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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- 07890
AIM Tax-Exempt Funds
(Exact name of registrant as specified in charter)
11 Greenway Plaza, Suite 100 Houston, Texas 77046
(Address of principal executive offices) (Zip code)
Philip A. Taylor 11 Greenway Plaza, Suite 100 Houston, Texas 77046
(Name and address of agent for service)
Registrant's telephone number, including area code: (713) 626-1919
Date of fiscal year end: 3/31
Date of reporting period: 3/31/09
Item 1. Reports to Stockholders.
[INVESCO AIM LOGO] AIM HIGH INCOME MUNICIPAL FUND
--SERVICE MARK-- Annual Report to Shareholders o March 31, 2009
[MOUNTAIN GRAPHIC]
2 Letters to Shareholders
4 Performance Summary
4 Management Discussion
6 Long-Term Fund Performance
8 Supplemental Information
9 Schedule of Investments
28 Financial Statements
31 Notes to Financial Statements
37 Financial Highlights
39 Auditor's Report
40 Fund Expenses
41 Tax Information
42 Trustees and Officers
Supplement to Annual Report dated 3/31/09
AIM HIGH INCOME MUNICIPAL FUND
=======================================================================================
INSTITUTIONAL CLASS SHARES AVERAGE ANNUAL TOTAL RETURNS
For periods ended 3/31/09
The following information has been
prepared to provide Institutional Class AFTER TAXES
shareholders with a performance overview ON DISTRIBUTIONS
specific to their holdings. Institutional AFTER TAXES AND SALE OF
Class shares are offered exclusively to BEFORE TAXES ON DISTRIBUTIONS FUND SHARES
institutional investors, including defined ------------ ---------------- ----------------
contribution plans that meet certain 10 Years 1.48% 1.48% 2.16%
criteria. 5 Years -0.41 -0.41 0.61
1 Year -15.99 -15.99 -8.36
=======================================================================================
Institutional Class shares' inception date sections of the actual report that are
is July 31, 2006. Returns since that date based on expenses incurred during the
are historical returns. All other returns period covered by the report.
are blended returns of historical
Institutional Class share performance and Had the advisor not waived fees and/or
restated Class A share performance (for expenses, performance would have been
periods prior to the inception date of lower.
Institutional Class shares) at net asset
value (NAV) and reflect the Rule 12b-1 Please note that past performance is
fees applicable to Class A shares. Class A not indicative of future results. More
shares' inception date is January 2, 1998. recent returns may be more or less than
those shown. All returns assume
Institutional Class shares have no reinvestment of distributions at NAV.
sales charge; therefore, performance is at Investment return and principal value will
NAV. Performance of Institutional Class fluctuate so your shares, when redeemed,
shares will differ from performance of may be worth more or less than their
other share classes primarily due to original cost. See full report for
differing sales charges and class information on comparative benchmarks.
expenses. Please consult your Fund prospectus for
more information. For the most current
The net annual Fund operating expense month-end performance, please call 800 451
ratio set forth in the most recent 4246 or visit invescoaim.com.
prospectus as of the date of this
supplement for Institutional Class shares (1) Total annual operating expenses less
is 0.55%.1 The total annual Fund operating any voluntary fee waivers and/or
expense ratio set forth in the most recent expense reimbursements by the
Fund prospectus as of the date of this advisor. Voluntary fee arrangements
supplement for Institutional Class shares can be discontinued or modified at
was 0.75%. The expense ratios presented any time without further notice to
above may vary from the expense ratios investors. See current prospectus for
presented in other more information.
==========================================
NASDAQ SYMBOL AHMIX
==========================================
Over for information on your Fund's expenses.
THIS SUPPLEMENT MUST BE ACCOMPANIED OR PRECEDED BY A CURRENTLY EFFECTIVE FUND
PROSPECTUS, WHICH CONTAINS MORE COMPLETE INFORMATION, INCLUDING SALES CHARGES AND
EXPENSES. INVESTORS SHOULD READ IT CAREFULLY BEFORE INVESTING.
FOR INSTITUTIONAL INVESTOR USE ONLY
[INVESCO AIM LOGO]
This material is for institutional investor use only and may not be quoted, reproduced - SERVICE MARK -
or shown to the public, nor used in written form as sales literature for public use.
invescoaim.com HIM-INS-1 Invesco Aim Distributors, Inc.
CALCULATING YOUR ONGOING FUND EXPENSES
EXAMPLE
As a shareholder of the Fund, you incur ongoing costs, including management fees
and other Fund expenses. This example is intended to help you understand your
ongoing costs (in dollars) of investing in the Fund and to compare these costs
with ongoing costs of investing in other mutual funds. The example is based on
an investment of $1,000 invested at the beginning of the period and held for the
entire period October 1, 2008, through March 31, 2009.
ACTUAL EXPENSES
The table below provides information about actual account values and actual
expenses. You may use the information in this table, together with the amount
you invested, to estimate the expenses that you paid over the period. Simply
divide your account value by $1,000 (for example, an $8,600 account value
divided by $1,000 = 8.6), then multiply the result by the number in the table
under the heading entitled "Actual Expenses Paid During Period" to estimate the
expenses you paid on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The table below also provides information about hypothetical account values and
hypothetical expenses based on the Fund's actual expense ratio and an assumed
rate of return of 5% per year before expenses, which is not the Fund's actual
return.
The hypothetical account values and expenses may not be used to estimate the
actual ending account balance or expenses you paid for the period. You may use
this information to compare the ongoing costs of investing in the Fund and other
funds. To do so, compare this 5% hypothetical example with the 5% hypothetical
examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only. Therefore, the hypothetical information is useful in
comparing ongoing costs only, and will not help you determine the relative total
costs of owning different funds.
<Table>
<Caption>
- -----------------------------------------------------------------------------------------------------------
HYPOTHETICAL
(5% ANNUAL RETURN BEFORE
ACTUAL EXPENSES)
------------------------------------------------------
BEGINNING ENDING EXPENSES ENDING EXPENSES ANNUALIZED
ACCOUNT VALUE ACCOUNT VALUE PAID DURING ACCOUNT VALUE PAID DURING EXPENSE
CLASS (10/01/08) (03/31/09)(1) PERIOD(2,3) (03/31/09) PERIOD(2,4) RATIO(2)
- -----------------------------------------------------------------------------------------------------------
Institutional $1,000.00 $873.90 $2.38 $1,022.39 $2.57 0.51%
- -----------------------------------------------------------------------------------------------------------
</Table>
(1) The actual ending account value is based on the actual total return of the
Fund for the period October 1, 2008, through March 31, 2009, after actual
expenses and will differ from the hypothetical ending account value which is
based on the Fund's expense ratio and a hypothetical annual return of 5%
before expenses.
(2) Expenses are equal to the Fund's annualized expense ratio as indicated above
multiplied by the average account value over the period, multiplied by
182/365 to reflect the most recent fiscal half year. Effective March 4,
2009, the Fund's advisor has voluntarily agreed to waive advisory fees
and/or reimburse expenses to the extent necessary to limit Total Annual Fund
Operating Expenses of the Institutional Class shares to 0.55% of average
daily net assets. The annualized expense ratios restated as if this
agreement had been in effect throughout the entire most recent fiscal half
year is 0.55%
(3) The actual expenses paid restated as if the changes discussed above had been
in effect throughout the entire most recent fiscal half year are $2.57 for
the Institutional Class shares.
(4) The hypothetical expenses paid restated as if the changes discussed above in
footnote 2 had been in effect throughout the entire most recent fiscal half
year are $2.77 for Institutional Class shares.
AIM HIGH INCOME MUNICIPAL FUND
Dear Shareholders:
The past year was difficult to say the least for virtually all investors. Market indexes in the U.S.
and around the globe nosedived in 2008, and the vast majority of us have seen sharp declines in the
[TAYLOR value of our investments. As I write this letter, "market experts" remain divided on the outlook for
PHOTO] the market. While some argue the worst of the decline is over, others say we have farther to fall.
There is widespread agreement, however, that markets are likely to remain volatile for some time to
come.
We've all read about subprime lending, government bailouts and investment scandals -- but we know
that as individuals, we have little control over such matters. Rather, I'd like to discuss with you
actions you may have already taken, or can take now, that may benefit you going forward.
Philip Taylor
BOOMS AND BUSTS
Recent history should have reminded all of us that investor sentiment can be fickle. The
technology-driven bull market of the late 1990s gave way to a sharp decline from 2000 to 2002 when the
"tech
bubble" burst. More recently, the 2003 to 2007 bull market, driven largely by financial stocks and a housing boom, among other
factors, gave way to the current market decline when the "housing bubble" burst.
These market downturns hurt nearly all investors. But they were particularly painful for investors who, seeking high, short-term
returns, abandoned their long-term, diversified investment plans and decided to chase performance -- i.e., allocate a large portion
of their assets into the "hot" investments du jour. Many of those investors discovered they had unwittingly bought at the top of the
market, and they saw the value of their assets decline significantly as market leadership changed. History has shown that seeking
the highest short-term returns possible has often led to long-term disappointment.
This is why we believe investors should work with their financial advisors to devise a goal-based financial strategy -- a
long-term plan with a reasonable prospect of achieving predetermined financial goals in line with individual risk tolerance. Such a
strategy cannot guarantee a profit or protect against loss in a declining market, but it may help investors avoid emotion-driven,
short-term investment mistakes.
WHAT TO DO NOW
None of us can control the markets, but we can control our own reaction to the unsettling volatility we're currently experiencing.
Here are some steps that may help position you for whatever the market brings next:
o REVISIT YOUR GOALS. Work with your financial advisor to create specific, concrete investment goals consistent with your
risk tolerance. Scared by market volatility, many investors fled to cash in recent months. While that may be entirely
appropriate for investors approaching retirement, other investors may need the growth potential of equities to achieve
their long-term goals. Your financial advisor can suggest investments that match your goals and risk tolerance.
o RESIST LOOKING OVER THE FENCE. Every investor's needs, goals and risk tolerance are different. Your neighbor's,
co-worker's or relative's investments have no relevance to yours because their circumstances, goals and risk tolerances
are as individual as yours.
o LET LOGIC BE YOUR GUIDE. Market volatility is a fact of life for investors. Market declines can be painful, but
historically they haven't proved permanent. Your financial advisor can help you approach your investment plan logically,
not emotionally.
WHAT WE'RE DOING
Invesco Aim has worked on behalf of investors in both bull markets and bear markets. That is why we're committed to good
stewardship, good communication and sound investment management.
To be good stewards, we've established best practice risk-management and investment oversight processes, further enhancing our
compliance oversight and our transparency to our shareholders and our independent fund board.
To be good communicators, we've revamped our website to put Investment Perspectives front and center on the home page of
invescoaim.com and on your account balance page. Our chief investment officers, portfolio managers and I are eager to communicate
with you directly about your investments, market conditions and other topics that may be helpful to you.
To be good investment managers, we've focused on doing one thing well: managing your money. At Invesco Aim, managing your money
is all we do. We believe mutual funds should have well-defined, clearly articulated and repeatable investment strategies. Our funds
have stayed true to their investment strategies even during this current period of market volatility.
CONTACT US
If you have questions about this report or your account, please contact one of our client service representatives at 800 959 4246.
I also invite you to visit invescoaim.com, where you can check on your individual account, obtain long-term performance
information for your fund and read market commentaries from our investment professionals.
As always, I welcome your comments and questions. Please contact me at phil@invescoaim.com and let me know what's on your mind.
Thank you for investing with us. All of us at Invesco Aim look forward to serving you.
Sincerely,
/s/PHILIP TAYLOR
Philip Taylor
Senior Managing Director, Invesco Ltd.
CEO, Invesco Aim
2 AIM HIGH INCOME MUNICIPAL FUND
Dear Fellow Shareholders:
Since my last letter, continuing troubles in the global economy and financial markets have negatively
affected all investors. The new government promises to move quickly with a stimulus package, yet
considerable anxiety remains about how, when and what kind of a recovery will occur. However, mutual
[CROCKETT funds generally are more diversified than other investments; as shareholders we invest not in a single
PHOTO] security but in a portfolio of multiple securities. The benefits of diversification have been
reiterated by the stories of investors who "lost everything" because they had too many of their assets
in one place, whether that place was a single money manager or their employer's stock. Mutual fund
investors also have the opportunity to diversify further among different types of funds that each
deploy a different strategy and focus on different kinds of securities. These include conservatively
Bruce Crockett managed money market funds, which, relative to other securities, continue to offer a more safe,
liquid, and convenient way to invest short-term assets.
In addition to diversification, investing discipline is essential during challenging times such as these. Strategies such as
dollar cost averaging, where individuals invest a consistent amount at regular intervals, can help investors acquire more fund
shares when prices are low. Periodic rebalancing of asset allocation plans achieves the same effect. "Buy low, sell high" has long
been the mantra of investment success, but the advice is not always easy to follow because it requires the discipline to resist
prevailing trends. Of course, investment strategies, such as dollar cost averaging and portfolio rebalancing do not guarantee a
profit or eliminate the risk of loss. Investors should consider their ability to continue investing regardless of fluctuating
security prices.
A long-term view is also important, particularly for assets that are not needed right away. In the past, it has often proven
better to keep long-term assets invested through a downturn than to miss the beginning of the upward trend. To develop a diversified
and disciplined investing plan that is right for your individual goals, I encourage you to consult an experienced and trustworthy
investment professional who has the knowledge and the tools to help you establish and implement the plan, monitor its results and
adapt it to changing goals and circumstances.
Even when working with a personal financial advisor, investors should supplement the relationship with their own knowledge and
awareness of the investments they hold. Visit the Invesco Aim website at invescoaim.com regularly to find out what is happening in
your AIM funds and to read timely market commentary from Invesco Aim management, strategists and portfolio managers. The site's
"Education and Planning" section can also help you clarify basic investment concepts, learn how to choose a financial advisor,
evaluate different investment choices and make more informed investment decisions. Invesco Aim's redesigned public home page
recently received a Gold Award for its user-friendly navigation and graphics from The Mutual Funds Monitor Awards, sponsored by
Corporate Insight.
As always, your Board of Trustees and Invesco Aim are committed to putting your interests first by controlling costs, monitoring
investment performance and streamlining the investment management process during these difficult times. Your Board has already begun
the annual review and management contract renewal process with the continuing goal of making AIM funds one of the best and most
cost-effective ways for you to invest your hard-earned money.
While the investing climate may remain uncertain for a while, economies and markets are dynamic, and no stage is ever permanent.
Please feel free to contact me in writing with your questions or concerns. You can send an email to me at bruce @ brucecrockett.com.
Best regards,
/s/ BRUCE L. CROCKETT
Bruce L. Crockett
Independent Chair
AIM Funds Board of Trustees
3 AIM HIGH INCOME MUNICIPAL FUND
MANAGEMENT'S DISCUSSION OF FUND PERFORMANCE
======================================================================================= to 2.0% in 2007.(1) Driving the continued
PERFORMANCE SUMMARY economic contraction was an increase in
the unemployment rate which led to a sharp
AIM High Income Municipal Fund posted negative returns during the 12-month reporting decline in personal expenditures.
period ended March 31,2009. At net asset value (NAV), the Fund underperformed its broad
based benchmark, the Barclays Capital Municipal Bond Index,(triangle) but outperformed In response to general economic
its style-specific benchmark, the Barclays Capital High Yield Municipal Index.(square) concerns and the severity of the
contraction in credit and housing markets,
Lower rated bonds underperformed higher quality bonds during the fiscal year. The the U.S. Federal Reserve (the Fed) cut its
Fund's exposure to higher rated bonds was a key factor allowing it to outperform its federal funds target rate over the last 12
style-specific index. months from 2.25% to a range of zero to
0.25%.(2) As reductions to this level
Your Fund's long-term performance appears later in this report. essentially removed interest rate
reductions as a policy tool, the Fed
FUND VS. INDEXES announced plans in March to begin direct
purchases of U.S. Treasury and mortgage
Total returns, 3/31/08 to 3/31/09, at net asset value (NAV). Performance shown does not securities.
include applicable contingent deferred sales charges (CDSC) or front-end sales charges,
which would have reduced performance. U.S. Treasury yields declined over the
fiscal year consistent with interest rate
Class A Shares -16.21% reductions and an investor flight to
Class B Shares -16.85 quality. The drop in yields was most
Class C Shares -16.75 pronounced in the fourth quarter of 2008
Class Y Shares* -16.00 as demand for the safety of Treasuries
Barclays Capital Municipal Bond Index(triangle) (Broad Market Index)** 2.27 increased as world markets declined. While
Barclays Capital High Yield Municipal Bond Index(square) markets continued their sell off into
(Style-Specific Index)** -19.16 2009, Treasury investors grew concerned
Lipper High Yield Municipal Debt Funds Index(triangle) (Peer Group Index) -19.42 over steep increases in debt levels and
the potential for rising inflation. The
(triangle) Lipper Inc.: fiscal year closed with Treasuries
relinquishing some of the gains made
(square) Invesco Aim, Barclays Capital earlier in the reporting period. Relative
to Treasuries, municipal bonds increased
* Share class incepted during the fiscal year. See page 7 for a detailed their relative yield advantage during the
explanation of Fund performance. fiscal year. On March 31, 2008, five-year
investment-grade general obligation
** Effective 11/03/08, Lehman Brothers indexes were rebranded as Barclays municipal bonds yielded 2.92%, which was
Capital indexes. 0.20% more than the comparable Treasury
======================================================================================= note.(3, 4) As of March 31, 2009, five-
year investment grade general obligation
HOW WE INVEST o To avoid credit quality deterioration municipal bonds yielded 2.07%, which was
or other unfavorable circumstances 0.25% more than the comparable Treasury
We invest mostly in municipal revenue affecting the financial viability of security.(3, 4)
bonds as proceeds for specific projects an issuer/ project
are used to pay interest and principal on
those bonds. o To reduce or extend duration of the
Fund
We believe an opportunity exists among
relatively small, less-followed municipal o To reinvest in other securities with
revenue bond issues. These bonds, which more favorable return characteristics
are backed by dedicated revenues from
specific projects, may be priced o To change sector exposure
incorrectly in the market with yields that
do not accurately correspond to the risk MARKET CONDITIONS AND YOUR FUND
factors of the securities.
Real gross domestic product (GDP), the
We generally take a buy-and-hold broadest measure of the nation's economic
approach, but may decide to sell a holding activity, declined at an annual rate of
for any of the following reasons: 6.3% in the fourth quarter of 2008.(1) For
all of 2008, GDP grew at 1.1 % compared
========================================== =======================================================================================
PORTFOLIO COMPOSITION TOP FIVE FIXED INCOME HOLDINGS*
By credit quality %OF
AAA 8.3% COUPON MATURITY NET ASSETS
AA 2.1 ------ -------- ----------
A 4.5 1. West Virginia (State of) Hospital Finance Authority 6.50% 10/1/38 0.8%
BBB 12.4 2. Hillside (City of) 7.00 1/1/28 0.7
BB 4.2 3. Rockdale (County of) Development Authority 6.13 1/1/34 0.6
B 0.4 4. Platte (County of) Industrial Development Authority 6.85 4/1/29 0.5
CCC 0.1 5. Colorado (State of) Educational &
NR 68.0 Cultural Facilities Authority 8.25 11/1/39 0.5
========================================== =======================================================================================
Source: S&P, Moody's, Fitch: This table is The Fund's holdings are subject to change, and there is no assurance that the Fund will
calculated based on the highest rating continue to hold any particular security.
assigned by one of these agencies to an
individual security. * Excluding cash equivalent holdings.
==========================================
Total Net Assets $487.0 million
Total Number of Holdings* 550
==========================================
4 AIM HIGH INCOME MUNICIPAL FUND
Within the municipal market, for charter schools due to their strong FRANKLIN RUBEN
intermediate and short maturity bonds fundamentals such as industry maturation,
outperformed long-maturity issues as the growing enrollment and continued support Senior portfolio manager,
municipal bond yield curve declined less from local, state and federal authorities. is lead manager of AIM High
on the long-end than on the short-end. However, performance of these three [RUBEN Income Municipal Fund.
General obligation bonds outperformed industry groups, and revenue bonds in PHOTO] Mr. Ruben joined Invesco
revenue bonds as declines in housing and general, was negatively affected by Aim in 1997 after having
hospital segments adversely affected adverse market conditions, which detracted served as a senior fixed income research
revenue bonds. Pre-refunded bonds were from our relative returns. analyst and associate portfolio manager. A
strong performers as their generally native of Johannesburg, South Africa, he
higher quality ratings and shorter At the issue specific level, MAIN earned a B.S. in accounting and an M.S. in
maturities attracted investors seeking STREET NATURAL GAS was one of the worst finance, both from the University of Texas
safety. In the last quarter of the fiscal performers for the Fund during the at Dallas. Mr. Ruben also completed the
year, revenue bonds outperformed general reporting period. The bonds defaulted on Cash Management Executive Education
obligation bonds as the economic recession September 30, 2008, due to a missed Program at Duke University.
weighed further on the budget outlook for "mandatory redemption" payment that was
certain states. tied to the bankruptcy of Lehman Brothers GERARD POLLARD
(not a Fund holding). We sold the holding.
Portfolio manager, is
Despite unfavorable market WYNDHAM HILL METROPOLITAN DISTRICT was manager of AIM High Income
developments, we adhered to our one of our best performers during the Municipal Fund. Mr. Pollard
established investment process by fiscal year. The bonds were called at par [POLLARD served as a senior analyst
maintaining our focus on high yield during the holding period due to covenants PHOTO] on Invesco Aim's Municipal
municipal bonds within the non-rated that required the issuer to call Bond Team from 1998 to
sector. In this credit quality category, outstanding securities should any proceeds 2007. Prior to joining
we try to identify unique opportunities remain three years after the project was Invesco Aim, he was a money market trader
offering attractive structural and yield started. and a fixed income analyst for another
advantages over the long term. However, firm. He has been in the investment
lower rated tax-exempt bonds experienced We thank you for your continued industry since 1985. Mr. Pollard earned a
significant price declines relative to investment in AIM High Income Municipal B.B.A. from the University of Houston and
high-quality issues. Exposure to non-rated Fund. an M.B.A. in finance from the University
bonds generally detracted from relative of St. Thomas.
and absolute returns. Some exposure to (1) Bureau of Economic Analysis
higher rated bonds also benefited absolute (2) U.S. Federal Reserve
and relative performance. (3) Barclays Capital
(4) Merrill Lynch
At the industry level, we continued to
limit our exposure to airline and tobacco The views and opinions expressed in
bonds as they were both highly volatile management's discussion of Fund
and were under pressure due to the performance are those of Invesco Aim
economic downturn. Tobacco bonds have also Advisors, Inc. These views and opinions
been adversely affected by tax and legal are subject to change at any time based on
issues. While over the one-year period the factors such as market and economic
airline industry posted a small gain, conditions. These views and opinions may
tobacco bonds produced large losses. As a not be relied upon as investment advice or
result, maintaining an underweight recommendations, or as an offer for a
exposure to these two industries particular security. The information is
contributed to relative and absolute not a complete analysis of every aspect of
performance. any market, country, industry, security or
the Fund. Statements of fact are from
At the sector level, we invested in sources considered reliable, but Invesco
hospital revenue bonds issued to service Aim Advisors, Inc. makes no representation
local communities, as hospitals have or warranty as to their completeness or
generally been improving their accuracy. Although historical performance
profitability because of better controls is no guarantee of future results, these
and more efficient expense management. We insights may help you understand our
also favored revenue bonds in the investment management philosophy.
retirement communities sector. As the
population ages, more baby boomers will See important Fund and index disclosures
retire, resulting in a need for more later in this report.
continuing care retirement communities.
Additionally, we remained positive in our
outlook
5 AIM HIGH INCOME MUNICIPAL FUND
YOUR FUND'S LONG-TERM PERFORMANCE
Past performance cannot guarantee This chart, which is a logarithmic
comparable future results. chart, presents the fluctuations in the
value of the Fund and its indexes. We
The data shown in the chart include believe that a logarithmic chart is more
reinvested distributions, applicable sales effective than other types of charts in
charges and Fund expenses including illustrating changes in value during the
management fees. Index results include early years shown in the chart. The
reinvested dividends, but they do not vertical axis, the one that indicates the
reflect sales charges. Performance of an dollar value of an investment, is
index of funds reflects fund expenses and constructed with each segment representing
management fees; performance of a market a percent change in the value of the
index does not. investment. In this chart, each segment
represents a doubling, or 100% change, in
Performance shown in the chart and the value of the investment. In other
table(s) does not reflect deduction of words, the space between $5,000 and
taxes a shareholder would pay on Fund $10,000 is the same size as the space
distributions or sale of Fund shares. between $10,000 and $20,000.
6 AIM HIGH INCOME MUNICIPAL FUND
AIM HIGH INCOME MUNICIPAL FUND
================================================================================
[MOUNTAIN CHART]
RESULTS OF A $10,000 INVESTMENT -- OLDEST SHARE CLASSES WITH SALES CHARGES SINCE
INCEPTION
Index data from 12/31 /97, Fund data from 1 /02/98
AIM AIM AIM BARCLAYS LIPPER BARCLAYS
HIGH INCOME HIGH INCOME HIGH INCOME CAPITAL HIGH YIELD CAPITAL
MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL HIGH YIELD
FUND- CLASS FUND- CLASS FUND- CLASS BOND DEBT FUNDS MUNICIPAL BOND
DATE A SHARES B SHARES C SHARES INDEX(1) INDEX(1) INDEX(2)
- -------- ----------- ----------- ----------- --------- ---------- --------------
12/31/97 $10000 $10000 $10000
1/98 $ 9558 $10024 $10022 10103 10096 10134
2/98 9592 10043 10051 10106 10121 10185
3/98 9624 10080 10078 10115 10137 10217
4/98 9609 10047 10055 10070 10116 10256
5/98 9748 10187 10184 10229 10242 10356
6/98 9819 10255 10252 10269 10298 10427
7/98 9824 10263 10260 10295 10315 10445
8/98 9986 10415 10412 10454 10444 10528
9/98 10088 10526 10523 10584 10532 10578
10/98 10074 10495 10492 10584 10506 10568
11/98 10110 10525 10522 10621 10525 10578
12/98 10125 10535 10532 10648 10556 10621
1/99 10190 10597 10594 10775 10641 10708
2/99 10146 10554 10552 10728 10616 10725
3/99 10202 10607 10604 10742 10641 10772
4/99 10260 10650 10647 10769 10685 10830
5/99 10245 10639 10636 10707 10640 10809
6/99 10118 10490 10487 10553 10523 10756
7/99 10114 10480 10477 10591 10548 10813
8/99 9934 10286 10283 10506 10422 10713
9/99 9837 10178 10175 10511 10403 10717
10/99 9541 9864 9861 10397 10239 10510
11/99 9537 9864 9861 10507 10304 10584
12/99 9354 9657 9665 10429 10171 10430
1/00 9180 9481 9479 10384 10045 10307
2/00 9261 9559 9556 10504 10145 10405
3/00 9408 9703 9701 10734 10298 10577
4/00 9350 9626 9634 10670 10255 10551
5/00 9281 9559 9556 10615 10198 10522
6/00 9420 9694 9702 10896 10341 10669
7/00 9536 9808 9804 11048 10446 10777
8/00 9533 9808 9804 11218 10574 10971
9/00 9529 9797 9793 11160 10548 10986
10/00 9592 9855 9851 11281 10580 11022
11/00 9599 9855 9851 11367 10565 10992
12/00 9708 9947 9955 11648 10651 11065
1/01 9738 9982 9979 11763 10723 11209
2/01 9802 10041 10038 11800 10783 11289
3/01 9889 10135 10132 11906 10859 11393
4/01 9885 10112 10109 11777 10794 11335
5/01 10009 10230 10227 11904 10910 11460
6/01 10121 10338 10335 11983 10990 11564
7/01 10255 10480 10477 12161 11131 11729
8/01 10436 10647 10644 12361 11304 11931
9/01 10347 10550 10547 12320 11222 11627
10/01 10460 10658 10655 12467 11272 11595
11/01 10430 10620 10617 12361 11206 11581
12/01 10376 10559 10556 12245 11117 11558
1/02 10490 10669 10666 12457 11214 11666
2/02 10593 10766 10763 12607 11290 11752
================================================================================
(1) Lipper Inc.
(2) Invesco Aim, Barclays Capital
==============================================================================================
[MOUNTAIN CHART]
3/02 10525 10690 10687 12360 11184 11816
4/02 10614 10775 10772 12602 11320 11941
5/02 10680 10835 10832 12678 11384 11988
6/02 10784 10934 10931 12812 11477 12071
7/02 10887 11032 11029 12977 11563 11973
8/02 10979 11118 11115 13133 11626 11868
9/02 11071 11205 11202 13421 11746 11655
10/02 10949 11075 11072 13198 11548 11286
11/02 10979 11098 11095 13143 11567 11549
12/02 11124 11238 11235 13421 11752 11785
1/03 11140 11248 11245 13387 11728 11792
2/03 11248 11349 11346 13574 11856 11854
3/03 11240 11335 11331 13582 11807 11613
4/03 11336 11424 11421 13672 11919 11892
5/03 11537 11620 11616 13992 12178 12336
6/03 11541 11617 11614 13932 12183 12503
7/03 11335 11402 11386 13445 11933 12364
8/03 11419 11480 11477 13545 11983 12408
9/03 11597 11652 11649 13943 12274 12814
10/03 11615 11663 11660 13873 12309 13027
11/03 11687 11728 11725 14018 12438 13192
12/03 11774 11806 11804 14134 12553 13343
1/04 11874 11900 11883 14215 12672 13600
2/04 12042 12062 12045 14429 12834 13768
3/04 12060 12072 12070 14378 12816 13762
4/04 11900 11905 11902 14038 12632 13618
5/04 11919 11902 11900 13987 12594 13558
6/04 11994 11983 11981 14038 12642 13663
7/04 12112 12092 12076 14223 12771 13812
8/04 12272 12245 12229 14508 12961 14015
9/04 12348 12313 12311 14585 13051 14152
10/04 12481 12439 12436 14710 13157 14311
11/04 12500 12450 12447 14589 13167 14476
12/04 12663 12604 12602 14767 13333 14746
1/05 12798 12729 12713 14905 13456 14922
2/05 12845 12769 12752 14855 13489 15019
3/05 12849 12765 12762 14762 13476 15028
4/05 13058 12964 12947 14994 13676 15331
5/05 13210 13106 13104 15100 13821 15511
6/05 13333 13219 13202 15194 13957 15686
7/05 13362 13240 13223 15125 14007 15769
8/05 13526 13395 13392 15278 14140 15870
9/05 13480 13342 13324 15175 13998 15672
10/05 13447 13300 13283 15083 13936 15657
11/05 13549 13377 13376 15155 14009 15770
12/05 13667 13501 13499 15286 14179 16012
1/06 13708 13518 13516 15327 14234 16104
2/06 13826 13641 13625 15430 14390 16317
3/06 13867 13674 13657 15324 14388 16398
4/06 13878 13677 13675 15318 14397 16475
5/06 13967 13754 13738 15386 14492 16627
6/06 13946 13726 13724 15329 14514 16781
7/06 14113 13882 13866 15511 14677 16974
8/06 14312 14069 14053 15741 14875 17182
9/06 14434 14181 14164 15851 15002 17355
10/06 14539 14276 14259 15950 15131 17515
11/06 14694 14418 14401 16083 15280 17673
12/06 14689 14405 14388 16026 15272 17732
1/07 14685 14392 14375 15985 15280 17808
2/07 14857 14552 14551 16196 15429 17988
3/07 14852 14539 14538 16156 15418 18011
4/07 14912 14589 14587 16204 15483 18113
5/07 14891 14559 14556 16132 15439 18115
6/07 14870 14513 14510 16048 15345 18076
7/07 14865 14516 14495 16173 15343 18130
8/07 14415 14067 14047 16103 14913 17648
9/07 14659 14280 14276 16341 15108 17853
==============================================================================================
==============================================================================================
[MOUNTAIN CHART]
10/07 14654 14282 14262 16414 15124 17911
11/07 14533 14138 14135 16519 14956 17675
12/07 14275 13896 13877 16564 14787 17328
1/08 14455 14046 14043 16773 14894 17500
2/08 13672 13294 13273 16005 14041 16761
3/08 14007 13610 13591 16463 14218 16842
4/08 14172 13762 13743 16656 14350 16907
5/08 14321 13899 13879 16756 14461 16977
6/08 14160 13735 13732 16567 14238 16695
7/08 14121 13688 13667 16630 14127 16639
8/08 14255 13792 13789 16825 14274 16876
9/08 13428 13000 12997 16036 13417 16061
10/08 12037 11646 11643 15872 11971 14522
11/08 11890 11495 11493 15923 11649 13826
12/08 10909 10539 10537 16155 10720 12648
1/09 11439 11044 11025 16746 11301 13392
2/09 11650 11240 11238 16834 11515 13671
3/09 11731 11571 11310 16837 11457 13615
==============================================================================================
======================================================================================= AFTER-TAX RETURNS ARE CALCULATED USING
AVERAGE ANNUAL TOTAL RETURNS THE HISTORICAL HIGHEST INDIVIDUAL FEDERAL
As of 3/31/09, including maximum applicable sales charges MARGINAL INCOME TAX RATE. THEY DO NOT
REFLECT THE EFFECT OF STATE AND LOCAL
AFTER TAXES ON TAXES. ACTUAL AFTER-TAX RETURNS DEPEND ON
AFTER TAXES ON DISTRIBUTIONS AND THE INVESTOR'S TAX SITUATION AND MAY
BEFORE TAXES DISTRIBUTIONS SALE OF FUND SHARES DIFFER FROM THOSE SHOWN. AFTER-TAX RETURNS
------------ -------------- ------------------- SHOWN ARE NOT RELEVANT TO INVESTORS WHO
CLASS A SHARES HOLD THEIR SHARES IN TAX-DEFERRED ACCOUNTS
Inception (1/2/98) 1.43% 1.43% 2.09% SUCH AS 401(K)S OR IRAS.
10 Years 0.92 0.91 1.66
5 Years -1.52 -1.52 -0.36 HAD THE FUND NOT WAIVED FEES AND/OR
1 Year -20.20 -20.20 -11.27 REIMBURSED EXPENSES, PERFORMANCE WOULD
CLASS B SHARES HAVE BEEN LOWER.
Inception (1/2/98) 1.31% 1.31% 1.92%
10 Years 0.80 0.79 1.48 (1) Total annual operating expenses less
5 Years -1.60 -1.60 -0.53 any voluntary fee waivers and/or
1 Year -20.79 -20.79 -11.82 expense reimbursements by the
CLASS C SHARES advisor. Voluntary arrangements can
Inception (1/2/98) 1.10% 1.10% 1.71% be discontinued or modified at any
10 Years 0.64 0.64 1.33 time without further notice to
5 Years -1.29 -1.29 -0.27 investors. See current prospectus for
1 Year -17.54 -17.54 -9.71 more information.
CLASS Y SHARES
10 Years 1.43% 1.43% 2.11%
5 Years -0.50 -0.50 0.52
1 Year -16.00 -16.00 -8.42
=======================================================================================
CLASS Y SHARES' INCEPTION DATE IS OCTOBER CLASS C AND CLASS Y SHARES WAS 0.80%,
3,2008; RETURNS SINCE THAT DATE ARE ACTUAL 1.55%, 1.55% AND 0.55%, RESPECTIVELY.(1)
RETURNS. ALL OTHER RETURNS ARE BLENDED THE TOTAL ANNUAL FUND OPERATING EXPENSE
RETURNS OF ACTUAL CLASS Y SHARE RATIO SET FORTH IN THE MOST RECENT FUND
PERFORMANCE AND RESTATED CLASS A SHARE PROSPECTUS AS OF THE DATE OF THIS REPORT
PERFORMANCE (FOR PERIODS PRIOR TO THE FOR CLASS A, CLASS B, CLASS C AND CLASS Y
INCEPTION DATE OF CLASS Y SHARES) AT NET SHARES WAS 0.98%, 1.73 %. 1.73 % AND 0.73
ASSET VALUE. THE RESTATED CLASS A SHARE %, RESPECTIVELY. THE EXPENSE RATIOS
PERFORMANCE REFLECTS THE RULE 12B-1 FEES PRESENTED ABOVE MAY VARY FROM THE EXPENSE
APPLICABLE TO CLASS A SHARES AS WELL AS RATIOS PRESENTED IN OTHER SECTIONS OF THIS
ANY FEE WAIVERS OR EXPENSE REIMBURSEMENTS REPORT THAT ARE BASED ON EXPENSES INCURRED
RECEIVED BY CLASS A SHARES. CLASS A SHARES DURING THE PERIOD COVERED BY THIS REPORT.
INCEPTION DATE IS JANUARY 2,1998.
CLASS A SHARE PERFORMANCE REFLECTS THE
THE PERFORMANCE DATA QUOTED REPRESENT MAXIMUM 4.75% SALES CHARGE, AND CLASS B
PAST PERFORMANCE AND CANNOT GUARANTEE AND CLASS C SHARE PERFORMANCE REFLECTS THE
COMPARABLE FUTURE RESULTS; CURRENT APPLICABLE CONTINGENT DEFERRED SALES
PERFORMANCE MAY BE LOWER OR HIGHER. PLEASE CHARGE (CDSC) FOR THE PERIOD INVOLVED. THE
VISIT INVESCOAIM.COM FOR THE MOST RECENT CDSC ON CLASS B SHARES DECLINES FROM 5%
MONTH-END PERFORMANCE. PERFORMANCE FIGURES BEGINNING AT THE TIME OF PURCHASE TO 0% AT
REFLECT REINVESTED DISTRIBUTIONS, CHANGES THE BEGINNING OF THE SEVENTH YEAR. THE
IN NET ASSET VALUE AND THE EFFECT OF THE CDSC ON CLASS C SHARES IS 1 % FOR THE
MAXIMUM SALES CHARGE UNLESS OTHERWISE FIRST YEAR AFTER PURCHASE. CLASS Y SHARES
STATED. INVESTMENT RETURN AND PRINCIPAL DO NOT HAVE A FRONT-END SALES CHARGE OR A
VALUE WILL FLUCTUATE SO THAT YOU MAY HAVE CDSC; THEREFORE, PERFORMANCE IS AT NET
A GAIN OR LOSS WHEN YOU SELL SHARES. ASSET VALUE.
THE NET ANNUAL FUND OPERATING EXPENSE THE PERFORMANCE OF THE FUND'S SHARE
RATIO SET FORTH IN THE MOST RECENT FUND CLASSES WILL DIFFER PRIMARILY DUE TO
PROSPECTUS AS OF THE DATE OF THIS REPORT DIFFERENT SALES CHARGE STRUCTURES AND
FOR CLASS A, CLASS B, CLASS EXPENSES.
7 AIM HIGH INCOME MUNICIPAL FUND
AIM HIGH INCOME MUNICIPAL FUND'S INVESTMENT OBJECTIVE IS TO A ACHIEVE A HIGH LEVEL OF CURRENT INCOME THAT IS EXEMPT FROM FEDERAL
INCOME TAXES.
o Unless otherwise stated, information presented in this report is as of March 31, 2009, and is based on total net assets.
o Unless otherwise noted, all data provided by Invesco Aim.
ABOUT SHARE CLASSES o The Fund may use enhanced investment o The BARCLAYS CAPITAL HIGH YIELD
techniques such as leveraging and MUNICIPAL BOND INDEX includes bonds
o Effective September 30,2003, only derivatives. The principal risk of that are non-rated or rated Ba1 or
previously established qualified derivatives is that fluctuations in below. They must have an outstanding
plans are eligible to purchase Class their value may not correlate par value of at least $3 million and
B shares of any AIM fund. perfectly with the overall securities be issued as part of a transaction of
market. Leveraging entails risks such at least $20 million. The bonds must
o Class Y shares are available to only as magnifying changes in the value of have a dated-date after December
certain investors. Please see the the portfolio's securities. 31,1990 and must be at least one year
prospectus for more information. Derivatives are subject to from their maturity date.
counterparty risk--the risk that the
PRINCIPAL RISKS OF INVESTING IN THE FUND other party will not complete the o The LIPPER HIGH YIELD MUNICIPAL DEBT
transaction with the Fund. FUNDS INDEX is an equally weighted
o Because many municipal securities are representation of the largest funds
issued to finance similar projects, o There is no guarantee that the in the Lipper High Yield Municipal
especially those relating to investment techniques and risk Debt Funds category. These funds
education, health care, analyses used by the Fund's portfolio invest at least 50% of their assets
transportation and utilities, managers will produce the desired in lower rated municipal debt issues.
conditions in those sectors can results.
affect the overall municipal o The Fund is not managed to track the
securities market and the Fund. o The prices of securities held by the performance of any particular index,
Fund may decline in response to including the indexes defined here,
o Credit risk is the risk of loss on an market risks. and consequently, the performance of
investment due to the deterioration the Fund may deviate significantly
of an issuer's financial health. Such o The value of, payment of interest on, from the performance of the indexes.
a deterioration of financial health repayment of principal for and the
may result in a reduction of the ability of the Fund to sell a o A direct investment cannot be made in
credit rating of the issuer's municipal security may be affected by an index. Unless otherwise indicated,
securities and may lead to the constitutional amendments, index results include reinvested
issuer's inability to honor its legislative enactments, executive dividends, and they do not reflect
contractual obligations, including orders, administrative regulations, sales charges or fund expenses.
making timely payment of interest and voter initiatives and the economics Performance of an index of funds
principal. of the regions in which the issuers reflects fund expenses; performance
in which the Fund invests are of a market index does not.
o The Fund may invest in securities located.
where the issuer has defaulted on the OTHER INFORMATION
payment of interest and/or principal. o Reinvestment risk is the risk that a
Defaulted securities are speculative, bond's cash flows will be reinvested o The returns shown in management's
involve risks that the principal will at an interest rate below that on the discussion of Fund performance are
not be repaid and may be subject to original bond. based on net asset values calculated
restrictions on sale. for shareholder transactions.
o The tax-exempt character of the Generally accepted accounting
o Interest rate risk refers to the risk interest paid on synthetic municipal principles require adjustments to be
that bond prices generally fall as securities is based on the tax-exempt made to the net assets of the Fund at
interest rates rise; conversely, bond income stream from the collateral. period end for financial reporting
prices generally rise as interest The Internal Revenue Service has not purposes, and as such, the net asset
rates fall. ruled on this issue and could deem values for shareholder transactions
income derived from synthetic and the returns based on those net
o The Fund may invest in lower quality municipal securities to be taxable. asset values may differ from the net
debt securities, commonly known as asset values and returns reported in
"junk bonds." Compared to higher ABOUT INDEXES USED IN THIS REPORT the Financial Highlights.
quality debt securities, junk bonds
involve greater risk of default or o The BARCLAYS CAPITAL MUNICIPAL BOND
price changes due to changes in INDEX covers municipal bonds with a
credit quality of the issuer because minimum credit rating of Baa, an out-
they are generally unsecured and may standing par value of at least $5
be subordinated to other creditors' million and issued as a part of a
claims. Credit ratings on junk bonds transaction of at least $50 million.
do not necessarily reflect their The bonds must have been issued after
actual market risk. December 31, 1990, and have a
remaining maturity of at least one
year.
======================================================================================= ==========================================
THIS REPORT MUST BE ACCOMPANIED OR PRECEDED BY A CURRENTLY EFFECTIVE FUND PROSPECTUS, FUND NASDAQ SYMBOLS
WHICH CONTAINS MORE COMPLETE INFORMATION, INCLUDING SALES CHARGES AND EXPENSES. Class A Shares AHMAX
INVESTORS SHOULD READ IT CAREFULLY BEFORE INVESTING. Class B Shares AHMBX
======================================================================================= Class C Shares AHMCX
Class Y Shares AHMYX
NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE ==========================================
8 AIM HIGH INCOME MUNICIPAL FUND
SCHEDULE OF INVESTMENTS
March 31, 2009
<Table>
<Caption>
PRINCIPAL
INTEREST MATURITY AMOUNT
RATE DATE (000) VALUE
- ------------------------------------------------------------------------------------------------------
MUNICIPAL OBLIGATIONS-97.84%
ALASKA-0.53%
Alaska Industrial Development & Export Authority
(Boys & Girls Home);
Series 2007, IDR 5.70% 12/01/17 $ 1,000 $ 784,140
- ------------------------------------------------------------------------------------------------------
Series 2007, IDR 6.00% 12/01/36 3,000 1,776,600
======================================================================================================
2,560,740
======================================================================================================
ARIZONA-3.09%
Centerra Community Facilities District; Series
2005, Unlimited Tax GO 5.50% 07/15/29 376 226,683
- ------------------------------------------------------------------------------------------------------
Pima (County of) Industrial Development
Authority (Acclaim Charter School); Series
2006, Educational Facilities IDR 5.70% 12/01/26 2,200 1,544,642
- ------------------------------------------------------------------------------------------------------
Pima (County of) Industrial Development
Authority (Choice Education & Development
Corp.);
Series 2006, Educational Facilities IDR 6.25% 06/01/26 1,000 739,060
- ------------------------------------------------------------------------------------------------------
Series 2006, Educational Facilities IDR 6.38% 06/01/36 3,000 2,053,770
- ------------------------------------------------------------------------------------------------------
Pima (County of) Industrial Development
Authority (Coral Academy Science);
Series 2008 A, Educational Facilities IDR 7.13% 12/01/28 2,120 1,708,063
- ------------------------------------------------------------------------------------------------------
Series 2008 A, Educational Facilities IDR 7.25% 12/01/38 1,100 855,866
- ------------------------------------------------------------------------------------------------------
Pima (County of) Industrial Development
Authority (Desert Heights Charter School);
Series 2003, Educational Facilities IDR 7.25% 08/01/19 830 756,794
- ------------------------------------------------------------------------------------------------------
Pima (County of) Industrial Development
Authority (Horizon Community Learning
Center); Series 2005, Ref. Educational
Facilities IDR 5.25% 06/01/35 1,500 978,975
- ------------------------------------------------------------------------------------------------------
Pima (County of) Industrial Development
Authority (P.L.C. Charter Schools);
Series 2006, Educational Facilities IDR 6.50% 04/01/26 1,000 777,580
- ------------------------------------------------------------------------------------------------------
Series 2006, Educational Facilities IDR 6.75% 04/01/36 1,000 737,150
- ------------------------------------------------------------------------------------------------------
Pima (County of) Industrial Development
Authority (Paradise Education Center);
Series 2006, Ref. Educational Facilities IDR 5.88% 06/01/22 535 389,801
- ------------------------------------------------------------------------------------------------------
Series 2006, Ref. Educational Facilities IDR 6.00% 06/01/36 830 511,255
- ------------------------------------------------------------------------------------------------------
Pima (County of) Industrial Development
Authority (Valley Academy); Series 2008,
Educational Facilities IDR 6.50% 07/01/38 2,815 2,098,920
- ------------------------------------------------------------------------------------------------------
Pinal (County of) Electric District No. 4;
Series 2008, RB 6.00% 12/01/38 1,650 1,293,963
- ------------------------------------------------------------------------------------------------------
Tucson (City of) Industrial Development
Authority (Arizona AgriBusiness & Equine
Center Inc.); Series 2004 A, Educational
Facilities IDR 6.13% 09/01/34 500 366,575
======================================================================================================
15,039,097
======================================================================================================
CALIFORNIA-2.23%
Abag Finance Authority for Nonprofit Corps.
(Hamlin School); Series 2007, RB 5.00% 08/01/37 3,000 1,912,410
- ------------------------------------------------------------------------------------------------------
California (State of) Educational Facilities
Authority (Fresno Pacific University); Series
2000 A, RB 6.75% 03/01/19 1,000 958,870
- ------------------------------------------------------------------------------------------------------
California (State of) Educational Facilities
Authority (University of Southern
California); Series 2009 A, RB 5.00% 10/01/38 2,000 1,951,780
- ------------------------------------------------------------------------------------------------------
California (State of) Municipal Finance
Authority (American Heritage Education
Foundation); Series 2006 A, Education RB 5.25% 06/01/36 1,150 723,339
- ------------------------------------------------------------------------------------------------------
California (State of) Statewide Communities
Development Authority (Drew School); Series
2007, RB 5.30% 10/01/37 500 285,580
- ------------------------------------------------------------------------------------------------------
California (State of) Statewide Communities
Development Authority (Front Porch
Communities & Services); Series 2007 A, RB(a) 5.13% 04/01/37 2,000 1,256,780
- ------------------------------------------------------------------------------------------------------
California (State of) Statewide Communities
Development Authority (Hospice of Napa
Valley); Series 2004 A, RB 7.00% 01/01/34 900 658,692
- ------------------------------------------------------------------------------------------------------
California (State of) Statewide Communities
Development Authority (Huntington Park
Charter School); Series 2007 A, Educational
Facilities RB 5.25% 07/01/42 1,500 881,745
- ------------------------------------------------------------------------------------------------------
</Table>
See accompanying Notes to Financial Statements which are an integral part of the
financial statements.
9 AIM HIGH INCOME MUNICIPAL FUND
<Table>
<Caption>
PRINCIPAL
INTEREST MATURITY AMOUNT
RATE DATE (000) VALUE
- ------------------------------------------------------------------------------------------------------
CALIFORNIA-(CONTINUED)
California (State of) Statewide Communities
Development Authority (Notre Dame de Namur
University); Series 2003, RB 6.50% 10/01/23 $ 1,000 $ 732,300
- ------------------------------------------------------------------------------------------------------
California (State of); Series 2009, Various
Purpose Unlimited Tax GO 6.00% 04/01/35 1,500 1,501,110
======================================================================================================
10,862,606
======================================================================================================
COLORADO-10.99%
Antelope Heights Metropolitan District; Series
2003, Limited Tax GO(b)(c) 8.00% 12/01/13 500 636,330
- ------------------------------------------------------------------------------------------------------
Arista Metropolitan District; Series 2005,
Limited Tax GO 6.75% 12/01/35 2,000 1,354,380
- ------------------------------------------------------------------------------------------------------
Beacon Point Metropolitan District; Series 2005
A, Limited Tax GO 6.25% 12/01/35 1,500 996,240
- ------------------------------------------------------------------------------------------------------
Bradburn Metropolitan District No. 3; Series
2003, Limited Tax GO 7.50% 12/01/33 500 374,510
- ------------------------------------------------------------------------------------------------------
Bromley Park Metropolitan District No. 2;
Series 2002 B, Limited Tax GO(b)(c) 8.05% 12/01/12 500 625,370
- ------------------------------------------------------------------------------------------------------
Series 2003, Limited Tax GO(b)(c) 8.05% 12/01/12 534 667,895
- ------------------------------------------------------------------------------------------------------
Buckhorn Valley Metropolitan District No. 2;
Series 2003, Limited Tax GO 7.00% 12/01/23 60 49,124
- ------------------------------------------------------------------------------------------------------
Castle Oaks Metropolitan District;
Series 2005, Limited Tax GO 6.00% 12/01/25 1,000 676,380
- ------------------------------------------------------------------------------------------------------
Series 2005, Limited Tax GO 6.13% 12/01/35 1,500 931,215
- ------------------------------------------------------------------------------------------------------
Colorado (State of) Educational & Cultural
Facilities Authority (Banning Lewis Ranch
Academy); Series 2006, Charter School RB(a) 6.13% 12/15/35 3,000 2,024,130
- ------------------------------------------------------------------------------------------------------
Colorado (State of) Educational & Cultural
Facilities Authority (Brighton Charter
School); Series 2006, RB 6.00% 11/01/36 1,695 1,068,681
- ------------------------------------------------------------------------------------------------------
Colorado (State of) Educational & Cultural
Facilities Authority (Carbon Valley Academy);
Series 2006, Charter School RB 5.63% 12/01/36 1,160 723,353
- ------------------------------------------------------------------------------------------------------
Colorado (State of) Educational & Cultural
Facilities Authority (Community Leadership
Academy);
Series 2008, Charter School RB 6.25% 07/01/28 650 477,665
- ------------------------------------------------------------------------------------------------------
Series 2008, Charter School RB 6.50% 07/01/38 1,000 706,770
- ------------------------------------------------------------------------------------------------------
Colorado (State of) Educational & Cultural
Facilities Authority (Denver Academy Inc.);
Series 2003 A, Ref. RB 7.00% 11/01/23 500 459,380
- ------------------------------------------------------------------------------------------------------
Colorado (State of) Educational & Cultural
Facilities Authority (Denver Science &
Technology); Series 2004, RB 5.00% 12/01/13 650 621,413
- ------------------------------------------------------------------------------------------------------
Colorado (State of) Educational & Cultural
Facilities Authority (Excel Academy); Series
2003, Charter School RB(b)(c) 7.30% 12/01/11 535 606,685
- ------------------------------------------------------------------------------------------------------
Colorado (State of) Educational & Cultural
Facilities Authority (Flagstaff Academy);
Series 2008 A, Charter School RB 6.75% 08/01/28 1,215 949,899
- ------------------------------------------------------------------------------------------------------
Series 2008 A, Charter School RB 7.00% 08/01/38 1,500 1,135,005
- ------------------------------------------------------------------------------------------------------
Colorado (State of) Educational & Cultural
Facilities Authority (Knowledge Quest
Academy);
Series 2005, Charter School RB 6.50% 05/01/36 930 662,374
- ------------------------------------------------------------------------------------------------------
Colorado (State of) Educational & Cultural
Facilities Authority (Monument Academy);
Series 2007, Charter School RB 5.88% 10/01/27 2,500 1,785,650
- ------------------------------------------------------------------------------------------------------
Series 2007, Charter School RB 6.00% 10/01/37 1,635 1,087,340
- ------------------------------------------------------------------------------------------------------
Series 2008 A, Charter School RB 7.25% 10/01/39 500 388,165
- ------------------------------------------------------------------------------------------------------
Colorado (State of) Educational & Cultural
Facilities Authority (New Vision Charter
School); Series 2008, RB(a) 6.75% 04/01/40 1,860 1,354,694
- ------------------------------------------------------------------------------------------------------
Colorado (State of) Educational & Cultural
Facilities Authority (North Star); Series
2008 A,
Ref. & Improvement RB(a) 8.25% 11/01/39 3,000 2,639,940
- ------------------------------------------------------------------------------------------------------
Colorado (State of) Educational & Cultural
Facilities Authority (Northeast Academy);
Series 2007, Charter School RB(a) 5.75% 05/15/37 2,580 1,637,010
- ------------------------------------------------------------------------------------------------------
Colorado (State of) Educational & Cultural
Facilities Authority (Peak to Peak Charter
School); Series 2001, RB(b)(c) 7.63% 08/15/11 500 576,510
- ------------------------------------------------------------------------------------------------------
Colorado (State of) Educational & Cultural
Facilities Authority (Platte Academy);
Series 2002 A, Charter School RB(b)(c) 7.25% 03/01/10 500 530,340
- ------------------------------------------------------------------------------------------------------
Series 2002 A, Charter School RB(b)(c) 7.25% 03/01/10 500 523,585
- ------------------------------------------------------------------------------------------------------
Colorado (State of) Educational & Cultural
Facilities Authority (The Classical Academy);
Series 2008 A, Charter School RB 7.40% 12/01/38 2,000 1,969,020
- ------------------------------------------------------------------------------------------------------
</Table>
See accompanying Notes to Financial Statements which are an integral part of the
financial statements.
10 AIM HIGH INCOME MUNICIPAL FUND
<Table>
<Caption>
PRINCIPAL
INTEREST MATURITY AMOUNT
RATE DATE (000) VALUE
- ------------------------------------------------------------------------------------------------------
COLORADO-(CONTINUED)
Colorado (State of) Educational & Cultural
Facilities Authority (Union Colony Charter
School); Series 2007, RB(a) 5.75% 12/01/37 $ 1,650 $ 1,044,516
- ------------------------------------------------------------------------------------------------------
Colorado (State of) Educational & Cultural
Facilities Authority (Vail Christian); Series
2007, Independent School Improvement RB(a) 5.50% 06/01/37 2,000 1,182,060
- ------------------------------------------------------------------------------------------------------
Colorado (State of) Educational & Cultural
Facilities Authority (Windsor Academy);
Series 2007, Charter School RB 5.70% 05/01/37 1,600 1,018,352
- ------------------------------------------------------------------------------------------------------
Colorado (State of) Health Facilities Authority
(Christian Living Communities);
Series 2009 A, RB 8.25% 01/01/24 375 376,193
- ------------------------------------------------------------------------------------------------------
Series 2009 A, RB 9.00% 01/01/34 750 750,315
- ------------------------------------------------------------------------------------------------------
Colorado Springs (City of) (University Village
Colorado); Series 2008 A, Tax Increment
Allocation RB 7.00% 12/01/29 3,000 2,279,070
- ------------------------------------------------------------------------------------------------------
Confluence Metropolitan District;
Series 2007, Tax Supported RB 5.25% 12/01/17 790 644,134
- ------------------------------------------------------------------------------------------------------
Series 2007, Tax Supported RB 5.45% 12/01/34 1,465 914,702
- ------------------------------------------------------------------------------------------------------
Conservatory Metropolitan District (Arapahoe
County); Series 2005, Limited Tax GO(b)(c) 6.75% 12/01/13 810 998,706
- ------------------------------------------------------------------------------------------------------
Copperleaf Metropolitan District No. 2;
Series 2006, Limited Tax GO 5.85% 12/01/26 1,000 613,780
- ------------------------------------------------------------------------------------------------------
Series 2006, Limited Tax GO 5.95% 12/01/36 1,750 958,527
- ------------------------------------------------------------------------------------------------------
Country Club Village Metropolitan District;
Series 2006, Limited Tax GO 6.00% 12/01/34 600 367,536
- ------------------------------------------------------------------------------------------------------
Grandby Ranch Metropolitan District; Series
2006, Limited Tax GO 6.75% 12/01/36 3,000 1,931,190
- ------------------------------------------------------------------------------------------------------
Huntington Trails Metropolitan District; Series
2006, Limited Tax GO 6.25% 12/01/36 1,000 600,050
- ------------------------------------------------------------------------------------------------------
Jordan Crossing Metropolitan District; Series
2006, Limited Tax GO 5.75% 12/01/36 1,415 787,278
- ------------------------------------------------------------------------------------------------------
Liberty Ranch Metropolitan District; Series
2006, Limited Tax GO 6.25% 12/01/36 1,645 987,082
- ------------------------------------------------------------------------------------------------------
Madre Metropolitan District No. 2; Series 2007
A, Limited Tax GO 5.50% 12/01/36 500 240,445
- ------------------------------------------------------------------------------------------------------
Montrose (County of) (Homestead at Montrose
Inc.);
Series 2003 A, Health Care Facilities RB 5.75% 02/01/15 250 211,430
- ------------------------------------------------------------------------------------------------------
Series 2003 A, Health Care Facilities RB 6.75% 02/01/22 300 232,746
- ------------------------------------------------------------------------------------------------------
Series 2003 A, Health Care Facilities RB 7.00% 02/01/25 800 612,856
- ------------------------------------------------------------------------------------------------------
Murphy Creek Metropolitan District No. 3; Series
2006, Ref. & Improvement Limited Tax GO 6.13% 12/01/35 2,000 1,241,620
- ------------------------------------------------------------------------------------------------------
Northwest Metropolitan District No. 3;
Series 2005, Limited Tax GO 6.13% 12/01/25 1,000 569,410
- ------------------------------------------------------------------------------------------------------
Series 2005, Limited Tax GO 6.25% 12/01/35 1,000 518,420
- ------------------------------------------------------------------------------------------------------
Piney Creek Metropolitan District; Series 2005,
Limited Tax GO 5.50% 12/01/35 1,200 687,552
- ------------------------------------------------------------------------------------------------------
Reata South Metropolitan District; Series 2007
A, Limited Tax GO 7.25% 06/01/37 1,000 719,450
- ------------------------------------------------------------------------------------------------------
Riverdale Peaks II Metropolitan District; Series
2005, Limited Tax GO 6.50% 12/01/35 1,000 596,330
- ------------------------------------------------------------------------------------------------------
Silver Peaks Metropolitan District No. 2; Series
2006, Limited Tax GO 5.75% 12/01/36 1,000 584,080
- ------------------------------------------------------------------------------------------------------
Southlands Metropolitan District No. 1; Series
2004, Unlimited Tax GO(b)(c) 7.13% 12/01/14 500 627,650
- ------------------------------------------------------------------------------------------------------
Table Rock Metropolitan District; Series 2003,
Limited Tax GO(b)(c) 7.00% 12/01/13 700 857,696
- ------------------------------------------------------------------------------------------------------
University of Northern Colorado (Auxiliary
Facilities System); Series 2001, Ref. &
Improvement RB
(INS-Ambac Assurance Corp.)(d) 5.00% 06/01/23 1,000 1,008,080
- ------------------------------------------------------------------------------------------------------
Valagua Metropolitan District; Series 2008,
Limited Tax GO 7.75% 12/01/37 1,000 764,300
- ------------------------------------------------------------------------------------------------------
Wyndham Hill Metropolitan District No. 2;
Series 2005, Limited Tax GO 6.25% 12/01/25 85 59,195
- ------------------------------------------------------------------------------------------------------
Series 2005, Limited Tax GO 6.38% 12/01/35 500 321,680
======================================================================================================
53,545,484
======================================================================================================
DELAWARE-0.56%
New Castle (County of) (Newark Charter School
Inc.); Series 2006, RB 5.00% 09/01/30 1,610 1,059,638
- ------------------------------------------------------------------------------------------------------
</Table>
See accompanying Notes to Financial Statements which are an integral part of the
financial statements.
11 AIM HIGH INCOME MUNICIPAL FUND
<Table>
<Caption>
PRINCIPAL
INTEREST MATURITY AMOUNT
RATE DATE (000) VALUE
- ------------------------------------------------------------------------------------------------------
DELAWARE-(CONTINUED)
Sussex (County of) (Cadbury at Lewes);
Series 2006 A, First Mortgage RB 5.45% 01/01/16 $ 865 $ 730,112
- ------------------------------------------------------------------------------------------------------
Series 2006 A, First Mortgage RB 5.90% 01/01/26 750 538,732
- ------------------------------------------------------------------------------------------------------
Series 2006 A, First Mortgage RB 6.00% 01/01/35 600 383,352
======================================================================================================
2,711,834
======================================================================================================
DISTRICT OF COLUMBIA-0.53%
District of Columbia; Series 1998, RB
(INS-Financial Security Assurance Inc.)(d) 5.00% 08/15/38 3,000 2,574,450
======================================================================================================
FLORIDA-5.07%
Alachua (County of) (North Florida Retirement
Village, Inc.); Series 2007, IDR 5.88% 11/15/36 3,000 1,986,600
- ------------------------------------------------------------------------------------------------------
Concorde Estates Community Development District;
Series 2004 B, Capital Improvement Special
Assessment RB 5.00% 05/01/11 300 159,543
- ------------------------------------------------------------------------------------------------------
Cory Lakes Community Development District;
Series 2001 A, Special Assessment RB 8.38% 05/01/17 335 336,223
- ------------------------------------------------------------------------------------------------------
Series 2001 B, Special Assessment RB 8.38% 05/01/17 185 185,675
- ------------------------------------------------------------------------------------------------------
Cypress Lakes Community Development District;
Series 2004 A, Special Assessment RB 6.00% 05/01/34 525 409,820
- ------------------------------------------------------------------------------------------------------
East Homestead Community Development District;
Series 2005, Special Assessment RB 5.45% 05/01/36 675 407,666
- ------------------------------------------------------------------------------------------------------
Florida (State of) Development Finance Corp.
(Palm Bay Academy Inc.);
Series 2006 A, RB 6.00% 05/15/36 2,130 1,352,358
- ------------------------------------------------------------------------------------------------------
Series 2007 A, RB 6.13% 05/15/37 1,855 1,194,731
- ------------------------------------------------------------------------------------------------------
Florida (State of) Development Finance Corp.
