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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 811-09913
AIM Counselor Series Trust
(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: 8/31
Date of reporting period: 8/31/09
Item 1. Reports to Stockholders.
[INVESCO AIM LOGO] ANNUAL REPORT TO SHAREHOLDERS AUGUST 31, 2009
- SERVICE MARK -
AIM CORE PLUS BOND FUND
[GRAPHIC]
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2 Letters to Shareholders
4 Performance Summary
4 Management Discussion
6 Fund Performance
7 Supplemental Information
8 Schedule of Investments
13 Financial Statements
15 Notes to Financial Statements
23 Financial Highlights
24 Auditor's Report
25 Fund Expenses
26 Approval of Investment Advisory and Sub-Advisory Agreements
28 Tax Information
T-1 Trustees and Officers
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Dear Shareholders:
While the year covered by this report was difficult -- for long-time investors and veteran
investment professionals alike -- economic conditions and market trends appeared much more
favorable at the close of the fiscal year than at its start.
[TAYLOR
PHOTO] The 12 months ended August 31, 2009, included a sharp market sell-off that occurred in the
second half of 2008. That downturn affected virtually all sectors, markets and investors. The
decline had a number of causes, the most immediate being unprecedented turmoil in credit
markets. Economic uncertainty prompted banks to hoard cash and reduce lending, and caused
Philip Taylor investors to shun short-term corporate debt. As a result, businesses found it difficult to fund
their day-to-day operations, and the U.S. economy -- as well as economies around the globe --
virtually froze briefly.
INCREASED COMMUNICATION
These developments prompted a greater-than-usual number of shareholders to contact me. Some
of you took the time to write a letter while others of you emailed me at phil@invescoaim.com.
Many of you sought explanations for the decline in the value of your accounts, while others asked more general questions about
when the economy might improve. Your questions, comments and suggestions gave me better insight into what was on your minds, and I
was pleased that so many of you took the time to share your thoughts with me.
As a result, Invesco Aim's investment professionals and I have increased our efforts to stay in touch with and share our views
with you. We increased the number of "Investment Perspectives" articles on our website, invescoaim.com. Through these articles,
we've tried to provide timely market commentary, general investor education information and sector updates. I hope you'll take a
moment to read them and let me know if you find them useful.
To access your Fund's latest quarterly commentary, click on "Products and Performance" at the top of our website; next, select
"Mutual Funds"; and then click on "Quarterly Commentary."
I also hope you've stayed in touch with your financial advisor. An experienced financial advisor who is familiar with your
individual investment goals, time horizon and risk tolerance can be a source of comfort and information during uncertain times. He
or she can monitor your investments to ensure they're on track and can prevent you from making impulsive short-term decisions that
may have adverse long-term consequences.
REASONS FOR OPTIMISM
The economy and equity markets reacted to a barrage of negative news during the year. Consumer spending -- which accounts for more
than two-thirds(1) of the U.S. economy -- was sluggish as unemployment rose; more workers worried about their job security; home and
portfolio values declined; and credit became more difficult to obtain.
In his semiannual monetary policy report to Congress in late July, U.S. Federal Reserve Board Chairman Ben Bernanke summarized
the stresses and strains the U.S. and global economies suffered in late 2008 and early 2009. Importantly, he suggested that the
aggressive, coordinated actions taken by governments and central banks around the world finally may be yielding results. He
testified that:
o The pace of overall economic decline appears to have slowed significantly.
o Credit availability, for consumers and businesses, has improved noticeably.
o Investors' extreme risk aversion has eased somewhat.
o The decline in housing activity appears to have moderated.
While these and other trends offer encouragement, uncertainties remain. Chairman Bernanke testified that he anticipates a gradual
recovery in 2010 with some acceleration in economic growth in 2011, together with subdued inflation over the next two years. His
considered judgment appears to be shared by investors who have begun to return, cautiously, to the equities market, causing major
U.S. stock-market indexes to bounce off their March lows.
A SINGLE FOCUS
I believe Invesco Aim is uniquely positioned to serve our clients. Our parent company, Invesco Ltd., is one of the largest(2) and
most diversified global asset managers. It provides clients with diversified investment strategies and a range of investment
products managed by distinct management teams around the world. We believe we can serve you best by focusing on one thing and doing
it well: managing your money.
Our investment professionals have managed clients' money in up markets and down markets. All of us here recognize that market
conditions change often; what will not change is our commitment to putting our clients first, helping you achieve your financial
goals and providing excellent customer service.
If you have questions about this report or your account, please contact one of our client services representatives at 800 959
4246. If you have comments for me, I encourage you to email me at phil@invescoaim.com.
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) Reuters;
(2) Pensions & Investments
2 AIM CORE PLUS BOND FUND
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Dear Fellow Shareholders:
Although the economy and financial markets have shown some signs of hope, investors remain
[CROCKETT rightfully cautious. Staying with an appropriately diversified investment program focused on
PHOTO] your individual long-term goals can be a wise course in such uncertain times. We believe the
route to financial success is more like a marathon than a sprint.
Please be assured that your Board continues to oversee the AIM Funds with a strong sense of
responsibility for your money and your trust. As always, we seek to manage costs and enhance
Bruce Crockett performance in ways that put your interests first.
We are near the end of a busy 2009 proxy season, during which Invesco Aim Advisors, Inc.'s
proxy committee votes on your behalf on issues put to a shareholder vote by the companies whose
stock the Funds hold. This year, after careful case-by-case analysis by committee members and portfolio managers, the proxy
committee voted with corporate management less often than in previous years, focusing on the issues of board independence,
Say-On-Pay initiatives, and stock option re-pricing in light of the market's decline. The committee remained committed to supporting
non-binding Say-on-Pay proposals and abstaining from voting on social issues.
At its June meeting, your Board reviewed and renewed the investment advisory contracts between the AIM Funds and Invesco Aim
Advisors, Inc. You can find the results of this rigorous annual process at invescoaim.com. Go to "Products & Performance" and click
on "Investment Advisory Agreement Renewals."
The website also contains news and market information, investment education and planning information and current reports and
prospectuses for all the AIM Funds and I highly recommend it to you.
You are always welcome to contact me at bruce@brucecrockett.com with any questions or concerns you may have. We look forward to
representing you and serving you in the coming months.
Sincerely,
/S/ BRUCE L. CROCKETT
Bruce L. Crockett
Independent Chair
AIM Funds Board of Trustees
3 AIM CORE PLUS BOND FUND
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MANAGEMENT'S DISCUSSION OF FUND PERFORMANCE
PERFORMANCE SUMMARY well as the risk parameters for the Fund.
Investments are evaluated for liquidity
From the Fund's inception on June 3, 2009, to the close of the fiscal year on August and risk versus relative value. Working
31, 2009, Class A shares of AIM Core Plus Bond Fund, at net asset value (NAV), closely with sector specialists and
outperformed the Fund's broad market and style-specific index, the Barclays Capital traders, we determine the timing and
U.S. Aggregate Index.(triangle) The Fund outperformed mainly due to its out-of-index amount of each alpha decision to use in
allocation to high-yield corporate bonds and its underweight allocation to U.S. the portfolio.
government securities.
Sell decisions are based on:
Additional performance information appears later in this report.
o Changes in security or issuer credit
- --------------------------------------------------------------------------------------- quality.
FUND VS. INDEXES
o Changes in the perceived relative
Cumulative total returns, 6/3/09 to 8/31/09, at net asset value (NAV). Performance value of a security leading the team
shown does not include applicable contingent deferred sales charges (CDSC) or front-end to seek better alternative
sales charges, which would have reduced performance. opportunities.
Class A Shares 3.58% o Changes in economic or market outlook
Class B Shares 3.39 that warrant a modification of the
Class C Shares 3.39 Fund's duration.
Class R Shares 3.51
Class Y Shares 3.64 o Changes in yield curve shape that
Barclays Capital U.S. Aggregate Index(triangle)(Broad Market/ alter positioning strategies.
Style-Specific Index) 3.27
Lipper Intermediate Investment Grade Debt Funds Index(triangle) o Changes in specific sector outlooks
(Peer Group Index) 5.29 or sectors falling out of favor.
(triangle)Lipper Inc. ------------------------------------------
MARKET CONDITIONS AND YOUR FUND
See page 7 for a detailed explanation of Fund performance.
Bond market volatility waned
- ------------------------------------------ significantly in 2009, despite persistent
HOW WE INVEST economic uncertainty and escalating
opportunities for investors that are best inflation fears. Government intervention
We invest primarily in investment grade captured by independent specialist and attractive valuations spurred
fixed-income securities represented by the decision makers interconnected as a global investors' risk appetite across
sector categories within the Barclays team. We use this philosophy in an effort non-government securities. Spread premiums
Capital U.S. Aggregate Index. We may also to produce total return for our compressed to comparable Treasuries which
invest in derivative instruments such as shareholders. boosted returns for these riskier assets.
futures contracts and swap agreements The U.S. Federal Reserve left its federal
(including, but not limited to, credit Our security selection is supported by funds target rate in a range of zero to
default swaps) and engage in mortgage a team of independent specialists. Team 0.25% even as the outlook for the economy
dollar roll transactions, a form of members conduct top-down macroeconomic and the markets remained uncertain.(1)
repurchase agreement activity in the analysis as well as bottom-up analysis on
to-be-announced market for agency individual securities. Recommendations are In this environment, the Barclays
mortgage-backed securities. Out-of-index communicated to portfolio managers through Capital U.S. Aggregate Index returned
alpha sources may make up to 30% of the proprietary technology that allows all 4.62% year to date through August 31,
overall portfolio and can include foreign investment professionals to communicate in 2009.(2) Many weak asset classes last year
government or corporate bonds, emerging a timely manner. have been among the strongest performers
market debt, non-dollar denominated in 2009, as a rally in credit-related
securities and high yield (below Portfolio construction begins with a fixed income assets, which began during
investment grade) bonds. well-defined Fund design that establishes the first quarter, carried over and
the target investment vehicles for spreads continued to tighten through the
We believe dynamic and complex generating the desired "alpha" (the extra end of the fiscal year.
fixed-income markets may create return above a specific benchmark) as
- ------------------------------------------ ------------------------------------------ ------------------------------------------
PORTFOLIO COMPOSITION TOP 10 FIXED INCOME ISSUERS* Total Net Assets $3.6 million
By security type, based on net assets
Total Number of Holdings* 102
Bonds and Notes 35.7% 1. U.S. Treasury 19.9%
U.S. Government Sponsored 2. Federal Home Loan Mortgage The Fund's holdings are subject to change,
Mortgage Backed Securities 35.1 Corp. 18.1 and there is no assurance that the Fund
U.S. Treasury Securities 19.9 3. Federal National Mortgage will continue to hold any particular
Asset-Backed Securities 9.5 Association 17.0 security.
Money Market Funds 4. Bear Stearns Commercial
Plus Other Assets Less Liabilities -0.2 Mortgage Securities 2.1 * Excluding money market fund holdings.
5. Morgan Stanley Capital I 2.1
6. GS Mortgage Securities Corp. II 1.4
7. BA Credit Card Trust 1.1
8. Citigroup Mortgage Loan
Trust Inc. 1.1
9. Wachovia Corp. 1.0
10. British Sky Broadcasting
Group PLC 0.9
4 AIM CORE PLUS BOND FUND
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A shrinking economy and rising The Fund targets a portfolio duration CHUCK BURGE
unemployment are elements of a challenging within a band of plus or minus one year of Senior portfolio manager, is
fundamental backdrop for many the benchmark's duration. Duration [BURGE manager of AIM Core Plus Bond
consumer-related fixed-income securities, measures a portfolio's price sensitivity PHOTO] Fund. Mr. Burge joined
but their strong rebound of late to interest rate changes; a shorter Invesco in 2002 and assumed
demonstrates that their valuations had duration portfolio tends to be less his fund management
been pushed below levels warranted even by sensitive to these changes. We maintained responsibilities in 2009. He earned a B.S.
poor fundamentals. U.S. investment grade a shorter-than-benchmark duration since in economics from Texas A&M University and
corporate credit, represented by the the Fund's inception, and therefore did an M.B.A. in finance and accounting from
Barclays Capital U.S. Credit Index, posted not fully benefit from the fall in Rice University.
a 16.08% excess return over comparable general market yields during July and
Treasuries on a year-to-date basis through August. The Fund's yield curve posture CINDY BRIEN
August 31, 2009.(3) For the same period, over the period was neutral to the Chartered Financial Analyst,
the Barclays Capital U.S. Corporate High benchmark; therefore its impact on the [BRIEN portfolio manager, is manager
Yield Index posted a 42.24% excess return, Fund's relative performance was PHOTO] of AIM Core Plus Bond Fund.
the Barclays Capital Asset-Backed negligible. Ms. Brien joined Invesco Aim
Securities Index posted a 21.15% excess in 1996. She earned a B.B.A.
return, the Barclays Capital Thank you for investing in AIM Core from The University of Texas at Austin.
Mortgage-Backed Securities Index posted a Plus Bond Fund and for sharing our Ms. Brien is a director and a former
3.75% excess return, and the Barclays long-term investment horizon. president of the CFA Society of Houston.
Capital CMBS ERISA-Eligible Index posted a
23.06% excess return.(3) (1) U.S. Federal Reserve CLAUDIA CALICH
Senior portfolio manager, is
In the improving bond market (2) Lipper Inc. [CALICH manager of AIM Core Plus Bond
environment that characterized the 89-day PHOTO] Fund. Ms. Calich joined
period between the Fund's inception on (3) Barclays Capital Invesco Worldwide Fixed
June 3, 2009, and the end of the fiscal Income in 2004 and leads its
year on August 31, 2009, sector allocation The views and opinions expressed in Emerging Markets Team. She earned a B.A.
and security selection were primary management's discussion of Fund with honors from Susquehanna University
factors affecting the Fund's relative and performance are those of Invesco Aim and an M.A. in international economics
absolute performance. Our emphasis on Advisors, Inc. These views and opinions from the International University of Japan
investment grade credit, and our nearly are subject to change at any time based on in Niigata.
15% allocation to out-of-index high yield factors such as market and economic
bonds, drove the Fund's outperformance conditions. These views and opinions may PETER EHRET
relative to its benchmark. For the period, not be relied upon as investment advice or Chartered Financial Analyst,
U.S. investment grade credit and high recommendations, or as an offer for a [EHERT senior portfolio manager, is
yield were among the best performing bond particular security. The information is PHOTO] manager of AIM Core Plus Bond
market sectors, returning 8.11% and not a complete analysis of every aspect of Fund. He joined Invesco
9.02%(3), respectively, while the Barclays any market, country, industry, security or World-wide Fixed Income in
Capital U.S. Aggregate Index returned the Fund. Statements of fact are from 2001. Mr. Ehret graduated cum laude with a
3.27%.(2) sources considered reliable, but Invesco B.S. in economics and statistics from the
Aim Advisors, Inc. makes no representation University of Minnesota. He also earned an
Security selection that favored or warranty as to their completeness or M.S. in real estate appraisal and
industrial investment grade corporates accuracy. Although historical performance investment analysis from the University of
over financials and utilities bonds is no guarantee of future results, these Wisconsin-Madison.
proved a mild detractor from relative insights may help you understand our
performance, but on an absolute basis was investment management philosophy.
still beneficial to the Fund. At the same
time, the Fund benefited from underweight See important Fund and index disclosures
positions in U.S. government securities, later in this report.
relative to its benchmark.(3) The Barclays
Capital U.S. Government Index returned
only 1.45% from June 3, 2009, to August
31, 2009.(3)
While the Fund maintained investment
grade average credit quality overall, it
benefited from its tactical allocation to
lower quality, high yield bonds as that
segment of the U.S. bond market generally
outperformed the highest quality bonds
during the period.
5 AIM CORE PLUS BOND FUND
</Table>
<Table>
- ------------------------------------------------------------------------------------------------------------------------------------
FUND PERFORMANCE
- ------------------------------------------ ------------------------------------------
CUMULATIVE TOTAL RETURNS CUMULATIVE TOTAL RETURNS CLASS A SHARE PERFORMANCE REFLECTS THE
As of 8/31/09, including maximum As of 6/30/09, the most recent calendar MAXIMUM 4.75% SALES CHARGE, AND CLASS B
applicable sales charges quarter-end, including maximum applicable AND CLASS C SHARE PERFORMANCE REFLECTS THE
sales charges APPLICABLE CONTINGENT DEFERRED SALES
CHARGE (CDSC) FOR THE PERIOD INVOLVED. THE
CLASS A SHARES CLASS A SHARES CDSC ON CLASS B SHARES DECLINES FROM 5%
Inception (6/3/09) -1.36% Inception (6/3/09) -4.69% BEGINNING AT THE TIME OF PURCHASE TO 0% AT
THE BEGINNING OF THE SEVENTH YEAR. THE
CLASS B SHARES CLASS B SHARES CDSC ON CLASS C SHARES IS 1% FOR THE FIRST
Inception (6/3/09) -1.61% Inception (6/3/09) -4.98% YEAR AFTER PURCHASE. CLASS R SHARES DO NOT
HAVE A FRONT-END SALES CHARGE; RETURNS
CLASS C SHARES CLASS C SHARES SHOWN ARE AT NET ASSET VALUE AND DO NOT
Inception (6/3/09) 2.39% Inception (6/3/09) -0.98% REFLECT A 0.75% CDSC THAT MAY BE IMPOSED
ON A TOTAL REDEMPTION OF RETIREMENT PLAN
CLASS R SHARES CLASS R SHARES ASSETS WITHIN THE FIRST YEAR. CLASS Y
Inception (6/3/09) 3.51% Inception (6/3/09) 0.06% SHARES DO NOT HAVE A FRONT-END SALES
CHARGE OR A CDSC; THEREFORE, PERFORMANCE
CLASS Y SHARES CLASS Y SHARES IS AT NET ASSET VALUE.
Inception (6/3/09) 3.64% Inception (6/3/09) 0.10%
THE PERFORMANCE OF THE FUND'S SHARE
THE PERFORMANCE DATA QUOTED REPRESENT PAST OF THIS REPORT FOR CLASS A, CLASS B, CLASS CLASSES WILL DIFFER PRIMARILY DUE TO
PERFORMANCE AND CANNOT GUARANTEE C, CLASS R AND CLASS Y SHARES WAS 0.90%, DIFFERENT SALES CHARGE STRUCTURES AND
COMPARABLE FUTURE RESULTS; CURRENT 1.65%, 1.65%, 1.15% AND 0.65%, CLASS EXPENSES.
PERFORMANCE MAY BE LOWER OR HIGHER. PLEASE RESPECTIVELY.(1) THE TOTAL ANNUAL FUND
VISIT INVESCOAIM.COM FOR THE MOST RECENT OPERATING EXPENSE RATIO SET FORTH IN THE HAD THE ADVISOR NOT WAIVED FEES
MONTH-END PERFORMANCE. PERFORMANCE FIGURES MOST RECENT FUND PROSPECTUS AS OF THE DATE AND/OR REIMBURSED EXPENSES, PERFORMANCE
REFLECT REINVESTED DISTRIBUTIONS, CHANGES OF THIS REPORT FOR CLASS A, CLASS B, CLASS WOULD HAVE BEEN LOWER.
IN NET ASSET VALUE AND THE EFFECT OF THE C, CLASS R AND CLASS Y SHARES WAS 2.67%,
MAXIMUM SALES CHARGE UNLESS OTHERWISE 3.42%, 3.42%, 2.92% AND 2.42%, (1) Total annual operating expenses less
STATED. INVESTMENT RETURN AND PRINCIPAL RESPECTIVELY. THE EXPENSE RATIOS PRESENTED any contractual fee waivers and/or
VALUE WILL FLUCTUATE SO THAT YOU MAY HAVE ABOVE MAY VARY FROM THE EXPENSE RATIOS expense reimbursements by the advisor
A GAIN OR LOSS WHEN YOU SELL SHARES. PRESENTED IN OTHER SECTIONS OF THIS REPORT in effect through at least June 30,
THAT ARE BASED ON EXPENSES INCURRED DURING 2010. See current prospectus for more
THE NET ANNUAL FUND OPERATING EXPENSE THE PERIOD COVERED BY THIS REPORT. information.
RATIO SET FORTH IN THE MOST RECENT FUND
PROSPECTUS AS OF THE DATE
- ------------------------------------------------------------------------------------------------------------------------------------
continued from page 7
------------------------------------------
excluded, but Canadian and global bonds o The BARCLAYS CAPITAL U.S. GOVERNMENT OTHER INFORMATION
(SEC-registered) of issuers in INDEX consists of securities issued by
non-emerging countries are included. the U.S. government including public o The Chartered Financial Analyst (R)
obligations of the U.S. Treasury with a (CFA(R)) designation is globally
o The BARCLAYS CAPITAL ASSET-BACKED remaining maturity of one year or more recognized and attests to a
SECURITIES INDEX is a subset of the or publicly issued debt of U.S. charter-holder's success in a rigorous
Barclays Capital U.S. Aggregate Index government agencies, quasi-federal and comprehensive study program in the
that focuses on credit cards, auto corporations and corporate or foreign field of investment management and
loans and home equity loans. The index debt guaranteed by the U.S. government. research analysis.
includes only the senior class and
ERISA-eligible B and C tranches of each o The Fund is not managed to track the o Industry classifications used in this
ABS issue. performance of any particular index, report are generally according to the
including the indexes defined here, and Global Industry Classification
o The BARCLAYS CAPITAL MORTGAGE-BACKED consequently, the performance of the Standard, which was developed by and is
SECURITIES INDEX is an unmanaged index Fund may deviate significantly from the the exclusive property and a service
composed of all fixed securities performance of the indexes. mark of MSCI Inc. and Standard &
mortgage pools by GNMA, FNMA and the Poor's.
FHLMC, including GNMA Graduated Payment o A direct investment cannot be made in
Mortgages. an index. Unless otherwise indicated, o The returns shown in management's
index results include reinvested discussion of Fund performance are
o The BARCLAYS CAPITAL CMBS dividends, and they do not reflect based on net asset values calculated
ERISA-ELIGIBLE INDEX is the sales charges. Performance of an index for shareholder transactions. Generally
ERISA-eligible component of the of funds reflects fund expenses; accepted accounting principles require
Barclays Capital CMBS Index, which performance of a market index does not. adjustments to be made to the net
measures the performance of the assets of the Fund at period end for
commercial mortgage-backed securities financial reporting purposes, and as
(CMBS) market. The index includes such, the net asset values for
investment grade securities that are shareholder transactions and the
ERISA eligible under the underwriter's returns based on those net asset values
exemption. may differ from the net asset values
and returns reported in the Financial
Highlights.
6 AIM CORE PLUS BOND FUND
</Table>
<Table>
- ------------------------------------------------------------------------------------------------------------------------------------
AIM CORE PLUS BOND FUND'S INVESTMENT OBJECTIVE IS TOTAL RETURN.
o Unless otherwise stated, information presented in this report is as of August 31, 2009, and is based on total net assets.
o Unless otherwise noted, all data provided by Invesco Aim.
- ------------------------------------------
ABOUT SHARE CLASSES inflation or sharply devalued changes in the rate at which the
currencies against the U.S. dollar. underlying loans are prepaid.
o Effective September 30, 2003, for Transaction costs are often higher, and
qualified plans only, those previously there may be delays in settlement o Nondiversification increases the risk
established are eligible to purchase procedures. that the value of the Fund's shares may
Class B shares of any AIM fund. Please vary more widely, and the Fund may be
see the prospectus for more o Foreign securities have additional subject to greater investment and
information. risks, including exchange rate changes, credit risk than if it invested more
political and economic upheaval, broadly.
o Class R shares are available only to relative lack of information,
certain retirement plans. Please see relatively low market liquidity, and o Reinvestment risk is the risk that a
the prospectus for more information. the potential lack of strict financial bond's cash flows will be reinvested at
and accounting controls and standards. an interest rate below that of the
o Class Y shares are available to only original bond.
certain investors. Please see the o Lower rated securities may be more
prospectus for more information. susceptible to real or perceived o The Fund may invest in obligations
adverse economic and competitive issued by agencies and
- ------------------------------------------ industry conditions, and the secondary instrumentalities of the U.S.
PRINCIPAL RISKS OF INVESTING IN THE FUND markets in which lower rated securities government that may vary in the level
are traded may be less liquid than of support they receive from the U.S.
o The Fund may engage in active and higher grade securities. The loans in government. The U.S. government may
frequent trading of portfolio which the Fund may invest are typically choose not to provide financial support
securities to achieve its investment noninvestment-grade and involve a to U.S.-government- sponsored agencies
objective. If a fund does trade in this greater risk of default on interest and or instrumentalities if it is not
way, it may incur increased costs, principal payments and of price changes legally obligated to do so. In this
which can lower the actual return of due to the changes in the credit case, if the issuer defaulted, the fund
the fund. Active trading may also quality of the issuer. holding securities of such an issuer
increase short term gains and losses, might not be able to recover its
which may affect taxes that must be o Interest rate risk refers to the risk investment from the U.S. government.
paid. that bond prices generally fall as
interest rates rise and vice versa. ABOUT INDEXES USED IN THIS REPORT
o Individually negotiated, or
over-the-counter, derivatives are also o Leveraging entails risks such as o The BARCLAYS CAPITAL U.S. AGGREGATE
subject to counterparty risk -- the magnifying changes in the value of the INDEX covers U.S. investment-grade
risk that the other party to the portfolio's securities. fixed-rate bonds with components for
contract will not fulfill its government and corporate securities,
contractual obligation to complete the o Since a large percentage of the Fund's mortgage pass-throughs, and
transaction of an underlying fund. assets may be invested in securities of asset-backed securities.
a limited number of companies, each
o Credit risk is the risk of loss on an investment has a greater effect on the o The LIPPER INTERMEDIATE INVESTMENT
investment due to the deterioration of Fund's overall performance, and any GRADE DEBT FUNDS INDEX is an equally
an issuer's financial health. Such a change in the value of those securities weighted representation of the largest
deterioration of financial health may could significantly affect the value of funds in the Lipper Intermediate
result in a reduction of the credit your investment in the Fund. Investment Grade Debt Funds category.
rating of the issuer's securities and These funds invest at least 65% of
may lead to the issuer's inability to o A majority of the Fund's assets are assets in investment-grade debt issues
honor its contractual obligations, likely to be invested in loans and (rated in the top four grades) with
including making timely payment of securities that are less liquid than dollar-weighted average maturities of
interest and principal. those rated on national exchanges. five to 10 years.
o The Fund is subject to currency/ o There is no guarantee that the invest o The BARCLAYS CAPITAL U.S. CREDIT INDEX
exchange rate risk because it may buy -ment techniques and risk analysis used is an unmanaged index that consists of
or sell currencies other than the U.S. by the Fund's portfolio managers will publicly issued, SEC-registered U.S.
dollar. produce the desired results. corporate and specified foreign
debentures and secured notes that meet
o The Fund may use enhanced investment o The prices of securities held by the the specified maturity, liquidity
techniques such as derivatives. The Fund may decline in response to market and quality requirements.
principal risk of derivatives is that risks.
the fluctuations in their values may o The BARCLAYS CAPITAL U.S. CORPORATE
not correlate perfectly with the o The Fund may invest in mortgage and HIGH YIELD INDEX covers the universe of
overall securities markets. Derivatives asset-backed securities. These fixed rate, non-investment grade debt.
are subject to counterparty risk -- the securities are subject to prepayment or Pay-in-kind bonds, Eurobonds, and debt
risk that the other party will not call risk, which is the risk that issues from countries designated as
complete the transaction with the Fund. payments from the borrower may be emerging markets are
received earlier or later than expected
o Investing in developing countries can due to continued on page 6
add additional risk, such as high rates
of
------------------------------------------
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 ACPSX
INVESTORS SHOULD READ IT CAREFULLY BEFORE INVESTING. Class B Shares CPBBX
Class C Shares CPCFX
- --------------------------------------------------------------------------------------- Class R Shares CPBRX
NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE Class Y Shares CPBYX
7 AIM CORE PLUS BOND FUND
</Table>
SCHEDULE OF INVESTMENTS(a)
August 31, 2009
<Table>
<Caption>
PRINCIPAL
AMOUNT VALUE
- -----------------------------------------------------------------------------
BONDS & NOTES-35.71%
AEROSPACE & DEFENSE-1.25%
Alliant Techsystems Inc.,
Sr. Unsec. Gtd. Sub. Notes,
6.75%, 04/01/16 $ 10,000 $ 9,625
- -----------------------------------------------------------------------------
BE Aerospace, Inc.,
Sr. Unsec. Unsub. Notes,
8.50%, 07/01/18 10,000 9,950
- -----------------------------------------------------------------------------
Northrop Grumman Corp.,
Sr. Unsec. Unsub. Notes,
5.05%, 08/01/19 25,000 25,877
=============================================================================
45,452
=============================================================================
AGRICULTURAL PRODUCTS-0.63%
Bunge Limited Finance Corp.,
Sr. Unsec. Gtd. Notes,
8.50%, 06/15/19 20,000 22,990
=============================================================================
AIRLINES-1.86%
American Airlines Pass Through Trust,
Series 2001-2, Class A-1, Sec. Global Pass
Through Ctfs.,
6.98%, 04/01/11 13,053 12,714
- -----------------------------------------------------------------------------
Series 2009-1A, Sec. Pass Through Ctfs.,
10.38%, 07/02/19 20,000 21,075
- -----------------------------------------------------------------------------
Continental Airlines Inc.,
Pass Through Ctfs.,
9.00%, 07/08/16 30,000 30,919
- -----------------------------------------------------------------------------
Delta Air Lines, Inc.,
Series 2002-1, Class C, Sec. Pass Through Ctfs.,
7.78%, 01/02/12 3,108 2,975
=============================================================================
67,683
=============================================================================
APPAREL RETAIL-0.70%
Limited Brands, Inc.,
Sr. Notes,
8.50%, 06/15/19(b) 25,000 25,375
=============================================================================
AUTO PARTS & EQUIPMENT-0.38%
Affinia Group Inc.,
Sr. Sec. Notes,
10.75%, 08/15/16(b) 5,000 5,219
- -----------------------------------------------------------------------------
Allison Transmission Inc.,
Sr. Unsec. Gtd. Toggle Notes,
11.25%, 11/01/15(b) 10,000 8,550
=============================================================================
13,769
=============================================================================
AUTOMOBILE MANUFACTURERS-0.60%
Case New Holland Inc.,
Sr. Gtd. Notes,
7.75%, 09/01/13(b) 5,000 4,963
- -----------------------------------------------------------------------------
Ford Motor Co.,
Sr. Unsec. Unsub. Global Notes,
7.45%, 07/16/31 10,000 7,725
- -----------------------------------------------------------------------------
Ford Motor Credit Co. LLC,
Sr. Unsec. Unsub. Global Notes,
7.50%, 08/01/12 10,000 9,200
=============================================================================
21,888
=============================================================================
AUTOMOTIVE RETAIL-0.72%
AutoZone Inc.,
Sr. Unsec. Notes,
5.75%, 01/15/15 25,000 26,380
=============================================================================
BIOTECHNOLOGY-0.79%
Amgen Inc.,
Sr. Unsec. Global Notes,
6.40%, 02/01/39 25,000 28,653
=============================================================================
BREWERS-0.64%
Anheuser-Busch InBev Worldwide Inc.,
Sr. Unsec. Gtd. Unsub. Notes,
7.75%, 01/15/19(b) 20,000 23,491
=============================================================================
BROADCASTING-0.87%
COX Communications Inc.,
Sr. Unsec. Notes,
9.38%, 01/15/19(b) 25,000 31,581
=============================================================================
BUILDING PRODUCTS-0.26%
Ply Gem Industries Inc.,
Sr. Sec. Gtd. First & Second Lien Global Notes,
11.75%, 06/15/13 5,000 4,250
- -----------------------------------------------------------------------------
USG Corp.,
Sr. Unsec. Gtd. Notes,
9.75%, 08/01/14(b) 5,000 5,150
=============================================================================
9,400
=============================================================================
CABLE & SATELLITE-1.89%
British Sky Broadcasting Group PLC (United
Kingdom),
Sr. Unsec. Gtd. Unsub. Yankee Notes,
9.50%, 11/15/18(b) 25,000 32,232
- -----------------------------------------------------------------------------
Mediacom LLC/Mediacom Capital Corp.,
Sr. Notes,
9.13%, 08/15/19(b) 5,000 4,913
- -----------------------------------------------------------------------------
Sirius XM Radio Inc.,
Sr. Sec. Notes,
9.75%, 09/01/15(b) 5,000 5,037
- -----------------------------------------------------------------------------
</Table>
See accompanying Notes to Financial Statements which are an integral part of the
financial statements.
8 AIM CORE PLUS BOND FUND
<Table>
<Caption>
PRINCIPAL
AMOUNT VALUE
- -----------------------------------------------------------------------------
CABLE & SATELLITE-(CONTINUED)
Time Warner Cable Inc.,
Sr. Unsec. Gtd. Unsub. Deb.,
6.75%, 06/15/39 $ 20,000 $ 21,433
- -----------------------------------------------------------------------------
XM Satellite Radio Inc.,
Sr. Sec. Notes,
11.25%, 06/15/13(b) 5,000 5,219
=============================================================================
68,834
=============================================================================
CASINOS & GAMING-0.41%
MGM Mirage Inc.,
Sr. Unsec. Gtd. Unsub. Notes,
8.50%, 09/15/10 15,000 14,794
=============================================================================
COMMUNICATIONS EQUIPMENT-0.74%
Corning Inc.,
Sr. Unsec. Unsub. Notes,
6.63%, 05/15/19 25,000 26,986
=============================================================================
DATA PROCESSING & OUTSOURCED SERVICES-0.12%
First Data Corp.,
Sr. Unsec. Gtd. Global Notes,
9.88%, 09/24/15 5,000 4,325
=============================================================================
DIVERSIFIED BANKS-1.03%
Wachovia Corp.,
Series G, Sr. Unsec. Medium-Term Notes,
5.50%, 05/01/13 35,000 37,415
=============================================================================
DIVERSIFIED CHEMICALS-0.14%
Olin Corp.,
Sr. Unsec. Unsub. Notes,
8.88%, 08/15/19 5,000 5,190
=============================================================================
DIVERSIFIED SUPPORT SERVICES-0.26%
Iron Mountain Inc.,
Sr. Unsec. Gtd. Sub. Notes,
6.63%, 01/01/16 10,000 9,463
=============================================================================
DRUG RETAIL-0.73%
Rite Aid Corp.,
Sr. Sec. Notes,
9.75%, 06/12/16(b) 25,000 26,500
=============================================================================
ELECTRIC UTILITIES-1.98%
DCP Midstream LLC,
Notes,
9.70%, 12/01/13(b) 20,000 22,999
- -----------------------------------------------------------------------------
Indiana Michigan Power Co.,
Sr. Notes,
7.00%, 03/15/19 25,000 28,642
- -----------------------------------------------------------------------------
Virginia Electric & Power Co.,
Sr. Unsec. Notes,
5.00%, 06/30/19 20,000 20,698
=============================================================================
72,339
=============================================================================
ELECTRICAL COMPONENTS & EQUIPMENT-0.70%
Belden Inc.,
Sr. Gtd. Sub. Notes,
9.25%, 06/15/19(b) 25,000 25,375
=============================================================================
ELECTRONIC MANUFACTURING SERVICES-0.13%
Jabil Circuit, Inc.,
Sr. Notes,
7.75%, 07/15/16 5,000 4,938
=============================================================================
ENVIRONMENTAL & FACILITIES SERVICES-0.14%
Clean Harbors Inc.,
Sr. Sec. Notes,
7.63%, 08/15/16(b) 5,000 5,013
=============================================================================
HEALTH CARE EQUIPMENT-1.45%
Covidien International Finance S.A. (Luxembourg),
Sr. Unsec. Gtd. Unsub. Global Yankee Notes,
6.00%, 10/15/17 25,000 27,512
- -----------------------------------------------------------------------------
St. Jude Medical Inc.,
Sr. Unsec. Notes,
3.75%, 07/15/14 25,000 25,473
=============================================================================
52,985
=============================================================================
HEALTH CARE FACILITIES-0.94%
HCA, Inc.,
Sr. Sec. Gtd. Global Notes,
9.25%, 11/15/16 15,000 15,262
- -----------------------------------------------------------------------------
Sr. Sec. Gtd. Notes,
7.88%, 02/15/20(b) 10,000 9,800
- -----------------------------------------------------------------------------
Tenet Healthcare Corp.,
Sr. Unsec. Notes,
7.38%, 02/01/13 10,000 9,250
=============================================================================
34,312
=============================================================================
HEALTH CARE SERVICES-1.04%
Express Scripts Inc.,
Sr. Unsec. Global Notes,
6.25%, 06/15/14 25,000 27,510
- -----------------------------------------------------------------------------
US Oncology Inc.,
Sr. Sec. Notes,
9.13%, 08/15/17(b) 10,000 10,375
=============================================================================
37,885
=============================================================================
HOTELS, RESORTS & CRUISE LINES-0.56%
Hyatt Hotels Corp.,
Sr. Unsec. Unsub. Notes,
5.75%, 08/15/15(b) 20,000 20,374
=============================================================================
HOUSEHOLD PRODUCTS-0.57%
Procter & Gamble Co. (The),
Sr. Unsec. Global Notes,
3.50%, 02/15/15 20,000 20,725
=============================================================================
</Table>
See accompanying Notes to Financial Statements which are an integral part of the
financial statements.
9 AIM CORE PLUS BOND FUND
<Table>
<Caption>
PRINCIPAL
AMOUNT VALUE
- -----------------------------------------------------------------------------
INDEPENDENT POWER PRODUCERS & ENERGY TRADERS-0.79%
NRG Energy, Inc.,
Sr. Unsec. Gtd. Notes,
7.38%, 02/01/16 $ 15,000 $ 14,400
- -----------------------------------------------------------------------------
Sr. Unsec. Gtd. Unsub. Notes,
7.38%, 01/15/17 15,000 14,362
=============================================================================
28,762
=============================================================================
INTEGRATED TELECOMMUNICATION SERVICES-1.21%
AT&T Inc.,
Sr. Unsec. Unsub. Global Notes,
6.70%, 11/15/13 20,000 22,753
- -----------------------------------------------------------------------------
France Telecom S.A. (France),
Sr. Unsec. Unsub. Global Yankee Notes,
5.38%, 07/08/19 20,000 21,239
=============================================================================
43,992
=============================================================================
MOVIES & ENTERTAINMENT-0.70%
Cinemark USA Inc.,
Sr. Gtd. Notes,
8.63%, 06/15/19(b) 25,000 25,406
=============================================================================
MULTI-LINE INSURANCE-0.58%
American Financial Group Inc.,
Sr. Notes,
9.88%, 06/15/19 20,000 21,174
=============================================================================
OIL & GAS EQUIPMENT & SERVICES-0.13%
Bristow Group, Inc.,
Sr. Unsec. Gtd. Global Notes,
7.50%, 09/15/17 5,000 4,775
=============================================================================
OIL & GAS EXPLORATION & PRODUCTION-2.20%
Anadarko Petroleum Corp.,
Sr. Unsec. Unsub. Global Notes,
5.75%, 06/15/14 25,000 26,690
- -----------------------------------------------------------------------------
Chesapeake Energy Corp.,
Sr. Unsec. Gtd. Global Notes,
6.38%, 06/15/15 5,000 4,562
- -----------------------------------------------------------------------------
Cimarex Energy Co.,
Sr. Unsec. Gtd. Notes,
7.13%, 05/01/17 25,000 23,375
- -----------------------------------------------------------------------------
McMoRan Exploration Co.,
Sr. Unsec. Gtd. Notes,
11.88%, 11/15/14 5,000 4,875
- -----------------------------------------------------------------------------
Quicksilver Resources Inc.,
Sr. Notes,
11.75%, 01/01/16 10,000 10,700
- -----------------------------------------------------------------------------
Range Resources Corp.,
Sr. Unsec. Gtd. Sub. Notes,
7.50%, 10/01/17 10,000 9,850
=============================================================================
80,052
=============================================================================
OIL & GAS REFINING & MARKETING-0.22%
United Refining Co.,
Series 2, Sr. Unsec. Gtd. Global Notes,
10.50%, 08/15/12 10,000 8,063
=============================================================================
OIL & GAS STORAGE & TRANSPORTATION-1.10%
Spectra Energy Capital LLC,
Sr. Unsec. Gtd. Notes,
5.65%, 03/01/20 20,000 20,389
- -----------------------------------------------------------------------------
Williams Partners L.P./Williams Partners Finance
Corp.,
Sr. Unsec. Global Notes,
7.25%, 02/01/17 20,000 19,550
=============================================================================
39,939
=============================================================================
OTHER DIVERSIFIED FINANCIAL SERVICES-1.60%
Bank of America Corp.,
Sr. Unsec. Unsub. Global Notes,
6.50%, 08/01/16 20,000 20,771
- -----------------------------------------------------------------------------
Citigroup Inc.,
Sr. Unsec. Global Notes,
8.50%, 05/22/19 10,000 10,940
- -----------------------------------------------------------------------------
General Electric Capital Corp.,
Sr. Unsec. Unsub. Global Notes,
5.90%, 05/13/14 25,000 26,800
=============================================================================
58,511
=============================================================================
PACKAGED FOODS & MEATS-1.67%
H.J. Heinz Finance Co.,
Sr. Unsec. Gtd. Notes,
7.13%, 08/01/39(b) 20,000 23,106
- -----------------------------------------------------------------------------
Kraft Foods Inc.,
Sr. Unsec. Global Notes,
6.13%, 08/23/18 25,000 27,486
- -----------------------------------------------------------------------------
Smithfield Foods Inc.,
Sr. Sec. Gtd. Notes,
10.00%, 07/15/14(b) 10,000 10,250
=============================================================================
60,842
=============================================================================
PAPER PACKAGING-0.15%
Sealed Air Corp.,
Sr. Notes,
7.88%, 06/15/17(b) 5,000 5,363
=============================================================================
PAPER PRODUCTS-1.00%
Clearwater Paper Corp.,
Sr. Unsec. Notes,
10.63%, 06/15/16(b) 25,000 27,250
- -----------------------------------------------------------------------------
Domtar Corp.,
Sr. Unsec. Gtd. Global Notes,
5.38%, 12/01/13 10,000 9,350
=============================================================================
36,600
=============================================================================
PHARMACEUTICALS-0.75%
GlaxoSmithKline Capital Inc.,
Sr. Unsec. Gtd. Global Notes,
5.65%, 05/15/18 25,000 27,383
=============================================================================
</Table>
See accompanying Notes to Financial Statements which are an integral part of the
financial statements.
10 AIM CORE PLUS BOND FUND
<Table>
<Caption>
PRINCIPAL
AMOUNT VALUE
- -----------------------------------------------------------------------------
PUBLISHING-0.10%
Nielsen Finance LLC/Co.,
Sr. Unsec. Gtd. Sub. Disc. Global Notes,
12.50%, 08/01/16(c) $ 5,000 $ 3,575
=============================================================================
RESEARCH & CONSULTING SERVICES-0.67%
Erac USA Finance Co.,
Unsec. Gtd. Notes,
5.80%, 10/15/12(b) 25,000 24,396
=============================================================================
TRADING COMPANIES & DISTRIBUTORS-0.14%
RSC Equipment Rental Inc.,
Sr. Sec. Notes,
10.00%, 07/15/17(b) 5,000 5,225
=============================================================================
TRUCKING-0.26%
Hertz Corp. (The),
Sr. Unsec. Gtd. Global Notes,
8.88%, 01/01/14 10,000 9,625
=============================================================================
WIRELESS TELECOMMUNICATION SERVICES-0.91%
SBA Telecommunications Inc.,
Sr. Gtd. Notes,
8.25%, 08/15/19(b) 10,000 10,175
- -----------------------------------------------------------------------------
Sprint Capital Corp.,
Sr. Unsec. Gtd. Unsub. Global Notes,
6.88%, 11/15/28 25,000 18,375
- -----------------------------------------------------------------------------
Sprint Nextel Corp.,
Sr. Notes,
8.38%, 08/15/17 5,000 4,800
=============================================================================
33,350
=============================================================================
Total Bonds & Notes (Cost $1,237,201) 1,301,148
=============================================================================
U.S. GOVERNMENT SPONSORED MORTGAGE-BACKED SECURITIES-35.12%
FEDERAL HOME LOAN MORTGAGE CORP. (FHLMC)-18.14%
Pass Through Ctfs.,
5.50%, 01/01/34 299,358 313,514
- -----------------------------------------------------------------------------
Pass Through Ctfs., TBA,
5.00%, 10/01/39(d) 340,000 347,597
=============================================================================
661,111
=============================================================================
FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA)-16.98%
Pass Through Ctfs., TBA,
4.50%, 09/01/24 to 09/01/39(d) 350,000 356,531
- -----------------------------------------------------------------------------
5.00%, 09/01/24(d) 100,000 104,234
- -----------------------------------------------------------------------------
6.00%, 09/01/39(d) 150,000 157,852
=============================================================================
618,617
=============================================================================
Total U.S. Government Sponsored Mortgage-
Backed Securities (Cost $1,269,750) 1,279,728
=============================================================================
U.S. TREASURY SECURITIES-19.87%
U.S. TREASURY BILLS-0.82%
0.21%, 12/17/09(c)(e) 30,000 29,987
=============================================================================
U.S. TREASURY NOTES-14.39%
4.50%, 04/30/12 300,000 324,797
- -----------------------------------------------------------------------------
2.25%, 05/31/14 200,000 199,531
=============================================================================
524,328
=============================================================================
U.S. TREASURY BONDS-4.66%
5.38%, 02/15/31 145,000 169,673
=============================================================================
Total U.S. Treasury Securities (Cost
$713,892) 723,988
=============================================================================
ASSET-BACKED SECURITIES-9.52%
BA Credit Card Trust,
Series 2006-B4, Class B4, Floating Rate Pass
Through Ctfs.,
0.35%, 03/15/12(f) 40,000 39,911
- -----------------------------------------------------------------------------
Bear Stearns Commercial Mortgage Securities,
Series 2004-PWR6, Class A4, Pass Through Ctfs.,
4.52%, 11/11/41(f) 25,000 24,028
- -----------------------------------------------------------------------------
Series 2004-PWR6, Class A6, Pass Through Ctfs.,
4.83%, 11/11/41(f) 25,000 24,084
- -----------------------------------------------------------------------------
Series 2006-T22, Class A2, Pass Through Ctfs.,
5.63%, 04/12/38 30,000 30,195
- -----------------------------------------------------------------------------
Citigroup Mortgage Loan Trust Inc.,
Series 2004-UST1, Class A4, Pass Through Ctfs.,
3.38%, 08/25/34 40,276 38,879
- -----------------------------------------------------------------------------
GS Mortgage Securities Corp. II,
Series 2005 GG4, Class A4A, Pass Through Ctfs.,
4.75%, 07/10/39 55,000 51,064
- -----------------------------------------------------------------------------
Morgan Stanley Capital I,
Series 2005-HQ7, Class A4, Pass Through Ctfs.,
5.38%, 11/14/42(f) 20,000 19,369
- -----------------------------------------------------------------------------
Series 2005-T17, Class A4, Pass Through Ctfs.,
4.52%, 12/13/41 30,000 29,834
- -----------------------------------------------------------------------------
Series 2005-T19, Class A4A, Pass Through Ctfs.,
4.89%, 06/12/47 30,000 28,731
- -----------------------------------------------------------------------------
TIAA Seasoned Commercial Mortgage Trust,
Series 2007-C4, Class A2,
5.79%, 08/15/39(f) 25,000 25,340
- -----------------------------------------------------------------------------
Wachovia Bank Commercial Mortgage Trust,
Series 2005-C21, Class A4, Pass Through Ctfs.,
5.38%, 10/15/44(f) 20,000 19,751
- -----------------------------------------------------------------------------
Wells Fargo Mortgage Backed Securities Trust,
Series 2004-K, Class 1A2, Floating Rate Pass
Through Ctfs.,
4.47%, 07/25/34(f) 16,992 15,839
=============================================================================
Total Asset-Backed Securities (Cost $338,947) 347,025
=============================================================================
MONEY MARKET FUNDS-32.88%
Liquid Assets Portfolio-Institutional Class(g) 599,182 599,182
- -----------------------------------------------------------------------------
Premier Portfolio-Institutional Class(g) 599,182 599,182
=============================================================================
Total Money Market Funds (Cost $1,198,364) 1,198,364
=============================================================================
TOTAL INVESTMENTS-133.10% (Cost $4,758,154) 4,850,253
=============================================================================
OTHER ASSETS LESS LIABILITIES-(33.10)% (1,206,175)
=============================================================================
NET ASSETS-100.00% $ 3,644,078
_____________________________________________________________________________
=============================================================================
</Table>
See accompanying Notes to Financial Statements which are an integral part of the
financial statements.
11 AIM CORE PLUS BOND FUND
Investment Abbreviations:
<Table>
Ctfs. - Certificates
Deb. - Debentures
Disc. - Discounted
Gtd. - Guaranteed
Sec. - Secured
Sr. - Senior
Sub. - Subordinated
TBA - To Be Announced
Unsec. - Unsecured
Unsub. - Unsubordinated
</Table>
Notes to Schedule of Investments:
(a) Industry and/or sector classifications used in this report are generally
according to the Global Industry Classification Standard, which was
developed by and is the exclusive property and a service mark of MSCI Inc.
and Standard & Poor's.
(b) 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 August 31, 2009 was $403,337, which represented 11.07% of the Fund's
Net Assets.
(c) Security traded on a discount basis. The interest rate shown represents
the discount rate at the time of purchase by the Fund.
(d) Security purchased on forward commitment basis. This security is subject
to dollar roll transactions. See Note 1J.
(e) All or a portion of the value was pledged as collateral to cover margin
requirements for open futures contracts. See Note 1K and Note 4.
(f) Interest or dividend rate is redetermined periodically. Rate shown is the
rate in effect on August 31, 2009.
(g) The money market fund and the Fund are affiliated by having the same
investment advisor.
See accompanying Notes to Financial Statements which are an integral part of the
financial statements.
12 AIM CORE PLUS BOND FUND
STATEMENT OF ASSETS AND LIABILITIES
August 31, 2009
<Table>
ASSETS:
Investments, at value (Cost $3,559,790) $3,651,889
- ------------------------------------------------------------------------------
Investments in affiliated money market funds, at value and cost 1,198,364
==============================================================================
Total investments, at value (Cost $4,758,154) 4,850,253
==============================================================================
Receivables for:
Investments sold 655,632
- ------------------------------------------------------------------------------
Fund shares sold 42,900
- ------------------------------------------------------------------------------
Dividends and interest 28,608
- ------------------------------------------------------------------------------
Other assets 66,039
==============================================================================
Total assets 5,643,432
______________________________________________________________________________
==============================================================================
LIABILITIES:
Payables for:
Investments purchased 1,925,639
- ------------------------------------------------------------------------------
Fund shares reacquired 32
- ------------------------------------------------------------------------------
Dividends 125
- ------------------------------------------------------------------------------
Variation margin 1,484
- ------------------------------------------------------------------------------
Accrued fees to affiliates 16,456
- ------------------------------------------------------------------------------
Accrued other operating expenses 55,618
==============================================================================
Total liabilities 1,999,354
==============================================================================
Net assets applicable to shares outstanding $3,644,078
______________________________________________________________________________
==============================================================================
NET ASSETS CONSIST OF:
Shares of beneficial interest $3,513,804
- ------------------------------------------------------------------------------
Undistributed net investment income 42,860
- ------------------------------------------------------------------------------
Undistributed net realized gain 5,646
- ------------------------------------------------------------------------------
Unrealized appreciation 81,768
==============================================================================
$3,644,078
______________________________________________________________________________
==============================================================================
NET ASSETS:
Class A $2,881,515
______________________________________________________________________________
==============================================================================
Class B $ 205,455
______________________________________________________________________________
==============================================================================
Class C $ 222,552
______________________________________________________________________________
==============================================================================
Class R $ 105,418
______________________________________________________________________________
==============================================================================
Class Y $ 125,520
______________________________________________________________________________
==============================================================================
Institutional Class $ 103,618
______________________________________________________________________________
==============================================================================
SHARES OUTSTANDING, $0.01 PAR VALUE PER SHARE, UNLIMITED NUMBER OF SHARES
AUTHORIZED:
Class A 280,114
______________________________________________________________________________
==============================================================================
Class B 19,973
______________________________________________________________________________
==============================================================================
Class C 21,633
______________________________________________________________________________
==============================================================================
Class R 10,248
______________________________________________________________________________
==============================================================================
Class Y 12,201
______________________________________________________________________________
==============================================================================
Institutional Class 10,073
______________________________________________________________________________
==============================================================================
Class A:
Net asset value per share $ 10.29
- ------------------------------------------------------------------------------
Maximum offering price per share
(Net asset value of $10.29 divided by 95.25%) $ 10.80
______________________________________________________________________________
==============================================================================
Class B:
Net asset value and offering price per share $ 10.29
______________________________________________________________________________
==============================================================================
Class C:
Net asset value and offering price per share $ 10.29
______________________________________________________________________________
==============================================================================
Class R:
Net asset value and offering price per share $ 10.29
______________________________________________________________________________
==============================================================================
Class Y:
Net asset value and offering price per share $ 10.29
______________________________________________________________________________
==============================================================================
Institutional Class:
Net asset value and offering price per share $ 10.29
______________________________________________________________________________
==============================================================================
</Table>
See accompanying Notes to Financial Statements which are an integral part of the
financial statements.
13 AIM CORE PLUS BOND FUND
STATEMENT OF OPERATIONS
For the period June 3, 2009 (commencement date) through August 31, 2009
<Table>
INVESTMENT INCOME:
Interest $ 32,330
- ----------------------------------------------------------------------------------------------
Dividends from affiliated money market funds 1,669
==============================================================================================
Total investment income 33,999
==============================================================================================
EXPENSES:
Advisory fees 3,547
- ----------------------------------------------------------------------------------------------
Administrative services fees 12,329
- ----------------------------------------------------------------------------------------------
Custodian fees 9
- ----------------------------------------------------------------------------------------------
Distribution fees:
Class A 1,592
- ----------------------------------------------------------------------------------------------
Class B 359
- ----------------------------------------------------------------------------------------------
Class C 360
- ----------------------------------------------------------------------------------------------
Class R 125
- ----------------------------------------------------------------------------------------------
Transfer agent fees -- A, B, C, R and Y 475
- ----------------------------------------------------------------------------------------------
Transfer agent fees -- Institutional 24
- ----------------------------------------------------------------------------------------------
Registration and filing fees 20,650
- ----------------------------------------------------------------------------------------------
Reports to shareholders 7,750
- ----------------------------------------------------------------------------------------------
Professional services fees 52,886
- ----------------------------------------------------------------------------------------------
Other 1,999
==============================================================================================
Total expenses 102,105
==============================================================================================
Less: Fees waived and expenses reimbursed (94,996)
==============================================================================================
Net expenses 7,109
==============================================================================================
Net investment income 26,890
==============================================================================================
REALIZED AND UNREALIZED GAIN (LOSS) FROM:
Net realized gain (loss) from:
Investment securities 22,358
- ----------------------------------------------------------------------------------------------
Futures contracts (16,957)
==============================================================================================
5,401
==============================================================================================
Change in net unrealized appreciation (depreciation) of:
Investment securities 92,099
- ----------------------------------------------------------------------------------------------
Futures contracts (10,331)
==============================================================================================
81,768
==============================================================================================
Net realized and unrealized gain 87,169
==============================================================================================
Net increase in net assets resulting from operations $114,059
______________________________________________________________________________________________
==============================================================================================
</Table>
See accompanying Notes to Financial Statements which are an integral part of the
financial statements.
14 AIM CORE PLUS BOND FUND
STATEMENT OF CHANGES IN NET ASSETS
For the period June 3, 2009 (commencement date) through August 31, 2009
<Table>
<Caption>
2009
- -----------------------------------------------------------------------------------------------
OPERATIONS:
Net investment income $ 26,890
- -----------------------------------------------------------------------------------------------
Net realized gain 5,401
- -----------------------------------------------------------------------------------------------
Change in net unrealized appreciation 81,768
===============================================================================================
Net increase in net assets resulting from operations 114,059
===============================================================================================
DISTRIBUTIONS TO SHAREHOLDERS FROM NET INVESTMENT INCOME:
Class A (17,512)
- -----------------------------------------------------------------------------------------------
Class B (887)
- -----------------------------------------------------------------------------------------------
Class C (934)
- -----------------------------------------------------------------------------------------------
Class R (616)
- -----------------------------------------------------------------------------------------------
Class Y (885)
- -----------------------------------------------------------------------------------------------
Institutional Class (736)
===============================================================================================
Total distributions from net investment income (21,570)
===============================================================================================
SHARE TRANSACTIONS-NET:
Class A 2,807,678
- -----------------------------------------------------------------------------------------------
Class B 200,964
- -----------------------------------------------------------------------------------------------
Class C 217,869
- -----------------------------------------------------------------------------------------------
Class R 102,542
- -----------------------------------------------------------------------------------------------
Class Y 121,790
- -----------------------------------------------------------------------------------------------
Institutional Class 100,746
===============================================================================================
Net increase in net assets resulting from share transactions 3,551,589
===============================================================================================
Net increase in net assets 3,644,078
===============================================================================================
NET ASSETS:
Beginning of year --
===============================================================================================
End of year (includes undistributed net investment income of $42,860) $3,644,078
_______________________________________________________________________________________________
===============================================================================================
</Table>
NOTES TO FINANCIAL STATEMENTS
August 31, 2009
NOTE 1--SIGNIFICANT ACCOUNTING POLICIES
AIM Core Plus Bond Fund (the "Fund") is a series portfolio of AIM Counselor
Series Trust (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 seven 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 total return.
The Fund currently consists of six different classes of shares: Class A, Class
B, Class C, Class R, 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 R, Class Y and Institutional Class shares are sold at net asset value.
Under certain circumstances, Class R shares are subject to a CDSC. 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 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.
Debt obligations (including convertible bonds) and unlisted equities are
fair valued using an evaluated quote provided by an independent pricing
service. Evaluated quotes provided by the pricing service may be
determined without exclusive reliance on quoted prices, and may reflect
appropriate factors such as
15 AIM CORE PLUS BOND FUND
institution-size trading in similar groups of securities, developments
related to specific securities, dividend rate, yield, quality, type of
issue, coupon rate, maturity, 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. 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/or principal payments.
A security listed or traded on an exchange (except convertible bonds) is
valued at its last sales price or official closing price as of the close
of the customary trading session on the exchange where the security is
principally traded, or lacking any sales or official closing price on a
particular day, the security may be valued at the closing bid price on
that day. Securities traded in the over-the-counter market are valued
based on prices furnished by independent pricing services or market
makers. When such securities are valued by an independent pricing service
they may be considered fair valued. Futures contracts are valued at the
final settlement price set by an exchange on which they are principally
traded. Listed options are valued at the mean between the last bid and ask
prices from the exchange on which they are principally traded. Options not
listed on an exchange are valued by an independent source at the mean
between the last bid and ask prices. For purposes of determining net asset
value per share, futures and option contracts generally are valued 15
minutes after the close of the customary trading session of the New York
Stock Exchange ("NYSE").
Investments in open-end and closed-end registered investment companies
that do not trade on an exchange are valued at the end of day net asset
value per share. Investments in open-end and closed-end registered
investment companies that trade on an exchange are valued at the last
sales price or official closing price as of the close of the customary
trading session on the exchange where the security is principally traded.
Swap agreements are fair valued using an evaluated quote provided by an
independent pricing service. Evaluated quotes provided by the pricing
service are valued based on a model which may include end of day net
present values, spreads, ratings, industry, and company performance.
Foreign securities (including foreign exchange contracts) are converted
into U.S. dollar amounts using the applicable exchange rates as of the
close of the NYSE. If market quotations are available and reliable for
foreign exchange traded equity securities, the securities will be valued
at the market quotations. Because trading hours for certain foreign
securities end before the close of the NYSE, closing market quotations may
become unreliable. If between the time trading ends on a particular
security and the close of the customary trading session on the NYSE,
events occur that are significant and make the closing price unreliable,
the Fund may fair value the security. If the event is likely to have
affected the closing price of the security, the security will be valued at
fair value in good faith using procedures approved by the Board of
Trustees. Adjustments to closing prices to reflect fair value may also be
based on a screening process of an independent pricing service to indicate
the degree of certainty, based on historical data, that the closing price
in the principal market where a foreign security trades is not the current
value as of the close of the NYSE. Foreign securities meeting the approved
degree of certainty that the price is not reflective of current value will
be priced at the indication of fair value from the independent pricing
service. Multiple factors may be considered by the independent pricing
service in determining adjustments to reflect fair value and may include
information relating to sector indices, American Depositary Receipts and
domestic and foreign index futures. Foreign securities may have additional
risks including exchange rate changes, potential for sharply devalued
currencies and high inflation, political and economical upheaval, the
relative lack of issuer information, relatively low market liquidity and
the potential lack of strict financial and accounting controls and
standards.
Securities for which market prices are not provided by any of the above
methods may be valued based upon quotes furnished by independent sources.
The last bid price may be used to value equity securities and Corporate
Loans. The mean between the last bid and asked prices may be used to value
debt obligations other than Corporate Loans.
Securities for which market quotations 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. Issuer specific events, market trends,
bid/ask quotes of brokers and information providers and other market data
may be reviewed in the course of making a good faith determination of a
security's fair value.
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. Paydown gains and losses on mortgage and asset-backed securities are
recorded as adjustments to interest income. 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
16 AIM CORE PLUS BOND FUND
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 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.
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. In addition, the Fund monitors for material events or
transactions that may occur or become known after the period-end date and
before the date the financial statements are released to print, which is
generally 45 days from the period-end date.
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 Funds may invest in obligations issued by agencies and
instrumentalities of the U.S. Government that may vary in the level of
support they receive from the government. The government may choose not to
provide financial support to government sponsored agencies or
instrumentalities if it is not legally obligated to do so. In this case,
if the issuer defaulted, the underlying fund holding securities of such
issuer might not be able to recover its investment from the U.S.
Government. Many securities purchased by the Fund are not guaranteed by
the U.S. Government.
J. DOLLAR ROLL AND FORWARD COMMITMENT TRANSACTIONS -- The Fund may engage in
dollar roll and forward commitment transactions with respect to mortgage-
backed securities issued by GNMA, FNMA and FHLMC. These transactions are
often conducted on a to be announced ("TBA") basis. In a TBA mortgage-
backed transaction, the seller does not specify the particular securities
to be delivered. Rather, a Fund agrees to accept any security that meets
specified terms, such as an agreed upon issuer, coupon rate and terms of
the underlying mortgages. TBA mortgage-backed transactions generally
settle once a month on a specific date.
In a dollar roll transaction, the Fund sells a mortgage-backed security
held in the Fund to a financial institution such as a bank or broker-
dealer, and simultaneously agrees to purchase a substantially similar
security (same type, coupon and maturity) from the institution at an
agreed upon price and future date. The mortgage-backed securities to be
purchased will bear the same coupon as those sold, but generally will be
collateralized by different pools of mortgages with different prepayment
histories. Based on the typical structure of dollar roll transactions by
the Fund, the dollar roll transactions are accounted for as financing
transactions in which the Fund receives compensation as either a "fee" or
a "drop". "Fee" income which is agreed upon amongst the parties at the
commencement of the dollar roll and the "drop" which is the difference
between the selling price and the repurchase price of the mortgage-backed
securities are amortized to income. During the period between the sale and
purchase settlement dates, the Fund will not be entitled to receive
interest and principal payments on securities purchased and not yet
settled. Proceeds of the sale may be invested in short-term instruments,
and the income from these investments, together with any additional fee
income received on the sale, could generate income for the Fund exceeding
the yield on the security sold. Dollar roll transactions are considered
borrowings under the 1940 Act.
Forward commitment transactions involve commitments by the Fund to
acquire or sell TBA mortgage-backed securities from/to a financial
institution, such as a bank or broker-dealer at a specified future date
and amount. The TBA mortgage-backed security is marked to market until
settlement and the unrealized appreciation or depreciation is recorded in
the statement of operations.
At the time the Fund enters into the dollar roll or forward commitment
transaction, mortgage-backed securities or other liquid assets held by the
Fund having a dollar value equal to the purchase price or in an amount
sufficient to honor the forward commitment will be segregated.
Dollar roll transactions involve the risk that the market value of the
securities retained by the Fund may decline below the price of the
securities that the Fund has sold but is obligated to purchase under the
agreement. In the event that the buyer of securities in a dollar roll
transaction files for bankruptcy or becomes insolvent, the Fund's use of
the proceeds from the sale of the securities may be restricted pending a
determination by the other party, or its trustee or receiver, whether to
enforce the Fund's obligation to purchase the securities. The return
earned by the Fund with the proceeds of the dollar roll transaction may
not exceed the return on the securities sold.
Forward commitment transactions involve the risk that a counter-party to
the transaction may fail to complete the transaction. If this occurs, the
Fund may lose the opportunity to purchase or sell the security at the
agreed upon price. Settlement dates of forward commitment transactions may
be a month
17 AIM CORE PLUS BOND FUND
or more after entering into these transactions and as a result the market
values of the securities may vary from the purchase or sale prices.
Therefore, forward commitment transactions may increase the Fund's overall
interest rate exposure.
K. FUTURES CONTRACTS -- The Fund may enter into futures contracts to manage
exposure to interest rate, equity and market price movements and/or
currency risks. A futures contract is an agreement between two parties to
purchase or sell a specified underlying security, currency or commodity
(or delivery of a cash settlement price, in the case of an index future)
for a fixed price at a future date. The Fund currently invests only in
exchange-traded futures and they are standardized as to maturity date and
underlying financial instrument. Initial margin deposits required upon
entering into futures contracts are satisfied by the segregation of
specific securities or cash as collateral at the futures commission
merchant (broker). During the period the futures contracts are open,
changes in the value of the contracts are recognized as unrealized gains
or losses by recalculating the value of the contracts on a daily basis.
Subsequent or variation margin payments are received or made depending
upon whether unrealized gains or losses are incurred. These amounts are
reflected as receivables or payables on the Statement of Assets and
Liabilities. When the contracts are closed or expire, the Fund recognizes
a realized gain or loss equal to the difference between the proceeds from,
or cost of, the closing transaction and the Fund's basis in the contract.
The net realized gain (loss) and the change in unrealized gain (loss) on
futures contracts held during the period is included on the Statement of
Operations. The primary risks associated with futures contracts are market
risk and the absence of a liquid secondary market. If the Fund were unable
to liquidate a futures contract and/or enter into an offsetting closing
transaction, the Fund would continue to be subject to market risk with
respect to the value of the contracts and continue to be required to
maintain the margin deposits on the futures contracts. Futures contracts
have minimal counterparty risk since the exchange's clearinghouse, as
counterparty to all exchange traded futures, guarantees the futures
against default. Risks may exceed amounts recognized in the Statement of
Assets and Liabilities.
L. COLLATERAL -- To the extent the Fund has pledged or segregated a security
as collateral and that security is subsequently sold, it is the Fund's
practice to replace such collateral no later than the next business day.
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 0.45%
- -------------------------------------------------------------------
Next $500 million 0.425%
- -------------------------------------------------------------------
Next $1.5 billion 0.40%
- -------------------------------------------------------------------
Next $2.5 billion 0.375%
- -------------------------------------------------------------------
Over $5 billion 0.35%
___________________________________________________________________
===================================================================
</Table>
Under the terms of a master sub-advisory agreement approved by shareholders of
the Fund between 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).
The Advisor has contractually 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 R,
Class Y and Institutional Class shares to 0.90%, 1.65%, 1.65%, 1.15%, 0.65% and
0.65% of average daily net assets, respectively, through at least June 30, 2010.
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 or non-routine 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. Those credits are used to pay certain expenses
incurred by the Fund.
Further, the Advisor has contractually agreed, through at least June 30, 2010,
to waive the advisory fee payable by the Fund in an amount equal to 100% of the
net advisory fees the Advisor receives from the affiliated money market funds on
investments by the Fund of uninvested cash in such affiliated money market
funds.
For the period June 3, 2009 (commencement date) to August 31, 2009, the
Advisor waived advisory fees and reimbursed Fund level expenses of $94,496 and
reimbursed class level expenses of $397, $22, $22, $16, $19 and $24 for Class A,
Class B, Class C, Class R, Class Y and Institutional Class shares in proportion
to the relative net assets of such classes.
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 period June 3, 2009 (commencement date) to August 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 period
June 3, 2009 (commencement date) to August 31, 2009, expenses incurred under the
agreement are shown in the Statement of Operations as transfer agent fees.
18 AIM CORE PLUS BOND FUND
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 R, 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, Class C and Class R 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, 1.00% of
the average daily net assets of Class B and Class C shares and 0.50% of the
average daily net assets of Class R 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 period June 3, 2009 (commencement date) to August 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 period June 3, 2009 (commencement
date) to August 31, 2009, IADI advised the Fund that IADI retained $145 in
front-end sales commissions from the sale of Class A shares and $0 from Class A,
Class B, Class C and Class R 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--ADDITIONAL VALUATION INFORMATION
Generally Accepted Accounting Principles (GAAP) 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 under
current market conditions. GAAP 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.
The following is a summary of the tiered valuation input levels, as of the end
of the reporting period, August 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>
LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
- -------------------------------------------------------------------------------------------------------------------------
Equity Securities $1,198,364 $ -- $-- $1,198,364
- -------------------------------------------------------------------------------------------------------------------------
U.S. Treasury Debt Securities -- 723,988 -- 723,988
- -------------------------------------------------------------------------------------------------------------------------
U.S. Government Sponsored Mortgage-Backed Debt
Securities -- 1,279,728 -- 1,279,728
- -------------------------------------------------------------------------------------------------------------------------
Corporate Debt Securities -- 1,301,148 -- 1,301,148
- -------------------------------------------------------------------------------------------------------------------------
Asset-Backed Securities -- 347,025 -- 347,025
=========================================================================================================================
$4,850,253
=========================================================================================================================
Other Investments* (10,331) -- -- (10,331)
=========================================================================================================================
Total Investments $1,188,033 $3,651,889 $-- $4,839,922
_________________________________________________________________________________________________________________________
=========================================================================================================================
</Table>
* Other Investments include futures which are included at unrealized
appreciation/(depreciation).
NOTE 4--DERIVATIVE INVESTMENTS
Effective June 3, 2009 (commencement date), the Fund has adopted the provisions
of FASB Statement No. 161, Disclosures about Derivative Instruments and Hedging
Activities. The standard is intended to improve financial reporting about
derivative instruments and hedging activities by requiring enhanced disclosures
to enable investors to better understand their effects on an entity's financial
position and financial performance. The adoption of this provision has no impact
on the results of operations reported in the financial statements.
19 AIM CORE PLUS BOND FUND
VALUE OF DERIVATIVE INSTRUMENTS AT PERIOD-END
The Table below summarizes the value of the Fund's derivative instruments,
detailed by primary risk exposure, held as of August 31, 2009:
<Table>
<Caption>
VALUE
------------------------
RISK EXPOSURE/ DERIVATIVE TYPE ASSETS LIABILITIES
- ------------------------------------------------------------------------------------------------------
Interest rate risk
Futures contracts(a) $230,500 $(476,578)
______________________________________________________________________________________________________
======================================================================================================
</Table>
(a) Includes cumulative appreciation (depreciation) of futures contracts. Only
current day's variation margin receivable (payable) is reported within the
Statement of Assets & Liabilities.
EFFECT OF DERIVATIVE INSTRUMENTS FOR THE PERIOD JUNE 3, 2009 (COMMENCEMENT DATE)
TO AUGUST 31, 2009
The table below summarizes the gains (losses) on derivative instruments,
detailed by primary risk exposure, recognized in earnings during the period:
<Table>
<Caption>
LOCATION OF GAIN (LOSS) ON
STATEMENT OF OPERATIONS
FUTURES*
- ------------------------------------------------------------------------------------------------------
Realized Gain (Loss)
Interest rate risk $(16,957)
======================================================================================================
Change in Unrealized Appreciation (Depreciation)
Interest rate risk (10,331)
======================================================================================================
Total $(27,288)
______________________________________________________________________________________________________
======================================================================================================
</Table>
* The average value of outstanding futures contracts during the period was
$(202,654).
<Table>
<Caption>
UNREALIZED
NUMBER OF MONTH/ APPRECIATION
CONTRACT CONTRACTS COMMITMENT VALUE (DEPRECIATION)
- --------------------------------------------------------------------------------------------------------------------------
U.S. Treasury 5 Year Notes 2 December-2009/Long $ 230,500 $ 925
==========================================================================================================================
U.S. Treasury 10 Year Notes 3 September-2009/Short (355,641) (6,850)
- --------------------------------------------------------------------------------------------------------------------------
U.S. Long Bonds 1 September-2009/Short (120,937) (4,406)
==========================================================================================================================
(476,578) (11,256)
==========================================================================================================================
Total $(246,078) $(10,331)
__________________________________________________________________________________________________________________________
==========================================================================================================================
</Table>
NOTE 5--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 period June 3, 2009 (commencement date) to August 31, 2009, the
Fund paid legal fees of $89 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 6--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 State Street Bank and Trust Company, 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.
20 AIM CORE PLUS BOND FUND
NOTE 7--DISTRIBUTIONS TO SHAREHOLDERS AND TAX COMPONENTS OF NET ASSETS
TAX CHARACTER OF DISTRIBUTIONS TO SHAREHOLDERS PAID DURING THE PERIOD JUNE 3,
2009 (COMMENCEMENT DATE) TO AUGUST 31, 2009:
<Table>
<Caption>
2009
- ---------------------------------------------------------------------------------------------
Ordinary income $21,570
_____________________________________________________________________________________________
=============================================================================================
</Table>
TAX COMPONENTS OF NET ASSETS AT PERIOD-END:
<Table>
<Caption>
2009
- -----------------------------------------------------------------------------------------------
Undistributed ordinary income $ 42,859
- -----------------------------------------------------------------------------------------------
Net unrealized appreciation -- investments 89,775
- -----------------------------------------------------------------------------------------------
Capital loss carryforward (2,360)
- -----------------------------------------------------------------------------------------------
Shares of beneficial interest 3,513,804
===============================================================================================
Total net assets $3,644,078
_______________________________________________________________________________________________
===============================================================================================
</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 futures
contracts and dollar roll transactions.
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 August 31, 2009 which expires
as follows:
<Table>
<Caption>
CAPITAL LOSS
EXPIRATION CARRYFORWARD*
- -----------------------------------------------------------------------------------------------
August 31, 2017 $2,360
_______________________________________________________________________________________________
===============================================================================================
</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 8--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 period June 3, 2009 (commencement date) to August 31, 2009
was $3,226,711 and $675,157, 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 $92,286
- ---------------------------------------------------------------------------------------------
Aggregate unrealized (depreciation) of investment securities (2,511)
=============================================================================================
Net unrealized appreciation of investment securities $89,775
_____________________________________________________________________________________________
=============================================================================================
Cost of investments for tax purposes is $4,760,478.
</Table>
NOTE 9--RECLASSIFICATION OF PERMANENT DIFFERENCES
Primarily as a result of differing book/tax treatment of stock issuance cost,
dollar rolls and paydowns, on August 31, 2009, undistributed net investment
income was increased by $37,540, undistributed net realized gain was increased
by $245 and shares of beneficial interest decreased by $37,785. This
reclassification had no effect on the net assets of the Fund.
21 AIM CORE PLUS BOND FUND
NOTE 10--SHARE INFORMATION
<Table>
<Caption>
SUMMARY OF SHARE ACTIVITY
- ---------------------------------------------------------------------------------------------------------
JUNE 3, 2009
(COMMENCEMENT DATE) TO
AUGUST 31, 2009
--------------------------------
SHARES AMOUNT
- ---------------------------------------------------------------------------------------------------------
Sold:
Class A 278,669 $2,792,778
- ---------------------------------------------------------------------------------------------------------
Class B 19,908 200,294
- ---------------------------------------------------------------------------------------------------------
Class C 21,543 216,941
- ---------------------------------------------------------------------------------------------------------
Class R 10,188 101,926
- ---------------------------------------------------------------------------------------------------------
Class Y 12,115 120,905
- ---------------------------------------------------------------------------------------------------------
Institutional Class 10,001 100,010
=========================================================================================================
Issued as reinvestment of dividends:
Class A 1,708 17,512
- ---------------------------------------------------------------------------------------------------------
Class B 75 774
- ---------------------------------------------------------------------------------------------------------
Class C 91 933
- ---------------------------------------------------------------------------------------------------------
Class R 60 616
- ---------------------------------------------------------------------------------------------------------
Class Y 86 885
- ---------------------------------------------------------------------------------------------------------
Institutional Class 72 736
=========================================================================================================
Automatic conversion of Class B shares to Class A shares:
Class A 10 104
- ---------------------------------------------------------------------------------------------------------
Class B (10) (104)
=========================================================================================================
Reacquired:
Class A (273) (2,716)
- ---------------------------------------------------------------------------------------------------------
Class B - -
- ---------------------------------------------------------------------------------------------------------
Class C (1) (5)
- ---------------------------------------------------------------------------------------------------------
Class R - -
- ---------------------------------------------------------------------------------------------------------
Class Y - -
- ---------------------------------------------------------------------------------------------------------
Institutional Class - -
=========================================================================================================
Net increase in share activity 354,242 $3,551,589
_________________________________________________________________________________________________________
=========================================================================================================
</Table>
22 AIM CORE PLUS BOND FUND
NOTE 11--FINANCIAL HIGHLIGHTS
The following schedule presents financial highlights for a share of the Fund
outstanding for the period.
<Table>
<Caption>
NET GAINS
NET ASSET ON SECURITIES DIVIDENDS
VALUE, NET (BOTH TOTAL FROM FROM NET NET ASSET
BEGINNING INVESTMENT REALIZED AND INVESTMENT INVESTMENT VALUE, END TOTAL
OF PERIOD INCOME(a) UNREALIZED) OPERATIONS INCOME OF PERIOD RETURN(b)
- -------------------------------------------------------------------------------------------------------------------------------
CLASS A
Three months ended 08/31/09(d) $10.00 $0.09 $0.27 $0.36 $(0.07) $10.29 3.58%
- -------------------------------------------------------------------------------------------------------------------------------
CLASS B
Three months ended 08/31/09(d) 10.00 0.07 0.27 0.34 (0.05) 10.29 3.39
- -------------------------------------------------------------------------------------------------------------------------------
CLASS C
Three months ended 08/31/09(d) 10.00 0.07 0.27 0.34 (0.05) 10.29 3.39
- -------------------------------------------------------------------------------------------------------------------------------
CLASS R
Three months ended 08/31/09(d) 10.00 0.08 0.27 0.35 (0.06) 10.29 3.51
- -------------------------------------------------------------------------------------------------------------------------------
CLASS Y
Three months ended 08/31/09(d) 10.00 0.09 0.27 0.36 (0.07) 10.29 3.64
- -------------------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL CLASS
Three months ended 08/31/09(d) 10.00 0.09 0.27 0.36 (0.07) 10.29 3.64
_______________________________________________________________________________________________________________________________
===============================================================================================================================
<Caption>
RATIO OF RATIO OF
EXPENSES EXPENSES
TO AVERAGE TO AVERAGE NET RATIO OF NET
NET ASSETS ASSETS WITHOUT INVESTMENT
NET ASSETS, WITH FEE WAIVERS FEE WAIVERS INCOME
END OF PERIOD AND/OR EXPENSES AND/OR EXPENSES TO AVERAGE PORTFOLIO
(000S OMITTED) ABSORBED ABSORBED NET ASSETS TURNOVER(c)
- -------------------------------------------------------------------------------------------------------------------------
CLASS A
Three months ended 08/31/09(d) $2,882 0.84%(e) 12.89%(e) 3.47%(e) 140%
- -------------------------------------------------------------------------------------------------------------------------
CLASS B
Three months ended 08/31/09(d) 205 1.59(e) 13.64(e) 2.72(e) 140
- -------------------------------------------------------------------------------------------------------------------------
CLASS C
Three months ended 08/31/09(d) 223 1.59(e) 13.64(e) 2.72(e) 140
- -------------------------------------------------------------------------------------------------------------------------
CLASS R
Three months ended 08/31/09(d) 105 1.09(e) 13.14(e) 3.22(e) 140
- -------------------------------------------------------------------------------------------------------------------------
CLASS Y
Three months ended 08/31/09(d) 126 0.59(e) 12.64(e) 3.72(e) 140
- -------------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL CLASS
Three months ended 08/31/09(d) 104 0.59(e) 12.68(e) 3.72(e) 140
_________________________________________________________________________________________________________________________
=========================================================================================================================
</Table>
(a) Calculated using average shares outstanding.
(b) 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, if applicable and is not
annualized for periods less than one year.
(c) Portfolio turnover is calculated at the fund level and is not annualized
for periods less than one year, if applicable.
(d) Commencement date of June 3, 2009.
(e) Ratios are annualized and based on average daily net assets (000's omitted)
of $2,582, $146, $146, $101, $121 and $101 for Class A, Class B, Class C,
Class R, Class Y and Institutional Class shares, respectively.
23 AIM CORE PLUS BOND FUND
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Trustees of AIM Counselor Series Trust
and Shareholders of AIM Core Plus Bond 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 Core Plus Bond Fund (one of the
funds constituting AIM Counselor Series Trust, hereafter referred to as the
"Fund") at August 31, 2009, the results of its operations, the changes in its
net assets and the financial highlights for the period June 3, 2009
(commencement date) through August 31, 2009, 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 audit. We
conducted our audit 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
audit, which included confirmation of securities at August 31, 2009 by
correspondence with the custodian and brokers, provides a reasonable basis for
our opinion.
PRICEWATERHOUSECOOPERS LLP
October 16, 2009
Houston, Texas
24 AIM CORE PLUS BOND 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. The
actual ending account value and expenses of Class A, Class B, Class C, Class R
and Class Y shares in the below example are based on an investment of $1,000
invested on June 3, 2009 (commencement date) and held through August 31, 2009.
The hypothetical ending account value and expenses in the below example are
based on an investment of $1,000 invested at the beginning of the period and
held for the entire period March 1, 2009 through August 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, June 3, 2009 (commencement
date) through August 31, 2009. Because the actual ending account value and
expense information in the example is not based upon a six month period, 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 (03/01/09) (08/31/09)(1) PERIOD(2) (08/31/09) PERIOD(3) RATIO
- ---------------------------------------------------------------------------------------------------
A $1,000.00 $1,035.80 $2.11 $1,020.97 $4.28 0.84%
- ---------------------------------------------------------------------------------------------------
B 1,000.00 1,033.90 3.99 1,017.19 8.08 1.59
- ---------------------------------------------------------------------------------------------------
C 1,000.00 1,033.90 3.99 1,017.19 8.08 1.59
- ---------------------------------------------------------------------------------------------------
R 1,000.00 1,035.10 2.73 1,019.71 5.55 1.09
- ---------------------------------------------------------------------------------------------------
Y 1,000.00 1,036.40 1.48 1,022.23 3.01 0.59
- ---------------------------------------------------------------------------------------------------
</Table>
(1) The actual ending account value is based on the actual total return of the
Fund for the period June 3, 2009 (commencement date) through August 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 90
(June 3, 2009 (commencement date) through August 31, 2009)/365. Because
Class A, Class B, Class C, Class R and 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
184/365 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 A, Class B, Class C, Class R and Class Y shares of the Fund and other
funds because such data is based on a full six month period.
25 AIM CORE PLUS BOND FUND
Supplement to Annual Report dated 8/31/09
AIM CORE PLUS BOND FUND
<Table>
INSTITUTIONAL CLASS SHARES ------------------------------------------ Please note that past performance is
AVERAGE CUMULATIVE TOTAL RETURNS not indicative of future results. More
The following information has been For periods ended 8/31/09 recent returns may be more or less than
prepared to provide Institutional Class those shown. All returns assume
shareholders with a performance overview Inception (6/3/09) 3.64% reinvestment of distributions at NAV.
specific to their holdings. Institutional ------------------------------------------ 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 AVERAGE CUMULATIVE TOTAL RETURNS original cost. See full report for
criteria. information on comparative benchmarks.
For periods ended 6/30/09, the most recent Please consult your Fund prospectus for
calendar quarter-end more information. For the most current
month-end performance, please call
Inception (6/3/09) 0.10% 800 451 4246 or visit invescoaim.com.
------------------------------------------
(1) Total annual operating expenses less
Institutional Class shares have no sales any contractual fee waivers and/or
charge; therefore, performance is at net expense reimbursements by the advisor
asset value (NAV). Performance of in effect through at least June 30,
Institutional Class shares will differ 2010. See current prospectus for more
from performance of other share classes information.
primarily due to differing sales charges
and class expenses.
The net 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 0.65%.(1) 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 2.30%. 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.
Had the advisor not waived fees and/or
reimbursed expenses, performance would
have been lower.
- ------------------------------------------
NASDAQ SYMBOL CPIIX
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 -- NOT FOR USE WITH THE PUBLIC THIS MATERIAL IS FOR
INSTITUTIONAL INVESTOR USE ONLY AND MAY NOT BE QUOTED, REPRODUCED, SHOWN TO THE PUBLIC [INVESCO AIM LOGO]
OR USED IN WRITTEN FORM AS SALES LITERATURE FOR PUBLIC USE. - service mark -
invescoaim.com CPB-INS-1 Invesco Aim Distributors, Inc.
</Table>
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. The
actual ending account value and expenses of Institutional Class shares in the
below example are based on an investment of $1,000 invested on June 3, 2009
(commencement date) and held through August 31, 2009. The hypothetical ending
account value and expenses in the below example are based on an investment of
$1,000 invested at the beginning of the period and held for the entire period
March 1, 2009 through August 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, June 3, 2009 (commencement
date) through August 31, 2009. Because the actual ending account value and
expense information in the example is not based upon a six month period, 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. 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 (03/01/09) (08/31/09)(1) PERIOD(2) (08/31/09) PERIOD(3) RATIO
- -----------------------------------------------------------------------------------------------------------
Institutional $1,000.00 $1,036.40 $1.48 $1,022.23 $3.01 0.59%
- -----------------------------------------------------------------------------------------------------------
</Table>
(1) The actual ending account value is based on the actual total return of the
Fund for the period June 3, 2009 (commencement date) through August 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 90
(June 3, 2009 (commencement date) through August 31, 2009)/365. Because
Institutional Class 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
184/365 to reflect a one-half year period. The hypothetical ending account
value and expenses may be used to compare ongoing costs of investing in
Institutional Class shares of the Fund and other funds because such data is
based on a full six month period.
AIM CORE PLUS BOND FUND
<Table>
- ------------------------------------------------------------------------------------------------------------------------------------
INITIAL APPROVAL OF INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS
The Board of Trustees (the Board) of AIM considered the factors discussed below in are appropriate. The Board noted that the
Counselor Series Trust is required under evaluating the fairness and reasonableness Affiliated Sub-Advisers, which have
the Investment Company Act of 1940 to of the Fund's investment advisory offices and personnel that are
approve the AIM Core Plus Bond Fund (the agreement and sub-advisory contracts. The geographically dispersed in financial
Fund) investment advisory agreement with discussion serves as a summary of the centers around the world, have been formed
Invesco Aim Advisors, Inc. (Invesco Aim) discussion of the material factors and in part for the purpose of researching and
and the Master Intergroup Sub-Advisory related conclusions that formed the basis compiling information and making
Contract for Mutual Funds (the for the Board's approval of the Fund's recommendations on the markets and
sub-advisory contracts) with Invesco Asset investment advisory agreement and economies of various countries and
Management Deutschland GmbH, Invesco Asset sub-advisory contracts. The Board securities of companies located in such
Management Limited, Invesco Asset considered all of the information provided countries or on various types of
Management (Japan) Limited, Invesco to them and did not identify any investments and investment techniques, and
Australia Limited, Invesco Global Asset particular factor that was controlling. providing investment advisory services.
Management (N.A.), Inc., Invesco Hong Kong Each Trustee may have evaluated the The Board noted that investment decisions
Limited, Invesco Institutional (N.A.), information provided differently from for the Fund will be made by IINA. The
Inc. (IINA), Invesco Senior Secured another Trustee and attributed different Board concluded that the sub-advisory
Management, Inc. and Invesco Trimark Ltd. weight to the various factors. contracts will benefit the Fund and its
(collectively, the Affiliated shareholders by permitting Invesco Aim to
Sub-Advisers). During meetings held on FACTORS AND CONCLUSIONS AND SUMMARY OF utilize the additional resources and
April 28-29, 2009, the Board as a whole EVALUATION OF INVESTMENT ADVISORY talent of the Affiliated Sub-Advisers in
and the disinterested or "independent" AGREEMENT AND SUB-ADVISORY CONTRACTS managing the Fund.
Trustees, voting separately, approved an
amendment to the Fund's investment A. Nature, Extent and Quality of C. Fund Performance
advisory agreement and an amendment to the Services Provided by Invesco Aim
sub-advisory contracts to add the Fund. In The Board did not consider the performance
doing so, the Board determined that the The Board reviewed the advisory services of the Fund because the Fund is new and
Fund's investment advisory agreement and to be provided to the Fund by Invesco Aim has no performance history.
the sub-advisory contracts are in the best under the Fund's investment advisory
interests of the Fund and its shareholders agreement and the credentials and D. Advisory and Sub-Advisory Fees and
and that the compensation to Invesco Aim experience of the officers and employees Fee Waivers
and the Affiliated Sub-Advisers under the of Invesco Aim who will provide these
Fund's investment advisory agreement and services. The Board's review of the The Board considered the contractual
sub-advisory contracts is fair and qualifications of Invesco Aim to provide advisory fee rate and the proposed fee
reasonable. these services included the Board's waivers and expense limitations that will
consideration of Invesco Aim's portfolio be in place for the fund through June 30,
THE BOARD'S EVALUATION PROCESS and product review process, various back 2010. The Board also considered the
office support functions provided by services to be provided by the Affiliated
The Board's Investments Committee has Invesco Aim and its affiliates, and Sub-Advisers pursuant to the sub-advisory
established three Sub-Committees that are Invesco Aim's global trading operations. contracts and the services to be provided
responsible for overseeing the management The Board concluded that the nature, by Invesco Aim pursuant to the Fund's
of a number of the series portfolios of extent and quality of the advisory investment advisory agreement, as well as
the AIM Funds. The Fund will be assigned services to be provided to the Fund by the allocation of fees between Invesco Aim
to one of the Sub-Committees. This Invesco Aim are appropriate. and the Affiliated Sub-Advisers pursuant
Sub-Committee structure permits the to the sub-advisory contracts. The Board
Trustees to focus on the performance of In determining whether to approve the noted that the sub-advisory fees have no
the AIM Funds that have been assigned to Fund's investment advisory agreement, the direct effect on the Fund or its
them. The Sub-Committees meet throughout Board considered the prior relationship shareholders, as they are paid by Invesco
the year to review the performance of between Invesco Aim and the AIM Funds, as Aim to the Affiliated Sub-Advisers, and
their assigned funds, and the well as the Board's knowledge of Invesco that Invesco Aim and the Affiliated
Sub-Committees review monthly and Aim's operations, and concluded that it Sub-Advisers are affiliates.
quarterly comparative performance was beneficial to maintain the
information and periodic asset flow data relationship for the Fund, in part, After taking account of the Fund's
for their assigned funds. Over the course because of such knowledge. contractual advisory fee rate, the
of each year, the Sub-Committees meet with contractual sub-advisory fee rate, the
portfolio managers for their assigned B. Nature, Extent and Quality of underlying funds fees and expenses and
funds and other members of management and Services Provided by Affiliated other relevant factors, the Board
review with these individuals the Sub-Advisors concluded that the Fund's advisory and
performance, investment objective(s), sub-advisory fees were fair and
policies, strategies and limitations of The Board reviewed the services to be reasonable.
these funds. provided by the Affiliated Sub-Advisers
under the sub-advisory contracts and the E. Economies of Scale and Breakpoints
In determining to approve the Fund's credentials and experience of the officers
investment advisory agreement and and employees of the Affiliated The Board considered the extent to which
sub-advisory contracts, the Board Sub-Advisers who will provide these there are economies of scale in Invesco
services. The Board concluded that the Aim's provision of advisory services to
nature, extent and quality of the services the Fund. The Board also considered
to be provided by the Affiliated whether the Fund benefits from such
Sub-Advisers economies of scale through contractual
breakpoints in the Fund's advisory fee
schedule. The
26 AIM CORE PLUS BOND FUND continued
</Table>
<Table>
Board noted that the Fund's contractual other AIM Funds and the organizational
advisory fee schedule provides for structure employed by Invesco Aim and its
breakpoints, but that the Fund is being affiliates to provide these services. The
newly launched and has not reached a size Board also considered that these services
for the breakpoints to have any effect. will be provided to the Fund pursuant to
The Board noted that the Fund shares written contracts that are reviewed and
directly in economies of scale through approved on an annual basis by the Board.
lower fees charged by third party service The Board concluded that Invesco Aim and
providers based on the combined size of its affiliates were providing these
all of the AIM Funds and affiliates. services in a satisfactory manner and in
accordance with the terms of their
F. Profitability and Financial contracts, and were qualified to provide
Resources these services to the Fund.
The Board reviewed information from The Board considered the benefits
Invesco Aim concerning the costs of the realized by Invesco Aim and the Affiliated
advisory and other services that Invesco Sub-Advisers as a result of portfolio
Aim and its affiliates provide to the Fund brokerage transactions executed through
and the profitability of Invesco Aim and "soft dollar" arrangements. The Board
its affiliates in providing these noted that soft dollar arrangements shift
services. The Board also reviewed the payment obligation for research and
information concerning the financial execution services from Invesco Aim and
condition of Invesco Aim and its the Affiliated Sub-Advisers to the funds
affiliates. The Board considered the and therefore may reduce Invesco Aim's and
overall profitability of Invesco Aim, as the Affiliated Sub-Advisers' expenses. The
well as the profitability of Invesco Aim Board concluded that Invesco Aim's and the
in connection with managing the Fund. The Affiliated Sub-Advisers' soft dollar
Board noted that Invesco Aim continues to arrangements are appropriate. The Board
operate at a net profit, although recent also concluded that, based on their review
economic factors have reduced the and representations made by the Chief
profitability of Invesco Aim and its Compliance Officer of Invesco Aim, these
affiliates. The Board concluded that the arrangements are consistent with
Fund's fees were fair and reasonable, and regulatory requirements.
that the level of profits realized by
Invesco Aim and its affiliates from The Board considered the fact that the
providing services to the Fund are not Fund's uninvested cash and cash collateral
anticipated to be excessive in light of from any securities lending arrangements
the nature, quality and extent of the may be invested in money market funds
services provided. The Board considered advised by Invesco Aim pursuant to
whether Invesco Aim is financially sound procedures approved by the Board. The
and has the resources necessary to perform Board noted that Invesco Aim will receive
its obligations under the Fund's advisory fees from these affiliated money
investment advisory agreement, and market funds attributable to such
concluded that Invesco Aim has the investments, although Invesco Aim has
financial resources necessary to fulfill contractually agreed to waive through at
these obligations. The Board also least June 30, 2010, the advisory fees
considered whether each Affiliated payable by the Fund in an amount equal to
Sub-Adviser is financially sound and has 100% of the net advisory fee Invesco Aim
the resources necessary to perform its receives from the affiliated money market
obligations under its respective funds with respect to the Fund's
sub-advisory contract, and concluded that investment in the affiliated money market
each Affiliated Sub-Adviser has the funds of uninvested cash, but not cash
financial resources necessary to fulfill collateral. The Board concluded that the
these obligations. Fund's investment of uninvested cash and
cash collateral from any securities
G. Collateral Benefits to Invesco Aim lending arrangements in the affiliated
and its Affiliates money market funds is in the best
interests of the Fund and its
The Board considered various other shareholders.
benefits received by Invesco Aim and its
affiliates resulting from Invesco Aim's
relationship with the Fund, including the
fees received by Invesco Aim and its
affiliates for their provision of
administrative, transfer agency and
distribution services to the Fund. The
Board considered the performance of
Invesco Aim and its affiliates in
providing these services to
27 AIM CORE PLUS BOND FUND
</Table>
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 period June 3, 2009 (commencement
date) through August 31, 2009:
<Table>
<Caption>
FEDERAL AND STATE INCOME TAX
----------------------------
Qualified Dividend Income* 0.00%
Corporate Dividends Received Deduction* 0.00%
U.S. Treasury Obligations* 6.39%
</Table>
* The above percentages are based on ordinary income dividends paid to
shareholders during the period.
28 AIM CORE PLUS BOND FUND
TRUSTEES AND OFFICERS
The address of each trustee and officer of AIM Counselor Series Trust (the
"Trust"), is 11 Greenway Plaza, Suite 100, Houston, Texas 77046-1173. Each
trustee oversees 105 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. Flanagan(1) -- 1960 2007 Executive Director, Chief Executive Officer and President, None
Trustee Invesco Ltd. (ultimate parent of Invesco Aim and a global
investment management firm); Chairman, Invesco Aim Advisors,
Inc. (registered investment advisor); Trustee, The AIM
Family of Funds(R); 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); Director, Invesco Ltd. and Chairman, Investment
Company Institute
- ------------------------------------------------------------------------------------------------------------------------------------
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 Executive Officer President, 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 registered transfer agent) and AIM GP
Canada Inc. (general partner for limited partnerships);
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
(registered investment advisor and registered transfer
agent) and Invesco Trimark Dealer Inc. (registered broker
dealer); Trustee, President and Principal Executive Officer,
The AIM Family of Funds(R) (other than AIM Treasurer's
Series Trust and Short-Term Investments Trust); Trustee and
Executive Vice President, The AIM Family of Funds(R) (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; Senior Managing Director,
Invesco Holding Company Limited; Trustee and Executive Vice
President, Tax-Free Investments Trust; Director and
Chairman, Fund Management Company (former registered broker
dealer); President and Principal Executive Officer, The AIM
Family of Funds(R) (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.
- ------------------------------------------------------------------------------------------------------------------------------------
INDEPENDENT TRUSTEES
- ------------------------------------------------------------------------------------------------------------------------------------
Bruce L. Crockett -- 1944 2003 Chairman, Crockett Technology Associates (technology ACE Limited (insurance
Trustee and Chair consulting company) company); Captaris, Inc.
(unified messaging
provider); and
Investment Company
Institute
- ------------------------------------------------------------------------------------------------------------------------------------
Bob R. Baker -- 1936 1983 Retired None
Trustee
- ------------------------------------------------------------------------------------------------------------------------------------
Frank S. Bayley -- 1939 2003 Retired None
Trustee
Formerly: Director, Badgley Funds, Inc.
(registered investment company) (2 portfolios)
- ------------------------------------------------------------------------------------------------------------------------------------
James T. Bunch -- 1942 2000 Founder, Green, Manning & Bunch Ltd., (investment banking Board of Governors,
Trustee firm) Western Golf
Association/Evans
Scholars Foundation and
Executive Committee,
United States Golf
Association
- ------------------------------------------------------------------------------------------------------------------------------------
Albert R. Dowden -- 1941 2003 Director of a number of public and private business Board of Nature's
Trustee corporations, including the Boss Group Ltd. (private Sunshine Products, Inc.
investment and management); Continental Energy Services, LLC
(oil and gas pipeline service); Reich & Tang Funds
(registered investment 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.; Director, Annuity and Life Re
(Holdings), Ltd. (reinsurance company); Senior Vice
President, AB Volvo; Director of various public and private
corporations
- ------------------------------------------------------------------------------------------------------------------------------------
Jack M. Fields -- 1952 2003 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), Discovery Global Education Fund (non-profit)
and Cross Timbers Quail Research Ranch (non-profit)
Formerly: Chief Executive Officer, Texana Timber LP
(sustainable forestry company)
- ------------------------------------------------------------------------------------------------------------------------------------
Carl Frischling -- 1937 2003 Partner, law firm of Kramer Levin Naftalis and Frankel LLP Director, Reich & Tang
Trustee Funds (16 portfolios)
- ------------------------------------------------------------------------------------------------------------------------------------
Prema Mathai-Davis -- 1950 2003 Retired None
Trustee
- ------------------------------------------------------------------------------------------------------------------------------------
Lewis F. Pennock -- 1942 2003 Partner, law firm of Pennock & Cooper None
Trustee
- ------------------------------------------------------------------------------------------------------------------------------------
Larry Soll -- 1942 1997 Retired None
Trustee
- ------------------------------------------------------------------------------------------------------------------------------------
Raymond Stickel, Jr. -- 1944 2005 Retired None
Trustee
Formerly: Director, Mainstay 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.
T-1
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 N/A
Senior Vice President and of Funds(R) Formerly: Director of Compliance and Assistant
Senior Officer 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 N/A
Senior Vice President, Chief Counsel, Invesco Aim Management Group, Inc., Invesco Aim
Legal Officer and Secretary Advisors, Inc. 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(R); 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 and General
Counsel, 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 N/A
Vice President President, The AIM Family of Funds(R)
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(R); 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, N/A
Vice President Invesco Ltd.; Director, 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(R)
Formerly: Senior Managing Director and Secretary, Invesco
North American Holdings, Inc.; Vice President and Secretary,
IVZ, Inc. and Invesco Group Services, 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. and Invesco Aim Investment
Services, Inc.; Senior Vice President, Chief Legal Officer
and Secretary, The AIM Family of Funds(R); Director and Vice
President, INVESCO Distributors, Inc.; and Chief Executive
Officer and President, INVESCO Funds Group, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Sheri Morris -- 1964 2003 Vice President, Treasurer and Principal Financial Officer, N/A
Vice President, Treasurer and The AIM Family of Funds(R); and Vice President, Invesco Aim
Principal Financial Officer Advisors, Inc., Invesco Aim Capital Management, Inc. and
Invesco Aim Private Asset Management Inc.
Formerly: Assistant Vice President and Assistant Treasurer,
The AIM Family of Funds(R) and Assistant Vice President,
Invesco Aim Advisors, Inc., Invesco Aim Capital Management,
Inc. and Invesco Aim Private Asset Management, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Karen Dunn Kelley -- 1960 2003 Head of Invesco's World Wide Fixed Income and Cash N/A
Vice President Management Group; Vice President, Invesco Institutional
(N.A.), Inc. (registered investment advisor); 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, Invesco Institutional (N.A.), Inc.
(registered investment advisor); and Director, Invesco
Mortgage Capital Inc.; Vice President, The AIM Family of
Funds(R) (other than AIM Treasurer's Series Trust and
Short-Term Investments Trust); and President and Principal
Executive Officer, The AIM Family of Funds(R) (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(R) (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 N/A
Anti-Money Laundering Advisors, Inc., Invesco Aim Capital Management, Inc.,
Compliance Officer Invesco Aim Distributors, Inc., Invesco Aim Investment
Services, Inc., Invesco Aim Private Asset Management, Inc.
and The AIM Family of Funds(R)
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.; N/A
Chief Compliance Officer Senior Vice President and Chief Compliance Officer, Invesco
Aim Advisors, Inc. and Invesco Aim Capital Management, Inc.;
Chief Compliance Officer, The AIM Family of Funds(R),
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, Inc. Invesco Aim Distributors, Inc. PricewaterhouseCoopers LLP
Suite 100 11 Greenway Plaza 11 Greenway Plaza 1201 Louisiana Street
Houston, TX 77046-1173 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 Services, Inc. State Street Bank and
Young, LLP Kramer, Levin, Naftalis & Frankel LLP P.O. Box 4739 Trust Company
2600 One Commerce Square 1177 Avenue of the Americas Houston, TX 77210-4739 225 Franklin
Philadelphia, PA 19103 New York, NY 10036-2714 Boston, MA 02110-2801
</Table>
T-2
<Table>
[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 will
trees used to produce paper. 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 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.
