UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-05328
--------------

CIM High Yield Securities
---------------------------------------------------
(Exact name of registrant as specified in charter)

400 W. Market Street, Suite 3300
Louisville, KY 40202
---------------------------------------------------
(Address of principal executive offices) (Zip code)

Cindy Cameron
INVESCO Institutional, (N.A.) Inc.
400 W. Market Street, Suite 3300
Louisville, KY 40202
---------------------------------------------------
(Name and address of agent for service)

registrant's telephone number, including area code: 502-561-3210
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Date of fiscal year end: December 31
------------

Date of reporting period: December 31, 2004
------------------

ITEM 1. REPORTS TO STOCKHOLDERS.

A copy of the report transmitted to shareholders pursuant to Rule 30e-1 under
the Investment Company Act of 1940 is as follows:

CIM
- --------------------------------------------------------------------------------

HIGH YIELD SECURITIES

Annual Report
December 31, 2004

[GRAPHIC OMITTED] INVESCO

CIM HIGH YIELD SECURITIES - 2004 ANNUAL REPORT

We are pleased to provide this annual report for CIM High Yield Securities
(the "Fund") as of December 31, 2004. The following pages contain a listing of
the Fund's holdings as well as the financial statements for the year.

MARKET REVIEW

High Yield markets ended the year much as they had most months in 2004:
positively performing in almost all sectors and ratings classes. The JPM Global
High Yield index returned 1.37% in December, bringing YTD totals to an
astounding 13.8% -- a figure that few experts were predicting at the beginning
of the year.

This performance drove spreads dramatically tighter after a brief pause in
April/May to end the year at 3.5bps. Along with decreased yields of the 5 and 10
year Treasury, these spreads have now reached near-historic lows.

Calendar year 2004 also saw a record pace of new issuance with 583 issues
coming to market representing $158.2 billion. It's remarkable that the market
was able to absorb such a large pace of new issuance in 2004 and still perform
as well as it did. This fact speaks to the huge level of assets searching for
yield and coming to the market. However, those assets did not come from US
retail investors: US High Yield mutual fund flows were flat on the year and
negative in December. The mixed amount of assets that have flowed to US High
Yield mutual funds speaks to the nature of new High Yield assets in 2004 --
while flows were heavy, they were not coming from the US retail investor, but
from global sources including most notably, Asia.

During calendar year 2004 the Fund's return at net asset value was 11.19%,
versus an average return of 17.06% for its peer group (Lipper High Current Yield
Leverage Funds). Considering our consevative approach, we were pleased to have
participated in the broad-based market rally of 2004 to the extent that we did.
As High Yield spreads grind lower, we are cognizant that the market has reached
territory of record lows. We have concluded that the portfolio's strategy for
2005 will be more neutral toward ratings classes, with a redoubled effort on
individual credit analysis. The environment we are about to enter will favor our
ability to distinguish between winners and losers in our credit universe.

OUTLOOK

The 12 month rolling default rate is now at 2.9% and projected to decrease
for the next 5 months. It should also be noted that the ratio of corporations
being upgraded to those downgraded is positive: that is, S&P and Moody's are
upgrading more companies than they are downgrading. We also track cash levels,
which through re-financings and deleveraging are at record highs. Finally, the
stocks of companies that use high yield on their balance sheets have also
improved. We consider this a leading indicator of future bond performance.

We believe the High Yield market will continue to outperform government
and investment grade bonds as low yields and excellent credit conditions push
investors into spread products. The search for yield will likely continue to
drive spreads down further in the coming one to two months, but not forever. As
spreads grind lower, we are cognizant that the market is in record low
spread-level territory. We believe that because of excellent credit
fundamentals, the lower duration of the High Yield asset class, and higher
coupons, we should be able to weather a UST shock and end the year in positive
performing territory.

INVESCO Institutional (N.A.) Inc.

INVESCO PRIVACY NOTICE

At INVESCO 1, we recognize that you have entrusted with us your personal and
financial data and we recognize our obligation to keep this information secure.
Maintaining your privacy is important to us and we have established a policy to
maintain the privacy of the information you share with us.

PERSONAL INFORMATION WE COLLECT

In the normal course of serving clients, we collect personal information about
you, which may include:

o Information we receive from you (such as your name and address) from
your account application, investment management agreement or other
documents you may deliver to us.

o Information about your investment transactions with us.

PERSONAL INFORMATION WE MAY DISCLOSE

We do not sell any information to any third parties. However, we occasionally
disclose nonpublic personal information about you to affiliates and
non-affiliates only as permitted by law or regulation. Specifically, we may
disclose nonpublic personal information including:

o Information to service providers in order to process your account
transactions.

o Your name and address to companies that assist us with mailing
statements to you.

o Information in connection with legal proceedings, such as responding to
a subpoena.

The organizations that receive client information act on our behalf and use the
information only to provide the services that we have asked them to perform for
you and us. As emphasized above, we do not provide client or former client
information including names, addresses, or client lists to outside companies
except in furtherance of our business relationship with you, or as otherwise
permitted by law.

Access to nonpublic personal information is restricted to employees who need to
access that information to provide products or services to clients. To guard our
clients' nonpublic personal information, physical, electronic, and procedural
safeguards are in place that comply with federal standards. A client's right to
privacy extends to all forms of contact with us, including telephone, written
correspondence, and electronic media.

We consider privacy a fundamental right of clients and take seriously the
obligation to safeguard client information. We will adhere to the policies and
practices above for both current and former clients.

1 This Privacy Notice applies to members of INVESCO Institutional (N.A.), Inc.
of AMVESCAP PLC's family of investment adviser subsidiaries: INVESCO
Institutional (N.A.), Inc., INVESCO Private Capital, Inc., INVESCO Senior
Secured Management, Inc., and INVESCO Global Asset Management (N.A.), Inc.

CIM HIGH YIELD FUND
PORTFOLIO SUMMARY (% OF TOTAL INVESTMENTS)
DECEMBER 31, 2004
(UNAUDITED)

CORPORATE BONDS AND NOTES
Lodging and Casinos .................................. 7.0%
Utilities ............................................ 6.3%
Wireless Communications .............................. 6.0%
Cable and Satellite Television ....................... 5.5%
Wireline ............................................. 5.5%
Chemicals and Plastics ............................... 5.4%
Publishing & Printing ................................ 4.9%
Industrial Machinery/Components ...................... 4.7%
Consumer Products .................................... 3.9%
Building and Development ............................. 3.9%
Financial Intermediaries ............................. 3.6%
Oil and Gas .......................................... 3.4%
Food/Drug Retailers .................................. 3.2%
Pipe Lines/Ex Natural Gas ............................ 3.2%
Health Care .......................................... 3.0%
Auto Parts & Accessories ............................. 2.9%
Containers/Packaging ................................. 2.9%
Paper & Forest Products .............................. 2.3%
Leisure Goods, Activities, Movie ..................... 1.6%
Broadcasting ......................................... 1.5%
Office/Business Equipment ............................ 1.3%
Ecological Services and Equipment .................... 1.2%
Electronics/Electric ................................. 1.2%
Food Service ......................................... 1.1%
Aerospace/Defense .................................... 1.0%
Steel ................................................ 0.9%
Airlines ............................................. 0.8%
Retail ............................................... 0.8%
Equipment Leasing .................................... 0.7%
Software/services .................................... 0.6%
Agricultural Production - Crops ...................... 0.6%
Personal Services .................................... 0.6%
Marine Transportation ................................ 0.6%
Property - Casualty Insurance ........................ 0.5%
Insurance ............................................ 0.3%
FOREIGN BONDS ........................................... 2.2%
FOREIGN GOVERNMENT SECURITIES ........................... 1.5%
SHORT TERM OBLIGATIONS .................................. 3.4%
------
TOTAL ................................................... 100.0%
======

CIM HIGH YIELD SECURITIES
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 2004

PRINCIPAL VALUE
AMOUNT (NOTE 1)
- --------- -----------

CORPORATE BONDS AND NOTES -- 120.3%
LODGING AND CASINOS -- 9.1%
$100,000 Aztar Corp., Sr. Sub. Notes, 7.875%, 06/15/14 ...................................... $ 110,750
250,000 Felcor Lodging LP., Sr. Notes, 9.000%, 06/01/11^ ................................... 284,375
275,000 Global Cash Account Finance, Sr. Sub Notes, 8.750%, 03/15/12 ....................... 297,687
100,000 Hard Rock Hotel, Inc., Sr. Notes, 8.875%, 06/01/13 ................................. 111,000
200,000 Host Marriott LP., Sr. Notes, 7.125%, 11/01/13 ..................................... 214,750
200,000 Jacobs Entertainment, Sr. Notes, 11.875%, 02/01/09 ................................. 227,000
175,000 Majestic Star Casino LLC., Sr. Notes, 9.500%, 10/15/10 ............................. 186,375
175,000 OED Corp./Diamond Jo, Sr. Notes, 8.750%, 04/15/12 .................................. 172,375
150,000 Resort International Hotel/Casino, Sr. Notes, 11.500%, 03/15/09 .................... 177,000
175,000 River Rock Entertainment, Sr. Notes, 9.750%, 11/01/11 .............................. 197,094
140,000 Riviera Holdings Corp., Sr. Notes, 11.000%, 06/15/10 ............................... 157,150
225,000 Seneca Gaming Corp., Sr. Notes, 7.250%, 05/01/12 ................................... 237,938
200,000 Wheeling Island Gaming, Sr. Notes, 10.125%, 12/15/09 ............................... 214,000
-----------
2,587,494
-----------
UTILITIES -- 8.1%
200,000 AES Corporation, Sr. Notes, 9.000%, 05/15/15** ..................................... 230,000
104,000 AES Corporation, Sr. Notes, 8.750%, 06/15/08 ....................................... 114,400
300,000 Allegheny Energy Supply, Sr. Notes, 8.250%, 04/15/12**^ ............................ 336,750
150,000 Aquila Inc., Sr. Notes, 9.950%, 02/01/11^ .......................................... 170,625
400,000 Calpine Corp., Sr. Notes, 8.500%, 07/15/10** ....................................... 345,000
200,000 CMS Energy Corp., Sr. Notes, 9.875%, 10/15/07 ...................................... 224,500
75,000 Dynegy Holding, Inc., Sr. Notes, 10.125%, 07/15/13** ............................... 86,250
200,000 Midwest Generation Ll C., Sr. Notes, 8.750%, 05/01/34 .............................. 228,000
350,000 NRG Energy Inc., Sr. Notes, 8.000%, 12/15/13** ..................................... 383,250
75,000 PSEG Energy Holding, Sr. Notes, 10.000%, 10/01/09 .................................. 89,062
100,000 Texas Genco LLC Financing, Sr. Notes, 6.875%, 12/15/14** ........................... 103,875
-----------
2,311,712
-----------
CHEMICALS AND PLASTICS -- 7.0%
275,000 Equistar Chemical Funding, Sr. Notes, 10.625%, 05/01/11 ............................ 320,375
215,000 Huntsman ICI Chemicals Ltd., Sr. Sub. Notes, 10.125%, 07/01/09 ..................... 227,362
75,000 Huntsman International LLC., Sr. Sub. Notes, 7.375%, 01/01/15** .................... 75,562
175,000 Innophos Inc., Sr. Sub. Notes, 8.875%, 08/15/14** .................................. 189,875
350,000 Lyondell Chemical Co., Sr. Sub. Notes, 10.875%, 05/01/09 ........................... 371,875
100,000 Nalco Company, Sr. Sub. Notes, 8.875%, 11/15/13 .................................... 110,250
200,000 Rhodia SA, Sr. Sub. Notes, 8.875%, 06/01/11 ........................................ 202,500
100,000 Rockwood Specialities GRP., Sr. Sub. Notes, 10.625%, 05/15/11 ...................... 115,500
100,000 Rockwood Specialties GRP., Sr. Sub. Notes, 7.500%, 11/15/14** ...................... 104,250
250,000 Sovereign Specialty Chemicals, Sr. Sub. Notes, 11.875%, 03/15/10 ................... 269,063
-----------
1,986,612
-----------

See Notes to Financial Statements.

