<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 Cash
Management Class compared quite favorably with the performance
reported for its comparative indexes, as shown in the table.
This excellent record can be attributed to the portfolio's
disciplined approach of maintaining a laddered 60-day maximum
maturity schedule. This structure allows the portfolio to
respond to higher interest-rate levels more quickly than can
other funds with longer maturity schedules; it is also an
attractive structure that allows investors to take advantage of
higher yields through quarter-ends and other volatile market
movements. The weighted average maturity (WAM) remained in the
9- to 23-day range. At the close of the period, the WAM was 23
days. Net assets of the Cash Management Class stood at $1.1
billion 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.
<TABLE>
<CAPTION>
YIELDS AS OF 2/29/00
Average Seven-Day
Monthly Yield Yield
<S> <C> <C>
Prime Portfolio
Cash Management Class 5.69% 5.73%
IBC Money Fund Averages (TM) -
First-Tier Institutions Only 5.50% 5.53%
IBC Money Fund Averages (TM) -
Total Institutions Only 5.37% 5.42%
</TABLE>
The Prime Portfolio seeks to maximize current income to the
extent consistent with preservation of capital and maintenance
of liquidity. It invests in high-grade taxable money market
instruments with maturities of 60 days or fewer, including U.S.
government obligations, bank obligations, commercial paper and
selected repurchase-agreement securities. An investment in a
money market fund is not insured or guaranteed by the Federal
Deposit
(continued)
<PAGE>
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 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 committed to
customer service and 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. We are happy to be of
service.
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 - 78.59%(a)
BASIC INDUSTRIES - 1.96%
CHEMICALS - 1.69%
Bayer Corp.
5.68% 03/13/00 $100,000 $ 99,810,667
- -------------------------------------------------------------------------
5.81% 04/04/00 49,600 49,327,834
- -------------------------------------------------------------------------
Du Pont (E.I.) de Nemours and Co.
5.68% 03/20/00 50,000 49,850,111
- -------------------------------------------------------------------------
5.80% 04/07/00 50,000 49,701,944
- -------------------------------------------------------------------------
248,690,556
- -------------------------------------------------------------------------
METAL MINING - 0.27%
Rio Tinto America, Inc.
5.82% 04/12/00 40,000 39,728,400
- -------------------------------------------------------------------------
Total Basic Industries 288,418,956
- -------------------------------------------------------------------------
CONSUMER DURABLES - 2.03%
AUTOMOBILE - 2.03%
Daimler-Chrysler North America Holding
Corp.
5.64% 03/01/00 100,000 100,000,000
- -------------------------------------------------------------------------
5.85% 04/17/00 100,000 99,236,250
- -------------------------------------------------------------------------
5.85% 04/20/00 100,000 99,187,500
- -------------------------------------------------------------------------
Total Consumer Durables 298,423,750
- -------------------------------------------------------------------------
CONSUMER NONDURABLES - 1.70%
BEVERAGES - 0.68%
Coca-Cola Co. (The)
5.66% 03/14/00 100,000 99,795,611
- -------------------------------------------------------------------------
FOODS - 0.34%
General Mills, Inc.
5.65% 03/09/00 49,870 49,807,385
- -------------------------------------------------------------------------
PERSONAL CARE - 0.68%
Gillette Co.
5.66% 03/14/00 50,000 49,897,806
- -------------------------------------------------------------------------
5.69% 03/24/00 50,000 49,818,236
- -------------------------------------------------------------------------
99,716,042
- -------------------------------------------------------------------------
Total Consumer Nondurables 249,319,038
- -------------------------------------------------------------------------
</TABLE>
3
<PAGE>
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE
<S> <C> <C> <C>
ENERGY - 1.09%
OIL & GAS - 1.09%
Chevron U.S.A., Inc.
5.65% 03/13/00 $ 60,000 $ 59,887,000
- ---------------------------------------------------------------------
Koch Industries, Inc.
5.64% 03/06/00 100,000 99,921,667
- ---------------------------------------------------------------------
Total Energy 159,808,667
- ---------------------------------------------------------------------
FINANCIAL - 68.59%
ASSET-BACKED SECURITIES-COMMERCIAL LOANS/LEASES - 4.01%
Atlantis One Funding Corp.
5.80% 03/28/00 96,111 95,692,917
- ---------------------------------------------------------------------
5.80% 03/31/00 47,440 47,210,707
- ---------------------------------------------------------------------
5.86% 04/13/00 75,000 74,475,042
- ---------------------------------------------------------------------
Centric Capital Corp.