- ------------------------------------------------------------------------------------------------------------------------------------
IMPORTANT NOTICE REGARDING DELIVERY OF SECURITY HOLDER DOCUMENTS
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the
same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us
otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please
contact Invesco Aim Investment Services, Inc. at 800 959 4246 or contact your financial institution. We will begin sending you
individual copies for each account within thirty days after receiving your request.
- ------------------------------------------------------------------------------------------------------------------------------------
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 811-09913 and 333-36074.
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, 2009,
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 January 20, 2010, 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,
exchange-traded 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.
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 Aim Private Asset Management, Inc. and Invesco Global Asset [INVESCO AIM LOGO]
Management (N.A.), Inc. will be merged into Invesco Institutional (N.A.), Inc., and the consolidated adviser - SERVICE MARK -
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 CPB-AR-1 Invesco Aim Distributors, Inc.
</Table>
[INVESCO AIM LOGO] ANNUAL REPORT TO SHAREHOLDERS AUGUST 31, 2009
- service mark -
AIM FLOATING RATE FUND
[GRAPHIC]
<Table>
2 Letters to Shareholders
4 Performance Summary
4 Management Discussion
6 Long-Term Fund Performance
8 Supplemental Information
9 Schedule of Investments
26 Financial Statements
29 Notes to Financial Statements
37 Financial Highlights
38 Auditor's Report
39 Fund Expenses
40 Approval of Investment Advisory and Sub-Advisory Agreements
43 Tax Information
T-1 Trustees and Officers
</Table>
<Table>
Dear Shareholders:
While the year covered by this report was difficult -- for long-time investors and veteran
investment professionals alike -- economic conditions and market trends appeared much more
favorable at the close of the fiscal year than at its start.
[TAYLOR
PHOTO] The 12 months ended August 31, 2009, included a sharp market sell-off that occurred in the
second half of 2008. That downturn affected virtually all sectors, markets and investors. The
decline had a number of causes, the most immediate being unprecedented turmoil in credit
markets. Economic uncertainty prompted banks to hoard cash and reduce lending, and caused
investors to shun short-term corporate debt. As a result, businesses found it difficult to fund
Philip Taylor their day-to-day operations, and the U.S. economy -- as well as economies around the globe --
virtually froze briefly.
INCREASED COMMUNICATION
These developments prompted a greater-than-usual number of shareholders to contact me. Some of
you took the time to write a letter while others of you emailed me at phil@invescoaim.com.
Many of you sought explanations for the decline in the value of your accounts, while others asked more general questions about
when the economy might improve. Your questions, comments and suggestions gave me better insight into what was on your minds, and I
was pleased that so many of you took the time to share your thoughts with me.
As a result, Invesco Aim's investment professionals and I have increased our efforts to stay in touch with and share our views
with you. We increased the number of "Investment Perspectives" articles on our website, invescoaim.com. Through these articles,
we've tried to provide timely market commentary, general investor education information and sector updates. I hope you'll take a
moment to read them and let me know if you find them useful.
To access your Fund's latest quarterly commentary, click on "Products and Performance" at the top of our website; next, select
"Mutual Funds"; and then click on "Quarterly Commentary."
I also hope you've stayed in touch with your financial advisor. An experienced financial advisor who is familiar with your
individual investment goals, time horizon and risk tolerance can be a source of comfort and information during uncertain times. He
or she can monitor your investments to ensure they're on track and can prevent you from making impulsive short-term decisions that
may have adverse long-term consequences.
REASONS FOR OPTIMISM
The economy and equity markets reacted to a barrage of negative news during the year. Consumer spending -- which accounts for more
than two-thirds(1) of the U.S. economy -- was sluggish as unemployment rose; more workers worried about their job security; home and
portfolio values declined; and credit became more difficult to obtain.
In his semiannual monetary policy report to Congress in late July, U.S. Federal Reserve Board Chairman Ben Bernanke summarized
the stresses and strains the U.S. and global economies suffered in late 2008 and early 2009. Importantly, he suggested that the
aggressive, coordinated actions taken by governments and central banks around the world finally may be yielding results. He
testified that:
o The pace of overall economic decline appears to have slowed significantly.
o Credit availability, for consumers and businesses, has improved noticeably.
o Investors' extreme risk aversion has eased somewhat.
o The decline in housing activity appears to have moderated.
While these and other trends offer encouragement, uncertainties remain. Chairman Bernanke testified that he anticipates a gradual
recovery in 2010 with some acceleration in economic growth in 2011, together with subdued inflation over the next two years. His
considered judgment appears to be shared by investors who have begun to return, cautiously, to the equities market, causing major
U.S. stock-market indexes to bounce off their March lows.
A SINGLE FOCUS
I believe Invesco Aim is uniquely positioned to serve our clients. Our parent company, Invesco Ltd., is one of the largest(2) and
most diversified global asset managers. It provides clients with diversified investment strategies and a range of investment
products managed by distinct management teams around the world. We believe we can serve you best by focusing on one thing and doing
it well: managing your money.
Our investment professionals have managed clients' money in up markets and down markets. All of us here recognize that market
conditions change often; what will not change is our commitment to putting our clients first, helping you achieve your financial
goals and providing excellent customer service.
If you have questions about this report or your account, please contact one of our client services representatives at
800 959 4246. If you have comments for me, I encourage you to email me at phil@invescoaim.com.
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 Reuters; 2 Pensions & Investments
2 AIM FLOATING RATE FUND
</Table>
<Table>
Dear Fellow Shareholders:
Although the economy and financial markets have shown some signs of hope, investors remain
rightfully cautious. Staying with an appropriately diversified investment program focused on
your individual long-term goals can be a wise course in such uncertain times. We believe the
route to financial success is more like a marathon than a sprint.
[CROCKETT
PHOTO] Please be assured that your Board continues to oversee the AIM Funds with a strong sense of
responsibility for your money and your trust. As always, we seek to manage costs and enhance
performance in ways that put your interests first.
Bruce Crockett
We are near the end of a busy 2009 proxy season, during which Invesco Aim Advisors, Inc.'s
proxy committee votes on your behalf on issues put to a shareholder vote by the companies whose
stock the Funds hold. This year, after careful case-by-case analysis by committee members and
portfolio managers, the proxy committee voted with corporate management less often than in previous years, focusing on the issues of
board independence, Say-On-Pay initiatives, and stock option re-pricing in light of the market's decline. The committee remained
committed to supporting non-binding Say-on-Pay proposals and abstaining from voting on social issues.
At its June meeting, your Board reviewed and renewed the investment advisory contracts between the AIM Funds and Invesco Aim
Advisors, Inc. You can find the results of this rigorous annual process at invescoaim.com. Go to "Products & Performance" and click
on "Investment Advisory Agreement Renewals."
The website also contains news and market information, investment education and planning information and current reports and
prospectuses for all the AIM Funds and I highly recommend it to you.
You are always welcome to contact me at bruce@brucecrockett.com with any questions or concerns you may have. We look forward to
representing you and serving you in the coming months.
Sincerely,
/s/ BRUCE L. CROCKETT
Bruce L. Crockett
Independent Chair
AIM Funds Board of Trustees
3 AIM FLOATING RATE FUND
</Table>
<Table>
- ------------------------------------------------------------------------------------------------------------------------------------
MANAGEMENT'S DISCUSSION OF FUND PERFORMANCE
PERFORMANCE SUMMARY the predictability of corporate
earnings and the cash requirement of
For the fiscal year ended August 31, 2009, Class A Shares of AIM Floating Rate Fund, at the business and conduct an examination
net asset value (NAV), underperformed the Fund's broad market and style-specific of the business cycles, seasonality,
indexes. The Fund invests in lower rated fixed-income instruments, primarily senior international pressures and so forth.
secured corporate loans, and this asset class generally underperformed investment-grade
bonds, as represented by the Barclays Capital U.S. Aggregate Index. The Fund also o Recovery and loan-to-value. These
underperformed its style-specific index due to its overweight in lower quality credits, factors focus on further examination of
including second-lien loans. the default probability and the rate of
recovery associated with loans.
Your Fund's long-term performance appears later in this report.
The portfolio is constructed using a
FUND VS. INDEXES conservative bias to help limit credit
risk, while focusing on optimization of
Total returns, 8/31/08 to 8/31/09, at net asset value (NAV). Performance shown does not return relative to appropriate benchmarks.
include applicable contingent deferred sales charges (CDSC) or front-end sales charges, We constantly monitor the holdings in the
which would have reduced performance. portfolio and conduct daily, weekly and
monthly meetings with portfolio managers
Class A Shares -4.97% and analysts, as well as with firms and
Class C Shares -5.61 loan sponsors.
Class R Shares -5.19
Class Y Shares* -4.94 Our proprietary systems generate "alert
Barclays Capital U.S. Aggregate Index(triangle) (Broad Market Index) 7.94 lists" that trigger immediate reviews of
S&P/LSTA Leveraged Loan Index(square) (Style-Specific Index) 2.40 credits when they fall below price
Lipper Loan Participation Funds Category Average(triangle) (Peer Group) -1.54 targets, are rated BB or lower or are
performing off plan. The active sell
(triangle)Lipper Inc.; (square)Standard & Poor's, Invesco Aim discipline considers two key factors for
each portfolio position:
* Share class incepted during the fiscal year. See page 7 for a detailed explanation
of Fund performance. o Company objective. Will unfavorable
industry trends, poor performance or
HOW WE INVEST try, barriers to entry and current lack of access to capital cause the
industry capacity and utilization. company to underperform?
We believe a highly diversified pool of
bank loans from the broadest spectrum of o Asset quality. Considerations may o Investment objective. Has the earnings
issuers and consisting of the highest include valuations of hard and potential or price potential been met
credit quality available in line with intangible assets, how easily those or exceeded, or do better relative
portfolio objectives may provide an assets can be converted to cash and valuation opportunities exist in the
attractive return with limited risk to appropriateness to leverage those market?
principal. assets.
MARKET CONDITIONS AND YOUR FUND
Our credit analysts review all holdings o Divisibility. This factor focuses on
and prospective holdings. operating and corporate structures, Weakness in U.S. housing, manufacturing,
ability to divide easily and retail and finance sectors, as well as the
Key consideration is given to the efficiently, examination of non-core absence of properly functioning credit
following: assets and valuation of multiple brand markets, all contributed to general
names. economic weakness over the past year.
o Management. Factors include direct Gross domestic product (GDP), the broadest
operating experience in managing this o Sponsors. Considerations include the measure of overall U.S. economic activity,
business, management depth and firm's track record of quality reflected a shrinking economy during each
incentives and track record operating transactions, access to additional of the calendar quarters covered by this
in a leveraged environment. capital and control or ownership of the report.(1) Shaken
sponsoring firm.
o Industry position and dynamics. Factors
include the company's industry o Cash flow. We examine the firm's sales
position, life cycle phase of the and earnings breakdown by product,
indus- divisions and subsidiaries. We look at
- ------------------------------------------ ------------------------------------------ ------------------------------------------
PORTFOLIO COMPOSITION+ TOP 10 FIXED INCOME ISSUERS* The Fund's holdings are subject to change,
By credit quality rating based on total and there is no assurance that the Fund
investments 1. First Data 2.7% will continue to hold any particular
2. Texas Competitive Electric 2.4 security.
B 0.5% Holdings Co.
Baa2 0.3 3. Lyondell Basell 2.2 + Source: S&P, Moody's, Fitch. This table
Baa3 1.9 4. Charter Refinance 2.0 is calculated based on the highest
Ba1 6.2 5. Georgia Pacific 2.0 rating assigned by one of these
Ba2 16.6 6. Hexion Specialty Chemicals, Inc. 1.9 agencies to an individual security. A
Ba3 29.5 7. Cequel Communication/Cebridge 1.8 credit rating is an assessment provided
B1 19.1 8. Calpine Corp. 1.7 by a nationally recognized statistical
B2 9.8 9. Dole Foods 1.7 rating organization (NRSRO) of the
B3 1.4 10. Ashland Inc. 1.4 creditworthiness of an issuer with
Caa1 2.0 ----------------------------------------- respect to debt obligations, including
Caa2 1.1 Total Net Assets $381.7 million specific securities, money market
Ca or lower 0.1 Total Number of Holdings* 654 instruments or other debts. Ratings are
NR 3.4 measured on a scale that generally
Equity 1.0 ranges from AAA (highest) to D
Money Market Funds 7.1 (lowest); ratings are subject to change
without notice. NR indicates the debtor
was not rated, and should not be
interpreted as indicating low quality.
* Excluding money market fund holdings.
4 AIM FLOATING RATE FUND
</Table>
<Table>
investor confidence, volatility and During 2008, credit quality positioning TOM EWALD
impaired liquidity characterized credit detracted from the Fund's performance
markets over the period. relative to the benchmark. In addition, Portfolio manager, is
the pace of redemptions resulted in a lead manager of AIM
The U.S. Federal Reserve Board (the slight leveraging of the Fund as we were Floating Rate Fund. Mr.
Fed) moved aggressively throughout the forced to borrow to meet immediate [EWALD Ewald joined Invesco in
Fund's fiscal year to attempt to stimulate liquidity needs while waiting for the sale PHOTO] 2000 as a credit
economic growth and enhance market of loans to close. In 2009, management's analyst and was
liquidity. Between October and December commitment to remaining fully invested, as promoted to portfolio
2008, the federal funds target rate was well as a continued discipline of manager in 2001.
lowered from 2.00% to the current range of investing in loans that we felt offered Prior to joining Invesco, Mr. Ewald was a
zero to 0.25%.(2) In doing so, the Fed the best relative value, contributed portfolio manager at another firm. Mr.
hoped to stimulate an economic recovery by positively to the Fund's relative Ewald earned an A.B. from Harvard College
making money more available to consumers performance. and an M.B.A. from the Darden School of
and businesses. Business at the University of Virginia.
Having said that, there were some areas
For bank loans, the 12 months ended where we made mistakes. While the Fund GREG STOECKLE
August 31, 2009, was a tale of two benefited from its under-exposure to the
markets. The bank loan market suffered auto sector in the second half of 2008, we Portfolio manager, is
significant losses in the second half of failed to take advantage of the low prices manager of AIM Floating
2008 as credit markets remained frozen of these loans in 2009. In addition, our [STOECKLE Rate Fund. Mr. Stoeckle
despite initiatives from the Fed, the U.S. investments in advertising-supported print PHOTO] joined Invesco in 1999
Treasury and governments around the world media companies continued to be and has held several
to make financial markets function more challenging. At the same time, the Fund senior management
normally again. Tremendous pressure on continued to add to some deeply discounted positions within the
bank loan prices continued through the end positions in the chemical, broadcasting bank loan group. He began his investment
of 2008 due to forced selling, hedge fund and travel sectors that have enjoyed career in 1987 as a credit analyst for
redemptions and total return swaps and strong price appreciation of late. another firm. Mr. Stoeckle earned a B.S.
collateral loan obligations unraveling. from Ursinus College and an M.B.A. from
According to Standard and Poor's, the As always, we appreciate your continued Saint Joseph's University.
average secondary bank loan price dropped participation in AIM Floating Rate Fund.
to historical lows in December.(3) New
loan issuance slowed considerably during (1) Bureau of Economic Analysis
2008, coming to a standstill in the fourth
quarter as credit conditions worsened. (2) U.S. Federal Reserve
As 2009 began, economic indicators (3) Standard and Poor's
continued to deteriorate, but there was
some evidence that the pace of the (4) J.P. Morgan
economic downturn was slowing by early
spring. Steadily improving technical The views and opinions expressed in
indicators drove most of the financial management's discussion of Fund
market gains, but heightened investor performance are those of Invesco Aim
confidence in markets and speculation that Advisors, Inc. These views and opinions
the economy may have hit bottom during the are subject to change at any time based on
fourth quarter of 2008 provided further factors such as market and economic
momentum to the rally. Liquidity improved conditions. These views and opinions may
significantly in the later part of the not be relied upon as investment advice or
first quarter of 2009, as asset flows into recommendations, or as an offer for a
high yield bond and loan mutual funds particular security. The information is
remained positive for 14 consecutive not a complete analysis of every aspect of
weeks.(4) any market, country, industry, security or
the Fund. Statements of fact are from
This influx of cash was driven by the sources considered reliable, but Invesco
prevailing view among investors that bank Aim Advisors, Inc. makes no representation
loans were trading well below fair value. or warranty as to their completeness or
In addition, a reduction in bank loan accuracy. Although historical performance
supply was another key contributor to is no guarantee of future results, these
performance within this asset class insights may help you understand our
because the pace of loan prepayments investment management philosophy.
accelerated. The prepayments primarily
came from high yield bond takeouts, which See important Fund and index disclosures
are used to refinance loans, as companies later in this report.
replaced bank loans with high yield bonds.
5 AIM FLOATING RATE FUND
</Table>
YOUR FUND'S LONG-TERM PERFORMANCE
RESULTS OF A $10,000 INVESTMENT -- OLDEST SHARE CLASS WITH SALES CHARGES SINCE
INCEPTION
Index data from 4/30/97, Fund data from 5/1/97
[PERFORMANCE CHART]
<Table>
<Caption>
AIM
FLOATING BARCLAYS LIPPER LOAN
RATE FUND- S&P/LSTA CAPITAL PARTICIPATION
CLASS A LEVERAGED U.S. AGGREGATE FUNDS CATEGORY
SHARES LOAN INDEX(2) INDEX(1) AVERAGE(1)
---------- ------------- -------------- --------------
04/30/97 10000 10000 10000
05/97 9812 10060 10095 10070
06/97 9872 10142 10214 10133
07/97 9935 10195 10490 10198
08/97 10009 10258 10400 10260
09/97 10070 10298 10554 10322
10/97 10143 10333 10707 10392
11/97 10202 10377 10756 10452
12/97 10266 10456 10864 10532
01/98 10330 10524 11004 10597
02/98 10386 10596 10996 10650
03/98 10437 10682 11033 10708
04/98 10495 10759 11091 10769
05/98 10545 10827 11196 10840
06/98 10605 10879 11291 10906
07/98 10672 10891 11315 10969
08/98 10737 10850 11499 11020
09/98 10680 10769 11769 11050
10/98 10699 10844 11706 11103
11/98 10725 10950 11773 11160
12/98 10806 11005 11808 11239
01/99 10878 11043 11892 11308
02/99 10909 11026 11685 11366
03/99 10969 10954 11750 11435
04/99 11018 11022 11787 11507
05/99 11083 11159 11684 11565
06/99 11146 11247 11646 11633
07/99 11215 11317 11597 11698
08/99 11238 11320 11591 11738
09/99 11270 11231 11725 11795
10/99 11315 11248 11769 11845
11/99 11346 11319 11768 11913
12/99 11401 11407 11711 11977
01/00 11474 11505 11673 12052
02/00 11531 11558 11814 12136
03/00 11557 11496 11970 12157
04/00 11605 11533 11935 12217
05/00 11652 11627 11930 12299
06/00 11732 11712 12178 12386
07/00 11781 11806 12289 12473
08/00 11852 11842 12467 12543
09/00 11883 11874 12545 12596
10/00 11903 11871 12628 12614
11/00 11934 11914 12835 12617
12/00 11973 11976 13073 12678
01/01 12000 12105 13286 12756
02/01 12112 12225 13402 12816
03/01 12075 12229 13469 12801
04/01 12031 12211 13414 12750
05/01 12022 12350 13494 12842
06/01 12059 12363 13545 12854
07/01 12045 12458 13848 12921
08/01 12069 12550 14007 12995
09/01 12022 12342 14170 12847
10/01 11834 12221 14467 12718
11/01 11802 12371 14267 12825
12/01 11794 12476 14177 12918
01/02 11904 12539 14291 13007
02/02 11927 12502 14430 12970
03/02 12067 12651 14190 13102
04/02 12166 12798 14465 13204
05/02 12213 12811 14588 13233
06/02 12245 12685 14714 13126
07/02 12151 12571 14891 12943
08/02 12098 12530 15143 12876
09/02 12115 12538 15388 12849
10/02 12005 12390 15318 12712
11/02 12003 12564 15314 12864
12/02 12118 12714 15630 13019
01/03 12220 12869 15644 13130
02/03 12256 12925 15860 13175
03/03 12258 12976 15848 13269
04/03 12404 13129 15979 13488
05/03 12524 13272 16277 13673
06/03 12640 13433 16244 13843
07/03 12715 13523 15698 13920
08/03 12725 13553 15802 13970
09/03 12805 13682 16221 14109
10/03 12858 13807 16069 14242
11/03 12939 13896 16108 14348
12/03 12974 13982 16272 14449
01/04 13090 14103 16403 14607
02/04 13159 14147 16580 14635
03/04 13181 14198 16704 14686
04/04 13260 14267 16270 14755
05/04 13279 14284 16205 14754
06/04 13349 14372 16296 14850
07/04 13396 14419 16458 14904
08/04 13434 14445 16772 14937
09/04 13596 14505 16817 14991
10/04 13668 14578 16958 15070
11/04 13754 14643 16823 15157
12/04 13799 14704 16978 15230
01/05 13861 14764 17084 15286
02/05 13967 14843 16984 15383
03/05 14002 14905 16896 15412
04/05 14006 14894 17125 15398
05/05 13983 14903 17310 15409
06/05 14069 14999 17405 15516
07/05 14173 15113 17246 15636
08/05 14275 15204 17467 15724
09/05 14315 15265 17287 15785
10/05 14361 15312 17151 15810
11/05 14407 15370 17226 15871
12/05 14489 15451 17390 15954
01/06 14573 15558 17391 16070
02/06 14682 15656 17449 16179
03/06 14786 15751 17278 16279
04/06 14876 15828 17246 16373
05/06 14936 15868 17228 16401
06/06 14946 15912 17264 16435
07/06 15032 16002 17498 16525
08/06 15116 16101 17766 16643
09/06 15179 16187 17922 16725
10/06 15298 16295 18040 16849
11/06 15399 16381 18250 16953
12/06 15505 16497 18144 17082
01/07 15629 16641 18136 17236
02/07 15741 16756 18416 17368
03/07 15792 16823 18417 17440
04/07 15877 16923 18516 17547
05/07 15987 17026 18376 17661
06/07 16001 17064 18321 17668
07/07 15419 16492 18474 17034
08/07 15440 16531 18700 17047
09/07 15697 16854 18842 17357
10/07 15847 17015 19012 17495
11/07 15611 16779 19353 17192
12/07 15652 16831 19408 17216
01/08 15051 16288 19734 16652
02/08 14542 15880 19761 16176
03/08 14533 15865 19829 16134
04/08 15048 16452 19787 16732
05/08 15322 16607 19642 16912
06/08 15366 16648 19626 16897
07/08 15205 16521 19610 16724
08/08 15180 16500 19796 16689
09/08 14224 15485 19530 15795
10/08 12079 13438 19069 13673
11/08 11049 12295 19690 12735
12/08 10357 11933 20425 12372
01/09 11188 12817 20245 13208
02/09 11263 12917 20168 13341
03/09 11408 13103 20448 13468
04/09 12328 14242 20546 14428
05/09 13026 15111 20695 15074
06/09 13610 15774 20813 15605
07/09 14119 16521 21149 16195
08/09 14422 16895 21368 16447
</Table>
(1) Lipper Inc.
(2) Invesco Aim, Standard & Poor's
<Table>
Past performance cannot guarantee shown in the chart and table(s) does not one that indicates the dollar value of an
comparable future results. reflect deduction of taxes a shareholder investment, is constructed with each
would pay on Fund distributions or sale of segment representing a percent change in
The data shown in the chart include Fund shares. the value of the investment. In this
reinvested distributions, applicable sales chart, each segment represents a doubling,
charges and Fund expenses including This chart, which is a logarithmic or 100% change, in the value of the
management fees. Index results include chart, presents the fluctuations in the investment. In other words, the space
reinvested dividends, but they do not value of the Fund and its indexes. We between $5,000 and $10,000 is the same
reflect sales charges. Performance of the believe that a logarithmic chart is more size as the space between $10,000 and
peer group reflects fund expenses and effective than other types of charts in $20,000, and so on.
management fees; performance of a market illustrating changes in value during the
index does not. Performance early years shown in the chart. The
vertical axis, the
6 AIM FLOATING RATE FUND
</Table>
<Table>
AVERAGE ANNUAL TOTAL RETURNS AVERAGE ANNUAL TOTAL RETURNS 1.74%, 1.49% AND 0.99%, RESPECTIVELY.(1)
As of 8/31/09, including maximum As of 6/30/09, the most recent calendar THE TOTAL ANNUAL FUND OPERATING EXPENSE
applicable sales charges quarter-end, including maximum applicable RATIO SET FORTH IN THE MOST RECENT FUND
sales charges PROSPECTUS AS OF THE DATE OF THIS REPORT
CLASS A SHARES FOR CLASS A, CLASS C, CLASS R AND CLASS Y
Inception (5/1/97) 3.01% CLASS A SHARES SHARES WAS 1.25%, 1.75%, 1.50% AND 1.00%.
10 Years 2.27 Inception (5/1/97) 2.56% THE EXPENSE RATIOS PRESENTED ABOVE MAY
5 Years 0.92 10 Years 1.76 VARY FROM THE EXPENSE RATIOS PRESENTED IN
1 Year -7.29 5 Years -0.13 OTHER SECTIONS OF THIS REPORT THAT ARE
1 Year -13.67 BASED ON EXPENSES INCURRED DURING THE
CLASS C SHARES PERIOD COVERED BY THIS REPORT.
Inception (3/31/00) 2.00% CLASS C SHARES
5 Years 1.00 Inception (3/31/00) 1.40% CLASS A SHARE PERFORMANCE REFLECTS THE
1 Year -6.49 5 Years -0.05 MAXIMUM 2.50% SALES CHARGE AND CLASS C
1 Year -12.90 SHARE PERFORMANCE REFLECTS THE APPLICABLE
CLASS R SHARES CONTINGENT DEFERRED SALES CHARGE (CDSC)
10 Years 2.46% CLASS R SHARES FOR THE PERIOD INVOLVED. THE CDSC ON CLASS
5 Years 1.29 10 Years 1.98% C SHARES IS 1% FOR THE FIRST YEAR AFTER
1 Year -5.19 5 Years 0.31 PURCHASE. CLASS R SHARES DO NOT HAVE A
1 Year -11.39 FRONT-END SALES CHARGE; RETURNS ARE SHOWN
CLASS Y SHARES AT NET ASSET VALUE AND DO NOT REFLECT A
10 Years 2.54% CLASS Y SHARES 0.75% CDSC WHICH MAY BE IMPOSED ON A TOTAL
5 Years 1.44 10 Years 2.02% REDEMPTION OF RETIREMENT PLAN ASSETS
1 Year -4.94 5 Years 0.38 WITHIN THE FIRST YEAR. CLASS Y SHARES DO
1 Year -11.47 NOT HAVE A FRONT-END SALES CHARGE OR A
AS OF THE CLOSE OF BUSINESS ON APRIL 13, CDSC; THEREFORE, PERFORMANCE IS AT NET
2006, THE FUND REORGANIZED FROM A ED CLASS A SHARE PERFORMANCE (FOR PERIODS ASSET VALUE.
CLOSED-END FUND TO AN OPEN-END FUND. PRIOR TO THE INCEPTION DATE OF CLASS Y
SHARES) AT NET ASSET VALUE. THE RESTATED THE PERFORMANCE OF THE FUND'S SHARE
CLASS A AND C SHARE RETURNS PRIOR TO CLASS A SHARE PERFORMANCE REFLECTS THE CLASSES WILL DIFFER PRIMARILY DUE TO
APRIL 13, 2006, ARE THE HISTORICAL RULE 12b-1 FEES APPLICABLE TO CLASS A DIFFERENT SALES CHARGE STRUCTURES AND
PERFORMANCE OF THE CLOSED-END FUND'S CLASS SHARES AS WELL AS ANY FEE WAIVERS OR CLASS EXPENSES.
B AND C SHARES, RESPECTIVELY. EXPENSE REIMBURSEMENTS RECEIVED BY CLASS A
SHARES. CLASS A SHARES INCEPTION DATE IS A REDEMPTION FEE OF 2% WILL BE IMPOSED
THE INCEPTION DATE FOR CLASS R SHARES MAY 1, 1997. ON CERTAIN REDEMPTIONS OR EXCHANGES OUT OF
IS APRIL 13, 2006; RETURNS SINCE THAT DATE THE FUND WITHIN 31 DAYS OF PURCHASE.
ARE HISTORICAL RETURNS. ALL OTHER RETURNS THE PERFORMANCE DATA QUOTED REPRESENT EXCEPTIONS TO THE REDEMPTION FEE ARE
ARE BLENDED RETURNS OF HISTORICAL CLASS R PAST PERFORMANCE AND CANNOT GUARANTEE LISTED IN THE FUND'S PROSPECTUS.
SHARES AND RESTATED PERFORMANCE OF THE COMPARABLE FUTURE RESULTS; CURRENT
CLOSED-END FUND'S CLASS B SHARES (FOR THE PERFORMANCE MAY BE LOWER OR HIGHER. PLEASE HAD THE ADVISOR NOT WAIVED FEES AND/ OR
PERIODS PRIOR TO THE INCEPTION DATE OF THE VISIT INVESCOAIM.COM FOR THE MOST RECENT REIMBURSED EXPENSES IN THE PAST,
OPEN-END FUND'S CLASS R SHARES) AT NAV AND MONTH-END PERFORMANCE. PERFORMANCE FIGURES PERFORMANCE WOULD HAVE BEEN LOWER.
REFLECT THE HIGHER ANNUAL MANAGEMENT FEES REFLECT FUND EXPENSES, THE REINVESTMENT OF
AND 0.25% ANNUAL 12b-1 FEES APPLICABLE TO DISTRIBUTIONS, AND CHANGES IN NET ASSET (1) Total annual operating expenses less
THE CLOSED-END FUND'S CLASS B SHARES. THE VALUE. INVESTMENT RETURN AND PRINCIPAL any contractual fee waivers and/or
CLOSED-END FUND'S CLASS B SHARE INCEPTION WILL FLUCTUATE SO THAT YOU MAY HAVE A GAIN expense reimbursements by the advisor
DATE IS MAY 1, 1997. OR LOSS WHEN YOU SELL SHARES. in effect through at least June 30,
2010. See current prospectus for more
CLASS Y SHARES' INCEPTION DATE IS THE NET ANNUAL FUND OPERATING EXPENSE information.
OCTOBER 3, 2008; RETURNS SINCE THAT DATE RATIO SET FORTH IN THE MOST RECENT FUND
ARE ACTUAL RETURNS. ALL OTHER RETURNS ARE PROSPECTUS AS OF THE DATE OF THIS REPORT
BLENDED RETURNS OF ACTUAL CLASS Y SHARE FOR CLASS A, CLASS C, CLASS R AND CLASS Y
PERFORMANCE AND RESTAT- SHARES WAS 1.24%,
7 AIM FLOATING RATE FUND
</Table>
<Table>
AIM FLOATING RATE FUND'S INVESTMENT OBJECTIVES ARE TO PROVIDE A HIGH LEVEL OF CURRENT INCOME AND, SECONDARILY, PRESERVATION OF
CAPITAL.
o Unless otherwise stated, information presented in this report is as of August 31, 2009, and is based on total net assets.
o Unless otherwise noted, all data provided by Invesco Aim.
ABOUT SHARE CLASSES subject to counterparty risk -- the o The LIPPER LOAN PARTICIPATION FUNDS
risk that the other party will not CATEGORY AVERAGE represents an average
o As of the close of business on April complete the transaction with the Fund. of all of the funds in the Lipper Loan
13, 2006, AIM Floating Rate Fund Participation Funds category. These
reorganized from a Closed-End Fund to o Leveraging entails risks such as funds invest primarily in participation
an Open-End Fund. Information presented magnifying changes in the value of the interests in collateralized senior
for Class A shares prior to the portfolio's securities. corporate loans that have floating or
reorganization includes financial data variable rates.
for Class B shares of the Closed-End o A majority of the Fund's assets are
Fund. Information presented for Class C likely to be invested in loans and o The Fund is not managed to track the
shares prior to the reorganization securities that are less liquid than performance of any particular index,
includes financial data for Class C those rated on national exchanges. including the indexes defined here, and
shares of the Closed-End Fund. consequently, the performance of the
o There is no guarantee that the Fund may deviate significantly from the
o On July 27, 2006, all Class B1 shares investment techniques and risk analysis performance of the indexes.
converted into Class A shares. used by the Fund's portfolio managers
will produce the desired results. o A direct investment cannot be made in
o Class R shares are available only to an index. Unless otherwise indicated,
certain retirement plans. Please see o The prices of securities held by the index results include reinvested
the prospectus for more information. Fund may decline in response to market dividends, and they do not reflect
risks. sales charges or fund expenses.
o Class Y shares are available only to
certain investors. Please see the o Non-diversification increases the risk OTHER INFORMATION
prospectus for more information. that the value of the Fund's shares may
vary more widely, and the Fund may be o The returns shown in management's
PRINCIPAL RISKS OF INVESTING IN THE FUND subject to greater investment and discussion of Fund performance are
credit risk than if it invested more based on net asset values calculated
o Credit risk is the risk of loss on an broadly. for shareholder transactions. Generally
investment due to the deterioration of accepted accounting principles require
an issuer's financial health. Such a o The ability of an issuer of a floating adjustments to be made to the net
deterioration of financial health may rate loan or debt security to repay assets of the Fund at period end for
result in a reduction of the credit principal prior to maturity can limit financial reporting purposes, and as
rating of the issuer's securities and the potential for gains by the Fund. such, the net asset values for
may lead to the issuer's inability to shareholder transactions and the
honor its contractual obligations, o To the extent that the Fund is returns based on those net asset values
including making timely payment of concentrated in securities of issuers may differ from the net asset values
interest and principal. in the banking and financial services and returns reported in the Financial
industries, the Fund's performance will Highlights.
o Foreign securities have additional depend to a greater extent on the
risks including exchange rate changes, overall condition of those industries. o Industry classifications used in this
political and economic upheaval, the The value of these securities can be report are generally according to the
relative lack of information, sensitive to changes in government Global Industry Classification
relatively low market liquidity and the regulation, interest rates and economic Standard, which was developed by and is
potential lack of strict financial and downturns in the U.S. and abroad. the exclusive property and a service
accounting controls and standards. mark of MSCI Inc. and Standard &
ABOUT INDEXES USED IN THIS REPORT Poor's.
o Interest rate risk refers to the risk
that bond prices generally fall as o The BARCLAYS CAPITAL U.S. AGGREGATE
interest rates rise and vice versa. INDEX covers U.S. investment-grade
fixed-rate bonds with components for
o The Fund may use enhanced investment government and corporate securities,
techniques such as derivatives. The mortgage pass-throughs and asset-backed
principal risk of derivatives is that securities.
the fluctuations in their values may
not correlate perfectly with the o The S&P/LSTA LEVERAGED LOAN INDEX
overall securities markets. Derivatives tracks the current outstanding balance
are and spread over the London Interbank
Offered Rate (Libor) for fully funded
term loans.
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.
INVESTORS SHOULD READ IT CAREFULLY BEFORE INVESTING. Class A Shares AFRAX
Class C Shares AFRCX
NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE Class R Shares AFRRX
Class Y Shares AFRYX
8 AIM FLOATING RATE FUND
</Table>
SCHEDULE OF INVESTMENTS(a)
August 31, 2009
<Table>
<Caption>
INTEREST MATURITY PRINCIPAL
RATE DATE AMOUNT VALUE
- ----------------------------------------------------------------------------------------
SENIOR SECURED FLOATING RATE
INTERESTS-97.23%(b)(c)
ADVERTISING-0.07%
Valassis Communications, Inc.
Delay Draw Term Loan 2.02% 03/02/14 $ 69,240 $ 65,605
- ----------------------------------------------------------------------------------------
Term Loan B 2.02% 03/02/14 208,796 197,834
========================================================================================
263,439
========================================================================================
AEROSPACE & DEFENSE-2.55%
Aero Technology Supply, Term
Loan(d) 7.37% 10/16/14 827,872 173,853
- ----------------------------------------------------------------------------------------
Alion Science & Technology Corp.,
Term Loan 9.50% 02/06/13 1,710,865 1,467,067
- ----------------------------------------------------------------------------------------
Dubai Aerospace Enterprise
Term Loan B1 4.24% 07/31/14 270,718 224,696
- ----------------------------------------------------------------------------------------
Term Loan B2 4.09-4.24% 07/31/14 265,522 220,383
- ----------------------------------------------------------------------------------------
Hawker Beechcraft Corp.
Syn LOC 2.60% 03/26/14 280,694 206,622
- ----------------------------------------------------------------------------------------
Term Loan 2.26-2.60% 03/26/14 4,689,422 3,451,931
- ----------------------------------------------------------------------------------------
McKechnie Aerospace
First Lien Term Loan 2.27% 05/11/14 544,323 488,078
- ----------------------------------------------------------------------------------------
Second Lien Term Loan 5.27% 05/11/15 141,300 86,193
- ----------------------------------------------------------------------------------------
Sequa Corp., Term Loan B 3.65-3.88% 12/03/14 313,552 265,475
- ----------------------------------------------------------------------------------------
Spirit Aerosystems, Inc., Term Loan
B1 2.26% 09/30/13 2,538,928 2,450,065
- ----------------------------------------------------------------------------------------
Vought Aircraft Industries, Inc.,
Incremental Term Loan 7.50% 12/22/11 320,923 316,109
- ----------------------------------------------------------------------------------------
Wesco Aircraft Hardware Corp., Term
Loan 2.52% 09/29/13 413,329 378,712
========================================================================================
9,729,184
========================================================================================
ALTERNATIVE CARRIERS-1.43%
Iridium LLC/Capital Corp.
First Lien Term Loan A 5.50% 06/30/10 495,543 490,588
- ----------------------------------------------------------------------------------------
Second Lien Term Loan 9.50% 07/31/12 149,800 134,820
- ----------------------------------------------------------------------------------------
Level 3 Communications, Inc.
Add On Term Loan B 11.50% 03/13/14 204,533 210,286
- ----------------------------------------------------------------------------------------
Term Loan 2.52-2.76% 03/13/14 5,403,226 4,629,916
========================================================================================
5,465,610
========================================================================================
ALUMINUM-0.12%
Noranda Aluminum, Inc., Term Loan B 2.27% 05/18/14 625,149 460,735
========================================================================================
APPAREL RETAIL-0.04%
Mothers Work Inc., Term Loan B 2.77-3.01% 03/13/13 157,268 139,182
========================================================================================
AUTO PARTS & EQUIPMENT-2.19%
Dana Holding Corp.,
Term Loan(e) -- 01/30/15 2,000,000 1,532,500
- ----------------------------------------------------------------------------------------
Term Loan 7.25% 01/30/15 1,000,000 766,250
- ----------------------------------------------------------------------------------------
Dayco Products LLC
Second Lien Term Loan(d) 9.02-10.35% 12/31/11 1,269,223 12,692
- ----------------------------------------------------------------------------------------
Term Loan B(d) 6.06-8.75% 06/21/11 301,405 124,580
- ----------------------------------------------------------------------------------------
</Table>
See accompanying Notes to Financial Statements which are an integral part of the
financial statements.
9 AIM FLOATING RATE FUND
<Table>
<Caption>
INTEREST MATURITY PRINCIPAL
RATE DATE AMOUNT VALUE
- ----------------------------------------------------------------------------------------
AUTO PARTS & EQUIPMENT-(CONTINUED)
Federal-Mogul Corp.
Delay Draw Term Loan C 2.22% 12/27/15 $1,094,500 $ 820,196
- ----------------------------------------------------------------------------------------
Term Loan B 2.19-2.22% 12/27/14 3,908,982 2,929,315
- ----------------------------------------------------------------------------------------
Term Loan C2 2.21-2.22% 12/27/15 342,751 256,850
- ----------------------------------------------------------------------------------------
Goodyear Tire & Rubber Co. (The),
Second Lien Term Loan 2.02% 04/30/10 1,400,000 1,299,900
- ----------------------------------------------------------------------------------------
Pep Boys-Manny, Moe & Jack (The),
Term Loan 2.67% 10/27/13 40,757 37,088
- ----------------------------------------------------------------------------------------
Veyance Technologies, Inc.
First Lien Delay Draw Term Loan 2.53% 07/31/14 107,957 505,518
- ----------------------------------------------------------------------------------------
First Lien Term Loan 2.53% 07/31/14 716,406 76,178
========================================================================================
8,361,067
========================================================================================
AUTOMOBILE MANUFACTURERS-0.78%
TRW Automotive Holdings Corp.
Term Loan B1(e) -- 02/09/14 1,000,000 994,290
- ----------------------------------------------------------------------------------------
Term Loan B1 6.31% 02/09/14 2,000,000 1,988,580
========================================================================================
2,982,870
========================================================================================
AUTOMOTIVE RETAIL-0.26%
KAR Holdings, Inc., Term Loan B 2.52% 10/21/13 1,078,516 1,012,457
========================================================================================
BROADCASTING-9.81%
Cequel Communications, LLC
First Lien Term Loan 2.27-4.25% 11/05/13 2,707,505 2,558,592
- ----------------------------------------------------------------------------------------
Second Lien PIK Term Loan B 6.27-6.28% 05/05/14 1,183,810 1,087,129
- ----------------------------------------------------------------------------------------
Second Lien Term Loan A 4.78% 05/05/14 3,630,067 3,279,765
- ----------------------------------------------------------------------------------------
Charter Communications, Inc., Term
Loan Refinance 6.25% 03/06/14 8,347,882 7,746,167
- ----------------------------------------------------------------------------------------
Citadel Communication Corp., Term
Loan B 2.33-2.35% 06/12/14 967,286 546,168
- ----------------------------------------------------------------------------------------
CSC Holdings
Incremental Term Loan B 2.02-2.07% 03/29/13 680,857 656,659
- ----------------------------------------------------------------------------------------
Incremental Term Loan B2 2.02-2.07% 03/29/16 1,482,630 1,460,079
- ----------------------------------------------------------------------------------------
CW Media Holdings, Term Loan B 3.85% 02/16/15 592,094 510,314
- ----------------------------------------------------------------------------------------
Discovery (The), Term Loan C 5.25% 05/14/14 1,488,587 1,507,194
- ----------------------------------------------------------------------------------------
Gray Television Inc., Term Loan B 3.78% 12/31/14 174,356 126,263
- ----------------------------------------------------------------------------------------
Hargray Communications Group, Inc.,
Term Loan B 2.72% 06/27/14 152,368 140,178
- ----------------------------------------------------------------------------------------
Insight Communications Co., Inc.,
Term Loan B 2.28% 04/06/14 1,164,360 1,117,786
- ----------------------------------------------------------------------------------------
Intelsat, Ltd.
Term Loan B2-A 2.78% 01/03/14 734,857 696,740
- ----------------------------------------------------------------------------------------
Term Loan B2-B 2.78% 01/03/14 734,633 696,528
- ----------------------------------------------------------------------------------------
Term Loan B2-C 2.78% 01/03/14 734,633 696,528
- ----------------------------------------------------------------------------------------
Ion Media Networks, Inc. (Paxson
Communications)
DIP Term Loan(f) 0% 02/28/10 124,027 136,430
- ----------------------------------------------------------------------------------------
DIP Term Loan 15.00% 02/28/10 248,054 272,860
- ----------------------------------------------------------------------------------------
Term Loan(d) 4.38% 01/15/12 2,801,171 485,527
- ----------------------------------------------------------------------------------------
Local TV LLC, Term Loan B 2.27% 05/07/13 914,538 612,741
- ----------------------------------------------------------------------------------------
</Table>
See accompanying Notes to Financial Statements which are an integral part of the
financial statements.
10 AIM FLOATING RATE FUND
<Table>
<Caption>
INTEREST MATURITY PRINCIPAL
RATE DATE AMOUNT VALUE
- ----------------------------------------------------------------------------------------
BROADCASTING-(CONTINUED)
Mediacom Communications Corp.
Add on Term Loan(f) 0% 09/30/12 $3,206,561 $3,026,192
- ----------------------------------------------------------------------------------------
Term Loan A 1.76% 03/31/10 51,042 50,149
- ----------------------------------------------------------------------------------------
Term Loan D1 2.01% 01/31/15 2,022,970 1,909,178
- ----------------------------------------------------------------------------------------
Term Loan D2 2.01% 01/31/15 279,791 264,053
- ----------------------------------------------------------------------------------------
Term Loan E 6.50% 01/03/16 1,086,980 1,087,882
- ----------------------------------------------------------------------------------------
New Vision Television
DIP Term Loan(f) 0% 02/28/10 161,467 159,853
- ----------------------------------------------------------------------------------------
DIP Term Loan 13.00% 02/28/10 215,290 213,137
- ----------------------------------------------------------------------------------------
First Lien Term Loan B(d) 5.25% 11/01/13 163,883 40,971
- ----------------------------------------------------------------------------------------
Second Lien Term Loan(d) 8.75% 11/01/14 450,000 4,500
- ----------------------------------------------------------------------------------------
Term Loan(d) 5.25% 11/01/13 33,617 8,404
- ----------------------------------------------------------------------------------------
NextMedia Operating, Inc.
Delay Draw Term Loan 8.25% 11/15/12 177,265 125,858
- ----------------------------------------------------------------------------------------
Second Lien Term Loan(d) 1.00% 11/15/13 223,907 21,271
- ----------------------------------------------------------------------------------------
Term Loan 8.25% 11/15/12 431,410 306,301
- ----------------------------------------------------------------------------------------
NTL Investment Holding Ltd., Term
Loan B-4 2.46% 09/03/12 131,327 124,104
- ----------------------------------------------------------------------------------------
Univision Communications Inc., Term
Loan 2.51% 09/29/14 6,968,800 5,445,351
- ----------------------------------------------------------------------------------------
WaveDivision Holdings, LLC, Term
Loan B 2.95% 06/30/14 381,392 347,067
========================================================================================
37,467,919
========================================================================================
BUILDING PRODUCTS-0.71%
Building Materials Corp. of
America, Term Loan B 3.06% 02/22/14 2,626,091 2,399,591
- ----------------------------------------------------------------------------------------
Champion Window Manufacturing Inc.,
Term Loan 4.24% 05/11/13 478,926 232,279
- ----------------------------------------------------------------------------------------
United Subcontractors, Inc., Term
Loan 2.10% 06/30/15 107,421 91,308
========================================================================================
2,723,178
========================================================================================
CASINOS & GAMING-2.58%
BLB Investors, LLC, First Lien Term
Loan 4.75% 07/18/11 887,867 506,084
- ----------------------------------------------------------------------------------------
Cannery Casino
Delay Draw Term Loan 2.53% 05/18/13 913,749 815,521
- ----------------------------------------------------------------------------------------
Second Lien Term Loan 4.52% 05/18/14 84,000 62,790
- ----------------------------------------------------------------------------------------
Term Loan B 2.52% 05/18/13 557,161 497,266
- ----------------------------------------------------------------------------------------
Green Valley Ranch
First Lien Term Loan B 2.54-4.00% 02/16/14 218,580 154,372
- ----------------------------------------------------------------------------------------
Second Lien Term Loan 3.88% 08/16/14 369,000 71,033
- ----------------------------------------------------------------------------------------
Harrah's Operating Co., Inc.
Term Loan B1 3.50% 01/28/15 2,645,205 2,127,273
- ----------------------------------------------------------------------------------------
Term Loan B2 3.50% 01/28/15 2,636,103 2,127,546
- ----------------------------------------------------------------------------------------
Term Loan B3 3.50-3.60% 01/28/15 299,627 241,388
- ----------------------------------------------------------------------------------------
Las Vegas Sands Corp.
Delay Draw Term Loan 1 2.09% 05/23/14 685,695 533,985
- ----------------------------------------------------------------------------------------
Delay Draw Term Loan 2 2.09% 05/23/13 464,291 361,567
- ----------------------------------------------------------------------------------------
Term Loan B 2.09% 05/23/14 3,035,901 2,364,208
========================================================================================
9,863,033
========================================================================================
</Table>
See accompanying Notes to Financial Statements which are an integral part of the
financial statements.
11 AIM FLOATING RATE FUND
<Table>
<Caption>
INTEREST MATURITY PRINCIPAL
RATE DATE AMOUNT VALUE
- -------------------------------------------------------------------------------------------
COAL & CONSUMABLE FUELS-0.26%
Oxbow Carbon LLC
Delay Draw Term Loan 2.26% 05/08/14 $ 155,682 $ 144,006
- -------------------------------------------------------------------------------------------
Term Loan B 2.26-2.60% 05/08/14 901,151 833,564
===========================================================================================
977,570
===========================================================================================
COMMERCIAL PRINTING-1.22%
Aster Sr. Flint Inc.
Term Loan B5 4.01% 12/31/12 795,787 551,584
- -------------------------------------------------------------------------------------------
Term Loan C5 4.01% 12/31/13 813,772 567,102
- -------------------------------------------------------------------------------------------
Cenveo, Inc.
Delay Draw Term Loan 5.11% 06/21/13 111,924 108,147
- -------------------------------------------------------------------------------------------
Term Loan C 5.11% 06/21/13 3,571,207 3,450,679
===========================================================================================
4,677,512
===========================================================================================
COMMODITY CHEMICALS-3.75%
Ashland Inc., Term Loan B 7.65% 05/13/14 5,370,284 5,473,233
- -------------------------------------------------------------------------------------------
LyondellBasell Industries
Credit Linked Notes (Acquired
12/20/05; Cost $2,200,000) 3.31% 12/20/09 2,200,000 1,790,318
- -------------------------------------------------------------------------------------------
DIP Roll-Up(e) -- 12/15/09 2,262,378 2,104,962
- -------------------------------------------------------------------------------------------
DIP Roll-Up 5.80-6.56% 12/15/09 1,130,420 1,051,766
- -------------------------------------------------------------------------------------------
DIP NM Term Loan(f) 0% 12/15/09 218,583 226,917
- -------------------------------------------------------------------------------------------
DIP NM Term Loan 13.00% 12/15/09 437,367 454,044
- -------------------------------------------------------------------------------------------
Dutch Revolving Credit Loan(e) -- 12/22/14 66,409 32,042
- -------------------------------------------------------------------------------------------
Dutch Revolving Credit Loan 3.77% 12/22/14 29,504 14,236
- -------------------------------------------------------------------------------------------
Dutch Term Loan A(e) -- 12/22/14 154,263 74,432
- -------------------------------------------------------------------------------------------
Dutch Term Loan A 3.77% 12/22/14 68,536 33,069
- -------------------------------------------------------------------------------------------
Germany Term Loan B1(e) -- 12/22/14 190,653 91,990
- -------------------------------------------------------------------------------------------
Germany Term Loan B1 4.02% 12/22/14 84,703 40,869
- -------------------------------------------------------------------------------------------
Germany Term Loan B2(e) -- 12/22/14 190,653 91,990
- -------------------------------------------------------------------------------------------
Germany Term Loan B2 4.02% 12/22/14 84,703 40,869
- -------------------------------------------------------------------------------------------
Germany Term Loan B3(e) -- 12/22/14 190,653 91,990
- -------------------------------------------------------------------------------------------
Germany Term Loan B3 4.02% 12/22/14 84,703 40,869
- -------------------------------------------------------------------------------------------
U.S. Revolving Credit Loan(e) -- 12/22/14 249,032 120,158
- -------------------------------------------------------------------------------------------
U.S. Revolving Credit Loan 3.77% 12/22/14 110,640 53,384
- -------------------------------------------------------------------------------------------
U.S. Term Loan A(e) -- 12/22/14 474,477 228,935
- -------------------------------------------------------------------------------------------
U.S. Term Loan A 3.77% 12/22/14 210,801 101,712
- -------------------------------------------------------------------------------------------
U.S. Term Loan B1(e) -- 12/22/14 827,296 399,170
- -------------------------------------------------------------------------------------------
U.S. Term Loan B1 7.00% 12/22/14 367,552 177,344
- -------------------------------------------------------------------------------------------
U.S. Term Loan B2(e) -- 12/22/14 827,296 399,170
- -------------------------------------------------------------------------------------------
U.S. Term Loan B2 7.00% 12/22/14 367,552 177,344
- -------------------------------------------------------------------------------------------
U.S. Term Loan B3(e) -- 12/22/14 827,296 399,170
- -------------------------------------------------------------------------------------------
U.S. Term Loan B3 7.00% 12/22/14 367,552 177,344
- -------------------------------------------------------------------------------------------
Univar Corp., Term Loan B 3.26% 10/10/14 453,575 414,114
===========================================================================================
14,301,441
===========================================================================================
</Table>
See accompanying Notes to Financial Statements which are an integral part of the
financial statements.
12 AIM FLOATING RATE FUND
<Table>
<Caption>
INTEREST MATURITY PRINCIPAL
RATE DATE AMOUNT VALUE
- -------------------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT-1.86%
Consolidated Communications, Inc.,
Term Loan B 2.77% 12/31/14 $ 1,500,000 $ 1,376,250
- -------------------------------------------------------------------------------------------
General Communication Inc., Term
Loan 4.52% 08/31/12 419,439 402,662
- -------------------------------------------------------------------------------------------
NTELOS Holdings Corporations, Term
Loan B 5.75% 08/07/15 5,063,881 5,053,753
- -------------------------------------------------------------------------------------------
One Communications Corp., First
Lien Term Loan 4.31-6.25% 06/30/12 313,545 279,055
===========================================================================================
7,111,720
===========================================================================================
COMPUTER HARDWARE-0.04%
Quantum Corp., Term Loan B 4.10% 07/12/14 187,479 165,684
===========================================================================================
CONSTRUCTION & AGRICULTURAL MACHINERY-0.71%
Manitowoc Company, Inc. (The), Term
Loan B 7.50% 11/06/14 2,993,137 2,713,278
===========================================================================================
CONSTRUCTION MATERIALS-0.05%
Hillman Group (The), Term Loan B-2 4.91% 03/31/12 187,402 183,419
===========================================================================================
DATA PROCESSING & OUTSOURCED SERVICES-2.85%
Affiliated Computer Services, Inc.
Delay Draw Term Loan 2.26-2.28% 03/20/13 199,871 195,500
- -------------------------------------------------------------------------------------------
Term Loan B 2.26% 03/20/13 44,014 43,052
- -------------------------------------------------------------------------------------------
First Data Corp.
Term Loan B2 3.01-3.02% 09/24/14 11,128,623 9,266,025
- -------------------------------------------------------------------------------------------
Term Loan B3 3.01-3.02% 09/24/14 960,671 797,684
- -------------------------------------------------------------------------------------------
Metavante Technologies, Inc., Term
Loan B 2.23% 11/01/14 603,047 596,516
===========================================================================================
10,898,777
===========================================================================================
DIVERSIFIED CHEMICALS-0.22%
Celanese US Holdings LLC
Prefunded LOC 0.28% 04/02/13 365,939 348,729
- -------------------------------------------------------------------------------------------
Term Loan 2.35% 04/02/14 351,844 335,297
- -------------------------------------------------------------------------------------------
Texas Petrochemicals L.P.
Incremental Term Loan B 2.81% 06/27/13 55,273 39,797
- -------------------------------------------------------------------------------------------
Term Loan B 2.81% 06/27/13 163,757 117,905
===========================================================================================
841,728
===========================================================================================
DIVERSIFIED METALS & MINING-0.44%
Novelis Inc.
Canada Term Loan 2.27% 07/06/14 406,681 368,217
- -------------------------------------------------------------------------------------------
U.S. Term Loan 2.27-2.60% 07/06/14 1,442,526 1,306,092
===========================================================================================
1,674,309
===========================================================================================
DIVERSIFIED REAL ESTATE ACTIVITIES-1.15%
Lake Las Vegas Resort
DIP Facilities Loan 9.76% 12/31/09 664,569 332,285
- -------------------------------------------------------------------------------------------
Mezzanine Loan(d) 20.00% 10/01/09 4,598 155
- -------------------------------------------------------------------------------------------
Tranche(d) 14.35% 12/22/12 268,336 7,379
- -------------------------------------------------------------------------------------------
Tranches 1 & 2(d) 14.35% 12/22/12 2,704,553 74,375
- -------------------------------------------------------------------------------------------
RE/MAX International, Inc., Term
Loan B1 3.78-4.01% 12/17/12 561,983 542,314
- -------------------------------------------------------------------------------------------
</Table>
See accompanying Notes to Financial Statements which are an integral part of the
financial statements.
13 AIM FLOATING RATE FUND
<Table>
<Caption>
INTEREST MATURITY PRINCIPAL
RATE DATE AMOUNT VALUE
- -------------------------------------------------------------------------------------------
DIVERSIFIED REAL ESTATE ACTIVITIES-(CONTINUED)
Realogy Corporation
Credit Link Term Loan(e) -- 10/10/13 $ 312,340 $ 238,356
- -------------------------------------------------------------------------------------------
Credit Link Term Loan 0.11% 10/10/13 423,165 322,930
- -------------------------------------------------------------------------------------------
Delay Draw Term Loan(e) -- 10/10/13 500,000 381,565
- -------------------------------------------------------------------------------------------
Delay Draw Term Loan 3.28-3.53% 10/10/13 493,144 376,333
- -------------------------------------------------------------------------------------------
Term Loan B(e) -- 10/10/13 1,160,120 885,322
- -------------------------------------------------------------------------------------------
Term Loan B 3.28% 10/10/13 1,571,749 1,199,449
- -------------------------------------------------------------------------------------------
Yellowstone Mountain Club, LLC,
Term Loan 6.00% 07/16/14 53,333 37,200
===========================================================================================
4,397,663
===========================================================================================
DIVERSIFIED REITS-0.15%
Capital Automotive REIT, Term Loan
B 2.04% 12/16/10 687,106 568,580
===========================================================================================
DIVERSIFIED SUPPORT SERVICES-1.41%
Aspect Software, Inc., First Lien
Term Loan 3.31% 07/11/11 213,751 190,238
- -------------------------------------------------------------------------------------------
Bankruptcy Management Solutions,
Inc.
First Lien Term Loan 4.27% 07/28/12 60,496 34,483
- -------------------------------------------------------------------------------------------
Second Lien Term Loan 6.51% 07/28/13 35,658 7,399
- -------------------------------------------------------------------------------------------
Brock Holdings III, Inc., Term Loan
B 2.85-4.50% 02/26/14 424,067 335,013
- -------------------------------------------------------------------------------------------
Central Parking Corp.
Second Lien Term Loan 4.81% 11/22/14 25,522 12,506
- -------------------------------------------------------------------------------------------
Syn LOC 0.23% 05/22/14 63,036 47,277
- -------------------------------------------------------------------------------------------
Term Loan B 2.56% 05/22/14 140,849 104,228
- -------------------------------------------------------------------------------------------
Merrill Corp., Term Loan 8.50% 05/15/11 2,270,040 1,679,829
- -------------------------------------------------------------------------------------------
N.E.W. Customer Service, Term Loan
B 2.76-2.78% 05/22/14 1,847,578 1,722,867
- -------------------------------------------------------------------------------------------
Nuance Communications, Inc.
Revolver Loan(f) 0% 04/01/12 121,000 111,922
- -------------------------------------------------------------------------------------------
Term Loan B 2.27% 04/01/13 394,194 376,948
- -------------------------------------------------------------------------------------------
Production Resources, Inc., Term
Loan B 3.81% 08/15/14 1,007,762 775,977
===========================================================================================
5,398,687
===========================================================================================
DRUG RETAIL-0.34%
General Nutrition Centers, Inc.,
Term Loan B 2.52-2.85% 09/16/13 1,248,035 1,152,872
- -------------------------------------------------------------------------------------------
MAPCO Express, Inc., Term Loan 5.75% 04/28/11 83,053 74,748
- -------------------------------------------------------------------------------------------
Pantry, Inc. (The)
Delay Draw Term Loan 1.77% 05/15/14 21,261 19,879
- -------------------------------------------------------------------------------------------
Term Loan B 1.77% 05/15/14 74,287 69,458
===========================================================================================
1,316,957
===========================================================================================
EDUCATION SERVICES-0.06%
Bright Horizons Family Solutions,
Inc., Term Loan B 7.50% 05/28/15 247,252 239,217
===========================================================================================
ELECTRIC UTILITIES-5.87%
AES Corp.
Syn LOC 6.52% 03/29/10 583,091 569,679
- -------------------------------------------------------------------------------------------
Syn LOC Term Loan B 6.52% 03/29/10 20,344 19,876
- -------------------------------------------------------------------------------------------
Bicent Power LLC, Second Lien Term
Loan 4.60% 07/10/14 250,400 150,240
- -------------------------------------------------------------------------------------------
Calpine Corp., First Priority Term
Loan 3.48% 03/29/14 7,197,841 6,609,130
- -------------------------------------------------------------------------------------------
</Table>
See accompanying Notes to Financial Statements which are an integral part of the
financial statements.
14 AIM FLOATING RATE FUND
<Table>
<Caption>
INTEREST MATURITY PRINCIPAL
RATE DATE AMOUNT VALUE
- -------------------------------------------------------------------------------------------
DIVERSIFIED REAL ESTATE ACTIVITIES-(CONTINUED)
Dynegy Holdings Inc.
Loan C 4.02% 04/02/13 $ 834,122 $ 804,669
- -------------------------------------------------------------------------------------------
Term Loan B 4.02% 04/02/13 172,914 166,809
- -------------------------------------------------------------------------------------------
Energy Investor Funds (USPF
Holdings), Term Loan 2.02% 04/11/14 213,500 198,555
- -------------------------------------------------------------------------------------------
Kelson Finance LLC, Term Loan 3.85% 03/08/13 322,326 282,197
- -------------------------------------------------------------------------------------------
NE Energy, Inc.
Second Lien Term Loan 5.13% 05/01/14 315,000 244,125
- -------------------------------------------------------------------------------------------
Syn LOC 0.48% 11/01/13 92,351 85,039
- -------------------------------------------------------------------------------------------
Term Loan B 3.13% 11/01/13 675,754 622,254
- -------------------------------------------------------------------------------------------
NRG Energy, Inc.
Syn LOC 0.50% 02/01/13 1,025,718 967,919
- -------------------------------------------------------------------------------------------
Term Loan B 2.01-2.35% 02/01/13 1,903,828 1,796,548
- -------------------------------------------------------------------------------------------
NSG Holdings II, LLC
Syn LOC 2.13% 06/15/14 38,265 35,587
- -------------------------------------------------------------------------------------------
Term Loan 2.13% 06/15/14 183,019 170,207
- -------------------------------------------------------------------------------------------
Texas Competitive Electric Holdings
Co. LLC
Delay Draw Term Loan 3.78% 10/10/14 8,096,866 6,094,187
- -------------------------------------------------------------------------------------------
Term Loan B2 3.78-3.79% 10/10/14 3,929,455 2,980,727
- -------------------------------------------------------------------------------------------
TPF Generation Holdings, LLC
First Lien Term Loan 0.50% 12/15/11 30,618 28,858
- -------------------------------------------------------------------------------------------
Second Lien Term Loan 4.51% 12/15/14 267,000 225,116
- -------------------------------------------------------------------------------------------
Syn LOC D 0.50% 12/15/13 97,672 92,126
- -------------------------------------------------------------------------------------------
Term Loan 2.26% 12/15/13 278,076 262,485
===========================================================================================
22,406,333
===========================================================================================
ELECTRICAL COMPONENTS & EQUIPMENT-0.14%
Aeroflex Inc., Term Loan B1 3.56-3.75% 08/15/14 316,935 287,882
- -------------------------------------------------------------------------------------------
Crown Castle International Corp.,
Term Loan B 1.76% 03/06/14 282,693 267,772
===========================================================================================
555,654
===========================================================================================
ELECTRONIC MANUFACTURING SERVICES-0.06%
Sorenson Communications, Inc.,
First Lien Term Loan 2.76% 08/16/13 224,761 212,961
===========================================================================================
ENVIRONMENTAL & FACILITIES SERVICES-0.05%
Covanta Holding Corp.
Syn LOC 0.50% 02/09/14 84,652 81,224
- -------------------------------------------------------------------------------------------
Term Loan B 1.81% 02/09/14 129,677 124,425
===========================================================================================
205,649
===========================================================================================
FOOD DISTRIBUTORS-3.28%
Advanced Food Company, Inc.
Delay Draw Term Loan 2.02% 03/16/14 86,280 81,103
- -------------------------------------------------------------------------------------------
Second Lien Term Loan 4.52% 09/16/14 1,233,357 925,018
- -------------------------------------------------------------------------------------------
Term Loan B 2.02% 03/16/14 998,970 939,032
- -------------------------------------------------------------------------------------------
Bolthouse Farms (Wm.), Inc., Term
Loan 2.66% 12/17/12 95,816 92,942
- -------------------------------------------------------------------------------------------
Dean Foods Co.
Term Loan A 0.90-1.23% 04/02/12 288,750 276,117
- -------------------------------------------------------------------------------------------
Term Loan B 1.65-1.98% 04/02/14 806,365 770,079
- -------------------------------------------------------------------------------------------
</Table>
See accompanying Notes to Financial Statements which are an integral part of the
financial statements.
15 AIM FLOATING RATE FUND
<Table>
<Caption>
INTEREST MATURITY PRINCIPAL
RATE DATE AMOUNT VALUE
- -------------------------------------------------------------------------------------------
DIVERSIFIED REAL ESTATE ACTIVITIES-(CONTINUED)
Pinnacle Foods Group, Inc. (Aurora
Foods)
Revolver Loan 3.03% 04/02/13 $ 45,600 $ 29,640
- -------------------------------------------------------------------------------------------
Revolver Loan(f) 0% 04/02/13 930,400 604,760
- -------------------------------------------------------------------------------------------
Revolver Term Loan 3.03% 04/02/13 24,000 15,600
- -------------------------------------------------------------------------------------------
Term Loan B 3.01-3.03% 04/02/14 4,410,051 4,068,271
- -------------------------------------------------------------------------------------------
Wrigley Jr. (Wm.) Co., Term Loan B 6.50% 10/06/14 4,671,877 4,728,920
===========================================================================================
12,531,482
===========================================================================================
FOOD RETAIL-0.00%
Quizno's Corp. (The), First Lien
Term Loan B 2.88% 05/05/13 13,469 10,034
===========================================================================================
FOREST PRODUCTS-2.55%
Boise Cascade Holdings, LLC
Second Lien Term Loan 9.25% 02/22/15 189,000 159,389
- -------------------------------------------------------------------------------------------
Term Loan B 5.75% 02/22/14 2,007,269 2,009,357
- -------------------------------------------------------------------------------------------
Georgia-Pacific Corp.
Add On Term Loan B 2.34-2.46% 12/29/12 29,077 28,085
- -------------------------------------------------------------------------------------------
Term Loan A 2.34-2.46% 12/21/10 1,475,591 1,442,390
- -------------------------------------------------------------------------------------------
Term Loan B 2.34-2.65% 12/21/12 4,016,667 3,879,658
- -------------------------------------------------------------------------------------------
Term Loan C 3.59-3.90% 12/23/14 2,228,133 2,212,313
===========================================================================================
9,731,192
===========================================================================================
HEALTH CARE DISTRIBUTORS-1.23%
Warner Chilcott PLC
Term Loan B 2.26-2.60% 01/18/12 3,531,256 3,498,168
- -------------------------------------------------------------------------------------------
Term Loan C 2.26% 01/18/12 1,200,181 1,188,936
===========================================================================================
4,687,104
===========================================================================================
HEALTH CARE EQUIPMENT-0.71%
CONMED Corp., Term Loan 1.76% 04/13/13 212,012 195,051
- -------------------------------------------------------------------------------------------
DJO Finance LLC, Term Loan 3.26-3.60% 05/20/14 2,057,543 1,975,879
- -------------------------------------------------------------------------------------------
Orthofix International N.V., Term
Loan B 6.75-7.50% 09/22/13 546,556 536,308
===========================================================================================
2,707,238
===========================================================================================
HEALTH CARE FACILITIES-2.91%
Community Health Systems
Delay Draw Term Loan 2.51% 07/25/14 182,668 170,261
- -------------------------------------------------------------------------------------------
Term Loan B 2.51-5.62% 07/25/14 3,108,421 2,896,831
- -------------------------------------------------------------------------------------------
DaVita Inc., Term Loan B1 1.77-2.10% 10/05/12 3,685,140 3,534,971
- -------------------------------------------------------------------------------------------
HCA, Inc.
Term Loan B(e) -- 11/07/12 1,500,000 1,263,750
- -------------------------------------------------------------------------------------------
Term Loan B 2.85% 11/18/13 321,174 302,212
- -------------------------------------------------------------------------------------------
IASIS Healthcare Corp.
Delay Draw Term Loan 2.26% 03/14/14 708,267 667,244
- -------------------------------------------------------------------------------------------
LOC 0.16% 03/14/14 381,558 359,458
- -------------------------------------------------------------------------------------------
Term Loan B 2.26% 03/14/14 2,046,689 1,928,145
===========================================================================================
11,122,872
===========================================================================================
</Table>
See accompanying Notes to Financial Statements which are an integral part of the
financial statements.
16 AIM FLOATING RATE FUND
<Table>
<Caption>
INTEREST MATURITY PRINCIPAL
RATE DATE AMOUNT VALUE
- -------------------------------------------------------------------------------------------
AUTO PARTS & EQUIPMENT-(CONTINUED)
HEALTH CARE SERVICES-2.71%
Biomet, Inc., Term Loan 3.26-3.61% 03/25/15 $ 5,636,356 $ 5,431,249
- -------------------------------------------------------------------------------------------
Genoa Healthcare LLC
Second Lien Term Loan 10.75% 02/10/13 132,000 79,200
- -------------------------------------------------------------------------------------------
Term Loan B 5.75% 08/10/12 88,793 79,026
- -------------------------------------------------------------------------------------------
inVentiv Health, Inc., Term Loan B 2.35% 07/06/14 380,209 361,199
- -------------------------------------------------------------------------------------------
Royalty Pharma AG
Term Loan 2.85% 04/16/13 545,958 534,188
- -------------------------------------------------------------------------------------------
Term Loan B 2.85% 04/16/13 546,921 535,130
- -------------------------------------------------------------------------------------------
Skilled Healthcare LLC, Term Loan 2.26-2.49% 06/15/12 360,000 329,400
- -------------------------------------------------------------------------------------------
Sun Healthcare Group, Inc.
Syn LOC 0.50% 04/19/14 89,827 82,042
- -------------------------------------------------------------------------------------------
Term Loan B 2.50-3.31% 04/19/14 460,101 420,224
- -------------------------------------------------------------------------------------------
Trizetto Group, Inc., Term Loan B 7.50% 08/04/15 753,307 743,891
- -------------------------------------------------------------------------------------------
Viant, Inc., Term Loan B 2.85% 06/25/14 1,787,143 1,733,529
===========================================================================================
10,329,078
===========================================================================================
HEALTH CARE SUPPLIES-0.84%
Accellent Corp., Term Loan B 2.87% 11/22/12 2,969,809 2,620,856
- -------------------------------------------------------------------------------------------
Fresenius Medical Care AG & Co.
KGaA, Term Loan B 1.89-1.99% 03/31/13 168,869 164,563
- -------------------------------------------------------------------------------------------
Mylan Laboratories, Term Loan B 3.56-3.88% 10/02/14 434,938 421,529
===========================================================================================
3,206,948
===========================================================================================
HOMEBUILDING-0.09%
Headwaters, Inc., First Lien Term
Loan B1 9.75% 04/30/11 349,740 338,083
===========================================================================================
HOTELS, RESORTS & CRUISE LINES-0.79%
American Gaming Systems
Delay Draw Term Loan 3.27% 05/14/13 529,171 338,669
- -------------------------------------------------------------------------------------------
Term Loan B 3.27% 05/14/13 3,782,274 2,420,655
- -------------------------------------------------------------------------------------------
Centaur Gaming
First Lien Term Loan B 9.25% 10/30/12 242,296 205,952
- -------------------------------------------------------------------------------------------
Second Lien Term Loan 14.25% 10/30/13 121,115 36,335
- -------------------------------------------------------------------------------------------
Ginn Club & Resort
First Lien Term Loan B(d) 9.50% 06/08/11 105,289 7,370
- -------------------------------------------------------------------------------------------
Revolving Credit Loan(d) 5.87-9.50% 06/08/11 49,078 3,435
- -------------------------------------------------------------------------------------------
Second Lien Term Loan(d) 13.50% 06/08/12 127,556 1,276
===========================================================================================
3,013,692
===========================================================================================
HOUSEHOLD PRODUCTS-1.34%
Jarden Corp.
Term Loan B2 2.35% 01/24/12 52,661 51,169
- -------------------------------------------------------------------------------------------
Term Loan B4 3.85% 01/26/15 56,084 55,944
- -------------------------------------------------------------------------------------------
Nice-Pak Products Inc., Term Loan 3.60% 06/18/14 402,780 300,071
- -------------------------------------------------------------------------------------------
Prestige Brands International,
Inc., Term Loan B 2.51% 04/06/11 27,605 27,329
- -------------------------------------------------------------------------------------------
Rent-A-Center, Term Loan B 2.02-2.03% 06/30/12 143,621 139,312
- -------------------------------------------------------------------------------------------
</Table>
See accompanying Notes to Financial Statements which are an integral part of the
financial statements.
17 AIM FLOATING RATE FUND
<Table>
<Caption>
INTEREST MATURITY PRINCIPAL
RATE DATE AMOUNT VALUE
- -------------------------------------------------------------------------------------------
HOUSEHOLD PRODUCTS-(CONTINUED)
Spectrum Brands, Inc.
LOC(e) -- 06/30/12 $ 97,809 $ 91,370
- -------------------------------------------------------------------------------------------
LOC 0.13-8.75% 06/30/12 141,430 132,119
- -------------------------------------------------------------------------------------------
Term Loan B(e) -- 06/30/12 1,901,838 1,776,640
- -------------------------------------------------------------------------------------------
Term Loan B 8.75% 06/30/12 2,709,959 2,531,562
===========================================================================================
5,105,516
===========================================================================================
HUMAN RESOURCE & EMPLOYMENT SERVICES-0.32%
Koosharem Corp.
Second Lien Term Loan 6.58% 12/31/14 298,800 52,290
- -------------------------------------------------------------------------------------------
Term Loan 3.28-3.32% 06/30/14 727,663 446,298
- -------------------------------------------------------------------------------------------
Kronos Inc., First Lien Term Loan 2.60% 06/11/14 781,735 722,620
===========================================================================================
1,221,208
===========================================================================================
INDUSTRIAL CONGLOMERATES-0.35%
CONTECH Construction Products,
Inc., Term Loan B 2.28% 01/31/13 1,337,273 1,123,309
- -------------------------------------------------------------------------------------------
Dresser Inc., Term Loan B 2.68% 05/04/14 240,984 224,718
===========================================================================================
1,348,027
===========================================================================================
INDUSTRIAL MACHINERY-1.04%
Gleason Corp., First Lien Term Loan 2.00-2.38% 06/30/13 123,749 117,561
- -------------------------------------------------------------------------------------------
Itron Inc., Term Loan 4.02% 04/18/14 116,064 115,230
- -------------------------------------------------------------------------------------------
Pro Mach, Inc., Term Loan 2.52% 12/14/11 558,914 497,433
- -------------------------------------------------------------------------------------------
Rexnord Corp.
Add on Term Loan B2 2.56% 07/19/13 94,861 84,901
- -------------------------------------------------------------------------------------------
Sr. Unsec. Term Loan 7.67% 03/01/13 2,546,215 1,276,290
- -------------------------------------------------------------------------------------------
Term Loan B 2.81-3.06% 07/19/13 2,082,062 1,899,882
===========================================================================================
3,991,297
===========================================================================================
INSURANCE BROKERS-0.15%
Swett & Crawford Group, Inc. (The)
First Lien Term Loan 2.51% 04/03/14 382,203 256,076
- -------------------------------------------------------------------------------------------
Second Lien Term Loan 5.76% 10/03/14 105,200 44,710
- -------------------------------------------------------------------------------------------
USI Holdings Corp., Term Loan B 3.35% 05/05/14 319,349 276,770
===========================================================================================
577,556
===========================================================================================
INTEGRATED TELECOMMUNICATION SERVICES-0.37%
Cavalier Telephone Inc., Term Loan
B 10.50% 12/31/12 930,928 535,284
- -------------------------------------------------------------------------------------------
Integra Telecom, Inc., Term Loan B 10.50% 08/31/13 302,610 296,558
- -------------------------------------------------------------------------------------------
PAETEC Communications, Inc.
Incremental Add On Term Loan 2.76% 02/28/13 155,092 146,174
- -------------------------------------------------------------------------------------------
Term Loan 2.76% 02/28/13 454,043 427,936
===========================================================================================
1,405,952
===========================================================================================
INTERNET SOFTWARE & SERVICES-0.38%
Language Line LLC, Term Loan B1 3.85% 06/10/11 727,895 716,977
- -------------------------------------------------------------------------------------------
Network Solutions, LLC, Term Loan B 2.77-3.10% 03/07/14 827,863 720,244
===========================================================================================
1,437,221
===========================================================================================
</Table>
See accompanying Notes to Financial Statements which are an integral part of the
financial statements.
18 AIM FLOATING RATE FUND
<Table>
<Caption>
INTEREST MATURITY PRINCIPAL
RATE DATE AMOUNT VALUE
- -------------------------------------------------------------------------------------------
INVESTMENT BANKING & BROKERAGE-0.15%
Gartmore Investment Ltd., U.S. Term
Loan 2.50% 05/11/14 $ 859,799 $ 554,571
===========================================================================================
IT CONSULTING & OTHER SERVICES-1.88%
Brocade Communications Systems,
Inc., Term Loan 7.00% 10/07/13 4,131,943 4,128,513
- -------------------------------------------------------------------------------------------
SunGuard Data Systems Inc.
U.S. Term Loan A 2.03% 02/28/14 38,840 36,370
- -------------------------------------------------------------------------------------------
U.S. Term Loan B 3.95-4.09% 02/28/16 1,041,698 1,005,895
- -------------------------------------------------------------------------------------------
U.S. Term Loan C 6.75% 02/28/14 2,000,000 1,990,000
===========================================================================================
7,160,778
===========================================================================================
LEISURE FACILITIES-3.10%
24 Hour Fitness Worldwide Inc.,
Term Loan B 2.77-3.08% 06/08/12 1,257,750 1,094,243
- -------------------------------------------------------------------------------------------
AMF Group
First Lien Term Loan B 2.76-3.15% 06/08/13 1,423,969 1,176,198
- -------------------------------------------------------------------------------------------
Second Lien Term Loan 6.53% 12/08/13 177,143 92,114
- -------------------------------------------------------------------------------------------
Greektown Casino LLC
DIP Delay Draw Term Loan A 16.75% 12/31/09 1,856,306 1,860,947
- -------------------------------------------------------------------------------------------
DIP Revolving Credit Loan 16.75% 12/31/09 234,909 230,211
- -------------------------------------------------------------------------------------------
DIP Term Loan A1(f) 0% 12/31/09 272,472 272,472
- -------------------------------------------------------------------------------------------
DIP Term Loan A1 9.75% 12/31/09 195,116 195,116
- -------------------------------------------------------------------------------------------
DIP Term Loan B1(f) 0% 12/31/09 251,779 252,408
- -------------------------------------------------------------------------------------------
DIP Term Loan B1 9.75% 12/31/09 103,955 104,215
- -------------------------------------------------------------------------------------------
Six Flags Inc., Term Loan 2.60-2.85% 04/30/15 2,810,438 2,719,099
- -------------------------------------------------------------------------------------------
Regal Entertainment Group, Term
Loan B 4.35% 10/27/13 2,256,567 2,237,521
- -------------------------------------------------------------------------------------------
Universal City Development
Partners, Term Loan B 6.00% 06/09/11 1,636,132 1,599,319
===========================================================================================
11,833,863
===========================================================================================
LEISURE PRODUCTS-2.64%
Cinemark USA, Inc., Term Loan 2.02-2.21% 10/05/13 1,704,438 1,637,163
- -------------------------------------------------------------------------------------------
Golden Nugget, Inc., Second Lien
Term Loan 3.52% 12/31/14 214,000 89,880
- -------------------------------------------------------------------------------------------
Panavision Inc., Second Lien Term
Loan 7.85-7.99% 03/30/12 9,500 5,938
- -------------------------------------------------------------------------------------------
Sabre Holdings Corp., Term Loan 2.53-2.74% 09/30/14 5,120,742 4,188,511
- -------------------------------------------------------------------------------------------
Travelport Ltd.
U.S. Syn LOC 3.10% 08/23/13 307,354 275,466
- -------------------------------------------------------------------------------------------
U.S. Term Loan B 2.76-3.10% 08/23/13 1,692,646 1,517,034
- -------------------------------------------------------------------------------------------
True Temper Sports Inc.
Add On Term Loan(d) 8.00% 06/30/11 104,000 20,800
- -------------------------------------------------------------------------------------------
Term Loan 7.50% 03/15/11 3,137,259 2,352,944
===========================================================================================
10,087,736
===========================================================================================
MARINE-0.08%
US Shipping LLC, Term Loan(d) 4.50% 08/06/12 571,757 291,596
===========================================================================================
MARINE PORTS & SERVICES-0.08%
Fleetcor Technologies, Inc.
Tranche 1 2.55% 04/30/13 187,969 173,401
- -------------------------------------------------------------------------------------------
Tranche 2 2.55% 04/30/13 154,221 142,269
===========================================================================================
315,670
===========================================================================================
</Table>
See accompanying Notes to Financial Statements which are an integral part of the
financial statements.
19 AIM FLOATING RATE FUND
<Table>
<Caption>
INTEREST MATURITY PRINCIPAL
RATE DATE AMOUNT VALUE
- -------------------------------------------------------------------------------------------
METAL & GLASS CONTAINERS-1.68%
Berry Plastics Corp., Term Loan C 2.27% 04/03/15 $ 3,275,265 $ 2,766,845
- -------------------------------------------------------------------------------------------
Graham Packaging Company, L.P.
Term Loan B 2.56% 10/07/11 267,734 260,908
- -------------------------------------------------------------------------------------------
Term Loan C 6.75% 04/05/14 2,724,752 2,724,752
- -------------------------------------------------------------------------------------------
MAUSER Corp.
Term Loan B2 2.64% 06/13/15 500,000 332,500
- -------------------------------------------------------------------------------------------
Term Loan C2 2.89% 06/13/16 500,000 331,250
===========================================================================================
6,416,255
===========================================================================================
MOVIES & ENTERTAINMENT-1.59%
Alpha III
Term Loan B1 2.51% 12/31/13 2,240,571 1,884,880
- -------------------------------------------------------------------------------------------
Term Loan B2 2.51% 12/31/13 1,513,442 1,273,183
- -------------------------------------------------------------------------------------------
LodgeNet Entertainment Corp., Term
Loan 2.27-2.60% 04/04/14 1,195,653 1,031,251
- -------------------------------------------------------------------------------------------
NEP II, Inc., Term Loan B 2.51% 02/16/14 408,198 380,645
- -------------------------------------------------------------------------------------------
Zuffa LLC, Term Loan 2.31% 06/19/15 1,670,197 1,489,816
===========================================================================================
6,059,775
===========================================================================================
OIL & GAS DRILLING-1.09%
Niska Gas Storage Canada ULC
Canada Term Loan 2.02% 05/13/13 276,799 262,037
- -------------------------------------------------------------------------------------------
Delay Draw Term Loan 2.02% 05/13/13 19,307 18,277
- -------------------------------------------------------------------------------------------
U.S. Term Loan 2.02% 05/13/13 28,502 26,982
- -------------------------------------------------------------------------------------------
Ram Energy Inc., Term Loan 12.75% 11/28/12 731,325 592,373
- -------------------------------------------------------------------------------------------
Resolute Aneth, LLC, Second Lien
Term Loan 5.75% 06/26/13 541,176 460,000
- -------------------------------------------------------------------------------------------
Venoco, Inc., Second Lien Term Loan 4.31% 05/08/14 3,578,798 2,791,463
===========================================================================================
4,151,132
===========================================================================================
OIL & GAS EQUIPMENT & SERVICES-0.42%
CCS Corp.
Delay Draw Term Loan(f) 0% 11/14/14 971,617 738,429
- -------------------------------------------------------------------------------------------
Term Loan B 3.26% 11/14/14 771,549 586,377
- -------------------------------------------------------------------------------------------
Sem Group L.P., U.S. Term Loan
B2(d) 4.90% 03/16/11 333,621 211,849
- -------------------------------------------------------------------------------------------
Targa Resources, Inc.
Syn LOC 0.47% 10/31/12 26,247 25,779
- -------------------------------------------------------------------------------------------
Term Loan 2.26-2.60% 10/31/12 28,928 28,411
===========================================================================================
1,590,845
===========================================================================================
OIL & GAS REFINING & MARKETING-0.66%
Western Refining, Inc., LOC 10.75% 06/15/14 2,750,000 2,536,875
===========================================================================================
OIL & GAS STORAGE & TRANSPORTATION-0.47%
Energy Transfer Equity, L.P., Term
Loan B 2.21% 02/08/12 1,849,584 1,802,420
===========================================================================================
OTHER DIVERSIFIED FINANCIAL SERVICES-0.03%
Conseco, Inc., Term Loan 6.50% 10/10/13 163,992 123,609
===========================================================================================
</Table>
See accompanying Notes to Financial Statements which are an integral part of the
financial statements.
20 AIM FLOATING RATE FUND
<Table>
<Caption>
INTEREST MATURITY PRINCIPAL
RATE DATE AMOUNT VALUE
- -------------------------------------------------------------------------------------------
PACKAGED FOODS & MEATS-1.76%
Birds Eye Foods Inc., Term Loan B 2.04-2.35% 03/22/13 $ 171,647 $ 167,356
- -------------------------------------------------------------------------------------------
Dole Foods Co., Inc.
Prefunded LOC 0.51% 04/12/13 683,477 686,573
- -------------------------------------------------------------------------------------------
Term Loan B 8.00% 04/12/13 1,231,666 1,237,246
- -------------------------------------------------------------------------------------------
Term Loan C 8.00% 04/12/13 4,615,203 4,636,110
===========================================================================================
6,727,285
===========================================================================================
PAPER PACKAGING-0.87%
Smurfit-Stone Container Corp.
Canadian Revolver Credit Loan(e) -- 11/01/09 285,715 271,252
- -------------------------------------------------------------------------------------------
DIP Revolver Credit Loan(f) 0% 01/28/10 1,050,000 1,029,872
- -------------------------------------------------------------------------------------------
DIP Revolver Credit Loan 10.00% 01/28/10 386,767 388,700
- -------------------------------------------------------------------------------------------
LOC(e) -- 11/01/10 172,907 164,154
- -------------------------------------------------------------------------------------------
Term Loan B(e) -- 11/01/11 196,772 186,812
- -------------------------------------------------------------------------------------------
Term Loan C(e) -- 11/01/11 370,884 352,110
- -------------------------------------------------------------------------------------------
Term Loan C1(e) -- 11/01/11 112,135 106,458
- -------------------------------------------------------------------------------------------
U.S. Revolver Credit Loan(e) -- 11/01/09 861,587 817,974
===========================================================================================
3,317,332
===========================================================================================
PAPER PRODUCTS-0.02%
Xerium S.A., U.S. Term Loan 6.10% 05/18/12 87,157 59,267
===========================================================================================
PERSONAL PRODUCTS-1.54%
American Safety Razor Co.
Second Lien Term Loan 6.52% 01/31/14 183,000 142,740
- -------------------------------------------------------------------------------------------
Term Loan 2.52-2.74% 07/31/13 200,538 186,500
- -------------------------------------------------------------------------------------------
Hanesbrands Inc.
First Lien Term Loan B(e) -- 09/05/13 3,000,000 3,006,750
- -------------------------------------------------------------------------------------------
First Lien Term Loan B 5.02-5.25% 09/05/13 1,090,747 1,093,201
- -------------------------------------------------------------------------------------------
Second Lien Term Loan 4.25% 03/05/14 91,787 87,504
- -------------------------------------------------------------------------------------------
HVHC, Inc., Term Loan B 2.85% 08/01/13 1,009,124 958,668
- -------------------------------------------------------------------------------------------
Topps Company Inc. (The), Term Loan
B 3.03% 10/12/14 553,542 387,479
===========================================================================================
5,862,842
===========================================================================================
PHARMACEUTICALS-1.36%
Nycomed US Inc.
Term Loan B2 2.85% 12/29/14 2,750,000 2,506,240
- -------------------------------------------------------------------------------------------
Term Loan C2 3.60% 12/29/15 2,750,000 2,519,385
- -------------------------------------------------------------------------------------------
Quintiles Transnational Corp.
Second Lien Term Loan 4.26% 03/31/14 74,764 70,278
- -------------------------------------------------------------------------------------------
Term Loan B 2.26-2.60% 03/31/13 103,253 97,212
===========================================================================================
5,193,115
===========================================================================================
PUBLISHING-5.50%
American Media, Inc., Term Loan B 10.00% 01/30/13 3,962,240 3,372,856
- -------------------------------------------------------------------------------------------
CanWest MediaWorks Inc., Term Loan
B 4.75% 07/13/14 112,167 59,449
- -------------------------------------------------------------------------------------------
Caribe Information Investment Inc.,
Term Loan 2.52-2.53% 03/31/13 73,850 44,310
- -------------------------------------------------------------------------------------------
Dex Media West LLC, Term Loan B 7.00% 10/24/14 2,389,761 2,048,623
- -------------------------------------------------------------------------------------------
</Table>
See accompanying Notes to Financial Statements which are an integral part of the
financial statements.
21 AIM FLOATING RATE FUND
<Table>
<Caption>
INTEREST MATURITY PRINCIPAL
RATE DATE AMOUNT VALUE
- -------------------------------------------------------------------------------------------
PUBLISHING-(CONTINUED)
Endurance Business Media, Inc.
Second Lien Term Loan(d) 9.25% 01/26/14 $ 59,090 $ 17,875
- -------------------------------------------------------------------------------------------
Term Loan(d) 4.75% 07/26/13 114,191 85,643
- -------------------------------------------------------------------------------------------
F & W Publications, Inc., Second
Lien Term Loan(d) 6.50% 08/05/13 357,143 17,857
- -------------------------------------------------------------------------------------------
Gatehouse Media, Inc.
Delay Draw Term Loan 2.27-2.28% 08/28/14 1,070,528 290,381
- -------------------------------------------------------------------------------------------
Term Loan 2.53% 08/28/14 24,385 6,614
- -------------------------------------------------------------------------------------------
Term Loan B 2.27% 08/28/14 4,147,009 1,124,876
- -------------------------------------------------------------------------------------------
Getty Images, Inc.
Acquisition Term Loan(e) -- 07/02/15 988,127 991,833
- -------------------------------------------------------------------------------------------
Acquisition Term Loan 6.25% 07/02/15 2,223,569 2,231,908
- -------------------------------------------------------------------------------------------
Hanley Wood LLC, Term Loan 2.52-2.54% 03/08/14 325,050 132,052
- -------------------------------------------------------------------------------------------
Idearc, Inc. (Verizon), Term Loan
B(d) 6.25% 11/17/14 5,820,268 2,620,750
- -------------------------------------------------------------------------------------------
Local Insight Regatta Holdings,
Inc., Term Loan 7.75% 04/23/15 3,155,324 2,271,833
- -------------------------------------------------------------------------------------------
MediaNews Group, Term Loan B 4.76% 12/30/10 1,144,980 228,996
- -------------------------------------------------------------------------------------------
Reader's Digest Association Inc.,
Term Loan B 4.52-7.00% 03/02/14 1,361,871 539,982
- -------------------------------------------------------------------------------------------
R.H. Donnelley Corp., Term Loan 6.75% 06/30/11 1,994,792 1,627,750
- -------------------------------------------------------------------------------------------
Tribune Company
DIP Revolver Credit Loan(f) 0% 04/10/10 733,333 711,333
- -------------------------------------------------------------------------------------------
DIP Revolver Credit Loan 9.00% 04/10/10 266,667 258,667
- -------------------------------------------------------------------------------------------
DIP Term Loan 9.00% 04/10/10 2,000,000 2,010,000
- -------------------------------------------------------------------------------------------
Yell Group Ltd., Term Loan B1 3.26% 10/27/12 429,750 286,704
===========================================================================================
20,980,292
===========================================================================================
SEMICONDUCTORS-1.21%
Freescale Semiconductor, Inc., Term
Loan B 2.03% 12/02/13 6,158,556 4,606,600
===========================================================================================
SPECIALIZED CONSUMER SERVICES-1.26%
Jacobson Corp., Term Loan B 2.76% 06/19/14 322,420 266,802
- -------------------------------------------------------------------------------------------
LPL Holdings Inc., Term Loan D 2.01-2.35% 06/28/13 309,129 286,330
- -------------------------------------------------------------------------------------------
ServiceMaster Company (The)
Delay Draw Term Loan 2.77% 07/24/14 483,277 413,419
- -------------------------------------------------------------------------------------------
Term Loan B 2.77-3.15% 07/24/14 4,490,744 3,841,607
===========================================================================================
4,808,158
===========================================================================================
SPECIALIZED FINANCE-0.29%
Citco Group Ltd. (The), Term Loan B 2.85% 06/30/14 137,289 96,789
- -------------------------------------------------------------------------------------------
E.A.Viner International Co., First
Lien Term Loan B 5.10% 07/31/13 28,393 22,715
- -------------------------------------------------------------------------------------------
Harland Clarke Holdings Corp., Term
Loan B 2.76-3.10% 06/30/14 1,049,363 855,892
- -------------------------------------------------------------------------------------------
Nuveen Investments, LLC, Term Loan 3.49-3.50% 11/13/14 154,186 124,968
===========================================================================================
1,100,364
===========================================================================================
</Table>
See accompanying Notes to Financial Statements which are an integral part of the
financial statements.
22 AIM FLOATING RATE FUND
<Table>
<Caption>
INTEREST MATURITY PRINCIPAL
RATE DATE AMOUNT VALUE
- -------------------------------------------------------------------------------------------
SPECIALTY CHEMICALS-3.29%
Cognis Deutschland, Term Loan C 2.62% 09/15/13 $ 799,515 $ 678,589
- -------------------------------------------------------------------------------------------
Hexion Specialty Chemicals, Inc.
Credit Linked Deposit 0.21% 05/05/13 89,838 65,919
- -------------------------------------------------------------------------------------------
Revolver Credit 2.88% 05/31/11 381,000 263,987
- -------------------------------------------------------------------------------------------
Term Loan C1(e) -- 05/05/13 1,810,015 1,645,290
- -------------------------------------------------------------------------------------------
Term Loan C1 2.88% 05/05/13 3,997,509 2,766,802
- -------------------------------------------------------------------------------------------
Term Loan C2(e) -- 05/05/13 470,441 357,404
- -------------------------------------------------------------------------------------------
Term Loan C2 2.88% 05/05/13 791,118 601,028
- -------------------------------------------------------------------------------------------
Term Loan C4 2.63-2.75% 05/05/13 628,715 476,252
- -------------------------------------------------------------------------------------------
Term Loan C5 2.88% 05/05/13 113,761 83,472
- -------------------------------------------------------------------------------------------
Term Loan C7 2.88% 05/05/13 1,223,040 897,406
- -------------------------------------------------------------------------------------------
Huntsman ICI Chemicals LLC, Term
Loan B 2.01% 04/21/14 4,931,707 4,584,712
- -------------------------------------------------------------------------------------------
MacDermid Inc., Term Loan B 2.26% 04/12/14 182,516 151,488
===========================================================================================
12,572,349
===========================================================================================
SPECIALTY STORES-0.36%
Eye Care Centers of America, Inc.,
Term Loan 2.77-3.16% 03/01/12 260,977 241,404
- -------------------------------------------------------------------------------------------
Mattress Firm, Term Loan B 2.52% 01/18/14 307,602 180,461
- -------------------------------------------------------------------------------------------
Michaels Stores, Inc., Term Loan 2.56% 10/31/13 997,436 879,409
- -------------------------------------------------------------------------------------------
Savers, Inc.
Canada Term Loan 3.03% 08/11/12 37,060 35,393
- -------------------------------------------------------------------------------------------
U.S. Term Loan B1 3.03% 08/11/12 40,549 38,724
===========================================================================================
1,375,391
===========================================================================================
SYSTEMS SOFTWARE-1.63%
Dealer Comp-rey
First Lien Term Loan 2.26% 10/26/12 3,790,857 3,304,376
- -------------------------------------------------------------------------------------------
Second Lien Term Loan 5.76% 10/26/13 1,687,408 1,223,371
- -------------------------------------------------------------------------------------------
SkillSoft PLC, Term Loan B 4.10% 05/14/13 141,382 132,634
- -------------------------------------------------------------------------------------------
Verint Systems, Inc., Term Loan 3.52% 05/25/14 1,729,871 1,542,474
===========================================================================================
6,202,855
===========================================================================================
TECHNOLOGY DISTRIBUTORS-0.06%
Macrovision Corp., Term Loan B 6.00% 05/02/13 220,298 219,747
===========================================================================================
TEXTILES-0.10%
Gold ToeMoretz, LLC, First Lien
Term Loan 8.50% 10/30/13 498,713 375,281
===========================================================================================
TRADING COMPANIES & DISTRIBUTORS-0.01%
Brenntag AG
Term Loan B2 2.27% 01/20/14 19,297 18,188
- -------------------------------------------------------------------------------------------
U.S. Acquired Term Loan 2.27-2.99% 01/20/14 1,543 1,443
===========================================================================================
19,631
===========================================================================================
WIRELESS TELECOMMUNICATION SERVICES-3.87%
Asurion Corp., First Lien Term Loan 3.28% 07/03/14 5,466,667 5,223,345
- -------------------------------------------------------------------------------------------
FairPoint Communications, Inc.,
Term Loan B 5.00% 03/31/15 2,922,715 2,211,209
- -------------------------------------------------------------------------------------------
</Table>
See accompanying Notes to Financial Statements which are an integral part of the
financial statements.
23 AIM FLOATING RATE FUND
<Table>
<Caption>
INTEREST MATURITY PRINCIPAL
RATE DATE AMOUNT VALUE
- -------------------------------------------------------------------------------------------
WIRELESS TELECOMMUNICATION SERVICES-(CONTINUED)
Global Tel*Link
Acquisition Syn Deposit
Commitment 2.90% 02/14/13 $ 100,347 $ 97,337
- -------------------------------------------------------------------------------------------
Acquisition Term Loan 9.00% 02/14/13 131,055 127,123
- -------------------------------------------------------------------------------------------
Syn LOC 2.90% 02/14/13 25,086 24,334
- -------------------------------------------------------------------------------------------
Term Loan 9.00% 02/14/13 257,415 249,692
- -------------------------------------------------------------------------------------------
MetroPCS Communications, Inc., Term
Loan B 2.56-2.75% 11/03/13 1,791,799 1,686,155
- -------------------------------------------------------------------------------------------
NuVox, Inc., Term Loan 3.56% 05/31/14 1,701,011 1,590,445
- -------------------------------------------------------------------------------------------
RCN Corp.
Add on Term Loan 2.88% 05/25/14 1,486,962 1,390,309
- -------------------------------------------------------------------------------------------
Add on Term Loan B 2.88% 05/25/14 1,672,766 1,564,036
- -------------------------------------------------------------------------------------------
Virgin Mobile USA, Term Loan 6.10% 12/14/10 611,556 598,560
===========================================================================================
14,762,545
===========================================================================================
Total Senior Secured Floating
Rate Interests (Cost
$393,676,880) 371,188,492
===========================================================================================
FLOATING RATE NOTES-1.36%
COMMUNICATION EQUIPMENT-1.03%
Qwest Corp., Sr. Unsec. Unsub.
Floating Rate Global Notes(g) 3.88% 06/15/13 4,250,000 3,937,625
===========================================================================================
HEAVY ELECTRICAL EQUIPMENT-0.11%
Sanmina-SCI Corp., Sr. Unsec. Gtd.
Floating Rate Notes(g)(h) 3.38% 06/15/10 437,000 428,260
===========================================================================================
METAL & GLASS CONTAINERS-0.19%
Berry Plastics Holding Corp., Sr.
Sec. Gtd. Sub. Floating Rate
Global Notes(g) 4.50% 09/15/14 996,000 727,080
===========================================================================================
PAPER PACKAGING-0.03%
Verso Paper Holdings, LLC
Series B, Sr. Sec. Gtd. Floating
Rate Global Notes(g) 4.23% 08/01/14 228,000 125,400
===========================================================================================
Total Floating Rate Notes
(Cost $5,673,123) 5,218,365
===========================================================================================
<Caption>
SHARES
DOMESTIC COMMON STOCKS-1.04%
BUILDING PRODUCTS-0.56%
Masonite Worldwide Holdings
(Canada)(j) 53,093 2,147,612
- -------------------------------------------------------------------------------------------
United Subcontractors, Inc.(j) 4,583 0
===========================================================================================
2,147,612
===========================================================================================
ENVIRONMENTAL & FACILITIES SERVICES-0.48%
Safety-Kleen Holdco, Inc.
(Acquired 12/24/03; Cost
$2,062,077)(h)(i)(j) 150,812 1,809,744
===========================================================================================
Total Domestic Common Stocks
(Cost $4,953,488) 3,957,356
===========================================================================================
MONEY MARKET FUNDS-7.63%
Liquid Assets
Portfolio-Institutional Class(k) 14,552,463 14,552,463
- -------------------------------------------------------------------------------------------
Premier Portfolio-Institutional
Class(k) 14,552,463 14,552,463
===========================================================================================
Total Money Market Funds (Cost
$29,104,926) 29,104,926
===========================================================================================
TOTAL INVESTMENTS-107.26% (Cost
$433,408,417) 409,469,139
===========================================================================================
OTHER ASSETS LESS
LIABILITIES-(7.26)% (27,723,251)
===========================================================================================
NET ASSETS-100.00% $381,745,888
___________________________________________________________________________________________
===========================================================================================
</Table>
See accompanying Notes to Financial Statements which are an integral part of the
financial statements.
24 AIM FLOATING RATE FUND
Investment Abbreviations:
<Table>
DIP - Debtor-in-possession
Gtd. - Guaranteed
LOC - Letter of Credit
NM - New Money
PIK - Payment in Kind
REIT - Real Estate Investment Trust
Sec. - Secured
Sr. - Senior
Sub. - Subordinated
Syn LOC - Synthetic Letter of Credit
Unsec. - Unsecured
Unsub. - Unsubordinated
</Table>
Notes to Schedule of Investments:
(a) Industry classifications used in this report are generally according to
the Global Industry Classification Standard, which was developed by and is
the exclusive property and a service mark of MSCI Inc. and Standard &
Poor's.
(b) Senior secured corporate loans and senior secured debt securities are, at
present, may not be readily marketable, not registered under the
Securities Act of 1933, as amended and may be subject to contractual and
legal restrictions on sale. Senior secured corporate loans and senior
secured debt securities in the Fund's portfolio generally have variable
rates which adjust to a base, such as the London Inter-Bank Offered Rate
("LIBOR"), on set dates, typically every 30 days but not greater than one
year; and/or have interest rates that float at a margin above a widely
recognized base lending rate such as the Prime Rate of a designated U.S.
bank.
