<PAGE> 1
[AIM LOGO APPEARS HERE]
(GRAPHIC COLLAGE APPEARS HERE)
AIM TAX-EXEMPT BOND FUND
OF CONNECTICUT
SEMIANNUAL REPORT
SEPTEMBER 30, 1995
<PAGE> 2
- --------------------------------------------------------------------------------
AIM TAX-EXEMPT BOND FUND OF CONNECTICUT
For shareholders who seek to earn a high level of current income that is free
of both federal and Connecticut taxes.
ABOUT FUND PERFORMANCE DATA AND BENCHMARK INDEXES THROUGHOUT THIS REPORT:
o The Fund's performance is historical and reflects reinvestment of all
distributions. Unless otherwise indicated, Fund results were computed
without a sales charge. When sales charges are included, the Fund's
performance reflects the 4.75% maximum sales charge.
o The distribution rate is equal to the actual distributions from investment
income declared for the prior 30-day period, expressed as an annual
percentage of maximum offering price. Distribution rates may include daily
dividends and short-term capital gains.
o The SEC 30-day yield calculation reflects the yield to maturity of the
bonds in the portfolio, and includes both interest and amortization of any
discount or premium to the face value of the bonds.
o The taxable equivalent yield is calculated in the same manner as the 30-day
yield with an adjustment for a stated, assumed tax rate.
o The Fund's investment return and principal value will fluctuate so that an
investor's shares, when redeemed, may be worth more or less than their
original cost.
o Lipper Analytical Services, Inc., is an independent mutual fund performance
monitor. The unmanaged Lipper Connecticut Tax-Exempt Municipal Fund
Category represents an average of the performance of all Connecticut
municipal bond funds tracked by Lipper. The unmanaged Lipper Intermediate
Municipal Fund Index represents an average of the performance of the 30
largest intermediate-term municipal bond funds. The unmanaged Lipper
General Municipal Debt Funds Index is a representative average of the
performance of the 30 largest municipal bond mutual funds.
o An investment cannot be made in the indexes listed. Unless otherwise
indicated, index results include reinvested dividends and do not reflect
sales charges.
================================================================================
AVERAGE ANNUAL TOTAL RETURNS
For periods ended September 30, 1995
<TABLE>
<CAPTION>
Without With
Sales Charge Sales Charge
<S> <C> <C>
Since Inception (10/3/89) 7.79% 6.92%
Five Years 8.54 7.48
One Year 8.29 3.12
6 Months 4.08 -0.83
</TABLE>
Six-month performance includes reinvested distributions of $0.282 per share.
- --------------------------------------------------------------------------------
<PAGE> 3
CHAIRMAN'S LETTER
Dear Shareholder:
AIM Tax-Exempt Bond Fund of Connecticut continues to
provide shareholders with attractive tax-exempt current
[PHOTO of income plus low volatility. As of September 30, 1995,
Charles T. Bauer, your Fund produced a 30-day distribution rate of 4.84%,
Chairman of the based on the maximum offering price, and an SEC 30-day
Board of the Fund, yield of 4.46%. Translated to taxable equivalent yields,
APPEARS HERE] the Fund's 30-day distribution rate was 8.01%, based on
the maximum offering price, and the 30-day SEC yield
was 7.38%, when adjusted for the highest marginal federal
tax rate of 39.6%. For Connecticut residents, the taxable equivalent on the
distribution rate was 8.39%, based on the maximum offering price. The taxable
equivalent of the Fund's SEC 30-day yield was 7.73%, when adjusted for the
combined highest marginal federal and Connecticut state tax rates.
From an investment perspective, your Fund's taxable equivalent yield
compared favorably to yields on such taxable securities as five-year and
10-year U.S. Treasury notes and 30-year U.S. Treasury bonds, which yielded
6.02%, 6.18% and 6.50%, respectively, as of September 30, 1995.
Aided by stabilizing interest rates, your Fund posted a total return of
4.08% for the six-month period ended September 30, 1995. By comparison, the
Lipper Connecticut Tax-Exempt Municipal Fund Category posted a total return of
4.54% for the six months ended September 30, 1995.
The Fund's investment focus on selected quality Connecticut municipal
securities of shorter maturity contributed to its generous 30-day yield even
as relative stability in share price was maintained. By September 30, 1995, net
asset value per share had increased to $10.86, and net assets for the Fund
increased to $39.5 million.
For a more complete discussion of market conditions during the reporting
period, your Fund's investment strategy, and our outlook for the months ahead,
turn to the MANAGEMENT'S DISCUSSION & ANALYSIS which follows on page 2 of this
report.
Overall, the Fund has delivered solid performance for investors. While
producing attractive, tax-exempt current monthly income, the Fund has achieved
a positive total return in every fiscal year but one since its inception in
1989.
We are pleased to send you this semiannual report for AIM Tax-Exempt Bond
Fund of Connecticut. As always, we are ready to respond to your questions or
comments about this report. You may reach us by calling Client Services at 800-
959-4246 during normal business hours. For automated account information 24
hours a day, call the AIM Investor Line toll-free at 800-246-5463.
Respectfully submitted,
/s/ CHARLES T. BAUER
Charles T. Bauer
Chairman
<PAGE> 4
DISCUSSION & ANALYSIS
----------
Intermediate-term
municipal bond
funds marginally
outperformed
longer-term issues
in the third
quarter of 1995.
----------
ECONOMIC AND POLITICAL FACTORS SHAPE MUNICIPAL MARKETS IN 1995
Fixed-income investors enjoyed halcyon days in the second quarter of 1995.
Interest rates were declining, and the economy had slowed decidedly to an
annual growth rate of 1.3%. Even the U.S. dollar had regained its footing
against major world currencies and was climbing from record lows. Inflation,
which had concerned investors and the Federal Reserve Board for more than a
year, seemed to have been effectively curtailed.
Indeed, the Fed was confident enough to lower short-term interest rates in
July, cutting the federal funds rate to 5.75%. Within weeks, however, reports
of unexpected improvement in economic indicators such as employment, retail
sales, and industrial production sent bond markets reeling. Fed Chairman Alan
Greenspan announced the most likely course for the economy is "an upturn in the
growth rate . . . over the rest of this year and a moderate pace of expansion
next year." While the pace of economic growth was certainly moderate and
sustainable, reports of stronger than expected performance diminished the
likelihood that the Fed would cut interest rates again in the near future.
