<PAGE>
ANNUAL REPORT / DECEMBER 31 1998
AIM GLOBAL TRENDS FUND
[Cover Image]
[AIM Logo APPEARS HERE]
INVEST WITH DISCIPLINE-REGISTERED TRADEMARK-
<PAGE>
[Cover Image] VARIIERTE RECHTECKE BY WASSILY KANDINSKY, 1866-1944,
RUSSIAN CONSIDERED THE FOUNDER OF ABSTRACT ART, WASSILY
KANDINSKY EVOKES A GEOMETRIC RHYTHM IN HIS PAINTING,
TRANSLATED FROM GERMAN AS "VARIED RECTANGLES." DURING
THE 1920s, WASSILY EXPLORED THE POWER OF COLOR AND
SHAPES. THE LINES AND FORMS IN THIS PAINTING ELICIT
UNIVERSAL SYMBOLS OF GROWTH SUCH AS ROADS, GRIDS, AND
BRIDGES. ITS RIGHT ANGLES BRING A SENSE OF ORDER AND
STRUCTURE TO THE COMPOSITION.
AIM Global Trends Fund is for shareholders who seek long-term growth of
capital through an actively managed blend of the six AIM Global Theme Funds.
The mix gives investors broad diversification across industry groups
throughout the world.
ABOUT FUND PERFORMANCE AND PORTFOLIO DATA THROUGHOUT
THIS REPORT:
- -- AIM Global Trends Fund (formerly GT Global New Dimension Fund)
performance figures are historical and reflect reinvestment of all
distributions and changes in net asset value. Unless otherwise
indicated, the Fund's performance is computed at net asset value
without a sales charge.
- -- During the fiscal year ended 12/31/98 the Fund paid the following
distributions: Class A shares, $0.16 per share; Class B and Class C
shares, $0.14 per share; Advisor Class, $0.22 per share.
- -- When sales charges are included in performance figures, Class A share
performance reflects the maximum 4.75% sales charge. Class B and Class
C share performance reflects the applicable contingent deferred sales
charge (CDSC) for the period involved. The CDSC on Class B shares
declines from 5% beginning at the time of purchase to 0% at the
beginning of the seventh year. The CDSC on Class C shares is 1% for
the first year after purchase. The performance of the Fund's Class B
shares and Class C will differ from that of Class A shares due to
differences in sales charge structure and Fund expenses.
- -- Advisor Class shares are not sold directly to the general public and
are available only through certain employee benefit plans, financial
institutions and other entities that have entered into specific
agreements with the Fund's Distributor. Please see the Fund's Advisor
Class prospectus for more complete information.
- -- The Fund's investment return and principal value will fluctuate so
that an investor's shares, when redeemed, may be worth more or less
than their original cost.
- -- International investing presents certain risks not associated with
investing solely in the United States. These include risks relating
to fluctuations in the value of the U.S. dollar relative to the values
of other currencies, the custody arrangements made for the Fund's
foreign holdings, differences in accounting, political risks, and the
lesser degree of public information required to be provided by
non-U.S. companies.
ABOUT INDEXES AND OTHER PERFORMANCE BENCHMARKS CITED IN THIS REPORT:
- -- The MSCI World Index is a group of unmanaged global securities tracked
by Morgan Stanley Capital International.
- -- The MSCI All Countries World Index is a group of unmanaged global
securities including 47 markets in developed and emerging countries.
The index is tracked by Morgan Stanley Capital International.
- -- The unmanaged Standard & Poor's Composite Index of 500 Stocks (S&P
500) is widely regarded by investors as representative of the stock
market in general.
- -- The Dow Jones Industrial Average (the Dow) is an unmanaged composite
of the performance of 30 large-company stocks.
- -- The EAFE-Registered Trademark- (Europe, Australasia, and the Far East)
Index is a group of unmanaged foreign securities. The index is
compiled by Morgan Stanley Capital International.
- -- The Lehman Aggregate Bond Index is an unmanaged index generally
considered to be representative of corporate debt securities, compiled
by Lehman Brothers.
- -- An investment cannot be made in any index listed. Unless otherwise
indicated, index results include reinvested dividends and do not reflect
sales charges.
AN INVESTMENT IN THE FUND IS NOT A DEPOSIT OF A BANK AND IS NOT INSURED OR
GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY OTHER GOVERNMENT
AGENCY. THERE IS A RISK THAT YOU COULD LOSE A PORTION OR ALL OF YOUR MONEY.