CIM HIGH YIELD SECURITIES -- (CONTINUED)
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 2004

PRINCIPAL VALUE
AMOUNT (NOTE 1)
- --------- -----------

CORPORATE BONDS AND NOTES -- (CONTINUED)
WIRELESS COMMUNICATIONS -- 7.8%
$250,000 Alamosa Delaware, Inc., Sr. Notes, 8.500%, 01/31/12 ................................ $ 274,375
100,000 American Tower Corp., Sr. Notes, 7.250%, 12/01/11 .................................. 106,500
100,000 American Tower Corp., Sr. Notes., 7.125%, 10/15/12** ............................... 102,750
275,000 Crown Castle International Corp., Sr. Notes, 7.500%, 12/01/13 ...................... 297,000
100,000 IWO Escrow Co., Sr. Notes, 6.320%, 01/15/12**^ ..................................... 101,250
350,000 Nextel Communications, Sr. Notes, 7.375%, 08/01/15 ................................. 386,750
171,000 Nextel Partners, Inc., Sr. Notes, 12.500%, 11/15/09 ................................ 194,512
150,000 Nextel Partners, Inc., Sr. Notes, 8.125%, 07/01/11 ................................. 167,250
250,000 Rogers Wireless, Inc., Sr. Sub. Notes, 8.000%, 12/15/12** .......................... 265,625
150,000 Rural Cellular Corp., Sr. Notes, 9.875%, 02/01/10 .................................. 153,375
150,000 Western Wireless Corp., Sr. Notes, 9.250%, 07/15/13 ................................ 163,875
-----------
2,213,262
-----------
CABLE AND SATELLITE TELEVISION -- 7.1%
250,000 Cablevision Systems Corp., Sr. Notes, 8.000%, 04/15/12** ........................... 268,125
350,000 Charter Communications Holdings II,, 10.250%, 09/15/10 ............................. 372,750
200,000 Charter Communications Holdings, Sr. Notes, 10.750%, 10/01/09 ...................... 183,000
350,000 Charter Communications Holdings, Sr. Notes, 10.250%, 01/15/10 ...................... 308,875
100,000 CSC Holdings, Inc., Sr. Notes, 7.250%, 07/15/08 .................................... 106,000
150,000 GCI Inc., Sr. Notes, 7.250%, 02/15/14 .............................................. 150,750
125,000 Insight Midwest, Sr. Notes, 10.500%, 11/01/10 ...................................... 137,500
150,000 Lodgenet Entertainment, Sr. Sub. Notes, 9.500%, 06/15/13 ........................... 166,500
100,000 Mediacom LLC., Sr. Notes, 9.500%, 01/15/13 ......................................... 100,875
200,000 NTL Cable PLC., Sr. Notes, 8.750%, 04/15/14** ...................................... 226,500
-----------
2,020,875
-----------
WIRELINE -- 7.2%
200,000 AT & T Corp., Sr. Notes, 9.050%, 11/15/11^ ......................................... 231,250
200,000 Cincinnati Bell, Inc., Sr. Sub. Notes, 8.375%, 01/15/14 ............................ 203,500
150,000 Level 3 Communications, Sr. Notes, 11.250%, 03/15/10 ............................... 126,750
175,000 MCI Inc., Sr. Sr. Notes, 8.735%, 05/01/14^ ......................................... 188,562
275,000 Panamsat Corp., 9.000%, 08/15/14** ................................................. 308,344
200,000 Qwest Capital Funding, Sr. Notes, 7.900%, 08/15/10 ................................. 203,000
675,000 Qwest Capital Funding, Sr. Notes, 7.000%, 08/03/09 ................................. 669,938
100,000 Qwest Communications International, Sr. Notes, 7.250%, 02/15/11** .................. 103,000
-----------
2,034,344
-----------

See Notes to Financial Statements.

CIM HIGH YIELD SECURITIES -- (CONTINUED)
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 2004

PRINCIPAL VALUE
AMOUNT (NOTE 1)
- --------- -----------

CORPORATE BONDS AND NOTES -- (CONTINUED)
PUBLISHING & PRINTING -- 6.3%
$100,000 American Media Operation, Sr. Sub. Notes, 8.875%, 01/15/11 ......................... $ 106,875
100,000 American Media Operation, Sr. Sub. Notes, Series B, 10.250%, 05/01/09 .............. 105,875
250,000 Cenveo Corp., Sr. Sub. Notes, 7.875%, 12/01/13 ..................................... 233,750
200,000 Dex Media Inc., Sr. Notes, 8.000%, 11/15/13 ........................................ 217,500
147,000 Dex Media West, Sr. Sub Notes, Series B, 9.875%, 08/15/13 .......................... 170,152
200,000 Houghton Mifflin Co., Sr. Sub. Notes, 9.875%, 02/01/13 ............................. 220,000
100,000 Mail Well I, Corp. (Cenveo Corp.), Sr. Notes, 9.625%, 03/15/12 ..................... 110,250
400,000 Vertis, Inc., Sr. Notes, Series B, 10.875%, 06/15/09 ............................... 436,000
200,000 WDAC Subsidiary Corp., Sr. Notes, 8.375%, 12/01/14** ............................... 198,250
-----------
1,798,652
-----------
INDUSTRIAL MACHINERY/COMPONENTS -- 6.1%
200,000 Case New Holland Inc., Sr. Notes, 9.250%, 08/01/11** ............................... 223,500
50,000 Dresser Rand Group Inc., Sr. Sub. Notes, 7.375%, 11/01/14** ........................ 51,250
150,000 Dresser, Inc., Sr. Sub. Notes, 9.375%, 04/15/11 .................................... 165,000
100,000 JLG Industries, Inc., Sr. Sub Notes, 8.375%, 06/15/12 .............................. 107,500
250,000 Mueller Group Inc., Sr. Sub. Notes, 10.000%, 05/01/12 .............................. 273,750
200,000 Sensus Metering Systems, Sr. Sub. Notes, 8.625%, 12/15/13 .......................... 206,000
150,000 Terex Corp., Sr. Sub. Notes, Series B, 10.375%, 04/01/11 ........................... 168,750
200,000 Trimas Corp. Sr. Sub. Notes, 9.875%, 06/15/12 ...................................... 213,000
300,000 Wesco Distribution, Inc., Sr. Sub. Notes, Series B, 9.125%, 06/01/08 ............... 310,500
-----------
1,719,250
-----------
CONSUMER PRODUCTS -- 5.0%
250,000 Amscan Holdings Inc., Sr. Sub. Notes, 8.750%, 05/01/14 ............................. 251,250
100,000 B&G Foods Holding Corp., Sr. Notes, 8.000%, 10/01/11 ............................... 107,000
175,000 Chattem Inc., Sr. Sub. Notes, 7.000%, 03/01/14 ..................................... 181,125
100,000 Jostens IH Corp., Sr. Sub. Notes, 7.625%, 10/01/12** ............................... 104,500
225,000 Playtex Products, Inc. Sr. Sub Notes, 9.375%, 06/01/11 ............................. 241,312
275,000 Samsonite Corp., Sr. Sub. Notes, 8.875%, 06/01/11 .................................. 299,063
225,000 Sealy Mattress Co., Sr. Sub. Notes, 8.250%, 06/15/14 ............................... 239,625
-----------
1,423,875
-----------
BUILDING AND DEVELOPMENT -- 5.0%
200,000 Associated Materials, Inc., Sr. Sub. Notes, 9.750%, 04/15/12 ....................... 224,500
225,000 Ply Gem Industries Inc., Sr. Sub Notes, 9.000%, 02/15/12 ........................... 229,500
175,000 THL Buildco (Nortek Inc.) Sr. Sub Notes, 8.500%, 09/01/14** ........................ 183,750
200,000 US Concrete Inc., Sr. Sub. Notes, 8.375%, 04/01/14 ................................. 216,500
300,000 WCI Communities, Inc., Sr. Sub. Notes, 9.125%, 05/01/12 ............................ 334,500
200,000 William Lyon Homes, Sr. Notes, 10.750%, 04/01/13 ................................... 225,750
-----------
1,414,500
-----------

See Notes to Financial Statements.

CIM HIGH YIELD SECURITIES -- (CONTINUED)
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 2004

PRINCIPAL VALUE
AMOUNT (NOTE 1)
- --------- -----------

CORPORATE BONDS AND NOTES -- (CONTINUED)
FINANCIAL INTERMEDIARIES -- 4.7%
$350,000 Americredit Corp., Sr. Notes, 9.250%, 05/01/09 ..................................... $ 377,125
250,000 BCP Crystal Holdings, Sr. Sub. Notes, 9.625%, 06/15/14** ........................... 283,125
200,000 Refco Finance Holdings,, 9.000%, 08/01/12** ........................................ 220,000
200,000 Thornburg Mortgage, Sr. Sub. Notes, 8.000%, 05/15/13 ............................... 213,500
200,000 Western Financial Bank, Sr. Sub. Notes, 9.625%, 05/15/12 ........................... 229,000
-----------
1,322,750
-----------
OIL AND GAS -- 4.4%
100,000 Chesapeake Energy Corp., Sr. Notes, 7.000%, 08/15/14 ............................... 107,000
250,000 Ferrellgas Partners L.P., Sr. Notes, 8.750%, 06/15/12 .............................. 273,750
250,000 Sesi LLC., Sr. Notes, 8.875%, 05/15/11 ............................................. 275,000
250,000 Swift Energy Co., Sr. Sub. Notes, 9.375%, 05/01/12 ................................. 281,250
300,000 Transmontaigne, Inc., Sr. Sub. Notes, 9.125%, 06/01/10 ............................. 327,000
-----------
1,264,000
-----------
FOOD/DRUG RETAILERS -- 4.2%
225,000 Di Giorgio Corp., Sr. Notes, Series B, 10.000%, 06/15/07 ........................... 226,125
275,000 Great Atlantic & Pacific Tea Co., Sr. Notes, 9.125%, 12/15/11 ...................... 259,187
100,000 Ingles Markets, Inc., Sr. Sub. Notes, 8.875%, 12/01/11 ............................. 107,500
225,000 Jean Coutu Group PJC Inc., Sr. Sub. Notes, 8.500%, 08/01/14** ...................... 231,750
150,000 Rite Aid Corp., Sr. Notes, 9.250%, 06/01/13 ........................................ 152,250
200,000 Strater Bros Holdings, Inc., 8.125%, 06/15/12 ...................................... 212,500
-----------
1,189,312
-----------
PIPE LINES/EX NATURAL GAS -- 4.1%
100,000 El Paso CGP. Co., Sr. Notes, 7.625%, 09/01/08 ...................................... 105,000
450,000 El Paso Corp., Sr. Notes, 7.875%, 06/15/12 ......................................... 473,062
200,000 El Paso Production Holding, Sr. Notes, 7.750%, 06/01/13 ............................ 210,500
150,000 Sonat, Inc., Sr. Notes, 7.625%, 07/15/11 ........................................... 156,000
200,000 William Co., Inc., Sr. Notes, 8.125%, 03/15/12 ..................................... 232,000
-----------
1,176,562
-----------
HEALTH CARE -- 3.8%
50,000 HCA Inc., Sub. Notes, 6.750%, 07/15/13 ............................................. 52,050
200,000 Iasis Healthcare Corp., Sr. Sub. Notes, 8.750%, 06/15/14 ........................... 219,000
200,000 Insight Health Services, Sr. Sub. Notes, Series B, 9.875%, 11/01/11 ................ 203,000
175,000 Tenet Healthcare Corp., Sr. Notes, 9.875%, 07/01/14** .............................. 191,625
100,000 Triad Hospitals, Inc., Sr. Sub. Notes, 7.000%, 11/15/13 ............................ 102,750
100,000 Vanguard Health Holding II, Sr. Sub. Notes, 9.000%, 10/01/14** ..................... 107,500
100,000 VWR International Inc., Sr. Sub Notes, 8.000%, 04/15/14** .......................... 107,250
100,000 VWR International Inc., Sr. Sub. Notes, 8.000%, 04/15/14 ........................... 107,250
-----------
1,090,425
-----------

See Notes to Financial Statements.

