<PAGE> 1
SEMIANNUAL REPORT / SEPTEMBER 30 2000
AIM TAX-EXEMPT CASH FUND
[COVER IMAGE]
[AIM LOGO APPEARS HERE]
--Registered Trademark--
<PAGE> 2
SEMIANNUAL REPORT / CHAIRMAN'S LETTER
Dear Shareholder:
AIM Tax-Exempt Cash Fund continued to provide attractive
[PHOTO OF tax-free income during the six-month period ended September
Charles T. 30, 2000. At the end of the reporting period, the fund
Bauer, posted a seven-day effective yield of 4.42% and a seven-day
Chairman of yield of 4.33%. Translated to its taxable-equivalent yield,
the Board of the fund's seven-day effective yield was 6.49% based on net
THE FUND asset value and adjusted for the highest marginal federal
APPEARS HERE] tax rate of 39.6%. The taxable-equivalent yield is
calculated in the same manner as the standard yield, with an
adjustment for the stated assumed tax rate.
While the latter part of 1999 saw numerous record highs
in markets worldwide, 2000 has thus far proved quite a
different story.
MARKET SHIFTS UNSETTLE INVESTORS
Shaking market confidence were interest-rate hikes by the
Federal Reserve Board (the Fed) and investors' concerns over potential
inflation. The Fed had 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 led to higher prices, especially among longer-term Treasuries (15+ years)
where the buyback was concentrated. Higher prices mean lower yields, which
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.
FUND A BULWARK IN VOLATILE MARKETS
The fund continued to provide steady federally tax-exempt income and safety of
principal in the midst of the difficult market environment. The fund maintained
a weighted average maturity (WAM) in the 28- to 50-day range throughout the
reporting period. At the end of the six months, the WAM stood at 36 days. Total
net assets in the fund stood at $70.6 million at the end of the reporting
period.
The fund maintained its strict adherence to an investment discipline of
purchasing only securities of superior credit quality. Specifically, the fund
invests only in "eligible securities" as defined in Rule 2a-7 under the
Investment Company Act of 1940. "Eligible securities" are securities rated in
one of the two highest categories by two nationally recognized
statistical-rating organizations, or (if unrated) are determined by the fund's
Board of Directors to be of comparable quality to a rated security that meets
such quality standards. An investment in this fund is neither insured nor
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 investing in the
fund.
OUTLOOK
While there are signs that the economy may be slowing to a sustainable growth
level, is it too early to say that the Fed's 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 you can 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.
-------------------------------------
COVER ART:
SUMMER SOLSTICE III
BY ALLISON WATSON
-------------------------------------
AIM TAX-EXEMPT CASH FUND
<PAGE> 3
SCHEDULE OF INVESTMENTS
September 30, 2000
(Unaudited)
<TABLE>
<CAPTION>
RATING(a) PAR MARKET
S&P MOODY'S (000) VALUE
<S> <C> <C> <C> <C>
SHORT-TERM MUNICIPAL
OBLIGATIONS-84.20%
ALABAMA-2.42%
Alabama Industrial
Development Board
(Industrial Partners
Project);
Refunding VRD Series
1989 RB (LOC-Suntrust
Bank)
5.85%, 01/01/07(b) -- Aa3 $1,405 $ 1,405,000
-----------------------------------------------------------------
Baldwin (County of) Board
of Education;
Refunding Warrant
Certificates Series 1996
B
5.00%, 02/01/01(c) AAA Aaa 300 300,721
=================================================================
1,705,721
=================================================================
ALASKA-0.36%
Anchorage (City of);
Refunding Unlimited Tax
Series 1993 A GO
5.38%, 02/01/01(c) AAA Aaa 250 250,659
=================================================================
ARKANSAS-1.84%
Arkansas (University of)
(University of Arkansas
for Medical Sciences
Campus);
Refunding VRD Series
1998 RB
5.55%, 12/01/19(b)(c) -- VMIG-1 1,300 1,300,000
=================================================================
COLORADO-0.99%
Larimer (County of) Sales
and Use Tax;
Series 2000 RB
5.50%, 12/15/00(c) AAA Aaa 700 701,498
=================================================================
CONNECTICUT-0.78%