This report may be distributed only to current shareholders or to persons who
have received a current prospectus of the Fund.
AIM GLOBAL TRENDS FUND
<PAGE>
ANNUAL REPORT / CHAIRMAN'S LETTER
[PHOTO OF
Charles T. Bauer,
Chairman of the
Board of the
Fund APPEARS HERE]
DEAR FELLOW SHAREHOLDER:
As the fiscal year opened, markets were recovering from
the concerns produced by financial crises in Asia
during 1997, and this optimism early in 1998 led
several market indexes to all-time highs in spring and
early summer. However, the year was to bring two
particularly serious financial shocks, first the debt
default by Russia, and later the gathering crisis in
Brazil, which devalued its currency shortly after the
fiscal year closed. The result was another year of
significant market volatility. Optimism yielded to
pessimism over the summer as global financial crises
precipitated a worldwide loss of confidence that
affected even previously high-flying U.S. blue chips
and market-leading European stocks.
Beginning in late September, the U.S. Federal Reserve
Board intervened to pump liquidity and confidence into
markets. Numerous interest rate cuts in other countries
followed. Investors responded favorably. Europe and the
U.S. regained their market leadership, but investors in
most emerging markets suffered serious financial loss
over the year.
HOW SHOULD INVESTORS RESPOND?
We understood how unnerving 1998's level of volatility
could have been. Our repeated message to you is to keep
a long-term outlook on investments rather than
responding to short-term fluctuations. And we are
pleased to note that most mutual fund shareholders
remained cool headed and did not pull out of the
markets during 1998. In the end, most were rewarded for
their long-term perspective.
In view of recent volatility and the divergent
performance of market sectors, this may be a very good
time to meet with your financial consultant to review
your current asset allocation and the diversification
of your portfolio. Broad portfolio diversification
remains one of the most fundamental principles of
investing, along with long-term thinking and realistic
expectations.
. . . WE ARE PLEASED
TO NOTE THAT MOST
MUTUAL FUND
SHAREHOLDERS REMAINED
COOL HEADED AND
DID NOT PULL OUT OF THE
MARKETS DURING 1998.
YOUR FUND MANAGERS' COMMENTS
On the pages that follow, your Fund's managers,
experienced professionals who have weathered previous
periods of market turbulence, offer more detailed
discussion of how markets behaved, how they managed the
portfolio in light of recent volatility, and what they
foresee for markets and your Fund. We hope you find
their discussion informative.
BROADENED INVESTMENTS PLANNED
After the close of the fiscal year, AIM planned to
broaden the investment strategy of one of the funds in
which AIM Global Trends Fund invests. Effective June 1,
1999, AIM Global Telecommunications Fund will include
technology-sector investments in its portfolio. At that
time, we anticipate renaming the Fund AIM Global
Telecommunications and Technology Fund to reflect its
exposure to both sectors.
YEAR 2000 CONCERN
Many of our shareholders have asked us about AIM's year
2000 readiness status. We appreciate these concerns,
and we take the year 2000 issue seriously. AIM has
devoted considerable effort to creating a comprehensive
plan for assessing, correcting and testing our in-house
systems. We will also participate in an industrywide
testing effort scheduled to begin in March. But no
matter how well we prepare and test, no one can know
for sure what the year 2000 will bring. Our industry's
systems are connected in complex ways to many third
parties, and there may be unforeseen problems when the
year 2000 actually arrives. Though we cannot predict
what all those problems might be, we are working with
our business recovery team to develop contingency plans
appropriate for a variety of year 2000 scenarios.
We are pleased to send you this report on your Fund's
fiscal year. If you have any questions or comments,
please contact our Client Services department at
800-959-4246. You can access information about your
account through our AIM Investor Line at 800-246-5463
or at our Web site, www.aimfunds.com.
We thank you for your continued participation in The
AIM Family of Funds-Registered Trademark-.
Sincerely,
/s/ CHARLES T. BAUER
Charles T. Bauer
Chairman, A I M Advisors, Inc.
AIM GLOBAL TRENDS FUND
<PAGE>
ANNUAL REPORT / MANAGERS' OVERVIEW
GLOBAL DIVERSIFICATION OFFERS ADVANTAGE IN TURBULENT MARKET
GLOBAL FINANCIAL MARKETS EXPERIENCED INTENSE VOLATILITY IN 1998. HOW DID THE
FUND PERFORM IN THIS ENVIRONMENT?
