Trademark--
<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 fiscal year ended July 31, 2000. While the
Charles T. latter part of 1999 saw numerous record highs in markets
Bauer, worldwide, 2000 has thus far proved quite a different story.
Chairman of
the Board of MARKET SHIFTS UNSETTLE INVESTORS
THE FUND During much of 1999, technology dominated markets overall,
APPEARS HERE] even though the sector's eye-popping returns were not
duplicated by the broader market. Indeed, for fixed-income
markets, 1999 was one of the worst years on record. But the
new year brought with it unprecedented volatility and a
major shift in market sentiment when some companies'
sky-high valuations came into question.
Also shaking market confidence were interest-rate hikes
by the Federal Reserve Board (the Fed) and investors'
concerns over potential inflation. The Fed has been raising
interest rates since June 1999 to cool what it feared was a too-hot growth rate
for the U.S. economy. Mixed signals from leading economic indicators made it
difficult to determine when the Fed would end its tightening cycle.
During the first quarter of 2000, the U.S. Treasury announced plans to issue
fewer securities and to begin buying back its own debt. Such a decrease in
supply has led to higher prices, especially among longer-term Treasuries (15+
years) where the buyback has been concentrated. Higher prices mean lower yields,
which has resulted in an inverted yield curve (long-term yields below short-term
yields). Consequently, cash in the form of three- and six-month Treasury bills
provided attractive income, with yields jumping from 4.75% to 6.25% and from
4.87% to 6.43%, respectively, during the reporting period.
FUND A BULWARK IN VOLATILE MARKETS
The fund continued to provide steady income and safety of principal in the midst
of the difficult market environment. The fund maintained a weighted average
maturity (WAM) in the 15- to 28-day range throughout the reporting period. At
the end of the fiscal year, the WAM stood at 22.37 days, and seven-day yields
for the fund were 5.58% for Cash Reserve Shares, 4.85% for Class B shares and
4.86% for Class C shares. Total net assets in the fund stood at $1.2 billion at
the end of the reporting period.
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 not a deposit of a bank and is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other government
agency. Although a money market fund seeks to preserve the value of your
investment at $1.00 per share, it is possible to lose money by investing in the
fund.
OUTLOOK
While there are signs that the economy may be slowing to a sustainable growth
level, the Fed deems it too early to say that its rate hikes have indeed halted
inflation. The fact that the Fed did not raise interest rates at its August
meeting may indicate that its tightening cycle is winding down. The fund is well
positioned to respond quickly to interest-rate changes and to continue to
provide a competitive yield.
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.
----------------------------------
NEW FISCAL YEAR-END, PROXY RESULTS
Since our last report to you, your fund's fiscal year-end was changed from
December 31 to July 31. You will receive an annual report dated July 31 and a
semiannual report dated January 31 each year.
In addition, during the fiscal year, shareholders voted on several proposals
made in a proxy solicitation. Details concerning these proxy votes will be
found in the financial pages of this report.
COVER ART: WATER LILIES BY CLAUDE MONET
----------------------------------
AIM MONEY MARKET FUND
<PAGE> 3
SCHEDULE OF INVESTMENTS
JULY 31, 2000
<TABLE>
<CAPTION>
MATURITY PAR (000) VALUE
<S> <C> <C> <C>
COMMERCIAL PAPER-40.34%(a)
ASSET-BACKED SECURITIES-
COMMERCIAL/LOAN/
LEASES-3.21%
Atlantis One Funding Corp.
6.57% 08/18/00 $ 27,000 $ 26,916,233
------------------------------------------------------------------
Centric Capital Corp.
6.68% 12/27/00 13,500 13,129,260
------------------------------------------------------------------
40,045,493
------------------------------------------------------------------
ASSET-BACKED SECURITIES-
CONSUMER
RECEIVABLES-4.31%
Old Line Funding Corp.
6.57% 08/04/00 31,380 31,362,819
------------------------------------------------------------------
Thunder Bay Funding Inc.
6.54% 09/08/00 22,588 22,432,068
------------------------------------------------------------------
53,794,887
------------------------------------------------------------------
ASSET-BACKED
SECURITIES-FULLY
BACKED-5.64%
Forrestal Funding Master
Trust
6.53% 09/08/00 30,602 30,391,067
------------------------------------------------------------------
6.55% 09/26/00 14,000 13,857,356
------------------------------------------------------------------
Triple-A One Funding Master
Trust
6.53% 09/14/00 26,264 26,054,384
------------------------------------------------------------------
70,302,807
------------------------------------------------------------------
ASSET-BACKED SECURITIES-
MULTI-PURPOSE-14.30%
Clipper Receivables Funding
Corp.
6.56% 09/08/00 25,000 24,826,889
------------------------------------------------------------------
Corporate Receivables Corp.
6.53% 09/14/00 50,000 49,600,944
------------------------------------------------------------------
Falcon Asset Securitization
Corp.
6.19% 09/18/00 35,000 34,711,133
------------------------------------------------------------------
Monte Rosa Capital Corp.
6.53% 08/17/00 29,401 29,315,672
------------------------------------------------------------------
Preferred Receivables
Funding Corp.
6.51% 08/28/00 40,000 39,804,700
------------------------------------------------------------------
178,259,338
------------------------------------------------------------------
BANKS-REGIONAL-6.92%
Delaware Funding Corp.
6.53% 09/08/00 27,037 26,850,640
------------------------------------------------------------------
Wells Fargo & Co.
6.61% 09/22/00 60,000 59,427,133
------------------------------------------------------------------
86,277,773
------------------------------------------------------------------
FINANCIAL-DIVERSIFIED-5.96%
Associates First Capital
Corp.
6.58% 09/26/00 30,000 29,692,933
------------------------------------------------------------------
6.61% 09/28/00 25,000 24,733,764
------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MATURITY PAR (000) VALUE
<S> <C> <C> <C>
FINANCIAL-DIVERSIFIED-(CONTINUED)
General Electric Capital
Corp.
6.06% 08/28/00 $ 20,000 $ 19,909,100
------------------------------------------------------------------
74,335,797
------------------------------------------------------------------
Total Commercial Paper
(Cost $503,016,095) 503,016,095
------------------------------------------------------------------
SHORT-TERM OBLIGATIONS-8.56%
BANKS-DOMESTIC-1.00%
Atlantic American Corp.,
Weekly VRD Series,
(LOC-Wachovia Bank)
6.62%(b) 06/01/09 12,500 12,500,000
------------------------------------------------------------------
BANKS-REGIONAL-3.03%
Capital One Funding Corp.,
Floating Rate Notes,
Weekly VRD Series
6.70%(b) 08/01/12 11,436 11,436,000
------------------------------------------------------------------
Family Express Corp., LLC,
Loan Program Notes,
Weekly VRD Series,
(LOC-First of America
Bank)
6.67%(b) 04/01/28 9,040 9,040,000
------------------------------------------------------------------
KBL Capital Fund Inc., Loan
Program Notes, Weekly VRD
Series, (LOC-National
City Bank)
6.67%(b) 05/01/27 17,350 17,350,000
------------------------------------------------------------------
37,826,000
------------------------------------------------------------------
FINANCIAL-DIVERSIFIED-3.73%
Associates Corp. NA, Medium
Term Notes
5.85% 01/15/01 8,443 8,415,793
------------------------------------------------------------------
AT&T Capital Corp., Medium
Term Notes
7.50% 11/15/00 16,000 16,040,981
------------------------------------------------------------------
Beneficial Corp., Medium
Term Notes
6.33% 12/18/00 9,000 8,985,811
------------------------------------------------------------------
General Electric Capital
Corp., Floating Rate
Medium Term Notes
6.54%(c) 08/21/00 13,000 12,998,513
------------------------------------------------------------------
46,441,098
------------------------------------------------------------------
INVESTMENT BANKING/
BROKERAGE-0.80%
Morgan Stanley Dean Witter
& Co., Floating Rate
Medium Term Notes
6.61%(c) 09/06/00 10,000 10,000,000
------------------------------------------------------------------
Total Short-Term
Obligations (Cost
$106,767,098) 106,767,098
------------------------------------------------------------------
</TABLE>
1
<PAGE> 4
<TABLE>
<CAPTION>
MATURITY PAR (000) VALUE
<S> <C> <C> <C>
TAXABLE MUNICIPAL BONDS-3.75%
FINANCE-MULTIPLE
INDUSTRY-2.21%
Mississippi Business
Finance Corp.