(c) Senior secured floating rate interests often require prepayments from
excess cash flow or permit the borrower to repay at its election. The
degree to which borrowers repay, whether as a contractual requirement or
at their election, cannot be predicted with accuracy. As a result, the
actual remaining maturity may be substantially less than the stated
maturities shown. However, it is anticipated that the senior secured
floating rate interests will have an expected average life of three to
five years.
(d) Defaulted security. Currently, the issuer is in default with respect to
interest payments. The aggregate value of these securities at August 31,
2009 was $4,285,448 which represented 1.12% of the Fund's Net Assets.
(e) This floating rate interest will settle after August 31, 2009, at which
time the interest rate will be determined.
(f) All or a portion of this holding is subject to unfunded loan commitments.
See Note 7.
(g) Interest rate is redetermined periodically. Rate shown is the rate in
effect on August 31, 2009.
(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 aggregate value of these securities
at August 31, 2009 was $2,238,004 which represented 0.59% of the Fund's
Net Assets.
(i) Acquired as a part of a bankruptcy restructuring.
(j) Non-income producing security.
(k) The money market fund and the Fund are affiliated by having the same
investment advisor.
See accompanying Notes to Financial Statements which are an integral part of the
financial statements.
25 AIM FLOATING RATE FUND
STATEMENT OF ASSETS AND LIABILITIES
August 31, 2009
<Table>
ASSETS:
Investments, at value (Cost $404,303,491) $380,364,213
- --------------------------------------------------------------------------------
Investments in affiliated money market funds, at value and cost 29,104,926
================================================================================
Total investments, at value (Cost $433,408,417) 409,469,139
================================================================================
Cash 12,336
- --------------------------------------------------------------------------------
Receivables for:
Investments sold 5,338,851
- --------------------------------------------------------------------------------
Fund shares sold 1,617,497
- --------------------------------------------------------------------------------
Dividends and interest 1,543,989
- --------------------------------------------------------------------------------
Investment for trustee deferred compensation and retirement plans 14,385
- --------------------------------------------------------------------------------
Other assets 64,088
================================================================================
Total assets 418,060,285
________________________________________________________________________________
================================================================================
LIABILITIES:
Payables for:
Investments purchased 34,831,355
- --------------------------------------------------------------------------------
Fund shares reacquired 715,906
- --------------------------------------------------------------------------------
Dividends 414,493
- --------------------------------------------------------------------------------
Accrued fees to affiliates 156,149
- --------------------------------------------------------------------------------
Accrued other operating expenses 156,775
- --------------------------------------------------------------------------------
Trustee deferred compensation and retirement plans 39,719
================================================================================
Total liabilities 36,314,397
================================================================================
Net assets applicable to shares outstanding $381,745,888
________________________________________________________________________________
================================================================================
NET ASSETS CONSIST OF:
Shares of beneficial interest $471,474,938
- --------------------------------------------------------------------------------
Undistributed net investment income 209,754
- --------------------------------------------------------------------------------
Undistributed net realized gain (loss) (65,999,526)
- --------------------------------------------------------------------------------
Unrealized appreciation (depreciation) (23,939,278)
================================================================================
$381,745,888
________________________________________________________________________________
================================================================================
NET ASSETS:
Class A $218,448,468
________________________________________________________________________________
================================================================================
Class C $103,974,985
________________________________________________________________________________
================================================================================
Class R $ 426,622
________________________________________________________________________________
================================================================================
Class Y $ 20,176,273
________________________________________________________________________________
================================================================================
Institutional Class $ 38,719,540
________________________________________________________________________________
================================================================================
SHARES OUTSTANDING, $0.01 PAR VALUE PER SHARE, UNLIMITED NUMBER OF SHARES
AUTHORIZED:
Class A 30,827,050
________________________________________________________________________________
================================================================================
Class C 14,737,421
________________________________________________________________________________
================================================================================
Class R 60,090
________________________________________________________________________________
================================================================================
Class Y 2,852,640
________________________________________________________________________________
================================================================================
Institutional Class 5,462,379
________________________________________________________________________________
================================================================================
Class A:
Net asset value per share $ 7.09
- --------------------------------------------------------------------------------
Maximum offering price per share
(Net asset value of $7.09 divided by 97.50%) $ 7.27
________________________________________________________________________________
================================================================================
Class C:
Net asset value and offering price per share $ 7.06
________________________________________________________________________________
================================================================================
Class R:
Net asset value and offering price per share $ 7.10
________________________________________________________________________________
================================================================================
Class Y:
Net asset value and offering price per share $ 7.07
________________________________________________________________________________
================================================================================
Institutional Class:
Net asset value and offering price per share $ 7.09
________________________________________________________________________________
================================================================================
</Table>
See accompanying Notes to Financial Statements which are an integral part of the
financial statements.
26 AIM FLOATING RATE FUND
STATEMENT OF OPERATIONS
For the year ended August 31, 2009
<Table>
INVESTMENT INCOME:
Interest $ 18,924,514
- ------------------------------------------------------------------------------------------------
Dividends from affiliated money market funds 170,490
================================================================================================
Total investment income 19,095,004
================================================================================================
EXPENSES:
Advisory fees 1,603,455
- ------------------------------------------------------------------------------------------------
Administrative services fees 95,779
- ------------------------------------------------------------------------------------------------
Custodian fees 36,578
- ------------------------------------------------------------------------------------------------
Distribution fees:
Class A 356,123
- ------------------------------------------------------------------------------------------------
Class C 470,738
- ------------------------------------------------------------------------------------------------
Class R 1,574
- ------------------------------------------------------------------------------------------------
Line of credit expenses 39,576
- ------------------------------------------------------------------------------------------------
Transfer agent fees -- A, C, R and Y 259,928
- ------------------------------------------------------------------------------------------------
Transfer agent fees -- Institutional 4,066
- ------------------------------------------------------------------------------------------------
Trustees' and officers' fees and benefits 24,918
- ------------------------------------------------------------------------------------------------
Other 362,101
================================================================================================
Total expenses 3,254,836
================================================================================================
Less: Fees waived, expenses reimbursed and expense offset arrangement(s) (32,746)
================================================================================================
Net expenses 3,222,090
================================================================================================
Net investment income 15,872,914
================================================================================================
REALIZED AND UNREALIZED GAIN (LOSS) FROM:
Net realized gain (loss) from:
Investment securities (13,290,881)
- ------------------------------------------------------------------------------------------------
Foreign currencies 76
================================================================================================
(13,290,805)
================================================================================================
Change in net unrealized appreciation of investment securities 6,213,894
================================================================================================
Net realized and unrealized gain (loss) (7,076,911)
================================================================================================
Net increase in net assets resulting from operations $ 8,796,003
________________________________________________________________________________________________
================================================================================================
</Table>
See accompanying Notes to Financial Statements which are an integral part of the
financial statements.
27 AIM FLOATING RATE FUND
STATEMENT OF CHANGES IN NET ASSETS
For the years ended August 31, 2009 and 2008
<Table>
<Caption>
2009 2008
- --------------------------------------------------------------------------------------------------------
OPERATIONS:
Net investment income $ 15,872,914 $ 17,822,527
- --------------------------------------------------------------------------------------------------------
Net realized gain (loss) (13,290,805) (8,789,508)
- --------------------------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) 6,213,894 (15,023,407)
========================================================================================================
Net increase (decrease) in net assets resulting from operations 8,796,003 (5,990,388)
========================================================================================================
DISTRIBUTIONS TO SHAREHOLDERS FROM NET INVESTMENT INCOME:
Class A (9,200,242) (10,276,946)
- --------------------------------------------------------------------------------------------------------
Class C (3,733,419) (4,417,057)
- --------------------------------------------------------------------------------------------------------
Class R (20,258) (15,598)
- --------------------------------------------------------------------------------------------------------
Class Y (334,392) --
- --------------------------------------------------------------------------------------------------------
Institutional Class (2,509,144) (3,265,088)
========================================================================================================
Total distributions from net investment income (15,797,455) (17,974,689)
========================================================================================================
SHARE TRANSACTIONS-NET:
Class A 77,804,579 (45,207,351)
- --------------------------------------------------------------------------------------------------------
Class C 37,224,086 (6,368,997)
- --------------------------------------------------------------------------------------------------------
Class R 128,603 68,270
- --------------------------------------------------------------------------------------------------------
Class Y 18,275,977 --
- --------------------------------------------------------------------------------------------------------
Institutional Class (6,056,700) 6,499,785
========================================================================================================
Net increase (decrease) in net assets resulting from share
transactions 127,376,545 (45,008,293)
========================================================================================================
Net increase (decrease) in net assets 120,375,093 (68,973,370)
========================================================================================================
NET ASSETS:
Beginning of year 261,370,795 330,344,165
========================================================================================================
End of year (includes undistributed net investment income of $209,754
and $130,711, respectively) $381,745,888 $261,370,795
________________________________________________________________________________________________________
========================================================================================================
</Table>
See accompanying Notes to Financial Statements which are an integral part of the
financial statements.
28 AIM FLOATING RATE FUND
STATEMENT OF CASH FLOWS
For the year ended August 31, 2009
<Table>
CASH PROVIDED BY OPERATING ACTIVITIES:
Net increase in net assets resulting from operations $ 8,796,003
================================================================================================
ADJUSTMENTS TO RECONCILE NET INCREASE (DECREASE) IN NET ASSETS TO NET CASH PROVIDED BY (USED IN)
OPERATING ACTIVITIES:
Purchases of investments (242,064,249)
- ------------------------------------------------------------------------------------------------
Proceeds from disposition of investments and principal payments 131,379,777
- ------------------------------------------------------------------------------------------------
Increase in receivables and other assets 295,778
- ------------------------------------------------------------------------------------------------
Amortization of premiums and accretion of discounts on investment securities (3,660,682)
- ------------------------------------------------------------------------------------------------
Increase in accrued expenses and other payables 9,809
- ------------------------------------------------------------------------------------------------
Unrealized appreciation on investment securities (6,213,894)
- ------------------------------------------------------------------------------------------------
Net realized gain (loss) from investment securities 13,290,881
================================================================================================
Net cash provided by (used in) operating activities (98,166,577)
================================================================================================
CASH PROVIDED BY FINANCING ACTIVITIES:
Dividends paid to shareholders (4,095,842)
- ------------------------------------------------------------------------------------------------
Proceeds from shares of beneficial interest sold 220,665,366
- ------------------------------------------------------------------------------------------------
Disbursements from shares of beneficial interest reacquired (105,922,991)
================================================================================================
Net cash provided by financing activities 110,646,533
================================================================================================
Net increase in cash and cash equivalents 12,479,956
================================================================================================
Cash and cash equivalents at beginning of period 16,637,306
================================================================================================
Cash and cash equivalents at end of period $ 29,117,262
================================================================================================
NON-CASH FINANCING ACTIVITIES:
Value of shares of beneficial interest issued in reinvestment of dividends
paid to shareholders 11,586,022
________________________________________________________________________________________________
================================================================================================
Supplemental disclosure of cash flow information:
Cash paid during the year for line of credit expenses was $37,801.
</Table>
NOTES TO FINANCIAL STATEMENTS
August 31, 2009
NOTE 1--SIGNIFICANT ACCOUNTING POLICIES
AIM Floating Rate Fund (the "Fund") is a series portfolio of AIM Counselor
Series Trust (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 seven 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 objectives are to provide a high level of current income
and, secondarily, preservation of capital.
The Fund currently consists of five different classes of shares: Class A,
Class C, Class R, 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 C shares are sold with a CDSC. Class R, Class Y
and Institutional Class shares are sold at net asset value. Under certain
circumstances, Class R shares are subject to a CDSC.
The following is a summary of the significant accounting policies followed by
the Fund in the preparation of its financial statements.
A. SECURITY VALUATIONS -- Senior secured floating rate loans and senior
secured floating rate debt securities are fair valued using an evaluated
quote provided by an independent pricing service. Evaluated quotes
provided by the pricing service may reflect appropriate factors such as
ratings, tranche type, industry, company performance, spread, individual
trading characteristics, institution-size trading in similar groups of
securities and other market data.
Securities, including restricted securities, are valued according to the
following policy. A security listed or traded on an exchange (except
convertible bonds) is valued at its last sales price as of the close of
the customary trading session on the exchange where the security is
principally traded, or lacking any sales on a particular day, the security
may be valued at the closing bid price on that day. Securities traded in
the over-the-counter market (but not securities reported on the NASDAQ
Stock Exchange) are valued based on the prices furnished by independent
pricing services, in which case the securities
29 AIM FLOATING RATE FUND
may be considered fair valued, or by market makers. Each security reported
on the NASDAQ Stock Exchange is valued at the NASDAQ Official Closing
Price ("NOCP") as of the close of the customary trading session on the
valuation date or absent a NOCP, at the closing bid price.
Futures contracts are valued at the final settlement price set by an
exchange on which they are principally traded. Listed options are valued
at the mean between the last bid and the ask prices from the exchange on
which they are principally traded. Options not listed on an exchange are
valued by an independent source at the mean between the last bid and ask
prices. For purposes of determining net asset value per share, futures and
option contracts generally are valued 15 minutes after the close of the
customary trading session of the New York Stock Exchange ("NYSE").
Investments in open-end and closed-end registered investment companies
that do not trade on an exchange are valued at the end of day net asset
value per share. Investments in open-end and closed-end registered
investment companies that trade on an exchange are valued at the last
sales price or official closing price as of the close of the customary
trading session on the exchange where the security is principally traded.
Debt obligations (including convertible bonds) and unlisted equities are
fair valued using an evaluated quote provided by an independent pricing
service. 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, developments related to specific securities, dividend rate,
yield, quality, type of issue, coupon rate, maturity, 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. 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/or principal payments.
Foreign securities (including foreign exchange contracts) are converted
into U.S. dollar amounts using the applicable exchange rates as of the
close of the NYSE. If market quotations are available and reliable for
foreign exchange traded equity securities, the securities will be valued
at the market quotations. Because trading hours for certain foreign
securities end before the close of the NYSE, closing market quotations may
become unreliable. If between the time trading ends on a particular
security and the close of the customary trading session on the NYSE,
events occur that are significant and make the closing price unreliable,
the Fund may fair value the security. If the event is likely to have
affected the closing price of the security, the security will be valued at
fair value in good faith using procedures approved by the Board of
Trustees. Adjustments to closing prices to reflect fair value may also be
based on a screening process of an independent pricing service to indicate
the degree of certainty, based on historical data, that the closing price
in the principal market where a foreign security trades is not the current
value as of the close of the NYSE. Foreign securities meeting the approved
degree of certainty that the price is not reflective of current value will
be priced at the indication of fair value from the independent pricing
service. Multiple factors may be considered by the independent pricing
service in determining adjustments to reflect fair value and may include
information relating to sector indices, American Depositary Receipts and
domestic and foreign index futures. Foreign securities may have additional
risks including exchange rate changes, potential for sharply devalued
currencies and high inflation, political and economical upheaval, the
relative lack of issuer information, relatively low market liquidity and
the potential lack of strict financial and accounting controls and
standards.
Securities for which market prices are not provided by any of the above
methods may be valued based upon quotes furnished by independent sources.
The last bid price may be used to value equity securities and Corporate
Loans. The mean between the last bid and asked prices may be used to value
debt obligations other than Corporate Loans.
Securities for which market quotations 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. Issuer specific events, market trends,
bid/ask quotes of brokers and information providers and other market data
may be reviewed in the course of making a good faith determination of a
security's fair value.
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 transaction
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 the settlement
date. Facility fees received may be amortized over the life of the loan.
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
30 AIM FLOATING RATE FUND
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 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.
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. In addition, the Fund monitors for material events or
transactions that may occur or become known after the period end date and
before the date the financial statements are released to print, which is
generally 45 days from the period end date.
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 may invest all or substantially of its assets in
senior secured floating rate loans, senior secured debt securities or
other securities rated below investment grade. These securities are
generally considered to have speculative characteristics and are subject
to greater risk of loss of principal and interest than higher rated
securities. The value of lower quality debt securities and floating rate
loans can be more volatile due to increased sensitivity to adverse issuer,
political, regulatory, market or economic developments.
The Fund invests in Corporate Loans from U.S. or non-U.S. companies (the
"Borrowers"). The investment of the Fund in a Corporate Loan may take the
form of participation interests or assignments. If the Fund purchases a
participation interest from a syndicate of lenders ("Lenders") or one of
the participants in the syndicate ("Participant"), one or more of which
administers the loan on behalf of all the Lenders (the "Agent Bank"), the
Fund would be required to rely on the Lender that sold the participation
interest not only for the enforcement of the Fund's rights against the
Borrower but also for the receipt and processing of payments due to the
Fund under the Corporate Loans. As such, the Fund is subject to the credit
risk of the Borrower and the Participant. Lenders and Participants
interposed between the Fund and a Borrower, together with Agent Banks, are
referred to as "Intermediate Participants".
J. REDEMPTION FEES -- The Fund has a 2% redemption fee that is to be retained
by the Fund to offset transaction costs and other expenses associated with
short-term redemptions and exchanges. The fee, subject to certain
exceptions, is imposed on certain redemptions or exchanges of shares
within 31 days of purchase. The redemption fee is recorded as an increase
in shareholder capital and is allocated among the share classes based on
the relative net assets of each class.
K. CASH AND CASH EQUIVALENTS -- For the purposes of the Statement of Cash
Flows the Fund defines Cash and Cash Equivalents as cash (including
foreign currency), money market funds and other investments held in lieu
of cash and excludes investments made with cash collateral received.
L. SECURITIES PURCHASED ON A WHEN-ISSUED AND DELAYED DELIVERY BASIS -- The
Fund may purchase and sell interests in Corporate Loans and Corporate Debt
Securities and other portfolio securities on a when-issued and delayed
delivery basis, with payment and delivery scheduled for a future date. No
income accrues to the Fund on such interests or securities in connection
with such transactions prior to the date the Fund actually takes delivery
of such interests or securities. These transactions are subject to market
fluctuations and are subject to the risk that the value at delivery may be
more or less than the trade date purchase price. Although the Fund will
generally purchase these securities with the intention of acquiring such
securities, they may sell such securities prior to the settlement date.
31 AIM FLOATING RATE FUND
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 0.65%
- -------------------------------------------------------------------
Next $4.5 billion 0.60%
- -------------------------------------------------------------------
Next $5 billion 0.575%
- -------------------------------------------------------------------
Over $10 billion 0.55%
___________________________________________________________________
===================================================================
</Table>
Under the terms of a master sub-advisory agreement approved by shareholders of
the Fund between 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).
The Advisor has contractually 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 C, Class R, Class Y
and Institutional Class shares to 1.50%, 2.00%, 1.75%, 1.25% and 1.25% of
average daily net assets, respectively at least through June 30, 2010. 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
or non-routine items; and (v) 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. The
Advisor did not waive fees and/or reimburse expenses during the period under
this expense limitation.
Further, the Advisor has contractually agreed, through at least June 30, 2010,
to waive the advisory fee payable by the Fund in an amount equal to 100% of the
net advisory fees the Advisor receives from the affiliated money market funds on
investments by the Fund of uninvested cash in such affiliated money market
funds.
For the year ended August 31, 2009, the Advisor waived advisory fees of
$30,264.
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
August 31, 2009, Invesco reimbursed expenses of the Fund in the amount of $228.
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 August 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 August 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
C, Class R, 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 C and Class R 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, 0.75% of the average daily
net assets of Class C shares and 0.50% of the average daily net assets of Class
R 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 August 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 August 31, 2009, IADI
advised the Fund that IADI retained $57,809 in front-end sales commissions from
the sale of Class A shares and $3,867, $21,011 and $0 from Class A, Class C and
Class R shares, respectively, 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.
32 AIM FLOATING RATE FUND
NOTE 3--ADDITIONAL VALUATION INFORMATION
Generally Accepted Accounting Principles (GAAP) 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 under
current market conditions. GAAP 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.
The following is a summary of the tiered valuation input levels, as of the end
of the reporting period, August 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>
LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
- -----------------------------------------------------------------------------------------------------------------------------
Equity Securities $31,252,538 $ -- $1,809,744 $ 33,062,282
- -----------------------------------------------------------------------------------------------------------------------------
Corporate Debt Securities -- 374,616,539 1,790,318 376,406,857
=============================================================================================================================
Total Investments $31,252,538 $374,616,539 $3,600,062 $409,469,139
_____________________________________________________________________________________________________________________________
=============================================================================================================================
</Table>
NOTE 4--EXPENSE OFFSET ARRANGEMENT(S)
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 August 31, 2009, the
Fund received credits from this arrangement, which resulted in the reduction of
the Fund's total expenses of $2,254.
NOTE 5--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 August 31, 2009, the Fund paid legal fees of $3,698 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 6--BORROWINGS
The Fund is a party to a committed line of credit facility with a syndicate
administered by JPMorgan Chase Bank. The Fund may borrow up to the lesser of (i)
$10,000,000, or (ii) the limits set by its prospectus for borrowings. The Fund
is charged a commitment fee of 0.07% on the unused balance of the committed
line. Prior to October 27, 2008, the maximum amount available was $50,000,000
and the commitment fee was 0.05%. During the year ended August 31, 2009, the
Fund had average borrowings for the 57 days the borrowings were outstanding of
$2,789,474, with a weighted average interest rate of 1.37% and interest expense
of $5,988.
The Fund is permitted to temporarily carry a negative or overdrawn balance in
its account with State Street Bank and Trust Company, 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.
33 AIM FLOATING RATE FUND
NOTE 7--UNFUNDED LOAN COMMITMENTS
As of August 31, 2009, the Fund had unfunded loan commitments of $7,270,588,
which could be extended at the option of the borrower, pursuant to the following
loan agreements with the following borrowers:
<Table>
<Caption>
UNFUNDED
BORROWER COMMITMENTS
- --------------------------------------------------------------------------------------------------------
CCS Corp. Delay Draw Term Loan $ 738,429
- --------------------------------------------------------------------------------------------------------
Greektown Casino LLC Term Loan 252,408
- --------------------------------------------------------------------------------------------------------
Greektown Casino LLC Term Loan 272,472
- --------------------------------------------------------------------------------------------------------
Ion Media Networks, Inc. Term Loan 136,430
- --------------------------------------------------------------------------------------------------------
LyondellBasell Industries Term Loan 226,917
- --------------------------------------------------------------------------------------------------------
Mediacom Communications Corp. Term Loan 3,026,192
- --------------------------------------------------------------------------------------------------------
New Vision Television Term Loan 159,853
- --------------------------------------------------------------------------------------------------------
Nuance Communications, Inc. Revolver Loan 111,922
- --------------------------------------------------------------------------------------------------------
Pinnacle Foods Group, Inc. (Aurora Foods) Revolver Loan 604,760
- --------------------------------------------------------------------------------------------------------
Stone Container Corp. Term Loan 1,029,872
- --------------------------------------------------------------------------------------------------------
Tribune Company Revolver Loan 711,333
========================================================================================================
$7,270,588
________________________________________________________________________________________________________
========================================================================================================
</Table>
NOTE 8--DISTRIBUTIONS TO SHAREHOLDERS AND TAX COMPONENTS OF NET ASSETS
TAX CHARACTER OF DISTRIBUTIONS TO SHAREHOLDERS PAID DURING THE YEARS ENDED
AUGUST 31, 2009 AND 2008:
<Table>
<Caption>
2009 2008
- --------------------------------------------------------------------------------------------------------
Ordinary income $15,797,455 $17,974,689
________________________________________________________________________________________________________
========================================================================================================
</Table>
TAX COMPONENTS OF NET ASSETS AT PERIOD-END:
<Table>
<Caption>
2009
- ------------------------------------------------------------------------------------------------
Undistributed ordinary income $ 251,083
- ------------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) -- investments (25,351,405)
- ------------------------------------------------------------------------------------------------
Temporary book/tax differences (42,102)
- ------------------------------------------------------------------------------------------------
Capital loss carryforward (57,467,146)
- ------------------------------------------------------------------------------------------------
Post-October deferrals (7,119,480)
- ------------------------------------------------------------------------------------------------
Shares of beneficial interest 471,474,938
================================================================================================
Total net assets $381,745,888
________________________________________________________________________________________________
================================================================================================
</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 wash sales.
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.
34 AIM FLOATING RATE FUND
The Fund has a capital loss carryforward as of August 31, 2009 which expires
as follows:
<Table>
<Caption>
CAPITAL LOSS
EXPIRATION CARRYFORWARD*
- -----------------------------------------------------------------------------------------------
August 31, 2010 $21,273,718
- -----------------------------------------------------------------------------------------------
August 31, 2011 10,298,295
- -----------------------------------------------------------------------------------------------
August 31, 2012 2,745,717
- -----------------------------------------------------------------------------------------------
August 31, 2013 5,482,284
- -----------------------------------------------------------------------------------------------
August 31, 2014 2,498,917
- -----------------------------------------------------------------------------------------------
August 31, 2016 1,685,685
- -----------------------------------------------------------------------------------------------
August 31, 2017 13,482,530
===============================================================================================
Total capital loss carryforward $57,467,146
_______________________________________________________________________________________________
===============================================================================================
</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 August 31, 2009 was $253,058,811 and
$128,220,702, 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 $ 16,198,640
- ------------------------------------------------------------------------------------------------
Aggregate unrealized (depreciation) of investment securities (41,550,045)
================================================================================================
Net unrealized appreciation (depreciation) of investment securities $(25,351,405)
________________________________________________________________________________________________
================================================================================================
Cost of investments for tax purposes is $434,820,544.
</Table>
NOTE 10--RECLASSIFICATION OF PERMANENT DIFFERENCES
Primarily as a result of differing book/tax treatment of expired capital loss
carryforward on August 31, 2009, undistributed net investment income was
increased by $3,584, undistributed net realized gain (loss) was increased by
$10,187,980 and shares of beneficial interest decreased by $10,191,564. This
reclassification had no effect on the net assets of the Fund.
35 AIM FLOATING RATE FUND
NOTE 11--SHARE INFORMATION
<Table>
<Caption>
SUMMARY OF SHARE ACTIVITY
- --------------------------------------------------------------------------------------------------------------------------
YEAR ENDED AUGUST 31,
--------------------------------------------------------------
2009(a) 2008
---------------------------- -----------------------------
SHARES AMOUNT SHARES AMOUNT
- --------------------------------------------------------------------------------------------------------------------------
Sold:
Class A 22,788,600 $140,448,419 5,930,178 $ 49,487,900
- --------------------------------------------------------------------------------------------------------------------------
Class C 9,058,544 56,396,083 3,459,058 28,780,327
- --------------------------------------------------------------------------------------------------------------------------
Class R 23,993 160,476 8,867 66,178
- --------------------------------------------------------------------------------------------------------------------------
Class Y(b) 3,086,832 19,854,491 -- --
- --------------------------------------------------------------------------------------------------------------------------
Institutional Class 779,815 4,913,124 1,731,143 14,334,499
==========================================================================================================================
Issued as reinvestment of dividends:
Class A 1,023,849 6,419,451 815,548 6,773,699
- --------------------------------------------------------------------------------------------------------------------------
Class C 398,007 2,493,435 379,132 3,166,936
- --------------------------------------------------------------------------------------------------------------------------
Class R 3,234 20,088 1,581 12,804
- --------------------------------------------------------------------------------------------------------------------------
Class Y 22,822 151,664 -- --
- --------------------------------------------------------------------------------------------------------------------------
Institutional Class 403,283 2,501,384 381,534 3,151,695
==========================================================================================================================
Reacquired:(c)
Class A(b) (10,735,224) (69,063,291) (12,128,519) (101,468,950)
- --------------------------------------------------------------------------------------------------------------------------
Class C (3,310,738) (21,665,432) (4,669,761) (38,316,260)
- --------------------------------------------------------------------------------------------------------------------------
Class R (8,333) (51,961) (1,339) (10,712)
- --------------------------------------------------------------------------------------------------------------------------
Class Y (257,014) (1,730,178) -- --
- --------------------------------------------------------------------------------------------------------------------------
Institutional Class (2,076,229) (13,471,208) (1,311,463) (10,986,409)
==========================================================================================================================
Net increase (decrease) in share activity 21,201,441 $127,376,545 (5,404,041) $ (45,008,293)
__________________________________________________________________________________________________________________________
==========================================================================================================================
</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 37% 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.
In addition, 9% of the outstanding shares of the Fund are owned by
affiliated mutual funds. Affiliated mutual funds are other mutual funds
that are also advised by Invesco Aim.
(b) Effective upon the commencement date of Class Y shares, October 3, 2008,
the following shares were converted from Class A into Class Y shares of the
Fund:
<Table>
<Caption>
CLASS SHARES AMOUNT
--------------------------------------------------------------------------------------------------
Class Y 34,580 $ 252,087
--------------------------------------------------------------------------------------------------
Class A (34,580) (252,087)
__________________________________________________________________________________________________
==================================================================================================
</Table>
(c) Net of redemption fees of $27,580 and $18,720 allocated among the classes
based on relative net assets of each class for the years ended August 31,
2009 and 2008, respectively.
36 AIM FLOATING RATE 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 08/31/09 $7.99 $0.41(d) $(0.89) $(0.48) $(0.42) $ -- $(0.42)
Year ended 08/31/08 8.67 0.53(d) (0.68) (0.15) (0.53) -- (0.53)
Year ended 08/31/07 9.06 0.60(d) (0.39) 0.21 (0.60) -- (0.60)
Eight months ended 08/31/06 9.04 0.37(d) 0.02 0.39 (0.37) -- (0.37)
Year ended 12/31/05 9.02 0.43 0.01 0.44 (0.42) -- (0.42)
Year ended 12/31/04 8.77 0.30 0.25 0.55 (0.29) (0.01) (0.30)
- ---------------------------------------------------------------------------------------------------------------------------
CLASS C
Year ended 08/31/09 7.97 0.38(d) (0.90) (0.52) (0.39) -- (0.39)
Year ended 08/31/08 8.65 0.48(d) (0.68) (0.20) (0.48) -- (0.48)
Year ended 08/31/07 9.04 0.56(d) (0.39) 0.17 (0.56) -- (0.56)
Eight months ended 08/31/06 9.02 0.34(d) 0.02 0.36 (0.34) -- (0.34)
Year ended 12/31/05 8.99 0.40 0.03 0.43 (0.40) -- (0.40)
Year ended 12/31/04 8.75 0.27 0.25 0.52 (0.27) (0.01) (0.28)
- ---------------------------------------------------------------------------------------------------------------------------
CLASS R
Year ended 08/31/09 8.00 0.40(d) (0.89) (0.49) (0.41) -- (0.41)
Year ended 08/31/08 8.66 0.51(d) (0.66) (0.15) (0.51) -- (0.51)
Year ended 08/31/07 9.06 0.58(d) (0.40) 0.18 (0.58) -- (0.58)
Year ended 08/31/06(h) 9.11 0.21(d) (0.05) 0.16 (0.21) -- (0.21)
- ---------------------------------------------------------------------------------------------------------------------------
CLASS Y
Year ended 08/31/09(h) 7.29 0.41(d) (0.24) 0.17 (0.39) -- (0.39)
- ---------------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL CLASS
Year ended 08/31/09 7.99 0.44(d) (0.89) (0.45) (0.45) -- (0.45)
Year ended 08/31/08 8.67 0.56(d) (0.68) (0.12) (0.56) -- (0.56)
Year ended 08/31/07 9.06 0.63(d) (0.39) 0.24 (0.63) -- (0.63)
Year ended 08/31/06(h) 9.11 0.23(d) (0.05) 0.18 (0.23) -- (0.23)
___________________________________________________________________________________________________________________________
===========================================================================================================================
<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(a) RETURN(b) (000S OMITTED) ABSORBED ABSORBED NET ASSETS TURNOVER(c)
- -----------------------------------------------------------------------------------------------------------------------------------
CLASS A
Year ended 08/31/09 $7.09 (4.97)% $218,448 1.24%(e)(f) 1.25%(e)(f) 6.50%(e) 52%
Year ended 08/31/08 7.99 (1.80) 141,803 1.36(f) 1.37(f) 6.36 66
Year ended 08/31/07 8.67 2.28 220,449 1.29(f) 1.30(f) 6.65 117
Eight months ended 08/31/06 9.06 4.32 155,953 1.58(f)(g) 1.86(f)(g) 6.06(g) 54
Year ended 12/31/05 9.04 5.00 159,206 2.04(f) 2.17(f) 4.69 56
Year ended 12/31/04 9.02 6.36 190,814 1.65(f) 1.69(f) 3.31 82
- -----------------------------------------------------------------------------------------------------------------------------------
CLASS C
Year ended 08/31/09 7.06 (5.61) 103,975 1.74(e)(f) 1.75(e)(f) 6.00(e)(f) 52
Year ended 08/31/08 7.97 (2.31) 68,452 1.86(f) 1.87(f) 5.86 66
Year ended 08/31/07 8.65 1.76 81,479 1.79(f) 1.80(f) 6.15 117
Eight months ended 08/31/06 9.04 4.05 44,853 1.97(f)(g) 2.36(f)(g) 5.67(g) 54
Year ended 12/31/05 9.02 4.85 47,624 2.29(f) 2.67(f) 4.44 56
Year ended 12/31/04 8.99 5.98 34,518 1.89(f) 2.19(f) 3.07 82
- -----------------------------------------------------------------------------------------------------------------------------------
CLASS R
Year ended 08/31/09 7.10 (5.19) 427 1.49(e)(i) 1.50(e)(i) 6.25(e)(i) 52
Year ended 08/31/08 8.00 (1.81) 330 1.61(i) 1.62(i) 6.11 66
Year ended 08/31/07 8.66 1.91 278 1.54(i) 1.55(i) 6.40 117
Year ended 08/31/06(h) 9.06 1.80 78 1.53(g)(i) 1.53(g)(i) 6.11(g) 54
- -----------------------------------------------------------------------------------------------------------------------------------
CLASS Y
Year ended 08/31/09(h) 7.07 3.48 20,176 1.00(e)(g)(i) 1.01(e)(g)(i) 6.74(e)(g) 52
- -----------------------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL CLASS
Year ended 08/31/09 7.09 (4.62) 38,720 0.88(e)(i) 0.89(e)(i) 6.86(e) 52
Year ended 08/31/08 7.99 (1.46) 50,786 1.01(i) 1.02(i) 6.71 66
Year ended 08/31/07 8.67 2.62 48,138 0.95(i) 0.96(i) 6.99 117
Year ended 08/31/06(h) 9.06 2.00 24,335 0.98(g)(i) 0.98(g)(i) 6.66(g) 54
___________________________________________________________________________________________________________________________________
===================================================================================================================================
</Table>
(a) Includes redemption fees added to shares of beneficial interest which were
less than $0.005 per share.
(b) 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.
(c) Portfolio turnover is calculated at the fund level and is not annualized
for periods less than one year, if applicable.
(d) Calculated using average shares outstanding.
(e) Ratios are based on average daily net assets (000's omitted) of $142,449,
$62,765, $315, $6,376 and $35,391 for Class A, Class C, Class R, Class Y
and Institutional Class shares, respectively.
(f) Ratio includes line of credit expenses of 0.02%, 0.06%, 0.02% and 0.21%
(annualized), 0.54% and 0.15% for the years ended August 31, 2009, August
31, 2008, August 31, 2007, the eight months ended August 31, 2006, and the
years ended December 31, 2005 and December 31, 2004, respectively.
(g) Annualized.
(h) Commencement date of April 13, 2006 for Class R and Institutional Class
shares and October 3, 2008 for Class Y shares.
(i) Ratio includes line of credit expenses of 0.02%, 0.06%, 0.02% and 0.01%
(annualized) for the years ended August 31, 2009, August 31, 2008, August
31, 2007 and the eight months ended August 31, 2006, respectively.
37 AIM FLOATING RATE FUND
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Trustees of AIM Counselor Series Trust
and Shareholders of AIM Floating Rate 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 Floating Rate Fund (one of the
funds constituting AIM Counselor Series Trust, hereafter referred to as the
"Fund") at August 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, its cash flows for the year then ended and the financial highlights
for each of the periods indicated, 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 August 31, 2009 by correspondence with the
custodian and intermediate participants, provide a reasonable basis for our
opinion.
PRICEWATERHOUSECOOPERS LLP
October 16, 2009
Houston, Texas
38 AIM FLOATING RATE 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. The
example is based on an investment of $1,000 invested at the beginning of the
period and held for the entire period March 1, 2009 through August 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 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 (03/01/09) (08/31/09)(1) PERIOD(2) (08/31/09) PERIOD(2) RATIO
- ---------------------------------------------------------------------------------------------------
A $1,000.00 $1,281.10 $6.90 $1,019.16 $6.11 1.20%
- ---------------------------------------------------------------------------------------------------
C 1,000.00 1,277.00 9.76 1,016.64 8.64 1.70
- ---------------------------------------------------------------------------------------------------
R 1,000.00 1,276.80 8.32 1,017.90 7.38 1.45
- ---------------------------------------------------------------------------------------------------
Y 1,000.00 1,280.80 5.46 1,020.42 4.84 0.95
- ---------------------------------------------------------------------------------------------------
</Table>
(1) The actual ending account value is based on the actual total return of the
Fund for the period March 1, 2009 through August 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
184/365 to reflect the most recent fiscal half year.
39 AIM FLOATING RATE FUND
Supplement to Annual Report dated 8/31/09
AIM FLOATING RATE FUND
<Table>
INSTITUTIONAL CLASS SHARES ------------------------------------------ Fund operating expense ratio set forth in
AVERAGE ANNUAL TOTAL RETURNS the most recent Fund prospectus as of the
The following information has been For periods ended 8/31/09 date of this supplement for Institutional
prepared to provide Institutional Class Class shares was 0.90%. The expense ratios
shareholders with a performance overview 10 Years 2.65% presented above may vary from the expense
specific to their holdings. Institutional ------------------------------------------ ratios presented in other sections of the
Class shares are offered exclusively to 5 Years 1.67 actual report that are based on expenses
institutional investors, including defined ------------------------------------------ incurred during the period covered by the
contribution plans that meet certain 1 Year -4.62 report.
criteria. ------------------------------------------
Had the advisor not waived fees and/or
------------------------------------------ reimbursed expenses in the past,
AVERAGE ANNUAL TOTAL RETURNS performance would have been lower.
For periods ended 6/30/09, the most recent
calendar quarter-end Please note that past performance is
not indicative of future results. More
10 Years 2.16% recent returns may be more or less than
------------------------------------------ those shown. All returns assume
5 Years 0.66 reinvestment of distributions at NAV.
------------------------------------------ Investment return and principal value will
1 Year -10.97 fluctuate so your shares, when redeemed,
------------------------------------------ may be worth more or less than their
original cost. See full report for
Institutional Class shares' inception date information on comparative benchmarks.
is April 13, 2006. Returns since that date Please consult your Fund prospectus for
are historical returns. All other returns more information. For the most current
are blended returns of historical month-end performance, please call
Institutional Class share performance and 800 451 4246 or visit invescoaim.com.
restated Class A share performance (for
periods prior to the inception date of A redemption fee of 2% will be imposed
Institutional Class shares) at net asset on certain redemptions or exchanges out of
value (NAV) and reflect the Rule 12b-1 the Fund within 31 days of purchase.
fees applicable to Class A shares. Class A Exceptions to the redemption fee are
shares' inception date is May 1, 1997. listed in the Fund's prospectus.
Institutional Class shares have no (1) Total annual operating expenses less
sales charge; therefore, performance is at any contractual fee waivers and/or
NAV. Performance of Institutional Class expense reimbursements by the advisor
shares will differ from performance of in effect through at least June 30,
other share classes primarily due to 2010. See current prospectus for more
differing sales charges and class information.
expenses.
The net 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 0.89%.(1) The total annual
- ------------------------------------------
NASDAQ SYMBOL AFRIX
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 -- NOT FOR USE WITH THE PUBLIC THIS MATERIAL IS FOR
INSTITUTIONAL INVESTOR USE ONLY AND MAY NOT BE QUOTED, REPRODUCED, SHOWN TO THE PUBLIC [INVESCO AIM LOGO]
OR USED IN WRITTEN FORM AS SALES LITERATURE FOR PUBLIC USE. - SERVICE MARK -
invescoaim.com FLR-INS-1 Invesco Aim Distributors, Inc.
</Table>
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 March 1, 2009 through August 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 (03/01/09) (08/31/09)(1) PERIOD(2) (08/31/09) PERIOD(2) RATIO
- -----------------------------------------------------------------------------------------------------------
Institutional $1,000.00 $1,281.10 $4.89 $1,020.92 $4.33 0.85%
- -----------------------------------------------------------------------------------------------------------
</Table>
(1) The actual ending account value is based on the actual total return of the
Fund for the period March 1, 2009, through August 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
184/365 to reflect the most recent fiscal half year.
AIM FLOATING RATE FUND
<Table>
APPROVAL OF INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS
The Board of Trustees (the Board) of AIM strategies and limitations of these funds. the year as part of their ongoing
Counselor Series Trust is required under oversight of the Fund, and did not
the Investment Company Act of 1940 to In addition to their meetings identify any particular factor that was
approve annually the renewal of the AIM throughout the year, the Sub-Committees controlling. Each Trustee may have
Floating Rate Fund (the Fund) investment meet at designated contract renewal evaluated the information provided
advisory agreement with Invesco Aim meetings each year to conduct an in-depth differently from another Trustee and
Advisors, Inc. (Invesco Aim) and the review of the performance, fees, expenses, attributed different weight to the various
Master Intergroup Sub-Advisory Contract and other matters related to their factors. The Trustees recognized that the
for Mutual Funds (the sub-advisory assigned funds. During the contract advisory arrangements and resulting
contracts) with Invesco Asset Management renewal process, the Trustees receive advisory fees for the Fund and the other
Deutschland GmbH, Invesco Asset Management comparative performance and fee data AIM Funds are the result of years of
Limited, Invesco Asset Management (Japan) regarding the AIM Funds prepared by an review and negotiation between the
Limited, Invesco Australia Limited, independent company, Lipper, Inc. Trustees and Invesco Aim, that the
Invesco Global Asset Management (N.A.), (Lipper), under the direction and Trustees may focus to a greater extent on
Inc., Invesco Hong Kong Limited, Invesco supervision of the Senior Officer who also certain aspects of these arrangements in
Institutional (N.A.), Inc., Invesco Senior prepares a separate analysis of this some years than in others, and that the
Secured Management, Inc. and Invesco information for the Trustees. Each Trustees' deliberations and conclusions in
Trimark Ltd. (collectively, the Affiliated Sub-Committee then makes recommendations a particular year may be based in part on
Sub-Advisers). During contract renewal to the Investments Committee regarding the their deliberations and conclusions
meetings held on June 16-17, 2009, the fees and expenses of their assigned funds. regarding these same arrangements
Board as a whole, and the disinterested or The Investments Committee considers each throughout the year and in prior years.
"independent" Trustees voting separately, Sub-Committee's recommendations and makes
approved the continuance of the Fund's its own recommendations regarding the fees The discussion below serves as a
investment advisory agreement and the and expenses of the AIM Funds to the full summary of the Senior Officer's
sub-advisory contracts for another year, Board. The Investments Committee also independent written evaluation with
effective July 1, 2009. In doing so, the considers each Sub-Committee's respect to the Fund's investment advisory
Board determined that the Fund's recommendations in making its annual agreement as well as a discussion of the
investment advisory agreement and the recommendation to the Board whether to material factors and related conclusions
sub-advisory contracts are in the best approve the continuance of each AIM Fund's that formed the basis for the Board's
interests of the Fund and its shareholders investment advisory agreement and approval of the Fund's investment advisory
and that the compensation to Invesco Aim sub-advisory contracts for another year. agreement and sub-advisory contracts.
and the Affiliated Sub-Advisers under the Unless otherwise stated, information set
Fund's investment advisory agreement and The independent Trustees met separately forth below is as of June 17, 2009, and
sub-advisory contracts is fair and during their evaluation of the Fund's does not reflect any changes that may have
reasonable. investment advisory agreement and occurred since that date, including but
sub-advisory contracts with independent not limited to changes to the Fund's
THE BOARD'S FUND EVALUATION PROCESS legal counsel. The independent Trustees performance, advisory fees, expense
were also assisted in their annual limitations and/or fee waivers.
The Board's Investments Committee has evaluation of the Fund's investment
established three Sub-Committees that are advisory agreement by the Senior Officer. FACTORS AND CONCLUSIONS AND SUMMARY OF
responsible for overseeing the management One responsibility of the Senior Officer INDEPENDENT WRITTEN FEE EVALUATION
of a number of the series portfolios of is to manage the process by which the AIM
the AIM Funds. This Sub-Committee structure Funds' proposed management fees are A. Nature, Extent and Quality of
permits the Trustees to focus on the negotiated during the annual contract Services Provided by Invesco Aim
performance of the AIM Funds that have renewal process to ensure that they are
been assigned to them. The Sub-Committees negotiated in a manner that is at arms' The Board reviewed the advisory services
meet throughout the year to review the length and reasonable. Accordingly, the provided to the Fund by Invesco Aim under
performance of their assigned funds, and Senior Officer must either supervise a the Fund's investment advisory agreement,
the Sub-Committees review monthly and competitive bidding process or prepare an the performance of Invesco Aim in
quarterly comparative performance independent written evaluation. The Senior providing these services, and the
information and periodic asset flow data Officer recommended that an independent credentials and experience of the officers
for their assigned funds. These materials written evaluation be provided and, at the and employees of Invesco Aim who provide
are prepared under the direction and direction of the Board, prepared an these services. The Board's review of the
supervision of the independent Senior independent written evaluation. qualifications of Invesco Aim to provide
Officer, an officer of the AIM Funds who these services included the Board's
reports directly to the independent During the annual contract renewal consideration of Invesco Aim's portfolio
Trustees. Over the course of each year, process, the Board considered the factors and product review process, various back
the Sub-Committees meet with portfolio discussed below in evaluating the fairness office support functions provided by
managers for their assigned funds and and reasonableness of the Fund's Invesco Aim and its affiliates, and
other members of management and review investment advisory agreement and Invesco Aim's equity and fixed income
with these individuals the performance, sub-advisory contracts. The Board trading operations. The Board concluded
investment objective(s), policies, considered all of the information provided that the nature, extent and quality of the
to them, including information provided at advisory services provided to the Fund by
their meetings throughout Invesco Aim are appropriate and that
Invesco Aim
40 AIM FLOATING RATE FUND continued
</Table>
<Table>
currently is providing satisfactory shareholders by permitting Invesco Aim to financial data from the most recent annual
advisory services in accordance with the utilize the additional resources and report of each fund in the expense group
terms of the Fund's investment advisory talent of the Affiliated Sub-Advisers in that was publicly available as of the end
agreement. In addition, based on their managing the Fund. of the past calendar year. The Board noted
ongoing meetings throughout the year with that some comparative data was at least
the Fund's portfolio manager or managers, C. Fund Performance one year old and that other data did not
the Board concluded that these individuals reflect the market downturn that occurred
are competent and able to continue to The Board considered Fund performance as a in the fourth quarter of 2008.
carry out their responsibilities under the relevant factor in considering whether to
Fund's investment advisory agreement. approve the investment advisory agreement The Board also compared the Fund's
as well as the sub-advisory contracts for sub-advisory fee rate to the effective fee
In determining whether to continue the the Fund, as Invesco Senior Secured rate (the advisory fee after any advisory
Fund's investment advisory agreement, the currently manages assets of the Fund. fee waivers and before any expense
Board considered the prior relationship limitations/waivers) of one separately
between Invesco Aim and the Fund, as well The Board compared the Fund's managed account/wrap account advised by
as the Board's knowledge of Invesco Aim's performance during the past one, three and Invesco Senior Secured. The Board noted
operations, and concluded that it is five calendar years to the performance of that the Fund's sub-advisory fee rate
beneficial to maintain the current all funds in the Lipper performance below the rate for the separately managed
relationship, in part, because of such universe that are not managed by Invesco account/wrap account. The Board considered
knowledge. The Board also considered the Aim or an Affiliated Sub-Adviser, and that management of the separately managed
steps that Invesco Aim and its affiliates against the S&P/LSTA Leveraged Loan Index. account/wrap account by Invesco Senior
continue to take to improve the quality The Board noted that the Fund's Secured involves different levels of
and efficiency of the services they performance was in the fifth quintile for services and different operational and
provide to the AIM Funds in the areas of the one and three year periods and fourth regulatory requirements than Invesco
investment performance, product line quintile of its performance universe for Senior Secured's management of the Fund.
diversification, distribution, fund the five year period and (the first The Board concluded that these differences
operations, shareholder services and quintile being the best performing funds are appropriately reflected in the fee
compliance. The Board concluded that the and the fifth quintile being the worst structure for the Fund.
quality and efficiency of the services performing funds). The Board noted that
Invesco Aim and its affiliates provide to the Fund's performance was below the The Board noted that Invesco Aim
the AIM Funds in each of these areas performance of the Index for the one, contractually agreed to waive fees and/or
support the Board's approval of the three and five year periods. Invesco Aim limit expenses of the Fund through at
continuance of the Fund's investment advised the Board that underperformance is least June 30, 2010 in an amount necessary
advisory agreement. due to the purchase of larger more liquid to limit total annual operating expenses
loans and 2nd tier loans, and that Invesco to a specified percentage of average daily
B. Nature, Extent and Quality of Aim will continue to monitor performance net assets for each class of the Fund. The
Services Provided by Affiliated of the Fund. Although the independent Board noted that at the current expense
Sub-Advisers written evaluation of the Fund's Senior ratio for the Fund, this expense waiver
Officer only considered Fund performance does not have any impact. The Board also
The Board reviewed the services through the most recent calendar year, the noted that Invesco Aim has agreed to
provided by the Affiliated Sub-Advisers Board also reviewed more recent Fund reduce the per account transfer agent fee
under the sub-advisory contracts and the performance and this review did not change for all the retail funds, including the
credentials and experience of the officers their conclusions. The Board noted that, Fund, effective July 1, 2009.
and employees of the Affiliated in response to the Board's focus on fund
Sub-Advisers who provide these services. performance, Invesco Aim has taken a The Board also considered the services
The Board concluded that the nature, number of actions intended to improve the provided by the Affiliated Sub-Advisers
extent and quality of the services investment process for the funds. pursuant to the sub-advisory contracts and
provided by the Affiliated Sub-Advisers the services provided by Invesco Aim
are appropriate. The Board noted that the D. Advisory and Sub-Advisory Fees and pursuant to the Fund's advisory agreement,
Affiliated Sub-Advisers, which have Fee Waivers as well as the allocation of fees between
offices and personnel that are Invesco Aim and the Affiliated
geographically dispersed in financial The Board compared the Fund's Sub-Advisers pursuant to the sub-advisory
centers around the world, can provide contractual advisory fee rate to the contracts. The Board noted that the
research and other information and make contractual advisory fee rates of funds in sub-advisory fees have no direct effect on
recommendations on the markets and the Fund's Lipper expense group that are the Fund or its shareholders, as they are
economies of various countries and not managed by Invesco Aim or an paid by Invesco Aim to the Affiliated
securities of companies located in such Affiliated Sub-Adviser, at a common asset Sub-Advisers, and that Invesco Aim and the
countries or on various types of level. The Board noted that the Fund's Affiliated Sub-Advisers are affiliates.
investments and investment techniques. The contractual advisory fee rate was below
Board noted that investment decisions for the median contractual advisory fee rate After taking account of the Fund's
the Fund are made by Invesco Senior of funds in its expense group. The Board contractual advisory fee rate, the
Secured Management, Inc. (Invesco Senior also reviewed the methodology used by contractual sub-advisory fee rate, the
Secured). The Board concluded that the Lipper in determining contractual fee comparative advisory fee information
sub-advisory contracts benefit the Fund rates, which includes using audited discussed above and other relevant
and its factors, the Board concluded that the
41 AIM FLOATING RATE FUND continued
<Table>
Fund's advisory and sub-advisory fees are necessary to fulfill these obligations. investments, although Invesco Aim has
fair and reasonable. The Board also considered whether each contractually agreed to waive through at
Affiliated Sub-Adviser is financially least June 30, 2010, the advisory fees
E. Economies of Scale and Breakpoints sound and has the resources necessary to payable by the Fund in an amount equal to
perform its obligations under the 100% of the net advisory fees Invesco Aim
The Board considered the extent to which sub-advisory contracts, and concluded that receives from the affiliated money market
there are economies of scale in the each Affiliated Sub-Adviser has the funds with respect to the Fund's
provision of advisory services to the financial resources necessary to fulfill investment in the affiliated money market
Fund. The Board also considered whether these obligations. funds of uninvested cash, but not cash
the Fund benefits from such economies of collateral. The Board concluded that the
scale through contractual breakpoints in G. Collateral Benefits to Invesco Aim Fund's investment of uninvested cash and
the Fund's advisory fee schedule. The and its Affiliates cash collateral from any securities
Board noted that the Fund's contractual lending arrangements in the affiliated
advisory fee schedule includes three The Board considered various other money market funds is in the best
breakpoints but that, due to the Fund's benefits received by Invesco Aim and its interests of the Fund and its
asset level at the end of the past affiliates resulting from Invesco Aim's shareholders.
calendar year, the Fund has yet to benefit relationship with the Fund, including the
from the breakpoints. Based on this fees received by Invesco Aim and its
information, the Board concluded that the affiliates for their provision of
Fund's advisory fees would reflect administrative, transfer agency and
economies of scale at higher asset levels. distribution services to the Fund. The
The Board also noted that the Fund shares Board considered the performance of
directly in economies of scale through Invesco Aim and its affiliates in
lower fees charged by third party service providing these services and the
providers based on the combined size of organizational structure employed by
all of the AIM Funds and affiliates. Invesco Aim and its affiliates to provide
these services. The Board also considered
F. Profitability and Financial that these services are provided to the
Resources Fund pursuant to written contracts that
are reviewed and approved on an annual
The Board reviewed information from basis by the Board. The Board concluded
Invesco Aim concerning the costs of the that Invesco Aim and its affiliates are
advisory and other services that Invesco providing these services in a satisfactory
Aim and its affiliates provide to the Fund manner and in accordance with the terms of
and the profitability of Invesco Aim and their contracts, and are qualified to
its affiliates in providing these continue to provide these services to the
services. The Board also reviewed Fund.
information concerning the financial
condition of Invesco Aim and its The Board considered the benefits
affiliates. The Board reviewed with realized by Invesco Aim and the Affiliated
Invesco Aim the methodology used to Sub-Advisers as a result of portfolio
prepare the profitability information. The brokerage transactions executed through
Board considered the overall profitability "soft dollar" arrangements. The Board
of Invesco Ltd., the ultimate parent of noted that soft dollar arrangements shift
Invesco Aim and the Affiliated the payment obligation for research and
Sub-Advisers, and of Invesco Aim, as well execution services from Invesco Aim and
as the profitability of Invesco Aim in the Affiliated Sub-Advisers to the funds
connection with managing the Fund. The and therefore may reduce Invesco Aim's and
Board noted that Invesco Aim continues to the Affiliated Sub-Advisers' expenses. The
operate at a net profit, although the Board concluded that Invesco Aim's and the
reduction of assets under management as a Affiliated Sub-Advisers' soft dollar
result of market movements and the arrangements are appropriate. The Board
increase in voluntary fee waivers for also concluded that, based on their review
affiliated money market funds have reduced and representations made by the Chief
the profitability of Invesco Aim and its Compliance Officer of Invesco Aim, these
affiliates. The Board concluded that the arrangements are consistent with
Fund's fees are fair and reasonable, and regulatory requirements.
that the level of profits realized by
Invesco Aim and its affiliates from The Board considered the fact that the
providing services to the Fund is not Fund's uninvested cash and cash collateral
excessive in light of the nature, quality from any securities lending arrangements
and extent of the services provided. The may be invested in money market funds
Board considered whether Invesco Aim is advised by Invesco Aim pursuant to
financially sound and has the resources procedures approved by the Board. The
necessary to perform its obligations under Board noted that Invesco Aim will receive
the Fund's investment advisory agreement, advisory fees from these affiliated money
and concluded that Invesco Aim has the market funds attributable to such
financial resources
42 AIM FLOATING RATE FUND
</Table>
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 August 31,
2009:
<Table>
<Caption>
FEDERAL AND STATE INCOME TAX
----------------------------
Qualified Dividend Income* 0%
Corporate Dividends Received Deduction* 0%
</Table>
* The above percentages are based on ordinary income dividends paid to
shareholders during the Fund's fiscal year.
43 AIM FLOATING RATE FUND
TRUSTEES AND OFFICERS
The address of each trustee and officer of AIM Counselor Series Trust (the
"Trust"), is 11 Greenway Plaza, Suite 100, Houston, Texas 77046-1173. Each
trustee oversees 105 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. Flanagan(1) -- 2007 Executive Director, Chief Executive Officer and President, None
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(R); 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); Director, Invesco Ltd. and Chairman, Investment
Company Institute
- ------------------------------------------------------------------------------------------------------------------------------------
Philip A. Taylor(2) -- 2006 Head of North American Retail and Senior Managing Director, None
1954 Invesco Ltd.; Director, Chief Executive Officer and
Trustee, President and President, Invesco Aim Advisors, Inc. and 1371 Preferred
Principal Executive Inc. (holding company); Director, Chairman, Chief Executive
Officer 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 registered transfer agent) and AIM GP
Canada Inc. (general partner for limited partnerships);
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
(registered investment advisor and registered transfer
agent) and Invesco Trimark Dealer Inc. (registered broker
dealer); Trustee, President and Principal Executive Officer,
The AIM Family of Funds(R) (other than AIM Treasurer's
Series Trust and Short-Term Investments Trust); Trustee and
Executive Vice President, The AIM Family of Funds(R) (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; Senior Managing Director,
Invesco Holding Company Limited; Trustee and Executive Vice
President, Tax-Free Investments Trust; Director and
Chairman, Fund Management Company (former registered broker
dealer); President and Principal Executive Officer, The AIM
Family of Funds(R) (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.
- ------------------------------------------------------------------------------------------------------------------------------------
INDEPENDENT TRUSTEES
- ------------------------------------------------------------------------------------------------------------------------------------
Bruce L. Crockett -- 1944 2003 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 1983 Retired None
Trustee
- ------------------------------------------------------------------------------------------------------------------------------------
Frank S. Bayley -- 1939 2003 Retired None
Trustee
Formerly: Director, Badgley Funds, Inc.
(registered investment company) (2 portfolios)
- ------------------------------------------------------------------------------------------------------------------------------------
James T. Bunch -- 1942 2000 Founder, Green, Manning & Bunch Ltd., (investment banking Board of Governors,
Trustee firm) Western Golf
Association/Evans
Scholars Foundation
and Executive
Committee, United
States Golf
Association
- ------------------------------------------------------------------------------------------------------------------------------------
Albert R. Dowden -- 1941 2003 Director of a number of public and private business Board of Nature's
Trustee corporations, including the Boss Group Ltd. (private Sunshine Products,
investment and management); Continental Energy Services, LLC
(oil and as pipeline service); Inc. Reich & Tang Funds
(registered investment 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.; Director, Annuity and Life Re
(Holdings), Ltd. (reinsurance company); Senior Vice
President, AB Volvo; Director of various public and private
corporations
- ------------------------------------------------------------------------------------------------------------------------------------
Jack M. Fields -- 1952 2003 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), Discovery Global Education Fund (non-profit)
and Cross Timbers Quail Research Ranch (non-profit)
Formerly: Chief Executive Officer, Texana Timber LP
(sustainable forestry company)
- ------------------------------------------------------------------------------------------------------------------------------------
Carl Frischling -- 1937 2003 Partner, law firm of Kramer Levin Naftalis and Frankel LLP Director, Reich &
Trustee Tang Funds
(16 portfolios)
- ------------------------------------------------------------------------------------------------------------------------------------
Prema Mathai-Davis -- 1950 2003 Retired None
Trustee
- ------------------------------------------------------------------------------------------------------------------------------------
Lewis F. Pennock -- 1942 2003 Partner, law firm of Pennock & Cooper None
Trustee
- ------------------------------------------------------------------------------------------------------------------------------------
Larry Soll -- 1942 1997 Retired None
Trustee
- ------------------------------------------------------------------------------------------------------------------------------------
Raymond Stickel, Jr. -- 2005 Retired None
1944
Trustee Formerly: Director, Mainstay 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 oficer 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.
T-1
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 N/A
Senior Vice President and of Funds(R)
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 N/A
Senior Vice President, Counsel, Invesco Aim Management Group, Inc., Invesco Aim
Chief Legal Officer and Advisors, Inc. and Invesco Aim Capital Management, Inc.;
Secretary 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(R); 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 and General
Counsel, 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 N/A
Vice President President, The AIM Family of Funds(R)
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(R); 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, N/A
Vice President Invesco Ltd.; Director, 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(R)
Formerly: Senior Managing Director and Secretary, Invesco
North American Holdings, Inc.; Vice President and Secretary,
IVZ, Inc. and Invesco Group Services, 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. and Invesco Aim Investment
Services, Inc.; Senior Vice President, Chief Legal Officer
and Secretary, The AIM Family of Funds(R); Director and Vice
President, INVESCO Distributors, Inc.; and Chief Executive
Officer and President, INVESCO Funds Group, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Sheri Morris -- 1964 2003 Vice President, Treasurer and Principal Financial Officer, N/A
Vice President, Treasurer The AIM Family of Funds(R); and Vice President, Invesco Aim
and Advisors, Inc., Invesco Aim Capital Management, Inc. and
Principal Financial Invesco Aim Private Asset Management Inc.
Officer
Formerly: Assistant Vice President and Assistant Treasurer,
The AIM Family of Funds(R) and Assistant Vice President,
Invesco Aim Advisors, Inc., Invesco Aim Capital Management,
Inc. and Invesco Aim Private Asset Management, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Karen Dunn Kelley -- 1960 2003 Head of Invesco's World Wide Fixed Income and Cash N/A
Vice President Management Group; Vice President, Invesco Institutional
(N.A.), Inc. (registered investment advisor); 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, Invesco Institutional (N.A.), Inc.
(registered investment advisor); and Director, Invesco
Mortgage Capital Inc.; Vice President, The AIM Family of
Funds(R) (other than AIM Treasurer's Series Trust and
Short-Term Investments Trust); and President and Principal
Executive Officer, The AIM Family of Funds(R) (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(R) (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 N/A
Anti-Money Laundering Advisors, Inc., Invesco Aim Capital Management, Inc.,
Compliance Officer Invesco Aim Distributors, Inc., Invesco Aim Investment
Services, Inc., Invesco Aim Private Asset Management, Inc.
and The AIM Family of Funds(R)
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.; N/A
Chief Compliance Officer Senior Vice President and Chief Compliance Officer, Invesco
Aim Advisors, Inc. and Invesco Aim Capital Management, Inc.;
Chief Compliance Officer, The AIM Family of Funds(R),
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, Inc. Invesco Aim Distributors, Inc. PricewaterhouseCoopers LLP
Suite 100 11 Greenway Plaza 11 Greenway Plaza 1201 Louisiana Street
Houston, TX 77046-1173 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 Services, Inc. State Street Bank and Trust
Young, LLP Kramer, Levin, Naftalis & Frankel LLP P.O. Box 4739 Company
2600 One Commerce Square 1177 Avenue of the Americas Houston, TX 77210-4739 225 Franklin
Philadelphia, PA 19103 New York, NY 10036-2714 Boston, MA 02110-2801
</Table>
T-2
<Table>
[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 number of - EFFICIENT. Stop waiting for regular mail. Your documents
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
expenses and put more capital back in your fund's returns. computer with a few clicks of your mouse.
- ------------------------------------------------------------------------------------------------------------------------------------
IMPORTANT NOTICE REGARDING DELIVERY OF SECURITY HOLDER DOCUMENTS
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the
same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise.
If you do not want the mailing of these documents to be combined with those for other members of your household, please contact
Invesco Aim Investment Services, Inc. at 800 959 4246 or contact your financial institution. We will begin sending you individual
copies for each account within thirty days after receiving your request.
- ------------------------------------------------------------------------------------------------------------------------------------
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 811-09913 and 333-36074.
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, 2009,
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 January 20, 2010, 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,
exchange-traded 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.
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 Aim Private Asset Management, Inc. and Invesco Global Asset [INVESCO AIM LOGO]
Management (N.A.), Inc. will be merged into Invesco Institutional (N.A.), Inc., and the consolidated adviser - SERVICE MARK -
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 FLR-AR-1 Invesco Aim Distributors, Inc.
</Table>
[INVESCO AIM LOGO] AIM MULTI-SECTOR FUND AUGUST 31, 2009
- -- service mark -- ANNUAL REPORT TO SHAREHOLDERS
(GRAPHIC)
<Table>
2 Letters to Shareholders
4 Performance Summary
4 Management Discussion
6 Long-Term Fund Performance
8 Supplemental Information
9 Schedule of Investments
12 Financial Statements
14 Notes to Financial Statements
21 Financial Highlights
22 Auditor's Report
23 Fund Expenses
24 Approval of Investment Advisory and Sub-Advisory Agreements
27 Tax Information
T-1 Trustees and Officers
</Table>
<Table>
Dear Shareholders:
While the year covered by this report was difficult -- for long-time investors and veteran
investment professionals alike -- economic conditions and market trends appeared much more
[TAYLOR favorable at the close of the fiscal year than at its start.
PHOTO]
The 12 months ended August 31, 2009, included a sharp market sell-off that occurred in the
second half of 2008. That downturn affected virtually all sectors, markets and investors. The
decline had a number of causes, the most immediate being unprecedented turmoil in credit
markets. Economic uncertainty prompted banks to hoard cash and reduce lending, and caused
Philip Taylor investors to shun short-term corporate debt. As a result, businesses found it difficult to fund
their day-to-day operations, and the U.S. economy -- as well as economies around the globe --
virtually froze briefly.
INCREASED COMMUNICATION
These developments prompted a greater-than-usual number of shareholders to contact me. Some
of you took the time to write a letter while others of you emailed me at phil@invescoaim.com.
Many of you sought explanations for the decline in the value of your accounts, while others asked more general questions about
when the economy might improve. Your questions, comments and suggestions gave me better insight into what was on your minds, and I
was pleased that so many of you took the time to share your thoughts with me.
As a result, Invesco Aim's investment professionals and I have increased our efforts to stay in touch with and share our views
with you. We increased the number of "Investment Perspectives" articles on our website, invescoaim.com. Through these articles,
we've tried to provide timely market commentary, general investor education information and sector updates. I hope you'll take a
moment to read them and let me know if you find them useful.
To access your Fund's latest quarterly commentary, click on "Products and Performance" at the top of our website; next, select
"Mutual Funds"; and then click on "Quarterly Commentary."
I also hope you've stayed in touch with your financial advisor. An experienced financial advisor who is familiar with your
individual investment goals, time horizon and risk tolerance can be a source of comfort and information during uncertain times. He
or she can monitor your investments to ensure they're on track and can prevent you from making impulsive short-term decisions that
may have adverse long-term consequences.
REASONS FOR OPTIMISM
The economy and equity markets reacted to a barrage of negative news during the year. Consumer spending -- which accounts for more
than two-thirds(1) of the U.S. economy -- was sluggish as unemployment rose; more workers worried about their job security; home and
portfolio values declined; and credit became more difficult to obtain.
In his semiannual monetary policy report to Congress in late July, U.S. Federal Reserve Board Chairman Ben Bernanke summarized
the stresses and strains the U.S. and global economies suffered in late 2008 and early 2009. Importantly, he suggested that the
aggressive, coordinated actions taken by governments and central banks around the world finally may be yielding results. He
testified that:
- The pace of overall economic decline appears to have slowed significantly.
- Credit availability, for consumers and businesses, has improved noticeably.
- Investors' extreme risk aversion has eased somewhat.
- The decline in housing activity appears to have moderated.
While these and other trends offer encouragement, uncertainties remain. Chairman Bernanke testified that he anticipates a gradual
recovery in 2010 with some acceleration in economic growth in 2011, together with subdued inflation over the next two years. His
considered judgment appears to be shared by investors who have begun to return, cautiously, to the equities market, causing major
U.S. stock-market indexes to bounce off their March lows.
A SINGLE FOCUS
I believe Invesco Aim is uniquely positioned to serve our clients. Our parent company, Invesco Ltd., is one of the largest(2) and
most diversified global asset managers. It provides clients with diversified investment strategies and a range of investment
products managed by distinct management teams around the world. We believe we can serve you best by focusing on one thing and doing
it well: managing your money.
Our investment professionals have managed clients' money in up markets and down markets. All of us here recognize that market
conditions change often; what will not change is our commitment to putting our clients first, helping you achieve your financial
goals and providing excellent customer service.
If you have questions about this report or your account, please contact one of our client services representatives at 800 959
4246.
If you have comments for me, I encourage you to email me at phil@invescoaim.com.
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) Reuters;
(2) Pensions & Investments
2 AIM MULTI-SECTOR FUND
</Table>
<Table>
Dear Fellow Shareholders:
Although the economy and financial markets have shown some signs of hope, investors remain
rightfully cautious. Staying with an appropriately diversified investment program focused on
[CROCKETT your individual long-term goals can be a wise course in such uncertain times. We believe the
PHOTO] route to financial success is more like a marathon than a sprint.
Please be assured that your Board continues to oversee the AIM Funds with a strong sense of
responsibility for your money and your trust. As always, we seek to manage costs and enhance
performance in ways that put your interests first.
Bruce Crockett We are near the end of a busy 2009 proxy season, during which Invesco Aim Advisors, Inc.'s
proxy committee votes on your behalf on issues put to a shareholder vote by the companies whose
stock the Funds hold. This year, after careful case-by-case analysis by committee members and
portfolio managers, the proxy committee voted with corporate management less often than in previous years, focusing on the issues of
board independence, Say-On-Pay initiatives, and stock option re-pricing in light of the market's decline. The committee remained
committed to supporting non-binding Say-on-Pay proposals and abstaining from voting on social issues.
At its June meeting, your Board reviewed and renewed the investment advisory contracts between the AIM Funds and Invesco Aim
Advisors, Inc. You can find the results of this rigorous annual process at invescoaim.com. Go to "Products & Performance" and click
on "Investment Advisory Agreement Renewals."
The website also contains news and market information, investment education and planning information and current reports and
prospectuses for all the AIM Funds and I highly recommend it to you.
You are always welcome to contact me at bruce@brucecrockett.com with any questions or concerns you may have. We look forward to
representing you and serving you in the coming months.
Sincerely,
/S/ BRUCE L. CROCKETT
Bruce L. Crockett
Independent Chair
AIM Funds Board of Trustees
3 AIM MULTI-SECTOR FUND
</Table>
<Table>
- ---------------------------------------------------------------------------------------
MANAGEMENT'S DISCUSSION OF FUND PERFORMANCE
- ---------------------------------------------------------------------------------------
PERFORMANCE SUMMARY Fund managers consider selling a stock
when they see:
While a severe global economic slowdown persisted during the fiscal year ended
August 31, 2009, a significant stock market rally began late in the period on - Fundamental deterioration in the
March 9, 2009. Despite improvements in the equity markets, domestic equities, as company.
measured by the S&P 500 Index, delivered double-digit negative returns for the
fiscal year. AIM Multi-Sector Fund underperformed the S&P 500 Index, the Fund's - More attractive investment
broad market and style-specific index, during the reporting period.(triangle) opportunities.
The S&P 500 Index has exposure to all 10 sectors of the market. The Fund, on the
other hand, invests at least 80% of its assets approximately equally in only - Inability of the company to capitalize
five of these 10 market sectors and is overweight in these sectors relative to on market opportunity.
the index. The five sectors include energy, financial services, health care,
information technology (IT) and "leisure" (represented by the consumer - A questionable change in management's
discretionary sector). strategic direction.
The Fund's underperformance relative to its benchmark was predominately due to its MARKET CONDITIONS AND YOUR FUND
overweight exposure in the financials and energy sectors. Security selection in the
consumer discretionary sector also hurt relative performance. Though much of the fiscal year was marked
by headlines claiming economic
Your Fund's long-term performance appears later in this report. "Armageddon," the U.S. economy began to
show signs that the economic contraction
FUND VS. INDEXES was moderating toward the end of the
- --------------------------------------------------------------------------------------- period. Economic data, while poor in
absolute terms, indicated that the rampant
Total returns, 8/31/08 to 8/31/09, at net asset value (NAV). Performance shown does not decline in business spending and
include applicable contingent deferred sales charges (CDSC) or front-end sales charges, consumption that occurred at the end of
which would have reduced performance. 2008 and the beginning of 2009 may have
eased. Despite this, there were few signs
Class A Shares -22.34% of a broad-based economic recovery.
Class B Shares -22.93 Nevertheless, given signs that the
Class C Shares -22.94 economic downturn may be moderating,
Class Y Shares* -22.14 equity and credit markets improved. In
S&P 500 Index(triangle) (Broad Market/Style-Specific Index) -18.25 addition, financial markets benefited from
Lipper Multi-Cap Core Funds Index(triangle) (Peer Group Index) -17.03 the various government programs introduced
to improve bank balance sheets and reduce
(triangle)Lipper Inc. credit spreads.
* Share class incepted during the fiscal year. See page 7 for a detailed During the fiscal year, the U.S.
explanation of Fund performance. Federal Reserve Board lowered the federal
funds target rate from 2.00% to a range of
- ------------------------------------------ between zero and 0.25%.(1) Real gross
HOW WE INVEST domestic product (GDP), although still
Managers use fundamental and experiencing negative growth, showed signs
Your Fund invests the bulk of its assets quantitative analysis to identify market of recovery.(2) Indeed, GDP decreased at
in stocks from five market sectors: leading companies with competitive an annual rate of 1.0% for the second
energy, financial services, health care, positioning and strong anticipated growth quarter of 2009, which was an improvement
IT and "leisure" (represented by the relative to their peers. They focus on from the 6.4% decrease in the first
consumer discretionary sector). To provide companies that exhibit strong return on quarter of 2009.2 Inflation, measured by a
diversification, Fund assets are divided capital, cash flow, sustainable growth and seasonally-adjusted Consumer Price Index,
more or less equally among securities of superior business strategies that make was relatively benign following a
companies from each sector in which the them market leaders. significant decline in crude oil prices
Fund invests. Fund managers act from their all-time high reached in July
independently within sectors. At any given In the resulting portfolio, each sector 2008.(3)
time, 20% of the Fund's assets can be has approximately 20 to 25 holdings. The
invested outside of the five previously Fund is rebalanced annually near fiscal
mentioned sectors. year-end to return the sectors to their
approximate equal weightings.
- ------------------------------------------ ------------------------------------------ ------------------------------------------
PORTFOLIO COMPOSITION TOP FIVE INDUSTRIES* TOP 10 EQUITY HOLDINGS*
By sector
1. Biotechnology 7.5% 1. Google Inc.- Class A 2.9%
Information Technology 23.7% 2. Oil & Gas Exploration & Production 6.0 2. Apple Inc. 2.0
Health Care 21.2 3. Integrated Oil & Gas 5.9 3. Amgen Inc. 1.9
Consumer Discretionary 17.4 4. Life Sciences Tools & Services 4.2 4. Hewlett-Packard Co. 1.8
Energy 16.7 5. Computer Hardware 3.8 5. DaVita, Inc. 1.7
Financials 14.7 6. Microsoft Corp. 1.7
Consumer Staples 4.5 ------------------------------------------ 7. Thermo Fisher Scientific, Inc. 1.6
Money Market Funds Plus Total Net Assets $383.2 million 8. Life Technologies Corp. 1.6
Other Assets Less Liabilities 1.8 Total Number of Holdings* 100 9. Walt Disney Co. (The) 1.6
10. UnitedHealth Group Inc. 1.5
The Fund's holdings are subject to change, and there is no assurance that the Fund will continue to hold any particular security.
* Excluding money market fund holdings.
4 AIM MULTI-SECTOR FUND
</Table>
<Table>
Unemployment, however, trended higher Consumer spending remained weak in the WARREN TENNANT
during the fiscal year and ultimately midst of the global economic recession
ended August 2009 at a rate of 9.7% during the fiscal year. As a result, NEWS Chartered Financial
nationwide.(3) CORP., a diversified media company with Analyst, portfolio
resources in filmed entertainment, the [TENNANT manager, is lead
Against this backdrop, financial Internet, television and newspapers, also PHOTO] manager of AIM
services, energy, industrials and detracted from Fund performance. Shares of Multi-Sector Fund with
materials were among the weakest News Corp. were sold during the fiscal respect to the
performing sectors of the S&P 500 Index. year. Within consumer discretionary, new Fund's investments in the information
Conversely, consumer staples, information portfolio additions included FAMILY DOLLAR technology sector. He has been associated
technology and health care were the best STORES and TARGET as we believed consumers with Invesco Aim and/or its affiliates
performing sectors. The Fund's overweight would be driven to the price point general since 2000.Mr. Tennant earned both a
to the five primary sectors it invests in merchandise stores. B.B.A. in finance and an M.B.A. from The
relative to the S&P 500 Index affected University of Texas at Austin.
relative performance. The Fund's lack of LIFE TECHNOLOGIES was the top
exposure in the industrials and materials contributor to absolute Fund performance JUAN HARTSFIELD
sectors benefited our benchmark-relative during the fiscal year. Life Technologies
performance. manufactures tools used in basic research Chartered Financial
at pharmaceutical firms and is expected to Analyst, portfolio
As is customary, the Fund held a small benefit from spending increases by the [HARTSFIELD manager, is lead
amount of cash which also benefited National Institutes of Health. Therefore, PHOTO] manager of AIM
relative performance due to volatility in we believed this company may have Multi-Sector Fund with
the stock market. On the other hand, defensive growth characteristics. respect to the
overweight exposure in the financials and Fund's investments in the leisure sector.
energy sectors and security selection in Also among top contributors to Fund He began his investment career in 2000 and
the consumer discretionary sector hurt performance was WEATHERFORD INTERNATIONAL, joined Invesco Aim in 2004. Mr. Hartsfield
Fund performance relative to the S&P 500 a diversified energy service provider. earned a B.S. in petroleum engineering
Index. Energy service stocks experienced a from The University of Texas at Austin and
significant sell-off in the second half of an M.B.A. from the University of Michigan.
The largest single detractor from 2008 but benefited from the rally that
Fund performance was CITIGROUP, which began in March.
struggled with credit-related losses ANDREW LEES
during the fiscal year and lacked an The Fund continues to offer exposure
excess capital cushion to absorb the to five dynamic sectors we believe Portfolio manager, is
sizable losses. In an effort to restore offer the best growth potential, lead manager of AIM
market confidence, the company received yet with relatively low correlation to [LEES Multi-Sector Fund with
capital infusions under government each other. Additionally, the Fund's PHOTO] respect to the Fund's
programs twice during 2008. Then in structure provides potentially lower investments in the
February 2009, the company took the volatility than a single sector given our energy sector.
dramatic step of recapitalizing via a annual rebalancing and correlation He began his investment career in 1994 and
preferred stock for common stock exchange. considerations.
The result, in our opinion, bolstered joined Invesco Aim in 2005. Mr. Lees
Citigroup's capital position to among the earned a B.A. in economics from the
strongest in the world, but diluted our As always, we thank you for your University of Western Ontario and an
estimate of intrinsic value -- a value continued investment in AIM Multi-Sector M.B.A. with concentrations in finance and
that is based on the estimated future cash Fund. accounting from McGill University.
flows generated by the business. The Fund
continued to own shares of Citigroup at (1) U.S. Federal Reserve MICHAEL SIMON
fiscal year-end.
(2) Bureau of Economic Analysis Chartered Financial
S&P 500 INDEX WEIGHTINGS AND RETURNS Analyst, senior
By sector, 8/31/08-8/31/09 (3) Bureau of Labor Statistics portfolio manager, is
[SIMON lead manager of AIM
WEIGHTING(1) The views and opinions expressed in PHOTO] Multi-Sector Fund with
SECTOR as of 8/31/09 RETURN(2) management's discussion of Fund respect to the Fund's
Consumer performance are those of Invesco Aim investments in the
Discretionary Advisors, Inc. These views and opinions financial
("Leisure") 9.08% -12.49% are subject to change at any time based on services sector. He began his investment
Consumer Staples 11.48 -9.22 factors such as market and economic career in 1989 and joined Invesco Aim in
Energy 11.65 -28.01 conditions. These views and opinions may 2001. Mr. Simon earned a B.B.A. in finance
Financials 15.37 -28.72 not be relied upon as investment advice or from Texas Christian University and an
Health Care 13.51 -10.52 recommendations, or as an offer for a M.B.A. from the University of Chicago.
Industrials 10.02 -27.95 particular security. The information is
Information not a complete analysis of every aspect of DEREK TANER
Technology 18.47 -9.38 any market, country, industry, security or
Materials 3.40 -24.28 the Fund. Statements of fact are from Chartered Financial
Telecommunication sources considered reliable, but Invesco Analyst, portfolio
Services 3.20 -15.12 Aim Advisors, Inc. makes no representation manager, is lead
Utilities 3.81 -18.79 or warranty as to their completeness or [TANER manager of AIM
Sources: accuracy. Although historical performance PHOTO] Multi-Sector Fund with
is no guarantee of future results, these respect to the Fund's
(1) Invesco Aim, Standard & Poor's insights may help you understand our investments in the
investment management philosophy. health care
(2) Lipper Inc. sector. He began his investment career in
See important Fund and index disclosures 1993 and joined Invesco Aim in 2005. Mr.
later in this report. Taner earned a B.S. in business
administration with an emphasis in
accounting and finance and an M.B.A. from
the Haas School of Business at the
University of California (Berkeley).
5 AIM MULTI-SECTOR FUND
</Table>
<Table>
- ------------------------------------------------------------------------------------------------------------------------------------
YOUR FUND'S LONG-TERM PERFORMANCE
RESULTS OF A $10,000 INVESTMENT - OLDEST SHARE CLASSES WITH SALES CHARGES SINCE INCEPTION
Index data from 8/31/02, Fund data from 9/3/02
(PERFORMANCE GRAPH)
AIM MULTI- AIM MULTI- AIM MULTI- LIPPER
SECTOR FUND- SECTOR FUND- SECTOR FUND- MULTI-CAP
CLASS A CLASS B CLASS C S&P 500 CORE FUNDS
SHARES SHARES SHARES INDEX(1) INDEX(1)
------------ ------------ ------------ -------- -----------
8/31/2002 10000 10000
09/02 9160 9687 9687 8914 9080
10/02 9727 10281 10281 9698 9655
11/02 10155 10728 10728 10268 10243
12/02 9701 10247 10247 9665 9655
01/03 9657 10194 10194 9413 9492
02/03 9563 10087 10087 9271 9328
03/03 9638 10167 10167 9361 9358
04/03 10274 10827 10827 10132 10086
05/03 11093 11686 11673 10665 10768
06/03 11143 11733 11727 10801 10929
07/03 11281 11867 11854 10992 11140
08/03 11533 12127 12113 11206 11482
09/03 11300 11867 11860 11087 11330
10/03 11917 12507 12500 11714 12004
11/03 12087 12681 12674 11817 12192
12/03 12665 13279 13272 12436 12678
01/04 12998 13618 13611 12664 12976
02/04 13246 13867 13867 12840 13177
03/04 13128 13742 13735 12647 13028
04/04 12828 13418 13411 12448 12753
05/04 12887 13473 13473 12619 12906
06/04 13245 13839 13832 12864 13192
07/04 12691 13253 13246 12438 12651
08/04 12633 13184 13184 12488 12642
09/04 13167 13736 13729 12624 12912
10/04 13422 13991 13992 12816 13107
11/04 14106 14695 14688 13335 13765
12/04 14511 15110 15104 13788 14249
01/05 14229 14812 14806 13452 13924
02/05 14898 15499 15495 13735 14206
03/05 14536 15116 15112 13492 13983
04/05 14202 14755 14757 13237 13602
05/05 14891 15471 15467 13657 14159
06/05 15226 15805 15801 13677 14315
07/05 15922 16521 16517 14185 14922
08/05 16168 16762 16758 14056 14854
09/05 16262 16854 16850 14170 14987
10/05 15895 16457 16461 13933 14677
11/05 16530 17108 17106 14460 15242
12/05 16787 17365 17363 14465 15420
01/06 17708 18304 18304 14848 15993
02/06 17388 17964 17963 14888 15929
03/06 17640 18210 18209 15074 16284
04/06 18090 18665 18665 15276 16486
05/06 17400 17943 17941 14837 15915
06/06 17393 17928 17926 14856 15868
07/06 17230 17740 17738 14948 15678
08/06 17421 17928 17926 15303 16049
09/06 17749 18255 18252 15697 16393
10/06 18185 18696 18694 16208 17003
11/06 18778 19289 19287 16516 17406
12/06 18926 19432 19429 16748 17601
01/07 19135 19636 19633 17001 17984
02/07 18878 19357 19354 16669 17747
03/07 19107 19578 19575 16855 17934
04/07 19840 20325 20315 17602 18632
05/07 20630 21116 21113 18215 19329
06/07 20380 20846 20843 17913 19162
07/07 19950 20400 20395 17358 18549
08/07 20054 20487 20483 17618 18669
09/07 20983 21440 21435 18276 19319
10/07 21614 22055 22050 18567 19709
11/07 20380 20789 20776 17790 18823
12/07 20337 20729 20724 17667 18651
01/08 19052 19407 19402 16608 17604
02/08 18863 19199 19194 16069 17140
03/08 18486 18807 18803 15999 16899
04/08 19699 20030 20027 16778 17748
05/08 20512 20845 20842 16995 18183
06/08 19154 19453 19449 15564 16733
07/08 18158 18429 18426 15433 16489
08/08 18405 18667 18666 15656 16646
09/08 16152 16367 16364 14263 14790
10/08 13218 13390 13388 11868 11996
11/08 11620 11767 11764 11016 10949
12/08 11693 11828 11833 11132 11294
01/09 10836 10954 10959 10195 10495
02/09 9894 9991 9995 9113 9524
03/09 10667 10768 10764 9910 10293
04/09 11853 11965 11962 10857 11627
05/09 12802 12912 12910 11464 12344
06/09 12749 12855 12853 11487 12333
07/09 13789 13891 13889 12354 13356
08/09 14303 14384 14377 12800 13811
(1) Lipper Inc.
Past performance cannot guarantee an index of funds reflects fund expenses shown in the chart. The vertical axis, the
comparable future results. and management fees; performance of a one that indicates the dollar value of an
market index does not. Performance shown investment, is constructed with each
The data shown in the chart include in the chart and table(s) does not reflect segment representing a percent change in
reinvested distributions, applicable sales deduction of taxes a shareholder would pay the value of the investment. In this
charges, Fund expenses and management on Fund distributions or sale of Fund chart, each segment represents a doubling,
fees. Results for Class B shares are shares. or 100% change, in the value of the
calculated as if a hypothetical investment. In other words, the space
shareholder had liquidated his entire This chart, which is a logarithmic between $5,000 and $10,000 is the same
investment in the Fund at the close of the chart, presents the fluctuations in the size as the space between $10,000 and
reporting period and paid the applicable value of the Fund and its indexes. We $20,000, and so on.
contingent deferred sales charges. Index believe that a logarithmic chart is more
results include reinvested dividends, but effective than other types of charts in
they do not reflect sales charges. illustrating changes in value during the
Performance of early years
6 AIM MULTI-SECTOR FUND
</Table>
<Table>
- ------------------------------------------ ------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS AVERAGE ANNUAL TOTAL RETURNS EXPENSE RATIO SET FORTH IN THE MOST RECENT
FUND PROSPECTUS AS OF THE DATE OF THIS
As of 8/31/09, including maximum As of 6/30/09, the most recent calendar REPORT FOR CLASS A, CLASS B, CLASS C AND
applicable sales charges quarter-end, including maximum applicable CLASS Y SHARES WAS 1.22%, 1.97%, 1.97% AND
sales charges 0.97%, RESPECTIVELY. THE EXPENSE RATIOS
CLASS A SHARES PRESENTED ABOVE MAY VARY FROM THE EXPENSE
Inception (9/3/02) 5.25% CLASS A SHARES RATIOS PRESENTED IN OTHER SECTIONS OF THIS
5 Years 1.35 Inception (9/3/02) 3.63% REPORT THAT ARE BASED ON EXPENSES INCURRED
1 Year -26.60 5 Years -1.87 DURING THE PERIOD COVERED BY THIS
CLASS B SHARES 1 Year -37.09 REPORT.
Inception (9/3/02) 5.34% CLASS B SHARES
5 Years 1.41 Inception (9/3/02) 3.75% CLASS A SHARE PERFORMANCE REFLECTS THE
1 Year -26.60 5 Years -1.80 MAXIMUM 5.50% SALES CHARGE, AND CLASS B
CLASS C SHARES 1 Year -37.05 AND CLASS C SHARE PERFORMANCE REFLECTS THE
Inception (9/3/02) 5.33% CLASS C SHARES APPLICABLE CONTINGENT DEFERRED SALES
5 Years 1.75 Inception (9/3/02) 3.74% CHARGE (CDSC) FOR THE PERIOD INVOLVED. THE
1 Year -23.68 5 Years -1.46 CDSC ON CLASS B SHARES DECLINES FROM 5%
CLASS Y SHARES 1 Year -34.55 BEGINNING AT THE TIME OF PURCHASE TO 0% AT
Inception 6.14% CLASS Y SHARES THE BEGINNING OF THE SEVENTH YEAR. THE
5 Years 2.56 Inception 4.53% CDSC ON CLASS C SHARES IS 1% FOR THE FIRST
1 Year -22.14 5 Years -0.71 YEAR AFTER PURCHASE. CLASS Y SHARES DO NOT
1 Year -33.30 HAVE A FRONT-END SALES CHARGE OR A CDSC;
THEREFORE, PERFORMANCE IS AT NET ASSET
VALUE.
CLASS Y SHARES' INCEPTION DATE IS OCTOBER
3, 2008; RETURNS SINCE THAT DATE ARE RESULTS; CURRENT PERFORMANCE MAY BE LOWER THE PERFORMANCE OF THE FUND'S SHARE
ACTUAL RETURNS. ALL OTHER RETURNS ARE OR HIGHER. PLEASE VISIT INVESCOAIM.COM FOR CLASSES WILL DIFFER PRIMARILY DUE TO
BLENDED RETURNS OF ACTUAL CLASS Y SHARE THE MOST RECENT MONTH-END PERFORMANCE. DIFFERENT SALES CHARGE STRUCTURES AND
PERFORMANCE AND RESTATED CLASS A SHARE PERFORMANCE FIGURES REFLECT REINVESTED CLASS EXPENSES.
PERFORMANCE (FOR PERIODS PRIOR TO THE DISTRIBUTIONS, CHANGES IN NET ASSET VALUE
INCEPTION DATE OF CLASS Y SHARES) AT NET AND THE EFFECT OF THE MAXIMUM SALES CHARGE HAD THE ADVISOR NOT WAIVED FEES AND/OR
ASSET VALUE. THE RESTATED CLASS A SHARE UNLESS OTHERWISE STATED. INVESTMENT RETURN REIMBURSED EXPENSES IN THE PAST,
PERFORMANCE REFLECTS THE RULE 12B-1 FEES AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT PERFORMANCE WOULD HAVE BEEN LOWER.
APPLICABLE TO CLASS A SHARES AS WELL AS YOU MAY HAVE A GAIN OR LOSS WHEN YOU SELL
ANY FEE WAIVERS OR EXPENSE REIMBURSEMENTS SHARES. (1) Total annual operating expenses less
RECEIVED BY CLASS A SHARES. CLASS A any contractual fee waivers and/or
SHARES' INCEPTION DATE IS SEPTEMBER 3, THE NET ANNUAL FUND OPERATING EXPENSE expense reimbursements by the advisor
2002. RATIO SET FORTH IN THE MOST RECENT FUND in effect through at least June 30,
PROSPECTUS AS OF THE DATE OF THIS REPORT 2010. See current prospectus for more
THE PERFORMANCE DATA QUOTED REPRESENT FOR CLASS A, CLASS B, CLASS C AND CLASS Y information.
PAST PERFORMANCE AND CANNOT GUARANTEE SHARES WAS 1.21%, 1.96%, 1.96% AND 0.96%,
COMPARABLE FUTURE RESPECTIVELY.(1) THE TOTAL ANNUAL FUND
OPERATING
- ------------------------------------------------------------------------------------------------------------------------------------
continued from page 8
------------------------------------------
- - The Fund is not managed to track the OTHER INFORMATION assets of the Fund at period end for
performance of any particular index, financial reporting purposes, and as
including the indexes defined here, and - The Chartered Financial Analysts(R) such, the net asset values for
consequently, the performance of the (CFA(R)) designation is globally shareholder transactions and the
Fund may deviate significantly from the recognized and attests to a returns based on those net asset values
performance of the indexes. charterholder's success in a rigorous may differ from the net asset values
and comprehensive study program in the and returns reported in the Financial
- - A direct investment cannot be made in field of investment management and Highlights.
an index. Unless otherwise indicated, research analysis.
index results include reinvested - Industry classifications used in this
dividends, and they do not reflect - The returns shown in management's report are generally according to the
sales recharges. Performance of an discussion of Fund performance are Global Industry Classification
index of funds reflects fund expenses; based on net asset values calculated Standard, which was developed by and is
performance of a market index does not. for shareholder transactions. Generally the exclusive property and a service
accepted accounting principles require mark of MSCI Inc. and Standard &
adjustments to be made to the net Poor's.
7 AIM MULTI-SECTOR FUND
</Table>
<Table>
- ------------------------------------------------------------------------------------------------------------------------------------
AIM MULTI-SECTOR FUND'S INVESTMENT OBJECTIVE IS CAPITAL GROWTH.
- - Unless otherwise stated, information presented in this report is as of August 31, 2009, and is based on total net assets.
- - Unless otherwise noted, all data provided by Invesco Aim.
ABOUT SHARE CLASSES services offered by health care can cause significant price volatility.
companies. Also, the products and The securities of small and mid-sized
- - Effective September 30, 2003, for services offered by health care companies may be illiquid, restricted
qualified plans only, those previously companies may be subject to rapid as to resale, or may trade less
established are eligible to purchase obsolescence caused by scientific frequently and in smaller volume than
Class B shares of any AIM fund. Please advances and technological innovations, more widely held securities, which may
see the prospectus for more which can cause Fund shares to rise and make it difficult for fund to establish
information. fall more than the value of shares of or close out a position in these
funds that invest more broadly. securities at prevailing market prices.
- - Class Y shares are available to only
certain investors. Please see the - The Fund's investments in different - The prices of securities held by the
prospectus for more information. independently managed sectors create Fund may decline in response to market
allocation risk, which is the risk that risks.
PRINCIPAL RISKS OF INVESTING IN THE FUND the allocation of investments among the
sectors may have a more significant - The Fund's investments are concentrated
- - The businesses in which the Fund effect on the Fund's net asset value in a comparatively narrow segment of
invests may be adversely affected by when one of the sectors is performing the economy. Consequently, the Fund may
foreign government, federal or state more poorly than the other(s). Active tend to be more volatile than other
regulations on energy production, rebalancing of the Fund among the mutual funds, and the value of the
distribution and sale. Short-term sectors may result in increased Fund's investments may tend to rise and
fluctuations in commodity prices may transaction costs. fall more rapidly.
influence Fund returns and increase
price fluctuations of the Fund's - The leisure sector depends on consumer - Many of the products and services
shares. discretionary spending, which generally offered in technology-related
falls during economic downturns. industries are subject to rapid
- - Prices of equity securities change in obsolescence, which may lower the value
response to many factors, including the - There is no guarantee that the of securities of companies in this
historical and prospective earnings of investment techniques and risk analysis sector.
the issuer, the value of its assets, used by the Fund's portfolio managers
general economic conditions, interest will produce the desired results. - Start-up or early stage companies, such
rates, investor perceptions and market as venture capital companies, generally
liquidity. - Stocks fall into three broad market have limited operating histories, no
capitalization categories -- large, present market for their technologies
- - The financial services sector is medium, and small. Investing primarily or products, and no history of earnings
subject to extensive government in one category carries the risk that, or financial services.
regulation, which may change due to current market conditions, that
frequently. The profitability of category may be out of favor with ------------------------------------------
businesses in this sector depends investors. Small and mid-sized ABOUT INDEXES USED IN THIS REPORT
heavily on the availability and cost of companies may tend to be more
money and may fluctuate significantly vulnerable to adverse developments and - The S&P 500(R) INDEX is a market
in response to changes to interest more volatile than larger companies. capitalization-weighted index covering
rates and general economic conditions. Investments in small and mid-sized all major areas of the U.S. economy. It
companies may involve special risks, is not the 500 largest companies, but
- - Foreign securities have additional including those associated with rather the most widely held 500
risks, including exchange rate changes, dependence on a small management group, companies chosen with respect to market
political and economic upheaval, little of no operating history, little size, liquidity and their industry.
relative lack of information, or no track record of success, and
relatively low market liquidity, and limited product lines, market and - The LIPPER MULTI-CAP CORE FUNDS INDEX
the potential lack of strict financial financial resources. Also, there may be is an equally weighted representation
and accounting controls and standards. less publicly available information of the largest funds in the Lipper
about the issuers of the securities or Multi-Cap Core Funds category. These
- - The value of the Fund's shares is less market interest in such securities funds typically have an average
particularly vulnerable to factors than in the case of larger companies, price-to-earnings ratio, price-to-book
affecting the health care industry, each of which ratio, and three-year sales-per-share
such as substantial government growth value, compared to the S&P
regulation that may affect the demand Composite 1500 Index.
for products and
continued on page 7
------------------------------------------
FUND NASDAQ SYMBOLS
THIS REPORT MUST BE ACCOMPANIED OR PRECEDED BY A CURRENTLY EFFECTIVE FUND PROSPECTUS, Class A Shares IAMSX
WHICH CONTAINS MORE COMPLETE INFORMATION, INCLUDING SALES CHARGES AND EXPENSES. Class B Shares IBMSX
INVESTORS SHOULD READ IT CAREFULLY BEFORE INVESTING. Class C Shares ICMSX
Class Y Shares IAMYX
- ---------------------------------------------------------------------------------------
NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE
8 AIM MULTI-SECTOR FUND
</Table>
SCHEDULE OF INVESTMENTS(a)
August 31, 2009
<Table>
<Caption>
SHARES VALUE
- -------------------------------------------------------------------------------
COMMON STOCKS & OTHER EQUITY INTERESTS-98.19%
ADVERTISING-1.21%
Omnicom Group Inc. 127,116 $ 4,616,853
===============================================================================
APPAREL RETAIL-0.89%
TJX Cos., Inc. (The) 94,929 3,412,698
===============================================================================
APPAREL, ACCESSORIES & LUXURY GOODS-0.97%
Polo Ralph Lauren Corp. 56,010 3,717,944
===============================================================================
APPLICATION SOFTWARE-0.69%
Adobe Systems Inc.(b) 84,031 2,640,254
===============================================================================
ASSET MANAGEMENT & CUSTODY BANKS-1.41%
Federated Investors, Inc.-Class B 79,594 2,089,342
- -------------------------------------------------------------------------------
State Street Corp. 63,395 3,326,970
===============================================================================
5,416,312
===============================================================================
BIOTECHNOLOGY-7.47%
Amgen Inc.(b) 120,895 7,222,267
- -------------------------------------------------------------------------------
BioMarin Pharmaceutical Inc.(b) 160,004 2,635,266
- -------------------------------------------------------------------------------
Celgene Corp.(b) 98,351 5,130,972
- -------------------------------------------------------------------------------
Genzyme Corp.(b) 76,033 4,235,799
- -------------------------------------------------------------------------------
Gilead Sciences, Inc.(b) 128,119 5,773,042
- -------------------------------------------------------------------------------
United Therapeutics Corp.(b) 39,561 3,620,227
===============================================================================
28,617,573
===============================================================================
BREWERS-2.11%
Anheuser-Busch InBev N.V. (Belgium) 98,374 4,247,487
- -------------------------------------------------------------------------------
Heineken N.V. (Netherlands)(c) 91,284 3,853,675
===============================================================================
8,101,162
===============================================================================
CABLE & SATELLITE-0.98%
Comcast Corp.-Class A 245,150 3,755,698
- -------------------------------------------------------------------------------
Time Warner Cable, Inc. -- 0
===============================================================================
3,755,698
===============================================================================
CASINOS & GAMING-2.24%
International Game Technology 240,945 5,040,569
- -------------------------------------------------------------------------------
Penn National Gaming, Inc.(b) 120,903 3,531,577
===============================================================================
8,572,146
===============================================================================
COMMUNICATIONS EQUIPMENT-3.35%
Cisco Systems, Inc.(b) 198,299 4,283,259
- -------------------------------------------------------------------------------
QUALCOMM Inc. 117,672 5,462,334
- -------------------------------------------------------------------------------
Research In Motion Ltd. (Canada)(b) 42,133 3,078,237
===============================================================================
12,823,830
===============================================================================
COMPUTER HARDWARE-3.79%
Apple Inc.(b) 46,397 7,804,440
- -------------------------------------------------------------------------------
Hewlett-Packard Co. 149,516 6,711,773
===============================================================================
14,516,213
===============================================================================
COMPUTER STORAGE & PERIPHERALS-1.82%
EMC Corp.(b) 295,686 4,701,407
- -------------------------------------------------------------------------------
Western Digital Corp.(b) 66,332 2,273,861
===============================================================================
6,975,268
===============================================================================
CONSUMER FINANCE-2.64%
American Express Co. 129,757 4,388,382
- -------------------------------------------------------------------------------
Capital One Financial Corp. 153,721 5,732,256
===============================================================================
10,120,638
===============================================================================
DATA PROCESSING & OUTSOURCED SERVICES-0.69%
MasterCard, Inc.-Class A 8,277 1,677,168
- -------------------------------------------------------------------------------
Western Union Co. 54,094 975,856
===============================================================================
2,653,024
===============================================================================
DEPARTMENT STORES-2.07%
Kohl's Corp.(b) 87,994 4,539,610
- -------------------------------------------------------------------------------
Nordstrom, Inc.(c) 121,274 3,400,523
===============================================================================
7,940,133
===============================================================================
DIVERSIFIED CAPITAL MARKETS-0.96%
UBS AG (Switzerland)(b) 201,038 3,683,016
===============================================================================
DRUG RETAIL-1.23%
CVS Caremark Corp. 126,049 4,729,358
===============================================================================
ELECTRONIC COMPONENTS-1.01%
Corning Inc. 256,445 3,867,191
===============================================================================
ELECTRONIC MANUFACTURING SERVICES-0.12%
Flextronics International Ltd. (Singapore)(b) 76,324 452,601
===============================================================================
GENERAL MERCHANDISE STORES-2.03%
Family Dollar Stores, Inc. 106,356 3,220,460
- -------------------------------------------------------------------------------
Target Corp. 96,939 4,556,133
===============================================================================
7,776,593
===============================================================================
HEALTH CARE EQUIPMENT-1.35%
Medtronic, Inc. 135,106 5,174,560
===============================================================================
HEALTH CARE FACILITIES-0.71%
Rhoen-Klinikum AG (Germany) 121,643 2,734,652
===============================================================================
</Table>
See accompanying Notes to Financial Statements which are an integral part of the
financial statements.
