<PAGE>
[AIM LOGO APPEARS HERE] Dear Shareholder:
- --Registered Trademark--
[PHOTO of As the end of the six-month reporting period
Charles T. Bauer, arrived, the U.S. economy continued to move
Chairman of the ahead at a lively pace. The Federal Reserve
LETTER Board of The Fund Board (the Fed) increased the key federal funds
TO OUR APPEARS HERE] rate a total of 75 basis points during 1999. At
SHAREHOLDERS the beginning of this reporting period, the
Fed's primary focus was to stabilize the markets in
anticipation of a potential Y2K-related liquidity crisis. Y2K
thankfully turned out to be a non-event. As 2000 began, the
robust domestic economy (coupled with inflationary tendencies
in certain commodity prices) compelled the Fed to increase the
federal funds rate 25 basis points on March 21 to 6.00%. The
Fed will most likely continue to increase short-term rates to
contain the equity markets' high growth performance; there is a
strong consensus among financial markets that the Fed will
increase rates by 25 basis points at the May 16 meeting. If the
rate hikes do halt or slow the equity markets' activity, the
money market sector anticipates more incoming cash as the year
progresses.
YOUR INVESTMENT PORTFOLIO
As of February 29, 2000, the performance of the portfolio's
Reserve Class was competitive with the performance reported for
its comparative indexes; its average monthly yield was 5.01%,
and its seven-day yield was 5.04%. On February 28, 2000, the
Liquid Assets Portfolio reached record assets of $20.5 billion.
The weighted average maturity (WAM) remained in the 22- to 35-
day range. At the close of the period, the WAM was 24 days. Net
assets of the Reserve Class stood at $108,325 at the close of
the reporting period.
The portfolio continues to hold the highest credit-quality
ratings given by three widely known credit-rating agencies:
AAAm from Standard & Poor's, Aaa from Moody's and AAA from
Fitch IBCA. These historical ratings are based on an analysis
of the portfolio's credit quality, composition, management and
weekly portfolio reviews. AIM is the largest multi-fund complex
to have all its institutional money market portfolios given the
highest rating by three nationally recognized ratings agencies,
according to IBC Financial Data, Inc.
The Liquid Assets Portfolio invests solely in securities
rated "first-tier" as defined in Rule 2a-7 under the Investment
Companies Act of 1940. Its objective is to provide as high a
level of current income as is consistent with the preservation
of capital and liquidity. Using a modified barbell maturity
structure, portfolio management emphasizes superior credit
quality in buying money market securities such as commercial
paper and selected repurchase-agreement securities. An
investment in a money market fund is not insured or guaranteed
by the Federal Deposit Insurance Corporation or any other
government agency. Although a money market fund seeks to
preserve the value of your investment at $1.00 per share, it is
possible to lose money investing in the fund.
(continued)
<PAGE>
OUTLOOK FOR THE FUTURE
Gross domestic product growth for the fourth quarter of 1999
was at an annualized rate of 7.3%, and for the year 4.2%. There
is no evidence of a slowdown; there is no inventory drop-off,
and consumer spending continues to increase. February's rate
increase has had a minimal effect on the U.S. economy, which
continues full steam ahead. The Fed will probably continue to
raise interest rates until a substantial correction occurs
within the equity markets. In February, the current period of
economic expansion became the longest in U.S. history. Many
analysts expect this growth to continue through at least the
first half of 2000. It seems that the same story that dogged
markets in 1999 is so far continuing, with persistent upward
pressure on interest rates.
We are pleased to send you this report on your investment.
AIM is committed to the primary goals of safety, liquidity and
yield in institutional fund management. We are also dedicated
to customer service, and we are ready to respond to your
comments about this report. If you have any questions, please
contact one of our representatives at 800-659-1005 if we may
help.
Respectfully submitted,
/s/ CHARLES T BAUER
Charles T. Bauer
Chairman
2
<PAGE>
SCHEDULE OF INVESTMENTS
February 29, 2000
(Unaudited)
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE
<S> <C> <C> <C>
COMMERCIAL PAPER - 25.93%(a)
CONSUMER DURABLES - 0.36%
AUTOMOBILE - 0.36%
Daimler-Chrysler North America Holding
5.87% 03/22/00 $ 23,000 $ 22,921,244
- ----------------------------------------------------------------------------
5.82% 03/31/00 50,000 49,757,500
- ----------------------------------------------------------------------------
Total Consumer Durables 72,678,744
- ----------------------------------------------------------------------------
FINANCIAL - 25.57%
ASSET BACKED SECURITIES-COMMERCIAL LOANS/LEASES - 0.51%
Centric Capital Corp.
5.75% 03/15/00 25,000 24,944,097
- ----------------------------------------------------------------------------
5.97% 07/25/00 43,900 42,837,107
- ----------------------------------------------------------------------------
Fleet Funding Corp.
5.78% 03/13/00 35,000 34,932,566
- ----------------------------------------------------------------------------
102,713,770
- ----------------------------------------------------------------------------
ASSET BACKED SECURITIES-CONSUMER RECEIVABLES - 0.94%
Thunder Bay Funding Inc.
5.79% 03/24/00 45,148 44,980,990
- ----------------------------------------------------------------------------
5.90% 04/03/00 70,098 69,718,887
- ----------------------------------------------------------------------------
5.86% 04/19/00 74,774 74,177,593
- ----------------------------------------------------------------------------
188,877,470
- ----------------------------------------------------------------------------
ASSET BACKED SECURITIES-MULTI-PURPOSE - 11.58%
Aspen Funding Corp.
5.77% 03/07/00 25,000 24,975,958
- ----------------------------------------------------------------------------
6.05% 10/10/00 50,000 48,126,181
- ----------------------------------------------------------------------------
Barton Capital Corp.
5.80% 03/07/00 100,000 99,903,332
- ----------------------------------------------------------------------------
5.78% 03/09/00 41,425 41,371,792
- ----------------------------------------------------------------------------
5.89% 04/25/00 27,000 26,757,038
- ----------------------------------------------------------------------------
Bavaria TRR Corp.
5.92% 03/17/00 50,000 49,868,444
- ----------------------------------------------------------------------------
5.92% 03/23/00 48,000 47,826,347
- ----------------------------------------------------------------------------
Clipper Receivables Corp.
5.78% 03/14/00 30,000 29,937,383
- ----------------------------------------------------------------------------
Corporate Receivables Corp.
5.73% 03/02/00 75,000 74,988,063
- ----------------------------------------------------------------------------
</TABLE>
3
<PAGE>
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE
<S> <C> <C> <C>
ASSET BACKED SECURITIES-MULTI-PURPOSE - (CONTINUED)
Edison Asset Securitization, L.L.C.