(Mississippi Industrial
Development); Revenue
Bonds, Weekly VRD Series
6.70% (LOC-Bank of
America)(b) 06/01/15 $ 17,500 $ 17,500,000
------------------------------------------------------------------
6.62%(b) 02/01/23 10,000 10,000,000
------------------------------------------------------------------
27,500,000
------------------------------------------------------------------
HOSPITAL MANAGEMENT-1.54%
Colorado Health Facilities
Authority; Revenue Bonds,
Weekly VRD Series,
(LOC-KBC Bank N.V.)
6.60%(b) 03/01/30 9,750 9,750,000
------------------------------------------------------------------
Illinois Health Facilities
Authority (Loyola
University Health
Systems); Revenue Bonds,
Weekly VRD Series
6.60%(b)(d) 07/01/24 9,500 9,500,000
------------------------------------------------------------------
19,250,000
------------------------------------------------------------------
Total Taxable Municipal
Bonds (Cost
$46,750,000) 46,750,000
------------------------------------------------------------------
CERTIFICATES OF
DEPOSIT-2.01%
Commerzbank
6.31% (Cost $25,000,535) 08/22/00 25,000 25,000,535
------------------------------------------------------------------
MASTER NOTE
AGREEMENTS-10.83%(e)
Merrill Lynch Mortgage
Capital, Inc.
6.95%(f) 08/17/00 75,000 75,000,000
------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MATURITY PAR (000) VALUE
<S> <C> <C> <C>
MASTER NOTE AGREEMENTS-(CONTINUED)
Morgan Stanley Dean Witter
& Co.
6.79%(g) 09/01/00 $ 60,000 $ 60,000,000
------------------------------------------------------------------
Total Master Note
Agreements (Cost
$135,000,000) 135,000,000
------------------------------------------------------------------
Total Investments
(excluding repurchase
agreements) (Cost
$816,533,728) 816,533,728
------------------------------------------------------------------
REPURCHASE
AGREEMENTS-32.01%(h)
Bank of America Securities
6.64%(i) 08/01/00 225,091 225,090,983
------------------------------------------------------------------
Credit Suisse First Boston
Corp.
6.62%(j) 08/01/00 58,000 58,000,000
------------------------------------------------------------------
UBS Warburg
6.64%(k) 08/01/00 58,000 58,000,000
------------------------------------------------------------------
Westdeutsche Landesbank
Girozentrale
6.64%(l) 08/01/00 58,000 58,000,000
------------------------------------------------------------------
Total Repurchase
Agreements (Cost
$399,090,983) 399,090,983
------------------------------------------------------------------
TOTAL INVESTMENTS-97.50% 1,215,624,711(m)
------------------------------------------------------------------
OTHER ASSETS LESS
LIABILITIES-2.50% 31,201,651
------------------------------------------------------------------
NET ASSETS-100.00% $1,246,826,362
==================================================================
</TABLE>
Investment Abbreviations:
LOC - Letter of Credit
VRD - Variable Rate Demand
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) Demand security; payable upon demand by the Fund with usually no more than
seven calendar days notice. Interest rates are redetermined periodically.
Rates shown are rates in effect on 07/31/00.
(c) The coupon rate shown on floating rate note represents the rate at period
end.
(d) Secured by bond insurance provided by MBIA Insurance Co.
(e) The investments in master note 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.
(f) 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
07/31/00.
(g) 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
07/31/00.
(h) 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.
(i) Joint repurchase agreement entered into 07/31/00 with a maturing value of
$750,138,333. Collateralized by $862,030,072 par value of U.S. Government
obligations, 5.00% to 7.50% due 01/15/04 to 07/01/29 with an aggregate
market value at 07/31/00 of $765,000,000.
(j) Joint repurchase agreement entered into 07/31/00 with a maturing value of
$150,027,583. Collateralized by $158,744,000 par value of U.S. Government
obligations, 0% to 7.25% due 08/01/00 to 05/15/29 with an aggregate market
value at 07/31/00 of $155,738,821.
(k) Joint repurchase agreement entered into 07/31/00 with a maturing value of
$500,092,222. Collateralized by $605,860,547 par value of U.S. Government
and Treasury obligations, 5.50% to 9.00% due 12/15/01 to 12/15/37 with an
aggregate market value at 07/31/00 of $510,001,104.
(l) Joint repurchase agreement entered into 07/31/00 with a maturing value of
$200,036,889. Collateralized by $249,829,594 par value of U.S. Government
obligations, 6.00% to 7.13% due 01/01/04 to 08/01/29 with an aggregate
market value at 07/31/00 of $204,303,574.
(m) Also represents Cost for federal income tax purposes.
See Notes to Financial Statements.
2
<PAGE> 5
SCHEDULE OF INVESTMENTS
JUNE 30, 2000
(UNAUDITED)
<TABLE>
<CAPTION>
MATURITY PAR (000) VALUE
<S> <C> <C> <C>
COMMERCIAL PAPER-18.61%(a)
ASSET-BACKED SECURITIES-
COMMERCIAL/LOAN/
LEASES-3.11%
Atlantis One Funding Corp.
6.57% 08/18/00 $ 27,000 $ 26,763,480
------------------------------------------------------------------
Centric Capital Corp.
6.68% 12/27/00 13,500 13,051,605
------------------------------------------------------------------
39,815,085
------------------------------------------------------------------
ASSET-BACKED SECURITIES-
CONSUMER
RECEIVABLES-2.43%
Old Line Funding Corp.
6.57% 08/04/00 31,380 31,185,287
------------------------------------------------------------------
ASSET-BACKED SECURITIES-
MULTI-PURPOSE-2.69%
Falcon Asset Securitization
Corp.
6.19% 09/18/00 35,000 34,524,574
------------------------------------------------------------------
BANKS-REGIONAL-4.61%
Wells Fargo & Company
6.61% 09/22/00 60,000 59,085,617
------------------------------------------------------------------
FINANCIAL-DIVERSIFIED-5.77%
Associates First Capital
Corp.
6.58% 09/26/00 30,000 29,522,950
------------------------------------------------------------------
6.61% 09/28/00 25,000 24,591,465
------------------------------------------------------------------
General Electric Capital
Corp.