Connecticut (State of)
Development Authority
(Weekly-Corp Independent
Living Project);
Health Care VRD Series
1990 RB (LOC-Chase
Manhattan Bank)
5.40%, 07/01/15(b) -- VMIG-1 50 50,000
-----------------------------------------------------------------
Connecticut (State of)
Resource Recovery
Authority;
Series 1993 A RB
5.75%, 11/15/00 AA -- 500 500,808
=================================================================
550,808
=================================================================
DELAWARE-4.48%
Delaware (University of);
VRD Series 1998 RB
5.60%, 11/01/23(b) A-1+ -- 3,161 3,161,000
=================================================================
</TABLE>
<TABLE>
<CAPTION>
RATING(a) PAR MARKET
S&P MOODY'S (000) VALUE
<S> <C> <C> <C> <C>
FLORIDA-8.12%
Capital Trust Agency;
Multifamily Housing VRD
Series 1999 B RB
5.67%, 12/01/32(b)(c) A-1+ -- $5,732 $ 5,732,000
=================================================================
GEORGIA-4.60%
Dekalb Private Hospital
Authority (Egleston
Children's Hospital at
Emory University);
Revenue Anticipation
Certificates VRD Series
1994 A (LOC-Suntrust
Bank)
5.45%, 03/01/24(b) A-1+ VMIG-1 2,546 2,546,000
-----------------------------------------------------------------
Georgia (State of);
Unlimited Tax Series
1993 F GO
6.00%, 12/01/00 AAA Aaa 550 551,502
-----------------------------------------------------------------
Paulding (County of)
School District;
Unlimited Tax Series
1995 GO
4.80%, 02/01/01(c) AAA Aaa 150 150,091
=================================================================
3,247,593
=================================================================
ILLINOIS-9.34%
Cook (County of) School
District #99 (Cicero);
Unlimited Tax Series
1995 B GO
5.20%, 12/1/00(c) AAA Aaa 200 200,094
-----------------------------------------------------------------
Cook (County of) School
District #151 (South
Holland);
Unlimited Tax Series
1995 GO
5.75%, 12/1/00(c) AAA Aaa 200 200,449
-----------------------------------------------------------------
Illinois Development
Finance Authority
(American College of
Surgeons Project);
VRD Series 1996 RB
(LOC-Northern Trust Co.)
5.60%, 08/01/26(b) A-1+ -- 3,826 3,826,000
-----------------------------------------------------------------
Illinois Health Facilities
Authority (Franciscan
Eldercare Project);
Refunding VRD Series
1996 C RB (LOC-Lasalle
National Bank)
5.50%, 05/15/26(b) A-1+ -- 1,420 1,420,000
-----------------------------------------------------------------
Illinois Health Facilities
Authority;
Revolving Fund Pooled
VRD Series 1985 D RB
(LOC-Bank One Illinois
NA)
5.50%, 08/01/15(b) A-1 VMIG-1 850 850,000
-----------------------------------------------------------------
</TABLE>
<PAGE> 4
<TABLE>
<CAPTION>
RATING(a) PAR MARKET
S&P MOODY'S (000) VALUE
<S> <C> <C> <C> <C>
ILLINOIS-(CONTINUED)
Illinois (State of);
Refunding Unlimited Tax
Series 1993 GO
4.90%, 06/01/01 AA Aa2 $ 100 $ 100,000
=================================================================
6,596,543
=================================================================
INDIANA-4.67%
Indiana Health Facilities
Authority (Community
Mental Health &
Rehabilitation);
VRD Series 1990 RB
(LOC-Lasalle National
Bank)
5.50%, 11/01/20(b) A-1+ -- 3,300 3,300,000
=================================================================
IOWA-2.27%
Iowa School Corporations
(Iowa School Cash
Anticipation Program);
Warrant Certificates
Series 2000
4.75%, 02/01/01(c) SP-1+ MIG-1 1,600 1,603,584
=================================================================
KANSAS-1.11%
Shawnee (City of);
Internal Improvement
Unlimited Tax Series
2000 A GO
5.00%, 12/01/00 -- Aa3 785 785,871
=================================================================
KENTUCKY-0.43%
Jefferson (County of)
School District Finance
Corporation;
School Building Series
2000 A RB
5.13%, 07/01/01 AA- Aa3 300 301,532
=================================================================
LOUISIANA-0.34%
Louisiana Public
Facilities Authority;
Special Insurance
Assessment Series 1993
RB
4.40%, 10/01/00(c)(d) AAA Aaa 240 240,000
=================================================================
MARYLAND-3.54%
Baltimore (County of)
Economic Development
(Blue Circle Inc.