Like the fixed-income market as a whole, municipal securities benefited
from declining interest rates and the absence of threatening inflation. Orange
County, California, which had flagged market performance since November with
its pending bankruptcy, settled with its creditors and was no longer a focus
for investors. The drop in new issue supply continued--The Wall Street Journal
reported in October that new sales of municipal bonds were down about 10% from
last year's new issue pace of $150 billion.
However, the municipal securities market continued to lag the taxable bond
market until the third quarter of 1995. Certain factors which had helped to
support prices of municipal securities in previous months, chiefly declining
interest rates and limited supply, were largely outweighed by the growing
debate over tax reform. Specifically, a number of flat-tax proposals--which
could drastically lower income tax brackets and, in some cases, exempt all
investment income from taxation--deflated municipal markets even though no
formal proposals have been submitted before Congress. Indeed, some analysts
believe any meaningful action to reform tax legislation could be years in the
making.
By the third quarter of 1995, bond markets had stabilized and most analysts
considered the municipal market's reaction to tax reform decidedly overdone.
Investors in the third quarter of 1995 began to take advantage of attractive
values,
- --------------------------------------------------------------------------------
RELATIVE PRICE STABILITY
Net Asset Value
<TABLE>
<S> <C> <C> <C>
10/3/89 $10.00 9/92 $10.66
10.05 10.46
10.15 10.62
10.19 10.65
10.00 10.74
10.08 11.06
9.99 10.88
9.77 10.94
10.01 10.97
10.03 11.08
10.12 11.05
9.86 11.25
9/90 9.77 9/93 11.33
9.93 11.30
10.09 11.19
10.07 11.29
10.15 11.32
10.15 11.05
10.11 10.69
10.25 10.68
10.26 10.73
10.19 10.63
10.26 10.74
10.32 10.72
9/91 10.40 9/94 10.58
10.40 10.40
10.36 10.19
10.52 10.34
10.43 10.52
10.38 10.68
10.31 10.71
10.32 10.67
10.42 10.87
10.55 10.77
10.89 10.79
10.68 10.85
9/95 10.86
</TABLE>
Since its inception on October 3, 1989, AIM Tax-Exempt Bond Fund of
Connecticut has demonstrated favorable price stability through a broad range of
changing market conditions.
Source: Towers Data Systems HYPO(R)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
CURRENT YIELD ADVANTAGE
(as of 9/30/95)
<TABLE>
<S> <C>
5 Year U.S. Treasury Note* 6.02%
10 Year U.S. Treasury Note* 6.18%
30 Year U.S. Treasury Note* 6.50%
Fund's 30-day SEC yield, taxable equivalent** 7.73%
Fund's 30 day distribution rate, taxable equivalent** 8.39%
</TABLE>
*U.S. Treasury notes and bonds are guaranteed as to the timely payment of
principal and interest. Fund shares are not insured and their value will vary
with market conditions. **Assumes the highest marginal federal income tax rate
of 39.6% and the Connecticut tax rate of 4.5%. Source: IRS, 1995.
- --------------------------------------------------------------------------------
See important Fund disclosure on inside front cover.
2
<PAGE> 5
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FINANCIALS
PORTFOLIO COMPOSITION (as of 9/30/95)
TOP 5 BOND HOLDINGS NUMBER OF HOLDINGS: 64
1. Connecticut Development Authority (New England [PIE CHART APPEARS HERE]
Power Co.) 10/15/15
2. Guam Airport Authority (Transportation Infrastruc-
ture) 10/01/96 32% Credit Enhanced
3. Connecticut State Special Tax Obligation 10/01/12 12% AMT
4. Connecticut State Health And Education (Fairfield Duration: 4.4 years
University) 7/01/09 Average Maturity:
5. Connecticut State Higher Education Loan Program 13 years
11/15/10
The portfolio's composition may change and there is no
assurance the fund will continue to hold the same
securities.
- --------------------------------------------------------------------------------
particularly in the intermediate-term maturity sector. As a result,
intermediate-term municipal bond funds marginally outperformed longer-term
issues for the quarter, as measured by the Lipper Intermediate Municipal Fund
Index which returned 2.28% versus 2.26% for the Lipper General Municipal Fund
Index.
YOUR INVESTMENT PORTFOLIO
The Fund was well-positioned to benefit from the favorable shift toward
intermediate-term securities during the reporting period. With 64 total
holdings as of September 30, 1995, the Fund was invested across Connecticut
municipal sectors to minimize volatility. Positions in pre-refunded and insured
bonds were strong performers. Overall, the portfolio comprised 71% revenue
bonds and 29% general obligation bonds. Premium bonds, insured bonds, and
pre-refunded bonds were emphasized to reduce price volatility. Attractive
issues in sectors such as housing, transportation, and health care helped to
enhance yield. Of course, Fund holdings are subject to change as market
conditions warrant.
By the end of the reporting period, the Fund's weighted average
maturity was 13 years, and duration was 4.4 years. In keeping with the Fund's
strategy of investing in quality issues, the portfolio weighting as of
September 30, 1995, comprised approximately 37% in securities rated AAA.
Overall, 89% of the portfolio's holdings were rated A or better.
Credit-enhanced securities--which are backed by insurance, escrowed with U.S.
Treasuries, or letters of credit--comprised 32% of the portfolio.
The Fund maintained an average portfolio quality rating of AA as measured by
Standard & Poor's Corporation (S&P) and Moody's Investors Service (Moody's),
two widely known credit rating agencies. S&P and Moody ratings are historical
and are based on analysis of the credit quality of the individual municipal
securities in the Fund's portfolio.
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
FUNDS IN
PERIOD RATING MUNICIPAL CATEGORIES
<S> <C> <C>
Overall **** NA
5 Years **** 486
3 Years *** 721
</TABLE>
Morningstar's rating system of one (lowest) to five (highest) stars is based on
risk and return ratios for three-, five-, and 10-year periods and considers all
loads, expenses, and fees. ratings compare funds of similar investment
objectives and represent past performance, which is no guarantee of comparable
future results.