9 AIM MULTI-SECTOR FUND
<Table>
<Caption>
SHARES VALUE
- -------------------------------------------------------------------------------
HEALTH CARE SERVICES-3.04%
DaVita, Inc.(b) 124,901 $ 6,458,631
- -------------------------------------------------------------------------------
Express Scripts, Inc.(b) 71,790 5,184,674
===============================================================================
11,643,305
===============================================================================
HOME ENTERTAINMENT SOFTWARE-0.29%
Nintendo Co., Ltd. (Japan) 4,100 1,105,612
===============================================================================
HOTELS, RESORTS & CRUISE LINES-1.19%
Marriott International, Inc.-Class A 190,813 4,560,441
===============================================================================
INSURANCE BROKERS-0.73%
Marsh & McLennan Cos., Inc. 119,010 2,801,495
===============================================================================
INTEGRATED OIL & GAS-5.93%
BP PLC-ADR (United Kingdom) 45,000 2,315,250
- -------------------------------------------------------------------------------
Exxon Mobil Corp. 47,000 3,250,050
- -------------------------------------------------------------------------------
Hess Corp. 38,000 1,922,420
- -------------------------------------------------------------------------------
Marathon Oil Corp. 84,000 2,593,080
- -------------------------------------------------------------------------------
Occidental Petroleum Corp. 70,000 5,117,000
- -------------------------------------------------------------------------------
Petroleo Brasileiro S.A.-ADR (Brazil) 93,000 3,686,520
- -------------------------------------------------------------------------------
Total S.A.-ADR (France) 67,000 3,837,090
===============================================================================
22,721,410
===============================================================================
INTERNET SOFTWARE & SERVICES-2.85%
Google Inc.-Class A(b) 23,659 10,922,651
===============================================================================
INVESTMENT BANKING & BROKERAGE-0.59%
Morgan Stanley 78,514 2,273,765
===============================================================================
IT CONSULTING & OTHER SERVICES-0.92%
Amdocs Ltd.(b) 144,351 3,510,616
===============================================================================
LIFE & HEALTH INSURANCE-0.59%
StanCorp Financial Group, Inc. 59,753 2,261,651
===============================================================================
LIFE SCIENCES TOOLS & SERVICES-4.22%
Life Technologies Corp.(b) 137,255 6,111,965
- -------------------------------------------------------------------------------
Pharmaceutical Product Development, Inc. 187,190 3,764,391
- -------------------------------------------------------------------------------
Thermo Fisher Scientific, Inc.(b) 139,004 6,284,371
===============================================================================
16,160,727
===============================================================================
MANAGED HEALTH CARE-1.53%
UnitedHealth Group Inc. 209,998 5,879,944
===============================================================================
MOVIES & ENTERTAINMENT-2.53%
Time Warner Inc. 131,045 3,657,466
- -------------------------------------------------------------------------------
Walt Disney Co. (The) 232,406 6,051,852
===============================================================================
9,709,318
===============================================================================
OIL & GAS DRILLING-1.93%
ENSCO International Inc. 70,000 2,583,000
- -------------------------------------------------------------------------------
Noble Corp. 59,000 2,066,770
- -------------------------------------------------------------------------------
Transocean Ltd.(b) 36,000 2,730,240
===============================================================================
7,380,010
===============================================================================
OIL & GAS EQUIPMENT & SERVICES-2.82%
Halliburton Co. 149,000 3,532,790
- -------------------------------------------------------------------------------
National-Oilwell Varco Inc.(b) 80,000 2,908,000
- -------------------------------------------------------------------------------
Weatherford International Ltd.(b) 219,000 4,369,050
===============================================================================
10,809,840
===============================================================================
OIL & GAS EXPLORATION & PRODUCTION-6.03%
Apache Corp. 51,000 4,332,450
- -------------------------------------------------------------------------------
Chesapeake Energy Corp. 89,000 2,032,760
- -------------------------------------------------------------------------------
Continental Resources, Inc.(b)(c) 105,000 3,706,500
- -------------------------------------------------------------------------------
Devon Energy Corp. 34,000 2,086,920
- -------------------------------------------------------------------------------
EOG Resources, Inc. 37,000 2,664,000
- -------------------------------------------------------------------------------
Range Resources Corp. 91,000 4,401,670
- -------------------------------------------------------------------------------
Southwestern Energy Co.(b) 105,000 3,870,300
===============================================================================
23,094,600
===============================================================================
OTHER DIVERSIFIED FINANCIAL SERVICES-3.07%
Bank of America Corp. 268,170 4,717,110
- -------------------------------------------------------------------------------
Citigroup Inc. 516,697 2,583,485
- -------------------------------------------------------------------------------
JPMorgan Chase & Co. 102,253 4,443,916
===============================================================================
11,744,511
===============================================================================
PHARMACEUTICALS-2.88%
Novartis AG-ADR (Switzerland) 74,659 3,469,404
- -------------------------------------------------------------------------------
Roche Holding AG (Switzerland) 36,716 5,842,367
- -------------------------------------------------------------------------------
Wyeth 36,173 1,730,878
===============================================================================
11,042,649
===============================================================================
PROPERTY & CASUALTY INSURANCE-1.44%
XL Capital Ltd.-Class A 318,434 5,524,830
===============================================================================
REGIONAL BANKS-2.64%
Fifth Third Bancorp 416,726 4,558,983
- -------------------------------------------------------------------------------
SunTrust Banks, Inc. 124,001 2,897,903
- -------------------------------------------------------------------------------
Zions Bancorp.(c) 150,720 2,663,222
===============================================================================
10,120,108
===============================================================================
RESTAURANTS-2.09%
Darden Restaurants, Inc. 131,144 4,318,572
- -------------------------------------------------------------------------------
McDonald's Corp. 65,864 3,704,191
===============================================================================
8,022,763
===============================================================================
</Table>
See accompanying Notes to Financial Statements which are an integral part of the
financial statements.
10 AIM MULTI-SECTOR FUND
<Table>
<Caption>
SHARES VALUE
- -------------------------------------------------------------------------------
SEMICONDUCTOR EQUIPMENT-1.26%
ASML Holding N.V.-New York Shares (Netherlands)(c) 96,430 $ 2,648,932
- -------------------------------------------------------------------------------
Cymer, Inc.(b) 62,397 2,195,127
===============================================================================
4,844,059
===============================================================================
SEMICONDUCTORS-3.09%
Avago Technologies Ltd. (Singapore)(b) 72,553 1,320,465
- -------------------------------------------------------------------------------
Intel Corp. 277,133 5,631,342
- -------------------------------------------------------------------------------
Taiwan Semiconductor Manufacturing Co. Ltd.-ADR
(Taiwan)(c) 252,121 2,697,695
- -------------------------------------------------------------------------------
Xilinx, Inc. 98,098 2,181,699
===============================================================================
11,831,201
===============================================================================
SOFT DRINKS-1.12%
PepsiCo, Inc. 75,712 4,290,599
===============================================================================
SPECIALIZED CONSUMER SERVICES-0.36%
H&R Block, Inc. 79,389 1,371,842
===============================================================================
SPECIALIZED FINANCE-0.60%
Moody's Corp. 83,844 2,283,911
===============================================================================
SPECIALTY STORES-0.82%
PetSmart, Inc. 150,902 3,155,361
===============================================================================
SYSTEMS SOFTWARE-3.35%
Ariba Inc.(b) 278,489 3,191,484
- -------------------------------------------------------------------------------
Microsoft Corp. 257,541 6,348,386
- -------------------------------------------------------------------------------
Oracle Corp. 150,935 3,300,948
===============================================================================
12,840,818
===============================================================================
TECHNOLOGY DISTRIBUTORS-0.54%
Anixter International Inc.(b) 58,919 2,066,879
===============================================================================
Total Common Stocks & Other Equity Interests
(Cost $407,130,343) 376,272,633
===============================================================================
MONEY MARKET FUNDS-1.80%
Liquid Assets Portfolio-Institutional Class(d) 3,447,963 3,447,963
- -------------------------------------------------------------------------------
Premier Portfolio-Institutional Class(d) 3,447,964 3,447,964
===============================================================================
Total Money Market Funds (Cost $6,895,927) 6,895,927
===============================================================================
TOTAL INVESTMENTS (excluding investments purchased
with cash collateral from securities on
loan)-99.99% (Cost $414,026,270) 383,168,560
===============================================================================
INVESTMENTS PURCHASED WITH CASH COLLATERAL FROM SECURITIES ON
LOAN
MONEY MARKET FUNDS-3.20%
Liquid Assets Portfolio-Institutional Class (Cost
$12,278,327)(d)(e) 12,278,327 12,278,327
===============================================================================
TOTAL INVESTMENTS-103.19% (Cost $426,304,597) 395,446,887
===============================================================================
OTHER ASSETS LESS LIABILITIES-(3.19)% (12,240,817)
===============================================================================
NET ASSETS-100.00% $383,206,070
_______________________________________________________________________________
===============================================================================
</Table>
Investment Abbreviations:
<Table>
ADR - American Depositary Receipt
</Table>
Notes to Schedule of Investments:
(a) Industry and/or sector classifications used in this report are generally
according to the Global Industry Classification Standard, which was
developed by and is the exclusive property and a service mark of MSCI Inc.
and Standard & Poor's.
(b) Non-income producing security.
(c) All or a portion of this security was out on loan at August 31, 2009.
(d) The money market fund and the Fund are affiliated by having the same
investment advisor.
(e) The security has been segregated to satisfy the commitment to return the
cash collateral received in securities lending transactions upon the
borrower's return of the securities loaned. See Note 1I.
See accompanying Notes to Financial Statements which are an integral part of the
financial statements.
11 AIM MULTI-SECTOR FUND
STATEMENT OF ASSETS AND LIABILITIES
August 31, 2009
<Table>
ASSETS:
Investments, at value (Cost $407,130,343)* $ 376,272,633
- ---------------------------------------------------------------------------------
Investments in affiliated money market funds, at value and cost 19,174,254
=================================================================================
Total investments, at value (Cost $426,304,597) 395,446,887
=================================================================================
Receivables for:
Investments sold 2,363,869
- ---------------------------------------------------------------------------------
Fund shares sold 233,720
- ---------------------------------------------------------------------------------
Dividends 409,317
- ---------------------------------------------------------------------------------
Investment for trustee deferred compensation and retirement plans 10,154
- ---------------------------------------------------------------------------------
Other assets 26,070
=================================================================================
Total assets 398,490,017
_________________________________________________________________________________
=================================================================================
LIABILITIES:
Payables for:
Investments purchased 1,814,505
- ---------------------------------------------------------------------------------
Fund shares reacquired 764,388
- ---------------------------------------------------------------------------------
Collateral upon return of securities loaned 12,278,327
- ---------------------------------------------------------------------------------
Accrued fees to affiliates 278,469
- ---------------------------------------------------------------------------------
Accrued other operating expenses 101,965
- ---------------------------------------------------------------------------------
Trustee deferred compensation and retirement plans 46,293
=================================================================================
Total liabilities 15,283,947
=================================================================================
Net assets applicable to shares outstanding $ 383,206,070
_________________________________________________________________________________
=================================================================================
NET ASSETS CONSIST OF:
Shares of beneficial interest $ 572,850,303
- ---------------------------------------------------------------------------------
Undistributed net investment income 1,406,338
- ---------------------------------------------------------------------------------
Undistributed net realized gain (loss) (160,193,675)
- ---------------------------------------------------------------------------------
Unrealized appreciation (depreciation) (30,856,896)
=================================================================================
$ 383,206,070
_________________________________________________________________________________
=================================================================================
NET ASSETS:
Class A $ 218,771,544
_________________________________________________________________________________
=================================================================================
Class B $ 37,205,571
_________________________________________________________________________________
=================================================================================
Class C $ 44,022,967
_________________________________________________________________________________
=================================================================================
Class Y $ 1,071,826
_________________________________________________________________________________
=================================================================================
Institutional Class $ 82,134,162
_________________________________________________________________________________
=================================================================================
SHARES OUTSTANDING, $0.01 PAR VALUE PER SHARE, UNLIMITED NUMBER OF SHARES
AUTHORIZED:
Class A 11,713,859
_________________________________________________________________________________
=================================================================================
Class B 2,092,368
_________________________________________________________________________________
=================================================================================
Class C 2,477,276
_________________________________________________________________________________
=================================================================================
Class Y 57,270
_________________________________________________________________________________
=================================================================================
Institutional Class 4,307,052
_________________________________________________________________________________
=================================================================================
Class A:
Net asset value per share $ 18.68
- ---------------------------------------------------------------------------------
Maximum offering price per share
(Net asset value of $18.68 divided by 94.50%) $ 19.77
_________________________________________________________________________________
=================================================================================
Class B:
Net asset value and offering price per share $ 17.78
_________________________________________________________________________________
=================================================================================
Class C:
Net asset value and offering price per share $ 17.77
_________________________________________________________________________________
=================================================================================
Class Y:
Net asset value and offering price per share $ 18.72
_________________________________________________________________________________
=================================================================================
Institutional Class:
Net asset value and offering price per share $ 19.07
_________________________________________________________________________________
=================================================================================
</Table>
* At August 31, 2009, securities with an aggregate value of $11,725,470 were on
loan to brokers.
See accompanying Notes to Financial Statements which are an integral part of the
financial statements.
12 AIM MULTI-SECTOR FUND
STATEMENT OF OPERATIONS
For the year ended August 31, 2009
<Table>
INVESTMENT INCOME:
Dividends (net of foreign withholding taxes of $159,327) $ 6,586,766
- ------------------------------------------------------------------------------------------------
Dividends from affiliated money market funds (includes securities lending income
of $589,656) 807,610
================================================================================================
Total investment income 7,394,376
================================================================================================
EXPENSES:
Advisory fees 2,791,827
- ------------------------------------------------------------------------------------------------
Administrative services fees 132,734
- ------------------------------------------------------------------------------------------------
Custodian fees 31,134
- ------------------------------------------------------------------------------------------------
Distribution fees:
Class A 580,709
- ------------------------------------------------------------------------------------------------
Class B 393,988
- ------------------------------------------------------------------------------------------------
Class C 442,826
- ------------------------------------------------------------------------------------------------
Transfer agent fees -- A, B, C and Y 1,056,760
- ------------------------------------------------------------------------------------------------
Transfer agent fees -- Institutional 2,783
- ------------------------------------------------------------------------------------------------
Trustees' and officers' fees and benefits 31,912
- ------------------------------------------------------------------------------------------------
Other 321,837
================================================================================================
Total expenses 5,786,510
================================================================================================
Less: Fees waived, expenses reimbursed and expense offset arrangement(s) (29,446)
================================================================================================
Net expenses 5,757,064
================================================================================================
Net investment income 1,637,312
================================================================================================
REALIZED AND UNREALIZED GAIN (LOSS) FROM:
Net realized gain (loss) from:
Investment securities (includes net gains (losses) from securities sold to
affiliates of $(1,740,945)) (156,992,407)
- ------------------------------------------------------------------------------------------------
Foreign currencies 93,118
- ------------------------------------------------------------------------------------------------
Futures contracts (71,987)
================================================================================================
(156,971,276)
================================================================================================
Change in net unrealized appreciation (depreciation) of:
Investment securities (33,915,692)
- ------------------------------------------------------------------------------------------------
Foreign currencies (395)
- ------------------------------------------------------------------------------------------------
Futures contracts (81,408)
================================================================================================
(33,997,495)
================================================================================================
Net realized and unrealized gain (loss) (190,968,771)
================================================================================================
Net increase (decrease) in net assets resulting from operations $(189,331,459)
________________________________________________________________________________________________
================================================================================================
</Table>
See accompanying Notes to Financial Statements which are an integral part of the
financial statements.
13 AIM MULTI-SECTOR FUND
STATEMENT OF CHANGES IN NET ASSETS
For the years ended August 31, 2009 and 2008
<Table>
<Caption>
2009 2008
- ---------------------------------------------------------------------------------------------------------
OPERATIONS:
Net investment income $ 1,637,312 $ 1,466,684
- ---------------------------------------------------------------------------------------------------------
Net realized gain (loss) (156,971,276) 29,652,453
- ---------------------------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) (33,997,495) (100,287,883)
=========================================================================================================
Net increase (decrease) in net assets resulting from operations (189,331,459) (69,168,746)
=========================================================================================================
DISTRIBUTIONS TO SHAREHOLDERS FROM NET INVESTMENT INCOME:
Class A (721,996) --
- ---------------------------------------------------------------------------------------------------------
Class Y (1,333) --
- ---------------------------------------------------------------------------------------------------------
Institutional Class (682,511) (152,613)
=========================================================================================================
Total distributions from net investment income (1,405,840) (152,613)
=========================================================================================================
DISTRIBUTIONS TO SHAREHOLDERS FROM NET REALIZED GAINS:
Class A (10,704,183) (22,809,049)
- ---------------------------------------------------------------------------------------------------------
Class B (1,933,014) (4,051,667)
- ---------------------------------------------------------------------------------------------------------
Class C (2,101,270) (4,556,738)
- ---------------------------------------------------------------------------------------------------------
Class Y (17,388) --
- ---------------------------------------------------------------------------------------------------------
Institutional Class (4,031,180) (7,701,731)
=========================================================================================================
Total distributions from net realized gains (18,787,035) (39,119,185)
=========================================================================================================
SHARE TRANSACTIONS-NET:
Class A (76,767,968) (27,022,573)
- ---------------------------------------------------------------------------------------------------------
Class B (11,082,703) (7,727,099)
- ---------------------------------------------------------------------------------------------------------
Class C (13,265,760) (1,401,455)
- ---------------------------------------------------------------------------------------------------------
Class Y 1,005,711 --
- ---------------------------------------------------------------------------------------------------------
Institutional Class (31,483,048) 13,901,069
=========================================================================================================
Net increase (decrease) in net assets resulting from share
transactions (131,593,768) (22,250,058)
=========================================================================================================
Net increase (decrease) in net assets (341,118,102) (130,690,602)
=========================================================================================================
NET ASSETS:
Beginning of year 724,324,172 855,014,774
=========================================================================================================
End of year (includes undistributed net investment income of
$1,406,338 and $1,077,999, respectively) $ 383,206,070 $ 724,324,172
_________________________________________________________________________________________________________
=========================================================================================================
</Table>
NOTES TO FINANCIAL STATEMENTS
August 31, 2009
NOTE 1--SIGNIFICANT ACCOUNTING POLICIES
AIM Multi-Sector Fund (the "Fund") is a series portfolio of AIM Counselor Series
Trust (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 seven 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 capital growth.
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 following is a summary of the significant accounting policies followed by
the Fund in the preparation of its financial statements.
14 AIM MULTI-SECTOR FUND
A. SECURITY VALUATIONS -- Securities, including restricted securities, are
valued according to the following policy.
A security listed or traded on an exchange (except convertible bonds) is
valued at its last sales price or official closing price as of the close
of the customary trading session on the exchange where the security is
principally traded, or lacking any sales or official closing price on a
particular day, the security may be valued at the closing bid price on
that day. Securities traded in the over-the-counter market are valued
based on prices furnished by independent pricing services or market
makers. When such securities are valued by an independent pricing service
they may be considered fair valued. Futures contracts are valued at the
final settlement price set by an exchange on which they are principally
traded. Listed options are valued at the mean between the last bid and ask
prices from the exchange on which they are principally traded. Options not
listed on an exchange are valued by an independent source at the mean
between the last bid and ask prices. For purposes of determining net asset
value per share, futures and option contracts generally are valued 15
minutes after the close of the customary trading session of the New York
Stock Exchange ("NYSE").
Investments in open-end and closed-end registered investment companies
that do not trade on an exchange are valued at the end of day net asset
value per share. Investments in open-end and closed-end registered
investment companies that trade on an exchange are valued at the last
sales price or official closing price as of the close of the customary
trading session on the exchange where the security is principally traded.
Debt obligations (including convertible bonds) and unlisted equities are
fair valued using an evaluated quote provided by an independent pricing
service. 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, developments related to specific securities, dividend rate,
yield, quality, type of issue, coupon rate, maturity, 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. 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/or principal payments.
Foreign securities (including foreign exchange contracts) are converted
into U.S. dollar amounts using the applicable exchange rates as of the
close of the NYSE. If market quotations are available and reliable for
foreign exchange traded equity securities, the securities will be valued
at the market quotations. Because trading hours for certain foreign
securities end before the close of the NYSE, closing market quotations may
become unreliable. If between the time trading ends on a particular
security and the close of the customary trading session on the NYSE,
events occur that are significant and make the closing price unreliable,
the Fund may fair value the security. If the event is likely to have
affected the closing price of the security, the security will be valued at
fair value in good faith using procedures approved by the Board of
Trustees. Adjustments to closing prices to reflect fair value may also be
based on a screening process of an independent pricing service to indicate
the degree of certainty, based on historical data, that the closing price
in the principal market where a foreign security trades is not the current
value as of the close of the NYSE. Foreign securities meeting the approved
degree of certainty that the price is not reflective of current value will
be priced at the indication of fair value from the independent pricing
service. Multiple factors may be considered by the independent pricing
service in determining adjustments to reflect fair value and may include
information relating to sector indices, American Depositary Receipts and
domestic and foreign index futures. Foreign securities may have additional
risks including exchange rate changes, potential for sharply devalued
currencies and high inflation, political and economical upheaval, the
relative lack of issuer information, relatively low market liquidity and
the potential lack of strict financial and accounting controls and
standards.
Securities for which market prices are not provided by any of the above
methods may be valued based upon quotes furnished by independent sources.
The last bid price may be used to value equity securities and Corporate
Loans. The mean between the last bid and asked prices may be used to value
debt obligations other than Corporate Loans.
Securities for which market quotations 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. Issuer specific events, market trends,
bid/ask quotes of brokers and information providers and other market data
may be reviewed in the course of making a good faith determination of a
security's fair value.
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 income and realized and unrealized capital gains and
losses to a class based on the relative net assets 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
15 AIM MULTI-SECTOR FUND
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 and 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 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.
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. In addition, the Fund monitors for material events or
transactions that may occur or become known after the period end date and
before the date the financial statements are released to print, which is
generally 45 days from the period end date.
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. SECURITIES LENDING -- The Fund may lend portfolio securities having a
market value up to one-third of the Fund's total assets. Such loans are
secured by collateral equal to no less than the market value of the loaned
securities determined daily by the securities lending provider. Such
collateral will be cash or debt securities issued or guaranteed by the
U.S. Government or any of its sponsored agencies. Cash collateral received
in connection with these loans is invested in short-term money market
instruments or affiliated money market funds and is shown as such on the
Schedule of Investments. It is the Fund's policy to obtain additional
collateral from or return excess collateral to the borrower by the end of
the next business day, following the valuation date of the securities
loaned. Therefore, the value of the collateral held may be temporarily
less than the value of the securities on loan. Lending securities entails
a risk of loss to the Fund if and to the extent that the market value of
the securities loaned were to increase and the borrower did not increase
the collateral accordingly, and the borrower fails to return the
securities. Upon the failure of the borrower to return the securities,
collateral may be liquidated and the securities may be purchased on the
open market to replace the loaned securities. The Fund could experience
delays and costs in gaining access to the collateral. The Fund bears the
risk of any deficiency in the amount of the collateral available for
return to the borrower due to any loss on the collateral invested.
Dividends received on cash collateral investments for securities lending
transactions, which are net of compensation to counterparties, is included
in Dividends from affiliates on the Statement of Operations. The aggregate
value of securities out on loan is shown as a footnote on the Statement of
Assets and Liabilities, if any.
J. FOREIGN CURRENCY TRANSLATIONS -- Foreign currency is valued at the close
of the NYSE based on quotations posted by banks and major currency
dealers. Portfolio securities and other assets and liabilities denominated
in foreign currencies are translated into U.S. dollar amounts at date of
valuation. Purchases and sales of portfolio securities (net of foreign
taxes withheld on disposition) and income items denominated in foreign
currencies are translated into U.S. dollar amounts on the respective dates
of such transactions. The Fund does not separately account for the portion
of the results of operations resulting from changes in foreign exchange
rates on investments and the fluctuations arising from changes in market
prices of securities held. The combined results of changes in foreign
exchange rates and the fluctuation of market prices on investments (net of
estimated foreign tax withholding) are included with the net realized and
unrealized gain or loss from investments in the Statement of Operations.
Reported net realized foreign currency gains or losses arise from (i)
sales of foreign currencies, (ii) currency gains or losses realized
between the trade and settlement dates on securities transactions, and
(iii) the difference between the amounts of dividends, interest, and
foreign withholding taxes recorded on the Fund's books and the U.S. dollar
equivalent of the amounts actually received or paid. Net unrealized
foreign currency gains and losses arise from changes in the fair values of
assets and liabilities, other than investments in securities at fiscal
period end, resulting from changes in exchange rates.
The Fund may invest in foreign securities which may be subject to
foreign taxes on income, gains on investments or currency repatriation, a
portion of which may be recoverable.
K. FOREIGN CURRENCY CONTRACTS -- The Fund may enter into foreign currency
contracts to manage or minimize currency or exchange rate risk. The Fund
may also enter into foreign currency contracts for the purchase or sale of
a security denominated in a foreign currency in order to "lock in" the
U.S. dollar price of that security. A foreign currency contract is an
obligation to purchase or sell a specific currency for an agreed-upon
price at a future date. The use of foreign currency contracts does not
eliminate fluctuations in the price of the underlying securities the Fund
owns or intends to acquire but establishes a rate of exchange in advance.
Fluctuations in the value of these contracts are measured by the
difference in the contract date and reporting date exchange rates and are
recorded as unrealized appreciation (depreciation) until the contracts are
closed. When the contracts are closed, realized gains (losses) are
recorded. Realized and unrealized gains (losses) on the contracts are
included in the Statement of Operations. The primary risks
16 AIM MULTI-SECTOR FUND
associated with foreign currency contracts include failure of the
counterparty to meet the terms of the contract and the value of the
foreign currency changing unfavorably. These risks may be in excess of the
amounts reflected in the Statement of Assets and Liabilities.
L. FUTURES CONTRACTS -- The Fund may enter into futures contracts to manage
exposure to interest rate, equity and market price movements and/or
currency risks. A futures contract is an agreement between two parties to
purchase or sell a specified underlying security, currency or commodity
(or delivery of a cash settlement price, in the case of an index future)
for a fixed price at a future date. The Fund currently invests only in
exchange-traded futures and they are standardized as to maturity date and
underlying financial instrument. Initial margin deposits required upon
entering into futures contracts are satisfied by the segregation of
specific securities or cash as collateral at the futures commission
merchant (broker). During the period the futures contracts are open,
changes in the value of the contracts are recognized as unrealized gains
or losses by recalculating the value of the contracts on a daily basis.
Subsequent or variation margin payments are received or made depending
upon whether unrealized gains or losses are incurred. These amounts are
reflected as receivables or payables on the Statement of Assets and
Liabilities. When the contracts are closed or expire, the Fund recognizes
a realized gain or loss equal to the difference between the proceeds from,
or cost of, the closing transaction and the Fund's basis in the contract.
The net realized gain (loss) and the change in unrealized gain (loss) on
futures contracts held during the period is included on the Statement of
Operations. The primary risks associated with futures contracts are market
risk and the absence of a liquid secondary market. If the Fund were unable
to liquidate a futures contract and/or enter into an offsetting closing
transaction, the Fund would continue to be subject to market risk with
respect to the value of the contracts and continue to be required to
maintain the margin deposits on the futures contracts. Futures contracts
have minimal counterparty risk since the exchange's clearinghouse, as
counterparty to all exchange traded futures, guarantees the futures
against default. Risks may exceed amounts recognized in the Statement of
Assets and Liabilities.
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 $250 million 0.695%
- -------------------------------------------------------------------
Next $250 million 0.67%
- -------------------------------------------------------------------
Next $500 million 0.645%
- -------------------------------------------------------------------
Next $1.5 billion 0.62%
- -------------------------------------------------------------------
Next $2.5 billion 0.595%
- -------------------------------------------------------------------
Next $2.5 billion 0.57%
- -------------------------------------------------------------------
Next $2.5 billion 0.545%
- -------------------------------------------------------------------
Over $10 billion 0.52%
___________________________________________________________________
===================================================================
</Table>
Under the terms of a master sub-advisory agreement approved by shareholders of
the Fund between 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 July 1, 2009, the Advisor has contractually 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 2.00%, 2.75%, 2.75%, 1.75%
and 1.75% of average daily net assets, respectively, through at least June 30,
2010. 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 or non-routine items; and (v) 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. The
Advisor did not waive fees and/or reimburse expenses during the period under
this expense limitation.
Further, the Advisor has contractually agreed, through at least June 30, 2010,
to waive the advisory fee payable by the Fund in an amount equal to 100% of the
net advisory fees the Advisor receives from the affiliated money market funds on
investments by the Fund of uninvested cash (excluding investments of cash
collateral from securities lending) in such affiliated money market funds.
For the year ended August 31, 2009, the Advisor waived advisory fees of
$21,799.
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
August 31, 2009, Invesco reimbursed expenses of the Fund in the amount of
$1,144.
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 August 31, 2009, expenses incurred under the agreement are shown
in the Statement of Operations as administrative services fees.
17 AIM MULTI-SECTOR FUND
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 August 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 August 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 August 31, 2009, IADI
advised the Fund that IADI retained $36,961 in front-end sales commissions from
the sale of Class A shares and $4,384, $91,007 and $4,130 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--ADDITIONAL VALUATION INFORMATION
Generally Accepted Accounting Principles (GAAP) 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 under
current market conditions. GAAP 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.
The following is a summary of the tiered valuation input levels, as of the end
of the reporting period, August 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>
LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
- ---------------------------------------------------------------------------------------------------------------------------
Equity Securities $388,498,908 $6,947,979 $-- $395,446,887
___________________________________________________________________________________________________________________________
===========================================================================================================================
</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 August 31, 2009, the Fund
engaged in securities purchases of $76,564 and securities sales of $5,839,924,
which resulted in net realized gains (losses) of $(1,740,945).
NOTE 5--EXPENSE OFFSET ARRANGEMENT(S)
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 August 31, 2009, the
Fund received credits from this arrangement, which resulted in the reduction of
the Fund's total expenses of $6,503.
18 AIM MULTI-SECTOR FUND
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 August 31, 2009, the Fund paid legal fees of $4,431 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 to temporarily carry a negative or overdrawn balance in
its account with The State Street Bank and Trust Company, 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.
NOTE 8--DISTRIBUTIONS TO SHAREHOLDERS AND TAX COMPONENTS OF NET ASSETS
TAX CHARACTER OF DISTRIBUTIONS TO SHAREHOLDERS PAID DURING THE YEARS ENDED
AUGUST 31, 2009 AND 2008:
<Table>
<Caption>
2009 2008
- --------------------------------------------------------------------------------------------------------
Ordinary income $ 1,409,975 $ 6,513,488
- --------------------------------------------------------------------------------------------------------
Long-term capital gain 18,782,900 32,758,310
========================================================================================================
Total distributions $20,192,875 $39,271,798
________________________________________________________________________________________________________
========================================================================================================
</Table>
TAX COMPONENTS OF NET ASSETS AT PERIOD-END:
<Table>
<Caption>
2009
- ------------------------------------------------------------------------------------------------
Undistributed ordinary income $ 1,454,193
- ------------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) -- investments (31,709,780)
- ------------------------------------------------------------------------------------------------
Net unrealized appreciation -- other investments 814
- ------------------------------------------------------------------------------------------------
Temporary book/tax differences (47,855)
- ------------------------------------------------------------------------------------------------
Post-October deferrals (103,541,251)
- ------------------------------------------------------------------------------------------------
Capital loss carryforward (55,800,354)
- ------------------------------------------------------------------------------------------------
Shares of beneficial interest 572,850,303
================================================================================================
Total net assets $ 383,206,070
________________________________________________________________________________________________
================================================================================================
</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 wash sales.
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 August 31, 2009 which expires
as follows:
<Table>
<Caption>
CAPITAL LOSS
EXPIRATION CARRYFORWARD*
- -----------------------------------------------------------------------------------------------
August 31, 2017 $55,800,354
_______________________________________________________________________________________________
===============================================================================================
</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.
19 AIM MULTI-SECTOR FUND
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 August 31, 2009 was $127,463,040 and
$266,583,073, 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 $ 46,027,516
- ------------------------------------------------------------------------------------------------
Aggregate unrealized (depreciation) of investment securities (77,737,296)
================================================================================================
Net unrealized appreciation (depreciation) of investment securities $(31,709,780)
________________________________________________________________________________________________
================================================================================================
Cost of investments for tax purposes is $427,156,667.
</Table>
NOTE 10--RECLASSIFICATION OF PERMANENT DIFFERENCES
Primarily as a result of differing book/tax treatment of foreign currency
transactions on August 31, 2009, undistributed net investment income was
increased by $96,867, undistributed net realized gain (loss) was decreased by
$88,984 and shares of beneficial interest decreased by $7,883. This
reclassification had no effect on the net assets of the Fund.
NOTE 11--SHARE INFORMATION
<Table>
<Caption>
SUMMARY OF SHARE ACTIVITY
- -------------------------------------------------------------------------------------------------------------------------
YEAR ENDED AUGUST 31,
-------------------------------------------------------------
2009(a) 2008
---------------------------- ----------------------------
SHARES AMOUNT SHARES AMOUNT
- -------------------------------------------------------------------------------------------------------------------------
Sold:
Class A 2,430,932 $ 42,223,567 3,807,565 $ 104,448,073
- -------------------------------------------------------------------------------------------------------------------------
Class B 338,897 5,569,903 616,606 16,114,652
- -------------------------------------------------------------------------------------------------------------------------
Class C 422,586 6,640,016 558,328 14,810,636
- -------------------------------------------------------------------------------------------------------------------------
Class Y(b) 71,812 1,243,553 -- --
- -------------------------------------------------------------------------------------------------------------------------
Institutional Class 263,613 4,423,162 614,220 17,320,624
=========================================================================================================================
Issued as reinvestment of dividends:
Class A 716,046 10,626,125 781,183 21,599,713
- -------------------------------------------------------------------------------------------------------------------------
Class B 122,794 1,744,905 140,981 3,755,744
- -------------------------------------------------------------------------------------------------------------------------
Class C 138,864 1,971,869 161,954 4,312,829
- -------------------------------------------------------------------------------------------------------------------------
Class Y 1,261 18,721 -- --
- -------------------------------------------------------------------------------------------------------------------------
Institutional Class 312,372 4,713,691 278,854 7,833,000
=========================================================================================================================
Automatic conversion of Class B shares to Class A shares:
Class A 258,699 4,216,415 339,068 9,189,273
- -------------------------------------------------------------------------------------------------------------------------
Class B (270,776) (4,216,415) (352,600) (9,189,273)
=========================================================================================================================
Reacquired:
Class A(b) (8,230,046) (133,834,075) (5,981,685) (162,259,632)
- -------------------------------------------------------------------------------------------------------------------------
Class B (922,382) (14,181,096) (708,031) (18,408,222)
- -------------------------------------------------------------------------------------------------------------------------
Class C (1,400,392) (21,877,645) (793,160) (20,524,920)
- -------------------------------------------------------------------------------------------------------------------------
Class Y (15,803) (256,563) -- --
- -------------------------------------------------------------------------------------------------------------------------
Institutional Class (2,332,008) (40,619,901) (414,377) (11,252,555)
=========================================================================================================================
Net increase (decrease) in share activity (8,093,531) $(131,593,768) (951,094) $ (22,250,058)
_________________________________________________________________________________________________________________________
=========================================================================================================================
</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 27% 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.
In addition, 19% of the outstanding shares of the Fund are owned by
affiliated mutual funds. Affiliated mutual funds are other mutual funds
that are also advised by Invesco Aim.
(b) Effective upon the commencement date of Class Y shares, October 3, 2008,
the following shares were converted from Class A into Class Y shares of the
Fund:
<Table>
<Caption>
CLASS SHARES AMOUNT
--------------------------------------------------------------------------------------------------
Class Y 23,026 $ 475,716
--------------------------------------------------------------------------------------------------
Class A (23,026) (475,716)
__________________________________________________________________________________________________
==================================================================================================
</Table>
20 AIM MULTI-SECTOR 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 NET (LOSSES) ON DIVIDENDS DISTRIBUTIONS
VALUE, INVESTMENT SECURITIES (BOTH TOTAL FROM FROM NET FROM NET
BEGINNING INCOME REALIZED AND INVESTMENT INVESTMENT REALIZED TOTAL
OF PERIOD (LOSS)(a) UNREALIZED) OPERATIONS INCOME GAINS DISTRIBUTIONS
- ------------------------------------------------------------------------------------------------------------------------
CLASS A
Year ended 08/31/09 $25.33 $ 0.07 $(5.93) $(5.86) $(0.05) $(0.74) $(0.79)
Year ended 08/31/08 28.93 0.07 (2.34) (2.27) -- (1.33) (1.33)
Year ended 08/31/07 25.53 (0.04) 3.88 3.84 (0.12) (0.32) (0.44)
Year ended 08/31/06 24.16 0.17 1.69 1.86 -- (0.49) (0.49)
Year ended 08/31/05 19.37 (0.05)(e) 5.40 5.35 -- (0.56) (0.56)
- ------------------------------------------------------------------------------------------------------------------------
CLASS B
Year ended 08/31/09 24.27 (0.05) (5.70) (5.75) -- (0.74) (0.74)
Year ended 08/31/08 27.97 (0.13) (2.24) (2.37) -- (1.33) (1.33)
Year ended 08/31/07 24.79 (0.24) 3.76 3.52 (0.02) (0.32) (0.34)
Year ended 08/31/06 23.64 (0.02) 1.66 1.64 -- (0.49) (0.49)
Year ended 08/31/05 19.09 (0.20)(e) 5.31 5.11 -- (0.56) (0.56)
- ------------------------------------------------------------------------------------------------------------------------
CLASS C
Year ended 08/31/09 24.26 (0.05) (5.70) (5.75) -- (0.74) (0.74)
Year ended 08/31/08 27.96 (0.13) (2.24) (2.37) -- (1.33) (1.33)
Year ended 08/31/07 24.78 (0.24) 3.76 3.52 (0.02) (0.32) (0.34)
Year ended 08/31/06 23.63 (0.02) 1.66 1.64 -- (0.49) (0.49)
Year ended 08/31/05 19.09 (0.20)(e) 5.30 5.10 -- (0.56) (0.56)
- ------------------------------------------------------------------------------------------------------------------------
CLASS Y
Year ended 08/31/09(f) 20.66 0.10 (1.24) (1.14) (0.06) (0.74) (0.80)
- ------------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL CLASS
Year ended 08/31/09 25.81 0.17 (6.05) (5.88) (0.12) (0.74) (0.86)
Year ended 08/31/08 29.35 0.19 (2.37) (2.18) (0.03) (1.33) (1.36)
Year ended 08/31/07 25.83 0.09 3.93 4.02 (0.18) (0.32) (0.50)
Year ended 08/31/06 24.33 0.29 1.70 1.99 -- (0.49) (0.49)
Year ended 08/31/05 19.41 0.06(e) 5.42 5.48 -- (0.56) (0.56)
________________________________________________________________________________________________________________________
========================================================================================================================
<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 (LOSS)
VALUE, END TOTAL END OF PERIOD AND/OR EXPENSES AND/OR EXPENSES TO AVERAGE PORTFOLIO
OF PERIOD RETURN(b) (000S OMITTED) ABSORBED ABSORBED NET ASSETS TURNOVER(c)
- -------------------------------------------------------------------------------------------------------------------------------
CLASS A
Year ended 08/31/09 $18.68 (22.34)% $218,772 1.39%(d) 1.40%(d) 0.43%(d) 31%
Year ended 08/31/08 25.33 (8.22) 418,874 1.21 1.22 0.24 58
Year ended 08/31/07 28.93 15.13 508,895 1.23 1.29 (0.15) 44
Year ended 08/31/06 25.53 7.74 311,492 1.30 1.37 0.67 66
Year ended 08/31/05 24.16 28.01 99,721 1.53 1.59 (0.25)(e) 63
- -------------------------------------------------------------------------------------------------------------------------------
CLASS B
Year ended 08/31/09 17.78 (22.93) 37,206 2.14(d) 2.15(d) (0.32)(d) 31
Year ended 08/31/08 24.27 (8.89) 68,526 1.96 1.97 (0.51) 58
Year ended 08/31/07 27.97 14.26 87,469 1.98 2.04 (0.90) 44
Year ended 08/31/06 24.79 6.97 73,997 2.05 2.12 (0.08) 66
Year ended 08/31/05 23.64 27.15 24,953 2.20 2.26 (0.92)(e) 63
- -------------------------------------------------------------------------------------------------------------------------------
CLASS C
Year ended 08/31/09 17.77 (22.94) 44,023 2.14(d) 2.15(d) (0.32)(d) 31
Year ended 08/31/08 24.26 (8.89) 80,439 1.96 1.97 (0.51) 58
Year ended 08/31/07 27.96 14.27 94,760 1.98 2.04 (0.90) 44
Year ended 08/31/06 24.78 6.97 69,604 2.05 2.12 (0.08) 66
Year ended 08/31/05 23.63 27.10 29,981 2.20 2.26 (0.92)(e) 63
- -------------------------------------------------------------------------------------------------------------------------------
CLASS Y
Year ended 08/31/09(f) 18.72 (4.54) 1,072 1.17(d)(g) 1.18(d)(g) 0.65(d)(g) 31
- -------------------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL CLASS
Year ended 08/31/09 19.07 (21.89) 82,134 0.81(d) 0.82(d) 1.01(d) 31
Year ended 08/31/08 25.81 (7.81) 156,486 0.75 0.76 0.70 58
Year ended 08/31/07 29.35 15.67 163,891 0.77 0.83 0.31 44
Year ended 08/31/06 25.83 8.23 87,147 0.83 0.90 1.14 66
Year ended 08/31/05 24.33 28.64 45,628 1.02 1.08 0.26(e) 63
_______________________________________________________________________________________________________________________________
===============================================================================================================================
</Table>
(a) Calculated using average shares outstanding.
(b) 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.
(c) Portfolio turnover is calculated at the fund level and is not annualized
for periods less than one year, if applicable.
(d) Ratios are based on average daily net assets (000's omitted) of $232,284,
$39,399, $44,283, $638 and $90,821 for Class A, Class B, Class C, Class R,
Class Y, Investor Class and Institutional Class shares, respectively.
(e) Net investment income (loss) per share and the ratio of net investment
income (loss) to average net assets include a special cash dividend
received of $3.00 per share owned of Microsoft Corp. on December 2, 2004.
Net investment income (loss) per share and the ratio of net investment
income (loss) to average net assets excluding the special dividend are
$(0.06) and (0.30)%; $(0.21) and (0.97)%; $(0.21) and (0.97)%; $0.05 and
0.21% for Class A, Class B, Class C and Institutional Class shares,
respectively.
(f) Commencement date of October 3, 2008.
(g) Annualized.
21 AIM MULTI-SECTOR FUND
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Trustees of AIM Counselor Series Trust
and Shareholders of AIM Multi-Sector 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 Multi-Sector Fund (one of the
funds constituting AIM Counselor Series Trust, hereafter referred to as the
"Fund") at August 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 periods indicated, 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 August 31, 2009 by
correspondence with the custodian and brokers, provide a reasonable basis for
our opinion.
PRICEWATERHOUSECOOPERS LLP
October 16, 2009
Houston, Texas
22 AIM MULTI-SECTOR 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. The
example is based on an investment of $1,000 invested at the beginning of the
period and held for the entire period March 1, 2009 through August 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 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 (03/01/09) (08/31/09)(1) PERIOD(2) (08/31/09) PERIOD(2) RATIO
- ---------------------------------------------------------------------------------------------------
A $1,000.00 $1,444.70 $ 8.87 $1,017.95 $ 7.32 1.44%
- ---------------------------------------------------------------------------------------------------
B 1,000.00 1,439.70 13.47 1,014.17 11.12 2.19
- ---------------------------------------------------------------------------------------------------
C 1,000.00 1,438.90 13.46 1,014.17 11.12 2.19
- ---------------------------------------------------------------------------------------------------
Y 1,000.00 1,446.70 7.34 1,019.21 6.06 1.19
- ---------------------------------------------------------------------------------------------------
</Table>
(1) The actual ending account value is based on the actual total return of the
Fund for the period March 1, 2009 through August 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
184/365 to reflect the most recent fiscal half year.
23 AIM MULTI-SECTOR FUND
Supplement to Annual Report dated 8/31/09
AIM MULTI-SECTOR FUND
<Table>
INSTITUTIONAL CLASS SHARES ------------------------------------------ Please note that past performance is
AVERAGE ANNUAL TOTAL RETURNS not indicative of future results. More
The following information has been For periods ended 8/31/09 recent returns may be more or less than
prepared to provide Institutional Class those shown. All returns assume
shareholders with a performance overview Inception (5/3/04) 2.30% reinvestment of distributions at NAV.
specific to their holdings. Institutional ------------------------------------------ Investment return and principal value will
Class shares are offered exclusively to 5 Years 3.01 fluctuate so your shares, when redeemed,
institutional investors, including defined ------------------------------------------ may be worth more or less than their
contribution plans that meet certain 1 Year -21.89 original cost. See full report for
criteria. ------------------------------------------ information on comparative benchmarks.
Please consult your Fund prospectus for
------------------------------------------ more information. For the most current
AVERAGE ANNUAL TOTAL RETURNS month-end performance, please call
For periods ended 6/30/09, the most recent 800 451 4246 or visit invescoaim.com.
calendar quarter-end
(1) Total annual operating expenses less
Inception (5/3/04) 0.12% any contractual fee waivers and/or
------------------------------------------ expense reimbursements by the advisor
5 Years -0.25 in effect through at least June 30,
------------------------------------------ 2010. See current prospectus for more
1 Year -33.04 information.
------------------------------------------
Institutional Class shares have no sales
charge; therefore, performance is at net
asset value (NAV). Performance of
Institutional Class shares will differ
from performance of other share classes
primarily due to differing sales charges
and class expenses.
The net 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 0.75%.(1) 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 0.76%. 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.
Had the advisor not waived fees and/or
reimbursed expenses in the past,
performance would have been lower.
- ------------------------------------------
NASDAQ SYMBOL IIMSX
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 -- NOT FOR USE WITH THE PUBLIC
THIS MATERIAL IS FOR
INSTITUTIONAL INVESTOR USE ONLY AND MAY NOT BE QUOTED, REPRODUCED, SHOWN TO THE PUBLIC [INVESCO AIM LOGO]
OR USED IN WRITTEN FORM AS SALES LITERATURE FOR PUBLIC USE. - service mark -
invescoaim.com I-MSE-INS-1 Invesco Aim Distributors, Inc.
</Table>
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 March 1, 2009 through August 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 (03/01/09) (08/31/09)(1) PERIOD(2) (08/31/09) PERIOD(2) RATIO
- -----------------------------------------------------------------------------------------------------------
Institutional $1,000.00 $1,449.10 $5.19 $1,020.97 $4.28 0.84%
- -----------------------------------------------------------------------------------------------------------
</Table>
(1) The actual ending account value is based on the actual total return of the
Fund for the period March 1, 2009 through August 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
184/365 to reflect the most recent fiscal half year.
AIM MULTI-SECTOR FUND
<Table>
- ------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS
The Board of Trustees (the Board) of AIM strategies and limitations of these the year as part of their ongoing
Counselor Series Trust is required under funds. oversight of the Fund, and did not
the Investment Company Act of 1940 to identify any particular factor that was
approve annually the renewal of the AIM In addition to their meetings controlling. Each Trustee may have
Multi-Sector Fund (the Fund) investment throughout the year, the Sub-Committees evaluated the information provided
advisory agreement with Invesco Aim meet at designated contract renewal differently from another Trustee and
Advisors, Inc. (Invesco Aim) and the meetings each year to conduct an in-depth attributed different weight to the various
Master Intergroup Sub-Advisory Contract review of the performance, fees, expenses factors. The Trustees recognized that the
for Mutual Funds (the sub-advisory and other matters related to their advisory arrangements and resulting
contracts) with Invesco Asset Management assigned funds. During the contract advisory fees for the Fund and the other
Deutschland GmbH, Invesco Asset Management renewal process, the Trustees receive AIM Funds are the result of years of
Limited, Invesco Asset Management (Japan) comparative performance and fee data review and negotiation between the
Limited, Invesco Australia Limited, regarding the AIM Funds prepared by an Trustees and Invesco Aim, that the
Invesco Global Asset Management (N.A.), independent company, Lipper, Inc. Trustees may focus to a greater extent on
Inc., Invesco Hong Kong Limited, Invesco (Lipper), under the direction and certain aspects of these arrangements in
Institutional (N.A.), Inc., Invesco Senior supervision of the Senior Officer who also some years than in others, and that the
Secured Management, Inc. and Invesco prepares a separate analysis of this Trustees' deliberations and conclusions in
Trimark Ltd. (collectively, the Affiliated information for the Trustees. Each a particular year may be based in part on
Sub-Advisers). During contract renewal Sub-Committee then makes recommendations their deliberations and conclusions
meetings held on June 16-17, 2009, the to the Investments Committee regarding the regarding these same arrangements
Board as a whole, and the disinterested or fees and expenses of their assigned funds. throughout the year and in prior years.
"independent" Trustees voting separately, The Investments Committee considers each
approved the continuance of the Fund's Sub-Committee's recommendations and makes The discussion below serves as a
investment advisory agreement and the its own recommendations regarding the fees summary of the Senior Officer's
sub-advisory contracts for another year, and expenses of the AIM Funds to the full independent written evaluation with
effective July 1, 2009. In doing so, the Board. The Investments Committee also respect to the Fund's investment advisory
Board determined that the Fund's considers each Sub-Committee's agreement as well as a discussion of the
investment advisory agreement and the recommendations in making its annual material factors and related conclusions
sub-advisory contracts are in the best recommendation to the Board whether to that formed the basis for the Board's
interests of the Fund and its shareholders approve the continuance of each AIM Fund's approval of the Fund's investment advisory
and that the compensation to Invesco Aim investment advisory agreement and agreement and sub-advisory contracts.
and the Affiliated Sub-Advisers under the sub-advisory contracts for another year. Unless otherwise stated, information set
Fund's investment advisory agreement and forth below is as of June 17, 2009, and
sub-advisory contracts is fair and The independent Trustees met separately does not reflect any changes that may have
reasonable. during their evaluation of the Fund's occurred since that date, including but
investment advisory agreement and not limited to changes to the Fund's
THE BOARD'S FUND EVALUATION PROCESS sub-advisory contracts with independent performance, advisory fees, expense
legal counsel. The independent Trustees limitations and/or fee waivers.
The Board's Investments Committee has were also assisted in their annual
established three Sub-Committees that are evaluation of the Fund's investment FACTORS AND CONCLUSIONS AND SUMMARY OF
responsible for overseeing the management advisory agreement by the Senior Officer. INDEPENDENT WRITTEN FEE EVALUATION
of a number of the series portfolios of One responsibility of the Senior Officer
the AIM Funds. This Sub-Committee is to manage the process by which the AIM A. Nature, Extent and Quality of
structure permits the Trustees to focus on Funds' proposed management fees are Services Provided by Invesco Aim
the performance of the AIM Funds that have negotiated during the annual contract
been assigned to them. The Sub-Committees renewal process to ensure that they are The Board reviewed the advisory services
meet throughout the year to review the negotiated in a manner that is at arms' provided to the Fund by Invesco Aim under
performance of their assigned funds, and length and reasonable. Accordingly, the the Fund's investment advisory agreement,
the Sub-Committees review monthly and Senior Officer must either supervise a the performance of Invesco Aim in
quarterly comparative performance competitive bidding process or prepare an providing these services, and the
information and periodic asset flow data independent written evaluation. The Senior credentials and experience of the officers
for their assigned funds. These materials Officer recommended that an independent and employees of Invesco Aim who provide
are prepared under the direction and written evaluation be provided and, at the these services. The Board's review of the
supervision of the independent Senior direction of the Board, prepared an qualifications of Invesco Aim to provide
Officer, an officer of the AIM Funds who independent written evaluation. these services included the Board's
reports directly to the independent consideration of Invesco Aim's portfolio
Trustees. Over the course of each year, During the annual contract renewal and product review process, various back
the Sub-Committees meet with portfolio process, the Board considered the factors office support functions provided by
managers for their assigned funds and discussed below in evaluating the fairness Invesco Aim and its affiliates, and
other members of management and review and reasonableness of the Fund's Invesco Aim's equity and fixed income
with these individuals the performance, investment advisory agreement and trading operations. The Board concluded
investment objective(s), policies, sub-advisory contracts. The Board that the nature, extent and quality of the
considered all of the information provided advisory services provided to the Fund by
to them, including information provided at Invesco Aim are appropriate and that
their meetings throughout Invesco Aim
24 AIM MULTI-SECTOR FUND continued
</Table>
<Table>
currently is providing satisfactory The Board considered Fund performance as a rates, which includes using audited
advisory services in accordance with the relevant factor in considering whether to financial data from the most recent annual
terms of the Fund's investment advisory approve the investment advisory agreement. report of each fund in the expense group
agreement. In addition, based on their The Board did not view Fund performance as that was publicly available as of the end
ongoing meetings throughout the year with a relevant factor in considering whether of the past calendar year. The Board noted
the Fund's portfolio manager or managers, to approve the sub-advisory contracts for that some comparative data was at least
the Board concluded that these individuals the Fund, as no Affiliated Sub-Adviser one year old and that other data did not
are competent and able to continue to currently manages assets of the Fund. reflect the market downturn that occurred
carry out their responsibilities under the in the fourth quarter of 2008.
Fund's investment advisory agreement. The Board compared the Fund's
performance during the past one, three and The Board also compared the Fund's
In determining whether to continue the five calendar years to the performance of effective fee rate (the advisory fee after
Fund's investment advisory agreement, the all funds in the Lipper performance any advisory fee waivers and before any
Board considered the prior relationship universe that are not managed by Invesco expense limitations/waivers) to the
between Invesco Aim and the Fund, as well Aim or an Affiliated Sub-Adviser and advisory fee rates of other domestic
as the Board's knowledge of Invesco Aim's against the Lipper Multi-Cap Core Funds clients of Invesco Aim and its affiliates
operations, and concluded that it is Index. The Board noted that the Fund's with investment strategies comparable to
beneficial to maintain the current performance was in the fifth quintile of those of the Fund, including two mutual
relationship, in part, because of such its performance universe for the one year funds advised by Invesco Aim. The Board
knowledge. The Board also considered the period, in the fourth quintile for the noted that the Fund's rate was below the
steps that Invesco Aim and its affiliates three year period and in the second effective fee rate for one mutual fund and
continue to take to improve the quality quintile for the five year period (the that the other mutual fund is an asset
and efficiency of the services they first quintile being the best performing allocation fund that is not charged any
provide to the AIM Funds in the areas of funds and the fifth quintile being the advisory fees by Invesco Aim pursuant to
investment performance, product line worst performing funds). The Board noted that fund's advisory agreement.
diversification, distribution, fund that the Fund's performance was below the
operations, shareholder services and performance of the Index for the one and The Board noted that Invesco Aim has
compliance. The Board concluded that the three year periods and above the agreed to reduce the per account transfer
quality and efficiency of the services performance of the Index for the five year agent fee for all the retail funds,
Invesco Aim and its affiliates provide to period. Invesco Aim advised the Board that including the Fund, effective July 1,
the AIM Funds in each of these areas the Fund's prospectus limits the Fund to 2009. The Board also noted that Invesco
support the Board's approval of the investment in five sectors, two of which Aim has contractually agreed to waive fees
continuance of the Fund's investment have been the worst performing sectors and/or limit expenses of the Fund through
advisory agreement. since the onset of the bear market in at least June 30, 2010 in an amount
2007. Invesco Aim noted that some of the necessary to limit total annual operating
B. Nature, Extent and Quality of underlying lead sector managers were expenses to a specified percentage of
Services Provided by Affiliated changed in 2009. Although the independent average daily net assets for each class of
Sub-Advisers written evaluation of the Fund's Senior the Fund. The Board noted that at the
Officer only considered Fund performance current expense ratio for the Fund, this
The Board reviewed the services provided through the most recent calendar year, the expense waiver does not have any impact.
by the Affiliated Sub-Advisers under the Board also reviewed more recent Fund
sub-advisory contracts and the credentials performance and this review did not change The Board also considered the services
and experience of the officers and their conclusions. The Board noted that, provided by the Affiliated Sub-Advisers
employees of the Affiliated Sub-Advisers in response to the Board's focus on fund pursuant to the sub-advisory contracts and
who provide these services. The Board performance, Invesco Aim has taken a the services provided by Invesco Aim
concluded that the nature, extent and number of actions intended to improve the pursuant to the Fund's advisory agreement,
quality of the services provided by the investment process for the funds. as well as the allocation of fees between
Affiliated Sub-Advisers are appropriate. Invesco Aim and the Affiliated
The Board noted that the Affiliated D. Advisory and Sub-Advisory Fees and Sub-Advisers pursuant to the sub-advisory
Sub-Advisers, which have offices and Fee Waivers contracts. The Board noted that the
personnel that are geographically sub-advisory fees have no direct effect on
dispersed in financial centers around the The Board compared the Fund's contractual the Fund or its shareholders, as they are
world, can provide research and other advisory fee rate to the contractual paid by Invesco Aim to the Affiliated
information and make recommendations on advisory fee rates of funds in the Fund's Sub-Advisers, and that Invesco Aim and the
the markets and economies of various Lipper expense group that are not managed Affiliated Sub-Advisers are affiliates.
countries and securities of companies by Invesco Aim or an Affiliated
located in such countries or on various Sub-Adviser, at a common asset level. The After taking account of the Fund's
types of investments and investment Board noted that the Fund's contractual contractual advisory fee rate, the
techniques. The Board concluded that the advisory fee rate was below the median contractual sub-advisory fee rate, the
sub-advisory contracts benefit the Fund contractual advisory fee rate of funds in comparative advisory fee information
and its shareholders by permitting Invesco its expense group. The Board also reviewed discussed above and other relevant
Aim to utilize the additional resources the methodology used by Lipper in factors, the Board concluded that the
and talent of the Affiliated Sub-Advisers determining contractual fee Fund's advisory and sub-advisory fees are
in managing the Fund. fair and reasonable.
C. Fund Performance
25 AIM MULTI-SECTOR FUND continued
</Table>
<Table>
E. Economies of Scale and Breakpoints Board also considered whether each contractually agreed to waive through at
Affiliated Sub-Adviser is financially least June 30, 2010, the advisory fees
The Board considered the extent to which sound and has the resources necessary to payable by the Fund in an amount equal to
there are economies of scale in the perform its obligations under the 100% of the net advisory fee Invesco Aim
provision of advisory services to the sub-advisory contracts, and concluded that receives from the affiliated money market
Fund. The Board also considered whether each Affiliated Sub-Adviser has the funds with respect to the Fund's
the Fund benefits from such economies of financial resources necessary to fulfill investment in the affiliated money market
scale through contractual breakpoints in these obligations. funds of uninvested cash, but not cash
the Fund's advisory fee schedule. The collateral. The Board concluded that the
Board noted that the Fund's contractual G. Collateral Benefits to Invesco Aim Fund's investment of uninvested cash and
advisory fee schedule includes seven and its Affiliates cash collateral from any securities
breakpoints and that the level of the lending arrangements in the affiliated
Fund's advisory fees, as a percentage of The Board considered various other money market funds is in the best
the Fund's net assets, has decreased as benefits received by Invesco Aim and its interests of the Fund and its
net assets increased because of the affiliates resulting from Invesco Aim's shareholders.
breakpoints. The Board concluded that the relationship with the Fund, including the
Fund's advisory fees appropriately reflect fees received by Invesco Aim and its
economies of scale at current asset affiliates for their provision of
levels. The Board also noted that the Fund administrative, transfer agency and
shares directly in economies of scale distribution services to the Fund. The
through lower fees charged by third party Board considered the performance of
service providers based on the combined Invesco Aim and its affiliates in
size of all of the AIM Funds and providing these services and the
affiliates. organizational structure employed by
Invesco Aim and its affiliates to provide
F. Profitability and Financial these services. The Board also considered
Resources that these services are provided to the
Fund pursuant to written contracts that
The Board reviewed information from are reviewed and approved on an annual
Invesco Aim concerning the costs of the basis by the Board. The Board concluded
advisory and other services that Invesco that Invesco Aim and its affiliates are
Aim and its affiliates provide to the Fund providing these services in a satisfactory
and the profitability of Invesco Aim and manner and in accordance with the terms of
its affiliates in providing these their contracts, and are qualified to
services. The Board also reviewed continue to provide these services to the
information concerning the financial Fund.
condition of Invesco Aim and its
affiliates. The Board reviewed with The Board considered the benefits
Invesco Aim the methodology used to realized by Invesco Aim and the Affiliated
prepare the profitability information. The Sub-Advisers as a result of portfolio
Board considered the overall profitability brokerage transactions executed through
of Invesco Ltd., the ultimate parent of "soft dollar" arrangements. The Board
Invesco Aim and the Affiliated noted that soft dollar arrangements shift
Sub-Advisers, and of Invesco Aim, as well the payment obligation for research and
as the profitability of Invesco Aim in execution services from Invesco Aim and
connection with managing the Fund. The the Affiliated Sub-Advisers to the funds
Board noted that Invesco Aim continues to and therefore may reduce Invesco Aim's and
operate at a net profit, although the the Affiliated Sub-Advisers' expenses. The
reduction of assets under management as a Board concluded that Invesco Aim's and the
result of market movements and the Affiliated Sub-Advisers' soft dollar
increase in voluntary fee waivers for arrangements are appropriate. The Board
affiliated money market funds have reduced also concluded that, based on their review
the profitability of Invesco Aim and its and representations made by the Chief
affiliates. The Board concluded that the Compliance Officer of Invesco Aim, these
Fund's fees are fair and reasonable, and arrangements are consistent with
that the level of profits realized by regulatory requirements.
Invesco Aim and its affiliates from
providing services to the Fund is not The Board considered the fact that the
excessive in light of the nature, quality Fund's uninvested cash and cash collateral
and extent of the services provided. The from any securities lending arrangements
Board considered whether Invesco Aim is may be invested in money market funds
financially sound and has the resources advised by Invesco Aim pursuant to
necessary to perform its obligations under procedures approved by the Board. The
the Fund's investment advisory agreement, Board noted that Invesco Aim will receive
and concluded that Invesco Aim has the advisory fees from these affiliated money
financial resources necessary to fulfill market funds attributable to such
these obligations. The investments, although Invesco Aim has
26 AIM MULTI-SECTOR FUND
</Table>
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 August 31,
2009:
<Table>
<Caption>
FEDERAL AND STATE INCOME TAX
----------------------------
Long-Term Capital Gain Dividends $18,792,900
Qualified Dividend Income* 100.00%
Corporate Dividends Received Deduction* 100.00%
</Table>
* The above percentages are based on ordinary income dividends paid to
shareholders during the Fund's fiscal year.
27 AIM MULTI-SECTOR FUND
TRUSTEES AND OFFICERS
The address of each trustee and officer of AIM Counselor Series Trust (the
"Trust"), is 11 Greenway Plaza, Suite 100, Houston, Texas 77046-1173. Each
trustee oversees 105 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. Flanagan(1) -- 1960 2007 Executive Director, Chief Executive Officer and President, None
Trustee Invesco Ltd. (ultimate parent of Invesco Aim and a global
investment management firm); Chairman, Invesco Aim Advisors,
Inc. (registered investment advisor); Trustee, The AIM
Family of Funds(R); 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); Director, Invesco Ltd. and Chairman, Investment
Company Institute
- ------------------------------------------------------------------------------------------------------------------------------------
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 Executive Officer President, 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 registered transfer agent) and AIM GP
Canada Inc. (general partner for limited partnerships);
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
(registered investment advisor and registered transfer
agent) and Invesco Trimark Dealer Inc. (registered broker
dealer); Trustee, President and Principal Executive Officer,
The AIM Family of Funds(R) (other than AIM Treasurer's
Series Trust and Short-Term Investments Trust); Trustee and
Executive Vice President, The AIM Family of Funds(R) (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; Senior Managing Director,
Invesco Holding Company Limited; Trustee and Executive Vice
President, Tax-Free Investments Trust; Director and
Chairman, Fund Management Company (former registered broker
dealer); President and Principal Executive Officer, The AIM
Family of Funds(R) (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.
- ------------------------------------------------------------------------------------------------------------------------------------
INDEPENDENT TRUSTEES
- ------------------------------------------------------------------------------------------------------------------------------------
Bruce L. Crockett -- 1944 2003 Chairman, Crockett Technology Associates (technology ACE Limited (insurance
Trustee and Chair consulting company) company); Captaris, Inc.
(unified messaging
provider); and
Investment Company
Institute
- ------------------------------------------------------------------------------------------------------------------------------------
Bob R. Baker -- 1936 1983 Retired None
Trustee
- ------------------------------------------------------------------------------------------------------------------------------------
Frank S. Bayley -- 1939 2003 Retired None
Trustee
Formerly: Director, Badgley Funds, Inc. (registered
investment company) (2 portfolios)
- ------------------------------------------------------------------------------------------------------------------------------------
James T. Bunch -- 1942 2000 Founder, Green, Manning & Bunch Ltd., (investment banking Board of Governors,
Trustee firm) Western Golf
Association/Evans
Scholars Foundation and
Executive Committee,
United States Golf
Association
- ------------------------------------------------------------------------------------------------------------------------------------
Albert R. Dowden -- 1941 2003 Director of a number of public and private business Board of Nature's
Trustee corporations, including the Boss Group Ltd. (private Sunshine Products, Inc.
investment and management); Continental Energy Services, LLC
(oil and gas pipeline service); Reich & Tang Funds
(registered investment 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.; Director, Annuity and Life Re
(Holdings), Ltd. (reinsurance company); Senior Vice
President, AB Volvo; Director of various public and private
corporations
- ------------------------------------------------------------------------------------------------------------------------------------
Jack M. Fields -- 1952 2003 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), Discovery Global Education Fund (non-profit)
and Cross Timbers Quail Research Ranch (non-profit)
Formerly: Chief Executive Officer, Texana Timber LP
(sustainable forestry company)
- ------------------------------------------------------------------------------------------------------------------------------------
Carl Frischling -- 1937 2003 Partner, law firm of Kramer Levin Naftalis and Frankel LLP Director, Reich & Tang
Trustee Funds
(16 portfolios)
- ------------------------------------------------------------------------------------------------------------------------------------
Prema Mathai-Davis -- 1950 2003 Retired None
Trustee
- ------------------------------------------------------------------------------------------------------------------------------------
Lewis F. Pennock -- 1942 2003 Partner, law firm of Pennock & Cooper None
Trustee
- ------------------------------------------------------------------------------------------------------------------------------------
Larry Soll -- 1942 1997 Retired None
Trustee
- ------------------------------------------------------------------------------------------------------------------------------------
Raymond Stickel, Jr. -- 1944 2005 Retired None
Trustee
Formerly: Director, Mainstay 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.
T-1
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 N/A
Senior Vice President and of Funds(R)
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 N/A
Senior Vice President, Chief Counsel, Invesco Aim Management Group, Inc., Invesco Aim
Legal Officer and Secretary Advisors, Inc. 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(R); 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 and General
Counsel, 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 N/A
Vice President President, The AIM Family of Funds(R)
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(R); 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, N/A
Vice President Invesco Ltd.; Director, 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(R)
Formerly: Senior Managing Director and Secretary, Invesco
North American Holdings, Inc.; Vice President and Secretary,
IVZ, Inc. and Invesco Group Services, 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. and Invesco Aim Investment
Services, Inc.; Senior Vice President, Chief Legal Officer
and Secretary, The AIM Family of Funds(R); Director and Vice
President, INVESCO Distributors, Inc.; and Chief Executive
Officer and President, INVESCO Funds Group, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Sheri Morris -- 1964 2003 Vice President, Treasurer and Principal Financial Officer, N/A
Vice President, Treasurer and The AIM Family of Funds(R); and Vice President, Invesco Aim
Principal Financial Officer Advisors, Inc., Invesco Aim Capital Management, Inc. and
Invesco Aim Private Asset Management Inc.
Formerly: Assistant Vice President and Assistant Treasurer,
The AIM Family of Funds(R) and Assistant Vice President,
Invesco Aim Advisors, Inc., Invesco Aim Capital Management,
Inc. and Invesco Aim Private Asset Management, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Karen Dunn Kelley -- 1960 2003 Head of Invesco's World Wide Fixed Income and Cash N/A
Vice President Management Group; Vice President, Invesco Institutional
(N.A.), Inc. (registered investment advisor); 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, Invesco Institutional (N.A.), Inc.
(registered investment advisor); and Director, Invesco
Mortgage Capital Inc.; Vice President, The AIM Family of
Funds(R) (other than AIM Treasurer's Series Trust and
Short-Term Investments Trust); and President and Principal
Executive Officer, The AIM Family of Funds(R) (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(R) (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 N/A
Anti-Money Laundering Advisors, Inc., Invesco Aim Capital Management, Inc.,
Compliance Officer Invesco Aim Distributors, Inc., Invesco Aim Investment
Services, Inc., Invesco Aim Private Asset Management, Inc.
and The AIM Family of Funds(R)
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.; N/A
Chief Compliance Officer Senior Vice President and Chief Compliance Officer, Invesco
Aim Advisors, Inc. and Invesco Aim Capital Management, Inc.;
Chief Compliance Officer, The AIM Family of Funds(R),
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.
- ------------------------------------------------------------------------------------------------------------------------------------
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.
OFFICE OF THE FUND INVESTMENT ADVISOR DISTRIBUTOR AUDITORS
11 Greenway Plaza Invesco Aim Advisors, Inc. Invesco Aim Distributors, Inc. PricewaterhouseCoopers LLP
Suite 100 11 Greenway Plaza 11 Greenway Plaza 1201 Louisiana Street
Houston, TX 77046-1173 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 Services, Inc. State Street Bank and Trust
Young, LLP Kramer, Levin, Naftalis & Frankel LLP P.O. Box 4739 Company
2600 One Commerce Square 1177 Avenue of the Americas Houston, TX 77210-4739 225 Franklin
Philadelphia, PA 19103 New York, NY 10036-2714 Boston, MA 02110-2801
</Table>
T-2
<Table>
[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 number of - EFFICIENT. Stop waiting for regular mail. Your documents will
trees used to produce paper. 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.
- ------------------------------------------------------------------------------------------------------------------------------------
IMPORTANT NOTICE REGARDING DELIVERY OF SECURITY HOLDER DOCUMENTS
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the
same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise.
If you do not want the mailing of these documents to be combined with those for other members of your household, please contact
Invesco Aim Investment Services, Inc. at 800 959 4246 or contact your financial institution. We will begin sending you individual
copies for each account within thirty days after receiving your request.
- ------------------------------------------------------------------------------------------------------------------------------------
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 811-09913 and 333-36074.
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, 2009, 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 January 20, 2010, 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,
exchange-traded 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.
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 Aim Private Asset Management, Inc. and Invesco Global Asset [INVESCO AIM LOGO]
Management (N.A.), Inc. will be merged into Invesco Institutional (N.A.), Inc., and the consolidated adviser -- SERVICE MARK --
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 I-MSE-AR-1 Invesco Aim Distributors, Inc.
</Table>
[INVESCO AIM LOGO] AIM SELECT REAL ESTATE INCOME FUND
- service mark -
ANNUAL REPORT TO SHAREHOLDERS AUGUST 31, 2009
<Table>
2 Letters to Shareholders
4 Performance Summary
4 Management Discussion
6 Long-Term Fund Performance
8 Supplemental Information
9 Schedule of Investments
12 Financial Statements
14 Notes to Financial Statements
21 Financial Highlights
23 Auditor's Report
24 Fund Expenses
25 Approval of Investment Advisory and Sub-Advisory Agreements
28 Tax Information
T-1 Trustees and Officers
</Table>
<Table>
Dear Shareholders:
While the year covered by this report was difficult -- for long-time investors and veteran
investment professionals alike -- economic conditions and market trends appeared much more
[TAYLOR favorable at the close of the fiscal year than at its start.
PHOTO]
The 12 months ended August 31, 2009, included a sharp market sell-off that occurred in the
second half of 2008. That downturn affected virtually all sectors, markets and investors. The
decline had a number of causes, the most immediate being unprecedented turmoil in credit
markets. Economic uncertainty prompted banks to hoard cash and reduce lending, and caused
Philip Taylor investors to shun short-term corporate debt. As a result, businesses found it difficult to fund
their day-to-day operations, and the U.S. economy -- as well as economies around the globe --
virtually froze briefly.
INCREASED COMMUNICATION
These developments prompted a greater-than-usual number of shareholders to contact me. Some
of you took the time to write a letter while others of you emailed me at phil@invescoaim.com.
Many of you sought explanations for the decline in the value of your accounts, while others asked more general questions about
when the economy might improve. Your questions, comments and suggestions gave me better insight into what was on your minds, and I
was pleased that so many of you took the time to share your thoughts with me.
As a result, Invesco Aim's investment professionals and I have increased our efforts to stay in touch with and share our views
with you. We increased the number of "Investment Perspectives" articles on our website, invescoaim.com. Through these articles,
we've tried to provide timely market commentary, general investor education information and sector updates. I hope you'll take a
moment to read them and let me know if you find them useful.
To access your Fund's latest quarterly commentary, click on "Products and Performance" at the top of our website; next, select
"Mutual Funds"; and then click on "Quarterly Commentary."
I also hope you've stayed in touch with your financial advisor. An experienced financial advisor who is familiar with your
individual investment goals, time horizon and risk tolerance can be a source of comfort and information during uncertain times. He
or she can monitor your investments to ensure they're on track and can prevent you from making impulsive short-term decisions that
may have adverse long-term consequences.
REASONS FOR OPTIMISM
The economy and equity markets reacted to a barrage of negative news during the year. Consumer spending -- which accounts for more
than two-thirds(1) of the U.S. economy -- was sluggish as unemployment rose; more workers worried about their job security; home and
portfolio values declined; and credit became more difficult to obtain.
In his semiannual monetary policy report to Congress in late July, U.S. Federal Reserve Board Chairman Ben Bernanke summarized
the stresses and strains the U.S. and global economies suffered in late 2008 and early 2009. Importantly, he suggested that the
aggressive, coordinated actions taken by governments and central banks around the world finally may be yielding results. He
testified that:
o The pace of overall economic decline appears to have slowed significantly.
o Credit availability, for consumers and businesses, has improved noticeably.
o Investors' extreme risk aversion has eased somewhat.
o The decline in housing activity appears to have moderated.
While these and other trends offer encouragement, uncertainties remain. Chairman Bernanke testified that he anticipates a gradual
recovery in 2010 with some acceleration in economic growth in 2011, together with subdued inflation over the next two years. His
considered judgment appears to be shared by investors who have begun to return, cautiously, to the equities market, causing major
U.S. stock-market indexes to bounce off their March lows.
A SINGLE FOCUS
I believe Invesco Aim is uniquely positioned to serve our clients. Our parent company, Invesco Ltd., is one of the largest(2) and
most diversified global asset managers. It provides clients with diversified investment strategies and a range of investment
products managed by distinct management teams around the world. We believe we can serve you best by focusing on one thing and doing
it well: managing your money.
Our investment professionals have managed clients' money in up markets and down markets. All of us here recognize that market
conditions change often; what will not change is our commitment to putting our clients first, helping you achieve your financial
goals and providing excellent customer service.
If you have questions about this report or your account, please contact one of our client services representatives at 800 959
4246. If you have comments for me, I encourage you to email me at phil@invescoaim.com.
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) Reuters;
(2) Pensions & Investments
2 AIM SELECT REAL ESTATE INCOME FUND
</Table>
<Table>
Dear Fellow Shareholders:
Although the economy and financial markets have shown some signs of hope, investors remain
[CROCKETT rightfully cautious. Staying with an appropriately diversified investment program focused on
PHOTO] your individual long-term goals can be a wise course in such uncertain times. We believe the
route to financial success is more like a marathon than a sprint.
Please be assured that your Board continues to oversee the AIM Funds with a strong sense of
responsibility for your money and your trust. As always, we seek to manage costs and enhance
performance in ways that put your interests first.
Bruce Crockett
We are near the end of a busy 2009 proxy season, during which Invesco Aim Advisors, Inc.'s
proxy committee votes on your behalf on issues put to a shareholder vote by the companies whose
stock the Funds hold. This year, after careful case-by-case analysis by committee
members and portfolio managers, the proxy committee voted with corporate management less often than in previous years, focusing on
the issues of board independence, Say-On-Pay initiatives, and stock option re-pricing in light of the market's decline. The
committee remained committed to supporting non-binding Say-on-Pay proposals and abstaining from voting on social issues.
At its June meeting, your Board reviewed and renewed the investment advisory contracts between the AIM Funds and Invesco Aim
Advisors, Inc. You can find the results of this rigorous annual process at invescoaim.com. Go to "Products & Performance" and click
on "Investment Advisory Agreement Renewals."
The website also contains news and market information, investment education and planning information and current reports and
prospectuses for all the AIM Funds and I highly recommend it to you.
You are always welcome to contact me at bruce@brucecrockett.com with any questions or concerns you may have. We look forward to
representing you and serving you in the coming months.
Sincerely,
/S/ BRUCE L. CROCKETT
Bruce L. Crockett
Independent Chair
AIM Funds Board of Trustees
3 AIM SELECT REAL ESTATE INCOME FUND
</Table>
<Table>
- ------------------------------------------------------------------------------------------------------------------------------------
MANAGEMENT'S DISCUSSION OF FUND PERFORMANCE
PERFORMANCE SUMMARY o Company fundamentals change (property
type, geography or management changes).
While a severe global economic slowdown persisted during the fiscal year ended August
31, 2009, a significant stock market rally began late in the period. Strained credit o A more attractive investment
markets materially affected real estate markets, which resulted in slower property opportunity is identified.
sales and lower property valuations. Toward the end of the reporting period, modest
improvements in credit markets and increased access to capital through debt refinancing MARKET CONDITIONS AND YOUR FUND
and secondary equity offerings benefited the U.S. real estate investment trust (REIT)
market. In this volatile environment, AIM Select Real Estate Income Fund had negative Though much of the fiscal year was marked
returns. At net asset value (NAV), the Fund fared better than the broad market, as by headlines claiming economic
measured by the S&P 500 Index, as well as its peer group, the Lipper Real Estate Funds "Armageddon," the U.S. economy began to
Index. However, the Fund underperformed the Custom Select Real Estate Income Index, its show signs that the economic contraction
style-specific benchmark, due primarily to an underweight exposure in preferred stocks, was moderating toward the end of the
which exhibit fixed income-like characteristics.(triangle)(square) period. Economic data, while poor in
absolute terms, indicated that the rampant
Your Fund's long-term performance appears later in this report. decline in business spending and
consumption that occurred at the end of
FUND VS. INDEXES 2008 and the beginning of 2009 may have
eased. Despite these trends, there were
Total returns, 8/31/08 to 8/31/09, at net asset value (NAV). Performance shown does not few signs of a broad-based economic
include applicable contingent deferred sales charges (CDSC) or front-end sales charges, recovery. Nevertheless, given signs that
which would have reduced performance. the economic downturn may be moderating,
equity and credit markets improved. In
Class A Shares -17.22% addition, financial markets benefited from
Class B Shares -17.81 the various government programs introduced
Class C Shares -17.90 to improve bank balance sheets and reduce
Class Y Shares* -17.32 credit spreads..
S&P 500 Index(triangle) (Broad Market Index) -18.25
Custom Select Real Estate Income Index(square) (Style-Specific Index) -12.52 During the fiscal year, the U.S.
Lipper Real Estate Funds Index(triangle) (Peer Group Index) -32.35 Federal Reserve Board (the Fed) lowered
the federal funds target rate from 2% to a
(triangle)Lipper Inc.; (square)Invesco Aim, Lipper Inc., Bloomberg L.P. range of zero and 0.25%.(1) Real gross
domestic product (GDP), although still
* Share class incepted during the fiscal year. See page 7 for a detailed explanation negative, showed signs of recovery.
of Fund performance. Indeed, the annualized rate of GDP was
-1.0% for the second quarter of 2009,
HOW WE INVEST o Favorable property market outlook. which was an improvement from the -6.4%
rate for the first quarter of 2009.(2)
Your Fund holds primarily real o Reasonable valuations relative to peer Inflation, measured by a seasonally
estate-oriented securities. We focus on investment alternatives. adjusted Consumer Price Index, was
public companies whose value is driven by relatively benign following a significant
tangible assets. Our goal is to create a We attempt to control risk by decline in crude oil prices from their all
fund that will provide attractive current allocating between property related common time highs reached in July 2008.(3)
income. We use a fundamentals-driven stocks and fixed income as well as Unemployment, however, trended higher
investment process, including property diversifying by property types and during the fiscal year and ultimately
market cycle analysis, property evaluation geographic location and also limiting the
and management and structure review to size of any one holding.
identify securities with:
We will consider selling a holding
o Attractive relative dividend yields. when:
o Relative yields and/or valuation falls
below desired levels.
o Risk/return relationships change
significantly.
- ------------------------------------------ ------------------------------------------ ------------------------------------------
PORTFOLIO COMPOSITION TOP 10 EQUITY HOLDINGS* Total Net Assets $136.5 million
By property type Total Number of Holdings* 94
1. Simon Property Group Inc. 7.1%
Health Care 17.1% 2. Ventas, Inc. 4.4 The Fund's holdings are subject to change,
Asset-Backed Securities 12.4 3. Senior Housing Properties Trust 4.4 and there is no assurance that the Fund
Apartments 10.1 4. Liberty Property Trust 3.7 will continue to hold any particular
Regional Malls 9.8 5. Mack-Cali Realty Corp. 3.3 security.
Industrial/Office: Mixed 8.4 6. Essex Property Trust, Inc. 3.1
Office 7.3 7. Mid America Apartment * Excluding money market fund holdings.
Diversified 6.9 Communities, Inc. 3.0
Self Storage Facilities 5.6 8. Vornado Realty Trust 2.9
Freestanding 4.8 9. Health Care REIT, Inc. 2.8
Industrial 4.2 10. National Retail Properties Inc. 2.6
Shopping Centers 3.9
Specialty Properties 2.9
Lodging-Resorts 0.2
Market Money Funds Plus
Other Assets Less Liabilities 6.4
4 AIM SELECT REAL ESTATE INCOME FUND
</Table>
<Table>
ended August 2009 at a rate of 9.7% SL GREEN, an office REIT focused on JOE RODRIGUEZ, JR.
nationwide.(3) commercial office properties in Manhattan,
was among detractors from Fund Senior portfolio
Given this environment, the U.S. REIT performance. SL Green suffered as layoffs manager, is lead
market, as measured by the FTSE NAREIT in New York's financial sector [RODRIGUE manager of AIM Select
Equity REITs Index, produced a loss for accelerated, creating added rental market PHOTO] Real Estate Income
the period.(4) Our relatively defensive and occupancy risks. Given the security's Fund. He is head of
posture proved beneficial given the relatively low yield, we sold our holdings real estate securities
volatility of the fiscal year. We were in SL Green during the fiscal year. for Invesco Real Estate, where he oversees
active in trading during the period to all phases of the unit, including
take advantage of differences in relative PROLOGIS, a global provider of securities research and administration.
value among domestic REITs. Fund distribution facilities across North Mr. Rodriguez began his investment career
performance varied noticeably by sector, America, Europe and Asia, also detracted in 1983 and joined Invesco in 1990. He
with apartment REITs and health care REITs from Fund performance during the fiscal earned a B.B.A. in economics and finance
contributing the most to absolute year. Toward the end of 2008, we became as well as an M.B.A. in finance from
performance. Regional malls and office increasingly concerned about potential Baylor University.
REITs, on the other hand, detracted from earnings risk from lower profit margins on
the Fund's absolute performance during the the firm's global development projects and MARK BLACKBURN
fiscal year. began to reduce our exposure to ProLogis.
However, the combination of discounted Chartered Financial
Relative to the FTSE NAREIT Equity valuation and steps the company took to Analyst, portfolio
REITs Index, our security selection and improve its balance sheet caused us to [BLACKBURN manager, is manager of
overweight exposure in health care REITs, increase our exposure toward the end of PHOTO] AIM Select Real Estate
mixed-use industrial/office REITs and self the fiscal year. Income Fund. Mr.
storage facilities benefited Fund Blackburn joined
performance. Alternatively, a lack of We remained committed to owning quality Invesco in 1998. He earned a B.S. in
exposure to manufactured homes hurt the real estate companies that we believe may accounting from Louisiana State University
Fund's performance during the fiscal year. benefit from relatively better sector and an M.B.A. from Southern Methodist
We have avoided single family housing trends. We continued to manage risk by University. Mr. Blackburn is a Certified
since 2005. holding a portfolio diversified by Public Accountant.
property type and geographic location. In
Health care, generally a defensive the common stock portion of the Fund, PAUL CURBO
sector less directly linked to the overall lower leveraged companies with above
economy, outperformed during the fiscal average levels of dividend coverage Chartered Financial
year. VENTAS, a health care REIT with remained favored in the portfolio. [CURBO Analyst, portfolio
exposure to a wide array of health care PHOTO] manager, is manager of
related real estate, including senior We thank you for your continued AIM Select Real Estate
housing facilities, long-term care investment in AIM Select Real Estate Income Fund. He joined Invesco in 1998.
facilities and hospitals, was the top Income Fund. Mr. Curbo earned a B.B.A. in finance from
contributor to Fund performance. We added The University of Texas at Austin.
to our position in Ventas during the 1 U.S. Federal Reserve
fiscal year to take advantage of JAMES TROWBRIDGE
differences in relative value and as a 2 Bureau of Economic Analysis
means of becoming more defensive in Portfolio manager, is
anticipation of market volatility. 3 Bureau of Labor Statistics [TROWBRIDGE manager of AIM Select
PHOTO] Real Estate Income
Apartment REITs CAMDEN and MID-AMERICA 4 Lipper Inc. Fund. He joined Invesco
APARTMENT COMMUNITIES were also among the in 1989. Mr. Trowbridge earned his B.A. in
Fund's top contributing holdings. We The views and opinions expressed in finance from Indiana University.
increased our exposure to apartment REITs management's discussion of Fund
during the fiscal year to take advantage performance are those of Invesco Aim Assisted by the Real Estate Team
of relative value opportunities and Advisors, Inc. These views and opinions
because we anticipated the peak-to-trough are subject to change at any time based on
fundamental decline in apartments would be factors such as market and economic
less severe than in other sectors. conditions. These views and opinions may
Additionally, we believed increases in not be relied upon as investment advice or
U.S. home prices and short-term interest recommendations, or as an offer for a
rates could cause apartment occupancies particular security. The information is
and rents to rebound. Mid-America not a complete analysis of every aspect of
Apartment Communities in particular had any market, country, industry, security or
lower capital demands and few expected the Fund. Statements of fact are from
write-downs due to this REIT's limited sources considered reliable, but Invesco
development pipeline. 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.
See important Fund and index disclosures
later in this report.
5 AIM SELECT REAL ESTATE INCOME FUND
</Table>
YOUR FUND'S LONG-TERM PERFORMANCE
RESULTS OF A $10,000 INVESTMENT - OLDEST SHARE CLASS WITH SALES CHARGES SINCE
INCEPTION
Fund and Index data from 05/31/02
(PERFORMANCE CHART)
<Table>
<Caption>
AIM CUSTOM
SELECT REAL SELECT REAL
ESTATE FUND- ESTATE LIPPER
CLASS A INCOME S&P 500 REAL ESTATE
SHARES INDEX(2) INDEX(1) FUNDS INDEX(1)
------------ ----------- -------- --------------
5/31/2002 9430 10000 10000 10000
06/02 9661 10198 9288 10220
07/02 9259 9905.3 8564 9635
08/02 9226 9998.3 8620 9656
09/02 8874 9846.2 7684 9312
10/02 8334 9524.8 8360 8902
11/02 8775 9836.6 8851 9262
12/02 8799 9994.4 8332 9361
01/03 8622 9891.7 8114 9116
02/03 8802 9967.3 7992 9257
03/03 8977 10097 8069 9470
04/03 9561 10441 8734 9882
05/03 10222 10853 9193 10465
06/03 10704 11075 9311 10713
07/03 11298 11310 9475 11204
08/03 11187 11368 9660 11325
09/03 11689 11675 9557 11687
10/03 12128 11851 10098 11947
11/03 12704 12169 10186 12470
12/03 13320 12482 10720 12844
01/04 14024 12797 10917 13303
02/04 14306 12946 11069 13595
03/04 15036 13387 10902 14337
04/04 12606 12097 10731 12452
05/04 13316 12538 10878 13185
06/04 13585 12773 11089 13590
07/04 13683 12939 10722 13647
08/04 14657 13610 10765 14597
09/04 14798 13677 10882 14678
10/04 15477 14104 11048 15353
11/04 15986 14465 11495 16037
12/04 16577 14892 11886 16971
01/05 15390 14291 11596 15847
02/05 15746 14556 11840 16311
03/05 15234 14324 11631 16011
04/05 15894 14816 11410 16656
05/05 16515 15147 11773 17216
06/05 17277 15614 11790 18017
07/05 18189 16210 12228 19177
08/05 17483 15954 12117 18513
09/05 17721 15998 12215 18568
10/05 17126 15713 12011 18136
11/05 17466 16028 12465 18921
12/05 17314 16094 12469 19053
01/06 18563 16768 12799 20248
02/06 18802 17009 12834 20553
03/06 19396 17457 12994 21500
04/06 18659 17054 13168 20940
05/06 17958 16848 12790 20359
06/06 18820 17343 12806 21242
07/06 19486 17757 12885 21736
08/06 20581 18229 13192 22480
09/06 20888 18509 13531 22908
10/06 21771 19192 13972 24215
11/06 22329 19726 14237 25316
12/06 22362 19656 14437 25047
01/07 23163 20526 14655 26849
02/07 22838 20306 14369 26317
03/07 22957 20087 14530 25874
04/07 23049 20111 15173 25983
05/07 22984 20096 15702 26184
06/07 22182 19136 15441 24069
07/07 20805 17945 14963 22454
08/07 21560 18425 15187 23383
09/07 22149 18916 15754 24425
10/07 22310 18928 16005 24927
11/07 20780 17506 15336 22737
12/07 19955 16691 15230 21665
01/08 20677 17419 14316 21390
02/08 20257 17019 13852 20693
03/08 20399 17315 13792 21604
04/08 21433 18109 14463 22857
05/08 21693 18325 14650 22929
06/08 20142 16837 13416 21111
07/08 19737 16775 13304 21646
08/08 19976 17161 13496 21907
09/08 18523 15745 12295 21240
10/08 14398 12229 10230 14860
11/08 12011 10251 9496 11562
12/08 13569 11860 9596 13178
01/09 12416 10972 8788 11138
02/09 10772 8985 7855 9007
03/09 11282 9453 8542 9279
04/09 13564 11810 9359 11992
05/09 13911 12425 9882 12335
06/09 13812 12465 9902 11945
07/09 15261 13683 10650 13092
08/09 16535 15013 11034 14820
</Table>
(1) Lipper Inc.
(2) Invesco Aim, Lipper Inc., Bloomberg L.P.
<Table>
Past performance cannot guarantee shown in the chart and table(s) does not one that indicates the dollar value of an
comparable future results. reflect deduction of taxes a shareholder investment, is constructed with each
would pay on Fund distributions or sale of segment representing a percent change in
The data shown in the chart include Fund shares. the value of the investment. In this
reinvested distributions, applicable sales chart, each segment represents a doubling,
charges and Fund expenses including This chart, which is a logarithmic or 100% change, in the value of the
management fees. Index results include chart, presents the fluctuations in the investment. In other words, the space
reinvested dividends, but they do not value of the Fund and its indexes. We between $5,000 and $10,000 is the same
reflect sales charges. Performance of the believe that a logarithmic chart is more size as the space between $10,000 and
peer group reflects fund expenses and effective than other types of charts in $20,000, and so on.
management fees; performance of a market illustrating changes in value during the
index does not. Performance early years shown in the chart. The
vertical axis, the
continued from page 8
o Property type classifications used in o The Chartered Financial Analysts (R) o CPA (R) and Certified Public
this report are generally according to (CFA(R)) designation is globally Accountant(R) are trademarks owned by
the FTSE National Association of Real recognized and attests to a the American Institute of Certified
Estate Investment Trusts (NAREIT) charterholder's success in a rigorous Public Accountants.
Equity REITs Index, which is and comprehensive study program in the
exclusively owned by NAREIT. field of investment management and
research analysis.
6 AIM SELECT REAL ESTATE INCOME FUND
</Table>
<Table>
AVERAGE ANNUAL TOTAL RETURNS AVERAGE ANNUAL TOTAL RETURNS THE NET ANNUAL FUND OPERATING EXPENSE
RATIO SET FORTH IN THE MOST RECENT FUND
As of 8/31/09, including maximum applicable As of 6/30/09, the most recent calendar PROSPECTUS AS OF THE DATE OF THIS REPORT
quarter-end, including maximum applicable FOR CLASS A, CLASS B AND CLASS C AND CLASS
sales charges sales charges Y SHARES WAS 1.34%, 2.09%, 2.09% AND
1.09%, RESPECTIVELY.(1) THE TOTAL ANNUAL
CLASS A SHARES CLASS A SHARES FUND OPERATING EXPENSE RATIO SET FORTH IN
THE MOST RECENT FUND PROSPECTUS AS OF THE
Inception(5/31/02) 7.18% Inception(5/31/02) 4.66% DATE OF THIS REPORT FOR CLASS A, CLASS B,
5 Years 1.29 5 Years -0.80 CLASS C AND CLASS Y SHARES WAS 1.35%,
1 Year -21.79 1 Year -35.18 2.10%, 2.10% AND 1.10%, RESPECTIVELY. THE
CLASS B SHARES CLASS B SHARES EXPENSE RATIOS PRESENTED ABOVE MAY VARY
Inception 6.95% Inception 4.45% FROM THE EXPENSE RATIOS PRESENTED IN OTHER
5 Years 1.33 5 Years -0.77 SECTIONS OF THIS REPORT THAT ARE BASED ON
1 Year -21.75 1 Year -35.18 EXPENSES INCURRED DURING THE PERIOD
CLASS C SHARES CLASS C SHARES COVERED BY THIS REPORT.
Inception 6.95% Inception 4.45%
5 Years 1.46 5 Years -0.64 CLASS A SHARE PERFORMANCE REFLECTS THE
1 Year -18.69 1 Year -32.56 MAXIMUM 5.50% SALES CHARGE, AND CLASS B
CLASS Y SHARES CLASS Y SHARES AND CLASS C SHARE PERFORMANCE REFLECTS THE
Inception 7.99% Inception 5.47% APPLICABLE CONTINGENT DEFERRED SALES
5 Years 2.41 5 Years 0.29 CHARGE (CDSC) FOR THE PERIOD INVOLVED. THE
1 Year -17.32 1 Year -31.55 CDSC ON CLASS B SHARES DECLINES FROM 5%
BEGINNING AT THE TIME OF PURCHASE TO 0% AT
ON MARCH 12, 2007, THE FUND REORGANIZED CLASS Y SHARES' INCEPTION DATE IS THE BEGINNING OF THE SEVENTH YEAR. THE
FROM A CLOSED-END FUND TO AN OPEN-END OCTOBER 3, 2008; RETURNS SINCE THAT DATE CDSC ON CLASS C SHARES IS 1% FOR THE FIRST
FUND. CLASS A SHARE RETURNS PRIOR TO MARCH ARE ACTUAL RETURNS. ALL OTHER RETURNS ARE YEAR AFTER PURCHASE. CLASS Y SHARES DO NOT
12, 2007, ARE THE HISTORICAL RETURNS OF BLENDED RETURNS OF ACTUAL CLASS Y SHARE HAVE A FRONT-END SALES CHARGE OR A CDSC;
THE CLOSED-END FUND'S COMMON SHARES WHICH PERFORMANCE AND RESTATED CLASS A SHARE THEREFORE, PERFORMANCE IS AT NET ASSET
INCEPTED MAY 31, 2002 AND WHICH HAD NO PERFORMANCE (FOR PERIODS PRIOR TO THE VALUE.
12B-1 FEE. THE CLASS A SHARE RETURNS PRIOR INCEPTION DATE OF CLASS Y SHARES) AT NET
TO MARCH 12, 2007 DO NOT REFLECT THE 0.25% ASSET VALUE. THE RESTATED CLASS A SHARE THE PERFORMANCE OF THE FUND'S SHARE
ANNUAL 12B-1 FEE APPLICABLE TO THE FUNDS' PERFORMANCE REFLECTS THE RULE 12B-1 FEES CLASSES WILL DIFFER PRIMARILY DUE TO
CLASS A SHARES OR THE ANNUAL OTHER APPLICABLE TO CLASS A SHARES AS WELL AS DIFFERENT SALES CHARGE STRUCTURES AND
EXPENSES OF SUCH CLASS A SHARES WHICH ARE ANY FEE WAIVERS OR EXPENSE REIMBURSEMENTS CLASS EXPENSES.
ESTIMATED TO BE 0.10% HIGHER THAN THOSE OF RECEIVED BY CLASS A SHARES. CLASS A SHARES
THE CLOSED-END FUND. IF THE 12B-1 FEE AND INCEPTION DATE IS MAY 31, 2002. HAD THE ADVISOR NOT WAIVED FEES AND/OR
OTHER EXPENSES OF THE FUND'S CLASS A REIMBURSED EXPENSES IN THE PAST,
SHARES WERE REFLECTED, RETURNS PRIOR TO THE PERFORMANCE DATA QUOTED REPRESENT PERFORMANCE WOULD HAVE BEEN LOWER.
MARCH 12, 2007 MAY BE LOWER THAN THOSE PAST PERFORMANCE AND CANNOT GUARANTEE
SHARES FOR THAT PERIOD. COMPARABLE FUTURE RESULTS; CURRENT FUND PERFORMANCE WAS POSITIVELY
PERFORMANCE MAY BE LOWER OR HIGHER. PLEASE IMPACTED BY A TEMPORARY 2% FEE ON
THE INCEPTION DATE FOR THE OPEN-END VISIT INVESCOAIM.COM FOR THE MOST RECENT REDEMPTIONS THAT WAS IN EFFECT FROM MARCH
FUND'S CLASS B AND CLASS C SHARES IS MARCH MONTH-END PERFORMANCE. PERFORMANCE FIGURES 12, 2007 TO MARCH 12, 2008. WITHOUT INCOME
9, 2007; RETURNS SINCE THAT DATE ARE REFLECT REINVESTED DISTRIBUTIONS FROM THIS TEMPORARY FEE, RETURNS WOULD
HISTORICAL RETURNS. ALL OTHER RETURNS ARE (REINVESTED AT NET ASSET VALUE, EXCEPT FOR HAVE BEEN LOWER.
BLENDED RETURNS OF HISTORICAL CLASS B AND PERIODS PRIOR TO MARCH 12, 2007, WHERE
CLASS C SHARES AND THE HISTORICAL REINVESTMENTS WERE MADE AT THE LOWER OF 1 Total annual operating expenses less
PERFORMANCE OF THE CLOSED-END FUND'S THE CLOSED-END FUND'S NET ASSET VALUE OR any contractual fee waivers and/or
COMMON SHARES AT NET ASSET VALUE, RESTATED MARKET PRICE), CHANGES IN NET ASSET VALUE expense reimbursements by the advisor
TO REFLECT THE 1.00% ANNUAL 12B-1 FEE AND THE EFFECT OF THE MAXIMUM SALES CHARGE in effect through at least June 30,
APPLICABLE TO THE FUND'S CLASS B AND CLASS UNLESS OTHERWISE STATED. INVESTMENT RETURN 2010. See current prospectus for more
C SHARES AND THE ANNUAL OTHER EXPENSES OF AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT information.
SUCH CLASS B AND CLASS C SHARES, WHICH ARE YOU MAY HAVE A GAIN OR LOSS WHEN YOU SELL
ESTIMATED TO BE 0.10% HIGHER THAN THOSE OF SHARES.
THE CLOSED-END FUND.
</Table>
7 AIM SELECT REAL ESTATE INCOME FUND
<Table>
AIM SELECT REAL ESTATE INCOME FUND'S INVESTMENT OBJECTIVES ARE HIGH CURRENT INCOME AND, SECONDARILY, CAPITAL APPRECIATION.
o Unless otherwise stated, information presented in this report is as of August 31, 2009, and is based on total net assets.
o Unless otherwise noted, all data provided by Invesco Aim.
ABOUT SHARE CLASSES
o On March 12, 2007, AIM Select Real change in the value of those securities o The CUSTOM SELECT REAL ESTATE INCOME
Estate Income Fund was reorganized from could significantly affect the value of INDEX is an index created by Invesco
a Closed-End Fund to an Open-End Fund. your investment in the Fund. Aim to benchmark the fund. The index
Information presented for Class A consists of the following indices: 50%
shares prior to the reorganization o A majority of the Fund's assets are FTSE NAREIT Equity REIT Index and 50%
included financial data for the likely to be invested in loans and Wachovia Hybrid and Preferred
Closed-End Fund's Common Shares. securities that are less liquid than Securities REIT Index. The FTSE NAREIT
those rated on national exchanges. Equity REIT Index is a market-cap
o Effective September 30, 2003, for weighted index of all equity REITs
qualified plans only, those previously o Lower rated securities may be more traded on the NYSE, NASDAQ National
established are eligible to purchase susceptible to real or perceived Market System, and the American Stock
Class B shares of any AIM fund. Please adverse economic and competitive Exchange. The Wachovia Hybrid and -
see the prospectus for more industry conditions. Preferred Securities REIT Index is a
information. capitalization weighted unmanaged index
o There is no guarantee that the invest of exchange listed perpetual REIT
o Class Y shares are available to only -ment techniques and risk analysis used preferred stocks and depository shares.
certain investors. Please see the by the Fund's portfolio managers will
prospectus for more information. produce the desired results. o The LIPPER REAL ESTATE FUNDS INDEX is
an equally weighted representation of
PRINCIPAL RISKS OF INVESTING IN THE FUND o The prices of securities held by the the largest funds in the Lipper Real
Fund may decline in response to market Estate Funds category. These funds
o Credit risk is the risk of loss on an risks. invest their equity portfolio primarily
investment due to the deterioration of in shares of domestic companies engaged
an issuer's financial health. Such a o The Fund may invest in mortgage and in the real estate industry.
deterioration of financial health may asset-backed securities. These
result in a reduction of the credit securities are subject to prepayment or o The Fund is not managed to track the
rating of the issuer's securities and call risk, which is the risk that performance of any particular index,
may lead to the issuer's inability to payments from the borrower may be including the indexes defined here, and
honor its contractual obligations, received earlier or later than expected consequently, the performance of the
including making timely payment of due to changes in the rate at which the Fund may deviate significantly from the
interest and principal. underlying loans are prepaid. performance of the indexes.
o Prices of equity securities change in o Non-diversification increases the risk o A direct investment cannot be made in
response to many factors including the that the value of the Fund's shares may an index. Unless otherwise indicated,
historical and prospective earnings of vary more widely, and the Fund may be index results include reinvested
the issuer, the value of its assets, subject to greater investment and dividends, and they do not reflect
general economic conditions, interest credit risk than if it invested more sales charges or fund expenses.
rates, investor perceptions and market broadly.
liquidity. OTHER INFORMATION
o Because the Fund concentrates its
o Foreign securities have additional assets in the real estate industry, an o The returns shown in management's
risks including exchange rate changes, investment in the fund will be closely discussion of Fund performance are
political and economic upheaval, the linked to the performance of the real based on net asset values calculated
relative lack of information, estate markets. for shareholder transactions. Generally
relatively low market liquidity and the accepted accounting principles require
potential lack of strict financial and o The Fund may use enhanced invest -ment adjustments to be made to the net
accounting controls and standards. techniques such as short sales. Short assets of the Fund at period end for
sales carry the risk of buying a financial reporting purposes, and as
o Interest rate risk refers to the risk security back at a higher price at such, the net asset values for
that bond prices generally fall as which the Fund's exposure is unlimited. shareholder transactions and the
interest rates rise and vice versa. returns based on those net asset values
ABOUT INDEXES USED IN THIS REPORT may differ from the net asset values
o Since a large percentage of the Fund's and returns reported in the Financial
assets may be invested in securities of o The S&P 500(R) INDEX is a market Highlights.
a limited number of companies, each capitalization-weighted index covering
investment has a greater effect on the all major areas of the U.S. economy. It continued on page 6
Fund's overall performance, and any is not the 500 largest companies, but
rather the most widely held 500
companies chosen with respect to market
size, liquidity, and their industry.