6.06% 08/28/00 20,000 19,804,733
------------------------------------------------------------------
73,919,148
------------------------------------------------------------------
Total Commercial Paper
(Cost $238,529,711) 238,529,711
------------------------------------------------------------------
SHORT-TERM
OBLIGATIONS-6.99%
BANKS-DOMESTIC-0.97%
Atlantic American Corp.,
Weekly VRD Series,
(LOC-Wachovia Bank)
6.67%(b) 06/01/09 12,500 12,500,000
------------------------------------------------------------------
BANKS-REGIONAL-1.62%
Capital One Funding Corp.,
Floating Rate Notes,
Weekly VRD Series
6.70%(b) 08/01/12 11,674 11,674,000
------------------------------------------------------------------
Family Express Corp., LLC,
Loan Program Notes,
Weekly VRD Series,
(LOC-First of America
Bank)
6.73%(b) 04/01/28 9,040 9,040,000
------------------------------------------------------------------
20,714,000
------------------------------------------------------------------
FINANCIAL-DIVERSIFIED-3.62%
Associates Corp. NA, Medium
Term Notes
5.85% 01/15/01 8,443 8,410,743
------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MATURITY PAR (000) VALUE
<S> <C> <C> <C>
FINANCIAL-DIVERSIFIED-(CONTINUED)
AT&T Capital Corp., Medium
Term Notes
7.50% 11/15/00 $ 16,000 $ 16,052,966
------------------------------------------------------------------
Beneficial Corp., Medium
Term Notes
6.33% 12/18/00 9,000 8,982,646
------------------------------------------------------------------
General Electric Capital
Corp., Floating Rate
Medium Term Notes
6.86%(c) 08/21/00 13,000 12,996,207
------------------------------------------------------------------
46,442,562
------------------------------------------------------------------
INVESTMENT BANKING/
BROKERAGE-0.78%
Morgan Stanley Dean Witter
& Co., Floating Rate
Medium Term Notes
6.93%(c) 09/06/00 10,000 10,000,000
------------------------------------------------------------------
Total Short-Term
Obligations (Cost
$89,656,562) 89,656,562
------------------------------------------------------------------
TAXABLE MUNICIPAL
BONDS-3.65%
FINANCE-MULTIPLE
INDUSTRY-2.15%
Mississippi Business
Finance Corp.
(Mississippi Industrial
Development); Revenue
Bonds, Weekly VRD Series
6.74% (LOC-Bank of
America)(b) 06/01/15 17,500 17,500,000
------------------------------------------------------------------
6.63%(b) 02/01/23 10,000 10,000,000
------------------------------------------------------------------
27,500,000
------------------------------------------------------------------
HOSPITAL MANAGEMENT-1.50%
Colorado Health Facilities
Authority; Revenue Bonds,
Weekly VRD Series
(LOC-KBC Bank N.V.)
6.65%(b) 03/01/30 9,750 9,750,000
------------------------------------------------------------------
Illinois Health Facilities
Authority (Loyola
University Health
Systems); Revenue Bonds,
Weekly VRD Series
6.85%(b)(d) 07/01/24 9,500 9,500,000
------------------------------------------------------------------
19,250,000
------------------------------------------------------------------
Total Taxable Municipal
Bonds (Cost
$46,750,000) 46,750,000
------------------------------------------------------------------
CERTIFICATES OF
DEPOSIT-2.73%
Bank Austria
5.65% 07/06/00 10,000 9,999,934
------------------------------------------------------------------
Commerzbank
6.31% 08/22/00 25,000 25,001,324
------------------------------------------------------------------
Total Certificates of
Deposit (Cost
$35,001,258) 35,001,258
------------------------------------------------------------------
</TABLE>
3
<PAGE> 6
<TABLE>
<CAPTION>
MATURITY PAR (000) VALUE
<S> <C> <C> <C>
MASTER NOTE
AGREEMENTS-10.53%(e)
Merrill Lynch Mortgage
Capital, Inc.
7.34%(f) 08/17/00 $ 75,000 $ 75,000,000
------------------------------------------------------------------
Morgan Stanley Dean Witter
& Co.
7.23%(g) 09/01/00 60,000 60,000,000
------------------------------------------------------------------
Total Master Note
Agreements (Cost
$135,000,000) 135,000,000
------------------------------------------------------------------
Total Investments
(excluding repurchase
agreements) (Cost
$544,937,531) 544,937,531
------------------------------------------------------------------
REPURCHASE
AGREEMENTS-53.01%(h)
Bank of America Securities
6.90%(i) 07/03/00 10,000 10,000,000
------------------------------------------------------------------
Barclays Capital Inc.
6.80%(j) 07/03/00 58,000 58,000,000
------------------------------------------------------------------
Chase Securities, Inc.
6.80%(k) 07/03/00 296,600 296,600,000
------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MATURITY PAR (000) VALUE
<S> <C> <C> <C>
REPURCHASE AGREEMENTS-(CONTINUED)
Deutsche Bank Securities
Corp.
6.72%(l) 07/03/00 $ 82,923 $ 82,922,978
------------------------------------------------------------------
First Union Capital Markets
6.90%(m) 07/03/00 58,000 58,000,000
------------------------------------------------------------------
Goldman Sachs & Co.
6.88%(n) 07/03/00 58,000 58,000,000
------------------------------------------------------------------
UBS Warburg
6.85%(o) 07/03/00 58,000 58,000,000
------------------------------------------------------------------
Westdeutsche Landesbank
Girozentrale
6.85%(p) 07/03/00 58,000 58,000,000
------------------------------------------------------------------
Total Repurchase
Agreements (Cost
$679,522,978) 679,522,978
------------------------------------------------------------------
TOTAL INVESTMENTS-95.52% 1,224,460,509(q)
------------------------------------------------------------------
OTHER ASSETS LESS
LIABILITIES-4.48% 57,396,025
------------------------------------------------------------------
NET ASSETS-100.00% $1,281,856,534
==================================================================
</TABLE>
Investment Abbreviations:
LOC - Letter of Credit
VRD - Variable Rate Demand
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) Demand security; payable upon demand by the Fund with usually no more than
seven calendar days notice. Interest rates are redetermined periodically.
Rates shown are rates in effect on 06/30/00.
(c) The coupon rate shown on floating rate note represents the rate at period
end.
(d) Secured by bond insurance provided by MBIA Insurance Co.
(e) The investments in master note 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.
(f) 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
06/30/00.
(g) 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
06/30/00.
(h) 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.
(i) Joint repurchase agreement entered into 06/30/00 with a maturing value of
$500,287,500. Collateralized by $556,572,016 par value of U.S. Government
obligations, 6.11% to 6.50% due 12/01/14 to 07/01/29 with an aggregate
market value at 06/30/00 of $510,000,000.
(j) Joint repurchase agreement entered into 06/30/00 with a maturing value of
$467,874,523. Collateralized by $479,206,000 par value of U.S. Government
obligations, 0% to 7.25% due 08/02/00 to 05/14/10 with an aggregate market
value at 06/30/00 of $476,961,879.
(k) Joint repurchase agreement entered into 06/30/00 with a maturing value of
$300,170,000. Collateralized by $543,975,698 par value of U.S. Government
and Treasury obligations, 0% to 9.00% due 06/15/09 to 03/01/33 with an
aggregate market value at 06/30/00 of $306,003,760.
(l) Joint repurchase agreement entered into 06/30/00 with a maturing value of
$150,084,000. Collateralized by $154,584,000 par value of U.S. Government
obligations, 0% to 7.25% due 11/02/00 to 05/13/05 with an aggregate market
value at 06/30/00 of $153,004,476.