- --------------------------------------------------------------------------------
OUTLOOK FOR THE FUTURE
At this juncture, experts are divided on the direction of the economy and
interest rates. Given that leading economic indicators continue to suggest
healthy economic conditions and low inflation, some analysts believe further
reductions in interest rates appear unlikely over the near term. However, The
Wall Street Journal reported recently that Fed Vice Chairman Alan Blinder told
Market News Service "that he favored cutting the target for the federal funds
rate, the level at which banks lend one another money, by a 'sizable' amount,
depending on the outcome of the budget debate in Washington."
Regarding the tax-reform debate, many analysts maintain that any drastic
proposals by Congress that severely diminish the tax advantages of municipal
securities would be strongly challenged by the issuers and investors. In any
event, no formal legislation has been proposed, and any meaningful action in
that direction could be years away.
While there will certainly be a continuing interest by many investors in the
current political climate or the direction of interest rates, AIM Tax-Exempt
Bond Fund of Connecticut believes the key to investing for the long-term is an
ongoing focus on its primary investment philosophy, and that is to generate
optimal current tax-free income with reasonable risk.
See important Fund disclosure on inside front cover.
3
<PAGE> 6
- --------------------------------------------------------------------------------
FINANCIALS
SCHEDULE OF INVESTMENTS
September 30, 1995 (Unaudited)
<TABLE>
<CAPTION>
RATING(a) MARKET
S&P MOODY'S PAR VALUE
<S> <C> <C> <C> <C>
MUNICIPAL OBLIGATIONS-98.55%
EDUCATION-12.09%
Connecticut Health and Education Facilities Authority
(Fairfield University); Series F RB
6.875%, 07/01/09 A Baa1 $1,475,000 $ 1,552,806
- ------------------------------------------------------------------------------------------------
Connecticut Health and Education Facilities Authority
(Quinnipiac College); RB
4.90%, Series D, 07/01/98 BBB- - 400,000 395,732
- ------------------------------------------------------------------------------------------------
7.25%, Series 1989 B, 07/01/99(b)(c) AAA NRR 450,000 502,232
- ------------------------------------------------------------------------------------------------
Connecticut Regional School District No. 5;
Series 1992 GO
6.00%, 03/01/12(d) AAA Aaa 335,000 346,775
- ------------------------------------------------------------------------------------------------
Connecticut Regional School District No. 5
(Towns of Bethany, Orange and Woodbridge); 1992
Issue GO
5.50%, 02/15/07(d) AAA Aaa 500,000 516,615
- ------------------------------------------------------------------------------------------------
Connecticut State Higher Education Supplemental
Loan Authority (Family Education Loan
Program); Series 1990 A RB
7.50%, 11/15/10(e) - A1 1,385,000 1,463,280
================================================================================================
4,777,440
================================================================================================
ELECTRIC-10.75%
Connecticut (State of) (Municipal Electric Co-op Power
Supply); RB
7.00%, 01/01/16(d) AAA Aaa 1,000,000 1,027,440
- ------------------------------------------------------------------------------------------------
Connecticut Development Authority (Connecticut Power &
Light Co.); Series 1993 A PCR
3.80%, 09/01/28(f)(g) A-1+ VMIG-1 1,500,000 1,500,000
- ------------------------------------------------------------------------------------------------
Connecticut Development Authority (New England Power
Co.); Series 1985 Fixed Rate PCR
7.25%, 10/15/15 A+ A1 1,600,000 1,720,240
================================================================================================
4,247,680
================================================================================================
GENERAL OBLIGATION-10.96%
Ansonia (City of), Connecticut; GO
5.50%, 6/15/97 - A 125,000 127,565
- ------------------------------------------------------------------------------------------------
Brooklyn (City of), Connecticut; Unlimited Tax GO
5.50%, 05/01/06(d) AAA Aaa 250,000 257,260
- ------------------------------------------------------------------------------------------------
5.70%, 05/01/08(d) AAA Aaa 250,000 258,775
- ------------------------------------------------------------------------------------------------
Cheshire (Town of), Connecticut; Series 1993 GO
5.25%, 08/15/12 - Aa 200,000 191,568
- ------------------------------------------------------------------------------------------------
Chester (Town of), Connecticut; Series 1989 GO
7.00%, 10/01/05 - A 190,000 205,996
- ------------------------------------------------------------------------------------------------
Connecticut (State of); Series 1991 A, GO
6.75%, 03/01/01(b)(c) NRR NRR 480,000 536,395
- ------------------------------------------------------------------------------------------------
Connecticut (State of) (General Purpose Public
Improvement); GO
6.75%, Series 1991 A, 03/01/01(b)(c) NRR NRR 200,000 223,498
- ------------------------------------------------------------------------------------------------
6.50%, Series 1992 A, 03/15/02(b)(c) NRR NRR 300,000 334,173
- ------------------------------------------------------------------------------------------------
</TABLE>
4
<PAGE> 7
- --------------------------------------------------------------------------------
FINANCIALS
<TABLE>
<CAPTION>
RATING(a) MARKET
S&P MOODY'S PAR VALUE
<S> <C> <C> <C> <C>
GENERAL OBLIGATION-Continued
Mansfield (City of), Connecticut; Series 1990 GO
6.00%, 06/15/07 - A1 $ 100,000 $ 105,945
- ------------------------------------------------------------------------------------------------
6.00%, 06/15/08 - A1 100,000 104,889
- ------------------------------------------------------------------------------------------------
6.00%, 06/15/09 - A1 100,000 105,646
- ------------------------------------------------------------------------------------------------
New Britain (City of), Connecticut; Series 1992
Various Purpose GO
6.00%, 02/01/11(d) AAA Aaa 400,000 418,800
- ------------------------------------------------------------------------------------------------
New Haven (City of), Connecticut; Series 1992 B GO
5.25%, 12/01/95 BBB Baa 300,000 300,594
- ------------------------------------------------------------------------------------------------
North Canaan (City of), Connecticut;
Series 1991 GO
6.50%, 01/15/08 - A 125,000 137,805
- ------------------------------------------------------------------------------------------------
6.50%, 01/15/09 - A 125,000 137,776
- ------------------------------------------------------------------------------------------------
6.50%, 01/15/10 - A 125,000 137,110
- ------------------------------------------------------------------------------------------------