(Sculptor Charter School); Series 2008 A, RB 7.25% 10/01/38 2,710 2,238,894
- ------------------------------------------------------------------------------------------------------
Gramercy Farms Community Development District;
Series 2007 B, Special Assessment RB 5.10% 05/01/14 1,000 481,760
- ------------------------------------------------------------------------------------------------------
Lakeland (City of) (Carpenters Acc Inv);
Series 2008, Ref. Retirement Community First
Mortgage RB(a) 6.25% 01/01/28 500 372,495
- ------------------------------------------------------------------------------------------------------
Series 2008, Ref. Retirement Community First
Mortgage RB(a) 6.38% 01/01/43 1,500 1,049,910
- ------------------------------------------------------------------------------------------------------
Lee (County of) Industrial Development Authority
(Cypress Cove at Health Park); Series 2002 A,
Health Care Facilities IDR 6.75% 10/01/32 1,250 863,512
- ------------------------------------------------------------------------------------------------------
Miami Beach (City of) Health Facilities
Authority (Mount Sinai Medical Center);
Series 2001 A, Hospital RB 6.70% 11/15/19 1,000 773,550
- ------------------------------------------------------------------------------------------------------
Series 2004, Ref. Hospital RB(a) 6.75% 11/15/29 500 323,805
- ------------------------------------------------------------------------------------------------------
Midtown Miami Community Development District;
Series 2004 A, Special Assessment RB 6.00% 05/01/24 945 670,525
- ------------------------------------------------------------------------------------------------------
Series 2004 A, Special Assessment RB 6.25% 05/01/37 1,000 635,390
- ------------------------------------------------------------------------------------------------------
Mount Dora (City of) Health Facilities Authority
(Waterman Village); Series 2004 A, Ref. RB 5.75% 08/15/18 750 631,778
- ------------------------------------------------------------------------------------------------------
Orange (County of) Health Facilities Authority
(Orlando Lutheran Towers, Inc.);
Series 2005, Ref. Health Care Facilities RB 5.38% 07/01/20 1,100 810,997
- ------------------------------------------------------------------------------------------------------
Series 2005, Ref. Health Care Facilities RB 5.70% 07/01/26 1,000 667,630
- ------------------------------------------------------------------------------------------------------
Series 2007, First Mortgage RB 5.50% 07/01/32 1,000 607,580
- ------------------------------------------------------------------------------------------------------
Series 2007, First Mortgage RB 5.50% 07/01/38 1,000 577,830
- ------------------------------------------------------------------------------------------------------
Orlando (City of) Urban Community Development
District; Series 2004, Capital Improvement
Special Assessment RB 6.25% 05/01/34 1,000 671,530
- ------------------------------------------------------------------------------------------------------
Poinciana Community Development District; Series
2000 A, Special Assessment RB 7.13% 05/01/31 600 522,858
- ------------------------------------------------------------------------------------------------------
Port St. Lucie (City of) Southwest Annexation
District No. 1; Series 2007 B, Special
Assessment RB
(INS-National Public Finance Guarantee
Corporation.)(d) 5.00% 07/01/40 2,000 1,719,340
- ------------------------------------------------------------------------------------------------------
Reunion East Community Development District;
Series 2002 A, Special Assessment RB 7.38% 05/01/33 1,000 639,050
- ------------------------------------------------------------------------------------------------------
Sarasota (County of) Health Facilities Authority
(Village on the Isle);
Series 2007, Ref. Retirement Facilities RB 5.00% 01/01/17 1,500 1,244,730
- ------------------------------------------------------------------------------------------------------
Series 2007, Ref. Retirement Facilities RB 5.50% 01/01/27 1,500 1,021,185
- ------------------------------------------------------------------------------------------------------
Series 2007, Ref. Retirement Facilities RB 5.50% 01/01/32 1,500 943,185
- ------------------------------------------------------------------------------------------------------
</Table>
See accompanying Notes to Financial Statements which are an integral part of the
financial statements.
12 AIM HIGH INCOME MUNICIPAL FUND
<Table>
<Caption>
PRINCIPAL
INTEREST MATURITY AMOUNT
RATE DATE (000) VALUE
- ------------------------------------------------------------------------------------------------------
FLORIDA-(CONTINUED)
St. Johns (County of) Industrial Development
Authority (Glenmoor);
Series 2006 A, Health Care IDR 5.25% 01/01/26 $ 1,000 $ 643,050
- ------------------------------------------------------------------------------------------------------
Series 2006 A, Health Care IDR 5.38% 01/01/40 1,000 558,450
======================================================================================================
24,701,650
======================================================================================================
GEORGIA-1.54%
Atlanta (City of) (Atlantic Station);
Series 2001, Tax Allocation RB(b)(c) 7.75% 12/01/11 550 615,384
- ------------------------------------------------------------------------------------------------------
Series 2001, Tax Allocation RB(b)(c) 7.90% 12/01/11 750 890,437
- ------------------------------------------------------------------------------------------------------
Atlanta (City of) (Eastside);
Series 2005 B, Tax Allocation RB 5.40% 01/01/20 1,000 806,950
- ------------------------------------------------------------------------------------------------------
Series 2005 B, Tax Allocation RB 5.60% 01/01/30 2,000 1,353,900
- ------------------------------------------------------------------------------------------------------
Atlanta (City of) (Princeton Lakes); Series
2006, Tax Allocation RB(a) 5.50% 01/01/31 630 416,002
- ------------------------------------------------------------------------------------------------------
Fulton (County of) (Canterbury Court);
Series 2004 A, Residential Care Facilities RB 6.13% 02/15/26 500 362,545
- ------------------------------------------------------------------------------------------------------
Series 2004 A, Residential Care Facilities RB 6.13% 02/15/34 200 131,062
- ------------------------------------------------------------------------------------------------------
Rockdale (County of) Development Authority (Visy
Paper); Series 2007 A, RB(e) 6.13% 01/01/34 4,500 2,937,330
======================================================================================================
7,513,610
======================================================================================================
IDAHO-0.96%
Idaho (State of) Housing & Finance Association
(Liberty Charter School); Series 2008 A,
Nonprofit Facilities RB 6.00% 06/01/38 750 538,972
- ------------------------------------------------------------------------------------------------------
Idaho (State of) Housing & Finance Association
(North Star Charter School);
Series 2009 A, Nonprofit Facilities RB 9.25% 07/01/29 1,000 998,830
- ------------------------------------------------------------------------------------------------------
Series 2009 A, Nonprofit Facilities RB 9.50% 07/01/39 2,005 2,002,474
- ------------------------------------------------------------------------------------------------------
Idaho (State of) Housing & Finance Association;
Series 2008 A, Nonprofit Facilities RB 6.13% 07/01/38 1,580 1,129,416
======================================================================================================
4,669,692
======================================================================================================
ILLINOIS-9.22%
Belleville (City of) (Frank Scott Parkway
Redevelopment); Series 2007 A, Ref. Tax
Increment Allocation RB 5.70% 05/01/36 1,000 644,790
- ------------------------------------------------------------------------------------------------------
Chicago (City of) (Chatham Ridge Redevelopment);
Series 2002, Tax Increment Allocation RB 5.95% 12/15/12 275 269,220
- ------------------------------------------------------------------------------------------------------
Series 2002, Tax Increment Allocation RB 6.05% 12/15/13 475 459,339
- ------------------------------------------------------------------------------------------------------
Chicago (City of) (Lake Shore East);
Series 2003, Special Assessment RB 6.63% 12/01/22 500 385,000
- ------------------------------------------------------------------------------------------------------
Series 2003, Special Assessment RB 6.75% 12/01/32 500 337,655
- ------------------------------------------------------------------------------------------------------
Du Page (County of) Special Service Area No. 31
(Monarch Landing);
Series 2006, Special Tax RB 5.40% 03/01/16 245 206,493
- ------------------------------------------------------------------------------------------------------
Series 2006, Special Tax RB 5.63% 03/01/36 1,250 707,487
- ------------------------------------------------------------------------------------------------------
Hillside (City of) (Mannheim Redevelopment);
Series 2008, Sr. Lien Tax Increment
Allocation RB 6.55% 01/01/20 1,000 778,680
- ------------------------------------------------------------------------------------------------------
Series 2008, Sr. Lien Tax Increment
Allocation RB 7.00% 01/01/28 5,000 3,594,200
- ------------------------------------------------------------------------------------------------------
Illinois (State of) Finance Authority (Beacon
Hill);
Series 2005 A, Ref. RB 5.15% 02/15/13 655 606,556
- ------------------------------------------------------------------------------------------------------
Series 2005 A, Ref. RB 5.25% 02/15/14 300 273,642
- ------------------------------------------------------------------------------------------------------
Series 2005 A, Ref. RB 5.35% 02/15/15 225 199,769
- ------------------------------------------------------------------------------------------------------
Illinois (State of) Finance Authority (Clare
Oaks);
Series 2006 A, RB 6.00% 11/15/27 1,000 688,650
- ------------------------------------------------------------------------------------------------------
Series 2006 A, RB 6.00% 11/15/39 3,500 2,069,865
- ------------------------------------------------------------------------------------------------------
</Table>
See accompanying Notes to Financial Statements which are an integral part of the
financial statements.
13 AIM HIGH INCOME MUNICIPAL FUND
<Table>
<Caption>
PRINCIPAL
INTEREST MATURITY AMOUNT
RATE DATE (000) VALUE
- ------------------------------------------------------------------------------------------------------
ILLINOIS-(CONTINUED)
Illinois (State of) Finance Authority (Fairview
Obligation Group);
Series 2008 A, Ref. RB 6.13% 08/15/28 $ 1,000 $ 695,080
- ------------------------------------------------------------------------------------------------------
Series 2008 A, Ref. RB 6.25% 08/15/35 1,000 656,390
- ------------------------------------------------------------------------------------------------------
Series 2008 A, Ref. RB 6.25% 08/15/40 1,000 646,650
- ------------------------------------------------------------------------------------------------------
Illinois (State of) Finance Authority (Luther
Oaks);
Series 2006 A, RB 6.00% 08/15/26 850 592,289
- ------------------------------------------------------------------------------------------------------
Series 2006 A, RB 5.70% 08/15/28 500 326,885
- ------------------------------------------------------------------------------------------------------
Series 2006 A, RB 6.00% 08/15/39 1,460 909,171
- ------------------------------------------------------------------------------------------------------
Illinois (State of) Finance Authority (Monarch
Landing Inc. Facility); Series 2007 A, RB 7.00% 12/01/27 2,000 1,270,680
- ------------------------------------------------------------------------------------------------------
Illinois (State of) Finance Authority (Rush
University Medical Center Obligation Group);
Series 2009 A, RB 7.25% 11/01/30 1,865 1,913,527
- ------------------------------------------------------------------------------------------------------
Series 2009 A, RB 7.25% 11/01/38 2,000 2,025,980
- ------------------------------------------------------------------------------------------------------
Illinois (State of) Finance Authority
(Sedgebrook, Inc. Facilities);
Series 2007 A, RB 5.63% 11/15/17 1,345 1,030,257
- ------------------------------------------------------------------------------------------------------
Series 2007 A, RB 6.00% 11/15/27 2,000 1,180,180
- ------------------------------------------------------------------------------------------------------
Series 2007 A, RB 6.00% 11/15/37 4,000 2,106,200
- ------------------------------------------------------------------------------------------------------
Illinois (State of) Finance Authority (Smith
Village);
Series 2005 A, RB 5.70% 11/15/20 500 378,505
- ------------------------------------------------------------------------------------------------------
Series 2005 A, RB 6.13% 11/15/25 1,000 721,540
- ------------------------------------------------------------------------------------------------------
Series 2005 A, RB 6.25% 11/15/35 3,000 1,967,130
- ------------------------------------------------------------------------------------------------------
Illinois (State of) Finance Authority (The
Landing at Plymouth Place); Series 2005 A, RB 6.00% 05/15/37 3,200 2,010,976
- ------------------------------------------------------------------------------------------------------
Illinois (State of) Finance Authority (Three
Crowns Park Plaza);
Series 2006 A, RB 5.88% 02/15/26 1,000 713,830
- ------------------------------------------------------------------------------------------------------
Series 2006 A, RB 5.88% 02/15/38 1,500 923,640
- ------------------------------------------------------------------------------------------------------
Illinois (State of) Health Facilities Authority
(Bethesda Home & Retirement Center); Series
1999 A, RB 6.25% 09/01/14 500 472,235
- ------------------------------------------------------------------------------------------------------
Illinois (State of) Health Facilities Authority
(Lutheran Senior Ministries Obligation);
Series 2001 A, RB(b)(c) 7.38% 08/15/11 1,000 1,136,820
- ------------------------------------------------------------------------------------------------------
Illinois (State of) Health Facilities Authority
(Villa St. Benedict); Series 2003 A-1, RB 6.90% 11/15/33 2,000 886,400
- ------------------------------------------------------------------------------------------------------
Illinois (State of) Health Facilities Authority;
Series 2003 A, RB 7.00% 11/15/32 800 589,160
- ------------------------------------------------------------------------------------------------------
Lincolnshire (Village of) Special Service Area
No. 1 (Sedgebrook);
Series 2004, Special Tax RB 5.00% 03/01/11 235 221,793
- ------------------------------------------------------------------------------------------------------
Series 2004, Special Tax RB 6.25% 03/01/34 750 470,723
- ------------------------------------------------------------------------------------------------------
Lombard (City of) Public Facilities Corp.
(Lombard Conference Center & Hotel);
Series 2005 A-1, First Tier RB 6.38% 01/01/15 750 635,002
- ------------------------------------------------------------------------------------------------------
Series 2005 A-1, First Tier RB 7.13% 01/01/36 2,500 1,660,025
- ------------------------------------------------------------------------------------------------------
Malta (Village of) (Prairie Springs); Series
2006, Tax Increment Allocation RB(a) 5.75% 12/30/25 2,000 1,158,680
- ------------------------------------------------------------------------------------------------------
Southwestern Illinois Development Authority
(City of Collinsville Limited Incremental
Sales Tax); Series 2007, RB 5.35% 03/01/31 1,000 657,760
- ------------------------------------------------------------------------------------------------------
Southwestern Illinois Development Authority
(Eden Retirement Center Inc.);
Series 2006, Senior Care Facilities RB 5.50% 12/01/26 800 534,752
- ------------------------------------------------------------------------------------------------------
Series 2006, Senior Care Facilities RB 5.85% 12/01/36 3,000 1,859,790
- ------------------------------------------------------------------------------------------------------
St. Charles (City of) (Zylstra);
Series 2008, Sr. Lien Limited Incremental
Sales Tax RB 6.95% 01/01/21 2,000 1,692,400
- ------------------------------------------------------------------------------------------------------
Series 2008, Sr. Lien Limited Incremental
Sales Tax RB 6.95% 01/01/25 2,000 1,616,940
======================================================================================================
44,882,736
======================================================================================================
</Table>
See accompanying Notes to Financial Statements which are an integral part of the
financial statements.
14 AIM HIGH INCOME MUNICIPAL FUND
<Table>
<Caption>
PRINCIPAL
INTEREST MATURITY AMOUNT
RATE DATE (000) VALUE
- ------------------------------------------------------------------------------------------------------
INDIANA-0.83%
Indiana (State of) Health & Educational
Facilities Financing Authority (Community
Foundation Northwest Indiana);
Series 2007, Hospital RB 5.50% 03/01/27 $ 3,000 $ 2,428,920
- ------------------------------------------------------------------------------------------------------
Series 2007, Hospital RB 5.50% 03/01/37 1,000 749,800
- ------------------------------------------------------------------------------------------------------
Petersburg (City of) (Indianapolis Power & Light
Co.); Series 1991, Ref. PCR 5.75% 08/01/21 1,000 867,220
======================================================================================================
4,045,940
======================================================================================================
IOWA-2.17%
Des Moines (City of) (Luther Park Apartments
Inc.); Series 2004, Senior Housing RB 6.00% 12/01/23 500 366,560
- ------------------------------------------------------------------------------------------------------
Iowa (State of) Finance Authority (Bethany Life
Communities);
Series 2006 A, Ref. Senior Housing RB 5.45% 11/01/26 345 223,384
- ------------------------------------------------------------------------------------------------------
Series 2006 A, Ref. Senior Housing RB 5.55% 11/01/41 795 448,253
- ------------------------------------------------------------------------------------------------------
Iowa (State of) Finance Authority (Boys & Girls
Home); Series 2007, Community Provider RB 5.80% 12/01/22 1,000 727,540
- ------------------------------------------------------------------------------------------------------
Iowa (State of) Finance Authority (Friendship
Haven); Series 2004 A, Retirement Community
RB 6.13% 11/15/32 500 328,890
- ------------------------------------------------------------------------------------------------------
Iowa (State of) Finance Authority (Wedum Walnut
Ridge LLC);
Series 2007 A, Senior Housing RB 5.50% 12/01/32 2,000 1,112,860
- ------------------------------------------------------------------------------------------------------
Series 2007 A, Senior Housing RB 5.63% 12/01/45 3,000 1,603,890
- ------------------------------------------------------------------------------------------------------
Marion (City of) (Village Place at Marion);
Series 2005 A, MFH RB 5.65% 09/01/25 155 110,839
- ------------------------------------------------------------------------------------------------------
Series 2005 A, MFH RB 6.00% 09/01/35 400 265,424
- ------------------------------------------------------------------------------------------------------
Polk (County of) (Luther Park Health Center
Inc.);
Series 2004, Health Care Facilities RB 6.00% 10/01/24 290 211,773
- ------------------------------------------------------------------------------------------------------
Series 2004, Health Care Facilities RB 6.15% 10/01/36 600 387,456
- ------------------------------------------------------------------------------------------------------
Scott (County of) (Ridgecrest Village);
Series 2000 A, RB(b)(c) 7.25% 11/15/10 750 830,797
- ------------------------------------------------------------------------------------------------------
Series 2004, Ref. RB 4.75% 11/15/12 750 692,820
- ------------------------------------------------------------------------------------------------------
Series 2004, Ref. RB 5.63% 11/15/18 2,000 1,575,800
- ------------------------------------------------------------------------------------------------------
Series 2006, Ref. RB 5.25% 11/15/21 1,000 711,520
- ------------------------------------------------------------------------------------------------------
Washington (City of) (United Presbyterian Home);
Series 2006 A, Ref. Senior Housing RB 5.60% 12/01/36 1,615 963,186
======================================================================================================
10,560,992
======================================================================================================
KANSAS-2.01%
Hutchinson (City of) (Wesley Towers, Inc.);
Series 1999 A, Ref. & Improvement Health Care
Facilities RB 6.25% 11/15/19 750 644,895
- ------------------------------------------------------------------------------------------------------
Labette (County of);
Series 2007 A, Ref. & Improvement Hospital RB 5.75% 09/01/29 750 692,827
- ------------------------------------------------------------------------------------------------------
Series 2007 A, Ref. & Improvement Hospital RB 5.75% 09/01/37 600 519,492
- ------------------------------------------------------------------------------------------------------
Olathe (City of) (Aberdeen Village, Inc); Series
2005 A, Ref. Senior Living Facilities RB 5.60% 05/15/28 1,500 932,250
- ------------------------------------------------------------------------------------------------------
Olathe (City of) (Catholic Care Campus Inc.);
Series 2006 A, Senior Living Facilities RB 6.00% 11/15/26 1,000 730,560
- ------------------------------------------------------------------------------------------------------
Series 2006 A, Senior Living Facilities RB 6.00% 11/15/38 2,000 1,301,140
- ------------------------------------------------------------------------------------------------------
Olathe (City of) (West Village Center);
Series 2007, Special Obligation Tax Increment
Allocation RB 5.30% 09/01/17 500 421,540
- ------------------------------------------------------------------------------------------------------
Series 2007, Special Obligation Tax Increment
Allocation RB 5.45% 09/01/22 1,160 869,675
- ------------------------------------------------------------------------------------------------------
Series 2007, Special Obligation Tax Increment
Allocation RB 5.50% 09/01/26 1,000 693,280
- ------------------------------------------------------------------------------------------------------
Overland Park Transportation Development
District (Grass Creek); Series 2006, Special
Assessment RB 5.13% 09/01/28 1,565 1,016,139
- ------------------------------------------------------------------------------------------------------
Roeland Park (City of) (Roeland Park
Redevelopment, LLC); Series 2005, Special
Obligation Tax Increment Allocation RB 5.75% 08/01/24 920 545,137
- ------------------------------------------------------------------------------------------------------
</Table>
See accompanying Notes to Financial Statements which are an integral part of the
financial statements.
15 AIM HIGH INCOME MUNICIPAL FUND
<Table>
<Caption>
PRINCIPAL
INTEREST MATURITY AMOUNT
RATE DATE (000) VALUE
- ------------------------------------------------------------------------------------------------------
KANSAS-(CONTINUED)
Roeland Park (City of) Transportation
Development District (TDD #1);
Series 2005, Sales Tax RB 5.75% 12/01/25 $ 445 $ 258,136
- ------------------------------------------------------------------------------------------------------
Series 2006 A, Sales Tax RB 5.88% 12/01/09 10 9,960
- ------------------------------------------------------------------------------------------------------
Series 2006 A, Sales Tax RB 5.88% 12/01/25 985 580,451
- ------------------------------------------------------------------------------------------------------
Roeland Park (City of) Transportation
Development District (TDD #2); Series 2006 B,
Sales Tax RB 5.88% 12/01/25 1,000 589,290
======================================================================================================
9,804,772
======================================================================================================
KENTUCKY-0.51%
Louisville & Jefferson (Counties of)
Metropolitan Government (Jewish Hospital &
St. Mary's Healthcare); Series 2008, RB 6.13% 02/01/37 2,500 2,473,475
======================================================================================================
LOUISIANA-0.20%
Louisiana (State of) Local Government
Environmental Facilities & Community
Development Authority (Westlake Chemical
Corp.); Series 2007, RB 6.75% 11/01/32 1,500 975,090
======================================================================================================
MAINE-0.10%
Maine (State of) Turnpike Authority; Series
2003, RB (INS-Ambac Assurance Corp.)(d) 5.00% 07/01/33 500 489,640
======================================================================================================
MARYLAND-1.40%
Annapolis (City of) (Park Place); Series 2005 A,
Special Obligation RB 5.35% 07/01/34 2,000 1,174,440
- ------------------------------------------------------------------------------------------------------
Anne Arundel (County of) (Parole Town Center);
Series 2002, Tax Increment Allocation
Financing RB 5.00% 07/01/12 200 195,276
- ------------------------------------------------------------------------------------------------------
Baltimore (City of) (Strathdale Manor); Series
2003, Special Obligation RB 7.00% 07/01/33 968 722,264
- ------------------------------------------------------------------------------------------------------
Howard (County of); Series 2000 A, Retirement
Community RB(b)(c) 7.88% 05/15/10 780 866,767
- ------------------------------------------------------------------------------------------------------
Maryland (State of) Health & Higher Educational
Facilities Authority (Washington County
Hospital);
Series 2008, RB 5.75% 01/01/38 500 388,210
- ------------------------------------------------------------------------------------------------------
Series 2008, RB 6.00% 01/01/43 2,750 2,179,072
- ------------------------------------------------------------------------------------------------------
Maryland (State of) Industrial Development
Finance Authority (Our Lady of Good Counsel
High School Facilities); Series 2005 A,
Economic Development IDR 6.00% 05/01/35 2,000 1,315,480
======================================================================================================
6,841,509
======================================================================================================
MASSACHUSETTS-0.96%
Massachusetts (State of) Development Finance
Agency (Briarwood); Series 2001 B, RB(b)(c) 7.50% 12/01/10 500 556,100
- ------------------------------------------------------------------------------------------------------
Massachusetts (State of) Development Finance
Agency (Linden Ponds Inc.); Series 2007 A,
Facilities RB 5.00% 11/15/14 1,000 908,920
- ------------------------------------------------------------------------------------------------------
Massachusetts (State of) Development Finance
Agency (New England Conservatory of Music);
Series 2008, RB 5.25% 07/01/38 2,500 1,871,950
- ------------------------------------------------------------------------------------------------------
Massachusetts (State of) Development Finance
Agency (Reeds Landing-Accredited Investors);
Series 2006, Ref. First Mortgage RB 5.75% 10/01/31 1,815 944,526
- ------------------------------------------------------------------------------------------------------
Massachusetts (State of) Health & Educational
Facilities Authority (Christopher House,
Inc.); Series 1999 A, Ref. RB 6.88% 01/01/29 500 392,110
======================================================================================================
4,673,606
======================================================================================================
MICHIGAN-1.59%
Advanced Technology Academy; Series 2008, Public
School Academy RB 6.00% 11/01/37 1,000 695,780
- ------------------------------------------------------------------------------------------------------
Chandler Park Academy; Series 2005, Public
School Academy RB 5.13% 11/01/30 1,050 702,187
- ------------------------------------------------------------------------------------------------------
Detroit (City of) Community High School;
Series 2005, Public School Academy RB 5.65% 11/01/25 1,485 995,098
- ------------------------------------------------------------------------------------------------------
Series 2005, Public School Academy RB 5.75% 11/01/30 1,000 625,710
- ------------------------------------------------------------------------------------------------------
Gaylord (City of) Hospital Finance Authority
(Otsego Memorial Hospital Association);
Series 2004, Ref. Limited Obligation RB 6.50% 01/01/31 700 510,930
- ------------------------------------------------------------------------------------------------------
Gogebic (County of) Hospital Finance Authority
(Grand View Health System, Inc.); Series
1999, Ref. RB 5.88% 10/01/16 920 793,012
- ------------------------------------------------------------------------------------------------------
Mecosta (County of) General Hospital; Series
1999, Ref. RB 6.00% 05/15/18 500 418,485
- ------------------------------------------------------------------------------------------------------
</Table>
See accompanying Notes to Financial Statements which are an integral part of the
financial statements.
16 AIM HIGH INCOME MUNICIPAL FUND
<Table>
<Caption>
PRINCIPAL
INTEREST MATURITY AMOUNT
RATE DATE (000) VALUE
- ------------------------------------------------------------------------------------------------------
MICHIGAN-(CONTINUED)
Michigan (State of) Hospital Finance Authority
(Presbyterian Village);
Series 2005, Ref. RB 4.88% 11/15/16 $ 685 $ 562,125
- ------------------------------------------------------------------------------------------------------
Series 2005, Ref. RB 5.25% 11/15/25 450 293,189
- ------------------------------------------------------------------------------------------------------
Series 2005, Ref. RB 5.50% 11/15/35 750 439,995
- ------------------------------------------------------------------------------------------------------
Michigan (State of) Municipal Bond Authority
(YMCA Service Learning Academy);
Series 2001, Public School Academy Facilities
Program RB 7.63% 10/01/21 700 621,558
- ------------------------------------------------------------------------------------------------------
Series 2001, Public School Academy Facilities
Program RB 7.75% 10/01/31 500 407,560
- ------------------------------------------------------------------------------------------------------
Michigan (State of) Strategic Fund (Detroit
Edison Pollution Control); Series 2001 C,
Ref. Limited Obligation PCR 5.45% 09/01/29 725 680,971
======================================================================================================
7,746,600
======================================================================================================
MINNESOTA-9.55%
Apple Valley (City of) Economic Development
Authority (Evercare Senior Living LLC);
Series 2005 A, Health Care RB 6.13% 06/01/35 2,240 1,540,157
- ------------------------------------------------------------------------------------------------------
Baytown (Town of) (St. Croix Preparatory
Academy);
Series 2008 A, Lease RB 6.75% 08/01/28 1,000 800,800
- ------------------------------------------------------------------------------------------------------
Series 2008 A, Lease RB 7.00% 08/01/38 700 546,455
- ------------------------------------------------------------------------------------------------------
Becker (City of) (Shepherd of Grace);
Series 2006, Senior Housing RB 5.75% 05/01/24 715 525,175
- ------------------------------------------------------------------------------------------------------
Series 2006, Senior Housing RB 5.88% 05/01/29 1,000 699,940
- ------------------------------------------------------------------------------------------------------
Series 2006, Senior Housing RB 5.88% 05/01/33 1,000 676,380
- ------------------------------------------------------------------------------------------------------
Series 2006, Senior Housing RB 5.88% 05/01/41 740 481,636
- ------------------------------------------------------------------------------------------------------
Series 2006, Senior Housing RB 6.00% 05/01/41 1,000 665,350
- ------------------------------------------------------------------------------------------------------
Brooklyn Park (City of) (Prairie Seeds Academy);
Series 2009 A, Lease RB 9.00% 03/01/29 2,620 2,634,096
- ------------------------------------------------------------------------------------------------------
Series 2009 A, Lease RB 9.25% 03/01/39 500 501,695
- ------------------------------------------------------------------------------------------------------
Carlton (City of) (Inter-Faith Care Center);
Series 2006, Ref. Health Care & Housing
Facilities RB 5.70% 04/01/36 1,500 926,985
- ------------------------------------------------------------------------------------------------------
Cold Spring (City of) (Assumption Home, Inc.);
Series 2005, Nursing Home & Senior Housing RB 5.50% 03/01/25 425 304,487
- ------------------------------------------------------------------------------------------------------
Series 2005, Nursing Home & Senior Housing RB 5.75% 03/01/35 600 392,418
- ------------------------------------------------------------------------------------------------------
Series 2008, Health Care Facilities RB 7.50% 03/01/38 1,000 931,710
- ------------------------------------------------------------------------------------------------------
Dakota (County of) Community Development Agency
(Highview Hills); Series 2008 A, Senior MFH
RB 7.00% 08/01/45 2,000 1,503,180
- ------------------------------------------------------------------------------------------------------
Eveleth (City of) (Manor House Woodland);
Series 2006 A-1, Senior MFH RB 5.50% 10/01/25 510 361,310
- ------------------------------------------------------------------------------------------------------
Series 2006 A-1, Senior MFH RB 5.70% 10/01/36 3,000 1,888,500
- ------------------------------------------------------------------------------------------------------
Fairmont (City of) (Goldfinch Estates-
Governmental and Educational Assistance
Corp.);
Series 2002 A-1, Housing Facilities RB 7.25% 04/01/22 915 802,922
- ------------------------------------------------------------------------------------------------------
Series 2005 A, Housing Facilities RB 6.25% 10/01/25 2,500 1,860,525
- ------------------------------------------------------------------------------------------------------
Falcon Heights (City of) (Kaleidoscope Charter
School);
Series 2007 A, Lease RB 6.00% 11/01/27 400 295,612
- ------------------------------------------------------------------------------------------------------
Series 2007 A, Lease RB 6.00% 11/01/37 550 373,472
- ------------------------------------------------------------------------------------------------------
Glencoe (City of) (Glencoe Regional Health
Services);
Series 2001, Health Care Facilities RB(b)(c) 7.40% 04/01/11 250 282,955
- ------------------------------------------------------------------------------------------------------
Series 2001, Health Care Facilities RB(b)(c) 7.50% 04/01/11 500 566,895
- ------------------------------------------------------------------------------------------------------
Maple Grove (City of) (Maple Grove Hospital
Corp.); Series 2007, Health Care System RB 5.25% 05/01/37 1,000 846,670
- ------------------------------------------------------------------------------------------------------
Maplewood (City of) (Volunteers of America Care
Center);
Series 2005 A, Ref. Health Care Facilities RB 5.00% 10/01/13 775 688,696
- ------------------------------------------------------------------------------------------------------
Series 2005 A, Ref. Health Care Facilities RB 5.25% 10/01/19 1,250 890,937
- ------------------------------------------------------------------------------------------------------
Series 2005 A, Ref. Health Care Facilities RB 5.38% 10/01/24 2,500 1,610,700
- ------------------------------------------------------------------------------------------------------
Minneapolis (City of) (Grant Park); Series 2006,
Tax Increment Allocation RB 5.35% 02/01/30 1,450 913,978
- ------------------------------------------------------------------------------------------------------
</Table>
See accompanying Notes to Financial Statements which are an integral part of the
financial statements.
17 AIM HIGH INCOME MUNICIPAL FUND
<Table>
<Caption>
PRINCIPAL
INTEREST MATURITY AMOUNT
RATE DATE (000) VALUE
- ------------------------------------------------------------------------------------------------------
MINNESOTA-(CONTINUED)
Minneapolis (City of) (Village at St. Anthony
Falls); Series 2004, Ref. Tax Increment
Allocation RB 5.75% 02/01/27 $ 605 $ 389,475
- ------------------------------------------------------------------------------------------------------
Monticello (City of) (FiberNet Monticello);
Series 2008, Telecommunications RB 6.75% 06/01/31 2,000 1,737,500
- ------------------------------------------------------------------------------------------------------
North Oaks (City of) (Presbyterian Homes of
North Oaks, Inc.);
Series 2007, Senior Housing RB 6.25% 10/01/47 2,400 1,752,600
- ------------------------------------------------------------------------------------------------------
Series 2007, Senior Housing RB 6.50% 10/01/47 1,000 758,810
- ------------------------------------------------------------------------------------------------------
Northwest Multi-County Housing & Redevelopment
Authority (Pooled Housing Program);
Series 2005 A, Ref. Governmental Housing RB 5.35% 07/01/15 70 62,542
- ------------------------------------------------------------------------------------------------------
Series 2005 A, Ref. Governmental Housing RB 6.20% 07/01/30 2,000 1,460,680
- ------------------------------------------------------------------------------------------------------
Oakdale (City of) (Oak Meadows); Series 2004,
Ref. Senior Housing RB 6.00% 04/01/24 1,000 760,720
- ------------------------------------------------------------------------------------------------------
Oronoco (City of) (Wedum Shorewood Campus);
Series 2006, Ref. MFH RB 5.25% 06/01/26 1,600 1,098,816
- ------------------------------------------------------------------------------------------------------
Owatonna (City of) (Senior Living): Series 2006
A, Senior Housing RB 5.80% 10/01/29 800 557,536
- ------------------------------------------------------------------------------------------------------
Pine City (City of) (Lakes International
Language Academy);
Series 2006 A, Lease RB 6.00% 05/01/26 480 359,736
- ------------------------------------------------------------------------------------------------------
Series 2006 A, Lease RB 6.25% 05/01/35 1,550 1,100,996
- ------------------------------------------------------------------------------------------------------
Ramsey (City of) (Pact Charter School);
Series 2004 A, Lease RB 6.50% 12/01/22 925 770,127
- ------------------------------------------------------------------------------------------------------
Series 2004 A, Lease RB 6.75% 12/01/33 150 114,960
- ------------------------------------------------------------------------------------------------------
Rochester (City of) (Mayo Clinic); Series 2006,
Health Care Facilities RB 5.00% 11/15/36 2,760 2,457,394
- ------------------------------------------------------------------------------------------------------
Rochester (City of) (Samaritan Bethany Inc.);
Series 2003 A, Health Care & Housing RB 5.38% 08/01/12 165 157,260
- ------------------------------------------------------------------------------------------------------
Series 2003 A, Health Care & Housing RB 5.50% 08/01/13 195 182,859
- ------------------------------------------------------------------------------------------------------
St. Cloud (City of) Housing & Redevelopment
Authority (Sterling Heights Apartments);
Series 2002, MFH RB(e) 7.00% 10/01/23 495 410,820
- ------------------------------------------------------------------------------------------------------
Series 2002, MFH RB(e) 7.45% 10/01/32 155 125,087
- ------------------------------------------------------------------------------------------------------
St. Paul (City of) Housing & Redevelopment
Authority (Community of Peace Academy);
Series 2001 A, Lease RB(b)(c) 7.38% 12/01/10 900 1,010,961
- ------------------------------------------------------------------------------------------------------
St. Paul (City of) Housing & Redevelopment
Authority (Hmong Academy);
Series 2006 A, Lease RB 5.75% 09/01/26 300 217,620
- ------------------------------------------------------------------------------------------------------
Series 2006 A, Lease RB 6.00% 09/01/36 390 265,972
- ------------------------------------------------------------------------------------------------------
St. Paul (City of) Housing & Redevelopment
Authority (New Spirit Charter School); Series
2002 A, Lease RB 7.50% 12/01/31 890 750,831
- ------------------------------------------------------------------------------------------------------
St. Paul (City of) Housing & Redevelopment
Authority (Rossy & Richard Shaller);
Series 2007 A, RB 5.05% 10/01/27 1,750 1,201,270
- ------------------------------------------------------------------------------------------------------
Series 2007 A, RB 5.15% 10/01/42 275 162,126
- ------------------------------------------------------------------------------------------------------
Vadnais Heights (City of) (Agriculture & Food
Sciences);
Series 2004 A, Lease RB 6.38% 12/01/24 900 688,581
- ------------------------------------------------------------------------------------------------------
Series 2004 A, Lease RB 6.60% 12/01/34 275 195,712
- ------------------------------------------------------------------------------------------------------
Washington (County of) Housing & Redevelopment
Authority (Birchwood & Woodbury);
Series 2007 A, Health Care & Housing RB 5.00% 12/01/14 1,000 852,470
- ------------------------------------------------------------------------------------------------------
Series 2007 A, Health Care & Housing RB 5.55% 12/01/27 1,210 869,833
- ------------------------------------------------------------------------------------------------------
Series 2007 A, Health Care & Housing RB 5.63% 06/01/37 1,000 662,820
- ------------------------------------------------------------------------------------------------------
Woodbury (City of) (Math & Science Academy);
Series 2002 A, Ref. Lease RB 7.38% 12/01/24 250 219,650
- ------------------------------------------------------------------------------------------------------
Series 2002 A, Ref. Lease RB 7.50% 12/01/31 750 632,722
======================================================================================================
46,502,122
======================================================================================================
MISSOURI-3.42%
370/Missouri Bottom Road/Tussing Road
Transportation Development District;
Series 2002, RB 7.00% 05/01/22 750 651,727
- ------------------------------------------------------------------------------------------------------
Series 2002, RB 7.20% 05/01/33 500 389,035
- ------------------------------------------------------------------------------------------------------
</Table>
See accompanying Notes to Financial Statements which are an integral part of the
financial statements.
18 AIM HIGH INCOME MUNICIPAL FUND
<Table>
<Caption>
PRINCIPAL
INTEREST MATURITY AMOUNT
RATE DATE (000) VALUE
- ------------------------------------------------------------------------------------------------------
MISSOURI-(CONTINUED)
Branson (City of) Industrial Development
Authority (Branson Landing-Retail); Series
2005, Tax Increment Allocation IDR 5.25% 06/01/21 $ 1,455 $ 1,107,400
- ------------------------------------------------------------------------------------------------------
Branson Hills Infrastructure Facilities
Community Improvement District;
Series 2007 A, Special Assessment RB 5.00% 04/01/11 550 537,713
- ------------------------------------------------------------------------------------------------------
Series 2007 A, Special Assessment RB 5.00% 04/01/13 300 280,914
- ------------------------------------------------------------------------------------------------------
Series 2007 A, Special Assessment RB 5.00% 04/01/15 500 444,365
- ------------------------------------------------------------------------------------------------------
Cass (County of); Series 2007, Hospital RB 5.63% 05/01/38 1,300 894,140
- ------------------------------------------------------------------------------------------------------
Chillicothe (City of) (South U.S. 65); Series
2006, Tax Increment Allocation RB 5.50% 04/01/21 1,000 791,400
- ------------------------------------------------------------------------------------------------------
Des Peres (City of) (West County Center); Series
2002 A, Ref. Tax Increment Allocation RB 5.75% 04/15/20 1,000 835,410
- ------------------------------------------------------------------------------------------------------
Desloge (City of) (U.S. Highway 67/State Street
Redevelopment); Series 2005, Ref. Tax
Increment Allocation RB 5.20% 04/15/20 535 423,929
- ------------------------------------------------------------------------------------------------------
Grandview (City of) Industrial Development
Authority (Grandview Crossing); Series 2006,
Tax Increment Allocation IDR 5.75% 12/01/28 1,250 512,275
- ------------------------------------------------------------------------------------------------------
Kansas City (City of) Industrial Development
Authority (The Bishop Spencer Place, Inc.);
Series 2004 A, First Mortgage Health Care
Facilities IDR 6.25% 01/01/24 500 368,085
- ------------------------------------------------------------------------------------------------------
Kansas City (City of) Tax Increment Financing
Commission (Maincor); Series 2007 A, Tax
Increment Allocation RB 5.25% 03/01/18 500 414,750
- ------------------------------------------------------------------------------------------------------
Maplewood (City of) (Maplewood South
Redevelopment Area); Series 2005, Ref. Tax
Increment RB 5.75% 11/01/26 1,350 992,115
- ------------------------------------------------------------------------------------------------------
Platte (County of) Industrial Development
Authority (Zona Rosa Phase II); Series 2007,
Transition IDR 6.85% 04/01/29 3,500 2,646,595
- ------------------------------------------------------------------------------------------------------
Polk (County of) Industrial Development
Authority (Citizen's Memorial Health Care
Federation); Series 2008, IDR 6.50% 01/01/33 2,000 1,472,220
- ------------------------------------------------------------------------------------------------------
Richmond Heights (City of) (Francis Place
Redevelopment); Series 2005, Ref. &
Improvement Tax Increment & Transportation
Sales Tax RB 5.63% 11/01/25 750 551,790
- ------------------------------------------------------------------------------------------------------
St. Joseph (City of) Industrial Development
Authority (The Shoppes at North Village);
Series 2005 A, Tax Increment Allocation IDR 5.25% 11/01/13 500 472,040
- ------------------------------------------------------------------------------------------------------
Series 2005 A, Tax Increment Allocation IDR 5.50% 11/01/27 750 528,353
- ------------------------------------------------------------------------------------------------------
Series 2005 B, Tax Increment Allocation IDR 5.50% 11/01/27 1,000 704,470
- ------------------------------------------------------------------------------------------------------
St. Louis (City of) Industrial Development
Authority (Confluence Academy); Series 2007
A, IDR 5.35% 06/15/32 750 468,263
- ------------------------------------------------------------------------------------------------------
St. Louis (County of) Industrial Development
Authority (St. Andrew's Resources for
Seniors) Series 2007 A, Senior Living
Facilities IDR 6.38% 12/01/41 1,000 682,090
- ------------------------------------------------------------------------------------------------------
Strother Interchange Transportation Development
District (Lees Summit); Series 2006, RB 5.00% 05/01/24 675 475,524
======================================================================================================
16,644,603
======================================================================================================
MONTANA-0.10%
Montana (State of) Facility Finance Authority
(St. John's Lutheran Church); Series 2006 A,
Senior Living RB 6.13% 05/15/36 750 483,015
======================================================================================================
NEVADA-0.33%
Las Vegas Valley Water District; Series 2003 A,
Ref. & Water Improvement Limited Tax GO
(INS-Financial Guaranty Insurance Co.)(d) 5.00% 06/01/32 1,150 1,116,144
- ------------------------------------------------------------------------------------------------------
University and Community College System of
Nevada; Series 2002 A, RB (INS-Financial
Guaranty Insurance Co.)(d) 5.40% 07/01/31 500 505,955
======================================================================================================
1,622,099
======================================================================================================
NEW HAMPSHIRE-0.27%
New Hampshire (State of) Health & Education
Facilities Authority (The Huntington at
Nashua);
Series 2003 A, RB 6.88% 05/01/23 750 700,650
- ------------------------------------------------------------------------------------------------------
Series 2003 A, RB 6.88% 05/01/33 750 637,620
======================================================================================================
1,338,270
======================================================================================================
NEW JERSEY-1.89%
Burlington (County of) Bridge Commission (The
Evergreens); Series 2007, Economic
Development RB 5.63% 01/01/38 2,400 1,421,784
- ------------------------------------------------------------------------------------------------------
New Jersey (State of) Economic Development
Authority (Cedar Crest Village, Inc.
Facility); Series 2001 A, Retirement
Community RB(b)(c) 7.25% 11/15/11 500 570,715
- ------------------------------------------------------------------------------------------------------
</Table>
See accompanying Notes to Financial Statements which are an integral part of the
financial statements.
19 AIM HIGH INCOME MUNICIPAL FUND
<Table>
<Caption>
PRINCIPAL
INTEREST MATURITY AMOUNT
RATE DATE (000) VALUE
- ------------------------------------------------------------------------------------------------------
NEW JERSEY-(CONTINUED)
New Jersey (State of) Economic Development
Authority (Continental Airlines, Inc.);
Series 1999, Special Facilities RB(e) 6.25% 09/15/29 $ 1,000 $ 569,040
- ------------------------------------------------------------------------------------------------------
Series 2000, Special Facilities RB(e) 7.00% 11/15/30 565 349,972
- ------------------------------------------------------------------------------------------------------
Series 2000, Special Facilities RB(e) 7.20% 11/15/30 425 269,650
- ------------------------------------------------------------------------------------------------------
Series 2003, Special Facilities RB(e) 9.00% 06/01/33 500 381,865
- ------------------------------------------------------------------------------------------------------
New Jersey (State of) Economic Development
Authority (Lions Gate);
Series 2005 A, First Mortgage RB 5.00% 01/01/15 825 770,269
- ------------------------------------------------------------------------------------------------------
Series 2005 A, First Mortgage RB 5.75% 01/01/25 710 542,355
- ------------------------------------------------------------------------------------------------------
Series 2005 A, First Mortgage RB 5.88% 01/01/37 1,360 937,761
- ------------------------------------------------------------------------------------------------------
New Jersey (State of) Economic Development
Authority (Seashore Gardens Living Center);
Series 2001, First Mortgage RB(b)(c) 8.00% 04/01/11 800 922,376
- ------------------------------------------------------------------------------------------------------
Series 2001, First Mortgage RB(b)(c) 8.00% 04/01/11 500 576,485
- ------------------------------------------------------------------------------------------------------
Series 2006, First Mortgage RB 5.30% 11/01/26 1,100 716,430
- ------------------------------------------------------------------------------------------------------
Series 2006, First Mortgage RB 5.38% 11/01/36 700 401,709
- ------------------------------------------------------------------------------------------------------
New Jersey (State of) Transportation Trust Fund
Authority; Series 2005 B, RB (INS-Ambac
Assurance Corp.)(d) 5.25% 12/15/23 750 783,630
======================================================================================================
9,214,041
======================================================================================================
NEW MEXICO-0.20%
Mariposa East Public Improvement District;
Series 2006, Unlimited Tax GO 5.75% 09/01/21 500 361,305
- ------------------------------------------------------------------------------------------------------
Series 2006, Unlimited Tax GO 6.00% 09/01/32 1,000 611,220
======================================================================================================
972,525
======================================================================================================
NEW YORK-2.24%
Broome (County of) Industrial Development Agency
(Good Shepherd Village);
Series 2008 A, Continuing Care Retirement IDR 6.15% 07/01/18 500 432,290
- ------------------------------------------------------------------------------------------------------
Series 2008 A, Continuing Care Retirement IDR 6.75% 07/01/28 600 455,082
- ------------------------------------------------------------------------------------------------------
Series 2008 A, Continuing Care Retirement IDR 6.88% 07/01/40 1,000 708,440
- ------------------------------------------------------------------------------------------------------
East Rochester (City of) Housing Authority
(Woodland Village); Series 2006, Ref. Senior
Living RB 5.50% 08/01/33 1,700 1,045,160
- ------------------------------------------------------------------------------------------------------
Erie (County of) Industrial Development Agency
(Orchard Park CCRC, Inc.);
Series 2006 A, IDR 6.00% 11/15/26 1,100 754,072
- ------------------------------------------------------------------------------------------------------
Series 2006 A, IDR 6.00% 11/15/36 2,000 1,228,340
- ------------------------------------------------------------------------------------------------------
Monroe (County of) Industrial Development Agency
(Woodland Village); Series 2000, Civic
Facilities IDR(b)(c) 8.55% 11/15/10 1,000 1,138,340
- ------------------------------------------------------------------------------------------------------
Nassau (County of) Industrial Development Agency
(Amsterdam at Harborside); Series 2007 A,
Continuing Care Retirement IDR 6.50% 01/01/27 1,000 818,620
- ------------------------------------------------------------------------------------------------------
New York (State of) Dormitory Authority (Mount
Sinai NYU Health Obligated Group); Series
2000, RB 5.50% 07/01/26 500 432,450
- ------------------------------------------------------------------------------------------------------
Syracuse (City of) Industrial Development Agency
(Jewish Home of Central New York, Inc.);
Series 2001 A, First Mortgage IDR 7.38% 03/01/21 350 313,239
- ------------------------------------------------------------------------------------------------------
Series 2001 A, First Mortgage IDR 7.38% 03/01/31 500 398,330
- ------------------------------------------------------------------------------------------------------
Ulster (County of) Industrial Development
Agency, Series 2007 A, Civic Facilities IDR 6.00% 09/15/27 2,000 1,412,620
- ------------------------------------------------------------------------------------------------------
Series 2007 A, Civic Facilities IDR 6.00% 09/15/37 2,000 1,236,560
- ------------------------------------------------------------------------------------------------------
Westchester (County of) Industrial Development
Agency (Hebrew Hospital Senior Housing Inc.);
Series 2000 A, Continuing Care Retirement
IDR(b)(c) 7.38% 07/01/10 500 549,730
======================================================================================================
10,923,273
======================================================================================================
NORTH CAROLINA-0.79%
North Carolina (State of) Medical Care
Commission (Pennybyrn at Maryfield); Series
2005 A, Health Care Facilities RB 6.13% 10/01/35 1,300 828,815
- ------------------------------------------------------------------------------------------------------
</Table>
See accompanying Notes to Financial Statements which are an integral part of the
financial statements.
20 AIM HIGH INCOME MUNICIPAL FUND
<Table>
<Caption>
PRINCIPAL
INTEREST MATURITY AMOUNT
RATE DATE (000) VALUE
- ------------------------------------------------------------------------------------------------------
NORTH CAROLINA-(CONTINUED)
North Carolina (State of) Medical Care
Commission (Southminister); Series 2007 A,
First Mortgage Retirement Facilities RB 5.75% 10/01/37 $ 1,500 $ 1,082,670
- ------------------------------------------------------------------------------------------------------
North Carolina (State of) Medical Care
Commission (The Presbyterian Homes Obligated
Group);
Series 2006, First Mortgage Health Care
Facilities RB 5.60% 10/01/36 1,000 692,220
- ------------------------------------------------------------------------------------------------------
Series 2006 B, Ref. First Mortgage Health
Care Facilities RB 5.20% 10/01/21 1,500 1,226,955
======================================================================================================
3,830,660
======================================================================================================
NORTH DAKOTA-0.70%
Grand Forks (City of) (4000 Valley Square);
Series 2006, Ref. Senior Housing RB 5.13% 12/01/21 1,315 952,402
- ------------------------------------------------------------------------------------------------------
Series 2006, Ref. Senior Housing RB 5.30% 12/01/34 855 484,529
- ------------------------------------------------------------------------------------------------------
Traill (County of) (Hillsboro Medical Center);
Series 2007, Health Care RB 5.25% 05/01/20 500 371,010
- ------------------------------------------------------------------------------------------------------
Series 2007, Health Care RB 5.50% 05/01/26 1,520 1,018,126
- ------------------------------------------------------------------------------------------------------
Series 2007, Health Care RB 5.50% 05/01/42 1,000 566,280
======================================================================================================
3,392,347
======================================================================================================
OHIO-3.13%
Adams (County of) (Adams County Hospital);
Series 2005, Hospital Facilities Improvement
RB 5.50% 09/01/09 375 374,280
- ------------------------------------------------------------------------------------------------------
Series 2005, Hospital Facilities Improvement
RB 5.75% 09/01/10 395 375,823
- ------------------------------------------------------------------------------------------------------
Centerville (City of) (Bethany Lutheran Village
Continuing Care Facilities Expansion),
Series 2007 A, Health Care RB 5.75% 11/01/22 1,000 721,290
- ------------------------------------------------------------------------------------------------------
Series 2007 A, Health Care RB 6.00% 11/01/27 2,000 1,397,600
- ------------------------------------------------------------------------------------------------------
Cleveland (City of)-Cuyahoga (County of) Port
Authority (St. Clarence-Governmental and
Educational Assistance Corp., LLC); Series
2006 A, Senior Housing RB 6.25% 05/01/38 2,710 1,551,610
- ------------------------------------------------------------------------------------------------------
Cleveland (City of)-Cuyahoga (County of) Port
Authority; Series 2001, Special Assessment
Tax Increment RB 7.35% 12/01/31 1,000 862,440
- ------------------------------------------------------------------------------------------------------
Cuyahoga (County of) (Canton Inc.); Series 2000,
Hospital Facilities RB 7.50% 01/01/30 750 672,637
- ------------------------------------------------------------------------------------------------------
Cuyahoga (County of) (Eliza Jennings Senior Care
Network),
Series 2007 A, Health Care & Independent
Living Facilities RB 5.75% 05/15/27 1,000 668,980
- ------------------------------------------------------------------------------------------------------
Series 2007 A, Health Care & Independent
Living Facilities RB 6.00% 05/15/37 1,000 619,030
- ------------------------------------------------------------------------------------------------------
Hickory Chase Community Authority;
Series 2008, Infrastructure Improvement RB 6.75% 12/01/27 2,000 1,504,180
- ------------------------------------------------------------------------------------------------------
Series 2008, Infrastructure Improvement RB 7.00% 12/01/38 1,500 1,079,400
- ------------------------------------------------------------------------------------------------------
Lucas (County of) (Sunset Retirement
Communities);
Series 2000 A, Ref. & Improvement Health Care
Facilities RB 6.50% 08/15/20 920 849,022
- ------------------------------------------------------------------------------------------------------
Series 2000 A, Ref. & Improvement Health Care
Facilities RB 6.55% 08/15/24 500 444,535
- ------------------------------------------------------------------------------------------------------
Norwood (City of) (Cornerstone at Norwood);
Series 2006, Tax Increment Financing RB 5.25% 12/01/15 1,080 914,026
- ------------------------------------------------------------------------------------------------------
Series 2006, Tax Increment Financing RB 5.75% 12/01/20 1,300 978,822
- ------------------------------------------------------------------------------------------------------
Toledo (City of) & Lucas (County of) Port
Authority (St. Mary Woods);
Series 2004 A, RB 6.00% 05/15/24 1,750 1,260,700
- ------------------------------------------------------------------------------------------------------
Series 2004 A, RB 6.00% 05/15/34 1,500 957,690
======================================================================================================
15,232,065
======================================================================================================
OKLAHOMA-3.07%
Cleveland (County of) Justice Authority
(Detention Facility); Series 2009 B, Sales
Tax RB 5.75% 03/01/29 1,400 1,380,344
- ------------------------------------------------------------------------------------------------------
</Table>
See accompanying Notes to Financial Statements which are an integral part of the
financial statements.
21 AIM HIGH INCOME MUNICIPAL FUND
<Table>
<Caption>
PRINCIPAL
INTEREST MATURITY AMOUNT
RATE DATE (000) VALUE
- ------------------------------------------------------------------------------------------------------
OKLAHOMA-(CONTINUED)
Oklahoma (County of) Finance Authority (Epworth
Villa);
Series 2005 A, Ref. RB 5.00% 04/01/15 $ 1,025 $ 880,485
- ------------------------------------------------------------------------------------------------------
Series 2005 A, Ref. RB 5.70% 04/01/25 2,500 1,736,725
- ------------------------------------------------------------------------------------------------------
Oklahoma (County of) Finance Authority (Oxford
Oaks, Watersedge & Gardens at Reding
Apartments); Series 2000, Ref. VRD MFH RB
(CEP-Federal National Mortgage
Association)(f)(g) 0.50% 07/15/30 10,450 10,450,000
- ------------------------------------------------------------------------------------------------------
Oklahoma (State of) Development Finance
Authority (Comanche County Hospital); Series
2002 B, RB 6.60% 07/01/31 625 506,063
======================================================================================================
14,953,617
======================================================================================================
OREGON-0.70%
Clackamas (County of) Hospital Facilities
Authority (Gross-Willamette Falls); Series
2005, Ref. RB 5.13% 04/01/26 1,000 748,950
- ------------------------------------------------------------------------------------------------------
Clackamas (County of) Hospital Facilities
Authority (Odd Fellows Home); Series 1998 A,
Ref. RB 5.88% 09/15/21 230 172,334
- ------------------------------------------------------------------------------------------------------
Oregon (State of) Health Housing Educational &
Cultural Facilities Authority (Oregon Baptist
Retirement Homes); Series 1996, RB 8.00% 11/15/26 655 582,040
- ------------------------------------------------------------------------------------------------------
Yamhill (County of) Hospital Authority
(Friendsview Retirement Community); Series
2003, RB(b)(c) 7.00% 12/01/13 1,555 1,903,895
======================================================================================================
3,407,219
======================================================================================================
PENNSYLVANIA-4.41%
Allegheny (County of) Hospital Development
Authority (Villa St. Joseph of Baden); Series
1998, Health Care Facilities RB 6.00% 08/15/28 500 344,735
- ------------------------------------------------------------------------------------------------------
Allegheny (County of) Industrial Development
Authority (Propel Schools-Homestead); Series
2004 A, Charter School IDR 7.00% 12/15/15 685 663,087
- ------------------------------------------------------------------------------------------------------
Blair (County of) Industrial Development
Authority (Village of Pennsylvania State);
Series 2002 A, IDR 6.90% 01/01/22 500 413,665
- ------------------------------------------------------------------------------------------------------
Series 2002 A, IDR 7.00% 01/01/34 500 356,910
- ------------------------------------------------------------------------------------------------------
Chartiers Valley Industrial & Commercial
Development Authority (Asbury Health Center);
Series 1999, Ref. First Mortgage IDR 6.38% 12/01/19 1,000 868,210
- ------------------------------------------------------------------------------------------------------
Series 2006, Ref. First Mortgage IDR 5.13% 12/01/12 500 460,730
- ------------------------------------------------------------------------------------------------------
Series 2006, Ref. First Mortgage IDR 5.25% 12/01/13 500 454,680
- ------------------------------------------------------------------------------------------------------
Series 2006, Ref. First Mortgage IDR 5.25% 12/01/15 260 227,692
- ------------------------------------------------------------------------------------------------------
Series 2006, Ref. First Mortgage IDR 5.38% 12/01/16 500 406,785
- ------------------------------------------------------------------------------------------------------
Series 2006, Ref. First Mortgage IDR 5.75% 12/01/22 935 687,973
- ------------------------------------------------------------------------------------------------------
Chester (County of) Industrial Development
Authority (Avon Grove Charter School); Series
2007 A, IDR 6.25% 12/15/27 1,000 746,280
- ------------------------------------------------------------------------------------------------------
Crawford (County of) Hospital Authority (Wesbury
United Methodist Community); Series 1999,
Senior Living Facilities RB 6.25% 08/15/29 750 542,265
- ------------------------------------------------------------------------------------------------------
Cumberland (County of) Municipal Authority
(Messiah Village); Series 2008 A, RB 6.00% 07/01/35 1,000 716,410
- ------------------------------------------------------------------------------------------------------
Cumberland (County of) Municipal Authority
(Presbyterian Homes Obligations);
Series 2008 A, RB 5.00% 01/01/17 2,000 1,713,200
- ------------------------------------------------------------------------------------------------------
Series 2008 A, RB 5.35% 01/01/20 515 426,564
- ------------------------------------------------------------------------------------------------------
Series 2008 A, RB 5.45% 01/01/21 885 729,178
- ------------------------------------------------------------------------------------------------------
Cumberland (County of) Municipal Authority
(Wesley Affiliated Services, Inc.); Series
2002 A, Retirement Community RB(b)(c) 7.13% 01/01/13 700 830,970
- ------------------------------------------------------------------------------------------------------
Fulton (County of) Industrial Development
Authority (The Fulton County Medical Center);
Series 2006, Hospital IDR 5.88% 07/01/31 1,500 971,415
- ------------------------------------------------------------------------------------------------------
Harrisburg (City of) Authority (Harrisburg
University of Science);
Series 2007 A, University RB 5.40% 09/01/16 550 519,283
- ------------------------------------------------------------------------------------------------------
Series 2007 B, University RB 6.00% 09/01/36 1,225 901,869
- ------------------------------------------------------------------------------------------------------
Lancaster (County of) Hospital Authority (Saint
Anne's Home); Series 1999, Health Center RB 6.63% 04/01/28 500 378,700
- ------------------------------------------------------------------------------------------------------
Lancaster (County of) Industrial Development
Authority (Garden Spot Village);
Series 2000 A, IDR(b)(c) 7.60% 05/01/10 250 271,278
- ------------------------------------------------------------------------------------------------------
Series 2000 A, IDR(b)(c) 7.63% 05/01/10 500 542,690
- ------------------------------------------------------------------------------------------------------
</Table>
See accompanying Notes to Financial Statements which are an integral part of the
financial statements.
22 AIM HIGH INCOME MUNICIPAL FUND
<Table>
<Caption>
PRINCIPAL
INTEREST MATURITY AMOUNT
RATE DATE (000) VALUE
- ------------------------------------------------------------------------------------------------------
PENNSYLVANIA-(CONTINUED)
Lawrence (County of) Industrial Development
Authority (Shenango Presbyterian Senior Care
Obligated Group); Series 2001 B, Senior
Health & Housing Facilities IDR(b)(c) 7.50% 11/15/11 $ 1,000 $ 1,172,240
- ------------------------------------------------------------------------------------------------------
Lehigh (County of) General Purpose Authority
(Bible Fellowship Church Home Inc.);
Series 2001, First Mortgage RB 7.63% 11/01/21 250 225,085
- ------------------------------------------------------------------------------------------------------
Series 2001, First Mortgage RB 7.75% 11/01/33 750 584,542
- ------------------------------------------------------------------------------------------------------
North Penn (Region of) Health Hospital &
Education Authority (Maple Village); Series
2000 A, Hospital RB(b)(c) 8.00% 04/01/10 300 321,519
- ------------------------------------------------------------------------------------------------------
Pennsylvania (State of) Economic Development
Financing Authority (Northwestern Human
Services, Inc.); Series 1998 A, RB 5.25% 06/01/14 1,000 884,960
- ------------------------------------------------------------------------------------------------------
Pennsylvania (State of) Higher Educational
Facilities Authority (Student Association,
Inc. at California University of
Pennsylvania); Series 2000 A, Student Housing
RB 6.75% 09/01/20 500 445,855
- ------------------------------------------------------------------------------------------------------
Series 2000 A, Student Housing RB 6.75% 09/01/32 320 254,557
- ------------------------------------------------------------------------------------------------------
Philadelphia (City of) Industrial Development
Authority (Cathedral Village); Series 2003 A,
IDR 6.88% 04/01/34 500 370,950
- ------------------------------------------------------------------------------------------------------
Philadelphia (City of) Industrial Development
Authority (Russell Byers Charter School);
Series 2007 A, IDR 5.15% 05/01/27 1,000 678,030
- ------------------------------------------------------------------------------------------------------
Series 2007 A, IDR 5.25% 05/01/37 1,000 620,510
- ------------------------------------------------------------------------------------------------------
Philadelphia (City of) Industrial Development
Authority; Series 2007 A, IDR 5.50% 09/15/37 2,700 1,741,419
======================================================================================================
21,474,236
======================================================================================================
RHODE ISLAND-0.92%
Rhode Island (State of) Health & Educational
Building Corp. (Lifespan Obligation);
Series 2009 A, Hospital Financing RB 6.25% 05/15/30 2,000 2,014,740
- ------------------------------------------------------------------------------------------------------
Series 2009 A, Hospital Financing RB 7.00% 05/15/39 2,500 2,478,750
======================================================================================================
4,493,490
======================================================================================================
SOUTH CAROLINA-2.09%
South Carolina (State of) Jobs-Economic
Development Authority (Lutheran Homes);
Series 2007, Ref. First Mortgage Health Care
Facilities RB 5.00% 05/01/14 1,035 948,288
- ------------------------------------------------------------------------------------------------------
Series 2007, Ref. First Mortgage Health Care
Facilities RB 5.38% 05/01/21 1,500 1,080,645
- ------------------------------------------------------------------------------------------------------
Series 2007, Ref. First Mortgage Health Care
Facilities RB 5.50% 05/01/28 1,100 717,299
- ------------------------------------------------------------------------------------------------------
South Carolina (State of) Jobs-Economic
Development Authority (Palmetto Health
Alliance);
Series 2000 A, Hospital Facilities
Improvement RB(b)(c) 7.38% 12/15/10 800 894,168
- ------------------------------------------------------------------------------------------------------
Series 2003 A, Ref. Hospital Facilities RB 6.13% 08/01/23 1,500 1,389,945
- ------------------------------------------------------------------------------------------------------
Series 2003 A, Ref. Hospital Facilities RB 6.25% 08/01/31 1,570 1,367,831
- ------------------------------------------------------------------------------------------------------
South Carolina (State of) Jobs-Economic
Development Authority (South Carolina
Episcopal Home at Still Hopes);
Series 2004 A, Residential Care Facilities RB 6.25% 05/15/25 750 559,987
- ------------------------------------------------------------------------------------------------------
Series 2004 A, Residential Care Facilities RB 6.38% 05/15/32 1,250 843,750
- ------------------------------------------------------------------------------------------------------
South Carolina (State of) Jobs-Economic
Development Authority (The Woodlands at
Furman); Series 2007 A, RB 6.00% 11/15/37 2,000 1,235,600
- ------------------------------------------------------------------------------------------------------
South Carolina (State of) Jobs-Economic
Development Authority (Wesley Commons);
Series 2000, First Mortgage Health Facilities
RB(b)(c) 7.75% 10/01/10 700 782,019
- ------------------------------------------------------------------------------------------------------
Series 2000, First Mortgage Health Facilities
RB(b)(c) 8.00% 10/01/10 300 336,018
======================================================================================================
10,155,550
======================================================================================================
SOUTH DAKOTA-0.29%
Sioux Falls (City of); Series 2008 A, Tax
Increment Allocation RB 5.75% 01/15/28 1,300 932,529
- ------------------------------------------------------------------------------------------------------
South Dakota (State of) Health & Educational
Facilities Authority (Westhills Village
Retirement Community); Series 2003, RB 5.65% 09/01/23 500 469,370
======================================================================================================
1,401,899
======================================================================================================
TENNESSEE-0.60%
Blount (County of) Health & Educational
Facilities Board (Asbury Inc.); Series 2007
A, Ref. RB 5.13% 04/01/23 1,690 1,153,121
- ------------------------------------------------------------------------------------------------------
</Table>
See accompanying Notes to Financial Statements which are an integral part of the
financial statements.