Project);
VRD Series 1992 RB
(LOC-Den Danske Bank
A/S)
5.60%, 12/01/17(b) -- VMIG-1 2,500 2,500,000
=================================================================
MASSACHUSETTS-0.85%
Massachusetts Bay
Transportation
Authority;
General Transportation
Systems Refunding Series
1994 A RB
5.00%, 03/01/01 AA Aa2 600 601,909
=================================================================
MICHIGAN-1.56%
Michigan (State of)
Environmental Protection
Program;
Unlimited Tax Series
1998 GO
4.75%, 11/01/00 AAA Aaa 500 500,172
-----------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
RATING(a) PAR MARKET
S&P MOODY'S (000) VALUE
<S> <C> <C> <C> <C>
MICHIGAN-(CONTINUED)
Michigan (State of)
Strategic Fund
(Consumers Power Co.
Project);
Refunding Limited
Obligation VRD Series
1993 A RB
5.60%, 06/15/10(b) A-1 VMIG-1 $ 500 $ 500,000
-----------------------------------------------------------------
Plymouth (Township of)
Economic Development
Corp. (Key International
Manufacturing Inc.
Project);
VRD Series 1984 RB
(LOC-Bank One N.A.)
4.40%, 07/01/04(b)(f) -- -- 100 100,000
=================================================================
1,100,172
=================================================================
MISSOURI-1.91%
Missouri (State of) Health
and Educational
Facilities Authority
(Cox Health Systems);
Refunding VRD Series
1997 RB
5.50%, 6/01/15(b) A-1+ VMIG-1 600 600,000
-----------------------------------------------------------------
Missouri (State of) Health
and Educational
Facilities Authority
(Washington University);
Series 2000 D RB
4.35%, 12/15/00 AA+ Aa1 250 250,000
-----------------------------------------------------------------
Missouri (State of) Health
and Educational
Facilities Authority
(Washington University);
Series 2000 D RB
4.45%, 06/15/01 AA+ Aa1 250 250,000
-----------------------------------------------------------------
Sikeston (City of)
Electric;
Refunding Series 1992 RB
5.70%, 06/01/01(c) AAA Aaa 250 251,839
=================================================================
1,351,839
=================================================================
MONTANA-0.85%
Missoula (County of)
(Washington Corp.
Project);
Floating Rate Monthly
Demand Series 1984 IDR
(LOC-Bank of Montreal)
4.41%, 11/01/04(b) -- VMIG-1 600 600,000
=================================================================
NEW HAMPSHIRE-1.98%
New Hampshire Higher
Education and Health
Facilities Authority
(VHA New England Inc.);
VRD Series 1985 C RB
5.70%, 12/01/25(b)(c) A-1+ -- 1,400 1,400,000
=================================================================
NEW JERSEY-1.77%
Morris (Township of);
Refunding Unlimited Tax
Series 1991 GO
6.10%, 11/01/00 AA Aa1 250 250,256
-----------------------------------------------------------------
</TABLE>
2
<PAGE> 5
<TABLE>
<CAPTION>
RATING(a) PAR MARKET
S&P MOODY'S (000) VALUE
<S> <C> <C> <C> <C>
NEW JERSEY-(CONTINUED)
New Jersey (State of)
Transportation
Authority;
Transportation Systems
Series 1996 A RB
4.50%, 12/15/00(c) AAA Aaa $1,000 $ 1,000,557
=================================================================
1,250,813
=================================================================
NEW YORK-2.87%
Eagle Tax Exempt Trust;
Class A Series 943802
COP
5.62%, 05/01/07(b)(c)(e) A-1+C -- 1,295 1,295,000
-----------------------------------------------------------------
Port Chester Union Free
School District;
Unlimited Tax Series
2000 GO
5.13%, 06/15/01(c) -- Aaa 730 733,076
=================================================================
2,028,076
=================================================================
OHIO-0.43%
Delaware (County of)
(Radiation Sterilizers,
Inc.);
VRD Series 1984 IDR
(LOC-Comerica Bank)
4.50%, 12/01/04(b) A-1 -- 300 300,000
=================================================================
OKLAHOMA-0.28%
Woodward (City of)
Municipal Authority;
Refunding Series 1993 RB
4.90%, 11/01/00(c) AAA Aaa 200 200,067
=================================================================
PENNSYLVANIA-2.84%
Norristown (City of);
Unlimited Tax Series
1990 GO
7.05%, 11/15/00(c) AAA Aaa 1,000 1,003,287
-----------------------------------------------------------------
Philadelphia (City of) Gas
Works;
First Series 1998 A RB
4.75%, 07/01/01(c) AAA Aaa 1,000 1,003,211
=================================================================
2,006,498
=================================================================
TENNESSEE-1.62%
Nashville and Davidson
(Counties of) (Amberwood
Ltd. Project);
Metro Government
Multifamily Housing
Refunding VRD Series
1993 A IDR
(LOC-Commerzbank AG)
5.82%, 07/01/13(b) A-1+ P-1 1,140 1,140,000
=================================================================