5.73% 03/06/00 43,200 43,165,620
- ---------------------------------------------------------------------
5.77% 03/27/00 62,400 62,139,965
- ---------------------------------------------------------------------
5.86% 03/31/00 52,000 51,746,067
- ---------------------------------------------------------------------
5.85% 04/12/00 50,000 49,658,750
- ---------------------------------------------------------------------
Fleet Funding Corp.
5.78% 03/24/00 21,962 21,880,899
- ---------------------------------------------------------------------
5.85% 04/03/00 64,725 64,377,912
- ---------------------------------------------------------------------
5.85% 04/05/00 25,493 25,348,008
- ---------------------------------------------------------------------
5.87% 04/19/00 53,417 52,990,213
- ---------------------------------------------------------------------
588,686,100
- ---------------------------------------------------------------------
ASSET-BACKED SECURITIES-CONSUMER RECEIVABLES - 3.21%
Old Line Funding Corp.
5.75% 03/23/00 42,921 42,770,180
- ---------------------------------------------------------------------
5.86% 04/17/00 68,939 68,411,578
- ---------------------------------------------------------------------
5.89% 04/24/00 49,803 49,362,990
- ---------------------------------------------------------------------
5.89% 04/25/00 44,430 44,030,192
- ---------------------------------------------------------------------
5.88% 04/27/00 99,450 98,524,120
- ---------------------------------------------------------------------
Riverwood Funding Corp.
5.85% 04/04/00 54,487 54,185,959
- ---------------------------------------------------------------------
5.85% 04/10/00 50,000 49,675,000
- ---------------------------------------------------------------------
Thunder Bay Funding Corp.
5.90% 04/25/00 64,812 64,227,792
- ---------------------------------------------------------------------
471,187,811
- ---------------------------------------------------------------------
</TABLE>
4
<PAGE>
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE
<S> <C> <C> <C>
ASSET-BACKED SECURITIES-MULTI-PURPOSE - 24.48%
Aspen Funding Corp.
5.79% 03/17/00 $ 75,000 $ 74,807,000
- --------------------------------------------------------------------------
5.76% 03/23/00 45,000 44,841,600
- --------------------------------------------------------------------------
Barton Capital Corp.
5.85% 04/04/00 83,896 83,432,475
- --------------------------------------------------------------------------
5.85% 04/05/00 26,643 26,491,468
- --------------------------------------------------------------------------
5.85% 04/06/00 130,825 130,059,674
- --------------------------------------------------------------------------
5.85% 04/07/00 69,775 69,355,478
- --------------------------------------------------------------------------
5.85% 04/10/00 82,697 82,159,469
- --------------------------------------------------------------------------
5.87% 04/18/00 75,000 74,413,000
- --------------------------------------------------------------------------
5.89% 04/19/00 100,000 99,198,306
- --------------------------------------------------------------------------
5.87% 04/20/00 100,000 99,184,722
- --------------------------------------------------------------------------
Clipper Receivables Corp.
5.75% 03/07/00 50,000 49,952,083
- --------------------------------------------------------------------------
5.75% 03/08/00 50,000 49,944,097
- --------------------------------------------------------------------------
5.75% 03/15/00 50,000 49,888,194
- --------------------------------------------------------------------------
5.85% 04/07/00 44,461 44,193,678
- --------------------------------------------------------------------------
5.85% 04/10/00 50,000 49,675,000
- --------------------------------------------------------------------------
Corporate Receivables Corp.
5.75% 03/13/00 50,000 49,904,167
- --------------------------------------------------------------------------
5.75% 03/21/00 75,000 74,760,417
- --------------------------------------------------------------------------
5.85% 04/05/00 50,000 49,715,625
- --------------------------------------------------------------------------
5.85% 04/06/00 50,000 49,707,500
- --------------------------------------------------------------------------
5.85% 04/11/00 50,000 49,666,875
- --------------------------------------------------------------------------
5.86% 04/18/00 50,000 49,609,333
- --------------------------------------------------------------------------
Edison Asset Securitization, L.L.C.
5.77% 03/08/00 105,157 105,039,020
- --------------------------------------------------------------------------
5.78% 03/17/00 100,000 99,743,111
- --------------------------------------------------------------------------
5.75% 03/21/00 75,000 74,760,417
- --------------------------------------------------------------------------
5.84% 04/10/00 44,913 44,621,565
- --------------------------------------------------------------------------
5.85% 04/14/00 66,870 66,391,880
- --------------------------------------------------------------------------
5.85% 04/18/00 100,000 99,220,000
- --------------------------------------------------------------------------
5.89% 04/24/00 65,058 64,483,213
- --------------------------------------------------------------------------
5.88% 04/27/00 72,087 71,415,870
- --------------------------------------------------------------------------
Enterprise Funding Corp.