CIM HIGH YIELD SECURITIES -- (CONTINUED)
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 2004

PRINCIPAL VALUE
AMOUNT (NOTE 1)
- --------- -----------

CORPORATE BONDS AND NOTES -- (CONTINUED)
AUTO PARTS & ACCESSORIES -- 3.8%
$150,000 CSK Auto Inc., Sr. Notes, 7.000%, 01/15/14 ......................................... $ 147,937
200,000 Delco Remy International, Inc., Sr. Sub. Notes, 11.000%, 05/01/09 .................. 214,000
100,000 Dura Operating Corp., Sr. Sub. Notes, Series B, 8.625%, 04/15/12 ................... 104,500
250,000 Goodyear Tire & Rubber Sr. Notes, 7.857%, 08/15/11 ................................. 255,000
125,000 Navistar International, Sr. Notes, 7.500%, 06/15/11 ................................ 134,688
175,000 Tenneco Automotive, Inc., Sr. Notes, Series B, 10.250%, 07/15/13 ................... 207,375
200,000 Venture Holdings Trust, Sr. Notes, 11.000%, 06/01/07+ .............................. 9,000
-----------
1,072,500
-----------
CONTAINERS/PACKAGING -- 3.7%
200,000 Berry Plastic, Sr. Sub. Notes, 10.750%, 07/15/12 ................................... 230,000
225,000 Constar International, Sr. Sub Notes, 11.000%, 12/01/12 ............................ 234,563
100,000 Graham Packaging Co., Sr. Notes, 8.500%, 10/15/12** ................................ 105,500
250,000 Plastipak Holdings, Inc., Sr. Notes, 10.750%, 09/01/11 ............................. 282,500
200,000 Solo Cup Company Sr. Sub. Notes, 8.500%, 02/15/14 .................................. 209,000
-----------
1,061,563
-----------
PAPER & FOREST PRODUCTS -- 3.0%
200,000 Appleton Papers Inc., Sr. Notes, 8.125%, 06/15/11 .................................. 216,500
100,000 Boise Cascade LLC., Sr. Sub. Notes, 7.125%, 10/15/14** ............................. 106,250
175,000 Graphic Packaging International Sr. Sub. Notes, 9.500%, 08/15/13 ................... 199,938
125,000 Millar Western Forest, Sr. Notes, 7.750%, 11/15/13 ................................. 134,375
100,000 Tembec Industries, Inc., Sr. Notes, 8.625%, 06/30/09 ............................... 101,000
100,000 Tembec Industries, Inc., Sr. Notes, 8.500%, 02/01/11 ............................... 101,000
-----------
859,063
-----------
LEISURE GOODS, ACTIVITIES, MOVIE -- 2.1%
100,000 LCE Acquisition Corp., 9.000%, 08/01/14** .......................................... 108,750
175,000 NCL Corp., Sr. Notes, 10.625%, 07/15/14** .......................................... 175,875
300,000 Six Flags, Inc., Sr. Notes, 9.625%, 06/01/14 ....................................... 303,000
-----------
587,625
-----------
BROADCASTING -- 1.9%
75,000 New Skies Satellites NV., Sr. Sub. Notes, 9.125%, 11/01/12** ....................... 76,875
100,000 Nexstar Finance Inc., Sr. Sub. Notes, 7.000%, 01/15/14 ............................. 99,500
200,000 Rainbow National Services LLC., Sr. Notes, 8.750%, 09/01/12** ...................... 220,500
125,000 Sinclair Broadcast Group, 8.000%, 03/15/12 ......................................... 133,438
-----------
530,313
-----------
OFFICE/BUSINESS EQUIPMENT -- 1.7%
125,000 Danka Business Systems, Sr. Notes, 11.000%, 06/15/10 ............................... 133,125
300,000 Xerox Corp., Sr. Notes, 9.750%, 01/15/09 ........................................... 354,000
-----------
487,125
-----------

See Notes to Financial Statements.

CIM HIGH YIELD SECURITIES -- (CONTINUED)
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 2004

PRINCIPAL VALUE
AMOUNT (NOTE 1)
- --------- -----------

CORPORATE BONDS AND NOTES -- (CONTINUED)
ECOLOGICAL SERVICES AND EQUIPMENT -- 1.5%
$300,000 Allied Waste North America, Inc., Sr. Notes, Series B, 9.250%, 09/01/12 ............ $ 326,250
100,000 Casella Waste Systems, Sr. Sub. Notes, 9.750%, 02/01/13 ............................ 111,000
-----------
437,250
-----------
ELECTRONICS/ELECTRIC -- 1.5%
100,000 Amkor Technologies Inc., Sr. Notes, 7.125%, 03/15/11 ............................... 94,500
200,000 Celestica, Inc., Sr. Sub. Notes, 7.875%, 07/01/11 .................................. 215,500
125,000 New Asat Finance LTD., Sr. Notes, 9.250%, 02/01/11** ............................... 114,063
-----------
424,063
-----------
FOOD SERVICE -- 1.4%
200,000 Buffets, Inc., Sr. Sub. Notes, 11.250%, 07/15/10 ................................... 215,000
175,000 Friendly Ice Cream Corp., Sr. Notes, 8.375%, 06/15/12 .............................. 172,594
-----------
387,594
-----------
AEROSPACE/DEFENSE -- 1.4%
100,000 BE Aerospace, Inc., Sr. Sub. Notes, Series b, 8.875%, 05/01/11 ..................... 105,000
150,000 BE Aerospace, Sr. Sub. Notes, Series B, 8.000%, 03/01/08 ........................... 150,937
125,000 K & F Acquisition, Inc., Sr. Sub. Notes, 7.750%, 11/15/14** ........................ 129,688
-----------
385,625
-----------
STEEL -- 1.2%
100,000 Ak Steel Corp. Sr. Notes, 7.875%, 02/15/09 ......................................... 102,375
100,000 International Steel Group, Sr. Notes, 6.500%, 04/15/14 ............................. 107,750
125,000 Ryerson Tull Inc., Sr. Notes, 8.250%, 12/15/11** ................................... 126,875
-----------
337,000
-----------
AIRLINES -- 1.1%
125,000 Continental Airlines, Inc., Sr. Notes, 8.000%, 12/15/05 ............................ 122,500
100,000 Delta Airlines, Sr. Notes, 7.700%, 12/15/05 ........................................ 93,000
100,000 Northwest Airlines, Inc., Sr. Notes, 9.875%, 03/15/07 .............................. 90,750
-----------
306,250
-----------
RETAIL -- 1.0%
100,000 Finlay Fine Jewelry Corp., Sr. Notes, 8.375%, 06/01/12 ............................. 108,500
175,000 Petro Shopping Center, Sr. Notes, 9.000%, 02/15/12 ................................. 185,938
-----------
294,438
-----------
EQUIPMENT LEASING -- 0.9%
125,000 United Rentals Inc., Sr. Sub. Notes, 7.000%, 02/15/14 .............................. 117,500
150,000 United Rentals N.A. Inc., Sr. Sub. Notes, 7.750%, 11/15/13 ......................... 147,750
-----------
265,250
-----------

See Notes to Financial Statements.

CIM HIGH YIELD SECURITIES -- (CONTINUED)
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 2004

PRINCIPAL VALUE
AMOUNT (NOTE 1)
- --------- -----------

CORPORATE BONDS AND NOTES -- (CONTINUED)
SOFTWARE/SERVICES -- 0.8%
$200,000 UGS Corp., Sr. Sub. Notes, 10.000%, 06/01/12** ..................................... $ 228,500
-----------
AGRICULTURAL PRODUCTION - CROPS -- 0.8%
200,000 Hines Nurseries, Inc.. Sr. Notes, 10.250%, 10/01/11 ................................ 219,500
-----------
PERSONAL SERVICES -- 0.8%
100,000 Service Corp. International, Sr. Notes, 7.700%, 04/15/09 ........................... 108,500
100,000 Service Corp. International, Sr. Notes, 7.700%, 04/15/09 ........................... 108,500
-----------
217,000
-----------
MARINE TRANSPORTATION -- 0.7%
100,000 General Maritime, Sr. Notes, 10.000%, 03/15/13 ..................................... 115,500
100,000 Great Lakes Dredge & Dock, Sr. Sub Notes, 7.750%, 12/15/13 ......................... 91,500
-----------
207,000
-----------
PROPERTY - CASUALTY INSURANCE -- 0.7%
175,000 Crum & Forster Holding Corp., Sr. Notes, 10.375%, 06/15/13 ......................... 196,000
-----------
INSURANCE -- 0.4%
100,000 Fairfax Financial Holdings, Sr. Notes, 7.750%, 04/26/12 ............................ 102,500
-----------
TOTAL CORPORATE BONDS AND NOTES
(Cost $32,103,290) ............................................................... 34,159,784
-----------
FOREIGN BONDS -- 2.9%
FOREST PRODUCTS & PAPER -- 1.1%
300,000 Kappa Beheer BV, Sr. Sub. Notes, 10.625%, 07/15/09 (Netherlands) ................... 319,500
-----------
CONTAINERS/PACKAGING -- 0.9%
225,000 Crown Euro Holdings SA., Sr. Notes, 10.875%, 03/01/13 (France) ..................... 267,187
-----------
CHEMICALS AND PLASTICS -- 0.6%
150,000 Acetex Corp., Sr. Notes, 10.875%, 08/01/09 (Canada) ................................ 163,875
-----------
UTILITIES -- 0.3%
100,000 Calpine Corp., Sr. Notes, 8.500%, 05/01/08 (Canada) ................................ 82,500
-----------
TOTAL FOREIGN BONDS
(Cost $776,775) .................................................................. 833,062
-----------

See Notes to Financial Statements.