TEXAS-12.48%
Anderson (County of)
(Coffield Prison Farm
Project);
Refunding Series 1992 RB
5.40%, 03/15/01(c)(d) AAA Aaa 250 250,919
-----------------------------------------------------------------
Bexar (County of) Housing
Finance Authority
(Fountainhead
Apartments);
Multifamily Refunding
VRD Series 1996 RB
5.55%, 09/15/26(b) A-1+ -- 4,781 4,781,330
-----------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
RATING(a) PAR MARKET
S&P MOODY'S (000) VALUE
<S> <C> <C> <C> <C>
TEXAS-(CONTINUED)
Central Texas College
District (Combined Use
Fee);
Series 1993 RB
4.80%, 05/15/01(c) AAA Aaa $ 370 $ 371,097
-----------------------------------------------------------------
Harris (County of);
Tax Anticipation Notes
Series 2000
4.75%, 02/28/01 SP-1+ MIG-1 2,000 2,004,076
-----------------------------------------------------------------
Trinity River Industrial
Development Authority
(Radiation Sterilizers,
Inc.);
VRD Series 1985 A IDR
(LOC-Comerica Bank)
4.50%, 11/01/05(b) A-1 -- 1,400 1,400,000
=================================================================
8,807,422
=================================================================
UTAH-2.69%
Salt Lake (County of)
Housing Authority (Santa
Fe Apartments Project);
Multifamily Housing
Refunding VRD Series
1992 RB (LOC-Dresdner
Bank AG)
5.55%, 07/01/22(b) -- VMIG-1 1,900 1,900,000
=================================================================
VIRGINIA-2.13%
Norfolk (City of)
Industrial Development
Authority (Sentara
Health System);
Commercial Paper Notes
4.10%, 10/17/00 A-1+ P-1 1,500 1,500,000
=================================================================
WASHINGTON-3.33%
Industrial Development
Corp. of Port Townsend
(Port Townsend Paper
Corp.)
VRD Series 1988 A RB
(LOC-ABN AMRO Bank NV)
5.65%, 03/01/09(b) -- VMIG-1 500 500,000
-----------------------------------------------------------------
Tacoma (City of)
Metropolitan Park
District;
Refunding Unlimited Tax
Series 1999 GO
4.50%, 12/01/00(c) AAA Aaa 1,850 1,850,714
=================================================================
2,350,714
=================================================================
WEST VIRGINIA-0.68%
Jefferson (County of)
Board of Education;
Refunding Unlimited
Public School Tax Series
2000 GO
4.75%, 07/01/01 AA- -- 480 480,859
=================================================================
WISCONSIN-0.64%
Grande Chute (City of);
Promissory Notes
Unlimited Tax Series
2000 GO
4.55%, 06/01/01(c) -- Aaa 350 350,000
-----------------------------------------------------------------
</TABLE>
3
<PAGE> 6
<TABLE>
<CAPTION>
RATING(a) PAR MARKET
S&P MOODY'S (000) VALUE
<S> <C> <C> <C> <C>
WISCONSIN-(CONTINUED)
Lakeshore Technical
College District;
Promissory Notes
Unlimited Tax Series
2000 GO
5.30%, 03/01/01 AA Aa2 $ 100 $ 100,336
=================================================================
450,336
=================================================================
Total Short-Term
Municipal
Obligations (Cost
$59,445,514) 59,445,514
=================================================================
MASTER NOTE
AGREEMENTS(g)-3.97%
BROKER/DEALER-3.97%
Merrill Lynch Mortgage
Capital, Inc.
6.94%, 08/20/01 (Cost
$2,800,000)(h) 2,800 2,800,000
=================================================================
MEDIUM TERM NOTES(g)-3.97%
Bear Stearns & Co., Inc.
6.94%, 11/14/00 (Cost
$2,800,000) 2,800 2,800,000
=================================================================
</TABLE>
<TABLE>
<CAPTION>
RATING(a) PAR MARKET
S&P MOODY'S (000) VALUE
<S> <C> <C> <C> <C>
REPURCHASE
AGREEMENTS(g)(i)-7.17%
BNP Capital Markets, LLC
6.68%, 10/02/00(j) $2,531 $ 2,531,268
-----------------------------------------------------------------
UBS Warburg
6.50%, 10/02/00(k) 2,531 2,531,268
=================================================================
Total Repurchase
Agreements (Cost
$5,062,536) 5,062,536
=================================================================
TOTAL INVESTMENTS-99.31%
(Cost $70,108,050)(l) 70,108,050
=================================================================
OTHER ASSETS LESS
LIABILITIES-0.69% 489,060
=================================================================
NET ASSETS-100.00% $70,597,110
_________________________________________________________________
=================================================================
</TABLE>
Abbreviations:
COP - Certificates of Participation
GO - General Obligation Bonds
IDR - Industrial Development Revenue Bonds
LOC - Letter of Credit
RB - Revenue Bonds
VRD - Variable Rate Demand
Notes to Schedule of Investments:
(a)Ratings assigned by Standard & Poor's Corporation ("S&P") and Moody's
Investors Service, Inc. ("Moody's").