5.87% 04/24/00 119,121 118,072,140
- --------------------------------------------------------------------------
</TABLE>
5
<PAGE>
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE
<S> <C> <C> <C>
ASSET-BACKED SECURITIES-MULTI-PURPOSE - (CONTINUED)
Falcon Asset Securitization Corp.
5.75% 03/01/00 $100,000 $ 100,000,000
- --------------------------------------------------------------------------
5.85% 04/10/00 60,475 60,081,913
- --------------------------------------------------------------------------
5.88% 04/11/00 103,243 102,551,616
- --------------------------------------------------------------------------
Mont Blanc Capital Corp.
5.80% 03/15/00 39,698 39,608,459
- --------------------------------------------------------------------------
5.87% 04/04/00 32,843 32,660,922
- --------------------------------------------------------------------------
Monte Rosa Capital Corp.
5.80% 03/20/00 36,618 36,505,908
- --------------------------------------------------------------------------
5.78% 03/20/00 36,621 36,509,286
- --------------------------------------------------------------------------
5.86% 04/17/00 27,317 27,108,010
- --------------------------------------------------------------------------
Newport Funding Corp.
5.74% 03/07/00 50,000 49,952,167
- --------------------------------------------------------------------------
5.76% 03/23/00 50,000 49,824,000
- --------------------------------------------------------------------------
5.88% 04/28/00 100,000 99,052,667
- --------------------------------------------------------------------------
Preferred Receivables Funding Corp.
5.75% 03/01/00 50,000 50,000,000
- --------------------------------------------------------------------------
5.78% 03/27/00 63,690 63,424,130
- --------------------------------------------------------------------------
5.87% 04/17/00 38,250 37,956,867
- --------------------------------------------------------------------------
5.87% 04/18/00 51,250 50,848,883
- --------------------------------------------------------------------------
5.88% 04/27/00 100,000 99,069,000
- --------------------------------------------------------------------------
Quincy Capital Corp.
5.80% 03/28/00 69,425 69,123,001
- --------------------------------------------------------------------------
5.85% 04/05/00 124,608 123,899,292
- --------------------------------------------------------------------------
5.85% 04/12/00 31,711 31,494,572
- --------------------------------------------------------------------------
Receivables Capital Corp.
5.75% 03/22/00 61,994 61,786,062
- --------------------------------------------------------------------------
5.82% 03/28/00 45,586 45,387,017
- --------------------------------------------------------------------------
5.85% 04/07/00 70,649 70,224,223
- --------------------------------------------------------------------------
Sheffield Receivables Corp.
5.82% 03/17/00 49,800 49,671,184
- --------------------------------------------------------------------------
5.80% 03/28/00 50,000 49,782,500
- --------------------------------------------------------------------------
5.85% 04/14/00 25,000 24,821,250
- --------------------------------------------------------------------------
5.88% 04/25/00 40,900 40,532,582
- --------------------------------------------------------------------------
3,596,582,888
- --------------------------------------------------------------------------
</TABLE>
6
<PAGE>
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE
<S> <C> <C> <C>
ASSET-BACKED SECURITIES-TRADE RECEIVABLES - 11.30%
Asset Securitization Cooperative Corp.
5.74% 03/22/00 $ 65,000 $ 64,782,358
- ------------------------------------------------------------------------------
5.74% 03/24/00 35,000 34,871,647
- ------------------------------------------------------------------------------
5.80% 03/28/00 50,000 49,782,500
- ------------------------------------------------------------------------------
5.82% 03/29/00 100,000 99,547,333
- ------------------------------------------------------------------------------
5.85% 04/12/00 100,000 99,317,500
- ------------------------------------------------------------------------------
5.87% 04/19/00 75,000 74,400,771
- ------------------------------------------------------------------------------
Blue Ridge Asset Funding Corp.
5.86% 04/10/00 50,000 49,674,444
- ------------------------------------------------------------------------------
5.87% 04/19/00 31,294 31,043,970
- ------------------------------------------------------------------------------
5.87% 04/21/00 50,000 49,584,208
- ------------------------------------------------------------------------------
Corporate Asset Funding Co., Inc.
5.75% 03/16/00 75,000 74,820,312
- ------------------------------------------------------------------------------
5.77% 03/16/00 100,000 99,759,583
- ------------------------------------------------------------------------------
5.75% 03/21/00 50,000 49,840,278
- ------------------------------------------------------------------------------
Delaware Funding Corp.