CIM HIGH YIELD SECURITIES -- (CONTINUED)
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 2004

PRINCIPAL VALUE
AMOUNT (NOTE 1)
- --------- -----------

FOREIGN GOVERNMENT SECURITIES -- 2.0%
FOREIGN SOVEREIGN -- 2.0%
$ 360,000 ARG Boden, 2.008%, 08/03/12^ ....................................................... $ 308,111
71,000 Republic of Brazil, 11.000%, 08/17/40 .............................................. 84,330
100,272 Republic of Brazil, Series C, 8.000%, 04/15/14 ..................................... 103,259
70,000 Republic of Peru, 4.500%, 03/07/17^ ................................................ 66,036
-----------
TOTAL FOREIGN GOVERNMENT SECURITIES
(Cost $465,301) .................................................................. 561,736
-----------
SHORT TERM OBLIGATIONS -- 4.3%
115,000 United States Treasury Bill, 1.900%***, 01/13/05 ................................... 114,927
230,000 United States Treasury Bill, 1.710%***, 01/13/05 ................................... 229,869
310,000 United States Treasury Bill, 1.620%***, 01/13/05 ................................... 309,833
580,000 United States Treasury Bill, 1.830%***, 01/13/05 ................................... 579,646
-----------
TOTAL SHORT TERM OBLIGATIONS
(Cost $1,234,275) ................................................................ 1,234,275
-----------
TOTAL INVESTMENTS (Cost $34,579,641) .................................................. 129.5% 36,788,857

LIABILITIES LESS OTHER ASSETS (NET) ................................................... (29.5)% (8,380,729)
----- -----------
NET ASSETS ............................................................................ 100.0% $28,408,128
===== ===========
<FN>
** Security purchased in a transaction exempt from registration under Rule 144A of the Securities Act of 1933.
These securities may be resold in transactions exempt from registration, normally to qualified
institutional buyers. The market value of these securities is $6,525,782.
*** Rate represents annualized yield at date of purchase.
+ Securities in default.
^ Variable rate security - the interest rate shown is the rate at December 31, 2004.
</FN>

At December 31, 2004, the Fund's credit quality allocation was as follows:

STANDARD & POOR'S CREDIT RATING (UNAUDITED)
-------------------------------
BB ............................................. 9.88%
B .............................................. 68.98%
CCC ............................................ 15.19%
CC ............................................. 0.60%
Not Rated ...................................... 5.35%

See Notes to Financial Statements.

CIM HIGH YIELD SECURITIES
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 2004

ASSETS:
Investments, at value (Cost $ 34,579,641) ................................. $ 36,788,857
Cash ...................................................................... 507,138
Interest receivable ....................................................... 701,819
Prepaid expenses .......................................................... 19,070
------------
Total Assets ........................................................... 38,016,884
------------
LIABILITIES:
Notes payable (including accrued interest of $64,406) ..................... $9,254,406
Payables for securities purchased ......................................... 310,840
Investment advisory fee payable ........................................... 12,236
Administration fee payable ................................................ 3,686
Custodian fees payable .................................................... 1,160
Accrued expenses and other payables ....................................... 26,428
----------
Total Liabilities ...................................................... 9,608,756
------------
NET ASSETS ..................................................................... $ 28,408,128
============

NET ASSETS consist of:
Shares of beneficial interest, $0.01 per share par value,
issued and outstanding 6,134,216 ....................................... $ 61,342
Paid-in capital in excess of par value .................................... 45,575,764
Accumulated undistributed net investment income ........................... 8,257
Accumulated net realized loss on investments sold ......................... (19,446,451)
Unrealized appreciation of investments .................................... 2,209,216
------------
Total Net Assets ....................................................... $ 28,408,128
============
NET ASSET VALUE PER SHARE
($28,408,128 / 6,134,216 shares of beneficial interest outstanding) ......... $ 4.63
============
MARKET VALUE PER SHARE ......................................................... $ 4.28
============

See Notes to Financial Statements.

CIM HIGH YIELD SECURITIES
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2004

INVESTMENT INCOME:
Interest .......................................... $3,329,807
----------
EXPENSES:
Interest expense ..................................... $195,792
Investment advisory fee .............................. 136,892
Legal and audit fees ................................. 129,978
Trustees' fees and expenses .......................... 70,000
Miscellaneous ........................................ 59,687
Administration fee ................................... 40,300
Printing fee ......................................... 27,365
Shareholder servicing agent fees ..................... 25,386
Fund accounting fee .................................. 24,000
Custodian fees ....................................... 13,750
--------
Total Expenses .................................... 723,150
----------
NET INVESTMENT INCOME ..................................... 2,606,657
----------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Net realized gain on investments sold during the period 449,306
Net change in unrealized appreciation/(depreciation) of
investments during the period ..................... (118,636)
----------
330,670
----------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS ...................................... $2,937,327
==========

See Notes to Financial Statements.

CIM HIGH YIELD SECURITIES
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED DECEMBER 31, 2004

NET INCREASE IN CASH:
Cash flows from operating activities:
Interest received ......................................................... $ 3,322,904
Dividends received ........................................................ 11,750
Operating expenses paid ................................................... (564,725)
Increase in short-term securities, net .................................... (775,534)
Purchases of long-term securities ......................................... (19,030,898)
Proceeds from sales of long-term securities ............................... 20,193,473
Interest payments on notes payable ........................................ (171,456)
------------
Net cash provided by operating activities ...................................... $ 2,985,514
-----------
Cash flows from financing activities:
Principal payments on loan ................................................ (70,000)
Distributions paid ........................................................ (2,624,996)
------------
Net cash used in financing activities .......................................... (2,694,996)
-----------
Net increase in cash ........................................................... 290,518
Cash -- beginning of year ...................................................... 216,620
-----------
Cash -- end of year ............................................................ $ 507,138
===========

RECONCILIATION OF NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS TO NET CASH PROVIDED BY
OPERATING ACTIVITIES:
Net increase in net assets resulting from operations ........................... $ 2,937,327
Decrease in interest receivable ........................................... 118,274
Decrease in dividend receivable ........................................... 5,875
Increase in prepaid expenses .............................................. (17,747)
Increase in accrued interest .............................................. 24,336
Increase in investment advisory fee payable ............................... 247
Increase in administration fee payable .................................... 273
Decrease in custodian fee payable ......................................... (140)
Decrease in accrued expenses and other payables ........................... (20,000)
Increase in payable for securities purchased .............................. 310,840
Amortization of discount/premium .......................................... (119,302)
Increase in short-term securities, net .................................... (775,534)
Purchases of long-term securities ......................................... (19,341,738)
Proceeds from sales of long-term securities ............................... 20,193,473
Net realized gain on investments sold ..................................... (449,306)
Net change in unrealized appreciation/depreciation of investments ......... 118,636
------------
Total adjustments .................................................... 48,187
-----------
Net cash provided by operating activities ...................................... $ 2,985,514
===========

See Notes to Financial Statements.

CIM HIGH YIELD SECURITIES
STATEMENTS OF CHANGES IN NET ASSETS

YEAR ENDED YEAR ENDED
DECEMBER 31, 2004 DECEMBER 31, 2003
----------------- -----------------

Increase in net assets from operations:
Net investment income ....................................... $ 2,606,657 $ 2,896,080
Net realized gain on investments sold during the year ....... 449,306 41,526
Net change in unrealized appreciation/(depreciation) of
investments during the year ............................ (118,636) 5,412,063
----------- -----------
Net increase in net assets resulting from operations ........ 2,937,327 8,349,669
----------- -----------
Distributions to shareholders from:
Net investment income .................................. (2,602,643) (2,891,837)
----------- -----------
Total distributions ................................. (2,602,643) (2,891,837)
----------- -----------
Fund share transactions:
Shares issued as reinvestment of dividends ............. 190,864 313,493
----------- -----------
Net increase in net assets from Fund share transactions ..... 190,864 313,493
----------- -----------
Net increase in net assets .................................. 525,548 5,771,325
NET ASSETS:
Beginning of year ........................................... 27,882,580 22,111,255
----------- -----------
End of year ................................................. $28,408,128 $27,882,580
=========== ===========
Accumulated undistributed net investment income ............. $8,257 $4,243

See Notes to Financial Statements.

CIM HIGH YIELD SECURITIES
FINANCIAL HIGHLIGHTS
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD.

YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED
12/31/04 12/31/03 12/31/02 12/31/01 12/31/00 2/31/99 12/31/98* 12/31/97 12/31/96 12/31/95
-------- -------- -------- -------- -------- ------- -------- -------- -------- --------

Operating performance:
Net asset value, beginning
of year ................... $ 4.58 $ 3.68 $ 4.25 $ 4.71 $ 6.53 $ 6.91 $ 7.96 $ 7.69 $ 7.32 $ 7.11
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Net investment income ....... 0.43 0.48 0.48 0.51 0.69 0.72 0.71 0.78 0.78 0.77
Net realized and
unrealized gain/(loss)
on investments ............ 0.05 0.90 (0.57) (0.46) (1.82) (0.39) (1.07) 0.30 0.36 0.23
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Net increase/(decrease)
in net assets resulting
from investment
operations ................ 0.48 1.38 (0.09) 0.05 (1.13) 0.33 (0.36) 1.08 1.14 1.00
Distributions:
Dividends from net
investment income ......... (0.43) (0.48) (0.48) (0.51) (0.63) (0.71) (0.69) (0.78) (0.77) (0.79)
Return of capital ........... -- -- --# --# (0.06) -- -- (0.03) -- --
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Total from distributions .... (0.43) (0.48) (0.48) (0.51) (0.69) (0.71) (0.69) (0.81) (0.77) (0.79)
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Net asset value, end of
year** .................... $ 4.63 $ 4.58 $ 3.68 $ 4.25 $ 4.71 $ 6.53 $ 6.91 $ 7.96 $ 7.69 $ 7.32
====== ====== ====== ====== ====== ====== ====== ====== ====== ======
Market value, end of
year** .................... $ 4.28 $ 4.77 $ 3.64 $ 4.29 $ 4.87 $ 5.25 $ 7.19 $ 8.31 $ 8.12 $ 7.87
====== ====== ====== ====== ====== ====== ====== ====== ====== ======
Total investment return
(net asset value) ......... 11.19% 39.39% (2.06)% 0.72% (18.76)% 4.93% (4.95)% 14.50% 16.46% 14.31%
====== ====== ====== ====== ====== ====== ====== ====== ====== ======
Total investment return
(market value) ............ (1.20)% 46.15% (4.12)% (1.78)% 4.58% (18.89)% (5.45)% 13.31% 14.38% 22.72%
====== ====== ====== ====== ====== ====== ====== ====== ====== ======
Ratios to average net
assets/supplemental data:
Net assets, end of year
(in 000's) ................ $28,408 $27,883 $22,111 $25,293 $27,707 $38,389 $40,567 $45,848 $43,495 $40,636
Ratio of net investment
income to average
net assets ................ 9.52% 11.47% 12.22% 11.11% 11.10% 10.76% 9.37% 10.08% 10.46% 10.32%
Ratio of operating expenses
to average net assets (2) . 1.93% 1.58% 1.55% 1.44% 1.22% 1.02% 1.02% 1.06% 1.10% 1.14%
Portfolio turnover rate (1) . 55.1% 70.1% 40.2% 75.2% 118.8% 98.0% 62.4% 154.5% 172.2% 79.9%

<FN>
(1) This rate is, in general, the percentage computed by taking the lesser of the cost of purchases or proceeds from the sales of
portfolio securities for a period and dividing it by the monthly average value of such securities during the last 13 months,
excluding short term securities.
(2) The annualized operating expense ratio excludes interest expense. The annualized ratios including interest expense were 2.64%,
2.21%, 2.37%, 3.17%, 3.89%, 3.13%, 2.98%, 3.06%, 3.19% and 3.52% for the years ended December 31, 2004, 2003, 2002, 2001, 2000,
1999, 1998, 1997, 1996 and 1995, respectively.
* On May 29, 1998 the Fund entered into a new investment advisory agreement with INVESCO (NY), Inc. (now known as INVESCO
Institutional (N.A.), Inc.) due to the acquisition of Chancellor LGT Asset Management, Inc. by AMVESCAP PLC.
** Total investment return is calculated assuming a purchase of common stock on the opening of the first day and a sale on the
closing of the last day of each period reported. Dividends and distributions, if any, are assumed for the purpose of this
calculation, to be reinvested at prices obtained under the Fund's dividend reinvestment plan. Generally, total investment return
based on net asset value will be higher than total investment return based on market value in periods where there is an increase
in the discount or decrease in the premium of the market value to the net asset value from the beginning to the end of such
periods. Conversely, total investment return based on net asset value will be lower than total investment return based on market
value in periods where there is a decrease in the discount or an increase in the premium of the market value to the net asset
value from the beginning to the end of such periods.
# Amount rounds to less than $0.005 per share.
</FN>

See Notes to Financial Statements.