The Fund reported solid annual total returns of 9.37% for Class A shares,
8.83% for Class B shares, and 9.80% for Advisor Class shares. The Fund began
offering Class C shares on January 2, 1998, and their cumulative annual
return from inception to end of the fiscal year was 8.94%.
The Fund is an actively managed blend of six AIM Global Theme Funds, which
invest in companies across several industries. Theme funds invest in industry
groups tied together by an economic or social theme. Managers of the AIM
Global Trends Fund allocate its assets among the six theme funds according to
industry weightings in the MSCI All Country World Index. (Please see the
sidebar on page 3 for the investment strategies of each of the six theme
funds.)
WHAT WERE THE MAJOR TRENDS IN THE WORLD MARKETS OVER THE FISCAL YEAR?
We would describe 1998 as a market with three definite phases. During the
first stage, from January to mid-July, the bull market climbed, spurred by
strong economies in the United States and Europe. But by summer these good
sentiments began to disintegrate. In July the market entered its second
phase, abruptly declining. By August, market indexes such as the Dow plunged.
A convergence of international problems triggered the downturn: currency
devaluation in Southeast Asia, lingering recession in Japan, and Russian
default on foreign debt.
The third phase came in October as markets stabilized and rallied, spurred
by a series of interest rate cuts. Over the course of seven weeks, the U.S.
Federal Reserve Board lowered the key federal funds rate from 5.50% to 4.75%.
The three cuts triggered an astounding market rally. By the end of the fiscal
year, major stock and bond indexes reported impressive total returns: the S&P
500, up 28.6%; the MSCI World Index, up 24.3%; and the Lehman Aggregate Bond
Index, up 8.7%.
PORTFOLIO OF INVESTMENTS
As of 12/31/98, as a percentage of net assets
<TABLE>
<S> <C>
AIM Global Consumer Products and Services Fund 33.0%
AIM Global Financial Services Fund 21.3%
AIM Global Infrastructure Fund 15.8%
AIM Global Health Care Fund 11.5%
AIM Global Resources Fund 9.6%
AIM Global Telecommunications Fund 9.4%
</TABLE>
[Pie Chart]
THE FUND'S LARGEST ALLOCATION WAS IN THE AIM GLOBAL CONSUMER PRODUCTS AND
SERVICES FUND. HOW DID IT PERFORM?
Consumer products and services stocks are benefiting from increased consumer
spending, encouraged by lower interest rates and low inflation. The AIM
Global Consumer Products and Services Fund focused on large-cap companies
based in the United States, the United Kingdom, Europe, Canada and Australia.
In the current environment with the economy expected to slow, the Fund turned
to more conservative and established domestic large-cap companies for growth
in fiscal 1998. These included industry leaders such as Microsoft and GE. The
Fund also emphasized companies with consumer staple-type products and
services that sell even during a weaker economy. The Fund's top holdings were
household names with strong brand recognition, such as Heineken, Dial, Clorox
and Safeway.
Until global markets stabilize, this Fund will continue to focus on more
predictable, large-company holdings in developed countries.
IT WAS A DIFFICULT YEAR FOR MANY FINANCIAL STOCKS. WHAT WAS THE EFFECT OF MARKET
TURMOIL ON THE AIM GLOBAL FINANCIAL SERVICES FUND?
Financial markets were battered by unfavorable news in Asia, Russia and Latin
America and the near collapse of a major hedge fund.
The Fund sold several holdings that were particularly market sensitive,
including stocks of brokerage firms, trading banks, and European banks with
Russian exposure. It acquired defensive stocks such as regional banks and
insurance companies that were less affected by the emerging market crisis.
The Fund had no significant Asian exposure during the fiscal year and had a
sizable European presence in healthy economies such as Ireland and the
Netherlands.
Many financial-services stocks currently held by the Fund represent
significant value in the wake of the market sell-off earlier this year. This
factor combined with the Fund's defensive holdings in regional banks and
insurance companies positions it well for 1999, we believe.
HOW DID THE AIM GLOBAL INFRASTRUCTURE FUND PERFORM?
Infrastructure companies were hit hard by investors' fears that the credit
crunch in emerging markets could spread to Europe and the United States,
possibly halting growth.
The Fund faced a number of challenges over the fiscal year because of its
exposure to cyclically sensitive companies such as airlines, machinery
makers, industrial components manufacturers and construction and engineering
firms.