6.50%, 01/15/11 - A 125,000 136,301
- ------------------------------------------------------------------------------------------------
Somers (City of), Connecticut; Series 1990 Various
Purpose GO
6.00%, 12/01/10 - A1 190,000 199,466
- ------------------------------------------------------------------------------------------------
Westbrook (City of), Connecticut; Series 1992 GO
6.40%, 03/15/10(d) AAA Aaa 380,000 413,771
================================================================================================
4,333,333
================================================================================================
HEALTH CARE-12.89%
Connecticut Development Authority, Parking Facility
(Hartford Hospital Realty);
Series 1986 RB
6.875%, 10/01/06(d)(e) AAA Aaa 485,000 524,460
- ------------------------------------------------------------------------------------------------
Connecticut Health and Education Facilities Authority
(Bridgeport Hospital); 1992 Series A RB
6.625%, 07/01/18(d) AAA Aaa 500,000 531,435
- ------------------------------------------------------------------------------------------------
Connecticut Health and Education Facilities Authority
(Capital Asset); Series 1989 B RB
7.00%, 01/01/00(f) BBB+ A2 200,000 215,176
- ------------------------------------------------------------------------------------------------
Connecticut Health and Education Facilities Authority
(Danbury Hospital); 1991 Series E RB
6.50%, 07/01/14(d) AAA Aaa 750,000 789,443
- ------------------------------------------------------------------------------------------------
Connecticut Health and Education Facilities Authority
(Middlesex Hospital); 1992 Series G RB
6.25%, 07/01/12(d) AAA Aaa 1,100,000 1,148,774
- ------------------------------------------------------------------------------------------------
Connecticut Health and Education Facilities Authority
(New Britain Memorial Hospital); Series 1991 A RB
7.75%, 07/01/22 BBB- - 500,000 528,140
- ------------------------------------------------------------------------------------------------
Connecticut Health and Education Facilities Authority
(St. Raphael Hospital); 1993 Series H RB
5.00%, 07/01/05(d) AAA Aaa 500,000 502,640
- ------------------------------------------------------------------------------------------------
Connecticut Health and Education Facilities Authority
(Yale-New Haven Hospital);
Series 1990 F RB
7.10%, 07/01/25(d) AAA Aaa 775,000 855,476
================================================================================================
5,095,544
================================================================================================
</TABLE>
5
<PAGE> 8
- --------------------------------------------------------------------------------
FINANCIALS
<TABLE>
<CAPTION>
RATING(a) MARKET
S&P MOODY'S PAR VALUE
<S> <C> <C> <C> <C>
HOUSING-7.42%
Connecticut Housing Development Authority
(Housing Mortgage Finance Program); RB
7.55%, Series 1990 B-1, 11/15/08 AA Aa $1,160,000 $ 1,245,654
- ------------------------------------------------------------------------------------------------
7.50%, Series 1990 A, 11/15/09(e) AA Aa 115,000 121,055
- ------------------------------------------------------------------------------------------------
7.00%, Series 1991 A-1, 11/15/09 AA Aa 450,000 480,317
- ------------------------------------------------------------------------------------------------
6.55%, Series 1991 C, Sub-Series C-3, 11/15/13 AA Aa 365,000 377,870
- ------------------------------------------------------------------------------------------------
7.125%, Series 1985 F, 11/15/18 AA Aa 195,000 200,793
- ------------------------------------------------------------------------------------------------
Connecticut (State of) (Housing Mortgage Finance
Program);
Series C2 RB
6.70%, 11/15/22(e) AA Aa 500,000 507,090
================================================================================================
2,932,779
================================================================================================
LEASE RENTAL-1.06%
Connecticut (State of) (Middletown Courthouse
Facilities Project);
1991 Issue Lease-Rental Revenue Certificates of
Participation
6.25%, 12/15/10(d) AAA Aaa 400,000 419,808
================================================================================================
RESOURCE RECOVERY-6.46%
Connecticut State Resource Recovery Authority
(American Ref-Fuel Co.-Southeastern Connecticut
Project);
Series 1988 A RB
8.00%, 11/15/15(e) AA- Baa1 500,000 551,595
================================================================================================
Connecticut State Resource Recovery Authority
(Bridgeport Resco Corp.-Ltd. Partners);
1985 Issue RB
8.625%, Project B, 01/01/04 A A 670,000 688,518
- ------------------------------------------------------------------------------------------------
7.625%, Project A, 01/01/09 A A 1,250,000 1,313,250
================================================================================================
2,553,363
================================================================================================
TRANSPORTATION-18.84%
Connecticut State Special Tax Obligation
(Transportation Infrastructure); RB
5.10%, Series 1992 B, 09/01/99 AA- A1 1,000,000 1,032,090
- ------------------------------------------------------------------------------------------------
6.80%, Series A, 06/01/03(b)(c) NRR NRR 1,250,000 1,408,525
- ------------------------------------------------------------------------------------------------
6.25%, Series 1991 B, 10/01/09 AA- A1 1,000,000 1,053,910
- ------------------------------------------------------------------------------------------------
6.50%, Series 1991 B, 10/01/10 AA- A1 530,000 585,353
- ------------------------------------------------------------------------------------------------
Connecticut State Special Tax Obligation
(Transportation Infrastructure Purposes);
Second Lien RB
4.20%, Series 1 1990, 12/01/10(g) A1+ VMIG-1 100,000 100,000
- ------------------------------------------------------------------------------------------------
Connecticut State Special Tax Obligation
(Transportation Infrastructure Sales and Excise
Tax); RB
5.90%, Series 1991 B, 10/01/99 AA- A1 1,000,000 1,061,870
- ------------------------------------------------------------------------------------------------
6.80%, Series 1989 C, 12/01/99(b)(c) AAA NRR 500,000 554,460
- ------------------------------------------------------------------------------------------------
6.50%, Series 1991 B, 10/01/12 AA- A1 1,500,000 1,651,965
================================================================================================
7,448,173
================================================================================================
WATER & SEWER-8.64%
Connecticut Development Authority (Pfizer Inc.);
Series 1982 Refunding PCR
6.55%, 02/15/13 AAA Aaa 250,000 269,925