THIS REPORT MUST BE ACCOMPANIED OR PRECEDED BY A CURRENTLY EFFECTIVE FUND PROSPECTUS, ------------------------------------------
WHICH CONTAINS MORE COMPLETE INFORMATION, INCLUDING SALES CHARGES AND EXPENSES. FUND NASDAQ SYMBOLS
INVESTORS SHOULD READ IT CAREFULLY BEFORE INVESTING.
Class A Shares ASRAX
- --------------------------------------------------------------------------------------- Class B Shares SARBX
NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE Class C Shares ASRCX
Class Y Shares ASRYX
</Table>
8 AIM SELECT REAL ESTATE INCOME FUND
SCHEDULE OF INVESTMENTS(a)
August 31, 2009
<Table>
<Caption>
SHARES VALUE
- -------------------------------------------------------------------------------
REAL ESTATE INVESTMENT TRUSTS, COMMON STOCKS & OTHER EQUITY
INTERESTS-59.84%
APARTMENTS-8.17%
Camden Property Trust 74,100 $ 2,719,470
- -------------------------------------------------------------------------------
Essex Property Trust, Inc. 57,200 4,267,692
- -------------------------------------------------------------------------------
Mid-America Apartment Communities, Inc. 94,900 4,154,722
===============================================================================
11,141,884
===============================================================================
DIVERSIFIED-5.40%
Vornado Realty Trust 69,448 3,994,649
- -------------------------------------------------------------------------------
Washington REIT 125,391 3,380,541
===============================================================================
7,375,190
===============================================================================
FREESTANDING-3.55%
National Retail Properties Inc. 174,900 3,588,948
- -------------------------------------------------------------------------------
Realty Income Corp. 48,900 1,249,395
===============================================================================
4,838,343
===============================================================================
HEALTHCARE-14.21%
HCP, Inc. 38,900 1,107,872
- -------------------------------------------------------------------------------
Health Care REIT, Inc. 88,873 3,795,766
- -------------------------------------------------------------------------------
LTC Properties, Inc. 23,400 595,998
- -------------------------------------------------------------------------------
OMEGA Healthcare Investors, Inc. 115,500 1,953,105
- -------------------------------------------------------------------------------
Senior Housing Properties Trust 296,600 5,949,796
- -------------------------------------------------------------------------------
Ventas, Inc. 152,600 5,983,446
===============================================================================
19,385,983
===============================================================================
INDUSTRIAL-4.19%
DCT Industrial Trust Inc. 341,700 1,804,176
- -------------------------------------------------------------------------------
EastGroup Properties, Inc. 45,900 1,727,676
- -------------------------------------------------------------------------------
ProLogis 196,900 2,189,528
===============================================================================
5,721,380
===============================================================================
INDUSTRIAL/OFFICE: MIXED-3.72%
Liberty Property Trust 154,900 5,076,073
===============================================================================
OFFICE-4.68%
Corporate Office Properties Trust 20,800 766,688
- -------------------------------------------------------------------------------
Kilroy Realty Corp. 41,900 1,161,049
- -------------------------------------------------------------------------------
Mack-Cali Realty Corp. 139,400 4,464,982
===============================================================================
6,392,719
===============================================================================
REGIONAL MALLS-8.47%
Macerich Co. (The) 66,559 1,907,567
- -------------------------------------------------------------------------------
Simon Property Group, Inc. 151,667 9,649,055
===============================================================================
11,556,622
===============================================================================
SELF STORAGE FACILITIES-2.31%
Public Storage-Series A Dep. Shares 124,800 3,156,192
===============================================================================
SHOPPING CENTERS-3.37%
Equity One, Inc. 42,100 663,075
- -------------------------------------------------------------------------------
Federal Realty Investment Trust 11,400 711,018
- -------------------------------------------------------------------------------
Inland Real Estate Corp. 204,600 1,714,548
- -------------------------------------------------------------------------------
Regency Centers Corp. 28,000 939,400
- -------------------------------------------------------------------------------
Tanger Factory Outlet Centers, Inc. 15,300 575,586
===============================================================================
4,603,627
===============================================================================
SPECIALTY PROPERTIES-1.77%
Digital Realty Trust, Inc. 38,800 1,690,904
- -------------------------------------------------------------------------------
Government Properties Income Trust(b) 33,900 723,087
===============================================================================
2,413,991
===============================================================================
Total Real Estate Investment Trusts, Common
Stocks & Other Equity Interests (Cost
$71,228,442) 81,662,004
===============================================================================
PREFERRED STOCKS-17.03%
APARTMENTS-1.66%
Mid-America Apartment Communities, Inc.- Series H,
8.30% Pfd. 90,600 2,262,282
===============================================================================
DIVERSIFIED-1.52%
Vornado Realty Trust,
Series E, 7.00% Pfd. 47,200 1,044,064
- -------------------------------------------------------------------------------
Series I, 6.63% Pfd. 50,200 1,034,120
===============================================================================
2,078,184
===============================================================================
FREESTANDING-1.21%
National Retail Properties Inc.-Series C, 7.38%
Pfd. 73,450 1,656,298
===============================================================================
HEALTHCARE-1.65%
Health Care REIT, Inc.-Series F, 7.63% Pfd. 11,100 261,072
- -------------------------------------------------------------------------------
Omega Healthcare Investors, Inc.-Series D, 8.38%
Pfd. 82,500 1,984,125
===============================================================================
2,245,197
===============================================================================
INDUSTRIAL-0.03%
ProLogis-Series C, 8.54% Pfd. 950 42,750
===============================================================================
INDUSTRIAL/OFFICE: MIXED-3.57%
PS Business Parks, Inc.,
Series K, 7.95% Pfd. 11,000 255,200
- -------------------------------------------------------------------------------
Series L, 7.60% Pfd. 19,500 443,625
- -------------------------------------------------------------------------------
Series M, 7.20% Pfd. 92,800 2,062,944
- -------------------------------------------------------------------------------
Series O, 7.38% Pfd. 92,200 2,106,770
===============================================================================
4,868,539
===============================================================================
</Table>
See accompanying Notes to Financial Statements which are an integral part of the
financial statements.
9 AIM SELECT REAL ESTATE INCOME FUND
<Table>
<Caption>
SHARES VALUE
- -------------------------------------------------------------------------------
LODGING-RESORTS-0.17%
Eagle Hospitality Properties Trust Inc.-Series A,
8.25% Pfd. 195,800 $ 68,530
- -------------------------------------------------------------------------------
LaSalle Hotel Properties,
Series D, 7.50% Pfd. 1,773 34,130
- -------------------------------------------------------------------------------
Series G, 7.25% Pfd. 6,809 128,009
===============================================================================
230,669
===============================================================================
OFFICE-1.54%
Corporate Office Properties Trust,-Series J, 7.63%
Pfd. 584 13,193
- -------------------------------------------------------------------------------
Kilroy Realty Corp.-Series F, 7.50% Pfd. 88,800 1,799,976
- -------------------------------------------------------------------------------
SL Green Realty Corp.-Series C, 7.63% Pfd. 14,500 295,075
===============================================================================
2,108,244
===============================================================================
REGIONAL MALLS-1.33%
Realty Income Corp.-Series E, 6.75% Pfd. 80,792 1,817,012
===============================================================================
SELF STORAGE FACILITIES-3.18%
Public Storage,
Series I, 7.25% Pfd. 74,000 1,813,000
- -------------------------------------------------------------------------------
Series L, 6.75% Pfd. 44,800 991,424
- -------------------------------------------------------------------------------
Series M, 6.63% Pfd. 70,200 1,528,956
===============================================================================
4,333,380
===============================================================================
SPECIALTY PROPERTIES-1.17%
Digital Realty Trust, Inc.,
Series A, 8.50% Pfd. 34,000 836,740
- -------------------------------------------------------------------------------
Series B, 7.88% Pfd. 32,200 759,598
===============================================================================
1,596,338
===============================================================================
Total Preferred Stocks (Cost $26,927,606) 23,238,893
===============================================================================
<Caption>
PRINCIPAL
AMOUNT
ASSET-BACKED SECURITIES-12.42%
Bear Stearns Commercial Mortgage Securities,
Series 2005-PWR8, Class A4, Pass Through Ctfs.,
4.67%, 06/11/41 $1,696,000 1,645,027
- -------------------------------------------------------------------------------
Series 2005-T18, Class A3, Pass Through Ctfs.,
4.77%, 02/13/42 175,000 173,156
- -------------------------------------------------------------------------------
Series 2005-T18, Class A4, Pass Through Ctfs.,
4.93%, 02/13/42 995,000 951,034
- -------------------------------------------------------------------------------
Series 2005-T18, Class AJ, Pass Through Ctfs.,
5.01%, 02/13/42 350,000 222,406
- -------------------------------------------------------------------------------
Series 2006-PW11, Class A4, Pass Through Ctfs.,
5.62%, 03/11/39 1,940,000 1,825,777
- -------------------------------------------------------------------------------
Series 2006-T22, Class A4, Pass Through Ctfs.,
5.63%, 04/12/38 1,053,000 1,000,953
- -------------------------------------------------------------------------------
Credit Suisse First Boston Mortgage Securities
Corp.,
Series 2003-C3, Class G, Pass Through Ctfs.,
4.62%, 05/15/38(c) 25,000 9,063
- -------------------------------------------------------------------------------
Series 2005-TFLA, Class J, Floating Rate Pass
Through Ctfs., 1.22%, 02/15/20 (Acquired
04/17/09; Cost $118,175)(c)(d) 145,000 129,216
- -------------------------------------------------------------------------------
DLJ Commercial Mortgage Corp.,-Series 1998-CG1,
Class B4, Pass Through Ctfs., 7.46%, 06/10/31(c) 340,000 342,371
- -------------------------------------------------------------------------------
Greenwich Capital Commercial Funding Corp.,-Series
2005-GG3, Class AJ, Pass Through Ctfs., 4.86%,
08/10/42 400,000 262,948
- -------------------------------------------------------------------------------
GS Mortgage Securities Corp. II,,
Series 2005 GG4, Class A4A, Pass Through Ctfs.,
4.75%, 07/10/39 220,000 204,254
- -------------------------------------------------------------------------------
Series 2001-LIBA, Class C, Pass Through Ctfs.,
6.73%, 02/14/16 (Acquired 05/08/09; Cost
$673,682)(c) 627,000 673,147
- -------------------------------------------------------------------------------
JP Morgan Chase Commercial Mortgage Securities
Corp., Series 2005-LDP5, Class AJ, Pass Through
Ctfs., 5.47%, 12/15/44 2,000,000 1,191,976
- -------------------------------------------------------------------------------
LB-UBS Commercial Mortgage Trust,
Series 2002-C7, Class B, Pass Through Ctfs.,
5.08%, 01/15/36 96,000 95,782
- -------------------------------------------------------------------------------
Series 2005-C1, Class A3, Pass Through Ctfs.,
4.55%, 02/15/30 480,000 472,714
- -------------------------------------------------------------------------------
Series 2005-C1, Class A4, Pass Through Ctfs.,
4.74%, 02/15/30 1,680,000 1,602,109
- -------------------------------------------------------------------------------
Series 2005-C3, Class A5, Pass Through Ctfs.,
4.74%, 07/15/30 1,895,000 1,820,423
- -------------------------------------------------------------------------------
Merrill Lynch Mortgage Trust, Series 2004-MKB1,
Class B, Pass Through Ctfs., 5.28%, 02/12/42 25,000 24,201
- -------------------------------------------------------------------------------
Morgan Stanley Capital I,
Series 2005-HQ7, Class A4, Pass Through Ctfs.,
5.38%, 11/14/42 1,540,000 1,491,419
- -------------------------------------------------------------------------------
Series 2005-T19, Class A4A, Pass Through Ctfs.,
4.89%, 06/12/47 1,000,000 957,708
- -------------------------------------------------------------------------------
Series 2005-HQ5, Class A4, Pass Through Ctfs.,
5.17%, 01/14/42 250,000 245,146
- -------------------------------------------------------------------------------
Series 2005-HQ7, Class AJ, Pass Through Ctfs.,
5.38%, 11/14/42 120,000 71,780
- -------------------------------------------------------------------------------
Series 2006-IQ11, Class B, Floating Rate, Pass
Through Ctfs., 5.95%, 10/15/42 270,000 69,274
- -------------------------------------------------------------------------------
Park Square Mortgage Trust,Series 2000-CB50, Class
B1, Pass Through Ctfs., 7.57%, 11/05/33
(Acquired 05/05/09; Cost $540,938)(c) 500,000 533,925
- -------------------------------------------------------------------------------
Wachovia Bank Commercial Mortgage Trust,
Series 2005-C18, Class A4, Pass Through Ctfs.,
4.94%, 04/15/42 275,000 263,689
- -------------------------------------------------------------------------------
Series 2005-C21, Class A4, Pass Through Ctfs.,
5.38%, 10/15/44 447,000 441,442
- -------------------------------------------------------------------------------
Series 2005-C21, Class AM, Pass Through Ctfs.,
5.38%, 10/15/44 275,000 230,488
===============================================================================
Total Asset-Backed Securities (Cost
$16,572,596) 16,951,428
===============================================================================
BONDS & NOTES-4.32%
APARTMENTS-0.31%
Camden Property Trust, Sr. Unsec. Unsub. Notes,
7.63%, 02/15/11 420,000 429,991
===============================================================================
</Table>
See accompanying Notes to Financial Statements which are an integral part of the
financial statements.
10 AIM SELECT REAL ESTATE INCOME FUND
<Table>
<Caption>
PRINCIPAL
AMOUNT VALUE
- -------------------------------------------------------------------------------
HEALTHCARE-1.20%
HCP Inc., Sr. Unsec. Notes, 6.45%, 06/25/12 $ 120,000 $ 122,654
- -------------------------------------------------------------------------------
Health Care REIT Inc., Sr. Unsec. Notes, 8.00%,
09/12/12 500,000 532,524
- -------------------------------------------------------------------------------
Nationwide Health Properties, Inc.,
Sr. Unsec. Notes, 6.50%, 07/15/11 330,000 336,306
- -------------------------------------------------------------------------------
Sr. Unsec. Unsub. Notes, 6.25%, 02/01/13 650,000 645,689
===============================================================================
1,637,173
===============================================================================
INDUSTRIAL/OFFICE: MIXED-1.06%
Liberty Property, L.P.,
Sr. Unsec. Unsub. Global Notes, 6.63%, 10/01/17 750,000 684,964
- -------------------------------------------------------------------------------
Sr. Unsec. Unsub. Notes, 7.25%, 03/15/11 300,000 312,570
- -------------------------------------------------------------------------------
5.65%, 08/15/14 485,000 449,977
===============================================================================
1,447,511
===============================================================================
OFFICE-1.08%
Mack-Cali Realty, Corp., Sr. Unsec., 7.75%,
08/15/19 900,000 914,857
- -------------------------------------------------------------------------------
Mack-Cali Realty, L.P.,
Sr. Unsec. Notes, 5.05%, 04/15/10 78,000 78,410
- -------------------------------------------------------------------------------
7.75%, 02/15/11 450,000 474,576
===============================================================================
1,467,843
===============================================================================
SELF STORAGE-0.12%
Self Storage Shurgard Storage Centers LLC, Sr.
Unsec. Notes, 7.75%, 02/22/11 154,000 160,838
===============================================================================
SHOPPING CENTERS-0.55%
Federal Realty Investment Trust,
Sr. Unsec. Notes, 5.40%, 12/01/13 244,000 242,010
- -------------------------------------------------------------------------------
Sr. Unsec. Unsub. Notes, 6.00%, 07/15/12 497,000 502,349
===============================================================================
744,359
===============================================================================
Total Bonds & Notes (Cost $5,482,134) 5,887,715
===============================================================================
<Caption>
SHARES
MONEY MARKET FUNDS-12.54%
Liquid Assets Portfolio-Institutional Class(e) 8,555,959 8,555,959
- -------------------------------------------------------------------------------
Premier Portfolio-Institutional Class(e) 8,555,959 8,555,959
===============================================================================
Total Money Market Funds (Cost $17,111,918) 17,111,918
===============================================================================
TOTAL INVESTMENTS-106.15% (Cost $137,322,696) 144,851,958
===============================================================================
OTHER ASSETS LESS LIABILITIES-(6.15)% (8,389,122)
===============================================================================
NET ASSETS-100.00% $136,462,836
_______________________________________________________________________________
===============================================================================
</Table>
Investment Abbreviations:
<Table>
Ctfs. - Certificates
Dep - Depositary
Pfd. - Preferred
REIT - Real Estate Investment Trust
Sr. - Senior
Unsec. - Unsecured
Unsub. - Unsubordinated
</Table>
Notes to Schedule of Investments:
(a) Property type classifications used in this report are generally according
to FSTE National Association of Real Estate Investment Trusts ("NAREIT")
Equity REITs Index, which is exclusively owned by NAREIT.
(b) Non-income producing security.
(c) 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 August 31, 2009 was $1,687,722, which represented 1.24% of the Fund's
Net Assets.
(d) Interest or dividend rate is redetermined periodically. Rate shown is the
rate in effect on August 31, 2009.
(e) The money market fund and the Fund are affiliated by having the same
investment advisor.
See accompanying Notes to Financial Statements which are an integral part of the
financial statements.
11 AIM SELECT REAL ESTATE INCOME FUND
STATEMENT OF ASSETS AND LIABILITIES
August 31, 2009
<Table>
ASSETS:
Investments, at value (Cost $120,210,778) $127,740,040
- --------------------------------------------------------------------------------
Investments in affiliated money market funds, at value and cost 17,111,918
================================================================================
Total investments, at value (Cost $137,322,696) 144,851,958
================================================================================
Receivables for:
Fund shares sold 907,211
- --------------------------------------------------------------------------------
Dividends and interest 393,002
- --------------------------------------------------------------------------------
Investment for trustee deferred compensation and retirement plans 17,396
- --------------------------------------------------------------------------------
Other assets 17,796
================================================================================
Total assets 146,187,363
________________________________________________________________________________
================================================================================
LIABILITIES:
Payables for:
Investments purchased 9,291,248
- --------------------------------------------------------------------------------
Fund shares reacquired 219,221
- --------------------------------------------------------------------------------
Amount due custodian 7,687
- --------------------------------------------------------------------------------
Accrued fees to affiliates 73,728
- --------------------------------------------------------------------------------
Accrued other operating expenses 60,413
- --------------------------------------------------------------------------------
Trustee deferred compensation and retirement plans 72,230
================================================================================
Total liabilities 9,724,527
================================================================================
Net assets applicable to shares outstanding $136,462,836
________________________________________________________________________________
================================================================================
NET ASSETS CONSIST OF:
Shares of beneficial interest $178,532,752
- --------------------------------------------------------------------------------
Undistributed net investment income 554,808
- --------------------------------------------------------------------------------
Undistributed net realized gain (loss) (50,153,986)
- --------------------------------------------------------------------------------
Unrealized appreciation 7,529,262
================================================================================
$136,462,836
________________________________________________________________________________
================================================================================
NET ASSETS:
Class A $ 94,979,144
________________________________________________________________________________
================================================================================
Class B $ 679,675
________________________________________________________________________________
================================================================================
Class C $ 4,296,338
________________________________________________________________________________
================================================================================
Class Y $ 2,755,019
________________________________________________________________________________
================================================================================
Institutional Class $ 33,752,660
________________________________________________________________________________
================================================================================
SHARES OUTSTANDING, $0.01 PAR VALUE PER SHARE, UNLIMITED NUMBER OF SHARES
AUTHORIZED:
Class A 14,347,626
________________________________________________________________________________
================================================================================
Class B 102,918
________________________________________________________________________________
================================================================================
Class C 650,620
________________________________________________________________________________
================================================================================
Class Y 417,237
________________________________________________________________________________
================================================================================
Institutional Class 5,102,200
________________________________________________________________________________
================================================================================
Class A:
Net asset value per share $ 6.62
- --------------------------------------------------------------------------------
Maximum offering price per share
(Net asset value of $6.62 divided by 94.50%) $ 7.01
________________________________________________________________________________
================================================================================
Class B:
Net asset value and offering price per share $ 6.60
________________________________________________________________________________
================================================================================
Class C:
Net asset value and offering price per share $ 6.60
________________________________________________________________________________
================================================================================
Class Y:
Net asset value and offering price per share $ 6.60
________________________________________________________________________________
================================================================================
Institutional Class:
Net asset value and offering price per share $ 6.62
________________________________________________________________________________
================================================================================
</Table>
See accompanying Notes to Financial Statements which are an integral part of the
financial statements.
12 AIM SELECT REAL ESTATE INCOME FUND
STATEMENT OF OPERATIONS
For the year ended August 31, 2009
<Table>
INVESTMENT INCOME:
Dividends $ 4,398,133
- ------------------------------------------------------------------------------------------------
Dividends from affiliated money market funds (includes securities lending income
of $126,568) 165,627
- ------------------------------------------------------------------------------------------------
Interest 887,884
================================================================================================
Total investment income 5,451,644
================================================================================================
EXPENSES:
Advisory fees 623,818
- ------------------------------------------------------------------------------------------------
Administrative services fees 50,000
- ------------------------------------------------------------------------------------------------
Custodian fees 13,576
- ------------------------------------------------------------------------------------------------
Distribution fees:
Class A 176,219
- ------------------------------------------------------------------------------------------------
Class B 5,871
- ------------------------------------------------------------------------------------------------
Class C 17,243
- ------------------------------------------------------------------------------------------------
Transfer agent fees -- A, B, C and Y 304,006
- ------------------------------------------------------------------------------------------------
Transfer agent fees -- Institutional 3,783
- ------------------------------------------------------------------------------------------------
Trustees' and officers' fees and benefits 19,921
- ------------------------------------------------------------------------------------------------
Other 186,847
================================================================================================
Total expenses 1,401,284
================================================================================================
Less: Fees waived, expenses reimbursed and expense offset arrangement(s) (7,076)
================================================================================================
Net expenses 1,394,208
================================================================================================
Net investment income 4,057,436
================================================================================================
REALIZED AND UNREALIZED GAIN (LOSS) FROM:
Net realized gain (loss) from investment securities (41,566,429)
================================================================================================
Change in net unrealized appreciation of investment securities 18,227,028
================================================================================================
Net realized and unrealized gain (loss) (23,339,401)
================================================================================================
Net increase (decrease) in net assets resulting from operations $(19,281,965)
________________________________________________________________________________________________
================================================================================================
</Table>
See accompanying Notes to Financial Statements which are an integral part of the
financial statements.
13 AIM SELECT REAL ESTATE INCOME FUND
STATEMENT OF CHANGES IN NET ASSETS
For the years ended August 31, 2009 and 2008
<Table>
<Caption>
2009 2008
- --------------------------------------------------------------------------------------------------------
OPERATIONS:
Net investment income $ 4,057,436 $ 5,992,308
- --------------------------------------------------------------------------------------------------------
Net realized gain (loss) (41,566,429) (2,427,114)
- --------------------------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) 18,227,028 (19,290,644)
========================================================================================================
Net increase (decrease) in net assets resulting from operations (19,281,965) (15,725,450)
========================================================================================================
DISTRIBUTIONS TO SHAREHOLDERS FROM NET INVESTMENT INCOME:
Class A (3,432,938) (8,565,347)
- --------------------------------------------------------------------------------------------------------
Class B (25,447) (19,825)
- --------------------------------------------------------------------------------------------------------
Class C (56,307) (32,369)
- --------------------------------------------------------------------------------------------------------
Class Y (20,142) --
- --------------------------------------------------------------------------------------------------------
Institutional Class (471,968) (166,047)
========================================================================================================
Total distributions from net investment income (4,006,802) (8,783,588)
========================================================================================================
DISTRIBUTIONS TO SHAREHOLDERS FROM NET REALIZED GAINS:
Class A -- (76,417,808)
- --------------------------------------------------------------------------------------------------------
Class B -- (83,959)
- --------------------------------------------------------------------------------------------------------
Class C -- (140,190)
- --------------------------------------------------------------------------------------------------------
Institutional Class -- (3,700)
========================================================================================================
Total distributions from net realized gains -- (76,645,657)
========================================================================================================
SHARE TRANSACTIONS-NET:
Class A 4,766,853 (13,067,864)
- --------------------------------------------------------------------------------------------------------
Class B (193,923) 1,152,702
- --------------------------------------------------------------------------------------------------------
Class C 2,443,803 1,875,071
- --------------------------------------------------------------------------------------------------------
Class Y 2,356,933 --
- --------------------------------------------------------------------------------------------------------
Institutional Class 23,093,975 13,951,263
========================================================================================================
Net increase in net assets resulting from share transactions 32,467,641 3,911,172
========================================================================================================
Net increase (decrease) in net assets 9,178,874 (97,243,523)
========================================================================================================
NET ASSETS:
Beginning of year 127,283,962 224,527,485
========================================================================================================
End of year (includes undistributed net investment income of $554,808
and $497,244, respectively) $136,462,836 $127,283,962
________________________________________________________________________________________________________
========================================================================================================
</Table>
NOTES TO FINANCIAL STATEMENTS
August 31, 2009
NOTE 1--SIGNIFICANT ACCOUNTING POLICIES
AIM Select Real Estate Income Fund (the "Fund") is a series portfolio of AIM
Counselor Series Trust (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 seven
separate portfolios, each authorized to issue an unlimited number of shares of
beneficial interest.
Prior to March 12, 2007, the Fund operated as AIM Select Real Estate Income
Fund (the "Closed-End Fund"). The Closed-End Fund was reorganized as an open-end
fund at which time the Fund became a new series portfolio of the Trust. The
Closed-End Fund was reorganized as an open-end fund on March 12, 2007 (the
"Reorganization Date") through the transfer of all its assets and liabilities to
the Fund (the "Reorganization"). Prior to the Reorganization, the Closed-End
Fund redeemed Preferred Shares in their entirety. As part of the Reorganization,
the Closed-End Fund was restructured from a sole series of AIM Select Real
Estate Income Fund to a new series portfolio of the Trust. Upon the closing of
the Reorganization, holders of the Closed-End Fund Common Shares received Class
A shares of the Fund. Information for the Common Shares of the Closed-End Fund,
prior to the Reorganization is included with Class A shares throughout this
report.
14 AIM SELECT REAL ESTATE INCOME FUND
The Fund's investment objectives are high current income and secondarily,
capital appreciation.
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 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.
A security listed or traded on an exchange (except convertible bonds) is
valued at its last sales price or official closing price as of the close
of the customary trading session on the exchange where the security is
principally traded, or lacking any sales or official closing price on a
particular day, the security may be valued at the closing bid price on
that day. Securities traded in the over-the-counter market are valued
based on prices furnished by independent pricing services or market
makers. When such securities are valued by an independent pricing service
they may be considered fair valued. Futures contracts are valued at the
final settlement price set by an exchange on which they are principally
traded. Listed options are valued at the mean between the last bid and ask
prices from the exchange on which they are principally traded. Options not
listed on an exchange are valued by an independent source at the mean
between the last bid and ask prices. For purposes of determining net asset
value per share, futures and option contracts generally are valued 15
minutes after the close of the customary trading session of the New York
Stock Exchange ("NYSE").
Investments in open-end and closed-end registered investment companies
that do not trade on an exchange are valued at the end of day net asset
value per share. Investments in open-end and closed-end registered
investment companies that trade on an exchange are valued at the last
sales price or official closing price as of the close of the customary
trading session on the exchange where the security is principally traded.
Debt obligations (including convertible bonds) and unlisted equities are
fair valued using an evaluated quote provided by an independent pricing
service. 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, developments related to specific securities, dividend rate,
yield, quality, type of issue, coupon rate, maturity, 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. 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/or principal payments.
Foreign securities (including foreign exchange contracts) are converted
into U.S. dollar amounts using the applicable exchange rates as of the
close of the NYSE. If market quotations are available and reliable for
foreign exchange traded equity securities, the securities will be valued
at the market quotations. Because trading hours for certain foreign
securities end before the close of the NYSE, closing market quotations may
become unreliable. If between the time trading ends on a particular
security and the close of the customary trading session on the NYSE,
events occur that are significant and make the closing price unreliable,
the Fund may fair value the security. If the event is likely to have
affected the closing price of the security, the security will be valued at
fair value in good faith using procedures approved by the Board of
Trustees. Adjustments to closing prices to reflect fair value may also be
based on a screening process of an independent pricing service to indicate
the degree of certainty, based on historical data, that the closing price
in the principal market where a foreign security trades is not the current
value as of the close of the NYSE. Foreign securities meeting the approved
degree of certainty that the price is not reflective of current value will
be priced at the indication of fair value from the independent pricing
service. Multiple factors may be considered by the independent pricing
service in determining adjustments to reflect fair value and may include
information relating to sector indices, American Depositary Receipts and
domestic and foreign index futures. Foreign securities may have additional
risks including exchange rate changes, potential for sharply devalued
currencies and high inflation, political and economical upheaval, the
relative lack of issuer information, relatively low market liquidity and
the potential lack of strict financial and accounting controls and
standards.
Securities for which market prices are not provided by any of the above
methods may be valued based upon quotes furnished by independent sources.
The last bid price may be used to value equity securities and Corporate
Loans. The mean between the last bid and asked prices may be used to value
debt obligations other than Corporate Loans.
Securities for which market quotations 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. Issuer specific events, market trends,
bid/ask quotes of brokers and information providers and other market data
may be reviewed in the course of making a good faith determination of a
security's fair value.
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. Paydown gains and losses on mortgage and asset-backed securities are
recorded as adjustments to interest income. 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
15 AIM SELECT REAL ESTATE INCOME FUND
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 recharacterizes distributions received from REIT investments
based on information provided by the REIT into the following categories:
ordinary income, long-term and short-term capital gains, and return of
capital. If information is not available timely from the REIT, the
recharacterization will be based on available information which may
include the previous year's allocation. If new or additional information
becomes available from the REIT at a later date, a recharacterization will
be made in the following year. The Fund records as dividend income the
amount recharacterized as ordinary income and as realized gain the amount
recharacterized as capital gain in the Statement of Operations, and the
amount recharacterized as return of capital in the Statement of Changes in
Net Assets. These recharacterizations are reflected in the accompanying
financial statements.
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 and paid quarterly
and are recorded on ex-dividend date. 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 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.
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. In addition, the Fund monitors for material events or
transactions that may occur or become known after the period end date and
before the date the financial statements are released to print, which is
generally 45 days from the period end date.
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's investments are concentrated in a comparatively
narrow segment of the economy. Consequently, the Fund may tend to be more
volatile than other mutual funds, and the value of the Fund's investments
may tend to rise and fall more rapidly.
The Fund concentrates its assets in the real estate industry, an
investment in the fund will be closely linked to the performance of the
real estate markets. Property values may fall due to increasing vacancies
or declining rents resulting from economic, legal, cultural or
technological developments.
J. SECURITIES LENDING -- The Fund may lend portfolio securities having a
market value up to one-third of the Fund's total assets. Such loans are
secured by collateral equal to no less than the market value of the loaned
securities determined daily by the securities lending provider. Such
collateral will be cash or debt securities issued or guaranteed by the
U.S. Government or any of its sponsored agencies. Cash collateral received
in connection with these loans is invested in short-term money market
instruments or affiliated money market funds and is shown as such on the
Schedule of Investments. It is the Fund's policy to obtain additional
collateral from or return excess collateral to the borrower by the end of
the next business day, following the valuation date of the securities
loaned. Therefore, the value of the collateral held may be temporarily
less than the value of the securities on loan. Lending securities entails
a risk of loss to the Fund if and to the extent that the market value of
the securities loaned were to increase and the borrower did not increase
the collateral accordingly, and the borrower fails to return the
securities. Upon the failure of the borrower to return the securities,
collateral may be liquidated and the securities may be purchased on the
open market to replace the loaned securities. The Fund could experience
delays and costs in gaining access to the collateral. The Fund bears the
risk of any deficiency in the amount of the collateral available for
return to the borrower due to any loss on the collateral invested.
Dividends received on cash collateral investments for securities lending
transactions, which are net of compensation to counterparties, is included
in Dividends from affiliates on the Statement of Operations. The aggregate
value of securities out on loan is shown as a footnote on the Statement of
Assets and Liabilities, if any.
16 AIM SELECT REAL ESTATE INCOME FUND
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 $250 million 0.75%
- -------------------------------------------------------------------
Next $250 million 0.74%
- -------------------------------------------------------------------
Next $500 million 0.73%
- -------------------------------------------------------------------
Next $1.5 billion 0.72%
- -------------------------------------------------------------------
Next $2.5 billion 0.71%
- -------------------------------------------------------------------
Next $2.5 billion 0.70%
- -------------------------------------------------------------------
Next $2.5 billion 0.69%
- -------------------------------------------------------------------
Over $10 billion 0.68%
___________________________________________________________________
===================================================================
</Table>
Under the terms of a master sub-advisory agreement approved by shareholders of
the Fund between 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 July 1, 2009, the Advisor has contractually 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 2.00%, 2.75%, 2.75%, 1.75%
and 1.75% of average daily net assets, respectively, through at least June 30,
2010. 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 or non-routine items; (v) expenses related to a merger or
reorganization, as approved by the Fund's Board of Trustees; (vi) expenses of
the underlying funds that are paid indirectly as a result of share ownership of
the underlying funds; and (vii) 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. Those credits are used to pay certain expenses incurred by the Fund. The
Advisor did not waive fees and/or reimburse expenses during the period under
this expense limitation.
Further, the Advisor has contractually agreed, through at least June 30, 2010,
to waive the advisory fee payable by the Fund in an amount equal to 100% of the
net advisory fees the Advisor receives from the affiliated money market funds on
investments by the Fund of uninvested cash (excluding investments of cash
collateral from securities lending) in such affiliated money market funds.
For the year ended August 31, 2009, the Advisor waived advisory fees of
$3,912.
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
August 31, 2009, Invesco reimbursed expenses of the Fund in the amount of $314.
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 August 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 August 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 August 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
17 AIM SELECT REAL ESTATE INCOME FUND
to the shareholder. During the year ended August 31, 2009, IADI advised the Fund
that IADI retained $18,147 in front-end sales commissions from the sale of Class
A shares and $37, $786 and $2,122 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--ADDITIONAL VALUATION INFORMATION
Generally Accepted Accounting Principles (GAAP) 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 under
current market conditions. GAAP 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.
The following is a summary of the tiered valuation input levels, as of the end
of the reporting period, August 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>
LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
- ---------------------------------------------------------------------------------------------------------------------------
Equity Securities $122,012,815 $ -- $-- $122,012,815
- ---------------------------------------------------------------------------------------------------------------------------
Corporate Debt Securities -- 5,887,715 -- 5,887,715
- ---------------------------------------------------------------------------------------------------------------------------
Asset-Backed Securities -- 16,951,428 -- 16,951,428
===========================================================================================================================
Total Investments $122,012,815 $22,839,143 $-- $144,851,958
___________________________________________________________________________________________________________________________
===========================================================================================================================
</Table>
NOTE 4--EXPENSE OFFSET ARRANGEMENT(S)
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 August 31, 2009, the
Fund received credits from this arrangement, which resulted in the reduction of
the Fund's total expenses of $2,850.
NOTE 5--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 August 31, 2009, the Fund paid legal fees of $3,349 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 6--CASH BALANCES
The Fund is permitted to temporarily carry a negative or overdrawn balance in
its account with The State Street Bank and Trust Company, 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.
18 AIM SELECT REAL ESTATE INCOME FUND
NOTE 7--DISTRIBUTIONS TO SHAREHOLDERS AND TAX COMPONENTS OF NET ASSETS
TAX CHARACTER OF DISTRIBUTIONS TO SHAREHOLDERS PAID DURING THE YEARS ENDED
AUGUST 31, 2009 AND 2008:
<Table>
<Caption>
2009 2008
- -------------------------------------------------------------------------------------------------------
Ordinary income $4,006,802 $10,440,892
- -------------------------------------------------------------------------------------------------------
Long-term capital gain -- 74,988,353
=======================================================================================================
Total distributions $4,006,802 $85,429,245
_______________________________________________________________________________________________________
=======================================================================================================
</Table>
TAX COMPONENTS OF NET ASSETS AT PERIOD-END:
<Table>
<Caption>
2009
- ------------------------------------------------------------------------------------------------
Undistributed ordinary income $ 629,919
- ------------------------------------------------------------------------------------------------
Net unrealized appreciation -- investments 4,637,036
- ------------------------------------------------------------------------------------------------
Temporary book/tax differences (75,111)
- ------------------------------------------------------------------------------------------------
Post-October deferrals (28,230,072)
- ------------------------------------------------------------------------------------------------
Capital loss carryforward (19,031,688)
- ------------------------------------------------------------------------------------------------
Shares of beneficial interest 178,532,752
================================================================================================
Total net assets $136,462,836
________________________________________________________________________________________________
================================================================================================
</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 difference is attributable primarily to wash sales.
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 August 31, 2009 which expires
as follows:
<Table>
<Caption>
CAPITAL LOSS
EXPIRATION CARRYFORWARD*
- -----------------------------------------------------------------------------------------------
August 31, 2017 19,031,688
_______________________________________________________________________________________________
===============================================================================================
</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 8--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 August 31, 2009 was $78,465,685 and $49,948,874,
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 $10,736,374
- -----------------------------------------------------------------------------------------------
Aggregate unrealized (depreciation) of investment securities (6,099,338)
===============================================================================================
Net unrealized appreciation of investment securities $ 4,637,036
_______________________________________________________________________________________________
===============================================================================================
Cost of investments for tax purposes is $140,214,922.
</Table>
NOTE 9--RECLASSIFICATION OF PERMANENT DIFFERENCES
Primarily as a result of differing book/tax treatment of proxy costs, on August
31, 2009, undistributed net investment income was increased by $6,930 and shares
of beneficial interest decreased by $6,930. This reclassification had no effect
on the net assets of the Fund.
19 AIM SELECT REAL ESTATE INCOME FUND
NOTE 10--SHARE INFORMATION
<Table>
<Caption>
SUMMARY OF SHARE ACTIVITY
- ------------------------------------------------------------------------------------------------------------------------
YEAR ENDED AUGUST 31,
-----------------------------------------------------------
2009(a) 2008
--------------------------- ---------------------------
SHARES AMOUNT SHARES AMOUNT
- ------------------------------------------------------------------------------------------------------------------------
Sold:
Class A 6,297,362 $ 34,744,449 1,839,980 $ 16,558,591
- ------------------------------------------------------------------------------------------------------------------------
Class B 57,532 329,420 159,313 1,442,997
- ------------------------------------------------------------------------------------------------------------------------
Class C 560,262 3,230,335 246,055 2,240,917
- ------------------------------------------------------------------------------------------------------------------------
Class Y(b) 1,186,116 6,557,609 -- --
- ------------------------------------------------------------------------------------------------------------------------
Institutional Class 3,944,022 25,122,675 1,546,029 14,211,127
========================================================================================================================
Issued as reinvestment of dividends:
Class A 377,291 2,179,083 4,159,275 37,122,833
- ------------------------------------------------------------------------------------------------------------------------
Class B 4,076 23,964 11,708 103,040
- ------------------------------------------------------------------------------------------------------------------------
Class C 8,753 49,216 16,374 144,890
- ------------------------------------------------------------------------------------------------------------------------
Class Y 2,841 13,740 -- --
- ------------------------------------------------------------------------------------------------------------------------
Institutional Class 82,199 471,968 19,351 169,747
========================================================================================================================
Automatic conversion of Class B shares to Class A shares:
Class A 3,793 21,265 6,502 54,878
- ------------------------------------------------------------------------------------------------------------------------
Class B (3,803) (21,265) (6,516) (54,878)
========================================================================================================================
Reacquired:
Class A(b) (5,633,762) (32,177,944) (6,467,883) (66,804,166)
- ------------------------------------------------------------------------------------------------------------------------
Class B (89,390) (526,042) (40,000) (338,457)
- ------------------------------------------------------------------------------------------------------------------------
Class C (149,028) (835,748) (53,711) (510,736)
- ------------------------------------------------------------------------------------------------------------------------
Class Y (771,720) (4,214,416) -- --
- ------------------------------------------------------------------------------------------------------------------------
Institutional Class (437,953) (2,500,668) (52,039) (429,611)
========================================================================================================================
Net increase in share activity 5,438,591 $ 32,467,641 1,384,438 $ 3,911,172
________________________________________________________________________________________________________________________
========================================================================================================================
</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 45% 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.
In addition, 9% of the outstanding shares of the Fund are owned by
affiliated mutual funds. Affiliated mutual funds are other mutual funds
that are also advised by Invesco Aim.
(b) Effective upon the commencement date of Class Y shares, October 3, 2008,
the following shares were converted from Class A into Class Y shares of the
Fund:
<Table>
<Caption>
CLASS SHARES AMOUNT
-------------------------------------------------------------------------------------------------
Class Y 6,791 $ 48,556
-------------------------------------------------------------------------------------------------
Class A (6,791) (48,556)
_________________________________________________________________________________________________
=================================================================================================
</Table>
20 AIM SELECT REAL ESTATE INCOME FUND
NOTE 11--FINANCIAL HIGHLIGHTS
The following schedules present financial highlights for a share of the Fund
outstanding throughout the periods indicated. Information presented prior to
March 12, 2007 includes financial data for the common shares of the Closed-End
Fund.
<Table>
<Caption>
CLASS A*
----------------------------------------------------------------------------------
YEAR ENDED
AUGUST 31, EIGHT MONTHS ENDED YEAR ENDED DECEMBER 31,
-------------------- AUGUST 31, ----------------------------------
2009 2008 2007 2006 2005 2004
- -------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 8.38 $ 16.27 $ 17.35 $ 17.49 $ 20.02 $ 17.83
- -------------------------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income 0.27(a) 0.42(a) 0.44(a) 0.86 0.90 0.85
- -------------------------------------------------------------------------------------------------------------------------------
Net gains (losses) on securities (both
realized and unrealized) (1.75) (1.54) (1.54) 3.88 (0.36) 3.16
- -------------------------------------------------------------------------------------------------------------------------------
Less distributions to auction rate
preferred shareholders of Closed-End
Fund from net investment income(b) N/A N/A N/A (0.20) (0.17) (0.08)
===============================================================================================================================
Total from investment operations (1.48) (1.12) (1.10) 4.54 0.37 3.93
===============================================================================================================================
Less distributions:
Dividends from net investment income (0.28) (0.65) (0.38) (0.89) (1.24) (1.24)
- -------------------------------------------------------------------------------------------------------------------------------
Distributions from net realized gains -- (6.18) (0.09) (3.84) (1.66) (0.50)
===============================================================================================================================
Total distributions (0.28) (6.83) (0.47) (4.73) (2.90) (1.74)
===============================================================================================================================
Increase from common shares of Closed-End
Fund repurchased N/A N/A -- 0.05 -- --
- -------------------------------------------------------------------------------------------------------------------------------
Redemption fees added to shares of
beneficial interest -- 0.06 0.49 N/A N/A N/A
===============================================================================================================================
Net asset value, end of period $ 6.62 $ 8.38 $ 16.27 $ 17.35 $ 17.49 20.02
_______________________________________________________________________________________________________________________________
===============================================================================================================================
Market value per common share of Closed-
End Fund at period-end $ N/A $ N/A $ N/A $ 16.67 $ 14.98 17.50
===============================================================================================================================
Total return at net asset value (17.12)%(c) (7.47)%(c)(d) (3.59)%(c)(d) 29.15%(e) 4.44%(e) 24.43%(e)
===============================================================================================================================
Market value return N/A N/A N/A 44.88% 2.33% 16.89%
_______________________________________________________________________________________________________________________________
===============================================================================================================================
Ratios/supplemental data:
Net assets, end of period (000s omitted) $94,979 $111,529 $224,000 $678,394 $698,380 $799,358
_______________________________________________________________________________________________________________________________
===============================================================================================================================
Ratio of expenses to average net assets:
With fee waivers and/or expense
reimbursements 1.73%(f) 1.32% 1.08%(g) 0.96%(h) 0.95%(h) 0.93%(h)
- -------------------------------------------------------------------------------------------------------------------------------
Without fee waivers and/or expense
reimbursements 1.74%(f) 1.33% 1.23%(g) 1.33%(h) 1.33%(h) 1.32%(h)
===============================================================================================================================
Ratio of net investment income to average
net assets 4.83%(f) 3.91% 3.82%(g) 4.59%(h) 4.70%(h) 4.64%(h)
===============================================================================================================================
Ratio of distributions to auction rate
preferred shareholders of Closed-End
Fund to average net attributable to
common shares of Closed-End Fund N/A N/A N/A 1.30%(g) 0.86% 0.42%
_______________________________________________________________________________________________________________________________
===============================================================================================================================
Portfolio turnover rate(i) 59% 73% 24% 23% 17% 19%
_______________________________________________________________________________________________________________________________
===============================================================================================================================
Auction rate preferred shares of Closed-
End Fund:
Liquidation value, end of period (000s
omitted) N/A N/A N/A -- $205,000 $205,000
===============================================================================================================================
Total shares outstanding N/A N/A N/A -- 8,200 8,200
===============================================================================================================================
Asset coverage per share N/A N/A N/A -- $110,168 $122,483
===============================================================================================================================
Liquidation and market value per share N/A N/A N/A -- $ 25,000 $ 25,000
_______________________________________________________________________________________________________________________________
===============================================================================================================================
</Table>
* Prior to March 12, 2007 the Fund operated as a Closed-End Fund. On such
date, holders of common shares of Closed-End Fund received Class A shares
of the Fund equal to the number of Closed-End Fund common shares they owned
prior to the Reorganization.
(a) Calculated using average shares outstanding.
(b) Based on average number of common shares outstanding of Closed-End Fund.
(c) 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.
(d) Includes the impact of the temporary 2% redemption fee which was effective
March 12, 2007 through March 11, 2008.
(e) Net asset value return includes adjustments in accordance with accounting
principles generally accepted in the United States of America and measures
the changes in common shares' value of Closed-End over the period
indicated, taking into account dividends as reinvested. Market value return
is computed based upon the New York Stock Exchange market price of the
Closed-End Fund's common shares and excludes the effects of brokerage
commissions. Dividends and distributions, if any, are assumed for purposes
of this calculation, to be reinvested at prices obtained under the Closed-
End Fund's dividend reinvestment plan.
(f) Ratios are based on average daily net assets (000s omitted) of $70,488.
(g) Annualized.
(h) Ratios do not reflect the effect of dividend payments to auction rate
preferred shareholders; income ratios reflect income earned on investments
made with assets attributable to auction rate preferred shares of Closed-
End Fund.
(i) Portfolio turnover is calculated at the fund level and is not annualized
for periods less than one year, if applicable.
21 AIM SELECT REAL ESTATE INCOME FUND
NOTE 11--FINANCIAL HIGHLIGHTS--(CONTINUED)
<Table>
<Caption>
NET GAINS
(LOSSES)
NET ASSET ON SECURITIES DIVIDENDS DISTRIBUTIONS
VALUE, NET (BOTH TOTAL FROM FROM NET FROM NET NET ASSET
BEGINNING INVESTMENT REALIZED AND INVESTMENT INVESTMENT REALIZED TOTAL VALUE, END
OF PERIOD INCOME(a) UNREALIZED) OPERATIONS INCOME GAINS DISTRIBUTIONS OF PERIOD
- ---------------------------------------------------------------------------------------------------------------------------------
CLASS B
Year ended 08/31/09 $ 8.37 $0.23 $(1.77) $(1.54) $(0.23) $ -- $(0.23) $ 6.60
Year ended 08/31/08 16.23 0.28 (1.40)(e) (1.12) (0.56) (6.18) (6.74) 8.37
Year ended 08/31/07(f) 17.34 0.22 (1.09)(e) (0.87) (0.24) -- (0.24) 16.23
- ---------------------------------------------------------------------------------------------------------------------------------
CLASS C
Year ended 08/31/09 8.38 0.23 (1.78) (1.55) (0.23) -- (0.23) 6.60
Year ended 08/31/08 16.23 0.29 (1.40)(e) (1.11) (0.56) (6.18) (6.74) 8.38
Year ended 08/31/07(f) 17.34 0.22 (1.09)(e) (0.87) (0.24) -- (0.24) 16.23
- ---------------------------------------------------------------------------------------------------------------------------------
CLASS Y
Year ended 08/31/09(f) 7.15 0.26 (0.63) (0.37) (0.18) -- (0.18) 6.60
- ---------------------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL CLASS
Year ended 08/31/09 8.39 0.31 (1.77) (1.46) (0.31) -- (0.31) 6.62
Year ended 08/31/08 16.27 0.37 (1.37)(e) (1.00) (0.70) (6.18) (6.88) 8.39
Year ended 08/31/07(f) 17.34 0.32 (1.09)(e) (0.77) (0.30) -- (0.30) 16.27
_________________________________________________________________________________________________________________________________
=================================================================================================================================
<Caption>
RATIO OF RATIO OF
EXPENSES EXPENSES
TO AVERAGE TO AVERAGE NET RATIO OF NET
NET ASSETS ASSETS WITHOUT INVESTMENT
NET ASSETS, WITH FEE WAIVERS FEE WAIVERS INCOME
TOTAL END OF PERIOD AND/OR EXPENSES AND/OR EXPENSES TO AVERAGE PORTFOLIO
RETURN(b) (000S OMITTED) ABSORBED ABSORBED NET ASSETS TURNOVER(c)
- ------------------------------------------------------------------------------------------------------------------
CLASS B
Year ended 08/31/09 (17.91)% $ 680 2.48%(d) 2.49%(d) 4.08%(d) 59%
Year ended 08/31/08 (8.01) 1,126 2.07 2.08 3.16 73
Year ended 08/31/07(f) (5.10) 162 2.04(g) 2.04(g) 2.86(g) 24
- ------------------------------------------------------------------------------------------------------------------
CLASS C
Year ended 08/31/09 (18.00) 4,296 2.48(d) 2.49(d) 4.08(d) 59
Year ended 08/31/08 (7.90) 1,932 2.07 2.08 3.16 73
Year ended 08/31/07(f) (5.10) 356 2.04(g) 2.04(g) 2.86(g) 24
- ------------------------------------------------------------------------------------------------------------------
CLASS Y
Year ended 08/31/09(f) (4.23) 2,755 1.53(d)(g) 1.53(d)(g) 5.03(d)(g) 59
- ------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL CLASS
Year ended 08/31/09 (16.75) 33,753 1.11(d) 1.12(d) 5.45(d) 59
Year ended 08/31/08 (6.91) 12,696 0.88 0.89 4.35 73
Year ended 08/31/07(f) (4.53) 10 0.89(g) 0.89(g) 4.01(g) 24
__________________________________________________________________________________________________________________
==================================================================================================================
</Table>
(a) Calculated using average shares outstanding.
(b) 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.
(c) Portfolio turnover is calculated at the fund level and is not annualized
for periods less than one year, if applicable.
(d) Ratios are based on average daily net assets (000's omitted) of $587,
$1,724, $869 and $9,591 for Class B, Class C, Class Y and Institutional
Class shares, respectively.
(e) Includes the impact of the temporary 2% redemption fee which was effective
March 12, 2007 through March 11, 2008. Redemption fees added to shares of
beneficial interest for Class B, Class C and Institutional Class shares
were $0.05, $0.05 and $0.04 per share and $0.47, $0.47 and $0.48 per share
for the year ended August 31, 2008 and the eight months ended August 31,
2007, respectively.
(f) Commencement date of March 9, 2007 for Class B, Class C and Institutional
Class shares and October 3, 2008 for Class Y shares.
(g) Annualized.
22 AIM SELECT REAL ESTATE INCOME FUND
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Trustees and Shareholders of
AIM Select Real Estate Income 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 Select Real Estate Income Fund
(one of the funds constituting AIM Counselor Series Trust, hereafter referred to
as the "Fund") at August 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 periods
indicated, 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 August
31, 2009 by correspondence with the custodian and brokers, provide a reasonable
basis for our opinion.
PRICEWATERHOUSECOOPERS LLP
October 16, 2009
Houston, Texas
23 AIM SELECT REAL ESTATE INCOME 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. The
example is based on an investment of $1,000 invested at the beginning of the
period and held for the entire period March 1, 2009 through August 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 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 (03/01/09) (08/31/09)(1) PERIOD(2) (08/31/09) PERIOD(2) RATIO
- ---------------------------------------------------------------------------------------------------
A $1,000.00 $1,534.90 $11.12 $1,016.43 $ 8.84 1.74%
- ---------------------------------------------------------------------------------------------------
B 1,000.00 1,528.00 15.87 1,012.65 12.63 2.49
- ---------------------------------------------------------------------------------------------------
C 1,000.00 1,528.00 15.87 1,012.65 12.63 2.49
- ---------------------------------------------------------------------------------------------------
Y 1,000.00 1,535.70 9.52 1,017.69 7.58 1.49
- ---------------------------------------------------------------------------------------------------
</Table>
(1) The actual ending account value is based on the actual total return of the
Fund for the period March 1, 2009 through August 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
184/365 to reflect the most recent fiscal half year.
24 AIM SELECT REAL ESTATE INCOME FUND
Supplement to Annual Report dated 8/31/09
AIM SELECT REAL ESTATE INCOME FUND
<Table>
INSTITUTIONAL CLASS SHARES ------------------------------------------ the most recent Fund prospectus as of the
AVERAGE ANNUAL TOTAL RETURNS date of this supplement for Institutional
The following information has been For periods ended 8/31/09 Class shares was 0.91%. The expense ratios
prepared to provide Institutional Class presented above may vary from the expense
shareholders with a performance overview Inception 8.14% ratios presented in other sections of the
specific to their holdings. Institutional ------------------------------------------ actual report that are based on expenses
Class shares are offered exclusively to 5 Years 2.62 incurred during the period covered by the
institutional investors, including defined ------------------------------------------ report.
contribution plans that meet certain 1 Year -16.68
criteria. ------------------------------------------ Fund performance was positively
impacted by a temporary 2% fee on
------------------------------------------ redemptions that was in effect from March
AVERAGE ANNUAL TOTAL RETURNS 12, 2007 to March 12, 2008. Without income
For periods ended 6/30/09, the most recent from this temporary fee, returns would
calendar quarter-end have been lower.
Inception 5.62% Had the advisor not waived fees and/or
------------------------------------------ reimbursed expenses in the past,
5 Years 0.50 performance would have been lower.
------------------------------------------
1 Year -30.99 Please note that past performance is
------------------------------------------ not indicative of future results. More
recent returns may be more or less than
Institutional Class shares' inception date those shown. All returns assume
is March 9, 2007. Returns since that date reinvestment of distributions at NAV.
are historical returns. All other returns Investment return and principal value will
are blended returns of historical fluctuate so your shares, when redeemed,
Institutional Class share performance and may be worth more or less than their
restated Class A share performance (for original cost. See full report for
periods prior to the inception date of information on comparative benchmarks.
Institutional Class shares) at net asset Please consult your Fund prospectus for
value (NAV) and reflect the Rule 12b-1 more information. For the most current
fees applicable to Class A shares. Class A month-end performance, please call
shares' inception date is May 31, 2002. 800 451 4246 or visit invescoaim.com.
Institutional Class shares have no (1) Total annual operating expenses less
sales charge; therefore, performance is at any contractual fee waivers and/or
NAV. Performance of Institutional Class expense reimbursements by the advisor
shares will differ from performance of in effect through at least June 30,
other share classes primarily due to 2010. See current prospectus for more
differing sales charges and class information.
expenses.
The net 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 0.90%.(1) The total annual Fund
operating expense ratio set forth in
- ------------------------------------------
NASDAQ SYMBOL ASRIX
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 -- NOT FOR USE WITH THE PUBLIC THIS MATERIAL IS FOR
INSTITUTIONAL INVESTOR USE ONLY AND MAY NOT BE QUOTED, REPRODUCED, SHOWN TO THE PUBLIC [INVESCO AIM LOGO]
OR USED IN WRITTEN FORM AS SALES LITERATURE FOR PUBLIC USE. - service mark -
invescoaim.com SREI-INS-1 Invesco Aim Distributors, Inc.
</Table>
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 March 1, 2009 through August 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 (03/01/09) (08/31/09)(1) PERIOD(2) (08/31/09) PERIOD(2) RATIO
- -----------------------------------------------------------------------------------------------------------
Institutional $1,000.00 $1,537.30 $7.10 $1,019.61 $5.65 1.11%
- -----------------------------------------------------------------------------------------------------------
</Table>
(1) The actual ending account value is based on the actual total return of the
Fund for the period March 1, 2009 through August 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
184/365 to reflect the most recent fiscal half year.
AIM SELECT REAL ESTATE INCOME FUND
<Table>
- ------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS
The Board of Trustees (the Board) of AIM strategies and limitations of these funds. the year as part of their ongoing
Counselor Series Trust is required under oversight of the Fund, and did not
the Investment Company Act of 1940 to In addition to their meetings identify any particular factor that was
approve annually the renewal of the AIM throughout the year, the Sub-Committees controlling. Each Trustee may have
Select Real Estate Income Fund (the Fund) meet at designated contract renewal evaluated the information provided
investment advisory agreement with Invesco meetings each year to conduct an in-depth differently from another Trustee and
Aim Advisors, Inc. (Invesco Aim) and the review of the performance, fees, expenses attributed different weight to the various
Master Intergroup Sub-Advisory Contract and other matters related to their factors. The Trustees recognized that the
for Mutual Funds (the sub-advisory assigned funds. During the contract advisory arrangements and resulting
contracts) with Invesco Asset Management renewal process, the Trustees receive advisory fees for the Fund and the other
Deutschland GmbH, Invesco Asset Management comparative performance and fee data AIM Funds are the result of years of
Limited, Invesco Asset Management (Japan) regarding the AIM Funds prepared by an review and negotiation between the
Limited, Invesco Australia Limited, independent company, Lipper, Inc. Trustees and Invesco Aim, that the
Invesco Global Asset Management (N.A.), (Lipper), under the direction and Trustees may focus to a greater extent on
Inc., Invesco Hong Kong Limited, Invesco supervision of the Senior Officer who also certain aspects of these arrangements in
Institutional (N.A.), Inc., Invesco Senior prepares a separate analysis of this some years than in others, and that the
Secured Management, Inc. and Invesco information for the Trustees. Each Trustees' deliberations and conclusions in
Trimark Ltd. (collectively, the Affiliated Sub-Committee then makes recommendations a particular year may be based in part on
Sub-Advisers). During contract renewal to the Investments Committee regarding the their deliberations and conclusions
meetings held on June 16-17, 2009, the fees and expenses of their assigned funds. regarding these same arrangements
Board as a whole, and the disinterested or The Investments Committee considers each throughout the year and in prior years.
"independent" Trustees voting separately, Sub-Committee's recommendations and makes
approved the continuance of the Fund's its own recommendations regarding the fees The discussion below serves as a
investment advisory agreement and the and expenses of the AIM Funds to the full summary of the Senior Officer's
sub-advisory contracts for another year, Board. The Investments Committee also independent written evaluation with
effective July 1, 2009. In doing so, the considers each Sub-Committee's respect to the Fund's investment advisory
Board determined that the Fund's recommendations in making its annual agreement as well as a discussion of the
investment advisory agreement and the recommendation to the Board whether to material factors and related conclusions
sub-advisory contracts are in the best approve the continuance of each AIM Fund's that formed the basis for the Board's
interests of the Fund and its shareholders investment advisory agreement and approval of the Fund's investment advisory
and that the compensation to Invesco Aim sub-advisory contracts for another year. agreement and sub-advisory contracts.
and the Affiliated Sub-Advisers under the Unless otherwise stated, information set
Fund's investment advisory agreement and The independent Trustees met separately forth below is as of June 17, 2009, and
sub-advisory contracts is fair and during their evaluation of the Fund's does not reflect any changes that may have
reasonable. investment advisory agreement and occurred since that date, including but
sub-advisory contracts with independent not limited to changes to the Fund's
THE BOARD'S FUND EVALUATION PROCESS legal counsel. The independent Trustees performance, advisory fees, expense
were also assisted in their annual limitations and/ or fee waivers.
The Board's Investments Committee has evaluation of the Fund's investment
established three Sub-Committees that are advisory agreement by the Senior Officer. FACTORS AND CONCLUSIONS AND SUMMARY OF
responsible for overseeing the management One responsibility of the Senior Officer INDEPENDENT WRITTEN FEE EVALUATION
of a number of the series portfolios of is to manage the process by which the AIM
the AIM Funds. This Sub-Committee Funds' proposed management fees are A. Nature, Extent and Quality of
structure permits the Trustees to focus on negotiated during the annual contract Services Provided by Invesco Aim
the performance of the AIM Funds that have renewal process to ensure that they are
been assigned to them. The Sub-Committees negotiated in a manner that is at arms' The Board reviewed the advisory services
meet throughout the year to review the length and reasonable. Accordingly, the provided to the Fund by Invesco Aim under
performance of their assigned funds, and Senior Officer must either supervise a the Fund's investment advisory agreement,
the Sub-Committees review monthly and competitive bidding process or prepare an the performance of Invesco Aim in
quarterly comparative performance independent written evaluation. The Senior providing these services, and the
information and periodic asset flow data Officer recommended that an independent credentials and experience of the officers
for their assigned funds. These materials written evaluation be provided and, at the and employees of Invesco Aim who provide
are prepared under the direction and direction of the Board, prepared an these services. The Board's review of the
supervision of the independent Senior independent written evaluation. qualifications of Invesco Aim to provide
Officer, an officer of the AIM Funds who these services included the Board's
reports directly to the independent During the annual contract renewal consideration of Invesco Aim's portfolio
Trustees. Over the course of each year, process, the Board considered the factors and product review process, various back
the Sub-Committees meet with portfolio discussed below in evaluating the fairness office support functions provided by
managers for their assigned funds and and reasonableness of the Fund's Invesco Aim and its affiliates, and
other members of management and review investment advisory agreement and Invesco Aim's equity and fixed income
with these individuals the performance, sub-advisory contracts. The Board trading operations. The Board concluded
investment objective(s), policies, considered all of the information provided that the nature, extent and quality of the
to them, including information provided at advisory services provided to the Fund by
their meetings throughout Invesco Aim are appropriate and that
Invesco Aim
25 AIM SELECT REAL ESTATE INCOME FUND continued
</Table>
<Table>
currently is providing satisfactory ers by permitting Invesco Aim to utilize least one year old and that other data did
advisory services in accordance with the the additional resources and talent of the not reflect the market downturn that
terms of the Fund's investment advisory Affiliated Sub-Advisers in managing the occurred in the fourth quarter of 2008.
agreement. In addition, based on their Fund.
ongoing meetings throughout the year with The Board also compared the Fund's
the Fund's portfolio manager or managers, C. Fund Performance effective fee rate (the advisory fee after
the Board concluded that these individuals any advisory fee waivers and before any
are competent and able to continue to The Board considered Fund performance as a expense limitations/ waivers) to the
carry out their responsibilities under the relevant factor in considering whether to effective fee rates of other clients of
Fund's investment advisory agreement. approve the investment advisory agreement Invesco Aim and its affiliates with
as well as the sub-advisory contracts for investment strategies comparable to those
In determining whether to continue the the Fund, as Invesco Institutional of the Fund, including an offshore fund
Fund's investment advisory agreement, the currently manages assets of the Fund. sub-advised by Invesco Institutional. The
Board considered the prior relationship Board noted that the Fund's rate was below
between Invesco Aim and the Fund, as well The Board compared the Fund's the effective fee rate for the offshore
as the Board's knowledge of Invesco Aim's performance during the past one, three and fund.
operations, and concluded that it is five calendar years to the performance of
beneficial to maintain the current all funds in the Lipper performance Additionally, the Board compared the
relationship, in part, because of such universe that are not managed by Invesco Fund's effective fee rate to the effective
knowledge. The Board also considered the AIM or an Affiliated Sub-Adviser and fee rates paid by several separately
steps that Invesco Aim and its affiliates against the Lipper Real Estate Funds managed accounts/wrap accounts advised by
continue to take to improve the quality Index. The Board noted that the Fund's Invesco Institutional. The Board noted
and efficiency of the services they performance was in the first quintile of that the Fund's sub-advisory fee rate was
provide to the AIM Funds in the areas of its Lipper performance universe for the below the rates for the separately managed
investment performance, product line one and three year periods, and the fourth accounts/ wrap accounts. The Board
diversification, distribution, fund quintile for the five year period (the considered that management of the
operations, shareholder services and first quintile being the best performing separately managed accounts/wrap accounts
compliance. The Board concluded that the funds and the fifth quintile being the by the Invesco Institutional involves
quality and efficiency of the services worst performing funds). The Board noted different levels of services and different
Invesco Aim and its affiliates provide to that the Fund's performance was above the operational and regulatory requirements
the AIM Funds in each of these areas performance of the Index for the one and than Invesco Aim's and Invesco
support the Board's approval of the three year periods and below the Index for Institutional's management of the Fund.
continuance of the Fund's investment the five year period. Although the The Board concluded that these differences
advisory agreement. independent written evaluation of the are appropriately reflected in the fee
Fund's Senior Officer only considered Fund structure for the Fund.
B. Nature, Extent and Quality of performance through the most recent
Services Provided by Affiliated calendar year, the Board also reviewed The Board noted that Invesco Aim has
Sub-Advisers more recent Fund performance and this agreed to reduce the per account transfer
review did not change their conclusions. agent fee for all the retail funds,
The Board reviewed the services provided The Board noted that, in response to the including the Fund, effective July 1,
by the Affiliated Sub-Advisers under the Board's focus on fund performance, Invesco 2009. The Board also noted that Invesco
sub-advisory contracts and the credentials Aim has taken a number of actions intended Aim has contractually agreed to waive fees
and experience of the officers and to improve the investment process for the and/or limit expenses of the Fund through
employees of the Affiliated Sub-Advisers funds. at least June 30, 2010 in an amount
who provide these services. The Board necessary to limit total annual operating
concluded that the nature, extent and D. Advisory and Sub-Advisory Fees and expenses to a specified percentage of
quality of the services provided by the Fee Waivers average daily net assets for each class of
Affiliated Sub-Advisers are appropriate. the Fund. The Board noted that at the
The Board noted that the Affiliated The Board compared the Fund's contractual current expense ratio for the Fund, this
Sub-Advisers, which have offices and advisory fee rate to the contractual expense waiver does not have any impact.
personnel that are geographically advisory fee rates of funds in the Fund's
dispersed in financial centers around the Lipper expense group that are not managed The Board also considered the services
world, can provide research and other by Invesco Aim or an Affiliated provided by the Affiliated Sub-Advisers
information and make recommendations on Sub-Adviser, at a common asset level. The pursuant to the sub-advisory contracts
the markets and economies of various Board noted that the Fund's contractual and the services provided by Invesco Aim
countries and securities of companies advisory fee rate was below the median pursuant to the Fund's advisory agreement,
located in such countries or on various contractual advisory fee rate of funds in as well as the allocation of fees between
types of investments and investment tech- its expense group. The Board also reviewed Invesco Aim and the Affiliated
niques. The Board noted that investment the methodology used by Lipper in Sub-Advisers pursuant to the sub-advisory
decisions for the Fund are made by Invesco determining contractual fee rates, which contracts. The Board noted that the
Institutional (N.A.), Inc. (Invesco includes using audited financial data from sub-advisory fees have no direct effect on
Institutional). The Board concluded that the most recent annual report of each fund the Fund or its shareholders, as they are
the sub-advisory contracts benefit the in the expense group that was publicly paid by Invesco Aim to the Affiliated
Fund and its sharehold- available as of the end of the past Sub-Advisers, and that Invesco Aim and the
calendar year. The Board noted that some Affiliated Sub-Advisers are affiliates.
comparative data was at
26 AIM SELECT REAL ESTATE INCOME FUND continued
</Table>
<Table>
After taking account of the Fund's provided. The Board considered whether ements may be invested in money market
contractual advisory fee rate, the Invesco Aim is financially sound and has funds advised by Invesco Aim pursuant to
contractual sub-advisory fee rate, the the resources necessary to perform its procedures approved by the Board. The
comparative advisory fee information obligations under the Fund's investment Board noted that Invesco Aim will receive
discussed above and other relevant advisory agreement, and concluded that advisory fees from these affiliated money
factors, the Board concluded that the Invesco Aim has the financial resources market funds attributable to such
Fund's advisory and sub-advisory fees are necessary to fulfill these obligations. investments, although Invesco Aim has
fair and reasonable. The Board considered whether each contractually agreed to waive through at
Affiliated Sub-Adviser is financially least June 30, 2010, the advisory fees
E. Economies of Scale and Breakpoints sound and has the resources necessary to payable by the Fund in an amount equal to
perform its obligations under the 100% of the net advisory fee Invesco Aim
The Board considered the extent to which sub-advisory contracts, and concluded that receives from the affiliated money market
there are economies of scale in the each Affiliated Sub-Adviser has the funds with respect to the Fund's
provision of advisory services to the financial resources necessary to fulfill investment in the affiliated money market
Fund. The Board also considered whether these obligations. funds of uninvested cash, but not cash
the Fund benefits from such economies of collateral. The Board concluded that the
scale through contractual breakpoints in G. Collateral Benefits to Invesco Aim Fund's investment of uninvested cash and
the Fund's advisory fee schedule. The and its Affiliates cash collateral from any securities
Board noted that the Fund's contractual lending arrangements in the affiliated
advisory fee schedule includes seven The Board considered various other money market funds is in the best
breakpoints, but that due to the Fund's benefits received by Invesco Aim and its interests of the Fund and its
asset level at the end of the past affiliates resulting from Invesco Aim's shareholders.
calendar year, the Fund is not currently relationship with the Fund, including the
benefiting from the breakpoints. The Board fees received by Invesco Aim and its
concluded that the Fund's advisory fees affiliates for their provision of
appropriately reflect economies of scale administrative, transfer agency and
at current asset levels. The Board also distribution services to the Fund. The
noted that the Fund shares directly in Board considered the performance of
economies of scale through lower fees Invesco Aim and its affiliates in
charged by third party service providers providing these services and the
based on the combined size of all of the organizational structure employed by
AIM Funds and affiliates. Invesco Aim and its affiliates to provide
these services. The Board also considered
F. Profitability and Financial that these services are provided to the
Resources Fund pursuant to written contracts that
are reviewed and approved on an annual
The Board reviewed information from basis by the Board. The Board concluded
Invesco Aim concerning the costs of the that Invesco Aim and its affiliates are
advisory and other services that Invesco providing these services in a satisfactory
Aim and its affiliates provide to the Fund manner and in accordance with the terms of
and the profitability of Invesco Aim and their contracts, and are qualified to
its affiliates in providing these continue to provide these services to the
services. The Board also reviewed Fund.
information concerning the financial
condition of Invesco Aim and its The Board considered the benefits
affiliates. The Board reviewed with realized by Invesco Aim and the Affiliated
Invesco Aim the methodology used to Sub-Advisers as a result of portfolio
prepare the profitability information. The brokerage transactions executed through
Board considered the overall profitability "soft dollar" arrangements. The Board
of Invesco Ltd., the ultimate parent of noted that soft dollar arrangements shift
Invesco Aim and the Affiliated the payment obligation for research and
Sub-Advisers, and of Invesco Aim, as well execution services from Invesco Aim and
as the profitability of Invesco Aim in the Affiliated Sub-Advisers to the funds
connection with managing the Fund. The and therefore may reduce Invesco Aim's and
Board noted that Invesco Aim continues to the Affiliated Sub-Advisers' expenses. The
operate at a net profit, although the Board concluded that Invesco Aim's and the
reduction of assets under management as a Affiliated Sub-Advisers' soft dollar
result of market movements and the arrangements are appropriate. The Board
increase in voluntary fee waivers for also concluded that, based on their review
affiliated money market funds have reduced and representations made by the Chief
the profitability of Invesco Aim and its Compliance Officer of Invesco Aim, these
affiliates. The Board concluded that the arrangements are consistent with
Fund's fees are fair and reasonable, and regulatory requirements.
that the level of profits realized by
Invesco Aim and its affiliates from The Board considered the fact that the
providing services to the Fund is not Fund's uninvested cash and cash collateral
excessive in light of the nature, quality from any securities lending arrang-
and extent of the services
27 AIM SELECT REAL ESTATE INCOME FUND
</Table>
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 August 31,
2009:
<Table>
<Caption>
FEDERAL AND STATE INCOME TAX
----------------------------
Qualified Dividend Income* 0.04%
Corporate Dividends Received Deduction* 0%
</Table>
* The above percentages are based on ordinary income dividends paid to
shareholders during the Fund's fiscal year.
28 AIM SELECT REAL ESTATE INCOME FUND
TRUSTEES AND OFFICERS
The address of each trustee and officer of AIM Counselor Series Trust (the
"Trust"), is 11 Greenway Plaza, Suite 100, Houston, Texas 77046-1173. Each
trustee oversees 105 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. Flanagan(1) -- 1960 2007 Executive Director, Chief Executive Officer and President, None
Trustee Invesco Ltd. (ultimate parent of Invesco Aim and a global
investment management firm); Chairman, Invesco Aim Advisors,
Inc. (registered investment advisor); Trustee, The AIM
Family of Funds(R); 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); Director, Invesco Ltd. and Chairman, Investment
Company Institute
- ------------------------------------------------------------------------------------------------------------------------------------
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 Executive Officer President, 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 registered transfer agent) and AIM GP
Canada Inc. (general partner for limited partnerships);
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
(registered investment advisor and registered transfer
agent) and Invesco Trimark Dealer Inc. (registered broker
dealer); Trustee, President and Principal Executive Officer,
The AIM Family of Funds(R) (other than AIM Treasurer's
Series Trust and Short-Term Investments Trust); Trustee and
Executive Vice President, The AIM Family of Funds(R) (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; Senior Managing Director,
Invesco Holding Company Limited; Trustee and Executive Vice
President, Tax-Free Investments Trust; Director and
Chairman, Fund Management Company (former registered broker
dealer); President and Principal Executive Officer, The AIM
Family of Funds(R) (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.
- ------------------------------------------------------------------------------------------------------------------------------------
INDEPENDENT TRUSTEES
- ------------------------------------------------------------------------------------------------------------------------------------
Bruce L. Crockett -- 1944 2003 Chairman, Crockett Technology Associates (technology ACE Limited (insurance
Trustee and Chair consulting company) company); Captaris, Inc.
(unified messaging
provider); and
Investment Company
Institute
- ------------------------------------------------------------------------------------------------------------------------------------
Bob R. Baker -- 1936 1983 Retired None
Trustee
- ------------------------------------------------------------------------------------------------------------------------------------
Frank S. Bayley -- 1939 2003 Retired None
Trustee
Formerly: Director, Badgley Funds, Inc. (registered
investment company) (2 portfolios)
- ------------------------------------------------------------------------------------------------------------------------------------
James T. Bunch -- 1942 2000 Founder, Green, Manning & Bunch Ltd., (investment banking Board of Governors,
Trustee firm) Western Golf
Association/Evans
Scholars Foundation and
Executive Committee,
United States Golf
Association
- ------------------------------------------------------------------------------------------------------------------------------------
Albert R. Dowden -- 1941 2003 Director of a number of public and private business Board of Nature's
Trustee corporations, including the Boss Group Ltd. (private Sunshine Products, Inc.
investment and management); Continental Energy Services, LLC
(oil and gas pipeline service); Reich & Tang Funds
(registered investment 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.; Director, Annuity and Life Re
(Holdings), Ltd. (reinsurance company); Senior Vice
President, AB Volvo; Director of various public and private
corporations
- ------------------------------------------------------------------------------------------------------------------------------------
Jack M. Fields -- 1952 2003 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), Discovery Global Education Fund (non-profit)
and Cross Timbers Quail Research Ranch (non-profit)
Formerly: Chief Executive Officer, Texana Timber LP
(sustainable forestry company)
- ------------------------------------------------------------------------------------------------------------------------------------
Carl Frischling -- 1937 2003 Partner, law firm of Kramer Levin Naftalis and Frankel LLP Director, Reich & Tang
Trustee Funds
(16 portfolios)
- ------------------------------------------------------------------------------------------------------------------------------------
Prema Mathai-Davis -- 1950 2003 Retired None
Trustee
- ------------------------------------------------------------------------------------------------------------------------------------
Lewis F. Pennock -- 1942 2003 Partner, law firm of Pennock & Cooper None
Trustee
- ------------------------------------------------------------------------------------------------------------------------------------
Larry Soll -- 1942 1997 Retired None
Trustee
- ------------------------------------------------------------------------------------------------------------------------------------
Raymond Stickel, Jr. -- 1944 2005 Retired None
Trustee
Formerly: Director, Mainstay 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.
T-1
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 N/A
Senior Vice President and of Funds(R)
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 N/A
Senior Vice President, Chief Counsel, Invesco Aim Management Group, Inc., Invesco Aim
Legal Officer and Secretary Advisors, Inc. 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(R); 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 and General
Counsel, 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 N/A
Vice President President, The AIM Family of Funds(R)
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(R); 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, N/A
Vice President Invesco Ltd.; Director, 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(R)
Formerly: Senior Managing Director and Secretary, Invesco
North American Holdings, Inc.; Vice President and Secretary,
IVZ, Inc. and Invesco Group Services, 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. and Invesco Aim Investment
Services, Inc.; Senior Vice President, Chief Legal Officer
and Secretary, The AIM Family of Funds(R); Director and Vice
President, INVESCO Distributors, Inc.; and Chief Executive
Officer and President, INVESCO Funds Group, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Sheri Morris -- 1964 2003 Vice President, Treasurer and Principal Financial Officer, N/A
Vice President, Treasurer and The AIM Family of Funds(R); and Vice President, Invesco Aim
Principal Financial Officer Advisors, Inc., Invesco Aim Capital Management, Inc. and
Invesco Aim Private Asset Management Inc.
Formerly: Assistant Vice President and Assistant Treasurer,
The AIM Family of Funds(R) and Assistant Vice President,
Invesco Aim Advisors, Inc., Invesco Aim Capital Management,
Inc. and Invesco Aim Private Asset Management, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Karen Dunn Kelley -- 1960 2003 Head of Invesco's World Wide Fixed Income and Cash N/A
Vice President Management Group; Vice President, Invesco Institutional
(N.A.), Inc. (registered investment advisor); 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, Invesco Institutional (N.A.), Inc.
(registered investment advisor); and Director, Invesco
Mortgage Capital Inc.; Vice President, The AIM Family of
Funds(R) (other than AIM Treasurer's Series Trust and
Short-Term Investments Trust); and President and Principal
Executive Officer, The AIM Family of Funds(R) (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(R) (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 N/A
Anti-Money Laundering Advisors, Inc., Invesco Aim Capital Management, Inc.,
Compliance Officer Invesco Aim Distributors, Inc., Invesco Aim Investment
Services, Inc., Invesco Aim Private Asset Management, Inc.
and The AIM Family of Funds(R)
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.; N/A
Chief Compliance Officer Senior Vice President and Chief Compliance Officer, Invesco
Aim Advisors, Inc. and Invesco Aim Capital Management, Inc.;
Chief Compliance Officer, The AIM Family of Funds(R),
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
11 Greenway Plaza Invesco Aim Advisors, Inc. Invesco Aim Distributors, Inc. AUDITORS
Suite 100 11 Greenway Plaza 11 Greenway Plaza PricewaterhouseCoopers LLP
Houston, TX 77046-1173 Suite 100 Suite 100 1201 Louisiana Street
Houston, TX 77046-1173 Houston, TX 77046-1173 Suite 2900
Houston, TX 77002-5678
COUNSEL TO THE FUND COUNSEL TO THE TRANSFER AGENT
Stradley Ronon Stevens & INDEPENDENT TRUSTEES Invesco Aim Investment Services, Inc. CUSTODIAN
Young, LLP Kramer, Levin, Naftalis & Frankel LLP P.O. Box 4739 State Street Bank and Trust
2600 One Commerce Square 1177 Avenue of the Americas Houston, TX 77210-4739 Company
Philadelphia, PA 19103 New York, NY 10036-2714 225 Franklin
Boston, MA 02110-2801
</Table>
T-2
<Table>
[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 number of - EFFICIENT. Stop waiting for regular mail. Your documents
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
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.
- ------------------------------------------------------------------------------------------------------------------------------------
IMPORTANT NOTICE REGARDING DELIVERY OF SECURITY HOLDER DOCUMENTS
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the
same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise.
If you do not want the mailing of these documents to be combined with those for other members of your household, please contact
Invesco Aim Investment Services, Inc. at 800 959 4246 or contact your financial institution. We will begin sending you individual
copies for each account within thirty days after receiving your request.
- ------------------------------------------------------------------------------------------------------------------------------------
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 811-09913 and 333-36074.
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, 2009, 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 January 20, 2010, 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,
exchange-traded 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.
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 Aim Private Asset Management, Inc. and Invesco Global Asset [INVESCO AIM LOGO]
Management (N.A.), Inc. will be merged into Invesco Institutional (N.A.), Inc., and the consolidated adviser - SERVICE MARK -
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 SREI-AR-1 Invesco Aim Distributors, Inc.
</Table>
[INVESCO AIM LOGO] ANNUAL REPORT TO SHAREHOLDERS AUGUST 31, 2009
- -- service mark -- AIM STRUCTURED CORE FUND
[GRAPHIC]
<Table>
2 Letters to Shareholders
4 Performance Summary
4 Management Discussion
6 Long-Term Fund Performance
8 Supplemental Information
9 Schedule of Investments
12 Financial Statements
15 Notes to Financial Statements
22 Financial Highlights
23 Auditor's Report
24 Fund Expenses
25 Approval of Investment Advisory and Sub-Advisory Agreements
28 Tax Information
T-1 Trustees and Officers
</Table>
<Table>
Dear Shareholders:
While the year covered by this report was difficult -- for long-time investors and veteran
investment professionals alike -- economic conditions and market trends appeared much more
favorable at the close of the fiscal year than at its start.
[TAYLOR
PHOTO] The 12 months ended August 31, 2009, included a sharp market sell-off that occurred in the
second half of 2008. That downturn affected virtually all sectors, markets and investors. The
decline had a number of causes, the most immediate being unprecedented turmoil in credit
markets. Economic uncertainty prompted banks to hoard cash and reduce lending, and caused
investors to shun short-term corporate debt. As a result, businesses found it difficult to fund
Philip Taylor their day-to-day operations, and the U.S. economy -- as well as economies around the globe --
virtually froze briefly.
INCREASED COMMUNICATION
These developments prompted a greater-than-usual number of shareholders to contact me. Some of
you took the time to write a letter while others of you emailed me at phil@invescoaim.com.
Many of you sought explanations for the decline in the value of your accounts, while others asked more general questions about
when the economy might improve. Your questions, comments and suggestions gave me better insight into what was on your minds, and I
was pleased that so many of you took the time to share your thoughts with me.
As a result, Invesco Aim's investment professionals and I have increased our efforts to stay in touch with and share our views
with you. We increased the number of "Investment Perspectives" articles on our website, invescoaim.com. Through these articles,
we've tried to provide timely market commentary, general investor education information and sector updates. I hope you'll take a
moment to read them and let me know if you find them useful.
To access your Fund's latest quarterly commentary, click on "Products and Performance" at the top of our website; next, select
"Mutual Funds"; and then click on "Quarterly Commentary."
I also hope you've stayed in touch with your financial advisor. An experienced financial advisor who is familiar with your
individual investment goals, time horizon and risk tolerance can be a source of comfort and information during uncertain times. He
or she can monitor your investments to ensure they're on track and can prevent you from making impulsive short-term decisions that
may have adverse long-term consequences.
REASONS FOR OPTIMISM
The economy and equity markets reacted to a barrage of negative news during the year. Consumer spending -- which accounts for more
than two-thirds(1) of the U.S. economy -- was sluggish as unemployment rose; more workers worried about their job security; home and
portfolio values declined; and credit became more difficult to obtain.
In his semiannual monetary policy report to Congress in late July, U.S. Federal Reserve Board Chairman Ben Bernanke summarized
the stresses and strains the U.S. and global economies suffered in late 2008 and early 2009. Importantly, he suggested that the
aggressive, coordinated actions taken by governments and central banks around the world finally may be yielding results. He
testified that:
o The pace of overall economic decline appears to have slowed significantly.
o Credit availability, for consumers and businesses, has improved noticeably.
o Investors' extreme risk aversion has eased somewhat.
o The decline in housing activity appears to have moderated.
While these and other trends offer encouragement, uncertainties remain. Chairman Bernanke testified that he anticipates a gradual
recovery in 2010 with some acceleration in economic growth in 2011, together with subdued inflation over the next two years. His
considered judgment appears to be shared by investors who have begun to return, cautiously, to the equities market, causing major
U.S. stock-market indexes to bounce off their March lows.
A SINGLE FOCUS
I believe Invesco Aim is uniquely positioned to serve our clients. Our parent company, Invesco Ltd., is one of the largest(2) and
most diversified global asset managers. It provides clients with diversified investment strategies and a range of investment
products managed by distinct management teams around the world. We believe we can serve you best by focusing on one thing and doing
it well: managing your money.
Our investment professionals have managed clients' money in up markets and down markets. All of us here recognize that market
conditions change often; what will not change is our commitment to putting our clients first, helping you achieve your financial
goals and providing excellent customer service.
If you have questions about this report or your account, please contact one of our client services representatives at 800 959
4246. If you have comments for me, I encourage you to email me at phil@invescoaim.com.
Thank you for investing with us. All of us at Invesco Aim look forward to serving you. Sincerely,
Sincerely,
/s/ PHILIP TAYLOR
Philip Taylor
Senior Managing Director, Invesco Ltd.
CEO, Invesco Aim
(1) Reuters;
(2) Pensions & Investments
2 AIM STRUCTURED CORE FUND
</Table>
<Table>
Dear Fellow Shareholders:
Although the economy and financial markets have shown some signs of hope, investors remain
rightfully cautious. Staying with an appropriately diversified investment program focused on
your individual long-term goals can be a wise course in such uncertain times. We believe the
route to financial success is more like a marathon than a sprint.
[CROCKETT
PHOTO] Please be assured that your Board continues to oversee the AIM Funds with a strong sense of
responsibility for your money and your trust. As always, we seek to manage costs and enhance
performance in ways that put your interests first.
Bruce Crockett
We are near the end of a busy 2009 proxy season, during which Invesco Aim Advisors, Inc.'s
proxy committee votes on your behalf on issues put to a shareholder vote by the companies whose
stock the Funds hold. This year, after careful case-by-case analysis by committee members and
portfolio managers, the proxy committee voted with corporate management less often than in previous years, focusing on the issues of
board independence, Say-On-Pay initiatives, and stock option re-pricing in light of the market's decline. The committee remained
committed to supporting non-binding Say-on-Pay proposals and abstaining from voting on social issues.
At its June meeting, your Board reviewed and renewed the investment advisory contracts between the AIM Funds and Invesco Aim
Advisors, Inc. You can find the results of this rigorous annual process at invescoaim.com. Go to "Products & Performance" and click
on "Investment Advisory Agreement Renewals."
The website also contains news and market information, investment education and planning information and current reports and
prospectuses for all the AIM Funds and I highly recommend it to you.
You are always welcome to contact me at bruce@brucecrockett.com with any questions or concerns you may have. We look forward to
representing you and serving you in the coming months.
Sincerely,
/s/ BRUCE L. CROCKETT
Bruce L. Crockett
Independent Chair
AIM Funds Board of Trustees
3 AIM STRUCTURED CORE FUND
</Table>
<Table>
- ------------------------------------------------------------------------------------------------------------------------------------
MANAGEMENT'S DISCUSSION OF FUND PERFORMANCE
- ---------------------------------------------------------------------------------------
PERFORMANCE SUMMARY volatility remain within the Fund
strategy's guidelines. We continually
For the fiscal year ended August 31, 2009, AIM Structured Core Fund, at net asset value monitor the portfolio and the overall
(NAV), slightly underperformed its style-specific benchmark, the S&P 500 investment process is repeated on a
Index.(triangle) The strongest contributions over the last year came from stock monthly basis to determine which companies
selection in the financials and consumer discretionary sectors -- two areas highly should be bought or sold in the portfolio.
affected by the ongoing economic recession.
------------------------------------------
Your Fund's long-term performance appears later in this report. MARKET CONDITIONS AND YOUR FUND
- --------------------------------------------------------------------------------------- The fiscal year ended August 31, 2009,
FUND VS. INDEXES included the worst U.S. economic downturn
since the Great Depression.(1) An
Total returns, 8/31/08 to 8/31/09, at net asset value (NAV). Performance shown does not overheated housing market was the primary
include applicable contingent deferred sales charges (CDSC) or front-end sales charges, cause of the recession. When home prices
which would have reduced performance. fell, financial instruments linked to that
market declined in value, causing
Class A Shares -18.66% significant pressures in other areas of
Class B Shares -19.10 the economy. Beginning in the first
Class C Shares -19.10 quarter of 2008, gross domestic product
Class R Shares -18.70 (the total output of goods and services in
Class Y Shares* -18.28 the U.S. economy) contracted in five out
Investor Class Shares -18.43 of six subsequent quarters.(1)
S&P 500 Index(triangle) (Broad Market/Style-Specific Index) -18.25 Unemployment, which stood at 4.9% in
Lipper Large-Cap Core Funds Index (triangle) (Peer Group Index) -17.07 January 2008, nearly doubled to 9.7% in
August 2009, as economic distress
(triangle)Lipper Inc. reverberated throughout the economy.(2)
* Share class incepted during the fiscal year. See page 7 for a detailed With this backdrop of dire economic
explanation of Fund performance. news, the large cap equity market -- as
measured by the S&P 500 Index --
- ------------------------------------------ experienced two extremes over the last
HOW WE INVEST also may be considered. Each stock in the year, creating a "tale of two markets."
universe is evaluated on four factors: From August 31, 2008 to the market's
We manage your Fund to provide exposure to company earnings momentum, price trend, bottom on March 9, 2009, the S&P 500 Index
large cap core equity stocks. The management action and relative valuation. fell 46.4%.(3) From March 9th through
portfolio strives to outperform the S&P The scores from these four factors are August 31, 2009, however, the S&P 500
500 Index while minimizing the amount of combined to arrive at an overall alpha Index rebounded sharply, gaining 52.6%.(3)
additional risk relative to the benchmark. score (excess return forecast) for each
The Fund can be used as a long-term stock. Each alpha score is relative to the Until the market low, market
allocation to large cap stocks that other securities within the same industry. participants largely shunned investment
complements other style-specific Stocks also are evaluated on a multitude risk. Company fundamentals were subject to
strategies within a diversified asset of other factors to develop a intense scrutiny; perceived instability in
allocation strategy. stock-specific risk forecast and a company caused its security price to
transaction cost forecast. decline. Leverage was shunned; cash and
Our investment process integrates the income were embraced. After March,
following key steps: We then incorporate the alpha forecast, however, investors gradually became risk
risk forecast and transaction cost consumers again and market leadership
o Universe development forecast using an optimizer (a software changed abruptly.
tool) to build a portfolio that we believe
o Stock rankings is an optimal balance of the stocks'
potential return and risk. This portfolio
o Risk assessment is constructed according to certain
constraints to increase the probability
o Portfolio construction that the Fund's relative performance and
o Trading
While the companies included in the S&P
500 Index are used as a general guide for
developing the Fund's investable universe,
non-benchmark stocks
- ------------------------------------------ ------------------------------------------ ------------------------------------------
PORTFOLIO COMPOSITION TOP FIVE INDUSTRIES* TOP 10 EQUITY HOLDINGS*
By sector
Information Technology 19.3% 1. Integrated Oil & Gas 11.1% 1. Exxon Mobil Corp. 5.4%
Consumer Discretionary 18.3 2. Pharmaceuticals 8.7 2. Microsoft Corp. 3.8
Health Care 16.1 3. Computer Hardware 7.1 3. International Business Machines
Financials 12.3 4. Integrated Telecommunication Corp. 3.6
Energy 11.1 Services 5.7 4. Apple Inc. 3.5
Telecommunication Services 7.2 5. Systems Software 5.4 5. AT&T Inc. 3.1
Consumer Staples 6.0 ----------------------------------------- 6. Wal-Mart Stores, Inc. 2.8
Industrials 4.2 Total Net Assets $113.2 million 7. Chevron Corp. 2.5
Utilities 0.9 Total Number of Holdings* 86 8. Occidental Petroleum Corp. 2.5
Materials 0.8 9. Goldman Sachs Group, Inc. (The) 2.4
U.S. Treasury Bills, Money Market 10. Verizon Communications Inc. 2.3
Funds Plus Other Assets Less
Liabilities 3.8 The Fund's holdings are subject to change, and there is no assurance that the Fund will
continue to hold any particular security.
* Excluding money market fund holdings.
4 AIM STRUCTURED CORE FUND
</Table>
<Table>
As large cap stocks began to recover, stocks. These sectors, along with JEREMY LEFKOWITZ
they were led by low-quality stocks, many financials, comprised three of the four
of which were the hardest-hit during the worst-performing sectors for the benchmark Portfolio manager, is lead manager of AIM
collapse. Our review of the data for the during the fiscal year. From an individual Structured Core Fund. He began his
March through August 2009 time period stock perspective, technology companies investment career in 1968 and has been
showed stocks that outperformed their APPLE and INTERNATIONAL BUSINESS MACHINES associated with Invesco Institutional
industry peers tended to be smaller, were two of the biggest contributors to and/or its affiliates since 1982. Mr.
lower-priced, and more illiquid. Fund performance. Conversely, over weights Lefkowitz earned a B.S. in industrial
Perversely, stocks that outperformed their in industrial giant GENERAL ELECTRIC and engineering and an M.B.A. in finance from
industry peers also tended to exhibit real oil and gas refiner CONOCOPHILLIPS Columbia University.
fundamental weakness. For example, detracted from returns.
companies that outperformed tended to be MAUREEN DONNELLAN
those that were expected to lose money In terms of risk management, we seek to
over the coming fiscal year, had negative minimize any style biases in the Portfolio manager, is manager of AIM
cash flow coming into this period, had portfolio. Active managers typically add Structured Core Fund. She has been
their earnings forecasts slashed by 50% or value in one of or a combination of four associated with Invesco Institutional
more by analysts, were highly levered, and areas: beta bias (relative volatility), and/or its affiliates since 1974.
saw their prices decline dramatically over style bias, sector/industry over/under
the prior six months. These are not the weight and stock selection. We attempt to LAWSON MCWHORTER
type of stocks we seek to include in your add value through our stock selection
Fund because our research found that such decisions. Consequently, our risk Portfolio manager, is manager of AIM
stocks tend to lead to long-term investing management process seeks to neutralize the Structured Core Fund. He has been
failure. Fund's exposure relative to the benchmark associated with Invesco Institutional
with regard to beta, style and and/or its affiliates since 2005. Mr.
Regarding the results of AIM Structured sector/industry exposures. McWhorter earned a B.A. with cum laude
Core Fund, it is important to understand honors from Davidson College. He is a
our investment process to better evaluate We thank you for your continued Chartered Market Technician.
the drivers of our relative performance investment in AIM Structured Core Fund.
versus the benchmark. We generally WILLIAM MERSON
evaluate performance based on the impact (1) Bureau of Economic Analysis
of our stock selection and risk Portfolio manager, is manager of AIM
management. (2) Bureau of Labor Statistics Structured Core Fund. He has been
associated with Invesco Institutional
Our stock selection model, based on the (3) Lipper Inc. and/or its affiliates since 1984. Mr.
four factors (company earnings momentum, Merson earned a B.B.A. from Manhattan
price trend, management action and The views and opinions expressed in College and an M.B.A. from New York
relative value) that make up our alpha management's discussion of Fund University.
(excess return) forecast for stocks in our performance are those of Invesco Aim
investment universe, was a detractor from Advisors, Inc. These views and opinions DANIEL TSAI
Fund performance. However, in selecting are subject to change at any time based on
holdings for the Fund, we also take into factors such as market and economic Chartered Financial Analyst, portfolio
account our risk and transaction cost conditions. These views and opinions may manager, is manager of AIM Structured Core
forecasts. We use our optimization not be relied upon as investment advice or Fund. He has been associated with Invesco
software to assist in making investment recommendations, or as an offer for a Institutional and/or its affiliates since
decisions, based on risk and transaction particular security. The information is 2000. Mr. Tsai earned a B.S. in mechanical
cost forecasts, as well as our alpha not a complete analysis of every aspect of engineering from National Taiwan
forecast. Consequently, while our stock any market, country, industry, security or University and an M.S. in mechanical
selection model may identify a stock with the Fund. Statements of fact are from engineering from the University of
an attractive alpha forecast, the sources considered reliable, but Invesco Michigan. He also earned an M.S. in
optimizer may indicate that its Aim Advisors, Inc. makes no representation computer science at Wayne State
transaction costs are too high and/or its or warranty as to their completeness or University.
risk level is unacceptable. Placing more accuracy. Although historical performance
of an emphasis on transaction costs and is no guarantee of future results, these ANNE UNFLAT
potential risk in making stock selections insights may help you understand our
can benefit or detract from Fund investment management philosophy. Portfolio manager, is manager of AIM
performance. For the fiscal year, it Structured Core Fund. She has been
augmented our results. See important Fund and index disclosures associated with Invesco Institutional
later in this report. and/or its affiliates since 1988. Ms.
Our stock selection was strongest in Unflat graduated magna cum laude from
financials during the fiscal year -- an Queens College with a B.A. in economics.
attractive result, considering it was the She earned her M.B.A. in finance from St.
worst-performing sector in the S&P 500 John's University.
Index. A slight underweight in financials
versus the S&P 500 Index also helped Fund Assisted by the Global Quantitative Equity
performance. The portfolio had more Research Team
difficulty identifying rewarding
investments in industrials and materials
5 AIM STRUCTURED CORE FUND
</Table>
<Table>
- ------------------------------------------------------------------------------------------------------------------------------------
YOUR FUND'S LONG-TERM PERFORMANCE
RESULTS OF A $10,000 INVESTMENT - OLDEST SHARE CLASSES WITH SALES CHARGES SINCE INCEPTION
Fund and Index Data from 3/31/06
[PERFORMANCE CHART]
AIM AIM AIM AIM
STRUCTURED STRUCTURED STRUCTURED STRUCTURED LIPPER
CORE FUND- CORE FUND- CORE FUND- CORE FUND- LARGE-CAP
CLASS A CLASS B CLASS C CLASS R S&P 500 CORE FUNDS
SHARES SHARES SHARES SHARES INDEX(1) INDEX(1)
---------- ---------- ---------- ---------- -------- ----------
3/31/2006 9450 10000 10000 10000 10000 10000
04/06 9554 10100 10100 10100 10134 10104
05/06 9261 9790 9790 9800 9843 9798
06/06 9337 9859 9859 9870 9856 9806
07/06 9412 9939 9939 9959 9917 9772
08/06 9630 10159 10159 10180 10152 10015
09/06 9866 10399 10399 10430 10414 10226
10/06 10272 10819 10819 10860 10753 10567
11/06 10423 10969 10969 11010 10957 10774
12/06 10487 11028 11028 11070 11111 10883
01/07 10697 11250 11250 11304 11279 11059
02/07 10419 10947 10947 11000 11059 10868
03/07 10583 11109 11109 11162 11182 10977
04/07 10986 11524 11524 11589 11677 11434
05/07 11361 11918 11918 11994 12084 11824
06/07 11063 11595 11595 11669 11884 11681
07/07 10583 11089 11089 11162 11516 11352
08/07 10746 11251 11251 11335 11688 11482
09/07 11178 11696 11696 11781 12125 11897
10/07 11533 12060 12060 12157 12318 12154
11/07 10967 11464 11453 11558 11802 11671
12/07 11089 11578 11578 11683 11721 11604
01/08 10064 10503 10502 10602 11018 10925
02/08 9716 10137 10137 10235 10660 10642
03/08 9755 10168 10167 10266 10614 10503
04/08 10286 10726 10725 10837 11131 11020
05/08 10412 10837 10837 10948 11275 11220
06/08 9609 10005 10005 10113 10325 10351
07/08 9474 9853 9853 9970 10239 10204
08/08 9561 9934 9933 10052 10387 10335
09/08 8604 8940 8939 9043 9462 9381
10/08 7193 7468 7468 7564 7873 7791
11/08 6796 7063 7062 7157 7308 7175
12/08 6996 7267 7267 7361 7385 7302
01/09 6358 6586 6585 6690 6763 6736
02/09 5673 5892 5891 5967 6046 6084
03/09 6250 6484 6484 6576 6574 6599
04/09 6875 7115 7115 7234 7203 7270
05/09 7031 7279 7278 7399 7605 7702
06/09 7007 7253 7253 7374 7621 7693
07/09 7548 7808 7808 7932 8196 8283
08/09 7778 7846 8037 8172 8492 8571
(1) Lipper Inc.
Past performance cannot guarantee shareholder had liquidated his entire fund expenses and management fees;
comparable future results. investment in the Fund at the close of the performance of a market index does not.
reporting period and paid the applicable Performance shown in the chart and
The data shown in the chart include contingent deferred sales charges. Index table(s) does not reflect deduction of
reinvested distributions, applicable sales results include reinvested dividends, but taxes a shareholder would pay on Fund
charges and Fund expenses including they do not reflect sales charges. distributions or sale of Fund shares.
management fees. Results for Class B Performance of the peer group reflects
shares are calculated as if a hypothetical
6 AIM STRUCTURED CORE FUND
</Table>
<Table>
- ------------------------------------------ ------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS AVERAGE ANNUAL TOTAL RETURNS
As of 8/31/09, including maximum As of 6/30/09, the most recent calendar
applicable sales charges quarter-end, including maximum applicable
sales charges
CLASS A SHARES
Inception (3/31/06) -7.08% CLASS A SHARES
1 Year -23.17 Inception (3/31/06) -10.36%
CLASS B SHARES 1 Year -31.10
Inception (3/31/06) -6.85% CLASS B SHARES
1 Year -22.35 Inception (3/31/06) -10.07%
CLASS C SHARES 1 Year -30.41
Inception (3/31/06) -6.19% CLASS C SHARES
1 Year -19.75 Inception (3/31/06) -9.41%
CLASS R SHARES 1 Year -28.07
Inception (3/31/06) -5.73% CLASS R SHARES
1 Year -18.70 Inception (3/31/06) -8.95%
CLASS Y SHARES 1 Year -27.08
Inception -5.41% CLASS Y SHARES
1 Year -18.28 Inception -8.69%
INVESTOR CLASS SHARES 1 Year -26.82
Inception -5.46% INVESTOR CLASS SHARES
1 Year -18.43 Inception -8.74%
1 Year -26.95
CLASS Y SHARES' INCEPTION DATE IS OCTOBER FIGURES REFLECT REINVESTED DISTRIBUTIONS, CDSC ON CLASS C SHARES IS 1% FOR THE FIRST
3, 2008; RETURNS SINCE THAT DATE ARE CHANGES IN NET ASSET VALUE AND THE EFFECT YEAR AFTER PURCHASE. CLASS R SHARES DO NOT
ACTUAL RETURNS. ALL OTHER RETURNS ARE OF THE MAXIMUM SALES CHARGE UNLESS HAVE A FRONT-END SALES CHARGE; RETURNS
BLENDED RETURNS OF ACTUAL CLASS Y SHARE OTHERWISE STATED. INVESTMENT RETURN AND SHOWN ARE AT NET ASSET VALUE AND DO NOT
PERFORMANCE AND RESTATED CLASS A SHARE PRINCIPAL VALUE WILL FLUCTUATE SO THAT YOU REFLECT A 0.75% CDSC THAT MAY BE IMPOSED
PERFORMANCE (FOR PERIODS PRIOR TO THE MAY HAVE A GAIN OR LOSS WHEN YOU SELL ON A TOTAL REDEMPTION OF RETIREMENT PLAN
INCEPTION DATE OF CLASS Y SHARES) AT NET SHARES. ASSETS WITHIN THE FIRST YEAR. CLASS Y AND
ASSET VALUE. THE RESTATED CLASS A SHARE INVESTOR CLASS SHARES DO NOT HAVE A
PERFORMANCE REFLECTS THE RULE 12B-1 FEES THE NET ANNUAL FUND OPERATING EXPENSE FRONT-END SALES CHARGE OR A CDSC;
APPLICABLE TO CLASS A SHARES AS WELL AS RATIO SET FORTH IN THE MOST RECENT FUND THEREFORE, PERFORMANCE IS AT NET ASSET
ANY FEE WAIVERS OR EXPENSE REIMBURSEMENTS PROSPECTUS AS OF THE DATE OF THIS REPORT VALUE.