23 AIM HIGH INCOME MUNICIPAL FUND
<Table>
<Caption>
PRINCIPAL
INTEREST MATURITY AMOUNT
RATE DATE (000) VALUE
- ------------------------------------------------------------------------------------------------------
TENNESSEE-(CONTINUED)
Davidson and Williamson (Counties of) Harpeth
Valley Utilities District; Series 2004,
Utilities Improvement RB (INS-National Public
Finance Guarantee Corp.)(d) 5.00% 09/01/34 $ 1,000 $ 990,020
- ------------------------------------------------------------------------------------------------------
Johnson City (City of) Health & Educational
Facilities Board (Appalachian Christian
Village);
Series 2004 A, Retirement Facilities RB 6.00% 02/15/24 500 377,775
- ------------------------------------------------------------------------------------------------------
Series 2004 A, Retirement Facilities RB 6.25% 02/15/32 600 407,934
======================================================================================================
2,928,850
======================================================================================================
TEXAS-7.64%
Abilene (City of) Health Facilities Development
Corp. (Sears Methodist Retirement System
Obligated Group Report); Series 2003 A,
Retirement Facilities RB 7.00% 11/15/33 2,400 1,736,400
- ------------------------------------------------------------------------------------------------------
Atlanta (City of) Hospital Authority; Series
1999, RB 6.70% 08/01/19 500 446,440
- ------------------------------------------------------------------------------------------------------
Bexar (County of) Housing Finance Corp.
(American Opportunity Housing); Sr. Series
2002 A-1, MFH RB 6.85% 12/01/23 750 497,603
- ------------------------------------------------------------------------------------------------------
Clifton Higher Education Finance Corp. (Tejano
Center Community); Series 2009 A, Ref. RB 9.00% 02/15/38 2,000 1,947,560
- ------------------------------------------------------------------------------------------------------
Corpus Christi (Port of) Industrial Development
Corp. (Valero); Series 1997 C, Ref. IDR 5.40% 04/01/18 605 566,855
- ------------------------------------------------------------------------------------------------------
Dallas-Fort Worth (Cities of) International
Airport Facilities Improvement Corp.; Series
2000 A-3, Ref. RB(e) 9.13% 05/01/29 500 248,670
- ------------------------------------------------------------------------------------------------------
Decatur (City of) Hospital Authority (Wise
Regional Health System);
Series 2004 A, RB 5.63% 09/01/13 1,735 1,681,406
- ------------------------------------------------------------------------------------------------------
Series 2004 A, RB 7.00% 09/01/25 2,825 2,252,146
- ------------------------------------------------------------------------------------------------------
Series 2004 A, RB 7.13% 09/01/34 905 682,714
- ------------------------------------------------------------------------------------------------------
Gulf Coast Waste Disposal Authority (Valero
Energy Corp.); Series 2001, RB(e) 6.65% 04/01/32 900 755,064
- ------------------------------------------------------------------------------------------------------
Harris (County of) Health Facilities Development
Corp. (Memorial Hermann Healthcare System);
Series 2008 B, Hospital RB 7.20% 12/01/28 1,000 1,037,370
- ------------------------------------------------------------------------------------------------------
HFDC of Central Texas, Inc. (Villa de San
Antonio); Series 2004 A, RB 6.00% 05/15/25 500 339,455
- ------------------------------------------------------------------------------------------------------
HFDC of Central Texas, Inc.;
Series 2006 A, Retirement Facilities RB 5.63% 11/01/26 750 487,005
- ------------------------------------------------------------------------------------------------------
Series 2006 A, Retirement Facilities RB 5.50% 11/01/31 500 296,395
- ------------------------------------------------------------------------------------------------------
Series 2006 A, Retirement Facilities RB 5.75% 11/01/36 1,000 593,640
- ------------------------------------------------------------------------------------------------------
Hidalgo (County of) Health Services Corp.
(Mission Hospital, Inc.);
Series 2005, Hospital RB 5.00% 08/15/15 500 443,860
- ------------------------------------------------------------------------------------------------------
Series 2005, Hospital RB 5.00% 08/15/19 700 559,762
- ------------------------------------------------------------------------------------------------------
Hopkins (County of) Hospital District;
Series 2008, RB 6.00% 02/15/33 1,000 753,430
- ------------------------------------------------------------------------------------------------------
Series 2008, RB 6.00% 02/15/38 1,000 735,690
- ------------------------------------------------------------------------------------------------------
Houston (City of) (Continental Airlines, Inc.
Terminal E); Series 2001 E, Airport System
Special Facilities RB(e) 6.75% 07/01/29 500 306,500
- ------------------------------------------------------------------------------------------------------
Houston (City of) Health Facilities Development
Corp. (Buckingham Senior Living Community);
Series 2004 A, Retirement Facilities RB(b)(c) 7.00% 02/15/14 300 361,233
- ------------------------------------------------------------------------------------------------------
Series 2004 A, Retirement Facilities RB(b)(c) 7.00% 02/15/14 750 903,082
- ------------------------------------------------------------------------------------------------------
Series 2004 A, Retirement Facilities RB(b)(c) 7.13% 02/15/14 450 544,401
- ------------------------------------------------------------------------------------------------------
La Vernia Higher Education Finance Corp. (Amigos
Por Vida/Friends for Life); Series 2008, RB 6.38% 02/15/37 1,635 1,138,598
- ------------------------------------------------------------------------------------------------------
La Vernia Higher Education Finance Corp.;
Series 2008 A, RB 6.25% 02/15/17 1,245 1,093,247
- ------------------------------------------------------------------------------------------------------
Series 2008 A, RB 7.13% 02/15/38 2,000 1,519,700
- ------------------------------------------------------------------------------------------------------
Lufkin (City of) Health Facilities Development
Corp. (Memorial Health System of East Texas);
Series 2007, RB 5.50% 02/15/37 1,000 677,760
- ------------------------------------------------------------------------------------------------------
Meadow Parc Development, Inc. (Meadow Parc
Apartments); Series 1998, MFH RB 6.50% 12/01/30 1,135 831,274
- ------------------------------------------------------------------------------------------------------
Mesquite (City of) Health Facilities Development
Corp. (Christian Care Centers, Inc.); Series
2005, Retirement Facilities RB 5.63% 02/15/35 945 634,265
- ------------------------------------------------------------------------------------------------------
</Table>
See accompanying Notes to Financial Statements which are an integral part of the
financial statements.
24 AIM HIGH INCOME MUNICIPAL FUND
<Table>
<Caption>
PRINCIPAL
INTEREST MATURITY AMOUNT
RATE DATE (000) VALUE
- ------------------------------------------------------------------------------------------------------
TEXAS-(CONTINUED)
Midlothian (City of) Development Authority;
Series 2001, Tax Increment Contract
Allocation RB(b)(c) 7.88% 05/15/11 $ 1,000 $ 1,161,810
- ------------------------------------------------------------------------------------------------------
Series 2004, Tax Increment Contract
Allocation RB(a) 6.20% 11/15/29 1,000 764,870
- ------------------------------------------------------------------------------------------------------
Tarrant (County of) Cultural Education
Facilities Finance Corp. (Buckingham Senior
Living Community, Inc.);
Series 2007, Retirement Facilities RB 5.63% 11/15/27 1,500 1,044,240
- ------------------------------------------------------------------------------------------------------
Series 2007, Retirement Facilities RB 5.75% 11/15/37 3,500 2,258,970
- ------------------------------------------------------------------------------------------------------
Tarrant (County of) Cultural Education
Facilities Finance Corp. (C.C. Young Memorial
Home);
Series 2007, Retirement Facilities RB 5.25% 02/15/17 1,150 920,908
- ------------------------------------------------------------------------------------------------------
Series 2007, Retirement Facilities RB 5.75% 02/15/25 1,500 1,045,305
- ------------------------------------------------------------------------------------------------------
Series 2007, Retirement Facilities RB 5.75% 02/15/29 1,600 1,037,840
- ------------------------------------------------------------------------------------------------------
Tarrant (County of) Cultural Education
Facilities Finance Corp. (Northwest Senior
Housing Corp.-Edgemere);
Series 2006 A, Retirement Facilities RB 6.00% 11/15/26 1,200 896,988
- ------------------------------------------------------------------------------------------------------
Series 2006 A, Retirement Facilities RB 6.00% 11/15/36 2,000 1,337,060
- ------------------------------------------------------------------------------------------------------
Travis (County of) Health Facilities Development
Corp. (Querencia Barton Creek);
Series 2005, Retirement Facilities RB 5.50% 11/15/25 1,650 1,068,012
- ------------------------------------------------------------------------------------------------------
Series 2005, Retirement Facilities RB 5.65% 11/15/35 1,250 756,900
- ------------------------------------------------------------------------------------------------------
Woodhill Public Facilities Corp. (Woodhill
Apartments); Series 1999, MFH RB 7.50% 12/01/29 1,000 840,220
======================================================================================================
37,204,648
======================================================================================================
UTAH-3.23%
Provo (City of) (Freedom Academy Foundation);
Series 2007, Charter School RB 5.50% 06/15/37 1,450 884,268
- ------------------------------------------------------------------------------------------------------
Utah (County of) (Lakeview Academy); Series 2007
A, Charter School RB 5.63% 07/15/37 2,200 1,382,590
- ------------------------------------------------------------------------------------------------------
Utah (County of) (Renaissance Academy);
Series 2007 A, Charter School RB 5.35% 07/15/17 1,000 842,320
- ------------------------------------------------------------------------------------------------------
Series 2007 A, Charter School RB 5.63% 07/15/37 1,350 848,408
- ------------------------------------------------------------------------------------------------------
Utah (County of) (Ronald Wilson Reagan Academy);
Series 2007 A, Charter School RB 5.75% 02/15/22 340 260,253
- ------------------------------------------------------------------------------------------------------
Series 2007 A, Charter School RB 6.00% 02/15/38 2,710 1,797,597
- ------------------------------------------------------------------------------------------------------
Utah (State of) Charter School Finance Authority
(Channing Hall);
Series 2007 A, RB(a) 5.88% 07/15/27 780 547,357
- ------------------------------------------------------------------------------------------------------
Series 2007 A, RB(a) 6.00% 07/15/37 2,100 1,382,703
- ------------------------------------------------------------------------------------------------------
Utah (State of) Charter School Finance Authority
(George Washington Academy);
Series 2008 A, RB 6.75% 07/15/28 1,340 1,047,853
- ------------------------------------------------------------------------------------------------------
Series 2008 A, RB 7.00% 07/15/40 1,690 1,272,587
- ------------------------------------------------------------------------------------------------------
Utah (State of) Charter School Finance Authority
(Rockwell Academy); Series 2008 A, RB 7.00% 08/15/38 2,000 1,528,960
- ------------------------------------------------------------------------------------------------------
Utah (State of) Charter School Finance Authority
(Summit Academy); Series 2007 A, RB 5.80% 06/15/38 3,800 2,560,098
- ------------------------------------------------------------------------------------------------------
West Valley City (City of) (Monticello Academy);
Series 2007, Ref. Charter School RB(a) 6.38% 06/01/37 2,000 1,392,840
======================================================================================================
15,747,834
======================================================================================================
VIRGINIA-2.21%
Chesterfield (County of) Health Center
Commission (Lucy Corr Village);
Series 2008 A, Residential Care Facilities RB 6.13% 12/01/30 2,000 1,339,460
- ------------------------------------------------------------------------------------------------------
Series 2008 A, Residential Care Facilities RB 6.25% 12/01/38 2,000 1,287,900
- ------------------------------------------------------------------------------------------------------
Henrico (County of) Economic Development
Authority (Virginia United Methodist Homes);
Series 2002 A, Ref. Residential Care
Facilities RB 6.50% 06/01/22 750 647,565
- ------------------------------------------------------------------------------------------------------
</Table>
See accompanying Notes to Financial Statements which are an integral part of the
financial statements.
25 AIM HIGH INCOME MUNICIPAL FUND
<Table>
<Caption>
PRINCIPAL
INTEREST MATURITY AMOUNT
RATE DATE (000) VALUE
- ------------------------------------------------------------------------------------------------------
VIRGINIA-(CONTINUED)
Lexington (City of) Industrial Development
Authority (Kendall at Lexington);
Series 2007 A, Residential Care Facilities
Mortgage IDR 5.25% 01/01/21 $ 895 $ 675,323
- ------------------------------------------------------------------------------------------------------
Series 2007 A, Residential Care Facilities
Mortgage IDR 5.38% 01/01/22 780 585,382
- ------------------------------------------------------------------------------------------------------
Series 2007 A, Residential Care Facilities
Mortgage IDR 5.38% 01/01/23 425 309,251
- ------------------------------------------------------------------------------------------------------
Series 2007 A, Residential Care Facilities
Mortgage IDR 5.38% 01/01/28 750 502,860
- ------------------------------------------------------------------------------------------------------
Series 2007 A, Residential Care Facilities
Mortgage IDR 5.50% 01/01/37 1,300 793,663
- ------------------------------------------------------------------------------------------------------
Lynchburg (City of) Industrial Development
Authority (The Summit); Series 2002 A,
Residential Care Facilities Mortgage IDR 6.25% 01/01/28 500 359,725
- ------------------------------------------------------------------------------------------------------
Norfolk Redevelopment & Housing Authority (Fort
Norfolk Retirement Community, Inc.-Harbor's
Edge);
Series 2004 A, First Mortgage RB 6.00% 01/01/25 500 370,685
- ------------------------------------------------------------------------------------------------------
Series 2004 A, First Mortgage RB 6.13% 01/01/35 1,100 731,610
- ------------------------------------------------------------------------------------------------------
Peninsula Ports Authority (Virginia Baptist
Homes);
Series 2003 A, Residential Care Facilities
RB(b)(c) 7.38% 12/01/13 500 607,820
- ------------------------------------------------------------------------------------------------------
Series 2006 C, Ref. Residential Care
Facilities RB 5.38% 12/01/26 1,000 676,490
- ------------------------------------------------------------------------------------------------------
Series 2006 C, Ref. Residential Care
Facilities RB 5.40% 12/01/33 1,000 601,590
- ------------------------------------------------------------------------------------------------------
Peninsula Town Center Community Development
Authority,
Series 2007, Special Obligations RB 6.35% 09/01/28 1,000 658,660
- ------------------------------------------------------------------------------------------------------
Series 2007, Special Obligations RB 6.45% 09/01/37 1,000 624,940
======================================================================================================
10,772,924
======================================================================================================
WASHINGTON-1.50%
Klickitat (County of) Public Hospital District
No. 1 (Skagit Valley Hospital); Series 2007,
RB 5.75% 12/01/28 1,250 979,663
- ------------------------------------------------------------------------------------------------------
Klickitat (County of) Public Hospital District
No. 2 (Skyline Hospital); Series 2007, RB 6.50% 12/01/38 2,000 1,410,520
- ------------------------------------------------------------------------------------------------------
Washington (State of) Health Care Facilities
Authority (Multi-Care Health System); Series
2007 B, RB (INS-Financial Security Assurance
Inc.)(d) 5.00% 08/15/41 1,000 854,520
- ------------------------------------------------------------------------------------------------------
Washington (State of) Health Care Facilities
Authority (Seattle Cancer Care Alliance);
Series 2009, RB 7.38% 03/01/38 500 516,440
- ------------------------------------------------------------------------------------------------------
Washington (State of) Health Care Facilities
Authority (Swedish Health Services); Series
2009 A, RB 6.50% 11/15/33 1,500 1,467,945
- ------------------------------------------------------------------------------------------------------
Washington (State of) Health Care Facilities
Authority; Series 2007 C, RB (INS-Radian
Asset Assurance, Inc.)(d) 5.50% 08/15/42 3,000 2,064,810
======================================================================================================
7,293,898
======================================================================================================
WEST VIRGINIA-1.43%
Harrison County (County of) Commission (Charles
Pointe No. 2);
Series 2008 A, Ref. Tax Increment Allocation
RB 7.00% 06/01/35 1,500 1,081,050
- ------------------------------------------------------------------------------------------------------
Series 2008 B, Ref. Tax Increment Allocation
RB 7.00% 06/01/28 1,000 755,950
- ------------------------------------------------------------------------------------------------------
West Virginia (State of) Hospital Finance
Authority (Thomas Health System);
Series 2008, RB 6.50% 10/01/38 5,000 3,831,800
- ------------------------------------------------------------------------------------------------------
Series 2008, RB 6.75% 10/01/43 1,650 1,283,189
======================================================================================================
6,951,989
======================================================================================================
WISCONSIN-2.56%
Milwaukee (City of) Redevelopment Authority
(Academy of Learning);
Series 2007 A, Education RB 5.50% 08/01/22 300 222,477
- ------------------------------------------------------------------------------------------------------
Series 2007 A, Education RB 5.65% 08/01/37 1,540 961,176
- ------------------------------------------------------------------------------------------------------
Milwaukee (City of) Redevelopment Authority
(Milwaukee Science Education Consortium,
Inc.); Series 2005 A, RB 5.75% 08/01/35 1,815 1,277,379
- ------------------------------------------------------------------------------------------------------
Wisconsin (State of) Health & Educational
Facilities Authority (AE Nursing Centers);
Series 2008, RB 7.15% 06/01/28 1,120 857,886
- ------------------------------------------------------------------------------------------------------
Series 2008, RB 7.25% 06/01/38 1,000 732,490
- ------------------------------------------------------------------------------------------------------
</Table>
See accompanying Notes to Financial Statements which are an integral part of the
financial statements.
26 AIM HIGH INCOME MUNICIPAL FUND
<Table>
<Caption>
PRINCIPAL
INTEREST MATURITY AMOUNT
RATE DATE (000) VALUE
- ------------------------------------------------------------------------------------------------------
WISCONSIN-(CONTINUED)
Wisconsin (State of) Health & Educational
Facilities Authority (Beaver Dam Community
Hospitals, Inc.);
Series 2004 A, RB 6.50% 08/15/26 $ 250 $ 181,020
- ------------------------------------------------------------------------------------------------------
Series 2004 A, RB 6.75% 08/15/34 950 666,092
- ------------------------------------------------------------------------------------------------------
Wisconsin (State of) Health & Educational
Facilities Authority (Community Memorial
Hospital, Inc.); Series 2003, RB 7.13% 01/15/22 990 871,249
- ------------------------------------------------------------------------------------------------------
Wisconsin (State of) Health & Educational
Facilities Authority (Community
Rehabilitation Providers Facilities
Acquisition Program); Series 1998, RB 6.88% 12/01/23 200 158,006
- ------------------------------------------------------------------------------------------------------
Wisconsin (State of) Health & Educational
Facilities Authority (Eastcastle Place,
Inc.);
Series 2004, RB 6.00% 12/01/24 500 362,770
- ------------------------------------------------------------------------------------------------------
Series 2004, RB 6.13% 12/01/34 1,000 646,240
- ------------------------------------------------------------------------------------------------------
Wisconsin (State of) Health & Educational
Facilities Authority (New Castle Place);
Series 2001 A, RB 7.00% 12/01/31 250 186,602
- ------------------------------------------------------------------------------------------------------
Wisconsin (State of) Health & Educational
Facilities Authority (Oakwood Village);
Series 2000 A, RB(b) 7.63% 08/15/30 1,000 1,103,190
- ------------------------------------------------------------------------------------------------------
Wisconsin (State of) Health & Educational
Facilities Authority (Southwest Health
Center); Series 2004 A, RB 6.13% 04/01/24 260 207,449
- ------------------------------------------------------------------------------------------------------
Wisconsin (State of) Health & Educational
Facilities Authority (Tomah Memorial
Hospital, Inc.);
Series 2003, RB 6.00% 07/01/15 100 92,118
- ------------------------------------------------------------------------------------------------------
Series 2003, RB 6.13% 07/01/16 150 131,984
- ------------------------------------------------------------------------------------------------------
Series 2003, RB 6.63% 07/01/28 750 572,445
- ------------------------------------------------------------------------------------------------------
Wisconsin (State of) Health & Educational
Facilities Authority (Wisconsin Illinois
Senior Housing, Inc.);
Series 2006, Ref. RB 5.50% 08/01/16 2,020 1,644,664
- ------------------------------------------------------------------------------------------------------
Series 2006, Ref. RB 5.80% 08/01/29 2,400 1,585,344
======================================================================================================
12,460,581
======================================================================================================
WYOMING-0.08%
Teton (County of) Hospital District (St. John's
Medical Center); Series 2002, RB 6.75% 12/01/22 500 408,555
======================================================================================================
TOTAL INVESTMENTS(h)-97.84% (Cost $631,366,527) 476,483,833
======================================================================================================
OTHER ASSETS LESS LIABILITIES-2.16% 10,515,578
======================================================================================================
NET ASSETS-100.00% $486,999,411
______________________________________________________________________________________________________
======================================================================================================
</Table>
Investment Abbreviations:
<Table>
CEP - Credit Enhancement Provider
GO - General Obligation Bonds
IDR - Industrial Development Revenue Bonds
INS - Insurer
MFH - Multi-Family Housing
PCR - Pollution Control Revenue Bonds
RB - Revenue Bonds
Ref - Refunding
Sr. - Senior
VRD - Variable Rate Demand
</Table>
Notes to Schedule of Investments:
(a) Security purchased or received in a transaction exempt from registration
under the Securities Act of 1933, as amended. The security may be resold
pursuant to an exemption from registration under the 1933 Act, typically
to qualified institutional buyers. The aggregate value of these securities
at March 31, 2009 was $18,547,792, which represented 3.81% of the Fund's
Net Assets.
(b) Advance refunded; secured by an escrow fund of U.S. Government obligations
or other highly rated collateral.
(c) Security has an irrevocable call by the issuer or mandatory put by the
holder. Maturity date reflects such call or put.
(d) Principal and/or interest payments are secured by the bond insurance
company listed.
(e) Security subject to the alternative minimum tax.
(f) Demand security payable upon demand by the Fund at specified time
intervals no greater than thirteen months. Interest rate is redetermined
periodically. Rate shown is the rate in effect on March 31, 2009.
(g) Security is considered a cash equivalent.
(h) Entities may either issue, guarantee, back or otherwise enhance the credit
quality of a security. The entities are not primarily responsible for the
issuer's obligation but may be called upon to satisfy issuers obligations.
No concentration of any single entity was greater than 5%.
See accompanying Notes to Financial Statements which are an integral part of the
financial statements.
27 AIM HIGH INCOME MUNICIPAL FUND
STATEMENT OF ASSETS AND LIABILITIES
March 31, 2009
<Table>
ASSETS:
Investments, at value (Cost $631,366,527) $ 476,483,833
- ---------------------------------------------------------------------------------
Cash 69,972
- ---------------------------------------------------------------------------------
Receivables for:
Investments sold 405,000
- ---------------------------------------------------------------------------------
Fund shares sold 1,973,546
- ---------------------------------------------------------------------------------
Interest 11,538,337
- ---------------------------------------------------------------------------------
Fund expenses absorbed 7,872
- ---------------------------------------------------------------------------------
Investment for trustee deferred compensation and retirement plans 18,845
- ---------------------------------------------------------------------------------
Other assets 37,658
=================================================================================
Total assets 490,535,063
_________________________________________________________________________________
=================================================================================
LIABILITIES:
Payables for:
Investments purchased 1,500,250
- ---------------------------------------------------------------------------------
Fund shares reacquired 733,183
- ---------------------------------------------------------------------------------
Dividends 964,474
- ---------------------------------------------------------------------------------
Accrued fees to affiliates 220,045
- ---------------------------------------------------------------------------------
Accrued other operating expenses 64,877
- ---------------------------------------------------------------------------------
Trustee deferred compensation and retirement plans 52,823
=================================================================================
Total liabilities 3,535,652
=================================================================================
Net assets applicable to shares outstanding $ 486,999,411
_________________________________________________________________________________
=================================================================================
NET ASSETS CONSIST OF:
Shares of beneficial interest $ 688,958,742
- ---------------------------------------------------------------------------------
Undistributed net investment income 1,394,612
- ---------------------------------------------------------------------------------
Undistributed net realized gain (loss) (48,471,249)
- ---------------------------------------------------------------------------------
Unrealized appreciation (depreciation) (154,882,694)
=================================================================================
$ 486,999,411
_________________________________________________________________________________
=================================================================================
NET ASSETS:
Class A $ 312,443,748
_________________________________________________________________________________
=================================================================================
Class B $ 17,894,207
_________________________________________________________________________________
=================================================================================
Class C $ 91,821,246
_________________________________________________________________________________
=================================================================================
Class Y $ 14,032,794
_________________________________________________________________________________
=================================================================================
Institutional Class $ 50,807,416
_________________________________________________________________________________
=================================================================================
SHARES OUTSTANDING, $0.001 PAR VALUE PER SHARE, UNLIMITED NUMBER OF SHARES
AUTHORIZED:
Class A 48,356,905
_________________________________________________________________________________
=================================================================================
Class B 2,765,413
_________________________________________________________________________________
=================================================================================
Class C 14,200,352
_________________________________________________________________________________
=================================================================================
Class Y 2,170,198
_________________________________________________________________________________
=================================================================================
Institutional Class 7,862,284
_________________________________________________________________________________
=================================================================================
Class A:
Net asset value per share $ 6.46
- ---------------------------------------------------------------------------------
Maximum offering price per share
(Net asset value of $6.46 divided by 95.25%) $ 6.78
_________________________________________________________________________________
=================================================================================
Class B:
Net asset value and offering price per share $ 6.47
_________________________________________________________________________________
=================================================================================
Class C:
Net asset value and offering price per share $ 6.47
_________________________________________________________________________________
=================================================================================
Class Y:
Net asset value and offering price per share $ 6.47
_________________________________________________________________________________
=================================================================================
Institutional Class:
Net asset value and offering price per share $ 6.46
_________________________________________________________________________________
=================================================================================
</Table>
See accompanying Notes to Financial Statements which are an integral part of the
financial statements.
28 AIM HIGH INCOME MUNICIPAL FUND
STATEMENT OF OPERATIONS
For the year ended March 31, 2009
<Table>
INVESTMENT INCOME:
Interest $ 39,302,577
================================================================================================
EXPENSES:
Advisory fees 3,418,808
- ------------------------------------------------------------------------------------------------
Administrative services fees 167,363
- ------------------------------------------------------------------------------------------------
Custodian fees 31,268
- ------------------------------------------------------------------------------------------------
Distribution fees:
Class A 917,415
- ------------------------------------------------------------------------------------------------
Class B 229,708
- ------------------------------------------------------------------------------------------------
Class C 1,005,443
- ------------------------------------------------------------------------------------------------
Transfer agent fees -- A, B, C and Y 252,274
- ------------------------------------------------------------------------------------------------
Transfer agent fees -- Institutional 57,733
- ------------------------------------------------------------------------------------------------
Trustees' and officers' fees and benefits 34,165
- ------------------------------------------------------------------------------------------------
Other 322,375
================================================================================================
Total expenses 6,436,552
================================================================================================
Less: Fees waived, expenses reimbursed and expense offset arrangement(s) (1,405,309)
================================================================================================
Net expenses 5,031,243
================================================================================================
Net investment income 34,271,334
================================================================================================
REALIZED AND UNREALIZED GAIN (LOSS) FROM:
Net realized gain (loss) from investment securities (26,973,935)
- ------------------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) of investment securities (119,029,870)
- ------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) (146,003,805)
================================================================================================
Net increase (decrease) in net assets resulting from operations $(111,732,471)
________________________________________________________________________________________________
================================================================================================
</Table>
See accompanying Notes to Financial Statements which are an integral part of the
financial statements.
29 AIM HIGH INCOME MUNICIPAL FUND
STATEMENT OF CHANGES IN NET ASSETS
For the years ended March 31, 2009 and 2008
<Table>
<Caption>
2009 2008
- ---------------------------------------------------------------------------------------------------------
OPERATIONS:
Net investment income $ 34,271,334 $ 30,479,591
- ---------------------------------------------------------------------------------------------------------
Net realized gain (loss) (26,973,935) (12,431,457)
- ---------------------------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) (119,029,870) (56,771,345)
=========================================================================================================
Net increase (decrease) in net assets resulting from operations (111,732,471) (38,723,211)
=========================================================================================================
Distributions to shareholders from net investment income:
Class A (21,958,475) (20,468,035)
- ---------------------------------------------------------------------------------------------------------
Class B (1,195,315) (1,468,673)
- ---------------------------------------------------------------------------------------------------------
Class C (5,260,406) (4,337,144)
- ---------------------------------------------------------------------------------------------------------
Class Y (470,291) --
- ---------------------------------------------------------------------------------------------------------
Institutional Class (4,890,134) (3,745,754)
=========================================================================================================
Total distributions from net investment income (33,774,621) (30,019,606)
=========================================================================================================
Share transactions-net:
Class A 17,990,381 82,481,313
- ---------------------------------------------------------------------------------------------------------
Class B (4,140,540) (8,048,601)
- ---------------------------------------------------------------------------------------------------------
Class C 19,165,107 27,982,290
- ---------------------------------------------------------------------------------------------------------
Class Y 16,445,547 --
- ---------------------------------------------------------------------------------------------------------
Institutional Class (17,187,361) 46,690,073
=========================================================================================================
Net increase in net assets resulting from share transactions 32,273,134 149,105,075
=========================================================================================================
Net increase (decrease) in net assets (113,233,958) 80,362,258
=========================================================================================================
NET ASSETS:
Beginning of year 600,233,369 519,871,111
=========================================================================================================
End of year (includes undistributed net investment income of $1,394,612
and $897,899, respectively) $ 486,999,411 $600,233,369
_________________________________________________________________________________________________________
=========================================================================================================
</Table>
See accompanying Notes to Financial Statements which are an integral part of the
financial statements.
30 AIM HIGH INCOME MUNICIPAL FUND
NOTES TO FINANCIAL STATEMENTS
March 31, 2009
NOTE 1--SIGNIFICANT ACCOUNTING POLICIES
AIM High Income Municipal Fund (the "Fund") is a series portfolio of AIM Tax-
Exempt Funds (the "Trust"). The Trust is a Delaware statutory trust registered
under the Investment Company Act of 1940, as amended (the "1940 Act"), as an
open-end series management investment company consisting of three separate
portfolios, each authorized to issue an unlimited number of shares of beneficial
interest. The assets, liabilities and operations of each portfolio are accounted
for separately. Information presented in these financial statements pertains
only to the Fund. Matters affecting each portfolio or class will be voted on
exclusively by the shareholders of such portfolio or class.
The Fund's investment objective is to achieve a high a level of current income
that is exempt from federal income taxes.
The Fund currently consists of five different classes of shares: Class A,
Class B, Class C, Class Y and Institutional Class. Class A shares are sold with
a front-end sales charge unless certain waiver criteria are met and under
certain circumstances load waiver shares may be subject to contingent deferred
sales charges ("CDSC"). Class B shares and Class C shares are sold with a CDSC.
Class Y and Institutional Class shares are sold at net asset value. Generally,
Class B shares will automatically convert to Class A shares on or about the
month-end which is at least eight years after the date of purchase.
The Fund is offered on a limited basis to certain investors. The limited
offering is subject to the terms and conditions set forth in the prospectus, and
the Fund may cease the limited offering and/or resume sales to other new
investors on a future date if the advisor determines it is appropriate and the
Board of Trustees approves.
The following is a summary of the significant accounting policies followed by
the Fund in the preparation of its financial statements.
A. SECURITY VALUATIONS -- Securities, including restricted securities, are
valued according to the following policy.
Securities are fair valued using an evaluated quote provided by an
independent pricing service approved by the Board of Trustees. Evaluated
quotes provided by the pricing service may be determined without exclusive
reliance on quoted prices and may reflect appropriate factors such as
institution-size trading in similar groups of securities, yield, quality,
coupon rate, maturity, type of issue, individual trading characteristics
and other market data. Short-term obligations, including commercial paper,
having 60 days or less to maturity are recorded at amortized cost which
approximates value. Securities with a demand feature exercisable within
one to seven days are valued at par. Debt securities are subject to
interest rate and credit risks. In addition, all debt securities involve
some risk of default with respect to interest and principal payments.
Securities for which market quotations either are not readily available
or are unreliable are valued at fair value as determined in good faith by
or under the supervision of the Trust's officers following procedures
approved by the Board of Trustees. Some of the factors which may be
considered in determining fair value are fundamental analytical data
relating to the investment; the nature and duration of any restrictions on
transferability or disposition; trading in similar securities by the same
issuer or comparable companies; relevant political, economic or issuer
specific news; and other relevant factors under the circumstances.
Valuations change in response to many factors including the historical
and prospective earnings of the issuer, the value of the issuer's assets,
general economic conditions, interest rates, investor perceptions and
market liquidity. Because of the inherent uncertainties of valuation, the
values reflected in the financial statements may materially differ from
the value received upon actual sale of those investments.
B. SECURITIES TRANSACTIONS AND INVESTMENT INCOME -- Securities transactions
are accounted for on a trade date basis. Realized gains or losses on sales
are computed on the basis of specific identification of the securities
sold. Interest income is recorded on the accrual basis from settlement
date. Dividend income is recorded on the ex-dividend date. Bond premiums
and discounts are amortized and/or accreted for financial reporting
purposes.
The Fund may periodically participate in litigation related to Fund
investments. As such, the Fund may receive proceeds from litigation
settlements. Any proceeds received are included in the Statement of
Operations as realized gain/loss for investments no longer held and as
unrealized gain/loss for investments still held.
Brokerage commissions and mark ups are considered transaction costs and
are recorded as an increase to the cost basis of securities purchased
and/or a reduction of proceeds on a sale of securities. Such transaction
costs are included in the determination of realized and unrealized gain
(loss) from investment securities reported in the Statement of Operations
and the Statement of Changes in Net Assets and the realized and unrealized
net gains (losses) on securities per share in the Financial Highlights.
Transaction costs are included in the calculation of the Fund's net asset
value and, accordingly, they reduce the Fund's total returns. These
transaction costs are not considered operating expenses and are not
reflected in net investment income reported in the Statement of Operations
and Statement of Changes in Net Assets, or the net investment income per
share and ratios of expenses and net investment income reported in the
Financial Highlights, nor are they limited by any expense limitation
arrangements between the Fund and the advisor.
The Fund allocates realized and unrealized capital gains and losses to a
class based on the relative net assets of each class. The Fund allocates
income to a class based on the relative value of the settled shares of
each class.
C. COUNTRY DETERMINATION -- For the purposes of making investment selection
decisions and presentation in the Schedule of Investments, the investment
advisor may determine the country in which an issuer is located and/or
credit risk exposure based on various factors. These factors include the
laws of the country under which the issuer is organized, where the issuer
maintains a principal office, the country in which the issuer derives 50%
or more of its total revenues and the country that has the primary market
for the issuer's securities, as well as other criteria. Among the other
criteria that may be evaluated for making this determination are the
country in which the issuer maintains 50% or more of its assets, the type
of security, financial guarantees and enhancements, the nature of the
collateral and the sponsor organization. Country of issuer and/or credit
risk exposure has been determined to be the United States of America,
unless otherwise noted.
D. DISTRIBUTIONS -- Distributions from income are declared daily and paid
monthly. Distributions from net realized capital gain, if any, are
generally paid annually and recorded on ex-dividend date. The Fund may
elect to treat a portion of the proceeds from redemptions as distributions
for federal income tax purposes.
31 AIM HIGH INCOME MUNICIPAL FUND
E. FEDERAL INCOME TAXES -- The Fund intends to comply with the requirements
of Subchapter M of the Internal Revenue Code necessary to qualify as a
regulated investment company and to distribute substantially all of the
Fund's taxable and tax-exempt earnings to shareholders. As such, the Fund
will not be subject to federal income taxes on otherwise taxable income
(including net realized capital gain) that is distributed to shareholders.
Therefore, no provision for federal income taxes is recorded in the
financial statements.
In addition, the Fund intends to invest in such municipal securities to
allow it to qualify to pay shareholders "exempt-interest dividends", as
defined in the Internal Revenue Code.
The Fund files tax returns in the U.S. Federal jurisdiction and certain
other jurisdictions. Generally the Fund is subject to examinations by such
taxing authorities for up to three years after the filing of the return
for the tax period.
F. EXPENSES -- Fees provided for under the Rule 12b-1 plan of a particular
class of the Fund are charged to the operations of such class. Transfer
agency fees and expenses and other shareholder recordkeeping fees and
expenses attributable to the Institutional Class are charged to such
class. Transfer agency fees and expenses and other shareholder
recordkeeping fees and expenses relating to all other classes are
allocated among those classes based on relative net assets. All other
expenses are allocated among the classes based on relative net assets.
G. ACCOUNTING ESTIMATES -- The preparation of financial statements in
conformity with accounting principles generally accepted in the United
States of America requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities at the date of
the financial statements and the reported amounts of revenues and expenses
during the reporting period including estimates and assumptions related to
taxation. Actual results could differ from those estimates by a
significant amount.
H. INDEMNIFICATIONS -- Under the Trust's organizational documents, each
Trustee, officer, employee or other agent of the Trust is indemnified
against certain liabilities that may arise out of performance of their
duties to the Fund. Additionally, in the normal course of business, the
Fund enters into contracts, including the Fund's servicing agreements,
that contain a variety of indemnification clauses. The Fund's maximum
exposure under these arrangements is unknown as this would involve future
claims that may be made against the Fund that have not yet occurred. The
risk of material loss as a result of such indemnification claims is
considered remote.
I. OTHER RISKS -- The Fund normally invests at least 80% of its net assets in
lower-quality debt securities, i.e., "junk bonds". Investments in lower-
rated securities or unrated securities of comparable quality tend to be
more sensitive to economic conditions than higher rated securities. Junk
bonds involve a greater risk of default by the issuer because such
securities are generally unsecured and are often subordinated to other
creditors' claims.
The value of, payment of interest on, repayment of principal for and the
ability of the Fund to sell a municipal security may be affected by
constitutional amendments, legislative enactments, executive orders,
administrative regulations, voter initiatives and the economics of the
regions in which the issuers in which the Fund invests are located.
Many municipal securities are issued to finance similar projects,
especially those relating to education, health care, transportation and
utilities, conditions in those sectors can affect the overall municipal
securities market and the Fund.
There is some risk that a portion or all of the interest received from
certain tax-free municipal securities could become taxable as a result of
determinations by the Internal Revenue Service.
NOTE 2--ADVISORY FEES AND OTHER FEES PAID TO AFFILIATES
The Trust has entered into a master investment advisory agreement with Invesco
Aim Advisors, Inc. (the "Advisor" or "Invesco Aim"). Under the terms of the
investment advisory agreement, the Fund pays an advisory fee to the Advisor
based on the annual rate of the Fund's average daily net assets as follows:
<Table>
<Caption>
AVERAGE NET ASSETS RATE
- -------------------------------------------------------------------
First $500 million 0.60%
- -------------------------------------------------------------------
Over $500 million up to and including $1 billion 0.55%
- -------------------------------------------------------------------
Over $1 billion up to and including $1.5 billion 0.50%
- -------------------------------------------------------------------
Over $1.5 billion 0.45%
___________________________________________________________________
===================================================================
</Table>
Under the terms of a master sub-advisory agreement the Advisor and each of
Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited,
Invesco Asset Management (Japan) Limited, Invesco Australia Limited, Invesco
Global Asset Management (N.A.), Inc., Invesco Hong Kong Limited, Invesco
Institutional (N.A.), Inc., Invesco Senior Secured Management, Inc. and Invesco
Trimark Ltd. (collectively, the "Affiliated Sub-Advisors") the Advisor, not the
Fund, may pay 40% of the fees paid to the Advisor to any such Affiliated Sub-
Advisor(s) that provide discretionary investment management services to the Fund
based on the percentage of assets allocated to such Sub-Advisor(s).
Effective March 4, 2009, the Advisor has voluntarily agreed to waive advisory
fees and/or reimburse expenses to the extent necessary to limit total annual
operating expenses (excluding certain items discussed below) of Class A, Class
B, Class C, Class Y and Institutional Class shares to 0.80%, 1.55%, 1.55%, 0.55%
and 0.55% of average daily net assets, respectively. In determining the
Advisor's obligation to waive advisory fees and/or reimburse expenses, the
following expenses are not taken into account, and could cause the net annual
operating expenses to exceed the numbers reflected above: (i) interest; (ii)
taxes; (iii) dividend expense on short sales; (iv) extraordinary items; (v)
expenses related to a merger or reorganization, as approved by the Fund's Board
of Trustees; and (vi) expenses that the Fund has incurred but did not actually
pay because of an expense offset arrangement. Currently, in addition to the
expense reimbursement arrangement with Invesco Ltd. ("Invesco") described more
fully below, the expense offset arrangements from which the Fund may benefit are
in the form of credits that the Fund receives from banks where the Fund or its
transfer agent has deposit accounts in which it holds uninvested cash. These
credits are used to pay certain expenses incurred by the Fund. Voluntary fee
waivers or reimbursements may be modified or discontinued at any time upon
consultation with the Board of Trustees without further notice to investors.
For the year ended March 31, 2009, the Advisor waived advisory fees $1,094,764
and reimbursed class level expenses of $184,023, $11,519, $50,420, $4,281 and
$57,733 of Class A, Class B, Class C, Class Y and Institutional Class shares,
respectively.
32 AIM HIGH INCOME MUNICIPAL FUND
At the request of the Trustees of the Trust, Invesco agreed to reimburse
expenses incurred by the Fund in connection with market timing matters in the
AIM Funds, which may include legal, audit, shareholder reporting, communications
and trustee expenses. These expenses along with the related expense
reimbursement are included in the Statement of Operations. For the year ended
March 31, 2009, Invesco reimbursed expenses of the Fund in the amount of $538.
The Trust has entered into a master administrative services agreement with
Invesco Aim pursuant to which the Fund has agreed to pay Invesco Aim for certain
administrative costs incurred in providing accounting services to the Fund. For
the year ended March 31, 2009, expenses incurred under the agreement are shown
in the Statement of Operations as administrative services fees.
The Trust has entered into a transfer agency and service agreement with
Invesco Aim Investment Services, Inc. ("IAIS") pursuant to which the Fund has
agreed to pay IAIS a fee for providing transfer agency and shareholder services
to the Fund and reimburse IAIS for certain expenses incurred by IAIS in the
course of providing such services. IAIS may make payments to intermediaries that
provide omnibus account services, sub-accounting services and/or networking
services. All fees payable by IAIS to intermediaries that provide omnibus
account services or sub-accounting are charged back to the Fund, subject to
certain limitations approved by the Trust's Board of Trustees. For the year
ended March 31, 2009, expenses incurred under the agreement are shown in the
Statement of Operations as transfer agent fees.
The Trust has entered into master distribution agreements with Invesco Aim
Distributors, Inc. ("IADI") to serve as the distributor for the Class A, Class
B, Class C, Class Y and Institutional Class shares of the Fund. The Trust has
adopted plans pursuant to Rule 12b-1 under the 1940 Act with respect to the
Fund's Class A, Class B and Class C shares (collectively the "Plans"). The Fund,
pursuant to the Plans, pays IADI compensation at the annual rate of 0.25% of the
Fund's average daily net assets of Class A shares and 1.00% of the average daily
net assets of Class B and Class C shares. Of the Plan payments, up to 0.25% of
the average daily net assets of each class of shares may be paid to furnish
continuing personal shareholder services to customers who purchase and own
shares of such classes. Any amounts not paid as a service fee under the Plans
would constitute an asset-based sales charge. Rules of the Financial Industry
Regulatory Authority ("FINRA") impose a cap on the total sales charges,
including asset-based sales charges that may be paid by any class of shares of
the Fund. For the year ended March 31, 2009, expenses incurred under the Plans
are shown in the Statement of Operations as distribution fees.
Front-end sales commissions and CDSC (collectively the "sales charges") are
not recorded as expenses of the Fund. Front-end sales commissions are deducted
from proceeds from the sales of Fund shares prior to investment in Class A
shares of the Fund. CDSC are deducted from redemption proceeds prior to
remittance to the shareholder. During the year ended March 31, 2009, IADI
advised the Fund that IADI retained $163,740 in front-end sales commissions from
the sale of Class A shares and $48,865, $50,080 and $28,674 from Class A, Class
B and Class C shares, respectively, for CDSC imposed on redemptions by
shareholders.
Certain officers and trustees of the Trust are officers and directors of
Invesco Aim, IAIS and/or IADI.
NOTE 3--SUPPLEMENTAL INFORMATION
The Fund adopted the provisions of Statement of Financial Accounting Standards
No. 157, "Fair Value Measurements" (SFAS 157), effective with the beginning of
the Fund's fiscal year. SFAS 157 defines fair value as the price that would be
received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date. SFAS 157
establishes a hierarchy that prioritizes the inputs to valuation methods giving
the highest priority to readily available unadjusted quoted prices in an active
market for identical assets (Level 1) and the lowest priority to significant
unobservable inputs (Level 3) generally when market prices are not readily
available or are unreliable. Based on the valuation inputs the securities or
other investments are tiered into one of three levels. Changes in valuation
methods may result in transfers in or out of an investment's assigned level:
Level 1 -- Prices are determined using quoted prices in an active market for
identical assets.
Level 2 -- Prices are determined using other significant observable inputs.
Observable inputs are inputs that other market participants may use in pricing
a security. These may include quoted prices for similar securities, interest
rates, prepayment speeds, credit risk and others.
Level 3 -- Prices are determined using significant unobservable inputs. In
situations where quoted prices or observable inputs are unavailable (for
example, when there is little or no market activity for an investment at the
end of the period), unobservable inputs may be used. Unobservable inputs
reflect the Fund's own assumptions about the factors market participants would
use in determining fair value of the securities or instruments and would be
based on the best available information.
Below is a summary of the tiered valuation input levels, as of the end of the
reporting period, March 31, 2009. The level assigned to the securities
valuations may not be an indication of the risk or liquidity associated with
investing in those securities. Because of the inherent uncertainties of
valuation, the values reflected in the financial statements may materially
differ from the value received upon actual sale of those investments.
<Table>
<Caption>
INVESTMENTS IN
INPUT LEVEL SECURITIES
- ------------------------------------------
Level 1 $ --
- ------------------------------------------
Level 2 476,483,833
- ------------------------------------------
Level 3 --
==========================================
$476,483,833
__________________________________________
==========================================
</Table>
33 AIM HIGH INCOME MUNICIPAL FUND
NOTE 4--SECURITY TRANSACTIONS WITH AFFILIATED FUNDS
The Fund is permitted to purchase or sell securities from or to certain other
AIM Funds under specified conditions outlined in procedures adopted by the Board
of Trustees of the Trust. The procedures have been designed to ensure that any
purchase or sale of securities by the Fund from or to another fund or portfolio
that is or could be considered an affiliate by virtue of having a common
investment advisor (or affiliated investment advisors), common Trustees and/or
common officers complies with Rule 17a-7 of the 1940 Act. Further, as defined
under the procedures, each transaction is effected at the current market price.
Pursuant to these procedures, for the year ended March 31, 2009, the Fund
engaged in securities purchases of $30,747,915 and securities sales of
$29,860,388.
NOTE 5--EXPENSE OFFSET ARRANGEMENT
The expense offset arrangement is comprised of transfer agency credits which
result from balances in Demand Deposit Accounts (DDA) used by the transfer agent
for clearing shareholder transactions. For the year ended March 31, 2009, the
Fund received credits from this arrangement, which resulted in the reduction of
the Fund's total expenses of $2,031.
NOTE 6--TRUSTEES' AND OFFICERS' FEES AND BENEFITS
"Trustees' and Officers' Fees and Benefits" include amounts accrued by the Fund
to pay remuneration to certain Trustees and Officers of the Fund. Trustees have
the option to defer compensation payable by the Fund, and "Trustees' and
Officers' Fees and Benefits" also include amounts accrued by the Fund to fund
such deferred compensation amounts. Those Trustees who defer compensation have
the option to select various AIM Funds in which their deferral accounts shall be
deemed to be invested. Finally, certain current Trustees are eligible to
participate in a retirement plan that provides for benefits to be paid upon
retirement to Trustees over a period of time based on the number of years of
service. The Fund may have certain former Trustees who also participate in a
retirement plan and receive benefits under such plan. "Trustees' and Officers'
Fees and Benefits" include amounts accrued by the Fund to fund such retirement
benefits. Obligations under the deferred compensation and retirement plans
represent unsecured claims against the general assets of the Fund.
During the year ended March 31, 2009, the Fund paid legal fees of $6,013 for
services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the
Independent Trustees. A member of that firm is a Trustee of the Trust.
NOTE 7--CASH BALANCES
The Fund may borrow for leveraging in an amount up to 5% of the Fund's total
assets (excluding the amount borrowed) at the time the borrowing is made. In
doing so, the Fund is permitted to temporarily carry a negative or overdrawn
balance in its account with The Bank of New York Mellon, the custodian bank. To
compensate the custodian bank for such overdrafts, the overdrawn Fund may either
(i) leave funds as a compensating balance in the account so the custodian bank
can be compensated by earning the additional interest; or (ii) compensate by
paying the custodian bank at a rate agreed upon by the custodian bank and
Invesco Aim, not to exceed the contractually agreed upon rate. A Fund may not
purchase additional securities when any borrowings from banks exceeds 5% of the
Fund's total assets.
NOTE 8--DISTRIBUTIONS TO SHAREHOLDERS AND TAX COMPONENTS OF NET ASSETS
TAX CHARACTER OF DISTRIBUTIONS TO SHAREHOLDERS PAID DURING THE YEARS ENDED MARCH
31, 2009 AND 2008:
<Table>
<Caption>
2009 2008
- --------------------------------------------------------------------------------------------------------
Ordinary income $ 4,489 $ 1,678
- --------------------------------------------------------------------------------------------------------
Ordinary income-tax exempt 33,770,132 30,017,928
========================================================================================================
Total distributions $33,774,621 $30,019,606
________________________________________________________________________________________________________
========================================================================================================
</Table>
TAX COMPONENTS OF NET ASSETS AT PERIOD-END:
<Table>
<Caption>
2009
- ------------------------------------------------------------------------------------------------
Undistributed ordinary income $ 1,447,428
- ------------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) -- investments (154,872,069)
- ------------------------------------------------------------------------------------------------
Temporary book/tax differences (63,441)
- ------------------------------------------------------------------------------------------------
Capital loss carryforward (28,112,234)
- ------------------------------------------------------------------------------------------------
Post-October deferrals (20,359,015)
- ------------------------------------------------------------------------------------------------
Shares of beneficial interest 688,958,742
================================================================================================
Total net assets $ 486,999,411
________________________________________________________________________________________________
================================================================================================
</Table>
The difference between book-basis and tax-basis unrealized appreciation
(depreciation) is due to differences in the timing of recognition of gains and
losses on investments for tax and book purposes. The Fund's net unrealized
appreciation (depreciation) difference is attributable primarily to the
treatment of bond premiums.
34 AIM HIGH INCOME MUNICIPAL FUND
The temporary book/tax differences are a result of timing differences between
book and tax recognition of income and/or expenses. The Fund's temporary
book/tax differences are the result of the trustee deferral of compensation and
retirement plan benefits.
Capital loss carryforward is calculated and reported as of a specific date.
Results of transactions and other activity after that date may affect the amount
of capital loss carryforward actually available for the Fund to utilize. The
ability to utilize capital loss carryforward in the future may be limited under
the Internal Revenue Code and related regulations based on the results of future
transactions.
The Fund has a capital loss carryforward as of March 31, 2009 which expires as
follows:
<Table>
<Caption>
CAPITAL LOSS
EXPIRATION CARRYFORWARD*
- -----------------------------------------------------------------------------------------------
March 31, 2010 $ 3,255,459
- -----------------------------------------------------------------------------------------------
March 31, 2011 972,821
- -----------------------------------------------------------------------------------------------
March 31, 2012 1,072,111
- -----------------------------------------------------------------------------------------------
March 31, 2013 2,599,981
- -----------------------------------------------------------------------------------------------
March 31, 2014 376,854
- -----------------------------------------------------------------------------------------------
March 31, 2015 622,423
- -----------------------------------------------------------------------------------------------
March 31, 2016 4,837,280
- -----------------------------------------------------------------------------------------------
March 31, 2017 14,375,305
===============================================================================================
Total capital loss carryforward $28,112,234
_______________________________________________________________________________________________
===============================================================================================
</Table>
* Capital loss carryforward as of the date listed above is reduced for
limitations, if any, to the extent required by the Internal Revenue Code.
NOTE 9--INVESTMENT SECURITIES
The aggregate amount of investment securities (other than short-term securities,
U.S. Treasury obligations and money market funds, if any) purchased and sold by
the Fund during the year ended March 31, 2009 was $163,377,666 and $123,055,965,
respectively. Cost of investments on a tax basis includes the adjustments for
financial reporting purposes as of the most recently completed Federal income
tax reporting period-end.
<Table>
<Caption>
UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENT SECURITIES ON A TAX BASIS
- ------------------------------------------------------------------------------------------------
Aggregate unrealized appreciation of investment securities $ 4,473,396
- ------------------------------------------------------------------------------------------------
Aggregate unrealized (depreciation) of investment securities (159,345,465)
================================================================================================
Net unrealized appreciation (depreciation) of investment securities $(154,872,069)
________________________________________________________________________________________________
================================================================================================
Cost of investments for tax purposes is $631,355,902.
</Table>
NOTE 10--RECLASSIFICATION OF PERMANENT DIFFERENCES
Primarily as a result of differing book/tax treatment of expired capital loss
carryforward, on March 31, 2009, undistributed net realized gain (loss) was
increased by $3,558,415 and shares of beneficial interest decreased by
$3,558,415. This reclassification had no effect on the net assets of the Fund.
35 AIM HIGH INCOME MUNICIPAL FUND
NOTE 11--SHARE INFORMATION
<Table>
<Caption>
SUMMARY OF SHARE ACTIVITY
- --------------------------------------------------------------------------------------------------------------------------
YEAR ENDED MARCH 31,
---------------------------------------------------------------
2009(a) 2008
----------------------------- -----------------------------
SHARES AMOUNT SHARES AMOUNT
- --------------------------------------------------------------------------------------------------------------------------
Sold:
Class A 21,013,893 $ 154,988,660 29,106,407 $ 258,022,679
- --------------------------------------------------------------------------------------------------------------------------
Class B 511,324 3,827,007 516,909 4,619,453
- --------------------------------------------------------------------------------------------------------------------------
Class C 6,263,920 47,413,934 6,121,408 54,574,112
- --------------------------------------------------------------------------------------------------------------------------
Class Y(b) 2,270,249 17,140,130 -- --
- --------------------------------------------------------------------------------------------------------------------------
Institutional Class 2,581,337 19,166,377 5,635,118 49,107,973
==========================================================================================================================
Issued as reinvestment of dividends:
Class A 1,842,877 13,353,674 1,360,638 11,814,457
- --------------------------------------------------------------------------------------------------------------------------
Class B 75,025 539,333 70,867 617,692
- --------------------------------------------------------------------------------------------------------------------------
Class C 487,859 3,498,074 320,290 2,780,041
- --------------------------------------------------------------------------------------------------------------------------
Class Y 47,741 308,996 -- --
- --------------------------------------------------------------------------------------------------------------------------
Institutional Class 478,320 3,444,464 286,723 2,477,814
==========================================================================================================================
Automatic conversion of Class B shares to Class A
shares:
Class A 441,071 3,200,774 409,635 3,576,397
- --------------------------------------------------------------------------------------------------------------------------
Class B (440,494) (3,200,774) (409,247) (3,576,397)
==========================================================================================================================
Reacquired:
Class A(b) (21,943,013) (153,552,727) (21,964,011) (190,932,220)
- --------------------------------------------------------------------------------------------------------------------------
Class B (712,799) (5,306,106) (1,110,227) (9,709,349)
- --------------------------------------------------------------------------------------------------------------------------
Class C (4,425,111) (31,746,901) (3,382,887) (29,371,863)
- --------------------------------------------------------------------------------------------------------------------------
Class Y (147,792) (1,003,579) -- --
- --------------------------------------------------------------------------------------------------------------------------
Institutional Class (6,179,096) (39,798,202) (563,768) (4,895,714)
==========================================================================================================================
Net increase in share activity 2,165,311 $ 32,273,134 16,397,855 $ 149,105,075
__________________________________________________________________________________________________________________________
==========================================================================================================================
</Table>
(a) There are entities that are record owners of more than 5% of the
outstanding shares of the Fund and in the aggregate own 39% of the
outstanding shares of the Fund. IADI has an agreement with these entities
to sell Fund shares. The Fund, Invesco Aim and/or Invesco Aim affiliates
may make payments to these entities, which are considered to be related to
the Fund, for providing services to the Fund, Invesco Aim and/or Invesco
Aim affiliates including but not limited to services such as securities
brokerage, distribution, third party record keeping and account servicing.
The Trust has no knowledge as to whether all or any portion of the shares
owned of record by these entities are also owned beneficially.
(b) Effective upon the commencement date of Class Y shares, October 3, 2008,
the following shares were converted from Class A shares into Class Y shares
of the Fund:
<Table>
<Caption>
CLASS SHARES AMOUNT
------------------------------------------------------------------------------------------------------
Class Y 2,038,098 $ 15,550,688
------------------------------------------------------------------------------------------------------
Class A (2,038,098) (15,550,688)
______________________________________________________________________________________________________
======================================================================================================
</Table>
36 AIM HIGH INCOME MUNICIPAL FUND
NOTE 12--FINANCIAL HIGHLIGHTS
The following schedule presents financial highlights for a share of the Fund
outstanding throughout the periods indicated.
<Table>
<Caption>
NET GAINS
(LOSSES)
NET ASSET ON SECURITIES DIVIDENDS
VALUE, NET (BOTH TOTAL FROM FROM NET NET ASSET NET ASSETS,
BEGINNING INVESTMENT REALIZED AND INVESTMENT INVESTMENT VALUE, END TOTAL END OF PERIOD
OF PERIOD INCOME UNREALIZED) OPERATIONS INCOME OF PERIOD RETURN(a) (000S OMITTED)
- ------------------------------------------------------------------------------------------------------------------------------
CLASS A
Year ended 03/31/09 $8.20 $0.45(c) $(1.74) $(1.29) $(0.45) $6.46 (16.21)% $312,444
Year ended 03/31/08 9.15 0.45 (0.96) (0.51) (0.44) 8.20 (5.70) 385,396
Year ended 03/31/07 8.97 0.45 0.17 0.62 (0.44) 9.15 7.11 348,602
Year ended 03/31/06 8.76 0.47 0.21 0.68 (0.47) 8.97 7.92 247,296
Year ended 03/31/05 8.73 0.51 0.04 0.55 (0.52) 8.76 6.51 132,996
- ------------------------------------------------------------------------------------------------------------------------------
CLASS B
Year ended 03/31/09 8.21 0.40(c) (1.75) (1.35) (0.39) 6.47 (16.85) 17,894
Year ended 03/31/08 9.16 0.39 (0.96) (0.57) (0.38) 8.21 (6.39) 27,354
Year ended 03/31/07 8.98 0.38 0.18 0.56 (0.38) 9.16 6.31 39,066
Year ended 03/31/06 8.77 0.40 0.21 0.61 (0.40) 8.98 7.12 45,422
Year ended 03/31/05 8.74 0.44 0.05 0.49 (0.46) 8.77 5.73 46,429
- ------------------------------------------------------------------------------------------------------------------------------
CLASS C
Year ended 03/31/09 8.20 0.39(c) (1.73) (1.34) (0.39) 6.47 (16.75) 91,821
Year ended 03/31/08 9.16 0.38 (0.96) (0.58) (0.38) 8.20 (6.51) 97,388
Year ended 03/31/07 8.97 0.38 0.19 0.57 (0.38) 9.16 6.43 80,702
Year ended 03/31/06 8.77 0.40 0.20 0.60 (0.40) 8.97 7.01 56,763
Year ended 03/31/05 8.74 0.44 0.05 0.49 (0.46) 8.77 5.73 33,114
- ------------------------------------------------------------------------------------------------------------------------------
CLASS Y
Year ended 03/31/09(e) 7.63 0.20(c) (1.13) (0.93) (0.23) 6.47 (12.21) 14,033
- ------------------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL CLASS
Year ended 03/31/09 8.20 0.47(c) (1.75) (1.28) (0.46) 6.46 (15.99) 50,807
Year ended 03/31/08 9.16 0.47 (0.96) (0.49) (0.47) 8.20 (5.56) 90,096
Year ended 03/31/07(e) 8.98 0.32 0.17 0.49 (0.31) 9.16 5.53 51,501
______________________________________________________________________________________________________________________________
==============================================================================================================================
<Caption>
RATIO OF RATIO OF
EXPENSES EXPENSES
TO AVERAGE TO AVERAGE NET RATIO OF NET
NET ASSETS ASSETS WITHOUT INVESTMENT
WITH FEE WAIVERS FEE WAIVERS INCOME
AND/OR EXPENSES AND/OR EXPENSES TO AVERAGE PORTFOLIO
ABSORBED ABSORBED NET ASSETS TURNOVER(b)
- ---------------------------------------------------------------------------------------
CLASS A
Year ended 03/31/09 0.75%(d) 0.99%(d) 6.07%(d) 22%
Year ended 03/31/08 0.70 0.98 5.13 23
Year ended 03/31/07 0.65 1.01 4.99 10
Year ended 03/31/06 0.56 1.03 5.18 16
Year ended 03/31/05 0.55 1.08 5.83 12
- ---------------------------------------------------------------------------------------
CLASS B
Year ended 03/31/09 1.50(d) 1.74(d) 5.32(d) 22
Year ended 03/31/08 1.45 1.73 4.38 23
Year ended 03/31/07 1.40 1.76 4.24 10
Year ended 03/31/06 1.31 1.78 4.43 16
Year ended 03/31/05 1.30 1.83 5.08 12
- ---------------------------------------------------------------------------------------
CLASS C
Year ended 03/31/09 1.50(d) 1.74(d) 5.32(d) 22
Year ended 03/31/08 1.45 1.73 4.38 23
Year ended 03/31/07 1.40 1.76 4.24 10
Year ended 03/31/06 1.31 1.78 4.43 16
Year ended 03/31/05 1.30 1.83 5.08 12
- ---------------------------------------------------------------------------------------
CLASS Y
Year ended 03/31/09(e) 0.51(d)(f) 0.78(d)(f) 6.31(d)(f) 22
- ---------------------------------------------------------------------------------------
INSTITUTIONAL CLASS
Year ended 03/31/09 0.50(d) 0.76(d) 6.32(d) 22
Year ended 03/31/08 0.45 0.75 5.38 23
Year ended 03/31/07(e) 0.40(f) 0.77(f) 5.24(f) 10
_______________________________________________________________________________________
=======================================================================================
</Table>
(a) Includes adjustments in accordance with accounting principles generally
accepted in the United States of America and as such, the net asset value
for financial reporting purposes and the returns based upon those net asset
values may differ from the net asset value and returns for shareholder
transactions. Does not include sales charges and is not annualized for
periods less than one year, if applicable.