(b)Demand security; payable upon demand by the Fund at specified time intervals
no greater than thirteen months. Interest rates are redetermined
periodically. Rate shown is the rate in effect on 09/30/00.
(c)Secured by bond insurance provided by one of the following companies: Ambac
Assurance Corp., Financial Guaranty Insurance Co., Financial Security
Assurance, or MBIA Insurance Co.
(d)Secured by an escrow fund of U.S. Treasury Obligations.
(e)The Fund may invest in synthetic municipal instruments the value of and
return on which are derived from underlying securities. The types of
synthetic municipal instruments in which the Fund may invest include variable
rate instruments. These instruments involve the deposit into a trust of one
or more long-term tax-exempt bonds or notes ("Underlying Bonds"), and the
sale of certificates evidencing interests in the trust to investors such as
the Fund. The trustee receives the long-term fixed rate interest payments on
the Underlying Bonds, and pays certificate holders short-term floating or
variable interest rates which are reset periodically. A "variable rate trust
certificate" evidences an interest in a trust entitling the certificate
holder to receive variable rate interest based on prevailing short-term
interest rates and also typically provides the certificate holder with the
conditional right to put its certificate at par value plus accrued interest.
Because synthetic municipal instruments involve a trust and a third party
conditional put feature, they involve complexities and potential risks that
may not be present where a municipal security is owned directly.
(f)Unrated; determined by the investment advisor to be of comparable quality to
the rated securities in which the Fund may invest, pursuant to guidelines for
the determination of quality adopted by the Board of Trustees and followed by
the investment advisor.
(g)Interest does not qualify as exempt interest for federal tax purposes.
(h)The Fund may demand prepayment of notes purchased under the Master Note
Purchase Agreement upon one business days' notice. Interest rates on master
notes are redetermined periodically. Rate shown is the rate in effect on
09/30/00.
(i)Collateral on repurchase agreements, including the Fund's pro-rata interest
in joint repurchase agreements, is taken into possession by the Fund upon
entering into the repurchase agreement. The collateral is marked to market
daily to ensure its market as being 102% of the sales price of the repurchase
agreement. The investments in some repurchase agreements are through
participation in joint accounts with other mutual funds, private accounts,
and certain non-registered investment companies managed by the investment
advisor or its affiliates.
(j)Joint repurchase agreement entered into 09/30/00 with a maturing value of
$1,000,556,667. Collateralized by $1,054,329,000 U.S. Government obligations,
0% to 7.38% due 10/06/00 to 05/15/30 with an aggregate market value at
09/30/00 of $1,020,000,128.
(k)Joint repurchase agreement entered into 09/30/00 with a maturing value of
$200,111,333. Collateralized by $235,805,555 U.S. Government obligations, 0%
to 8.50% due 01/01/10 to 07/01/29 with an aggregate market value at 09/30/00
of $204,000,846.
(l)Also represents cost for federal income tax purposes.
See Notes to Financial Statements.