RECEIVED BY CLASS A SHARES. CLASS A FOR CLASS A, CLASS B, CLASS C, CLASS R,
SHARES' INCEPTION DATE IS MARCH 31, 2006. CLASS Y AND INVESTOR CLASS SHARES WAS THE PERFORMANCE OF THE FUND'S SHARE
1.01%, 1.76%, 1.76%, 1.26%, 0.76%, AND CLASSES WILL DIFFER PRIMARILY DUE TO
INVESTOR CLASS SHARES' INCEPTION DATE 1.01%, RESPECTIVELY.(1) THE TOTAL ANNUAL DIFFERENT SALES CHARGE STRUCTURES AND
IS APRIL 25, 2008. RETURNS SINCE THAT DATE FUND OPERATING EXPENSE RATIO SET FORTH IN CLASS EXPENSES.
ARE HISTORICAL RETURNS. ALL OTHER RETURNS THE MOST RECENT FUND PROSPECTUS AS OF THE
ARE BLENDED RETURNS OF HISTORICAL INVESTOR DATE OF THIS REPORT FOR CLASS A, CLASS B, HAD THE ADVISOR NOT WAIVED FEES AND/OR
CLASS SHARE PERFORMANCE AND RESTATED CLASS CLASS C, CLASS R, CLASS Y AND INVESTOR REIMBURSED EXPENSES, PERFORMANCE WOULD
A SHARE PERFORMANCE (FOR PERIODS PRIOR TO CLASS SHARES WAS 1.20%, 1.95%, 1.95%, HAVE BEEN LOWER.
THE INCEPTION DATE OF INVESTOR CLASS 1.45%, 0.95% AND 1.20%, RESPECTIVELY. THE
SHARES) AT NET ASSET VALUE, WHICH RESTATED EXPENSE RATIOS PRESENTED ABOVE MAY VARY (1) Total annual operating expenses less
PERFORMANCE WILL REFLECT THE RULE 12B-1 FROM THE EXPENSE RATIOS PRESENTED IN OTHER any contractual fee waivers and/or
FEES APPLICABLE TO CLASS A SHARES FOR THE SECTIONS OF THIS REPORT THAT ARE BASED ON expense reimbursements by the advisor
PERIOD USING BLENDED RETURNS. CLASS A EXPENSES INCURRED DURING THE PERIOD in effect through at least June 30,
SHARES' INCEPTION DATE IS MARCH 31, 2006. COVERED BY THIS REPORT. 2010. See current prospectus for more
information.
THE PERFORMANCE DATA QUOTED REPRESENT CLASS A SHARE PERFORMANCE REFLECTS THE
PAST PERFORMANCE AND CANNOT GUARANTEE MAXIMUM 5.50% SALES CHARGE, AND CLASS B
COMPARABLE FUTURE RESULTS; CURRENT AND CLASS C SHARE PERFORMANCE REFLECTS THE
PERFORMANCE MAY BE LOWER OR HIGHER. PLEASE APPLICABLE CONTINGENT DEFERRED SALES
VISIT INVESCOAIM.COM FOR THE MOST RECENT CHARGE (CDSC) FOR THE PERIOD INVOLVED. THE
MONTH-END PERFORMANCE. PERFORMANCE CDSC ON CLASS B SHARES DECLINES FROM 5%
BEGINNING AT THE TIME OF PURCHASE TO 0% AT
THE BEGINNING OF THE SEVENTH YEAR. THE
7 AIM STRUCTURED CORE FUND
</Table>
<Table>
- ------------------------------------------------------------------------------------------------------------------------------------
AIM STRUCTURED CORE FUND'S INVESTMENT OBJECTIVE IS LONG-TERM GROWTH OF CAPITAL.
o Unless otherwise stated, information presented in this report is as of August 31, 2009, and is based on total net assets.
o Unless otherwise noted, all data provided by Invesco Aim.
- ------------------------------------------
ABOUT SHARE CLASSES bond prices generally fall as interest funds reflects fund expenses;
rates rise and vice versa. performance of a market index does not.
o Effective September 30, 2003, for
qualified plans only, those previously o Leveraging entails risks such as ------------------------------------------
established are eligible to purchase magnifying changes in the value of the OTHER INFORMATION
Class B shares of any AIM fund. Please portfolio's securities.
see the prospectus for more o The Chartered Financial Analysts(R)
information. o Since a large percentage of the Fund's (CFA(R)) designation is globally
assets may be invested in securities of recognized and attests to a
o Class R shares are available only to a limited number of companies, each charterholder's success in a rigorous
certain retirement plans. Please see investment has a greater effect on the and comprehensive study program in the
the prospectus for more information. Fund's overall performance, and any field of investment management and
change in the value of those securities research analysis.
o Class Y shares are available to only could significantly affect the value of
certain investors. Please see the your investment in the Fund. o The returns shown in management's
prospectus for more information. discussion of Fund performance are
o There is no guarantee that the based on net asset values calculated
- ------------------------------------------ investment techniques and risk analysis for shareholder transactions. Generally
PRINCIPAL RISKS OF INVESTING IN THE FUND used by the Fund's portfolio managers accepted accounting principles require
will produce the desired results. adjustments to be made to the net
o Credit risk is the risk of loss on an assets of the Fund at period end for
investment due to the deterioration of o The prices of securities held by the financial reporting purposes, and as
an issuer's financial health. Such a Fund may decline in response to market such, the net asset values for
deterioration of financial health may risks. shareholder transactions and the
result in a reduction of the credit returns based on those net asset values
rating of the issuer's securities and ------------------------------------------ may differ from the net asset values
may lead to the issuer's inability to ABOUT INDEXES USED IN THIS REPORT and returns reported in the Financial
honor its contractual obligations, Highlights.
including making timely payment of o The S&P 500(R) INDEX is a market
interest and principal. capitalization-weighted index covering o Industry classifications used in this
all major areas of the U.S. economy. It report are generally according to the
o The Fund may use enhanced investment is not the 500 largest companies, but Global Industry Classification
techniques such as derivatives. The rather the most widely held 500 Standard, which was developed by and is
principal risk of derivatives is that companies chosen with respect to market the exclusive property and a service
the fluctuations in their values may size, liquidity and their industry. mark of MSCI Inc. and Standard &
not correlate perfectly with the Poor's.
overall securities markets. Derivatives o The LIPPER LARGE-CAP CORE FUNDS INDEX
are subject to counterparty risk -- the is an equally weighted representation
risk that the other party will not of the largest funds in the Lipper
complete the transaction with the Fund. Large-Cap Core Funds category. These
funds typically have an average
o Prices of equity securities change in price-to-earnings ratio, price-to-book
response to many factors, including the ratio, and three-year sales-per-share
historical and prospective earnings of growth value, compared to the S&P 500
the issuer, the value of its assets, Index.
general economic conditions, interest
rates, investor perceptions and market o The Fund is not managed to track the
liquidity. performance of any particular index,
including the indexes defined here, and
o Foreign securities have additional consequently, the performance of the
risks, including exchange rate changes, Fund may deviate significantly from the
political and economic upheaval, performance of the indexes.
relative lack of information,
relatively low market liquidity, and o A direct investment cannot be made in
the potential lack of strict financial an index. Unless otherwise indicated,
and accounting controls and standards. index results include reinvested
dividends, and they do not reflect
o Interest rate risk refers to the risk sales charges. Performance of an index
that of
------------------------------------------
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 SCAUX
INVESTORS SHOULD READ IT CAREFULLY BEFORE INVESTING. Class B Shares SBCUX
Class C Shares SCCUX
- --------------------------------------------------------------------------------------- Class R Shares SCRUX
NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE Class Y Shares SCAYX
Investor Class Shares SCNUX
8 AIM STRUCTURED CORE FUND
</Table>
SCHEDULE OF INVESTMENTS(a)
August 31, 2009
<Table>
<Caption>
SHARES VALUE
- -------------------------------------------------------------------------------
COMMON STOCKS & OTHER EQUITY INTERESTS-96.22%
AEROSPACE & DEFENSE-1.27%
United Technologies Corp. 24,300 $ 1,442,448
===============================================================================
AGRICULTURAL PRODUCTS-1.27%
Archer-Daniels-Midland Co. 49,900 1,438,617
===============================================================================
AIR FREIGHT & LOGISTICS-0.39%
United Parcel Service, Inc.-Class B 8,300 443,718
===============================================================================
APPAREL RETAIL-2.97%
Chico's FAS, Inc.(b) 19,200 244,416
- -------------------------------------------------------------------------------
Gap, Inc. (The) 117,900 2,316,735
- -------------------------------------------------------------------------------
Ross Stores, Inc. 17,200 802,208
===============================================================================
3,363,359
===============================================================================
APPLICATION SOFTWARE-0.09%
Compuware Corp.(b) 13,700 98,777
===============================================================================
AUTOMOBILE MANUFACTURERS-1.74%
Ford Motor Co.(b) 259,200 1,969,920
===============================================================================
AUTOMOTIVE RETAIL-0.85%
AutoNation, Inc.(b) 19,600 372,008
- -------------------------------------------------------------------------------
AutoZone, Inc.(b) 4,000 589,000
===============================================================================
961,008
===============================================================================
BIOTECHNOLOGY-3.92%
Amgen Inc.(b) 42,800 2,556,872
- -------------------------------------------------------------------------------
Biogen Idec Inc.(b) 37,500 1,882,875
===============================================================================
4,439,747
===============================================================================
COAL & CONSUMABLE FUELS-0.00%
Patriot Coal Corp.(b) 1 7
===============================================================================
COMMUNICATIONS EQUIPMENT-0.13%
Harris Stratex Networks, Inc.-Class A(b) 23,900 144,834
===============================================================================
COMPUTER & ELECTRONICS RETAIL-1.92%
RadioShack Corp. 143,300 2,168,129
===============================================================================
COMPUTER HARDWARE-7.07%
Apple Inc.(b) 23,600 3,969,756
- -------------------------------------------------------------------------------
International Business Machines Corp. 34,100 4,025,505
===============================================================================
7,995,261
===============================================================================
COMPUTER STORAGE & PERIPHERALS-2.33%
EMC Corp.(b) 71,300 1,133,670
- -------------------------------------------------------------------------------
QLogic Corp.(b) 5,000 79,050
- -------------------------------------------------------------------------------
Western Digital Corp.(b) 41,500 1,422,620
===============================================================================
2,635,340
===============================================================================
CONSTRUCTION, FARM MACHINERY & HEAVY TRUCKS-0.14%
Oshkosh Corp. 4,700 157,920
===============================================================================
DATA PROCESSING & OUTSOURCED SERVICES-0.52%
Broadridge Financial Solutions Inc. 17,100 356,022
- -------------------------------------------------------------------------------
Visa Inc.-Class A 3,300 234,630
===============================================================================
590,652
===============================================================================
DEPARTMENT STORES-0.24%
Sears Holdings Corp.(b) 4,200 266,490
===============================================================================
EDUCATION SERVICES-1.73%
Apollo Group, Inc.-Class A(b) 26,600 1,724,212
- -------------------------------------------------------------------------------
Career Education Corp.(b) 10,000 237,500
===============================================================================
1,961,712
===============================================================================
ELECTRONIC MANUFACTURING SERVICES-0.10%
Flextronics International Ltd. (Singapore)(b) 18,800 111,484
===============================================================================
GENERAL MERCHANDISE STORES-2.42%
Big Lots, Inc.(b) 62,400 1,586,208
- -------------------------------------------------------------------------------
Family Dollar Stores, Inc. 38,200 1,156,696
===============================================================================
2,742,904
===============================================================================
GOLD-0.70%
Barrick Gold Corp. (Canada) 22,900 794,630
===============================================================================
HEALTH CARE EQUIPMENT-0.93%
Boston Scientific Corp.(b) 89,100 1,046,925
===============================================================================
HEALTH CARE SERVICES-0.59%
Omnicare, Inc. 29,400 672,966
===============================================================================
HOME IMPROVEMENT RETAIL-2.05%
Home Depot, Inc. (The) 84,800 2,314,192
===============================================================================
HOMEBUILDING-3.94%
D.R. Horton, Inc. 162,000 2,172,420
- -------------------------------------------------------------------------------
KB Home 105,700 1,924,797
- -------------------------------------------------------------------------------
NVR, Inc.(b) 540 364,635
===============================================================================
4,461,852
===============================================================================
HOUSEHOLD PRODUCTS-1.84%
Procter & Gamble Co. (The) 38,500 2,083,235
===============================================================================
HYPERMARKETS & SUPER CENTERS-2.77%
Wal-Mart Stores, Inc. 61,600 3,133,592
===============================================================================
INDEPENDENT POWER PRODUCERS & ENERGY TRADERS-0.90%
Mirant Corp.(b) 60,700 1,022,795
===============================================================================
</Table>
See accompanying Notes to Financial Statements which are an integral part of the
financial statements.
9 AIM STRUCTURED CORE FUND
<Table>
<Caption>
SHARES VALUE
- -------------------------------------------------------------------------------
INDUSTRIAL CONGLOMERATES-2.39%
3M Co. 5,800 $ 418,180
- -------------------------------------------------------------------------------
General Electric Co. 164,800 2,290,720
===============================================================================
2,708,900
===============================================================================
INTEGRATED OIL & GAS-11.12%
Chevron Corp. 40,900 2,860,546
- -------------------------------------------------------------------------------
ConocoPhillips 18,700 842,061
- -------------------------------------------------------------------------------
Exxon Mobil Corp. 87,600 6,057,540
- -------------------------------------------------------------------------------
Occidental Petroleum Corp. 38,700 2,828,970
===============================================================================
12,589,117
===============================================================================
INTEGRATED TELECOMMUNICATION SERVICES-5.72%
AT&T Inc. 135,700 3,534,985
- -------------------------------------------------------------------------------
BCE Inc. (Canada) 2,400 58,968
- -------------------------------------------------------------------------------
Qwest Communications International Inc. 66,600 239,094
- -------------------------------------------------------------------------------
Verizon Communications Inc. 85,100 2,641,504
===============================================================================
6,474,551
===============================================================================
INTERNET SOFTWARE & SERVICES-1.35%
eBay Inc.(b) 68,900 1,525,446
===============================================================================
INVESTMENT BANKING & BROKERAGE-2.41%
Goldman Sachs Group, Inc. (The) 16,100 2,663,906
- -------------------------------------------------------------------------------
Jefferies Group, Inc.(b) 2,500 59,150
===============================================================================
2,723,056
===============================================================================
LIFE & HEALTH INSURANCE-2.66%
Aflac, Inc. 58,400 2,372,208
- -------------------------------------------------------------------------------
Unum Group 28,500 642,105
===============================================================================
3,014,313
===============================================================================
MANAGED HEALTH CARE-1.93%
UnitedHealth Group Inc. 78,100 2,186,800
===============================================================================
MORTGAGE REIT'S-0.26%
Annaly Capital Management Inc. 16,800 291,312
===============================================================================
MOVIES & ENTERTAINMENT-0.39%
Time Warner Inc. 15,800 440,978
===============================================================================
MULTI-LINE INSURANCE-0.05%
Fairfax Financial Holdings Ltd. (Canada) 160 54,210
===============================================================================
OTHER DIVERSIFIED FINANCIAL SERVICES-0.51%
Bank of America Corp. 10,100 177,659
- -------------------------------------------------------------------------------
JPMorgan Chase & Co. 9,100 395,486
===============================================================================
573,145
===============================================================================
PACKAGED FOODS & MEATS-0.08%
Dean Foods Co.(b) 5,100 92,514
===============================================================================
PHARMACEUTICALS-8.72%
Abbott Laboratories 5,200 235,196
- -------------------------------------------------------------------------------
Bristol-Myers Squibb Co. 41,600 920,608
- -------------------------------------------------------------------------------
Eli Lilly and Co. 59,100 1,977,486
- -------------------------------------------------------------------------------
Forest Laboratories, Inc.(b) 37,400 1,094,698
- -------------------------------------------------------------------------------
Johnson & Johnson 33,800 2,042,872
- -------------------------------------------------------------------------------
King Pharmaceuticals, Inc.(b) 9,200 95,496
- -------------------------------------------------------------------------------
Merck & Co., Inc. 25,400 823,722
- -------------------------------------------------------------------------------
Pfizer Inc. 81,400 1,359,380
- -------------------------------------------------------------------------------
Schering-Plough Corp. 19,600 552,328
- -------------------------------------------------------------------------------
Wyeth 16,100 770,385
===============================================================================
9,872,171
===============================================================================
PROPERTY & CASUALTY INSURANCE-5.35%
ACE Ltd. (Switzerland) 17,300 902,714
- -------------------------------------------------------------------------------
Chubb Corp. (The) 23,000 1,135,970
- -------------------------------------------------------------------------------
Progressive Corp. (The)(b) 6,800 112,336
- -------------------------------------------------------------------------------
Travelers Cos., Inc. (The) 52,000 2,621,840
- -------------------------------------------------------------------------------
XL Capital Ltd.-Class A 74,000 1,283,900
===============================================================================
6,056,760
===============================================================================
PUBLISHING-0.06%
Gannett Co., Inc. 8,300 71,712
===============================================================================
SEMICONDUCTORS-2.31%
Cypress Semiconductor Corp.(b) 56,700 573,804
- -------------------------------------------------------------------------------
Texas Instruments Inc. 82,800 2,036,052
===============================================================================
2,609,856
===============================================================================
SOFT DRINKS-0.05%
Dr. Pepper Snapple Group, Inc.(b) 2,000 52,880
===============================================================================
SPECIALIZED REIT'S-1.04%
Public Storage 16,700 1,178,185
===============================================================================
STEEL-0.07%
Reliance Steel & Aluminum Co. 2,100 77,574
===============================================================================
SYSTEMS SOFTWARE-5.44%
Microsoft Corp. 175,600 4,328,540
- -------------------------------------------------------------------------------
Symantec Corp.(b) 120,900 1,828,008
===============================================================================
6,156,548
===============================================================================
WIRELESS TELECOMMUNICATION SERVICES-1.49%
Sprint Nextel Corp.(b) 461,000 1,687,260
===============================================================================
Total Common Stocks & Other Equity Interests
(Cost $104,418,640) 108,899,802
===============================================================================
<Caption>
PRINCIPAL
AMOUNT
U.S. TREASURY BILLS-0.71%
0.16%, 09/17/09 (Cost $799,943)(c)(d) $ 800,000 799,943
===============================================================================
</Table>
See accompanying Notes to Financial Statements which are an integral part of the
financial statements.
10 AIM STRUCTURED CORE FUND
<Table>
<Caption>
SHARES VALUE
- -------------------------------------------------------------------------------
MONEY MARKET FUNDS-2.99%
Liquid Assets Portfolio-Institutional Class(e) 1,689,252 $ 1,689,252
- -------------------------------------------------------------------------------
Premier Portfolio-Institutional Class(e) 1,689,252 1,689,252
===============================================================================
Total Money Market Funds (Cost $3,378,504) 3,378,504
===============================================================================
TOTAL INVESTMENTS-99.92% (Cost $108,597,087) 113,078,249
===============================================================================
OTHER ASSETS LESS LIABILITIES-0.08% 94,223
===============================================================================
NET ASSETS-100.00% $113,172,472
_______________________________________________________________________________
===============================================================================
</Table>
Investment Abbreviations:
<Table>
REIT - Real Estate Investment Trust
</Table>
Notes to Schedule of Investments:
(a) Industry and/or sector classifications used in this report are generally
according to the Global Industry Classification Standard, which was
developed by and is the exclusive property and a service mark of MSCI Inc.
and Standard & Poor's.
(b) Non-income producing security.
(c) Security traded on a discount basis. The interest rate shown represents
the discount rate at the time of purchase by the Fund.
(d) All or a portion of the value was pledged as collateral to cover margin
requirements for open futures contracts. See Note 1J and Note 4.
(e) The money market fund and the Fund are affiliated by having the same
investment advisor.
See accompanying Notes to Financial Statements which are an integral part of the
financial statements.
11 AIM STRUCTURED CORE FUND
STATEMENT OF ASSETS AND LIABILITIES
August 31, 2009
<Table>
ASSETS:
Investments, at value (Cost $105,218,583) $109,699,745
- --------------------------------------------------------------------------------
Investments in affiliated money market funds, at value and cost 3,378,504
================================================================================
Total investments, at value (Cost $108,597,087) 113,078,249
================================================================================
Receivables for:
Investments sold 1,314
- --------------------------------------------------------------------------------
Fund shares sold 13,946
- --------------------------------------------------------------------------------
Dividends 262,579
- --------------------------------------------------------------------------------
Investment for trustee deferred compensation and retirement plans 14,204
- --------------------------------------------------------------------------------
Other assets 26,599
================================================================================
Total assets 113,396,891
________________________________________________________________________________
================================================================================
LIABILITIES:
Payables for:
Fund shares reacquired 55,364
- --------------------------------------------------------------------------------
Variation margin 30,800
- --------------------------------------------------------------------------------
Accrued fees to affiliates 57,327
- --------------------------------------------------------------------------------
Accrued other operating expenses 48,968
- --------------------------------------------------------------------------------
Trustee deferred compensation and retirement plans 31,960
================================================================================
Total liabilities 224,419
================================================================================
Net assets applicable to shares outstanding $113,172,472
________________________________________________________________________________
================================================================================
NET ASSETS CONSIST OF:
Shares of beneficial interest $145,255,706
- --------------------------------------------------------------------------------
Undistributed net investment income 2,006,339
- --------------------------------------------------------------------------------
Undistributed net realized gain (loss) (38,826,396)
- --------------------------------------------------------------------------------
Unrealized appreciation 4,736,823
================================================================================
$113,172,472
________________________________________________________________________________
================================================================================
NET ASSETS:
Class A $ 1,617,754
________________________________________________________________________________
================================================================================
Class B $ 211,043
________________________________________________________________________________
================================================================================
Class C $ 253,719
________________________________________________________________________________
================================================================================
Class R $ 77,109
________________________________________________________________________________
================================================================================
Class Y $ 211,047
________________________________________________________________________________
================================================================================
Investor Class $ 88,674,205
________________________________________________________________________________
================================================================================
Institutional Class $ 22,127,595
________________________________________________________________________________
================================================================================
SHARES OUTSTANDING, $0.01 PAR VALUE PER SHARE, UNLIMITED NUMBER OF SHARES
AUTHORIZED:
Class A 249,924
________________________________________________________________________________
================================================================================
Class B 33,118
________________________________________________________________________________
================================================================================
Class C 39,799
________________________________________________________________________________
================================================================================
Class R 11,947
________________________________________________________________________________
================================================================================
Class Y 32,476
________________________________________________________________________________
================================================================================
Investor Class 13,650,703
________________________________________________________________________________
================================================================================
Institutional Class 3,402,754
________________________________________________________________________________
================================================================================
Class A:
Net asset value per share $ 6.47
- --------------------------------------------------------------------------------
Maximum offering price per share
(Net asset value of $6.47 divided by 94.50%) $ 6.85
________________________________________________________________________________
================================================================================
Class B:
Net asset value and offering price per share $ 6.37
________________________________________________________________________________
================================================================================
Class C:
Net asset value and offering price per share $ 6.37
________________________________________________________________________________
================================================================================
Class R:
Net asset value and offering price per share $ 6.45
________________________________________________________________________________
================================================================================
Class Y:
Net asset value and offering price per share $ 6.50
________________________________________________________________________________
================================================================================
Investor Class:
Net asset value and offering price per share $ 6.50
________________________________________________________________________________
================================================================================
Institutional Class:
Net asset value and offering price per share $ 6.50
________________________________________________________________________________
================================================================================
</Table>
See accompanying Notes to Financial Statements which are an integral part of the
financial statements.
12 AIM STRUCTURED CORE FUND
STATEMENT OF OPERATIONS
For the year ended August 31, 2009
<Table>
INVESTMENT INCOME:
Dividends (net of foreign withholding taxes of $6,031) $ 2,620,046
- ------------------------------------------------------------------------------------------------
Dividends from affiliated money market funds (includes securities lending income
of $63,910) 115,513
- ------------------------------------------------------------------------------------------------
Interest 2,857
================================================================================================
Total investment income 2,738,416
================================================================================================
EXPENSES:
Advisory fees 655,360
- ------------------------------------------------------------------------------------------------
Administrative services fees 50,000
- ------------------------------------------------------------------------------------------------
Custodian fees 13,372
- ------------------------------------------------------------------------------------------------
Distribution fees:
Class A 4,256
- ------------------------------------------------------------------------------------------------
Class B 2,472
- ------------------------------------------------------------------------------------------------
Class C 8,872
- ------------------------------------------------------------------------------------------------
Class R 292
- ------------------------------------------------------------------------------------------------
Investor Class 215,474
- ------------------------------------------------------------------------------------------------
Transfer agent fees -- A, B, C, R, Y and Investor 199,792
- ------------------------------------------------------------------------------------------------
Transfer agent fees -- Institutional 13,885
- ------------------------------------------------------------------------------------------------
Trustees' and officers' fees and benefits 21,773
- ------------------------------------------------------------------------------------------------
Registration and filing fees 84,205
- ------------------------------------------------------------------------------------------------
Other 71,572
================================================================================================
Total expenses 1,341,325
================================================================================================
Less: Fees waived, expenses reimbursed and expense offset arrangement(s) (659,637)
================================================================================================
Net expenses 681,688
================================================================================================
Net investment income 2,056,728
================================================================================================
REALIZED AND UNREALIZED GAIN (LOSS) FROM:
Net realized gain (loss) from:
Investment securities (34,042,660)
- ------------------------------------------------------------------------------------------------
Futures contracts (2,050,471)
================================================================================================
(36,093,131)
================================================================================================
Change in net unrealized appreciation of:
Investment securities 1,332,184
- ------------------------------------------------------------------------------------------------
Futures contracts 243,361
================================================================================================
1,575,545
================================================================================================
Net realized and unrealized gain (loss) (34,517,586)
================================================================================================
Net increase (decrease) in net assets resulting from operations $(32,460,858)
________________________________________________________________________________________________
================================================================================================
</Table>
See accompanying Notes to Financial Statements which are an integral part of the
financial statements.
13 AIM STRUCTURED CORE FUND
STATEMENT OF CHANGES IN NET ASSETS
For the years ended August 31, 2009 and 2008
<Table>
<Caption>
2009 2008
- --------------------------------------------------------------------------------------------------------
OPERATIONS:
Net investment income $ 2,056,728 $ 1,094,905
- --------------------------------------------------------------------------------------------------------
Net realized gain (loss) (36,093,131) 24,571,721
- --------------------------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) 1,575,545 (41,756,816)
========================================================================================================
Net increase (decrease) in net assets resulting from operations (32,460,858) (16,090,190)
========================================================================================================
DISTRIBUTIONS TO SHAREHOLDERS FROM NET INVESTMENT INCOME:
Class A (19,375) (3,257)
- --------------------------------------------------------------------------------------------------------
Class B (2,573) --
- --------------------------------------------------------------------------------------------------------
Class C (12,547) --
- --------------------------------------------------------------------------------------------------------
Class R (451) --
- --------------------------------------------------------------------------------------------------------
Class Y (2,630) --
- --------------------------------------------------------------------------------------------------------
Investor Class (824,995) --
- --------------------------------------------------------------------------------------------------------
Institutional Class (224,782) (51,149)
========================================================================================================
Total distributions from net investment income (1,087,353) (54,406)
========================================================================================================
DISTRIBUTIONS TO SHAREHOLDERS FROM NET REALIZED GAINS:
Class A (370,361) (7,487)
- --------------------------------------------------------------------------------------------------------
Class B (62,258) (3,837)
- --------------------------------------------------------------------------------------------------------
Class C (303,605) (4,882)
- --------------------------------------------------------------------------------------------------------
Class R (9,308) (3,252)
- --------------------------------------------------------------------------------------------------------
Class Y (47,948) --
- --------------------------------------------------------------------------------------------------------
Investor Class (15,770,612) --
- --------------------------------------------------------------------------------------------------------
Institutional Class (3,572,911) (53,151)
========================================================================================================
Total distributions from net realized gains (20,137,003) (72,609)
========================================================================================================
SHARE TRANSACTIONS-NET:
Class A 1,091,808 (400,725)
- --------------------------------------------------------------------------------------------------------
Class B 127,039 (577,108)
- --------------------------------------------------------------------------------------------------------
Class C 369,562 (706,858)
- --------------------------------------------------------------------------------------------------------
Class R 37,691 (544,118)
- --------------------------------------------------------------------------------------------------------
Class Y 283,846 --
- --------------------------------------------------------------------------------------------------------
Investor Class (4,831,505) 149,467,214
- --------------------------------------------------------------------------------------------------------
Institutional Class 2,149,035 31,561,248
========================================================================================================
Net increase (decrease) in net assets resulting from share
transactions (772,524) 178,799,653
========================================================================================================
Net increase (decrease) in net assets (54,457,738) 162,582,448
========================================================================================================
NET ASSETS:
Beginning of year 167,630,210 5,047,762
========================================================================================================
End of year (includes undistributed net investment income of $2,006,339
and $1,043,496, respectively) $113,172,472 $167,630,210
________________________________________________________________________________________________________
========================================================================================================
</Table>
See accompanying Notes to Financial Statements which are an integral part of the
financial statements.
14 AIM STRUCTURED CORE FUND
NOTES TO FINANCIAL STATEMENTS
August 31, 2009
NOTE 1--SIGNIFICANT ACCOUNTING POLICIES
AIM Structured Core Fund (the "Fund") is a series portfolio of AIM Counselor
Series Trust (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 seven 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 long-term growth of capital.
The Fund currently consists of seven different classes of shares: Class A,
Class B, Class C, Class R, Class Y, Investor Class and Institutional Class.
Investor Class shares of the Fund are offered only to certain grandfathered
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 B shares and
Class C shares are sold with a CDSC. Class R, Class Y, Investor Class and
Institutional Class shares are sold at net asset value. Under certain
circumstances, Class R shares are subject to a CDSC. 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 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.
A security listed or traded on an exchange (except convertible bonds) is
valued at its last sales price or official closing price as of the close
of the customary trading session on the exchange where the security is
principally traded, or lacking any sales or official closing price on a
particular day, the security may be valued at the closing bid price on
that day. Securities traded in the over-the-counter market are valued
based on prices furnished by independent pricing services or market
makers. When such securities are valued by an independent pricing service
they may be considered fair valued. Futures contracts are valued at the
final settlement price set by an exchange on which they are principally
traded. Listed options are valued at the mean between the last bid and ask
prices from the exchange on which they are principally traded. Options not
listed on an exchange are valued by an independent source at the mean
between the last bid and ask prices. For purposes of determining net asset
value per share, futures and option contracts generally are valued 15
minutes after the close of the customary trading session of the New York
Stock Exchange ("NYSE").
Investments in open-end and closed-end registered investment companies
that do not trade on an exchange are valued at the end of day net asset
value per share. Investments in open-end and closed-end registered
investment companies that trade on an exchange are valued at the last
sales price or official closing price as of the close of the customary
trading session on the exchange where the security is principally traded.
Debt obligations (including convertible bonds) and unlisted equities are
fair valued using an evaluated quote provided by an independent pricing
service. 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, developments related to specific securities, dividend rate,
yield, quality, type of issue, coupon rate, maturity, 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. 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/or principal payments.
Foreign securities (including foreign exchange contracts) are converted
into U.S. dollar amounts using the applicable exchange rates as of the
close of the NYSE. If market quotations are available and reliable for
foreign exchange traded equity securities, the securities will be valued
at the market quotations. Because trading hours for certain foreign
securities end before the close of the NYSE, closing market quotations may
become unreliable. If between the time trading ends on a particular
security and the close of the customary trading session on the NYSE,
events occur that are significant and make the closing price unreliable,
the Fund may fair value the security. If the event is likely to have
affected the closing price of the security, the security will be valued at
fair value in good faith using procedures approved by the Board of
Trustees. Adjustments to closing prices to reflect fair value may also be
based on a screening process of an independent pricing service to indicate
the degree of certainty, based on historical data, that the closing price
in the principal market where a foreign security trades is not the current
value as of the close of the NYSE. Foreign securities meeting the approved
degree of certainty that the price is not reflective of current value will
be priced at the indication of fair value from the independent pricing
service. Multiple factors may be considered by the independent pricing
service in determining adjustments to reflect fair value and may include
information relating to sector indices, American Depositary Receipts and
domestic and foreign index futures. Foreign securities may have additional
risks including exchange rate changes, potential for sharply devalued
currencies and high inflation, political and economical upheaval, the
relative lack of issuer information, relatively low market liquidity and
the potential lack of strict financial and accounting controls and
standards.
Securities for which market prices are not provided by any of the above
methods may be valued based upon quotes furnished by independent sources.
The last bid price may be used to value equity securities and Corporate
Loans. The mean between the last bid and asked prices may be used to value
debt obligations other than Corporate Loans.
Securities for which market quotations 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. Issuer specific events, market trends,
bid/ask quotes of brokers and information providers and other market data
may be reviewed in the course of making a good faith determination of a
security's fair value.
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.
15 AIM STRUCTURED CORE FUND
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 income and realized and unrealized capital gains and
losses to a class based on the relative net assets 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 and 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 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.
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. In addition, the Fund monitors for material events or
transactions that may occur or become known after the period end date and
before the date the financial statements are released to print, which is
generally 45 days from the period end date.
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. SECURITIES LENDING -- The Fund may lend portfolio securities having a
market value up to one-third of the Fund's total assets. Such loans are
secured by collateral equal to no less than the market value of the loaned
securities determined daily by the securities lending provider. Such
collateral will be cash or debt securities issued or guaranteed by the
U.S. Government or any of its sponsored agencies. Cash collateral received
in connection with these loans is invested in short-term money market
instruments or affiliated money market funds and is shown as such on the
Schedule of Investments. It is the Fund's policy to obtain additional
collateral from or return excess collateral to the borrower by the end of
the next business day, following the valuation date of the securities
loaned. Therefore, the value of the collateral held may be temporarily
less than the value of the securities on loan. Lending securities entails
a risk of loss to the Fund if and to the extent that the market value of
the securities loaned were to increase and the borrower did not increase
the collateral accordingly, and the borrower fails to return the
securities. Upon the failure of the borrower to return the securities,
collateral may be liquidated and the securities may be purchased on the
open market to replace the loaned securities. The Fund could experience
delays and costs in gaining access to the collateral. The Fund bears the
risk of any deficiency in the amount of the collateral available for
return to the borrower due to any loss on the collateral invested.
Dividends received on cash collateral investments for securities lending
transactions, which are net of compensation to counterparties, is included
in Dividends from affiliates on the Statement of Operations. The aggregate
value of securities out on loan is shown as a footnote on the Statement of
Assets and Liabilities, if any.
J. FUTURES CONTRACTS -- The Fund may enter into futures contracts to manage
exposure to interest rate, equity and market price movements and/or
currency risks. A futures contract is an agreement between two parties to
purchase or sell a specified underlying security, currency or commodity
(or
16 AIM STRUCTURED CORE FUND
delivery of a cash settlement price, in the case of an index future) for a
fixed price at a future date. The Fund currently invests only in exchange-
traded futures and they are standardized as to maturity date and
underlying financial instrument. Initial margin deposits required upon
entering into futures contracts are satisfied by the segregation of
specific securities or cash as collateral at the futures commission
merchant (broker). During the period the futures contracts are open,
changes in the value of the contracts are recognized as unrealized gains
or losses by recalculating the value of the contracts on a daily basis.
Subsequent or variation margin payments are received or made depending
upon whether unrealized gains or losses are incurred. These amounts are
reflected as receivables or payables on the Statement of Assets and
Liabilities. When the contracts are closed or expire, the Fund recognizes
a realized gain or loss equal to the difference between the proceeds from,
or cost of, the closing transaction and the Fund's basis in the contract.
The net realized gain (loss) and the change in unrealized gain (loss) on
futures contracts held during the period is included on the Statement of
Operations. The primary risks associated with futures contracts are market
risk and the absence of a liquid secondary market. If the Fund were unable
to liquidate a futures contract and/or enter into an offsetting closing
transaction, the Fund would continue to be subject to market risk with
respect to the value of the contracts and continue to be required to
maintain the margin deposits on the futures contracts. Futures contracts
have minimal counterparty risk since the exchange's clearinghouse, as
counterparty to all exchange traded futures, guarantees the futures
against default. Risks may exceed amounts recognized in the Statement of
Assets and Liabilities.
K. COLLATERAL -- To the extent the Fund has pledged or segregated a security
as collateral and that security is subsequently sold, it is the Fund's
practice to replace such collateral no later than the next business day.
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 $250 million 0.60%
- -------------------------------------------------------------------
Next $250 million 0.575%
- -------------------------------------------------------------------
Next $500 million 0.55%
- -------------------------------------------------------------------
Next $1.5 billion 0.525%
- -------------------------------------------------------------------
Next $2.5 billion 0.50%
- -------------------------------------------------------------------
Next $2.5 billion 0.475%
- -------------------------------------------------------------------
Next $2.5 billion 0.45%
- -------------------------------------------------------------------
Over $10 billion 0.425%
___________________________________________________________________
===================================================================
</Table>
Under the terms of a master sub-advisory agreement approved by shareholders of
the Fund between 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 July 1, 2009, the Advisor has contractually 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 R, Class Y, Investor Class and Institutional Class shares to
1.00%, 1.75%, 1.75%, 1.25%, 0.75%, 1.00% and 0.75% of average daily net assets,
respectively, through at least June 30, 2010. Prior to July 1, 2009, the Advisor
had contractually 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 R, Class Y, Investor
Class and Institutional Class shares to 0.60%, 1.35%, 1.35%, 0.85%, 0.35%,
0.60%, and 0.35% 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 or non-
routine items; (v) expenses related to a merger or reorganization, as approved
by the Fund's Board of Trustees; (vi) expenses of the underlying funds that are
paid indirectly as a result of share ownership of the underlying funds; and
(vii) 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. Those credits are used
to pay certain expenses incurred by the Fund.
Further, the Advisor has contractually agreed, through at least June 30, 2010,
to waive the advisory fee payable by the Fund in an amount equal to 100% of the
net advisory fees the Advisor receives from the affiliated money market funds on
investments by the Fund of uninvested cash (excluding investments of cash
collateral from securities lending) in such affiliated money market funds.
For the year ended August 31, 2009, the Advisor waived advisory fees of
$445,282 and reimbursed class level expenses of $3,769, $547, $1,964, $129,
$462, $190,808 and $13,885 of Class A, Class B, Class C, Class R, Class Y,
Investor Class and Institutional Class shares, respectively.
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
August 31, 2009, Invesco reimbursed expenses of the Fund in the amount of $232.
17 AIM STRUCTURED CORE FUND
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 August 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 August 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 R, Class Y, Investor Class 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, Class C, Class R and Investor Class
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, 1.00% of the average daily net assets of Class B and Class C
shares, 0.50% of the average daily net assets of Class R shares and 0.25% of the
average daily net assets of Investor Class 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 August 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 August 31, 2009, IADI
advised the Fund that IADI retained $1,580 in front-end sales commissions from
the sale of Class A shares and $0, $1,831, $34 and $0 from Class A, Class B,
Class C and Class R 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--ADDITIONAL VALUATION INFORMATION
Generally Accepted Accounting Principles (GAAP) 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 under
current market conditions. GAAP 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.
The following is a summary of the tiered valuation input levels, as of the end
of the reporting period, August 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>
LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
- -------------------------------------------------------------------------------------------------------------------------
Equity Securities $112,278,306 $ -- $-- $112,278,306
- -------------------------------------------------------------------------------------------------------------------------
U.S. Treasury Securities -- 799,943 -- 799,943
- -------------------------------------------------------------------------------------------------------------------------
$113,078,249
=========================================================================================================================
Other Investments* 255,661 -- -- 255,661
=========================================================================================================================
Total Investments $112,533,967 $799,943 $-- $113,333,910
_________________________________________________________________________________________________________________________
=========================================================================================================================
</Table>
* Other Investments include futures which are included at unrealized
appreciation.
NOTE 4--DERIVATIVE INVESTMENTS
Effective March 1, 2009, the Fund has adopted the provisions of FASB Statement
No. 161, Disclosures about Derivative Instruments and Hedging Activities. The
standard is intended to improve financial reporting about derivative instruments
and hedging activities by requiring enhanced disclosures to enable investors to
better understand their effects on an entity's financial position and financial
performance. The adoption of this provision has no impact on the results of
operations reported in the financial statements.
18 AIM STRUCTURED CORE FUND
VALUE OF DERIVATIVE INSTRUMENTS AT PERIOD-END
The Table below summarizes the value of the Fund's derivative instruments,
detailed by primary risk exposure, held as of August 31, 2009:
<Table>
<Caption>
VALUE
------------------------
RISK EXPOSURE/ DERIVATIVE TYPE ASSETS LIABILITIES
- ------------------------------------------------------------------------------------------------------
Market risk
Futures contracts(a) $260,474 $(4,813)
______________________________________________________________________________________________________
======================================================================================================
</Table>
(a) Includes cumulative appreciation (depreciation) of futures contracts. Only
current day's variation margin receivable (payable) is reported within the
Statement of Assets & Liabilities.
EFFECT OF DERIVATIVE INSTRUMENTS FOR THE SIX MONTHS ENDED AUGUST 31, 2009
The table below summarizes the gains on derivative instruments, detailed by
primary risk exposure, recognized in earnings during the period:
<Table>
<Caption>
LOCATION OF GAIN ON
STATEMENT OF OPERATIONS
-----------------------
FUTURES*
- ----------------------------------------------------------------------------------------------------
Realized Gain
Market risk $ 622,501
====================================================================================================
Change in Unrealized Appreciation
Market risk 875,112
====================================================================================================
Total $1,497,613
____________________________________________________________________________________________________
====================================================================================================
</Table>
* The average value of outstanding futures during the period was $4,569,375.
<Table>
<Caption>
OPEN FUTURES CONTRACTS
- ------------------------------------------------------------------------------------------------------------------------
NUMBER OF MONTH/ UNREALIZED
CONTRACT CONTRACTS COMMITMENT VALUE APPRECIATION
- ------------------------------------------------------------------------------------------------------------------------
Chicago Mercantile Exchange S&P 500 Index 16 September-09/Long $4,078,800 $255,661
________________________________________________________________________________________________________________________
========================================================================================================================
</Table>
NOTE 5--EXPENSE OFFSET ARRANGEMENT(S)
The expense offset arrangements are comprised of (i) transfer agency credits
which result from balances in Demand Deposit Accounts (DDA) used by the transfer
agent for clearing shareholder transactions, (ii) custodian credits which result
from periodic overnight cash balances at the custodian and (iii) a one time
custodian fee credit used to offset custodian fees. For the year ended August
31, 2009, the Fund received credits from these arrangements, which resulted in
the reduction of the Fund's total expenses of $2,559.
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 August 31, 2009, the Fund paid legal fees of $3,419 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 to temporarily carry a negative or overdrawn balance in
its account with The State Street Bank and Trust Company, 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.
19 AIM STRUCTURED CORE FUND
NOTE 8--DISTRIBUTIONS TO SHAREHOLDERS AND TAX COMPONENTS OF NET ASSETS
TAX CHARACTER OF DISTRIBUTIONS TO SHAREHOLDERS PAID DURING THE YEARS ENDED
AUGUST 31, 2009 AND 2008:
<Table>
<Caption>
2009 2008
- ------------------------------------------------------------------------------------------------------
Ordinary income $ 1,093,885 $ 54,406
- ------------------------------------------------------------------------------------------------------
Long-term capital gain 20,130,471 72,609
======================================================================================================
Total distributions $21,224,356 $127,015
______________________________________________________________________________________________________
======================================================================================================
</Table>
TAX COMPONENTS OF NET ASSETS AT PERIOD-END:
<Table>
<Caption>
2009
- ------------------------------------------------------------------------------------------------
Undistributed ordinary income $ 2,038,751
- ------------------------------------------------------------------------------------------------
Net unrealized appreciation -- investments 2,684,972
- ------------------------------------------------------------------------------------------------
Temporary book/tax differences (32,412)
- ------------------------------------------------------------------------------------------------
Post-October deferrals (26,902,793)
- ------------------------------------------------------------------------------------------------
Capital loss carryforward (9,871,752)
- ------------------------------------------------------------------------------------------------
Shares of beneficial interest 145,255,706
================================================================================================
Total net assets $113,172,472
________________________________________________________________________________________________
================================================================================================
</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 wash sales.
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 August 31, 2009 which expires
as follows:
<Table>
<Caption>
CAPITAL LOSS
EXPIRATION CARRYFORWARD*
- -----------------------------------------------------------------------------------------------
August 31, 2017 $9,871,752
_______________________________________________________________________________________________
===============================================================================================
</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 August 31, 2009 was $83,478,711 and $108,484,598,
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 $10,693,337
- -----------------------------------------------------------------------------------------------
Aggregate unrealized (depreciation) of investment securities (8,008,365)
===============================================================================================
Net unrealized appreciation of investment securities $ 2,684,972
_______________________________________________________________________________________________
===============================================================================================
Cost of investments for tax purposes is $110,393,277.
</Table>
NOTE 10--RECLASSIFICATION OF PERMANENT DIFFERENCES
Primarily as a result of differing book/tax treatment of distributions on August
31, 2009, undistributed net investment income was decreased by $6,532 and
undistributed net realized gain (loss) was increased by $6,532. This
reclassification had no effect on the net assets of the Fund.
20 AIM STRUCTURED CORE FUND
NOTE 11--SHARE INFORMATION
<Table>
<Caption>
SUMMARY OF SHARE ACTIVITY
- ------------------------------------------------------------------------------------------------------------------------
YEAR ENDED AUGUST 31,
-----------------------------------------------------------
2009(a) 2008
--------------------------- ---------------------------
SHARES AMOUNT SHARES AMOUNT
- ------------------------------------------------------------------------------------------------------------------------
Sold:
Class A 441,071 $ 2,793,780 52,645 $ 550,487
- ------------------------------------------------------------------------------------------------------------------------
Class B 50,732 325,326 10,713 113,741
- ------------------------------------------------------------------------------------------------------------------------
Class C 311,615 2,058,767 100,723 1,010,754
- ------------------------------------------------------------------------------------------------------------------------
Class R 7,372 43,440 5,587 57,004
- ------------------------------------------------------------------------------------------------------------------------
Class Y(b) 38,159 313,750 -- --
- ------------------------------------------------------------------------------------------------------------------------
Investor Class(c) 1,882,307 11,430,231 878,241 9,098,926
- ------------------------------------------------------------------------------------------------------------------------
Institutional Class 627,262 3,748,959 1,946,816 21,051,375
========================================================================================================================
Issued as reinvestment of dividends:
Class A 68,237 384,176 931 10,620
- ------------------------------------------------------------------------------------------------------------------------
Class B 11,638 64,826 338 3,837
- ------------------------------------------------------------------------------------------------------------------------
Class C 56,301 313,598 424 4,818
- ------------------------------------------------------------------------------------------------------------------------
Class R 1,736 9,759 285 3,252
- ------------------------------------------------------------------------------------------------------------------------
Class Y 8,968 50,578 -- --
- ------------------------------------------------------------------------------------------------------------------------
Investor Class(c) 2,840,248 16,047,399 -- --
- ------------------------------------------------------------------------------------------------------------------------
Institutional Class 673,350 3,797,693 9,141 104,300
========================================================================================================================
Issued in connection with acquisitions:(d)
Investor Class -- -- 17,521,866 188,037,074
- ------------------------------------------------------------------------------------------------------------------------
Institutional Class -- -- 1,777,178 19,072,533
========================================================================================================================
Automatic conversion of Class B shares to Class A shares:
Class A 5,525 31,109 4,681 51,224
- ------------------------------------------------------------------------------------------------------------------------
Class B (5,596) (31,109) (4,713) (51,224)
========================================================================================================================
Reacquired:
Class A(b) (361,111) (2,117,257) (98,908) (1,013,056)
- ------------------------------------------------------------------------------------------------------------------------
Class B (40,515) (232,004) (65,478) (643,462)
- ------------------------------------------------------------------------------------------------------------------------
Class C (353,556) (2,002,803) (169,375) (1,722,430)
- ------------------------------------------------------------------------------------------------------------------------
Class R (2,550) (15,508) (61,725) (604,374)
- ------------------------------------------------------------------------------------------------------------------------
Class Y (14,651) (80,482) -- --
- ------------------------------------------------------------------------------------------------------------------------
Investor Class(b)(c) (4,899,493) (32,309,135) (4,572,466) (47,668,786)
- ------------------------------------------------------------------------------------------------------------------------
Institutional Class (863,365) (5,397,617) (851,641) (8,666,960)
========================================================================================================================
Net increase (decrease) in share activity 483,684 $ (772,524) 16,485,263 $178,799,653
________________________________________________________________________________________________________________________
========================================================================================================================
</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 20% 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 Investor Class into
Class Y shares of the Fund:
<Table>
<Caption>
CLASS SHARES AMOUNT
--------------------------------------------------------------------------------------------------
Class Y 35,513 $ 294,403
--------------------------------------------------------------------------------------------------
Class A (2,881) (23,882)
--------------------------------------------------------------------------------------------------
Investor Class (32,593) (270,521)
__________________________________________________________________________________________________
==================================================================================================
</Table>
(c) Investor Class shares commenced on April 25, 2008.
(d) As of the open of business on April 28, 2008, the Fund acquired all the net
assets of AIM S&P 500 Index Fund pursuant to a plan of reorganization
approved by the Trustees of the Fund on October 30, 2007 and by the
shareholders of AIM S&P 500 Index Fund on March 28, 2008. The acquisition
was accomplished by a tax-free exchange of 19,299,044 shares of the Fund
for 14,941,286 shares outstanding of AIM S&P 500 Index Fund as of the close
of business on April 25, 2008. Each class of AIM S&P 500 Index Fund was
exchanged for the like class of shares of the Fund based on the relative
net asset value of AIM S&P 500 Index Fund to the net asset value of the
Fund on the close of business, April 25, 2008. AIM S&P 500 Index Fund's net
assets at that date of $207,109,606 including $44,541,884 of unrealized
appreciation, was combined with those of the Fund. The net assets of the
Fund immediately before the acquisition were $15,694,957. The net assets of
the Fund immediately following the acquisition were $222,804,563.
21 AIM STRUCTURED CORE 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 NET ON SECURITIES DIVIDENDS DISTRIBUTIONS
VALUE, INVESTMENT (BOTH TOTAL FROM FROM NET FROM NET NET ASSET
BEGINNING INCOME REALIZED AND INVESTMENT INVESTMENT REALIZED TOTAL VALUE, END
OF PERIOD (LOSS) UNREALIZED) OPERATIONS INCOME GAINS DISTRIBUTIONS OF PERIOD
- ---------------------------------------------------------------------------------------------------------------------------------
CLASS A
Year ended 08/31/09 $ 9.89 $ 0.11(c) $(2.16) $(2.05) $(0.07) $(1.30) $(1.37) $ 6.47
Year ended 08/31/08 11.19 0.14(c) (1.37) (1.23) (0.02) (0.05) (0.07) 9.89
Year ended 08/31/07 10.19 0.08(c) 1.10 1.18 (0.18) -- (0.18) 11.19
Year ended 08/31/06(e) 10.00 0.04 0.15 0.19 -- -- -- 10.19
- ---------------------------------------------------------------------------------------------------------------------------------
CLASS B
Year ended 08/31/09 9.79 0.06(c) (2.13) (2.07) (0.05) (1.30) (1.35) 6.37
Year ended 08/31/08 11.14 0.06(c) (1.36) (1.30) -- (0.05) (0.05) 9.79
Year ended 08/31/07 10.16 (0.01)(c) 1.10 1.09 (0.11) -- (0.11) 11.14
Year ended 08/31/06(e) 10.00 0.01 0.15 0.16 -- -- -- 10.16
- ---------------------------------------------------------------------------------------------------------------------------------
CLASS C
Year ended 08/31/09 9.79 0.06(c) (2.13) (2.07) (0.05) (1.30) (1.35) 6.37
Year ended 08/31/08 11.14 0.06(c) (1.36) (1.30) -- (0.05) (0.05) 9.79
Year ended 08/31/07 10.16 (0.01)(c) 1.10 1.09 (0.11) -- (0.11) 11.14
Year ended 08/31/06(e) 10.00 0.01 0.15 0.16 -- -- -- 10.16
- ---------------------------------------------------------------------------------------------------------------------------------
CLASS R
Year ended 08/31/09 9.86 0.10(c) (2.15) (2.05) (0.06) (1.30) (1.36) 6.45
Year ended 08/31/08 11.17 0.11(c) (1.37) (1.26) -- (0.05) (0.05) 9.86
Year ended 08/31/07 10.18 0.05(c) 1.10 1.15 (0.16) -- (0.16) 11.17
Year ended 08/31/06(e) 10.00 0.03 0.15 0.18 -- -- -- 10.18
- ---------------------------------------------------------------------------------------------------------------------------------
CLASS Y
Year ended 08/31/09(e) 8.29 0.12(c) (0.54) (0.42) (0.07) (1.30) (1.37) 6.50
- ---------------------------------------------------------------------------------------------------------------------------------
INVESTOR CLASS
Year ended 08/31/09 9.90 0.12(c) (2.15) (2.03) (0.07) (1.30) (1.37) 6.50
Year ended 08/31/08(e) 10.73 0.05(c) (0.88) (0.83) -- -- -- 9.90
- ---------------------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL CLASS
Year ended 08/31/09 9.91 0.13(c) (2.16) (2.03) (0.08) (1.30) (1.38) 6.50
Year ended 08/31/08 11.21 0.16(c) (1.36) (1.20) (0.05) (0.05) (0.10) 9.91
Year ended 08/31/07 10.20 0.10(c) 1.10 1.20 (0.19) -- (0.19) 11.21
Year ended 08/31/06(e) 10.00 0.05 0.15 0.20 -- -- -- 10.20
_________________________________________________________________________________________________________________________________
=================================================================================================================================
<Caption>
RATIO OF RATIO OF
EXPENSES EXPENSES
TO AVERAGE TO AVERAGE NET RATIO OF NET
NET ASSETS ASSETS WITHOUT INVESTMENT
NET ASSETS, WITH FEE WAIVERS FEE WAIVERS INCOME (LOSS)
TOTAL END OF PERIOD AND/OR EXPENSES AND/OR EXPENSES TO AVERAGE PORTFOLIO
RETURN(a) (000S OMITTED) ABSORBED ABSORBED NET ASSETS TURNOVER(b)
- -------------------------------------------------------------------------------------------------------------------
CLASS A
Year ended 08/31/09 (18.66)% $ 1,618 0.66%(d) 1.29%(d) 1.85%(d) 77%
Year ended 08/31/08 (11.03) 951 0.75 1.93 1.34 118
Year ended 08/31/07 11.60 1,532 1.02 6.88 0.67 79
Year ended 08/31/06(e) 1.90 985 1.06(f) 10.44(f) 0.95(f) 25
- -------------------------------------------------------------------------------------------------------------------
CLASS B
Year ended 08/31/09 (19.10) 211 1.41(d) 2.04(d) 1.10(d) 77
Year ended 08/31/08 (11.71) 165 1.50 2.68 0.59 118
Year ended 08/31/07 10.74 847 1.77 7.63 (0.08) 79
Year ended 08/31/06(e) 1.60 640 1.81(f) 11.19(f) 0.20(f) 25
- -------------------------------------------------------------------------------------------------------------------
CLASS C
Year ended 08/31/09 (19.10) 254 1.41(d) 2.04(d) 1.10(d) 77
Year ended 08/31/08 (11.71) 249 1.50 2.68 0.59 118
Year ended 08/31/07 10.74 1,043 1.77 7.63 (0.08) 79
Year ended 08/31/06(e) 1.60 625 1.81(f) 11.19(f) 0.20(f) 25
- -------------------------------------------------------------------------------------------------------------------
CLASS R
Year ended 08/31/09 (18.70) 77 0.91(d) 1.54(d) 1.60(d) 77
Year ended 08/31/08 (11.32) 53 1.00 2.18 1.09 118
Year ended 08/31/07 11.33 684 1.27 7.13 0.42 79
Year ended 08/31/06(e) 1.80 611 1.31(f) 10.69(f) 0.70(f) 25
- -------------------------------------------------------------------------------------------------------------------
CLASS Y
Year ended 08/31/09(e) (2.50) 211 0.43(d)(f) 1.07(d)(f) 2.08(d)(f) 77
- -------------------------------------------------------------------------------------------------------------------
INVESTOR CLASS
Year ended 08/31/09 (18.43) 88,674 0.66(d) 1.29(d) 1.85(d) 77
Year ended 08/31/08(e) (7.73) 136,838 0.60(f) 1.10(f) 1.49(f) 118
- -------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL CLASS
Year ended 08/31/09 (18.32) 22,128 0.41(d) 0.89(d) 2.10(d) 77
Year ended 08/31/08 (10.79) 29,374 0.50 1.57 1.59 118
Year ended 08/31/07 11.85 942 0.77 6.55 0.92 79
Year ended 08/31/06(e) 2.00 612 0.80(f) 10.14(f) 1.21(f) 25
___________________________________________________________________________________________________________________
===================================================================================================================
</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. For the period ending August
31, 2008, the portfolio turnover calculation excludes the value of
securities purchased of $152,787,103 and sold of $149,849,402 in effort to
realign the Fund's portfolio holdings after the reorganization of AIM S&P
500 Index Fund into the Fund.
(c) Calculated using average shares outstanding.
(d) Ratios are based on average daily net assets (000's omitted) of $1,702,
$247, $887, $58, $221, $86,189 and $19,943 for Class A, Class B, Class C,
Class R, Class Y, Investor Class and Institutional Class shares,
respectively.
(e) Commencement date of March 31, 2006 for Class A, Class B, Class C and
Institutional Class shares. Commencement date of October 3, 2008 and April
25, 2008 for Class Y and Investor Class shares, respectively.
(f) Annualized.
22 AIM STRUCTURED CORE FUND
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Trustees of AIM Counselor Series Trust
and Shareholders of AIM Structured Core 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 Structured Core Fund (one of
the funds constituting AIM Counselor Series Trust, hereafter referred to as the
"Fund") at August 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 periods indicated, 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 August 31, 2009 by
correspondence with the custodian and brokers, provide a reasonable basis for
our opinion.
PRICEWATERHOUSECOOPERS LLP
October 16, 2009
Houston, Texas
23 AIM STRUCTURED CORE 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. The
example is based on an investment of $1,000 invested at the beginning of the
period and held for the entire period March 1, 2009 through August 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 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 (03/01/09) (08/31/09)(1) PERIOD(2,4) (08/31/09) PERIOD(2,5) RATIO(3)
- ---------------------------------------------------------------------------------------------------
A $1,000.00 $1,370.80 $4.36 $1,021.53 $3.72 0.73%
- ---------------------------------------------------------------------------------------------------
B 1,000.00 1,364.00 8.82 1,017.74 7.53 1.48
- ---------------------------------------------------------------------------------------------------
C 1,000.00 1,364.00 8.82 1,017.74 7.53 1.48
- ---------------------------------------------------------------------------------------------------
R 1,000.00 1,369.40 5.85 1,020.27 4.99 0.98
- ---------------------------------------------------------------------------------------------------
Y 1,000.00 1,371.30 2.87 1,022.79 2.45 0.48
- ---------------------------------------------------------------------------------------------------
Investor 1,000.00 1,371.30 4.36 1,021.53 3.72 0.73
- ---------------------------------------------------------------------------------------------------
</Table>
(1) The actual ending account value is based on the actual total return of the
Fund for the period March 1, 2009 through August 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
184/365 to reflect the most recent fiscal half year.
(3) Effective July 1, 2009, the fund's advisor has contractually agreed to waive
advisory fees and/or reimburse expenses to the extent necessary to limit
Total Annual Fund Operating Expenses of Class A, Class B, Class C, Class R,
Class Y, and Investor Class shares to 1.00%, 1.75%, 1.75%, 1.25%, 0.75% and
1.00% of the 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 1.00%, 1.75%, 1.75%, 1.25%, 0.75%
and 1.00% for Class A, Class B, Class C, Class R, Class Y and Investor
Class, respectively.
(4) The actual expenses paid restated if the changes discussed above had been in
effect throughout the entire most recent fiscal half year are $5.98, $10.43,
$10.43, $7.47, $4.48 and $5.98 for Class A, Class B, Class C, Class R, Class
Y and Investor Class 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
184/365 to reflect a one-half year period. The hypothetical expenses paid
restated as if the changes discussed above in footnote 3 had been in effect
throughout the most recent fiscal half year are $5.09, $8.89, $8.89, $6.36,
$3.82 and $5.09 for Class A, Class B, Class C, Class R, Class Y and Investor
Class shares, respectively.
24 AIM STRUCTURED CORE FUND
Supplement to Annual Report dated 8/31/09
AIM STRUCTURED CORE FUND
<Table>
INSTITUTIONAL CLASS SHARES ------------------------------------------ Please note that past performance is
AVERAGE ANNUAL TOTAL RETURNS not indicative of future results. More
The following information has been For periods ended 8/31/09 recent returns may be more or less than
prepared to provide Institutional Class those shown. All returns assume
shareholders with a performance overview Inception (3/31/06) -5.26% reinvestment of distributions at NAV.
specific to their holdings. Institutional ------------------------------------------ Investment return and principal value will
Class shares are offered exclusively to 1 Year -18.32 fluctuate so your shares, when redeemed,
institutional investors, including defined ------------------------------------------ may be worth more or less than their
contribution plans that meet certain original cost. See full report for
criteria. ------------------------------------------ information on comparative benchmarks.
AVERAGE ANNUAL TOTAL RETURNS Please consult your Fund prospectus for
more information. For the most current
For periods ended 6/30/09, the most recent month-end performance, please call
calendar quarter-end 800 451 4246 or visit invescoaim.com.
Inception (3/31/06) -8.49% (1) Total annual operating expenses less
------------------------------------------ any contractual fee waivers and/or
1 Year -26.73 expense reimbursements by the advisor
------------------------------------------ in effect through at least June 30,
2010. See current prospectus for more
Institutional Class shares have no sales information.
charge; therefore, performance is at net
asset value (NAV). Performance of
Institutional Class shares will differ
from performance of other share classes
primarily due to differing sales charges
and class expenses.
The net 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 0.75%.(1) 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 0.86%. 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.
Had the advisor not waived fees and/or
reimbursed expenses, performance would
have been lower.
- ------------------------------------------
NASDAQ SYMBOL SCIUX
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 -- NOT FOR USE WITH THE PUBLIC THIS MATERIAL IS FOR
INSTITUTIONAL INVESTOR USE ONLY AND MAY NOT BE QUOTED, REPRODUCED, SHOWN TO THE PUBLIC [INVESCO AIM LOGO]
OR USED IN WRITTEN FORM AS SALES LITERATURE FOR PUBLIC USE. - service mark -
invescoaim.com SCOR-INS-1 Invesco Aim Distributors, Inc.
</Table>
Supplement to Annual Report dated 8/31/09
AIM STRUCTURED CORE FUND
<Table>
RESULTS OF A $10,000 INVESTMENT -- INSTITUTIONAL CLASS SHARES SINCE INCEPTION
Fund and index data from 3/31/06
[PERFORMANCE CHART]
AIM
STRUCTURED
CORE FUND- LIPPER
INSTITUTIONAL LARGE-CAP
CLASS S&P 500 CORE FUNDS
SHARES INDEX(1) INDEX(1)
------------- -------- ----------
3/31/2006 10000 10000 10000
04/06 10040 10134 10104
05/06 9740 9843 9798
06/06 9840 9856 9806
07/06 9710 9917 9772
08/06 9940 10152 10015
09/06 10251 10414 10226
10/06 10711 10753 10567
11/06 10921 10957 10774
12/06 10881 11111 10883
01/07 11233 11279 11059
02/07 10932 11059 10868
03/07 11133 11182 10977
04/07 11495 11677 11434
05/07 11997 12084 11824
06/07 11706 11884 11681
07/07 11425 11516 11352
08/07 11525 11688 11482
09/07 11967 12125 11897
10/07 12568 12318 12154
11/07 12237 11802 11671
12/07 12426 11721 11604
01/08 11068 11018 10925
02/08 10850 10660 10642
03/08 10757 10614 10503
04/08 11233 11131 11020
05/08 11493 11275 11220
06/08 10788 10325 10351
07/08 10653 10239 10204
08/08 10601 10387 10335
09/08 9140 9462 9381
10/08 7430 7873 7791
11/08 6756 7308 7175
12/08 6979 7385 7302
01/09 6540 6763 6736
02/09 6017 6046 6084
03/09 6592 6574 6599
04/09 7219 7203 7270
05/09 7480 7605 7702
06/09 7532 7621 7693
07/09 8096 8196 8283
08/09 8313 8492 8571
(1) Lipper Inc.
Past performance cannot guarantee shown in the chart and table(s) does not is that of the Fund's Class A, B, C and R
comparable future results. reflect deduction of taxes a shareholder shares. The performance of the Fund's
would pay on Fund distributions or sale of other share classes will differ primarily
The data shown in the chart above Fund shares. Performance of the indexes due to different sales charge structures
includes reinvested distributions and Fund does not reflect the effects of taxes. and class expenses, and may be greater
expenses including management fees. Index than or less than the performance of the
results include reinvested dividends. The performance data shown in the chart Fund's Institutional Class shares shown in
Performance of an index of funds reflects above is that of the Fund's institutional the chart above.
fund expenses and management fees; share class. The performance data shown in
performance of a market index does not. the chart in the annual report
Performance
- ---------------------------------------------------------------------------------------
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 -- NOT FOR USE WITH THE PUBLIC THIS MATERIAL IS FOR
INSTITUTIONAL INVESTOR USE ONLY AND MAY NOT BE QUOTED, REPRODUCED, SHOWN TO THE PUBLIC [INVESCO AIM LOGO]
OR USED IN WRITTEN FORM AS SALES LITERATURE FOR PUBLIC USE. - service mark -
invescoaim.com SCOR-INS-1 Invesco Aim Distributors, Inc.
</Table>
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 March 1, 2009 through August 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 (03/01/09) (08/31/09)(1) PERIOD(2,4) (08/31/09) PERIOD(2,5) RATIO(3)
- -----------------------------------------------------------------------------------------------------------
Institutional $1,000.00 $1,371.30 $2.87 $1,022.79 $2.45 0.48%
- -----------------------------------------------------------------------------------------------------------
</Table>
(1) The actual ending account value is based on the actual total return of the
Fund for the period March 1, 2009 through August 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
184/365 to reflect the most recent fiscal half year.
(3) Effective July 1, 2009, the fund's advisor has contractually 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
0.75% of average daily net assets. The annualized expense ratio restated as
if this agreement had been in effect throughout the entire most recent
fiscal half year is 0.75% for the Institutional Class shares.
(4) The actual expenses paid restated if the changes discussed above had been in
effect throughout the entire most recent fiscal half year is $4.48 for the
Institutional Class shares.
(5) The hypothetical expenses paid restated as if the changes discussed above in
footnote 3 had been in effect throughout the entire most recent fiscal half
year is $3.82 for the Institutional Class shares.
AIM STRUCTURED CORE FUND
<Table>
- ------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS
The Board of Trustees (the Board) of AIM strategies and limitations of these funds. the year as part of their ongoing
Counselor Series Trust is required under oversight of the Fund, and did not
the Investment Company Act of 1940 to In addition to their meetings identify any particular factor that was
approve annually the renewal of the AIM throughout the year, the Sub-Committees controlling. Each Trustee may have
Structured Core Fund (the Fund) investment meet at designated contract renewal evaluated the information provided
advisory agreement with Invesco Aim meetings each year to conduct an in-depth differently from another Trustee and
Advisors, Inc. (Invesco Aim) and the review of the performance, fees, expenses, attributed different weight to the various
Master Intergroup Sub-Advisory Contract and other matters related to their factors. The Trustees recognized that the
for Mutual Funds (the sub-advisory assigned funds. During the contract advisory arrangements and resulting
contracts) with Invesco Asset Management renewal process, the Trustees receive advisory fees for the Fund and the other
Deutschland GmbH, Invesco Asset Management comparative performance and fee data AIM Funds are the result of years of
Limited, Invesco Asset Management (Japan) regarding the AIM Funds prepared by an review and negotiation between the
Limited, Invesco Australia Limited, independent company, Lipper, Inc. Trustees and Invesco Aim, that the
Invesco Global Asset Management (N.A.), (Lipper), under the direction and Trustees may focus to a greater extent on
Inc., Invesco Hong Kong Limited, Invesco supervision of the Senior Officer who also certain aspects of these arrangements in
Institutional (N.A.), Inc., Invesco Senior prepares a separate analysis of this some years than in others, and that the
Secured Management, Inc. and Invesco information for the Trustees. Each Trustees' deliberations and conclusions in
Trimark Ltd. (collectively, the Affiliated Sub-Committee then makes recommendations a particular year may be based in part on
Sub-Advisers). During contract renewal to the Investments Committee regarding the their deliberations and conclusions
meetings held on June 16-17, 2009, the fees and expenses of their assigned funds. regarding these same arrangements
Board as a whole, and the disinterested or The Investments Committee considers each throughout the year and in prior years.
"independent" Trustees voting separately, Sub-Committee's recommendations and makes
approved the continuance of the Fund's its own recommendations regarding the fees The discussion below serves as a
investment advisory agreement and the and expenses of the AIM Funds to the full summary of the Senior Officer's
sub-advisory contracts for another year, Board. The Investments Committee also independent written evaluation with
effective July 1, 2009. In doing so, the considers each Sub-Committee's respect to the Fund's investment advisory
Board determined that the Fund's recommendations in making its annual agreement as well as a discussion of the
investment advisory agreement and the recommendation to the Board whether to material factors and related conclusions
sub-advisory contracts are in the best approve the continuance of each AIM Fund's that formed the basis for the Board's
interests of the Fund and its shareholders investment advisory agreement and approval of the Fund's investment advisory
and that the compensation to Invesco Aim sub-advisory contracts for another year. agreement and sub-advisory contracts.
and the Affiliated Sub-Advisers under the Unless otherwise stated, information set
Fund's investment advisory agreement and The independent Trustees met separately forth below is as of June 17, 2009, and
sub-advisory contracts is fair and during their evaluation of the Fund's does not reflect any changes that may have
reasonable. investment advisory agreement and occurred since that date, including but
sub-advisory contracts with independent not limited to changes to the Fund's
THE BOARD'S FUND EVALUATION PROCESS legal counsel. The independent Trustees performance, advisory fees, expense
were also assisted in their annual limitations and/ or fee waivers.
The Board's Investments Committee has evaluation of the Fund's investment
established three Sub-Committees that are advisory agreement by the Senior Officer. FACTORS AND CONCLUSIONS AND SUMMARY OF
responsible for overseeing the management One responsibility of the Senior Officer INDEPENDENT WRITTEN FEE EVALUATION
of a number of the series portfolios of is to manage the process by which the AIM
the AIM Funds. This Sub-Committee Funds' proposed management fees are A. Nature, Extent and Quality of
structure permits the Trustees to focus on negotiated during the annual contract Services Provided by Invesco Aim
the performance of the AIM Funds that have renewal process to ensure that they are
been assigned to them. The Sub-Committees negotiated in a manner that is at arms' The Board reviewed the advisory services
meet throughout the year to review the length and reasonable. Accordingly, the provided to the Fund by Invesco Aim under
performance of their assigned funds, and Senior Officer must either supervise a the Fund's investment advisory agreement,
the Sub-Committees review monthly and competitive bidding process or prepare an the performance of Invesco Aim in
quarterly comparative performance independent written evaluation. The Senior providing these services, and the
information and periodic asset flow data Officer recommended that an independent credentials and experience of the officers
for their assigned funds. These materials written evaluation be provided and, at the and employees of Invesco Aim who provide
are prepared under the direction and direction of the Board, prepared an these services. The Board's review of the
supervision of the independent Senior independent written evaluation. qualifications of Invesco Aim to provide
Officer, an officer of the AIM Funds who these services included the Board's
reports directly to the independent During the annual contract renewal consideration of Invesco Aim's portfolio
Trustees. Over the course of each year, process, the Board considered the factors and product review process, various back
the Sub-Committees meet with portfolio discussed below in evaluating the fairness office support functions provided by
managers for their assigned funds and and reasonableness of the Fund's Invesco Aim and its affiliates, and
other members of management and review investment advisory agreement and Invesco Aim's equity and fixed income
with these individuals the performance, sub-advisory contracts. The Board trading operations. The Board concluded
investment objective(s), policies, considered all of the information provided that the nature, extent and quality of the
to them, including information provided at advisory services provided to the Fund by
their meetings throughout Invesco Aim are appropriate and that
Invesco Aim
25 AIM STRUCTURED CORE FUND continued
</Table>
<Table>
currently is providing satisfactory ers by permitting Invesco Aim to utilize group that was publicly available as of
advisory services in accordance with the the additional resources and talent of the the end of the past calendar year. The
terms of the Fund's investment advisory Affiliated Sub-Advisers in managing the Board noted that some comparative data was
agreement. In addition, based on their Fund. at least one year old and that other data
ongoing meetings throughout the year with did not reflect the market downturn that
the Fund's portfolio manager or managers, C. Fund Performance occurred in the fourth quarter of 2008.
the Board concluded that these individuals
are competent and able to continue to The Board considered Fund performance as a The Board compared the Fund's
carry out their responsibilities under the relevant factor in considering whether to sub-advisory fee rate to the effective fee
Fund's investment advisory agreement. approve the investment advisory agreement rates (the advisory fee after any advisory
as well as the sub-advisory contracts for fee waivers and before any expense
In determining whether to continue the the Fund, as Invesco Institutional limitations/waivers) of numerous
Fund's investment advisory agreement, the currently manages assets of the Fund. separately managed accounts/wrap accounts
Board considered the prior relationship advised or sub-advised by Invesco
between Invesco Aim and the Fund, as well The Board noted that the Fund recently Institutional. The Board noted that the
as the Board's knowledge of Invesco Aim's began operations and that only two Fund's sub-advisory fee rate was generally
operations, and concluded that it is calendar years of comparative performance at or below the rates for the separately
beneficial to maintain the current data was available. The Board compared the managed accounts/ wrap accounts advised or
relationship, in part, because of such Fund's performance during the one and two sub-advised by Invesco Institutional. The
knowledge. The Board also considered the year periods to the performance of all Board considered that management of the
steps that Invesco Aim and its affiliates funds in the Lipper performance universe separately managed accounts/wrap accounts
continue to take to improve the quality that are not managed by Invesco Aim or an by Invesco Institutional involves
and efficiency of the services they Affiliated Sub-Adviser and against the different levels of services and different
provide to the AIM Funds in the areas of Lipper Large Cap Core Funds Index. The operational and regulatory requirements
investment performance, product line Board noted that the Fund's performance than Invesco Aim's and Invesco
diversification, distribution, fund was in the third quintile of its Institutional's management of the Fund.
operations, shareholder services and performance universe for the one and two The Board concluded that these differences
compliance. The Board concluded that the year periods (the first quintile being the are appropriately reflected in the fee
quality and efficiency of the services best performing funds and the fifth structure for the Fund.
Invesco Aim and its affiliates provide to quintile being the worst performing
the AIM Funds in each of these areas funds). The Board noted that the Fund's The Board noted that Invesco Aim
support the Board's approval of the performance was above the performance of contractually agreed to continue to waive
continuance of the Fund's investment the Index for the one year period and fees and/or limit expenses of the Fund
advisory agreement. below the performance of the Index for the through at least June 30, 2010 in an
two year period. Although the independent amount necessary to limit total annual
B. Nature, Extent and Quality of written evaluation of the Fund's Senior operating expenses to a specified
Services Provided by Affiliated Officer only considered Fund performance percentage of average daily net assets for
Sub-Advisers through the most recent calendar year, the each class of the Fund. The Board noted
Board also reviewed more recent Fund that the specified percentage before the
The Board reviewed the services performance and this review did not change waiver becomes effective has been
provided by the Affiliated Sub-Advisers their conclusions. The Board noted that, increased effective July 1, 2009, and that
under the sub-advisory contracts and the in response to the Board's focus on fund the waiver will have a smaller impact on
credentials and experience of the officers performance, Invesco Aim has taken a expenses during the coming year. The Board
and employees of the Affiliated number of actions intended to improve the also noted that Invesco Aim has agreed to
Sub-Advisers who provide these services. investment process for the funds. reduce the per account transfer agent fee
The Board concluded that the nature, for all the retail funds, including the
extent and quality of the services D. Advisory and Sub-Advisory Fees and Fund, effective July 1, 2009.
provided by the Affiliated Sub-Advisers Fee Waivers
are appropriate. The Board noted that the The Board also considered the services
Affiliated Sub-Advisers, which have The Board compared the Fund's contractual provided by the Affiliated Sub-Advisers
offices and personnel that are advisory fee rate to the contractual pursuant to the sub-advisory contracts and
geographically dispersed in financial advisory fee rates of funds in the Fund's the services provided by Invesco Aim
centers around the world, can provide Lipper expense group that are not managed pursuant to the Fund's advisory agreement,
research and other information and make by Invesco Aim or an Affiliated as well as the allocation of fees between
recommendations on the markets and Sub-Adviser, at a common asset level. The Invesco Aim and the Affiliated
economies of various countries and Board noted that the Fund's contractual Sub-Advisers pursuant to the sub-advisory
securities of companies located in such advisory fee rate was below the median contracts. The Board noted that the
countries or on various types of contractual advisory fee rate of funds in sub-advisory fees have no direct effect on
investments and investment techniques. The its expense group. The Board also reviewed the Fund or its shareholders, as they are
Board noted that investment decisions for the methodology used by Lipper in paid by Invesco Aim to the Affiliated
the Fund are made by Invesco Institutional determining contractual fee rates, which Sub-Advisers, and that Invesco Aim and the
(N.A.), Inc. (Invesco Institutional). The includes using audited financial data from Affiliated Sub-Advisers are affiliates.
Board concluded that the sub-advisory the most recent annual report of each fund
contracts benefit the Fund and its in the expense After taking account of the Fund's
sharehold- contractual advisory fee rate, the
26 AIM STRUCTURED CORE FUND continued
</Table>
<Table>
contractual sub-advisory fee rate, the Invesco Aim has the financial resources market funds attributable to such
comparative advisory fee information necessary to fulfill these obligations. investments, although Invesco Aim has
discussed above, expense limitations and The Board also considered whether each contractually agreed to waive through at
other relevant factors, the Board Affiliated Sub-Adviser is financially least June 30, 2010, the advisory fees
concluded that the Fund's advisory and sound and has the resources necessary to payable by the Fund in an amount equal to
sub-advisory fees are fair and reasonable. perform its obligations under the 100% of the net advisory fee Invesco Aim
sub-advisory contracts, and concluded that receives from the affiliated money market
E. Economies of Scale and Breakpoints each Affiliated Sub-Adviser has the funds with respect to the Fund's
financial resources necessary to fulfill investment in the affiliated money market
The Board considered the extent to which these obligations. funds of uninvested cash, but not cash
there are economies of scale in the collateral. The Board concluded that the
provision of advisory services to the G. Collateral Benefits to Invesco Aim Fund's investment of uninvested cash and
Fund. The Board also considered whether and its Affiliates cash collateral from any securities
the Fund benefits from such economies of lending arrangements in the affiliated
scale through contractual breakpoints in The Board considered various other money market funds is in the best
the Fund's advisory fee schedule. The benefits received by Invesco Aim and its interests of the Fund and its
Board noted that the Fund's contractual affiliates resulting from Invesco Aim's shareholders.
advisory fee schedule includes seven relationship with the Fund, including the
breakpoints, but that due to the Fund's fees received by Invesco Aim and its
asset level at the end of the past affiliates for their provision of
calendar year, the Fund has yet to benefit administrative, transfer agency and
from the breakpoints. The Board also noted distribution services to the Fund. The
that the Fund shares directly in economies Board considered the performance of
of scale through lower fees charged by Invesco Aim and its affiliates in
third party service providers based on the providing these services and the
combined size of all of the AIM Funds and organizational structure employed by
affiliates. Invesco Aim and its affiliates to provide
these services. The Board also considered
F. Profitability and Financial that these services are provided to the
Resources Fund pursuant to written contracts that
are reviewed and approved on an annual
The Board reviewed information from basis by the Board. The Board concluded
Invesco Aim concerning the costs of the that Invesco Aim and its affiliates are
advisory and other services that Invesco providing these services in a satisfactory
Aim and its affiliates provide to the Fund manner and in accordance with the terms of
and the profitability of Invesco Aim and their contracts, and are qualified to
its affiliates in providing these continue to provide these services to the
services. The Board also reviewed Fund.
information concerning the financial
condition of Invesco Aim and its The Board considered the benefits
affiliates. The Board reviewed with realized by Invesco Aim and the Affiliated
Invesco Aim the methodology used to Sub-Advisers as a result of portfolio
prepare the profitability information. The brokerage transactions executed through
Board considered the overall profitability "soft dollar" arrangements. The Board
of Invesco Ltd., the ultimate parent of noted that soft dollar arrangements shift
Invesco Aim and the Affiliated the payment obligation for research and
Sub-Advisers, and of Invesco Aim, as well execution services from Invesco Aim and
as the profitability of Invesco Aim in the Affiliated Sub-Advisers to the funds
connection with managing the Fund. The and therefore may reduce Invesco Aim's and
Board noted that Invesco Aim continues to the Affiliated Sub-Advisers' expenses. The
operate at a net profit, although the Board concluded that Invesco Aim's and the
reduction of assets under management as a Affiliated Sub-Advisers' soft dollar
result of market movements and the arrangements are appropriate. The Board
increase in voluntary fee waivers for also concluded that, based on their review
affiliated money market funds have reduced and representations made by the Chief
the profitability of Invesco Aim and its Compliance Officer of Invesco Aim, these
affiliates. The Board concluded that the arrangements are consistent with
Fund's fees are fair and reasonable, and regulatory requirements.
that the level of profits realized by
Invesco Aim and its affiliates from The Board considered the fact that the
providing services to the Fund is not Fund's uninvested cash and cash collateral
excessive in light of the nature, quality from any securities lending arrangements
and extent of the services provided. The may be invested in money market funds
Board considered whether Invesco Aim is advised by Invesco Aim pursuant to
financially sound and has the resources procedures approved by the Board. The
necessary to perform its obligations under Board noted that Invesco Aim will receive
the Fund's investment advisory agreement, advisory fees from these affiliated money
and concluded that
27 AIM STRUCTURED CORE FUND
</Table>
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 August 31,
2009:
<Table>
<Caption>
FEDERAL AND STATE INCOME TAX
----------------------------
Long-Term Capital Gain Dividends $20,130,471
Qualified Dividend Income* 100.00%
Corporate Dividends Received Deduction* 100.00%
U.S. Treasury Obligations* 0.11%
</Table>
* The above percentages are based on ordinary income dividends paid to
shareholders during the Fund's fiscal year.
28 AIM STRUCTURED CORE FUND
Trustees and Officers
The address of each trustee and officer of AIM Counselor Series Trust (the
"Trust"), is 11 Greenway Plaza, Suite 100, Houston, Texas 77046-1173. Each
trustee oversees 105 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. Flanagan(1) -- 1960 2007 Executive Director, Chief Executive Officer and President, None
Trustee Invesco Ltd. (ultimate parent of Invesco Aim and a global
investment management firm); Chairman, Invesco Aim Advisors,
Inc. (registered investment advisor); Trustee, The AIM
Family of Funds(R); 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); Director, Invesco Ltd. and Chairman, Investment
Company Institute
- ------------------------------------------------------------------------------------------------------------------------------------
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 Executive Officer President, 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 registered transfer agent) and AIM GP
Canada Inc. (general partner for limited partnerships);
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
(registered investment advisor and registered transfer
agent) and Invesco Trimark Dealer Inc. (registered broker
dealer); Trustee, President and Principal Executive Officer,
The AIM Family of Funds(R) (other than AIM Treasurer's
Series Trust and Short-Term Investments Trust); Trustee and
Executive Vice President, The AIM Family of Funds(R) (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; Senior Managing Director,
Invesco Holding Company Limited; Trustee and Executive Vice
President, Tax-Free Investments Trust; Director and
Chairman, Fund Management Company (former registered broker
dealer); President and Principal Executive Officer, The AIM
Family of Funds(R) (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.
- ------------------------------------------------------------------------------------------------------------------------------------
INDEPENDENT TRUSTEES
- ------------------------------------------------------------------------------------------------------------------------------------
Bruce L. Crockett -- 1944 2003 Chairman, Crockett Technology Associates (technology ACE Limited (insurance
Trustee and Chair consulting company) company); Captaris, Inc.
(unified messaging
provider); and
Investment Company
Institute
- ------------------------------------------------------------------------------------------------------------------------------------
Bob R. Baker -- 1936 1983 Retired None
Trustee
- ------------------------------------------------------------------------------------------------------------------------------------
Frank S. Bayley -- 1939 2003 Retired None
Trustee
Formerly: Director, Badgley Funds, Inc. (registered
investment company) (2 portfolios)
- ------------------------------------------------------------------------------------------------------------------------------------
James T. Bunch -- 1942 2000 Founder, Green, Manning & Bunch Ltd., (investment banking Board of Governors,
Trustee firm) Western Golf
Association/Evans
Scholars Foundation and
Executive Committee,
United States Golf
Association
- ------------------------------------------------------------------------------------------------------------------------------------
Albert R. Dowden -- 1941 2003 Director of a number of public and private business Board of Nature's
Trustee corporations, including the Boss Group Ltd. (private Sunshine Products, Inc.
investment and management); Continental Energy Services, LLC
(oil and gas pipeline service); Reich & Tang Funds
(registered investment 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.; Director, Annuity and Life Re
(Holdings), Ltd. (reinsurance company); Senior Vice
President, AB Volvo; Director of various public and private
corporations
- ------------------------------------------------------------------------------------------------------------------------------------
Jack M. Fields -- 1952 2003 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), Discovery Global Education Fund (non-profit)
and Cross Timbers Quail Research Ranch (non-profit)
Formerly: Chief Executive Officer, Texana Timber LP
(sustainable forestry company)
- ------------------------------------------------------------------------------------------------------------------------------------
Carl Frischling -- 1937 2003 Partner, law firm of Kramer Levin Naftalis and Frankel LLP Director, Reich & Tang
Trustee Funds (16 portfolios)
- ------------------------------------------------------------------------------------------------------------------------------------
Prema Mathai-Davis -- 1950 2003 Retired None
Trustee
- ------------------------------------------------------------------------------------------------------------------------------------
Lewis F. Pennock -- 1942 2003 Partner, law firm of Pennock & Cooper None
Trustee
- ------------------------------------------------------------------------------------------------------------------------------------
Larry Soll -- 1942 1997 Retired None
Trustee
- ------------------------------------------------------------------------------------------------------------------------------------
Raymond Stickel, Jr. -- 1944 2005 Retired None
Trustee
Formerly: Director, Mainstay 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.
T-1
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 N/A
Senior Vice President and of Funds(R) Formerly: Director of Compliance and Assistant
Senior Officer 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 N/A
Senior Vice President, Chief Counsel, Invesco Aim Management Group, Inc., Invesco Aim
Legal Officer and Secretary Advisors, Inc. 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(R); 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 and General
Counsel, 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 N/A
Vice President President, The AIM Family of Funds(R)
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(R); 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, N/A
Vice President Invesco Ltd.; Director, 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(R)
Formerly: Senior Managing Director and Secretary, Invesco
North American Holdings, Inc.; Vice President and Secretary,
IVZ, Inc. and Invesco Group Services, 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. and Invesco Aim Investment
Services, Inc.; Senior Vice President, Chief Legal Officer
and Secretary, The AIM Family of Funds(R); Director and Vice
President, INVESCO Distributors, Inc.; and Chief Executive
Officer and President, INVESCO Funds Group, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Sheri Morris -- 1964 2003 Vice President, Treasurer and Principal Financial Officer, N/A
Vice President, Treasurer and The AIM Family of Funds(R); and Vice President, Invesco Aim
Principal Financial Officer Advisors, Inc., Invesco Aim Capital Management, Inc. and
Invesco Aim Private Asset Management Inc.
Formerly: Assistant Vice President and Assistant Treasurer,
The AIM Family of Funds(R) and Assistant Vice President,
Invesco Aim Advisors, Inc., Invesco Aim Capital Management,
Inc. and Invesco Aim Private Asset Management, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Karen Dunn Kelley -- 1960 2003 Head of Invesco's World Wide Fixed Income and Cash N/A
Vice President Management Group; Vice President, Invesco Institutional
(N.A.), Inc. (registered investment advisor); 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, Invesco Institutional (N.A.), Inc.
(registered investment advisor); and Director, Invesco
Mortgage Capital Inc.; Vice President, The AIM Family of
Funds(R) (other than AIM Treasurer's Series Trust and
Short-Term Investments Trust); and President and Principal
Executive Officer, The AIM Family of Funds(R) (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(R) (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 N/A
Anti-Money Laundering Advisors, Inc., Invesco Aim Capital Management, Inc.,
Compliance Officer Invesco Aim Distributors, Inc., Invesco Aim Investment
Services, Inc., Invesco Aim Private Asset Management, Inc.
and The AIM Family of Funds(R)
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.; N/A
Chief Compliance Officer Senior Vice President and Chief Compliance Officer, Invesco
Aim Advisors, Inc. and Invesco Aim Capital Management, Inc.;
Chief Compliance Officer, The AIM Family of Funds(R),
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, Inc. Invesco Aim Distributors, Inc. PricewaterhouseCoopers LLP
Suite 100 11 Greenway Plaza 11 Greenway Plaza 1201 Louisiana Street
Houston, TX 77046-1173 Suite 100 Suite 100 Suite 2900
Houston, TX 77046-1173 Houston, TX 77046-1173 Houston, TX 77002-5678
COUNSEL TO THE FUND
Stradley Ronon Stevens & COUNSEL TO THE TRANSFER AGENT CUSTODIAN
Young, LLP INDEPENDENT TRUSTEES Invesco Aim Investment Services, Inc. State Street Bank and Trust
2600 One Commerce Square Kramer, Levin, Naftalis & Frankel LLP P.O. Box 4739 Company
Philadelphia, PA 19103 1177 Avenue of the Americas Houston, TX 77210-4739 225 Franklin
New York, NY 10036-2714 Boston, MA 02110-2801
</Table>
T-2
<Table>
(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 number - EFFICIENT. Stop waiting for regular mail. Your documents
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
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.
- ------------------------------------------------------------------------------------------------------------------------------------
IMPORTANT NOTICE REGARDING DELIVERY OF SECURITY HOLDER DOCUMENTS
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the
same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise.
If you do not want the mailing of these documents to be combined with those for other members of your household, please contact
Invesco Aim Investment Services, Inc. at 800 959 4246 or contact your financial institution. We will begin sending you individual
copies for each account within thirty days after receiving your request.
- ------------------------------------------------------------------------------------------------------------------------------------
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 811-09913 and 333-36074.
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, 2009, 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 January 20, 2010, 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,
exchange-traded 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.
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 Aim Private Asset Management, Inc. and Invesco [INVESCO AIM LOGO]
Global Asset Management (N.A.), Inc. will be merged into Invesco Institutional (N.A.), Inc., and the -- SERVICE MARK --
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 SCOR-AR-1 Invesco Aim Distributors, Inc.
</Table>
[INVESCO AIM LOGO] ANNUAL REPORT TO SHAREHOLDERS AUGUST 31, 2009
- service mark - AIM STRUCTURED GROWTH FUND
[GRAPHIC]
<Table>
2 Letters to Shareholders
4 Performance Summary
4 Management Discussion
6 Long-Term Fund Performance
8 Supplemental Information
9 Schedule of Investments
11 Financial Statements
14 Notes to Financial Statements
21 Financial Highlights
22 Auditor's Report
23 Fund Expenses
24 Approval of Investment Advisory and Sub-Advisory Agreements
27 Tax Information
T-1 Trustees and Officers
</Table>
<Table>
Dear Shareholders:
While the year covered by this report was difficult -- for long-time investors and veteran
[TAYLOR investment professionals alike -- economic conditions and market trends appeared much more
PHOTO] favorable at the close of the fiscal year than at its start.
The 12 months ended August 31, 2009, included a sharp market sell-off that occurred in the
second half of 2008. That downturn affected virtually all sectors, markets and investors. The
decline had a number of causes, the most immediate being unprecedented turmoil in credit
markets. Economic uncertainty prompted banks to hoard cash and reduce lending, and caused
Philip Taylor investors to shun short-term corporate debt. As a result, businesses found it difficult to fund
their day-to-day operations, and the U.S. economy -- as well as economies around the globe --
virtually froze briefly.
INCREASED COMMUNICATION
These developments prompted a greater-than-usual number of shareholders to contact me. Some of
you took the time to write a letter while others of you emailed me at phil@invescoaim.com.
Many of you sought explanations for the decline in the value of your accounts, while others asked more general questions about
when the economy might improve. Your questions, comments and suggestions gave me better insight into what was on your minds, and I
was pleased that so many of you took the time to share your thoughts with me.
As a result, Invesco Aim's investment professionals and I have increased our efforts to stay in touch with and share our views
with you. We increased the number of "Investment Perspectives" articles on our website, invescoaim.com. Through these articles,
we've tried to provide timely market commentary, general investor education information and sector updates. I hope you'll take a
moment to read them and let me know if you find them useful.
To access your Fund's latest quarterly commentary, click on "Products and Performance" at the top of our website; next, select
"Mutual Funds"; and then click on "Quarterly Commentary."
I also hope you've stayed in touch with your financial advisor. An experienced financial advisor who is familiar with your
individual investment goals, time horizon and risk tolerance can be a source of comfort and information during uncertain times. He
or she can monitor your investments to ensure they're on track and can prevent you from making impulsive short-term decisions that
may have adverse long-term consequences.
REASONS FOR OPTIMISM
The economy and equity markets reacted to a barrage of negative news during the year. Consumer spending -- which accounts for more
than two-thirds(1) of the U.S. economy -- was sluggish as unemployment rose; more workers worried about their job security; home and
portfolio values declined; and credit became more difficult to obtain.
In his semiannual monetary policy report to Congress in late July, U.S. Federal Reserve Board Chairman Ben Bernanke summarized
the stresses and strains the U.S. and global economies suffered in late 2008 and early 2009. Importantly, he suggested that the
aggressive, coordinated actions taken by governments and central banks around the world finally may be yielding results. He
testified that:
o The pace of overall economic decline appears to have slowed significantly.
o Credit availability, for consumers and businesses, has improved noticeably.
o Investors' extreme risk aversion has eased somewhat.
o The decline in housing activity appears to have moderated.
While these and other trends offer encouragement, uncertainties remain. Chairman Bernanke testified that he anticipates a gradual
recovery in 2010 with some acceleration in economic growth in 2011, together with subdued inflation over the next two years. His
considered judgment appears to be shared by investors who have begun to return, cautiously, to the equities market, causing major
U.S. stock-market indexes to bounce off their March lows.
A SINGLE FOCUS
I believe Invesco Aim is uniquely positioned to serve our clients. Our parent company, Invesco Ltd., is one of the largest(2) and
most diversified global asset managers. It provides clients with diversified investment strategies and a range of investment
products managed by distinct management teams around the world. We believe we can serve you best by focusing on one thing and doing
it well: managing your money.
Our investment professionals have managed clients' money in up markets and down markets. All of us here recognize that market
conditions change often; what will not change is our commitment to putting our clients first, helping you achieve your financial
goals and providing excellent customer service.
If you have questions about this report or your account, please contact one of our client services representatives at 800 959
4246. If you have comments for me, I encourage you to email me at phil@invescoaim.com.
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) Reuters;
(2) Pensions & Investments
2 AIM STRUCTURED GROWTH FUND
</Table>
<Table>
Dear Fellow Shareholders:
Although the economy and financial markets have shown some signs of hope, investors remain
[CROCKETT rightfully cautious. Staying with an appropriately diversified investment program focused on
PHOTO] your individual long-term goals can be a wise course in such uncertain times. We believe the
route to financial success is more like a marathon than a sprint.
Please be assured that your Board continues to oversee the AIM Funds with a strong sense of
responsibility for your money and your trust. As always, we seek to manage costs and enhance
Bruce Crockett performance in ways that put your interests first.
We are near the end of a busy 2009 proxy season, during which Invesco Aim Advisors, Inc.'s
proxy committee votes on your behalf on issues put to a shareholder vote by the companies whose
stock the Funds hold. This year, after careful case-by-case analysis by committee members and
portfolio managers, the proxy committee voted with corporate management less often than in previous years, focusing on the issues of
board independence, Say-On-Pay initiatives, and stock option re-pricing in light of the market's decline. The committee remained
committed to supporting non-binding Say-on-Pay proposals and abstaining from voting on social issues.
At its June meeting, your Board reviewed and renewed the investment advisory contracts between the AIM Funds and Invesco Aim
Advisors, Inc. You can find the results of this rigorous annual process at invescoaim.com. Go to "Products & Performance" and click
on "Investment Advisory Agreement Renewals."
The website also contains news and market information, investment education and planning information and current reports and
prospectuses for all the AIM Funds and I highly recommend it to you.
You are always welcome to contact me at bruce@brucecrockett.com with any questions or concerns you may have. We look forward to
representing you and serving you in the coming months.
Sincerely,
/s/ BRUCE L. CROCKETT
Bruce L. Crockett
Independent Chair
AIM Funds Board of Trustees
3 AIM STRUCTURED GROWTH FUND
</Table>
<Table>
- ------------------------------------------------------------------------------------------------------------------------------------
MANAGEMENT'S DISCUSSION OF FUND PERFORMANCE
- ---------------------------------------------------------------------------------------
PERFORMANCE SUMMARY volatility remain within the Fund
strategy's guidelines. We continually
For the fiscal year ended August 31, 2009, AIM Structured Growth Fund underperformed monitor the portfolio and the overall
its style-specific benchmark, the Russell 1000 Growth Index.(triangle) These results investment process is repeated on a
were largely due to stock selection in the materials and industrials sectors which monthly basis to determine which companies
hindered performance. should be bought for, or eliminated from,
the portfolio.
Your Fund's long-term performance appears later in this report.
------------------------------------------
- --------------------------------------------------------------------------------------- MARKET CONDITIONS AND YOUR FUND
FUND VS. INDEXES
The fiscal year ended August 31, 2009,
Total returns, 8/31/08 to 8/31/09, at net asset value (NAV). Performance shown does not included the worst U.S. economic downturn
include applicable contingent deferred sales charges (CDSC) or front-end sales charges, since the Great Depression.(1) An
which would have reduced performance. overheated housing market was the primary
cause of the recession. When home prices
Class A Shares -21.72% fell, financial instruments linked to that
Class B Shares -22.19 market declined in value, causing
Class C Shares -22.29 significant pressures in other areas of
Class R Shares -21.88 the economy. Beginning in the first
Class Y Shares* -21.55 quarter of 2008, gross domestic product
S&P 500 Index(triangle) (Broad Market Index) -18.25 (the total output of goods and services in
Russell 1000 Growth Index(triangle) (Style-Specific Index) -16.76 the U.S. economy) contracted in five out
Lipper Large-Cap Core Funds Index(triangle) (Peer Group Index) -18.11 of six subsequent quarters.(1)
Unemployment, which stood at 4.9% in
(triangle)Lipper Inc. January 2008, nearly doubled to 9.7% in
August 2009, as economic distress
* Share class incepted during the fiscal year. See page 7 for a detailed explanation reverberated throughout the economy.(2)
of Fund performance.
- ------------------------------------------ With this backdrop of dire economic
HOW WE INVEST stocks also may be considered. Each stock news, the large cap equity market -- as
in the universe is evaluated on four measured by the S&P 500 Index --
We manage your Fund to provide exposure to factors: company earnings momentum, price experienced two extremes over the last
large cap core equity stocks. The trend, management action and relative year, creating a "tale of two markets."
portfolio strives to outperform the S&P valuation. The scores from these four From August 31, 2008, to the market's
500 Index while minimizing the amount of factors are combined to arrive at an bottom on March 9, 2009, the S&P 500 Index
additional risk relative to the benchmark. overall alpha score (excess return fell 46.4%.(3) From March 9 through August
The Fund can be used as a long-term forecast) for each stock. Each alpha score 31, 2009, however, the S&P 500 Index
allocation to large cap stocks that is relative to the other securities within rebounded sharply, gaining 52.6%.(3)
complements other style-specific the same industry. Stocks also are
strategies within a diversified asset evaluated on a multitude of other factors Until the market low, market
allocation strategy. to develop a stock-specific risk forecast participants largely shunned investment
and transaction cost forecast. risk. Company fundamentals were subject to
Our investment process integrates the intense scrutiny; perceived instability in
following key steps: We then incorporate the alpha forecast, a company caused its stock price to
risk forecast and transaction cost decline. Leverage was shunned; cash and
o Universe development forecast using an optimizer (a software income were embraced. After March,
tool) to build a portfolio that we believe however, investors gradually became risk
o Stock rankings is an optimal balance of the stocks' consumers again and market leadership
potential return and risk. This portfolio changed abruptly.
o Risk assessment is constructed according to certain
constraints to increase the probability
o Portfolio construction that the Fund's relative performance and
o Trading
While the companies included in the
Russell 1000 Growth Index are used as a
general guide for developing the Fund's
investable universe, non-benchmark
- ------------------------------------------ ------------------------------------------ ------------------------------------------
PORTFOLIO COMPOSITION TOP FIVE INDUSTRIES* TOP 10 EQUITY HOLDINGS*
By sector
Information Technology 31.1% Computer Hardware 13.8% 1. Apple Inc. 6.4%
Health Care 22.7 Pharmaceuticals 11.8 2. International Business
Consumer Discretionary 21.4 Apparel Retail 7.8 Machines Corp. 5.6
Industrials 7.7 Biotechnology 7.0 3. Wal-Mart Stores, Inc. 4.8
Consumer Staples 5.7 Systems Software 6.6 4. Exxon Mobil Corp. 4.2
Energy 4.7 ----------------------------------------- 5. Microsoft Corp. 4.1
Utilities 2.1 Total Net Assets $86.5 million 6. Amgen Inc. 3.9
Telecommunication Services 1.4 Total Number of Holdings* 68 7. Gap, Inc. (The) 3.3
Financials 1.1 8. United Technologies Corp. 3.2
Materials 0.5 9. Texas Instruments Inc. 3.2
U.S. Treasury Bills, Money Market 10. eBay Inc. 3.1
Funds Plus Other Assets
Less Liabilities 1.6 The Fund's holdings are subject to change, and there is no assurance that the Fund will
continue to hold any particular security.