SEE IMPORTANT FUND AND INDEX DISCLOSURES INSIDE FRONT COVER.
AIM GLOBAL TRENDS FUND
2
<PAGE>
ANNUAL REPORT / MANAGERS' OVERVIEW
The Fund decreased its exposure in the weakest economies, mostly in
emerging markets. It also lowered exposure to companies with significant
sales to emerging markets such as airlines, long-haul freight, and
commodity-oriented companies. The Fund redeployed these assets into utility
stocks because of their defensive characteristics during volatile, uncertain
markets. Fund managers expect to retain this high concentration in utility
stocks as long as uncertainty prevails throughout most of the other
infrastructure sectors.
WHAT WERE THE MAJOR TRENDS FOR THE AIM GLOBAL HEALTH CARE FUND?
Stocks of large-cap pharmaceutical companies and medical-device makers soared
in 1998. Drug manufacturers in particular experienced strong earnings growth
because of pricing flexibility. They also continued to produce a steady
stream of new drugs that were enthusiastically received by a health-conscious
population.
The Fund changed its focus over the fiscal year as it dedicated more of its
assets to large pharmaceutical companies such as Warner-Lambert and Merck.
The fund reduced its stake in biotechnology and medical technology and supply
firms because their stocks experienced weakness in 1998. In addition, the
Fund increased its foreign exposure to take advantage of a strong economy in
Europe.
BY THE END OF THE FISCAL YEAR, MAJOR STOCK AND BOND INDEXES REPORTED
IMPRESSIVE TOTAL RETURNS.
HOW DID THE AIM GLOBAL RESOURCES FUND PERFORM IN FISCAL 1998?
The Fund experienced a challenging year because of the decline in commodity
prices.
The Fund increased its positions in the United States, with the rest of its
investments in Europe, Canada, Australia and the United Kingdom. The Fund
diversified into a number of commodity types, including cement, gypsum and
gravel manufacturers, which remained relatively unaffected by market
turbulence. The Fund also purchased stocks in companies with little commodity
price risk, such as pipelines, propane distributors and uranium refiners.
Among the Fund's best performing stocks were those of building materials
companies.
Low commodity prices worldwide will continue to exert significant downward
pressure on earnings of resource companies, increasing the risks and
uncertainties of this type of investment. The Fund will continue to take a
defensive position in more stable, large-company holdings in developed
markets.
WHAT WERE THE MAJOR FACTORS INFLUENCING THE PERFORMANCE OF THE AIM GLOBAL
TELECOMMUNICATIONS FUND IN 1998?
The AIM Global Telecommunications Fund put a greater emphasis on
conservative, established telecommunications service and equipment companies
such as GTE. It also increased holdings in wireless services and equipment,
especially in Europe. Lower calling prices and increased competition
continued to drive domestic and international growth in wireless
communications. Holdings in Russia and Latin America were reduced because of
economic difficulties there.
The Fund will continue to focus on two principal areas of investment:
conservative well-established global telephone companies and market leaders
in equipment and technology with a proven ability to increase earnings.
WHAT IS YOUR OUTLOOK FOR GLOBAL FINANCIAL MARKETS IN GENERAL?
Recent political changes in Europe have introduced a few uncertainties, but
overall, we're confident in the region. In early December, European markets
soared when countries preparing to enter the European Economic and Monetary
Union participated in a coordinated interest-rate cut.
Many analysts believe Asia will hit bottom in 1999, indicating that growth
and investor confidence may return some time next year. A Japanese bank
bailout offers hope, but its implementation is far from clear.
The U.S. economy is likely to experience annual gross domestic product
growth in the 1.5% to 2% range, so we expect low inflation and low interest
rates to continue.
FUND INVESTMENT STRATEGIES
- -- AIM GLOBAL CONSUMER PRODUCTS AND SERVICES FUND invests in companies
that manufacture, market, retail or distribute consumer products and
services.
- -- AIM GLOBAL FINANCIAL SERVICES FUND invests in companies such as banks,
brokerages, insurance companies, consumer credit firms and investment
management firms.
- -- AIM GLOBAL HEALTH CARE FUND invests in companies that are redefining
health care, such as biotechnology, health care services, medical
devices and pharmaceuticals.
- -- AIM GLOBAL INFRASTRUCTURE FUND invests in transportation, utilities,
construction and communications services companies.
- -- AIM GLOBAL RESOURCES FUND invests in companies that own, explore or
develop natural resources.