5.75% 03/16/00 50,000 49,880,208
- ------------------------------------------------------------------------------
5.75% 03/17/00 60,680 60,524,929
- ------------------------------------------------------------------------------
5.75% 03/21/00 44,930 44,786,474
- ------------------------------------------------------------------------------
5.75% 03/23/00 37,885 37,751,876
- ------------------------------------------------------------------------------
5.83% 03/31/00 60,594 60,299,614
- ------------------------------------------------------------------------------
5.88% 04/25/00 80,799 80,073,156
- ------------------------------------------------------------------------------
Variable Funding Capital Corp.
5.75% 03/02/00 200,000 199,968,055
- ------------------------------------------------------------------------------
5.75% 03/10/00 100,000 99,856,250
- ------------------------------------------------------------------------------
5.78% 03/16/00 50,000 49,879,583
- ------------------------------------------------------------------------------
5.75% 03/20/00 50,000 49,848,264
- ------------------------------------------------------------------------------
5.75% 03/23/00 50,000 49,824,306
- ------------------------------------------------------------------------------
5.87% 04/26/00 100,000 99,086,889
- ------------------------------------------------------------------------------
1,659,204,508
- ------------------------------------------------------------------------------
BANKING - 2.65%
Banc One Financial Corp.
5.78% 03/15/00 100,000 99,775,222
- ------------------------------------------------------------------------------
Citicorp
5.80% 03/29/00 50,000 49,774,444
- ------------------------------------------------------------------------------
5.84% 03/29/00 50,000 49,772,889
- ------------------------------------------------------------------------------
5.80% 03/30/00 50,000 49,766,389
- ------------------------------------------------------------------------------
</TABLE>
7
<PAGE>
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE
<S> <C> <C> <C>
BANKING - (CONTINUED)
Wells Fargo & Co.
5.69% 03/14/00 $ 90,500 $ 90,314,048
- ----------------------------------------------------------------------
5.82% 04/13/00 50,000 49,652,417
- ----------------------------------------------------------------------
389,055,409
- ----------------------------------------------------------------------
BROKERAGE/INVESTMENTS - 7.28%
Bear, Stearns & Co., Inc.
5.73% 03/15/00 50,000 49,888,583
- ----------------------------------------------------------------------
Credit Suisse First Boston Corp.
5.72% 03/03/00 100,000 99,968,222
- ----------------------------------------------------------------------
5.84% 04/18/00 50,000 49,610,667
- ----------------------------------------------------------------------
Goldman Sachs & Co.
5.75% 03/22/00 100,000 99,664,584
- ----------------------------------------------------------------------
5.85% 04/06/00 100,000 99,415,000
- ----------------------------------------------------------------------
Merrill Lynch & Co., Inc.
5.85% 04/03/00 75,000 74,597,812
- ----------------------------------------------------------------------
5.86% 04/17/00 50,000 49,617,472
- ----------------------------------------------------------------------
Morgan Stanley Dean Witter & Co.
5.71% 03/15/00 50,000 49,888,972
- ----------------------------------------------------------------------
5.86% 04/20/00 100,000 99,186,111
- ----------------------------------------------------------------------
Salomon Smith Barney Holdings, Inc.
5.73% 03/22/00 75,000 74,749,312
- ----------------------------------------------------------------------
5.74% 03/23/00 50,000 49,824,611
- ----------------------------------------------------------------------
5.74% 03/24/00 50,000 49,816,639
- ----------------------------------------------------------------------
5.83% 04/03/00 100,000 99,465,583
- ----------------------------------------------------------------------
5.85% 04/07/00 50,000 49,699,375
- ----------------------------------------------------------------------
5.87% 04/28/00 75,000 74,290,708
- ----------------------------------------------------------------------
1,069,683,651
- ----------------------------------------------------------------------
CONSUMER FINANCE - 2.88%
Household Finance Corp.
5.65% 03/07/00 75,000 74,929,375
- ----------------------------------------------------------------------
5.68% 03/08/00 100,000 99,889,556
- ----------------------------------------------------------------------
IBM Credit Corp.
5.71% 03/10/00 75,000 74,892,937
- ----------------------------------------------------------------------
5.77% 03/31/00 100,000 99,519,167
- ----------------------------------------------------------------------
5.80% 04/14/00 75,000 74,468,333
- ----------------------------------------------------------------------
423,699,368
- ----------------------------------------------------------------------
</TABLE>
8
<PAGE>
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE
<S> <C> <C> <C>
FINANCIAL (DIVERSIFIED) - 11.59%
Associates First Capital Corp.
5.67% 03/08/00 $ 30,000 $ 29,966,925
- --------------------------------------------------------------------------
5.67% 03/09/00 35,000 34,955,900
- --------------------------------------------------------------------------
5.74% 03/27/00 75,000 74,689,083
- --------------------------------------------------------------------------
5.84% 03/30/00 50,000 49,764,778
- --------------------------------------------------------------------------
5.84% 03/31/00 50,000 49,756,667
- --------------------------------------------------------------------------
5.83% 04/04/00 50,000 49,724,694
- --------------------------------------------------------------------------
5.83% 04/14/00 50,000 49,643,722
- --------------------------------------------------------------------------
BellSouth Capital Funding Corp.