(b) Portfolio turnover is calculated at the fund level and is not annualized
for periods less than one year, if applicable.
(c) Calculated using average shares outstanding.
(d) Ratios are based on average daily net assets (000's omitted) of $366,966,
$22,971, $100,544, $13,819 and $78,965 for Class A, Class B, Class C, Class
Y and Institutional Class shares, respectively.
(e) Commencement date of October 3, 2008 and July 31, 2006 for Class Y and
Institutional Class shares, respectively.
(f) Annualized.
37 AIM HIGH INCOME MUNICIPAL FUND
NOTE 13--LEGAL PROCEEDINGS
Terms used in the Legal Proceedings Note are defined terms solely for the
purpose of this note.
SETTLED ENFORCEMENT ACTIONS AND INVESTIGATIONS RELATED TO MARKET TIMING
On May 23, 2008, the Securities and Exchange Commission ("SEC") publicly posted
its final approval of the Distribution Plans ("Distribution Plans") for the
distribution of monies placed into two separate Fair Funds created pursuant to a
settlement reached on October 8, 2004 between Invesco Funds Group, Inc. ("IFG"),
Invesco Aim Advisors, Inc. ("Invesco Aim") and Invesco Aim Distributors, Inc.
("IADI") and the SEC (the "Order"). One of the Fair Funds consists of $325
million, plus interest and any contributions by other settling parties, for
distribution to shareholders of certain mutual funds formerly advised by IFG who
may have been harmed by market timing and related activity. The second Fair Fund
consists of $50 million, plus interest and any contributions by other settling
parties, for distribution to shareholders of certain mutual funds advised by
Invesco Aim who may have been harmed by market timing and related activity. The
Distribution Plans provide for the distribution to all eligible investors to
compensate such investors for injury they may have suffered as a result of
market timing in the affected funds. The Distribution Plans include a provision
for any residual amounts in the Fair Funds to be distributed in the future to
the affected funds. Because the distribution of the Fair Funds has not yet
commenced, management of Invesco Aim and the Fund are unable to estimate the
amount of distribution to be made to the Fund, if any.
At the request of the trustees of the AIM Funds, Invesco Ltd. ("Invesco"), the
parent company of IFG and Invesco Aim, has agreed to reimburse expenses incurred
by the AIM Funds related to market timing matters.
PENDING LITIGATION AND REGULATORY INQUIRIES
Civil lawsuits, including purported class action and shareholder derivative
suits, have been filed against certain of the AIM Funds, IFG, Invesco Aim, IADI
and/or related entities and individuals alleging that the defendants permitted
improper market timing and related activity in the AIM Funds.
These lawsuits allege as theories of recovery, depending on the lawsuit,
violations of various provisions of the Federal and state securities laws and
the Employee Retirement Income Security Act of 1974, as amended ("ERISA"),
negligence, breach of fiduciary duty and/or breach of contract. These lawsuits
seek remedies that include, depending on the lawsuit, damages, restitution,
injunctive relief, imposition of a constructive trust, removal of certain
directors and/or employees, various corrective measures under ERISA, rescission
of certain AIM Funds' advisory agreements and/or distribution plans and recovery
of all fees paid.
All lawsuits based on allegations of market timing, late trading and related
issues were transferred to the United States District Court for the District of
Maryland (the "MDL Court"). Pursuant to an Order of the MDL Court, plaintiffs in
these lawsuits consolidated their claims for pre-trial purposes into three
amended complaints against various Invesco Aim- and IFG-related parties: (i) a
Consolidated Amended Class Action Complaint purportedly brought on behalf of
shareholders of the AIM Funds; (ii) a Consolidated Amended Fund Derivative
Complaint purportedly brought on behalf of the AIM Funds and fund registrants;
and (iii) an Amended Class Action Complaint for Violations of ERISA purportedly
brought on behalf of participants in the Invesco 401(k) plan. Based on orders
issued by the MDL Court, all claims asserted against the AIM Funds that have
been transferred to the MDL Court have been dismissed, although certain Funds
remain nominal defendants in the Consolidated Amended Fund Derivative Complaint.
On January 5, 2008, the parties reached an agreement in principle to settle both
the Consolidated Amended Class Action Complaint and Consolidated Amended Fund
Derivative Complaint, subject to the MDL Court approval. Individual class
members have the right to object. On December 15, 2008, the parties reached an
agreement in principle to settle the Amended Class Action Complaint for
Violations of ERISA, subject to the MDL Court approval. Individual class members
have the right to object. No payments are required under the settlement;
however, the parties agreed that certain limited changes to benefit plans and
participants' accounts would be made.
IFG, Invesco Aim, IADI and/or related entities and individuals have received
inquiries from numerous regulators in the form of subpoenas or other oral or
written requests for information and/or documents related to one or more of the
following issues, among others, some of which concern one or more AIM Funds:
market timing activity, late trading, fair value pricing, excessive or improper
advisory and/or distribution fees, mutual fund sales practices, including
revenue sharing and directed-brokerage arrangements, investments in securities
of other registered investment companies, contractual plans, issues related to
Section 529 college savings plans and procedures for locating lost security
holders. IFG, Invesco Aim and IADI have advised the Fund that they are providing
full cooperation with respect to these inquiries. Regulatory actions and/or
additional civil lawsuits related to these or other issues may be filed against
the AIM Funds, IFG, Invesco Aim, IADI and/or related entities and individuals in
the future.
Management of Invesco Aim and the Fund believe that the outcome of the Pending
Litigation and Regulatory Inquiries described above will have no material
adverse affect on the Fund or on the ability of Invesco Aim and IADI to provide
ongoing services to the Fund.
38 AIM HIGH INCOME MUNICIPAL FUND
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Trustees of AIM Tax-Exempt Funds
and Shareholders of AIM High Income Municipal Fund:
In our opinion, the accompanying statement of assets and liabilities, including
the schedule of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of AIM High Income Municipal Fund (one
of the funds constituting AIM Tax-Exempt Funds, hereafter referred to as the
"Fund") at March 31, 2009, the results of its operations 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 accounting principles generally accepted in the
United States of America. These financial statements and financial highlights
(hereafter referred to as "financial statements") are the responsibility of the
Fund's management. Our responsibility is to express an opinion on these
financial statements based on our audits. We conducted our audits of these
financial statements 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 are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation.
We believe that our audits, which included confirmation of securities at March
31, 2009, by correspondence with the custodian and brokers, provide a reasonable
basis for our opinion. The financial highlights for the period ended March 31,
2005 were audited by another independent registered public accounting firm whose
report, dated May 18, 2005 expressed an unqualified opinion on those financial
highlights.
PRICEWATERHOUSECOOPERS LLP
May 15, 2009
Houston, Texas
39 AIM HIGH INCOME MUNICIPAL FUND
CALCULATING YOUR ONGOING FUND EXPENSES
EXAMPLE
As a shareholder of the Fund, you incur two types of costs: (1) transaction
costs, which may include sales charges (loads) on purchase payments or
contingent deferred sales charges on redemptions, and redemption fees, if any;
and (2) ongoing costs, including management fees; distribution and/or service
(12b-1) fees; and other Fund expenses. This example is intended to help you
understand your ongoing costs (in dollars) of investing in the Fund and to
compare these costs with ongoing costs of investing in other mutual funds. With
the exception of the actual ending account value and expenses of the Class Y
shares, the example is based on an investment of $1,000 invested at the
beginning of the period and held for the entire period October 1, 2008, through
March 31, 2009. The actual ending account and expenses of the Class Y shares in
the below example are based on an investment of $1,000 invested as of close of
business October 3, 2008 (commencement date) and held through March 31, 2009.
ACTUAL EXPENSES
The table below provides information about actual account values and actual
expenses. You may use the information in this table, together with the amount
you invested, to estimate the expenses that you paid over the period. Simply
divide your account value by $1,000 (for example, an $8,600 account value
divided by $1,000 = 8.6), then multiply the result by the number in the table
under the heading entitled "Actual Expenses Paid During Period" to estimate the
expenses you paid on your account during this period (as of close of business
October 3, 2008 through March 31, 2009 for the Class Y shares). Because the
actual ending account value and expense information in the example is not based
upon a six month period for the Class Y shares, the ending account value and
expense information may not provide a meaningful comparison to mutual funds that
provide such information for a full six month period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The table below also provides information about hypothetical account values and
hypothetical expenses based on the Fund's actual expense ratio and an assumed
rate of return of 5% per year before expenses, which is not the Fund's actual
return.
The hypothetical account values and expenses may not be used to estimate the
actual ending account balance or expenses you paid for the period. You may use
this information to compare the ongoing costs of investing in the Fund and other
funds. To do so, compare this 5% hypothetical example with the 5% hypothetical
examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transaction costs, such as sales
charges (loads) on purchase payments, contingent deferred sales charges on
redemptions, and redemption fees, if any. Therefore, the hypothetical
information is useful in comparing ongoing costs only, and will not help you
determine the relative total costs of owning different funds. In addition, if
these transaction costs were included, your costs would have been higher.
<Table>
<Caption>
- -----------------------------------------------------------------------------------------------
HYPOTHETICAL
(5% ANNUAL RETURN BEFORE
ACTUAL EXPENSES)
------------------------------------------------------
BEGINNING ENDING EXPENSES ENDING EXPENSES ANNUALIZED
ACCOUNT VALUE ACCOUNT VALUE PAID DURING ACCOUNT VALUE PAID DURING EXPENSE
CLASS (10/01/08) (03/31/09)(1) PERIOD(2,4) (03/31/09) PERIOD(2,5) RATIO(3)
- -----------------------------------------------------------------------------------------------
A $1,000.00 $873.90 $3.55 $1,021.14 $3.83 0.76%
- -----------------------------------------------------------------------------------------------
B 1,000.00 870.50 7.04 1,017.40 7.59 1.51
- -----------------------------------------------------------------------------------------------
C 1,000.00 870.40 7.04 1,017.40 7.59 1.51
- -----------------------------------------------------------------------------------------------
Y 1,000.00 877.90 2.36 1,022.39 2.57 0.51
- -----------------------------------------------------------------------------------------------
</Table>
(1) The actual ending account value is based on the actual total return of the
Fund for the period October 1, 2008, through March 31, 2009 (as of close of
business October 3, 2008, through March 31, 2009 for the Class Y shares),
after actual expenses and will differ from the hypothetical ending account
value which is based on the Fund's expense ratio and a hypothetical annual
return of 5% before expenses.
(2) Expenses are equal to the Fund's annualized expense ratio as indicated above
multiplied by the average account value over the period, multiplied by
182/365 to reflect the most recent fiscal half year. For the Class Y shares
actual expenses are equal to the annualized expense ratio indicated above
multiplied by the average account value over the period, multiplied by 180
(as of close of business October 3, 2008, through March 31, 2009)/365.
Because the Class Y shares have not been in existence for a full six month
period, the actual ending account value and expense information shown may
not provide a meaningful comparison to fund expense information of classes
that show such data for a full six month period and, because the actual
ending account value and expense information in the expense example covers a
short time period, return and expense data may not be indicative of return
and expense data for longer time periods.
(3) Effective March 4, 2009, the Fund's advisor has voluntarily agreed to waive
advisory fees and/or reimburse expenses to the extent necessary to limit
Total Annual Fund Operating Expense of Class A, Class B, Class C and Class Y
to 0.80%, 1.55%, 1.55%, and 0.55% of average daily net assets, respectively.
The annualized expense ratios restated as if these agreements had been in
effect throughout the entire most recent fiscal half year are 0.80%, 1.55%,
1.55% and 0.55% for Class A, Class B, Class C and Class Y shares,
respectively.
(4) The actual expenses paid restated as if the changes discussed above had been
in effect throughout the entire most recent fiscal half year are $3.74,
$7.23, $7.23 and $2.55 for Class A, Class B, Class C and Class Y shares,
respectively.
(5) Hypothetical expenses are equal to the annualized expense ratio indicated
above multiplied by the average account value over the period, multiplied by
182/365 to reflect a one-half year period. The hypothetical ending account
value and expenses may be used to compare ongoing costs of investing in
Class Y shares of the Fund and other funds because such data is based on a
full six month period. The hypothetical expenses paid restated as if the
changes discussed above had been in effect throughout the entire most recent
fiscal half year period are $4.03, $7.80, $7.80 and $2.77 for Class A, Class
B, Class C and Class Y shares, respectively.
40 AIM HIGH INCOME MUNICIPAL FUND
TAX INFORMATION
Form 1099-DIV, Form 1042-S and other year-end tax information provide
shareholders with actual calendar year amounts that should be included in their
tax returns. Shareholders should consult their tax advisors.
The following distribution information is being provided as required by the
Internal Revenue Code or to meet a specific state's requirement.
The Fund designates the following amounts or, if subsequently determined to be
different, the maximum amount allowable for its fiscal year ended March 31,
2009:
<Table>
<Caption>
FEDERAL AND STATE INCOME TAX
----------------------------
Tax-Exempt Interest Dividends* 99.99%
</Table>
* The above percentage is based on ordinary income dividends paid to
shareholders during the Fund's fiscal year.
NON-RESIDENT ALIEN SHAREHOLDER INFORMATION
The percentages of qualifying assets not subject to the U.S. estate tax for the
fiscal quarters ended June 30, 2008, September 30, 2008, December 31, 2008 and
March 31, 2009 were 99.80%, 99.82%, 99.99%, and 99.99%, respectively.
41 AIM HIGH INCOME MUNICIPAL FUND
TRUSTEES AND OFFICERS
The address of each trustee and officer of AIM Tax-Exempt Funds (the "Trust"),
is 11 Greenway Plaza, Suite 100, Houston, Texas 77046-1173. Each trustee
oversees 102 portfolios in the AIM Funds complex. The trustees serve for the
life of the Trust, subject to their earlier death, incapacitation, resignation,
retirement or removal as more specifically provided in the Trust's
organizational documents. Each officer serves for a one year term or until their
successors are elected and qualified. Column two below includes length of time
served with predecessor entities, if any.
<Table>
<Caption>
NAME, YEAR OF BIRTH AND TRUSTEE AND/ OTHER
POSITION(S) HELD WITH THE OR OFFICER PRINCIPAL OCCUPATION(S) DIRECTORSHIP(S)
TRUST SINCE DURING PAST 5 YEARS HELD BY TRUSTEE
- --------------------------------------------------------------------------------------------------------------------------------
INTERESTED PERSONS
- --------------------------------------------------------------------------------------------------------------------------------
Martin L. 2007 Executive Director, Chief Executive Officer and President, None
Flanagan(1) -- 1960 Invesco Ltd. (ultimate parent of Invesco Aim and a global
Trustee investment management firm); Chairman, Invesco Aim Advisors,
Inc. (registered investment advisor); Trustee, The AIM
Family of Funds--Registered Trademark--; Vice Chairman,
Investment Company Institute; and Member of Executive Board,
SMU Cox School of Business
Formerly: Director, Chairman, Chief Executive Officer and
President, IVZ Inc. (holding company), INVESCO Group
Services, Inc. (service provider) and Invesco North American
Holdings, Inc. (holding company); Director, Chief Executive
Officer and President, Invesco Holding Company Limited
(parent of Invesco Aim and a global investment management
firm); Chairman, Investment Company Institute; President,
Co-Chief Executive Officer, Co-President, Chief Operating
Officer and Chief Financial Officer, Franklin Resources,
Inc. (global investment management organization)
- --------------------------------------------------------------------------------------------------------------------------------
Philip A. Taylor(2) -- 1954 2006 Head of North American Retail and Senior Managing Director, None
Trustee, President and Invesco Ltd.; Director, Chief Executive Officer and
Principal President, Invesco Trimark Dealer Inc. (formerly AIM Mutual
Executive Officer Fund Dealer Inc.) (registered broker dealer), Invesco Aim
Advisors, Inc., and 1371 Preferred Inc. (holding company);
Director, Chairman, Chief Executive Officer and President,
Invesco Aim Management Group, Inc. (financial services
holding company) and Invesco Aim Capital Management, Inc.
(registered investment advisor); Director and President,
INVESCO Funds Group, Inc. (registered investment advisor and
register transfer agent) and AIM GP Canada Inc. (general
partner for a limited partnership); Director, Invesco Aim
Distributors, Inc. (registered broker dealer); Director and
Chairman, Invesco Aim Investment Services, Inc. (registered
transfer agent) and INVESCO Distributors, Inc. (registered
broker dealer); Director, President and Chairman, INVESCO
Inc. (holding company) and Invesco Canada Holdings Inc.
(holding company); Chief Executive Officer, AIM Trimark
Corporate Class Inc. (corporate mutual fund company) and AIM
Trimark Canada Fund Inc. (corporate mutual fund company);
Director and Chief Executive Officer, Invesco Trimark
Ltd./Invesco Trimark Ltee (formerly AIM Funds Management
Inc. d/b/a INVESCO Enterprise Services) (registered
investment advisor and registered transfer agent) and
Invesco Trimark Dealer Inc. (formerly AIM Mutual Fund Dealer
Inc.) (registered broker dealer); Trustee, President and
Principal Executive Officer of The AIM Family of Funds--
Registered Trademark-- (other than AIM Treasurer's Series
Trust and Short-Term Investments Trust); Trustee and
Executive Vice President, The AIM Family of Funds--
Registered Trademark-- (AIM Treasurer's Series Trust and
Short-Term Investments Trust only); and Manager, Invesco
PowerShares Capital Management LLC
Formerly: President, Invesco Trimark Dealer Inc.; Director
and President, AIM Trimark Corporate Class Inc. and AIM
Trimark Canada Fund Inc.; Director and President, Invesco
Trimark Ltd./Invesco Trimark Ltee (formerly AIM Funds
Management Inc. d/b/a INVESCO Enterprise Services); Senior
Managing Director, Invesco Holding Company Limited; Trustee
and Executive Vice President, Tax-Free Investments Trust;
Director and Chairman, Fund Management Company (registered
broker dealer); President and Principal Executive Officer,
The AIM Family of Funds--Registered Trademark-- (AIM
Treasurer's Series Trust, Short-Term Investments Trust and
Tax-Free Investments Trust only); President, AIM Trimark
Global Fund Inc. and AIM Trimark Canada Fund Inc.; and
Director, Trimark Trust (federally regulated Canadian Trust
Company)
- --------------------------------------------------------------------------------------------------------------------------------
INDEPENDENT TRUSTEES
- --------------------------------------------------------------------------------------------------------------------------------
Bruce L. Crockett -- 1944 1993 Chairman, Crockett Technology Associates (technology ACE Limited
Trustee and Chair consulting company) (insurance company);
Captaris, Inc.
(unified messaging
provider); and
Investment Company
Institute
- --------------------------------------------------------------------------------------------------------------------------------
Bob R. Baker -- 1936 2003 Retired None
Trustee
- --------------------------------------------------------------------------------------------------------------------------------
Frank S. Bayley -- 1939 2001 Retired
Trustee
Formerly: Partner, law firm of Baker & McKenzie; and None
Director, Badgley Funds, Inc. (registered investment
company) (2 portfolios)
- --------------------------------------------------------------------------------------------------------------------------------
James T. Bunch -- 1942 2003 Founder, Green, Manning & Bunch Ltd., (investment banking Director, Van Gilder
Trustee firm) Insurance Company,
Board of Governors,
Western Golf
Association/Evans
Scholars Foundation
and Executive
Committee, United
States Golf
Association
- --------------------------------------------------------------------------------------------------------------------------------
Albert R. Dowden -- 1941 2000 Director of a number of public and private business None
Trustee corporations, including the Boss Group Ltd. (private
investment and management); Continental Energy Services, LLC
(oil and gas pipeline service); Reich & Tang Funds
(registered investment company); Annuity and Life Re
(Holdings), Ltd. (reinsurance company), and Homeowners of
America Holding Corporation/Homeowners of America Insurance
Company (property casualty company)
Formerly: Director, CompuDyne Corporation (provider of
product and services to the public security market);
Director, President and Chief Executive Officer, Volvo Group
North America, Inc.; Senior Vice President, AB Volvo;
Director of various public and private corporations
- --------------------------------------------------------------------------------------------------------------------------------
Jack M. Fields -- 1952 1997 Chief Executive Officer, Twenty First Century Group, Inc. Administaff
Trustee (government affairs company); and Owner and Chief Executive
Officer, Dos Angelos Ranch, L.P. (cattle, hunting, corporate
entertainment)
Formerly: Chief Executive Officer, Texana Timber LP
(sustainable forestry company); and Discovery Global
Education Fund (non-profit)
- --------------------------------------------------------------------------------------------------------------------------------
Carl Frischling -- 1937 1993 Partner, law firm of Kramer Levin Naftalis and Frankel LLP Director, Reich &
Trustee Tang Funds (16
portfolios)
- --------------------------------------------------------------------------------------------------------------------------------
Prema Mathai-Davis -- 1950 1998 Retired None
Trustee
- --------------------------------------------------------------------------------------------------------------------------------
Lewis F. Pennock -- 1942 1993 Partner, law firm of Pennock & Cooper None
Trustee
- --------------------------------------------------------------------------------------------------------------------------------
Larry Soll -- 1942 2003 Retired None
Trustee
- --------------------------------------------------------------------------------------------------------------------------------
Raymond Stickel, Jr. -- 1944 2005 Retired
Trustee
Formerly: Partner, Deloitte & Touche; and Director, Mainstay None
VP Series Funds, Inc. (25 portfolios)
- --------------------------------------------------------------------------------------------------------------------------------
</Table>
(1) Mr. Flanagan is considered an interested person of the Trust because he is
an officer of the advisor to the Trust, and an officer and a director of
Invesco Ltd., ultimate parent of the advisor to the Trust.
(2) Mr. Taylor is considered an interested person of the Trust because he is an
officer and a director of the advisor to, and a director of the principal
underwriter of, the Trust.
42 AIM HIGH INCOME MUNICIPAL FUND
TRUSTEES AND OFFICERS--(CONTINUED)
<Table>
<Caption>
NAME, YEAR OF BIRTH AND TRUSTEE AND/ OTHER
POSITION(S) HELD WITH THE OR OFFICER PRINCIPAL OCCUPATION(S) DIRECTORSHIP(S)
TRUST SINCE DURING PAST 5 YEARS HELD BY TRUSTEE
- --------------------------------------------------------------------------------------------------------------------------------
OTHER OFFICERS
- --------------------------------------------------------------------------------------------------------------------------------
Russell C. Burk -- 1958 2005 Senior Vice President and Senior Officer of The AIM Family of N/A
Senior Vice President and Funds--Registered Trademark--
Senior Officer
Formerly: Director of Compliance and Assistant General Counsel,
ICON Advisers, Inc.; Financial Consultant, Merrill Lynch; General
Counsel and Director of Compliance, ALPS Mutual Funds, Inc.
- --------------------------------------------------------------------------------------------------------------------------------
John M. Zerr -- 1962 2006 Director, Senior Vice President, Secretary and General Counsel, N/A
Senior Vice President, Chief Invesco Aim Management Group, Inc., Invesco Aim Advisors, Inc.
Legal Officer and Secretary and Invesco Aim Capital Management, Inc.; Director, Senior Vice
President and Secretary, Invesco Aim Distributors, Inc.;
Director, Vice President and Secretary, Invesco Aim Investment
Services, Inc. and INVESCO Distributors, Inc.; Director and Vice
President, INVESCO Funds Group Inc.; Senior Vice President, Chief
Legal Officer and Secretary, The AIM Family of Funds--Registered
Trademark--; and Manager, Invesco PowerShares Capital Management
LLC
Formerly: Director, Vice President and Secretary, Fund Management
Company; Vice President, Invesco Aim Capital Management, Inc.;
Chief Operating Officer, Senior Vice President, General Counsel
and Secretary, Liberty Ridge Capital, Inc. (an investment
adviser); Vice President and Secretary, PBHG Funds (an investment
company); Vice President and Secretary, PBHG Insurance Series
Fund (an investment company); Chief Operating Officer, General
Counsel and Secretary, Old Mutual Investment Partners (a broker-
dealer); General Counsel and Secretary, Old Mutual Fund Services
(an administrator); General Counsel and Secretary, Old Mutual
Shareholder Services (a shareholder servicing center); Executive
Vice President, General Counsel and Secretary, Old Mutual
Capital, Inc. (an investment adviser); and Vice President and
Secretary, Old Mutual Advisors Funds (an investment company)
- --------------------------------------------------------------------------------------------------------------------------------
Lisa O. Brinkley -- 1959 2004 Global Compliance Director, Invesco Ltd.; and Vice President, The N/A
Vice President AIM Family of Funds--Registered Trademark--
Formerly: Senior Vice President, Invesco Aim Management Group,
Inc.; Senior Vice President and Chief Compliance Officer, Invesco
Aim Advisors, Inc. and The AIM Family of Funds--Registered
Trademark--; Vice President and Chief Compliance Officer, Invesco
Aim Capital Management, Inc. and Invesco Aim Distributors, Inc.;
Vice President, Invesco Aim Investment Services, Inc. and Fund
Management Company
- --------------------------------------------------------------------------------------------------------------------------------
Kevin M. Carome -- 1956 2003 General Counsel, Secretary and Senior Managing Director, Invesco N/A
Vice President Ltd.; Director and Secretary, Invesco Holding Company Limited,
and INVESCO Funds Group, Inc.; Director and Executive Vice
President, IVZ Inc., Invesco Group Services, Inc., Invesco North
American Holdings, Inc. and Invesco Investments (Bermuda) Ltd;
and Vice President, The AIM Family of Funds--Registered
Trademark--
Formerly: Secretary, IVZ, Inc., Invesco Group Services, Inc., and
Invesco North American Holdings, Inc.; Senior Managing Director
and Secretary, Invesco Holding Company Limited; Director, Senior
Vice President, Secretary and General Counsel, Invesco Aim
Management Group, Inc. and Invesco Aim Advisors, Inc.; Senior
Vice President, Invesco Aim Distributors, Inc.; Director, General
Counsel and Vice President, Fund Management Company; Vice
President, Invesco Aim Capital Management, Inc., Invesco Aim
Investment Services, Inc., Invesco Group Services, Inc. and IVZ
Inc.; Senior Vice President, Chief Legal Officer and Secretary,
The AIM Family of Funds--Registered Trademark--; Director and
Vice President, INVESCO Distributors, Inc. and Chief Executive
Officer and President, INVESCO Funds Group, Inc.
- --------------------------------------------------------------------------------------------------------------------------------
Sheri Morris -- 1964 1999 Vice President, Treasurer and Principal Financial Officer, The N/A
Vice President, Treasurer AIM Family of Funds--Registered Trademark--; and Vice President,
and Principal Financial Invesco Aim Advisors, Inc., Invesco Aim Capital Management, Inc.
Officer and Invesco Aim Private Asset Management Inc.
Formerly: Assistant Vice President and Assistant Treasurer, The
AIM Family of Funds--Registered Trademark-- and Assistant Vice
President, Invesco Aim Advisors, Inc., Invesco Aim Capital
Management, Inc. and Invesco Aim Private Asset Management, Inc.
- --------------------------------------------------------------------------------------------------------------------------------
Karen Dunn Kelley -- 1960 1993 Head of Invesco's World Wide Fixed Income and Cash Management N/A
Vice President Group; Director of Cash Management and Senior Vice President,
Invesco Aim Advisors, Inc. and Invesco Aim Capital Management,
Inc; Executive Vice President, Invesco Aim Distributors, Inc.;
Senior Vice President, Invesco Aim Management Group, Inc.; Vice
President, The AIM Family of Funds--Registered Trademark-- (other
than AIM Treasurer's Series Trust and Short-Term Investments
Trust); and President and Principal Executive Officer, The AIM
Family of Funds--Registered Trademark-- (AIM Treasurer's Series
Trust and Short-Term Investments Trust only)
Formerly President and Principal Executive Officer, Tax-Free
Investments Trust; Director and President, Fund Management
Company; Chief Cash Management Officer and Managing Director,
Invesco Aim Capital Management, Inc.; and Vice President, Invesco
Aim Advisors, Inc. and The AIM Family of Funds--Registered
Trademark-- (AIM Treasurer's Series Trust, Short-Term Investments
Trust and Tax-Free Investments Trust only)
- --------------------------------------------------------------------------------------------------------------------------------
Lance A. Rejsek -- 1967 2005 Anti-Money Laundering Compliance Officer, Invesco Aim Advisors, N/A
Anti-Money Laundering Inc., Invesco Aim Capital Management, Inc., Invesco Aim
Compliance Officer Distributors, Inc., Invesco Aim Investment Services, Inc.,
Invesco Aim Private Asset Management, Inc. and The AIM Family of
Funds--Registered Trademark--
Formerly: Anti-Money Laundering Compliance Officer, Fund
Management Company; and Manager of the Fraud Prevention
Department, Invesco Aim Investment Services, Inc.
- --------------------------------------------------------------------------------------------------------------------------------
Todd L. Spillane -- 1958 2006 Senior Vice President, Invesco Aim Management Group, Inc.; Senior N/A
Chief Compliance Officer Vice President and Chief Compliance Officer, Invesco Aim
Advisors, Inc. and Invesco Aim Capital Management, Inc.; Chief
Compliance Officer, The AIM Family of Funds--Registered
Trademark--, Invesco Global Asset Management (N.A.), Inc.
(registered investment advisor), Invesco Institutional (N.A.),
Inc., (registered investment advisor), INVESCO Private Capital
Investments, Inc. (holding company), Invesco Private Capital,
Inc. (registered investment advisor) and Invesco Senior Secured
Management, Inc. (registered investment advisor); and Vice
President, Invesco Aim Distributors, Inc. and Invesco Aim
Investment Services, Inc.
Formerly: Vice President, Invesco Aim Capital Management, Inc.
and Fund Management Company; and Global Head of Product
Development, AIG-Global Investment Group, Inc.
- --------------------------------------------------------------------------------------------------------------------------------
</Table>
The Statement of Additional Information of the Trust includes additional
information about the Fund's Trustees and is available upon request, without
charge, by calling 1.800.959.4246.
Please refer to the Fund's prospectus for information on the Fund's sub-
advisors.
<Table>
OFFICE OF THE FUND INVESTMENT ADVISOR DISTRIBUTOR AUDITORS
11 Greenway Plaza Invesco Aim Advisors, Invesco Aim Distributors, PricewaterhouseCoopers
Suite 100 Inc. Inc. LLP
Houston, TX 77046-1173 11 Greenway Plaza 11 Greenway Plaza 1201 Louisiana Street
Suite 100 Suite 100 Suite 2900
Houston, TX 77046-1173 Houston, TX 77046-1173 Houston, TX 77002-5678
COUNSEL TO THE FUND COUNSEL TO THE TRANSFER AGENT CUSTODIAN
Stradley Ronon Stevens INDEPENDENT TRUSTEES Invesco Aim Investment The Bank of New York
& Young, LLP Kramer, Levin, Naftalis & Services, Inc. Mellon
2600 One Commerce Square Frankel LLP P.O. Box 4739 2 Hanson Place
Philadelphia, PA 19103 1177 Avenue of the Houston, TX 77210-4739 Brooklyn, NY 11217-1431
Americas
New York, NY 10036-2714
43 AIM HIGH INCOME MUNICIPAL FUND
[GO PAPERLESS GRAPHIC]
====================================================================================================================================
GO PAPERLESS WITH EDELIVERY
Visit invescoaim.com/edelivery to receive quarterly statements, tax forms, fund reports and prospectuses with a service that's all
about eeees:
o ENVIRONMENTALLY FRIENDLY. Go green by reducing the number of o EFFICIENT. Stop waiting for regular mail. Your documents
trees used to produce paper. will be sent via email as soon as they're available.
o ECONOMICAL. Help reduce your fund's printing and delivery o easy. Download, save and print files using your home
expenses and put more capital back in your fund's returns. computer with a few clicks of your mouse.
This service is provided by Invesco Aim Investment Services, Inc.
====================================================================================================================================
FUND HOLDINGS AND PROXY VOTING INFORMATION
The Fund provides a complete list of its holdings four times in each fiscal year, at the quarter-ends. For the second and fourth
quarters, the lists appear in the Fund's semiannual and annual reports to shareholders. For the first and third quarters, the Fund
files the lists with the Securities and Exchange Commission (SEC) on Form N-Q. The most recent list of portfolio holdings is
available at invescoaim.com. From our home page, click on Products & Performance, then Mutual Funds, then Fund Overview. Select your
Fund from the drop-down menu and click on Complete Quarterly Holdings. Shareholders can also look up the Fund's Forms N-Q on the SEC
website at sec.gov. Copies of the Fund's Forms N-Q may be reviewed and copied at the SEC Public Reference Room in Washington, D.C.
You can obtain information on the operation of the Public Reference Room, including information about duplicating fee charges, by
calling 202 942 8090 or 800 732 0330, or by electronic request at the following email address: publicinfo@sec.gov. The SEC file
numbers for the Fund are 811-07890 and 033-66242.
A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities
is available without charge, upon request, from our Client Services department at 800 959 4246 or on the Invesco Aim website,
invescoaim. com. On the home page, scroll down and click on Proxy Policy. The information is also available on the SEC website,
sec.gov.
Information regarding how the Fund voted proxies related to its portfolio securities during the 12 months ended June 30, 2008, is
available at our website. Go to invescoaim.com, access the About Us tab, click on Required Notices and then click on Proxy Voting
Activity. Next, select the Fund from the drop-down menu. The information is also available on the SEC website, sec.gov.
If used after July 20, 2009, this report must be accompanied by a Fund fact sheet or Invesco Aim
Quarterly Performance Review for the most recent quarter-end. Invesco Aim--SERVICE MARK-- is a
service mark of Invesco Aim Management Group, Inc. Invesco Aim Advisors, Inc., Invesco Aim Capital
Management, Inc., Invesco Aim Private Asset Management, Inc. and Invesco PowerShares Capital
Management LLC are the investment advisors for the products and services represented by Invesco Aim;
they each provide investment advisory services to individual and institutional clients and do not sell
securities. Please refer to each fund's prospectus for information on the fund's subadvisors. Invesco [INVESCO AIM LOGO]
Aim Distributors, Inc. is the U.S. distributor for the retail mutual funds, exchange-traded funds and --SERVICE MARK--
institutional money market funds and the subdistributor for the STIC Global Funds represented by
Invesco Aim. All entities are indirect, wholly owned subsidiaries of invesco Ltd.
It is anticipated that on or about the end of the fourth quarter of 2009, Invesco Aim Advisors,
Inc., Invesco Aim Capital Management, Inc., Invesco Private Asset Management, Inc. and Invesco Global
Asset Management (N.A.), Inc. will be merged into Invesco Institutional (N.A.), Inc., and the
consolidated adviser firm will be renamed Invesco Advisers, Inc. Additional information will be posted
at invescoaim.com on or about the end of the fourth quarter of 2009.
invescoaim.com HIM-AR-1 Invesco Aim Distributors, Inc.
[INVESCO AIM LOGO] AIM TAX-EXEMPT CASH FUND
- SERVICE MARK - Annual Report to Shareholders - March 31, 2009
[MOUNTAIN GRAPHIC]
2 Letter to Shareholders
3 Fund Data
4 Letter to Shareholders
5 Supplemental Information
6 Schedule of Investments
10 Financial Statements
13 Notes to Financial Statements
17 Financial Highlights
19 Auditor's Report
20 Fund Expenses
21 Tax Information
22 Trustees and Officers
Dear Shareholders:
We are pleased to present this report on the performance of AIM Tax-Exempt Cash Fund for the 12
months ended March 31, 2009.
[TAYLOR The seven-day SEC yields (and their taxable equivalents) for the Fund's three share classes at
PHOTO] the close of the fiscal year are shown nearby. As of March 31, 2009, the Fund's weighted average
maturity stood at 30 days and its total net assets were $42.7 million.
HOW WE INVEST
Philip Taylor We seek to provide as high a level of tax-exempt income as is consistent with preservation of
capital and maintenance of liquidity. We invest in high-quality, short-term municipal obligations,
focusing on:
- Safety, or preservation of capital, through rigorous credit analysis.
- Liquidity, through a combination of short-term cash management vehicles and selective use of
longer maturity investments.
- Yield that is exempt from federal income tax.
The overall portfolio's structure depends on the supply and availability of municipal securities. Liquidity is managed using
daily and weekly variable-rate demand notes. We may sell a security when there has been a negative change in an issuer's credit
quality or because we can earn a higher yield elsewhere.
Because we do not purchase securities that generate taxable income or that are subject to the alternative minimum tax, we expect
the Fund to generate fully tax-exempt income.
An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government
agency and is not a deposit or other obligation of, or guaranteed by, a depository institution. Although the Fund seeks to preserve
the value of your investment at $1.00 per share, it is possible to lose money by investing in the Fund.
MARKET CONDITIONS AFFECTING MONEY MARKET FUNDS
The U.S. economy, which sank into recession in December 2007,(1) weakened significantly during the year covered by this report.
Gross domestic product (GDP), the broadest measure of overall U.S. economic activity, grew at an annualized rate of 2.8% in the
second quarter of 2008 but contracted at annualized rates of 0.5% and 6.3% in the third and fourth quarters of 2008,
respectively.(2) The advance estimate for first quarter 2009 GDP showed the economy contracted at an annualized rate of 6.1%, far
wider than expected.(2)
What began as a liquidity crisis concentrated in the financials sector quickly spread throughout the economy. As banks saw the
value of their hard-to-value and increasingly illiquid mortgage-related assets decline, many hoarded cash and reduced lending, even
to creditworthy businesses. Unable to obtain needed credit, corporations were forced to conserve cash by, among other things,
reducing their staffs. The U.S. unemployment rate rose sharply during the fiscal year covered by this report, rising from 5.0% in
April 2008 to 8.5% in March 2009,(3) its highest level in a quarter-century.(4) Since the start of the recession, more than 5
million jobs have been lost.(4)
Faced with economic weakness, the U.S. Federal Reserve (the Fed) lowered short-term interest rate targets to record low levels in
2008.(5) At the start of the fiscal year, the fed funds target rate stood at 2.25%; at its close, that key interest rate was in a
range of zero to 0.25%.(5) The Fed hoped its actions would stimulate economic growth, or at least ease the severity of the
recession. Decreases in the fed funds target rate are reflected fairly quickly in the yields of money market funds and other
short-term fixed-income securities.
Given economic uncertainty and stock-market volatility, many investors sought the relative safety of money market funds and
short-term fixed-income investments - especially government-issued securities. This, together with aggressive Fed action, caused
yields to decline across the board during the fiscal year, with the greatest declines on the short end of the yield curve. At the
start of the fiscal year, three-month Treasury bills and 30-year Treasury bonds yielded 1.37% and 4.31%, respectively.(6) By the
close of the fiscal year, they yielded 0.21% and 3.57%, respectively.(6)
2 AIM TAX-EXEMPT CASH FUND
CONTACT US
If you have questions about this report or your account, please contact one of our client service representatives at 800 959 4246.
I also invite you to visit invescoaim.com where you can check on your individual account, obtain long-term performance
information for your fund and read market commentaries from our investment professionals as well as general investor education
pieces.
As always, I welcome your comments and questions. Please contact me at phil@invescoaim.com and let me know what's on your mind.
Thank you for investing with us. All of us at Invesco Aim look forward to serving you.
Sincerely,
/S/ PHILIP TAYLOR
Philip Taylor
Senior Managing Director, Invesco Ltd.
CEO, Invesco Aim
(1) National Bureau of Economic Research
(2) Bureau of Economic Analysis
(3) Bureau of Labor Statistics
(4) Reuters
(5) U.S. Federal Reserve
(6) Barclays Capital
The views and opinions expressed in this letter are those of Invesco Aim Advisors, Inc. These views and opinions are subject to
change at any time based on factors such as market and economic conditions. These views and opinions may not be relied upon as
investment advice or recommendations, or as an offer for a particular security. Statements of fact are from sources considered
reliable, but Invesco Aim Advisors, Inc. makes no representation or warranty as to their completeness or accuracy. Although
historical performance is no guarantee of future results, these insights may help you understand our investment management
philosophy.
FUND DATA
=============================================================================================== ===================================
AIM TAX-EXEMPT CASH FUND 7-DAY SEC YIELDS PORTFOLIO COMPOSITION BY
As of 3/31/09 MATURITY
TAXABLE EQUIVALENT In days, as of 3/31/09
7-DAY SEC YIELD 7-DAY SEC YIELD 1-7 83.8%
HAD FEES NOT HAD FEES NOT 8-30 0.0
BEEN WAIVED BEEN WAIVED 31-90 4.9
TAXABLE EQUIVALENT AND/OR EXPENSES AND/OR EXPENSES 91-180 4.2
7-DAY SEC YIELD 7-DAY SEC YIELD* REIMBURSED REIMBURSED* 181+ 7.1
--------------- ------------------ --------------- ------------------ ===================================
Class A Shares 0.05% 0.08% -0.10% -0.15% The number of days to maturity of
Class Y Shares 0.05 0.08 0.05 0.08 each holding is determined in
Investor Class Shares 0.05 0.08 0.05 0.08 accordance with the provisions of
Rule 2a-7 under the Investment
* Based on the highest personal income tax rate in effect on March 31, 2009 of 35%. Company Act of 1940.
Yields will fluctuate.
===============================================================================================
====================================================================================================================================
PERFORMANCE QUOTED IS PAST PERFORMANCE AND CANNOT GUARANTEE COMPARABLE FUTURE RESULTS; CURRENT PERFORMANCE MAY BE LOWER OR HIGHER.
VISIT INVESCOAIM.COM FOR THE MOST RECENT MONTH-END PERFORMANCE.
====================================================================================================================================
3 AIM TAX-EXEMPT CASH FUND
Dear Fellow Shareholders:
Since my last letter, continuing troubles in the global economy and financial markets have
negatively affected all investors. The new government promises to move quickly with a stimulus
package, yet considerable anxiety remains about how, when and what kind of a recovery will occur.
[CROCKETT However, mutual funds generally are more diversified than other investments; as shareholders we
PHOTO] invest not in a single security but in a portfolio of multiple securities. The benefits of
diversification have been reiterated by the stories of investors who "lost everything" because they
had too many of their assets in one place, whether that place was a single money manager or their
employer's stock. Mutual fund investors also have the opportunity to diversify further among
Bruce Crockett different types of funds that each deploy a different strategy and focus on different kinds of
securities. These include conservatively managed money market funds, which, relative to other
securities, continue to offer a more safe, liquid, and convenient way to invest short-term assets.
In addition to diversification, investing discipline is essential during challenging times such as these. Strategies such as
dollar cost averaging, where individuals invest a consistent amount at regular intervals, can help investors acquire more fund
shares when prices are low. Periodic rebalancing of asset allocation plans achieves the same effect. "Buy low, sell high" has long
been the mantra of investment success, but the advice is not always easy to follow because it requires the discipline to resist
prevailing trends. Of course, investment strategies, such as dollar cost averaging and portfolio rebalancing do not guarantee a
profit or eliminate the risk of loss. Investors should consider their ability to continue investing regardless of fluctuating
security prices.
A long-term view is also important, particularly for assets that are not needed right away. In the past, it has often proven
better to keep long-term assets invested through a downturn than to miss the beginning of the upward trend. To develop a diversified
and disciplined investing plan that is right for your individual goals, I encourage you to consult an experienced and trustworthy
investment professional who has the knowledge and the tools to help you establish and implement the plan, monitor its results and
adapt it to changing goals and circumstances.
Even when working with a personal financial advisor, investors should supplement the relationship with their own knowledge and
awareness of the investments they hold. Visit the Invesco Aim website at invescoaim.com regularly to find out what is happening in
your AIM funds and to read timely market commentary from Invesco Aim management, strategists and portfolio managers. The site's
"Education and Planning" section can also help you clarify basic investment concepts, learn how to choose a financial advisor,
evaluate different investment choices and make more informed investment decisions. Invesco Aim's redesigned public home page
recently received a Gold Award for its user-friendly navigation and graphics from The Mutual Funds Monitor Awards, sponsored by
Corporate Insight.
As always, your Board of Trustees and Invesco Aim are committed to putting your interests first by controlling costs, monitoring
investment performance and streamlining the investment management process during these difficult times. Your Board has already begun
the annual review and management contract renewal process with the continuing goal of making AIM funds one of the best and most
cost-effective ways for you to invest your hard-earned money.
While the investing climate may remain uncertain for a while, economies and markets are dynamic, and no stage is ever permanent.
Please feel free to contact me in writing with your questions or concerns. You can send an email to me at bruce@brucecrockett.com.
Best regards,
/S/ BRUCE L. CROCKETT
Bruce L. Crockett
Independent Chair
AIM Funds Board of Trustees
4 AIM TAX-EXEMPT CASH FUND
AIM TAX-EXEMPT CASH FUND'S INVESTMENT OBJECTIVE IS TO PROVIDE AS HIGH A LEVEL OF TAX-EXEMPT INCOME AS IS CONSISTENT WITH THE
PRESERVATION OF CAPITAL AND MAINTENANCE OF LIQUIDITY.
- - Unless otherwise stated, information presented in this report is as of March 31, 2009, and is based on total net assets.
- - Unless otherwise noted, all data provided by Invesco Aim.
ABOUT SHARE CLASSES - U.S. dollar denominated securities
which carry foreign credit exposure may
- - Class Y shares are available to only be affected by unfavorable political,
certain investors. Please see the economic or governmental developments
prospectus for more information. that could affect the repayment of
principal or the payment of interest.
- - Investor Class shares are closed to
most investors. For more information on - Interest rate risk refers to the risk
who may continue to invest in Investor that bond prices generally fall as
Class shares, please see the interest rates rise; conversely, bond
prospectus. prices generally rise as interest rates
fall.
PRINCIPAL RISKS OF INVESTING IN THE FUND
- There is no guarantee that the investment
- - Because many municipal securities are techniques and risk analyses used by
issued to finance similar projects, the Fund's portfolio managers will
especially those relating to education, produce the desired results.
health care, transportation and
utilities, conditions in those sectors - The prices of securities held by the
can affect the overall municipal Fund may decline in response to market
securities market and the Fund. risks.
- - Credit risk is the risk of loss on an - The value of, payment of interest and
investment due to the deterioration of repayment of principal with respect to,
an issuer's financial health. Such a and the ability of the Fund to sell, a
deterioration of financial health may municipal security may be affected by
result in a reduction of the credit constitutional amendments, legislative
rating of the issuer's securities and enactments, executive orders,
may lead to the issuer's inability to administrative regulations and voter
honor its contractual obligations initiatives as well as the economics of
including making timely payment of the regions in which the issuers in
interest and principal. which the Fund invests are located.
- - The Fund may use enhanced investment - The tax-exempt character of the
techniques such as derivatives. The interest paid on synthetic municipal
principal risk of derivatives is that securities is based on the tax-exempt
the fluctuations in their value may not income stream from the collateral. The
correlate perfectly with the overall Internal Revenue Service has not ruled
securities markets. Derivatives are on this issue and could deem income
subject to counterparty risk - the risk derived from synthetic municipal
that the other party will not complete securities to be taxable.
the transaction with the Fund.
- Leveraging entails risks such as
magnifying changes in the value of the
portfolio's securities.
==========================================
FUND NASDAQ SYMBOLS
Class A Shares ACSXX
Class Y Shares --
Investor Class Shares TEIXX
==========================================
====================================================================================================================================
AN INVESTMENT IN THE FUND IS NOT INSURED OR GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY OTHER GOVERNMENT AGENCY
AND IS NOT A DEPOSIT OR OTHER OBLIGATION OF, OR GUARANTEED BY, A DEPOSITORY INSTITUTION. ALTHOUGH THE FUND SEEKS TO PRESERVE THE
VALUE OF YOUR INVESTMENT AT $1.00 PER SHARE, IT IS POSSIBLE TO LOSE MONEY BY INVESTING IN THE FUND.
====================================================================================================================================
====================================================================================================================================
THIS REPORT MUST BE ACCOMPANIED OR PRECEDED BY A CURRENTLY EFFECTIVE FUND PROSPECTUS, WHICH CONTAINS MORE COMPLETE INFORMATION,
INCLUDING SALES CHARGES AND EXPENSES. INVESTORS SHOULD READ IT CAREFULLY BEFORE INVESTING.
====================================================================================================================================
NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE
5 AIM TAX-EXEMPT CASH FUND
SCHEDULE OF INVESTMENTS
March 31, 2009
<Table>
<Caption>
PRINCIPAL
INTEREST MATURITY AMOUNT
RATE DATE (000) VALUE
- -----------------------------------------------------------------------------------------------------
MUNICIPAL OBLIGATIONS-103.38%
ALABAMA-4.78%
Oxford (City of); Series 2003, VRD Unlimited Tax
GO Wts. (LOC-Branch Banking & Trust
Co.)(a)(b) 0.72% 07/01/15 $2,040 $ 2,040,000
=====================================================================================================
ALASKA-2.34%
Wachovia MERLOTs (Alaska (State of) Housing
Finance Corp.); Series 1999 D, VRD
RB(a)(c)(d) 2.05% 06/01/49 1,000 1,000,000
=====================================================================================================
COLORADO-2.59%
Colorado (State of) Health Facilities Authority
(Catholic Health Initiatives); Series 2008 C-
4, RB 3.75% 10/01/41 300 304,068
- -----------------------------------------------------------------------------------------------------
Cornerstar Metropolitan District; Series 2007,
VRD Special RB (LOC-Compass Bank)(a)(b) 0.54% 12/01/37 800 800,000
=====================================================================================================
1,104,068
=====================================================================================================
FLORIDA-2.17%
Florida (State of) Housing Finance Corporation
(Autumn Place Apartments); Series 2008 K-2,
VRD MFH Mortgage RB (LOC-SunTrust Bank)(a)(b) 1.06% 07/15/41 200 200,000
- -----------------------------------------------------------------------------------------------------
Jacksonville (City of) Health Facilities
Authority (University of Florida Jacksonville
Physicians, Inc.); Series 2002, VRD RB
(LOC-Bank of America, N.A.)(a)(b) 0.60% 06/01/22 725 725,000
=====================================================================================================
925,000
=====================================================================================================
GEORGIA-12.72%
Bibb (County of) Development Authority
(Foundation of the Methodist Home of the
South Georgia Conference, Inc.); Series 2001,
VRD RB (LOC-SunTrust Bank)(a)(b) 0.63% 11/01/26 700 700,000
- -----------------------------------------------------------------------------------------------------
DeKalb (County of) Development Authority (A.G.
Rhodes Home at Wesley Woods, Inc. Project);
Series 1996, VRD IDR (LOC-SunTrust
Bank)(a)(b)(d) 0.83% 03/01/21 1,055 1,055,000
- -----------------------------------------------------------------------------------------------------
Fulton (County of) Development Authority (Rabbi
Harry H. Epstein School, Inc. Project);
Series 1997, VRD RB (LOC-SunTrust
Bank)(a)(b)(d) 0.78% 01/01/17 1,400 1,400,000
- -----------------------------------------------------------------------------------------------------
Gordon (County of) Hospital Authority (Adventist
Health System/Sunbelt Healthcare Corp.);
Series 1997 A, VRD RAC (LOC-SunTrust
Bank)(a)(b) 0.68% 11/15/27 1,070 1,070,000
- -----------------------------------------------------------------------------------------------------
Tallapoosa (City of) Development Authority
(United States Can Co.); Series 1994, Ref.
VRD IDR (LOC-Deutsche Bank A.G.)(a)(b)(e) 1.00% 02/01/15 1,200 1,200,000
=====================================================================================================
5,425,000
=====================================================================================================
IDAHO-1.17%
Custer (County of) (Standard Oil Co.); Series
1983, VRD PCR(a)(e) 3.00% 10/01/09 500 500,000
=====================================================================================================
ILLINOIS-3.98%
Eagle Tax-Exempt Trust (Regional Transportation
Authority); Series 2000-1303, Class A, VRD
COP(a)(c)(d) 0.89% 07/01/23 1,000 1,000,000
- -----------------------------------------------------------------------------------------------------
Illinois (State of) Finance Authority (Advocate
Health Care Network); Series 2008 A-2, VRD RB 0.75% 11/01/30 200 200,000
- -----------------------------------------------------------------------------------------------------
Illinois (State of) Finance Authority (Loyola
University of Chicago Financing Program);
Series 2008, Commercial Paper RN
(LOC-JPMorgan Chase Bank, N.A.)(b) 1.50% 05/05/09 500 500,000
=====================================================================================================
1,700,000
=====================================================================================================
INDIANA-7.96%
Indiana (State of) Development Finance Authority
(Youth Opportunity Center, Inc.);
Series 1998, VRD Educational Facilities RB
(LOC-JPMorgan Chase Bank, N.A.)(a)(b) 1.00% 01/01/24 1,300 1,300,000
- -----------------------------------------------------------------------------------------------------
Series 1999, VRD IDR (LOC-JPMorgan Chase
Bank, N.A.)(a)(b) 1.00% 01/01/29 1,300 1,300,000
- -----------------------------------------------------------------------------------------------------
Indiana (State of) Health Facility Financing
Authority (Stone Belt Arc, Inc.); Series
2005, VRD RB (LOC-JPMorgan Chase Bank,
N.A.)(a)(b) 1.00% 02/01/25 795 795,000
=====================================================================================================
3,395,000
=====================================================================================================
</Table>
See accompanying Notes to Financial Statements which are an integral part of the
financial statements.
6 AIM TAX-EXEMPT CASH FUND
<Table>
<Caption>
PRINCIPAL
INTEREST MATURITY AMOUNT
RATE DATE (000) VALUE
- -----------------------------------------------------------------------------------------------------
KENTUCKY-0.59%
Kentucky (State of) Rural Water Finance Corp.;
Series 2009 B-1, Public Construction RN 2.00% 03/01/10 $ 250 $ 251,822
=====================================================================================================
MARYLAND-5.16%
Baltimore (County of) (Blue Circle Inc.); Series
1992, Ref. VRD Economic Development RB
(LOC-BNP Paribas)(a)(b)(e) 0.50% 12/01/17 2,200 2,200,000
=====================================================================================================
MASSACHUSETTS-1.64%
Massachusetts (Commonwealth of); Series 2008 C,
Limited Tax GO RAN 4.00% 05/29/09 200 200,564
- -----------------------------------------------------------------------------------------------------
Massachusetts (State of) Development Finance
Agency (MassDevelopment CP Program 5 Issue);
Series 2007, Commercial Paper RN (LOC-TD
Bank, N.A.)(b) 1.00% 04/01/09 500 500,000
=====================================================================================================
700,564
=====================================================================================================
MINNESOTA-0.47%
Minnesota (State of) Rural Water Finance
Authority; Series 2008, Public Construction
RN 2.75% 06/01/09 200 200,230
=====================================================================================================
MISSISSIPPI-1.97%
Jackson (County of); Series 1994, Ref. VRD
Unlimited Tax Water System GO (CEP-Chevron
Corp.)(a) 0.60% 11/01/24 340 340,000
- -----------------------------------------------------------------------------------------------------
Mississippi (State of) Business Finance Corp.
(Chevron U.S.A. Inc.); Series 2007 B, VRD
Gulf Opportunity Zone IDR(a) 0.70% 12/01/30 500 500,000
=====================================================================================================
840,000
=====================================================================================================
MISSOURI-2.23%
St. Charles (County of) Industrial Development
Authority (Sun River Village Apartments);
Series 1985, VRD IDR (LOC-Wells Fargo Bank,
N.A.)(a)(b) 0.61% 12/01/27 950 950,000
=====================================================================================================
NEW YORK-5.22%
North Amityville (City of) Fire Company Inc.;
Series 2003, VRD Fire Department RB
(LOC-Citibank, N.A.)(a)(b) 0.80% 09/01/23 2,225 2,225,000
=====================================================================================================
NORTH CAROLINA-1.03%
North Carolina (State of) Medical Care
Commission (Depaul Community Facilities,
Inc.); Series 1999, First Mortgage Health
Care Facilities RB(f)(g) 7.63% 11/01/09 420 439,508
=====================================================================================================
NORTH DAKOTA-4.69%
Fargo (City of) (Case Oil Co.); Series 1984, VRD
Commercial Development RB (LOC-U.S. Bank
N.A.)(a)(b) 0.65% 12/01/14 2,000 2,000,000
=====================================================================================================
OHIO-8.83%
Beavercreek (City of) City School District;
Series 2009, Unlimited Tax School Improvement
GO BAN 2.00% 08/18/09 210 211,085
- -----------------------------------------------------------------------------------------------------
Cleveland (City of) Municipal School District;
Series 2008, Unlimited Tax School Improvement
GO BAN 2.50% 09/30/09 500 503,344
- -----------------------------------------------------------------------------------------------------
Columbus (City of) City School District; Series
2009 A, School Facilities Construction &
Improvement Unlimited Tax GO BAN 2.00% 08/13/09 250 251,198
- -----------------------------------------------------------------------------------------------------
Dublin (City of) City School District; Series
2009, Unlimited Tax School Construction GO
BAN 2.00% 10/15/09 300 302,180
- -----------------------------------------------------------------------------------------------------
Lucas (County of) (ProMedica Healthcare System);
Series 2008 A, Hospital RB (LOC-UBS AG)(a)(e) 0.59% 11/15/34 2,500 2,500,000
=====================================================================================================
3,767,807
=====================================================================================================
PENNSYLVANIA-14.55%
Moon (Township of) Industrial Development
Authority (Providence Point); Series 2007,
VRD First Mortgage RB (LOC-Lloyds TSB Bank
PLC)(a)(b)(e) 0.75% 07/01/38 4,340 4,340,000
- -----------------------------------------------------------------------------------------------------
Pennsylvania (State of) Economic Development
Financing Authority (Pennsylvania Treasury
Department Hospital Enhancement Loan Program-
Indiana Regional Medical Center); Series 2006
A2, VRD RB (LOC-PNC Bank, N.A.)(a)(b) 0.59% 06/01/11 865 865,000
- -----------------------------------------------------------------------------------------------------
Pennsylvania (State of) Higher Educational
Facilities Authority (Association of
Independent Colleges & Universities of
Pennsylvania Financing Program-Mount Aloysius
College); Series 1998 C3, VRD RB (LOC-PNC
Bank, N.A.)(a)(b) 0.67% 11/01/18 1,000 1,000,000
=====================================================================================================
6,205,000
=====================================================================================================
</Table>
See accompanying Notes to Financial Statements which are an integral part of the
financial statements.
7 AIM TAX-EXEMPT CASH FUND
<Table>
<Caption>
PRINCIPAL
INTEREST MATURITY AMOUNT
RATE DATE (000) VALUE
- -----------------------------------------------------------------------------------------------------
TENNESSEE-4.10%
Hawkins (County of) Industrial Development Board
(Leggett & Platt Inc.); Series 1988 B, Ref.
VRD IDR (LOC-Wells Fargo Bank, N.A.)(a)(b) 1.53% 10/01/27 $1,750 $ 1,750,000
=====================================================================================================
TEXAS-7.64%
Arlington (City of);
Series 2005 A, GO Commercial Paper Notes 0.75% 04/06/09 750 750,000
- -----------------------------------------------------------------------------------------------------
Series 2005 A, GO Commercial Paper Notes 1.00% 06/08/09 500 500,000
- -----------------------------------------------------------------------------------------------------
Garland (City of); Series 2008, GO Commercial
Paper Notes 0.70% 07/07/09 300 300,000
- -----------------------------------------------------------------------------------------------------
Hockley (County of) Industrial Development Corp.
(Amoco Corp.);
Series 1983, VRD PCR(a)(e) 0.75% 03/01/14 250 250,050
- -----------------------------------------------------------------------------------------------------
Series 1985, VRD PCR(a)(e) 2.70% 11/01/19 240 240,000
- -----------------------------------------------------------------------------------------------------
Texas (State of); Series 2008, TRAN 3.00% 08/28/09 500 502,751
- -----------------------------------------------------------------------------------------------------
Texas A&M University System Board of Regents;
Series 2003 A, Financing System RB 5.00% 05/15/09 320 321,655
- -----------------------------------------------------------------------------------------------------
Travis (County of); Series 2008, Limited Tax GO
Ctfs. 3.25% 03/01/10 160 163,660
- -----------------------------------------------------------------------------------------------------
Tyler (City of) Independent School District;
Series 2005 A, Ref. Unlimited Tax GO
(CEP-Texas Permanent School Fund) 3.50% 02/15/10 225 230,257
=====================================================================================================
3,258,373
=====================================================================================================
WASHINGTON-4.69%
Lake Tapps Parkway Properties; Series 1999 A,
VRD Special RB (LOC-U.S. Bank, N.A.)(a)(b) 0.68% 12/01/19 2,000 2,000,000
=====================================================================================================
WISCONSIN-2.86%
Madison (City of) Community Development
Authority (Hamilton Point Apartments); Series
1997 A, Ref. VRD MFH RB (LOC-JPMorgan Chase
Bank, N.A.)(a)(b)(d) 0.65% 10/01/22 765 765,000
- -----------------------------------------------------------------------------------------------------
Marathon (County of); Series 2009 A, Unlimited
Tax Promissory GO 2.50% 12/01/09 250 252,918
- -----------------------------------------------------------------------------------------------------
Wisconsin (State of); Series 1999 A, Unlimited
Tax GO(f)(g) 5.00% 05/01/09 200 200,477
=====================================================================================================
1,218,395
=====================================================================================================
TOTAL INVESTMENTS-103.38% (Cost $44,095,767)(h)(i) 44,095,767
=====================================================================================================
OTHER ASSETS LESS LIABILITIES-(3.38)% (1,441,346)
=====================================================================================================
NET ASSETS-100.00% 42,654,421
_____________________________________________________________________________________________________
=====================================================================================================
</Table>
Investment Abbreviations:
<Table>
BAN - Bond Anticipation Note
CEP - Credit Enhancement Provider
COP - Certificates of Participation
Ctfs. - Certificates
GO - General Obligation Bonds
IDR - Industrial Development Revenue Bonds
LOC - Letter of Credit
MERLOTs - Municipal Exempt Receipts Liquidity Option Tender
MFH - Multi-Family Housing
PCR - Pollution Control Revenue Bonds
RAC - Revenue Anticipation Certificates
RAN - Revenue Anticipation Notes
RB - Revenue Bonds
Ref - Refunding
RN - Revenue Notes
TRAN - Tax and Revenue Anticipation Notes
VRD - Variable Rate Demand
Wts. - Warrants
</Table>
Notes to Schedule of Investments:
(a) Demand security payable upon demand by the Fund at specified time
intervals no greater than thirteen months. Interest rate is redetermined
periodically. Rate shown is the rate in effect on March 31, 2009.
(b) Principal and interest payments are fully enhanced by a letter of credit
from the bank listed or a predecessor bank, branch or subsidiary.
See accompanying Notes to Financial Statements which are an integral part of the
financial statements.
8 AIM TAX-EXEMPT CASH FUND
(c) Synthetic municipal instruments; involves the deposit into a trust of one
or more long-term tax-exempt bonds or notes ("Underlying Bonds."), a sale
of certificates evidencing interests in the trust to investors such as the
Fund. The trustee receives the long-term fixed interest payments on the
Underlying Bonds, and pays certificate holders variable rate interest
payments based upon a short-term reset periodically.