5.75% 03/02/00 $ 25,000 $ 24,996,007
- ----------------------------------------------------------------------------
5.84% 03/07/00 49,591 49,542,731
- ----------------------------------------------------------------------------
5.78% 03/10/00 35,000 34,949,425
- ----------------------------------------------------------------------------
5.83% 03/10/00 50,000 49,927,125
- ----------------------------------------------------------------------------
5.93% 03/10/00 50,000 49,925,875
- ----------------------------------------------------------------------------
5.75% 03/15/00 78,643 78,467,146
- ----------------------------------------------------------------------------
5.92% 03/17/00 75,000 74,802,667
- ----------------------------------------------------------------------------
5.81% 03/20/00 35,000 34,892,676
- ----------------------------------------------------------------------------
5.87% 03/22/00 42,923 42,776,024
- ----------------------------------------------------------------------------
Enterprise Funding Corp.
5.78% 03/27/00 35,140 34,993,310
- ----------------------------------------------------------------------------
Falcon Asset Securitization Corp.
5.75% 03/03/00 155,850 155,800,215
- ----------------------------------------------------------------------------
5.80% 03/10/00 55,025 54,945,214
- ----------------------------------------------------------------------------
5.80% 03/13/00 20,000 19,961,333
- ----------------------------------------------------------------------------
5.80% 03/23/00 22,000 21,922,022
- ----------------------------------------------------------------------------
5.88% 04/11/00 50,000 49,665,167
- ----------------------------------------------------------------------------
Monte Rosa Capital Corp.
5.98% 03/09/00 50,000 49,933,555
- ----------------------------------------------------------------------------
5.85% 03/14/00 40,000 39,915,500
- ----------------------------------------------------------------------------
5.84% 03/14/00 80,456 80,286,327
- ----------------------------------------------------------------------------
Newport Funding Corp.
6.05% 10/10/00 50,000 48,126,181
- ----------------------------------------------------------------------------
6.22% 11/17/00 75,000 71,617,875
- ----------------------------------------------------------------------------
Park Avenue Receivables Corp.
5.81% 03/08/00 35,000 34,960,460
- ----------------------------------------------------------------------------
5.80% 03/15/00 50,000 49,887,222
- ----------------------------------------------------------------------------
5.90% 03/16/00 55,370 55,233,882
- ----------------------------------------------------------------------------
Preferred Receivables Funding Corp.
5.83% 03/21/00 16,085 16,032,903
- ----------------------------------------------------------------------------
5.80% 03/21/00 38,185 38,061,959
- ----------------------------------------------------------------------------
Quincy Capital Corp.
5.75% 03/13/00 48,374 48,281,283
- ----------------------------------------------------------------------------
5.75% 03/16/00 107,742 107,483,868
- ----------------------------------------------------------------------------
Sheffield Receivables Corp.
5.79% 03/07/00 81,200 81,121,642
- ----------------------------------------------------------------------------
5.75% 03/10/00 58,000 57,916,625
- ----------------------------------------------------------------------------
5.81% 03/17/00 118,770 118,463,309
- ----------------------------------------------------------------------------
5.79% 03/21/00 130,000 129,581,833
- ----------------------------------------------------------------------------
Three Rivers Funding Corp.
5.81% 03/16/00 74,772 74,590,989
- ----------------------------------------------------------------------------
2,322,816,888
- ----------------------------------------------------------------------------
</TABLE>
4
<PAGE>
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE
<S> <C> <C> <C>
ASSET BACKED SECURITIES-TRADE RECEIVABLES - 1.69%
Asset Securitization Cooperative Corp.
6.20% 03/27/00 $ 25,000 $ 24,999,820
- ---------------------------------------------------------------------------
Blue Ridge Asset Funding Corp.
5.80% 03/10/00 25,920 25,882,416
- ---------------------------------------------------------------------------
5.81% 03/20/00 39,011 38,891,377
- ---------------------------------------------------------------------------
Corporate Asset Funding Co.
5.80% 03/08/00 75,000 74,915,417
- ---------------------------------------------------------------------------
Variable Funding Capital
5.79% 03/20/00 150,000 149,541,625
- ---------------------------------------------------------------------------
5.97% 07/17/00 26,093 25,495,862
- ---------------------------------------------------------------------------
339,726,517
- ---------------------------------------------------------------------------
BANKS (MAJOR REGIONAL) - 0.73%
ABN-Amro Bank
5.93% 07/13/00 75,000 73,345,938
- ---------------------------------------------------------------------------
5.97% 08/07/00 75,000 73,022,438
- ---------------------------------------------------------------------------
146,368,376
- ---------------------------------------------------------------------------
BANKS (MONEY CENTER) - 0.35%
Citicorp
5.80% 03/09/00 50,000 49,935,556
- ---------------------------------------------------------------------------
5.80% 03/13/00 20,000 19,961,333
- ---------------------------------------------------------------------------
69,896,889
- ---------------------------------------------------------------------------
BANKS (REGIONAL) - 0.97%
Bank of America Corp.
5.96% 07/31/00 100,000 97,483,556
- ---------------------------------------------------------------------------
6.09% 08/18/00 100,000 97,124,167
- ---------------------------------------------------------------------------
194,607,723
- ---------------------------------------------------------------------------
BROKERAGE/INVESTMENTS - 0.68%
Credit Suisse First Boston, Inc.
5.79% 03/03/00 35,000 34,988,742
- ---------------------------------------------------------------------------
5.77% 03/17/00 50,800 50,669,726
- ---------------------------------------------------------------------------
Morgan Stanley Dean Witter & Co.
5.88% 03/08/00 50,000 49,942,833
- ---------------------------------------------------------------------------
135,601,301
- ---------------------------------------------------------------------------
CONSUMER FINANCE - 3.00%
General Motors Acceptance Corp.
5.84% 03/01/00 50,000 50,000,000
- ---------------------------------------------------------------------------
5.88% 03/01/00 200,000 200,000,000
- ---------------------------------------------------------------------------
5.89% 04/03/00 50,000 49,730,018
- ---------------------------------------------------------------------------
5.93% 04/03/00 200,000 198,912,818
- ---------------------------------------------------------------------------
Bank One Financial Corp.
5.90% 03/24/00 30,000 29,886,917
- ---------------------------------------------------------------------------
</TABLE>
5
<PAGE>
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE
<S> <C> <C> <C>
CONSUMER FINANCE - (CONTINUED)
5.80% 03/29/00 $ 25,000 $ 24,887,222
- ---------------------------------------------------------------------------
5.74% 05/26/00 50,000 49,314,389
- ---------------------------------------------------------------------------
602,731,364
- ---------------------------------------------------------------------------
FINANCIAL - DIVERSIFIED - 4.37%
Associates First Capital Corp.