4
<PAGE> 7
STATEMENT OF ASSETS AND LIABILITIES
September 30, 2000
(Unaudited)
<TABLE>
<S> <C>
ASSETS:
Investments, at value (amortized cost) $70,108,050
------------------------------------------------------------
Receivables for:
Fund shares sold 396,273
------------------------------------------------------------
Interest 454,221
------------------------------------------------------------
Investment for deferred compensation plan 34,056
------------------------------------------------------------
Other assets 504
============================================================
Total assets 70,993,104
============================================================
LIABILITIES:
Payables for:
Investments purchased 100,468
------------------------------------------------------------
Fund shares reacquired 207,805
------------------------------------------------------------
Dividends 5,384
------------------------------------------------------------
Deferred compensation plan 34,056
------------------------------------------------------------
Accrued advisory fees 17,826
------------------------------------------------------------
Accrued administrative services fees 4,110
------------------------------------------------------------
Accrued distribution fees 15,064
------------------------------------------------------------
Accrued trustees' fees 1,046
------------------------------------------------------------
Accrued transfer agent fees 8,914
------------------------------------------------------------
Accrued operating expenses 1,321
============================================================
Total liabilities 395,994
============================================================
Net assets applicable to shares outstanding $70,597,110
____________________________________________________________
============================================================
SHARES OUTSTANDING, $0.001 PAR VALUE PER SHARE:
Outstanding 70,586,229
____________________________________________________________
============================================================
Net asset value, offering and redemption
price per share $ 1.00
____________________________________________________________
============================================================
</TABLE>
STATEMENT OF OPERATIONS
For the six months ended September 30, 2000
(Unaudited)
<TABLE>
<S> <C>
INVESTMENT INCOME:
Interest Income $1,378,471
============================================================
EXPENSES:
Advisory fees 104,720
------------------------------------------------------------
Administrative services fees 25,304
------------------------------------------------------------
Custodian fees 2,635
------------------------------------------------------------
Distribution fees 74,867
------------------------------------------------------------
Transfer agent fees 26,892
------------------------------------------------------------
Trustee's fees 3,204
------------------------------------------------------------
Registration and filing fees 21,070
------------------------------------------------------------
Other 11,104
============================================================
Total expenses 269,796
============================================================
Less: Fees waived (44,920)
------------------------------------------------------------
Expenses paid indirectly (411)
============================================================
Net expenses 224,465
============================================================
Net investment income 1,154,006
============================================================
REALIZED GAIN ON INVESTMENT SECURITIES
Net realized gain from investment securities 9,459
============================================================
Net increase in net assets resulting from
operations $1,163,465
____________________________________________________________
============================================================
</TABLE>
See Notes to Financial Statements.
5
<PAGE> 8
STATEMENT OF CHANGES IN NET ASSETS
For the six months ended September 30, 2000 and the year ended March 31, 2000
(Unaudited)
<TABLE>
<CAPTION>
SEPTEMBER 30, MARCH 31,
2000 2000
------------- -----------
<S> <C> <C>
OPERATIONS:
Net investment income $ 1,154,006 $ 1,702,707
------------------------------------------------------------------------------------------
Net realized gain from investment securities 9,459 --
==========================================================================================
Net increase in net assets resulting from operations 1,163,465 1,702,707
==========================================================================================
Distributions to shareholders from net investment income (1,152,846) (1,730,612)
------------------------------------------------------------------------------------------
Share transactions-net increase (decrease) 10,146,252 (690,854)
==========================================================================================
Net increase (decrease) in net assets 10,156,871 (718,759)
==========================================================================================
NET ASSETS:
Beginning of period 60,440,239 61,158,998
==========================================================================================
End of period $70,597,110 $60,440,239
__________________________________________________________________________________________
==========================================================================================
NET ASSETS CONSIST OF:
Shares of beneficial interest $70,567,743 $60,421,491
------------------------------------------------------------------------------------------
Undistributed net investment income 24,478 23,318
------------------------------------------------------------------------------------------
Undistributed net realized gain (loss) from investment
securities 4,889 (4,570)
==========================================================================================
$70,597,110 $60,440,239
__________________________________________________________________________________________
==========================================================================================
</TABLE>
See Notes to Financial Statements.
6
<PAGE> 9
NOTES TO FINANCIAL STATEMENTS
September 30, 2000
(Unaudited)
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES
AIM Tax-Exempt Cash Fund (the "Fund") is a series portfolio of AIM Tax-Exempt
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 four 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 Tax-Exempt Funds,
Inc. At a meeting held on February 3, 2000, the Board of Directors of AIM
Tax-Exempt Funds, Inc. 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. Matters affecting each portfolio will be 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 Fund. The Fund's investment objective is to earn
the highest level of current income with the preservation of capital and
liquidity.
The preparation of financial statements in conformity with accounting
principles generally accepted in the United States of 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 -- The Fund's securities are valued on the basis of
amortized cost which approximates market value as permitted under Rule 2a-7
of the 1940 Act. 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.
Discounts other than original issue, are amortized to unrealized
appreciation for financial reporting purposes.
C. Distributions -- It is the policy of the Fund to declare dividends from net
investment income daily and pay monthly. 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.
The Fund has a capital loss carryforward of $4,570 which may be carried
forward to offset future taxable gains, if any, which expires in varying
increments, if not previously utilized, in the year 2004.
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 the annual rate of 0.35% of the Fund's
average daily net assets.
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 six months ended September 30, 2000,
AIM was paid $25,304 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 six months ended September 30, 2000,
AFS was paid $16,907 for such services.