5.80% 04/05/00 100,000 99,436,111
- --------------------------------------------------------------------------
CIT Group Inc.
5.68% 03/09/00 100,000 99,873,778
- --------------------------------------------------------------------------
5.86% 04/24/00 100,000 99,121,000
- --------------------------------------------------------------------------
Deutsche Bank Financial Inc.
5.76% 03/20/00 100,000 99,696,000
- --------------------------------------------------------------------------
5.76% 03/24/00 100,000 99,632,000
- --------------------------------------------------------------------------
5.77% 03/27/00 100,000 99,583,278
- --------------------------------------------------------------------------
Dresdner U.S.Finance, Inc.
5.73% 03/03/00 100,000 99,968,167
- --------------------------------------------------------------------------
Ford Motor Credit Co.
5.63% 03/07/00 50,000 49,953,083
- --------------------------------------------------------------------------
5.70% 03/21/00 50,000 49,841,667
- --------------------------------------------------------------------------
5.85% 04/28/00 75,000 74,293,125
- --------------------------------------------------------------------------
General Electric Capital Services, Inc.
5.83% 04/13/00 100,000 99,303,639
- --------------------------------------------------------------------------
General Motors Acceptance Corp.
5.83% 04/11/00 100,000 99,336,028
- --------------------------------------------------------------------------
International Lease Finance Corp.
5.65% 03/13/00 40,000 39,924,667
- --------------------------------------------------------------------------
5.78% 03/29/00 35,000 34,842,656
- --------------------------------------------------------------------------
5.78% 03/30/00 35,000 34,837,036
- --------------------------------------------------------------------------
5.80% 04/06/00 50,000 49,710,000
- --------------------------------------------------------------------------
Toyota Motor Credit Corp.
5.66% 03/14/00 60,000 59,877,367
- --------------------------------------------------------------------------
UBS Finance (Delaware), Inc.
5.71% 03/06/00 75,000 74,940,521
- --------------------------------------------------------------------------
1,702,671,892
- --------------------------------------------------------------------------
</TABLE>
9
<PAGE>
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE
<S> <C> <C> <C>
INSURANCE (LIFE) - 0.68%
Prudential Funding Corp.
5.68% 03/08/00 $100,000 $ 99,889,556
- ---------------------------------------------------------------------------
PERSONAL CREDIT - 0.51%
American Express Credit Corp.
5.63% 03/07/00 75,000 74,929,625
- ---------------------------------------------------------------------------
Total Financial 10,075,590,808
- ---------------------------------------------------------------------------
UTILITIES - 3.22%
TELEPHONE - 3.22%
American Telephone and Telegraph Co.
5.65% 03/02/00 100,000 99,984,305
- ---------------------------------------------------------------------------
5.66% 03/03/00 50,000 49,984,278
- ---------------------------------------------------------------------------
5.68% 03/09/00 75,000 74,905,333
- ---------------------------------------------------------------------------
5.75% 03/10/00 100,000 99,856,250
- ---------------------------------------------------------------------------
BellSouth Telecommunications, Inc.
5.80% 04/11/00 48,400 48,080,291
- ---------------------------------------------------------------------------
SBC Communications, Inc.
5.82% 03/30/00 100,000 99,531,167
- ---------------------------------------------------------------------------
Total Utilities 472,341,624
- ---------------------------------------------------------------------------
Total Commercial Paper (Cost -
$11,543,902,843) 11,543,902,843
- ---------------------------------------------------------------------------
MASTER NOTE AGREEMENT - 2.12%
Merrill Lynch Mortgage Capital, Inc.
6.20%(b) (Cost - $311,200,000) 08/17/00 311,200 311,200,000
- ---------------------------------------------------------------------------
CERTIFICATE OF DEPOSIT - 0.51%
First Union National Bank Corp.
5.80% (Cost - $75,000,000) 03/21/00 75,000 75,000,000
- ---------------------------------------------------------------------------
Total Investments (excluding Repurchase
Agreements) 11,930,102,843
- ---------------------------------------------------------------------------
REPURCHASE AGREEMENTS - 19.21%(c)
Bank of America Securities, Inc.
5.86%(d) 03/01/00 150,500 150,500,000
- ---------------------------------------------------------------------------
5.87%(e) 03/01/00 655,880 655,880,419
- ---------------------------------------------------------------------------
Bear, Stearns & Co., Inc.