5.89% 03/01/00 141,000 141,000,000
- ---------------------------------------------------------------------------
GE Capital International Funding, Inc.
5.82% 03/03/00 75,000 74,975,750
- ---------------------------------------------------------------------------
5.90% 03/07/00 50,000 49,950,833
- ---------------------------------------------------------------------------
5.87% 03/08/00 50,000 49,942,931
- ---------------------------------------------------------------------------
5.89% 03/09/00 50,000 49,934,556
- ---------------------------------------------------------------------------
5.83% 03/14/00 50,000 49,894,736
- ---------------------------------------------------------------------------
5.75% 03/27/00 100,000 99,584,722
- ---------------------------------------------------------------------------
5.74% 05/12/00 75,000 74,139,000
- ---------------------------------------------------------------------------
General Electric Capital Corp.
6.07% 08/17/00 50,000 48,575,236
- ---------------------------------------------------------------------------
6.06% 08/28/00 68,000 65,939,600
- ---------------------------------------------------------------------------
General Electric Capital Services
5.82% 03/03/00 75,000 74,975,750
- ---------------------------------------------------------------------------
6.06% 08/28/00 75,000 72,727,500
- ---------------------------------------------------------------------------
National Rural Utilities Coop
5.75% 03/14/00 25,000 24,948,090
- ---------------------------------------------------------------------------
876,588,704
- ---------------------------------------------------------------------------
OIL & GAS (REFINING) - 0.50%
Shell Oil Co.
5.91% 04/14/00 76,832 76,832,000
- ---------------------------------------------------------------------------
United Technologies Corp.
5.95% 03/03/00 24,000 23,992,067
- ---------------------------------------------------------------------------
100,824,067
- ---------------------------------------------------------------------------
TELEPHONE - 0.25%
American Telephone and Telegraph Corp.
5.70% 03/16/00 50,000 49,881,250
- ---------------------------------------------------------------------------
Total Financial 5,130,634,319
- ---------------------------------------------------------------------------
Total Commercial Paper (Cost
$5,203,313,063) 5,203,313,063
- ---------------------------------------------------------------------------
BANK NOTES - 0.87%
American Express Centurion Bank
5.89% 03/29/00 50,000 50,000,000
- ---------------------------------------------------------------------------
Bank of America Corp.
6.33% 10/04/00 100,000 100,000,000
- ---------------------------------------------------------------------------
National City Bank Cleveland
5.95%(b) 04/03/00 25,000 24,999,119
- ---------------------------------------------------------------------------
Total Bank Notes (Cost $174,999,119) 174,999,119
- ---------------------------------------------------------------------------
</TABLE>
6
<PAGE>
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE
<S> <C> <C> <C>
CERTIFICATES OF DEPOSIT - 9.77%
ABN-Amro Bank
5.79% 03/16/00 $ 75,000 $75,000,155
- -----------------------------------------------------------------------
5.71% 07/03/00 25,000 24,996,747
- -----------------------------------------------------------------------
Bank Austria
5.84% 03/22/00 100,000 100,000,578
- -----------------------------------------------------------------------
5.65% 07/06/00 25,000 24,995,832
- -----------------------------------------------------------------------
6.48% 11/06/00 50,000 50,000,000
- -----------------------------------------------------------------------
Barclays Bank PLC
5.61% 06/14/00 25,000 24,996,553
- -----------------------------------------------------------------------
Canadian Imperial Bank of Commerce
5.80% 03/17/00 100,000 100,000,440
- -----------------------------------------------------------------------
6.32% 10/30/00 75,000 75,000,000
- -----------------------------------------------------------------------
Chase-USA-Delaware
5.37% 05/22/00 25,000 24,998,111
- -----------------------------------------------------------------------
Credit Communai de Belgique
5.93% 09/29/00 35,000 34,904,372
- -----------------------------------------------------------------------
Deutsche Bank Securities, Inc.
5.80% 03/21/00 100,000 100,000,000
- -----------------------------------------------------------------------
5.89% 03/31/00 100,000 100,000,000
- -----------------------------------------------------------------------
5.29% 05/19/00 25,000 24,997,138
- -----------------------------------------------------------------------
Dresdner Bank
5.80% 03/13/00 75,000 75,000,000
- -----------------------------------------------------------------------
First Union National Bank
6.29% 04/27/00 66,000 66,000,000
- -----------------------------------------------------------------------
6.27% 05/10/00 85,000 85,000,000
- -----------------------------------------------------------------------
Huntington National Bank
6.33% 10/16/00 75,000 75,000,000
- -----------------------------------------------------------------------
National City Bank
6.55% 01/31/01 50,000 49,978,134
- -----------------------------------------------------------------------
National Westminster Bank
5.82% 03/27/00 100,000 100,000,000
- -----------------------------------------------------------------------
5.67% 07/03/00 25,000 24,997,559
- -----------------------------------------------------------------------
6.32% 10/27/00 100,000 100,003,180
- -----------------------------------------------------------------------
Rabobank Nederland
5.87% 03/31/00 100,000 100,000,000
- -----------------------------------------------------------------------
6.30% 10/26/00 50,000 50,000,000
- -----------------------------------------------------------------------
Svenska Handelsbanken AB
6.39% 10/26/00 100,000 100,000,000
- -----------------------------------------------------------------------
6.48% 11/06/00 50,000 50,000,000
- -----------------------------------------------------------------------
6.50% 01/29/01 50,000 49,978,261
- -----------------------------------------------------------------------
Toronto-Dominion Bank
5.80% 03/20/00 75,000 75,000,392
- -----------------------------------------------------------------------
5.88% 03/31/00 50,000 50,000,166
- -----------------------------------------------------------------------
</TABLE>
7
<PAGE>
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE
<S> <C> <C> <C>
CERTIFICATES OF DEPOSIT - (continued)
U.S. Bank NA Minneapolis
5.95% 05/16/00 $ 50,000 $ 50,000,000
- ------------------------------------------------------------------------------
5.68% 06/12/00 25,000 25,000,000
- ------------------------------------------------------------------------------
UBS AG
5.24% 03/01/00 25,000 25,000,000
- ------------------------------------------------------------------------------
5.35% 05/30/00 25,000 24,997,039
- ------------------------------------------------------------------------------
5.60% 06/14/00 25,000 24,996,552
- ------------------------------------------------------------------------------
Total Certificates of Deposit (Cost
$1,960,841,209) 1,960,841,209
- ------------------------------------------------------------------------------
MASTER NOTE AGREEMENTS - 4.31%
Merrill Lynch Mortgage Capital Inc.