(m) Joint repurchase agreement entered into 06/30/00 with a maturing value of
$750,431,250. Collateralized by $1,638,512,025 par value of U.S. Government
and Treasury obligations, 5.00% to 12.50% due 10/01/00 to 07/01/30 with an
aggregate market value at 06/30/00 of $765,000,000.
(n) Joint repurchase agreement entered into 06/30/00 with a maturing value of
$1,000,573,333. Collateralized by $1,815,571,441 par value of U.S.
Government and Treasury obligations, 0% to 10.00% due 03/01/05 to 06/01/37
with an aggregate market value at 06/30/00 of $1,020,000,001.
(o) Joint repurchase agreement entered into 06/30/00 with a maturing value of
$250,142,708. Collateralized by $310,901,218 par value of U.S. Government
and Treasury obligations, 6.00% to 8.50% due 03/15/01 to 12/15/37 with an
aggregate market value at 06/30/00 of $255,000,262.
(p) Joint repurchase agreement entered into 06/30/00 with a maturing value of
$200,114,167. Collateralized by $293,357,525 par value of U.S. Government
and Treasury obligations, 5.50% to 9.50% due 01/31/02 to 08/01/29 with an
aggregate market value at 06/30/00 of $204,000,456.
(q) Also represents cost for federal income tax purposes.
See Notes to Financial Statements.
4
<PAGE> 7
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
JUNE 30,
JULY 31, 2000
2000 (UNAUDITED)
-------------- --------------
<S> <C> <C>
ASSETS:
Investments, excluding repurchase agreements, at value
(amortized cost) $ 816,533,728 $ 544,937,531
---------------------------------------------------------------------------------------------
Repurchase agreements 399,090,983 679,522,978
---------------------------------------------------------------------------------------------
Receivables for:
Investments sold 238,000 --
---------------------------------------------------------------------------------------------
Fund shares sold 91,517,474 79,884,809
---------------------------------------------------------------------------------------------
Interest 2,573,876 2,907,800
---------------------------------------------------------------------------------------------
Investment for deferred compensation plan 93,043 91,036
---------------------------------------------------------------------------------------------
Other assets 271,472 263,285
---------------------------------------------------------------------------------------------
Total assets 1,310,318,576 1,307,607,439
---------------------------------------------------------------------------------------------
LIABILITIES:
Payables for:
Fund shares reacquired 61,779,969 23,671,140
---------------------------------------------------------------------------------------------
Dividends 266,174 254,396
---------------------------------------------------------------------------------------------
Deferred compensation plan 93,043 91,036
---------------------------------------------------------------------------------------------
Accrued advisory fees 541,572 565,533
---------------------------------------------------------------------------------------------
Accrued administrative service fees 11,946 11,745
---------------------------------------------------------------------------------------------
Accrued distribution fees 461,927 896,390
---------------------------------------------------------------------------------------------
Accrued trustees' fees 802 2,991
---------------------------------------------------------------------------------------------
Accrued transfer agent fees 241,659 184,654
---------------------------------------------------------------------------------------------
Accrued operating expenses 95,122 73,020
---------------------------------------------------------------------------------------------
Total liabilities 63,492,214 25,750,905
---------------------------------------------------------------------------------------------
Net assets applicable to shares outstanding $1,246,826,362 $1,281,856,534
=============================================================================================
NET ASSETS:
AIM Cash Reserve Shares $ 912,041,597 $ 932,932,450
=============================================================================================
Class B $ 289,327,479 $ 302,416,702
=============================================================================================
Class C $ 45,457,286 $ 46,507,382
=============================================================================================
SHARES OUTSTANDING, $0.01 PAR VALUE PER SHARE:
AIM Cash Reserve Shares 912,028,393 932,915,313
=============================================================================================
Class B 289,323,006 302,417,029
=============================================================================================
Class C 45,456,592 46,505,821
=============================================================================================
AIM Cash Reserve Shares:
Net asset value, redemption and offering price per share $ 1.00 $ 1.00
=============================================================================================
Class B:
Net asset value and offering price per share $ 1.00 $ 1.00
=============================================================================================
Class C:
Net asset value and offering price per share $ 1.00 $ 1.00
=============================================================================================
</TABLE>
See Notes to Financial Statements.
5
<PAGE> 8
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
SIX MONTHS
SEVEN MONTHS ENDED YEAR
ENDED JUNE 30, ENDED
JULY 31, 2000 DECEMBER 31,
2000 (UNAUDITED) 1999
------------ ----------- ------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest $46,634,241 $39,794,906 $72,284,896
-------------------------------------------------------------------------------------------------------
EXPENSES:
Advisory fees 4,041,617 3,500,045 7,448,373
-------------------------------------------------------------------------------------------------------
Administrative services fees 83,475 71,529 118,024
-------------------------------------------------------------------------------------------------------
Custodian fees 84,840 72,658 171,275
-------------------------------------------------------------------------------------------------------
Distribution fees - AIM Cash Reserve Shares 1,332,550 1,145,100 2,443,795
-------------------------------------------------------------------------------------------------------
Distribution fees - Class B 1,905,178 1,669,584 3,680,653
-------------------------------------------------------------------------------------------------------
Distribution fees - Class C 265,889 229,427 440,903
-------------------------------------------------------------------------------------------------------
Trustees' fees 6,820 6,540 15,267
-------------------------------------------------------------------------------------------------------
Transfer agent fees - AIM Cash Reserve Shares 1,105,308 935,627 1,549,204
-------------------------------------------------------------------------------------------------------
Transfer agent fees - Class B 395,108 341,020 583,322
-------------------------------------------------------------------------------------------------------
Transfer agent fees - Class C 55,135 46,874 69,876
-------------------------------------------------------------------------------------------------------
Other 377,807 323,718 1,055,705
-------------------------------------------------------------------------------------------------------
Total expenses 9,653,727 8,342,122 17,576,397
-------------------------------------------------------------------------------------------------------
Less: Expenses paid indirectly (20,578) (16,924) (20,102)
-------------------------------------------------------------------------------------------------------
Net expenses 9,633,149 8,325,198 17,556,295
-------------------------------------------------------------------------------------------------------
Net investment income 37,001,092 31,469,708 54,728,601
-------------------------------------------------------------------------------------------------------
Net realized gain from investments -- -- 83
-------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $37,001,092 $31,469,708 $54,728,684
=======================================================================================================
</TABLE>
See Notes to Financial Statements.