5.87%(f) -- 500,000 500,000,000
- ---------------------------------------------------------------------------
Chase Securites, Inc.
5.86%(g) 03/01/00 130,000 130,000,000
- ---------------------------------------------------------------------------
First Union Capital Markets
5.87%(h) 03/01/00 447,882 447,882,701
- ---------------------------------------------------------------------------
</TABLE>
10
<PAGE>
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE
<S> <C> <C> <C>
REPURCHASE AGREEMENTS - (continued)
Goldman, Sachs & Co.
5.87%(i) 03/01/00 $300,000 $ 300,000,000
- ---------------------------------------------------------------------------
Societe Generale Cowen Securities Corp.
5.87%(j) 03/01/00 87,204 87,204,708
- ---------------------------------------------------------------------------
Warburg Dillon Read LLC
5.87%(k) 03/01/00 550,000 550,000,000
- ---------------------------------------------------------------------------
Total Repurchase Agreements (Cost -
$2,821,467,828) 2,821,467,828
- ---------------------------------------------------------------------------
TOTAL INVESTMENTS - 100.43% (Cost -
$14,751,570,671)(l) 14,751,570,671
- ---------------------------------------------------------------------------
OTHER LIABILITIES LESS ASSETS - (0.43%) (62,993,133)
- ---------------------------------------------------------------------------
NET ASSETS - 100% $14,688,577,538
===========================================================================
</TABLE>
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) The Fund may demand prepayment of notes purchased under the Master Note
Purchase Agreement upon one business day's notice. Interest rates on master
notes are redetermined periodically. Rate shown is the rate in effect on
02/29/00.
(c) 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.
(d) Joint repurchase agreement entered into 02/29/00 with a maturing value of
$500,081,389. Collateralized by $611,791,640 U.S. Government obligations,
5.50% to 6.00% due 10/01/13 to 01/01/14 with an aggregate market value at
02/29/00 of $510,000,000.
(e) 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.
(f) Open repurchase agreement entered into 12/21/99; however, either party may
terminate the agreement upon demand. Interests rates, par and collateral
are redetermined daily. Collateralized by $518,700,000 U.S. Government
obligations, 0% to 7.00% due 01/21/00 to 09/14/09 with an aggregate market
value at 02/29/00 of $510,018,009.
(g) Joint repurchase agreement entered into 02/29/00 with a maturing value of
$200,032,556. Collateralized by $262,530,613 U.S. Government obligations,
5.50% to 9.50% due 02/01/02 to 02/01/30 with an aggregate market value at
02/29/00 of $204,004,059.
(h) Joint repurchase agreement entered into 02/29/00 with a maturing value of
$450,073,375. Collateralized by $494,116,268 U.S. Government obligations,
0% to 5.50% due 07/01/14 to 02/01/30 with an aggregate market value at
02/29/00 of $459,000,000.
(i) 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.
(j) Joint repurchase agreement entered into 02/29/00 with a maturing value of
$200,032,611. Collateralized by $408,920,728 U.S. Government obligations,
5.858% to 5.92% due 10/01/32 to 04/01/34 with an aggregate market value at
02/29/00 of $207,110,166.
(k) Repurchase agreement entered into 02/29/00 with a maturing value of
$550,089,681. Collateralized by $673,981,545 U.S. Government obligations,
0% to 10.50% due 04/13/00 to 01/15/33 with an aggregate market value at
02/29/00 of $561,001,427.
(l) Also represents cost for federal income tax purposes.