- ------------------------------------------------------------------------------------------------
</TABLE>
6
<PAGE> 9
- --------------------------------------------------------------------------------
FINANCIALS
<TABLE>
<CAPTION>
RATING(a) MARKET
S&P MOODY'S PAR VALUE
<S> <C> <C> <C> <C>
WATER & SEWER-Continued
Connecticut Development Authority Water Facility
(Bridgeport Hydraulic Co. Project); Series 1990
Refunding RB
7.25%, 06/01/20 A+ - $ 800,000 $ 875,760
- ------------------------------------------------------------------------------------------------
Connecticut State Clean Water Fund; Series 1991
Clean Water RB
7.00%, 01/01/11 AA+ Aa 1,100,000 1,211,309
- ------------------------------------------------------------------------------------------------
Manchester (City of) Connecticut Eighth Utilities Fire
District;
Series 1991 GO
6.75%, 08/15/06 - A1 180,000 202,759
- ------------------------------------------------------------------------------------------------
South Central Connecticut Regional Water
Authority; Eighth Series 1990 A Water System RB
6.60%, 08/01/00(b)(c) NRR NRR 250,000 276,555
- ------------------------------------------------------------------------------------------------
South Central Connecticut Regional Water
Authority; Series 1988 Water System RB
6.80%, 08/01/98(b)(c) NRR NRR 535,000 579,667
================================================================================================
3,415,975
================================================================================================
MISCELLANEOUS-9.44%
Connecticut Development Authority (Economic
Development Projects); 1992 Series Refunding Bonds
6.00%, 11/15/08 AA- Aa 500,000 520,060
- ------------------------------------------------------------------------------------------------
Guam (Government of); Series 1995 A GO
4.90%, 09/01/97 BBB - 500,000 501,510
- ------------------------------------------------------------------------------------------------
5.25%, 09/01/99 BBB - 250,000 250,528
- ------------------------------------------------------------------------------------------------
5.375%, 09/01/00 BBB - 250,000 250,100
- ------------------------------------------------------------------------------------------------
Guam (Government of); Series 1994 A GO
5.50%, 08/15/97 BBB - 500,000 510,065
- ------------------------------------------------------------------------------------------------
Guam Airport Authority; Series 1993 B RB
5.00%, 10/01/96(e) BBB - 1,700,000 1,700,476
================================================================================================
3,732,739
================================================================================================
TOTAL INVESTMENTS-98.55% 38,956,834
================================================================================================
OTHER ASSETS LESS LIABILITIES-1.45% 572,205
================================================================================================
NET ASSETS-100.00% $39,529,039
================================================================================================
</TABLE>
Abbreviations:
GO General Obligation Bonds
NRR Not re-rated
PCR Pollution Control Revenue Bonds
RB Revenue Bonds
Notes to Schedule of Investments:
(a) Ratings assigned by Moody's Investors Service, Inc. ("Moody's") and
Standard & Poor's Corporation ("S&P"). NRR indicates a security that is not
re-rated subsequent to funding of an escrow fund (consisting of U.S.
Treasury obligations); this funding is pursuant to an advance refunding of
the security.
(b) Secured by an escrow fund of U.S. Treasury
obligations.
(c) Subject to an irrevocable call or mandatory put. Market value and maturity
date reflect such call or put.
(d) Secured by bond insurance.
(e) Security subject to alternative minimum tax.
(f) Secured by a letter of credit.
(g) Demand security; payable upon demand by the Fund at specified time
intervals no greater than thirteen months. Interest rate is redetermined
periodically. Rate shown is the rate in effect on September 30, 1995.
See Notes to Financial Statements.
7
<PAGE> 10
- --------------------------------------------------------------------------------
FINANCIALS
STATEMENT OF ASSETS AND LIABILITIES
September 30, 1995
(Unaudited)
<TABLE>
<S> <C>
ASSETS:
Investments, at market value (amortized cost $37,055,049) $ 38,956,834
- -----------------------------------------------------------------------------------------
Cash 47,721
- -----------------------------------------------------------------------------------------
Receivables for:
Capital stock sold 113,426
- -----------------------------------------------------------------------------------------
Interest 730,764
- -----------------------------------------------------------------------------------------
Investment for deferred compensation plan 5,854
- -----------------------------------------------------------------------------------------
Other assets 5,162
- -----------------------------------------------------------------------------------------
Total assets 39,859,761
- -----------------------------------------------------------------------------------------
LIABILITIES:
Payables for:
Capital stock reacquired 209,712
- -----------------------------------------------------------------------------------------
Deferred compensation 5,854
- -----------------------------------------------------------------------------------------
Dividends 65,594
- -----------------------------------------------------------------------------------------
Accrued administrative service fees 3,415
- -----------------------------------------------------------------------------------------
Accrued distribution fees 25,077
- -----------------------------------------------------------------------------------------
Accrued transfer agent fees 1,039
- -----------------------------------------------------------------------------------------
Accrued operating expenses 20,031
- -----------------------------------------------------------------------------------------
Total liabilities 330,722
- -----------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO SHARES OUTSTANDING $ 39,529,039
=========================================================================================
Capital stock, $.001 par value per share:
Authorized 1,000,000,000
- -----------------------------------------------------------------------------------------
Outstanding 3,639,207
=========================================================================================
NET ASSET VALUE AND REDEMPTION PRICE PER SHARE $ 10.86
=========================================================================================
OFFERING PRICE PER SHARE:
(Net asset value of $10.86 divided by 95.25%) $ 11.40
=========================================================================================
</TABLE>
See Notes to Financial Statements.