6
<PAGE> 9
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
SIX MONTHS
SEVEN MONTHS ENDED YEAR YEAR
ENDED JUNE 30, ENDED ENDED
JULY 31, 2000 DECEMBER 31, DECEMBER 31,
2000 (UNAUDITED) 1999 1998
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income $ 37,001,092 $ 31,469,708 $ 54,728,601 $ 46,894,254
------------------------------------------------------------------------------------------------------------------------------
Net realized gain from investments -- -- 83 2,781
------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 37,001,092 31,469,708 54,728,684 46,897,035
------------------------------------------------------------------------------------------------------------------------------
Distributions to shareholders from net investment income:
AIM Cash Reserve Shares (27,493,666) (23,284,591) (40,668,074) (18,980,988)
------------------------------------------------------------------------------------------------------------------------------
Class A* -- -- -- (20,797,936)
------------------------------------------------------------------------------------------------------------------------------
Class B (8,335,400) (7,192,863) (12,546,032) (6,486,731)
------------------------------------------------------------------------------------------------------------------------------
Class C (1,172,026) (992,254) (1,514,495) (628,599)
------------------------------------------------------------------------------------------------------------------------------
Share transactions-net:
AIM Cash Reserve Shares (77,443,140) (56,556,220) (189,587,232) 834,944,363
------------------------------------------------------------------------------------------------------------------------------
Class A* -- -- -- (375,997,608)
------------------------------------------------------------------------------------------------------------------------------
Class B (115,577,813) (102,483,790) 94,371,540 194,469,771
------------------------------------------------------------------------------------------------------------------------------
Class C (11,177,934) (10,128,705) 29,244,201 19,103,703
------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets (204,198,887) (169,168,715) (65,971,408) 672,523,010
------------------------------------------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 1,451,025,249 1,451,025,249 1,516,996,657 844,473,647
------------------------------------------------------------------------------------------------------------------------------
End of period $1,246,826,362 $1,281,856,534 $1,451,025,249 $1,516,996,657
==============================================================================================================================
NET ASSETS CONSIST OF:
Shares of beneficial interest $1,246,789,171 $1,281,819,343 $1,450,988,058 $1,516,959,549
------------------------------------------------------------------------------------------------------------------------------
Undistributed net realized gain from investments 37,191 37,191 37,191 37,108
------------------------------------------------------------------------------------------------------------------------------
$1,246,826,362 $1,281,856,534 $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.
NOTES TO FINANCIAL STATEMENTS
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES
AIM Money Market Fund (the "Fund") is a series portfolio of AIM Investment
Securities Funds (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 seven
separate portfolios, each having an unlimited number of shares of beneficial
interest. Prior to June 1, 2000, the Fund was organized as a series portfolio of
AIM Funds Group. At a meeting held on February 3, 2000, the Board of Trustees of
AIM Funds Group approved an Agreement and Plan of Reorganization (the
"Reorganization") which reorganized the Fund as a series portfolio of the Trust.
Shareholders of the Fund approved the Reorganization at a meeting held on May
31, 2000. Pursuant to the Reorganization, the Fund's fiscal year-end was changed
from December 31 to July 31. This report includes financial information for the
period ended July 31, 2000 (seven months), the six months ended June 30, 2000
and the year ended December 31, 1999. Financial information for the six months
ended June 30, 2000 is unaudited. The Fund currently offers three different
classes of shares: Class A shares, Class B shares and Class C shares. Class A
shares are sold with a front-end sales charge. Class B shares and Class C shares
are sold with a contingent deferred sales charge. 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 accounting
principles generally accepted in the United States of
7
<PAGE> 10
America 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 -- As permitted under Rule 2a-7 of the 1940 Act, 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 on the accrual basis from settlement date.
C. Distributions -- It is the policy of the Fund to declare and pay dividends
daily from net investment income. Distributions from net realized capital
gains, if any, are generally paid annually and recorded on ex-dividend date.
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 certain transfer agency expenses
directly attributable to a class of shares are charged to those classes'
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 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 seven-month period ended July 31, 2000,
the six months ended June 30, 2000 and the year ended December 31, 1999, AIM was
paid $83,475, $71,529 and $118,024, respectively, 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 seven-month period ended July 31,
2000, the six months ended June 30, 2000 and the year ended December 31, 1999,
AFS was paid $776,212, $671,889 and $1,341,736, respectively, 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 AIM
Cash Reserve shares, Class B shares and Class C shares of the Fund. The Trust
has adopted plans pursuant to Rule 12b-1 under the 1940 Act with respect to the
Fund's AIM Cash Reserve shares, Class B shares and Class C 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 AIM Cash Reserve shares, Class B shares or Class
C 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 seven-month period ended
July 31, 2000, the AIM Cash Reserve shares, Class B shares and Class C shares
paid AIM Distributors $1,332,550, $1,905,178 and $265,889, respectively, as
compensation under the Plans. For the six months ended June 30, 2000, the AIM
Cash Reserve shares, Class B shares and Class C shares paid AIM Distributors
$1,145,100, $1,669,584 and $229,427, respectively, as compensation under the
Plans. For the year ended December 31, 1999, the AIM Cash Reserves, Class B and
Class C shares paid AIM Distributors $2,443,795, $3,680,653, and $440,903,
respectively, as compensation under the Plans.
During the seven-month period ended July 31, 2000, the six months ended June
30, 2000 and the year ended December 31, 1999, AIM Distributors received
$740,774, $679,919 and $1,254,200, respectively, 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.
During the seven-month period ended July 31, 2000, the six months ended June
30, 2000 and the year ended December 31, 1999, the Fund paid legal fees of
$3,444, $2,668 and $5,825, respectively, for services rendered by Kramer, Levin,
Naftalis & Frankel LLP as counsel to the Trust's trustees. A member of that firm
is a trustee of the Trust.
NOTE 3-INDIRECT EXPENSES
For the seven-month period ended July 31, 2000, the six months ended June 30,
2000 and the year ended December 31, 1999, the Fund received reductions in
transfer agency fees from AFS (an affiliate of AIM) of $8,809, $7,117 and
$15,823, respectively, and reductions in custodian fees of $11,769, $9,807 and
$4,279, respectively, under expense offset arrangements which resulted in a
reduction of the Fund's total expenses of $20,578, $16,924 and $20,102 for the
seven-month period ended July 31, 2000, the six months ended June 30, 2000 and
the year ended December 31, 1999, respectively.
8
<PAGE> 11
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-BANK BORROWINGS
The Fund is a participant in a committed line of credit facility with a
syndicate administered by Citibank, N.A. The Fund may borrow up to the lesser of
(i) $1,000,000,000 or (ii) the limits set by its prospectus for borrowings. The
Fund and other funds advised by AIM which are parties to the line of credit may
borrow on a first come, first served basis. During the seven months ended July
31, 2000, the Fund did not borrow under the line of credit agreement. The funds
which are party to the line of credit are charged a commitment fee of 0.09% on
the unused balance of the committed line. The commitment fee is allocated among
the funds based on their respective average net assets for the period.