* Excluding money market fund holdings.
4 AIM STRUCTURED CORE FUND
</Table>
<Table>
As large cap stocks began to recover, severe correction and detracted from Fund JEREMY LEFKOWITZ
they were led by low-quality stocks, many performance. AK Steel was consequently
of which were the hardest-hit during the sold during the fiscal year. A similar Portfolio manager, is lead manager of AIM
collapse. Our review of data for the March pattern emerged for another materials Structured Growth Fund. He began his
through August 2009 time period showed stock, fertilizer company CF INDUSTRIES. investment career in 1968 and has been
that stocks that outperformed their This stock was also sold during the fiscal associated with Invesco Institutional
industry peers tended to be smaller, year. and/or its affiliates since 1982. Mr.
lower-priced and more illiquid. Lefkowitz earned a B.S. in industrial
Perversely, stocks that outperformed their On the positive side, our stock engineering and an M.B.A. in finance from
industry peers also tended to exhibit selection helped Fund performance in the Columbia University.
fundamental weakness. For example, financials sector, which was at the heart
companies that outperformed tended to be of the recession story. An overweight DANIEL KOSTYK
those that were expected to lose money position in insurance company AFLAC
over the coming fiscal year, had negative provided a boost to the portfolio. Chartered Financial Analyst, portfolio
cash flow coming into this period, had manager, is manager of AIM Structured
their earnings forecasts slashed by 50% or In terms of risk management, we seek to Growth Fund. He has been associated with
more by analysts, were highly levered, and minimize any style biases in the Invesco Institutional and/or its
saw their stock prices decline portfolio. Active managers typically add affiliates since 1995. Mr. Kostyk earned a
dramatically over the prior six months. value in one of or a combination of four B.S. in mechanical engineering from
These are not the type of stocks we seek areas: beta bias (relative volatility), Northwestern University in Chicago and an
to include in your Fund, because our style bias, sector/industry over/under M.B.A. in finance from the University of
research found that such stocks tend to weight and stock selection. We attempt to Chicago.
lead to long-term investing failure. add value through our stock selection
decisions. Consequently, our risk ANTHONY MUNCHAK
Regarding the results of AIM Structured management process seeks to neutralize the
Growth Fund, it is important to understand Fund's exposure relative to the benchmark Chartered Financial Analyst, portfolio
our investment process to better evaluate with regard to beta, style and manager, is manager of AIM Structured
the drivers of our relative performance sector/industry exposures. Growth Fund. He has been associated with
versus the Fund's style-specific Invesco Institutional and/or its
benchmark. We generally evaluate We thank you for your continued affiliates since 2000. Mr. Munchak earned
performance based on the impact of our investment in AIM Structured Growth Fund. a B.S. and an M.S. from Boston College. He
stock selection and risk management also earned an M.B.A. from Bentley
processes. (1) Bureau of Economic Analysis College.
Our stock selection model, based on the (2) Bureau of Labor Statistics GLEN MURPHY
four factors (company earnings momentum,
price trend, management action and (3) Lipper Inc. Chartered Financial Analyst, portfolio
relative value) that make up our alpha manager, is manager of AIM Structured
(excess return) forecast for stocks in our The views and opinions expressed in Growth Fund. He has been associated with
investment universe, was a detractor from management's discussion of Fund Invesco Institutional and/or its
Fund performance. In selecting holdings performance are those of Invesco Aim affiliates since 1995. Mr. Murphy earned a
for the Fund, we also take into account Advisors, Inc. These views and opinions B.B.A. from the University of
our risk and transaction cost forecasts. are subject to change at any time based on Massachusetts and an M.S. in finance from
We use our optimization software to assist factors such as market and economic Boston College.
in making investment decisions, based on conditions. These views and opinions may
risk and transaction cost forecasts as not be relied upon as investment advice or FRANCIS ORLANDO
well as our alpha forecast. Consequently, recommendations, or as an offer for a
while our stock selection model may particular security. The information is Chartered Financial Analyst, portfolio
identify a stock with an attractive alpha not a complete analysis of every aspect of manager, is manager of AIM Structured
forecast, the optimizer may indicate that any market, country, industry, security or Growth Fund. He has been associated with
its transaction costs are too high and/or the Fund. Statements of fact are from Invesco Institutional and/or its
its risk level is unacceptable. Placing sources considered reliable, but Invesco affiliates since 1987. Mr. Orlando earned
more of an emphasis on transaction costs Aim Advisors, Inc. makes no representation a B.B.A. from Merrimack College and an
and potential risk in making stock or warranty as to their completeness or M.B.A. from Boston College.
selections can benefit or detract from accuracy. Although historical performance
Fund performance. For the fiscal year, it is no guarantee of future results, these Assisted by the Global Quantitative
detracted from our results. insights may help you understand our Equity Research Team
investment management philosophy.
Our stock selection within the
portfolio hindered Fund performance during See important Fund and index disclosures
this fiscal year -- particularly within later in this report.
the industrials and materials sectors.
After enjoying a very strong run in 2007
and the first half of 2008, steel maker
and materials company AK STEEL suffered a
5 AIM STRUCTURED GROWTH FUND
</Table>
<Table>
- ------------------------------------------------------------------------------------------------------------------------------------
YOUR FUND'S LONG-TERM PERFORMANCE
RESULTS OF A $10,000 INVESTMENT - OLDEST SHARE CLASSES WITH SALES CHARGES SINCE INCEPTION
Fund and index data from 3/31/06
[PERFORMANCE GRAPH]
AIM AIM AIM AIM LIPPER
STRUCTURED STRUCTURED STRUCTURED STRUCTURED LARGE-CAP
GROWTH FUND- GROWTH FUND- GROWTH FUND- GROWTH FUND- RUSSELL 1000 GROWTH
CLASS A CLASS B CLASS C CLASS R GROWTH S&P 500 FUNDS
SHARES SHARES SHARES SHARES INDEX(1) INDEX(1) INDEX(1)
------------ ------------ ------------ ------------ ------------ -------- ---------
3/31/2006 9450 10000 10000 10000 10000 10000 10000
04/06 9488 10030 10030 10030 9986 10134 9984
05/06 9204 9720 9720 9730 9648 9843 9519
06/06 9299 9820 9820 9830 9610 9856 9487
07/06 9167 9680 9680 9691 9427 9917 9244
08/06 9384 9899 9899 9920 9721 10152 9458
09/06 9668 10190 10190 10220 9988 10414 9662
10/06 10103 10649 10649 10680 10339 10753 9953
11/06 10301 10849 10849 10880 10544 10957 10180
12/06 10262 10800 10800 10843 10580 11111 10234
01/07 10594 11141 11141 11183 10852 11279 10498
02/07 10300 10830 10830 10882 10648 11059 10261
03/07 10490 11020 11020 11073 10706 11182 10339
04/07 10822 11361 11361 11423 11210 11677 10758
05/07 11295 11852 11852 11923 11613 12084 11123
06/07 11021 11561 11552 11633 11440 11884 11018
07/07 10755 11271 11271 11353 11262 11516 10878
08/07 10850 11361 11361 11453 11442 11688 11057
09/07 11267 11792 11792 11883 11921 12125 11732
10/07 11826 12372 12372 12474 12327 12318 12256
11/07 11513 12032 12032 12133 11873 11802 11756
12/07 11692 12214 12214 12325 11830 11721 11767
01/08 10413 10865 10865 10967 10907 11018 10760
02/08 10198 10639 10639 10751 10691 10660 10536
03/08 10110 10547 10547 10658 10626 10614 10446
04/08 10559 10999 10999 11121 11184 11131 11090
05/08 10794 11236 11236 11368 11593 11275 11392
06/08 10140 10546 10546 10669 10758 10325 10554
07/08 10003 10401 10401 10535 10554 10239 10346
08/08 9954 10340 10340 10473 10668 10387 10374
09/08 8578 8910 8910 9033 9432 9462 9044
10/08 6968 7233 7233 7336 7772 7873 7464
11/08 6344 6585 6585 6667 7154 7308 6716
12/08 6548 6791 6791 6883 7283 7385 6896
01/09 6126 6348 6348 6450 6932 6763 6540
02/09 5646 5844 5844 5925 6411 6046 6113
03/09 6185 6400 6400 6502 6983 6574 6638
04/09 6773 7007 6997 7110 7653 7203 7342
05/09 7008 7244 7243 7367 8033 7605 7744
06/09 7058 7296 7295 7419 8122 7621 7747
07/09 7587 7830 7830 7965 8699 8196 8330
08/09 7795 7812 8036 8183 8880 8492 8495
(1) Lipper Inc.
Past performance cannot guarantee shareholder had liquidated his entire fund expenses and management fees;
comparable future results. investment in the Fund at the close of the performance of a market index does not.
reporting period and paid the applicable Performance shown in the chart and
The data shown in the chart include contingent deferred sales charges. Index table(s) does not reflect deduction of
reinvested distributions, applicable sales results include reinvested dividends, but taxes a shareholder would pay on Fund
charges and Fund expenses including they do not reflect sales charges. distributions or sale of Fund shares.
management fees. Results for Class B Performance of the peer group reflects
shares are calculated as if a hypothetical
6 AIM STRUCTURED GROWTH FUND
</Table>
<Table>
- ------------------------------------------ ------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS AVERAGE ANNUAL TOTAL RETURNS SHARES DO NOT HAVE A FRONT-END SALES
CHARGE; RETURNS SHOWN ARE AT NET ASSET
As of 8/31/09, including maximum As of 6/30/09, the most recent calendar VALUE AND DO NOT REFLECT A 0.75% CDSC THAT
applicable sales charges quarter-end, including maximum applicable MAY BE IMPOSED ON A TOTAL REDEMPTION OF
sales charges RETIREMENT PLAN ASSETS WITHIN THE FIRST
CLASS A SHARES YEAR. CLASS Y SHARES DO NOT HAVE A
CLASS A SHARES FRONT-END SALES CHARGE OR A CDSC;
Inception (3/31/06) -7.03% Inception (3/31/06) -10.16% THEREFORE, PERFORMANCE IS AT NET ASSET
1 Year -26.00 1 Year -34.20 VALUE.
CLASS B SHARES CLASS B SHARES
Inception (3/31/06) -6.97% Inception (3/31/06) -10.07% THE PERFORMANCE OF THE FUND'S SHARE
1 Year -26.08 1 Year -34.29 CLASSES WILL DIFFER PRIMARILY DUE TO
CLASS C SHARES CLASS C SHARES DIFFERENT SALES CHARGE STRUCTURES AND
Inception (3/31/06) -6.19% Inception (3/31/06) -9.25% CLASS EXPENSES.
1 Year -23.07 1 Year -31.52
CLASS R SHARES CLASS R SHARES HAD THE ADVISOR NOT WAIVED FEES AND/OR
Inception (3/31/06) -5.70% Inception (3/31/06) -8.77% REIMBURSED EXPENSES, PERFORMANCE WOULD
1 Year -21.88 1 Year -30.46 HAVE BEEN LOWER.
CLASS Y SHARES CLASS Y SHARES
Inception -5.42% Inception -8.57% (1) Total annual operating expenses less
1 Year -21.55 1 Year -30.34 any contractual fee waivers and/or
expense reimbursements by the advisor
CLASS Y SHARES' INCEPTION DATE IS OCTOBER THE NET ANNUAL FUND OPERATING EXPENSE in effect through at least June 30,
3, 2008; RETURNS SINCE THAT DATE ARE RATIO SET FORTH IN THE MOST RECENT FUND 2010. See current prospectus for more
ACTUAL RETURNS. ALL OTHER RETURNS ARE PROSPECTUS AS OF THE DATE OF THIS REPORT information.
BLENDED RETURNS OF ACTUAL CLASS Y SHARE FOR CLASS A, CLASS B, CLASS C, CLASS R AND
PERFORMANCE AND RESTATED CLASS A SHARE CLASS Y SHARES WAS 1.00%, 1.75%, 1.75%,
PERFORMANCE (FOR PERIODS PRIOR TO THE 1.25%, AND 0.75%, RESPECTIVELY.(1) THE
INCEPTION DATE OF CLASS Y SHARES) AT NET TOTAL ANNUAL FUND OPERATING EXPENSE RATIO
ASSET VALUE. THE RESTATED CLASS A SHARE SET FORTH IN THE MOST RECENT FUND
PERFORMANCE REFLECTS THE RULE 12B-1 FEES PROSPECTUS AS OF THE DATE OF THIS REPORT
APPLICABLE TO CLASS A SHARES AS WELL AS FOR CLASS A, CLASS B, CLASS C, CLASS R AND
ANY FEE WAIVERS OR EXPENSE REIMBURSEMENTS CLASS Y SHARES WAS 1.18%, 1.93%, 1.93%
RECEIVED BY CLASS A SHARES. CLASS A 1.43% AND 0.93%, RESPECTIVELY. THE EXPENSE
SHARES' INCEPTION DATE IS MARCH 31, 2006. RATIOS PRESENTED ABOVE MAY VARY FROM THE
EXPENSE RATIOS PRESENTED IN OTHER SECTIONS
THE PERFORMANCE DATA QUOTED REPRESENT OF THIS REPORT THAT ARE BASED ON EXPENSES
PAST PERFORMANCE AND CANNOT GUARANTEE INCURRED DURING THE PERIOD COVERED BY THIS
COMPARABLE FUTURE RESULTS; CURRENT REPORT.
PERFORMANCE MAY BE LOWER OR HIGHER. PLEASE
VISIT INVESCOAIM.COM FOR THE MOST RECENT CLASS A SHARE PERFORMANCE REFLECTS THE
MONTH-END PERFORMANCE. PERFORMANCE FIGURES MAXIMUM 5.50% SALES CHARGE, AND CLASS B
REFLECT REINVESTED DISTRIBUTIONS, CHANGES AND CLASS C SHARE PERFORMANCE REFLECTS THE
IN NET ASSET VALUE AND THE EFFECT OF THE APPLICABLE CONTINGENT DEFERRED SALES
MAXIMUM SALES CHARGE UNLESS OTHERWISE CHARGE (CDSC) FOR THE PERIOD INVOLVED. THE
STATED. INVESTMENT RETURN AND PRINCIPAL CDSC ON CLASS B SHARES DECLINES FROM 5%
VALUE WILL FLUCTUATE SO THAT YOU MAY HAVE BEGINNING AT THE TIME OF PURCHASE TO 0% AT
A GAIN OR LOSS WHEN YOU SELL SHARES. THE BEGINNING OF THE SEVENTH YEAR. THE
CDSC ON CLASS C SHARES IS 1% FOR THE FIRST
YEAR AFTER PURCHASE. CLASS R
7 AIM STRUCTURED GROWTH FUND
</Table>
<Table>
- ------------------------------------------------------------------------------------------------------------------------------------
AIM STRUCTURED GROWTH FUND'S INVESTMENT OBJECTIVE IS LONG-TERM GROWTH OF CAPITAL.
o Unless otherwise stated, information presented in this report is as of August 31, 2009, and is based on total net assets
o Unless otherwise noted, all data provided by Invesco Aim.
- ------------------------------------------
ABOUT SHARE CLASSES fund does trade in this way, it may o The LIPPER LARGE-CAP GROWTH FUNDS INDEX
incur increased costs, which can lower is an equally weighted representation
o Effective September 30, 2003, for the actual return of the fund. Active of the largest funds in the Lipper
qualified plans only, those previously trading may also increase short term Large-Cap Growth Funds category. These
established are eligible to purchase gains and losses, which may affect funds typically have an above average
Class B shares of any AIM fund. Please taxes that must be paid. price-to-earnings ratio, price-to-book
see the prospectus for more ratio, and three-year sales-per-share
information. o The Fund invests in "growth" stocks, growth value, compared to the S&P 500
which may be more volatile than other Index.
o Class R shares are available only to investment styles because growth stocks
certain retirement plans. Please see are more sensitive to investor o The Fund is not managed to track the
the prospectus for more information. perceptions of an issuing company's performance of any particular index,
growth potential. including the indexes defined here, and
o Class Y shares are available to only consequently, the performance of the
certain investors. Please see the o Interest rate risk refers to the risk Fund may deviate significantly from the
prospectus for more information. that bond prices generally fall as performance of the indexes.
interest rates rise and vice versa.
- ------------------------------------------ o A direct investment cannot be made in
PRINCIPAL RISKS OF INVESTING IN THE FUND o Leveraging entails risks such as an index. Unless otherwise indicated,
magnifying changes in the value of the index results include reinvested
o Credit risk is the risk of loss on an portfolio's securities. dividends, and they do not reflect
investment due to the deterioration of sales charges. Performance of an index
an issuer's financial health. Such a o Since a large percentage of the Fund's of funds reflects fund expenses;
deterioration of financial health may assets may be invested in securities of performance of a market index does not.
result in a reduction of the credit a limited number of companies, each
rating of the issuer's securities and investment has a greater effect on the OTHER INFORMATION
may lead to the issuer's inability to Fund's overall performance, and any
honor its contractual obligations, change in the value of those securities o The Chartered Financial Analysts (R)
including making timely payment of could significantly affect the value of (CFA(R)) designation is globally
interest and principal. your investment in the Fund. recognized and attests to a
charterholder's success in a rigorous
o The Fund may use enhanced investment o There is no guarantee that the and comprehensive study program in the
techniques such as derivatives. The investment techniques and risk analysis field of investment management and
principal risk of derivatives is that used by the Fund's portfolio managers research analysis.
the fluctuations in their values may will produce the desired results.
not correlate perfectly with the o The returns shown in management's
overall securities markets. Derivatives o The prices of securities held by the discussion of Fund performance are
are subject to counterparty risk -- the Fund may decline in response to market based on net asset values calculated
risk that the other party will not risks. for shareholder transactions. Generally
complete the transaction with the Fund. accepted accounting principles require
------------------------------------------ adjustments to be made to the net
o Prices of equity securities change in ABOUT INDEXES USED IN THIS REPORT assets of the Fund at period end for
response to many factors, including the financial reporting purposes, and as
historical and prospective earnings of o The S&P 500(R) INDEX is a market such, the net asset values for
the issuer, the value of its assets, capitalization-weighted index covering shareholder transactions and the
general economic conditions, interest all major areas of the U.S. economy. It returns based on those net asset values
rates, investor perceptions and market is not the 500 largest companies but may differ from the net asset values
liquidity. rather the most widely held 500 and returns reported in the Financial
companies chosen with respect to market Highlights.
o Foreign securities have additional size, liquidity and their industry.
risks, including exchange rate changes, o Industry classifications used in this
political and economic upheaval, o The RUSSELL 1000(R) GROWTH INDEX report are generally according to the
relative lack of information, measures the performance of those Global Industry Classification
relatively low market liquidity, and Russell 1000 companies with higher Standard, which was developed by and is
the potential lack of strict financial price-to-book ratios and higher the exclusive property and a service
and accounting controls and standards. forecasted growth values. The Russell mark of MSCI Inc. and Standard &
1000 Growth Index is a Poor's.
o The Fund may engage in active and trademark/service mark of the Frank
frequent trading of portfolio Russell Company. Russell(R) is a
securities to achieve its investment trademark of the Frank Russell Company.
objective. If a
------------------------------------------
FUND NASDAQ SYMBOLS
Class A Shares AASGX
Class B Shares BASGX
THIS REPORT MUST BE ACCOMPANIED OR PRECEDED BY A CURRENTLY EFFECTIVE FUND PROSPECTUS, Class C Shares CASGX
WHICH CONTAINS MORE COMPLETE INFORMATION, INCLUDING SALES CHARGES AND EXPENSES. Class R Shares RASGX
INVESTORS SHOULD READ IT CAREFULLY BEFORE INVESTING. Class Y Shares AASYX
- ---------------------------------------------------------------------------------------
NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE
8 AIM STRUCTURED GROWTH FUND
</Table>
SCHEDULE OF INVESTMENTS(a)
August 31, 2009
<Table>
<Caption>
SHARES VALUE
- -----------------------------------------------------------------------------
COMMON STOCKS & OTHER EQUITY INTERESTS-98.43%
AEROSPACE & DEFENSE-3.21%
United Technologies Corp. 46,800 $ 2,778,048
=============================================================================
AGRICULTURAL PRODUCTS-0.64%
Archer-Daniels-Midland Co. 19,100 550,653
=============================================================================
AIR FREIGHT & LOGISTICS-0.70%
United Parcel Service, Inc.-Class B 11,400 609,444
=============================================================================
APPAREL RETAIL-7.84%
Aeropostale, Inc.(b) 61,400 2,403,810
- -----------------------------------------------------------------------------
Chico's FAS, Inc.(b) 7,200 91,656
- -----------------------------------------------------------------------------
Foot Locker, Inc. 98,700 1,052,142
- -----------------------------------------------------------------------------
Gap, Inc. (The) 144,200 2,833,530
- -----------------------------------------------------------------------------
Ross Stores, Inc. 8,600 401,104
=============================================================================
6,782,242
=============================================================================
AUTOMOTIVE RETAIL-1.14%
AutoNation, Inc.(b) 52,100 988,858
=============================================================================
BIOTECHNOLOGY-6.96%
Amgen Inc.(b) 55,900 3,339,466
- -----------------------------------------------------------------------------
Biogen Idec Inc.(b) 46,300 2,324,723
- -----------------------------------------------------------------------------
Facet Biotech Corp.(b) 20,900 209,836
- -----------------------------------------------------------------------------
PDL BioPharma Inc. 15,900 143,895
=============================================================================
6,017,920
=============================================================================
COMMUNICATIONS EQUIPMENT-0.77%
3Com Corp.(b) 119,900 521,565
- -----------------------------------------------------------------------------
F5 Networks, Inc.(b) 4,100 141,409
=============================================================================
662,974
=============================================================================
COMPUTER & ELECTRONICS RETAIL-1.68%
RadioShack Corp. 71,100 1,075,743
- -----------------------------------------------------------------------------
Rent-A-Center, Inc.(b) 19,000 374,870
=============================================================================
1,450,613
=============================================================================
COMPUTER HARDWARE-13.80%
Apple Inc.(b) 32,750 5,508,878
- -----------------------------------------------------------------------------
Hewlett-Packard Co. 34,800 1,562,172
- -----------------------------------------------------------------------------
International Business Machines Corp. 41,200 4,863,660
=============================================================================
11,934,710
=============================================================================
COMPUTER STORAGE & PERIPHERALS-2.58%
EMC Corp.(b) 76,700 1,219,530
- -----------------------------------------------------------------------------
Western Digital Corp.(b) 29,600 1,014,688
=============================================================================
2,234,218
=============================================================================
<Caption>
SHARES
DATA PROCESSING & OUTSOURCED SERVICES-0.27%
Broadridge Financial Solutions Inc. 11,200 233,184
=============================================================================
DEPARTMENT STORES-0.20%
Sears Holdings Corp.(b) 2,700 171,315
=============================================================================
EDUCATION SERVICES-5.15%
Apollo Group, Inc.-Class A(b) 36,400 2,359,448
- -----------------------------------------------------------------------------
Career Education Corp.(b) 18,000 427,500
- -----------------------------------------------------------------------------
ITT Educational Services, Inc.(b) 15,900 1,669,341
=============================================================================
4,456,289
=============================================================================
GENERAL MERCHANDISE STORES-0.56%
Family Dollar Stores, Inc. 15,900 481,452
=============================================================================
HEALTH CARE EQUIPMENT-0.32%
Boston Scientific Corp.(b) 23,200 272,600
=============================================================================
HEALTH CARE SERVICES-0.65%
Omnicare, Inc. 24,700 565,383
=============================================================================
HOME IMPROVEMENT RETAIL-2.71%
Home Depot, Inc. (The) 86,000 2,346,940
=============================================================================
HOMEBUILDING-1.98%
D.R. Horton, Inc. 74,700 1,001,727
- -----------------------------------------------------------------------------
KB Home 14,200 258,582
- -----------------------------------------------------------------------------
Ryland Group, Inc. (The) 19,900 456,108
=============================================================================
1,716,417
=============================================================================
HYPERMARKETS & SUPER CENTERS-4.79%
Wal-Mart Stores, Inc. 81,400 4,140,818
=============================================================================
INDEPENDENT POWER PRODUCERS & ENERGY TRADERS-2.06%
Mirant Corp.(b) 105,500 1,777,675
=============================================================================
INDUSTRIAL CONGLOMERATES-3.49%
3M Co. 26,300 1,896,230
- -----------------------------------------------------------------------------
General Electric Co. 80,700 1,121,730
=============================================================================
3,017,960
=============================================================================
INDUSTRIAL MACHINERY-0.31%
John Bean Technologies Corp. 16,000 267,040
=============================================================================
INTEGRATED OIL & GAS-4.74%
Chevron Corp. 900 62,946
- -----------------------------------------------------------------------------
Exxon Mobil Corp. 52,400 3,623,460
- -----------------------------------------------------------------------------
Occidental Petroleum Corp. 5,600 409,360
=============================================================================
4,095,766
=============================================================================
</Table>
See accompanying Notes to Financial Statements which are an integral part of the
financial statements.
9 AIM STRUCTURED GROWTH FUND
<Table>
<Caption>
SHARES VALUE
- -----------------------------------------------------------------------------
INTEGRATED TELECOMMUNICATION SERVICES-0.84%
AT&T Inc. 21,100 $ 549,655
- -----------------------------------------------------------------------------
Qwest Communications International Inc. 49,200 176,628
=============================================================================
726,283
=============================================================================
INTERNET SOFTWARE & SERVICES-3.35%
eBay Inc.(b) 121,700 2,694,438
- -----------------------------------------------------------------------------
ValueClick, Inc.(b) 19,400 198,850
=============================================================================
2,893,288
=============================================================================
INVESTMENT BANKING & BROKERAGE-0.50%
Goldman Sachs Group, Inc. (The) 2,600 430,196
=============================================================================
LIFE & HEALTH INSURANCE-0.54%
Aflac, Inc. 11,500 467,130
=============================================================================
MANAGED HEALTH CARE-2.97%
UnitedHealth Group Inc. 91,800 2,570,400
=============================================================================
PAPER PACKAGING-0.52%
Temple-Inland Inc. 26,700 451,497
=============================================================================
PHARMACEUTICALS-11.82%
Bristol-Myers Squibb Co. 33,600 743,568
- -----------------------------------------------------------------------------
Eli Lilly and Co. 62,100 2,077,866
- -----------------------------------------------------------------------------
Forest Laboratories, Inc.(b) 49,500 1,448,865
- -----------------------------------------------------------------------------
Johnson & Johnson 43,800 2,647,272
- -----------------------------------------------------------------------------
Merck & Co., Inc. 6,400 207,552
- -----------------------------------------------------------------------------
Schering-Plough Corp. 23,100 650,958
- -----------------------------------------------------------------------------
Sepracor Inc.(b) 65,300 1,185,195
- -----------------------------------------------------------------------------
Valeant Pharmaceuticals International(b) 39,400 1,020,066
- -----------------------------------------------------------------------------
Wyeth 5,000 239,250
=============================================================================
10,220,592
=============================================================================
RESTAURANTS-0.10%
Brinker International, Inc. 6,000 87,360
=============================================================================
SEMICONDUCTORS-3.69%
Marvell Technology Group Ltd.(b) 29,800 454,450
- -----------------------------------------------------------------------------
Texas Instruments Inc. 111,200 2,734,408
=============================================================================
3,188,858
=============================================================================
SOFT DRINKS-0.29%
Dr. Pepper Snapple Group, Inc.(b) 9,600 253,824
=============================================================================
SPECIALTY STORES-0.06%
Barnes & Noble, Inc. 2,300 47,587
=============================================================================
SYSTEMS SOFTWARE-6.62%
Microsoft Corp. 145,200 3,579,180
- -----------------------------------------------------------------------------
Symantec Corp.(b) 142,200 2,150,064
=============================================================================
5,729,244
=============================================================================
WIRELESS TELECOMMUNICATION SERVICES-0.58%
Sprint Nextel Corp.(b) 136,500 499,590
=============================================================================
Total Common Stocks & Other Equity Interests
(Cost $79,934,057) 85,118,368
=============================================================================
<Caption>
PRINCIPAL
AMOUNT
U.S. TREASURY BILLS-0.36%
0.18%, 09/17/09 (Cost $309,975)(c)(d) $310,000 309,975
=============================================================================
<Caption>
SHARES
MONEY MARKET FUNDS-1.29%
Liquid Assets Portfolio-Institutional Class(e) 558,340 558,340
- -----------------------------------------------------------------------------
Premier Portfolio-Institutional Class(e) 558,340 558,340
=============================================================================
Total Money Market Funds (Cost $1,116,680) 1,116,680
=============================================================================
TOTAL INVESTMENTS-100.08% (Cost $81,360,712) 86,545,023
=============================================================================
OTHER ASSETS LESS LIABILITIES-(0.08)% (65,011)
=============================================================================
NET ASSETS-100.00% $86,480,012
_____________________________________________________________________________
=============================================================================
</Table>
Notes to Schedule of Investments:
(a) Industry and/or sector classifications used in this report are generally
according to the Global Industry Classification Standard, which was
developed by and is the exclusive property and a service mark of MSCI Inc.
and Standard & Poor's.
(b) Non-income producing security.
(c) Security traded on a discount basis. The interest rate shown represents
the discount rate at the time of purchase by the Fund.
(d) All or a portion of the value was pledged as collateral to cover margin
requirements for open futures contracts. See Note 1J and Note 4.
(e) The money market fund and the Fund are affiliated by having the same
investment advisor.
See accompanying Notes to Financial Statements which are an integral part of the
financial statements.
10 AIM STRUCTURED GROWTH FUND
STATEMENT OF ASSETS AND LIABILITIES
August 31, 2009
<Table>
ASSETS:
Investments, at value (Cost $80,244,032) $ 85,428,343
- --------------------------------------------------------------------------------
Investments in affiliated money market funds, at value and cost 1,116,680
================================================================================
Total investments, at value (Cost $81,360,712) 86,545,023
================================================================================
Receivables for:
Fund shares sold 18,567
- --------------------------------------------------------------------------------
Dividends 191,629
- --------------------------------------------------------------------------------
Investment for trustee deferred compensation and retirement plans 4,989
- --------------------------------------------------------------------------------
Other assets 21,795
================================================================================
Total assets 86,782,003
________________________________________________________________________________
================================================================================
LIABILITIES:
Payables for:
Fund shares reacquired 228,073
- --------------------------------------------------------------------------------
Variation margin 9,812
- --------------------------------------------------------------------------------
Accrued fees to affiliates 1,120
- --------------------------------------------------------------------------------
Accrued other operating expenses 52,151
- --------------------------------------------------------------------------------
Trustee deferred compensation and retirement plans 10,835
================================================================================
Total liabilities 301,991
================================================================================
Net assets applicable to shares outstanding $ 86,480,012
________________________________________________________________________________
================================================================================
NET ASSETS CONSIST OF:
Shares of beneficial interest $131,946,130
- --------------------------------------------------------------------------------
Undistributed net investment income 1,244,630
- --------------------------------------------------------------------------------
Undistributed net realized gain (loss) (51,976,316)
- --------------------------------------------------------------------------------
Unrealized appreciation 5,265,568
================================================================================
$ 86,480,012
________________________________________________________________________________
================================================================================
NET ASSETS:
Class A $ 2,491,367
________________________________________________________________________________
================================================================================
Class B $ 298,406
________________________________________________________________________________
================================================================================
Class C $ 974,258
________________________________________________________________________________
================================================================================
Class R $ 30,408
________________________________________________________________________________
================================================================================
Class Y $ 73,069
________________________________________________________________________________
================================================================================
Institutional Class $ 82,612,504
________________________________________________________________________________
================================================================================
SHARES OUTSTANDING, $0.01 PAR VALUE PER SHARE, UNLIMITED NUMBER OF SHARES
AUTHORIZED:
Class A 313,263
________________________________________________________________________________
================================================================================
Class B 38,183
________________________________________________________________________________
================================================================================
Class C 124,710
________________________________________________________________________________
================================================================================
Class R 3,829
________________________________________________________________________________
================================================================================
Class Y 9,184
________________________________________________________________________________
================================================================================
Institutional Class 10,370,881
________________________________________________________________________________
================================================================================
Class A:
Net asset value per share $ 7.95
- --------------------------------------------------------------------------------
Maximum offering price per share
(Net asset value of $7.95 divided by 94.50%) $ 8.41
________________________________________________________________________________
================================================================================
Class B:
Net asset value and offering price per share $ 7.82
________________________________________________________________________________
================================================================================
Class C:
Net asset value and offering price per share $ 7.81
________________________________________________________________________________
================================================================================
Class R:
Net asset value and offering price per share $ 7.94
________________________________________________________________________________
================================================================================
Class Y:
Net asset value and offering price per share $ 7.96
________________________________________________________________________________
================================================================================
Institutional Class:
Net asset value and offering price per share $ 7.97
________________________________________________________________________________
================================================================================
</Table>
See accompanying Notes to Financial Statements which are an integral part of the
financial statements.
11 AIM STRUCTURED GROWTH FUND
STATEMENT OF OPERATIONS
For the year ended August 31, 2009
<Table>
INVESTMENT INCOME:
Dividends $ 1,998,223
- ------------------------------------------------------------------------------------------------
Dividends from affiliated money market funds (includes securities lending income
of $126,358) 140,341
- ------------------------------------------------------------------------------------------------
Interest 900
================================================================================================
Total investment income 2,139,464
================================================================================================
EXPENSES:
Advisory fees 583,728
- ------------------------------------------------------------------------------------------------
Administrative services fees 50,000
- ------------------------------------------------------------------------------------------------
Custodian fees 12,365
- ------------------------------------------------------------------------------------------------
Distribution fees:
Class A 6,359
- ------------------------------------------------------------------------------------------------
Class B 2,870
- ------------------------------------------------------------------------------------------------
Class C 10,517
- ------------------------------------------------------------------------------------------------
Class R 120
- ------------------------------------------------------------------------------------------------
Transfer agent fees -- A, B, C, R and Y 15,589
- ------------------------------------------------------------------------------------------------
Transfer agent fees -- Institutional 4,713
- ------------------------------------------------------------------------------------------------
Trustees' and officers' fees and benefits 21,387
- ------------------------------------------------------------------------------------------------
Registration and filing fees 70,058
- ------------------------------------------------------------------------------------------------
Professional services fees 55,308
- ------------------------------------------------------------------------------------------------
Other 37,963
================================================================================================
Total expenses 870,977
================================================================================================
Less: Fees waived, expenses reimbursed and expense offset arrangement(s) (123,262)
================================================================================================
Net expenses 747,715
================================================================================================
Net investment income 1,391,749
================================================================================================
REALIZED AND UNREALIZED GAIN (LOSS) FROM:
Net realized gain (loss) from:
Investment securities (47,326,857)
- ------------------------------------------------------------------------------------------------
Futures contracts 979,576
================================================================================================
(46,347,281)
================================================================================================
Change in net unrealized appreciation of:
Investment securities 4,809,487
- ------------------------------------------------------------------------------------------------
Futures contracts 80,405
================================================================================================
4,889,892
================================================================================================
Net realized and unrealized gain (loss) (41,457,389)
================================================================================================
Net increase (decrease) in net assets resulting from operations $(40,065,640)
________________________________________________________________________________________________
================================================================================================
</Table>
See accompanying Notes to Financial Statements which are an integral part of the
financial statements.
12 AIM STRUCTURED GROWTH FUND
STATEMENT OF CHANGES IN NET ASSETS
For the years ended August 31, 2009 and 2008
<Table>
<Caption>
2009 2008
- --------------------------------------------------------------------------------------------------------
OPERATIONS:
Net investment income $ 1,391,749 $ 1,100,353
- --------------------------------------------------------------------------------------------------------
Net realized gain (loss) (46,347,281) (5,565,465)
- --------------------------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) 4,889,892 (10,577,763)
========================================================================================================
Net increase (decrease) in net assets resulting from operations (40,065,640) (15,042,875)
========================================================================================================
DISTRIBUTIONS TO SHAREHOLDERS FROM NET INVESTMENT INCOME:
Class A (9,644) (16,383)
- --------------------------------------------------------------------------------------------------------
Class R (34) --
- --------------------------------------------------------------------------------------------------------
Class Y (853) --
- --------------------------------------------------------------------------------------------------------
Institutional Class (741,359) (840,921)
========================================================================================================
Total distributions from net investment income (751,890) (857,304)
========================================================================================================
DISTRIBUTIONS TO SHAREHOLDERS FROM NET REALIZED GAINS:
Class A -- (206,607)
- --------------------------------------------------------------------------------------------------------
Class B -- (19,986)
- --------------------------------------------------------------------------------------------------------
Class C -- (68,888)
- --------------------------------------------------------------------------------------------------------
Class R -- (386)
- --------------------------------------------------------------------------------------------------------
Institutional Class -- (4,857,348)
========================================================================================================
Total distributions from net realized gains -- (5,153,215)
========================================================================================================
SHARE TRANSACTIONS-NET:
Class A (1,212,517) (1,833,555)
- --------------------------------------------------------------------------------------------------------
Class B (60,118) 79,346
- --------------------------------------------------------------------------------------------------------
Class C (437,430) 136,158
- --------------------------------------------------------------------------------------------------------
Class R 10,011 15,882
- --------------------------------------------------------------------------------------------------------
Class Y 104,995 --
- --------------------------------------------------------------------------------------------------------
Institutional Class (37,102,160) 15,306,943
========================================================================================================
Net increase (decrease) in net assets resulting from share
transactions (38,697,219) 13,704,774
========================================================================================================
Net increase (decrease) in net assets (79,514,749) (7,348,620)
========================================================================================================
NET ASSETS:
Beginning of year 165,994,761 173,343,381
========================================================================================================
End of year (includes undistributed net investment income of $1,244,630
and $604,771, respectively) $ 86,480,012 $165,994,761
________________________________________________________________________________________________________
========================================================================================================
</Table>
See accompanying Notes to Financial Statements which are an integral part of the
financial statements.
13 AIM STRUCTURED GROWTH FUND
NOTES TO FINANCIAL STATEMENTS
August 31, 2009
NOTE 1--SIGNIFICANT ACCOUNTING POLICIES
AIM Structured Growth Fund (the "Fund") is a series portfolio of AIM Counselor
Series Trust (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 seven 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 long-term growth of capital.
The Fund currently consists of six different classes of shares: Class A, Class
B, Class C, Class R, 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 R, Class Y and Institutional Class shares are sold at net asset value.
Under certain circumstances, Class R shares are subject to a CDSC. 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 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.
A security listed or traded on an exchange (except convertible bonds) is
valued at its last sales price or official closing price as of the close
of the customary trading session on the exchange where the security is
principally traded, or lacking any sales or official closing price on a
particular day, the security may be valued at the closing bid price on
that day. Securities traded in the over-the-counter market are valued
based on prices furnished by independent pricing services or market
makers. When such securities are valued by an independent pricing service
they may be considered fair valued. Futures contracts are valued at the
final settlement price set by an exchange on which they are principally
traded. Listed options are valued at the mean between the last bid and ask
prices from the exchange on which they are principally traded. Options not
listed on an exchange are valued by an independent source at the mean
between the last bid and ask prices. For purposes of determining net asset
value per share, futures and option contracts generally are valued 15
minutes after the close of the customary trading session of the New York
Stock Exchange ("NYSE").
Investments in open-end and closed-end registered investment companies
that do not trade on an exchange are valued at the end of day net asset
value per share. Investments in open-end and closed-end registered
investment companies that trade on an exchange are valued at the last
sales price or official closing price as of the close of the customary
trading session on the exchange where the security is principally traded.
Debt obligations (including convertible bonds) and unlisted equities are
fair valued using an evaluated quote provided by an independent pricing
service. 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, developments related to specific securities, dividend rate,
yield, quality, type of issue, coupon rate, maturity, 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. 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/or principal payments.
Foreign securities (including foreign exchange contracts) are converted
into U.S. dollar amounts using the applicable exchange rates as of the
close of the NYSE. If market quotations are available and reliable for
foreign exchange traded equity securities, the securities will be valued
at the market quotations. Because trading hours for certain foreign
securities end before the close of the NYSE, closing market quotations may
become unreliable. If between the time trading ends on a particular
security and the close of the customary trading session on the NYSE,
events occur that are significant and make the closing price unreliable,
the Fund may fair value the security. If the event is likely to have
affected the closing price of the security, the security will be valued at
fair value in good faith using procedures approved by the Board of
Trustees. Adjustments to closing prices to reflect fair value may also be
based on a screening process of an independent pricing service to indicate
the degree of certainty, based on historical data, that the closing price
in the principal market where a foreign security trades is not the current
value as of the close of the NYSE. Foreign securities meeting the approved
degree of certainty that the price is not reflective of current value will
be priced at the indication of fair value from the independent pricing
service. Multiple factors may be considered by the independent pricing
service in determining adjustments to reflect fair value and may include
information relating to sector indices, American Depositary Receipts and
domestic and foreign index futures. Foreign securities may have additional
risks including exchange rate changes, potential for sharply devalued
currencies and high inflation, political and economical upheaval, the
relative lack of issuer information, relatively low market liquidity and
the potential lack of strict financial and accounting controls and
standards.
Securities for which market prices are not provided by any of the above
methods may be valued based upon quotes furnished by independent sources.
The last bid price may be used to value equity securities and Corporate
Loans. The mean between the last bid and asked prices may be used to value
debt obligations other than Corporate Loans.
Securities for which market quotations 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. Issuer specific events, market trends,
bid/ask quotes of brokers and information providers and other market data
may be reviewed in the course of making a good faith determination of a
security's fair value.
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.
14 AIM STRUCTURED GROWTH FUND
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 income and realized and unrealized capital gains and
losses to a class based on the relative net assets 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 and 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 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.
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. In addition, the Fund monitors for material events or
transactions that may occur or become known after the period end date and
before the date the financial statements are released to print, which is
generally 45 days from the period end date.
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. SECURITIES LENDING -- The Fund may lend portfolio securities having a
market value up to one-third of the Fund's total assets. Such loans are
secured by collateral equal to no less than the market value of the loaned
securities determined daily by the securities lending provider. Such
collateral will be cash or debt securities issued or guaranteed by the
U.S. Government or any of its sponsored agencies. Cash collateral received
in connection with these loans is invested in short-term money market
instruments or affiliated money market funds and is shown as such on the
Schedule of Investments. It is the Fund's policy to obtain additional
collateral from or return excess collateral to the borrower by the end of
the next business day, following the valuation date of the securities
loaned. Therefore, the value of the collateral held may be temporarily
less than the value of the securities on loan. Lending securities entails
a risk of loss to the Fund if and to the extent that the market value of
the securities loaned were to increase and the borrower did not increase
the collateral accordingly, and the borrower fails to return the
securities. Upon the failure of the borrower to return the securities,
collateral may be liquidated and the securities may be purchased on the
open market to replace the loaned securities. The Fund could experience
delays and costs in gaining access to the collateral. The Fund bears the
risk of any deficiency in the amount of the collateral available for
return to the borrower due to any loss on the collateral invested.
Dividends received on cash collateral investments for securities lending
transactions, which are net of compensation to counterparties, is included
in Dividends from affiliates on the Statement of Operations. The aggregate
value of securities out on loan is shown as a footnote on the Statement of
Assets and Liabilities, if any.
J. FUTURES CONTRACTS -- The Fund may enter into futures contracts to manage
exposure to interest rate, equity and market price movements and/or
currency risks. A futures contract is an agreement between two parties to
purchase or sell a specified underlying security, currency or commodity
(or
15 AIM STRUCTURED GROWTH FUND
delivery of a cash settlement price, in the case of an index future) for a
fixed price at a future date. The Fund currently invests only in exchange-
traded futures and they are standardized as to maturity date and
underlying financial instrument. Initial margin deposits required upon
entering into futures contracts are satisfied by the segregation of
specific securities or cash as collateral at the futures commission
merchant (broker). During the period the futures contracts are open,
changes in the value of the contracts are recognized as unrealized gains
or losses by recalculating the value of the contracts on a daily basis.
Subsequent or variation margin payments are received or made depending
upon whether unrealized gains or losses are incurred. These amounts are
reflected as receivables or payables on the Statement of Assets and
Liabilities. When the contracts are closed or expire, the Fund recognizes
a realized gain or loss equal to the difference between the proceeds from,
or cost of, the closing transaction and the Fund's basis in the contract.
The net realized gain (loss) and the change in unrealized gain (loss) on
futures contracts held during the period is included on the Statement of
Operations. The primary risks associated with futures contracts are market
risk and the absence of a liquid secondary market. If the Fund were unable
to liquidate a futures contract and/or enter into an offsetting closing
transaction, the Fund would continue to be subject to market risk with
respect to the value of the contracts and continue to be required to
maintain the margin deposits on the futures contracts. Futures contracts
have minimal counterparty risk since the exchange's clearinghouse, as
counterparty to all exchange traded futures, guarantees the futures
against default. Risks may exceed amounts recognized in the Statement of
Assets and Liabilities.
K. COLLATERAL -- To the extent the Fund has pledged or segregated a security
as collateral and that security is subsequently sold, it is the Fund's
practice to replace such collateral no later than the next business day.
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 $250 million 0.60%
- -------------------------------------------------------------------
Next $250 million 0.575%
- -------------------------------------------------------------------
Next $500 million 0.55%
- -------------------------------------------------------------------
Next $1.5 billion 0.525%
- -------------------------------------------------------------------
Next $2.5 billion 0.50%
- -------------------------------------------------------------------
Next $2.5 billion 0.475%
- -------------------------------------------------------------------
Next $2.5 billion 0.45%
- -------------------------------------------------------------------
Over $10 billion 0.425%
___________________________________________________________________
===================================================================
</Table>
Under the terms of a master sub-advisory agreement approved by shareholders of
the Fund between 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).
The Advisor has contractually 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 R,
Class Y and Institutional Class shares to 1.00%, 1.75%, 1.75%, 1.25%, 0.75% and
0.75% of average daily net assets, respectively, through at least June 30, 2010.
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
or non-routine 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.
Further, the Advisor has contractually agreed, through at least June 30, 2010,
to waive the advisory fee payable by the Fund in an amount equal to 100% of the
net advisory fees the Advisor receives from the affiliated money market funds on
investments by the Fund of uninvested cash (excluding investments of cash
collateral from securities lending) in such affiliated money market funds.
For the year ended August 31, 2009, the Advisor waived advisory fees $102,019
and reimbursed class level expenses of $9,805, $1,106, $4,055, $93, $347 and
$4,713 of Class A, Class B, Class C, Class R, Class Y and Institutional Class
shares, respectively.
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. For the year ended August 31, 2009, Invesco did not
reimburse any expenses.
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 August 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
16 AIM STRUCTURED GROWTH FUND
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 August 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 R, 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, Class C and Class R 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, 1.00% of
the average daily net assets of Class B and Class C shares and 0.50% of the
average daily net assets of Class R 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 August 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 August 31, 2009, IADI
advised the Fund that IADI retained $1,171 in front-end sales commissions from
the sale of Class A shares and $0, $268, $187 and $0 from Class A, Class B,
Class C and Class R 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--ADDITIONAL VALUATION INFORMATION
Generally Accepted Accounting Principles (GAAP) 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 under
current market conditions. GAAP 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.
The following is a summary of the tiered valuation input levels, as of the end
of the reporting period, August 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>
LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
- ------------------------------------------------------------------------------------------------------------------------
Equity Securities $86,235,048 $ -- $ -- $86,235,048
- ------------------------------------------------------------------------------------------------------------------------
U.S. Treasury Securities -- 309,975 -- 309,975
========================================================================================================================
$86,545,023
========================================================================================================================
Other Investments* 81,257 -- -- 81,257
========================================================================================================================
Total Investments $86,316,305 $309,975 $-- $86,626,280
________________________________________________________________________________________________________________________
========================================================================================================================
</Table>
* Other Investments includes futures contracts, which are included at unrealized
appreciation.
NOTE 4--DERIVATIVE INVESTMENTS
Effective March 1, 2009, the Fund has adopted the provisions of FASB Statement
No. 161, Disclosures about Derivative Instruments and Hedging Activities. The
standard is intended to improve financial reporting about derivative instruments
and hedging activities by requiring enhanced disclosures to enable investors to
better understand their effects on an entity's financial position and financial
performance. The adoption of this provision has no impact on the results of
operations reported in the financial statements.
VALUE OF DERIVATIVE INSTRUMENTS AT PERIOD-END
The Table below summarizes the value of the Fund's derivative instruments,
detailed by primary risk exposure, held as of August 31, 2009:
<Table>
<Caption>
VALUE
-----------------------
RISK EXPOSURE/ DERIVATIVE TYPE ASSETS LIABILITIES
- -----------------------------------------------------------------------------------------------------
Market risk
Futures contracts(a) $81,257 $ --
_____________________________________________________________________________________________________
=====================================================================================================
</Table>
(a) Includes cumulative appreciation of futures contracts. Only current day's
variation margin receivable (payable) is reported within the Statement of
Assets & Liabilities.
17 AIM STRUCTURED GROWTH FUND
EFFECT OF DERIVATIVE INSTRUMENTS FOR THE SIX MONTHS ENDED AUGUST 31, 2009
The table below summarizes the gains on derivative instruments, detailed by
primary risk exposure, recognized in earnings during the period:
<Table>
<Caption>
LOCATION OF GAIN ON
STATEMENT OF OPERATIONS
-----------------------
FUTURES*
- ----------------------------------------------------------------------------------------------------
Realized Gain
Market risk $1,197,469
====================================================================================================
Change in Unrealized Appreciation
Market risk 258,431
====================================================================================================
Total $1,455,900
____________________________________________________________________________________________________
====================================================================================================
</Table>
* The average value outstanding of futures during the period was $5,182,330.
<Table>
<Caption>
OPEN FUTURES CONTRACTS
- ------------------------------------------------------------------------------------------------------------------------
NUMBER OF MONTH/ UNREALIZED
CONTRACT CONTRACTS COMMITMENT VALUE APPRECIATION
- ------------------------------------------------------------------------------------------------------------------------
Chicago Mercantile Exchange E-mini S&P 500 Index 24 September-09/Long $1,223,640 $81,257
________________________________________________________________________________________________________________________
========================================================================================================================
</Table>
NOTE 5--EXPENSE OFFSET ARRANGEMENT(S)
The expense offset arrangements are comprised of (i) transfer agency credits
which result from balances in Demand Deposit Accounts (DDA) used by the transfer
agent for clearing shareholder transactions and (ii) custodian credits which
result from periodic overnight cash balances at the custodian. For the year
ended August 31, 2009, the Fund received credits from these arrangements, which
resulted in the reduction of the Fund's total expenses of $1,124.
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 August 31, 2009, the Fund paid legal fees of $3,417 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 to temporarily carry a negative or overdrawn balance in
its account with The State Street Bank and Trust Company, 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.
18 AIM STRUCTURED GROWTH FUND
NOTE 8--DISTRIBUTIONS TO SHAREHOLDERS AND TAX COMPONENTS OF NET ASSETS
TAX CHARACTER OF DISTRIBUTIONS TO SHAREHOLDERS PAID DURING THE YEARS ENDED
AUGUST 31, 2009 AND 2008:
<Table>
<Caption>
2009 2008
- -----------------------------------------------------------------------------------------------------
Ordinary income $751,890 $5,736,595
- -----------------------------------------------------------------------------------------------------
Long-term capital gain -- 273,924
=====================================================================================================
Total distributions $751,890 $6,010,519
_____________________________________________________________________________________________________
=====================================================================================================
</Table>
TAX COMPONENTS OF NET ASSETS AT PERIOD-END:
<Table>
<Caption>
2009
- ------------------------------------------------------------------------------------------------
Undistributed ordinary income $ 1,256,291
- ------------------------------------------------------------------------------------------------
Net unrealized appreciation -- investments 3,517,083
- ------------------------------------------------------------------------------------------------
Temporary book/tax differences (11,661)
- ------------------------------------------------------------------------------------------------
Post-October deferrals (30,689,668)
- ------------------------------------------------------------------------------------------------
Capital loss carryforward (19,538,163)
- ------------------------------------------------------------------------------------------------
Shares of beneficial interest 131,946,130
================================================================================================
Total net assets $ 86,480,012
________________________________________________________________________________________________
================================================================================================
</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 difference is attributable primarily to wash sales.
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 August 31, 2009 which expires
as follows:
<Table>
<Caption>
CAPITAL
EXPIRATION LOSS CARRYFORWARD*
- -------------------------------------------------------------------------------------------------
August 31, 2016 $ 665,716
- -------------------------------------------------------------------------------------------------
August 31, 2017 18,872,447
=================================================================================================
Total capital loss carryforward $19,538,163
_________________________________________________________________________________________________
=================================================================================================
</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 August 31, 2009 was $99,716,996 and $136,377,134,
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 $10,277,214
- -----------------------------------------------------------------------------------------------
Aggregate unrealized (depreciation) of investment securities (6,760,131)
===============================================================================================
Net unrealized appreciation of investment securities $ 3,517,083
_______________________________________________________________________________________________
===============================================================================================
Cost of investments for tax purposes is $83,027,940.
</Table>
19 AIM STRUCTURED GROWTH FUND
NOTE 10--SHARE INFORMATION
<Table>
<Caption>
SUMMARY OF SHARE ACTIVITY
- -----------------------------------------------------------------------------------------------------------------------
YEAR ENDED AUGUST 31,
---------------------------------------------------------
2009(a) 2008
--------------------------- -------------------------
SHARES AMOUNT SHARES AMOUNT
- -----------------------------------------------------------------------------------------------------------------------
Sold:
Class A 169,910 $ 1,152,699 126,221 $ 1,439,845
- -----------------------------------------------------------------------------------------------------------------------
Class B 18,151 124,957 37,404 424,646
- -----------------------------------------------------------------------------------------------------------------------
Class C 8,285 61,492 64,135 718,782
- -----------------------------------------------------------------------------------------------------------------------
Class R 1,235 9,977 1,458 15,648
- -----------------------------------------------------------------------------------------------------------------------
Class Y(b) 42,748 327,844 -- --
- -----------------------------------------------------------------------------------------------------------------------
Institutional Class 751,214 5,229,110 1,601,599 18,008,711
=======================================================================================================================
Issued as reinvestment of dividends:
Class A 1,449 9,419 18,312 218,096
- -----------------------------------------------------------------------------------------------------------------------
Class B -- -- 1,576 18,615
- -----------------------------------------------------------------------------------------------------------------------
Class C -- -- 5,708 67,407
- -----------------------------------------------------------------------------------------------------------------------
Class R 5 34 32 386
- -----------------------------------------------------------------------------------------------------------------------
Class Y 131 853 -- --
- -----------------------------------------------------------------------------------------------------------------------
Institutional Class 114,055 741,359 477,642 5,698,269
=======================================================================================================================
Automatic conversion of Class B shares to Class A shares:
Class A 9,173 58,967 7,720 81,915
- -----------------------------------------------------------------------------------------------------------------------
Class B (9,301) (58,967) (7,802) (81,915)
=======================================================================================================================
Reacquired:
Class A(b) (347,229) (2,433,602) (325,612) (3,573,411)
- -----------------------------------------------------------------------------------------------------------------------
Class B (16,909) (126,108) (26,522) (282,000)
- -----------------------------------------------------------------------------------------------------------------------
Class C (73,737) (498,922) (61,575) (650,031)
- -----------------------------------------------------------------------------------------------------------------------
Class R -- -- (14) (152)
- -----------------------------------------------------------------------------------------------------------------------
Class Y (33,695) (223,702) -- --
- -----------------------------------------------------------------------------------------------------------------------
Institutional Class (6,011,495) (43,072,629) (784,168) (8,400,037)
=======================================================================================================================
Net increase (decrease) in share activity (5,376,010) $(38,697,219) 1,136,114 $13,704,774
_______________________________________________________________________________________________________________________
=======================================================================================================================
</Table>
(a) 86% of the outstanding shares of the Fund are owned by affiliated mutual
funds. Affiliated mutual funds are mutual funds that are advised by Invesco
Aim.
(b) Effective upon the commencement date of Class Y shares, October 3, 2008,
the following shares were converted from Class A into Class Y shares of the
Fund:
<Table>
<Caption>
CLASS SHARES AMOUNT
--------------------------------------------------------------------------------------------------
Class Y 23,646 $ 190,353
--------------------------------------------------------------------------------------------------
Class A (23,646) (190,353)
__________________________________________________________________________________________________
==================================================================================================
</Table>
20 AIM STRUCTURED GROWTH FUND
NOTE 11--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 NET (LOSSES) ON DIVIDENDS DISTRIBUTIONS
VALUE, INVESTMENT SECURITIES (BOTH TOTAL FROM FROM NET FROM NET
BEGINNING INCOME REALIZED AND INVESTMENT INVESTMENT REALIZED TOTAL
OF PERIOD (LOSS)(a) UNREALIZED) OPERATIONS INCOME GAINS DISTRIBUTIONS
- ------------------------------------------------------------------------------------------------------------------------
CLASS A
Year ended 08/31/09 $10.20 $ 0.09 $(2.31) $(2.22) $(0.03) $ -- $(0.03)
Year ended 08/31/08 11.45 0.04 (0.93) (0.89) (0.03) (0.33) (0.36)
Year ended 08/31/07 9.93 0.02 1.53 1.55 (0.02) (0.01) (0.03)
Year ended 08/31/06(e) 10.00 0.11 (0.18) (0.07) -- -- --
- ------------------------------------------------------------------------------------------------------------------------
CLASS B
Year ended 08/31/09 10.05 0.03 (2.26) (2.23) -- -- --
Year ended 08/31/08 11.35 (0.04) (0.93) (0.97) -- (0.33) (0.33)
Year ended 08/31/07 9.90 (0.07) 1.53 1.46 -- (0.01) (0.01)
Year ended 08/31/06(e) 10.00 0.08 (0.18) (0.10) -- -- --
- ------------------------------------------------------------------------------------------------------------------------
CLASS C
Year ended 08/31/09 10.05 0.03 (2.27) (2.24) -- -- --
Year ended 08/31/08 11.35 (0.04) (0.93) (0.97) -- (0.33) (0.33)
Year ended 08/31/07 9.90 (0.07) 1.53 1.46 -- (0.01) (0.01)
Year ended 08/31/06(e) 10.00 0.08 (0.18) (0.10) -- -- --
- ------------------------------------------------------------------------------------------------------------------------
CLASS R
Year ended 08/31/09 10.18 0.07 (2.30) (2.23) (0.01) -- (0.01)
Year ended 08/31/08 11.44 0.01 (0.94) (0.93) -- (0.33) (0.33)
Year ended 08/31/07 9.92 (0.01) 1.54 1.53 (0.00) (0.01) (0.01)
Year ended 08/31/06(e) 10.00 0.10 (0.18) (0.08) -- -- --
- ------------------------------------------------------------------------------------------------------------------------
CLASS Y
Year ended 08/31/09(e) 8.05 0.08 (0.14) (0.06) (0.03) -- (0.03)
- ------------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL CLASS
Year ended 08/31/09 10.23 0.10 (2.31) (2.21) (0.05) -- (0.05)
Year ended 08/31/08 11.48 0.07 (0.93) (0.86) (0.06) (0.33) (0.39)
Year ended 08/31/07 9.94 0.05 1.53 1.58 (0.03) (0.01) (0.04)
Year ended 08/31/06(e) 10.00 0.12 (0.18) (0.06) -- -- --
________________________________________________________________________________________________________________________
========================================================================================================================
<Caption>
RATIO OF RATIO OF
EXPENSES EXPENSES
TO AVERAGE TO AVERAGE NET
NET ASSETS ASSETS WITHOUT RATIO OF NET
NET ASSET NET ASSETS, WITH FEE WAIVERS FEE WAIVERS INVESTMENT INCOME
VALUE, END TOTAL END OF PERIOD AND/OR EXPENSES AND/OR EXPENSES (LOSS) TO AVERAGE PORTFOLIO
OF PERIOD RETURN(b) (000S OMITTED) ABSORBED ABSORBED NET ASSETS TURNOVER(C)
- -----------------------------------------------------------------------------------------------------------------------------------
CLASS A
Year ended 08/31/09 $ 7.95 (21.72)% $ 2,491 1.01%(d) 1.50%(d) 1.20%(d) 102%
Year ended 08/31/08 10.20 (8.25) 4,894 1.00 1.18 0.37 119
Year ended 08/31/07 11.45 15.63 7,481 1.01 1.29 0.17 91
Year ended 08/31/06(e) 9.93 (0.70) 862 1.03(f) 5.52(f) 2.57(f) 7
- -----------------------------------------------------------------------------------------------------------------------------------
CLASS B
Year ended 08/31/09 7.82 (22.19) 298 1.76(d) 2.25(d) 0.45(d) 102
Year ended 08/31/08 10.05 (8.98) 465 1.75 1.93 (0.38) 119
Year ended 08/31/07 11.35 14.76 472 1.76 2.04 (0.58) 91
Year ended 08/31/06(e) 9.90 (1.00) 662 1.78(f) 6.27(f) 1.82(f) 7
- -----------------------------------------------------------------------------------------------------------------------------------
CLASS C
Year ended 08/31/09 7.81 (22.29) 974 1.76(d) 2.25(d) 0.45(d) 102
Year ended 08/31/08 10.05 (8.98) 1,911 1.75 1.93 (0.38) 119
Year ended 08/31/07 11.35 14.76 2,065 1.76 2.04 (0.58) 91
Year ended 08/31/06(e) 9.90 (1.00) 599 1.78(f) 6.27(f) 1.82(f) 7
- -----------------------------------------------------------------------------------------------------------------------------------
CLASS R
Year ended 08/31/09 7.94 (21.88) 30 1.26(d) 1.75(d) 0.95(d) 102
Year ended 08/31/08 10.18 (8.55) 26 1.25 1.43 0.12 119
Year ended 08/31/07 11.44 15.46 13 1.26 1.54 (0.08) 91
Year ended 08/31/06(e) 9.92 (0.80) 595 1.28(f) 5.77(f) 2.32(f) 7
- -----------------------------------------------------------------------------------------------------------------------------------
CLASS Y
Year ended 08/31/09(e) 7.96 (0.60) 73 0.75(d)(f) 1.29(d)(f) 1.46(d)(f) 102
- -----------------------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL CLASS
Year ended 08/31/09 7.97 (21.45) 82,613 0.75(d) 0.86(d) 1.46(d) 102
Year ended 08/31/08 10.23 (7.99) 158,699 0.73 0.73 0.64 119
Year ended 08/31/07 11.48 15.93 163,313 0.75 0.89 0.43 91
Year ended 08/31/06(e) 9.94 (0.60) 86,898 0.77(f) 5.20(f) 2.83(f) 7
___________________________________________________________________________________________________________________________________
===================================================================================================================================
</Table>
(a) Calculated using average shares outstanding.
(b) 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.
(c) Portfolio turnover is calculated at the fund level and is not annualized
for periods less than one year, if applicable.
(d) Ratios are based on average daily net assets (000's omitted) of $2,543,
$287, $1,052, $24, $91 and $93,299 for Class A, Class B, Class C, Class R,
Class Y and Institutional Class shares, respectively.
(e) Commencement date of March 31, 2006 for Class A, Class B, Class C, Class R
and Institutional Class shares and October 3, 2008 for Class Y shares.
(f) Annualized.
21 AIM STRUCTURED GROWTH FUND
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Trustees of AIM Counselor Series Trust
and Shareholders of AIM Structured Growth 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 Structured Growth Fund (one of
the funds constituting AIM Counselor Series Trust, hereafter referred to as the
"Fund") at August 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 periods indicated, 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 August 31, 2009 by
correspondence with the custodian and brokers, provide a reasonable basis for
our opinion.
PRICEWATERHOUSECOOPERS LLP
October 16, 2009
Houston, Texas
22 AIM STRUCTURED GROWTH 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. The
example is based on an investment of $1,000 invested at the beginning of the
period and held for the entire period March 1, 2009 through August 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 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 (03/01/09) (08/31/09)(1) PERIOD(2) (08/31/09) PERIOD(2) RATIO
- ---------------------------------------------------------------------------------------------------
A $1,000.00 $1,380.20 $ 6.00 $1,020.16 $5.09 1.00%
- ---------------------------------------------------------------------------------------------------
B 1,000.00 1,376.80 10.48 1,016.38 8.89 1.75
- ---------------------------------------------------------------------------------------------------
C 1,000.00 1,375.00 10.48 1,016.38 8.89 1.75
- ---------------------------------------------------------------------------------------------------
R 1,000.00 1,380.90 7.50 1,018.90 6.36 1.25
- ---------------------------------------------------------------------------------------------------
Y 1,000.00 1,384.30 4.51 1,021.42 3.82 0.75
- ---------------------------------------------------------------------------------------------------
</Table>
(1) The actual ending account value is based on the actual total return of the
Fund for the period March 1, 2009 through August 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
184/365 to reflect the most recent fiscal half year.
23 AIM STRUCTURED GROWTH FUND
Supplement to Annual Report dated 8/31/09
AIM STRUCTURED GROWTH FUND
<Table>
INSTITUTIONAL CLASS SHARES ------------------------------------------ Please note that past performance is
AVERAGE ANNUAL TOTAL RETURNS not indicative of future results. More
The following information has been For periods ended 8/31/09 recent returns may be more or less than
prepared to provide Institutional Class those shown. All returns assume
shareholders with a performance overview Inception (3/31/06) -5.21% reinvestment of distributions at NAV.
specific to their holdings. Institutional ------------------------------------------ Investment return and principal value will
Class shares are offered exclusively to 1 Year -21.45 fluctuate so your shares, when redeemed,
institutional investors, including defined ------------------------------------------ may be worth more or less than their
contribution plans that meet certain original cost. See full report for
criteria. ------------------------------------------ information on comparative benchmarks.
AVERAGE ANNUAL TOTAL RETURNS Please consult your Fund prospectus for
For periods ended 6/30/09, the most more information. For the most current
recent calendar quarter-end month-end performance, please call
Inception (3/31/06) -8.35% 800 451 4246 or visit invescoaim.com.
------------------------------------------
1 Year -30.17
------------------------------------------
Institutional Class shares have no sales
charge; therefore, performance is at net
asset value (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 0.73%. 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 IASGX
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 -- NOT FOR USE WITH THE PUBLIC THIS MATERIAL IS FOR
INSTITUTIONAL INVESTOR USE ONLY AND MAY NOT BE QUOTED, REPRODUCED, SHOWN TO THE PUBLIC [INVESCO AIM LOGO]
OR USED IN WRITTEN FORM AS SALES LITERATURE FOR PUBLIC USE. - service mark -
invescoaim.com SGRO-INS-1 Invesco Aim Distributors, Inc.
</Table>
Supplement to Annual Report dated 8/31/09
AIM STRUCTURED GROWTH FUND
<Table>
RESULTS OF A $10,000 INVESTMENT - INSTITUTIONAL CLASS SHARES SINCE INCEPTION
Fund and index data from 3/31/06
[PERFORMANCE CHART]
AIM
STRUCTURED
GROWTH LIPPER
FUND- RUSSELL 1000 LARGE-CAP
INSTITUTIONAL GROWTH S&P 500 GROWTH
CLASS SHARES INDEX(1) INDEX(1) FUNDS INDEX(1)
------------- ------------ -------- --------------
3/31/2006 10000 10000 10000 10000
04/06 10040 9986 10134 9984
05/06 9740 9648 9843 9519
06/06 9840 9610 9856 9487
07/06 9710 9427 9917 9244
08/06 9940 9721 10152 9458
09/06 10251 9988 10414 9662
10/06 10711 10339 10753 9953
11/06 10921 10544 10957 10180
12/06 10881 10580 11111 10234
01/07 11233 10852 11279 10498
02/07 10932 10648 11059 10261
03/07 11133 10706 11182 10339
04/07 11495 11210 11677 10758
05/07 11997 11613 12084 11123
06/07 11706 11440 11884 11018
07/07 11425 11262 11516 10878
08/07 11525 11442 11688 11057
09/07 11967 11921 12125 11732
10/07 12568 12327 12318 12256
11/07 12237 11873 11802 11756
12/07 12426 11830 11721 11767
01/08 11068 10907 11018 10760
02/08 10850 10691 10660 10536
03/08 10757 10626 10614 10446
04/08 11233 11184 11131 11090
05/08 11493 11593 11275 11392
06/08 10788 10758 10325 10554
07/08 10653 10554 10239 10346
08/08 10601 10668 10387 10374
09/08 9140 9432 9462 9044
10/08 7430 7772 7873 7464
11/08 6756 7154 7308 6716
12/08 6979 7283 7385 6896
01/09 6540 6932 6763 6540
02/09 6017 6411 6046 6113
03/09 6592 6983 6574 6638
04/09 7219 7653 7203 7342
05/09 7480 8033 7605 7744
06/09 7532 8122 7621 7747
07/09 8096 8699 8196 8330
08/09 8328 8880 8492 8495
(1) Lipper Inc.
Past performance cannot guarantee shown in the chart and table(s) does not is that of the Fund's Class A, B, C and R
comparable future results. reflect deduction of taxes a shareholder shares. The performance of the Fund's
would pay on Fund distributions or sale of other share classes will differ primarily
The data shown in the chart above Fund shares. Performance of the indexes due to different sales charge structures
includes reinvested distributions and Fund does not reflect the effects of taxes. and class expenses, and may be greater
expenses including management fees. Index than or less than the performance of the
results include reinvested dividends. The performance data shown in the chart Fund's Institutional Class shares shown in
Performance of an index of funds reflects above is that of the Fund's institutional the chart above.
fund expenses and management fees; share class. The performance data shown in
performance of a market index does not. the chart in the annual report
Performance
- ---------------------------------------------------------------------------------------
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 -- NOT FOR USE WITH THE PUBLIC THIS MATERIAL IS FOR
INSTITUTIONAL INVESTOR USE ONLY AND MAY NOT BE QUOTED, REPRODUCED, SHOWN TO THE PUBLIC [INVESCO AIM LOGO]
OR USED IN WRITTEN FORM AS SALES LITERATURE FOR PUBLIC USE. - service mark -
invescoaim.com SGRO-INS-1 Invesco Aim Distributors, Inc.
</Table>
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 March 1, 2009 through August 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 (03/01/09) (08/31/09)(1) PERIOD(2) (08/31/09) PERIOD(2) RATIO
- -----------------------------------------------------------------------------------------------------------
Institutional $1,000.00 $1,383.70 $4.51 $1,021.42 $3.82 0.75%
- -----------------------------------------------------------------------------------------------------------
</Table>
(1) The actual ending account value is based on the actual total return of the
Fund for the period March 1, 2009 through August 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
184/365 to reflect the most recent fiscal half year.
AIM STRUCTURED GROWTH FUND
<Table>
- ------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS
The Board of Trustees (the Board) of AIM strategies and limitations of these funds. the year as part of their ongoing
Counselor Series Trust is required under oversight of the Fund, and did not
the Investment Company Act of 1940 to In addition to their meetings identify any particular factor that was
approve annually the renewal of the AIM throughout the year, the Sub-Committees controlling. Each Trustee may have
Structured Growth Fund (the Fund) meet at designated contract renewal evaluated the information provided
investment advisory agreement with Invesco meetings each year to conduct an in-depth differently from another Trustee and
Aim Advisors, Inc. (Invesco Aim) and the review of the performance, fees, expenses, attributed different weight to the various
Master Intergroup Sub-Advisory Contract and other matters related to their factors. The Trustees recognized that the
for Mutual Funds (the sub-advisory assigned funds. During the contract advisory arrangements and resulting
contracts) with Invesco Asset Management renewal process, the Trustees receive advisory fees for the Fund and the other
Deutschland GmbH, Invesco Asset Management comparative performance and fee data AIM Funds are the result of years of
Limited, Invesco Asset Management (Japan) regarding the AIM Funds prepared by an review and negotiation between the
Limited, Invesco Australia Limited, independent company, Lipper, Inc. Trustees and Invesco Aim, that the
Invesco Global Asset Management (N.A.), (Lipper), under the direction and Trustees may focus to a greater extent on
Inc., Invesco Hong Kong Limited, Invesco supervision of the Senior Officer who also certain aspects of these arrangements in
Institutional (N.A.), Inc., Invesco Senior prepares a separate analysis of this some years than in others, and that the
Secured Management, Inc. and Invesco information for the Trustees. Each Trustees' deliberations and conclusions in
Trimark Ltd. (collectively, the Affiliated Sub-Committee then makes recommendations a particular year may be based in part on
Sub-Advisers). During contract renewal to the Investments Committee regarding the their deliberations and conclusions
meetings held on June 16-17, 2009, the fees and expenses of their assigned funds. regarding these same arrangements
Board as a whole, and the disinterested or The Investments Committee considers each throughout the year and in prior years.
"independent" Trustees voting separately, Sub-Committee's recommendations and makes
approved the continuance of the Fund's its own recommendations regarding the fees The discussion below serves as a
investment advisory agreement and the and expenses of the AIM Funds to the full summary of the Senior Officer's
sub-advisory contracts for another year, Board. The Investments Committee also independent written evaluation with
effective July 1, 2009. In doing so, the considers each Sub-Committee's respect to the Fund's investment advisory
Board determined that the Fund's recommendations in making its annual agreement as well as a discussion of the
investment advisory agreement and the recommendation to the Board whether to material factors and related conclusions
sub-advisory contracts are in the best approve the continuance of each AIM Fund's that formed the basis for the Board's
interests of the Fund and its shareholders investment advisory agreement and approval of the Fund's investment advisory
and that the compensation to Invesco Aim sub-advisory contracts for another year. agreement and sub-advisory contracts.
and the Affiliated Sub-Advisers under the Unless otherwise stated, information set
Fund's investment advisory agreement and The independent Trustees met separately forth below is as of June 17, 2009, and
sub-advisory contracts is fair and during their evaluation of the Fund's does not reflect any changes that may have
reasonable. investment advisory agreement and occurred since that date, including but
sub-advisory contracts with independent not limited to changes to the Fund's
THE BOARD'S FUND EVALUATION PROCESS legal counsel. The independent Trustees performance, advisory fees, expense
were also assisted in their annual limitations and/ or fee waivers.
The Board's Investments Committee has evaluation of the Fund's investment
established three Sub-Committees that are advisory agreement by the Senior Officer. FACTORS AND CONCLUSIONS AND SUMMARY OF
responsible for overseeing the management One responsibility of the Senior Officer INDEPENDENT WRITTEN FEE EVALUATION
of a number of the series portfolios of is to manage the process by which the AIM
the AIM Funds. This Sub-Committee Funds' proposed management fees are A. Nature, Extent and Quality of
structure permits the Trustees to focus on negotiated during the annual contract Services Provided by Invesco Aim
the performance of the AIM Funds that have renewal process to ensure that they are
been assigned to them. The Sub-Committees negotiated in a manner that is at arms' The Board reviewed the advisory services
meet throughout the year to review the length and reasonable. Accordingly, the provided to the Fund by Invesco Aim under
performance of their assigned funds, and Senior Officer must either supervise a the Fund's investment advisory agreement,
the Sub-Committees review monthly and competitive bidding process or prepare an the performance of Invesco Aim in
quarterly comparative performance independent written evaluation. The Senior providing these services, and the
information and periodic asset flow data Officer recommended that an independent credentials and experience of the officers
for their assigned funds. These materials written evaluation be provided and, at the and employees of Invesco Aim who
are prepared under the direction and direction of the Board, prepared an provide these services. The Board's review
supervision of the independent Senior independent written evaluation. of the qualifications of Invesco Aim to
Officer, an officer of the AIM Funds who provide these services included the
reports directly to the independent During the annual contract renewal Board's consideration of Invesco Aim's
Trustees. Over the course of each year, process, the Board considered the factors portfolio and product review process,
the Sub-Committees meet with portfolio discussed below in evaluating the fairness various back office support functions
managers for their assigned funds and and reasonableness of the Fund's provided by Invesco Aim and its
other members of management and review investment advisory agreement and affiliates, and Invesco Aim's equity and
with these individuals the performance, sub-advisory contracts. The Board fixed income trading operations. The Board
investment objective(s), policies, considered all of the information provided concluded that the nature, extent and
to them, including information provided at quality of the advisory services provided
their meetings throughout to the Fund by Invesco Aim are appropriate
and that Invesco Aim
24 AIM STRUCTURED GROWTH FUND continued
</Table>
<Table>
currently is providing satisfactory ers by permitting Invesco Aim to utilize noted that some comparative data was at
advisory services in accordance with the the additional resources and talent of the least one year old and that other data did
terms of the Fund's investment advisory Affiliated Sub-Advisers in managing the not reflect the market downturn that
agreement. In addition, based on their Fund. occurred in the fourth quarter of 2008.
ongoing meetings throughout the year with
the Fund's portfolio manager or managers, C. Fund Performance The Board compared the Fund's
the Board concluded that these individuals sub-advisory fee rate to the effective fee
are competent and able to continue to The Board considered Fund performance as a rates (the advisory fee after any advisory
carry out their responsibilities under the relevant factor in considering whether to fee waivers and before any expense
Fund's investment advisory agreement. approve the investment advisory agreement limitations/waivers) of two separately
as well as the sub-advisory contracts for managed accounts/wrap accounts advised by
In determining whether to continue the the Fund, as Invesco Institutional Invesco Institutional. The Board noted
Fund's investment advisory agreement, the currently manages assets of the Fund. that the Fund's sub-advisory fee rate was
Board considered the prior relationship below the rates for the separately managed
between Invesco Aim and the Fund, as well The Board noted that the Fund recently accounts/wrap accounts advised by Invesco
as the Board's knowledge of Invesco Aim's began operations and that only two Institutional. The Board considered that
operations, and concluded that it is calendar years of comparative performance management of the separately managed
beneficial to maintain the current data was available. The Board compared the accounts/wrap accounts by Invesco
relationship, in part, because of such Fund's performance during the one and two Institutional involves different levels of
knowledge. The Board also considered the year periods to the performance of funds services and different operational and
steps that Invesco Aim and its affiliates in the Lipper performance universe that regulatory requirements than Invesco Aim's
continue to take to improve the quality are not managed by Invesco Aim or an and Invesco Institutional's management of
and efficiency of the services they Affiliated Sub-Adviser and against the the Fund. The Board concluded that these
provide to the AIM Funds in the areas of Lipper Multi-Cap Growth Funds Index. The differences are appropriately reflected in
investment performance, product line Board noted that the Fund's performance the fee structure for the Fund.
diversification, distribution, fund was in the fourth quintile of its
operations, shareholder services and performance universe for the one and two The Board noted that Invesco Aim has
compliance. The Board concluded that the year periods (the first quintile being the contractually agreed to waive fees and/ or
quality and efficiency of the services best performing funds and the fifth limit expenses of the Fund through at
Invesco Aim and its affiliates provide to quintile being the worst performing least June 30, 2010 in an amount necessary
the AIM Funds in each of these areas funds). The Board noted that the Fund's to limit total annual operating expenses
support the Board's approval of the performance was below the performance of to a specified percentage of average daily
continuance of the Fund's investment the Index for the one and two year net assets for each class of the Fund. The
advisory agreement. periods. Although the independent written Board considered the effect this expense
evaluation of the Fund's Senior Officer limitation would have on the Fund's
B. Nature, Extent and Quality of only considered Fund performance through estimated total expenses. The Board also
Services Provided by Affiliated the most recent calendar year, the Board noted that Invesco Aim has agreed to
Sub-Advisers also reviewed more recent Fund performance reduce the per account transfer agent fee
and this review did not change their for all the retail funds, including the
The Board reviewed the services provided conclusions. The Board noted that, in Fund, effective July 1, 2009.
by the Affiliated Sub-Advisers under the response to the Board's focus on fund
sub-advisory contracts and the credentials performance, Invesco Aim has taken a The Board also considered the services
and experience of the officers and number of actions intended to improve the provided by the Affiliated Sub-Advisers
employees of the Affiliated Sub-Advisers investment process for the funds. pursuant to the sub-advisory contracts
who provide these services. The Board and the services provided by Invesco Aim
concluded that the nature, extent and D. Advisory and Sub-Advisory Fees and pursuant to the Fund's advisory agreement,
quality of the services provided by the Fee Waivers as well as the allocation of fees between
Affiliated Sub-Advisers are appropriate. Invesco Aim and the Affiliated
The Board noted that the Affiliated The Board compared the Fund's contractual Sub-Advisers pursuant to the sub-advisory
Sub-Advisers, which have offices and advisory fee rate to the contractual contracts. The Board noted that the
personnel that are geographically advisory fee rates of funds in the Fund's sub-advisory fees have no direct effect on
dispersed in financial centers around the Lipper expense group that are not managed the Fund or its shareholders, as they are
world, can provide research and other by Invesco Aim or an Affiliated paid by Invesco Aim to the Affiliated
information and make recommendations on Sub-Adviser, at a common asset level. The Sub-Advisers, and that Invesco Aim and the
the markets and economies of various Board noted that the Fund's contractual Affiliated Sub-Advisers are affiliates.
countries and securities of companies advisory fee rate was below the median
located in such countries or on various contractual advisory fee rate of funds in After taking account of the Fund's
types of investments and investment its expense group. The Board also reviewed contractual advisory fee rate, the
techniques. The Board noted that the methodology used by Lipper in contractual sub-advisory fee rate, the
investment decisions for the Fund are made determining contractual fee rates, which comparative advisory fee information
by Invesco Institutional (N.A.), Inc. includes using audited financial data from discussed above, the expense limitations
(Invesco Institutional). The Board the most recent annual report of each fund and other relevant factors, the Board
concluded that the sub-advisory contracts in the expense group that was publicly concluded that the Fund's advisory and
benefit the Fund and its sharehold- available as of the end of the past sub-advisory fees are fair and reasonable.
calendar year. The Board
25 AIM STRUCTURED GROWTH FUND continued
</Table>
<Table>
E. Economies of Scale and Breakpoints Affiliated Sub-Adviser is financially least June 30, 2010, the advisory fees
sound and has the resources necessary to payable by the Fund in an amount equal to
The Board considered the extent to which perform its obligations under the 100% of the net advisory fees Invesco Aim
there are economies of scale in the sub-advisory contracts, and concluded that receives from the affiliated money market
provision of advisory services to the each Affiliated Sub-Adviser has the funds with respect to the Fund's
Fund. The Board also considered whether financial resources necessary to fulfill investment in the affiliated money market
the Fund benefits from such economies of these obligations. funds of uninvested cash, but not cash
scale through contractual breakpoints in collateral. The Board concluded that the
the Fund's advisory fee schedule. The G. Collateral Benefits to Invesco Aim Fund's investment of uninvested cash and
Board noted that the Fund's contractual and its Affiliates cash collateral from any securities
advisory fee schedule includes seven lending arrangements in the affiliated
breakpoints, but that due to the Fund's The Board considered various other money market funds is in the best
asset level at the end of the past benefits received by Invesco Aim and its interests of the Fund and its
calendar year, the Fund has yet to benefit affiliates resulting from Invesco Aim's shareholders.
from the breakpoints. Based on this relationship with the Fund, including the
information, the Board concluded that the fees received by Invesco Aim and its
Fund's advisory fees would reflect affiliates for their provision of
economies of scale at higher asset levels. administrative, transfer agency and
The Board also noted that the Fund shares distribution services to the Fund. The
directly in economies of scale through Board considered the performance of
lower fees charged by third party service Invesco Aim and its affiliates in
providers based on the combined size of providing these services and the
all of the AIM Funds and affiliates. organizational structure employed by
Invesco Aim and its affiliates to provide
F. Profitability and Financial these services. The Board also considered
Resources that these services are provided to the
Fund pursuant to written contracts that
The Board reviewed information from are reviewed and approved on an annual
Invesco Aim concerning the costs of the basis by the Board. The Board concluded
advisory and other services that Invesco that Invesco Aim and its affiliates are
Aim and its affiliates provide to the Fund providing these services in a satisfactory
and the profitability of Invesco Aim and manner and in accordance with the terms of
its affiliates in providing these their contracts, and are qualified to
services. The Board also reviewed continue to provide these services to the
information concerning the financial Fund.
condition of Invesco Aim and its
affiliates. The Board reviewed with The Board considered the benefits
Invesco Aim the methodology used to realized by Invesco Aim and the Affiliated
prepare the profitability information. The Sub-Advisers as a result of portfolio
Board considered the overall profitability brokerage transactions executed through
of Invesco Ltd., the ultimate parent of "soft dollar" arrangements. The Board
Invesco Aim and the Affiliated noted that soft dollar arrangements shift
Sub-Advisers, and of Invesco Aim, as well the payment obligation for research and
as the profitability of Invesco Aim in execution services from Invesco Aim and
connection with managing the Fund. The the Affiliated Sub-Advisers to the funds
Board noted that Invesco Aim continues to and therefore may reduce Invesco Aim's and
operate at a net profit, although the the Affiliated Sub-Advisers' expenses. The
reduction of assets under management as a Board concluded that Invesco Aim's and the
result of market movements and the Affiliated Sub-Advisers' soft dollar
increase in voluntary fee waivers for arrangements are appropriate. The Board
affiliated money market funds have reduced also concluded that, based on their review
the profitability of Invesco Aim and its and representations made by the Chief
affili-ates. The Board concluded that the Compliance Officer of Invesco Aim, these
Fund's fees are fair and reasonable, and arrangements are consistent with
that the level of profits realized by regulatory requirements.
Invesco Aim and its affiliates from
providing services to the Fund is not The Board considered the fact that the
excessive in light of the nature, quality Fund's uninvested cash and cash collateral
and extent of the services provided. The from any securities lending arrangements
Board considered whether Invesco Aim is may be invested in money market funds
financially sound and has the resources advised by Invesco Aim pursuant to
necessary to perform its obligations under procedures approved by the Board. The
the Fund's investment advisory agreement, Board noted that Invesco Aim will receive
and concluded that Invesco Aim has the advisory fees from these affiliated money
financial resources necessary to fulfill market funds attributable to such
these obligations. The Board also investments, although Invesco Aim has
considered whether each contractually agreed to waive through at
26 AIM STRUCTURED GROWTH FUND
</Table>
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 August 31,
2009:
<Table>
<Caption>
FEDERAL AND STATE INCOME TAX
----------------------------
Qualified Dividend Income* 100%
Corporate Dividends Received Deduction* 100%
U.S. Treasury Obligations* 0.04%
</Table>
* The above percentages are based on ordinary income dividends paid to
shareholders during the Fund's fiscal year.
27 AIM STRUCTURED GROWTH FUND
TRUSTEES AND OFFICERS
The address of each trustee and officer of AIM Counselor Series Trust (the
"Trust"), is 11 Greenway Plaza, Suite 100, Houston, Texas 77046-1173. Each
trustee oversees 105 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. Flanagan(1) -- 1960 2007 Executive Director, Chief Executive Officer and President, None
Trustee Invesco Ltd. (ultimate parent of Invesco Aim and a global
investment management firm); Chairman, Invesco Aim Advisors,
Inc. (registered investment advisor); Trustee, The AIM
Family of Funds(R); 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); Director, Invesco Ltd. and Chairman, Investment
Company Institute
- ------------------------------------------------------------------------------------------------------------------------------------
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 Executive Officer President, 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 registered transfer agent) and AIM GP
Canada Inc. (general partner for limited partnerships);
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
(registered investment advisor and registered transfer
agent) and Invesco Trimark Dealer Inc. (registered broker
dealer); Trustee, President and Principal Executive Officer,
The AIM Family of Funds(R) (other than AIM Treasurer's
Series Trust and Short-Term Investments Trust); Trustee and
Executive Vice President, The AIM Family of Funds(R) (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; Senior Managing Director,
Invesco Holding Company Limited; Trustee and Executive Vice
President, Tax-Free Investments Trust; Director and
Chairman, Fund Management Company (former registered broker
dealer); President and Principal Executive Officer, The AIM
Family of Funds(R) (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.
- ------------------------------------------------------------------------------------------------------------------------------------
INDEPENDENT TRUSTEES
- ------------------------------------------------------------------------------------------------------------------------------------
Bruce L. Crockett -- 1944 2003 Chairman, Crockett Technology Associates (technology ACE Limited (insurance
Trustee and Chair consulting company) company); Captaris, Inc.
(unified messaging
provider); and
Investment Company
Institute
- ------------------------------------------------------------------------------------------------------------------------------------
Bob R. Baker -- 1936 1983 Retired None
Trustee
- ------------------------------------------------------------------------------------------------------------------------------------
Frank S. Bayley -- 1939 2003 Retired None
Trustee
Formerly: Director, Badgley Funds, Inc.
(registered investment company) (2 portfolios)
- ------------------------------------------------------------------------------------------------------------------------------------
James T. Bunch -- 1942 2000 Founder, Green, Manning & Bunch Ltd., (investment banking Board of Governors,
Trustee firm) Western Golf
Association/Evans
Scholars Foundation and
Executive Committee,
United States Golf
Association
- ------------------------------------------------------------------------------------------------------------------------------------
Albert R. Dowden -- 1941 2003 Director of a number of public and private business Board of Nature's
Trustee corporations, including the Boss Group Ltd. (private Sunshine Products, Inc.
investment and management); Continental Energy Services, LLC
(oil and gas pipeline service); Reich & Tang Funds
(registered investment 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.; Director, Annuity and Life Re
(Holdings), Ltd. (reinsurance company); Senior Vice
President, AB Volvo; Director of various public and private
corporations
- ------------------------------------------------------------------------------------------------------------------------------------
Jack M. Fields -- 1952 2003 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), Discovery Global Education Fund (non-profit)
and Cross Timbers Quail Research Ranch (non-profit)
Formerly: Chief Executive Officer, Texana Timber LP
(sustainable forestry company)
- ------------------------------------------------------------------------------------------------------------------------------------
Carl Frischling -- 1937 2003 Partner, law firm of Kramer Levin Naftalis and Frankel LLP Director, Reich & Tang
Trustee Funds (16 portfolios)
- ------------------------------------------------------------------------------------------------------------------------------------
Prema Mathai-Davis -- 1950 2003 Retired None
Trustee
- ------------------------------------------------------------------------------------------------------------------------------------
Lewis F. Pennock -- 1942 2003 Partner, law firm of Pennock & Cooper None
Trustee
- ------------------------------------------------------------------------------------------------------------------------------------
Larry Soll -- 1942 1997 Retired None
Trustee
- ------------------------------------------------------------------------------------------------------------------------------------
Raymond Stickel, Jr. -- 1944 2005 Retired None
Trustee
Formerly: Director, Mainstay 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.
T-1
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 N/A
Senior Vice President and of Funds(R) Formerly: Director of Compliance and Assistant
Senior Officer 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 N/A
Senior Vice President, Chief Counsel, Invesco Aim Management Group, Inc., Invesco Aim
Legal Officer and Secretary Advisors, Inc. 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(R); 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 and General
Counsel, 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 N/A
Vice President President, The AIM Family of Funds(R) 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(R); 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, N/A
Vice President Invesco Ltd.; Director, 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(R)
Formerly: Senior Managing Director and Secretary, Invesco
North American Holdings, Inc.; Vice President and Secretary,
IVZ, Inc. and Invesco Group Services, 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. and Invesco Aim Investment
Services, Inc.; Senior Vice President, Chief Legal Officer
and Secretary, The AIM Family of Funds(R); Director and Vice
President, INVESCO Distributors, Inc.; and Chief Executive
Officer and President, INVESCO Funds Group, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Sheri Morris -- 1964 2003 Vice President, Treasurer and Principal Financial Officer, N/A
Vice President, Treasurer and The AIM Family of Funds(R); and Vice President, Invesco Aim
Principal Financial Officer Advisors, Inc., Invesco Aim Capital Management, Inc. and
Invesco Aim Private Asset Management Inc.
Formerly: Assistant Vice President and Assistant Treasurer,
The AIM Family of Funds(R) and Assistant Vice President,
Invesco Aim Advisors, Inc., Invesco Aim Capital Management,
Inc. and Invesco Aim Private Asset Management, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Karen Dunn Kelley -- 1960 2003 Head of Invesco's World Wide Fixed Income and Cash N/A
Vice President Management Group; Vice President, Invesco Institutional
(N.A.), Inc. (registered investment advisor); 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, Invesco Institutional (N.A.), Inc.
(registered investment advisor); and Director, Invesco
Mortgage Capital Inc.; Vice President, The AIM Family of
Funds(R) (other than AIM Treasurer's Series Trust and
Short-Term Investments Trust); and President and Principal
Executive Officer, The AIM Family of Funds(R) (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(R) (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 N/A
Anti-Money Laundering Advisors, Inc., Invesco Aim Capital Management, Inc.,
Compliance Officer Invesco Aim Distributors, Inc., Invesco Aim Investment
Services, Inc., Invesco Aim Private Asset Management, Inc.
and The AIM Family of Funds(R)
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.; N/A
Chief Compliance Officer Senior Vice President and Chief Compliance Officer, Invesco
Aim Advisors, Inc. and Invesco Aim Capital Management, Inc.;
Chief Compliance Officer, The AIM Family of Funds(R),
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, Inc. Invesco Aim Distributors, Inc. PricewaterhouseCoopers LLP
Suite 100 11 Greenway Plaza 11 Greenway Plaza 1201 Louisiana Street
Houston, TX 77046-1173 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 Services, Inc. State Street Bank and Trust
Young, LLP Kramer, Levin, Naftalis & Frankel LLP P.O. Box 4739 Company
2600 One Commerce Square 1177 Avenue of the Americas Houston, TX 77210-4739 225 Franklin
Philadelphia, PA 19103 New York, NY 10036-2714 Boston, MA 02110-2801
</Table>
T-2
<Table>
[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 - EASY. Download, save and print files using your home
delivery expenses and put more capital back in your computer with a few clicks of your mouse.
fund's returns.
This service is provided by Invesco Aim Investment Services, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
IMPORTANT NOTICE REGARDING DELIVERY OF SECURITY HOLDER DOCUMENTS
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the
same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise.
If you do not want the mailing of these documents to be combined with those for other members of your household, please contact
Invesco Aim Investment Services, Inc. at 800 959 4246 or contact your financial institution. We will begin sending you individual
copies for each account within thirty days after receiving your request.
- ------------------------------------------------------------------------------------------------------------------------------------
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 811-09913 and 333-36074.
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, 2009, 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 January 20, 2010, 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,
exchange-traded 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.
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 Aim Private Asset Management, Inc. and Invesco Global Asset [INVESCO AIM LOGO]
Management (N.A.), Inc. will be merged into Invesco Institutional (N.A.), Inc., and the consolidated adviser - SERVICE MARK -
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 SGRO-AR-1 Invesco Aim Distributors, Inc.
</Table>
[INVESCO AIM LOGO] ANNUAL REPORT TO SHAREHOLDERS AUGUST 31, 2009
- SERVICE MARK - AIM STRUCTURED VALUE FUND
(GRAPHIC)
<Table>
2 Letters to Shareholders
4 Performance Summary
4 Management Discussion
6 Long-Term Fund Performance
8 Supplemental Information
9 Schedule of Investments
12 Financial Statements
14 Notes to Financial Statements
22 Financial Highlights
23 Auditor's Report
24 Fund Expenses
25 Approval of Investment Advisory and Sub-Advisory Agreements
28 Tax Information
T-1 Trustees and Officers
</Table>
<Table>
Dear Shareholders:
While the year covered by this report was difficult -- for long-time investors and veteran
investment professionals alike -- economic conditions and market trends appeared much more
[TAYLOR favorable at the close of the fiscal year than at its start.
PHOTO]
The 12 months ended August 31, 2009, included a sharp market sell-off that occurred in the
second half of 2008. That downturn affected virtually all sectors, markets and investors. The
decline had a number of causes, the most immediate being unprecedented turmoil in credit
markets. Economic uncertainty prompted banks to hoard cash and reduce lending, and caused
Philip Taylor investors to shun short-term corporate debt. As a result, businesses found it difficult to fund
their day-to-day operations, and the U.S. economy -- as well as economies around the globe --
virtually froze briefly.
INCREASED COMMUNICATION
These developments prompted a greater-than-usual number of shareholders to contact me. Some
of you took the time to write a letter while others of you emailed me at phil@invescoaim.com.
Many of you sought explanations for the decline in the value of your accounts, while others asked more general questions about
when the economy might improve. Your questions, comments and suggestions gave me better insight into what was on your minds, and I
was pleased that so many of you took the time to share your thoughts with me.
As a result, Invesco Aim's investment professionals and I have increased our efforts to stay in touch with and share our views
with you. We increased the number of "Investment Perspectives" articles on our website, invescoaim.com. Through these articles,
we've tried to provide timely market commentary, general investor education information and sector updates. I hope you'll take a
moment to read them and let me know if you find them useful.
To access your Fund's latest quarterly commentary, click on "Products and Performance" at the top of our website; next, select
"Mutual Funds"; and then click on "Quarterly Commentary."
I also hope you've stayed in touch with your financial advisor. An experienced financial advisor who is familiar with your
individual investment goals, time horizon and risk tolerance can be a source of comfort and information during uncertain times.
He or she can monitor your investments to ensure they're on track and can prevent you from making impulsive short-term decisions
that may have adverse long-term consequences.
REASONS FOR OPTIMISM
The economy and equity markets reacted to a barrage of negative news during the year. Consumer spending -- which accounts for more
than two-thirds(1) of the U.S. economy -- was sluggish as unemployment rose; more workers worried about their job security; home and
portfolio values declined; and credit became more difficult to obtain.
In his semiannual monetary policy report to Congress in late July, U.S. Federal Reserve Board Chairman Ben Bernanke summarized
the stresses and strains the U.S. and global economies suffered in late 2008 and early 2009. Importantly, he suggested that the
aggressive, coordinated actions taken by governments and central banks around the world finally may be yielding results. He
testified that:
o The pace of overall economic decline appears to have slowed significantly.
o Credit availability, for consumers and businesses, has improved noticeably.
o Investors' extreme risk aversion has eased somewhat.
o The decline in housing activity appears to have moderated.
While these and other trends offer encouragement, uncertainties remain. Chairman Bernanke testified that he anticipates a gradual
recovery in 2010 with some acceleration in economic growth in 2011, together with subdued inflation over the next two years. His
considered judgment appears to be shared by investors who have begun to return, cautiously, to the equities market, causing major
U.S. stock-market indexes to bounce off their March lows.
A SINGLE FOCUS
I believe Invesco Aim is uniquely positioned to serve our clients. Our parent company, Invesco Ltd., is one of the largest(2) and
most diversified global asset managers. It provides clients with diversify ed investment strategies and a range of investment
products managed by distinct management teams around the world. We believe we can serve you best by focusing on one thing and doing
it well: managing your money.
Our investment professionals have managed clients' money in up markets and down markets. All of us here recognize that market
conditions change often; what will not change is our commitment to putting our clients first, helping you achieve your financial
goals and providing excellent customer service.
If you have questions about this report or your account, please contact one of our client services representatives at 800 959
4246.
If you have comments for me, I encourage you to email me at phil@invescoaim.com.
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) Reuters;
(2) Pensions & Investments
2 AIM STRUCTURED VALUE FUND
</Table>
<Table>
Dear Fellow Shareholders:
Although the economy and financial markets have shown some signs of hope, investors remain
rightfully cautious. Staying with an appropriately diversified investment program focused on
your individual long-term goals can be a wise course in such uncertain times. We believe the
[CROCKETT route to financial success is more like a marathon than a sprint.
PHOTO]
Please be assured that your Board continues to oversee the AIM Funds with a strong sense of
responsibility for your money and your trust. As always, we seek to manage costs and enhance
performance in ways that put your interests first.
Bruce Crockett We are near the end of a busy 2009 proxy season, during which Invesco Aim Advisors, Inc.'s
proxy committee votes on your behalf on issues put to a shareholder vote by the companies whose
stock the Funds hold. This year, after careful case-by-case analysis by committee members and
portfolio managers, the proxy committee voted with corporate management less often than in
previous years, focusing on the issues of board independence, Say-On-Pay initiatives, and stock option re-pricing in light of the
market's decline. The committee remained committed to supporting non-binding Say-on-Pay proposals and abstaining from voting on
social issues.
At its June meeting, your Board reviewed and renewed the investment advisory contracts between the AIM Funds and Invesco Aim
Advisors, Inc. You can find the results of this rigorous annual process at invescoaim.com. Go to "Products & Performance" and click
on "Investment Advisory Agreement Renewals."
The website also contains news and market information, investment education and planning information and current reports and
prospectuses for all the AIM Funds and I highly recommend it to you.
You are always welcome to contact me at bruce@brucecrockett.com with any questions or concerns you may have. We look forward to
representing you and serving you in the coming months.
Sincerely,
/s/ Bruce L. Crockett
Bruce L. Crockett
Independent Chair
AIM Funds Board of Trustees
3 AIM STRUCTURED VALUE FUND
</Table>
<Table>
- ---------------------------------------------------------------------------------------
MANAGEMENT'S DISCUSSION OF FUND PERFORMANCE determine which companies should be bought
or sold within the portfolio.
- ---------------------------------------------------------------------------------------
PERFORMANCE SUMMARY ------------------------------------------
MARKET CONDITIONS AND YOUR FUND
For the fiscal year ended August 31, 2009, AIM Structured Value Fund, at net asset
value, held up better than its style-specific benchmark, the Russell 1000 Value Index. The fiscal year ended August 31, 2009,
These results were largely due to strong stock selection within the financials sector included the worst U.S. economic downturn
- -- an area highly affected by the ongoing economic recession. since the Great Depression.(1) An
overheated housing market was the primary
Your Fund's long-term performance appears later in this report. the recession. When home prices fell,
cause of financial instruments linked to
- --------------------------------------------------------------------------------------- that market declined in value, causing
FUND VS. INDEXES significant pressures in other areas of
the economy. Beginning in the first
Total returns, 8/31/08 to 8/31/09, at net asset value (NAV). Performance shown does not quarter of 2008, gross domestic product
include applicable contingent deferred sales charges (CDSC) or front-end sales charges, (the total output of goods and services in
which would have reduced performance. the U.S. economy) contracted in five out
of six subsequent quarters.(1)
Class A Shares -15.95% Unemployment, which stood at 4.9% in
Class B Shares -16.60 January 2008, nearly doubled to 9.7% in
Class C Shares -16.51 August 2009, as economic distress
Class R Shares -16.01 reverberated throughout the economy.(2)
Class Y Shares* -15.79
S&P 500 Index(triangle) (Broad Market Index) -18.25 With this backdrop of dire economic
Russell 1000 Value Index(triangle) (Style-Specific Index) -20.27 news, the large cap equity market -- as
Lipper Large-Cap Value Funds Indexo (Peer Group Index) -16.78 measured by the S&P 500 Index --
experienced two extremes over the last
(triangle) Lipper Inc. year, creating a "tale of two markets".