- -- AIM GLOBAL TELECOMMUNICATIONS FUND invests in companies that develop,
manufacture and sell telecommunications services, equipment and
content.
SEE IMPORTANT FUND AND INDEX DISCLOSURES INSIDE FRONT COVER.
AIM GLOBAL TRENDS FUND
3
<PAGE>
ANNUAL REPORT / PERFORMANCE HISTORY
YOUR FUND'S LONG-TERM PERFORMANCE
RESULTS OF A $10,000 INVESTMENT
AIM GLOBAL TRENDS FUND VS. BENCHMARK INDEX
9/15/97-12/31/98
in thousands
<TABLE>
<CAPTION>
AIM AIM MSCI AIM
Global Trends, Global Trends, All Country Global Trends
Class A Shares Class B Shares World Index Advisor Class
<S> <C> <C> <C> <C>
9/15/97 9,525 10,000 10,000 10,000
9/97 9,725 10,201 10,514 10,210
10/97 9,317 9,773 9,868 9,790
11/97 9,175 9,624 10,015 9,641
12/97 9,269 9,717 10,143 9,749
1/98 9,034 9,470 10,365 9,510
2/98 9,775 10,238 11,081 10,289
3/98 10,298 10,778 11,549 10,839
4/98 10,403 10,888 11,650 10,958
5/98 10,150 10,622 11,422 10,692
6/98 10,333 10,796 11,622 10,885
7/98 10,106 10,567 11,626 10,656
8/98 8,380 8,756 9,995 8,841
9/98 8,485 8,866 10,195 8,951
10/98 8,859 9,241 11,127 9,345
11/98 9,418 9,826 11,801 9,941
12/98 10,138 10,574 12,345 10,704
</TABLE>
Past performance cannot guarantee comparable future results.
MARKET VOLATILITY CAN SIGNIFICANTLY AFFECT SHORT-TERM PERFORMANCE. RESULTS OF AN
INVESTMENT MADE TODAY MAY DIFFER SUBSTANTIALLY FROM THE HISTORICAL PERFORMANCE
SHOWN.
AVERAGE ANNUAL TOTAL RETURNS
As of 12/31/98, including sales charges
<TABLE>
<CAPTION>
CLASS A SHARES
<S> <C>
Inception (9/15/97) 1.07%
1 Year 4.18*
</TABLE>
*9.37% excluding sales charges
<TABLE>
<CAPTION>
CLASS B SHARES
<S> <C>
Inception (9/15/97) 1.35%
1 Year 3.83**
</TABLE>
**8.83% excluding sales charges
<TABLE>
<CAPTION>
CLASS C SHARES
<S> <C>
Inception (1/1/98) 7.94%***
</TABLE>
***cumulative total return since inception, 8.94% excluding sales charges
<TABLE>
<CAPTION>
ADVISOR CLASS SHARES
<S> <C>
Inception (9/15/97) 5.4%
1 Year 9.80
</TABLE>
Source: Towers Data Systems HYPO-Registered Trademark-.
Your Fund's total return includes sales charges, expenses, and management
fees. For Fund data performance calculations and descriptions of indexes
cited on this page, please refer to the inside front cover. The performance
of the Fund's Class C shares will differ from that of other share classes due
to differences in sales charge structure and Fund expenses.
ABOUT THIS CHART
The chart compares your Fund's Class A, Class B, and Advisor Class shares to
a benchmark index. It is intended to give you a general idea of how your Fund
performed compared to the stock market over the period 9/15/97- 12/31/98. It
is important to understand differences between your Fund and an index. An
index measures performance of a hypothetical portfolio. A market index such
as the MSCI All Country World Index is not managed, incurring no sales
charges, expenses or fees. (Please note that the results for this index are
from 8/31/97-12/31/98). If you could buy all the securities that make up a
market index, you would incur expenses that would affect the return on your
investment.