(d) Security purchased or received in a transaction exempt from registration
under the Securities Act of 1933, as amended. The security may be resold
pursuant to an exemption from registration under the 1933 Act, typically
to qualified institutional buyers. The aggregate value of these securities
at March 31, 2009 was $5,220,000, which represented 12.24% of the Fund's
Net Assets.
(e) The security is credit guaranteed, enhanced or has credit risk by a
foreign entity. The foreign credit exposure to countries other than the
United States of America (as a percentage of net assets) is summarized as
follows: United Kingdom: 12.50%; Switzerland: 5.86%; France: 5.16%; other
countries less than 5% each: 2.81%.
(f) Advance refunded; secured by an escrow fund of U.S. Government obligations
or other highly rated collateral.
(g) Security has an irrevocable call by the issuer or mandatory put by the
holder. Maturity date reflects such call or put.
(h) This table provides a listing of those entities that have either issued,
guaranteed, backed or otherwise enhanced the credit quality of more than
5% of the securities held in the portfolio. In instances where the entity
has guaranteed, backed or otherwise enhanced the credit quality of a
security, it is not primarily responsible for the issuer's obligations but
may be called upon to satisfy the issuer's obligations.
<Table>
<Caption>
ENTITIES PERCENTAGE
---------------------------------------------------------------------------------------------
JP Morgan Chase Bank, N.A. 10.93%
---------------------------------------------------------------------------------------------
SunTrust Bank 10.37
---------------------------------------------------------------------------------------------
Lloyds TSB Bank PLC 10.18
---------------------------------------------------------------------------------------------
U.S. Bank N.A. 9.38
---------------------------------------------------------------------------------------------
Wells Fargo Bank, N.A. 6.33
---------------------------------------------------------------------------------------------
UBS AG 5.86
---------------------------------------------------------------------------------------------
Citibank, N.A. 5.22
---------------------------------------------------------------------------------------------
BNP Paribas 5.16
_____________________________________________________________________________________________
=============================================================================================
</Table>
(i) Also represents cost for federal income tax purposes.
See accompanying Notes to Financial Statements which are an integral part of the
financial statements.
9 AIM TAX-EXEMPT CASH FUND
STATEMENT OF ASSETS AND LIABILITIES
March 31, 2009
<Table>
ASSETS:
Investments, at value (Cost $44,095,767) $44,095,767
- -------------------------------------------------------------------------------
Cash 67,251
- -------------------------------------------------------------------------------
Receivables for:
Investments sold 20,000
- -------------------------------------------------------------------------------
Fund shares sold 543,113
- -------------------------------------------------------------------------------
Interest 97,589
- -------------------------------------------------------------------------------
Fund expenses absorbed 5,473
- -------------------------------------------------------------------------------
Investment for trustee deferred compensation and retirement plans 26,102
- -------------------------------------------------------------------------------
Other assets 24,452
===============================================================================
Total assets 44,879,747
_______________________________________________________________________________
===============================================================================
LIABILITIES:
Payables for:
Investments purchased 304,068
- -------------------------------------------------------------------------------
Fund shares reacquired 1,851,953
- -------------------------------------------------------------------------------
Dividends 33
- -------------------------------------------------------------------------------
Accrued fees to affiliates 5,253
- -------------------------------------------------------------------------------
Accrued other operating expenses 30,456
- -------------------------------------------------------------------------------
Trustee deferred compensation and retirement plans 33,563
===============================================================================
Total liabilities 2,225,326
===============================================================================
Net assets applicable to shares outstanding $42,654,421
_______________________________________________________________________________
===============================================================================
NET ASSETS CONSIST OF:
Shares of beneficial interest $42,631,092
- -------------------------------------------------------------------------------
Undistributed net investment income 23,329
===============================================================================
$42,654,421
_______________________________________________________________________________
===============================================================================
NET ASSETS:
Class A $18,838,476
_______________________________________________________________________________
===============================================================================
Class Y $11,169,340
_______________________________________________________________________________
===============================================================================
Investor Class $12,646,605
_______________________________________________________________________________
===============================================================================
SHARES OUTSTANDING, $0.001 PAR VALUE PER SHARE, UNLIMITED NUMBER OF SHARES
AUTHORIZED:
Class A 18,852,255
_______________________________________________________________________________
===============================================================================
Class Y 11,169,363
_______________________________________________________________________________
===============================================================================
Investor Class 12,650,427
_______________________________________________________________________________
===============================================================================
Net asset value, offering and redemption price per share for
each class $ 1.00
_______________________________________________________________________________
===============================================================================
</Table>
See accompanying Notes to Financial Statements which are an integral part of the
financial statements.
10 AIM TAX-EXEMPT CASH FUND
STATEMENT OF OPERATIONS
For the year ended March 31, 2009
<Table>
INVESTMENT INCOME:
Interest $917,602
==============================================================================================
EXPENSES:
Advisory fees 158,287
- ----------------------------------------------------------------------------------------------
Administrative services fees 50,000
- ----------------------------------------------------------------------------------------------
Custodian fees 4,101
- ----------------------------------------------------------------------------------------------
Distribution fees -- Class A 62,439
- ----------------------------------------------------------------------------------------------
Transfer agent fees 54,286
- ----------------------------------------------------------------------------------------------
Trustees' and officers' fees and benefits 18,682
- ----------------------------------------------------------------------------------------------
Registration and filing fees 48,134
- ----------------------------------------------------------------------------------------------
Reports to shareholders 33,992
- ----------------------------------------------------------------------------------------------
Professional services fees 34,959
- ----------------------------------------------------------------------------------------------
Other 23,773
==============================================================================================
Total expenses 488,653
==============================================================================================
Less: Fees waived, expenses reimbursed and expense offset arrangement(s) (60,121)
==============================================================================================
Net expenses 428,532
==============================================================================================
Net investment income 489,070
==============================================================================================
Net increase in net assets resulting from operations $489,070
______________________________________________________________________________________________
==============================================================================================
</Table>
See accompanying Notes to Financial Statements which are an integral part of the
financial statements.
11 AIM TAX-EXEMPT CASH FUND
STATEMENT OF CHANGES IN NET ASSETS
For the years ended March 31, 2009 and 2008
<Table>
<Caption>
2009 2008
- --------------------------------------------------------------------------------------------------------
OPERATIONS:
Net investment income $ 489,070 $ 1,264,127
========================================================================================================
Distributions to shareholders from net investment income:
Class A (294,652) (904,833)
- --------------------------------------------------------------------------------------------------------
Class Y (39,367) --
- --------------------------------------------------------------------------------------------------------
Investor Class (155,051) (359,294)
========================================================================================================
Total distributions from net investment income (489,070) (1,264,127)
========================================================================================================
Share transactions-net:
Class A (12,952,536) (6,293,364)
- --------------------------------------------------------------------------------------------------------
Class Y 11,169,363 --
- --------------------------------------------------------------------------------------------------------
Investor Class (1,333,818) 755,614
========================================================================================================
Net increase (decrease) in net assets resulting from share
transactions (3,116,991) (5,537,750)
========================================================================================================
Net increase (decrease) in net assets (3,116,991) (5,537,750)
========================================================================================================
NET ASSETS:
Beginning of year 45,771,412 51,309,162
========================================================================================================
End of year (includes undistributed net investment income of $23,329 and
$21,911, respectively) $ 42,654,421 $45,771,412
________________________________________________________________________________________________________
========================================================================================================
</Table>
See accompanying Notes to Financial Statements which are an integral part of the
financial statements.
12 AIM TAX-EXEMPT CASH FUND
NOTES TO FINANCIAL STATEMENTS
March 31, 2009
NOTE 1--SIGNIFICANT ACCOUNTING POLICIES
AIM Tax-Exempt Cash Fund (the "Fund") is a series portfolio of AIM Tax-Exempt
Funds (the "Trust"). The Trust is a Delaware statutory trust registered under
the Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end
series management investment company consisting of three separate portfolios,
each authorized to issue an unlimited number of shares of beneficial interest.
The assets, liabilities and operations of each portfolio are accounted for
separately. Information presented in these financial statements pertains only to
the Fund. Matters affecting each portfolio or class will be voted on exclusively
by the shareholders of such portfolio or class.
The Fund's investment objective is to provide as high a level of tax-exempt
income as is consistent with the preservation of capital and maintenance of
liquidity.
The Fund currently consists of three different classes of shares: Class A,
Class Y and Investor Class. Class Y shares will generally be available to
investors who purchase through a fee-based account with an approved financial
intermediary or to any current, former or retired trustee, officer or employee
(or immediate family members of a current, former or retired trustee, director,
officer or employee) of any AIM Fund or of Invesco Ltd. or any of its
subsidiaries. Investor Class shares of the Fund are offered only to certain
grandfathered investors. Under certain circumstances, Class A shares are subject
to contingent deferred sales charges ("CDSC"). Class A, Class Y and Investor
Class shares are sold at net asset value.
The following is a summary of the significant accounting policies followed by
the Fund in the preparation of its financial statements.
A. SECURITY VALUATIONS -- The Fund's securities are recorded on the basis of
amortized cost which approximates value as permitted by Rule 2a-7 under
the 1940 Act. This method values a security at its cost on the date of
purchase and, thereafter, assumes a constant amortization to maturity of
any premiums or accretion of any discounts.
Because of the inherent uncertainties of valuation, the values reflected
in the financial statements may materially differ from the value received
upon actual sale of those investments.
B. SECURITIES TRANSACTIONS AND INVESTMENT INCOME -- Securities transactions
are accounted for on a trade date basis. Realized gains or losses on sales
are computed on the basis of specific identification of the securities
sold. Interest income, adjusted for amortization of premiums and accretion
of discounts on investments, is recorded on the accrual basis from
settlement date.
The Fund may periodically participate in litigation related to Fund
investments. As such, the Fund may receive proceeds from litigation
settlements. Any proceeds received are included in the Statement of
Operations as realized gain/loss for investments no longer held and as
unrealized gain/loss for investments still held.
Brokerage commissions and mark ups are considered transaction costs and
are recorded as an increase to the cost basis of securities purchased
and/or a reduction of proceeds on a sale of securities. Such transaction
costs are included in the determination of realized gain (loss) from
investment securities reported in the Statement of Operations and the
Statement of Changes in Net Assets and the realized net gains (losses) on
securities per share in the Financial Highlights. Transaction costs are
included in the calculation of the Fund's net asset value and,
accordingly, they reduce the Fund's total returns. These transaction costs
are not considered operating expenses and are not reflected in net
investment income reported in the Statement of Operations and Statement of
Changes in Net Assets, or the net investment income per share and ratios
of expenses and net investment income reported in the Financial
Highlights, nor are they limited by any expense limitation arrangements
between the Fund and the advisor.
The Fund allocates realized capital gains and losses to a class based on
the relative net assets of each class. The Fund allocates income to a
class based on the relative value of the settled shares of each class.
C. COUNTRY DETERMINATION -- For the purposes of making investment selection
decisions and presentation in the Schedule of Investments, the investment
advisor may determine the country in which an issuer is located and/or
credit risk exposure based on various factors. These factors include the
laws of the country under which the issuer is organized, where the issuer
maintains a principal office, the country in which the issuer derives 50%
or more of its total revenues and the country that has the primary market
for the issuer's securities, as well as other criteria. Among the other
criteria that may be evaluated for making this determination are the
country in which the issuer maintains 50% or more of its assets, the type
of security, financial guarantees and enhancements, the nature of the
collateral and the sponsor organization. Country of issuer and/or credit
risk exposure has been determined to be the United States of America,
unless otherwise noted.
D. DISTRIBUTIONS -- Distributions from income are declared daily and paid
monthly. Distributions from net realized capital gain, if any, are
generally paid annually and recorded on ex-dividend date. The Fund may
elect to treat a portion of the proceeds from redemptions as distributions
for federal income tax purposes.
E. FEDERAL INCOME TAXES -- The Fund intends to comply with the requirements
of Subchapter M of the Internal Revenue Code necessary to qualify as a
regulated investment company and to distribute substantially all of the
Fund's taxable and tax-exempt earnings to shareholders. As such, the Fund
will not be subject to federal income taxes on otherwise taxable income
(including net realized capital gain) that is distributed to shareholders.
Therefore, no provision for federal income taxes is recorded in the
financial statements.
In addition, the Fund intends to invest in such municipal securities to
allow it to qualify to pay shareholders "exempt-interest dividends", as
defined in the Internal Revenue Code.
The Fund files tax returns in the U.S. Federal jurisdiction and certain
other jurisdictions. Generally the Fund is subject to examinations by such
taxing authorities for up to three years after the filing of the return
for the tax period.
F. EXPENSES -- Fees provided for under the Rule 12b-1 plan of a particular
class of the Fund and which are directly attributable to that class are
charged to the operations of such class. All other expenses are allocated
among the classes based on relative net assets.
13 AIM TAX-EXEMPT CASH FUND
G. ACCOUNTING ESTIMATES -- The preparation of financial statements in
conformity with accounting principles generally accepted in the United
States of America requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities at the date of
the financial statements and the reported amounts of revenues and expenses
during the reporting period including estimates and assumptions related to
taxation. Actual results could differ from those estimates by a
significant amount.
H. INDEMNIFICATIONS -- Under the Trust's organizational documents, each
Trustee, officer, employee or other agent of the Trust is indemnified
against certain liabilities that may arise out of performance of their
duties to the Fund. Additionally, in the normal course of business, the
Fund enters into contracts, including the Fund's servicing agreements,
that contain a variety of indemnification clauses. The Fund's maximum
exposure under these arrangements is unknown as this would involve future
claims that may be made against the Fund that have not yet occurred. The
risk of material loss as a result of such indemnification claims is
considered remote.
I. TREASURY GUARANTEE PROGRAM -- The Board of Trustees approved the
participation of the Funds in the U.S. Department of Treasury's (the
"Treasury Department') Temporary Guarantee Program for Money Market Funds
(the "Program") as extended except as noted below. Under the Program, the
Treasury Department will guarantee shareholders in the Fund that they will
receive $1 for each Fund share held by them as of the close of business on
September 19, 2008, in the event that such Fund (in which they were
invested as of September 19, 2008) liquidates and the per share value at
the time of liquidation is less than $0.995. On April 7, 2009, the Fund's
Board approved to participate in the final extension of the Program
through September 18, 2009. The Fund will pay a fee to participate in the
Program based on a percentage of the share value of the Fund as of
September 18, 2008. The fee is paid at the time of continued participation
in the Program and allocated pro rata over the remaining term of the
extension. The Fund will bear this expense without regard to any expense
limitation currently in effect.
J. OTHER RISKS -- The value of, payment of interest on, repayment of
principal for and the ability to sell a municipal security may be affected
by constitutional amendments, legislative enactments, executive orders,
administrative regulations, voter initiatives and the economics of the
regions in which the issuers are located.
Since, many municipal securities are issued to finance similar projects,
especially those relating to education, health care, transportation and
utilities, conditions in those sectors can affect the overall municipal
securities market and a Fund's investments in municipal securities.
There is some risk that a portion or all of the interest received from
certain tax-free municipal securities could become taxable as a result of
determinations by the Internal Revenue Service.
NOTE 2--ADVISORY FEES AND OTHER FEES PAID TO AFFILIATES
The Trust has entered into a master investment advisory agreement with Invesco
Aim Advisors, Inc. (the "Advisor" or "Invesco Aim"). Under the terms of the
investment advisory agreement, the Fund pays an advisory fee to the Advisor at
the annual rate of 0.35% of the Fund's average daily net assets.
Under the terms of a master sub-advisory agreement the Advisor and each of
Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited,
Invesco Asset Management (Japan) Limited, Invesco Australia Limited, Invesco
Global Asset Management (N.A.), Inc., Invesco Hong Kong Limited, Invesco
Institutional (N.A.), Inc., Invesco Senior Secured Management, Inc. and Invesco
Trimark Ltd. (collectively, the "Affiliated Sub-Advisors") the Advisor, not the
Fund, may pay 40% of the fees paid to the Advisor to any such Affiliated Sub-
Advisor(s) that provide discretionary investment management services to the Fund
based on the percentage of assets allocated to such Sub-Advisor(s).
Invesco Aim and/or Invesco Aim Distributors, Inc., ("IADI") voluntarily waived
fees and/or reimbursed expenses in order to increase the Fund's yield. Voluntary
fee waivers and/or reimbursements may be modified at any time upon consultation
with the Board of Trustees without further notice to investors.
For the year ended March 31, 2009, Invesco Aim voluntarily waived advisory
fees of $17,206.
At the request of the Trustees of the Trust, Invesco Ltd. ("Invesco") agreed
to reimburse expenses incurred by the Fund in connection with market timing
matters in the AIM Funds, which may include legal, audit, shareholder reporting,
communications and trustee expenses. These expenses along with the related
expense reimbursement are included in the Statement of Operations. For the year
ended March 31, 2009, Invesco reimbursed expenses of the Fund in the amount of
$279.
The Trust has entered into a master administrative services agreement with
Invesco Aim pursuant to which the Fund has agreed to pay Invesco Aim for certain
administrative costs incurred in providing accounting services to the Fund. For
the year ended March 31, 2009, expenses incurred under the agreement are shown
in the Statement of Operations as administrative services fees.
The Trust has entered into a transfer agency and service agreement with
Invesco Aim Investment Services, Inc. ("IAIS") pursuant to which the Fund has
agreed to pay IAIS a fee for providing transfer agency and shareholder services
to the Fund and reimburse IAIS for certain expenses incurred by IAIS in the
course of providing such services. IAIS may make payments to intermediaries that
provide omnibus account services, sub-accounting services and/or networking
services. All fees payable by IAIS to intermediaries that provide omnibus
account services or sub-accounting are charged back to the Fund, subject to
certain limitations approved by the Trust's Board of Trustees. For the year
ended March 31, 2009, expenses incurred under the agreement are shown in the
Statement of Operations as transfer agent fees.
The Trust has entered into master distribution agreements with IADI to serve
as the distributor for the Class A, Class Y and Investor Class shares of the
Fund. The Trust has adopted plans pursuant to Rule 12b-1 under the 1940 Act with
respect to the Fund's Class A and Investor Class shares (collectively the
"Plans"). The Fund, pursuant to the Plans, pays IADI compensation up to a
maximum annual rate of 0.25% of the Fund's average daily net assets of Class A
shares. Of the Rule 12b-1 payments, up to 0.25% of the average daily net assets
of Class A shares may be paid to furnish continuing personal shareholder
services to customers who purchase and own the shares of such classes. Any
amounts not paid as a service fee under the Plans would constitute an asset-
based sales charge. Rules of the Financial Industry Regulatory Authority
("FINRA") also impose a cap on the total sales charges, including asset-based
sales charges that may be paid by any class of shares of the Fund. IADI has
contractually agreed to waive 0.15% of the Rule 12b-1 plan fees of Class A
shares through June 30, 2009.
Pursuant to the Plans, for the year ended March 31, 2009, the Class A shares
paid $20,562 after IADI contractually waived $37,463 of Plan Fees and
voluntarily waived $4,414 to increase the Fund's yield.
CDSC are not recorded as expenses of the Fund. CDSC are deducted from
redemption proceeds prior to remittance to the shareholder. During the year
ended March 31, 2009, IADI advised the Fund that IADI retained $7,526 from Class
A shares for CDSC imposed upon redemptions by shareholders.
Certain officers and trustees of the Trust are officers and directors of
Invesco Aim, IAIS and/or IADI.
14 AIM TAX-EXEMPT CASH FUND
NOTE 3--SUPPLEMENTAL INFORMATION
The Fund adopted the provisions of Statement of Financial Accounting Standards
No. 157, "Fair Value Measurements" (SFAS 157), effective with the beginning of
the Fund's fiscal year. SFAS 157 defines fair value as the price that would be
received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date. SFAS 157
establishes a hierarchy that prioritizes the inputs to valuation methods giving
the highest priority to readily available unadjusted quoted prices in an active
market for identical assets (Level 1) and the lowest priority to significant
unobservable inputs (Level 3) generally when market prices are not readily
available or are unreliable. Based on the valuation inputs, the securities or
other investments are tiered into one of three levels. Changes in valuation
methods may result in transfers in or out of an investment's assigned level:
Level 1 -- Prices are determined using quoted prices in an active market for
identical assets.
Level 2 -- Prices are determined using other significant observable inputs.
Observable inputs are inputs that other market participants may use in pricing
a security. These may include quoted prices for similar securities, interest
rates, prepayment speeds, credit risk and others.
Level 3 -- Prices are determined using significant unobservable inputs. In
situations where quoted prices or observable inputs are unavailable (for
example, when there is little or no market activity for an investment at the
end of the period), unobservable inputs may be used. Unobservable inputs
reflect the Fund's own assumptions about the factors market participants would
use in determining fair value of the securities or instruments and would be
based on the best available information.
Below is a summary of the tiered valuation input levels, as of the end of the
reporting period, March 31, 2009. The level assigned to the securities
valuations may not be an indication of the risk or liquidity associated with
investing in those securities. Because of the inherent uncertainties of
valuation, the values reflected in the financial statements may materially
differ from the value received upon actual sale of those investments.
<Table>
<Caption>
INVESTMENTS IN
INPUT LEVEL SECURITIES
- ---------------------------------------------------
Level 1 $ --
- ---------------------------------------------------
Level 2 44,095,767
- ---------------------------------------------------
Level 3 --
===================================================
$44,095,767
___________________________________________________
===================================================
</Table>
NOTE 4--SECURITY TRANSACTIONS WITH AFFILIATED FUNDS
The Fund is permitted to purchase or sell securities from or to certain other
AIM Funds under specified conditions outlined in procedures adopted by the Board
of Trustees of the Trust. The procedures have been designed to ensure that any
purchase or sale of securities by the Fund from or to another fund or portfolio
that is or could be considered an affiliate by virtue of having a common
investment advisor (or affiliated investment advisors), common Trustees and/or
common officers complies with Rule 17a-7 of the 1940 Act. Further, as defined
under the procedures, each transaction is effected at the current market price.
Pursuant to these procedures, for the year ended March 31, 2009, the Fund
engaged in securities purchases of $33,089,597 and securities sales of
$21,183,774, which resulted in net realized gains (losses) of $0.
NOTE 5--EXPENSE OFFSET ARRANGEMENT
The expense offset arrangement is comprised of transfer agency credits which
result from balances in Demand Deposit Accounts (DDA) used by the transfer agent
for clearing shareholder transactions. For the year ended March 31, 2009, the
Fund received credits from this arrangement, which resulted in the reduction of
the Fund's total expenses of $759.
NOTE 6--TRUSTEES' AND OFFICERS' FEES AND BENEFITS
"Trustees' and Officers' Fees and Benefits" include amounts accrued by the Fund
to pay remuneration to certain Trustees and Officers of the Fund. Trustees have
the option to defer compensation payable by the Fund, and "Trustees' and
Officers' Fees and Benefits" also include amounts accrued by the Fund to fund
such deferred compensation amounts. Those Trustees who defer compensation have
the option to select various AIM Funds in which their deferral accounts shall be
deemed to be invested. Finally, certain current Trustees are eligible to
participate in a retirement plan that provides for benefits to be paid upon
retirement to Trustees over a period of time based on the number of years of
service. The Fund may have certain former Trustees who also participate in a
retirement plan and receive benefits under such plan. "Trustees' and Officers'
Fees and Benefits" include amounts accrued by the Fund to fund such retirement
benefits. Obligations under the deferred compensation and retirement plans
represent unsecured claims against the general assets of the Fund.
During the year ended March 31, 2009, the Fund paid legal fees of $4,185 for
services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the
Independent Trustees. A member of that firm is a Trustee of the Trust.
NOTE 7--CASH BALANCES
The Fund is permitted temporarily to overdraft or leave balances in its account
with its custodian bank, The Bank of New York Mellon. The parties compensate one
another for any overdraft or remaining balance in the account by either earning
the interest that accrues on the overdrawn or balance amount in the account or
by paying the other party a contractually agreed upon fee.
15 AIM TAX-EXEMPT CASH FUND
NOTE 8--DISTRIBUTIONS TO SHAREHOLDERS AND TAX COMPONENTS OF NET ASSETS
TAX CHARACTER OF DISTRIBUTIONS TO SHAREHOLDERS PAID DURING THE YEARS ENDED MARCH
31, 2009 AND 2008:
<Table>
<Caption>
2009 2008
- -----------------------------------------------------------------------------------------------------
Distributions paid from ordinary income -- tax exempt $489,070 $1,264,127
_____________________________________________________________________________________________________
=====================================================================================================
</Table>
TAX COMPONENTS OF NET ASSETS AT PERIOD-END:
<Table>
<Caption>
2009
- -----------------------------------------------------------------------------------------------
Undistributed ordinary income $ 69,154
- -----------------------------------------------------------------------------------------------
Temporary book/tax differences (45,825)
- -----------------------------------------------------------------------------------------------
Shares of beneficial interest 42,631,092
===============================================================================================
Total net assets $42,654,421
_______________________________________________________________________________________________
===============================================================================================
</Table>
The temporary book/tax differences are a result of timing differences between
book and tax recognition of income and/or expenses. The Fund's temporary
book/tax differences are the result of the trustee deferral of compensation and
retirement plan benefits.
The Fund does not have a capital loss carryforward at period-end.
NOTE 9--RECLASSIFICATION OF PERMANENT DIFFERENCES
Primarily as a result of differing book/tax treatment of proxy costs, on March
31, 2009, undistributed net investment income was increased by $1,418 and shares
of beneficial interest decreased by $1,418. This reclassification had no effect
on the net assets of the Fund.
NOTE 10--SHARE INFORMATION
<Table>
<Caption>
SUMMARY OF SHARE ACTIVITY
- -------------------------------------------------------------------------------------------------------------------------
YEAR ENDED MARCH 31,
-------------------------------------------------------------
2009(a) 2008
---------------------------- ----------------------------
SHARES AMOUNT SHARES AMOUNT
- -------------------------------------------------------------------------------------------------------------------------
Sold:
Class A 49,518,290 $ 49,518,290 66,669,421 $ 66,669,421
- -------------------------------------------------------------------------------------------------------------------------
Class Y(b) 23,067,011 23,067,011 -- --
- -------------------------------------------------------------------------------------------------------------------------
Investor Class 9,681,443 9,681,443 8,550,193 8,550,193
=========================================================================================================================
Issued as reinvestment of dividends:
Class A 268,124 268,124 878,146 878,146
- -------------------------------------------------------------------------------------------------------------------------
Class Y 39,292 39,292 -- --
- -------------------------------------------------------------------------------------------------------------------------
Investor Class 148,375 148,375 347,849 347,849
=========================================================================================================================
Reacquired:
Class A(b) (62,738,950) (62,738,950) (73,840,931) (73,840,931)
- -------------------------------------------------------------------------------------------------------------------------
Class Y (11,936,940) (11,936,940) -- --
- -------------------------------------------------------------------------------------------------------------------------
Investor Class(b) (11,163,636) (11,163,636) (8,142,428) (8,142,428)
=========================================================================================================================
Net increase (decrease) in share activity (3,116,991) $ (3,116,991) (5,537,750) $ (5,537,750)
_________________________________________________________________________________________________________________________
=========================================================================================================================
</Table>
(a) There is an entity that are record owners of more than 5% of the
outstanding shares of the Fund and in the aggregate own 7% of the
outstanding shares of the Fund. The Trust has no knowledge as to whether
all or any portion of the shares owned of record by these entities are also
owned beneficially.
(b) Effective upon the commencement date of Class Y shares, October 3, 2008,
the following shares were converted from Class A and Investor Class into
Class Y shares of the Fund:
<Table>
<Caption>
CLASS SHARES AMOUNT
-------------------------------------------------------------------------------------------------------
Class Y 14,424,445 $ 14,424,445
-------------------------------------------------------------------------------------------------------
Class A (14,273,504) (14,273,504)
-------------------------------------------------------------------------------------------------------
Investor Class (150,941) (150,941)
_______________________________________________________________________________________________________
=======================================================================================================
</Table>
16 AIM TAX-EXEMPT CASH FUND
NOTE 11--FINANCIAL HIGHLIGHTS
The following schedule presents financial highlights for a share of the Fund
outstanding throughout the periods indicated.
<Table>
<Caption>
RATIO OF
EXPENSES
TO AVERAGE
NET ASSET DIVIDENDS NET ASSETS
VALUE, NET FROM NET NET ASSET NET ASSETS, WITH FEE WAIVERS
BEGINNING INVESTMENT INVESTMENT VALUE, END TOTAL END OF PERIOD AND/OR EXPENSES
OF PERIOD INCOME INCOME OF PERIOD RETURN(a) (000S OMITTED) ABSORBED
- ----------------------------------------------------------------------------------------------------------------------------
CLASS A
Year ended 03/31/09 $1.00 $0.01(b) $(0.01) $1.00 1.06% $18,838 0.98%(c)
Year ended 03/31/08 1.00 0.03 (0.03) 1.00 2.62 31,812 0.92
Year ended 03/31/07 1.00 0.03 (0.03) 1.00 2.66 38,106 1.03
Year ended 03/31/06 1.00 0.02 (0.02) 1.00 1.88 37,828 0.94
Year ended 03/31/05 1.00 0.01 (0.01) 1.00 0.72 46,914 0.80
- ----------------------------------------------------------------------------------------------------------------------------
CLASS Y
Year ended 03/31/09(d) 1.00 0.00(b) (0.00) 1.00 0.27 11,169 0.94(c)(e)
- ----------------------------------------------------------------------------------------------------------------------------
INVESTOR CLASS
Year ended 03/31/09 1.00 0.01(b) (0.01) 1.00 1.14 12,647 0.90(c)
Year ended 03/31/08 1.00 0.03 (0.03) 1.00 2.72 13,959 0.82
Year ended 03/31/07 1.00 0.03 (0.03) 1.00 2.76 13,203 0.93
Year ended 03/31/06 1.00 0.02 (0.02) 1.00 1.98 14,405 0.84
Year ended 03/31/05 1.00 0.01 (0.01) 1.00 0.82 17,215 0.70
____________________________________________________________________________________________________________________________
============================================================================================================================
<Caption>
RATIO OF
EXPENSES
TO AVERAGE NET RATIO OF NET
ASSETS WITHOUT INVESTMENT
FEE WAIVERS INCOME
AND/OR EXPENSES TO AVERAGE
ABSORBED NET ASSETS
- ----------------------------------------------------------
CLASS A
Year ended 03/31/09 1.18%(c) 1.05%(c)
Year ended 03/31/08 1.07 2.58
Year ended 03/31/07 1.19 2.62
Year ended 03/31/06 1.09 1.84
Year ended 03/31/05 1.00 0.68
- ----------------------------------------------------------
CLASS Y
Year ended 03/31/09(d) 1.01(c)(e) 1.09(c)(e)
- ----------------------------------------------------------
INVESTOR CLASS
Year ended 03/31/09 0.93(c) 1.13(c)
Year ended 03/31/08 0.82 2.68
Year ended 03/31/07 0.94 2.72
Year ended 03/31/06 0.84 1.94
Year ended 03/31/05 0.75 0.78
__________________________________________________________
==========================================================
</Table>
(a) Includes adjustments in accordance with accounting principles generally
accepted in the United States of America. Does not include sales charges
and is not annualized for periods less than one year, if applicable.
(b) Calculated using average shares outstanding.
(c) Ratios are based on average daily net assets (000's omitted) of $24,975,
$13,875 and $13,521 for Class A, Class Y, and Investor Class shares,
respectively.
(d) Commencement date of October 3, 2008.
(e) Annualized.
17 AIM TAX-EXEMPT CASH FUND
NOTE 12--LEGAL PROCEEDINGS
Terms used in the Legal Proceedings Note are defined terms solely for the
purpose of this note.
PENDING LITIGATION AND REGULATORY INQUIRIES
Civil lawsuits, including purported class action and shareholder derivative
suits, have been filed against certain of the AIM Funds, Invesco Funds Group,
Inc. ("IFG"), Invesco Aim, IADI and/or related entities and individuals alleging
that the defendants permitted improper market timing and related activity in the
AIM Funds.
These lawsuits allege as theories of recovery, depending on the lawsuit,
violations of various provisions of the Federal and state securities laws and
the Employee Retirement Income Security Act of 1974, as amended ("ERISA"),
negligence, breach of fiduciary duty and/or breach of contract. These lawsuits
seek remedies that include, depending on the lawsuit, damages, restitution,
injunctive relief, imposition of a constructive trust, removal of certain
directors and/or employees, various corrective measures under ERISA, rescission
of certain AIM Funds' advisory agreements and/or distribution plans and recovery
of all fees paid.
All lawsuits based on allegations of market timing, late trading and related
issues were transferred to the United States District Court for the District of
Maryland (the "MDL Court"). Pursuant to an Order of the MDL Court, plaintiffs in
these lawsuits consolidated their claims for pre-trial purposes into three
amended complaints against various Invesco Aim- and IFG-related parties: (i) a
Consolidated Amended Class Action Complaint purportedly brought on behalf of
shareholders of the AIM Funds; (ii) a Consolidated Amended Fund Derivative
Complaint purportedly brought on behalf of the AIM Funds and fund registrants;
and (iii) an Amended Class Action Complaint for Violations of ERISA purportedly
brought on behalf of participants in the Invesco 401(k) plan. Based on orders
issued by the MDL Court, all claims asserted against the AIM Funds that have
been transferred to the MDL Court have been dismissed, although certain Funds
remain nominal defendants in the Consolidated Amended Fund Derivative Complaint.
On January 5, 2008, the parties reached an agreement in principle to settle both
the Consolidated Amended Class Action Complaint and Consolidated Amended Fund
Derivative Complaint, subject to the MDL Court approval. Individual class
members have the right to object. On December 15, 2008, the parties reached an
agreement in principle to settle the Amended Class Action Complaint for
Violations of ERISA, subject to the MDL Court approval. Individual class members
have the right to object. No payments are required under the settlement;
however, the parties agreed that certain limited changes to benefit plans and
participants' accounts would be made.
IFG, Invesco Aim, IADI and/or related entities and individuals have received
inquiries from numerous regulators in the form of subpoenas or other oral or
written requests for information and/or documents related to one or more of the
following issues, among others, some of which concern one or more AIM Funds:
market timing activity, late trading, fair value pricing, excessive or improper
advisory and/or distribution fees, mutual fund sales practices, including
revenue sharing and directed-brokerage arrangements, investments in securities
of other registered investment companies, contractual plans, issues related to
Section 529 college savings plans and procedures for locating lost security
holders. IFG, Invesco Aim and IADI have advised the Fund that they are providing
full cooperation with respect to these inquiries. Regulatory actions and/or
additional civil lawsuits related to these or other issues may be filed against
the AIM Funds, IFG, Invesco Aim, IADI and/or related entities and individuals in
the future.
Management of Invesco Aim and the Fund believe that the outcome of the Pending
Litigation and Regulatory Inquiries described above will have no material
adverse affect on the Fund or on the ability of Invesco Aim and IADI to provide
ongoing services to the Fund.
18 AIM TAX-EXEMPT CASH FUND
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Trustees of AIM Tax-Exempt Funds
and Shareholders of AIM Tax-Exempt Cash Fund:
In our opinion, the accompanying statement of assets and liabilities, including
the schedule of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of AIM Tax-Exempt Cash Fund (one of
the funds constituting AIM Tax-Exempt Funds, hereafter referred to as the
"Fund") at March 31, 2009, the results of its operations 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 accounting principles generally accepted in the
United States of America. These financial statements and financial highlights
(hereafter referred to as "financial statements") are the responsibility of the
Fund's management. Our responsibility is to express an opinion on these
financial statements based on our audits. We conducted our audits of these
financial statements 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 are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation.
We believe that our audits, which included confirmation of securities at March
31, 2009, by correspondence with the custodian and brokers, provide a reasonable
basis for our opinion. The financial highlights for the period ended March 31,
2005 were audited by another independent registered public accounting firm whose
report, dated May 18, 2005 expressed an unqualified opinion on those financial
highlights.
PRICEWATERHOUSECOOPERS LLP
May 15, 2009
Houston, Texas
19 AIM TAX-EXEMPT CASH FUND
CALCULATING YOUR ONGOING FUND EXPENSES
EXAMPLE
As a shareholder of the Fund, you incur two types of costs: (1) transaction
costs, which may include sales charges (loads) on purchase payments or
contingent deferred sales charges on redemptions, and redemption fees, if any;
and (2) ongoing costs, including management fees; distribution and/or service
(12b-1) fees; and other Fund expenses. This example is intended to help you
understand your ongoing costs (in dollars) of investing in the Fund and to
compare these costs with ongoing costs of investing in other mutual funds. With
the exception of the actual ending account value and expenses of the Class Y
shares, the example is based on an investment of $1,000 invested at the
beginning of the period and held for the entire period October 1, 2008, through
March 31, 2009. The actual ending account and expenses of the Class Y shares in
the below example are based on an investment of $1,000 invested as of close of
business October 3, 2008 (commencement date) and held through March 31, 2009.
ACTUAL EXPENSES
The table below provides information about actual account values and actual
expenses. You may use the information in this table, together with the amount
you invested, to estimate the expenses that you paid over the period. Simply
divide your account value by $1,000 (for example, an $8,600 account value
divided by $1,000 = 8.6), then multiply the result by the number in the table
under the heading entitled "Actual Expenses Paid During Period" to estimate the
expenses you paid on your account during this period (as of close of business
October 3, 2008 through March 31, 2009 for the Class Y shares). Because the
actual ending account value and expense information in the example is not based
upon a six month period for the Class Y shares, the ending account value and
expense information may not provide a meaningful comparison to mutual funds that
provide such information for a full six month period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The table below also provides information about hypothetical account values and
hypothetical expenses based on the Fund's actual expense ratio and an assumed
rate of return of 5% per year before expenses, which is not the Fund's actual
return.
The hypothetical account values and expenses may not be used to estimate the
actual ending account balance or expenses you paid for the period. You may use
this information to compare the ongoing costs of investing in the Fund and other
funds. To do so, compare this 5% hypothetical example with the 5% hypothetical
examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transaction costs, such as sales
charges (loads) on purchase payments, contingent deferred sales charges on
redemptions, and redemption fees, if any. Therefore, the hypothetical
information is useful in comparing ongoing costs only, and will not help you
determine the relative total costs of owning different funds. In addition, if
these transaction costs were included, your costs would have been higher.
<Table>
<Caption>
- ---------------------------------------------------------------------------------------------------
HYPOTHETICAL
(5% ANNUAL RETURN BEFORE
ACTUAL EXPENSES)
------------------------------------------------------
BEGINNING ENDING EXPENSES ENDING EXPENSES ANNUALIZED
ACCOUNT VALUE ACCOUNT VALUE PAID DURING ACCOUNT VALUE PAID DURING EXPENSE
CLASS (10/01/08) (03/31/09)(1) PERIOD(2) (03/31/09) PERIOD(2,3) RATIO
- ---------------------------------------------------------------------------------------------------
A $1,000.00 $1,003.10 $4.99 $1,019.95 $5.04 1.00%
- ---------------------------------------------------------------------------------------------------
Y 1,000.00 1,002.70 4.64 1,020.24 4.73 0.94
- ---------------------------------------------------------------------------------------------------
Investor 1,000.00 1,003.30 4.69 1,020.24 4.73 0.94
- ---------------------------------------------------------------------------------------------------
</Table>
(1) The actual ending account value is based on the actual total return of the
Fund for the period October 1, 2008, through March 31, 2009 (as of close of
business October 3, 2008, through March 31, 2009 for the Class Y shares),
after actual expenses and will differ from the hypothetical ending account
value which is based on the Fund's expense ratio and a hypothetical annual
return of 5% before expenses.
(2) Expenses are equal to the Fund's annualized expense ratio as indicated above
multiplied by the average account value over the period, multiplied by
182/365 to reflect the most recent fiscal half year. For the Class Y shares
actual expenses are equal to the annualized expense ratio indicated above
multiplied by the average account value over the period, multiplied by 180
(as of close of business October 3, 2008, through March 31, 2009)/365.
Because the Class Y shares have not been in existence for a full six month
period, the actual ending account value and expense information shown may
not provide a meaningful comparison to fund expense information of classes
that show such data for a full six month period and, because the actual
ending account value and expense information in the expense example covers a
short time period, return and expense data may not be indicative of return
and expense data for longer time periods.
(3) Hypothetical expenses are equal to the annualized expense ratio indicated
above multiplied by the average account value over the period, multiplied by
182/365 to reflect a one-half year period. The hypothetical ending account
value and expenses may be used to compare ongoing costs of investing in
Class Y shares of the Fund and other funds because such data is based on a
full six month period.
20 AIM TAX-EXEMPT CASH FUND
TAX INFORMATION
Form 1099-DIV, Form 1042-S and other year-end tax information provide
shareholders with actual calendar year amounts that should be included in their
tax returns. Shareholders should consult their tax advisors.
The following distribution information is being provided as required by the
Internal Revenue Code or to meet a specific state's requirement.
The Fund designates the following amounts or, if subsequently determined to be
different, the maximum amount allowable for its fiscal year ended March 31,
2009:
<Table>
<Caption>
FEDERAL AND STATE INCOME TAX
----------------------------
Tax-Exempt Interest Dividends* 100%
</Table>
* The above percentage is based on ordinary income dividends paid to
shareholders during the Fund's fiscal year.
ADDITIONAL NON-RESIDENT ALIEN SHAREHOLDER INFORMATION
The percentages of qualifying assets not subject to the U.S. estate tax for the
fiscal quarters ended June 30, 2008, September 30, 2008, December 31, 2008 and
March 31, 2009 were 99.88%, 99.90%, 99.90%, and 99.91%, respectively.
21 AIM TAX-EXEMPT CASH FUND
TRUSTEES AND OFFICERS
The address of each trustee and officer of AIM Tax-Exempt Funds (the "Trust"),
is 11 Greenway Plaza, Suite 100, Houston, Texas 77046-1173. Each trustee
oversees 102 portfolios in the AIM Funds complex. The trustees serve for the
life of the Trust, subject to their earlier death, incapacitation, resignation,
retirement or removal as more specifically provided in the Trust's
organizational documents. Each officer serves for a one year term or until their
successors are elected and qualified. Column two below includes length of time
served with predecessor entities, if any.
<Table>
<Caption>
NAME, YEAR OF BIRTH AND TRUSTEE AND/ OTHER
POSITION(S) HELD WITH THE OR OFFICER PRINCIPAL OCCUPATION(S) DIRECTORSHIP(S)
TRUST SINCE DURING PAST 5 YEARS HELD BY TRUSTEE
- --------------------------------------------------------------------------------------------------------------------------------
INTERESTED PERSONS
- --------------------------------------------------------------------------------------------------------------------------------
Martin L. 2007 Executive Director, Chief Executive Officer and President, None
Flanagan(1) -- 1960 Invesco Ltd. (ultimate parent of Invesco Aim and a global
Trustee investment management firm); Chairman, Invesco Aim Advisors,
Inc. (registered investment advisor); Trustee, The AIM
Family of Funds--Registered Trademark--; Vice Chairman,
Investment Company Institute; and Member of Executive Board,
SMU Cox School of Business
Formerly: Director, Chairman, Chief Executive Officer and
President, IVZ Inc. (holding company), INVESCO Group
Services, Inc. (service provider) and Invesco North American
Holdings, Inc. (holding company); Director, Chief Executive
Officer and President, Invesco Holding Company Limited
(parent of Invesco Aim and a global investment management
firm); Chairman, Investment Company Institute; President,
Co-Chief Executive Officer, Co-President, Chief Operating
Officer and Chief Financial Officer, Franklin Resources,
Inc. (global investment management organization)
- --------------------------------------------------------------------------------------------------------------------------------
Philip A. Taylor(2) -- 1954 2006 Head of North American Retail and Senior Managing Director, None
Trustee, President and Invesco Ltd.; Director, Chief Executive Officer and
Principal President, Invesco Trimark Dealer Inc. (formerly AIM Mutual
Executive Officer Fund Dealer Inc.) (registered broker dealer), Invesco Aim
Advisors, Inc., and 1371 Preferred Inc. (holding company);
Director, Chairman, Chief Executive Officer and President,
Invesco Aim Management Group, Inc. (financial services
holding company) and Invesco Aim Capital Management, Inc.
(registered investment advisor); Director and President,
INVESCO Funds Group, Inc. (registered investment advisor and
register transfer agent) and AIM GP Canada Inc. (general
partner for a limited partnership); Director, Invesco Aim
Distributors, Inc. (registered broker dealer); Director and
Chairman, Invesco Aim Investment Services, Inc. (registered
transfer agent) and INVESCO Distributors, Inc. (registered
broker dealer); Director, President and Chairman, INVESCO
Inc. (holding company) and Invesco Canada Holdings Inc.
(holding company); Chief Executive Officer, AIM Trimark
Corporate Class Inc. (corporate mutual fund company) and AIM
Trimark Canada Fund Inc. (corporate mutual fund company);
Director and Chief Executive Officer, Invesco Trimark
Ltd./Invesco Trimark Ltee (formerly AIM Funds Management
Inc. d/b/a INVESCO Enterprise Services) (registered
investment advisor and registered transfer agent) and
Invesco Trimark Dealer Inc. (formerly AIM Mutual Fund Dealer
Inc.) (registered broker dealer); Trustee, President and
Principal Executive Officer of The AIM Family of Funds--
Registered Trademark-- (other than AIM Treasurer's Series
Trust and Short-Term Investments Trust); Trustee and
Executive Vice President, The AIM Family of Funds--
Registered Trademark-- (AIM Treasurer's Series Trust and
Short-Term Investments Trust only); and Manager, Invesco
PowerShares Capital Management LLC
Formerly: President, Invesco Trimark Dealer Inc.; Director
and President, AIM Trimark Corporate Class Inc. and AIM
Trimark Canada Fund Inc.; Director and President, Invesco
Trimark Ltd./Invesco Trimark Ltee (formerly AIM Funds
Management Inc. d/b/a INVESCO Enterprise Services); Senior
Managing Director, Invesco Holding Company Limited; Trustee
and Executive Vice President, Tax-Free Investments Trust;
Director and Chairman, Fund Management Company (registered
broker dealer); President and Principal Executive Officer,
The AIM Family of Funds--Registered Trademark-- (AIM
Treasurer's Series Trust, Short-Term Investments Trust and
Tax-Free Investments Trust only); President, AIM Trimark
Global Fund Inc. and AIM Trimark Canada Fund Inc.; and
Director, Trimark Trust (federally regulated Canadian Trust
Company)
- --------------------------------------------------------------------------------------------------------------------------------
INDEPENDENT TRUSTEES
- --------------------------------------------------------------------------------------------------------------------------------
Bruce L. Crockett -- 1944 1993 Chairman, Crockett Technology Associates (technology ACE Limited
Trustee and Chair consulting company) (insurance company);
Captaris, Inc.
(unified messaging
provider); and
Investment Company
Institute
- --------------------------------------------------------------------------------------------------------------------------------
Bob R. Baker -- 1936 2003 Retired None
Trustee
- --------------------------------------------------------------------------------------------------------------------------------
Frank S. Bayley -- 1939 2001 Retired
Trustee
Formerly: Partner, law firm of Baker & McKenzie; and None
Director, Badgley Funds, Inc. (registered investment
company) (2 portfolios)
- --------------------------------------------------------------------------------------------------------------------------------
James T. Bunch -- 1942 2003 Founder, Green, Manning & Bunch Ltd., (investment banking Director, Van Gilder
Trustee firm) Insurance Company,
Board of Governors,
Western Golf
Association/Evans
Scholars Foundation
and Executive
Committee, United
States Golf
Association
- --------------------------------------------------------------------------------------------------------------------------------
Albert R. Dowden -- 1941 2000 Director of a number of public and private business None
Trustee corporations, including the Boss Group Ltd. (private
investment and management); Continental Energy Services, LLC
(oil and gas pipeline service); Reich & Tang Funds
(registered investment company); Annuity and Life Re
(Holdings), Ltd. (reinsurance company), and Homeowners of
America Holding Corporation/Homeowners of America Insurance
Company (property casualty company)
Formerly: Director, CompuDyne Corporation (provider of
product and services to the public security market);
Director, President and Chief Executive Officer, Volvo Group
North America, Inc.; Senior Vice President, AB Volvo;
Director of various public and private corporations
- --------------------------------------------------------------------------------------------------------------------------------
Jack M. Fields -- 1952 1997 Chief Executive Officer, Twenty First Century Group, Inc. Administaff
Trustee (government affairs company); and Owner and Chief Executive
Officer, Dos Angelos Ranch, L.P. (cattle, hunting, corporate
entertainment)
Formerly: Chief Executive Officer, Texana Timber LP
(sustainable forestry company); and Discovery Global
Education Fund (non-profit)
- --------------------------------------------------------------------------------------------------------------------------------
Carl Frischling -- 1937 1993 Partner, law firm of Kramer Levin Naftalis and Frankel LLP Director, Reich &
Trustee Tang Funds (16
portfolios)
- --------------------------------------------------------------------------------------------------------------------------------
Prema Mathai-Davis -- 1950 1998 Retired None
Trustee
- --------------------------------------------------------------------------------------------------------------------------------
Lewis F. Pennock -- 1942 1993 Partner, law firm of Pennock & Cooper None
Trustee
- --------------------------------------------------------------------------------------------------------------------------------
Larry Soll -- 1942 2003 Retired None
Trustee
- --------------------------------------------------------------------------------------------------------------------------------
Raymond Stickel, Jr. -- 1944 2005 Retired
Trustee
Formerly: Partner, Deloitte & Touche; and Director, Mainstay None
VP Series Funds, Inc. (25 portfolios)
- --------------------------------------------------------------------------------------------------------------------------------
</Table>
(1) Mr. Flanagan is considered an interested person of the Trust because he is
an officer of the advisor to the Trust, and an officer and a director of
Invesco Ltd., ultimate parent of the advisor to the Trust.
(2) Mr. Taylor is considered an interested person of the Trust because he is an
officer and a director of the advisor to, and a director of the principal
underwriter of, the Trust.
22 AIM TAX-EXEMPT CASH FUND
TRUSTEES AND OFFICERS--(CONTINUED)
<Table>
<Caption>
NAME, YEAR OF BIRTH AND TRUSTEE AND/ OTHER
POSITION(S) HELD WITH THE OR OFFICER PRINCIPAL OCCUPATION(S) DIRECTORSHIP(S)
TRUST SINCE DURING PAST 5 YEARS HELD BY TRUSTEE
- --------------------------------------------------------------------------------------------------------------------------------
OTHER OFFICERS
- --------------------------------------------------------------------------------------------------------------------------------
Russell C. Burk -- 1958 2005 Senior Vice President and Senior Officer of The AIM Family of N/A
Senior Vice President and Funds--Registered Trademark--
Senior Officer
Formerly: Director of Compliance and Assistant General Counsel,
ICON Advisers, Inc.; Financial Consultant, Merrill Lynch; General
Counsel and Director of Compliance, ALPS Mutual Funds, Inc.
- --------------------------------------------------------------------------------------------------------------------------------
John M. Zerr -- 1962 2006 Director, Senior Vice President, Secretary and General Counsel, N/A
Senior Vice President, Chief Invesco Aim Management Group, Inc., Invesco Aim Advisors, Inc.
Legal Officer and Secretary and Invesco Aim Capital Management, Inc.; Director, Senior Vice
President and Secretary, Invesco Aim Distributors, Inc.;
Director, Vice President and Secretary, Invesco Aim Investment
Services, Inc. and INVESCO Distributors, Inc.; Director and Vice
President, INVESCO Funds Group Inc.; Senior Vice President, Chief
Legal Officer and Secretary, The AIM Family of Funds--Registered
Trademark--; and Manager, Invesco PowerShares Capital Management
LLC
Formerly: Director, Vice President and Secretary, Fund Management
Company; Vice President, Invesco Aim Capital Management, Inc.;
Chief Operating Officer, Senior Vice President, General Counsel
and Secretary, Liberty Ridge Capital, Inc. (an investment
adviser); Vice President and Secretary, PBHG Funds (an investment
company); Vice President and Secretary, PBHG Insurance Series
Fund (an investment company); Chief Operating Officer, General
Counsel and Secretary, Old Mutual Investment Partners (a broker-
dealer); General Counsel and Secretary, Old Mutual Fund Services
(an administrator); General Counsel and Secretary, Old Mutual
Shareholder Services (a shareholder servicing center); Executive
Vice President, General Counsel and Secretary, Old Mutual
Capital, Inc. (an investment adviser); and Vice President and
Secretary, Old Mutual Advisors Funds (an investment company)
- --------------------------------------------------------------------------------------------------------------------------------
Lisa O. Brinkley -- 1959 2004 Global Compliance Director, Invesco Ltd.; and Vice President, The N/A
Vice President AIM Family of Funds--Registered Trademark--
Formerly: Senior Vice President, Invesco Aim Management Group,
Inc.; Senior Vice President and Chief Compliance Officer, Invesco
Aim Advisors, Inc. and The AIM Family of Funds--Registered
Trademark--; Vice President and Chief Compliance Officer, Invesco
Aim Capital Management, Inc. and Invesco Aim Distributors, Inc.;
Vice President, Invesco Aim Investment Services, Inc. and Fund
Management Company
- --------------------------------------------------------------------------------------------------------------------------------
Kevin M. Carome -- 1956 2003 General Counsel, Secretary and Senior Managing Director, Invesco N/A
Vice President Ltd.; Director and Secretary, Invesco Holding Company Limited,
and INVESCO Funds Group, Inc.; Director and Executive Vice
President, IVZ Inc., Invesco Group Services, Inc., Invesco North
American Holdings, Inc. and Invesco Investments (Bermuda) Ltd;
and Vice President, The AIM Family of Funds--Registered
Trademark--
Formerly: Secretary, IVZ, Inc., Invesco Group Services, Inc., and
Invesco North American Holdings, Inc.; Senior Managing Director
and Secretary, Invesco Holding Company Limited; Director, Senior
Vice President, Secretary and General Counsel, Invesco Aim
Management Group, Inc. and Invesco Aim Advisors, Inc.; Senior
Vice President, Invesco Aim Distributors, Inc.; Director, General
Counsel and Vice President, Fund Management Company; Vice
President, Invesco Aim Capital Management, Inc., Invesco Aim
Investment Services, Inc., Invesco Group Services, Inc. and IVZ
Inc.; Senior Vice President, Chief Legal Officer and Secretary,
The AIM Family of Funds--Registered Trademark--; Director and
Vice President, INVESCO Distributors, Inc. and Chief Executive
Officer and President, INVESCO Funds Group, Inc.
- --------------------------------------------------------------------------------------------------------------------------------
Sheri Morris -- 1964 1999 Vice President, Treasurer and Principal Financial Officer, The N/A
Vice President, Treasurer AIM Family of Funds--Registered Trademark--; and Vice President,
and Principal Financial Invesco Aim Advisors, Inc., Invesco Aim Capital Management, Inc.
Officer and Invesco Aim Private Asset Management Inc.
Formerly: Assistant Vice President and Assistant Treasurer, The
AIM Family of Funds--Registered Trademark-- and Assistant Vice
President, Invesco Aim Advisors, Inc., Invesco Aim Capital
Management, Inc. and Invesco Aim Private Asset Management, Inc.
- --------------------------------------------------------------------------------------------------------------------------------
Karen Dunn Kelley -- 1960 1993 Head of Invesco's World Wide Fixed Income and Cash Management N/A
Vice President Group; Director of Cash Management and Senior Vice President,
Invesco Aim Advisors, Inc. and Invesco Aim Capital Management,
Inc; Executive Vice President, Invesco Aim Distributors, Inc.;
Senior Vice President, Invesco Aim Management Group, Inc.; Vice
President, The AIM Family of Funds--Registered Trademark-- (other
than AIM Treasurer's Series Trust and Short-Term Investments
Trust); and President and Principal Executive Officer, The AIM
Family of Funds--Registered Trademark-- (AIM Treasurer's Series
Trust and Short-Term Investments Trust only)
Formerly President and Principal Executive Officer, Tax-Free
Investments Trust; Director and President, Fund Management
Company; Chief Cash Management Officer and Managing Director,
Invesco Aim Capital Management, Inc.; and Vice President, Invesco
Aim Advisors, Inc. and The AIM Family of Funds--Registered
Trademark-- (AIM Treasurer's Series Trust, Short-Term Investments
Trust and Tax-Free Investments Trust only)
- --------------------------------------------------------------------------------------------------------------------------------
Lance A. Rejsek -- 1967 2005 Anti-Money Laundering Compliance Officer, Invesco Aim Advisors, N/A
Anti-Money Laundering Inc., Invesco Aim Capital Management, Inc., Invesco Aim
Compliance Officer Distributors, Inc., Invesco Aim Investment Services, Inc.,
Invesco Aim Private Asset Management, Inc. and The AIM Family of
Funds--Registered Trademark--
Formerly: Anti-Money Laundering Compliance Officer, Fund
Management Company; and Manager of the Fraud Prevention
Department, Invesco Aim Investment Services, Inc.
- --------------------------------------------------------------------------------------------------------------------------------
Todd L. Spillane -- 1958 2006 Senior Vice President, Invesco Aim Management Group, Inc.; Senior N/A
Chief Compliance Officer Vice President and Chief Compliance Officer, Invesco Aim
Advisors, Inc. and Invesco Aim Capital Management, Inc.; Chief
Compliance Officer, The AIM Family of Funds--Registered
Trademark--, Invesco Global Asset Management (N.A.), Inc.
(registered investment advisor), Invesco Institutional (N.A.),
Inc., (registered investment advisor), INVESCO Private Capital
Investments, Inc. (holding company), Invesco Private Capital,
Inc. (registered investment advisor) and Invesco Senior Secured
Management, Inc. (registered investment advisor); and Vice
President, Invesco Aim Distributors, Inc. and Invesco Aim
Investment Services, Inc.
Formerly: Vice President, Invesco Aim Capital Management, Inc.
and Fund Management Company; and Global Head of Product
Development, AIG-Global Investment Group, Inc.
- --------------------------------------------------------------------------------------------------------------------------------
</Table>
The Statement of Additional Information of the Trust includes additional
information about the Fund's Trustees and is available upon request, without
charge, by calling 1.800.959.4246.
Please refer to the Fund's prospectus for information on the Fund's sub-
advisors.
<Table>
OFFICE OF THE FUND INVESTMENT ADVISOR DISTRIBUTOR AUDITORS
11 Greenway Plaza Invesco Aim Advisors, Invesco Aim Distributors, PricewaterhouseCoopers
Suite 100 Inc. Inc. LLP
Houston, TX 77046-1173 11 Greenway Plaza 11 Greenway Plaza 1201 Louisiana Street
Suite 100 Suite 100 Suite 2900
Houston, TX 77046-1173 Houston, TX 77046-1173 Houston, TX 77002-5678
COUNSEL TO THE FUND COUNSEL TO THE TRANSFER AGENT CUSTODIAN
Stradley Ronon Stevens INDEPENDENT TRUSTEES Invesco Aim Investment The Bank of New York
& Young, LLP Kramer, Levin, Naftalis & Services, Inc. Mellon
2600 One Commerce Square Frankel LLP P.O. Box 4739 2 Hanson Place
Philadelphia, PA 19103 1177 Avenue of the Houston, TX 77210-4739 Brooklyn, NY 11217-1431
Americas
New York, NY 10036-2714
23 AIM TAX-EXEMPT CASH FUND
[GO PAPERLESS
GRAPHIC]
====================================================================================================================================
GO PAPERLESS WITH EDELIVERY
Visit invescoaim.com/edelivery to receive quarterly statements, tax forms, fund reports and prospectuses with a service that's all
about eeees:
- - ENVIRONMENTALLY FRIENDLY. Go green by reducing the - EFFICIENT. Stop waiting for regular mail. Your documents
number of trees used to produce paper. will be sent via email as soon as they're available.
- - ECONOMICAL. Help reduce your fund's printing and delivery - EASY. Download, save and print files using your home computer
expenses and put more capital back in your fund's returns. with a few clicks of your mouse.
This service is provided by Invesco Aim Investment Services, Inc.
====================================================================================================================================
FUND HOLDINGS AND PROXY VOTING INFORMATION
The Fund provides a complete list of its holdings four times in each fiscal year, at the quarter-ends. For the second and fourth
quarters, the lists appear in the Fund's semiannual and annual reports to shareholders. For the first and third quarters, the Fund
files the lists with the Securities and Exchange Commission (SEC) on Form N-Q. The most recent list of portfolio holdings is
available at invescoaim.com. From our home page, click on Products & Performance, then Mutual Funds, then Fund Overview. Select your
Fund from the drop-down menu and click on Complete Quarterly Holdings. Shareholders can also look up the Fund's Forms N-Q on the SEC
website at sec.gov. Copies of the Fund's Forms N-Q may be reviewed and copied at the SEC Public Reference Room in Washington, D.C.
You can obtain information on the operation of the Public Reference Room, including information about duplicating fee charges, by
calling 202 942 8090 or 800 732 0330, or by electronic request at the following email address: publicinfo@sec.gov. The SEC file
numbers for the Fund are 811-07890 and 033-66242.
A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities
is available without charge, upon request, from our Client Services department at 800 959 4246 or on the Invesco Aim website,
invescoaim.com. On the home page, scroll down and click on Proxy Policy. The information is also available on the SEC website,
sec.gov.
Information regarding how the Fund voted proxies related to its portfolio securities during the 12 months ended June 30, 2008, is
available at our website. Go to invescoaim.com, access the About Us tab, click on Required Notices and then click on Proxy Voting
Activity. Next, select the Fund from the drop-down menu. The information is also available on the SEC website, sec.gov.
If used after July 20, 2009, this report must be accompanied by a Fund fact sheet or Invesco Aim Quarterly Performance Review for
the most recent quarter-end. Invesco Aim--SERVICE MARK-- is a service mark of Invesco Aim Management Group, Inc. Invesco Aim
Advisors, Inc., Invesco Aim Capital Management, Inc., Invesco Aim Private Asset Management, Inc. and Invesco
PowerShares Capital Management LLC are the investment advisors for the products and services represented by
Invesco Aim; they each provide investment advisory services to individual and institutional clients and do
not sell securities. Please refer to each fund's prospectus for information on the fund's subadvisors.
Invesco Aim Distributors, Inc. is the U.S. distributor for the retail mutual funds, exchangetraded funds
and institutional money market funds and the subdistributor for the STIC Global Funds represented by
Invesco Aim. All entities are indirect, wholly owned subsidiaries of Invesco Ltd. [INVESCO AIM LOGO]
- SERVICE MARK -
It is anticipated that on or about the end of the fourth quarter of 2009, Invesco Aim Advisors, Inc.,
Invesco Aim Capital Management, Inc., Invesco Private Asset Management, Inc. and Invesco Global Asset
Management (N.A.), Inc. will be merged into Invesco Institutional (N.A.), Inc., and the consolidated
adviser firm will be renamed Invesco Advisers, Inc. Additional information will be posted at invescoaim.com
on or about the end of the fourth quarter of 2009.
invescoaim.com TEC-AR-1 Invesco Aim Distributors, Inc.
[INVESCO AIM LOGO] AIM TAX-FREE INTERMEDIATE FUND
--SERVICE MARK-- Annual Report to Shareholders o March 31, 2009
[MOUNTAIN GRAPHIC]
2 Letters to Shareholders
4 Performance Summary
4 Management Discussion
6 Long-Term Fund Performance
8 Supplemental Information
9 Schedule of Investments
20 Financial Statements
23 Notes to Financial Statements
28 Financial Highlights
30 Auditor's Report
31 Fund Expenses
32 Tax Information
33 Trustees and Officers
Supplement to Annual Report dated 3/31/09
AIM TAX-FREE INTERMEDIATE FUND
==========================================
INSTITUTIONAL CLASS SHARES AVERAGE ANNUAL TOTAL RETURNS Please note that past performance is
For periods ended 3/31/09 not indicative of future results. More
The following information has been recent returns may be more or less than
prepared to provide Institutional Class 10 Years 4.03% those shown. All returns assume
shareholders with a performance overview 5 Years 2.80 reinvestment of distributions at NAV.
specific to their holdings. Institutional 1 Year 4.28 Investment return and principal value will
Class shares are offered exclusively to ========================================== fluctuate so your shares, when redeemed,
institutional investors, including defined may be worth more or less than their
contribution plans that meet certain Institutional Class shares' inception date original cost. See full report for
criteria. is July 30, 2004. Returns since that date information on comparative benchmarks.
are historical returns. All other returns Please consult your Fund prospectus for
are blended returns of historical more information. For the most current
Institutional Class share performance and month-end performance, please call 800 451
restated Class A share performance (for 4246 or visit invescoaim.com.
periods prior to the inception date of
Institutional Class shares) at net asset
value (NAV) and reflect the Rule 12b-1
fees applicable to Class A shares. Class A
shares' inception date is May 11, 1987.