6.20%(c) 08/17/00 357,000 357,000,000
- ------------------------------------------------------------------------------
Morgan (J.P.) Securities, Inc.
6.06%(d) 05/01/00 271,000 271,000,000
- ------------------------------------------------------------------------------
Morgan Stanley Dean Witter & Co.
6.04%(e) 03/01/00 237,000 237,000,000
- ------------------------------------------------------------------------------
Total Master Note Agreements (Cost
$865,000,000) 865,000,000
- ------------------------------------------------------------------------------
MEDIUM TERM NOTES - 2.61%
American Telephone & Telegraph Corp.
5.99% 07/13/00 25,000 24,996,339
- ------------------------------------------------------------------------------
Bears, Stearns & Co., Inc.
6.13%(b) 11/14/00 122,200 122,200,000
- ------------------------------------------------------------------------------
Credit Suisse First Boston Corp.
6.09%(b) 11/14/00 80,000 80,000,000
- ------------------------------------------------------------------------------
Morgan Stanley Dean Witter & Co.
6.09%(b) 08/04/00 250,000 250,000,000
- ------------------------------------------------------------------------------
Toyota Motor Credit Corp.
6.11%(b) 09/20/00 35,000 35,000,000
- ------------------------------------------------------------------------------
SMM Trust 1999-E
6.02%(f) 04/05/00 10,750 10,750,000
- ------------------------------------------------------------------------------
Total Medium Term Notes (Cost
$522,946,339) 522,946,339
- ------------------------------------------------------------------------------
PROMISSORY NOTES - 3.12%
Goldman Sachs Group, L.P.
5.88% 03/24/00 300,000 300,000,000
- ------------------------------------------------------------------------------
6.09% 05/16/00 125,000 125,000,000
- ------------------------------------------------------------------------------
6.11% 05/24/00 200,000 200,000,000
- ------------------------------------------------------------------------------
Total Promissory Notes (Cost
$625,000,000) 625,000,000
- ------------------------------------------------------------------------------
VARIABLE RATE DEMAND BONDS - 1.26%
B. Braun Medical Inc. RB (LOC-First Union
National Bank)
5.95%(g) 02/01/15 30,755 30,755,000
- ------------------------------------------------------------------------------
Belk, Inc. RB (LOC-First Union National
Bank)
5.95%(g) 07/01/08 63,200 63,200,000
- ------------------------------------------------------------------------------
BMC Special Care Facilities RB
5.90%(g)(h) 11/15/29 20,000 20,000,000
- ------------------------------------------------------------------------------
</TABLE>
8
<PAGE>
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE
<S> <C> <C> <C>
VARIABLE RATE DEMAND BONDS - (continued)
Borsis Finance, LLC RB (LOC-Wachovia Bank)
5.88%(g) 09/01/19 $ 20,000 $ 20,000,000
- -------------------------------------------------------------------------------
Connecticut State Housing Financing
Authority RB
5.87%(g)(h) 11/15/16 48,220 48,220,000
- -------------------------------------------------------------------------------
Gulf States Paper Corp. RB (LOC-Wachovia
Bank)
5.88%(g) 11/01/18 25,000 25,000,000
- -------------------------------------------------------------------------------
Southwestern Retirement Association Tax,
Inc. RB (LOC-First Union National Bank)
5.95%(g) 08/01/19 20,000 20,000,000
- -------------------------------------------------------------------------------
Texas (State of) GO Veteran's Housing
Assistance Program
5.85%(h) 12/01/29 25,000 25,000,000
- -------------------------------------------------------------------------------
Total Variable Rate Demand Bonds (Cost
$252,175,000) 252,175,000
- -------------------------------------------------------------------------------
TIME DEPOSITS - 32.22%
Amsouth Bank of Birmingham AL-Cayman
5.88% 03/01/00 267,000 267,000,000
- -------------------------------------------------------------------------------
Bank of America, NT & SA-Cayman
5.81% 03/01/00 500,000 500,000,000
- -------------------------------------------------------------------------------
Banque Bruxelles Lambert-London
5.94% 03/01/00 728,000 728,000,000
- -------------------------------------------------------------------------------
CIBC-Cayman
5.81% 03/01/00 200,000 200,000,000
- -------------------------------------------------------------------------------
Credit Communal De Belgique-Cayman
5.94% 03/01/00 128,000 128,000,000
- -------------------------------------------------------------------------------
Credit Suisse First Boston Corp.-Cayman
5.88% 03/01/00 700,000 700,000,000
- -------------------------------------------------------------------------------
Den Danske Bank-Cayman
5.91% 03/01/00 261,000 261,000,000
- -------------------------------------------------------------------------------
Deutsche Bank-Cayman
5.94% 03/01/00 38,000 38,000,000
- -------------------------------------------------------------------------------
Dresdner Bank-Cayman
5.81% 03/01/00 250,000 250,000,000
- -------------------------------------------------------------------------------
M&I Marshall & Isley Bank Milwaukee
5.81% 03/01/00 200,000 200,000,000
- -------------------------------------------------------------------------------
Norwest Bank, Minnesota Cayman
5.88% 03/01/00 250,000 250,000,000
- -------------------------------------------------------------------------------
Regions Bank-Cayman
5.94% 03/01/00 728,000 728,000,000
- -------------------------------------------------------------------------------
Societe Generale-Cayman
5.81% 03/01/00 635,788 635,788,481
- -------------------------------------------------------------------------------
Suntrust Bank Atlanta-Cayman
5.88% 03/01/00 850,000 850,000,000
- -------------------------------------------------------------------------------
UBS AG-Cayman
5.81% 03/01/00 500,000 500,000,000
- -------------------------------------------------------------------------------
Westdeutsche Landesbank-Cayman
5.94% 03/01/00 228,000 228,000,000
- -------------------------------------------------------------------------------
Total Time Deposits (Cost $6,463,788,481) 6,463,788,481
- -------------------------------------------------------------------------------
</TABLE>
9
<PAGE>
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE
<S> <C> <C> <C>
REPURCHASE AGREEMENTS(i) - 21.37%
Bank of America Securities Inc.
5.87%(j) 03/01/00 $ 74,120 $ 74,119,581
- --------------------------------------------------------------------------------
Bank One Capital Markets, Inc.
5.87%(k) 03/01/00 373,000 373,000,000
- --------------------------------------------------------------------------------
Barclays Capital Inc.
5.87%(l) 03/01/00 355,254 355,253,977
- --------------------------------------------------------------------------------
Bear, Stearns & Co., Inc.