CIM HIGH YIELD SECURITIES
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2004

1. SIGNIFICANT ACCOUNTING POLICIES

CIM High Yield Securities (the "Fund") was organized under the laws of the
Commonwealth of Massachusetts on September 11, 1987 and is registered with the
Securities and Exchange Commission under the Investment Company Act of 1940, as
amended (the "1940 Act"), as a diversified, closed-end management investment
company. The following is a summary of significant accounting policies
consistently followed by the Fund in the preparation of its financial
statements.

PORTFOLIO VALUATION: Fixed-income securities (other than short-term
obligations, but including listed issues) are valued based on prices obtained by
one or more of the independent pricing services approved by the Board of
Trustees. Such securities are valued at the mean of the closing bid and closing
ask prices on the exchange where primarily traded.

Portfolio securities for which there are no such valuations are valued at
fair value as determined in good faith by or at the direction of the Board of
Trustees. Short-term obligations with maturities of less than 60 days are valued
at amortized cost which approximates market value.

SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities transactions are
recorded as of the trade date. Realized gains and losses from securities
transactions are recorded on the identified cost basis. Interest income,
including, where applicable, amortization of premium and accretion of discount
on investments, is recorded on the accrual basis.

DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS: The Fund distributes monthly
to shareholders substantially all of its net investment income. Capital gains,
if any, net of capital losses, are distributed annually. Income distributions
and capital gain distributions are determined in accordance with income tax
regulations which may differ from accounting principles generally accepted in
the United States. These differences are primarily due to differing treatments
of income and gains on various investment securities held by the Fund, timing
differences and differing characterization of distributions made by the Fund.

FEDERAL INCOME TAXES: It is the Fund's policy to comply with the
requirements of the Internal Revenue Code applicable to regulated investment
companies and to distribute substantially all of its taxable income to its
shareholders. Therefore, no Federal income tax should be payable by the Fund.

CASH FLOW INFORMATION: Cash, as used in the Statement of Cash Flows, is
the amount reported in the Statement of Assets and Liabilities. The Fund invests
in securities and distributes dividends from net investment income and net
realized gains (which are either paid in cash or reinvested at the discretion of
shareholders). These activities are reported in the Statements of Changes in Net
Assets. Information on cash payments is presented in the Statement of Cash
Flows. Accounting practices that do not affect reporting activities on a cash
basis include unrealized gain or loss on investment securities and accretion
income recognized on investment securities.

USE OF ESTIMATES: The preparation of financial statements in conformity
with U.S. generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of income and expenses during
the reported period. Actual results could differ from those estimates.

CIM HIGH YIELD SECURITIES
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

2. INVESTMENT ADVISORY FEE, ADMINISTRATION FEE AND OTHER RELATED PARTY
TRANSACTIONS

The Fund has entered into an investment advisory agreement (the "Advisory
Agreement") with INVESCO Institutional (N.A.), Inc. (the "Adviser"). The
Advisory Agreement provides that the Fund will pay the Adviser a fee, computed
and payable monthly, at the annual rate of 0.50% of the Fund's average weekly
net assets.

The Fund has also entered into an Administration and Support Agreement
with PFPC Inc. ("PFPC"), to provide all administrative services to the Fund
other than those related to the investment decisions. PFPC is paid a fee
computed and payable monthly at an annual rate of 0.09% of the Fund's average
weekly net assets, but no less than $40,000 per annum.

The Fund pays each Trustee not affiliated with the Adviser $6,000 per year
plus $1,000 per board meeting and committee meeting attended, and reimburses
each such Trustee for travel and out-of-pocket expenses relating to their
attendance at such meetings. The Fund pays the actual out-of-pocket expenses of
the Trustees affiliated with the Adviser relating to their attendance at such
meetings.

Boston Safe Deposit & Trust Company, an indirect wholly-owned subsidiary
of Mellon Bank Corporation, serves as the Fund's custodian. PFPC serves as the
Fund's shareholder servicing agent (transfer agent).

3. PURCHASE AND SALES OF SECURITIES

Cost of purchases and proceeds from sales of investment securities,
excluding U.S. Government and short-term investments, during the year ended
December 31, 2004, amounted to $19,341,738 and $20,033,422, respectively.

As of December 31, 2004, net unrealized appreciation was $2,208,626, of
which $2,589,587 related to unrealized appreciation of investments and $380,961
related to unrealized depreciation of investments. The cost of securities on a
federal tax basis at December 31, 2004 was $34,580,231.

The difference between book-basis and tax-basis unrealized depreciation is
attributable to the tax deferral of losses on wash sales.

4. FUND SHARES

The Fund has one class of shares of beneficial interest, par value $0.01
per share, of which an unlimited number of shares are authorized. Transactions
in shares of beneficial interest were as follows:

YEAR ENDED YEAR ENDED
DECEMBER 31, 2004 DECEMBER 31, 2003
-------------------- --------------------
SHARES AMOUNT SHARES AMOUNT
------ -------- ------ --------

Issued as reinvestment of dividends ................... 42,292 $190,864 75,542 $313,493
------ -------- ------ --------
Net increase .......................................... 42,292 $190,864 75,542 $313,493
====== ======== ====== ========

CIM HIGH YIELD SECURITIES
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

5. NOTES PAYABLE

The Fund currently has an $11 million ("commitment amount") line of credit
provided by Fleet National Bank (the "Bank") under an Amended and Restated
Credit Agreement (the "Agreement") dated as of September 18, 1992 and amended
and restated as of May 23, 2002, as amended, primarily to leverage its
investment portfolio. Under this Agreement, the Fund may borrow up to the lesser
of $11 million or 25% of its total assets. Interest is payable at either the
federal funds rate plus 0.75% or its applicable LIBOR rate plus 0.75%, as
selected by the Fund from time to time in its loan requests. The Fund is charged
a commitment fee of one tenth of one percent per annum of the average daily
unused commitment amount. At December 31, 2004, the Fund had borrowings of
$9,190,000 outstanding under this Agreement. During the year ended December 31,
2004, the Fund had an average outstanding daily balance of $9,059,169 with an
average rate of 2.11% and average debt per share of $1.48. For the year ended
December 31, 2004, interest expense totaled $195,792 under this Agreement.

6. CAPITAL LOSS CARRYFORWARD

Capital loss carryforwards are available to offset future realized capital
gains. To the extent that these carryforwards are used to offset future capital
gains, it is probable that the amount which is offset will not be distributed to
shareholders.

At December 31, 2004, the Fund had available for Federal tax purposes
unused capital loss carryforwards of $2,303,012, $133,391, $4,838,652,
$7,509,786, $4,573,327 and $87,693 expiring in 2006, 2007, 2008, 2009, 2010 and
2011, respectively.

7. RISK FACTORS

The Fund invests in securities offering high current income which
generally will be in the lower rating categories of recognized ratings agencies
(below investment-grade bonds). These securities generally involve more credit
risk than securities in the higher rating categories. In addition, the trading
market for high yield securities may be relatively less liquid than the market
for higher-rated securities. The Fund will provide notice to shareholders at
least 60 days prior to any change in its policy of investing primarily (at least
80% of its total assets under normal circumstances) in "high yield", high risk
fixed income securities. The Fund's use of leverage also increases exposure to
capital risk. The Fund may invest 2-3% of its assets in emerging markets.
Emerging markets may be subject to a substantially greater degree of social,
political, and economic instability than is the case in domestic markets.

CIM HIGH YIELD SECURITIES
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

8. DISTRIBUTIONS TO SHAREHOLDERS

The tax character of distributions paid for the year ended December 31,
2004 and year ended 2003 are as follows:

2004 2003
---------- ----------
DISTRIBUTIONS PAID FROM:
Ordinary income .................................. $2,602,643 $2,891,837
---------- ----------
Total ............................................ $2,602,643 $2,891,837
========== ==========

As of December 31, 2004, the components of accumulated earnings/(deficit)
on a tax basis were as follows:

Capital loss carryforwards $(19,445,861)
Undistributed net investment income 8,257
Unrealized appreciation 2,208,626
------------
Total accumulated deficit $(17,228,978)
============

The components of accumulated earnings/deficit on a tax basis differ from
book basis as a result of wash sales.

9. INDEMNIFICATION CONTINGENCIES

In the normal course of business, the Fund enters into contracts that
provide for general indemnifications to the counterparties to those contracts.
The Fund's maximum exposure under these arrangements is dependent upon claims
that may be made against the Fund in the future and, therefore, cannot be
estimated; however, based on experience, the risk of material loss from such
claims is considered remote.

CIM HIGH YIELD SECURITIES
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Shareholders and Board of Trustees
CIM High Yield Securities

We have audited the accompanying statement of assets and liabilities of CIM
High Yield Securities (the "Fund"), including the portfolio of investments, as
of December 31, 2004, and the related statements of operations and cash flows
for the year then ended, the statements of changes in net assets for each of the
two years in the period then ended, and the financial highlights for each of the
four years in the period then ended. These financial statements and financial
highlights are the responsibility of the Fund's management. Our responsibility
is to express an opinion on these financial statements and financial highlights
based on our audits. The financial highlights of the Fund for the periods ended
prior to December 31, 2001, were audited by other auditors whose report thereon
dated February 2, 2001, expressed an unqualified opinion on those financial
highlights.

We conducted our audits in accordance with the standards of the Public
Company Accounting Oversight Board (United States). Those standards require that
we plan and perform the audit to obtain reasonable assurance about whether the
financial statements and financial highlights are free of material misstatement.
An audit includes consideration of internal control over financial reporting as
a basis for designing audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Funds' internal control over financial reporting.
Accordingly, we express no such opinion. An audit also includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements and financial highlights, assessing the accounting principles used
and significant estimates made by management, and evaluating the overall
financial statement presentation. Our procedures included confirmation of
securities owned as of December 31, 2004, by correspondence with the custodian
and brokers or by other appropriate auditing procedures where replies were not
received. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of CIM
High Yield Securities at December 31, 2004, the results of its operations and
its cash flows for the year then ended, the changes in its net assets for each
of the two years in the period then ended, and the financial highlights for each
of the four years in the period then ended in conformity with U.S. generally
accepted accounting principles.