NOTE 6-SHARE INFORMATION
Changes in shares outstanding during the seven-month period ended July 31, 2000,
the six months ended June 30, 2000 and the years ended December 31, 1999 and
1998 were as follows:
<TABLE>
<CAPTION>
JUNE 30, 2000
JULY 31, 2000 (UNAUDITED)
-------------------------------- --------------------------------
SHARES AMOUNT SHARES AMOUNT
-------------- --------------- -------------- ---------------
<S> <C> <C> <C> <C>
Sold:
Cash Reserve Shares 3,591,529,412 $ 3,591,529,412 3,119,085,058 $ 3,122,260,400
-----------------------------------------------------------------------------------------------------
Class A* -- -- -- --
-----------------------------------------------------------------------------------------------------
Class B 509,744,331 509,744,331 448,990,264 450,158,250
-----------------------------------------------------------------------------------------------------
Class C 156,197,199 156,197,199 130,393,503 130,551,340
-----------------------------------------------------------------------------------------------------
Issued as reinvestment of
dividends:
Cash Reserve Shares 24,814,673 24,814,673 24,207,616 21,032,274
-----------------------------------------------------------------------------------------------------
Class A* -- -- -- --
-----------------------------------------------------------------------------------------------------
Class B 7,211,243 7,211,243 7,419,659 6,251,673
-----------------------------------------------------------------------------------------------------
Class C 1,019,008 1,019,008 1,022,298 864,461
-----------------------------------------------------------------------------------------------------
Issued in connection with
acquisitions:**
Cash Reserve Shares -- -- -- --
-----------------------------------------------------------------------------------------------------
Class A* -- -- -- --
-----------------------------------------------------------------------------------------------------
Class B -- -- -- --
-----------------------------------------------------------------------------------------------------
Class C -- -- -- --
-----------------------------------------------------------------------------------------------------
Reacquired:
Cash Reserve Shares (3,693,787,225) (3,693,787,225) (3,199,848,894) (3,199,848,894)
-----------------------------------------------------------------------------------------------------
Class A* -- -- -- --
-----------------------------------------------------------------------------------------------------
Class B (632,533,387) (632,533,387) (558,893,713) (558,893,713)
-----------------------------------------------------------------------------------------------------
Class C (168,394,141) (168,394,141) (141,544,506) (141,544,506)
-----------------------------------------------------------------------------------------------------
(204,198,887) $ (204,198,887) (169,168,715) $ (169,168,715)
=====================================================================================================
<CAPTION>
DECEMBER 31, 1999 DECEMBER 31, 1998
-------------------------------- ---------------------------------
SHARES AMOUNT SHARES AMOUNT
-------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C>
Sold:
Cash Reserve Shares 8,060,651,699 $ 8,060,651,699 6,566,275,190 $ 6,566,275,190
------------------------------------------------------------------------------------------------------
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
------------------------------------------------------------------------------------------------------
Issued as reinvestment of
dividends:
Cash Reserve Shares 34,229,027 34,229,027 15,456,154 15,456,154
------------------------------------------------------------------------------------------------------
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
------------------------------------------------------------------------------------------------------
Issued in connection with
acquisitions:**
Cash Reserve Shares -- -- 117,682,745 117,682,745
------------------------------------------------------------------------------------------------------
Class A* -- -- 135,276 135,276
------------------------------------------------------------------------------------------------------
Class B -- -- 72,923,588 72,923,588
------------------------------------------------------------------------------------------------------
Class C -- -- 5,548,897 5,548,897
------------------------------------------------------------------------------------------------------
Reacquired:
Cash Reserve Shares (8,284,467,958) (8,284,467,958) (5,864,469,726) (5,864,469,726)
------------------------------------------------------------------------------------------------------
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)
------------------------------------------------------------------------------------------------------
(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.
9
<PAGE> 12
NOTE 7-FINANCIAL HIGHLIGHTS
The following schedule presents financial highlights for a share of the Fund
outstanding throughout the periods indicated.
<TABLE>
<CAPTION>
CASH RESERVE
-----------------------------------------------------------------------------------------
SIX MONTHS
SEVEN MONTHS ENDED
ENDED JUNE 30, YEAR ENDED DECEMBER 31,
JULY 31, 2000 ----------------------------------------------------------
2000(a) (UNAUDITED) 1999 1998 1997 1996 1995
------------ ----------- -------- ---------- -------- -------- --------
<S> <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
-------------------------------------- -------- -------- -------- ---------- -------- -------- --------
Income from investment operations:
Net investment income 0.0300 0.0252 0.0414 0.0453 0.0456 0.0433 0.0493
-------------------------------------- -------- -------- -------- ---------- -------- -------- --------
Less distributions from net investment
income (0.0300) (0.0252) (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 $ 1.00 $ 1.00
====================================== ======== ======== ======== ========== ======== ======== ========
Total return(b) 3.03% 2.55% 4.22% 4.62% 4.66% 4.41% 5.04%
====================================== ======== ======== ======== ========== ======== ======== ========
Ratios/supplemental data:
Net assets, end of period (000s
omitted) $912,042 $932,932 $989,478 $1,179,072 $344,117 $315,470 $293,450
====================================== ======== ======== ======== ========== ======== ======== ========
Ratio of expenses to average net
assets 1.07%(c) 1.07%(c) 1.04% 0.99% 1.05% 1.08% 1.04%
====================================== ======== ======== ======== ========== ======== ======== ========
Ratio of net investment income to
average net assets 5.15%(c) 5.08%(c) 4.16% 4.53% 4.55% 4.32% 4.92%
====================================== ======== ======== ======== ========== ======== ======== ========
</TABLE>
(a) Calculated using average shares outstanding.
(b) Total returns are not annualized for periods less than one year.
(c) Ratios are annualized and based on average net assets of $915,893,647 and
$921,113,716 for July 31, 2000 and June 30, 2000, respectively.
<TABLE>
<CAPTION>
CLASS B
--------------------------------------------------------------------------------------
SIX MONTHS
SEVEN MONTHS ENDED
ENDED JUNE 30, YEAR ENDED DECEMBER 31,
JULY 31, 2000 --------------------------------------------------------
2000(a) (UNAUDITED) 1999 1998 1997 1996 1995
------------ ----------- -------- -------- -------- -------- --------
<S> <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
----------------------------------------- -------- -------- -------- -------- -------- -------- --------
Income from investment operations:
Net investment income 0.0256 0.0215 0.0339 0.0371 0.0378 0.0360 0.0419
----------------------------------------- -------- -------- -------- -------- -------- -------- --------
Less distributions from net investment
income (0.0256) (0.0215) (0.0339) (0.0371) (0.0378) (0.0360) (0.0419)
----------------------------------------- -------- -------- -------- -------- -------- -------- --------
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========================================= ======== ======== ======== ======== ======== ======== ========
Total return(b) 2.59% 2.17% 3.45% 3.78% 3.84% 3.66% 4.27%
========================================= ======== ======== ======== ======== ======== ======== ========
Ratios/supplemental data:
Net assets, end of period (000s omitted) $289,327 $302,417 $404,911 $310,534 $116,058 $ 91,148 $ 69,857
========================================= ======== ======== ======== ======== ======== ======== ========
Ratio of expenses to average net assets 1.82%(c) 1.82%(c) 1.79% 1.81% 1.80% 1.81% 1.78%
========================================= ======== ======== ======== ======== ======== ======== ========
Ratio of net investment income to average
net assets 4.40%(c) 4.33%(c) 3.41% 3.71% 3.80% 3.60% 4.14%
========================================= ======== ======== ======== ======== ======== ======== ========
</TABLE>
(a) Calculated using average shares outstanding.
(b) Does not deduct contingent deferred sales charges where applicable and is
not annualized for periods less than one year.
(c) Ratios are annualized and based on average net assets of $327,368,646 and
$335,751,488 for July 31, 2000 and June 30, 2000, respectively.