8
<PAGE> 11
- --------------------------------------------------------------------------------
FINANCIALS
STATEMENT OF OPERATIONS
For the six months ended September 30, 1995
(Unaudited)
<TABLE>
<S> <C>
INVESTMENT INCOME:
Interest income $1,144,546
- ----------------------------------------------------------------------------------------
EXPENSES:
Advisory fees 98,576
- ----------------------------------------------------------------------------------------
Custodian fees 7,485
- ----------------------------------------------------------------------------------------
Transfer agent fees 15,331
- ----------------------------------------------------------------------------------------
Directors' fees 2,431
- ----------------------------------------------------------------------------------------
Distribution fees 49,288
- ----------------------------------------------------------------------------------------
Administrative services fees 24,152
- ----------------------------------------------------------------------------------------
Other 30,740
- ----------------------------------------------------------------------------------------
Total expenses 228,003
- ----------------------------------------------------------------------------------------
Less expenses assumed by advisor (98,576)
- ----------------------------------------------------------------------------------------
Net expenses 129,427
- ----------------------------------------------------------------------------------------
Net investment income 1,015,119
- ----------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENT SECURITIES:
Net realized gain (loss) on sales of investment securities (51,538)
- ----------------------------------------------------------------------------------------
Unrealized appreciation of investment securities 597,014
- ----------------------------------------------------------------------------------------
Net gain on investment securities 545,476
- ----------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $1,560,595
========================================================================================
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
For the six months ended September 30, 1995
and for the year ended March 31, 1995
(Unaudited)
<TABLE>
<CAPTION>
SEPTEMBER 30, MARCH 31,
1995 1995
<S> <C> <C>
OPERATIONS:
Net investment income $ 1,015,119 $ 2,097,384
- ---------------------------------------------------------------------------------------------
Net realized gain (loss) on sales of investment securities (51,538) (127,300)
- ---------------------------------------------------------------------------------------------
Net unrealized appreciation of investment securities 597,014 195,742
- ---------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 1,560,595 2,165,826
- ---------------------------------------------------------------------------------------------
Distributions to shareholders from net investment income (1,025,326) (2,111,073)
- ---------------------------------------------------------------------------------------------
Return of capital -- (19,319)
- ---------------------------------------------------------------------------------------------
Net increase (decrease) from capital stock transactions 705,095 (4,107,391)
- ---------------------------------------------------------------------------------------------
Net increase (decrease) in net assets 1,240,364 (4,071,957)
- ---------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 38,288,675 42,360,632
- ---------------------------------------------------------------------------------------------
End of period $39,529,039 $38,288,675
=============================================================================================
NET ASSETS CONSIST OF:
Capital (par value and additional paid-in) $37,799,732 $37,094,637
- ---------------------------------------------------------------------------------------------
Undistributed net investment income (18,954) (8,747)
- ---------------------------------------------------------------------------------------------
Undistributed net realized gain (loss) on sales of investment
securities (153,524) (101,986)
- ---------------------------------------------------------------------------------------------
Unrealized appreciation of investment securities 1,901,785 1,304,771
- ---------------------------------------------------------------------------------------------
$39,529,039 $38,288,675
=============================================================================================
</TABLE>
See Notes to Financial Statements.
9
<PAGE> 12
- --------------------------------------------------------------------------------
FINANCIALS
NOTES TO FINANCIAL STATEMENTS
September 30, 1995
(Unaudited)
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES
AIM Tax-Exempt Funds, Inc. (the "Company") is registered under the Investment
Company Act of 1940, as amended (the "1940 Act"), as an open-end management
investment company. The Company is organized as a Maryland corporation
consisting of three separate portfolios; AIM Tax-Exempt Bond Fund of
Connecticut, AIM Tax-Exempt Cash Fund and the Intermediate Portfolio. Matters
affecting each portfolio are voted on exclusively by the shareholders of such
portfolio. The assets, liabilities and operations of each portfolio are
accounted for separately. Information presented in these financial statements
pertains only to the AIM Tax-Exempt Bond Fund of Connecticut (the "Fund"). The
following is a summary of the significant accounting policies followed by the
Fund in the preparation of its financial statements.
A. Security Valuations--Portfolio securities are valued based on market
quotations or at fair value determined by a pricing service approved by the
Board of Directors, provided that securities with a demand feature
exercisable within one to seven days are valued at par. Prices provided by
the pricing service represent valuations of the mean between current bid and
asked market prices which may be determined without exclusive reliance on
quoted prices and may reflect appropriate factors such as institution-size
trading in similar groups of securities, yield, quality, coupon rate,
maturity, type of issue, individual trading characteristics and other market
data. Portfolio securities for which prices are not provided by the pricing
service are valued at the mean between the last available bid and asked
prices, unless the Board of Directors or its designees determines that the
mean between the last available bid and asked prices does not accurately
reflect the current market value of the security. 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 Company's
officers in accordance with methods which are specifically authorized by the
Board of Directors. Notwithstanding the above, short-term obligations with
maturities of sixty days or less are valued at amortized cost.
B. Securities Transactions and Investment Income--Securities transactions are
recorded on a trade date basis. Realized gains and losses on sales are
computed on the basis of specific identification of the securities sold.
Interest income, adjusted for amortization of premiums and original issue
discounts, is recorded as earned from settlement date and is recorded on the
accrual 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 capital gains (including net short-term capital gains
and market discounts), 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 gains,
if any) of $67,289, which expires, if not previously utilized, through the
year 2003. The Fund cannot distribute capital gains to shareholders until
the tax loss carryforwards have been utilized. In addition, the Fund intends
to invest in such municipal securities to allow it to qualify to pay to
shareholders "exempt interest dividends," as defined in the Internal Revenue
Code.
10
<PAGE> 13
- --------------------------------------------------------------------------------
FINANCIALS
NOTE 2-ADVISORY FEES AND OTHER TRANSACTIONS WITH AFFILIATES
The Company has entered into a master investment advisory agreement with A I M
Advisors, Inc. ("AIM"). Under the terms of the master investment advisory
agreement, the Fund pays an advisory fee to AIM at the annual rate of 0.50% of
the Fund's average daily net assets. The master investment advisory agreement
requires AIM to reduce its fee or, if necessary, make payments to the extent
required to satisfy any expense limitations imposed by securities laws or
regulations thereunder of any state in which the Fund's shares are qualified
for sale. During the six months ended September 30, 1995, AIM waived advisory
fees of $98,576.
The Fund, pursuant to a master administrative services agreement with AIM, has
agreed to reimburse AIM for certain costs incurred in providing accounting
services to the Fund. During the six months ended September 30, 1995, the Fund
reimbursed AIM $24,152 for such services. A I M Fund Services, Inc. ("AFS") was
paid $9,868 for transfer agency services during the six months ended September
30, 1995.
The Company has entered into a master distribution agreement with A I M
Distributors, Inc. ("AIM Distributors") to serve as the distributor for the
Fund. The Company has also adopted a Plan pursuant to Rule 12b-1 under the 1940
Act (the "Plan") with respect to the Fund, whereby the Fund pays to AIM
Distributors compensation at an annual rate of 0.25% of the Fund's average
daily net assets. The Plan is designed to compensate AIM Distributors for
certain promotional and other sales related costs, and to implement a program
which provides periodic payments to selected dealers and financial institutions
who furnish continuing personal shareholder services to their customers who
purchase and own 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 sales charges, including asset-based sales charges,
that may be paid by the Fund. During the six months ended September 30, 1995,
the Fund paid AIM Distributors $49,288 as compensation under the Plan. Certain
officers and directors of the Company are officers of AIM, AFS and AIM
Distributors.