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) $11,930,102,843
- -------------------------------------------------------------------------
Repurchase agreements 2,821,467,828
- -------------------------------------------------------------------------
Interest receivable 2,443,397
- -------------------------------------------------------------------------
Investment for deferred compensation plan 160,975
- -------------------------------------------------------------------------
Other assets 438,961
- -------------------------------------------------------------------------
Total assets 14,754,614,004
- -------------------------------------------------------------------------
LIABILITIES:
Payables for:
Dividends 63,767,778
- -------------------------------------------------------------------------
Deferred compensation 160,975
- -------------------------------------------------------------------------
Accrued administrative services fees 44,369
- -------------------------------------------------------------------------
Accrued advisory fees 596,118
- -------------------------------------------------------------------------
Accrued distribution fees 409,959
- -------------------------------------------------------------------------
Accrued transfer agent fees 185,005
- -------------------------------------------------------------------------
Accrued operating expenses 872,262
- -------------------------------------------------------------------------
Total liabilities 66,036,466
- -------------------------------------------------------------------------
NET ASSETS $14,688,577,538
=========================================================================
NET ASSETS:
Institutional Class $11,810,767,167
=========================================================================
Private Investment Class $ 437,812,562
=========================================================================
Personal Investment Class $ 105,275,253
=========================================================================
Cash Management Class $ 1,092,807,547
=========================================================================
Reserve Class $ 113,865,096
- -------------------------------------------------------------------------
Resource Class $ 1,128,049,913
=========================================================================
CAPITAL STOCK, $.001 PAR VALUE PER SHARE:
Institutional Class 11,810,767,330
=========================================================================
Private Investment Class 437,812,697
=========================================================================
Personal Investment Class 105,275,283
=========================================================================
Cash Management Class 1,092,807,397
=========================================================================
Reserve Class 113,865,106
=========================================================================
Resource Class 1,128,056,063
=========================================================================
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 $378,976,908
- -------------------------------------------------------------------
EXPENSES:
Advisory fees 3,570,567
- -------------------------------------------------------------------
Custodian fees 570,883
- -------------------------------------------------------------------
Administrative services fees 267,131
- -------------------------------------------------------------------
Directors' fees 27,865
- -------------------------------------------------------------------
Transfer agent fees 1,100,089
- -------------------------------------------------------------------
Distribution fees (see Note 2) 3,205,019
- -------------------------------------------------------------------
Other 584,346
- -------------------------------------------------------------------
Total expenses 9,325,900
- -------------------------------------------------------------------
Less: Fee waivers (885,550)
- -------------------------------------------------------------------
Net expenses 8,440,350
- -------------------------------------------------------------------
Net investment income 370,536,558
- -------------------------------------------------------------------
Net increase in net assets resulting from operations $370,536,558
===================================================================
</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 $ 370,536,558 $ 476,740,526
- -----------------------------------------------------------------------------
Net increase in net assets resulting from
operations 370,536,558 476,740,526
- -----------------------------------------------------------------------------
Distributions to shareholders from net
investment income:
Institutional Class (304,572,178) (364,347,968)
- -----------------------------------------------------------------------------
Private Investment Class (10,305,434) (18,159,703)
- -----------------------------------------------------------------------------
Personal Investment Class (2,372,732) (6,869,222)
- -----------------------------------------------------------------------------
Cash Management Class (30,748,987) (57,786,622)
- -----------------------------------------------------------------------------
Reserve Class (2,620,446) (1,195,139)
- -----------------------------------------------------------------------------
Resource Class (19,916,781) (28,381,872)
- -----------------------------------------------------------------------------
Capital stock transactions-net (see Note 4) 5,964,352,847 884,926,848
- -----------------------------------------------------------------------------
Net increase in net assets 5,964,352,847 884,926,848
- -----------------------------------------------------------------------------
NET ASSETS:
Beginning of period 8,724,224,691 7,839,297,843
- -----------------------------------------------------------------------------
End of period $14,688,577,538 $8,724,224,691
=============================================================================
NET ASSETS CONSIST OF:
Capital (par value and additional paid-in) $14,688,583,876 $8,724,231,029
- -----------------------------------------------------------------------------
Undistributed net realized gain (loss) on
sale of investments (6,338) (6,338)
- -----------------------------------------------------------------------------
$14,688,577,538 $8,724,224,691
=============================================================================
</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 Prime 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 Private Investment Class, the Personal
Investment Class, the Cash Management Class, the Reserve Class and the Resource
Class. 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 the 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 calculated
by applying a monthly rate, based upon the following annual rates, to the
average daily net assets of the Portfolio:
<TABLE>
<CAPTION>
Net Assets RATE
- ----------------------------------------
<S> <C>
First $100 million 0.20%
- ----------------------------------------
Over $100 million to $200 million 0.15%
- ----------------------------------------
Over $200 million to $300 million 0.10%
- ----------------------------------------
Over $300 million to $1.5 billion 0.06%
- ----------------------------------------
Over $1.5 billion 0.05%
- ----------------------------------------
</TABLE>
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 $267,131 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 $1,008,514 for such services.
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
15
<PAGE>
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 Reserve Class, and the Resource Class paid
$592,086, $235,917, $452,772, $594,035, and $444,659, respectively, as
compensation under the Plan. FMC waived fees of $885,550 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 Portfolio paid legal fees
of $6,546 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.