5.87%(m) -- 572,000 572,000,000
- --------------------------------------------------------------------------------
CIBC Oppenheimer Corp.
5.87%(n) 03/01/00 100,000 100,000,000
- --------------------------------------------------------------------------------
Credit Suisse First Boston Corp.
5.85%(o) 03/01/00 30,000 30,000,000
- --------------------------------------------------------------------------------
Deutsche Bank Securities, Inc.
5.86%(p) -- 200,000 200,000,000
- --------------------------------------------------------------------------------
5.86%(q) 03/01/00 71,233 71,232,687
- --------------------------------------------------------------------------------
First Union Capital Markets
5.87%(r) 03/01/00 125,000 125,000,000
- --------------------------------------------------------------------------------
Goldman, Sachs & Co.
5.87%(s) 03/01/00 450,000 450,000,000
- --------------------------------------------------------------------------------
Morgan Stanley Dean Witter & Co.
5.85%(t) 03/01/00 72,198 72,197,905
- --------------------------------------------------------------------------------
Salomon Smith Barney, Inc.
5.86%(u) -- 915,000 915,000,000
- --------------------------------------------------------------------------------
5.76%(v) 03/01/00 51,807 51,807,034
- --------------------------------------------------------------------------------
Societe Generale Cowen Securities Corp.
5.87%(w) 03/01/00 175,000 175,000,000
- --------------------------------------------------------------------------------
Warburg Dillon Read LLC
5.87%(x) 03/01/00 373,000 373,000,000
- --------------------------------------------------------------------------------
5.55%(y) 03/01/00 75,000 75,000,000
- --------------------------------------------------------------------------------
Westdeutsche Landesbank Girozentrale
5.87%(z) 03/01/00 275,000 275,000,000
- --------------------------------------------------------------------------------
Total Repurchase Agreements (Cost
$4,287,611,184) 4,287,611,184
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS (Cost $20,355,674,395) -
101.46% 20,355,674,395
- --------------------------------------------------------------------------------
OTHER LIABILITIES LESS ASSETS - (1.46)% (294,206,669)
- --------------------------------------------------------------------------------
NET ASSETS - 100.00% $20,061,467,726
- --------------------------------------------------------------------------------
</TABLE>
Investment Abbreviations:
GO -- General Obligation Bond
RB -- Revenue Bond
NOTES TO SCHEDULE OF INVESTMENTS
(a) Some commercial paper is traded on a discount basis. In such cases the
interest rate shown represents the rate of discount paid or received at the
time of purchase by the Portfolio.
(b) Interest rates are redetermined daily. Rate shown is the rate in effect on
02/29/00.
See Notes to Financial Statements.
10
<PAGE>
(c) The Portfolio 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 02/29/00.
(d) The Portfolio may demand prepayment of notes purchased under the Master
Note Purchase Agreement upon seven business days' notice. Interest rates on
master notes are redetermined periodically. Rate shown is the rate in
effect on 02/29/00.
(e) Master Note Purchase Agreement may be terminated by either party upon three
business days' prior written notice, at which time all amounts outstanding
under the notes purchased under the Master Note Agreement will become
payable. Interest rates on master notes are redetermined periodically. Rate
shown is the rate in effect on 02/29/00.
(f) Interest rates are predetermined quarterly. Rate shown is the rate in
effect on 02/29/00.
(g) Demand security; payable upon demand by the Fund with usually no more than
seven calendar days' notice. Interest rates are redetermined periodically.
Rate shown is in effect on 02/29/00.
(h) Secured by bond insurance provided by one of the following companies:
AMBAC, FGIC, FSA, or MBIA.
(i) Collateral on repurchase agreements, including the Portfolio's pro-rata
interest in joint repurchase agreements, is taken into possession by the
Portfolio upon entering into the repurchase agreement. The collateral is
marked to market daily to ensure its market value is at least 102% of the
sales price of the repurchase agreement. The investments in some repurchase
agreements are through participation in joint accounts with other mutual
funds, private accounts and certain non-registered investment companies
managed by the investment advisor or its affiliates.
(j) Joint repurchase agreement entered into 02/29/00 with a maturing value of
$800,130,444. Collateralized by $1,015,808,249 U.S. Government obligations,
5.50% to 8.50% due 07/15/03 to 11/01/28 with an aggregate market value at
02/29/00 of $816,000,001.
(k) Joint repurchase agreement entered into 02/29/00 with a maturing value of
$500,081,528. Collateralized by $515,023,000 U.S. Government obligations,
0% to 8.00% due 03/01/00 to 08/25/14 with an aggregate market value at
02/29/00 of $510,003,862.
(l) Joint repurchase agreement entered into 02/29/00 with a maturing value of
$396,637,718. Collateralized by $419,860,000 U.S. Government obligations,
0% to 6.25% due 04/13/00 to 05/15/29 with an aggregate market value at
02/29/00 of $404,505,314.
(m) Open repurchase agreement entered into 09/29/98; however, either party may
terminate the agreement upon demand. Interest rates, par and collateral are
redetermined daily. Collateralized by $936,354,126 U.S. Government
obligations, 0% to 9.50% due 03/01/00 to 05/01/33 with an aggregate market
value at 02/29/00 of $629,015,201.
(n) Repurchase agreement entered into 02/29/00 with a maturing value of
$100,016,306. Collateralized by $266,306,141 U.S. Government obligations,
6.007% to 7.50% due 12/01/00 to 12/01/25 with an aggregate market value at
02/29/00 of $102,000,000.
(o) Joint repurchase agreement entered into 02/29/00 with a maturing value of
$100,016,250. Collateralized by $107,780,000 U.S. Government obligations,
5.33% to 6.80% due 01/10/03 to 08/15/04 with an aggregate market value at
02/29/00 of $108,353,715.
(p) Open repurchase agreement entered into 10/02/97; however, either party may
terminate the agreement upon demand. Interest rates, par and collateral are
redetermined daily. Collateralized by $241,953,163 U.S. Government
obligations, 5.50% to 6.50% due 02/01/06 to 01/01/29 with an aggregate
market value at 02/29/00 of $204,000,000.
(q) Joint repurchase agreement entered into 02/29/00 with a maturing value of
$100,016,278. Collateralized by $101,295,000 U.S. Government obligation,
6.35% due 01/05/01 with a market value at 02/29/00 of $102,005,599.
(r) Joint repurchase agreement entered into 02/29/00 with a maturing value of
$150,024,375. Collateralized by $164,246,000 U.S. Government obligations,
0% to 8.25% due 03/01/00 to 06/15/44 with an aggregate market value at
02/29/00 of $153,000,487.
