NOTE 1--SIGNIFICANT ACCOUNTING POLICIES
AIM Limited Maturity Treasury Fund (the "Fund") is a series portfolio of AIM Investment Securities Funds (the
"Trust"). The Trust is a Delaware statutory trust registered under the Investment Company Act of 1940, as
amended (the "1940 Act"), as an open-end series management investment company consisting of eleven 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 liquidity with minimum fluctuation of principal value, and consistent with this
objective, the highest total return achievable.
The Fund currently consists of four different classes of shares: Class A, Class A3, Class Y and Institutional Class.
As of the close of business on October 30, 2002, Class A shares were closed to new investors. Class A shares
are sold with a front-end sales charge unless certain waiver criteria are met and under certain circumstances load
waiver shares may be subject to contingent deferred sales charges ("CDSC"). Class A3, Class Y and Institutional
Class shares are sold at net asset value.
The following is a summary of the significant accounting policies followed by the Fund in the preparation of its
A. SECURITY VALUATIONS -- Securities, including restricted securities, are valued according to the
Securities are fair valued using an evaluated quote provided by an independent pricing service approved by the
Board of Trustees. Evaluated quotes provided by the pricing service may be determined without exclusive
reliance on quoted prices and may reflect appropriate factors such as institution-size trading in similar groups of
securities, yield, quality, coupon rate