AIM GLOBAL TRENDS FUND
4
<PAGE>
PORTFOLIO OF INVESTMENTS
December 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ADVISOR
CLASS VALUE % OF NET
AIM GLOBAL THEME FUNDS SHARES (NOTE 1) ASSETS
- ---------------------------------------------------------------------- ----------- ------------ -------------
<S> <C> <C> <C>
AIM Global Consumer Products and Services Fund ..................... 560,525 $ 14,680,148 33.0
AIM Global Financial Services Fund ................................. 476,746 9,453,864 21.3
AIM Global Infrastructure Fund ..................................... 474,400 7,040,101 15.8
AIM Global Health Care Fund ........................................ 212,889 5,126,361 11.5
AIM Global Resources Fund .......................................... 384,299 4,265,717 9.6
AIM Global Telecommunications Fund ................................. 216,883 4,157,651 9.4
------------ -----
TOTAL THEME FUND INVESTMENTS (cost $43,425,392) ...................... 44,723,842 100.6
------------ -----
TOTAL INVESTMENTS (cost $43,425,392) * .............................. 44,723,842 100.6
Other Assets and Liabilities ......................................... (276,719) (0.6)
------------ -----
NET ASSETS ........................................................... $ 44,447,123 100.0
------------ -----
------------ -----
</TABLE>
- --------------
* For Federal income tax purposes, cost is $44,126,685 and
appreciation (depreciation) is as follows:
<TABLE>
<S> <C>
Unrealized appreciation: $ 2,594,572
Unrealized depreciation: (1,997,415)
-------------
Net unrealized appreciation: $ 597,157
-------------
-------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
5
<PAGE>
STATEMENT OF ASSETS
AND LIABILITIES
December 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
Assets:
Investments at value (cost $43,425,392) (Note 1).................................................. $44,723,842
Receivable for Fund shares sold................................................................... 64,727
----------
Total assets.................................................................................... 44,788,569
----------
Liabilities:
Payable for Fund shares repurchased............................................................... 251,784
Payable for service and distribution expenses (Note 2)............................................ 89,662
----------
Total liabilities............................................................................... 341,446
----------
Net assets.......................................................................................... $44,447,123
----------
----------
Class A:
Net asset value and redemption price per share ($17,821,706 DIVIDED BY 1,555,460 shares
outstanding)....................................................................................... $ 11.46
----------
----------
Maximum offering price per share (100/95.25 of $11.46) *............................................ $ 12.03
----------
----------
Class B:+
Net asset value and offering price per share ($25,555,015 DIVIDED BY 2,240,410 shares
outstanding)....................................................................................... $ 11.41
----------
----------
Class C:+
Net asset value and offering price per share ($249,327 DIVIDED BY 21,865 shares outstanding)........ $ 11.40
----------
----------
Advisor Class:
Net asset value, offering price per share, and redemption price per share ($821,075 DIVIDED BY
71,690 shares outstanding)......................................................................... $ 11.45
----------
----------
Net assets consist of:
Paid in capital (Note 4).......................................................................... $44,578,806
Undistributed net investment income............................................................... 2,313
Accumulated net realized loss on investments...................................................... (1,432,446)
Net unrealized appreciation of investments........................................................ 1,298,450
----------
Total -- representing net assets applicable to capital shares outstanding........................... $44,447,123
----------
----------
<FN>
- --------------
* On sales of $50,000 or more, the offering price is reduced.
+ Redemption price per share is equal to the net asset value per share less
any applicable contingent deferred sales charge.
</TABLE>
The accompanying notes are an integral part of the financial statements.
6
<PAGE>
STATEMENT OF OPERATIONS
Year ended December 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
Investment income: (Note 1)
Dividend income............................................................................ $ 131,152
Interest income............................................................................ 3,454
----------
Total investment income.................................................................. 134,606
----------
Expenses:
Service and distribution expenses: (Note 2)
Class A...................................................................... $ 98,572
Class B...................................................................... 258,946
Class C...................................................................... 2,080 359,598
----------
Other expenses............................................................................. 1,921
----------
Total expenses............................................................................. 361,519
----------
Net investment loss.......................................................................... (226,913)
----------
Net realized and unrealized gain (loss) on investments: (Note 1)
Net realized loss on investments............................................... (1,998,812)
Capital gain distributions received............................................ 836,396
----------
Net realized loss during the year........................................................ (1,162,416)