(s) Joint repurchase agreement entered into 02/29/00 with a maturing value of
$750,122,292. Collateralized by $1,294,709,963 U.S. Government obligations,
5.00% to 8.00% due 02/01/14 to 10/01/38 with an aggregate market value at
02/29/00 of $765,000,000.
(t) Joint repurchase agreement entered into 02/29/00 with a maturing value of
$150,024,458. Collateralized by $156,510,000 U.S. Government obligations,
0% to 7.42% due 07/06/00 to 12/27/17 with an aggregate market value at
02/29/00 of $153,002,600.
(u) Open repurchase agreement entered into 12/25/97; however, either party may
terminate the agreement upon demand. Interest rates, par and collateral are
redetermined daily. Collateralized by $2,307,348,000 U.S. Government
obligations, 0% to 10.70% due 03/17/00 to 07/15/43 with an aggregate market
value at 02/29/00 of $933,426,390.
(v) Joint repurchase agreement entered into 02/29/00 with a maturing value of
$500,080,000. Collateralized by $1,248,055,000 U.S. Government obligations,
0% due 11/15/01 to 08/15/21 with an aggregate market value at 02/29/00 of
$510,176,897.
(w) Joint repurchase agreement entered into 02/29/00 with a maturing value of
$200,032,611. Collateralized by $206,650,000 U.S. Government obligations,
0% to 6.875% due 06/01/00 to 01/15/05 with an aggregate market value at
02/29/00 of $204,474,729.
(x) Joint repurchase agreement entered into 02/29/00 with a maturing value of
$500,081,528. Collateralized by $643,496,000 U.S. Government obligations,
0% to 9.375% due 03/07/00 to 01/15/30 with an aggregate market value at
02/29/00 of $510,001,318.
(y) Repurchase agreement entered into 02/29/00 with a maturing value of
$75,011,562. Collateralized by $80,392,000 U.S. Government obligations,
5.50% to 6.00% due 02/15/26 to 08/15/28 with an aggregate market value at
02/29/00 of $76,502,280.
(z) Joint repurchase agreement entered into 02/29/00 with a maturing value of
$300,048,917. Collateralized by $331,666,013 U.S. Government obligations,
0% to 6.568% due 03/15/00 to 09/01/28 with an aggregate market value at
02/29/00 of $306,000,811.
See Notes to Financial Statements.
11
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
February 29, 2000
(Unaudited)
<TABLE>
<S> <C>
ASSETS:
Investments, excluding repurchase agreements, at value
(amortized cost) $16,068,063,211
- -------------------------------------------------------------------------
Repurchase agreements 4,287,611,184
- -------------------------------------------------------------------------
Cash 1,100,433
- -------------------------------------------------------------------------
Interest receivable 36,744,192
- -------------------------------------------------------------------------
Investment for deferred compensation plan 87,434
- -------------------------------------------------------------------------
Other assets 479,543
- -------------------------------------------------------------------------
Total assets 20,394,085,997
- -------------------------------------------------------------------------
LIABILITIES:
Payables for:
Investments purchased 248,642,836
- -------------------------------------------------------------------------
Dividends 81,477,022
- -------------------------------------------------------------------------
Deferred compensation 87,434
- -------------------------------------------------------------------------
Accrued administrative services fees 58,500
- -------------------------------------------------------------------------
Accrued advisory fees 803,454
- -------------------------------------------------------------------------
Accrued distribution fees 424,424
- -------------------------------------------------------------------------
Accrued transfer agent fees 511,660
- -------------------------------------------------------------------------
Accrued operating expenses 612,941
- -------------------------------------------------------------------------
Total liabilities 332,618,271
- -------------------------------------------------------------------------
NET ASSETS $20,061,467,726
=========================================================================
NET ASSETS:
Institutional Class $15,639,959,687
=========================================================================
Private Investment Class $ 472,345,727
=========================================================================
Personal Investment Class $ 5,276,254
=========================================================================
Cash Management Class $ 2,708,766,732
=========================================================================
Reserve Class $ 108,325
=========================================================================
Resource Class $ 1,235,011,001
=========================================================================
CAPITAL STOCK, $.001 PAR VALUE PER SHARE:
Institutional Class 15,639,865,923
=========================================================================
Private Investment Class 472,344,416
=========================================================================
Personal Investment Class 5,276,240
=========================================================================
Cash Management Class 2,708,727,411
=========================================================================
Reserve Class 108,323
=========================================================================
Resource Class 1,235,021,505
=========================================================================
NET ASSET VALUE PER SHARE:
Net asset value, offering and redemption price per share $1.00
=========================================================================
</TABLE>
See Notes to Financial Statements.
12
<PAGE>
STATEMENT OF OPERATIONS
For the six months ended February 29, 2000
(Unaudited)
<TABLE>
<S> <C>
INVESTMENT INCOME:
Interest income $428,441,851
- -------------------------------------------------------------------
EXPENSES:
Advisory
fees 11,253,406
- -------------------------------------------------------------------
Custodian fees 529,540
- -------------------------------------------------------------------
Administrative services fees 307,096
- -------------------------------------------------------------------
Distribution fees (see Note 2) 2,554,713
- -------------------------------------------------------------------
Directors' fees 27,871
- -------------------------------------------------------------------
Transfer agent fees 1,488,703
- -------------------------------------------------------------------
Other 372,433
- -------------------------------------------------------------------
Total expenses 16,533,762
- -------------------------------------------------------------------
Less: Fee waivers (7,766,586)
- -------------------------------------------------------------------
Net expenses 8,767,176
- -------------------------------------------------------------------
Net investment income 419,674,675
- -------------------------------------------------------------------
Net realized gain on sales of investments 81,121
- -------------------------------------------------------------------
Net increase in net assets resulting from operations $419,755,796
===================================================================
</TABLE>
See Notes to Financial Statements.