AIM Distributors received commissions of $21,174 from sales of shares of the
Fund's capital stock during the six months ended September 30, 1995. Such
commissions are not an expense of the Fund. They are deducted from, and are not
included in, the proceeds from sales of capital stock.
During the six months ended September 30, 1995, the Fund paid legal fees of
$1,452 for services rendered by Kramer, Levin, Naftalis, Nessen, Kamin &
Frankel as Counsel to the Board of Directors. A member of that firm is a
director of the Company.
NOTE 3-DIRECTORS' FEES
Directors' fees represent remuneration paid or accrued to each director who is
not an "interested person" of AIM. The Company may invest directors' fees, if
so elected by a director, in mutual fund shares in accordance with a deferred
compensation plan.
NOTE 4-INVESTMENT SECURITIES
The aggregate amount of investment securities (other than short-term
securities) purchased and sold during the six months ended September 30, 1995
was $4,384,159 and $3,098,877, respectively. The amount of unrealized
appreciation (depreciation) of investment securities as of September 30, 1995
is as follows:
<TABLE>
<S> <C>
Aggregate unrealized appreciation of investment securities $1,938,967
- ----------------------------------------------------------------------------------------
Aggregate unrealized (depreciation) of investment securities (37,182)
- ----------------------------------------------------------------------------------------
Net unrealized appreciation of investment securities $1,901,785
========================================================================================
</TABLE>
Investments have the same cost for tax and financial statement purposes.
11
<PAGE> 14
- --------------------------------------------------------------------------------
FINANCIALS
NOTE 5-CAPITAL STOCK
Changes in capital stock outstanding for the six months ended September 30,
1995 and the year ended March 31, 1995 were as follows:
<TABLE>
<CAPTION>
September 30, 1995 March 31, 1995
----------------------- -------------------------
Shares Amount Shares Amount
-------- ----------- ---------- -----------
<S> <C> <C> <C> <C>
Sold 302,082 $ 3,262,525 370,407 $ 3,925,610
- -------------------------------------------------------------------- -------------------------
Issued as reinvestment of dividends 59,360 641,048 129,768 1,372,166
- -------------------------------------------------------------------- -------------------------
Reacquired (295,759) (3,198,478) (889,770) (9,405,167)
- -------------------------------------------------------------------- -------------------------
65,683 $ 705,095 (389,595) $(4,107,391)
==================================================================== =========================
</TABLE>
NOTE 6-FINANCIAL HIGHLIGHTS
Shown below are the condensed financial highlights for a share of the Fund
outstanding during the six months ended September 30, 1995, the year ended
March 31, 1995, the three months ended March 31, 1994, each of the years in the
four-year period ended December 31, 1993, and the period October 3, 1989 (date
operations commenced) through December 31, 1989.
<TABLE>
<CAPTION>
March 31,
September 30, ------------------- December 31,
1995 1995 1994 1993
------- ------- ------- -------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 10.71 $ 10.69 $ 11.29 $ 10.65
- ------------------------------------------ ------- ------- ------- -------
Income from investment operations:
Net investment income 0.27 0.56 0.15 0.60
- ------------------------------------------ ------- ------- ------- -------
Net gains (losses) on securities
(both realized and unrealized) 0.16 0.04 (0.61) 0.65
- ------------------------------------------ ------- ------- ------- -------
Total from investment operations 0.43 0.60 (0.46) 1.25
- ------------------------------------------ ------- ------- ------- -------
Less distributions:
Dividends from net investment income (0.28) (0.57) (0.14) (0.60)
- ------------------------------------------ ------- ------- ------- -------
Distributions from net realized
capital gains -- -- -- (0.01)
- ------------------------------------------ ------- ------- ------- -------
Returns of capital -- (0.01) -- --
- ------------------------------------------ ------- ------- ------- -------
Total distributions (0.28) (0.58) (0.14) (0.61)
- ------------------------------------------ ------- ------- ------- -------
Net asset value, end of period $ 10.86 $ 10.71 $ 10.69 $ 11.29
========================================== ======= ======= ======= ======
Total return(b) 4.08% 5.78% (4.06)% 11.99%
========================================== ======= ======= ======= ======
Net assets, end of period (000s omitted) $39,529 $38,289 $42,361 $46,224
========================================== ======= ======= ======= ======
Ratio of expenses to average net assets(c) 0.66%(d) 0.55% 0.50%(e) 0.34%
========================================== ======= ======= ======= ======
Ratio of net investment income to
average net assets(c) 5.15%(d) 5.37% 5.32%(e) 5.42%
========================================== ======= ======= ======= ======
Portfolio turnover rate 8% 7% 2% 5%
========================================== ======= ======= ======= ======
<CAPTION>
December 31,
------------------------------------------
1992(a) 1991 1990 1989
------- ------- ------- ------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 10.52 $ 10.07 $ 10.19 $10.00
- ------------------------------------------ ------- ------- ------- ------
Income from investment operations:
Net investment income 0.66 0.69 0.67 0.14
- ------------------------------------------ ------- ------- ------- ------
Net gains (losses) on securities
(both realized and unrealized) 0.17 0.50 (0.10) 0.16
- ------------------------------------------ ------- ------- ------- ------
Total from investment operations 0.83 1.19 0.57 0.30
- ------------------------------------------ ------- ------- ------- ------
Less distributions:
Dividends from net investment income (0.66) (0.69) (0.69) (0.11)
- ------------------------------------------ ------- ------- ------- ------
Distributions from net realized
capital gains (0.04) (0.05) -- --
- ------------------------------------------ ------- ------- ------- ------
Returns of capital -- -- -- --
- ------------------------------------------ ------- ------- ------- ------
Total distributions (0.70) (0.74) (0.69) (0.11)
- ------------------------------------------ ------- ------- ------- ------
Net asset value, end of period $ 10.65 $ 10.52 $ 10.07 $10.19
========================================== ======= ======= ======= ======
Total return(b) 8.22% 12.23% 5.88% 3.06%
========================================== ======= ======= ======= ======
Net assets, end of period (000s omitted) $33,110 $27,298 $16,685 $6,556
========================================== ======= ======= ======= ======
Ratio of expenses to average net assets(c) 0.25% 0.25% 0.25% 0.25%(e)
========================================== ======= ======= ======= ======
Ratio of net investment income to
average net assets(c) 6.25% 6.73% 6.82% 6.21%(e)
========================================== ======= ======= ======= ======
Portfolio turnover rate 43% 43% 57% 63%
========================================== ======= ======= ======= ======
</TABLE>
(a) The Fund changed investment advisors on June 30, 1992.