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 64,721,197,490 $ 64,721,197,490 109,937,908,800 $ 109,937,908,800
- ------------------------------------------------------------------------------------------------
Private Investment
Class 1,281,174,582 1,281,174,582 3,170,645,036 3,170,645,036
- ------------------------------------------------------------------------------------------------
Personal Investment
Class 581,309,133 581,309,133 1,878,724,152 1,878,724,152
- ------------------------------------------------------------------------------------------------
Cash Management Class 6,006,962,623 6,006,962,623 12,368,423,760 12,368,423,760
- ------------------------------------------------------------------------------------------------
Reserve Class* 569,297,569 569,297,569 427,972,822 427,972,822
- ------------------------------------------------------------------------------------------------
Resource Class 3,304,240,415 3,304,240,415 4,803,364,271 4,803,364,271
- ------------------------------------------------------------------------------------------------
Issued as reinvestment
of dividends:
Institutional Class 25,229,488 25,229,488 27,367,341 27,367,341
- ------------------------------------------------------------------------------------------------
Private Investment
Class 5,657,322 5,657,322 9,729,854 9,729,854
- ------------------------------------------------------------------------------------------------
Personal Investment
Class 2,212,188 2,212,188 7,060,491 7,060,491
- ------------------------------------------------------------------------------------------------
Cash Management Class 21,677,507 21,677,507 43,017,293 43,017,293
- ------------------------------------------------------------------------------------------------
Reserve Class* 2,596,970 2,596,970 763,247 763,247
- ------------------------------------------------------------------------------------------------
Resource Class 18,074,764 18,074,764 24,478,821 24,478,821
- ------------------------------------------------------------------------------------------------
Reacquired:
Institutional Class (59,145,722,351) (59,145,722,351) (109,599,031,637) (109,599,031,637)
- ------------------------------------------------------------------------------------------------
Private Investment
Class (1,233,913,435) (1,233,913,435) (3,090,291,929) (3,090,291,929)
- ------------------------------------------------------------------------------------------------
Personal Investment
Class (565,999,618) (565,999,618) (1,938,117,905) (1,938,117,905)
- ------------------------------------------------------------------------------------------------
Cash Management Class (6,189,631,742) (6,189,631,742) (12,019,849,792) (12,019,849,792)
- ------------------------------------------------------------------------------------------------
Reserve Class* (579,812,157) (579,812,157) (306,953,345) (306,953,345)
- ------------------------------------------------------------------------------------------------
Resource Class (2,860,197,901) (2,860,197,901) (4,860,284,432) (4,860,284,432)
- ------------------------------------------------------------------------------------------------
Net increase $ 5,964,352,847 $ 5,964,352,847 884,926,848 $ 884,926,848
================================================================================================
</TABLE>
* The Reserve Class commenced sales on January 4, 1999.
16
<PAGE>
NOTE 5-FINANCIAL HIGHLIGHTS
Shown below are the financial highlights for a share of the Cash Management
Class capital stock outstanding during the six months ended February 29, 2000
and each of the years in the five-year period ended August 31, 1999.
<TABLE>
<CAPTION>
AUGUST 31,
FEBRUARY 29, --------------------------------------------------
2000 1999 1998 1997 1996 1995
------------ ---------- -------- -------- -------- --------
<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 0.03 0.05 0.05 0.05 0.05 0.06
- ----------------------- ---------- ---------- -------- -------- -------- --------
Less distributions:
Dividends from net
investment income (0.03) (0.05) (0.05) (0.05) (0.05) (0.06)
- ----------------------- ---------- ---------- -------- -------- -------- --------
Net asset value, end of
period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======================= ========== ========== ======== ======== ======== ========
Total return(a) 2.74% 5.07% 5.62% 5.45% 5.55% 5.71%
======================= ========== ========== ======== ======== ======== ========
Ratios/supplemental
data:
Net assets, end of
period (000s omitted) $1,092,808 $1,253,799 $862,207 $767,304 $507,247 $194,479
======================= ========== ========== ======== ======== ======== ========
Ratio of expenses to
average net assets:
Including fee waivers
and/or expense
reimbursements 0.17%(b) 0.17% 0.17% 0.17% 0.17% 0.17%
======================= ========== ========== ======== ======== ======== ========
Excluding fee waivers
and/or expense
reimbursements 0.19%(b) 0.19% 0.19% 0.19% 0.19% 0.32%
======================= ========== ========== ======== ======== ======== ========
Ratio of net investment
income to average net
assets 5.47%(b) 4.94% 5.48% 5.33% 5.38% 5.69%
======================= ========== ========== ======== ======== ======== ========
</TABLE>
(a) Not annualized for periods less than one year.
(b) Ratios are annualized and based on average net assets of $1,138,148,862.
17
<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 Prime
Karen Dunn Kelley Vice President Portfolio
J. Abbott Sprague Vice President -------------------------------------------------
Mary J. Benson Assistant Vice President & Assistant Treasurer Cash SEMI-
Sheri Morris Assistant Vice President & Assistant Treasurer Management ANNUAL
Renee A. Friedli Assistant Secretary Class 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>
PRM-SAR-4