/s/ ERNST & YOUNG LLP

February 14, 2005
Philadelphia, Pennsylvania

CIM HIGH YIELD SECURITIES
ADDITIONAL FUND INFORMATION (UNAUDITED)

The business and affairs of the Fund are managed under the direction of
the Fund's Board of Trustees. Information pertaining to the Trustees and
officers of the Fund is set forth below. Additional information about the Funds'
directors is available in the Statement of Additional Information and is
available, without charge, upon request, by calling 1-800-331-1710.

NUMBER
TERM OF OF PORTFOLIOS
OFFICE AND IN FUND
POSITION(S) LENGTH OF COMPLEX
HELD WITH TIME PRINCIPAL OCCUPATION(S) OVERSEEN OTHER DIRECTORSHIPS
NAME, ADDRESS 1, AND AGE THE FUND SERVED DURING PAST FIVE YEARS BY TRUSTEE HELD BY TRUSTEE
- ------------------------ ----------- ---------------- ----------------------------- ------------- ----------------------------

TRUSTEES:
- ---------

DR. DONALD RATAJCZAK Chairman Term: 2002-2005; Consulting Economist 1 Director, Assurance America
Age: 62 of the Trustee (self-employed), April (auto insurance); Director,
Board of since 1987. 2003-present; Former Chairman Ruby Tuesday, Inc.
Trustees and CEO of Brainworks (restaurant); Director,
Ventures, an enterprise and Morgan, Keegan & Company
asset management business from (investment firm) until
April 2000 to April 2003; March 30, 2001, remains a
Former Director, Economic consulting economist;
Forecasting Center, Georgia Director, Crown Crafts
State University from July (consumer products company);
1973 to June 2000; Professor, Director, TBC Corporation
Georgia State University (tire marketing and
(retired June 30, 2000). distribution company);
Director, Citizens
Bancshares Corp. (Community
Bank); Director, Regan
Holdings (insurance
marketing company).

ROBERT G. WADE, JR. Trustee Term: Consultant to INVESCO, Inc. 1 N/A
Age.: 78 2002-2005; from November 1996 to December
Trustee 1998; retired in 1998.
since 1987.

<FN>
- -----------
1 The address for each Trustee is 1166 Avenue of the Americas, 27th Floor, New York, NY 10036.
</FN>

CIM HIGH YIELD SECURITIES
ADDITIONAL FUND INFORMATION (UNAUDITED)

JOHN F. NICKOLL Trustee Term: Director, Chairman, President 1 Chairman of Wells Fargo
Age: 70 2003-2006; and Chief Executive Officer of Business Credit.
Trustee The Foothill Group Inc., a
since 1987. commercial finance and asset
management company.

DR. BRUCE H. OLSON Trustee Term: Professor of Finance, 1 N/A
Age: 70 2004-2007; Miami University (Ohio).
Trustee
since 1987.

<FN>
- ----------------
1 The address for each Trustee is 1166 Avenue of the Americas, 27th Floor, New York, NY 10036.
</FN>

CIM HIGH YIELD SECURITIES
ADDITIONAL FUND INFORMATION (CONTINUED) (UNAUDITED)

POSITION
HELD WITH TERM OF OFFICE AND PRINCIPAL OCCUPATION(S)
NAME, ADDRESS, AND AGE THE FUND LENGTH OF TIME SERVED DURING PAST FIVE YEARS
- ---------------------- ----------- ------------------------ ----------------------------------------------------------------
OFFICERS:
- ---------

A. GEORGE BAUMANN 2 President Term: Until successor is Head of Institutional Fixed Income at INVESCO since January
Age: 48 elected; Since 2002. 2001; President and CEO of PRIMCO Capital Management, January
1998-December 2000; President of PRIMCO Capital Management,
1995-1998.

CINDY M. CAMERON 2 Treasurer Term: Until successor is Deputy Finance Director, INVESCO North America since January
Age: 40 elected; Since 2002. 2004; Chief Financial Officer of INVESCO's Institutional Fixed
Income Division January 2000-December 2003; Controller of PRIMCO
Capital Management, January 1996-December 1999.

JEFFREY H. KUPOR 3 Secretary Term: Until successor is General Counsel, INVESCO Institutional (N.A.), Inc., since
Age: 37 elected; Since 2003. December 2003; Asst. General Counsel of AMVESCAP Group Services,
Inc., January 2002-December 2003; General Counsel and Secretary,
Z-Tel Technologies, Inc., November 1999-December 2001; Counsel
of AIM Management Group Inc., January 1998-November 1999.

<FN>
- ----------------
1 The address for each Trustee is 1166 Avenue of the Americas, 27th Floor, New York, NY 10036.
2 The address for these officers is 400 W. Market St., Suite 3300, Louisville, KY 40202-1662.
3 The address for this officer is 1360 Peachtree Street, NE, Suite 100, Atlanta, GA 303463.
</FN>

To Shareholders of CIM High Yield Securities (the "Fund")
About the Fund's Dividend Reinvestment Plan

Pursuant to the Fund's Dividend Reinvestment Plan (the "Plan"),
shareholders of the Fund ("Shareholders") whose shares are registered in their
own name will automatically have all dividends and other distributions
reinvested in additional shares of the Fund by PFPC (the "Agent") as agent under
the Plan, unless such Shareholder terminates participation in the Plan as
provided below. Shareholders whose shares are registered in the name of a
broker-dealer or other nominee (i.e., in "Street Name") will not participate in
the Plan unless the requisite election is made by the broker-dealer and only if
such a service is provided by the broker-dealer. Shareholders who own Fund
shares registered in Street Name and who desire that their distributions be
reinvested should consult their broker-dealers. Shareholders who do not
participate in the Plan will receive all distributions by check mailed directly
to the Shareholder by the Agent.

Whenever the Fund declares a capital gains distribution or an income
dividend payable in shares or cash, participating Shareholders will take such
distribution or dividend entirely in shares and the Agent shall automatically
receive such shares, including fractions, for the Shareholder's account, except
in the circumstances described in the paragraph below.

Whenever the market price of the shares on the record date for the dividend
or distribution is equal to or exceeds their net asset value, participants will
be issued shares of the Fund at the higher of net asset value or 95% of the
market price. This discount reflects savings in underwriting or other costs
which the Fund would otherwise be required to incur to raise additional capital.
If net asset value exceeds the market price of Fund shares at such time or if
the Fund should declare a dividend or other distribution payable only in cash,
the Agent will buy Fund shares in the open market, on the American Stock
Exchange (the "Exchange") or elsewhere, for the Shareholder's account. If before
the Agent has completed its purchases, the market price exceeds the net asset
value of the Fund's shares, the average per share purchase price paid by the
Agent may exceed the net asset value of the Fund's shares, resulting in the
acquisition of fewer shares than if the dividend or distribution had been paid
in shares issued by the Fund.

For all purposes of the Plan: (a) the market price of the Fund shares on a
particular date shall be the last sales price on the Exchange on the close of
the previous trading day or, if there is no sale on the Exchange on that date,
then the mean between the closing bid and asked quotations for such stock on the
Exchange on such date and (b) net asset value per Fund shares on a particular
date shall be as determined by or on behalf of the Fund.

The Fund will not charge participants for reinvesting dividends or
distributions. The Agent's service fee for handling capital gains distributions
or income dividends will be paid by the Fund. There will be no brokerage
commissions charged with respect to shares issued directly by the Fund. However,
Shareholders will be charged a pro rata share of brokerage commissions incurred
by the Agent on all open market purchases. In addition, Shareholders requesting
certificates or redeeming shares issued under the Plan will be charged a $5.00
service fee by the Agent.

The automatic reinvestment of dividends and capital gains distributions
does not relieve Plan participants of any income tax that may be payable on the
dividends or capital gains distributions. Distributions of net investment income
and net realized capital gains, if any, will be taxable, whether received in
cash or reinvested in shares under the Plan. When distributions are received in
the form of shares issued by the Fund (as opposed to purchased on the

open market) under such Plan, however, the amount of the distribution deemed to
have been received by participating Shareholders is the fair market value of the
shares received rather than the amount of cash which would otherwise have been
received. In such case, participating Shareholders will have a basis for federal
income tax purposes in each share received from the Fund equal to the fair
market value of such share on the payment date.

A Shareholder may terminate participation in the Plan at any time by
notifying the Agent in writing. Such termination will become effective
immediately if notice is received by the Agent not less than 10 business days
before the next following dividend or distribution record date. Otherwise, the
termination will be effective, with respect to any subsequent dividend or
distributions, on the first trading day after the dividend paid for such record
date has been credited to the Shareholder's account. Upon any termination the
Agent will, upon the request of the Shareholder, cause a certificate or
certificates for the full shares held for the Shareholder under the Plan and
cash adjustment for any fraction to be delivered to her or him. If, upon
termination, the Shareholder requests a certificate for shares held in the
account, a $5.00 service fee will be charged to the Shareholder by the Agent. If
the Shareholder elects by notice to the Agent in writing in advance of such
termination to have the Agent sell part or all of her or his shares and remit
the proceeds to her or him, the Agent is authorized to deduct a $5.00 fee plus
brokerage commissions for this transaction from the proceeds.

The Fund reserves the right to amend or terminate the Plan as applied to
any dividend or distribution for which the record date is at least 90 days after
written notice of the change is sent to the participants in the Plan.

Information concerning the Plan may be obtained by calling PFPC Inc. at
1-800-331-1710, or by writing the Fund, c/o PFPC Inc., 101 Federal Street,
Boston, MA 02110.

CIM HIGH YIELD SECURITIES
SHAREHOLDER VOTING RESULTS (UNAUDITED)

At the Annual Meeting of Shareholders, held on October 9, 2004, the
following matter was voted on and approved:

The election of the following Trustee:

TRUSTEE FOR ABSTAINED
------- --- ---------
Dr. Bruce H. Olson 5,579,412* 77,869

*Represents 91.13% of the outstanding shares of the Fund.

PROXY VOTING POLICY AND VOTINGRECORD

A description of the policies and procedures used by the fund's adviser in
determining how to vote proxies relating to the fund's portfolio securities is
available without charge, upon request, by calling 1-800-331-1710. It is also
available on the SEC's website at WWW.SEC.GOV.

In addition, the Fund's complete proxy voting record for the 12 months
ended June 30, 2004 is available without charge, upon request, by calling toll
free 1-800-331-1710. It is also available on the SEC's website at WWW.SEC.GOV.

QUARTERLY PORTFOLIO DISCLOSURE

The Fund files its complete schedule of portfolio holdings with the SEC
for the first and third quarters of each fiscal year on Form N-Q within 60 days
of the end of the fiscal quarter. The Fund's Form N-Q is available on the SEC's
website at WWW.SEC.GOV, and may be reviewed and copied at the SEC's Public
Reference Room in Washington, D.C. Information on the Public Reference Room may
be obtained by calling 1-800-SEC-0330. In addition, the Fund's Form N-Q is
available, without charge, upon request, by calling toll free 1-800-331-1710.

This report is sent to shareholders of CIM High Yield Securities for their
information. It is not a Prospectus, circular or representation intended for use
in the purchase or sale of shares of the Fund or any securities mentioned in the
report.