Net unrealized appreciation during the year.............................................. 4,092,846
----------
Net realized and unrealized gain on investments.............................................. 2,930,430
----------
Net increase in net assets resulting from operations......................................... $2,703,517
----------
----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
7
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SEPTEMBER 15,
1997
(COMMENCEMENT
OF
YEAR ENDED OPERATIONS) TO
DECEMBER 31, DECEMBER 31,
1998 1997
------------- --------------
<S> <C> <C>
Increase in net assets
Operations:
Net investment loss...................................................... $ (226,913) $ (31,440)
Net realized gain (loss) on investments.................................. (1,162,416) 1,983,653
Net change in unrealized appreciation (depreciation) of investments...... 4,092,846 (2,794,396)
------------- --------------
Net increase (decrease) in net assets resulting from operations........ 2,703,517 (842,183)
------------- --------------
Class A:
Distributions to shareholders: (Note 1)
From net investment income............................................... (26,011) --
From net realized gain on investments.................................... (219,151) --
In excess of net investment income....................................... -- (583,714)
Class B:
Distributions to shareholders: (Note 1)
From net investment income............................................... -- --
From net realized gain on investments.................................... (311,471) --
In excess of net investment income....................................... -- (781,183)
Class C:+
Distributions to shareholders: (Note 1)
From net investment income............................................... -- N/A
From net realized gain on investments.................................... (2,998) N/A
In excess of net investment income....................................... -- N/A
Advisor Class:
Distributions to shareholders: (Note 1)
From net investment income............................................... (5,762) --
From net realized gain on investments.................................... (9,683) --
In excess of net investment income....................................... -- (53,046)
------------- --------------
Total distributions.................................................... (575,076) (1,417,943)
------------- --------------
Capital share transactions: (Note 4)
Increase from capital shares sold and reinvested......................... 26,507,554 41,029,628
Decrease from capital shares repurchased................................. (19,757,886) (3,300,488)
------------- --------------
Net increase from capital share transactions........................... 6,749,668 37,729,140
------------- --------------
Total increase in net assets............................................... 8,878,109 35,469,014
Net assets:
Beginning of year........................................................ 35,569,014 100,000
------------- --------------
End of year *............................................................ $44,447,123 $ 35,569,014
------------- --------------
------------- --------------
*Includes undistributed/accumulated net investment income (loss).......... $ 2,313 $ 28,710
------------- --------------
------------- --------------
<FN>
- --------------
+ Commencing January 1, 1998, the Fund began offering Class C shares.
</TABLE>
The accompanying notes are an integral part of the financial statements.
8
<PAGE>
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Contained below is per share operating performance data for a share outstanding,
total investment return, ratios and supplemental data. This information has been
derived from information provided in the financial statements and market price
data for the shares.
<TABLE>
<CAPTION>
CLASS A CLASS B
------------------------------------ ------------------------------------
SEPTEMBER 15, 1997 SEPTEMBER 15, 1997
(COMMENCEMENT (COMMENCEMENT
YEAR ENDED OF OPERATIONS) YEAR ENDED OF OPERATIONS)
DECEMBER 31, TO DECEMBER 31, 1997 DECEMBER 31, TO DECEMBER 31, 1997
1998 (d) (d) 1998 (d) (d)
------------- --------------------- ------------- ---------------------
<S> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period.... $ 10.63 $ 11.43 $ 10.62 $ 11.43
------------- ---------- ------------- ----------
Income from investment operations:
Net investment income (loss).......... (0.02) (0.01) (0.07) (0.02)
Net realized and unrealized gain
(loss) on investments................ 1.01 (0.31) 1.00 (0.32)
------------- ---------- ------------- ----------
Net increase (decrease) from
investment operations.............. 0.99 (0.32) 0.93 (0.34)
------------- ---------- ------------- ----------
Distributions to shareholders:
From net investment income............ (0.02) -- -- --
From net realized gain on
investments.......................... (0.14) -- (0.14) --
In excess of net investment income.... -- (0.48) -- (0.47)
------------- ---------- ------------- ----------
Total distributions................. (0.16) (0.48) (0.14) (0.47)
------------- ---------- ------------- ----------
Net asset value, end of period.......... $ 11.46 $ 10.63 $ 11.41 $ 10.62
------------- ---------- ------------- ----------
------------- ---------- ------------- ----------
Total investment return (c)............. 9.37% (2.68)% (b) 8.83% (2.83)% (b)
Ratios and supplemental data:
Net assets, end of period (in 000's).... $ 17,822 $ 15,145 $ 25,555 $ 19,184
Ratio of net investment income (loss) to
average net assets..................... (0.21)% (0.35)% (a) (0.71)% (0.85)% (a)
Ratio of operating expenses to average
net assets (Note 2).................... 0.50% 0.50% (a) 1.00% 1.00% (a)
Portfolio turnover rate++............... 28% 1% (a) 28% 1% (a)
</TABLE>
- ----------------
(a) Annualized
(b) Not annualized
(c) Total investment return does not include sales charges.