10
<PAGE> 13
NOTE 7-FINANCIAL HIGHLIGHTS-(CONTINUED)
<TABLE>
<CAPTION>
CLASS C
-----------------------------------------------------------------------------
SIX MONTHS
SEVEN MONTHS ENDED YEAR ENDED AUGUST 4, 1997
ENDED JUNE 30, DECEMBER 31, (DATE SALES COMMENCED)
JULY 31, 2000 -------------------- TO DECEMBER 31,
2000(a) (UNAUDITED) 1999 1998 1997
------------ ----------- -------- -------- ----------------------
<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 0.0256 0.0215 0.0339 0.0371 0.0158
-------------------------------------------------- -------- -------- -------- -------- --------
Less distributions from net investment income (0.0256) (0.0215) (0.0339) (0.0371) (0.0158)
-------------------------------------------------- -------- -------- -------- -------- --------
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
================================================== ======== ======== ======== ======== ========
Total return(b) 2.59% 2.17% 3.44% 3.78% 3.92%
================================================== ======== ======== ======== ======== ========
Ratios/supplemental data:
Net assets, end of period (000s omitted) $ 45,457 $ 46,507 $ 56,636 $ 27,391 $ 8,287
================================================== ======== ======== ======== ======== ========
Ratio of expenses to average net assets 1.82%(c) 1.82%(c) 1.79% 1.81% 1.80%(d)
================================================== ======== ======== ======== ======== ========
Ratio of net investment income to average net
assets 4.40%(c) 4.33%(c) 3.41% 3.71% 3.80%(d)
================================================== ======== ======== ======== ======== ========
</TABLE>
(a) Calculated using average shares outstanding.
(b) Does not deduct contingent deferred sales charges where applicable and is
not annualized for periods less than one year.
(c) Ratios are annualized and based on average net assets of $45,687,844 and
$46,137,478 for July 31, 2000 and June 30, 2000, respectively.
(d) Annualized.
--------------------------------------------------------------------------------
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 Investment Securities Funds), including
the schedule of investments, as of July 31, 2000, and the related statement of
operations for the seven months ended July 31, 2000 and the year ended December
31, 1999, the statement of changes in net assets for the seven months ended July
31, 2000 and the two-years ended December 31, 1999, and the financial highlights
for the seven months ended July 31, 2000 and for each of the years in the
five-year period ended December 31, 1999. 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 auditing standards generally
accepted in the United States of America. 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 July 31, 2000, by correspondence with the custodian and
brokers. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial 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 July 31, 2000, the results of its operations for the
seven months ended July 31, 2000 and the year ended December 31, 1999, the
changes in net assets for the seven months ended July 31, 2000 and the two-years
ended December 31, 1999, and the financial highlights for the seven months ended
July 31, 2000 and for each of the years in the five-year period ended December
31, 1999, in conformity with accounting principles generally accepted in the
United States of America.
/s/ KPMG LLP
September 1, 2000
Houston, Texas
11
<PAGE> 14
PROXY RESULTS (UNAUDITED)
A Special Meeting of Shareholders of AIM Money Market Fund, a portfolio of AIM
Funds Group, a Delaware business trust (the "Trust"), reorganized as AIM Money
Market Fund a new series portfolio of AIM Investment Securities Fund, was held
on May 3, 2000. The meeting was held for the following purposes:
(1) To elect Trustees as follows: Charles T. Bauer, Bruce L. Crockett, Owen Daly
II, Edward K. Dunn, Jr., Jack M. Fields, Carl Frischling, Robert H. Graham,
Prema Mathai-Davis, Lewis F. Pennock and Louis S. Sklar.
(2) Adjournment of approval of an Agreement and Plan of Reorganization which
provided for the reorganization of the Fund into a new series portfolio of
AIM Investment Securities Funds having the same investment objective and
policies.
(3) To approve a new Master Investment Advisory Agreement for AIM Money Market
Fund (the "Fund").
(4) To approve changing the fundamental investment restrictions of the Fund.
(5) To approve changing the investment objective of the Fund so that it is
non-fundamental.
(6) To ratify the selection of KPMG LLP as independent accountants of the Fund
for the fiscal year ending in 2000.
The results of the proxy solicitation on the above matters were as follows:
<TABLE>
<CAPTION>
TRUSTEES/MATTER VOTES FOR WITHHELD
--------------- ------------- -----------
<S> <C> <C> <C> <C>
(1) Charles T. Bauer............................................ 1,514,464,534 46,493,668
Bruce L. Crockett........................................... 1,516,486,806 44,471,396
Owen Daly II................................................ 1,515,115,325 45,842,877
Edward K. Dunn, Jr. ........................................ 1,516,300,879 44,657,323
Jack M. Fields.............................................. 1,516,328,985 44,629,217
Carl Frischling............................................. 1,515,733,560 45,224,642
Robert H. Graham............................................ 1,516,470,809 44,487,393
Prema Mathai-Davis.......................................... 1,515,583,756 45,374,446
Lewis F. Pennock............................................ 1,516,458,889 44,499,313
Louis S. Sklar.............................................. 1,516,220,167 44,738,035
</TABLE>
<TABLE>
<CAPTION>
VOTES WITHHELD/
VOTES FOR AGAINST ABSTENTIONS
------------- ---------- -----------
<S> <C> <C> <C> <C>
(2) Adjournment of approval of an Agreement and Plan of
Reorganization which provided for the reorganization of the
Fund into a new series portfolio of AIM Investment
Securities Funds having the same investment objective and
policies.................................................... 624,526,982 16,417,058 193,445,435*
(3) Approval of a new Investment Advisory Agreement............. 626,316,964 13,175,029 194,897,482*
(4)(a) Change to Fundamental Restriction on Issuer
Diversification............................................. 611,909,860 21,068,668 201,410,947*
(4)(b) Change to Fundamental Restriction on Borrowing Money and
Issuing Senior Securities................................... 615,642,253 17,308,297 201,438,925*
(4)(c) Change to or Addition of Fundamental Restriction on
Underwriting Securities..................................... 610,838,229 21,975,114 201,576,132*
(4)(d) Change to or Addition of Fundamental Restriction on Industry
Concentration............................................... 615,933,215 16,791,050 201,665,210*
(4)(e) Change to Fundamental Restriction on Purchasing or Selling
Real Estate................................................. 607,857,815 25,715,670 200,815,990*
(4)(f) Change to Fundamental Restriction on Purchasing or Selling
Commodities and Elimination of Fundamental Restriction on
Puts and Calls.............................................. 611,350,192 21,759,693 201,279,590*
(4)(g) Change to Fundamental Restriction on Making Loans........... 600,278,519 31,751,044 202,359,912*
(4)(h) A new Fundamental Investment Restriction on Investing all of
the Fund's assets in an Open-End
Fund........................................................ 613,233,731 18,673,623 202,482,121*
(4)(i) Elimination of Fundamental Restriction on Margin
Transactions................................................ 600,391,577 30,841,642 203,156,256
(4)(j) Elimination of the Fundamental Restriction on Short Sales of
Securities.................................................. 607,419,757 24,479,567 202,490,151*
(5) Approval of Changing the Investment Objective so that it is
Non-Fundamental............................................. 602,135,602 29,194,523 203,059,350*
(6) Ratification of the selection of KPMG LLP as Independent
Accountants of the Fund..................................... 794,104,476 8,156,747 32,128,252
</TABLE>
The Special Meeting of Shareholders of the Trust was reconvened on May 31,
2000. The following matters were then considered:
<TABLE>
<CAPTION>
VOTES WITHHELD/
MATTER VOTES FOR AGAINST ABSTENTIONS
------ ----------- ---------- -----------
<S> <C> <C> <C> <C>
(2) Approval of an Agreement and Plan of Reorganization which
provides for the reorganization of the Fund into a new
series portfolio of AIM Investment Securities Funds having
the same investment objective and policies.................. 825,385,451 22,485,166 152,959,735*
</TABLE>
---------------
* Includes Broker Non-Votes.