(b) Does not deduct sales charges and for periods less than one year, total
returns are not annualized.
(c) After waiver of advisory fees and expense reimbursements. Ratios of expenses
to average net assets prior to waiver of advisory fees and expense
reimbursements are 1.16% (annualized), 1.13%, 1.23% (annualized), 1.30%,
1.12%, 1.26%, 1.33%, and 1.99% (annualized) for the six months ended
September 30, 1995 and the period 1995-89, respectively. Ratios of net
investment income to average net assets prior to waiver of advisory fees and
expense reimbursements are 4.65% (annualized), 4.79%, 4.59% (annualized),
4.45%, 5.38%, 5.72%, 5.74%, and 4.48% (annualized) for the six months ended
September 30, 1995 and the period 1995-89, respectively.
(d) Ratios are annualized and based on average daily net assets of $39,322,917.
(e) Annualized.
12
<PAGE> 15
DIRECTORS & OFFICERS
<TABLE>
<S> <C> <C>
BOARD OF DIRECTORS OFFICERS OFFICE OF THE FUND
Charles T. Bauer Charles T. Bauer 11 Greenway Plaza
Chairman and Chairman Suite 1919
Chief Executive Officer Houston, TX 77046
A I M Management Group Inc. Robert H. Graham
President
Bruce L. Crockett INVESTMENT ADVISER
Director, President, and John J. Arthur
Chief Executive Officer Senior Vice President A I M Advisors, Inc.
COMSAT Corporation and Treasurer 11 Greenway Plaza
Suite 1919
Owen Daly II Gary T. Crum Houston, TX 77046
Director Senior Vice President
Cortland Trust Inc. TRANSFER AGENT
Carol F. Relihan
Carl Frischling Vice President and A I M Fund Services, Inc.
Partner Secretary P.O. Box 4739
Kramer, Levin, Naftalis, Houston, TX 77210-4739
Nessen, Kamin & Frankel Dana R. Sutton
Vice President CUSTODIAN
Robert H. Graham and Assistant Treasurer
President The Bank of New York
A I M Management Group Inc. Stuart W. Coco 110 Washington Street
Vice President New York, NY 10286
John F. Kroeger
Formerly, Consultant Melville B. Cox COUNSEL TO THE FUND
Wendell & Stockel Vice President
Associates, Inc. Ballard Spahr Andrews & Ingersoll
Karen Dunn Kelley 1735 Market Street
Lewis F. Pennock Vice President Philadelphia, PA 19103
Attorney
P. Michelle Grace COUNSEL TO THE DIRECTORS
Ian W. Robinson Assistant Secretary
Consultant, Former Executive Kramer, Levin, Naftalis, Nessen,
Vice President and Chief Nancy L. Martin Kamin & Frankel
Financial Officer Assistant Secretary 919 Third Avenue
Bell Atlantic Management New York, NY 10022
Services, Inc. Ofelia M. Mayo
Assistant Secretary DISTRIBUTOR
Louis S. Sklar
Executive Vice President Kathleen J. Pflueger A I M Distributors, Inc.
Hines Interests Assistant Secretary 11 Greenway Plaza
Limited Partnership Suite 1919
Samuel D. Sirko Houston, TX 77046
Assistant Secretary
Stephen I. Winer
Assistant Secretary
</TABLE>
IMPORTANT TAX INFORMATION
The state of Connecticut taxes corporations on exempt-interest dividends
received from AIM Tax-Exempt Bond Fund of Connecticut. Investors should
consult their tax advisor regarding their specific situation.
13
<PAGE> 16
A I M Distributors, Inc. ---------------
[AIM LOGO 11 Greenway Plaza, Suite 1919 BULK RATE
APPEARS HERE] Houston, Texas 77046 U.S. POSTAGE
PAID
Houston, TX
Permit No. 2332
---------------
THE AIM FAMILY OF FUNDS(R)
AGGRESSIVE GROWTH
Aggressive Growth Fund*
AIM Constellation Fund
AIM Global Aggressive Growth Fund
GROWTH
AIM Global Growth Fund
AIM Growth Fund
AIM International Equity Fund
AIM Value Fund
AIM Weingarten Fund
GROWTH AND INCOME
AIM Balanced Fund
AIM Charter Fund
INCOME AND GROWTH
AIM Global Utilities Fund
HIGH CURRENT INCOME [FULL PAGE PHOTO OF
AIM High Yield Fund AIM MANAGEMENT GROUP
CURRENT INCOME OFFICE BUILDING]
AIM Global Income Fund
CURRENT TAX FREE INCOME
AIM Municipal Bond Fund
AIM Tax-Exempt Bond Fund of Conn.
AIM Tax-Free Intermediate Shares
CURRENT INCOME AND HIGH DEGREE OF SAFETY
AIM Intermediate Goverment Fund***
HIGH DEGREE OF SAFETY AND CURRENT INCOME
AIM Limited Maturity-Treasury Shares
STABILITY, LIQUIDITY, AND CURRENT INCOME
AIM Money Market Fund
STABILITY, LIQUIDITY, AND CURRENT TAX-FREE INCOME
AIM Tax-Exempt Cash Fund
* AIM Agressive Growth Fund was closed to new investors on July 18, 1995. **On
May 1, 1995, AIM Utilities Fund broadened its investment strategy to permit up
to 80% of its total assets to be invested in foreign securities, and was
renamed AIM Global Utilitities Fund. ***On September 25, 1995, AIM Government
Securities Fund became AIM Intermediate Government Fund. For more complete
information about any AIM Fund(s), including sales charges and expenses, ask
your financial consultant or securities dealer for a free prospectus(es).
Please read the prospectus(es) carefully before you invest or sent money.