The Trust has entered into a master distribution agreement with A I M
Distributors, Inc. ("AIM Distributors") to serve as the distributor for the
Fund. The Trust has adopted a plan pursuant to Rule 12b-1 under the 1940 Act
(the "Plan") with respect to the Fund whereby the Fund will pay AIM Distributors
compensation up to a maximum annual rate of 0.25% of the Fund's average daily
net assets for services related to the sale and distribution of the Fund's
shares. Of this amount, the Fund may pay a service fee of 0.25% of the average
daily net assets of the Fund to selected dealers and financial institutions who
furnish continuing personal shareholder services to their customers who purchase
and own the shares of the Fund. Any amounts not paid as a service fee under the
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. Currently, AIM Distributors has agreed to waive a portion of its
compensation payable by the Fund such that compensation paid pursuant to the
Plan equals 0.10% of the Fund's average daily net assets. For the six months
ended September 30, 2000, the Fund paid AIM Distributors $29,947 as compensation
under the Plan. For the six months ended September 30, 2000, AIM Distributors
waived fees of $44,920.
Certain officers and trustees of the Trust are officers and directors of
AIM, AFS and AIM Distributors.
During the six months ended September 30, 2000, the Fund paid legal fees of
$2,672 for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel
to the Trustees. A member of that firm is a trustee of the Trust.
7
<PAGE> 10
NOTE 3-INDIRECT EXPENSES
For the six months ended September 30, 2000, the Fund received reductions in
transfer agency fees from AFS (an affiliate of AIM) of $411 under an expense
offset arrangement which resulted in a reduction of the Fund's total expenses of
$411.
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 six months ended
September 30, 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 six months ended September 30, 2000 and
the year ended March 31, 2000 were as follows:
<TABLE>
<CAPTION>
SEPTEMBER 30, 2000 MARCH 31, 2000
--------------------------- -----------------------------
SHARES AMOUNT SHARES AMOUNT
----------- ------------ ------------ -------------
<S> <C> <C> <C> <C>
Sold 50,089,632 $ 50,089,632 365,487,367 $ 365,487,367
--------------------------------------------------------------------------------------------------------------------------
Issued as reinvestment of dividends 1,127,672 1,127,672 1,903,872 1,903,872
--------------------------------------------------------------------------------------------------------------------------
Reacquired (41,071,052) (41,071,052) (358,171,187) (358,171,187)
==========================================================================================================================
10,146,252 $ 10,146,252 9,220,052 $ 9,220,052
__________________________________________________________________________________________________________________________
==========================================================================================================================
</TABLE>
NOTE 7-FINANCIAL HIGHLIGHTS
The following schedule presents financial highlights for a share of the Fund
outstanding throughout the periods indicated.
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED MARCH 31,
SEPTEMBER 30, ---------------------------------------------------
2000 2000 1999 1998 1997 1996
------------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
---------------------------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income 0.02 0.03 0.03 0.03 0.03 0.03
=================================================================================================================================
Less distributions:
Dividends from net investment income (0.02) (0.03) (0.03) (0.03) (0.03) (0.03)
=================================================================================================================================
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
_________________________________________________________________________________________________________________________________
=================================================================================================================================
Total return(a) 1.96% 3.05% 2.90% 3.12% 2.82% 2.92%
_________________________________________________________________________________________________________________________________
=================================================================================================================================
Ratios/supplemental data:
Net assets, end of period (000s omitted) $70,597 $60,440 $61,159 $51,934 $56,880 $30,014
_________________________________________________________________________________________________________________________________
=================================================================================================================================
Ratio of expenses to average net assets:
With fee waivers 0.75%(b) 0.80% 0.79% 0.83% 1.04% 1.05%
---------------------------------------------------------------------------------------------------------------------------------
Without fee waivers 0.90%(b) 0.95% 0.94% 0.98% 1.19% 1.20%
_________________________________________________________________________________________________________________________________
=================================================================================================================================
Ratio of net investment income to average net assets 3.85%(b) 2.99% 2.83% 3.07% 2.78% 2.97%
_________________________________________________________________________________________________________________________________
=================================================================================================================================
</TABLE>
(a)Not annualized for periods less than one year.
(b)Ratios are annualized and based on average daily net assets of $59,729,549.
8
<PAGE> 11
<TABLE>
<CAPTION>
BOARD OF TRUSTEES OFFICERS OFFICE OF THE FUND
<S> <C> <C>
Charles T. Bauer Charles T. Bauer 11 Greenway Plaza
Chairman Chairman Suite 100
A I M Management Group Inc. Houston, TX 77046
Robert H. Graham
Bruce L. Crockett President INVESTMENT ADVISOR
Director
ACE Limited; Carol F. Relihan A I M Advisors, Inc.