Institutional Class shares have no
sales charge; therefore, performance is at
NAV. Performance of Institutional Class
shares will differ from performance of
other share classes primarily due to
differing sales charges and class
expenses.
The total annual Fund operating expense
ratio set forth in the most recent Fund
prospectus as of the date of this
supplement for Institutional Class shares
was 0.53%. The expense ratios presented
above may vary from the expense ratios
presented in other sections of the actual
report that are based on expenses incurred
during the period covered by the report.
==========================================
NASDAQ SYMBOL ATFIX
==========================================
Over for information on your Fund's expenses.
THIS SUPPLEMENT MUST BE ACCOMPANIED OR PRECEDED BY A CURRENTLY EFFECTIVE FUND
PROSPECTUS, WHICH CONTAINS MORE COMPLETE INFORMATION, INCLUDING SALES CHARGES AND
EXPENSES. INVESTORS SHOULD READ IT CAREFULLY BEFORE INVESTING.
FOR INSTITUTIONAL INVESTOR USE ONLY
[INVESCO AIM LOGO]
This material is for institutional investor use only and may not be quoted, reproduced - SERVICE MARK -
or shown to the public, nor used in written form as sales literature for public use.
invescoaim.com TFI-INS-1 Invesco Aim Distributors, Inc.
CALCULATING YOUR ONGOING FUND EXPENSES
EXAMPLE
As a shareholder of the Fund, you incur ongoing costs, including management fees
and other Fund expenses. This example is intended to help you understand your
ongoing costs (in dollars) of investing in the Fund and to compare these costs
with ongoing costs of investing in other mutual funds. The example is based on
an investment of $1,000 invested at the beginning of the period and held for the
entire period October 1, 2008, through March 31, 2009.
ACTUAL EXPENSES
The table below provides information about actual account values and actual
expenses. You may use the information in this table, together with the amount
you invested, to estimate the expenses that you paid over the period. Simply
divide your account value by $1,000 (for example, an $8,600 account value
divided by $1,000 = 8.6), then multiply the result by the number in the table
under the heading entitled "Actual Expenses Paid During Period" to estimate the
expenses you paid on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The table below also provides information about hypothetical account values and
hypothetical expenses based on the Fund's actual expense ratio and an assumed
rate of return of 5% per year before expenses, which is not the Fund's actual
return.
The hypothetical account values and expenses may not be used to estimate the
actual ending account balance or expenses you paid for the period. You may use
this information to compare the ongoing costs of investing in the Fund and other
funds. To do so, compare this 5% hypothetical example with the 5% hypothetical
examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only. Therefore, the hypothetical information is useful in
comparing ongoing costs only, and will not help you determine the relative total
costs of owning different funds.
<Table>
<Caption>
- -----------------------------------------------------------------------------------------------------------
HYPOTHETICAL
(5% ANNUAL RETURN BEFORE
ACTUAL EXPENSES)
------------------------------------------------------
BEGINNING ENDING EXPENSES ENDING EXPENSES ANNUALIZED
ACCOUNT VALUE ACCOUNT VALUE PAID DURING ACCOUNT VALUE PAID DURING EXPENSE
CLASS (10/01/08) (03/31/09)(1) PERIOD(2) (03/31/09) PERIOD(2) RATIO
- -----------------------------------------------------------------------------------------------------------
Institutional $1,000.00 $1,049.50 $2.55 $1,022.44 $2.52 0.50%
- -----------------------------------------------------------------------------------------------------------
</Table>
(1) The actual ending account value is based on the actual total return of the
Fund for the period October 1, 2008, through March 31, 2009, after actual
expenses and will differ from the hypothetical ending account value which is
based on the Fund's expense ratio and a hypothetical annual return of 5%
before expenses.
(2) Expenses are equal to the Fund's annualized expense ratio as indicated above
multiplied by the average account value over the period, multiplied by
182/365 to reflect the most recent fiscal half year.
AIM TAX-FREE INTERMEDIATE FUND
Dear Shareholders:
The past year was difficult to say the least for virtually all investors. Market indexes in the U.S. and around
the globe nosedived in 2008, and the vast majority of us have seen sharp declines in the value of our
[TAYLOR investments. As I write this letter, "market experts" remain divided on the outlook for the market. While some
PHOTO] argue the worst of the decline is over, others say we have farther to fall. There is widespread agreement,
however, that markets are likely to remain volatile for some time to come.
We've all read about subprime lending, government bailouts and investment scandals -- but we know that as
individuals, we have little control over such matters. Rather, I'd like to discuss with you actions you may have
Philip Taylor already taken, or can take now, that may benefit you going forward.
BOOMS AND BUSTS
Recent history should have reminded all of us that investor sentiment can be fickle. The technology-driven bull
market of the late 1990s gave way to a sharp decline from 2000 to 2002 when the "tech bubble" burst. More
recently, the 2003 to 2007 bull market, driven largely by financial stocks and a housing boom, among other factors, gave way to the
current market decline when the "housing bubble" burst.
These market downturns hurt nearly all investors. But they were particularly painful for investors who, seeking high,
short-term returns, abandoned their long-term, diversified investment plans and decided to chase performance -- i.e., allocate a
large portion of their assets into the "hot" investments du jour. Many of those investors discovered they had unwittingly bought at
the top of the market, and they saw the value of their assets decline significantly as market leadership changed. History has shown
that seeking the highest short-term returns possible has often led to long-term disappointment.
This is why we believe investors should work with their financial advisors to devise a goal-based financial strategy -- a
long-term plan with a reasonable prospect of achieving predetermined financial goals in line with individual risk tolerance. Such a
strategy cannot guarantee a profit or protect against loss in a declining market, but it may help investors avoid emotion-driven,
short-term investment mistakes.
WHAT TO DO NOW
None of us can control the markets, but we can control our own reaction to the unsettling volatility we're currently experiencing.
Here are some steps that may help position you for whatever the market brings next:
o REVISIT YOUR GOALS. Work with your financial advisor to create specific, concrete investment goals consistent with your
risk tolerance. Scared by market volatility, many investors fled to cash in recent months. While that may be entirely
appropriate for investors approaching retirement, other investors may need the growth potential of equities to achieve
their long-term goals. Your financial advisor can suggest investments that match your goals and risk tolerance.
o RESIST LOOKING OVER THE FENCE. Every investor's needs, goals and risk tolerance are different. Your neighbor's,
co-worker's or relative's investments have no relevance to yours because their circumstances, goals and risk tolerances
are as individual as yours.
o LET LOGIC BE YOUR GUIDE. Market volatility is a fact of life for investors. Market declines can be painful, but
historically they haven't proved permanent. Your financial advisor can help you approach your investment plan logically,
not emotionally.
WHAT WE'RE DOING
Invesco Aim has worked on behalf of investors in both bull markets and bear markets. That is why we're committed to good
stewardship, good communication and sound investment management.
To be good stewards, we've established best practice risk-management and investment oversight processes, further enhancing our
compliance oversight and our transparency to our shareholders and our independent fund board.
To be good communicators, we've revamped our website to put Investment Perspectives front and center on the home page of
invescoaim.com and on your account balance page. Our chief investment officers, portfolio managers and I are eager to communicate
with you directly about your investments, market conditions and other topics that may be helpful to you.
To be good investment managers, we've focused on doing one thing well: managing your money. At Invesco Aim, managing your money
is all we do. We believe mutual funds should have well-defined, clearly articulated and repeatable investment strategies. Our funds
have stayed true to their investment strategies even during this current period of market volatility.
CONTACT US
If you have questions about this report or your account, please contact one of our client service representatives at 800 959 4246.
I also invite you to visit invescoaim.com, where you can check on your individual account, obtain long-term performance
information for your fund and read market commentaries from our investment professionals.
As always, I welcome your comments and questions. Please contact me at phil@invescoaim.com and let me know what's on your mind.
Thank you for investing with us. All of us at Invesco Aim look forward to serving you.
Sincerely,
/s/ PHILIP TAYLOR
Philip Taylor
Senior Managing Director, Invesco Ltd.
CEO, Invesco Aim
2 AIM TAX-FREE INTERMEDIATE FUND
Dear Fellow Shareholders:
Since my last letter, continuing troubles in the global economy and financial markets have negatively affected
all investors. The new government promises to move quickly with a stimulus package, yet considerable anxiety
[CROCKETT remains about how, when and what kind of a recovery will occur. However, mutual funds generally are more
PHOTO] diversified than other investments; as shareholders we invest not in a single security but in a portfolio of
multiple securities. The benefits of diversification have been reiterated by the stories of investors who "lost
everything" because they had too many of their assets in one place, whether that place was a single money
Bruce Crockett manager or their employer's stock. Mutual fund investors also have the opportunity to diversify further among
different types of funds that each deploy a different strategy and focus on different kinds of securities. These
include conservatively managed money market funds, which, relative to other securities, continue to offer a more
safe, liquid, and convenient way to invest short-term assets.
In addition to diversification, investing discipline is essential during challenging times such as these. Strategies such as
dollar cost averaging, where individuals invest a consistent amount at regular intervals, can help investors acquire more fund
shares when prices are low. Periodic rebalancing of asset allocation plans achieves the same effect. "Buy low, sell high" has long
been the mantra of investment success, but the advice is not always easy to follow because it requires the discipline to resist
prevailing trends. Of course, investment strategies, such as dollar cost averaging and portfolio rebalancing do not guarantee a
profit or eliminate the risk of loss. Investors should consider their ability to continue investing regardless of fluctuating
security prices.
A long-term view is also important, particularly for assets that are not needed right away. In the past, it has often proven
better to keep long-term assets invested through a downturn than to miss the beginning of the upward trend. To develop a diversified
and disciplined investing plan that is right for your individual goals, I encourage you to consult an experienced and trustworthy
investment professional who has the knowledge and the tools to help you establish and implement the plan, monitor its results and
adapt it to changing goals and circumstances.
Even when working with a personal financial advisor, investors should supplement the relationship with their own knowledge and
awareness of the investments they hold. Visit the Invesco Aim website at invescoaim.com regularly to find out what is happening in
your AIM funds and to read timely market commentary from Invesco Aim management, strategists and portfolio managers. The site's
"Education and Planning" section can also help you clarify basic investment concepts, learn how to choose a financial advisor,
evaluate different investment choices and make more informed investment decisions. Invesco Aim's redesigned public home page
recently received a Gold Award for its user-friendly navigation and graphics from The Mutual Funds Monitor Awards, sponsored by
Corporate Insight.
As always, your Board of Trustees and Invesco Aim are committed to putting your interests first by controlling costs,
monitoring investment performance and streamlining the investment management process during these difficult times. Your Board has
already begun the annual review and management contract renewal process with the continuing goal of making AIM funds one of the best
and most cost-effective ways for you to invest your hard-earned money.
While the investing climate may remain uncertain for a while, economies and markets are dynamic, and no stage is ever
permanent. Please feel free to contact me in writing with your questions or concerns. You can send an email to me at
bruce@brucecrockett.com.
Best regards,
/s/ BRUCE L. CROCKETT
Bruce L. Crockett
Independent Chair
AIM Funds Board of Trustees
3 AIM TAX-FREE INTERMEDIATE FUND
MANAGEMENT'S DISCUSSION OF FUND PERFORMANCE
======================================================================================= bonds. We also prefer to invest in insured
municipal bonds, which offer competitive
PERFORMANCE SUMMARY yields with greater safety and liquidity
than similar uninsured municipal bonds.
For the fiscal year ended March 31, 2009, Class A shares of AIM Tax-Free Intermediate
Fund, at net asset value, outperformed the Fund's broad market index, the Barclays We typically purchase and hold
Capital Municipal Bond Index, and underperformed its style-specific index, the Merrill municipal bonds to maturity to avoid
Lynch 3-7 Year Municipal Index.(triangle) The Fund underperformed its style-specific selling-related capital gains. However,
index primarily due to exposure to longer maturity bonds. there are times when we will sell
securities based on the following factors:
Your Fund's long-term performance appears later in this report.
o A downgrade in credit quality
FUND VS. INDEXES
o A decision to shorten or lengthen the
Total returns, 3/31/08 to 3/31/09, at net asset value (NAV). Performance shown does not Fund's duration
include applicable contingent deferred sales charges (CDSC) or front-end sales charges,
which would have reduced performance. o A decision to limit or reduce the
Fund's exposure to a particular
Class A Shares 4.44% sector or issuer
Class A3 Shares 4.18
Class Y Shares* 4.42 MARKET CONDITIONS AND YOUR FUND
Barclays Capital Municipal Bond Index(triangle) (Broad Market Index)** 2.27
Merrill Lynch 3-7 Year Municipal Index(triangle) (Style-Specific Index) 6.08 Real gross domestic product (GDP), the
Lipper Intermediate Municipal Debt Funds Index(triangle) (Peer Group Index) 1.12 broadest measure of the nation's economic
activity, declined at an annual rate of
(triangle)Lipper Inc. 6.3% in the fourth quarter of 2008.(1) For
all of 2008, GDP grew at 1.1% compared to
*Share class incepted during the fiscal year. See page 7 for a detailed explanation of 2.0% in 2007.(1) Driving the continued
Fund performance. economic contraction was an increase in
the unemployment rate which led to a sharp
**Effective 11/03/08, Lehman Brothers indexes were rebranded as Barclays Capital decline in personal expenditures.
indexes.
======================================================================================= In response to general economic
concerns and the severity of the
HOW WE INVEST contraction in credit and housing markets,
the U.S. Federal Reserve (the Fed) cut its
We believe that an actively managed with shorter durations are generally less federal funds target rate over the last 12
portfolio of municipal bonds can provide a sensitive to interest rate changes than months from 2.25% to a range of zero to
steady stream of tax-exempt income while those with longer durations. 0.25%.(2) As reductions to this level
seeking to protect principal. Through essentially removed interest rate
active management, we strive to avoid Effective July 20, 2006, the Fund's reductions as a policy tool, the Fed
capital gains and ordinary income, which investment strategies were modified to announced plans in March to begin direct
are taxable to shareholders, while reflect our need for further purchases of U.S. Treasury and mortgage
providing competitive income in all market diversification of managed assets by securities.
environments. investing in BBB-rated or equivalent
municipal bonds as well as investing up to U.S. Treasury yields declined over
We invest primarily in municipal 20% of the Fund's total net assets in the fiscal year consistent with interest
bonds, which include revenue and general below-investment-grade issues. Finally, rate reductions and an investor flight to
obligation bonds. The Fund is permitted to the Fund does not invest in bonds that pay quality. The drop in yields was most
purchase bonds of different maturity interest subject to the alternative
structures to better capitalize on minimum tax (AMT).
movements of interest rates and to manage
effectively its duration for preservation We generally invest in revenue bonds,
of capital purposes. Duration is a measure which are municipal bonds issued to
of a bond's sensitivity to interest rate finance specific public works, such as
changes. Bonds and bond mutual funds bridges or sewer systems. Proceeds
generated by those specific projects are
used to pay interest and principal on the
========================================== =======================================================================================
PORTFOLIO COMPOSITION TOP FIVE FIXED INCOME HOLDINGS*
By credit quality rating
AAA 40.0% % OF
AA 30.8 COUPON MATURITY NET ASSETS
A 26.3 ------ -------- ----------
BBB 2.9 1. Energy Northwest 5.50% 7/1/11 2.2%
========================================== 2. New Jersey (State of)
Source: S&P, Moody's, Fitch: This table is Transportation Trust Fund Authority 5.50 6/15/10 2.0
calculated based on the highest rating 3. Washington (State of) 4.75 4/1/11 1.5
assigned by one of these agencies to an 4. Houston (City of) Convention &
individual security. Entertainment Facilities Department 5.50 9/11/11 1.2
========================================== 5. Burke (County of) Development Authority 3.75 1/12/12 1.1
Total Net Assets $373.1 million =======================================================================================
The Fund's holdings are subject to change, and there is no assurance that the Fund
Total Number of Holdings* 246 will continue to hold any particular security.
==========================================
* Excluding cash equivalent holdings.
4 AIM TAX-FREE INTERMEDIATE FUND
pronounced in the fourth quarter of 2008 downward price pressures during the fourth RICHARD BERRY
as demand for the safety of Treasuries quarter of 2008, as investors sought Chartered Financial
increased as world markets declined. While liquidity by selling municipal bond Analyst, senior portfolio
markets continued their sell off into holdings. Further, exposure to health care [BERRY manager, is co-manager of
2009, Treasury investors grew concerned bonds hurt performance as increased PHOTO] AIM Tax Free Intermediate
over steep increases in debt levels and issuance and economic factors weighed on Fund. Mr. Berry joined
the potential for rising inflation. The the sector. Invesco Aim in 1987 and has been in the
fiscal year closed with Treasuries investment industry since 1968. He has
retracing some of the gains made earlier The Fund's portfolio was highly served as president and director of the
in the reporting period. diversified across industry segments. Dallas Association of Investment Analysts,
However, our allocation to revenue bonds chairman of the board of regents of the
Relative to Treasuries, municipal was an overall detractor from performance. Financial Analysts Seminar and a trustee
bond yields increased their relative yield One bright spot was electric utilities of Lancaster Independent School District.
advantage during the fiscal year. On March which were among the best performing He earned his B.B.A. and M.B.A. from Texas
31, 2008, five-year investment-grade groups in the revenue bond sector. Christian University.
general obligation municipal bonds yielded Exposure to pre-refunded issues helped
2.92%, which was 0.20% more than the performance as these bonds tend to carry a STEPHEN TURMAN
comparable Treasury note.(3,4) As of March credit rating of AAA, and they performed Chartered Financial
31, 2009, five-year investment-grade well during the reporting period. Analyst, senior portfolio
general obligation municipal bonds yielded [TURMAN manager, is co-manager of
2.07%, which was 0.25% more than the At the state level, Texas bonds had PHOTO] AIM Tax Free Intermediate
comparable Treasury security.(3,4) the largest weight in the portfolio. Fund. Mr. Turman began
Tax-exempt bonds of Texas were among the his career in the investment business in
Within the municipal bond market, top state-specific performers and 1983 and joined Invesco Aim as a trader in
intermediate- and short-maturity bonds benefited from the relative strength of 1985. Prior to joining Invesco Aim, he
outperformed long-maturity issues as the the Texas economy. Our allocation to Texas worked in institutional sales. Mr. Turman
municipal yield curve declined less on the was an absolute and relative contributor earned a B.B.A. in finance from The
long end than on the short end. General to performance. University of Texas at Arlington.
obligation bonds outperformed revenue
bonds as declines in housing and hospital We appreciate your continued
segments negatively affected the revenue participation in AIM Tax-Free Intermediate
bond sector. Pre-refunded bonds were Fund.
generally strong performers as their
higher quality ratings and shorter 1 Bureau of Economic Analysis
maturities attracted investors seeking 2 U.S. Federal Reserve
safety. In the last quarter of the fiscal 3 Barclays Capital
year, revenue bonds outperformed general 4 Merrill Lynch
obligation bonds as the economic recession
weighed further on the budget outlook for The views and opinions expressed in
certain states. management's discussion of Fund
performance are those of Invesco Aim
Throughout this reporting period, we Advisors, Inc. These views and opinions
continued to emphasize thorough credit are subject to change at any time based on
research and analysis of the underlying factors such as market and economic
credit quality which helped us build a conditions. These views and opinions may
portfolio of high-quality municipal bonds. not be relied upon as investment advice or
Consequently, the Fund experienced no recommendations, or as an offer for a
adverse credit events and had an AA particular security. The information is
average credit rating as of the close of not a complete analysis of every aspect of
the reporting period. In this environment any market, country, industry, security or
of increased risk aversion, higher rated the Fund. Statements of fact are from
tax-exempt issues outperformed lower sources considered reliable, but Invesco
quality municipal bonds, which contributed Aim Advisors, Inc. makes no representation
positively to Fund performance. or warranty as to their completeness or
accuracy. Although historical performance
Our underperformance relative to our is no guarantee of future results, these
style-specific index was primarily due to insights may help you understand our
our results in the third quarter of 2008. investment management philosophy.
Exposure to longer maturity bonds was the
primary detractor. Additionally, an See important Fund and index disclosures
unusual amount of liquidations occurred in later in this report.
the municipal bond market, creating
5 AIM TAX-FREE INTERMEDIATE FUND
YOUR FUND'S LONG-TERM PERFORMANCE
Past performance cannot guarantee This chart, which is a logarithmic
comparable future results. chart, presents the fluctuations in the
value of the Fund and its indexes. We
The data shown in the chart include believe that a logarithmic chart is more
reinvested distributions, applicable sales effective than other types of charts in
charges and Fund expenses including illustrating changes in value during the
management fees. Index results include early years shown in the chart. The
reinvested dividends, but they do not vertical axis, the one that indicates the
reflect sales charges. Performance of an dollar value of an investment, is
index of funds reflects fund expenses and constructed with each segment representing
management fees; performance of a market a percent change in the value of the
index does not. investment. In this chart, each segment
represents a doubling, or 100% change, in
Performance shown in the chart and the value of the investment. In other
table(s) does not reflect deduction of words, the space between $10,000 and
taxes a shareholder would pay on Fund $20,000 is the same size as the space
distributions or sale of Fund shares. between $20,000 and $40,000, and so on.
6 AIM TAX-FREE INTERMEDIATE FUND
AIM TAX-FREE INTERMEDIATE FUND
===============================================================================================
[MOUNTAIN CHART]
RESULTS OF A $10,000 INVESTMENT -- OLDEST SHARE CLASS WITH SALES CHARGES SINCE INCEPTION
Index data from 4/30/87, Fund data from 5/11/87
AIM LIPPER
TAX-FREE BARCLAYS INTERMEDIATE
INTERMEDIATE FUND- CAPITAL MUNICIPAL MUNICIPAL DEBT
DATE CLASS A SHARES BOND INDEX(1) FUNDS INDEX(1)
- ------- ------------------ ----------------- --------------
4/30/87 $10000 $10000
5/87 $ 9813 9950 9978
6/87 9896 10243 10180
7/87 9993 10347 10304
8/87 9958 10370 10318
9/87 9694 9988 9998
10/87 9746 10023 10028
11/87 9853 10285 10243
12/87 10052 10434 10390
1/88 10284 10806 10711
2/88 10416 10920 10765
3/88 10308 10793 10665
4/88 10346 10875 10718
5/88 10303 10844 10713
6/88 10387 11002 10802
7/88 10483 11074 10856
8/88 10442 11084 10863
9/88 10596 11284 10994
10/88 10691 11483 11132
11/88 10615 11378 11062
12/88 10709 11495 11151
1/89 10862 11732 11284
2/89 10772 11598 11214
3/89 10746 11571 11182
4/89 10945 11846 11374
5/89 10971 12091 11551
6/89 11195 12256 11681
7/89 11312 12423 11821
8/89 11225 12301 11761
9/89 11183 12264 11738
10/89 11320 12414 11843
11/89 11397 12631 11998
12/89 11614 12735 12103
1/90 11590 12675 12057
2/90 11681 12788 12161
3/90 11670 12791 12162
4/90 11671 12699 12074
5/90 11815 12976 12301
6/90 11902 13090 12401
7/90 11999 13283 12564
8/90 12002 13090 12451
9/90 12023 13098 12494
10/90 12173 13336 12659
11/90 12314 13604 12862
12/90 12378 13663 12912
1/91 12505 13846 13065
2/91 12627 13967 13172
3/91 12644 13972 13192
4/91 12750 14158 13348
5/91 12835 14284 13439
6/91 12847 14270 13429
===============================================================================================
(1) Lipper Inc.
===============================================================================================
[MOUNTAIN CHART]
7/91 12953 14444 13571
8/91 13104 14634 13717
9/91 13218 14825 13871
10/91 13326 14958 13993
11/91 13383 15000 14031
12/91 13599 15322 14311
1/92 13664 15357 14349
2/92 13722 15362 14363
3/92 13705 15368 14335
4/92 13808 15504 14448
5/92 13942 15687 14606
6/92 14113 15950 14810
7/92 14475 16428 15226
8/92 14372 16268 15073
9/92 14458 16374 15162
10/92 14367 16213 15025
11/92 14551 16504 15278
12/92 14682 16672 15413
1/93 14842 16866 15591
2/93 15213 17476 16059
3/93 15074 17291 15876
4/93 15186 17466 16004
5/93 15242 17564 16057
6/93 15427 17857 16275
7/93 15399 17880 16269
8/93 15641 18253 16558
9/93 15827 18461 16747
10/93 15855 18497 16774
11/93 15798 18333 16671
12/93 16008 18720 16945
1/94 16168 18934 17119
2/94 15892 18444 16756
3/94 15599 17693 16286
4/94 15688 17843 16355
5/94 15792 17997 16484
6/94 15762 17887 16436
7/94 15910 18215 16641
8/94 15969 18278 16705
9/94 15864 18010 16533
10/94 15759 17691 16351
11/94 15639 17370 16108
12/94 15780 17753 16348
1/95 16007 18260 16665
2/95 16266 18791 17011
3/95 16405 19007 17162
4/95 16482 19030 17199
5/95 16760 19637 17602
6/95 16730 19465 17547
7/95 16874 19649 17707
8/95 17002 19899 17880
9/95 17053 20025 17969
10/95 17171 20316 18139
11/95 17320 20653 18332
12/95 17391 20851 18450
1/96 17511 21009 18594
2/96 17487 20867 18536
3/96 17398 20600 18350
4/96 17389 20542 18318
5/96 17413 20534 18317
6/96 17502 20758 18431
7/96 17604 20946 18594
8/96 17625 20941 18601
9/96 17745 21234 18769
10/96 17863 21474 18953
11/96 18083 21867 19234
12/96 18054 21775 19183
1/97 18125 21816 19231
===============================================================================================
===============================================================================================
[MOUNTAIN CHART]
2/97 18230 22016 19376
3/97 18150 21723 19179
4/97 18238 21905 19278
5/97 18446 22234 19505
6/97 18587 22471 19686
7/97 18916 23094 20113
8/97 18817 22877 19957
9/97 18994 23148 20169
10/97 19064 23298 20264
11/97 19135 23435 20343
12/97 19363 23776 20603
1/98 19539 24022 20777
2/98 19541 24029 20787
3/98 19560 24050 20801
4/98 19457 23942 20704
5/98 19690 24321 20982
6/98 19763 24417 21054
7/98 19818 24478 21102
8/98 20072 24856 21406
9/98 20273 25166 21638
10/98 20311 25165 21645
11/98 20368 25253 21692
12/98 20425 25317 21761
1/99 20664 25618 22005
2/99 20575 25506 21888
3/99 20596 25541 21882
4/99 20653 25605 21943
5/99 20581 25457 21813
6/99 20340 25091 21516
7/99 20473 25182 21616
8/99 20399 24980 21516
9/99 20476 24990 21529
10/99 20364 24720 21378
11/99 20537 24983 21559
12/99 20444 24796 21462
1/00 20350 24688 21368
2/00 20448 24975 21532
3/00 20738 25521 21840
4/00 20643 25370 21748
5/00 20548 25238 21658
6/00 20998 25907 22105
7/00 21235 26267 22356
8/00 21492 26672 22633
9/00 21456 26533 22567
10/00 21636 26823 22755
11/00 21718 27026 22863
12/00 22120 27694 23323
1/01 22403 27968 23593
2/01 22466 28057 23669
3/01 22630 28308 23850
4/01 22429 28001 23636
5/01 22653 28303 23878
6/01 22775 28492 24027
7/01 23019 28914 24316
8/01 23325 29391 24684
9/01 23365 29292 24650
10/01 23584 29641 24886
11/01 23327 29391 24628
12/01 23110 29113 24442
1/02 23533 29618 24797
2/02 23830 29975 25075
3/02 23308 29388 24619
4/02 23860 29962 25098
5/02 23970 30144 25234
6/02 24272 30463 25491
7/02 24544 30855 25786
8/02 24816 31225 26023
===============================================================================================
===============================================================================================
[MOUNTAIN CHART]
9/02 25238 31909 26477
10/02 24933 31380 26075
11/02 24821 31250 25969
12/02 25334 31909 26483
1/03 25312 31828 26387
2/03 25613 32273 26752
3/03 25610 32293 26745
4/03 25761 32506 26915
5/03 26266 33267 27463
6/03 26177 33126 27334
7/03 25447 31967 26508
8/03 25622 32205 26706
9/03 26268 33152 27390
10/03 26110 32985 27258
11/03 26243 33329 27476
12/03 26401 33605 27638
1/04 26491 33797 27742
2/04 26806 34306 28132
3/04 26645 34186 27959
4/04 26165 33377 27375
5/04 26095 33256 27340
6/04 26139 33377 27408
7/04 26346 33816 27682
8/04 26738 34494 28139
9/04 26784 34677 28227
10/04 26899 34975 28379
11/04 26710 34687 28151
12/04 26897 35110 28426
1/05 26924 35438 28549
2/05 26809 35321 28427
3/05 26645 35098 28217
4/05 26885 35651 28587
5/05 26957 35903 28750
6/05 27079 36126 28892
7/05 26960 35963 28738
8/05 27081 36326 28984
9/05 27035 36081 28835
10/05 26951 35862 28685
11/05 27013 36034 28800
12/05 27113 36344 28998
1/06 27189 36442 29073
2/06 27216 36687 29199
3/06 27143 36434 29027
4/06 27194 36421 29017
5/06 27270 36584 29154
6/06 27221 36446 29039
7/06 27374 36879 29342
8/06 27576 37427 29723
9/06 27703 37687 29899
10/06 27781 37923 30039
11/06 27853 38239 30224
12/06 27836 38104 30120
1/07 27833 38007 30056
2/07 28012 38507 30376
3/07 28087 38413 30346
4/07 28135 38526 30424
5/07 28104 38356 30306
6/07 28101 38157 30191
7/07 28281 38453 30385
8/07 28408 38287 30363
9/07 28590 38853 30730
10/07 28722 39027 30817
11/07 28903 39275 31026
12/07 29030 39384 31085
1/08 29456 39881 31592
2/08 28838 38055 30461
3/08 29351 39143 31112
===============================================================================================
===============================================================================================
[MOUNTAIN CHART]
4/08 29425 39601 31288
5/08 29495 39840 31474
6/08 29401 39391 31162
7/08 29583 39540 31302
8/08 29849 40003 31641
9/08 29169 38127 30455
10/08 29131 37738 30110
11/08 29233 37858 30165
12/08 29633 38410 30378
1/09 30386 39816 31610
2/09 30517 40025 31482
3/09 30655 40032 31461
===============================================================================================
==========================================
AVERAGE ANNUAL TOTAL RETURNS THE TOTAL ANNUAL FUND OPERATING
As of 3/31/09, including maximum EXPENSE RATIO SET FORTH IN THE MOST RECENT
applicable sales charges FUND PROSPECTUS AS OF THE DATE OF THIS
REPORT FOR CLASS A, CLASS A3 AND CLASS Y
CLASS A SHARES SHARES WAS 0.48%, 0.73% AND 0.48%,
Inception (5/11/87) 5.25% RESPECTIVELY. THE EXPENSE RATIOS PRESENTED
10 Years 3.95 ABOVE MAY VARY FROM THE EXPENSE RATIOS
5 Years 2.64 PRESENTED IN OTHER SECTIONS OF THIS REPORT
1 Year 3.38 THAT ARE BASED ON EXPENSES INCURRED DURING
THE PERIOD COVERED BY THIS REPORT.
CLASS A3 SHARES
10 Years 3.72% CLASS A SHARE PERFORMANCE REFLECTS
5 Years 2.56 THE MAXIMUM 1.00% SALES CHARGE. CLASS A3
1 Year 4.18 SHARES DO NOT HAVE A FRONT-END SALES
CHARGE OR A CDSC; THEREFORE, PERFORMANCE
CLASS Y SHARES QUOTED IS AT NET ASSET VALUE. CLASS Y
10 Years 4.05% SHARES DO NOT HAVE A FRONT-END SALES
5 Years 2.84 CHARGE OR A CDSC; THEREFORE, PERFORMANCE
1 Year 4.42 IS AT NET ASSET VALUE.
==========================================
THE PERFORMANCE OF THE FUND'S SHARE
THE INCEPTION DATE OF CLASS A3 SHARES IS CLASSES WILL DIFFER PRIMARILY DUE TO
OCTOBER 31, 2002. RETURNS SINCE THAT DATE DIFFERENT SALES CHARGE STRUCTURES AND
ARE HISTORICAL RETURNS. ALL OTHER RETURNS CLASS EXPENSES.
ARE THE BLENDED RETURNS OF THE HISTORICAL
PERFORMANCE OF THE FUND'S CLASS A3 SHARES HAD THE FUND NOT WAIVED FEES AND/OR
SINCE THEIR INCEPTION AND THE RESTATED REIMBURSED EXPENSES IN THE PAST,
HISTORICAL PERFORMANCE OF THE FUND'S CLASS PERFORMANCE WOULD HAVE BEEN LOWER.
A SHARES (FOR PERIODS PRIOR TO THE
INCEPTION OF CLASS A3 SHARES) AT NET ASSET
VALUE, ADJUSTED TO REFLECT THE RULE 12B-1
FEES APPLICABLE TO CLASS A3 SHARES. CLASS
A SHARES INCEPTION DATE IS MAY 11, 1987.
CLASS Y SHARES' INCEPTION DATE IS
OCTOBER 3, 2008; RETURNS SINCE THAT DATE
ARE ACTUAL RETURNS. ALL OTHER RETURNS ARE
BLENDED RETURNS OF ACTUAL CLASS Y SHARE
PERFORMANCE AND RESTATED CLASS A SHARE
PERFORMANCE (FOR PERIODS PRIOR TO THE
INCEPTION DATE OF CLASS Y SHARES) AT NET
ASSET VALUE. THE RESTATED CLASS A SHARE
PERFORMANCE REFLECTS THE RULE 12B-1 FEES
APPLICABLE TO CLASS A SHARES AS WELL AS
ANY FEE WAIVERS OR EXPENSE REIMBURSEMENTS
RECEIVED BY CLASS A SHARES. CLASS A SHARES
INCEPTION DATE IS MAY 11, 1987.
THE PERFORMANCE DATA QUOTED REPRESENT
PAST PERFORMANCE AND CANNOT GUARANTEE
COMPARABLE FUTURE RESULTS; CURRENT
PERFORMANCE MAY BE LOWER OR HIGHER. PLEASE
VISIT INVESCOAIM.COM FOR THE MOST RECENT
MONTH-END PERFORMANCE. PERFORMANCE FIGURES
REFLECT REINVESTED DISTRIBUTIONS, CHANGES
IN NET ASSET VALUE AND THE EFFECT OF THE
MAXIMUM APPLICABLE SALES CHARGE UNLESS
OTHERWISE STATED. INVESTMENT RETURN AND
PRINCIPAL VALUE WILL FLUCTUATE SO THAT YOU
MAY HAVE A GAIN OR LOSS WHEN YOU SELL
SHARES.
7 AIM TAX-FREE INTERMEDIATE FUND
AIM TAX-FREE INTERMEDIATE FUND'S INVESTMENT OBJECTIVE IS TO GENERATE AS HIGH A LEVEL OF TAX-EXEMPT INCOME AS IS CONSISTENT WITH THE
PRESERVATION OF CAPITAL.
o Unless otherwise stated, information presented in this report is as of March 31, 2009, and is based on total net assets.
o Unless otherwise noted, all data provided by Invesco Aim.
ABOUT SHARE CLASSES o The value of, payment of interest on, o The LIPPER INTERMEDIATE MUNICIPAL
repayment of principal for and the DEBT FUNDS INDEX is an equally
o As of close of business October 30, ability of the Fund to sell a weighted representation of the
2002, Class A shares were closed to municipal security may be affected by largest funds in the Lipper
new investors. constitutional amendments, Intermediate Municipal Debt Funds
legislative enactments, executive category. These funds invest in
o Class Y shares are available to only orders, administrative regulations, municipal debt issues with
certain investors. Please see the voter initiatives and the economics dollar-weighted average maturities of
prospectus for more information. of the regions in which the issuers five to 10 years.
in which the Fund invests are
PRINCIPAL RISKS OF INVESTING IN THE FUND located. o The Fund is not managed to track the
performance of any particular index,
o Because many municipal securities are o Reinvestment risk is the risk that a including the indexes defined here,
issued to finance similar projects, bond's cash flows will be reinvested and consequently, the performance of
especially those relating to at an interest rate below that on the the Fund may deviate significantly
education, health care, original bond. from the performance of the indexes.
transportation and utilities,
conditions in those sectors can o The tax-exempt character of the o A direct investment cannot be made in
affect the overall municipal interest paid on synthetic municipal an index. Unless otherwise indicated,
securities market and the Fund. securities is based on the tax-exempt index results include reinvested
income stream from the collateral. dividends, and they do not reflect
o Credit risk is the risk of loss on an The Internal Revenue Service has not sales charges or fund expenses.
investment due to the deterioration ruled on this issue and could deem Performance of an index of funds
of an issuer's financial health. Such income derived from synthetic reflects fund expenses; performance
a deterioration of financial health municipal securities to be taxable. of a market index does not.
may result in a reduction of the
credit rating of the issuer's o The Fund may invest in lower quality OTHER INFORMATION
securities and may lead to the debt securities, commonly known as
issuer's inability to honor its "junk bonds." Compared to higher o The Chartered Financial
contractual obligations, including quality debt securities, junk bonds Analyst--REGISTERED TRADEMARK--
making timely payment of interest and involve greater risk of default or (CFA--REGISTERED TRADEMARK--)
principal. price changes due to changes in designation is a globally recognized
credit quality of the issuer because standard for measuring the competence
o Interest rate risk refers to the risk they are generally unsecured and may and integrity of investment
that bond prices generally fall as be subordinated to other creditors' professionals
interest rates rise; conversely, bond claims. Credit ratings on junk bonds
prices generally rise as interest do not necessarily reflect their o The returns shown in management's
rates fall. actual market risk. discussion of Fund performance are
based on net asset values calculated
o The Fund may use enhanced investment ABOUT INDEXES USED IN THIS REPORT for shareholder transactions.
techniques such as leveraging and Generally accepted accounting
derivatives. Leveraging entails risks o The BARCLAYS CAPITAL MUNICIPAL BOND principles require adjustments to be
such as magnifying changes in the INDEX covers municipal bonds with a made to the net assets of the Fund at
value of the portfolio's securities. minimum credit rating of Baa, an period end for financial reporting
Derivatives are subject to outstanding par value of at least $5 purposes, and as such, the net asset
counterparty risk--the risk that the million and issued as a part of a values for shareholder transactions
other party will not complete the transaction of at least $50 million. and the returns based on those net
transaction with the Fund. The bonds must have been issued after asset values may differ from the net
December 31, 1990, and have a asset values and returns reported in
o There is no guarantee that the remaining maturity of at least one the Financial Highlights.
investment techniques and risk year.
analyses used by the Fund's portfolio
managers will produce the desired o The MERRILL LYNCH 3-7 YEAR MUNICIPAL
results. INDEX is a domestic bond index that
holds municipal bonds with maturities
o The prices of securities held by the that range between three and seven
Fund may decline in response to years.
market risks.
=======================================================================================
THIS REPORT MUST BE ACCOMPANIED OR PRECEDED BY A CURRENTLY EFFECTIVE FUND PROSPECTUS,
WHICH CONTAINS MORE COMPLETE INFORMATION, INCLUDING SALES CHARGES AND EXPENSES.
INVESTORS SHOULD READ IT CAREFULLY BEFORE INVESTING. ==========================================
======================================================================================= FUND NASDAQ SYMBOLS
NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE Class A Shares AITFX
Class A3 Shares ATFAX
Class Y Shares ATFYX
==========================================
8 AIM TAX-FREE INTERMEDIATE FUND
SCHEDULE OF INVESTMENTS
March 31, 2009
<Table>
<Caption>
PRINCIPAL
INTEREST MATURITY AMOUNT
RATE DATE (000) VALUE
- -----------------------------------------------------------------------------------------------------
MUNICIPAL OBLIGATIONS-100.07%
ALABAMA-1.42%
Birmingham (City of); Series 2001 B, Ref.
Unlimited Tax GO Wts. (INS-Financial Security
Assurance Inc.)(a) 5.25% 07/01/10 $1,950 $ 2,051,459
- -----------------------------------------------------------------------------------------------------
Chatom (Town of) Industrial Development Board;
Series 2007 A, VRD RB(c) 4.25% 08/01/37 1,000 999,900
- -----------------------------------------------------------------------------------------------------
Mobile (City of) Industrial Development Board
(Alabama Power Co.); Series 2007 C, Pollution
Control IDR(b) 5.00% 03/19/15 2,150 2,243,288
=====================================================================================================
5,294,647
=====================================================================================================
ALASKA-0.81%
Alaska (State of) Industrial Development &
Export Authority (Greater Fairbanks); Series
2004 A, RB (INS-Financial Security Assurance
Inc.)(a) 5.13% 04/01/19 1,000 991,140
- -----------------------------------------------------------------------------------------------------
Alaska (State of) Municipal Bond Bank Authority;
Series 2009-1, RB 5.63% 09/01/29 250 250,800
- -----------------------------------------------------------------------------------------------------
Alaska (State of) Southeast Power Agency; Series
2009, Ref. Electric RB (INS-Assured Guaranty
Corp.)(a) 5.13% 06/01/24 650 639,529
- -----------------------------------------------------------------------------------------------------
North Slope (Borough of); Series 2008 A, Ref.
Unlimited Tax GO 5.50% 06/30/19 1,000 1,154,070
=====================================================================================================
3,035,539
=====================================================================================================
ARIZONA-1.48%
Mohave (County of) Unified School District No.
20 (Kingman); Series 2009 C, School
Improvement Unlimited Tax GO (INS-Assured
Guaranty Corp.)(a) 5.00% 07/01/23 1,500 1,519,095
- -----------------------------------------------------------------------------------------------------
Phoenix (City of) Civic Improvement Corp.;
Series 2001, Ref. Wastewater System Jr. Lien
RB (INS-Financial Guaranty Insurance Co.)(a) 5.25% 07/01/11 3,000 3,246,630
- -----------------------------------------------------------------------------------------------------
Yuma (City of) Municipal Property Corp.; Series
2007 D, Municipal Facilities RB (INS-XL
Capital Assurance Inc.)(a) 5.00% 07/01/24 750 759,037
=====================================================================================================
5,524,762
=====================================================================================================
ARKANSAS-0.77%
Bentonville (City of); Series 2007, Sales & Use
Tax RB (INS-Ambac Assurance Corp.)(a) 4.38% 11/01/25 1,000 940,360
- -----------------------------------------------------------------------------------------------------
Independence (County of) (Entergy Mississippi,
Inc.); Series 1999, Pollution Control RB
(INS-Ambac Assurance Corp.)(a) 4.90% 07/01/22 1,000 885,330
- -----------------------------------------------------------------------------------------------------
Little Rock (City of) School District; Series
2001 C, Limited Tax GO (INS-Financial
Security Assurance Inc.)(a) 5.00% 02/01/10 1,000 1,029,760
=====================================================================================================
2,855,450
=====================================================================================================
CALIFORNIA-6.40%
California (State of) Health Facilities
Financing Authority (Southern California
Presbyterian Homes); Series 1998, VRD RB
(INS-National Public Finance Guarantee
Corp.)(a)(c)(d) 6.00% 12/01/28 9,665 9,665,000
- -----------------------------------------------------------------------------------------------------
California Statewide Communities Development
Authority (Enloe Medical Center);
Series 2008 A, RB (INS-Cal-Mortgage)(a) 5.00% 08/15/17 385 391,560
- -----------------------------------------------------------------------------------------------------
Series 2008 A, RB (INS-Cal-Mortgage)(a) 5.25% 08/15/19 325 328,331
- -----------------------------------------------------------------------------------------------------
California Statewide Communities Development
Authority (Henry Mayo Newhall Memorial)
Series 2007 B, RB (INS-Ambac Assurance
Corp.)(a) 5.05% 10/01/28 1,500 1,268,475
- -----------------------------------------------------------------------------------------------------
California Statewide Communities Development
Authority; Series 2006 A, Ref. Pollution
Control RB (INS-XL Capital Assurance
Inc.)(a)(b) 4.10% 04/01/13 1,175 1,162,216
- -----------------------------------------------------------------------------------------------------
Evergreen Elementary School District;
Series 2009, Unlimited Tax GO (INS-Assured
Guaranty Corp.)(a)(e) 6.04% 08/01/25 3,000 1,131,840
- -----------------------------------------------------------------------------------------------------
Series 2009, Unlimited Tax GO (INS-Assured
Guaranty Corp.)(a)(e) 6.33% 08/01/28 1,000 299,850
- -----------------------------------------------------------------------------------------------------
Lake Tahoe (City of) Unified School District
(Election of 2008); Series 2009, Unlimited
Tax GO (INS-Financial Security Assurance
Inc.)(a) 5.00% 08/01/24 1,000 1,012,820
- -----------------------------------------------------------------------------------------------------
Los Angeles (City of) Department of Airports
(Los Angeles International Airport); Series
2008 C, RB 5.00% 05/15/28 1,000 953,760
- -----------------------------------------------------------------------------------------------------
Los Angeles (City of) Unified School District;
Series 2009 I, Unlimited Tax GO 5.00% 07/01/26 670 655,555
- -----------------------------------------------------------------------------------------------------
Madera (City of) Irrigation District; Series
2008, Ref. RB 5.00% 01/01/23 1,250 1,234,012
- -----------------------------------------------------------------------------------------------------
</Table>
See accompanying Notes to Financial Statements which are an integral part of the
financial statements.
9 AIM TAX-FREE INTERMEDIATE FUND
<Table>
<Caption>
PRINCIPAL
INTEREST MATURITY AMOUNT
RATE DATE (000) VALUE
- -----------------------------------------------------------------------------------------------------
CALIFORNIA-(CONTINUED)
Monrovia (City of) Financing Authority
(Library); Series 2007, Lease RB (INS-Ambac
Assurance Corp.)(a) 4.63% 12/01/32 $1,000 $ 859,680
- -----------------------------------------------------------------------------------------------------
Rancho Mirage (City of) Joint Powers Financing
Authority (Eisenhower Medical Center); Series
2007 A, RB 5.00% 07/01/21 1,000 901,270
- -----------------------------------------------------------------------------------------------------
Redlands (City of) Unified School District
(Election of 2008); Series 2008, Unlimited
Tax GO (INS-Financial Security Assurance
Inc.)(a) 5.00% 07/01/25 1,000 1,004,330
- -----------------------------------------------------------------------------------------------------
Santa Ana (City of) (Local Street Improvement);
Series 2007, Gas Tax Revenue COP
(INS-National Public Finance Guarantee
Corp.)(a) 4.38% 01/01/24 1,000 911,200
- -----------------------------------------------------------------------------------------------------
West Contra Costa Unified School District;
Series 2005 B, Unlimited Tax GO 6.00% 08/01/27 1,000 1,037,220
- -----------------------------------------------------------------------------------------------------
West Sacramento (City of) Area Flood Control
Agency; Series 2008, Special Assessment RB 5.13% 09/01/23 1,075 1,063,627
=====================================================================================================
23,880,746
=====================================================================================================
COLORADO-2.42%
Adams State College;
Series 2009 A, Auxiliary Facilities
Improvement RB 5.20% 05/15/27 340 346,681
- -----------------------------------------------------------------------------------------------------
Series 2009 A, Auxiliary Facilities
Improvement RB 5.00% 05/15/29 450 445,473
- -----------------------------------------------------------------------------------------------------
Aurora (City of) (The Children's Hospital);
Series 2004 D, RB (INS-Financial Security
Assurance Inc.)(a) 5.00% 12/01/20 1,000 1,057,240
- -----------------------------------------------------------------------------------------------------
Colorado (State of) Educational & Cultural
Facilities Authority (Charter School
Classical); Series 2008 A, RB 6.75% 12/01/23 1,000 974,510
- -----------------------------------------------------------------------------------------------------
Colorado (State of) School of Mines; Series 2009
A, Ref. Enterprise & Improvement RB 5.00% 12/01/29 500 489,875
- -----------------------------------------------------------------------------------------------------
Denver (City and County of) School District No.
1; Series 2009 A, Unlimited Tax GO 5.00% 12/01/28 1,000 998,690
- -----------------------------------------------------------------------------------------------------
Northwest Parkway Public Highway Authority; Sr.
Series 2001 A, RB(f) 5.00% 06/15/11 1,000 1,075,220
- -----------------------------------------------------------------------------------------------------
Public Authority for Colorado Energy;
Series 2008, Natural Gas RB 6.13% 11/15/23 1,000 779,240
- -----------------------------------------------------------------------------------------------------
Series 2008, Natural Gas RB 6.25% 11/15/28 2,000 1,514,540
- -----------------------------------------------------------------------------------------------------
University of Colorado Hospital Authority;
Series 1997 A, Ref. RB (INS-Ambac Assurance
Corp.)(a) 5.25% 11/15/22 1,470 1,329,056
=====================================================================================================
9,010,525
=====================================================================================================
CONNECTICUT-0.27%
New Haven (City of) Solid Waste Authority;
Series 2008, RB 5.13% 06/01/23 1,000 1,025,290
=====================================================================================================
DISTRICT OF COLUMBIA-1.61%
District of Columbia (Georgetown University);
Series 2001 C, RB(b) 5.25% 04/01/23 2,000 1,994,100
- -----------------------------------------------------------------------------------------------------
District of Columbia;
Series 1993 B-1, Ref. Unlimited Tax GO
(INS-Ambac Assurance Corp.)(a) 5.50% 06/01/09 1,250 1,258,637
- -----------------------------------------------------------------------------------------------------
Series 1999 B, Ref. Unlimited Tax GO
(INS-Financial Security Assurance Inc.)(a) 5.50% 06/01/10 1,000 1,038,530
- -----------------------------------------------------------------------------------------------------
Series 2001 A, Unlimited Tax GO
(INS-Financial Security Assurance Inc.)(a) 5.50% 06/01/13 1,705 1,732,894
=====================================================================================================
6,024,161
=====================================================================================================
FLORIDA-4.59%
Citizens Property Insurance Corp.; Series 2008
A-1, Sr. Sec. High Risk RB 5.00% 06/01/11 2,100 2,149,077
- -----------------------------------------------------------------------------------------------------
Florida (State of) Board of Education;
Series 2000 B, Lottery RB (INS-Financial
Guaranty Insurance Co.)(a) 5.75% 07/01/10 1,000 1,043,180
- -----------------------------------------------------------------------------------------------------
Series 2009 A, Lottery RB 5.00% 07/01/23 2,000 1,952,080
- -----------------------------------------------------------------------------------------------------
Series 2009 A, Lottery RB 5.25% 07/01/24 1,640 1,633,046
- -----------------------------------------------------------------------------------------------------
Florida Hurricane Catastrophe Fund; Series 2008
A, RB 5.00% 07/01/13 1,560 1,604,897
- -----------------------------------------------------------------------------------------------------
Hillsborough (County of) Industrial Development
Authority (Tampa Electric); Series 2007 B,
Pollution Control IDR(b) 5.15% 09/01/13 500 505,275
- -----------------------------------------------------------------------------------------------------
JEA;
Series 2002 D, Sub. Electric System RB 4.63% 10/01/22 500 499,255
- -----------------------------------------------------------------------------------------------------
Series 2009 Three A, Electric System RB 5.00% 10/01/26 1,125 1,089,315
- -----------------------------------------------------------------------------------------------------
Miami-Dade (County of) Health Facilities
Authority (The Children's Hospital); Series
1994, RB (INS-National Public Finance
Corp.)(a)(b) 4.55% 08/01/13 250 251,843
- -----------------------------------------------------------------------------------------------------
</Table>
See accompanying Notes to Financial Statements which are an integral part of the
financial statements.
10 AIM TAX-FREE INTERMEDIATE FUND
<Table>
<Caption>
PRINCIPAL
INTEREST MATURITY AMOUNT
RATE DATE (000) VALUE
- -----------------------------------------------------------------------------------------------------
FLORIDA-(CONTINUED)
Miami-Dade (County of) Water & Sewer System;
Series 2008 C, RB (INS-Berkshire Hathaway
Assurance Corp.)(a) 5.50% 10/01/20 $1,500 $ 1,673,775
- -----------------------------------------------------------------------------------------------------
Series 2008 C, RB (INS-Berkshire Hathaway
Assurance Corp.)(a) 5.00% 10/01/24 1,500 1,538,760
- -----------------------------------------------------------------------------------------------------
Series 2008 C, RB (INS-Berkshire Hathaway
Assurance Corp.)(a) 5.13% 10/01/25 1,500 1,556,520
- -----------------------------------------------------------------------------------------------------
Port St. Lucie (City of); Series 2008, Ref.
Master Lease/Municipal Complex COP
(INS-Assured Guaranty Corp.)(a) 6.25% 09/01/27 500 519,415
- -----------------------------------------------------------------------------------------------------
Village Center Community Development District;
Series 1998 A, Ref. Recreational RB
(INS-National Public Finance Guarantee
Corp.)(a) 5.50% 11/01/10 1,105 1,127,520
=====================================================================================================
17,143,958
=====================================================================================================
GEORGIA-3.13%
Burke (County of) Development Authority (Georgia
Power Co.); Series 1995, Pollution Control
RB(b) 3.75% 01/12/12 4,000 4,026,080
- -----------------------------------------------------------------------------------------------------
Dalton (City of); Series 1999, Combined
Utilities RB (INS-Financial Security
Assurance Inc.)(a) 5.75% 01/01/10 1,015 1,051,662
- -----------------------------------------------------------------------------------------------------
Georgia (State of); Series 1992 B, Unlimited Tax
GO 6.30% 03/01/10 1,000 1,052,840
- -----------------------------------------------------------------------------------------------------
Glynn-Brunswick Memorial Hospital Authority;
Series 2008 A, RAC 5.00% 08/01/20 1,000 939,000
- -----------------------------------------------------------------------------------------------------
Series 2008 A, RAC 5.25% 08/01/23 1,000 919,910
- -----------------------------------------------------------------------------------------------------
South Regional Joint Development Authority
(Valdosta State University);
Series 2007, Parking & Health RB (INS-XL
Capital Assurance Inc.)(a) 5.00% 08/01/20 1,385 1,471,203
- -----------------------------------------------------------------------------------------------------
Series 2007, Parking & Health RB (INS-XL
Capital Assurance Inc.)(a) 5.00% 08/01/21 1,490 1,573,708
- -----------------------------------------------------------------------------------------------------
Series 2007, Parking & Health RB (INS-XL
Capital Assurance Inc.)(a) 5.00% 08/01/22 605 632,630
=====================================================================================================
11,667,033
=====================================================================================================
HAWAII-0.28%
Hawaii (State of); Series 1993 CA, Unlimited Tax
GO(f) 5.75% 01/01/10 1,000 1,037,420
=====================================================================================================
IDAHO-1.49%
Caldwell (City of) Urban Renewal Agency; Series
2008, Tax Allocation RB 4.00% 09/01/19 1,205 1,155,270
- -----------------------------------------------------------------------------------------------------
Idaho (State of) Health Facilities Authority
(Trinity Health Group); Series 2008 B, RB 5.63% 12/01/19 1,000 1,063,910
- -----------------------------------------------------------------------------------------------------
Idaho (State of) Housing & Finance Association;
Series 2008 D, Class III, Single Family
Mortgage RB 5.35% 01/01/29 1,000 996,290
- -----------------------------------------------------------------------------------------------------
Series 2009 A, Grant & Revenue Anticipated RB 5.25% 07/15/25 500 508,305
- -----------------------------------------------------------------------------------------------------
University of Idaho; Series 2007 B, RB
(INS-Financial Security Assurance Inc.)(a)(b) 4.50% 04/01/18 1,750 1,838,497
=====================================================================================================
5,562,272
=====================================================================================================
ILLINOIS-6.09%
Chicago (City of) Board of Education; Series
2005 D, VRD Unlimited Tax GO (INS-Assured
Guaranty Ltd.)(a)(c)(d) 6.75% 03/01/36 10,000 10,000,000
- -----------------------------------------------------------------------------------------------------
Chicago (City of) Transit Authority (Federal
Transit Administration Section 5309); Series
A, RB (INS-Assured Guaranty Ltd.)(a) 5.25% 06/01/23 2,500 2,541,500
- -----------------------------------------------------------------------------------------------------
Illinois (State of) Finance Authority
(Children's Memorial Hospital); Series 2008
A, RB (INS-Assured Guaranty Ltd.)(a) 5.25% 08/15/33 1,000 892,110
- -----------------------------------------------------------------------------------------------------
Illinois (State of) Finance Authority
(Resurrection Health Care); Series 1999 A, RB
(INS-Financial Security Assurance Inc.)(a) 5.00% 05/15/17 2,000 2,064,520
- -----------------------------------------------------------------------------------------------------
Illinois (State of); First Series 2001, Ref.
Unlimited Tax GO (INS-Financial Security
Assurance Inc.)(a) 5.25% 10/01/11 1,790 1,953,284
- -----------------------------------------------------------------------------------------------------
Kane & De Kalb (Counties of) Community Unit
School District No. 302; Series 2008,
Unlimited Tax GO (INS-Financial Security
Assurance Inc.)(a) 5.50% 02/01/28 1,500 1,548,945
- -----------------------------------------------------------------------------------------------------
Kendall-Grundy, Kane & Will (Counties of) High
School District No. 18; Series 2007 A, Ref.
Unlimited Tax GO (INS-Financial Guaranty
Insurance Co.)(a) 4.38% 10/01/21 1,000 1,006,000
- -----------------------------------------------------------------------------------------------------
Madison & Saint Clair (Counties of) School
District No. 10 (Collinsville School
Building); Series 2001, Unlimited Tax GO
(INS-Financial Guaranty Insurance Co.)(a) 5.00% 02/01/11 1,150 1,214,135
- -----------------------------------------------------------------------------------------------------
</Table>
See accompanying Notes to Financial Statements which are an integral part of the
financial statements.
11 AIM TAX-FREE INTERMEDIATE FUND
<Table>
<Caption>
PRINCIPAL
INTEREST MATURITY AMOUNT
RATE DATE (000) VALUE
- ------------------------------------------------------------------------------------------------------
ILLINOIS-(CONTINUED)
Northern Municipal Power Agency (Prairie St.
Power Project); Series 2007 A, RB
(INS-National Public Finance Guarantee
Corp.)(a) 5.00% 01/01/19 $ 1,000 $ 1,070,070
- ------------------------------------------------------------------------------------------------------
Will Grundy Etc. (Counties of) Community College
District No. 525 (Joliet Jr. College); Series
2008, Unlimited Tax GO 5.75% 06/01/27 410 434,526
======================================================================================================
22,725,090
======================================================================================================
INDIANA-2.44%
Clark-Pleasant Middle School Building Corp.;
Series 2009, First Mortgage RB 5.00% 07/15/22 1,000 1,000,720
- ------------------------------------------------------------------------------------------------------
Monroe (County of) Community 1996 School
Building Corp.; Series 2009, First Mortgage
RB (INS-Financial Security Assurance Inc.)(a) 5.13% 01/15/24 2,285 2,382,158
- ------------------------------------------------------------------------------------------------------
Portage (City of) Redevelopment District; Series
2008, Ref. Tax Increment Allocation RB
(INS-CIFG Guaranty, Ltd.)(a) 5.00% 01/15/22 2,470 2,305,152
- ------------------------------------------------------------------------------------------------------
Rockport (City of) (Indiana Michigan Power Co.);
Series 2009 A, Ref. PCR(b) 6.25% 06/02/14 500 500,230
- ------------------------------------------------------------------------------------------------------
Series 2009 A, Ref. PCR(b) 6.25% 06/02/14 1,000 1,002,950
- ------------------------------------------------------------------------------------------------------
University of Southern Indiana; Series 2009 J,
Student Fee RB (INS-Assured Guaranty Ltd.)(a) 5.00% 10/01/23 400 402,924
- ------------------------------------------------------------------------------------------------------
Zionsville (City of) Community Schools Building
Corp.; Series 2002, First Mortgage RB(f) 5.00% 07/15/11 1,420 1,513,848
======================================================================================================
9,107,982
======================================================================================================
KANSAS-1.03%
Johnson (County of) Water District No. 1; Series
2001, Water RB 5.00% 06/01/11 1,770 1,919,370
- ------------------------------------------------------------------------------------------------------
Wyandotte (County of), School District No. 500;
Series 2001, Unlimited Tax GO (INS-Financial
Security Assurance Inc.)(a) 5.50% 09/01/11 1,750 1,913,818
======================================================================================================
3,833,188
======================================================================================================
KENTUCKY-2.37%
Christian (County of) (Jennie Stuart Medical
Center); Series 2006, RB (INS-Assured
Guaranty Corp.)(a) 5.25% 02/01/28 2,500 2,444,275
- ------------------------------------------------------------------------------------------------------
Kentucky (State of) Economic Development Finance
Authority (Catholic Health Initiatives);
Series 2004 D, RB(b) 3.50% 11/10/10 1,000 998,430
- ------------------------------------------------------------------------------------------------------
Kentucky (State of) Economic Development Finance
Authority (Louisville Arena Project); Sub.
Series 2008 A-1, RB (INS-Assured Guaranty
Corp.)(a) 5.75% 12/01/28 500 505,275
- ------------------------------------------------------------------------------------------------------
Louisville & Jefferson (County of) Metropolitan
Government (Jewish Hospital & St. Mary's
Healthcare) Series 2008, RB 6.00% 02/01/22 1,000 1,010,430
- ------------------------------------------------------------------------------------------------------
Newport (City of) (Kentucky League of Cities
Funding Trust); Series 2002, VRD Lease
Program RB (LOC-U.S. Bank, N.A.)(c)(d)(g) 0.49% 04/01/32 1,785 1,785,000
- ------------------------------------------------------------------------------------------------------
Paducah (City of) Electric Plant Board; Series
2009 A, RB (INS-Assured Guaranty Corp.)(a) 5.00% 10/01/24 2,000 2,097,840
======================================================================================================
8,841,250
======================================================================================================
LOUISIANA-3.00%
Louisiana (State of) Energy & Power Authority;
Series 2000, Ref. Power Project RB
(INS-Financial Security Assurance Inc.)(a) 5.75% 01/01/11 2,500 2,664,300
- ------------------------------------------------------------------------------------------------------
Louisiana (State of) Public Facilities Authority
(Baton Rouge General Medical Center); Series
2004, RB (INS-National Public Finance
Guarantee Corp.)(a) 5.00% 07/01/14 1,000 1,086,220
- ------------------------------------------------------------------------------------------------------
Louisiana (State of) Public Facilities Authority
(Black & Gold Facilities Project); Series
2007 A, RB (INS-CIFG Guaranty, Ltd.)(a) 5.00% 07/01/22 500 444,115
- ------------------------------------------------------------------------------------------------------
Louisiana (State of) Public Facilities Authority
(Christus Health); Series 2008 B, Ref. RB
(INS-Assured Guaranty Corp.)(a) 5.75% 07/01/18 1,000 1,036,900
- ------------------------------------------------------------------------------------------------------
Louisiana (State of) Public Facilities Authority
(Hurricane Recovery Program); Series 2007, RB
(INS-Ambac Assurance Corp.)(a) 5.00% 06/01/18 1,000 1,013,650
- ------------------------------------------------------------------------------------------------------
Louisiana (State of) Public Facilities Authority
(Nineteenth Judicial District Court); Series
2007, RB (INS-Financial Guaranty Insurance
Co.)(a) 4.50% 06/01/21 1,000 985,220
- ------------------------------------------------------------------------------------------------------
</Table>
See accompanying Notes to Financial Statements which are an integral part of the
financial statements.