For Additional Information about
CIM High Yield Securities
Call 1-800-331-1710.

CIM 3192 12/04

ITEM 2. CODE OF ETHICS.

(a) The registrant, as of the end of the period covered by this report, has
adopted a code of ethics that applies to the registrant's principal
executive officer, principal financial officer, principal accounting
officer or controller, or persons performing similar functions,
regardless of whether these individuals are employed by the registrant
or a third party.

(b) There have been no amendments, during the period covered by this
report, to a provision of the code of ethics that applies to the
registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing
similar functions, regardless of whether these individuals are employed
by the registrant or a third party, and that relates to any element of
the code of ethics description.

(c) The registrant has not granted any waivers, including an implicit
waiver, from a provision of the code of ethics that applies to the
registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing
similar functions, regardless of whether these individuals are employed
by the registrant or a third party, that relates to one or more of the
items set forth in paragraph (b) of this item's instructions.

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.

The registrant's board of trustees has determined that Donald Ratajczak, a
member of the Registrant's Audit Committee, meets the definition of an audit
committee financial expert as defined in the instructions to Item 3 of Form
N-CSR. In addition, Dr. Ratajczak is an "independent" member of the Audit
Committee, as defined in the instructions to Form N-CSR.

ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.

Audit Fees
- ----------
(a) The aggregate fees billed for each of the last two fiscal years for
professional services rendered by the principal accountant for the
audit of the registrant's annual financial statements or services that
are normally provided by the accountant in connection with statutory
and regulatory filings or engagements for those fiscal years were
$35,000 in 2004 and $32,500 in 2003.

Audit-Related Fees
- ------------------
(b) The aggregate fees billed in each of the last two fiscal years for
assurance and related services by the principal accountant that are
reasonably related to the performance of the audit of the

registrant's financial statements and are not reported under paragraph
(a) of this Item were $0 in 2004 and $0 in 2003.

Tax Fees
- --------
(c) The aggregate fees billed in each of the last two fiscal years for
professional services rendered by the principal accountant for tax
compliance, tax advice, and tax planning were $0 in 2004 and $0 in
2003.

All Other Fees
- --------------
(d) The aggregate fees billed in each of the last two fiscal years for
products and services provided by the principal accountant, other than
the services reported in paragraphs (a) through (c) of this Item are $0
in 2004 and $0 in 2003.

(e)(1) The Audit Committee Charter provides that the Audit Committee shall
pre-approve, or establish pre-approval policies and procedures
concerning, the following: all audit and permitted non-audit
services to be provided the Fund, and all permitted non-audit
services to be provided by the Fund's independent accountant to the
adviser and to entities controlling, controlled by or under common
control with the adviser that provide ongoing services to the Fund,
if the services relate directly to the operations and financial
reporting of the Fund, except that de minimis non-audit services,
may, to the extent permitted by applicable law, be approved prior
to completion of the audit; and ensure that the Board is fully
informed about any findings or recommendations of the independent
accountant.

The Audit Committee has not established pre-approval policies and
procedures; therefore, the full Audit Committee pre-approves each
of the audit and non-audit services to be provided by the principal
accountant.

(e)(2) The percentage of services described in each of paragraphs (b)
through (d) of this Item that were approved by the Audit Committee
pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X
are as follows:

(b) N/A

(d) N/A

(f) The percentage of hours expended on the principal accountant's
engagement to audit the registrant's financial statements for the most
recent fiscal year that were attributed to work performed by persons
other than the principal accountant's full-time, permanent employees
was 0% (zero).

(g) The aggregate non-audit fees billed by the registrant's accountant for
services rendered to the registrant, and rendered to the registrant's
investment adviser, and any entity controlling, controlled by, or under
common control with the adviser that provides ongoing services to the

registrant for each of the last two fiscal years of the registrant was
$9,115,917 for 2004 and $5,754,520 for 2003.

(h) The registrant's audit committee of the board of trustees has
considered whether the provision of non-audit services that were
rendered to the registrant's investment adviser (not including any
sub-adviser whose role is primarily portfolio management and is
subcontracted with or overseen by another investment adviser), and any
entity controlling, controlled by, or under common control with the
investment adviser that provides ongoing services to the registrant
that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule
2-01 of Regulation S-X is compatible with maintaining the principal
accountant's independence.

ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.

The registrant has a separately designated audit committee consisting of all the
independent trustees of the registrant. The members of the audit committee are:
Dr. Bruce H. Olson, John F. Nickoll, Dr. Donald Ratajczak, and Robert G. Wade,
Jr.

ITEM 6. SCHEDULE OF INVESTMENTS.

The registrant's Schedule of Investments in securities of unaffiliated issuers
as of the close of the reporting period is included as part of the report to
shareholders filed under Item 1 of this form.

ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.

The Proxy Voting Policies are attached herewith.

INVESCO

PROXY VOTING POLICIES

AND

PROCEDURES

February 1, 2003

GENERAL POLICY

INVESCO Institutional (NA), Inc. and its wholly-owned subsidiaries, and INVESCO
Global Asset Management (N.A.), Inc. ("INVESCO") each has responsibility for
making investment decisions that are in the best interest of its clients. As
part of the investment management services it provides to clients, INVESCO may
be authorized by clients to vote proxies appurtenant to the shares for which the
clients are beneficial owners.

As a fiduciary, INVESCO believes that it has a duty to manage clients' assets
solely in the best interest of the clients and that the ability to vote proxies
is a client asset. Accordingly, INVESCO has a duty to vote proxies in a manner
in which it believes will add value to the client's investment.

INVESCO is regulated by various state and federal laws, such as the investment
Advisers Act of 1940, the Investment Company Act of 1940, and the Employee
Retirement Income Security Act of 1974 ("ERISA"). Because there may be different
proxy voting standards for ERISA and non-ERISA clients, INVESCO's policy is to
apply the proxy voting policies and procedures described herein to all of its
clients. Any discussion herein which refers to an ERISA or non-ERISA situation
is used for reference only.

INVESCO may amend its proxy policies and procedures from time to time without
prior notice to its clients.

BACKGROUND

ERISA fiduciary standards relating to proxy voting have not been interpreted
until more recent times.

Due to the large number of mergers and acquisitions in the 1980s and the growing
importance of institutional investors in the equity markets, the Department of
Labor ("DOL"), which enforces fiduciary standards for ERISA plan sponsors and
managers, took the position that the right to vote shares of stock owned by a
pension plan is, in itself, an asset of the plan. Thus, the "Wall Street Rule"
of "vote with management (or abstain from voting) or sell the stock" was under
scrutiny.

In 1988, the DOL stated, in the "Avon Letter", that the fiduciary act of
managing plan assets that are shares of corporate stock includes the voting of
proxies appurtenant to those shares of stock. Accordingly, where the authority
to manage plan assets has been delegated to an investment manager pursuant to
ERISA, no person other than the investment manager has authority to vote proxies
appurtenant to such plan assets, except to the extent the named fiduciary has
reserved to itself the right to direct a plan trustee regarding the voting of
proxies.

In 1990, in the "Monks Letter", the DOL stated that an ERISA violation would
occur if the investment manager is explicitly or implicitly assigned the
authority to vote proxies appurtenant to certain plan-owned stock and the named
fiduciary, trustee or any person other than the

investment manager makes the decision on how to vote the same proxies. Thus,
according to the DOL, if the investment management contract expressly provides
that the investment manager is not required to vote proxies, but does not
expressly preclude the investment manager from voting the relevant proxies, the
investment manager would have the exclusive fiduciary responsibility for voting
the proxies. In contrast, the DOL pointed out that if either the plan document
or the investment management contract expressly precludes the investment manager
from voting proxies, the responsibility for voting proxies lies exclusively with
the trustee.

In 1994, in its Interpretive Bulletin 94-2 ("94-2"), the DOL reiterated and
supplemented the Avon and Monks Letters. In addition, 94-2 extended the
principles put forth in the Avon and Monks Letters to voting of proxies on
shares of foreign corporations. However, the DOL recognized that the cost of
exercising a vote on a particular proxy proposal could exceed any benefit that
the plan could expect to gain in voting on the proposal. Therefore, the plan
fiduciary had to weigh the costs and benefits of voting on proxy proposals
relating to foreign securities and make an informed decision with respect to
whether voting a given proxy proposal is prudent and solely in the interest of
the plan's participants and beneficiaries.

In January 2003, the Securities and Exchange Commission ("SEC") adopted
regulations regarding Proxy Voting by investment advisers (SEC Release No.
IA-2106). These regulations required investment advisers to (1) adopt written
proxy voting policies and procedures which describe how the adviser addresses
material conflicts between its interests and those of its clients with respect
to proxy voting and which also addresses how the adviser resolves those
conflicts in the bet interest of clients; (2) disclose to clients how they can
obtain information from the adviser on how the adviser voted the proxies; and
(3) describe to clients its proxy voting policies and procedure to clients and,
upon request, furnish a copy of them to clients.

PROXY VOTING POLICY

Consistent with the fiduciary standards discussed above, INVESCO will vote
proxies unless either the named fiduciary (e.g., the plan sponsor) retains in
writing the right to direct the plan trustee or a third party to vote proxies or
INVESCO determines that any benefit the client might gain from voting a proxy
would be outweighed by the costs associated therewith (i.e., foreign proxies).
In voting such proxies, INVESCO will act prudently, taking into consideration
those factors that may affect the value of the security and will vote such
proxies in a manner in which, in its opinion, is in the best interests of
clients.

PROXY COMMITTEE

The INVESCO Proxy Committee will establish guidelines and procedures for voting
proxies and will periodically review records on how proxies were voted.

The Proxy Committee will consist of certain of INVESCO's equity investment
professionals and non-equity investment professionals.

PROXY MANAGER

The Proxy Committee will appoint a Proxy Manager and/or hire a third-party Proxy
Agent to analyze proxies, act as a liaison to the Proxy Committee and manage the
proxy voting process, which process includes the voting of proxies and the
maintenance of appropriate records.

The Proxy Manager will exercise discretion to vote proxies within the guidelines
established by the Proxy Committee. The Proxy Manager will consult with the
Proxy Committee in determining how to vote proxies for issues not specifically
covered by the proxy voting guidelines adopted by the Proxy Committee or in
situations where the Proxy Manager or members of the Committee determine that
consultation is prudent.

CONFLICTS OF INTEREST

In effecting our policy of voting proxies in the best interests of our clients,
there may be occasions where the voting of such proxies may present an actual or
perceived conflict of interest between INVESCO, as the investment manager, and
clients.

Some of these potential conflicts of interest situations include, but are not
limited to, (1) where INVESCO (or an affiliate) manage assets, administer
employee benefit plans, or provides other financial services or products to
companies whose management is soliciting proxies and failure to vote proxies in
favor of the management of such a company may harm our (or an affiliate's)
relationship with the company; (2) where INVESCO (or an affiliate) may have a
business relationship, not with the company, but with a proponent of a proxy
proposal and where INVESCO (or an affiliate) may manage assets for the proponent
or (3) where INVESCO (or an affiliate) or any member of the Proxy Committee may
have personal or business relationships with participants in proxy contests,
corporate directors or candidates for corporate directorships, or where INVESCO
(or an affiliate) or any member of the Proxy Committee may have a personal
interest in the outcome of a particular matter before shareholders.