Formerly Director, President, and Senior Vice President and Secretary 11 Greenway Plaza
Chief Executive Officer Suite 100
COMSAT Corporation Gary T. Crum Houston, TX 77046
Senior Vice President
Owen Daly II TRANSFER AGENT
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. Stuart W. Coco Houston, TX 77210-4739
Chairman, Mercantile Mortgage Corp.; Vice President
Formerly Vice Chairman and President, CUSTODIAN
Mercantile-Safe Deposit & Trust Co.; and Melville B. Cox
President, Mercantile Bankshares Vice President The Bank of New York
90 Washington Street
Jack Fields Karen Dunn Kelley 11th Floor
Chief Executive Officer Vice President New York, NY 10286
Twenty First Century Group, Inc.;
Formerly Member Mary J. Benson COUNSEL TO THE FUND
of the U.S. House of Representatives Assistant Vice President
and Assistant Treasurer Ballard Spahr
Carl Frischling Andrews & Ingersoll, LLP
Partner Sheri Morris 1735 Market Street
Kramer, Levin, Naftalis & Frankel LLP Assistant Vice President Philadelphia, PA 19103
and Assistant Treasurer
Robert H. Graham COUNSEL TO THE TRUSTEES
President and Chief Executive Officer Jim A. Coppedge
A I M Management Group Inc. Assistant Secretary Kramer, Levin, Naftalis & Frankel LLP
919 Third Avenue
Prema Mathai-Davis Renee A. Friedli New York, NY 10022
Formerly Chief Executive Officer, Assistant Secretary
YWCA of the U.S.A. DISTRIBUTOR
P. Michelle Grace
Lewis F. Pennock Assistant Secretary A I M Distributors, Inc.
Partner 11 Greenway Plaza
Pennock & Cooper Nancy L. Martin Suite 100
Assistant Secretary Houston, TX 77046
Louis S. Sklar
Executive Vice President Ofelia M. Mayo
Hines Interests Assistant Secretary
Limited Partnership
Lisa A. Moss
Assistant Secretary
Kathleen J. Pflueger
Assistant Secretary
</TABLE>
This report may be distributed only to current shareholders or to the persons
who have received a current prospectus of the Fund.
<PAGE> 12
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
MORE AGGRESSIVE MORE AGGRESSIVE mutual fund industry since
1976 and managed approximately
AIM Small Cap Opportunities(1) AIM Latin American Growth $183 billion in assets for
AIM Mid Cap Opportunities(2) AIM Developing Markets more than eight million
AIM Large Cap Opportunities(3) AIM European Small Company shareholders, including
AIM Emerging Growth AIM Asian Growth individual investors,
AIM Small Cap Growth(4) AIM Japan Growth corporate clients and
AIM Aggressive Growth AIM International Emerging Growth financial institutions, as of
AIM Mid Cap Growth AIM European Development September 30, 2000.
AIM Small Cap Equity AIM Euroland Growth The AIM Family of
AIM Capital Development AIM Global Aggressive Growth Funds--Registered Trademark--
AIM Constellation(5) AIM International Equity is distributed nationwide, and
AIM Dent Demographic Trends AIM Advisor International Value AIM today is the
AIM Select Growth AIM Global Trends eighth-largest mutual fund
AIM Large Cap Growth AIM Global Growth complex in the United States
AIM Weingarten in assets under management,
AIM Mid Cap Equity MORE CONSERVATIVE according to Strategic
AIM Value II Insight, an independent mutual
AIM Charter SECTOR EQUITY FUNDS fund monitor.
AIM Value AIM is a subsidiary of
AIM Blue Chip MORE AGGRESSIVE AMVESCAP PLC, one of the
AIM Basic Value world's largest independent
AIM Large Cap Basic Value AIM New Technology financial services companies
AIM Balanced AIM Global Telecommunications and Technology with $414 billion in assets
AIM Advisor Flex AIM Global Infrastructure under management as of
AIM Global Resources September 30, 2000.
MORE CONSERVATIVE AIM Global Financial Services
AIM Global Health Care
AIM Global Consumer Products and Services
AIM Advisor Real Estate
AIM Global Utilities
MORE CONSERVATIVE
FIXED-INCOME FUNDS
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(6)
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 Large Cap Opportunities Fund closed to
new investors Sept. 29, 2000. (4) AIM Small Cap Growth Fund closed to new
investors Nov. 8, 1999. (5) 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.
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 Jan. 20, 2001, 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] [AIM LOGO APPEARS HERE]
--Registered Trademark--
Invest with DISCIPLINE
--Registered Trademark--
A I M Distributors, Inc. TEC-SAR-1