12
<PAGE> 15
<TABLE>
<CAPTION>
BOARD OF TRUSTEES OFFICERS OFFICE OF THE FUND
<S> <C> <C>
Charles T. Bauer Charles T. Bauer 11 Greenway Plaza
Director and 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
Formerly, 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. Melville B. Cox Houston, TX 77210-4739
Chairman, Mercantile Mortgage Corp.; Vice President
Formerly Vice Chairman, President CUSTODIAN
and Chief Operating Officer, Karen Dunn Kelley
Mercantile-Safe Deposit & Trust Co.; and Vice President State Street Bank and Trust Company
President, Mercantile Bankshares 225 Franklin Street
Mary J. Benson Boston, MA 02110
Jack Fields Assistant Vice President and
Chief Executive Officer Assistant Treasurer COUNSEL TO THE FUND
Texana Global, Inc. and
Twenty First Century Group, Inc.; Sheri Morris Ballard Spahr
Formerly Member Assistant Vice President and Andrews & Ingersoll, LLP
of the U.S. House of Representatives Assistant Treasurer 1735 Market Street
Philadelphia, PA 19103
Carl Frischling Renee A. Friedli
Partner Assistant Secretary COUNSEL TO THE TRUSTEES
Kramer, Levin, Naftalis & Frankel LLP
P. Michelle Grace Kramer, Levin, Naftalis & Frankel LLP
Robert H. Graham Assistant Secretary 919 Third Avenue
Director, President and Chief Executive Officer New York, NY 10022
A I M Management Group Inc. Nancy L. Martin
Assistant Secretary DISTRIBUTOR
Prema Mathai-Davis
Formerly, Chief Executive Officer, Ofelia M. Mayo A I M Distributors, Inc.
YWCA of the U.S.A. Assistant Secretary 11 Greenway Plaza
Suite 100
Lewis F. Pennock Lisa A. Moss Houston, TX 77046
Attorney Assistant Secretary
AUDITORS
Louis S. Sklar Kathleen J. Pflueger
Executive Vice President, Assistant Secretary KPMG LLP
Development and Operations, 700 Louisiana
Hines Interests Houston, TX 77002
Limited Partnership
</TABLE>
This report may be distributed only to current
shareholders or to persons who have received a
current prospectus of the fund.
REQUIRED FEDERAL INCOME TAX INFORMATION (UNAUDITED)
AIM Money Market Fund Class B and Class C shares paid ordinary dividends in the
amount of $0.026 per share and AIM Cash Reserve Shares paid $0.030 per share to
shareholders during the Fund's tax year ended July 31, 2000. Of these amounts,
0% is eligible for the dividends received deduction for corporations.
<PAGE> 16
THE AIM FAMILY OF FUNDS--Registered Trademark--
<TABLE>
<S> <C> <C>
EQUITY FUNDS
DOMESTIC EQUITY FUNDS INTERNATIONAL/GLOBAL EQUITY FUNDS A I M Management Group Inc. has provided leadership
in the mutual fund industry since 1976 and managed
MORE AGGRESSIVE MORE AGGRESSIVE approximately $176 billion in assets for more than 8
million shareholders, including individual
AIM Small Cap Opportunities(1) AIM Latin American Growth investors, corporate clients and financial
AIM Mid Cap Opportunities(2) AIM Developing Markets institutions, as of June 30, 2000.
AIM Large Cap Opportunities(6) AIM European Small Company The AIM Family of Funds--Registered Trademark--
AIM Emerging Growth AIM Asian Growth is distributed nationwide, and AIM today is the
AIM Small Cap Growth(3) AIM Japan Growth eighth-largest mutual fund complex in the United
AIM Aggressive Growth AIM International Emerging Growth States in assets under management, according to
AIM Mid Cap Growth AIM European Development Strategic Insight, an independent mutual fund
AIM Small Cap Equity AIM Euroland Growth monitor.
AIM Capital Development AIM Global Aggressive Growth AIM is a subsidiary of AMVESCAP PLC, one of the
AIM Constellation(4) AIM International Equity world's largest independent financial services
AIM Dent Demographic Trends AIM Advisor International Value companies with $389 billion in assets under
AIM Select Growth AIM Global Trends management as of June 30, 2000.
AIM Large Cap Growth AIM Global Growth
AIM Weingarten
AIM Mid Cap Equity MORE CONSERVATIVE
AIM Value II
AIM Charter SECTOR EQUITY FUNDS
AIM Value
AIM Blue Chip MORE AGGRESSIVE
AIM Basic Value
AIM Large Cap Basic Value AIM New Technology
AIM Balanced AIM Global Telecommunications and Technology
AIM Advisor Flex AIM Global Resources
AIM Global Financial Services
MORE CONSERVATIVE AIM Global Health Care
AIM Global Consumer Products and Services
AIM Global Infrastructure
AIM Advisor Real Estate
AIM Global Utilities
[AIM LOGO APPEARS HERE]
MORE CONSERVATIVE --Registered Trademark--
FIXED-INCOME FUNDS INVEST WITH DISCIPLINE
--Registered Trademark--
TAXABLE FIXED-INCOME FUNDS TAX-FREE FIXED-INCOME FUNDS
MORE AGGRESSIVE MORE AGGRESSIVE
AIM Strategic Income AIM High Income Municipal
AIM High Yield II AIM Tax-Exempt Bond of Connecticut
AIM High Yield AIM Municipal Bond
AIM Income AIM Tax-Free Intermediate
AIM Global Income AIM Tax-Exempt Cash
AIM Floating Rate(5)
AIM Intermediate Government MORE CONSERVATIVE
AIM Limited Maturity Treasury
AIM Money Market
MORE CONSERVATIVE
</TABLE>
The AIM Risk Spectrum illustrates equity and fixed-income funds from more
aggressive to more conservative. When assessing the degree of risk, three
factors were considered: the funds' portfolio holdings, volatility patterns over
time and diversification permitted within the fund. Fund rankings are relative
to one another within The AIM Family of Funds--Registered Trademark-- and should
not be compared with other investments. There is no guarantee that any one AIM
fund will be less volatile than any other. (1) AIM Small Cap Opportunities Fund
closed to new investors Nov. 4, 1999. (2) AIM Mid Cap Opportunities Fund closed
to new investors March 21, 2000. (3) AIM Small Cap Growth Fund closed to new
investors Nov. 8, 1999. (4) AIM Constellation Fund's investment strategy
broadened to allow investments across all market capitalizations Dec. 1, 1999.
(5) AIM Floating Rate Fund was restructured to offer multiple share classes
April 3, 2000. Existing shares were converted to Class B shares, and Class C
shares commenced offering. (6) AIM Large Cap Opportunities Fund will close to
new investors Sept. 29, 2000, or when the fund reaches a total net asset value
of $750 million, whichever occurs first.
FOR MORE COMPLETE INFORMATION ABOUT ANY AIM FUND, INCLUDING SALES CHARGES
AND EXPENSES, OBTAIN THE APPROPRIATE PROSPECTUS(ES) FROM YOUR FINANCIAL ADVISOR.
PLEASE READ THE PROSPECTUS(ES) CAREFULLY BEFORE YOU INVEST OR SEND MONEY. This
report is not authorized for distribution to prospective investors unless
preceded or accompanied by a currently effective fund prospectus. If used as
sales material after Oct. 20, 2000, this report must be accompanied by a fund
Performance & Commentary or by an AIM Quarterly Review of Performance for the
most recent quarter end.
[DALBAR LOGO APPEARS HERE]
A I M Distributors, Inc. MKT-AR-1