From August 31, 2008 through the market's
* Share class incepted during the fiscal year. See page 7 for a detailed explanation bottom on March 9, 2009, the S&P 500 Index
of Fund performance. fell 46.4%.3 From March 9th through August
31, 2009, however, the S&P 500 Index
- ------------------------------------------ rebounded sharply, gaining 52.6%.(3)
HOW WE INVEST factors: company earnings momentum, price
trend, management action and relative Until the market low, market
We manage your Fund to provide exposure to valuation. The scores from these four participants largely shunned investment
large cap value equity stocks. The factors are combined to arrive at an risk. Company fundamentals were subject to
portfolio strives to outperform the overall alpha score (excess return intense scrutiny; where perceived
Russell 1000 Value Index while minimizing forecast) for each stock. Each alpha score instability in a company caused its
the amount of additional risk relative to is relative to the other securities within security price to decline. Leverage was
the benchmark. The Fund can be used as a the same industry. Stocks also are shunned; cash and income were embraced.
long-term allocation to large cap stocks evaluated on a multitude of other factors After March, however, investors gradually
that complements other style-specific to develop a stock-specific risk forecast became risk consumers again and market
strategies within a diversified asset and transaction cost forecast. leadership changed abruptly.
allocation strategy.
We then incorporate the alpha forecast, As large cap stocks began to recover,
Our investment process integrates the risk forecast and transaction cost they were led by low-quality stocks, many
following key steps: forecast using an optimizer (a software of which were the hardest-hit during the
tool) to build a portfolio that we believe collapse. Our review of data for the March
o Universe development is an optimal balance of the stocks' through August 2009 time period
potential return and risk. This portfolio
o Stock rankings is constructed according to certain
constraints to increase the probability
o Risk assessment that the Fund's relative performance and
volatility remain within the Fund
o Portfolio construction strategy's guidelines. We continually
monitor the portfolio and the overall
o Trading investment process is repeated on a
monthly basis to
While the companies included within the
Russell 1000 Value Index are used as a
general guide for developing the Fund's
investable universe, non-benchmark stocks
also may be considered. Each stock in the
universe is evaluated on four
- ------------------------------------------ ------------------------------------------ ------------------------------------------
PORTFOLIO COMPOSITION TOP FIVE INDUSTRIES* TOP 10 EQUITY HOLDINGS*
By sector 1. Integrated Oil & Gas 16.2% 1. Exxon Mobil Corp. 6.7%
2. Property & Casualty Insurance 9.2 2. General Electric Co. 4.8
Financials 23.3% 3. Integrated Telecommunication 3. AT&T Inc. 4.6
Energy 17.3 Services 7.6 4. Chevron Corp. 4.2
Consumer Discretionary 15.7 4. Pharmaceuticals 6.4 5. Verizon Communications Inc. 2.8
Health Care 12.4 5. Industrial Conglomerates 4.9 6. ConocoPhillips 2.7
Telecommunication Services 9.1 7. Occidental Petroleum Corp. 2.6
Industrials 7.4 ------------------------------------------ 8. Travelers Cos., Inc. (The) 2.5
Information Technology 5.4 Total Net Assets $74.2 million 9. Goldman Sachs Group, Inc. (The) 2.5
Materials 3.0 Total Number of Holdings* 111 10. Pfizer Inc. 2.2
Consumer Staples 2.8
Utilities 2.3 The Fund's holdings are subject to change, and there is no assurance that the Fund will
U.S. Treasury Bills, Money Market continue to hold any particular security.
Funds Plus Other Assets Less
Liabilities 1.3 * Excluding money market fund holdings.
4 AIM STRUCTURED VALUE FUND
</Table>
<Table>
showed that those stocks that outperformed rebound in early March, the materials JEREMY LEFKOWITZ
their industry peers tended to be smaller, sector outperformed the benchmark.
lower-priced, and more illiquid. Portfolio manager, is lead manager of AIM
Perversely, stocks that outperformed their In relative terms of risk management, we Structured Value Fund. He began his
industry peers also tended to exhibit seek to minimize any style biases in the investment career in 1968 and has been
fundamental weakness. For example, portfolio. Active managers typically add associated with Invesco Institutional
companies that outperformed tended to be value in one of or a combination of four and/or its affiliates since 1982. Mr.
those that were expected to lose money areas: beta bias (relative volatility), Lefkowitz earned a B.S. in industrial
over the coming fiscal year, had negative style bias, sector/industry over/under engineering and an M.B.A. in finance from
cash flow coming into this period, had weight and stock selection. We attempt to Columbia University.
their earnings forecasts slashed by 50% or add value through our stock selection
more by analysts, were highly levered, and decisions. Consequently, our risk DANIEL KOSTYK
saw their prices decline dramatically over management process seeks to neutralize the
the prior six months. These are not Fund's exposure relative to the benchmark Chartered Financial Analyst, portfolio
characteristics of stocks that we seek to with regard to beta, style and manager, is manager of AIM Structured
include in your Fund, because our research sector/industry exposures. Value Fund. He has been associated with
found that such stocks tend to lead to We thank you for your continued Invesco Institutional and/or its
long-term investing failure. investment in AIM Structured Value Fund. affiliates since 1995. Mr. Kostyk earned a
B.S. in mechanical engineering from
Regarding the results of AIM Structured (1) Bureau of Economic Analysis Northwestern University in Chicago and an
Value Fund, it is important to understand M.B.A. in finance from the University of
our investment process to better evaluate (2) Bureau of Labor Statistics Chicago.
the drivers of our relative performance
versus the style-specific benchmark. We (3) Lipper Inc. ANTHONY MUNCHAK
generally evaluate performance based on
the impact of our stock selection and risk The views and opinions expressed in Chartered Financial Analyst, portfolio
management processes. management's discussion of Fund manager, is manager of AIM Structured
performance are those of Invesco Aim Value Fund. He has been associated with
Our stock selection model, based on the Advisors, Inc. These views and opinions Invesco Institutional and/or its
four factors (company earnings momentum, are subject to change at any time based on affiliates since 2000. Mr. Munchak earned
price trend, management action and factors such as market and economic a B.S. and an M.S. from Boston College. He
relative value) that make up our alpha conditions. These views and opinions may also earned an M.B.A. from Bentley
(excess return) forecast for stocks in our not be relied upon as investment advice or College.
investment universe, was a detractor from recommendations, or as an offer for a
Fund performance. In selecting holdings particular security. The information is GLEN MURPHY
for the Fund, we also take into account not a complete analysis of every aspect of
our risk and transaction cost forecasts. any market, country, industry, security or Chartered Financial Analyst, portfolio
We use our optimization software to assist the Fund. Statements of fact are from manager, is manager of AIM Structured
in making investment decisions, based on sources considered reliable, but Invesco Value Fund. He has been associated with
risk and transaction cost forecasts as Aim Advisors, Inc. makes no representation Invesco Institutional and/or its
well as our alpha forecast. Consequently, or warranty as to their completeness or affiliates since 1995. Mr. Murphy earned a
while our stock selection model may accuracy. Although historical performance B.B.A. from the University of
identify a stock with an attractive alpha is no guarantee of future results, these Massachusetts and an M.S. in finance from
forecast, the optimizer may indicate that insights may help you understand our Boston College.
its transaction costs are too high and/or investment management philosophy.
its risk level is unacceptable. Placing FRANCIS ORLANDO
more of an emphasis on transaction costs See important Fund and index disclosures
and potential risk in making stock later in this report. Chartered Financial Analyst, portfolio
selections can benefit or detract from manager, is manager of AIM Structured
Fund performance. For the fiscal year, it Value Fund. He has been associated with
contributed to our results. Invesco Institutional and/or its
affiliates since 1987. Mr. Orlando earned
Our stock selection within the a B.B.A. from Merrimack College and an
portfolio was strong for the fiscal year, M.B.A. from Boston College.
particularly in the financials sector. A
timely overweight in insurance company XL Assisted by the Global Quantitative Equity
CAPITAL LIMITED was one of the biggest Research Team
contributors to Fund performance. Stock
selection and an overweight position in
the consumer discretionary sector
benefited Fund performance. Conversely,
stock selection and an underweight
position in the materials sector detracted
from Fund performance. As the market began
to
5 AIM STRUCTURED VALUE FUND
</Table>
<Table>
YOUR FUND'S LONG-TERM PERFORMANCE
RESULTS OF A $10,000 INVESTMENT -- OLDEST SHARE CLASSES WITH SALES CHARGES SINCE INCEPTION
Fund and index data from 3/31/06
</Table>
(PERFORMANCE GRAPH)
<Table>
<Caption>
AIM AIM AIM AIM LIPPER
FUND DATA FROM STRUCTURED STRUCTURED STRUCTURED STRUCTURED LARGE-
03/31/06, VALUE VALUE VALUE VALUE CAP
INDEX DATA FUND- FUND- FUND- FUND- RUSSELL S&P VALUE
FROM CLASS A CLASS B CLASS C CLASS R 1000 VALUE 500 FUNDS
03/31/06 SHARES SHARES SHARES SHARES INDEX(1) INDEX(1) INDEX(1)
- -------------- ---------- ---------- ---------- ---------- ---------- -------- --------
3/31/2006 9450 10000 10000 10000 10000 10000 10000
04/06 9639 10190 10190 10200 10254 10134 10249
05/06 9318 9850 9850 9860 9995 9843 9998
06/06 9441 9970 9970 9981 10059 9856 10005
07/06 9724 10260 10260 10281 10304 9917 10158
08/06 9866 10399 10399 10421 10476 10152 10346
09/06 10027 10569 10569 10601 10685 10414 10586
10/06 10377 10929 10929 10971 11035 10753 10902
11/06 10614 11180 11180 11221 11286 10957 11090
12/06 10748 11307 11307 11347 11540 11111 11329
01/07 11015 11588 11577 11628 11687 11279 11475
02/07 10740 11287 11287 11338 11505 11059 11270
03/07 10987 11538 11537 11598 11683 11182 11414
04/07 11385 11949 11948 12010 12115 11677 11903
05/07 11746 12319 12318 12392 12552 12084 12341
06/07 11338 11889 11879 11961 12258 11884 12153
07/07 10711 11219 11218 11298 11692 11516 11665
08/07 10834 11349 11338 11429 11823 11688 11803
09/07 11204 11729 11718 11811 12229 12125 12177
10/07 11338 11859 11848 11952 12230 12318 12273
11/07 10691 11169 11157 11258 11632 11802 11745
12/07 10667 11143 11132 11243 11520 11721 11608
01/08 10139 10581 10570 10675 11058 11018 11020
02/08 9825 10254 10243 10355 10595 10660 10649
03/08 9699 10110 10110 10211 10515 10614 10501
04/08 10149 10580 10570 10685 11028 11131 11021
05/08 10178 10600 10590 10706 11010 11275 11114
06/08 9326 9711 9700 9809 9957 10325 10143
07/08 9267 9639 9629 9747 9921 10239 10005
08/08 9346 9710 9700 9819 10089 10387 10119
09/08 8749 9087 9076 9190 9348 9462 9267
10/08 7311 7584 7584 7683 7730 7873 7713
11/08 6920 7185 7175 7271 7175 7308 7151
12/08 7133 7401 7402 7498 7275 7385 7313
01/09 6220 6445 6456 6538 6438 6763 6663
02/09 5588 5790 5790 5874 5578 6046 5941
03/09 6120 6331 6331 6433 6055 6574 6454
04/09 6753 6986 6976 7086 6704 7203 7061
05/09 7013 7246 7246 7371 7119 7605 7523
06/09 6933 7153 7152 7276 7066 7621 7508
07/09 7525 7766 7755 7888 7645 8196 8083
08/09 7856 7865 8099 8244 8044 8492 8422
(1) Lipper Inc.
Past performance cannot guarantee investment in the Fund at the close of the Performance shown in the chart and
comparable future results. reporting period and paid the applicable table(s) does not reflect deduction of
contingent deferred sales charges. Index taxes a shareholder would pay on Fund
The data shown in the chart include results include reinvested dividends, but distributions or sale of Fund shares.
reinvested distributions, applicable sales they do not reflect sales charges.
charges and Fund expenses including Performance of the peer group reflects
management fees. Results for Class B fund expenses and management fees;
shares are calculated as if a hypothetical performance of a market index does not.
shareholder had liquidated his entire
6 AIM STRUCTURED VALUE FUND
</Table>
<Table>
- ------------------------------------------ ------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS AVERAGE ANNUAL TOTAL RETURNS SHARES DO NOT HAVE A FRONT-END SALES
CHARGE; RETURNS SHOWN ARE AT NET ASSET
As of 8/31/09, including maximum applicable As of 6/30/09, the most recent calendar VALUE AND DO NOT REFLECT A 0.75% CDSC THAT
sales charges quarter-end, including maximum applicable MAY BE IMPOSED ON A TOTAL REDEMPTION OF
sales charges RETIREMENT PLAN ASSETS WITHIN THE FIRST
CLASS A SHARES YEAR. CLASS Y SHARES DO NOT HAVE A
Inception (3/31/06) -6.82% CLASS A SHARES FRONT-END SALES CHARGE OR A CDSC;
1 Year -20.61 Inception (3/31/06) -10.66% THEREFORE, PERFORMANCE IS AT NET ASSET
1 Year -29.73 VALUE.
CLASS B SHARES
Inception (3/31/06) -6.78% CLASS B SHARES THE PERFORMANCE OF THE FUND'S SHARE
1 Year -20.70 Inception (3/31/06) -10.61% CLASSES WILL DIFFER PRIMARILY DUE TO
1 Year -29.96 DIFFERENT SALES CHARGE STRUCTURES AND
CLASS C SHARES CLASS EXPENSES.
Inception (3/31/06) -5.98% CLASS C SHARES
1 Year -17.33 Inception (3/31/06) -9.80% HAD THE ADVISOR NOT WAIVED FEES AND/OR
1 Year -26.99 REIMBURSED EXPENSES, PERFORMANCE WOULD
CLASS R SHARES HAVE BEEN LOWER.
Inception (3/31/06) -5.49% CLASS R SHARES
1 Year -16.01 Inception (3/31/06) -9.33% (1) Total annual operating expenses less
1 Year -25.82 any contractual fee waivers and/or
CLASS Y SHARES expense reimbursements by the advisor
Inception -5.21% CLASS Y SHARES in effect through at least June 30,
1 Year -15.79 Inception -9.08% 2010. See current prospectus for more
1 Year -25.62 information.
CLASS Y SHARES' INCEPTION DATE IS OCTOBER THE NET ANNUAL FUND OPERATING EXPENSE
3, 2008; RETURNS SINCE THAT DATE ARE RATIO SET FORTH IN THE MOST RECENT FUND
ACTUAL RETURNS. ALL OTHER RETURNS ARE PROSPECTUS AS OF THE DATE OF THIS REPORT
BLENDED RETURNS OF ACTUAL CLASS Y SHARE FOR CLASS A, CLASS B, CLASS C, CLASS R AND
PERFORMANCE AND RESTATED CLASS A SHARE CLASS Y SHARES WAS 1.01%, 1.76%, 1.76%,
PERFORMANCE (FOR PERIODS PRIOR TO THE 1.26%, AND 0.76%, RESPECTIVELY.(1) THE TOTAL
INCEPTION DATE OF CLASS Y SHARES) AT NET ANNUAL FUND OPERATING EXPENSE RATIO SET
ASSET VALUE. THE RESTATED CLASS A SHARE FORTH IN THE MOST RECENT FUND PROSPECTUS
PERFORMANCE REFLECTS THE RULE 12B-1 FEES AS OF THE DATE OF THIS REPORT FOR CLASS A,
APPLICABLE TO CLASS A SHARES AS WELL AS CLASS B, CLASS C, CLASS R AND CLASS Y
ANY FEE WAIVERS OR EXPENSE REIMBURSEMENTS SHARES WAS 1.42%, 2.17%, 2.17%, 1.67% AND
RECEIVED BY CLASS A SHARES. CLASS A 1.17% RESPECTIVELY. THE EXPENSE RATIOS
SHARES' INCEPTION DATE IS MARCH 31, 2006. PRESENTED ABOVE MAY VARY FROM THE EXPENSE
RATIOS PRESENTED IN OTHER SECTIONS OF THIS
THE PERFORMANCE DATA QUOTED REPRESENT REPORT THAT ARE BASED ON EXPENSES INCURRED
PAST PERFORMANCE AND CANNOT GUARANTEE DURING THE PERIOD COVERED BY THIS REPORT.
COMPARABLE FUTURE RESULTS; CURRENT
PERFORMANCE MAY BE LOWER OR HIGHER. PLEASE CLASS A SHARE PERFORMANCE REFLECTS THE
VISIT INVESCOAIM.COM FOR THE MOST RECENT MAXIMUM 5.50% SALES CHARGE, AND CLASS B
MONTH-END PERFORMANCE. PERFORMANCE FIGURES AND CLASS C SHARE PERFORMANCE REFLECTS THE
REFLECT REINVESTED DISTRIBUTIONS, CHANGES APPLICABLE CONTINGENT DEFERRED SALES
IN NET ASSET VALUE AND THE EFFECT OF THE CHARGE (CDSC) FOR THE PERIOD INVOLVED. THE
MAXIMUM SALES CHARGE UNLESS OTHERWISE CDSC ON CLASS B SHARES DECLINES FROM 5%
STATED. INVESTMENT RETURN AND PRINCIPAL BEGINNING AT THE TIME OF PURCHASE TO 0% AT
VALUE WILL FLUCTUATE SO THAT YOU MAY HAVE THE BEGINNING OF THE SEVENTH YEAR. THE
A GAIN OR LOSS WHEN YOU SELL SHARES. CDSC ON CLASS C SHARES IS 1% FOR THE FIRST
YEAR AFTER PURCHASE. CLASS R
7 AIM STRUCTURED VALUE FUND
</Table>
<Table>
- ------------------------------------------------------------------------------------------------------------------------------------
AIM STRUCTURED VALUE FUND'S INVESTMENT OBJECTIVE IS LONG-TERM GROWTH OF CAPITAL.
o Unless otherwise stated, information presented in this report is as of August 31, 2009, and is based on total net assets.
o Unless otherwise noted, all data provided by Invesco Aim.
ABOUT SHARE CLASSES
o Effective September 30, 2003, for investment has a greater effect on Large-Cap Value Funds category. These
qualified plans only, those previously the Fund's overall performance, and funds typically have a below-
established are eligible to purchase any change in the value of those average price-to-earnings ratio,
Class B shares of any AIM fund. Please securities could significantly affect price-to-book ratio, and three-year
see the prospectus for more the value of your investment in the sales-per-share growth value,
information. Fund. compared to the S&P 500 Index.
o Class R shares are available only to o Credit risk is the risk of loss on an o The Fund is not managed to track the
certain retirement plans. Please see investment due to the deterioration of performance of any particular index,
the prospectus for more information. an issuer's financial health. Such a including the indexes defined here, and
deterioration of financial health may consequently, the performance of the
o Class Y shares are available to only result in a reduction of the credit Fund may deviate significantly from the
certain investors. Please see the rating of the issuer's securities and performance of the indexes.
prospectus for more information. may lead to the issuer's inability to
honor its contractual obligations, o A direct investment cannot be made in
PRINCIPAL RISKS OF INVESTING including making timely payment of an index. Unless otherwise indicated,
IN THE FUND interest and principal. index results include reinvested
dividends, and they do not reflect
o There is no guarantee that the sales charges. Performance of an index
o The Fund may use enhanced investment investment techniques and risk analysis of funds reflects fund expenses;
techniques such as derivatives. The used by the Fund's portfolio managers performance of a market index does not.
principal risk of derivatives is that will produce the desired results.
the fluctuations in their values may ------------------------------------------
not correlate perfectly with the o The prices of securities held by the OTHER INFORMATION
overall securities markets. Derivatives Fund may decline in response to market
are subject to counterparty risk -- the risks. o The Chartered Financial Analysts(R)
risk that the other party will not (CFA(R)) designation is globally
complete the transaction with the Fund. o The Fund invests in "value" stocks, recognized and attests to a
which can continue to be inexpensive charterholder's success in a rigorous
o Prices of equity securities change in for long periods of time and may never and comprehensive study program in the
response to many factors, including the realize their full value. field of investment management and
historical and prospective earnings of research analysis.
the issuer, the value of its assets, ------------------------------------------
general economic conditions, interest ABOUT INDEXES USED IN THIS REPORT o The returns shown in management's
rates, investor perceptions and market discussion of Fund performance are
liquidity. o The S&P 500(R) INDEX is a market based on net asset values calculated
capitalization-weighted index covering for shareholder transactions. Generally
o Foreign securities have additional all major areas of the U.S. economy. It accepted accounting principles require
risks, including exchange rate changes, is not the 500 largest companies, but adjustments to be made to the net
political and economic upheaval, rather the most widely held 500 assets of the Fund at period end for
relative lack of information, companies chosen with respect to market financial reporting purposes, and as
relatively low market liquidity, and size, liquidity and their industry. such, the net asset values for
the potential lack of strict financial shareholder transactions and the
and accounting controls and standards. o The RUSSELL 1000(R) VALUE INDEX returns based on those net asset values
measures the performance of those may differ from the net asset values
o Interest rate risk refers to the risk Russell 1000 companies with lower and returns reported in the Financial
that bond prices generally fall as price-to-book ratios and lower Highlights.
interest rates rise and vice versa. forecasted growth values. The Russell
1000 Value Index is a trademark/ o Industry classifications used in this
o Leveraging entails risks such as service mark of the Frank Russell report are generally according to the
magnifying changes in the value of the Company. Russell(R) is a trademark of Global Industry Classification
portfolio's securities. the Frank Russell Company. Standard, which was developed by and is
the exclusive property and a service
o Since a large percentage of the Fund's o The LIPPER LARGE-CAP VALUE FUNDS INDEX mark of MSCI Inc. and Standard &
assets may be invested in securities of is an equally weighted representation Poor's.
a limited number of companies, each of the largest funds in the Lipper
------------------------------------------
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 ASAVX
INVESTORS SHOULD READ IT CAREFULLY BEFORE INVESTING. Class B Shares ASBVX
Class C Shares SBCVX
- --------------------------------------------------------------------------------------- Class R Shares ASRVX
NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE Class Y Shares ASAYX
8 AIM STRUCTURED VALUE FUND
</Table>
SCHEDULE OF INVESTMENTS(a)
August 31, 2009
<Table>
<Caption>
SHARES VALUE
- -----------------------------------------------------------------------------
COMMON STOCKS & OTHER EQUITY INTERESTS-98.67%
AEROSPACE & DEFENSE-1.46%
United Technologies Corp. 18,200 $ 1,080,352
=============================================================================
AGRICULTURAL PRODUCTS-0.79%
Archer-Daniels-Midland Co. 20,300 585,249
=============================================================================
APPAREL RETAIL-2.68%
Foot Locker, Inc. 90,800 967,928
- -----------------------------------------------------------------------------
Gap, Inc. (The) 52,000 1,021,800
=============================================================================
1,989,728
=============================================================================
APPAREL, ACCESSORIES & LUXURY GOODS-1.03%
Jones Apparel Group, Inc. 49,000 763,910
=============================================================================
APPLICATION SOFTWARE-0.11%
TIBCO Software Inc.(b) 9,200 81,604
=============================================================================
ASSET MANAGEMENT & CUSTODY BANKS-0.71%
Bank of New York Mellon Corp. 17,800 527,058
=============================================================================
AUTOMOBILE MANUFACTURERS-0.17%
Ford Motor Co.(b) 16,200 123,120
=============================================================================
AUTOMOTIVE RETAIL-0.13%
AutoNation, Inc.(b) 5,100 96,798
=============================================================================
BIOTECHNOLOGY-2.49%
Amgen Inc.(b) 22,200 1,326,228
- -----------------------------------------------------------------------------
Biogen Idec Inc.(b) 5,700 286,197
- -----------------------------------------------------------------------------
Facet Biotech Corp.(b) 11,000 110,440
- -----------------------------------------------------------------------------
PDL BioPharma Inc. 14,300 129,415
=============================================================================
1,852,280
=============================================================================
BROADCASTING-0.42%
CBS Corp.-Class B 12,200 126,270
- -----------------------------------------------------------------------------
CTC Media, Inc.(b) 13,900 184,870
=============================================================================
311,140
=============================================================================
CABLE & SATELLITE-0.04%
DISH Network Corp.-Class A(b) 2,000 32,620
=============================================================================
COAL & CONSUMABLE FUELS-0.05%
Peabody Energy Corp. 1,100 35,948
=============================================================================
COMMERCIAL PRINTING-0.23%
Deluxe Corp. 10,200 170,442
=============================================================================
COMMUNICATIONS EQUIPMENT-0.61%
3Com Corp.(b) 81,000 352,350
- -----------------------------------------------------------------------------
Harris Stratex Networks, Inc.-Class A(b) 16,300 98,778
=============================================================================
451,128
=============================================================================
COMPUTER & ELECTRONICS RETAIL-2.29%
RadioShack Corp. 90,500 1,369,265
- -----------------------------------------------------------------------------
Rent-A-Center, Inc.(b) 16,600 327,518
=============================================================================
1,696,783
=============================================================================
COMPUTER HARDWARE-0.38%
International Business Machines Corp. 2,400 283,320
=============================================================================
COMPUTER STORAGE & PERIPHERALS-2.21%
EMC Corp.(b) 19,900 316,410
- -----------------------------------------------------------------------------
QLogic Corp.(b) 32,500 513,825
- -----------------------------------------------------------------------------
Western Digital Corp.(b) 23,600 809,008
=============================================================================
1,639,243
=============================================================================
CONSTRUCTION & ENGINEERING-0.15%
Dycom Industries, Inc.(b) 10,000 112,200
=============================================================================
CONSTRUCTION, FARM MACHINERY & HEAVY TRUCKS-0.69%
Navistar International Corp.(b) 6,400 276,736
- -----------------------------------------------------------------------------
Oshkosh Corp. 7,100 238,560
=============================================================================
515,296
=============================================================================
CONSUMER FINANCE-1.51%
American Express Co. 33,200 1,122,824
=============================================================================
DEPARTMENT STORES-0.93%
Sears Holdings Corp.(b) 10,900 691,605
=============================================================================
DIVERSIFIED BANKS-0.67%
Wells Fargo & Co. 18,200 500,864
=============================================================================
DIVERSIFIED CHEMICALS-0.52%
Ashland Inc. 10,600 388,808
=============================================================================
DIVERSIFIED METALS & MINING-0.83%
Freeport-McMoRan Copper & Gold Inc. 5,700 358,986
- -----------------------------------------------------------------------------
Southern Copper Corp. (Peru) 9,200 259,992
=============================================================================
618,978
=============================================================================
EDUCATION SERVICES-0.82%
Apollo Group, Inc.-Class A(b) 7,800 505,596
- -----------------------------------------------------------------------------
Career Education Corp.(b) 4,300 102,125
=============================================================================
607,721
=============================================================================
ELECTRIC UTILITIES-0.64%
Exelon Corp. 9,500 475,190
=============================================================================
GENERAL MERCHANDISE STORES-0.24%
Family Dollar Stores, Inc. 5,900 178,652
=============================================================================
</Table>
See accompanying Notes to Financial Statements which are an integral part of the
financial statements.
9 AIM STRUCTURED VALUE FUND
<Table>
<Caption>
SHARES VALUE
- -----------------------------------------------------------------------------
HEALTH CARE EQUIPMENT-0.71%
Boston Scientific Corp.(b) 40,900 $ 480,575
- -----------------------------------------------------------------------------
Kinetic Concepts, Inc.(b) 1,400 44,730
=============================================================================
525,305
=============================================================================
HEALTH CARE FACILITIES-0.05%
Healthsouth Corp.(b) 2,500 39,025
=============================================================================
HEALTH CARE SERVICES-0.36%
Omnicare, Inc. 11,600 265,524
=============================================================================
HOME IMPROVEMENT RETAIL-1.08%
Home Depot, Inc. (The) 29,300 799,597
=============================================================================
HOMEBUILDING-3.75%
D.R. Horton, Inc. 112,100 1,503,261
- -----------------------------------------------------------------------------
KB Home 28,600 520,806
- -----------------------------------------------------------------------------
M.D.C. Holdings, Inc. 4,900 183,554
- -----------------------------------------------------------------------------
NVR, Inc.(b) 360 243,090
- -----------------------------------------------------------------------------
Ryland Group, Inc. (The) 14,600 334,632
=============================================================================
2,785,343
=============================================================================
HOUSEHOLD PRODUCTS-1.68%
Procter & Gamble Co. (The) 23,000 1,244,530
=============================================================================
INDEPENDENT POWER PRODUCERS & ENERGY TRADERS-1.66%
Mirant Corp.(b) 73,300 1,235,105
=============================================================================
INDUSTRIAL CONGLOMERATES-4.92%
3M Co. 1,000 72,100
- -----------------------------------------------------------------------------
General Electric Co. 257,400 3,577,860
=============================================================================
3,649,960
=============================================================================
INTEGRATED OIL & GAS-16.24%
Chevron Corp. 44,500 3,112,330
- -----------------------------------------------------------------------------
ConocoPhillips 44,700 2,012,841
- -----------------------------------------------------------------------------
Exxon Mobil Corp. 71,900 4,971,885
- -----------------------------------------------------------------------------
Murphy Oil Corp. 600 34,200
- -----------------------------------------------------------------------------
Occidental Petroleum Corp. 26,300 1,922,530
=============================================================================
12,053,786
=============================================================================
INTEGRATED TELECOMMUNICATION SERVICES-7.60%
AT&T Inc. 132,100 3,441,205
- -----------------------------------------------------------------------------
Qwest Communications International Inc. 42,100 151,139
- -----------------------------------------------------------------------------
Verizon Communications Inc. 66,100 2,051,744
=============================================================================
5,644,088
=============================================================================
INTERNET SOFTWARE & SERVICES-0.27%
eBay Inc.(b) 9,000 199,260
=============================================================================
INVESTMENT BANKING & BROKERAGE-2.45%
Goldman Sachs Group, Inc. (The) 11,000 1,820,060
=============================================================================
IT CONSULTING & OTHER SERVICES-0.13%
Acxiom Corp.(b) 10,600 96,672
=============================================================================
LIFE & HEALTH INSURANCE-2.87%
Aflac, Inc. 21,600 877,392
- -----------------------------------------------------------------------------
Prudential Financial, Inc. 15,200 768,816
- -----------------------------------------------------------------------------
Unum Group 21,400 482,142
=============================================================================
2,128,350
=============================================================================
MANAGED HEALTH CARE-2.30%
UnitedHealth Group Inc. 57,300 1,604,400
- -----------------------------------------------------------------------------
WellPoint Inc.(b) 2,000 105,700
=============================================================================
1,710,100
=============================================================================
MOVIES & ENTERTAINMENT-0.19%
Time Warner Inc. 5,000 139,550
=============================================================================
MULTI-LINE INSURANCE-0.17%
Loews Corp. 3,700 126,355
=============================================================================
OIL & GAS EQUIPMENT & SERVICES-0.07%
Oil States International, Inc.(b) 1,800 53,046
=============================================================================
OIL & GAS EXPLORATION & PRODUCTION-0.70%
Apache Corp. 6,100 518,195
=============================================================================
OIL & GAS REFINING & MARKETING-0.20%
Tesoro Corp. 10,500 147,840
=============================================================================
OTHER DIVERSIFIED FINANCIAL SERVICES-3.61%
Bank of America Corp. 56,700 997,353
- -----------------------------------------------------------------------------
Citigroup Inc. 96,100 480,500
- -----------------------------------------------------------------------------
JPMorgan Chase & Co. 27,700 1,203,842
=============================================================================
2,681,695
=============================================================================
PAPER PACKAGING-0.63%
Temple-Inland Inc. 27,500 465,025
=============================================================================
PAPER PRODUCTS-0.41%
International Paper Co. 13,300 305,235
=============================================================================
PHARMACEUTICALS-6.44%
Eli Lilly and Co. 10,900 364,714
- -----------------------------------------------------------------------------
Forest Laboratories, Inc.(b) 12,900 377,583
- -----------------------------------------------------------------------------
King Pharmaceuticals, Inc.(b) 12,800 132,864
- -----------------------------------------------------------------------------
Merck & Co., Inc. 25,000 810,750
- -----------------------------------------------------------------------------
Pfizer Inc. 97,900 1,634,930
- -----------------------------------------------------------------------------
Schering-Plough Corp. 3,700 104,266
- -----------------------------------------------------------------------------
Sepracor Inc.(b) 15,700 284,955
- -----------------------------------------------------------------------------
Valeant Pharmaceuticals International(b) 13,600 352,104
- -----------------------------------------------------------------------------
Wyeth 15,000 717,750
=============================================================================
4,779,916
=============================================================================
</Table>
See accompanying Notes to Financial Statements which are an integral part of the
financial statements.
10 AIM STRUCTURED VALUE FUND
<Table>
<Caption>
SHARES VALUE
- -----------------------------------------------------------------------------
PROPERTY & CASUALTY INSURANCE-9.17%
Allstate Corp. (The) 33,700 $ 990,443
- -----------------------------------------------------------------------------
Axis Capital Holdings Ltd. 6,000 182,880
- -----------------------------------------------------------------------------
Chubb Corp. (The) 30,900 1,526,151
- -----------------------------------------------------------------------------
Progressive Corp. (The)(b) 42,500 702,100
- -----------------------------------------------------------------------------
Travelers Cos., Inc. (The) 37,300 1,880,666
- -----------------------------------------------------------------------------
XL Capital Ltd.-Class A 87,800 1,523,330
=============================================================================
6,805,570
=============================================================================
PUBLISHING-1.87%
Gannett Co., Inc. 124,700 1,077,408
- -----------------------------------------------------------------------------
McGraw-Hill Cos., Inc. (The) 9,300 312,573
=============================================================================
1,389,981
=============================================================================
REINSURANCE-0.66%
Arch Capital Group Ltd. (Bermuda)(b) 1,900 123,443
- -----------------------------------------------------------------------------
PartnerRe Ltd. (Bermuda) 500 36,955
- -----------------------------------------------------------------------------
RenaissanceRe Holdings Ltd. 6,100 332,145
=============================================================================
492,543
=============================================================================
RESTAURANTS-0.04%
Brinker International, Inc. 2,000 29,120
=============================================================================
SEMICONDUCTORS-0.54%
RF Micro Devices, Inc.(b) 25,500 119,850
- -----------------------------------------------------------------------------
Texas Instruments Inc. 11,400 280,326
=============================================================================
400,176
=============================================================================
SOFT DRINKS-0.36%
Dr. Pepper Snapple Group, Inc.(b) 10,200 269,688
=============================================================================
SPECIALIZED REIT'S-1.51%
Public Storage 15,900 1,121,745
=============================================================================
SPECIALTY STORES-0.05%
Barnes & Noble, Inc. 1,900 39,311
=============================================================================
STEEL-0.56%
Reliance Steel & Aluminum Co. 3,600 132,984
- -----------------------------------------------------------------------------
Schnitzer Steel Industries, Inc.-Class A 3,800 205,238
- -----------------------------------------------------------------------------
Worthington Industries, Inc. 5,900 77,703
=============================================================================
415,925
=============================================================================
SYSTEMS SOFTWARE-1.11%
Symantec Corp.(b) 54,300 821,016
=============================================================================
WIRELESS TELECOMMUNICATION SERVICES-1.51%
Sprint Nextel Corp.(b) 306,800 1,122,888
=============================================================================
Total Common Stocks & Other Equity Interests
(Cost $72,287,806) 73,254,386
=============================================================================
<Caption>
PRINCIPAL
AMOUNT
U.S. TREASURY BILLS-0.35%
0.18%, 09/17/09 (Cost $259,979)(c)(d) $260,000 259,979
=============================================================================
<Caption>
SHARES
MONEY MARKET FUNDS-0.82%
Liquid Assets Portfolio-Institutional Class(e) 305,343 305,343
- -----------------------------------------------------------------------------
Premier Portfolio-Institutional Class(e) 305,343 305,343
=============================================================================
Total Money Market Funds (Cost $610,686) 610,686
=============================================================================
TOTAL INVESTMENTS-99.84% (Cost $73,158,471) 74,125,051
=============================================================================
OTHER ASSETS LESS LIABILITIES-0.16% 121,703
=============================================================================
NET ASSETS-100.00% $74,246,754
_____________________________________________________________________________
=============================================================================
</Table>
Investment Abbreviations:
<Table>
REIT - Real Estate Investment Trust
</Table>
Notes to Schedule of Investments:
(a) Industry and/or sector classifications used in this report are generally
according to the Global Industry Classification Standard, which was
developed by and is the exclusive property and a service mark of MSCI Inc.
and Standard & Poor's.
(b) Non-income producing security.
(c) Security traded on a discount basis. The interest rate shown represents
the discount rate at the time of purchase by the Fund.
(d) All or a portion of the value was pledged as collateral to cover margin
requirements for open futures contracts. See Note 1J and Note 4.
(e) The money market fund and the Fund are affiliated by having the same
investment advisor.
See accompanying Notes to Financial Statements which are an integral part of the
financial statements.
11 AIM STRUCTURED VALUE FUND
STATEMENT OF ASSETS AND LIABILITIES
August 31, 2009
<Table>
ASSETS:
Investments, at value (Cost $72,547,785) $ 73,514,365
- --------------------------------------------------------------------------------
Investments in affiliated money market funds, at value and cost 610,686
================================================================================
Total investments, at value (Cost $73,158,471) 74,125,051
================================================================================
Receivables for:
Fund shares sold 17,347
- --------------------------------------------------------------------------------
Dividends 163,190
- --------------------------------------------------------------------------------
Fund expenses absorbed 5,209
- --------------------------------------------------------------------------------
Investment for trustee deferred compensation and retirement plans 4,912
- --------------------------------------------------------------------------------
Other assets 21,701
================================================================================
Total assets 74,337,410
________________________________________________________________________________
================================================================================
LIABILITIES:
Payables for:
Fund shares reacquired 23,425
- --------------------------------------------------------------------------------
Variation margin 5,962
- --------------------------------------------------------------------------------
Accrued fees to affiliates 2,754
- --------------------------------------------------------------------------------
Accrued other operating expenses 48,776
- --------------------------------------------------------------------------------
Trustee deferred compensation and retirement plans 9,739
================================================================================
Total liabilities 90,656
================================================================================
Net assets applicable to shares outstanding $ 74,246,754
________________________________________________________________________________
================================================================================
NET ASSETS CONSIST OF:
Shares of beneficial interest $121,593,427
- --------------------------------------------------------------------------------
Undistributed net investment income 1,443,118
- --------------------------------------------------------------------------------
Undistributed net realized gain (loss) (49,828,601)
- --------------------------------------------------------------------------------
Unrealized appreciation 1,038,810
================================================================================
$ 74,246,754
________________________________________________________________________________
================================================================================
NET ASSETS:
Class A $ 1,664,941
________________________________________________________________________________
================================================================================
Class B $ 415,156
________________________________________________________________________________
================================================================================
Class C $ 258,048
________________________________________________________________________________
================================================================================
Class R $ 34,985
________________________________________________________________________________
================================================================================
Class Y $ 103,636
________________________________________________________________________________
================================================================================
Institutional Class $ 71,769,988
________________________________________________________________________________
================================================================================
SHARES OUTSTANDING, $0.01 PAR VALUE PER SHARE, UNLIMITED NUMBER OF SHARES
AUTHORIZED:
Class A 212,635
________________________________________________________________________________
================================================================================
Class B 53,270
________________________________________________________________________________
================================================================================
Class C 33,131
________________________________________________________________________________
================================================================================
Class R 4,476
________________________________________________________________________________
================================================================================
Class Y 13,214
________________________________________________________________________________
================================================================================
Institutional Class 9,148,449
________________________________________________________________________________
================================================================================
Class A:
Net asset value per share $ 7.83
- --------------------------------------------------------------------------------
Maximum offering price per share
(Net asset value of $7.83 divided by 94.50%) $ 8.29
________________________________________________________________________________
================================================================================
Class B:
Net asset value and offering price per share $ 7.79
________________________________________________________________________________
================================================================================
Class C:
Net asset value and offering price per share $ 7.79
________________________________________________________________________________
================================================================================
Class R:
Net asset value and offering price per share $ 7.82
________________________________________________________________________________
================================================================================
Class Y:
Net asset value and offering price per share $ 7.84
________________________________________________________________________________
================================================================================
Institutional Class:
Net asset value and offering price per share $ 7.85
________________________________________________________________________________
================================================================================
</Table>
See accompanying Notes to Financial Statements which are an integral part of the
financial statements.
12 AIM STRUCTURED VALUE FUND
STATEMENT OF OPERATIONS
For the year ended August 31, 2009
<Table>
INVESTMENT INCOME:
Dividends (net of foreign withholding taxes of $38) $ 2,518,908
- ------------------------------------------------------------------------------------------------
Dividends from affiliated money market funds (includes securities lending income
of $69,271) 84,017
- ------------------------------------------------------------------------------------------------
Interest 747
================================================================================================
Total investment income 2,603,672
================================================================================================
EXPENSES:
Advisory fees 526,826
- ------------------------------------------------------------------------------------------------
Administrative services fees 50,000
- ------------------------------------------------------------------------------------------------
Custodian fees 14,531
- ------------------------------------------------------------------------------------------------
Distribution fees:
Class A 5,466
- ------------------------------------------------------------------------------------------------
Class B 5,713
- ------------------------------------------------------------------------------------------------
Class C 2,002
- ------------------------------------------------------------------------------------------------
Class R 128
- ------------------------------------------------------------------------------------------------
Transfer agent fees -- A, B, C, R and Y 15,742
- ------------------------------------------------------------------------------------------------
Transfer agent fees -- Institutional 5,647
- ------------------------------------------------------------------------------------------------
Trustees' and officers' fees and benefits 21,034
- ------------------------------------------------------------------------------------------------
Registration and filing fees 69,474
- ------------------------------------------------------------------------------------------------
Professional services fees 45,967
- ------------------------------------------------------------------------------------------------
Other 28,045
================================================================================================
Total expenses 790,575
================================================================================================
Less: Fees waived, expenses reimbursed and expense offset arrangement(s) (120,416)
================================================================================================
Net expenses 670,159
================================================================================================
Net investment income 1,933,513
================================================================================================
REALIZED AND UNREALIZED GAIN (LOSS) FROM:
Net realized gain (loss) from:
Investment securities (34,858,791)
- ------------------------------------------------------------------------------------------------
Futures contracts 591,102
================================================================================================
(34,267,689)
================================================================================================
Change in net unrealized appreciation of:
Investment securities 6,075,430
- ------------------------------------------------------------------------------------------------
Futures contracts 66,650
================================================================================================
6,142,080
================================================================================================
Net realized and unrealized gain (loss) (28,125,609)
================================================================================================
Net increase (decrease) in net assets resulting from operations $(26,192,096)
________________________________________________________________________________________________
================================================================================================
</Table>
See accompanying Notes to Financial Statements which are an integral part of the
financial statements.
13 AIM STRUCTURED VALUE FUND
STATEMENT OF CHANGES IN NET ASSETS
For the years ended August 31, 2009 and 2008
<Table>
<Caption>
2009 2008
- --------------------------------------------------------------------------------------------------------
OPERATIONS:
Net investment income $ 1,933,513 $ 2,526,972
- --------------------------------------------------------------------------------------------------------
Net realized gain (loss) (34,267,689) (15,544,729)
- --------------------------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) 6,142,080 (7,998,414)
========================================================================================================
Net increase (decrease) in net assets resulting from operations (26,192,096) (21,016,171)
========================================================================================================
DISTRIBUTIONS TO SHAREHOLDERS FROM NET INVESTMENT INCOME:
Class A (70,369) (18,421)
- --------------------------------------------------------------------------------------------------------
Class B (13,013) (1,111)
- --------------------------------------------------------------------------------------------------------
Class C (3,568) (332)
- --------------------------------------------------------------------------------------------------------
Class R (418) (78)
- --------------------------------------------------------------------------------------------------------
Class Y (5,073) --
- --------------------------------------------------------------------------------------------------------
Institutional Class (2,408,982) (1,688,483)
========================================================================================================
Total distributions from net investment income (2,501,423) (1,708,425)
========================================================================================================
DISTRIBUTIONS TO SHAREHOLDERS FROM NET REALIZED GAINS:
Class A -- (36,401)
- --------------------------------------------------------------------------------------------------------
Class B -- (12,339)
- --------------------------------------------------------------------------------------------------------
Class C -- (3,686)
- --------------------------------------------------------------------------------------------------------
Class R -- (211)
- --------------------------------------------------------------------------------------------------------
Institutional Class -- (2,625,170)
========================================================================================================
Total distributions from net realized gains -- (2,677,807)
========================================================================================================
SHARE TRANSACTIONS-NET:
Class A (1,417,556) 2,560,980
- --------------------------------------------------------------------------------------------------------
Class B (361,809) 460,895
- --------------------------------------------------------------------------------------------------------
Class C 67,296 119,138
- --------------------------------------------------------------------------------------------------------
Class R 23,234 10,135
- --------------------------------------------------------------------------------------------------------
Class Y 117,368 --
- --------------------------------------------------------------------------------------------------------
Institutional Class (35,132,527) 24,069,585
========================================================================================================
Net increase (decrease) in net assets resulting from share
transactions (36,703,994) 27,220,733
========================================================================================================
Net increase (decrease) in net assets (65,397,513) 1,818,330
========================================================================================================
NET ASSETS:
Beginning of year 139,644,267 137,825,937
========================================================================================================
End of year (includes undistributed net investment income of $1,443,118
and $2,011,028, respectively) $ 74,246,754 $139,644,267
________________________________________________________________________________________________________
========================================================================================================
</Table>
NOTES TO FINANCIAL STATEMENTS
August 31, 2009
NOTE 1--SIGNIFICANT ACCOUNTING POLICIES
AIM Structured Value Fund (the "Fund") is a series portfolio of AIM Counselor
Series Trust (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 seven 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 long-term growth of capital.
14 AIM STRUCTURED VALUE FUND
The Fund currently consists of six different classes of shares: Class A, Class
B, Class C, Class R, 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 R, Class Y and Institutional Class shares are sold at net asset value.
Under certain circumstances, Class R shares are subject to a CDSC. 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 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.
A security listed or traded on an exchange (except convertible bonds) is
valued at its last sales price or official closing price as of the close
of the customary trading session on the exchange where the security is
principally traded, or lacking any sales or official closing price on a
particular day, the security may be valued at the closing bid price on
that day. Securities traded in the over-the-counter market are valued
based on prices furnished by independent pricing services or market
makers. When such securities are valued by an independent pricing service
they may be considered fair valued. Futures contracts are valued at the
final settlement price set by an exchange on which they are principally
traded. Listed options are valued at the mean between the last bid and ask
prices from the exchange on which they are principally traded. Options not
listed on an exchange are valued by an independent source at the mean
between the last bid and ask prices. For purposes of determining net asset
value per share, futures and option contracts generally are valued 15
minutes after the close of the customary trading session of the New York
Stock Exchange ("NYSE").
Investments in open-end and closed-end registered investment companies
that do not trade on an exchange are valued at the end of day net asset
value per share. Investments in open-end and closed-end registered
investment companies that trade on an exchange are valued at the last
sales price or official closing price as of the close of the customary
trading session on the exchange where the security is principally traded.
Debt obligations (including convertible bonds) and unlisted equities are
fair valued using an evaluated quote provided by an independent pricing
service. 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, developments related to specific securities, dividend rate,
yield, quality, type of issue, coupon rate, maturity, 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. 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/or principal payments.
Foreign securities (including foreign exchange contracts) are converted
into U.S. dollar amounts using the applicable exchange rates as of the
close of the NYSE. If market quotations are available and reliable for
foreign exchange traded equity securities, the securities will be valued
at the market quotations. Because trading hours for certain foreign
securities end before the close of the NYSE, closing market quotations may
become unreliable. If between the time trading ends on a particular
security and the close of the customary trading session on the NYSE,
events occur that are significant and make the closing price unreliable,
the Fund may fair value the security. If the event is likely to have
affected the closing price of the security, the security will be valued at
fair value in good faith using procedures approved by the Board of
Trustees. Adjustments to closing prices to reflect fair value may also be
based on a screening process of an independent pricing service to indicate
the degree of certainty, based on historical data, that the closing price
in the principal market where a foreign security trades is not the current
value as of the close of the NYSE. Foreign securities meeting the approved
degree of certainty that the price is not reflective of current value will
be priced at the indication of fair value from the independent pricing
service. Multiple factors may be considered by the independent pricing
service in determining adjustments to reflect fair value and may include
information relating to sector indices, American Depositary Receipts and
domestic and foreign index futures. Foreign securities may have additional
risks including exchange rate changes, potential for sharply devalued
currencies and high inflation, political and economical upheaval, the
relative lack of issuer information, relatively low market liquidity and
the potential lack of strict financial and accounting controls and
standards.
Securities for which market prices are not provided by any of the above
methods may be valued based upon quotes furnished by independent sources.
The last bid price may be used to value equity securities and Corporate
Loans. The mean between the last bid and asked prices may be used to value
debt obligations other than Corporate Loans.
Securities for which market quotations 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. Issuer specific events, market trends,
bid/ask quotes of brokers and information providers and other market data
may be reviewed in the course of making a good faith determination of a
security's fair value.
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.
15 AIM STRUCTURED VALUE FUND
The Fund allocates income and realized and unrealized capital gains and
losses to a class based on the relative net assets 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 and 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 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.
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. In addition, the Fund monitors for material events or
transactions that may occur or become known after the period end date and
before the date the financial statements are released to print, which is
generally 45 days from the period end date.
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. SECURITIES LENDING -- The Fund may lend portfolio securities having a
market value up to one-third of the Fund's total assets. Such loans are
secured by collateral equal to no less than the market value of the loaned
securities determined daily by the securities lending provider. Such
collateral will be cash or debt securities issued or guaranteed by the
U.S. Government or any of its sponsored agencies. Cash collateral received
in connection with these loans is invested in short-term money market
instruments or affiliated money market funds and is shown as such on the
Schedule of Investments. It is the Fund's policy to obtain additional
collateral from or return excess collateral to the borrower by the end of
the next business day, following the valuation date of the securities
loaned. Therefore, the value of the collateral held may be temporarily
less than the value of the securities on loan. Lending securities entails
a risk of loss to the Fund if and to the extent that the market value of
the securities loaned were to increase and the borrower did not increase
the collateral accordingly, and the borrower fails to return the
securities. Upon the failure of the borrower to return the securities,
collateral may be liquidated and the securities may be purchased on the
open market to replace the loaned securities. The Fund could experience
delays and costs in gaining access to the collateral. The Fund bears the
risk of any deficiency in the amount of the collateral available for
return to the borrower due to any loss on the collateral invested.
Dividends received on cash collateral investments for securities lending
transactions, which are net of compensation to counterparties, is included
in Dividends from affiliates on the Statement of Operations. The aggregate
value of securities out on loan is shown as a footnote on the Statement of
Assets and Liabilities, if any.
J. FUTURES CONTRACTS -- The Fund may enter into futures contracts to manage
exposure to interest rate, equity and market price movements and/or
currency risks. A futures contract is an agreement between two parties to
purchase or sell a specified underlying security, currency or commodity
(or delivery of a cash settlement price, in the case of an index future)
for a fixed price at a future date. The Fund currently invests only in
exchange-traded futures and they are standardized as to maturity date and
underlying financial instrument. Initial margin deposits required upon
entering into futures contracts are satisfied by the segregation of
specific securities or cash as collateral at the futures commission
merchant (broker). During the period the futures contracts are open,
changes in the value of the contracts are recognized as unrealized gains
or losses by recalculating the value of the contracts on a daily basis.
Subsequent or variation margin payments are received or made depending
upon whether unrealized gains or losses are incurred. These amounts are
reflected as receivables or payables on the Statement of Assets and
Liabilities. When the contracts are closed or expire, the Fund recognizes
a realized gain or loss equal to the difference between the proceeds from,
or cost of, the closing transaction and the Fund's basis in the contract.
The net realized gain (loss) and the change in unrealized gain (loss) on
futures contracts held during the period is included on the Statement of
Operations. The primary risks associated with futures contracts are market
risk and the absence of a liquid secondary market. If the Fund were unable
to liquidate a futures contract and/or enter into an offsetting closing
transaction, the Fund would continue to be subject to market risk with
respect to the value of the contracts and continue to be required to
maintain the margin deposits on the futures contracts. Futures contracts
have minimal counterparty risk since the exchange's clearinghouse, as
counterparty to all exchange traded futures, guarantees the futures
against default. Risks may exceed amounts recognized in the Statement of
Assets and Liabilities.
16 AIM STRUCTURED VALUE FUND
K. COLLATERAL -- To the extent the Fund has pledged or segregated a security
as collateral and that security is subsequently sold, it is the Fund's
practice to replace such collateral no later than the next business day.
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 $250 million 0.60%
- -------------------------------------------------------------------
Next $250 million 0.575%
- -------------------------------------------------------------------
Next $500 million 0.55%
- -------------------------------------------------------------------
Next $1.5 billion 0.525%
- -------------------------------------------------------------------
Next $2.5 billion 0.50%
- -------------------------------------------------------------------
Next $2.5 billion 0.475%
- -------------------------------------------------------------------
Next $2.5 billion 0.45%
- -------------------------------------------------------------------
Over $10 billion 0.425%
___________________________________________________________________
===================================================================
</Table>
Under the terms of a master sub-advisory agreement approved by shareholders of
the Fund between 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).
The Advisor has contractually 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 R,
Class Y and Institutional Class shares to 1.00%, 1.75%, 1.75%, 1.25%, 0.75% and
0.75% of average daily net assets, respectively, through at least June 30, 2010.
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 or non-routine 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. In addition, the Fund may also benefit from a
one time credit to be used to offset custodian expenses. These credits are used
to pay certain expenses incurred by the Fund.
Further, the Advisor has contractually agreed, through at least June 30, 2010,
to waive the advisory fee payable by the Fund in an amount equal to 100% of the
net advisory fees the Advisor receives from the affiliated money market funds on
investments by the Fund of uninvested cash (excluding investments of cash
collateral from securities lending) in such affiliated money market funds.
For the year ended August 31, 2009, the Advisor waived advisory fees $99,027
and reimbursed class level expenses of $10,643, $2,781, $974, $125, $1,020 and
$5,647 of Class A, Class B, Class C, Class R, Class Y and Institutional Class
shares, respectively.
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
August 31, 2009, Invesco did not reimburse any expenses.
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 August 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 August 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 R, 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, Class C and Class R 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, 1.00% of
the average daily net assets of Class B and Class C shares and 0.50% of the
average daily net assets of Class R 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 August 31, 2009, expenses incurred under the Plans
are shown in the Statement of Operations as distribution fees.
17 AIM STRUCTURED VALUE FUND
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 August 31, 2009, IADI
advised the Fund that IADI retained $1,748 in front-end sales commissions from
the sale of Class A shares and $0, $1,125, $79 and $0 from Class A, Class B,
Class C and Class R 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--ADDITIONAL VALUATION INFORMATION
Generally Accepted Accounting Principles (GAAP) 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 under
current market conditions. GAAP 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.
The following is a summary of the tiered valuation input levels, as of the end
of the reporting period, August 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>
LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
- ------------------------------------------------------------------------------------------------------------------------
Equity Securities $73,865,072 $ -- $ -- $73,865,072
- ------------------------------------------------------------------------------------------------------------------------
U.S. Treasury Securities -- 259,979 -- 259,979
========================================================================================================================
$74,125,051
========================================================================================================================
Other Investments* 72,230 -- -- 72,230
========================================================================================================================
Total Investments $73,937,302 $259,979 $-- $74,197,281
________________________________________________________________________________________________________________________
========================================================================================================================
</Table>
* Other Investments includes futures, which are included at unrealized
appreciation.
NOTE 4--DERIVATIVE INVESTMENTS
Effective March 1, 2009, the Fund has adopted the provisions of FASB Statement
No. 161, Disclosures about Derivative Instruments and Hedging Activities. The
standard is intended to improve financial reporting about derivative instruments
and hedging activities by requiring enhanced disclosures to enable investors to
better understand their effects on an entity's financial position and financial
performance. The adoption of this provision has no impact on the results of
operations reported in the financial statements.
VALUE OF DERIVATIVE INSTRUMENTS AT PERIOD-END
The Table below summarizes the value of the Fund's derivative instruments,
detailed by primary risk exposure, held as of August 31, 2009:
<Table>
<Caption>
VALUE
-----------------------
RISK EXPOSURE/ DERIVATIVE TYPE ASSETS LIABILITIES
- -----------------------------------------------------------------------------------------------------
Market risk
Futures contracts(a) $72,230 $ --
_____________________________________________________________________________________________________
=====================================================================================================
</Table>
(a) Includes cumulative appreciation of futures contracts. Only current day's
variation margin receivable (payable) is reported within the Statement of
Assets & Liabilities.
18 AIM STRUCTURED VALUE FUND
EFFECT OF DERIVATIVE INSTRUMENTS FOR THE SIX MONTHS ENDED AUGUST 31, 2009
The table below summarizes the gains on derivative instruments, detailed by
primary risk exposure, recognized in earnings during the period:
<Table>
<Caption>
LOCATION OF GAIN ON
STATEMENT OF OPERATIONS
-----------------------
FUTURES*
- ----------------------------------------------------------------------------------------------------
Realized Gain
Market risk $1,201,640
====================================================================================================
Change in Unrealized Appreciation
Market risk 203,798
====================================================================================================
Total $1,405,438
____________________________________________________________________________________________________
====================================================================================================
</Table>
* The average value of outstanding futures during the period was $5,140,703.
<Table>
<Caption>
OPEN FUTURES CONTRACTS
- ----------------------------------------------------------------------------------------------------------------------
NUMBER OF MONTH/ UNREALIZED
CONTRACT CONTRACTS COMMITMENT VALUE APPRECIATION
- ----------------------------------------------------------------------------------------------------------------------
Chicago Mercantile Exchange E-mini S&P 500 Index 14 September-09/Long $713,790 $72,230
______________________________________________________________________________________________________________________
======================================================================================================================
</Table>
NOTE 5--EXPENSE OFFSET ARRANGEMENT(S)
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 August 31, 2009, the
Fund received credits from this arrangement, which resulted in the reduction of
the Fund's total expenses of $199.
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 August 31, 2009, the Fund paid legal fees of $3,383 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 to temporarily carry a negative or overdrawn balance in
its account with The State Street Bank and Trust Company, 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.
19 AIM STRUCTURED VALUE FUND
NOTE 8--DISTRIBUTIONS TO SHAREHOLDERS AND TAX COMPONENTS OF NET ASSETS
TAX CHARACTER OF DISTRIBUTIONS TO SHAREHOLDERS PAID DURING THE YEARS ENDED
AUGUST 31, 2009 AND 2008:
<Table>
<Caption>
2009 2008
- -------------------------------------------------------------------------------------------------------
Ordinary income $2,501,423 $4,036,815
- -------------------------------------------------------------------------------------------------------
Long-term capital gain -- 349,417
=======================================================================================================
Total distributions $2,501,423 $4,386,232
_______________________________________________________________________________________________________
=======================================================================================================
</Table>
TAX COMPONENTS OF NET ASSETS AT PERIOD-END:
<Table>
<Caption>
2009
- ------------------------------------------------------------------------------------------------
Undistributed ordinary income $ 1,453,672
- ------------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) -- investments (630,032)
- ------------------------------------------------------------------------------------------------
Temporary book/tax differences (10,554)
- ------------------------------------------------------------------------------------------------
Post-October deferrals (26,843,150)
- ------------------------------------------------------------------------------------------------
Capital loss carryforward (21,316,609)
- ------------------------------------------------------------------------------------------------
Shares of beneficial interest 121,593,427
================================================================================================
Total net assets $ 74,246,754
________________________________________________________________________________________________
================================================================================================
</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 wash sales.
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 August 31, 2009 which expires
as follows:
<Table>
<Caption>
CAPITAL LOSS
EXPIRATION CARRYFORWARD*
- -----------------------------------------------------------------------------------------------
August 31, 2016 $ 430,774
- -----------------------------------------------------------------------------------------------
August 31, 2017 20,885,835
===============================================================================================
Total capital loss carryforward $21,316,609
_______________________________________________________________________________________________
===============================================================================================
</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 August 31, 2009 was $68,725,351 and $104,721,333,
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 $ 6,427,773
- ------------------------------------------------------------------------------------------------
Aggregate unrealized (depreciation) of investment securities (7,057,805)
================================================================================================
Net unrealized appreciation (depreciation) of investment securities $ (630,032)
________________________________________________________________________________________________
================================================================================================
Cost of investments for tax purposes is $74,755,083.
</Table>
20 AIM STRUCTURED VALUE FUND
NOTE 10--SHARE INFORMATION
<Table>
<Caption>
SUMMARY OF SHARE ACTIVITY
- -----------------------------------------------------------------------------------------------------------------------
YEAR ENDED AUGUST 31,
---------------------------------------------------------
2009(a) 2008
--------------------------- -------------------------
SHARES AMOUNT SHARES AMOUNT
- -----------------------------------------------------------------------------------------------------------------------
Sold:
Class A 130,514 $ 879,263 324,245 $ 3,314,989
- -----------------------------------------------------------------------------------------------------------------------
Class B 36,712 245,248 79,256 803,847
- -----------------------------------------------------------------------------------------------------------------------
Class C 23,865 173,244 22,824 233,105
- -----------------------------------------------------------------------------------------------------------------------
Class R 5,096 41,323 954 9,846
- -----------------------------------------------------------------------------------------------------------------------
Class Y(b) 28,662 239,041 -- --
- -----------------------------------------------------------------------------------------------------------------------
Institutional Class 686,674 4,780,084 2,458,953 25,971,597
=======================================================================================================================
Issued as reinvestment of dividends:
Class A 10,273 70,309 4,851 52,634
- -----------------------------------------------------------------------------------------------------------------------
Class B 1,816 12,474 1,222 13,256
- -----------------------------------------------------------------------------------------------------------------------
Class C 509 3,504 345 3,735
- -----------------------------------------------------------------------------------------------------------------------
Class R 61 418 26 289
- -----------------------------------------------------------------------------------------------------------------------
Class Y 739 5,073 -- --
- -----------------------------------------------------------------------------------------------------------------------
Institutional Class 351,163 2,408,982 397,571 4,313,653
=======================================================================================================================
Automatic conversion of Class B shares to Class A shares:
Class A 13,879 95,812 10,189 99,570
- -----------------------------------------------------------------------------------------------------------------------
Class B (13,941) (95,812) (10,221) (99,570)
=======================================================================================================================
Reacquired:
Class A(b) (370,317) (2,462,940) (87,363) (906,213)
- -----------------------------------------------------------------------------------------------------------------------
Class B (79,923) (523,719) (24,920) (256,638)
- -----------------------------------------------------------------------------------------------------------------------
Class C (16,009) (109,452) (12,182) (117,702)
- -----------------------------------------------------------------------------------------------------------------------
Class R (2,546) (18,507) -- --
- -----------------------------------------------------------------------------------------------------------------------
Class Y (16,187) (126,746) -- --
- -----------------------------------------------------------------------------------------------------------------------
Institutional Class (5,929,928) (42,321,593) (623,869) (6,215,665)
=======================================================================================================================
Net increase (decrease) in share activity (5,138,888) $(36,703,994) 2,541,881 $27,220,733
_______________________________________________________________________________________________________________________
=======================================================================================================================
</Table>
(a) 91% of the outstanding shares of the Fund are owned by affiliated mutual
funds. Affiliated mutual funds are other mutual funds that are also advised
by Invesco Aim.
(b) Effective upon the commencement date of Class Y shares, October 3, 2008,
the following shares were converted from Class A into Class Y shares of the
Fund:
<Table>
<Caption>
CLASS SHARES AMOUNT
--------------------------------------------------------------------------------------------------
Class Y 27,463 $ 229,041
--------------------------------------------------------------------------------------------------
Class A (27,463) (229,041)
__________________________________________________________________________________________________
==================================================================================================
</Table>
21 AIM STRUCTURED VALUE FUND
NOTE 11--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(a) UNREALIZED) OPERATIONS INCOME GAINS DISTRIBUTIONS
- ------------------------------------------------------------------------------------------------------------------------
CLASS A
Year ended 08/31/09 $ 9.54 $0.14 $(1.68) $(1.54) $(0.17) $ -- $(0.17)
Year ended 08/31/08 11.40 0.16 (1.70) (1.54) (0.11) (0.21) (0.32)
Year ended 08/31/07 10.44 0.14 0.89 1.03 (0.06) (0.01) (0.07)
Year ended 08/31/06(e) 10.00 0.20 0.24 0.44 -- -- --
- ------------------------------------------------------------------------------------------------------------------------
CLASS B
Year ended 08/31/09 9.50 0.09 (1.68) (1.59) (0.12) -- (0.12)
Year ended 08/31/08 11.35 0.08 (1.70) (1.62) (0.02) (0.21) (0.23)
Year ended 08/31/07 10.40 0.05 0.91 0.96 -- (0.01) (0.01)
Year ended 08/31/06(e) 10.00 0.16 0.24 0.40 -- -- --
- ------------------------------------------------------------------------------------------------------------------------
CLASS C
Year ended 08/31/09 9.49 0.08 (1.66) (1.58) (0.12) -- (0.12)
Year ended 08/31/08 11.33 0.08 (1.69) (1.61) (0.02) (0.21) (0.23)
Year ended 08/31/07 10.40 0.05 0.89 0.94 -- (0.01) (0.01)
Year ended 08/31/06(e) 10.00 0.16 0.24 0.40 -- -- --
- ------------------------------------------------------------------------------------------------------------------------
CLASS R
Year ended 08/31/09 9.52 0.12 (1.67) (1.55) (0.15) -- (0.15)
Year ended 08/31/08 11.38 0.13 (1.70) (1.57) (0.08) (0.21) (0.29)
Year ended 08/31/07 10.42 0.11 0.90 1.01 (0.04) (0.01) (0.05)
Year ended 08/31/06(e) 10.00 0.18 0.24 0.42 -- -- --
- ------------------------------------------------------------------------------------------------------------------------
CLASS Y
Year ended 08/31/09(e) 8.34 0.14 (0.46) (0.32) (0.18) -- (0.18)
- ------------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL CLASS
Year ended 08/31/09 9.56 0.15 (1.67) (1.52) (0.19) -- (0.19)
Year ended 08/31/08 11.43 0.19 (1.71) (1.52) (0.14) (0.21) (0.35)
Year ended 08/31/07 10.45 0.17 0.89 1.06 (0.07) (0.01) (0.08)
Year ended 08/31/06(e) 10.00 0.21 0.24 0.45 -- -- --
________________________________________________________________________________________________________________________
========================================================================================================================
<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(b) (000S OMITTED) ABSORBED ABSORBED NET ASSETS TURNOVER(c)
- ------------------------------------------------------------------------------------------------------------------------------
CLASS A
Year ended 08/31/09 $ 7.83 (15.87)% $ 1,665 1.01%(d) 1.61%(d) 1.96%(d) 78%
Year ended 08/31/08 9.54 (13.83) 4,088 1.01 1.42 1.57 88
Year ended 08/31/07 11.40 9.80 2,011 1.01 1.36 1.17 62
Year ended 08/31/06(e) 10.44 4.40 856 1.03(f) 5.80(f) 4.59(f) 5
- ------------------------------------------------------------------------------------------------------------------------------
CLASS B
Year ended 08/31/09 7.79 (16.60) 415 1.76(d) 2.36(d) 1.21(d) 78
Year ended 08/31/08 9.50 (14.50) 1,031 1.76 2.17 0.82 88
Year ended 08/31/07 11.35 9.20 718 1.76 2.11 0.42 62
Year ended 08/31/06(e) 10.40 4.00 790 1.78(f) 6.55(f) 3.84(f) 5
- ------------------------------------------------------------------------------------------------------------------------------
CLASS C
Year ended 08/31/09 7.79 (16.51) 258 1.76(d) 2.36(d) 1.21(d) 78
Year ended 08/31/08 9.49 (14.43) 235 1.76 2.17 0.82 88
Year ended 08/31/07 11.33 9.01 156 1.76 2.11 0.42 62
Year ended 08/31/06(e) 10.40 4.00 632 1.78(f) 6.55(f) 3.84(f) 5
- ------------------------------------------------------------------------------------------------------------------------------
CLASS R
Year ended 08/31/09 7.82 (16.01) 35 1.26(d) 1.86(d) 1.71(d) 78
Year ended 08/31/08 9.52 (14.08) 18 1.26 1.67 1.32 88
Year ended 08/31/07 11.38 9.65 10 1.26 1.61 0.92 62
Year ended 08/31/06(e) 10.42 4.20 625 1.28(f) 6.05(f) 4.34(f) 5
- ------------------------------------------------------------------------------------------------------------------------------
CLASS Y
Year ended 08/31/09(e) 7.84 (3.57) 104 0.76(d)(f) 1.45(d)(f) 2.21(d)(f) 78
- ------------------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL CLASS
Year ended 08/31/09 7.85 (15.59) 71,770 0.75(d) 0.87(d) 2.22(d) 78
Year ended 08/31/08 9.56 (13.64) 134,272 0.75 0.78 1.83 88
Year ended 08/31/07 11.43 10.13 134,931 0.75 0.94 1.43 62
Year ended 08/31/06(e) 10.45 4.50 73,488 0.77(f) 5.50(f) 4.85(f) 5
______________________________________________________________________________________________________________________________
==============================================================================================================================
</Table>
(a) Calculated using average shares outstanding.
(b) 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.
(c) Portfolio turnover is calculated at the fund level and is not annualized
for periods less than one year, if applicable.
(d) Ratios are based on average daily net assets (000's omitted) of $2,187,
$571, $200, $26, $196 and $84,644 for Class A, Class B, Class C, Class R,
Class Y and Institutional Class shares, respectively.
(e) Commencement date of March 31, 2006 for Class A, Class B, Class C, Class R
and Institutional Class shares and October 3, 2008 for Class Y shares.
(f) Annualized.
22 AIM STRUCTURED VALUE FUND
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Trustees of AIM Counselor Series Trust
and Shareholders of AIM Structured Value 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 Structured Value Fund (one of
the funds constituting AIM Counselor Series Trust, hereafter referred to as the
"Fund") at August 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 periods indicated, 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 August 31, 2009 by
correspondence with the custodian and brokers, provide a reasonable basis for
our opinion.
PRICEWATERHOUSECOOPERS LLP
October 16, 2009
Houston, Texas
23 AIM STRUCTURED VALUE 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. The
example is based on an investment of $1,000 invested at the beginning of the
period and held for the entire period March 1, 2009, through August 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 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 (03/01/09) (08/31/09)(1) PERIOD(2) (08/31/09) PERIOD(2) RATIO
- ---------------------------------------------------------------------------------------------------
A $1,000.00 $1,405.70 $ 6.12 $1,020.11 $5.14 1.01%
- ---------------------------------------------------------------------------------------------------
B 1,000.00 1,398.60 10.64 1,016.33 8.94 1.76
- ---------------------------------------------------------------------------------------------------
C 1,000.00 1,398.60 10.64 1,016.33 8.94 1.76
- ---------------------------------------------------------------------------------------------------
R 1,000.00 1,403.90 7.63 1,018.85 6.41 1.26
- ---------------------------------------------------------------------------------------------------
Y 1,000.00 1,405.00 4.61 1,021.37 3.87 0.76
- ---------------------------------------------------------------------------------------------------
</Table>
(1) The actual ending account value is based on the actual total return of the
Fund for the period March 1, 2009, through August 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
184/365 to reflect the most recent fiscal half year.
24 AIM STRUCTURED VALUE FUND
Supplement to Annual Report dated 8/31/09
AIM STRUCTURED VALUE FUND
<Table>
INSTITUTIONAL CLASS SHARES ------------------------------------------ Please note that past performance is
AVERAGE ANNUAL TOTAL RETURNS not indicative of future results. More
The following information has been For periods ended 8/31/09 recent returns may be more or less than
prepared to provide Institutional Class those shown. All returns assume
shareholders with a performance overview Inception (3/31/06) -5.01% reinvestment of distributions at NAV.
specific to their holdings. Institutional ------------------------------------------ Investment return and principal value will
Class shares are offered exclusively to 1 Year -15.59 fluctuate so your shares, when redeemed,
institutional investors, including defined ------------------------------------------ may be worth more or less than their
contribution plans that meet certain original cost. See full report for
criteria. ------------------------------------------ information on comparative benchmarks.
AVERAGE ANNUAL TOTAL RETURNS Please consult your Fund prospectus for
For periods ended 6/30/09, the most recent more information. For the most current
calendar quarter-end month-end performance, please call
800 451 4246 or visit invescoaim.com.
Inception (3/31/06) -8.87%
------------------------------------------ (1) Total annual operating expenses less
1 Year -25.52 any contractual fee waivers and/or
------------------------------------------ expense reimbursements by the advisor
in effect through at least June 30,
Institutional Class shares have no sales 2010. See current prospectus for more
charge; therefore, performance is at net information.
asset value (NAV). Performance of
Institutional Class shares will differ
from performance of other share classes
primarily due to differing sales charges
and class expenses.
The net 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 0.75%.(1) 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 0.78%. 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 ASIVX
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 -- NOT FOR USE WITH THE PUBLIC THIS MATERIAL IS FOR
INSTITUTIONAL INVESTOR USE ONLY AND MAY NOT BE QUOTED, REPRODUCED, SHOWN TO THE PUBLIC [INVESCO AIM LOGO]
OR USED IN WRITTEN FORM AS SALES LITERATURE FOR PUBLIC USE. - service mark -
invescoaim.com SVAL-INS-1 Invesco Aim Distributors, Inc.
</Table>
Supplement to Annual Report dated 8/31/09
AIM STRUCTURED VALUE FUND
RESULTS OF A $10,000 INVESTMENT - INSTITUTIONAL CLASS SHARES SINCE INCEPTION
Fund and Index data from 3/31/06
(PERFORMANCE CHART)
<Table>
<Caption>
AIM
STRUCTURED LIPPER
VALUE FUND- RUSSELL 1000 LARGE-CAP
INSTITUTIONAL VALUE S&P 500 VALUE FUNDS
CLASS SHARES INDEX(1) INDEX(1) INDEX(1)
------------- ------------ -------- -----------
3/31/2006 10000 10000 10000 10000
04/06 10200 10254 10134 10249
05/06 9860 9995 9843 9998
06/06 10000 10059 9856 10005
07/06 10300 10304 9917 10158
08/06 10451 10476 10152 10346
09/06 10631 10685 10414 10586
10/06 11000 11035 10753 10902
11/06 11260 11286 10957 11090
12/06 11397 11540 11111 11329
01/07 11679 11687 11279 11475
02/07 11397 11505 11059 11270
03/07 11660 11683 11182 11414
04/07 12072 12115 11677 11903
05/07 12465 12552 12084 12341
06/07 12032 12258 11884 12153
07/07 11368 11692 11516 11665
08/07 11509 11823 11688 11803
09/07 11891 12229 12125 12177
10/07 12042 12230 12318 12273
11/07 11357 11632 11802 11745
12/07 11341 11520 11721 11608
01/08 10769 11058 11018 11020
02/08 10447 10595 10660 10649
03/08 10313 10515 10614 10501
04/08 10791 11028 11131 11021
05/08 10822 11010 11275 11114
06/08 9929 9957 10325 10143
07/08 9866 9921 10239 10005
08/08 9939 10089 10387 10119
09/08 9315 9348 9462 9267
10/08 7786 7730 7873 7713
11/08 7370 7175 7308 7151
12/08 7597 7275 7385 7313
01/09 6636 6438 6763 6663
02/09 5963 5578 6046 5941
03/09 6529 6055 6574 6454
04/09 7202 6704 7203 7061
05/09 7480 7119 7605 7523
06/09 7395 7066 7621 7508
07/09 8026 7645 8196 8083
08/09 8388 8044 8492 8422
</Table>
<Table>
Past performance cannot guarantee shown in the chart and table(s) does not is that of the Fund's Class A, B, C and R
comparable future results. reflect deduction of taxes a shareholder shares. The performance of the Fund's
would pay on Fund distributions or sale of other share classes will differ primarily
The data shown in the chart above Fund shares. Performance of the indexes due to different sales charge structures
includes reinvested distributions and Fund does not reflect the effects of taxes. and class expenses, and may be greater
expenses including management fees. Index than or less than the performance of the
results include reinvested dividends. The performance data shown in the chart Fund's Institutional Class shares shown in
Performance of an index of funds reflects above is that of the Fund's institutional the chart above.
fund expenses and management fees; share class. The performance data shown in
performance of a market index does not. the chart in the annual report
Performance
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 -- NOT FOR USE WITH THE PUBLIC THIS MATERIAL IS FOR
INSTITUTIONAL INVESTOR USE ONLY AND MAY NOT BE QUOTED, REPRODUCED, SHOWN TO THE PUBLIC [INVESCO AIM LOGO]
OR USED IN WRITTEN FORM AS SALES LITERATURE FOR PUBLIC USE. - service mark -
invescoaim.com SVAL-INS-1 Invesco Aim Distributors, Inc.
</Table>
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 March 1, 2009, through August 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 (03/01/09) (08/31/09)(1) PERIOD(2) (08/31/09) PERIOD(2) RATIO
- -----------------------------------------------------------------------------------------------------------
Institutional $1,000.00 $1,406.80 $4.55 $1,021.42 $3.82 0.75%
- -----------------------------------------------------------------------------------------------------------
</Table>
(1) The actual ending account value is based on the actual total return of the
Fund for the period March 1, 2009, through August 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
184/365 to reflect the most recent fiscal half year.
AIM STRUCTURED VALUE FUND
<Table>
- ------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS
The Board of Trustees (the Board) of AIM strategies and limitations of these funds. the year as part of their ongoing
Counselor Series Trust is required under oversight of the Fund, and did not
the Investment Company Act of 1940 to In addition to their meetings identify any particular factor that was
approve annually the renewal of the AIM throughout the year, the Sub-Committees controlling. Each Trustee may have
Structured Value Fund (the Fund) meet at designated contract renewal evaluated the information provided
investment advisory agreement with Invesco meetings each year to conduct an in-depth differently from another Trustee and
Aim Advisors, Inc. (Invesco Aim) and the review of the performance, fees, expenses, attributed different weight to the various
Master Intergroup Sub-Advisory Contract and other matters related to their factors. The Trustees recognized that the
for Mutual Funds (the sub-advisory assigned funds. During the contract advisory arrangements and resulting
contracts) with Invesco Asset Management renewal process, the Trustees receive advisory fees for the Fund and the other
Deutschland GmbH, Invesco Asset Management comparative performance and fee data AIM Funds are the result of years of
Limited, Invesco Asset Management (Japan) regarding the AIM Funds prepared by an review and negotiation between the
Limited, Invesco Australia Limited, independent company, Lipper, Inc. Trustees and Invesco Aim, that the
Invesco Global Asset Management (N.A.), (Lipper), under the direction and Trustees may focus to a greater extent on
Inc., Invesco Hong Kong Limited, Invesco supervision of the Senior Officer who also certain aspects of these arrangements in
Institutional (N.A.), Inc., Invesco Senior prepares a separate analysis of this some years than in others, and that the
Secured Management, Inc. and Invesco information for the Trustees. Each Trustees' deliberations and conclusions in
Trimark Ltd. (collectively, the Affiliated Sub-Committee then makes recommendations a particular year may be based in part on
Sub-Advisers). During contract renewal to the Investments Committee regarding the their deliberations and conclusions
meetings held on June 16-17, 2009, the fees and expenses of their assigned funds. regarding these same arrangements
Board as a whole, and the disinterested or The Investments Committee considers each throughout the year and in prior years.
"independent" Trustees voting separately, Sub-Committee's recommendations and makes
approved the continuance of the Fund's its own recommendations regarding the fees The discussion below serves as a
investment advisory agreement and the and expenses of the AIM Funds to the full summary of the Senior Officer's
sub-advisory contracts for another year, Board. The Investments Committee also independent written evaluation with
effective July 1, 2009. In doing so, the considers each Sub-Committee's respect to the Fund's investment advisory
Board determined that the Fund's recommendations in making its annual agreement as well as a discussion of the
investment advisory agreement and the recommendation to the Board whether to material factors and related conclusions
sub-advisory contracts are in the best approve the continuance of each AIM Fund's that formed the basis for the Board's
interests of the Fund and its shareholders investment advisory agreement and approval of the Fund's investment advisory
and that the compensation to Invesco Aim sub-advisory contracts for another year. agreement and sub-advisory contracts.
and the Affiliated Sub-Advisers under the Unless otherwise stated, information set
Fund's investment advisory agreement and The independent Trustees met separately forth below is as of June 17, 2009, and
sub-advisory contracts is fair and during their evaluation of the Fund's does not reflect any changes that may have
reasonable. investment advisory agreement and occurred since that date, including but
sub-advisory contracts with independent not limited to changes to the Fund's
THE BOARD'S FUND EVALUATION PROCESS legal counsel. The independent Trustees performance, advisory fees, expense
were also assisted in their annual limitations and/or fee waivers.
The Board's Investments Committee has evaluation of the Fund's investment
established three Sub-Committees that are advisory agreement by the Senior Officer. FACTORS AND CONCLUSIONS AND SUMMARY OF
responsible for overseeing the management One responsibility of the Senior Officer INDEPENDENT WRITTEN FEE EVALUATION
of a number of the series portfolios of is to manage the process by which the AIM
the AIM Funds. This Sub-Committee Funds' proposed management fees are A. Nature, Extent and Quality of
structure permits the Trustees to focus on negotiated during the annual contract Services Provided by Invesco Aim
the performance of the AIM Funds that have renewal process to ensure that they are
been assigned to them. The Sub-Committees negotiated in a manner that is at arms' The Board reviewed the advisory services
meet throughout the year to review the length and reasonable. Accordingly, the provided to the Fund by Invesco Aim under
performance of their assigned funds, and Senior Officer must either supervise a the Fund's investment advisory agreement,
the Sub-Committees review monthly and competitive bidding process or prepare an the performance of Invesco Aim in
quarterly comparative performance independent written evaluation. The Senior providing these services, and the
information and periodic asset flow data Officer recommended that an independent credentials and experience of the officers
for their assigned funds. These materials written evaluation be provided and, at the and employees of Invesco Aim who provide
are prepared under the direction and direction of the Board, prepared an these services. The Board's review of the
supervision of the independent Senior independent written evaluation. qualifications of Invesco Aim to provide
Officer, an officer of the AIM Funds who these services included the Board's
reports directly to the independent During the annual contract renewal consideration of Invesco Aim's portfolio
Trustees. Over the course of each year, process, the Board considered the factors and product review process, various back
the Sub-Committees meet with portfolio discussed below in evaluating the fairness office support functions provided by
managers for their assigned funds and and reasonableness of the Fund's Invesco Aim and its affiliates, and
other members of management and review investment advisory agreement and Invesco Aim's equity and fixed income
with these individuals the performance, sub-advisory contracts. The Board trading operations. The Board concluded
investment objective(s), policies, considered all of the information provided that the nature, extent and quality of the
to them, including information provided at advisory services provided to the Fund by
their meetings throughout Invesco Aim are appropriate and that
Invesco Aim
25 AIM STRUCTURED VALUE FUND continued
</Table>
<Table>
currently is providing satisfactory ers by permitting Invesco Aim to utilize end of the past calendar year. The Board
advisory services in accordance with the the additional resources and talent of the noted that some comparative data was at
terms of the Fund's investment advisory Affiliated Sub-Advisers in managing the least one year old and that other data did
agreement. In addition, based on their Fund. not reflect the market downturn that
ongoing meetings throughout the year with occurred in the fourth quarter of 2008.
the Fund's portfolio manager or managers, C. Fund Performance The Board noted that neither Invesco Aim
the Board concluded that these individuals nor its affiliates serve as an adviser to
are competent and able to continue to The Board considered Fund performance as a other domestic mutual funds or other
carry out their responsibilities under the relevant factor in considering whether to domestic clients with investment
Fund's investment advisory agreement. approve the investment advisory agreement strategies comparable to those of the
as well as the sub-advisory contracts for Fund.
In determining whether to continue the the Fund, as Invesco Institutional
Fund's investment advisory agreement, the currently manages assets of the Fund. The Board noted that Invesco Aim has
Board considered the prior relationship contractually agreed to waive fees and/or
between Invesco Aim and the Fund, as well The Board noted that the Fund recently limit expenses of the Fund through at
as the Board's knowledge of Invesco Aim's began operations and that only two least June 30, 2010 in an amount necessary
operations, and concluded that it is calendar years of comparative performance to limit total annual operating expenses
beneficial to maintain the current data was available. The Board compared the to a specified percentage of average daily
relationship, in part, because of such Fund's performance during the one and two net assets for each class of the Fund. The
knowledge. The Board also considered the year periods to the performance of funds Board considered the effect this expense
steps that Invesco Aim and its affiliates in the Lipper performance universe that limitation would have on the Fund's
continue to take to improve the quality are not managed by Invesco Aim or an estimated total expenses. The Board also
and efficiency of the services they Affiliated Sub-Adviser and against the noted that Invesco Aim has agreed to
provide to the AIM Funds in the areas of Lipper Large Cap Value Funds Index. The reduce the per account transfer agent fee
investment performance, product line Board noted that the Fund's performance for all the retail funds, including the
diversification, distribution, fund was in the first quintile of its Fund, effective July 1, 2009.
operations, shareholder services and performance universe for the one year
compliance. The Board concluded that the period and in the second quintile for the The Board also considered the services
quality and efficiency of the services two year period (the first quintile being provided by the Affiliated Sub-Advisers
Invesco Aim and its affiliates provide to the best performing funds and the fifth pursuant to the sub-advisory contracts and
the AIM Funds in each of these areas quintile being the worst performing the services provided by Invesco Aim
support the Board's approval of the funds). The Board noted that the Fund's pursuant to the Fund's advisory agreement,
continuance of the Fund's investment performance was above the performance of as well as the allocation of fees between
advisory agreement. the Index for the one and two year Invesco Aim and the Affiliated
periods. Although the independent written Sub-Advisers pursuant to the sub-advisory
B. Nature, Extent and Quality of evaluation of the Fund's Senior Officer contracts. The Board noted that the
Services Provided by Affiliated only considered Fund performance through sub-advisory fees have no direct effect on
Sub-Advisers the most recent calendar year, the Board the Fund or its shareholders, as they are
also reviewed more recent Fund performance paid by Invesco Aim to the Affiliated
The Board reviewed the services provided and this review did not change their Sub-Advisers, and that Invesco Aim and the
by the Affiliated Sub-Advisers under the conclusions. The Board noted that, in Affiliated Sub-Advisers are affiliates.
sub-advisory contracts and the credentials response to the Board's focus on fund
and experience of the officers and performance, Invesco Aim has taken a After taking account of the Fund's
employees of the Affiliated Sub-Advisers number of actions intended to improve the contractual advisory fee rate, the
who provide these services. The Board investment process for the funds. contractual sub-advisory fee rate, the
concluded that the nature, extent and comparative advisory fee information
quality of the services provided by the D. Advisory and Sub-Advisory Fees and discussed above, the expense limitations
Affiliated Sub-Advisers are appropriate. Fee Waivers and other relevant factors, the Board
The Board noted that the Affiliated concluded that the Fund's advisory and
Sub-Advisers, which have offices and The Board compared the Fund's contractual sub-advisory fees are fair and reasonable.
personnel that are geographically advisory fee rate to the contractual
dispersed in financial centers around the advisory fee rates of funds in the Fund's E. Economies of Scale and Breakpoints
world, can provide research and other Lipper expense group that are not managed
information and make recommendations on by Invesco Aim or an Affiliated The Board considered the extent to which
the markets and economies of various Sub-Adviser, at a common asset level. The there are economies of scale in the
countries and securities of companies Board noted that the Fund's contractual provision of advisory services to the
located in such countries or on various advisory fee rate was below the median Fund. The Board also considered whether
types of investments and investment contractual advisory fee rate of funds in the Fund benefits from such economies of
techniques. The Board noted that its expense group. The Board also reviewed scale through contractual breakpoints in
investment decisions for the Fund are made the methodology used by Lipper in the Fund's advisory fee schedule. The
by Invesco Institutional (N.A.), Inc. determining contractual fee rates, which Board noted that the Fund's contractual
(Invesco Institutional). The Board includes using audited financial data from advisory fee schedule includes seven
concluded that the sub-advisory contracts the most recent annual report of each fund breakpoints but that, due to the Fund's
benefit the Fund and its sharehold- in the expense group that was publicly asset level at the end of the past
available as of the calendar year, the Fund has yet to benefit
from the breakpoints. Based on this
information, the Board concluded that the
Fund's advisory fees would reflect
economies of
26 AIM STRUCTURED VALUE FUND continued
</Table>
<Table>
scale at higher asset levels. The Board services to the Fund. The Board considered
also noted that the Fund shares directly the performance of Invesco Aim and its
in economies of scale through lower fees affiliates in providing these services and
charged by third party service providers the organizational structure employed by
based on the combined size of all of the Investor Aim and its affiliates to provide
AIM Funds and affiliates. these services. The Board also considered
that these services are provided to the
F. Profitability and Financial Fund pursuant to written contracts that
Resources are reviewed and approved on an annual
basis by the Board. The Board concluded
The Board reviewed information from that Investor Aim and its affiliates are
Invesco Aim concerning the costs of the providing these services in a satisfactory
advisory and other services that Invesco manner and in accordance with the terms of
Aim and its affiliates provide to the Fund their contracts, and are qualified to
and the profitability of Invesco Aim and continue to provide these services to the
its affiliates in providing these Fund.
services. The Board also reviewed
information concerning the financial The Board considered the benefits
condition of Invesco Aim and its realized by Investor Aim and the
affiliates. The Board reviewed with Affiliated Sub-Advisers as a result of
Invesco Aim the methodology used to portfolio brokerage transactions executed
prepare the profitability information. The through "soft dollar" arrangements. The
Board considered the overall profitability Board noted that soft dollar arrangements
of Invesco Ltd., the ultimate parent of shift the payment obligation for research
Invesco Aim and the Affiliated and execution services from Invesco Aim
Sub-Advisers, and of Invesco Aim, as well and the Affiliated Sub-Advisers to the
as the profitability of Invesco Aim in funds and therefore may reduce Invesco
connection with managing the Fund. The Aim's and the Affiliated Sub-Advisers'
Board noted that Investor Aim continues to expenses. The Board concluded that
operate at a net profit, although the Invesco Aim's and the Affiliated
reduction of assets under management as a Sub-Advisers' soft dollar arrangements are
result of market movements and the appropriate. The Board also concluded
increase in voluntary fee waivers for that, based on their review and
affiliated money market funds have reduced representations made by the Chief
the profitability of Investor Aim and its Compliance Officer of Invesco Aim, these
affiliates. The Board concluded that the arrangements are consistent with
Fund's fees are fair and reasonable, and regulatory requirements.
that the level of profits realized by
Investor Aim and its affiliates from The Board considered the fact that the
providing services to the Fund is not Fund's uninvested cash and cash collateral
excessive in light of the nature, quality from any securities lending arrangements
and extent of the services provided. The may be invested in money market funds
Board considered whether Invesco Aim is advised by Invesco Aim pursuant to
financially sound and has the resources procedures approved by the Board. The
necessary to perform its obligations under Board noted that Invesco Aim will receive
the Fund's investment advisory agreement, advisory fees from these affiliated money
and concluded that Invesco Aim has the market funds attributable to such
financial resources necessary to fulfill investments, although Invesco Aim has
these obligations. The Board also contractually agreed to waive through at
considered whether each Affiliated least June 30, 2010, the advisory fees
Sub-Adviser is financially sound and has payable by the Fund in an amount equal to
the resources necessary to perform its 100% of the net advisory fees Invesco Aim
obligations under the sub-advisory receives from the affiliated money market
contracts, and concluded that each funds with respect to the Fund's
Affiliated Sub-Adviser has the financial investment in the affiliated money market
resources necessary to fulfill these funds of uninvested cash, but not cash
obligations. collateral. The Board concluded that the
Fund's investment of uninvested cash and
G. Collateral Benefits to Invesco Aim cash collateral from any securities
and its Affiliates lending arrangements in the affiliated
money market funds is in the best
The Board considered various other interests of the Fund and its
benefits received by Invesco Aim and its shareholders.
affiliates resulting from Invesco Aim's
relationship with the Fund, including the
fees received by Invesco Aim and its
affiliates for their provision of
administrative, transfer agency and
distribution
27 AIM STRUCTURED VALUE FUND
</Table>
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 August 31,
2009:
<Table>
<Caption>
FEDERAL AND STATE INCOME TAX
----------------------------
Qualified Dividend Income* 100%
Corporate Dividends Received Deduction* 100%
U.S. Treasury Obligations* 0.02%
</Table>
* The above percentages are based on ordinary income dividends paid to
shareholders during the Fund's fiscal year.
28 AIM STRUCTURED VALUE FUND
TRUSTEES AND OFFICERS
The address of each trustee and officer of AIM Counselor Series Trust (the
"Trust"), is 11 Greenway Plaza, Suite 100, Houston, Texas 77046-1173. Each
trustee oversees 105 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. Flanagan(1) -- 1960 2007 Executive Director, Chief Executive Officer and President, None
Trustee Invesco Ltd. (ultimate parent of Invesco Aim and a global
investment management firm); Chairman, Invesco Aim Advisors,
Inc. (registered investment advisor); Trustee, The AIM
Family of Funds(R); 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); Director, Invesco Ltd. and Chairman, Investment
Company Institute
- ------------------------------------------------------------------------------------------------------------------------------------
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 Executive Officer President, 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 registered transfer agent) and AIM GP
Canada Inc. (general partner for limited partnerships);
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
(registered investment advisor and registered transfer
agent) and Invesco Trimark Dealer Inc. (registered broker
dealer); Trustee, President and Principal Executive Officer,
The AIM Family of Funds(R) (other than AIM Treasurer's
Series Trust and Short-Term Investments Trust); Trustee and
Executive Vice President, The AIM Family of Funds(R) (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; Senior Managing
Director, Invesco Holding Company Limited; Trustee and
Executive Vice President, Tax-Free Investments Trust;
Director and Chairman, Fund Management Company (former
registered broker dealer); President and Principal
Executive Officer, The AIM Family of Funds (R) (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.
- ------------------------------------------------------------------------------------------------------------------------------------
INDEPENDENT TRUSTEES
- ------------------------------------------------------------------------------------------------------------------------------------
Bruce L. Crockett -- 1944 2003 Chairman, Crockett Technology Associates (technology ACE Limited (insurance
Trustee and Chair consulting company) company); Captaris,
Inc. (unified
messaging provider); and
Investment Company
Institute
- ------------------------------------------------------------------------------------------------------------------------------------
Bob R. Baker -- 1936 1983 Retired None
Trustee
- ------------------------------------------------------------------------------------------------------------------------------------
Frank S. Bayley -- 1939 2003 Retired None
Trustee Formerly: Director, Badgley Funds, Inc. (registered
investment company) (2 portfolios)
- ------------------------------------------------------------------------------------------------------------------------------------
James T. Bunch -- 1942 2000 Founder, Green, Manning & Bunch Ltd., (investment banking Board of Governors,
Trustee firm) Western Golf
Association/Evans
Scholars Foundation and
Executive Committee,
United States Golf
Association
- ------------------------------------------------------------------------------------------------------------------------------------
Albert R. Dowden -- 1941 2003 Director of a number of public and private business Board of Nature's
Trustee corporations, including the Boss Group Ltd. (private Sunshine Products, Inc.
investment and management); Continental Energy Services, LLC
(oil and gas pipeline service); Reich & Tang Funds
(registered investment 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.; Director, Annuity and Life Re
(Holdings), Ltd. (reinsurance company); Senior Vice
President, AB Volvo; Director of various public and
private corporations
- ------------------------------------------------------------------------------------------------------------------------------------
Jack M. Fields -- 1952 2003 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), Discovery Global Education Fund (non-profit)
and Cross Timbers Quail Research Ranch (non-profit)
Formerly: Chief Executive Officer, Texana Timber LP
(sustainable forestry company)
- ------------------------------------------------------------------------------------------------------------------------------------
Carl Frischling -- 1937 2003 Partner, law firm of Kramer Levin Naftalis and Frankel LLP Director, Reich & Tang
Trustee Funds (16 portfolios)
- ------------------------------------------------------------------------------------------------------------------------------------
Prema Mathai-Davis -- 1950 2003 Retired None
Trustee
- ------------------------------------------------------------------------------------------------------------------------------------
Lewis F. Pennock -- 1942 2003 Partner, law firm of Pennock & Cooper None
Trustee
- ------------------------------------------------------------------------------------------------------------------------------------
Larry Soll -- 1942 1997 Retired None
Trustee
- ------------------------------------------------------------------------------------------------------------------------------------
Raymond Stickel, Jr. -- 1944 2005 Retired None
Trustee Formerly: Director, Mainstay 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.
T-1
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 N/A
Senior Vice President and of Funds(R) Formerly: Director of Compliance and Assistant
Senior Officer 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 N/A
Senior Vice President, Chief Counsel, Invesco Aim Management Group, Inc., Invesco Aim
Legal Officer and Secretary Advisors, Inc. 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(R); 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 and General
Counsel, 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 N/A
Vice President President, The AIM Family of Funds(R)
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(R); 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, N/A
Vice President Invesco Ltd.; Director, 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(R)
Formerly: Senior Managing Director and Secretary, Invesco
North American Holdings, Inc.; Vice President and Secretary,
IVZ, Inc. and Invesco Group Services, 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. and Invesco Aim Investment
Services, Inc.; Senior Vice President, Chief Legal Officer
and Secretary, The AIM Family of Funds(R); Director and Vice
President, INVESCO Distributors, Inc.; and Chief Executive
Officer and President, INVESCO Funds Group, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Sheri Morris -- 1964 2003 Vice President, Treasurer and Principal Financial Officer, N/A
Vice President, Treasurer and The AIM Family of Funds(R); and Vice President, Invesco Aim
Principal Financial Officer Advisors, Inc., Invesco Aim Capital Management, Inc. and
Invesco Aim Private Asset Management Inc.
Formerly: Assistant Vice President and Assistant Treasurer,
The AIM Family of Funds(R) and Assistant Vice President,
Invesco Aim Advisors, Inc., Invesco Aim Capital Management,
Inc. and Invesco Aim Private Asset Management, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Karen Dunn Kelley -- 1960 2003 Head of Invesco's World Wide Fixed Income and Cash N/A
Vice President Management Group; Vice President, Invesco Institutional
(N.A.), Inc. (registered investment advisor); 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, Invesco Institutional (N.A.), Inc.
(registered investment advisor); and Director, Invesco
Mortgage Capital Inc.; Vice President, The AIM Family of
Funds(R) (other than AIM Treasurer's Series Trust and
Short-Term Investments Trust); and President and Principal
Executive Officer, The AIM Family of Funds(R) (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(R) (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 N/A
Anti-Money Laundering Advisors, Inc., Invesco Aim Capital Management, Inc.,
Compliance Officer Invesco Aim Distributors, Inc., Invesco Aim Investment
Services, Inc., Invesco Aim Private Asset Management, Inc.
and The AIM Family of Funds(R)
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.; N/A
Chief Compliance Officer Senior Vice President and Chief Compliance Officer, Invesco
Aim Advisors, Inc. and Invesco Aim Capital Management, Inc.;
Chief Compliance Officer, The AIM Family of Funds(R),
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.
- ------------------------------------------------------------------------------------------------------------------------------------
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.
OFFICE OF THE FUND INVESTMENT ADVISOR DISTRIBUTOR AUDITORS
11 Greenway Plaza Invesco Aim Advisors, Inc. Invesco Aim Distributors, Inc. PricewaterhouseCoopers LLP
Suite 100 11 Greenway Plaza 11 Greenway Plaza 1201 Louisiana Street
Houston, TX 77046-1173 Suite 100 Suite 100 Suite 2900
Houston, TX 77046-1173 Houston, TX 77046-1173 Houston, TX 77002-5678
COUNSEL TO THE FUND
Stradley Ronon Stevens & COUNSEL TO THE TRANSFER AGENT CUSTODIAN
Young, LLP INDEPENDENT TRUSTEES Invesco Aim Investment Services, Inc. State Street Bank and Trust
2600 One Commerce Square Kramer, Levin, Naftalis & Frankel LLP P.O. Box 4739 Company
Philadelphia, PA 19103 1177 Avenue of the Americas Houston, TX 77210-4739 225 Franklin
New York, NY 10036-2714 Boston, MA 02110-2801
</Table>
T-2
<Table>
(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 number - EFFICIENT. Stop waiting for regular mail. Your documents
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
expenses and put more capital back in your fund's computer with a few clicks of your mouse.
returns.
This service is provided by Invesco Aim Investment Services, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
IMPORTANT NOTICE REGARDING DELIVERY OF SECURITY HOLDER DOCUMENTS
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the
same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise.
If you do not want the mailing of these documents to be combined with those for other members of your household, please contact
Invesco Aim Investment Services, Inc. at 800 959 4246 or contact your financial institution. We will begin sending you individual
copies for each account within thirty days after receiving your request.
- ------------------------------------------------------------------------------------------------------------------------------------
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 811-09913 and 333-36074.
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, 2009,
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 January 20, 2010, 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,
exchange-traded 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.
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 Aim Private Asset Management, Inc. and Invesco Global Asset [INVESCO AIM LOGO]
Management (N.A.), Inc. will be merged into Invesco Institutional (N.A.), Inc., and the consolidated adviser - SERVICE MARK -
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 SVAL-AR-1 Invesco Aim Distributors, Inc.
</Table>
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
Percentage of Fees Billed Applicable to
Billed Applicable to Non-Audit Services
Non-Audit Services Provided for fiscal
Fees Billed for Provided for fiscal Fees Billed for year end 2008
Services Rendered to year end 2009 Services Rendered to Pursuant to Waiver of
the Registrant for Pursuant to Waiver of the Registrant for Pre-Approval
fiscal year end 2009 Pre-Approval Requirement(1) fiscal year end 2008 Requirement(1)
-------------------- --------------------------- -------------------- ---------------------
Audit Fees $296,296 N/A $259,468 N/A
Audit-Related Fees (2) $ 6,000 0% $ 0 0%
Tax Fees(3) $ 59,206 0% $ 64,876 0%
All Other Fees $ 0 0% $ 0 0%
-------- --------
Total Fees $361,502 0% $324,344 0%
PWC billed the Registrant aggregate non-audit fees of $65,206 for the fiscal
year ended 2009, and $64,876 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) Audit-Related Fees for the fiscal year ended August 31, 2009 includes fees
billed for completing agreed-upon procedures related to fund mergers.
(3) Tax fees for the fiscal year end August 31, 2009 includes fees billed for
reviewing tax returns and consultation services. Tax fees for the fiscal
year end August 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:
Fees Billed for Non- Fees Billed for Non-
Audit Services Audit Services
Rendered to Invesco Percentage of Fees Rendered to Invesco Percentage of Fees
Aim and Invesco Aim Billed Applicable to Aim and Invesco Aim Billed Applicable to
Affiliates for fiscal Non-Audit Services Affiliates for fiscal Non-Audit Services
year end 2009 That Provided for fiscal year year end 2008 That Provided for fiscal year
Were Required end 2009 Pursuant to Were Required end 2008 Pursuant to
to be Pre-Approved Waiver of Pre- to be Pre-Approved Waiver of Pre-
by the Registrant's Approval by the Registrant's 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
following matter for consideration under the SEC's auditor
independence rules.
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 this matter. In reaching this conclusion, PwC noted that during the
time of its audits, the engagement team was not aware of the services
provided and noted the insignificance of the services provided. Based
on the foregoing, PwC did not believe this matter 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 September 21, 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 September 21, 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 Counselor Series Trust
By: /s/ Philip A. Taylor
---------------------------------
Philip A. Taylor
Principal Executive Officer
Date: November 6, 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: November 6, 2009
By: /s/ Sheri Morris
---------------------------------
Sheri Morris
Principal Financial Officer
Date: November 6, 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.