13
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
For the six months ended February 29, 2000 and year ended August 31, 1999
(Unaudited)
<TABLE>
<CAPTION>
FEBRUARY 29, AUGUST 31,
2000 1999
--------------- --------------
<S> <C> <C>
OPERATIONS:
Net investment income $ 419,674,675 $ 326,765,434
- ------------------------------------------------------------------------------
Net realized gain on sales of investments 81,121 672,252
- ------------------------------------------------------------------------------
Net increase in net assets resulting from
operations 419,755,796 327,437,686
- ------------------------------------------------------------------------------
Distributions to shareholders from net
investment income:
Institutional Class (334,966,991) (264,791,600)
- ------------------------------------------------------------------------------
Private Investment Class (10,757,826) (9,376,339)
- ------------------------------------------------------------------------------
Personal Class (69,591) (3,765)
- ------------------------------------------------------------------------------
Cash Management Class (63,636,189) (46,551,990)
- ------------------------------------------------------------------------------
Reserve Class (769) --
- ------------------------------------------------------------------------------
Resource Class (10,243,309) (6,041,740)
- ------------------------------------------------------------------------------
Capital stock transactions -- net (see Note
4) 13,866,891,254 2,284,209,435
- ------------------------------------------------------------------------------
Net increase in net assets 13,866,972,375 2,284,881,687
- ------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 6,194,495,351 3,909,613,664
- ------------------------------------------------------------------------------
End of period $20,061,467,726 $6,194,495,351
==============================================================================
NET ASSETS CONSIST OF:
Capital (par value and additional paid-in) $20,061,343,818 $6,194,452,564
- ------------------------------------------------------------------------------
Undistributed net realized gain on sales of
investment securities 123,908 42,787
- ------------------------------------------------------------------------------
$20,061,467,726 $6,194,495,351
==============================================================================
</TABLE>
See Notes to Financial Statements.
14
<PAGE>
NOTES TO FINANCIAL STATEMENTS
February 29, 2000
(Unaudited)
NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES
Short-Term Investments Co. (the "Fund") is registered under the Investment
Company Act of 1940, as amended, as an open-end series, diversified management
investment company. The Fund is organized as a Maryland corporation consisting
of two different portfolios, each of which offers separate series of shares:
the Prime Portfolio and the Liquid Assets Portfolio. Information presented in
these financial statements pertains only to the Liquid Assets Portfolio (the
"Portfolio") with the assets, liabilities and operations of each portfolio
accounted for separately. The Portfolio currently offers six different classes
of shares: the Institutional Class, the Cash Management Class, the Private
Investment Class, the Personal Investment Class, the Reserve Class and the
Resource Class. Sales of the Reserve Class commenced on January 14, 2000.
Matters affecting each class are voted on exclusively by the shareholders of
each class. The Portfolio is a money market fund whose objective is the
maximization of current income to the extent consistent with the preservation
of capital and the maintenance of liquidity.
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities at the date of 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 significant accounting policies followed by the
Portfolio in the preparation of its financial statements.
A. Security Valuations - The Portfolio's securities are valued on the basis of
amortized cost which approximates market value. This method values a
security at its cost on the date of purchase and thereafter assumes a
constant amortization to maturity of any discount or premium.
B. Securities Transactions, Investment Income and Distributions - Securities
transactions are accounted for on a trade date basis. Realized gains or
losses are computed on the basis of specific identification of the
securities sold. Interest income, adjusted for amortization of premiums and
discounts on investments, is accrued daily. Dividends to shareholders are
declared daily and are paid on the first business day of the following
month.
C. Federal Income Taxes - The Portfolio 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.
D. Expenses - Distribution expenses directly attributable to a class of shares
are charged to that class' operations. All other expenses which are
attributable to more than one class are allocated among the classes.
NOTE 2 - ADVISORY FEES AND OTHER TRANSACTIONS WITH AFFILIATES
The Fund has entered into a master investment advisory agreement with A I M
Advisors, Inc. ("AIM"). Under the terms of the master investment advisory
agreement, AIM receives a monthly fee with respect to the Portfolio at the
annual rate of 0.15% of the average daily net assets of the Portfolio. During
the six months ended February 29, 2000, AIM waived fees of $7,127,157.
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. During the six months ended February 29, 2000,
AIM was paid $307,096 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 agent and
shareholder services to the Fund. During the six months ended February 29,
2000, AFS was paid $1,389,867 for such services.
15
<PAGE>
Under the terms of a master distribution agreement between Fund Management
Company ("FMC") and the Fund, FMC acts as the exclusive distributor of the
Fund's shares. The Fund has adopted a master distribution plan (the "Plan")
pursuant to Rule 12b-1 under the 1940 Act with respect to the Private
Investment Class, the Personal Investment Class, the Cash Management Class, the
Reserve Class, and the Resource Class of the Portfolio. The Plan provides that
the Private Investment Class, the Personal Investment Class, the Cash
Management Class, the Reserve Class, and the Resource Class pay up to a 0.50%,
0.75%, 0.10%, 1.00%, and 0.20%, respectively, maximum annual rate of the
average daily net assets attributable to such class. Of this amount, the Fund
may pay an asset-based sales charge to FMC and the Fund may pay a service fee
of (a) 0.25% of the average daily net assets of each of the Private Investment
Class, the Personal Investment Class, and the Reserve Class, (b) 0.10% of the
average daily net assets of the Cash Management Class and (c) 0.20% of the
average daily net assets of the Resource Class, to selected banks, broker-
dealers and other financial institutions who offer continuing personal
shareholder services to their customers who purchase and own shares of the
Private Investment Class, the Personal Investment Class, the Cash Management
Class, the Reserve Class, or the Resource Class. Any amounts not paid as a
service fee under such Plan would constitute an asset-based sales charge. The
Plan also imposes a cap on the total amount of sales charges, including asset-
based sales charges, that may be paid by the Portfolio with respect to each
class. Currently, FMC has elected to waive a portion of its compensation
payable by the Fund such that the compensation paid pursuant to the Plan with
respect to the Private Investment Class, the Personal Investment Class, the
Cash Management Class, the Reserve Class, and the Resource Class equals 0.30%,
0.50%, 0.08%, 0.80% and 0.16%, respectively, maximum annual rate of the average
daily net assets attributable to such class. During the six months ended
February 29, 2000, the Private Investment Class, the Personal Investment Class,
the Cash Management Class, the Resource Class and the Reserve Class paid
$608,710, $6,756, $920,852, $378,842, and $124, respectively, as compensation
under the Plan. FMC waived fees of $639,429 for the same period.
Certain officers and directors of the Fund are officers of AIM, FMC and AFS.
During the six months ended February 29, 2000, the Fund paid legal fees of
$6,075 for services rendered by Kramer, Levin, Naftalis & Frankel LLP as
counsel to the Board of Directors. A member of that firm is a director of the
Fund.
NOTE 3 - DIRECTORS' FEES
Directors' fees represent remuneration paid to directors who are not an
"interested person" of AIM. The Fund may invest directors' fees, if so elected
by a director, in mutual fund shares in accordance with a deferred compensation
plan.