In order to avoid even the appearance of impropriety, in the event that INVESCO
(or an affiliate) manages assets for a company, its pension plan, or related
entity or where any member of the Proxy Committee has a personal conflict of
interest, and where we have invested clients' funds in that company's shares,
the Proxy Committee will not take into consideration this relationship and will
vote proxies in that company solely in the best interest of all of our clients.

In addition, members of the Proxy Committee must notify INVESCO's Chief
Compliance Officer, with impunity and without fear of retribution or
retaliation, of any direct, indirect or perceived improper influence made by
anyone within INVESCO or by an affiliated company's representatives with regard
to how INVESCO should vote proxies. The Chief Compliance Officer will
investigate the allegations and will report his or her findings the INVESCO
Management Committee. In the event that it is determined that improper influence
was made, the Management Committee will determine the appropriate action to take
which may include, but is not limited to, (1) notifying the affiliated company's
Chief Executive Officer, its Management Committee or Board of Directors, (2)
taking remedial action, if necessary, to correct the result of any improper
influence where the clients have been harmed, or (3) notifying the appropriate

regulatory agencies of the improper influence and to fully cooperate with these
regulatory agencies as required. In all cases, the Proxy Committee shall not
take into consideration the improper influence in determining how to vote
proxies and will vote proxies solely in the best interest of clients.

Furthermore, members of the Proxy Committee must advise INVESCO's Chief
Compliance Officer and fellow Committee members of any actual or potential
conflicts of interest he or she may have with regard to how proxies are to be
voted regarding certain companies (e.g., personal security ownership in a
company, or personal or business relationships with participants in proxy
contests, corporate directors or candidates for corporate directorships). After
reviewing such conflict, upon advice from the Chief Compliance Officer, the
Committee may require such Committee member to recuse himself or herself from
participating in the discussions regarding the proxy vote item and from casting
a vote regarding how INVESCO should vote such proxy.

PROXY VOTING PROCEDURES

The Proxy Manager will:

o Vote proxies;

o Take reasonable steps to reconcile proxies received by INVESCO and/or a
third-party Proxy Agent who administers the vote with shares held in the
accounts;

o Document the vote and rationale for each proxy voted (routine matters are
considered to be documented if a proxy is voted in accordance with the
Proxy Voting Guidelines established by the Proxy Committee);

o If requested, provide to clients a report of the proxies voted on their
behalf.

PROXY VOTING GUIDELINES

The Proxy Committee has adopted the following guidelines in voting proxies:

I. Corporate Governance

INVESCO will evaluate each proposal separately. However, INVESCO will
generally vote FOR a management sponsored proposal unless it believes that
adoption of the proposal may have a negative impact on the economic
interests of shareholders.

INVESCO will generally vote FOR

o Annual election of directors

o Appointment of auditors

o Indemnification of management or directors or both against negligent
or unreasonable action

o Confidentiality of voting

o Equal access to proxy statements

o Cumulative voting

o Declassification of Boards

o Majority of Independent Directors

INVESCO will generally vote AGAINST

o Removal of directors from office only for cause or by a supermajority
vote

o "Sweeteners" to attract support for proposals

o Unequal voting rights proposals ("superstock")

o Staggered or classified election of directors

o Limitation of shareholder rights to remove directors, amend by-laws,
call special meetings, nominate directors, or other actions to limit
or abolish shareholder rights to act independently such as acting by
written consent

o Proposals to vote unmarked proxies in favor of management

o Proposals to eliminate existing pre-emptive rights

II. Takeover Defense and Related Actions

INVESCO will evaluate each proposal separately. Generally, INVESCO will
vote FOR a management sponsored anti-takeover proposal which (1) enhances
management's bargaining position and (2) when combined with other
anti-takeover provisions, including state takeover laws, does not
discourage serious offers. INVESCO believes that generally four or more
anti-takeover measures, which can only be repealed by a super-majority
vote, are considered sufficient to discourage serious offers and therefore
should be voted AGAINST.

INVESCO will generally vote FOR

o Fair price provisions

o Certain increases in authorized shares and/or creation of new classes
of common or preferred stock

o Proposals to eliminate greenmail provisions

o Proposals to eliminate poison pill provisions

o Proposals to re-evaluate or eliminate in-place "shark repellents"

INVESCO will generally vote AGAINST

o Proposals authorizing the company's board of directors to adopt, amend
or repeal by-laws without shareholders' approval

o Proposals authorizing the company's management or board of directors
to buy back shares at premium prices without shareholders' approval

III. Compensation Plans

INVESCO will evaluate each proposal separately. INVESCO believes that in
order for companies to recruit, promote and retain competent personnel,
companies must provide appropriate and competitive compensation plans.
INVESCO will generally vote FOR management sponsored compensation plans,
which are reasonable, industry competitive and not unduly burdensome to the
company in order for the company to recruit, promote and retain competent
personnel.

INVESCO will generally vote FOR

o Stock option plans and/or stock appreciation right plans

o Profit incentive plans provided the option is priced at 100% fair
market value

o Extension of stock option grants to non-employee directors in lieu of
their cash compensation provided the option is priced at or about the
then fair market value

o Profit sharing, thrift or similar savings plans

INVESCO will generally vote AGAINST

o Stock option plans that permit issuance of loans to management or
selected employees with authority to sell stock purchased by the loan
without immediate repayment, or that are overly generous (below market
price or with appreciation rights paying the difference between option
price and the stock, or permit pyramiding or the directors to lower
the purchase price of outstanding options without a simultaneous and
proportionate reduction in the number of shares available)

o Incentive plans which become effective in the event of hostile
takeovers or mergers (golden and tin parachutes)

o Proposals creating an unusually favorable compensation structure in
advance of a sale of the company

o Proposals that fail to link executive compensation to management
performance

o Acceleration of stock options/awards if the majority of the board of
directors changes within a two year period

o Grant of stock options to non-employee directors in lieu of their cash
compensation at a price below 100% fair market value

o Adoption of a stock purchase plan at less than 85% of fair market
value

IV. Capital Structure, Classes of Stock and Recapitalization

INVESCO will evaluate each proposal separately. INVESCO recognizes that
from time to time companies must reorganize their capital structure in
order to avail themselves of access to the capital markets and in order to
restructure their financial position in order to raise capital and to be
better capitalized. Generally, INVESCO will vote FOR such management
sponsored reorganization proposals if such proposals will help the company
gain better access to the capital markets and to attain a better financial
position. INVESCO will generally vote AGAINST such proposals that appear to
entrench management and do not provide shareholders with economic value.

INVESCO will generally vote FOR

o Proposals to reincorporate or reorganize into a holding company

o Authorization of additional common or preferred shares to accommodate
a stock split or other business purposes not related to anti-takeover
measures as long as the increase is not excessive and a valid need has
been proven

INVESCO will generally vote AGAINST

o Proposals designed to discourage mergers and acquisitions in advance

o Proposals to change state of incorporation to a state less favorable
to shareholders' interests

o Reincorporating in another state to implement anti-takeover measures

V. Social Responsibility

INVESCO will evaluate each proposal separately. INVESCO believes that a
corporation, if it is in a solid financial position and can afford to do
so, has an obligation to return certain largesse to the communities in
which it operates. INVESCO believes that the primary mission of a company
is to be profitable. However, where a company has proven that it is able to
sustain a level of profitability and the market price of the company's
shares reflect an appropriate economic value for such shares, INVESCO will
generally

vote FOR certain social responsibility initiatives. INVESCO will generally
vote AGAINST proposed social responsibility initiatives if it believes that
the company already has adequate policies and procedures in place and it
should focus its efforts on enhancing shareholder value where the assets
and resources involved could be put to better use in obtaining profits.

INVESCO will generally vote FOR

o International Labor Organization Principles

o Resolutions seeking Basic Labor Protections and Equal Employment
Opportunity

o Expanding EEO/Social Responsibility Reporting

RECORD KEEPING

The Proxy Manager will take necessary steps to retain proxy voting records for
the period of time as required by regulations.

ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not yet applicable.

ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.

REGISTRANT PURCHASES OF EQUITY SECURITIES
- -----------------------------------------------------------------------------------------------------------------------
(C) TOTAL NUMBER OF SHARES (D) MAXIMUM NUMBER (OR
(A) TOTAL NUMBER (B) AVERAGE (OR UNITS) PURCHASED AS PART APPROXIMATE DOLLAR VALUE) OF SHARES
OF SHARES (OR PRICE PAID PER OF PUBLICLY ANNOUNCED PLANS (OR UNITS) THAT MAY YET BE PURCHASED
PERIOD UNITS) PURCHASED SHARE (OR UNIT) OR PROGRAMS UNDER THE PLANS OR PROGRAMS
- -----------------------------------------------------------------------------------------------------------------------

Month #1 N/A N/A N/A N/A
7/1/04-
7/31/04
- -----------------------------------------------------------------------------------------------------------------------
Month #2 N/A N/A N/A N/A
8/1/04-
8/31/04
- -----------------------------------------------------------------------------------------------------------------------
Month #3 N/A N/A N/A N/A
9/1/04-
9/30/04
- -----------------------------------------------------------------------------------------------------------------------
Month #4 N/A N/A N/A N/A
10/1/04-
10/31/04
- -----------------------------------------------------------------------------------------------------------------------
Month #5 N/A N/A N/A N/A
11/1/04-
11/30/04
- -----------------------------------------------------------------------------------------------------------------------
Month #6 N/A N/A N/A N/A
12/1/04-
12/31/04
- -----------------------------------------------------------------------------------------------------------------------
Total N/A N/A N/A N/A
- -----------------------------------------------------------------------------------------------------------------------

ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

There have been no material changes to the procedures by which the shareholders
may recommend nominees to the registrant's board of trustees, since the
registrant last provided disclosure in response to the requirements of Item
7(d)(2)(ii)(G) of Schedule 14A (17 CFR 240.14a-101), or this Item.

ITEM 11. CONTROLS AND PROCEDURES.

(a) The registrant's principal executive and principal financial officers,
or persons performing similar functions, have concluded that the
registrant's disclosure controls and procedures (as defined in Rule
30a-3(c) under the Investment Company Act of 1940, as amended (the
"1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within
90 days of the filing date of the report, based on their evaluation of
these controls and procedures required by Rule 30a-3(b) under the 1940
Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the
Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or
240.15d-15(b)).

(b) There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17
CFR 270.30a-3(d)) that occurred during the registrant's

second fiscal quarter of the period covered by this report that has
materially affected, or is reasonably likely to materially affect, the
registrant's internal control over financial reporting.

ITEM 12. EXHIBITS.

(a)(1) Code of ethics, that is the subject of disclosure required by Item 2 is
attached hereto.

(a)(2) Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section
302 of the Sarbanes-Oxley Act of 2002 are attached hereto.

(a)(3) Not applicable.

(b) Certifications pursuant to Rule 30a-2(b) under the 1940 Act and Section
906 of the Sarbanes-Oxley Act of 2002 are attached hereto.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.

(Registrant) CIM High Yield Securities
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By (Signature and Title) /s/ George Baumann
--------------------------------------------------------
George Baumann, President
(principal executive officer)

Date March 8, 2005
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Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.

By (Signature and Title) /s/ George Baumann
--------------------------------------------------------
George Baumann, President
(principal executive officer)

Date March 8, 2005
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By (Signature and Title) /s/ Cindy Cameron
--------------------------------------------------------
Cindy Cameron, Treasurer
(principal financial officer)

Date March 8, 2005
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