12 AIM TAX-FREE INTERMEDIATE FUND
<Table>
<Caption>
PRINCIPAL
INTEREST MATURITY AMOUNT
RATE DATE (000) VALUE
- ------------------------------------------------------------------------------------------------------
LOUISIANA-(CONTINUED)
Monroe (City of) (Economic Development Garret
Rd.);
Series 2008, Ref. Sales Tax Increment RB
(INS-Assured Guaranty Corp.)(a) 5.25% 03/01/22 $ 1,300 $ 1,378,533
- ------------------------------------------------------------------------------------------------------
Series 2008, Ref. Sales Tax Increment RB
(INS-Assured Guaranty Corp.)(a) 5.38% 03/01/24 1,000 1,053,730
- ------------------------------------------------------------------------------------------------------
New Orleans (City of) Aviation Board;
Series 2009 A-1, Ref. Restructuring RB
(INS-Assured Guaranty Corp.)(a) 5.00% 01/01/19 500 495,780
- ------------------------------------------------------------------------------------------------------
Series 2009 A-1, Ref. Restructuring RB
(INS-Assured Guaranty Corp.)(a) 6.00% 01/01/23 1,000 1,017,600
======================================================================================================
11,176,048
======================================================================================================
MAINE-0.73%
Lewiston (City of);
Series 2008 B, Unlimited Tax GO
(INS-Financial Security Assurance Inc.)(a) 5.00% 12/15/19 750 793,125
- ------------------------------------------------------------------------------------------------------
Series 2008 B, Unlimited Tax GO
(INS-Financial Security Assurance Inc.)(a) 5.00% 12/15/20 870 911,247
- ------------------------------------------------------------------------------------------------------
Series 2008 B, Unlimited Tax GO
(INS-Financial Security Assurance Inc.)(a) 5.50% 12/15/23 950 1,021,411
======================================================================================================
2,725,783
======================================================================================================
MARYLAND-1.63%
Maryland (State of) Health & Higher Educational
Facilities Authority (Lifebridge Health);
Series 2008, RB 5.00% 07/01/18 1,000 997,730
- ------------------------------------------------------------------------------------------------------
Series 2008, RB (INS-Assured Guaranty
Corp.)(a) 5.00% 07/01/20 1,000 1,046,680
- ------------------------------------------------------------------------------------------------------
Series 2008, RB (INS-Assured Guaranty
Corp.)(a) 5.00% 07/01/22 1,005 1,035,733
- ------------------------------------------------------------------------------------------------------
Maryland (State of) Health & Higher Educational
Facilities Authority (The Johns Hopkins
Hospital);
Series 2008, Health System RB(b) 5.00% 05/15/13 1,000 1,062,920
- ------------------------------------------------------------------------------------------------------
Series 2008, Health System RB(b) 5.00% 05/15/15 500 527,425
- ------------------------------------------------------------------------------------------------------
Maryland (State of) Health & Higher Educational
Facilities Authority (University of Maryland
Medical System);
Series 2008 F, Health System RB 5.00% 07/01/17 500 505,685
- ------------------------------------------------------------------------------------------------------
Series 2008 F, Health System RB 4.50% 07/01/20 500 459,610
- ------------------------------------------------------------------------------------------------------
Maryland (State of) Health & Higher Educational
Facilities Authority (Washington County
Hospital); Series 2008, RB 5.00% 01/01/20 500 428,350
======================================================================================================
6,064,133
======================================================================================================
MASSACHUSETTS-2.38%
Massachusetts (State of) Development Finance
Agency (Boston Children's Museum); Series
2006, VRD RB (LOC-Citizens Bank,
N.A.)(c)(d)(g) 5.00% 04/01/36 5,000 5,000,000
- ------------------------------------------------------------------------------------------------------
Massachusetts (State of) Health & Educational
Facilities Authority (Lesley University);
Series 2009 A, RB (INS-Assured Guaranty
Corp.)(a) 5.00% 07/01/23 1,095 1,124,083
- ------------------------------------------------------------------------------------------------------
Massachusetts (State of); Series 2001 D,
Construction Loan Limited Tax GO(b)(f) 5.25% 11/01/11 2,500 2,738,825
======================================================================================================
8,862,908
======================================================================================================
MICHIGAN-3.51%
Hartland (City of) Consolidated School District;
Series 2001, Ref. Unlimited Tax GO
(CEP-Michigan School Bond Loan Fund) 5.50% 05/01/11 1,000 1,079,800
- ------------------------------------------------------------------------------------------------------
Kent (County of) (Kent County International
Airport); Series 1999, Ref. Airport
Facilities RB 5.00% 01/01/25 500 501,810
- ------------------------------------------------------------------------------------------------------
Michigan (State of) Hospital Finance Authority
(McLaren Health Care); Series 2008, RB 5.25% 05/15/18 1,100 1,068,518
- ------------------------------------------------------------------------------------------------------
Michigan (State of) Housing Development
Authority; Series 2000 A, VRD RB
(INS-National Public Finance Guarantee
Corp.)(a)(c)(d) 8.50% 12/01/16 3,500 3,500,000
- ------------------------------------------------------------------------------------------------------
Michigan (State of) Municipal Bond Authority
(Downtown Development Local Project);
Series 2009 A, Local Government Loan Program
RB 5.00% 05/01/21 1,515 1,520,893
- ------------------------------------------------------------------------------------------------------
Series 2009 A, Local Government Loan Program
RB 5.13% 05/01/23 800 791,672
- ------------------------------------------------------------------------------------------------------
Series 2009 A, Local Government Loan Program
RB 5.25% 05/01/24 500 492,815
- ------------------------------------------------------------------------------------------------------
Michigan (State of) Strategic Fund (Detroit
Edison Co.); Series 1995 CC, Ref. Limited
Obligation RB (INS-Ambac Assurance
Corp.)(a)(b) 4.85% 09/01/11 2,075 2,035,679
- ------------------------------------------------------------------------------------------------------
</Table>
See accompanying Notes to Financial Statements which are an integral part of the
financial statements.
13 AIM TAX-FREE INTERMEDIATE FUND
<Table>
<Caption>
PRINCIPAL
INTEREST MATURITY AMOUNT
RATE DATE (000) VALUE
- ------------------------------------------------------------------------------------------------------
MICHIGAN-(CONTINUED)
Taylor (City of); Series 2001, COP (INS-Ambac
Assurance Corp.)(a) 5.00% 02/01/11 $ 495 $ 529,269
- ------------------------------------------------------------------------------------------------------
Troy (City of) Downtown Development Authority;
Series 2001, Ref. & Development Tax
Allocation RB (INS-National Public Finance
Guarantee Corp.)(a) 5.00% 11/01/10 1,265 1,324,645
- ------------------------------------------------------------------------------------------------------
Wyandotte (City of); Series 2009 A, Ref.
Electric System RB (INS-Assured Guaranty
Corp.)(a) 5.25% 10/01/28 250 246,400
======================================================================================================
13,091,501
======================================================================================================
MINNESOTA-1.26%
Minnesota (State of) Housing Finance Agency;
Series 2009 A, Residential Housing Finance RB 5.20% 01/01/23 1,000 1,004,580
- ------------------------------------------------------------------------------------------------------
Series 2009 B, Residential Housing Finance RB 5.45% 07/01/24 1,000 1,032,900
- ------------------------------------------------------------------------------------------------------
Western Minnesota Municipal Power Agency;
Series 2001 A, Ref. RB (INS-Ambac Assurance
Corp.)(a) 5.50% 01/01/10 1,245 1,284,255
- ------------------------------------------------------------------------------------------------------
Series 2001 A, Ref. RB (INS-Ambac Assurance
Corp.)(a) 5.50% 01/01/11 1,300 1,377,805
======================================================================================================
4,699,540
======================================================================================================
MISSISSIPPI-1.08%
Mississippi (State of) Development Bank (Lowndes
County Industrial Development); Series 2007,
Special Obligation IDR (INS-Financial
Security Assurance Inc.)(a) 5.00% 07/01/19 1,160 1,251,698
- ------------------------------------------------------------------------------------------------------
Mississippi (State of) Development Bank; Series
2009, Special Obligation Limited Tax Bonds
(INS-Assured Guaranty Corp.) 5.00% 07/01/24 1,000 1,001,510
- ------------------------------------------------------------------------------------------------------
Rankin (County of) School District; Series 2001,
Unlimited Tax GO (INS-Financial Security
Assurance Inc.)(a) 5.00% 10/01/11 1,625 1,773,785
======================================================================================================
4,026,993
======================================================================================================
MISSOURI-3.48%
Cass (County of); Series 2007, Hospital RB 5.00% 05/01/17 500 426,065
- ------------------------------------------------------------------------------------------------------
Kansas City (City of); Series 2008 A, Ref.
General Improvement Airport RB 4.00% 09/01/14 1,000 1,040,950
- ------------------------------------------------------------------------------------------------------
Ladue School District; Series 2007, Ref. &
Improvement Unlimited Tax GO 5.00% 03/01/25 1,250 1,308,100
- ------------------------------------------------------------------------------------------------------
Missouri (State of) Development Finance Board;
Series 1999, VRD Lease RB(c)(d)(h) 5.50% 12/01/22 7,040 7,040,000
- ------------------------------------------------------------------------------------------------------
Missouri (State of) Health & Educational
Facilities Authority (Webster University);
Series 2001, Educational Facilities RB
(INS-National Public Finance Guarantee
Corp.)(a) 5.00% 04/01/11 1,075 1,119,075
- ------------------------------------------------------------------------------------------------------
Missouri (State of) Housing Development
Commission; Series 2008 B2, Single Family
Mortgage RB (CEP-GNMA/FNMA/FHLMC) 5.10% 03/01/28 500 490,465
- ------------------------------------------------------------------------------------------------------
St. Louis (City of) Municipal Finance Corp.
(Convention Center Capital Improvement);
Series 2008, Leasehold RB (INS-Assured
Guaranty Ltd.)(a) 5.00% 07/15/21 1,500 1,548,690
======================================================================================================
12,973,345
======================================================================================================
MONTANA-0.62%
Helena (City of); Series 2009, COP 5.00% 01/01/29 400 396,500
- ------------------------------------------------------------------------------------------------------
Montana (State of) Facility Finance Authority
(Glendive Medical Center);
Series 2008 A, Master Loan Program RB 4.63% 07/01/18 1,010 1,022,443
- ------------------------------------------------------------------------------------------------------
Series 2008 A, Master Loan Program RB 4.75% 07/01/28 1,000 906,100
======================================================================================================
2,325,043
======================================================================================================
NEBRASKA-0.47%
Douglas (County of) School District No. 10
(Elkhorn Public Schools); Series 2009,
Unlimited Tax GO 5.45% 06/15/22 500 519,080
- ------------------------------------------------------------------------------------------------------
Nebraska (State of) Elementary & Secondary
School Finance Authority (Boys Town); Series
2008, Educational Facilities RB 4.75% 09/01/28 1,000 970,340
- ------------------------------------------------------------------------------------------------------
Nebraska Municipal Energy Agency; Series 2009 A,
Ref. Power Supply System RB (INS-Berkshire
Hathaway Assurance Corp.)(a) 5.13% 04/01/29 250 259,003
======================================================================================================
1,748,423
======================================================================================================
</Table>
See accompanying Notes to Financial Statements which are an integral part of the
financial statements.
14 AIM TAX-FREE INTERMEDIATE FUND
<Table>
<Caption>
PRINCIPAL
INTEREST MATURITY AMOUNT
RATE DATE (000) VALUE
- ------------------------------------------------------------------------------------------------------
NEVADA-0.77%
Nevada (State of); Series 1999 A, Capital
Improvement & Cultural Affairs Limited Tax GO 5.00% 02/01/10 $ 1,500 $ 1,515,840
- ------------------------------------------------------------------------------------------------------
Reno (City of) (Washoe Medical Center); Series
2005 A, RB (INS-Financial Security Assurance
Inc.)(a) 5.25% 06/01/17 1,300 1,339,026
======================================================================================================
2,854,866
======================================================================================================
NEW HAMPSHIRE-0.20%
New Hampshire (State of) Housing Financing
Authority;
Series 2008 E, Single Family Mortgage RB 5.05% 07/01/23 500 504,180
- ------------------------------------------------------------------------------------------------------
Series 2008 E, Single Family Mortgage RB 5.30% 07/01/28 250 251,368
======================================================================================================
755,548
======================================================================================================
NEW JERSEY-2.21%
New Jersey (State of) Transportation Trust Fund
Authority;
Series 1999 A, Transportation System RB(f) 5.50% 06/15/10 7,060 7,481,765
- ------------------------------------------------------------------------------------------------------
Series 1999 A, Transportation System RB 5.50% 06/15/10 720 748,483
======================================================================================================
8,230,248
======================================================================================================
NEW YORK-1.96%
New York (City of) Municipal Water Finance
Authority; Series 2007, VRD Water & Sewer
System RB(c)(d) 5.50% 06/15/33 5,000 5,000,000
- ------------------------------------------------------------------------------------------------------
New York (State of) Dormitory Authority (Frances
Schervier Obligated Group); Series 1997, RB
(INS-Financial Security Assurance Inc.)(a) 5.50% 07/01/10 1,205 1,268,793
- ------------------------------------------------------------------------------------------------------
New York (State of) Dormitory Authority (School
District Building Financing); Series 2008 D,
RB (INS-Assured Guaranty Ltd.)(a) 5.75% 10/01/24 1,000 1,055,370
======================================================================================================
7,324,163
======================================================================================================
NORTH CAROLINA-1.24%
Charlotte-Mecklenburg Hospital Authority
(Carolinas Healthcare);
Series 2007 A, Ref. Health Care System RB 5.00% 01/15/19 1,000 1,029,150
- ------------------------------------------------------------------------------------------------------
Series 2008 A, Ref. Health Care System RB 4.63% 01/15/26 1,000 948,950
- ------------------------------------------------------------------------------------------------------
North Carolina (State of) Eastern Municipal
Power Agency; Series 2008 C, Power System RB
(INS-Assured Guaranty Ltd.)(a) 6.00% 01/01/19 250 265,705
- ------------------------------------------------------------------------------------------------------
Oak Island (Town of) (Waste Water Project);
Series 2008 A, Enterprise System RB
(INS-National Public Finance Guarantee
Corp.)(a) 5.00% 06/01/20 1,065 1,134,183
- ------------------------------------------------------------------------------------------------------
Series 2008 A, Enterprise System RB
(INS-National Public Finance Guarantee
Corp.)(a) 5.00% 06/01/23 1,210 1,243,045
======================================================================================================
4,621,033
======================================================================================================
NORTH DAKOTA-0.46%
Burleigh (County of), (Medcenter One, Inc.);
Series 1999, Ref. Health Care RB
(INS-National Public Finance Guarantee
Corp.)(a) 5.25% 05/01/09 1,695 1,699,322
======================================================================================================
OHIO-1.60%
Buckeye (City of) Tobacco Settlement Financing
Authority; Series 2007 A-2, Sr. Asset-Backed
RB 5.38% 06/01/24 675 495,281
- ------------------------------------------------------------------------------------------------------
Cuyahoga (County of) (Walker Center Inc.);
Series 1998 II, VRD Hospital RB (INS-Ambac
Assurance Corp.)(a)(c)(d) 9.00% 01/15/23 3,500 3,500,000
- ------------------------------------------------------------------------------------------------------
Ohio (State of) Parks & Recreation Capital
Facilities; Series 2009 A II, RB 5.00% 12/01/19 1,825 1,967,241
======================================================================================================
5,962,522
======================================================================================================
OKLAHOMA-3.77%
Cleveland (County of) Justice Authority
(Detention Facility); Series 2009 A, Sales
Tax RB 5.00% 03/01/22 1,000 989,650
- ------------------------------------------------------------------------------------------------------
Grand River Dam Authority; Series 1993, Ref. RB
(INS-Ambac Assurance Corp.)(a) 5.50% 06/01/09 2,000 2,013,160
- ------------------------------------------------------------------------------------------------------
Mustang (City of) Improvement Authority; Series
1999, Utility RB (INS-Financial Security
Assurance Inc.)(a) 5.25% 10/01/09 275 279,007
- ------------------------------------------------------------------------------------------------------
Oklahoma (County of) Finance Authority (Oxford
Oaks, Watersedge & Gardens at Reding
Apartments); Series 2000, Ref. VRD MFH RB
(CEP-Federal National Mortgage
Association)(c)(d) 0.50% 07/15/30 7,300 7,300,000
- ------------------------------------------------------------------------------------------------------
</Table>
See accompanying Notes to Financial Statements which are an integral part of the
financial statements.
15 AIM TAX-FREE INTERMEDIATE FUND
<Table>
<Caption>
PRINCIPAL
INTEREST MATURITY AMOUNT
RATE DATE (000) VALUE
- ------------------------------------------------------------------------------------------------------
OKLAHOMA-(CONTINUED)
Oklahoma (State of) Industries Authority
(Oklahoma Medical Research Foundation);
Series 2008, RB 5.50% 07/01/29 $ 1,250 $ 1,167,625
- ------------------------------------------------------------------------------------------------------
Oklahoma (State of) Municipal Power Authority;
Series 2008 A, Power Supply System RB 5.25% 01/01/18 300 325,350
- ------------------------------------------------------------------------------------------------------
Series 2008 A, Power Supply System RB 5.38% 01/01/19 250 269,210
- ------------------------------------------------------------------------------------------------------
Series 2008 A, Power Supply System RB 5.88% 01/01/28 250 261,892
- ------------------------------------------------------------------------------------------------------
Tulsa Industrial Authority (University of
Tulsa); Series 2009, Ref. RB 5.00% 10/01/23 1,500 1,457,820
======================================================================================================
14,063,714
======================================================================================================
OREGON-0.46%
Oregon (State of) Department of Administrative
Services; Series 2009 A, Lottery RB 5.00% 04/01/28 500 502,340
- ------------------------------------------------------------------------------------------------------
Salem-Keizer School District No. 24J; Series
2009 B, Unlimited Tax GO(e) 5.24% 06/15/23 2,500 1,214,400
======================================================================================================
1,716,740
======================================================================================================
PENNSYLVANIA-2.75%
Harrisburg (City of) Authority (Harrisburg
University of Science); Series 2007 A,
University RB 5.40% 09/01/16 50 47,207
- ------------------------------------------------------------------------------------------------------
Pennsylvania (State of) Higher Educational
Facilities Authority (University of
Pennsylvania Health System); Series 2008 B,
RB 5.00% 08/15/13 1,000 1,054,410
- ------------------------------------------------------------------------------------------------------
Pennsylvania (State of) Turnpike Commission;
Series 2008 C, RB (INS-Assured Guaranty
Ltd.)(a) 6.00% 06/01/23 500 552,995
- ------------------------------------------------------------------------------------------------------
Philadelphia (City of);
Series 2009 B, Limited Tax GO (INS-Assured
Guaranty Ltd.)(a) 5.75% 07/15/17 1,000 1,090,430
- ------------------------------------------------------------------------------------------------------
Series 2009 B, Limited Tax GO (INS-Assured
Guaranty Ltd.)(a) 6.00% 07/15/18 1,000 1,090,900
- ------------------------------------------------------------------------------------------------------
Series 2009 B, Limited Tax GO (INS-Assured
Guaranty Ltd.)(a) 6.25% 07/15/23 2,000 2,144,560
- ------------------------------------------------------------------------------------------------------
Reading (City of); Series 2008, Unlimited Tax GO
(INS-Financial Security Assurance Inc.)(a) 5.63% 11/01/23 1,500 1,553,265
- ------------------------------------------------------------------------------------------------------
University of Pittsburgh Common Wealth System of
Higher Education (University Capital);
Series 2002 B, Ref. RB(b) 5.50% 09/15/13 1,000 1,097,720
- ------------------------------------------------------------------------------------------------------
Series 2005 A, RB(b) 5.50% 09/15/13 1,000 1,097,720
- ------------------------------------------------------------------------------------------------------
West Mifflin Area School District; Series 2009,
Limited Tax GO (INS-Financial Security
Assurance Inc.)(a) 5.50% 04/01/24 500 543,525
======================================================================================================
10,272,732
======================================================================================================
RHODE ISLAND-3.07%
Rhode Island Health & Educational Building Corp.
(Catholic School Pool Program Issue);
Series 2005 A, VRD Educational Facility RB
(LOC-RBS Citizens, N.A.)(c)(d)(g) 5.50% 04/01/35 4,000 4,000,000
- ------------------------------------------------------------------------------------------------------
Series 2009 A, VRD Educational Facility RB
(LOC-RBS Citizens, N.A.)(c)(d)(g) 5.50% 04/01/36 5,000 5,000,000
- ------------------------------------------------------------------------------------------------------
Rhode Island Health & Educational Building Corp.
(Lifespan Obligated Group); Series 2009 A,
Hospital Financing RB (INS-Assured Guaranty
Ltd.)(a) 6.13% 05/15/27 500 504,270
- ------------------------------------------------------------------------------------------------------
Rhode Island Health & Educational Building Corp.
(Public Schools Financing Program); Series
2007 B, RB (INS-Ambac Assurance Corp.)(a) 5.00% 05/15/21 1,000 1,060,140
- ------------------------------------------------------------------------------------------------------
Woonsocket (City of); Series 2000, Unlimited Tax
GO (INS-Financial Guaranty Insurance Co.)(a) 5.25% 10/01/10 840 881,143
======================================================================================================
11,445,553
======================================================================================================
SOUTH CAROLINA-2.01%
South Carolina (State of) Jobs-Economic
Development Authority (Palmetto Health
Alliance); Series 2005 A, Ref. RB
(INS-Financial Security Assurance Inc.)(a) 4.00% 08/01/17 1,500 1,435,185
- ------------------------------------------------------------------------------------------------------
South Carolina (State of) Public Service
Authority; Series 1999 A, RB (INS-National
Public Finance Guarantee Corp.)(a) 5.50% 01/01/10 1,000 1,035,340
- ------------------------------------------------------------------------------------------------------
South Carolina (State of) Transportation
Infrastructure Bank; Series 2004 A, RB
(INS-Ambac Assurance Corp.)(a) 5.25% 10/01/22 1,390 1,459,556
- ------------------------------------------------------------------------------------------------------
South Carolina (State of); Series 2001 B,
Capital Improvements Unlimited Tax GO 5.50% 04/01/11 1,000 1,089,890
- ------------------------------------------------------------------------------------------------------
</Table>
See accompanying Notes to Financial Statements which are an integral part of the
financial statements.
16 AIM TAX-FREE INTERMEDIATE FUND
<Table>
<Caption>
PRINCIPAL
INTEREST MATURITY AMOUNT
RATE DATE (000) VALUE
- ------------------------------------------------------------------------------------------------------
SOUTH CAROLINA-(CONTINUED)
Spartanburg (County of) Regional Health Services
District;
Series 2003 A, RB (INS-Assured Guaranty
Ltd.)(a) 4.50% 04/15/27 $ 1,735 $ 1,418,484
- ------------------------------------------------------------------------------------------------------
Series 2008 D, Ref. RB (INS-Assured Guaranty
Ltd.)(a) 5.25% 04/15/20 1,000 1,071,250
======================================================================================================
7,509,705
======================================================================================================
SOUTH DAKOTA-0.07%
South Dakota (State of) Housing Development
Authority (Home Ownership Mortgage); Series
2008 G, RB 5.10% 05/01/18 250 257,125
======================================================================================================
TENNESSEE-0.55%
Jackson (City of) (Jackson-Madison County
General Hospital Project); Series 2008, Ref.
& Improvement RB 5.25% 04/01/23 1,000 985,400
- ------------------------------------------------------------------------------------------------------
Shelby (County of) Health Educational & Housing
Facilities Board (Methodist
Healthcare-University Hospital) Series 2004
B, RB (INS-Financial Security Assurance
Inc.)(a) 5.00% 09/01/17 1,000 1,078,950
======================================================================================================
2,064,350
======================================================================================================
TEXAS-13.79%
Amarillo (City of) Health Facilities Corp.
(Baptist St. Anthony's Hospital); Series
1998, RB (INS-Financial Security Assurance
Inc.)(a) 5.50% 01/01/10 1,275 1,298,792
- ------------------------------------------------------------------------------------------------------
Austin (City of); Series 2001, Limited Tax
Certificates GO 5.00% 09/01/11 1,900 2,066,801
- ------------------------------------------------------------------------------------------------------
Corpus Christi Independent District; Series
2009, School Building Unlimited Tax GO 5.00% 08/15/22 1,500 1,579,305
- ------------------------------------------------------------------------------------------------------
Dallas (City of) (Civic Center Convention
Complex); Series 2009, Ref. & Improvement RB
(INS-Assured Guaranty Ltd.)(a) 5.00% 08/15/26 585 589,200
- ------------------------------------------------------------------------------------------------------
Dallas (County of) Utility & Reclamation
District,
Series 2005 A, Ref. Unlimited Tax GO
(INS-Ambac Assurance Corp.)(a) 5.00% 02/15/19 1,000 999,170
- ------------------------------------------------------------------------------------------------------
Series 2005 A, Ref. Unlimited Tax GO
(INS-Ambac Assurance Corp.)(a) 5.15% 02/15/21 3,000 2,955,360
- ------------------------------------------------------------------------------------------------------
Garland (City of); Series 2001, Limited Tax
Certificates GO (INS-National Public Finance
Guarantee Corp.)(a) 5.25% 02/15/11 2,435 2,613,656
- ------------------------------------------------------------------------------------------------------
Harris County Cultural Education Facilities
Finance Corp. (Baylor College of Medicine);
Series 2008 D, Ref. RB 5.13% 11/15/23 750 734,483
- ------------------------------------------------------------------------------------------------------
Harris County Cultural Education Facilities
Finance Corp. (Texas Medical Center); Series
2009 A, Ref. Special Facilities RB
(INS-Assured Guaranty Ltd.)(a) 5.00% 05/15/23 1,500 1,530,975
- ------------------------------------------------------------------------------------------------------
Harris County Health Facilities Development
Corp. (Memorial Hermann Hospital System);
Series 1998, Hospital RB (INS-Financial
Security Assurance Inc.)(a) 5.50% 06/01/09 2,500 2,517,950
- ------------------------------------------------------------------------------------------------------
Houston (City of) Convention & Entertainment
Facilities Department;
Series 2001 A, Ref. Hotel Occupancy and
Special Tax RB (INS-Ambac Assurance Corp.)(a) 5.50% 09/01/10 1,000 1,051,020
- ------------------------------------------------------------------------------------------------------
Series 2001 A, Ref. Hotel Occupancy and
Special Tax RB (INS-Ambac Assurance Corp.)(a) 5.50% 09/01/11 4,000 4,363,480
- ------------------------------------------------------------------------------------------------------
Series 2001 B, Hotel Occupancy and Special
Tax RB (INS-Ambac Assurance Corp.)(a) 5.25% 09/01/10 1,000 1,047,550
- ------------------------------------------------------------------------------------------------------
Series 2001 B, Hotel Occupancy and Special
Tax RB (INS-Ambac Assurance Corp.)(a) 5.25% 09/01/11 2,360 2,560,576
- ------------------------------------------------------------------------------------------------------
Series 2001 B, Hotel Occupancy and Special
Tax RB (INS-Ambac Assurance Corp.)(a) 5.50% 09/01/11 2,460 2,683,540
- ------------------------------------------------------------------------------------------------------
Katy (City of) Independent School District;
Series 1999 A, Unlimited Tax GO (CEP-Texas
Permanent School Fund) 5.20% 02/15/10 1,285 1,304,249
- ------------------------------------------------------------------------------------------------------
Lake Worth (City of); Series 2008, Limited Tax
Certificates GO (INS-Assured Guaranty
Ltd.)(a) 5.00% 10/01/27 1,230 1,266,543
- ------------------------------------------------------------------------------------------------------
Lower Colorado River Authority;
Series 1999 A, Ref. RB (INS-Financial
Security Assurance Inc.)(a) 5.88% 05/15/14 2,665 2,701,830
- ------------------------------------------------------------------------------------------------------
Series 1999 B, Ref. RB (INS-Financial
Security Assurance Inc.)(a) 6.00% 05/15/10 1,460 1,481,477
- ------------------------------------------------------------------------------------------------------
Mansfield (City of); Series 2008, Limited Tax
Certificates GO 6.13% 02/15/26 500 535,785
- ------------------------------------------------------------------------------------------------------
North Texas Municipal Water District; Series
2001, Water System RB (INS-National Public
Finance Guarantee Corp.)(a) 5.00% 09/01/11 1,040 1,131,302
- ------------------------------------------------------------------------------------------------------
North Texas Tollway Authority;
Series 2008 E-3, Ref. First Tier System RB(b) 5.75% 01/01/16 1,000 1,021,170
- ------------------------------------------------------------------------------------------------------
Series 2008 G, Ref. First Tier System RB(b) 5.00% 01/01/10 1,000 1,012,720
- ------------------------------------------------------------------------------------------------------
Series 2008 H, Ref. First Tier RB(b) 5.00% 01/01/13 3,150 3,200,242
- ------------------------------------------------------------------------------------------------------
Series 2008 L-2, Ref. First Tier System RB(b) 6.00% 01/01/13 1,000 1,050,030
- ------------------------------------------------------------------------------------------------------
</Table>
See accompanying Notes to Financial Statements which are an integral part of the
financial statements.
17 AIM TAX-FREE INTERMEDIATE FUND
<Table>
<Caption>
PRINCIPAL
INTEREST MATURITY AMOUNT
RATE DATE (000) VALUE
- ------------------------------------------------------------------------------------------------------
TEXAS-(CONTINUED)
Parker (County of); Series 2009, Unlimited Tax
Road Bonds (INS-Assured Guaranty Ltd.)(a) 5.25% 02/15/26 $ 1,000 $ 1,026,280
- ------------------------------------------------------------------------------------------------------
Sachse (City of); Series 2009, Ref. &
Improvement Limited Tax GO (INS-Assured
Guaranty Ltd.)(a) 5.00% 02/15/24 500 511,310
- ------------------------------------------------------------------------------------------------------
San Antonio (City of);
Series 1994, Electric & Gas RB 5.00% 02/01/12 2,375 2,583,549
- ------------------------------------------------------------------------------------------------------
Series 1998 A, Ref. Limited Tax GO 5.00% 02/01/11 1,490 1,490,939
- ------------------------------------------------------------------------------------------------------
Texas Woman's University; Series 2008, Revenue
Financing System RB 5.13% 07/01/26 1,500 1,501,515
- ------------------------------------------------------------------------------------------------------
West Harris County Regional Water Authority;
Series 2005, Water System RB (INS-Financial
Security Assurance Inc.)(a) 5.00% 12/15/17 1,000 1,058,820
======================================================================================================
51,469,619
======================================================================================================
UTAH-0.45%
Salt Lake Valley Fire Service Area; Series 2008,
Lease RB 5.00% 04/01/22 500 523,600
- ------------------------------------------------------------------------------------------------------
Tooele School District; Series 2001, Unlimited
Tax GO (CEP-Utah School Bond Guaranty) 4.50% 06/01/11 1,075 1,154,271
======================================================================================================
1,677,871
======================================================================================================
VERMONT-0.27%
Vermont Educational & Health Buildings Financing
Agency (Fletcher Allen Heath Care); Series
2004 B, RB (INS-Financial Security Assurance
Inc.)(a)(b) 5.00% 12/01/22 1,000 998,950
======================================================================================================
VIRGINIA-0.71%
Norton (City of) Industrial Development
Authority (Norton Community Hospital); Series
2001, Ref. & Improvement Hospital IDR
(INS-ACA Financial Guaranty Corp.)(a) 5.13% 12/01/10 1,315 1,320,155
- ------------------------------------------------------------------------------------------------------
Virginia (State of) Resources Authority (Clean
Water) Series 2008, Sub. Short-Term Revolving
RB 5.00% 10/01/29 1,315 1,342,917
======================================================================================================
2,663,072
======================================================================================================
WASHINGTON-6.74%
Energy Northwest (Project #3);
Series 2001 A, Ref. Electric RB
(INS-Financial Security Assurance Inc.)(a) 5.50% 07/01/10 1,000 1,053,190
- ------------------------------------------------------------------------------------------------------
Series 2001 A, Ref. Electric RB
(INS-Financial Security Assurance Inc.)(a) 5.50% 07/01/11 7,500 8,114,400
- ------------------------------------------------------------------------------------------------------
Seattle (City of); Series 2001, Ref. Municipal
Light & Power Improvements RB (INS-Financial
Security Assurance Inc.)(a) 5.25% 03/01/11 3,000 3,236,550
- ------------------------------------------------------------------------------------------------------
Snohomish (County of); Series 2001, Limited Tax
GO 5.25% 12/01/11 2,685 2,959,998
- ------------------------------------------------------------------------------------------------------
Washington (State of) (Department of Ecology);
Series 2001, Ref. COP (INS-Ambac Assurance
Corp.)(a) 4.75% 04/01/11 5,310 5,488,257
- ------------------------------------------------------------------------------------------------------
Washington (State of); Series 2001 R-A, Ref.
Unlimited Tax GO 5.00% 09/01/10 1,745 1,843,051
- ------------------------------------------------------------------------------------------------------
Washington Health Care Facilities Authority
(Multicare Health System); Series 2008 A, RB
(INS-Assured Guaranty Ltd.)(a) 5.75% 08/15/29 450 446,233
- ------------------------------------------------------------------------------------------------------
Washington Health Care Facilities Authority;
Series 2008, RB (CEP-FHA) 5.25% 08/01/23 1,000 971,020
- ------------------------------------------------------------------------------------------------------
Washington Higher Education Facilities Authority
(Gonzaga University); Series 2009, Ref. RB 5.38% 04/01/20 1,050 1,050,399
======================================================================================================
25,163,098
======================================================================================================
WEST VIRGINIA-0.31%
West Virginia (State of) Hospital Finance
Authority; Series 2003 D, Improvement RB
(INS-Financial Security Assurance Inc.)(a) 5.38% 06/01/28 1,200 1,165,680
======================================================================================================
WISCONSIN-1.65%
Fond du Lac (City of) School District; Series
2000, Ref. Unlimited Tax GO(b)(f) 5.25% 04/01/10 1,000 1,046,030
- ------------------------------------------------------------------------------------------------------
</Table>
See accompanying Notes to Financial Statements which are an integral part of the
financial statements.
18 AIM TAX-FREE INTERMEDIATE FUND
<Table>
<Caption>
PRINCIPAL
INTEREST MATURITY AMOUNT
RATE DATE (000) VALUE
- ------------------------------------------------------------------------------------------------------
WISCONSIN-(CONTINUED)
Wisconsin (State of);
Series 1993 2, Ref. Unlimited Tax GO 5.13% 11/01/11 $ 2,000 $ 2,182,620
- ------------------------------------------------------------------------------------------------------
Series 1999 C, Unlimited Tax GO 5.75% 05/01/10 2,000 2,106,460
- ------------------------------------------------------------------------------------------------------
Wisconsin Health & Educational Facilities
Authority (ThedaCare, Inc.); Series 2005, RB
(INS-Ambac Assurance Corp.)(a) 5.00% 12/15/16 855 832,599
======================================================================================================
6,167,709
======================================================================================================
WYOMING-0.27%
Wyoming (State of) Municipal Power Agency;
Series 2008 A, RB 5.38% 01/01/25 1,000 1,009,290
======================================================================================================
TOTAL INVESTMENTS-100.07% (Cost $367,761,447)(i) 373,355,940
======================================================================================================
OTHER ASSETS LESS LIABILITIES-(0.07)% (248,045)
======================================================================================================
NET ASSETS-100.00% $373,107,895
______________________________________________________________________________________________________
======================================================================================================
</Table>
Investment Abbreviations:
<Table>
CEP - Credit Enhancement Provider
COP - Certificates of Participation
FHLMC - Federal Home Loan Mortgage Corp.
FHA - Federal Housing Administration
FNMA - Federal National Mortgage Association
GNMA - Government National Mortgage Association
GO - General Obligation Bonds
IDR - Industrial Development Revenue Bonds
INS - Insurer
Jr. - Junior
LOC - Letter of Credit
MFH - Multi-Family Housing
PCR - Pollution Control Revenue Bonds
RAC - Revenue Anticipation Certificates
RB - Revenue Bonds
Ref - Refunding
Sec. - Secured
Sr. - Senior
Sub. - Subordinated
VRD - Variable Rate Demand
Wts. - Warrants
</Table>
Notes to Schedule of Investments:
(a) Principal and/or interest payments are secured by the bond insurance
company listed.
(b) Security has an irrevocable call by the issuer or mandatory put by the
holder. Maturity date reflects such call or put.
(c) Demand security payable upon demand by the Fund at specified time
intervals no greater than thirteen months. Interest rate is redetermined
periodically. Rate shown is the rate in effect on March 31, 2009.
(d) Security is considered a cash equivalent.
(e) Zero coupon bond issued at a discount. The interest rate shown represents
the yield to maturity at time of purchase.
(f) Advance refunded; secured by an escrow fund of U.S. Government obligations
or other highly rated collateral.
(g) Principal and interest payments are fully enhanced by a letter of credit
from the bank listed or a predecessor bank, branch or subsidiary.
(h) Security purchased or received in a transaction exempt from registration
under the Securities Act of 1933, as amended. The security may be resold
pursuant to an exemption from registration under the 1933 Act, typically
to qualified institutional buyers. The value of this security at March 31,
2009 represented 1.89% of the Fund's Net Assets.
(i) This table provides a listing of those entities that have either issued,
guaranteed, backed or otherwise enhanced the credit quality of more than
5% of the securities held in the portfolio. In instances where the entity
has guaranteed, backed or otherwise enhanced the credit quality of a
security, it is not primarily responsible for the issuer's obligations but
may be called upon to satisfy the issuer's obligations.
<Table>
<Caption>
ENTITIES PERCENTAGE
---------------------------------------------------------------------------------------------
Financial Security Assurance Inc. 16.7%
---------------------------------------------------------------------------------------------
Assured Guaranty Corp. 13.0
---------------------------------------------------------------------------------------------
Ambac Assurance Corp. 11.5
---------------------------------------------------------------------------------------------
National Public Finance Guarantee Corp. 7.8
_____________________________________________________________________________________________
=============================================================================================
</Table>
See accompanying Notes to Financial Statements which are an integral part of the
financial statements.
19 AIM TAX-FREE INTERMEDIATE FUND
STATEMENT OF ASSETS AND LIABILITIES
March 31, 2009
<Table>
ASSETS:
Investments, at value (Cost $367,761,447) $373,355,940
- --------------------------------------------------------------------------------
Receivables for:
Investments sold 3,965,874
- --------------------------------------------------------------------------------
Fund shares sold 2,962,276
- --------------------------------------------------------------------------------
Interest 4,329,047
- --------------------------------------------------------------------------------
Investment for trustee deferred compensation and retirement plans 27,200
- --------------------------------------------------------------------------------
Other assets 36,020
================================================================================
Total assets 384,676,357
________________________________________________________________________________
================================================================================
LIABILITIES:
Payables for:
Investments purchased 10,528,975
- --------------------------------------------------------------------------------
Fund shares reacquired 381,775
- --------------------------------------------------------------------------------
Amount due custodian 48,183
- --------------------------------------------------------------------------------
Dividends 433,790
- --------------------------------------------------------------------------------
Accrued fees to affiliates 63,393
- --------------------------------------------------------------------------------
Accrued other operating expenses 46,119
- --------------------------------------------------------------------------------
Trustee deferred compensation and retirement plans 66,227
================================================================================
Total liabilities 11,568,462
================================================================================
Net assets applicable to shares outstanding $373,107,895
________________________________________________________________________________
================================================================================
NET ASSETS CONSIST OF:
Shares of beneficial interest $366,531,875
- --------------------------------------------------------------------------------
Undistributed net investment income 1,446,176
- --------------------------------------------------------------------------------
Undistributed net realized gain (loss) (464,649)
- --------------------------------------------------------------------------------
Unrealized appreciation 5,594,493
================================================================================
$373,107,895
________________________________________________________________________________
================================================================================
NET ASSETS:
Class A $116,421,570
________________________________________________________________________________
================================================================================
Class A3 $224,508,090
________________________________________________________________________________
================================================================================
Class Y $ 29,834,034
________________________________________________________________________________
================================================================================
Institutional Class $ 2,344,201
________________________________________________________________________________
================================================================================
SHARES OUTSTANDING, $0.001 PAR VALUE PER SHARE, UNLIMITED NUMBER OF SHARES
AUTHORIZED:
Class A 10,861,394
________________________________________________________________________________
================================================================================
Class A3 20,951,533
________________________________________________________________________________
================================================================================
Class Y 2,784,137
________________________________________________________________________________
================================================================================
Institutional Class 219,008
________________________________________________________________________________
================================================================================
Class A:
Net asset value per share $ 10.72
- --------------------------------------------------------------------------------
Maximum offering price per share
(Net asset value of $10.72 divided by 99.00%) $ 10.83
________________________________________________________________________________
================================================================================
Class A3:
Net asset value and offering price per share $ 10.72
________________________________________________________________________________
================================================================================
Class Y:
Net asset value and offering price per share $ 10.72
________________________________________________________________________________
================================================================================
Institutional Class:
Net asset value and offering price per share $ 10.70
________________________________________________________________________________
================================================================================
</Table>
See accompanying Notes to Financial Statements which are an integral part of the
financial statements.
20 AIM TAX-FREE INTERMEDIATE FUND
STATEMENT OF OPERATIONS
For the year ended March 31, 2009
<Table>
INVESTMENT INCOME:
Interest $14,457,781
===============================================================================================
EXPENSES:
Advisory fees 866,353
- -----------------------------------------------------------------------------------------------
Administrative services fees 91,270
- -----------------------------------------------------------------------------------------------
Custodian fees 12,243
- -----------------------------------------------------------------------------------------------
Distribution Fees -- A3 306,929
- -----------------------------------------------------------------------------------------------
Transfer agent fees -- A, A3 and Y 116,324
- -----------------------------------------------------------------------------------------------
Transfer agent fees -- Institutional 1,203
- -----------------------------------------------------------------------------------------------
Trustees' and officers' fees and benefits 25,230
- -----------------------------------------------------------------------------------------------
Other 163,969
===============================================================================================
Total expenses 1,583,521
===============================================================================================
Less: Expenses reimbursed and expense offset arrangement(s) (1,413)
===============================================================================================
Net expenses 1,582,108
===============================================================================================
Net investment income 12,875,673
===============================================================================================
REALIZED AND UNREALIZED GAIN (LOSS) FROM:
Net realized gain (loss) from investment securities (430,404)
===============================================================================================
Change in net unrealized appreciation of investment securities 52,804
===============================================================================================
Net realized and unrealized gain (loss) (377,600)
===============================================================================================
Net increase in net assets resulting from operations $12,498,073
_______________________________________________________________________________________________
===============================================================================================
</Table>
See accompanying Notes to Financial Statements which are an integral part of the
financial statements.
21 AIM TAX-FREE INTERMEDIATE FUND
STATEMENT OF CHANGES IN NET ASSETS
For the years ended March 31, 2009 and 2008
<Table>
<Caption>
2009 2008
- --------------------------------------------------------------------------------------------------------
OPERATIONS:
Net investment income $ 12,875,673 $ 7,631,218
- --------------------------------------------------------------------------------------------------------
Net realized gain (loss) (430,404) 128,579
- --------------------------------------------------------------------------------------------------------
Change in net unrealized appreciation 52,804 295,814
========================================================================================================
Net increase in net assets resulting from operations 12,498,073 8,055,611
========================================================================================================
Distributions to shareholders from net investment income:
Class A (6,057,714) (6,318,225)
- --------------------------------------------------------------------------------------------------------
Class A3 (4,711,061) (1,343,377)
- --------------------------------------------------------------------------------------------------------
Class Y (713,178) --
- --------------------------------------------------------------------------------------------------------
Institutional Class (49,518) (34,682)
========================================================================================================
Total distributions from net investment income (11,531,471) (7,696,284)
========================================================================================================
Distributions to shareholders from net realized gains:
Class A (64,720) (1,011,322)
- --------------------------------------------------------------------------------------------------------
Class A3 (75,207) (228,067)
- --------------------------------------------------------------------------------------------------------
Class Y (19,457) --
- --------------------------------------------------------------------------------------------------------
Institutional Class (572) (3,784)
========================================================================================================
Total distributions from net realized gains (159,956) (1,243,173)
========================================================================================================
Share transactions-net:
Class A (49,919,830) 22,498,645
- --------------------------------------------------------------------------------------------------------
Class A3 185,907,926 (98,673)
- --------------------------------------------------------------------------------------------------------
Class Y 28,736,255 --
- --------------------------------------------------------------------------------------------------------
Institutional Class 1,450,963 (2,324,127)
========================================================================================================
Net increase in net assets resulting from share transactions 166,175,314 20,075,845
========================================================================================================
Net increase in net assets 166,981,960 19,191,999
========================================================================================================
NET ASSETS:
Beginning of year 206,125,935 186,933,936
========================================================================================================
End of year (includes undistributed net investment income of $1,446,176
and $103,803, respectively) $373,107,895 $206,125,935
________________________________________________________________________________________________________
========================================================================================================
</Table>
See accompanying Notes to Financial Statements which are an integral part of the
financial statements.
22 AIM TAX-FREE INTERMEDIATE FUND
NOTES TO FINANCIAL STATEMENTS
March 31, 2009
NOTE 1--SIGNIFICANT ACCOUNTING POLICIES
AIM Tax-Free Intermediate Fund (the "Fund") is a series portfolio of AIM Tax-
Exempt Funds (the "Trust"). The Trust is a Delaware statutory trust registered
under the Investment Company Act of 1940, as amended (the "1940 Act"), as an
open-end series management investment company consisting of three separate
portfolios, each authorized to issue an unlimited number of shares of beneficial
interest. The assets, liabilities and operations of each portfolio are accounted
for separately. Information presented in these financial statements pertains
only to the Fund. Matters affecting each portfolio or class will be voted on
exclusively by the shareholders of such portfolio or class.
The Fund's investment objective is to generate as high a level of tax-exempt
income as is consistent with preservation of capital.
The Fund currently consists of four different classes of shares: Class A,
Class A3, Class Y and Institutional Class. As of the close of business on
October 30, 2002, Class A shares are closed to new investors. Class A shares are
sold with a front-end sales charge unless certain waiver criteria are met and
under certain circumstances load waiver shares may be subject to contingent
deferred sales charges ("CDSC"). Class A3, Class Y and Institutional Class
shares are sold at net asset value.
The following is a summary of the significant accounting policies followed by
the Fund in the preparation of its financial statements.
A. SECURITY VALUATIONS -- Securities, including restricted securities, are
valued according to the following policy.
Securities are fair valued using an evaluated quote provided by an
independent pricing service approved by the Board of Trustees. Evaluated
quotes provided by the pricing service may be determined without exclusive
reliance on quoted prices and may reflect appropriate factors such as
institution-size trading in similar groups of securities, yield, quality,
coupon rate, maturity, type of issue, individual trading characteristics
and other market data. Short-term obligations, including commercial paper,
having 60 days or less to maturity are recorded at amortized cost which
approximates value. Securities with a demand feature exercisable within
one to seven days are valued at par. Debt securities are subject to
interest rate and credit risks. In addition, all debt securities involve
some risk of default with respect to interest and principal payments.
Securities for which market quotations either are not readily available
or are unreliable are valued at fair value as determined in good faith by
or under the supervision of the Trust's officers following procedures
approved by the Board of Trustees. Some of the factors which may be
considered in determining fair value are fundamental analytical data
relating to the investment; the nature and duration of any restrictions on
transferability or disposition; trading in similar securities by the same
issuer or comparable companies; relevant political, economic or issuer
specific news; and other relevant factors under the circumstances.
Valuations change in response to many factors including the historical
and prospective earnings of the issuer, the value of the issuer's assets,
general economic conditions, interest rates, investor perceptions and
market liquidity. Because of the inherent uncertainties of valuation, the
values reflected in the financial statements may materially differ from
the value received upon actual sale of those investments.
B. SECURITIES TRANSACTIONS AND INVESTMENT INCOME -- Securities transactions
are accounted for on a trade date basis. Realized gains or losses on sales
are computed on the basis of specific identification of the securities
sold. Interest income is recorded on the accrual basis from settlement
date. Dividend income is recorded on the ex-dividend date. Bond premiums
and discounts are amortized and/or accreted for financial reporting
purposes.
The Fund may periodically participate in litigation related to Fund
investments. As such, the Fund may receive proceeds from litigation
settlements. Any proceeds received are included in the Statement of
Operations as realized gain/loss for investments no longer held and as
unrealized gain/loss for investments still held.
Brokerage commissions and mark ups are considered transaction costs and
are recorded as an increase to the cost basis of securities purchased
and/or a reduction of proceeds on a sale of securities. Such transaction
costs are included in the determination of realized gain (loss) from
investment securities reported in the Statement of Operations and the
Statement of Changes in Net Assets and the realized net gains (losses) on
securities per share in the Financial Highlights. Transaction costs are
included in the calculation of the Fund's net asset value and,
accordingly, they reduce the Fund's total returns. These transaction costs
are not considered operating expenses and are not reflected in net
investment income reported in the Statement of Operations and Statement of
Changes in Net Assets, or the net investment income per share and ratios
of expenses and net investment income reported in the Financial
Highlights, nor are they limited by any expense limitation arrangements
between the Fund and the advisor.
The Fund allocates realized and unrealized capital gains and losses to a
class based on the relative net assets of each class. The Fund allocates
income to a class based on the relative value of the settled shares of
each class.
C. COUNTRY DETERMINATION -- For the purposes of making investment selection
decisions and presentation in the Schedule of Investments, the investment
advisor may determine the country in which an issuer is located and/or
credit risk exposure based on various factors. These factors include the
laws of the country under which the issuer is organized, where the issuer
maintains a principal office, the country in which the issuer derives 50%
or more of its total revenues and the country that has the primary market
for the issuer's securities, as well as other criteria. Among the other
criteria that may be evaluated for making this determination are the
country in which the issuer maintains 50% or more of its assets, the type
of security, financial guarantees and enhancements, the nature of the
collateral and the sponsor organization. Country of issuer and/or credit
risk exposure has been determined to be the United States of America,
unless otherwise noted.
D. DISTRIBUTIONS -- Distributions from income are declared daily and paid
monthly. Distributions from net realized capital gain, if any, are
generally paid annually and recorded on ex-dividend date. The Fund may
elect to treat a portion of the proceeds from redemptions as distributions
for federal income tax purposes.
E. FEDERAL INCOME TAXES -- The Fund intends to comply with the requirements
of Subchapter M of the Internal Revenue Code necessary to qualify as a
regulated investment company and to distribute substantially all of the
Fund's taxable and tax-exempt earnings to shareholders. As such, the Fund
will
23 AIM TAX-FREE INTERMEDIATE FUND
not be subject to federal income taxes on otherwise taxable income
(including net realized capital gain) that is distributed to shareholders.
Therefore, no provision for federal income taxes is recorded in the
financial statements.
In addition, the Fund intends to invest in such municipal securities to
allow it to qualify to pay shareholders "exempt-interest dividends", as
defined in the Internal Revenue Code.
The Fund files tax returns in the U.S. Federal jurisdiction and certain
other jurisdictions. Generally the Fund is subject to examinations by such
taxing authorities for up to three years after the filing of the return
for the tax period.
F. EXPENSES -- Fees provided for under the Rule 12b-1 plan of a particular
class of the Fund are charged to the operations of such class. Transfer
agency fees and expenses and other shareholder recordkeeping fees and
expenses attributable to the Institutional Class are charged to such
class. Transfer agency fees and expenses and other shareholder
recordkeeping fees and expenses relating to all other classes are
allocated among those classes based on relative net assets. All other
expenses are allocated among the classes based on relative net assets.
G. ACCOUNTING ESTIMATES -- The preparation of financial statements in
conformity with accounting principles generally accepted in the United
States of America requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities at the date of
the financial statements and the reported amounts of revenues and expenses
during the reporting period including estimates and assumptions related to
taxation. Actual results could differ from those estimates by a
significant amount.
H. INDEMNIFICATIONS -- Under the Trust's organizational documents, each
Trustee, officer, employee or other agent of the Trust is indemnified
against certain liabilities that may arise out of performance of their
duties to the Fund. Additionally, in the normal course of business, the
Fund enters into contracts, including the Fund's servicing agreements,
that contain a variety of indemnification clauses. The Fund's maximum
exposure under these arrangements is unknown as this would involve future
claims that may be made against the Fund that have not yet occurred. The
risk of material loss as a result of such indemnification claims is
considered remote.
I. OTHER RISKS -- The value of, payment of interest on, repayment of
principal for and the ability to sell a municipal security may be affected
by constitutional amendments, legislative enactments, executive orders,
administrative regulations, voter initiatives and the economics of the
regions in which the issuers are located.
Since, many municipal securities are issued to finance similar projects,
especially those relating to education, health care, transportation and
utilities, conditions in those sectors can affect the overall municipal
securities market and a Fund's investments in municipal securities.
There is some risk that a portion or all of the interest received from
certain tax-free municipal securities could become taxable as a result of
determinations by the Internal Revenue Service.
NOTE 2--ADVISORY FEES AND OTHER FEES PAID TO AFFILIATES
The Trust has entered into a master investment advisory agreement with Invesco
Aim Advisors, Inc. (the "Advisor" or "Invesco Aim"). Under the terms of the
investment advisory agreement, the Fund pays an advisory fee to the Advisor
based on the annual rate of the Fund's average daily net assets as follows:
<Table>
<Caption>
AVERAGE NET ASSETS RATE
- ------------------------------------------------------------------
First $500 million 0.30%
- ------------------------------------------------------------------
Over $500 million up to and including $1 billion 0.25%
- ------------------------------------------------------------------
Over $1 billion 0.20%
__________________________________________________________________
==================================================================
</Table>
Under the terms of a master sub-advisory agreement the Advisor and each of
Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited,
Invesco Asset Management (Japan) Limited, Invesco Australia Limited, Invesco
Global Asset Management (N.A.), Inc., Invesco Hong Kong Limited, Invesco
Institutional (N.A.), Inc., Invesco Senior Secured Management, Inc. and Invesco
Trimark Ltd. (collectively, the "Affiliated Sub-Advisors") the Advisor, not the
Fund, may pay 40% of the fees paid to the Advisor to any such Affiliated Sub-
Advisor(s) that provide discretionary investment management services to the Fund
based on the percentage of assets allocated to such Sub-Advisor(s).
At the request of the Trustees of the Trust, Invesco Ltd. ("Invesco") agreed
to reimburse expenses incurred by the Fund in connection with market timing
matters in the AIM Funds, which may include legal, audit, shareholder reporting,
communications and trustee expenses. These expenses along with the related
expense reimbursement are included in the Statement of Operations. For the year
ended March 31, 2009, Invesco reimbursed expenses of the Fund in the amount of
$333.
The Trust has entered into a master administrative services agreement with
Invesco Aim pursuant to which the Fund has agreed to pay Invesco Aim for certain
administrative costs incurred in providing accounting services to the Fund. For
the year ended March 31, 2009, expenses incurred under the agreement are shown
in the Statement of Operations as administrative services fees.
The Trust has entered into a transfer agency and service agreement with
Invesco Aim Investment Services, Inc. ("IAIS") pursuant to which the Fund has
agreed to pay IAIS a fee for providing transfer agency and shareholder services
to the Fund and reimburse IAIS for certain expenses incurred by IAIS in the
course of providing such services. IAIS may make payments to intermediaries that
provide omnibus account services, sub-accounting services and/or networking
services. All fees payable by IAIS to intermediaries that provide omnibus
account services or sub-accounting are charged back to the Fund, subject to
certain limitations approved by the Trust's Board of Trustees. For the year
ended March 31, 2009, expenses incurred under the agreement are shown in the
Statement of Operations as transfer agency fees.
The Trust has entered into master distribution agreements with Invesco Aim
Distributors, Inc. ("IADI") to serve as the distributor for the Class A, Class
A3, Class Y and Institutional Class shares of the Fund. The Trust has adopted
plans pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund's Class
A3 shares (the "Plan"). The Fund, pursuant to the Plan, pays IADI compensation
at the annual rate of 0.25% of the Fund's average daily net assets of Class A3
shares. Of the Plan payments, up to 0.25% of the average daily net assets of
each class of shares may be paid to furnish continuing personal shareholder
services to customers who purchase and own Class A3 shares of the Fund. Any
amounts not paid as a service fee under the Plan would constitute
24 AIM TAX-FREE INTERMEDIATE FUND
an asset-based sales charge. Rules of the Financial Industry Regulatory
Authority ("FINRA") also impose a cap on the total sales charges, including
asset-based sales charges that may be paid by any class of shares of the Fund.
For the year ended March 31, 2009, expenses incurred under the Plans are shown
in the Statement of Operations as distribution fees.
Front-end sales commissions and CDSC (collectively the "sales charges") are
not recorded as expenses of the Fund. Front-end sales commissions are deducted
from proceeds from the sales of Fund shares prior to investment in Class A
shares of the Fund. CDSC are deducted from redemption proceeds prior to
remittance to the shareholder. During the year ended March 31, 2009, IADI
advised the Fund that IADI retained $1,336 in front-end sales commissions from
the sale of Class A shares and $0 from Class A shares for CDSC imposed upon
redemptions by shareholders.
Certain officers and trustees of the Trust are officers and directors of
Invesco Aim, IAIS and/or IADI.
NOTE 3--SUPPLEMENTAL INFORMATION
The Fund adopted the provisions of Statement of Financial Accounting Standards
No. 157, "Fair Value Measurements" (SFAS 157), effective with the beginning of
the Fund's fiscal year. SFAS 157 defines fair value as the price that would be
received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date. SFAS 157
establishes a hierarchy that prioritizes the inputs to valuation methods giving
the highest priority to readily available unadjusted quoted prices in an active
market for identical assets (Level 1) and the lowest priority to significant
unobservable inputs (Level 3) generally when market prices are not readily
available or are unreliable. Based on the valuation inputs the securities or
other investments are tiered into one of three levels. Changes in valuation
methods may result in transfers in or out of an investment's assigned level:
Level 1 -- Prices are determined using quoted prices in an active market for
identical assets.
Level 2 -- Prices are determined using other significant observable inputs.
Observable inputs are inputs that other market participants may use in pricing
a security. These may include quoted prices for similar securities, interest
rates, prepayment speeds, credit risk and others.
Level 3 -- Prices are determined using significant unobservable inputs. In
situations where quoted prices or observable inputs are unavailable (for
example, when there is little or no market activity for an investment at the
end of the period), unobservable inputs may be used. Unobservable inputs
reflect the Fund's own assumptions about the factors market participants would
use in determining fair value of the securities or instruments and would be
based on the best available information.
Below is a summary of the tiered valuation input levels, as of the end of the
reporting period, March 31, 2009. The level assigned to the securities
valuations may not be an indication of the risk or liquidity associated with
investing in those securities. Because of the inherent uncertainties of
valuation, the values reflected in the financial statements may materially
differ from the value received upon actual sale of those investments.
<Table>
<Caption>
INVESTMENTS IN
INPUT LEVEL SECURITIES
- --------------------------------------
Level 1 $ --
- --------------------------------------
Level 2 373,355,940
- --------------------------------------
Level 3 --
======================================
$373,355,940
______________________________________
======================================
</Table>
NOTE 4--SECURITY TRANSACTIONS WITH AFFILIATED FUNDS
The Fund is permitted to purchase or sell securities from or to certain other
AIM Funds under specified conditions outlined in procedures adopted by the Board
of Trustees of the Trust. The procedures have been designed to ensure that any
purchase or sale of securities by the Fund from or to another fund or portfolio
that is or could be considered an affiliate by virtue of having a common
investment advisor (or affiliated investment advisors), common Trustees and/or
common officers complies with Rule 17a-7 of the 1940 Act. Further, as defined
under the procedures, each transaction is effected at the current market price.
Pursuant to these procedures, for the year ended March 31, 2009, the Fund
engaged in securities purchases of $39,846,472 and securities sales of
$9,753,144.
NOTE 5--EXPENSE OFFSET ARRANGEMENT
The expense offset arrangement is comprised of transfer agency credits which
result from balances in Demand Deposit Accounts (DDA) used by the transfer agent
for clearing shareholder transactions. For the year ended March 31, 2009, the
Fund received credits from this arrangement, which resulted in the reduction of
the Fund's total expenses of $1,080.
NOTE 6--TRUSTEES' AND OFFICERS' FEES AND BENEFITS
"Trustees' and Officers' Fees and Benefits" include amounts accrued by the Fund
to pay remuneration to certain Trustees and Officers of the Fund. Trustees have
the option to defer compensation payable by the Fund, and "Trustees' and
Officers' Fees and Benefits" also include amounts accrued by the Fund to fund
such deferred compensation amounts. Those Trustees who defer compensation have
the option to select various AIM Funds in which their deferral accounts shall be
deemed to be invested. Finally, certain current Trustees are eligible to
participate in a retirement plan that provides for benefits to be paid upon
retirement to Trustees over a period of time based on the number of years of
service. The Fund may have certain former Trustees who also participate in a
retirement plan and receive benefits under such plan. "Trustees' and Officers'
Fees and Benefits" include amounts accrued by the Fund to fund such retirement
benefits. Obligations under the deferred compensation and retirement plans
represent unsecured claims against the general assets of the Fund.
During the year ended March 31, 2009, the Fund paid legal fees of $4,846 for
services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the
Independent Trustees. A member of that firm is a Trustee of the Trust.
25 AIM TAX-FREE INTERMEDIATE FUND
NOTE 7--CASH BALANCES
The Fund may borrow for leveraging in an amount up to 5% of the Fund's total
assets (excluding the amount borrowed) at the time the borrowing is made. In
doing so, the Fund is permitted to temporarily carry a negative or overdrawn
balance in its account with The Bank of New York Mellon, the custodian bank. To
compensate the custodian bank for such overdrafts, the overdrawn Fund may either
(i) leave funds as a compensating balance in the account so the custodian bank
can be compensated by earning the additional interest; or (ii) compensate by
paying the custodian bank at a rate agreed upon by the custodian bank and
Invesco Aim, not to exceed the contractually agreed upon rate. A Fund may not
purchase additional securities when any borrowings from banks exceeds 5% of the
Fund's total assets.
NOTE 8--DISTRIBUTIONS TO SHAREHOLDERS AND TAX COMPONENTS OF NET ASSETS
TAX CHARACTER OF DISTRIBUTIONS TO SHAREHOLDERS PAID DURING THE YEARS ENDED MARCH
31, 2009 AND 2008:
<Table>
<Caption>
2009 2008
- -------------------------------------------------------------------------------------------------------
Ordinary income $ -- $ 56,372
- -------------------------------------------------------------------------------------------------------
Ordinary income -- Tax exempt 11,535,396 7,696,273
- -------------------------------------------------------------------------------------------------------
Long-term capital gain 156,031 1,186,812
=======================================================================================================
Total distributions $11,691,427 $8,939,457
_______________________________________________________________________________________________________
=======================================================================================================
</Table>
TAX COMPONENTS OF NET ASSETS AT PERIOD-END:
<Table>
<Caption>
2009
- ------------------------------------------------------------------------------------------------
Undistributed ordinary income -- Tax exempt $ 1,527,731
- ------------------------------------------------------------------------------------------------
Net unrealized appreciation -- investments 5,594,493
- ------------------------------------------------------------------------------------------------
Temporary book/tax differences (81,555)
- ------------------------------------------------------------------------------------------------
Capital loss carryover (269,784)
- ------------------------------------------------------------------------------------------------
Post-October deferrals (194,865)
- ------------------------------------------------------------------------------------------------
Shares of beneficial interest 366,531,875
================================================================================================
Total net assets $373,107,895
________________________________________________________________________________________________
================================================================================================
</Table>
The temporary book/tax differences are a result of timing differences between
book and tax recognition of income and/or expenses. The Fund's temporary
book/tax differences are the result of the trustee deferral of compensation and
retirement plan benefits.