16
<PAGE>
NOTE 4 - SHARE INFORMATION
Changes in shares outstanding during the six months ended February 29, 2000 and
the year ended August 31, 1999 were as follows:
<TABLE>
<CAPTION>
FEBRUARY 29, 2000 AUGUST 31, 1999
------------------------------------ -----------------------------------
SHARES AMOUNT SHARES AMOUNT
----------------- ----------------- ---------------- -----------------
<S> <C> <C> <C> <C>
Sold:
Institutional Class 135,476,446,930 $ 135,476,446,930 153,902,899,999 $ 153,902,899,999
- --------------------------------------------------------------------------------------------------------
Private Investment Class 3,327,798,666 3,327,798,666 4,203,510,271 4,203,510,271
- --------------------------------------------------------------------------------------------------------
Personal Investment Class* 8,517,511 8,517,511 1,117,987 1,117,987
- --------------------------------------------------------------------------------------------------------
Cash Management Class 18,854,015,231 18,854,015,231 14,321,528,231 14,321,528,231
- --------------------------------------------------------------------------------------------------------
Resource Class 3,002,971,959 3,002,971,959 2,669,302,439 2,669,302,439
- --------------------------------------------------------------------------------------------------------
Reserve Class** 484,000 484,000 -- --
- --------------------------------------------------------------------------------------------------------
Issued as reinvestment of
dividends:
Institutional Class 45,116,569 45,116,569 32,251,894 32,251,894
- --------------------------------------------------------------------------------------------------------
Private Investment Class 2,984,166 2,984,166 3,157,926 3,157,926
- --------------------------------------------------------------------------------------------------------
Personal Investment Class* 37,965 37,965 255 255
- --------------------------------------------------------------------------------------------------------
Cash Management Class 36,668,929 36,668,929 34,021,495 34,021,495
- --------------------------------------------------------------------------------------------------------
Resource Class 8,517,751 8,517,751 5,318,298 5,318,298
- --------------------------------------------------------------------------------------------------------
Reserve Class** 324 324 -- --
- --------------------------------------------------------------------------------------------------------
Reacquired:
Institutional Class (124,423,602,077) (124,423,602,077) (152,491,320,126) (152,491,320,126)
- --------------------------------------------------------------------------------------------------------
Private Investment Class (3,124,470,758) (3,124,470,758) (4,010,706,089) (4,010,706,089)
- --------------------------------------------------------------------------------------------------------
Personal Investment Class* (4,273,228) (4,273,228) (124,251) (124,251)
- --------------------------------------------------------------------------------------------------------
Cash Management Class (17,260,708,640) (17,260,708,640) (13,932,834,793) (13,932,834,793)
- --------------------------------------------------------------------------------------------------------
Resource Class (2,083,238,044) (2,083,238,044) (2,453,914,101) (2,453,914,101)
- --------------------------------------------------------------------------------------------------------
Reserve Class** (376,000) (376,000) -- --
- --------------------------------------------------------------------------------------------------------
Net increase 13,866,891,254 $ 13,866,891,254 2,284,209,435 $ 2,284,209,435
- --------------------------------------------------------------------------------------------------------
</TABLE>
* The Personal Investment Class commenced sales on June 22, 1999.
** The Reserve Class commenced sales on January 14, 2000.
17
<PAGE>
NOTE 5 - FINANCIAL HIGHLIGHTS
Shown below are the financial highlights for a share of the Reserve Class
capital stock outstanding during the period January 14, 2000 (date sales
commenced) through February 29, 2000.
<TABLE>
<CAPTION>
FEBRUARY 29,
2000
------------
<S> <C>
Net asset value, beginning of period $ 1.00
- ---------------------------------------------------- ------
Income from investment operations:
Net investment income 0.01
- ---------------------------------------------------- ------
Less distributions:
Dividends from net investment income (0.01)
- ---------------------------------------------------- ------
Net asset value, end of period $ 1.00
==================================================== ======
Total return(a) 0.64%
==================================================== ======
Ratios/supplemental data:
Net assets, end of period (000s omitted) $ 108
==================================================== ======
Ratio of expenses to average net assets:
Including fee waivers and/or expense reimbursements 0.89%(b)
==================================================== ======
Excluding fee waivers and/or expense reimbursements 1.18%(b)
==================================================== ======
Ratio of net investment income to average net assets 4.81%(b)
==================================================== ======
</TABLE>
(a) Not annualized for periods less than one year.
(b) Ratios are annualized and based on average net assets of $120,265.
18
<PAGE>
<TABLE>
<CAPTION>
DIRECTORS
<S> <C>
Charles T. Bauer Carl Frischling
Bruce L. Crockett Robert H. Graham Short-Term
Owen Daly II Prema Mathai-Davis Investments Co.
Edward K. Dunn, Jr. Lewis F. Pennock (STIC)
Jack M. Fields Louis S. Sklar
OFFICERS
Charles T. Bauer Chairman
Robert H. Graham President
Gary T. Crum Sr. Vice President
Carol F. Relihan Sr. Vice President & Secretary
Dana R. Sutton Vice President & Treasurer
Melville B. Cox Vice President Liquid Assets
Karen Dunn Kelley Vice President Portfolio
J. Abbott Sprague Vice President -------------------------------------------------
Mary J. Benson Assistant Vice President & Assistant Treasurer Reserve SEMI-
Sheri Morris Assistant Vice President & Assistant Treasurer Class ANNUAL
Renee A. Friedli Assistant Secretary REPORT
P. Michelle Grace Assistant Secretary
Nancy L. Martin Assistant Secretary FEBRUARY 29, 2000
Ofelia M. Mayo Assistant Secretary
Lisa A. Moss Assistant Secretary
Kathleen J. Pflueger Assistant Secretary
Samuel D. Sirko Assistant Secretary
Stephen I. Winer Assistant Secretary
INVESTMENT ADVISOR
A I M Advisors, Inc.
11 Greenway Plaza, Suite 100
Houston, TX 77046-1173
800-347-1919
DISTRIBUTOR
Fund Management Company
11 Greenway Plaza, Suite 100
Houston, TX 77046-1173
800-659-1005
CUSTODIAN
The Bank of New York
90 Washington Street, 11th Floor
New York, NY 10286
LEGAL COUNSEL TO FUND
Ballard Spahr Andrews & Ingersoll, LLP
1735 Market Street, 51st Floor
Philadelphia, PA 19103-7599
LEGAL COUNSEL TO DIRECTORS
Kramer Levin Naftalis & Frankel LLP
919 Third Avenue
New York, NY 10022
TRANSFER AGENT
A I M Fund Services, Inc.
11 Greenway Plaza, Suite 100
Houston, TX 77046-1173
This report may be distributed only to current shareholders or [LOGO APPEARS HERE]
to persons who have received a current prospectus. Fund Management Company
</TABLE>
LAP-AR-3