Capital loss carryforward is calculated and reported as of a specific date.
Results of transactions and other activity after that date may affect the amount
of capital loss carryforward actually available for the Fund to utilize. The
ability to utilize capital loss carryforward in the future may be limited under
the Internal Revenue Code and related regulations based on the results of future
transactions.
The Fund has a capital loss carryforward as of March 31, 2009 which expires as
follows:
<Table>
<Caption>
CAPITAL LOSS
EXPIRATION CARRYFORWARD*
- -----------------------------------------------------------------------------------------------
March 31, 2017 $269,784
_______________________________________________________________________________________________
===============================================================================================
</Table>
* Capital loss carryforward as of the date listed above is reduced for
limitations, if any, to the extent required by the Internal Revenue Code.
NOTE 9--INVESTMENT SECURITIES
The aggregate amount of investment securities (other than short-term securities,
U.S. Treasury obligations and money market funds, if any) purchased and sold by
the Fund during the year ended March 31, 2009 was $167,015,603 and $56,151,792,
respectively. Cost of investments on a tax basis includes the adjustments for
financial reporting purposes as of the most recently completed Federal income
tax reporting period-end.
<Table>
<Caption>
UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENT SECURITIES ON A TAX BASIS
- ------------------------------------------------------------------------------------------------
Aggregate unrealized appreciation of investment securities $ 9,195,510
- ------------------------------------------------------------------------------------------------
Aggregate unrealized (depreciation) of investment securities (3,601,017)
================================================================================================
Net unrealized appreciation of investment securities $ 5,594,493
________________________________________________________________________________________________
================================================================================================
Investments have the same cost for tax and financial statement purposes.
</Table>
NOTE 10--RECLASSIFICATION OF PERMANENT DIFFERENCES
Primarily as a result of differing book/tax treatment of certain proxy costs and
distributions, on March 31, 2009, undistributed net investment income was
decreased by $1,829, undistributed net realized gain (loss) was increased by
$3,925 and shares of beneficial interest decreased by $2,096. This
reclassification had no effect on the net assets of the Fund.
26 AIM TAX-FREE INTERMEDIATE FUND
NOTE 11--SHARE INFORMATION
<Table>
<Caption>
SUMMARY OF SHARE ACTIVITY
- ------------------------------------------------------------------------------------------------------------------------
YEAR ENDED MARCH 31,
-----------------------------------------------------------
2009(a) 2008
--------------------------- ---------------------------
SHARES AMOUNT SHARES AMOUNT
- ------------------------------------------------------------------------------------------------------------------------
Sold:
Class A 1,958,933 $ 20,915,557 6,548,626 $ 70,248,412
- ------------------------------------------------------------------------------------------------------------------------
Class A3 24,041,565 255,830,915 1,506,817 16,135,522
- ------------------------------------------------------------------------------------------------------------------------
Class Y(b) 3,779,870 39,435,685 -- --
- ------------------------------------------------------------------------------------------------------------------------
Institutional Class 200,126 2,117,885 81,238 870,244
========================================================================================================================
Issued as reinvestment of dividends:
Class A 232,541 2,460,308 322,507 3,450,087
- ------------------------------------------------------------------------------------------------------------------------
Class A3 363,056 3,838,583 117,252 1,254,125
- ------------------------------------------------------------------------------------------------------------------------
Class Y 11,451 121,044 -- --
- ------------------------------------------------------------------------------------------------------------------------
Institutional Class 4,324 45,765 2,121 22,645
========================================================================================================================
Reacquired:
Class A(b) (6,966,468) (73,295,695) (4,764,421) (51,199,854)
- ------------------------------------------------------------------------------------------------------------------------
Class A3(b) (6,990,938) (73,761,572) (1,632,773) (17,488,320)
- ------------------------------------------------------------------------------------------------------------------------
Class Y (1,007,184) (10,820,474) -- --
- ------------------------------------------------------------------------------------------------------------------------
Institutional Class (67,711) (712,687) (300,042) (3,217,016)
========================================================================================================================
Net increase in share activity 15,559,565 $166,175,314 1,881,325 $ 20,075,845
________________________________________________________________________________________________________________________
========================================================================================================================
</Table>
(a) There are entities that are record owners of more than 5% of the
outstanding shares of the Fund and in the aggregate own 16% of the
outstanding shares of the Fund. IADI has an agreement with these entities
to sell Fund shares. The Fund, Invesco Aim and/or Invesco Aim affiliates
may make payments to these entities, which are considered to be related to
the Fund, for providing services to the Fund, Invesco Aim and/or Invesco
Aim affiliates including but not limited to services such as securities
brokerage, distribution, third party record keeping and account servicing.
The Trust has no knowledge as to whether all or any portion of the shares
owned of record by these entities are also owned beneficially.
(b) Effective upon the commencement date of Class Y shares, October 3, 2008,
the following shares were converted from Class A and Class A3 into Class Y
shares of the Fund:
<Table>
<Caption>
CLASS SHARES AMOUNT
------------------------------------------------------------------------------------------------------
Class Y 3,420,676 $ 35,643,445
------------------------------------------------------------------------------------------------------
Class A (3,232,497) (33,682,616)
------------------------------------------------------------------------------------------------------
Class A3 (188,179) (1,960,829)
______________________________________________________________________________________________________
======================================================================================================
</Table>
27 AIM TAX-FREE INTERMEDIATE FUND
NOTE 12--FINANCIAL HIGHLIGHTS
The following schedule presents financial highlights for a share of the Fund
outstanding throughout the periods indicated.
<Table>
<Caption>
NET GAINS
NET ASSET (LOSSES) ON DIVIDENDS DISTRIBUTIONS
VALUE, NET SECURITIES (BOTH TOTAL FROM FROM NET FROM NET
BEGINNING INVESTMENT REALIZED AND INVESTMENT INVESTMENT REALIZED TOTAL
OF PERIOD INCOME UNREALIZED) OPERATIONS INCOME GAINS DISTRIBUTIONS
- ------------------------------------------------------------------------------------------------------------------------
CLASS A
Year ended 03/31/09 $10.70 $0.48(c) $(0.02) $ 0.46 $(0.43) $(0.01) $(0.44)
Year ended 03/31/08 10.76 0.45(c) 0.02 0.47 (0.45) (0.08) (0.53)
Year ended 03/31/07 10.92 0.46 (0.09) 0.37 (0.48) (0.05) (0.53)
Year ended 03/31/06 11.21 0.47 (0.26) 0.21 (0.50) -- (0.50)
Year ended 03/31/05 11.69 0.49 (0.49) (0.00) (0.48) -- (0.48)
- ------------------------------------------------------------------------------------------------------------------------
CLASS A3
Year ended 03/31/09 10.70 0.46(c) (0.02) 0.44 (0.41) (0.01) (0.42)
Year ended 03/31/08 10.76 0.43(c) 0.02 0.45 (0.43) (0.08) (0.51)
Year ended 03/31/07 10.92 0.46 (0.12) 0.34 (0.45) (0.05) (0.50)
Year ended 03/31/06 11.21 0.42 (0.24) 0.18 (0.47) -- (0.47)
Year ended 03/31/05 11.69 0.43 (0.47) (0.04) (0.44) -- (0.44)
- ------------------------------------------------------------------------------------------------------------------------
CLASS Y
Year ended 03/31/09(e) 10.42 0.24(c) 0.28 0.52 (0.21) (0.01) (0.22)
- ------------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL CLASS
Year ended 03/31/09 10.69 0.48(c) (0.03) 0.45 (0.43) (0.01) (0.44)
Year ended 03/31/08 10.75 0.45(c) 0.02 0.47 (0.45) (0.08) (0.53)
Year ended 03/31/07 10.92 0.46 (0.10) 0.36 (0.48) (0.05) (0.53)
Year ended 03/31/06 11.21 0.45 (0.24) 0.21 (0.50) -- (0.50)
Year ended 03/31/05(e) 11.40 0.32 (0.19) 0.13 (0.32) -- (0.32)
________________________________________________________________________________________________________________________
========================================================================================================================
<Caption>
RATIO OF RATIO OF
EXPENSES EXPENSES
TO AVERAGE TO AVERAGE NET RATIO OF NET
NET ASSETS ASSETS WITHOUT INVESTMENT
NET ASSET NET ASSETS, WITH FEE WAIVERS FEE WAIVERS INCOME
VALUE, END TOTAL END OF PERIOD AND/OR EXPENSES AND/OR EXPENSES TO AVERAGE PORTFOLIO
OF PERIOD RETURN(a) (000S OMITTED) ABSORBED ABSORBED NET ASSETS TURNOVER(b)
- ------------------------------------------------------------------------------------------------------------------------------
CLASS A
Year ended 03/31/09 $10.72 4.44% $116,422 0.44%(d) 0.44%(d) 4.57%(d) 22%
Year ended 03/31/08 10.70 4.50 167,381 0.48 0.48 4.18 19
Year ended 03/31/07 10.76 3.49 145,563 0.50 0.50 4.24 11
Year ended 03/31/06 10.92 1.87 194,526 0.46 0.46 4.16 9
Year ended 03/31/05 11.21 (0.01) 246,946 0.43 0.44 4.09 4
- ------------------------------------------------------------------------------------------------------------------------------
CLASS A3
Year ended 03/31/09 10.72 4.18 224,508 0.69(d) 0.69(d) 4.32(d) 22
Year ended 03/31/08 10.70 4.24 37,865 0.73 0.73 3.93 19
Year ended 03/31/07 10.76 3.23 38,156 0.75 0.75 3.99 11
Year ended 03/31/06 10.92 1.57 128,946 0.73 0.73 3.89 9
Year ended 03/31/05 11.21 (0.37) 97,651 0.78 0.79 3.74 4
- ------------------------------------------------------------------------------------------------------------------------------
CLASS Y
Year ended 03/31/09(e) 10.72 5.01 29,834 0.45(d)(f) 0.45(d)(f) 4.56(d)(f) 22
- ------------------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL CLASS
Year ended 03/31/09 10.70 4.28 2,344 0.50(d) 0.50(d) 4.51(d) 22
Year ended 03/31/08 10.69 4.46 879 0.53 0.53 4.13 19
Year ended 03/31/07 10.75 3.43 3,215 0.52 0.52 4.22 11
Year ended 03/31/06 10.92 1.91 46,992 0.41 0.41 4.21 9
Year ended 03/31/05(e) 11.21 1.13 32,779 0.42(f) 0.43(f) 4.10(f) 4
______________________________________________________________________________________________________________________________
==============================================================================================================================
</Table>
(a) Includes adjustments in accordance with accounting principles generally
accepted in the United States of America and as such, the net asset value
for financial reporting purposes and the returns based upon those net
asset values may differ from the net asset value and returns for
shareholder transactions. Does not include sales charges and is not
annualized for periods less than one year, if applicable.
(b) Portfolio turnover is calculated at the fund level and is not annualized
for periods less than one year, if applicable.
(c) Calculated using average shares outstanding.
(d) Ratios are based on average daily net assets (000's omitted) of $147,559,
$122,772, $35,512 and $1,232 for Class A, Class A3, Class Y and
Institutional Class shares, respectively.
(e) Commencement date of October 3, 2008 and July 30, 2004 for Class Y and
Institutional Class shares, respectively.
(f) Annualized.
28 AIM TAX-FREE INTERMEDIATE FUND
NOTE 13--LEGAL PROCEEDINGS
Terms used in the Legal Proceedings Note are defined terms solely for the
purpose of this note.
PENDING LITIGATION AND REGULATORY INQUIRIES
Civil lawsuits, including purported class action and shareholder derivative
suits, have been filed against certain of the AIM Funds, Invesco Funds Group,
Inc. ("IFG"), Invesco Aim, IADI and/or related entities and individuals alleging
that the defendants permitted improper market timing and related activity in the
AIM Funds.
These lawsuits allege as theories of recovery, depending on the lawsuit,
violations of various provisions of the Federal and state securities laws and
the Employee Retirement Income Security Act of 1974, as amended ("ERISA"),
negligence, breach of fiduciary duty and/or breach of contract. These lawsuits
seek remedies that include, depending on the lawsuit, damages, restitution,
injunctive relief, imposition of a constructive trust, removal of certain
directors and/or employees, various corrective measures under ERISA, rescission
of certain AIM Funds' advisory agreements and/or distribution plans and recovery
of all fees paid.
All lawsuits based on allegations of market timing, late trading and related
issues were transferred to the United States District Court for the District of
Maryland (the "MDL Court"). Pursuant to an Order of the MDL Court, plaintiffs in
these lawsuits consolidated their claims for pre-trial purposes into three
amended complaints against various Invesco Aim- and IFG-related parties: (i) a
Consolidated Amended Class Action Complaint purportedly brought on behalf of
shareholders of the AIM Funds; (ii) a Consolidated Amended Fund Derivative
Complaint purportedly brought on behalf of the AIM Funds and fund registrants;
and (iii) an Amended Class Action Complaint for Violations of ERISA purportedly
brought on behalf of participants in the Invesco 401(k) plan. Based on orders
issued by the MDL Court, all claims asserted against the AIM Funds that have
been transferred to the MDL Court have been dismissed, although certain Funds
remain nominal defendants in the Consolidated Amended Fund Derivative Complaint.
On January 5, 2008, the parties reached an agreement in principle to settle both
the Consolidated Amended Class Action Complaint and Consolidated Amended Fund
Derivative Complaint, subject to the MDL Court approval. Individual class
members have the right to object. On December 15, 2008, the parties reached an
agreement in principle to settle the Amended Class Action Complaint for
Violations of ERISA, subject to the MDL Court approval. Individual class members
have the right to object. No payments are required under the settlement;
however, the parties agreed that certain limited changes to benefit plans and
participants' accounts would be made.
IFG, Invesco Aim, IADI and/or related entities and individuals have received
inquiries from numerous regulators in the form of subpoenas or other oral or
written requests for information and/or documents related to one or more of the
following issues, among others, some of which concern one or more AIM Funds:
market timing activity, late trading, fair value pricing, excessive or improper
advisory and/or distribution fees, mutual fund sales practices, including
revenue sharing and directed-brokerage arrangements, investments in securities
of other registered investment companies, contractual plans, issues related to
Section 529 college savings plans and procedures for locating lost security
holders. IFG, Invesco Aim and IADI have advised the Fund that they are providing
full cooperation with respect to these inquiries. Regulatory actions and/or
additional civil lawsuits related to these or other issues may be filed against
the AIM Funds, IFG, Invesco Aim, IADI and/or related entities and individuals in
the future.
Management of Invesco Aim and the Fund believe that the outcome of the Pending
Litigation and Regulatory Inquiries described above will have no material
adverse affect on the Fund or on the ability of Invesco Aim and IADI to provide
ongoing services to the Fund.
29 AIM TAX-FREE INTERMEDIATE FUND
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Trustees of AIM Tax-Exempt Funds
and Shareholders of AIM Tax-Free Intermediate Fund:
In our opinion, the accompanying statement of assets and liabilities, including
the schedule of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of AIM Tax-Free Intermediate Fund (one
of the funds constituting AIM Tax-Exempt Funds, hereafter referred to as the
"Fund") at March 31, 2009, the results of its operations 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 accounting principles generally accepted in the
United States of America. These financial statements and financial highlights
(hereafter referred to as "financial statements") are the responsibility of the
Fund's management. Our responsibility is to express an opinion on these
financial statements based on our audits. We conducted our audits of these
financial statements 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 are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation.
We believe that our audits, which included confirmation of securities at March
31, 2009, by correspondence with the custodian and brokers, provide a reasonable
basis for our opinion. The financial highlights for the period ended March 31,
2005 were audited by another independent registered public accounting firm whose
report, dated May 18, 2005 expressed an unqualified opinion on those financial
highlights.
PRICEWATERHOUSECOOPERS LLP
May 15, 2009
Houston, Texas
30 AIM TAX-FREE INTERMEDIATE FUND
CALCULATING YOUR ONGOING FUND EXPENSES
EXAMPLE
As a shareholder of the Fund, you incur two types of costs: (1) transaction
costs, which may include sales charges (loads) on purchase payments or
contingent deferred sales charges on redemptions, and redemption fees, if any;
and (2) ongoing costs, including management fees; distribution and/or service
(12b-1) fees; and other Fund expenses. This example is intended to help you
understand your ongoing costs (in dollars) of investing in the Fund and to
compare these costs with ongoing costs of investing in other mutual funds. With
the exception of the actual ending account value and expenses of the Class Y
shares, the example is based on an investment of $1,000 invested at the
beginning of the period and held for the entire period October 1, 2008, through
March 31, 2009. The actual ending account and expenses of the Class Y shares in
the below example are based on an investment of $1,000 invested as of close of
business October 3, 2008 (commencement date) and held through March 31, 2009.
ACTUAL EXPENSES
The table below provides information about actual account values and actual
expenses. You may use the information in this table, together with the amount
you invested, to estimate the expenses that you paid over the period. Simply
divide your account value by $1,000 (for example, an $8,600 account value
divided by $1,000 = 8.6), then multiply the result by the number in the table
under the heading entitled "Actual Expenses Paid During Period" to estimate the
expenses you paid on your account during this period (as of close of business
October 3, 2008 through March 31, 2009 for the Class Y shares). Because the
actual ending account value and expense information in the example is not based
upon a six month period for the Class Y shares, the ending account value and
expense information may not provide a meaningful comparison to mutual funds that
provide such information for a full six month period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The table below also provides information about hypothetical account values and
hypothetical expenses based on the Fund's actual expense ratio and an assumed
rate of return of 5% per year before expenses, which is not the Fund's actual
return.
The hypothetical account values and expenses may not be used to estimate the
actual ending account balance or expenses you paid for the period. You may use
this information to compare the ongoing costs of investing in the Fund and other
funds. To do so, compare this 5% hypothetical example with the 5% hypothetical
examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transaction costs, such as sales
charges (loads) on purchase payments, contingent deferred sales charges on
redemptions, and redemption fees, if any. Therefore, the hypothetical
information is useful in comparing ongoing costs only, and will not help you
determine the relative total costs of owning different funds. In addition, if
these transaction costs were included, your costs would have been higher.
<Table>
<Caption>
- ---------------------------------------------------------------------------------------------------
HYPOTHETICAL
(5% ANNUAL RETURN BEFORE
ACTUAL EXPENSES)
------------------------------------------------------
BEGINNING ENDING EXPENSES ENDING EXPENSES ANNUALIZED
ACCOUNT VALUE ACCOUNT VALUE PAID DURING ACCOUNT VALUE PAID DURING EXPENSE
CLASS (10/01/08) (03/31/09)(1) PERIOD(2) (03/31/09) PERIOD(2,3) RATIO
- ---------------------------------------------------------------------------------------------------
A $1,000.00 $1,050.70 $2.30 $1,022.69 $2.27 0.45%
- ---------------------------------------------------------------------------------------------------
A3 1,000.00 1,049.40 3.58 1,021.44 3.53 0.70
- ---------------------------------------------------------------------------------------------------
Y 1,000.00 1,050.10 2.27 1,022.69 2.27 0.45
- ---------------------------------------------------------------------------------------------------
</Table>
(1) The actual ending account value is based on the actual total return of the
Fund for the period October 1, 2008, through March 31, 2009 (as of close of
business October 3, 2008, through March 31, 2009 for the Class Y shares),
after actual expenses and will differ from the hypothetical ending account
value which is based on the Fund's expense ratio and a hypothetical annual
return of 5% before expenses.
(2) Expenses are equal to the Fund's annualized expense ratio as indicated above
multiplied by the average account value over the period, multiplied by
182/365 to reflect the most recent fiscal half year. For the Class Y shares
actual expenses are equal to the annualized expense ratio indicated above
multiplied by the average account value over the period, multiplied by 180
(as of close of business Ocotber 3, 2008, through March 31, 2009)/365.
Because the Class Y shares have not been in existence for a full six month
period, the actual ending account value and expense information shown may
not provide a meaningful comparison to fund expense information of classes
that show such data for a full six month period and, because the actual
ending account value and expense information in the expense example covers a
short time period, return and expense data may not be indicative of return
and expense data for longer time periods.
(3) Hypothetical expenses are equal to the annualized expense ratio indicated
above multiplied by the average account value over the period, multiplied by
182/365 to reflect a one-half year period. The hypothetical ending account
value and expenses may be used to compare ongoing costs of investing in
Class Y shares of the Fund and other funds because such data is based on a
full six month period.
31 AIM TAX-FREE INTERMEDIATE FUND
TAX INFORMATION
Form 1099-INT, and other year-end tax information provide shareholders with
actual calendar year amounts that should be included in their tax returns.
Shareholders should consult their tax advisors.
The following distribution information is being provided as required by the
Internal Revenue Code.
The Fund designates the following amounts or, if subsequently determined to be
different, the maximum amount allowable for its fiscal year ended March 31,
2009:
<Table>
<Caption>
FEDERAL INCOME TAX
------------------
Long-Term Capital Gain Dividends $156,031
Tax-Exempt Interest Dividends* 100%
</Table>
* The above percentage is based on ordinary income dividends paid to
shareholders during the Fund's fiscal year.
NON-RESIDENT ALIEN SHAREHOLDER INFORMATION
The percentages of qualifying assets not subject to the U.S. estate tax for the
fiscal quarters ended June 30, 2008, September 30, 2008, December 31, 2008 and
March 31, 2009 were 99.81%, 99.86%, 99.98%, and 99.99%, respectively.
32 AIM TAX-FREE INTERMEDIATE FUND
TRUSTEES AND OFFICERS
The address of each trustee and officer of AIM Tax-Exempt Funds (the "Trust"),
is 11 Greenway Plaza, Suite 100, Houston, Texas 77046-1173. Each trustee
oversees 102 portfolios in the AIM Funds complex. The trustees serve for the
life of the Trust, subject to their earlier death, incapacitation, resignation,
retirement or removal as more specifically provided in the Trust's
organizational documents. Each officer serves for a one year term or until their
successors are elected and qualified. Column two below includes length of time
served with predecessor entities, if any.
<Table>
<Caption>
NAME, YEAR OF BIRTH AND TRUSTEE AND/ OTHER
POSITION(S) HELD WITH THE OR OFFICER PRINCIPAL OCCUPATION(S) DIRECTORSHIP(S)
TRUST SINCE DURING PAST 5 YEARS HELD BY TRUSTEE
- --------------------------------------------------------------------------------------------------------------------------------
INTERESTED PERSONS
- --------------------------------------------------------------------------------------------------------------------------------
Martin L. 2007 Executive Director, Chief Executive Officer and President, None
Flanagan(1) -- 1960 Invesco Ltd. (ultimate parent of Invesco Aim and a global
Trustee investment management firm); Chairman, Invesco Aim Advisors,
Inc. (registered investment advisor); Trustee, The AIM
Family of Funds--Registered Trademark--; Vice Chairman,
Investment Company Institute; and Member of Executive Board,
SMU Cox School of Business
Formerly: Director, Chairman, Chief Executive Officer and
President, IVZ Inc. (holding company), INVESCO Group
Services, Inc. (service provider) and Invesco North American
Holdings, Inc. (holding company); Director, Chief Executive
Officer and President, Invesco Holding Company Limited
(parent of Invesco Aim and a global investment management
firm); Chairman, Investment Company Institute; President,
Co-Chief Executive Officer, Co-President, Chief Operating
Officer and Chief Financial Officer, Franklin Resources,
Inc. (global investment management organization)
- --------------------------------------------------------------------------------------------------------------------------------
Philip A. Taylor(2) -- 1954 2006 Head of North American Retail and Senior Managing Director, None
Trustee, President and Invesco Ltd.; Director, Chief Executive Officer and
Principal President, Invesco Trimark Dealer Inc. (formerly AIM Mutual
Executive Officer Fund Dealer Inc.) (registered broker dealer), Invesco Aim
Advisors, Inc., and 1371 Preferred Inc. (holding company);
Director, Chairman, Chief Executive Officer and President,
Invesco Aim Management Group, Inc. (financial services
holding company) and Invesco Aim Capital Management, Inc.
(registered investment advisor); Director and President,
INVESCO Funds Group, Inc. (registered investment advisor and
register transfer agent) and AIM GP Canada Inc. (general
partner for a limited partnership); Director, Invesco Aim
Distributors, Inc. (registered broker dealer); Director and
Chairman, Invesco Aim Investment Services, Inc. (registered
transfer agent) and INVESCO Distributors, Inc. (registered
broker dealer); Director, President and Chairman, INVESCO
Inc. (holding company) and Invesco Canada Holdings Inc.
(holding company); Chief Executive Officer, AIM Trimark
Corporate Class Inc. (corporate mutual fund company) and AIM
Trimark Canada Fund Inc. (corporate mutual fund company);
Director and Chief Executive Officer, Invesco Trimark
Ltd./Invesco Trimark Ltee (formerly AIM Funds Management
Inc. d/b/a INVESCO Enterprise Services) (registered
investment advisor and registered transfer agent) and
Invesco Trimark Dealer Inc. (formerly AIM Mutual Fund Dealer
Inc.) (registered broker dealer); Trustee, President and
Principal Executive Officer of The AIM Family of Funds--
Registered Trademark-- (other than AIM Treasurer's Series
Trust and Short-Term Investments Trust); Trustee and
Executive Vice President, The AIM Family of Funds--
Registered Trademark-- (AIM Treasurer's Series Trust and
Short-Term Investments Trust only); and Manager, Invesco
PowerShares Capital Management LLC
Formerly: President, Invesco Trimark Dealer Inc.; Director
and President, AIM Trimark Corporate Class Inc. and AIM
Trimark Canada Fund Inc.; Director and President, Invesco
Trimark Ltd./Invesco Trimark Ltee (formerly AIM Funds
Management Inc. d/b/a INVESCO Enterprise Services); Senior
Managing Director, Invesco Holding Company Limited; Trustee
and Executive Vice President, Tax-Free Investments Trust;
Director and Chairman, Fund Management Company (registered
broker dealer); President and Principal Executive Officer,
The AIM Family of Funds--Registered Trademark-- (AIM
Treasurer's Series Trust, Short-Term Investments Trust and
Tax-Free Investments Trust only); President, AIM Trimark
Global Fund Inc. and AIM Trimark Canada Fund Inc.; and
Director, Trimark Trust (federally regulated Canadian Trust
Company)
- --------------------------------------------------------------------------------------------------------------------------------
INDEPENDENT TRUSTEES
- --------------------------------------------------------------------------------------------------------------------------------
Bruce L. Crockett -- 1944 1993 Chairman, Crockett Technology Associates (technology ACE Limited
Trustee and Chair consulting company) (insurance company);
Captaris, Inc.
(unified messaging
provider); and
Investment Company
Institute
- --------------------------------------------------------------------------------------------------------------------------------
Bob R. Baker -- 1936 2003 Retired None
Trustee
- --------------------------------------------------------------------------------------------------------------------------------
Frank S. Bayley -- 1939 2001 Retired
Trustee
Formerly: Partner, law firm of Baker & McKenzie; and None
Director, Badgley Funds, Inc. (registered investment
company) (2 portfolios)
- --------------------------------------------------------------------------------------------------------------------------------
James T. Bunch -- 1942 2003 Founder, Green, Manning & Bunch Ltd., (investment banking Director, Van Gilder
Trustee firm) Insurance Company,
Board of Governors,
Western Golf
Association/Evans
Scholars Foundation
and Executive
Committee, United
States Golf
Association
- --------------------------------------------------------------------------------------------------------------------------------
Albert R. Dowden -- 1941 2000 Director of a number of public and private business None
Trustee corporations, including the Boss Group Ltd. (private
investment and management); Continental Energy Services, LLC
(oil and gas pipeline service); Reich & Tang Funds
(registered investment company); Annuity and Life Re
(Holdings), Ltd. (reinsurance company), and Homeowners of
America Holding Corporation/Homeowners of America Insurance
Company (property casualty company)
Formerly: Director, CompuDyne Corporation (provider of
product and services to the public security market);
Director, President and Chief Executive Officer, Volvo Group
North America, Inc.; Senior Vice President, AB Volvo;
Director of various public and private corporations
- --------------------------------------------------------------------------------------------------------------------------------
Jack M. Fields -- 1952 1997 Chief Executive Officer, Twenty First Century Group, Inc. Administaff
Trustee (government affairs company); and Owner and Chief Executive
Officer, Dos Angelos Ranch, L.P. (cattle, hunting, corporate
entertainment)
Formerly: Chief Executive Officer, Texana Timber LP
(sustainable forestry company); and Discovery Global
Education Fund (non-profit)
- --------------------------------------------------------------------------------------------------------------------------------
Carl Frischling -- 1937 1993 Partner, law firm of Kramer Levin Naftalis and Frankel LLP Director, Reich &
Trustee Tang Funds (16
portfolios)
- --------------------------------------------------------------------------------------------------------------------------------
Prema Mathai-Davis -- 1950 1998 Retired None
Trustee
- --------------------------------------------------------------------------------------------------------------------------------
Lewis F. Pennock -- 1942 1993 Partner, law firm of Pennock & Cooper None
Trustee
- --------------------------------------------------------------------------------------------------------------------------------
Larry Soll -- 1942 2003 Retired None
Trustee
- --------------------------------------------------------------------------------------------------------------------------------
Raymond Stickel, Jr. -- 1944 2005 Retired
Trustee
Formerly: Partner, Deloitte & Touche; and Director, Mainstay None
VP Series Funds, Inc. (25 portfolios)
- --------------------------------------------------------------------------------------------------------------------------------
</Table>
(1) Mr. Flanagan is considered an interested person of the Trust because he is
an officer of the advisor to the Trust, and an officer and a director of
Invesco Ltd., ultimate parent of the advisor to the Trust.
(2) Mr. Taylor is considered an interested person of the Trust because he is an
officer and a director of the advisor to, and a director of the principal
underwriter of, the Trust.
33 AIM TAX-FREE INTERMEDIATE FUND
TRUSTEES AND OFFICERS--(CONTINUED)
<Table>
<Caption>
NAME, YEAR OF BIRTH AND TRUSTEE AND/ OTHER
POSITION(S) HELD WITH THE OR OFFICER PRINCIPAL OCCUPATION(S) DIRECTORSHIP(S)
TRUST SINCE DURING PAST 5 YEARS HELD BY TRUSTEE
- --------------------------------------------------------------------------------------------------------------------------------
OTHER OFFICERS
- --------------------------------------------------------------------------------------------------------------------------------
Russell C. Burk -- 1958 2005 Senior Vice President and Senior Officer of The AIM Family of N/A
Senior Vice President and Funds--Registered Trademark--
Senior Officer
Formerly: Director of Compliance and Assistant General Counsel,
ICON Advisers, Inc.; Financial Consultant, Merrill Lynch; General
Counsel and Director of Compliance, ALPS Mutual Funds, Inc.
- --------------------------------------------------------------------------------------------------------------------------------
John M. Zerr -- 1962 2006 Director, Senior Vice President, Secretary and General Counsel, N/A
Senior Vice President, Chief Invesco Aim Management Group, Inc., Invesco Aim Advisors, Inc.
Legal Officer and Secretary and Invesco Aim Capital Management, Inc.; Director, Senior Vice
President and Secretary, Invesco Aim Distributors, Inc.;
Director, Vice President and Secretary, Invesco Aim Investment
Services, Inc. and INVESCO Distributors, Inc.; Director and Vice
President, INVESCO Funds Group Inc.; Senior Vice President, Chief
Legal Officer and Secretary, The AIM Family of Funds--Registered
Trademark--; and Manager, Invesco PowerShares Capital Management
LLC
Formerly: Director, Vice President and Secretary, Fund Management
Company; Vice President, Invesco Aim Capital Management, Inc.;
Chief Operating Officer, Senior Vice President, General Counsel
and Secretary, Liberty Ridge Capital, Inc. (an investment
adviser); Vice President and Secretary, PBHG Funds (an investment
company); Vice President and Secretary, PBHG Insurance Series
Fund (an investment company); Chief Operating Officer, General
Counsel and Secretary, Old Mutual Investment Partners (a broker-
dealer); General Counsel and Secretary, Old Mutual Fund Services
(an administrator); General Counsel and Secretary, Old Mutual
Shareholder Services (a shareholder servicing center); Executive
Vice President, General Counsel and Secretary, Old Mutual
Capital, Inc. (an investment adviser); and Vice President and
Secretary, Old Mutual Advisors Funds (an investment company)
- --------------------------------------------------------------------------------------------------------------------------------
Lisa O. Brinkley -- 1959 2004 Global Compliance Director, Invesco Ltd.; and Vice President, The N/A
Vice President AIM Family of Funds--Registered Trademark--
Formerly: Senior Vice President, Invesco Aim Management Group,
Inc.; Senior Vice President and Chief Compliance Officer, Invesco
Aim Advisors, Inc. and The AIM Family of Funds--Registered
Trademark--; Vice President and Chief Compliance Officer, Invesco
Aim Capital Management, Inc. and Invesco Aim Distributors, Inc.;
Vice President, Invesco Aim Investment Services, Inc. and Fund
Management Company
- --------------------------------------------------------------------------------------------------------------------------------
Kevin M. Carome -- 1956 2003 General Counsel, Secretary and Senior Managing Director, Invesco N/A
Vice President Ltd.; Director and Secretary, Invesco Holding Company Limited,
and INVESCO Funds Group, Inc.; Director and Executive Vice
President, IVZ Inc., Invesco Group Services, Inc., Invesco North
American Holdings, Inc. and Invesco Investments (Bermuda) Ltd;
and Vice President, The AIM Family of Funds--Registered
Trademark--
Formerly: Secretary, IVZ, Inc., Invesco Group Services, Inc., and
Invesco North American Holdings, Inc.; Senior Managing Director
and Secretary, Invesco Holding Company Limited; Director, Senior
Vice President, Secretary and General Counsel, Invesco Aim
Management Group, Inc. and Invesco Aim Advisors, Inc.; Senior
Vice President, Invesco Aim Distributors, Inc.; Director, General
Counsel and Vice President, Fund Management Company; Vice
President, Invesco Aim Capital Management, Inc., Invesco Aim
Investment Services, Inc., Invesco Group Services, Inc. and IVZ
Inc.; Senior Vice President, Chief Legal Officer and Secretary,
The AIM Family of Funds--Registered Trademark--; Director and
Vice President, INVESCO Distributors, Inc. and Chief Executive
Officer and President, INVESCO Funds Group, Inc.
- --------------------------------------------------------------------------------------------------------------------------------
Sheri Morris -- 1964 1999 Vice President, Treasurer and Principal Financial Officer, The N/A
Vice President, Treasurer AIM Family of Funds--Registered Trademark--; and Vice President,
and Principal Financial Invesco Aim Advisors, Inc., Invesco Aim Capital Management, Inc.
Officer and Invesco Aim Private Asset Management Inc.
Formerly: Assistant Vice President and Assistant Treasurer, The
AIM Family of Funds--Registered Trademark-- and Assistant Vice
President, Invesco Aim Advisors, Inc., Invesco Aim Capital
Management, Inc. and Invesco Aim Private Asset Management, Inc.
- --------------------------------------------------------------------------------------------------------------------------------
Karen Dunn Kelley -- 1960 1993 Head of Invesco's World Wide Fixed Income and Cash Management N/A
Vice President Group; Director of Cash Management and Senior Vice President,
Invesco Aim Advisors, Inc. and Invesco Aim Capital Management,
Inc; Executive Vice President, Invesco Aim Distributors, Inc.;
Senior Vice President, Invesco Aim Management Group, Inc.; Vice
President, The AIM Family of Funds--Registered Trademark-- (other
than AIM Treasurer's Series Trust and Short-Term Investments
Trust); and President and Principal Executive Officer, The AIM
Family of Funds--Registered Trademark-- (AIM Treasurer's Series
Trust and Short-Term Investments Trust only)
Formerly President and Principal Executive Officer, Tax-Free
Investments Trust; Director and President, Fund Management
Company; Chief Cash Management Officer and Managing Director,
Invesco Aim Capital Management, Inc.; and Vice President, Invesco
Aim Advisors, Inc. and The AIM Family of Funds--Registered
Trademark-- (AIM Treasurer's Series Trust, Short-Term Investments
Trust and Tax-Free Investments Trust only)
- --------------------------------------------------------------------------------------------------------------------------------
Lance A. Rejsek -- 1967 2005 Anti-Money Laundering Compliance Officer, Invesco Aim Advisors, N/A
Anti-Money Laundering Inc., Invesco Aim Capital Management, Inc., Invesco Aim
Compliance Officer Distributors, Inc., Invesco Aim Investment Services, Inc.,
Invesco Aim Private Asset Management, Inc. and The AIM Family of
Funds--Registered Trademark--
Formerly: Anti-Money Laundering Compliance Officer, Fund
Management Company; and Manager of the Fraud Prevention
Department, Invesco Aim Investment Services, Inc.
- --------------------------------------------------------------------------------------------------------------------------------
Todd L. Spillane -- 1958 2006 Senior Vice President, Invesco Aim Management Group, Inc.; Senior N/A
Chief Compliance Officer Vice President and Chief Compliance Officer, Invesco Aim
Advisors, Inc. and Invesco Aim Capital Management, Inc.; Chief
Compliance Officer, The AIM Family of Funds--Registered
Trademark--, Invesco Global Asset Management (N.A.), Inc.
(registered investment advisor), Invesco Institutional (N.A.),
Inc., (registered investment advisor), INVESCO Private Capital
Investments, Inc. (holding company), Invesco Private Capital,
Inc. (registered investment advisor) and Invesco Senior Secured
Management, Inc. (registered investment advisor); and Vice
President, Invesco Aim Distributors, Inc. and Invesco Aim
Investment Services, Inc.
Formerly: Vice President, Invesco Aim Capital Management, Inc.
and Fund Management Company; and Global Head of Product
Development, AIG-Global Investment Group, Inc.
- --------------------------------------------------------------------------------------------------------------------------------
</Table>
The Statement of Additional Information of the Trust includes additional
information about the Fund's Trustees and is available upon request, without
charge, by calling 1.800.959.4246.
Please refer to the Fund's prospectus for information on the Fund's sub-
advisors.
<Table>
OFFICE OF THE FUND INVESTMENT ADVISOR DISTRIBUTOR AUDITORS
11 Greenway Plaza Invesco Aim Advisors, Invesco Aim Distributors, PricewaterhouseCoopers
Suite 100 Inc. Inc. LLP
Houston, TX 77046-1173 11 Greenway Plaza 11 Greenway Plaza 1201 Louisiana Street
Suite 100 Suite 100 Suite 2900
Houston, TX 77046-1173 Houston, TX 77046-1173 Houston, TX 77002-5678
COUNSEL TO THE FUND COUNSEL TO THE TRANSFER AGENT CUSTODIAN
Stradley Ronon Stevens INDEPENDENT TRUSTEES Invesco Aim Investment The Bank of New York
& Young, LLP Kramer, Levin, Naftalis & Services, Inc. Mellon
2600 One Commerce Square Frankel LLP P.O. Box 4739 2 Hanson Place
Philadelphia, PA 19103 1177 Avenue of the Houston, TX 77210-4739 Brooklyn, NY 11217-1431
Americas
New York, NY 10036-2714
34 AIM TAX-FREE INTERMEDIATE FUND
[GO PAPERLESS GRAPHIC]
====================================================================================================================================
GO PAPERLESS WITH EDELIVERY
Visit invescoaim.com/edelivery to receive quarterly statements, tax forms, fund reports and prospectuses with a service that's all
about eeees:
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trees used to produce paper. will be sent via email as soon as they're available.
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expenses and put more capital back in your fund's returns. computer with a few clicks of your mouse.
This service is provided by Invesco Aim Investment Services, Inc.
====================================================================================================================================
FUND HOLDINGS AND PROXY VOTING INFORMATION
The Fund provides a complete list of its holdings four times in each fiscal year, at the quarter-ends. For the second and fourth
quarters, the lists appear in the Fund's semiannual and annual reports to shareholders. For the first and third quarters, the Fund
files the lists with the Securities and Exchange Commission (SEC) on Form N-Q. The most recent list of portfolio holdings is
available at invescoaim.com. From our home page, click on Products & Performance, then Mutual Funds, then Fund Overview. Select your
Fund from the drop-down menu and click on Complete Quarterly Holdings. Shareholders can also look up the Fund's Forms N-Q on the SEC
website at sec.gov. Copies of the Fund's Forms N-Q may be reviewed and copied at the SEC Public Reference Room in Washington, D.C.
You can obtain information on the operation of the Public Reference Room, including information about duplicating fee charges, by
calling 202 942 8090 or 800 732 0330, or by electronic request at the following email address: publicinfo@sec.gov. The SEC file
numbers for the Fund are 811-07890 and 033-66242.
A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio
securities is available without charge, upon request, from our Client Services department at 800 959 4246 or on the Invesco Aim
website, invescoaim.com. On the home page, scroll down and click on Proxy Policy. The information is also available on the SEC
website, sec.gov.
Information regarding how the Fund voted proxies related to its portfolio securities during the 12 months ended June 30, 2008,
is available at our website. Go to invescoaim.com, access the About Us tab, click on Required Notices and then click on Proxy Voting
Activity. Next, select the Fund from the drop-down menu. The information is also available on the SEC website, sec.gov.
If used after July 20, 2009, this report must be accompanied by a Fund fact sheet or Invesco Aim
Quarterly Performance Review for the most recent quarter-end. Invesco Aim--SERVICE MARK-- is a service
mark of Invesco Aim Management Group, Inc. Invesco Aim Advisors, Inc., Invesco Aim Capital Management,
Inc., Invesco Aim Private Asset Management, Inc. and Invesco PowerShares Capital Management LLC are the
investment advisors for the products and services represented by Invesco Aim; they each provide
investment advisory services to individual and institutional clients and do not sell securities. Please
refer to each fund's prospectus for information on the fund's subadvisors. Invesco Aim Distributors, Inc. [INVESCO AIM LOGO]
is the U.S. distributor for the retail mutual funds, exchange-traded funds and institutional money market --SERVICE MARK--
funds and the subdistributor for the STIC Global Funds represented by Invesco Aim. All entities are
indirect, wholly owned subsidiaries of Invesco Ltd.
It is anticipated that on or about the end of the fourth quarter of 2009, Invesco Aim Advisors, Inc.,
Invesco Aim Capital Management, Inc., Invesco Private Asset Management, Inc. and Invesco Global Asset
Management (N.A.), Inc. will be merged into Invesco Institutional (N.A.), Inc., and the consolidated
adviser firm will be renamed Invesco Advisers, Inc. Additional information will be posted at
invescoaim.com on or about the end of the fourth quarter of 2009.
invescoaim.com TFI-AR-1 Invesco Aim Distributors, Inc.
ITEM 2. CODE OF ETHICS.
As of the end of the period covered by this report, the Registrant had
adopted a code of ethics (the "Code") that applies to the Registrant's
principal executive officer ("PEO") and principal financial officer
("PFO"). There were no amendments to the Code during the period
covered by the report. The Registrant did not grant any waivers,
including implicit waivers, from any provisions of the Code to the PEO
or PFO during the period covered by this report.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
The Board of Trustees has determined that the Registrant has at least
one audit committee financial expert serving on its Audit Committee.
The Audit Committee financial expert is Raymond Stickel, Jr. Mr.
Stickel is "independent" within the meaning of that term as used in
Form N-CSR.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
FEES BILLED BY PWC RELATED TO THE REGISTRANT
PWC billed the Registrant aggregate fees for services rendered to the
Registrant for the last two fiscal years as follows:
Percentage of
Fees Billed
Percentage of Fees Billed Applicable to Non-Audit
Applicable to Non-Audit Services Provided
Services Provided for for fiscal year end
Fees Billed for Services fiscal year end 2009 Fees Billed for Services 2008 Pursuant to Waiver
Rendered to the Registrant Pursuant to Waiver of Rendered to the Registrant of Pre-Approval
for fiscal year end 2009 Pre-Approval Requirement(1) for fiscal year end 2008 Requirement(1)
-------------------------- --------------------------- -------------------------- -----------------------
Audit Fees $ 98,804 N/A $ 95,803 N/A
Audit-Related Fees $ 0 0% $ 0 0%
Tax Fees(2) $ 15,339 0% $ 15,382 0%
All Other Fees $ 0 0% $ 0 0%
-------- --------
Total Fees $114,143 0% $111,185 0%
PWC billed the Registrant aggregate non-audit fees of $15,339 for the fiscal
year ended 2009, and $15,382 for the fiscal year ended 2008, for non-audit
services rendered to the Registrant.
- ----------
(1) With respect to the provision of non-audit services, the pre-approval
requirement is waived pursuant to a de minimis exception if (i) such
services were not recognized as non-audit services by the Registrant at the
time of engagement, (ii) the aggregate amount of all such services provided
is no more than 5% of the aggregate audit and non-audit fees paid by the
Registrant to PWC during a fiscal year; and (iii) such services are
promptly brought to the attention of the Registrant's Audit Committee and
approved by the Registrant's Audit Committee prior to the completion of the
audit.
(2) Tax fees for the fiscal year end March 31, 2009 includes fees billed for
reviewing tax returns. Tax fees for the fiscal year end March 31, 2008
includes fees billed for reviewing tax returns and consultation services.
FEES BILLED BY PWC RELATED TO INVESCO AIM AND INVESCO AIM AFFILIATES
PWC billed Invesco Aim Advisors, Inc. ("Invesco Aim"), the Registrant's
adviser, and any entity controlling, controlled by or under common control with
Invesco Aim that provides ongoing services to the Registrant ("Invesco Aim
Affiliates") aggregate fees for pre-approved non-audit services rendered to
Invesco Aim and Invesco Aim Affiliates for the last two fiscal years as follows:
Percentage of
Fees Billed
Fees Billed for Non-Audit Fees Billed for Non-Audit Applicable to
Services Rendered to Invesco Services Rendered to Invesco Non-Audit Services
Aim and Invesco Aim Percentage of Fees Billed Aim and Invesco Aim Provided for
Affiliates for fiscal year Applicable to Non-Audit Affiliates for fiscal year fiscal year end
end 2009 That Were Required Services Provided for fiscal end 2008 That Were Required 2008 Pursuant to
to be Pre-Approved year end 2009 Pursuant to to be Pre-Approved Waiver of
by the Registrant's Waiver of Pre-Approval by the Registrant's Pre-Approval
Audit Committee Requirement(1) Audit Committee Requirement(1)
---------------------------- ---------------------------- ---------------------------- ------------------
Audit-Related Fees $0 0% $0 0%
Tax Fees $0 0% $0 0%
All Other Fees $0 0% $0 0%
--- ---
Total Fees(2) $0 0% $0 0%
- ----------
(1) With respect to the provision of non-audit services, the pre-approval
requirement is waived pursuant to a de minimis exception if (i) such
services were not recognized as non-audit services by the Registrant at the
time of engagement, (ii) the aggregate amount of all such services provided
is no more than 5% of the aggregate audit and non-audit fees paid by the
Registrant, Invesco Aim and Invesco Aim Affiliates to PWC during a fiscal
year; and (iii) such services are promptly brought to the attention of the
Registrant's Audit Committee and approved by the Registrant's Audit
Committee prior to the completion of the audit.
(2) Including the fees for services not required to be pre-approved by the
registrant's audit committee, PWC billed Invesco Aim and Invesco Aim
Affiliates aggregate non-audit fees of $0 for the fiscal year ended 2009,
and $0 for the fiscal year ended 2008, for non-audit services rendered to
Invesco Aim and Invesco Aim Affiliates.
The Audit Committee also has considered whether the provision of non-audit
services that were rendered to Invesco Aim and Invesco Aim Affiliates that
were not required to be pre-approved pursuant to SEC regulations, if any,
is compatible with maintaining PWC's independence. To the extent that such
services were provided, the Audit Committee determined that the provision
of such services is compatible with PWC maintaining independence with
respect to the Registrant.
PRE-APPROVAL OF AUDIT AND NON-AUDIT SERVICES
POLICIES AND PROCEDURES
As adopted by the Audit Committees of
the AIM Funds (the "Funds")
Last Amended September 18, 2006
STATEMENT OF PRINCIPLES
Under the Sarbanes-Oxley Act of 2002 and rules adopted by the Securities and
Exchange Commission ("SEC") ("Rules"), the Audit Committees of the Funds' (the
"Audit Committee") Board of Trustees (the "Board") are responsible for the
appointment, compensation and oversight of the work of independent accountants
(an "Auditor"). As part of this responsibility and to assure that the Auditor's
independence is not impaired, the Audit Committees pre-approve the audit and
non-audit services provided to the Funds by each Auditor, as well as all
non-audit services provided by the Auditor to the Funds' investment adviser and
to affiliates of the adviser that provide ongoing services to the Funds
("Service Affiliates") if the services directly impact the Funds' operations or
financial reporting. The SEC Rules also specify the types of services that an
Auditor may not provide to its audit client. The following policies and
procedures comply with the requirements for pre-approval and provide a mechanism
by which management of the Funds may request and secure pre-approval of audit
and non-audit services in an orderly manner with minimal disruption to normal
business operations.
Proposed services either may be pre-approved without consideration of specific
case-by-case services by the Audit Committees ("general pre-approval") or
require the specific pre-approval of the Audit Committees ("specific
pre-approval"). As set forth in these policies and procedures, unless a type of
service has received general pre-approval, it will require specific pre-approval
by the Audit Committees. Additionally, any fees exceeding 110% of estimated
pre-approved fee levels provided at the time the service was pre-approved will
also require specific approval by the Audit Committees before payment is made.
The Audit Committees will also consider the impact of additional fees on the
Auditor's independence when determining whether to approve any additional fees
for previously pre-approved services.
The Audit Committees will annually review and generally pre-approve the services
that may be provided by each Auditor without obtaining specific pre-approval
from the Audit Committee. The term of any general pre-approval runs from the
date of such pre-approval through September 30th of the following year, unless
the Audit Committees consider a different period and state otherwise. The Audit
Committees will add to or subtract from the list of general pre-approved
services from time to time, based on subsequent determinations.
The purpose of these policies and procedures is to set forth the guidelines to
assist the Audit Committees in fulfilling their responsibilities.
DELEGATION
The Audit Committees may from time to time delegate pre-approval authority to
one or more of its members who are Independent Trustees. All decisions to
pre-approve a service by a delegated member shall be reported to the Audit
Committee at its next quarterly meeting.
AUDIT SERVICES
The annual audit services engagement terms will be subject to specific
pre-approval of the Audit Committees. Audit services include the annual
financial statement audit and other procedures such as tax provision work that
is required to be performed by the independent auditor to be able to form an
opinion on the Funds' financial statements. The Audit Committee will obtain,
review and consider sufficient information concerning the proposed Auditor to
make a reasonable evaluation of the Auditor's qualifications and independence.
In addition to the annual Audit services engagement, the Audit Committees may
grant either general or specific pre-approval of other audit services, which are
those services that only the independent auditor reasonably can provide. Other
Audit services may include services such as issuing consents for the
inclusion of audited financial statements with SEC registration statements,
periodic reports and other documents filed with the SEC or other documents
issued in connection with securities offerings.
NON-AUDIT SERVICES
The Audit Committees may provide either general or specific pre-approval of any
non-audit services to the Funds and its Service Affiliates if the Audit
Committees believe that the provision of the service will not impair the
independence of the Auditor, is consistent with the SEC's Rules on auditor
independence, and otherwise conforms to the Audit Committee's general principles
and policies as set forth herein.
AUDIT-RELATED SERVICES
"Audit-related services" are assurance and related services that are reasonably
related to the performance of the audit or review of the Fund's financial
statements or that are traditionally performed by the independent auditor.
Audit-related services include, among others, accounting consultations related
to accounting, financial reporting or disclosure matters not classified as
"Audit services"; assistance with understanding and implementing new accounting
and financial reporting guidance from rulemaking authorities; and agreed-upon
procedures related to mergers, compliance with ratings agency requirements and
interfund lending activities.
TAX SERVICES
"Tax services" include, but are not limited to, the review and signing of the
Funds' federal tax returns, the review of required distributions by the Funds
and consultations regarding tax matters such as the tax treatment of new
investments or the impact of new regulations. The Audit Committee will
scrutinize carefully the retention of the Auditor in connection with a
transaction initially recommended by the Auditor, the major business purpose of
which may be tax avoidance or the tax treatment of which may not be supported in
the Internal Revenue Code and related regulations. The Audit Committee will
consult with the Funds' Treasurer (or his or her designee) and may consult with
outside counsel or advisors as necessary to ensure the consistency of Tax
services rendered by the Auditor with the foregoing policy.
No Auditor shall represent any Fund or any Service Affiliate before a tax court,
district court or federal court of claims.
Under rules adopted by the Public Company Accounting Oversight Board and
approved by the SEC, in connection with seeking Audit Committee pre-approval of
permissible Tax services, the Auditor shall:
1. Describe in writing to the Audit Committees, which writing may be in
the form of the proposed engagement letter:
a. The scope of the service, the fee structure for the
engagement, and any side letter or amendment to the
engagement letter, or any other agreement between the
Auditor and the Fund, relating to the service; and
b. Any compensation arrangement or other agreement, such as a
referral agreement, a referral fee or fee-sharing
arrangement, between the Auditor and any person (other than
the Fund) with respect to the promoting, marketing, or
recommending of a transaction covered by the service;
2. Discuss with the Audit Committees the potential effects of the
services on the independence of the Auditor; and
3. Document the substance of its discussion with the Audit Committees.
ALL OTHER AUDITOR SERVICES
The Audit Committees may pre-approve non-audit services classified as "All other
services" that are not categorically prohibited by the SEC, as listed in Exhibit
1 to this policy.
PRE-APPROVAL FEE LEVELS OR ESTABLISHED AMOUNTS
Pre-approval of estimated fees or established amounts for services to be
provided by the Auditor under general or specific pre-approval policies will be
set periodically by the Audit Committees. Any proposed fees exceeding 110% of
the maximum estimated pre-approved fees or established amounts for pre-approved
audit and non-audit services will be reported to the Audit Committees at the
quarterly Audit Committees meeting and will require specific approval by the
Audit Committees before payment is made. The Audit Committee will always factor
in the overall relationship of fees for audit and non-audit services in
determining whether to pre-approve any such services and in determining whether
to approve any additional fees exceeding 110% of the maximum pre-approved fees
or established amounts for previously pre-approved services.
PROCEDURES
On an annual basis, A I M Advisors, Inc. ("AIM") will submit to the Audit
Committees for general pre-approval, a list of non-audit services that the Funds
or Service Affiliates of the Funds may request from the Auditor. The list will
describe the non-audit services in reasonable detail and will include an
estimated range of fees and such other information as the Audit Committee may
request.
Each request for services to be provided by the Auditor under the general
pre-approval of the Audit Committees will be submitted to the Funds' Treasurer
(or his or her designee) and must include a detailed description of the services
to be rendered. The Treasurer or his or her designee will ensure that such
services are included within the list of services that have received the general
pre-approval of the Audit Committees. The Audit Committees will be informed at
the next quarterly scheduled Audit Committees meeting of any such services for
which the Auditor rendered an invoice and whether such services and fees had
been pre-approved and if so, by what means.
Each request to provide services that require specific approval by the Audit
Committees shall be submitted to the Audit Committees jointly by the Fund's
Treasurer or his or her designee and the Auditor, and must include a joint
statement that, in their view, such request is consistent with the policies and
procedures and the SEC Rules.
Each request to provide tax services under either the general or specific
pre-approval of the Audit Committees will describe in writing: (i) the scope of
the service, the fee structure for the engagement, and any side letter or
amendment to the engagement letter, or any other agreement between the Auditor
and the audit client, relating to the service; and (ii) any compensation
arrangement or other agreement between the Auditor and any person (other than
the audit client) with respect to the promoting, marketing, or recommending of a
transaction covered by the service. The Auditor will discuss with the Audit
Committees the potential effects of the services on the Auditor's independence
and will document the substance of the discussion.
Non-audit services pursuant to the de minimis exception provided by the SEC
Rules will be promptly brought to the attention of the Audit Committees for
approval, including documentation that each of the conditions for this
exception, as set forth in the SEC Rules, has been satisfied.
On at least an annual basis, the Auditor will prepare a summary of all the
services provided to any entity in the investment company complex as defined in
section 2-01(f)(14) of Regulation S-X in sufficient detail as to the nature of
the engagement and the fees associated with those services.
The Audit Committees have designated the Funds' Treasurer to monitor the
performance of all services provided by the Auditor and to ensure such services
are in compliance with these policies and procedures. The Funds' Treasurer will
report to the Audit Committee on a periodic basis as to the results of such
monitoring. Both the Funds' Treasurer and management of AIM will immediately
report to the chairman of the Audit Committee any breach of these policies and
procedures that comes to the attention of the Funds' Treasurer or senior
management of AIM.
EXHIBIT 1 TO PRE-APPROVAL OF AUDIT AND NON-AUDIT SERVICES POLICIES AND
PROCEDURES
CONDITIONALLY PROHIBITED NON-AUDIT SERVICES (NOT PROHIBITED IF THE FUND CAN
REASONABLY CONCLUDE THAT THE RESULTS OF THE SERVICE WOULD NOT BE SUBJECT TO
AUDIT PROCEDURES IN CONNECTION WITH THE AUDIT OF THE FUND'S FINANCIAL
STATEMENTS)
- Bookkeeping or other services related to the accounting records or
financial statements of the audit client
- Financial information systems design and implementation
- Appraisal or valuation services, fairness opinions, or
contribution-in-kind reports
- Actuarial services
- Internal audit outsourcing services
CATEGORICALLY PROHIBITED NON-AUDIT SERVICES
- Management functions
- Human resources
- Broker-dealer, investment adviser, or investment banking services
- Legal services
- Expert services unrelated to the audit
- Any service or product provided for a contingent fee or a commission
- Services related to marketing, planning, or opining in favor of the
tax treatment of confidential transactions or aggressive tax position
transactions, a significant purpose of which is tax avoidance
- Tax services for persons in financial reporting oversight roles at the
Fund
- Any other service that the Public Company Oversight Board determines
by regulation is impermissible.
PwC advised the Funds' Audit Committee that PwC had identified three matters for
consideration under the SEC's auditor independence rules.
First, PwC was engaged to perform services to an affiliate of Invesco Ltd.
("Invesco"), including (a) consulting with respect to the acquisition by the
affiliate of certain assets from a third party; and (b) providing expert
testimony in connection with any arbitration proceeding or litigation arising
from or relating to the transaction. Rules of the Securities and Exchange
Commission ("SEC") provide that an accountant is not independent if, at any
point during the audit and professional engagement period, the accountant
provides expert services unrelated to the audit to an audit client.
Specifically, PwC would not be permitted to provide expert testimony nor perform
other services in support of the client or its counsel in connection with a
proceeding. Within days of being engaged to provide the services it was
determined that some of the services contemplated in the engagement terms would
be inconsistent with the SEC's auditor independence rules. A review of the
services performed pursuant to the original agreement was conducted. After a
review, PwC concluded that the actual services provided were not inconsistent
with the SEC's independence rules. Following the review, the initial engagement
terms were modified to limit PwC's services to those permitted under the rules.
Second, an employee of PwC served as a nominee shareholder (effectively
equivalent to a Trustee) of various companies or trusts since 2001. Some of
these companies held shares of Invesco Nippon Warrants Fund (the "Investment."),
an affiliate of Invesco, formerly known as AMVESCAP PLC (the "Company"). The
investment, which consisted of 2,070 shares, was initially entered into during
July 1, 2001 - December 31, 2005. PwC informed the Audit Committee that this
matter could have constituted an investment in an affiliate of an audit client
in violation of Rule 2-01(c)(1) of Regulation S-X.
Third, PwC became aware that certain aspects of investment advisory services
provided by a PwC network member Firm's Wealth Advisory Practice to its clients
(generally high net worth individuals not associated with Invesco) were
inconsistent with the SEC's auditor independence requirements of the SEC. The
technical violations occurred as a result of professionals of the Wealth
Advisory Practice making a single
recommendation of an audit client's product to its clients rather than also
identifying one or more suitable alternatives for the Wealth Advisory Practice's
client to consider. The Wealth Advisory Practice also received commissions from
the fund manager. With respect to Invesco and its affiliates, there were 33
cases of single product recommendation and 20 cases of commissions received
totaling approximately (pound)7,000. These violations occurred over a two year
period and ended in November 2007.
It should be noted that at no time did The Wealth Advisory Practice recommend
products on behalf Invesco and its affiliates. Additionally, members of the
audit engagement team were not aware of these violations or services; the advice
provided was based on an understanding of the investment objectives of the
clients of the Wealth Advisory Practice and not to promote the Company and its
affiliates, and the volume and nature of the violations were insignificant.
Although PwC received commissions, PwC derived no economic benefit from the
commission as any commissions received were deducted from the time based fees
charged to the investor client and created no incentive for PwC to recommend the
investment.
PwC advised the Audit Committee that it believes its independence had not been
adversely affected as it related to the audits of the Funds by any of these
matters. In reaching this conclusion, PwC noted that during the time of its
audits, the engagement team was not aware of the services provided or the
investments and noted the insignificance of the services provided. Based on the
foregoing, PwC did not believe any of these matters affected PwC's ability to
act objectively and impartially and to issue a report on financial statements as
the Funds' independent auditor, and, believes that a reasonable investor with
knowledge of all the facts would agree with this conclusion.
Based upon PwC's review, discussion and representations above, the audit
committee, in its business judgment, concurred with PwC's conclusions in
relation to its independence.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable.
ITEM 6. SCHEDULE OF INVESTMENTS.
Investments in securities of unaffiliated issuers is included as part of
the reports to stockholders filed under Item 1 of this Form.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT COMPANIES.
Not applicable.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
None
ITEM 11. CONTROLS AND PROCEDURES.
(a) As of March 13, 2009, an evaluation was performed under the supervision and
with the participation of the officers of the Registrant, including the PEO
and PFO, to assess the effectiveness of the Registrant's disclosure
controls and procedures, as that term is defined in Rule 30a-3(c) under the
Investment Company Act of 1940 (the "Act"), as
amended. Based on that evaluation, the Registrant's officers, including the
PEO and PFO, concluded that, as of March 13, 2009, the Registrant's
disclosure controls and procedures were reasonably designed to ensure: (1)
that information required to be disclosed by the Registrant on Form N-CSR
is recorded, processed, summarized and reported within the time periods
specified by the rules and forms of the Securities and Exchange Commission;
and (2) that material information relating to the Registrant is made known
to the PEO and PFO as appropriate to allow timely decisions regarding
required disclosure.
(b) There have been no changes in the Registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the Act) that
occurred during the second fiscal quarter of the period covered by this
report that have materially affected, or are reasonably likely to
materially affect, the Registrant's internal control over financial
reporting.
ITEM 12. EXHIBITS.
12(a) (1) Code of Ethics.
12(a) (2) Certifications of principal executive officer and principal financial
officer as required by Rule 30a-2(a) under the Investment Company Act
of 1940.
12(a) (3) Not applicable.
12(b) Certifications of principal executive officer and principal financial
officer as required by Rule 30a-2(b) under the Investment Company Act
of 1940.
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: AIM Tax-Exempt Funds
By: /s/ PHILIP A. TAYLOR
--------------------------------
Philip A. Taylor
Principal Executive Officer
Date: June 5, 2009
Pursuant to the requirements of the Securities and 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: /s/ PHILIP A. TAYLOR
--------------------------------
Philip A. Taylor
Principal Executive Officer
Date: June 5, 2009
By: /s/ Sheri Morris
--------------------------------
Sheri Morris
Principal Financial Officer
Date: June 5, 2009
EXHIBIT INDEX
12(a) (1) Code of Ethics.
12(a) (2) Certifications of principal executive officer and principal financial
officer as required by Rule 30a-2(a) under the Investment Company Act
of 1940.
12(a) (3) Not applicable.
12(b) Certifications of principal executive officer and principal financial
officer as required by Rule 30a-2(b) under the Investment Company Act
of 1940.