(d) These selected per share data were calculated based upon average
shares outstanding during the period.
+ Commencing January 1, 1998, the Fund began offering Class C shares.
++ Portfolio turnover rates are calculated on the basis of the Fund as a
whole without distinguishing between the classes of shares issued.
9
<PAGE>
FINANCIAL HIGHLIGHTS (cont'd)
- --------------------------------------------------------------------------------
Contained below is per share operating performance data for a share outstanding,
total investment return, ratios and supplemental data. This information has been
derived from information provided in the financial statements and market price
data for the shares.
<TABLE>
<CAPTION>
ADVISOR CLASS
------------------------------------
CLASS C+ SEPTEMBER 15, 1997
------------- (COMMENCEMENT
YEAR ENDED YEAR ENDED OF OPERATIONS)
DECEMBER 31, DECEMBER 31, TO DECEMBER 31, 1997
1998 (d) 1998 (d) (d)
------------- ------------- ---------------------
<S> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period.... $ 10.62 $ 10.64 $ 11.43
------------- ------------- ----------
Income from investment operations:
Net investment income (loss).......... (0.08) 0.03 0.01
Net realized and unrealized gain
(loss) on investments................ 1.00 1.00 (0.31)
------------- ------------- ----------
Net increase (decrease) from
investment operations.............. 0.92 1.03 (0.30)
------------- ------------- ----------
Distributions to shareholders:
From net investment income............ -- (0.08) --
From net realized gain on
investments.......................... (0.14) (0.14) --
In excess of net investment income.... -- -- (0.49)
------------- ------------- ----------
Total distributions................. (0.14) (0.22) (0.49)
------------- ------------- ----------
Net asset value, end of period.......... $ 11.40 $ 11.45 $ 10.64
------------- ------------- ----------
------------- ------------- ----------
Total investment return (c)............. 8.94% 9.80% (2.51)% (b)
Ratios and supplemental data:
Net assets, end of period (in 000's).... $ 249 $ 821 $ 1,241
Ratio of net investment income (loss) to
average net assets..................... (0.71)% 0.28% 0.15% (a)
Ratio of operating expenses to average
net assets (Note 2).................... 1.00% 0.00% 0.00% (a)
Portfolio turnover rate++............... 28% 28% 1% (a)
</TABLE>
- ----------------
(a) Annualized
(b) Not annualized
(c) Total investment return does not include sales charges.
(d) These selected per share data were calculated based upon average
shares outstanding during the period.
+ Commencing January 1, 1998, the Fund began offering Class C shares.
++ Portfolio turnover rates are calculated on the basis of the Fund as a
whole without distinguishing between the classes of shares issued.
10
<PAGE>
NOTES TO
FINANCIAL STATEMENTS
December 31, 1998
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
AIM Global Trends Fund (the "Fund"), formerly AIM New Dimension Fund and prior
to that GT Global New Dimension Fund is a diversified series of AIM Series Trust
(the "Trust"), formerly GT Global Series Trust. The Trust is organized as a
Delaware business trust and is registered under the Investment Company Act of
1940, as amended ("1940 Act"), as an open-end management investment company. The
Fund invests substantially all of its assets in Advisor Class shares of the AIM
theme mutual funds: AIM Global Consumer Products and Services Fund; AIM Global
Financial Services Fund; AIM Global Health Care Fund; AIM Global Infrastructure
Fund; AIM Global Resources Fund; and AIM Global Telecommunications Fund
(collectively, the "Underlying Theme Funds").
The Fund offers Class A, Class B, Class C, and Advisor Class shares, each of
which has equal rights as to assets and voting privileges. Class A, Class B, and
Class C, each have exclusive voting rights with respect to its distribution
plan. Investment income, realized and unrealized capital gains and losses of the
Fund are allocated on a pro rata basis to each Class based on the relative net
assets of each class to the total net assets of the Fund. Each class of shares
differs in its respective service and distribution expenses.
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of income and expenses during the reporting year. Actual
results could differ from those estimates. The following is a summary of
significant accounting policies in conformity with generally accepted accounting
principles consistently followed by the Fund in the preparation of the financial
statements.
(A) PORTFOLIO VALUATION
The Fund calculates the net asset value of, and completes orders, to purchase
exchange or repurchase Fund shares on each business day, with the exception of
those days on which the New York Stock Exchange is closed.
Investments of the Fund are valued based on the closing net asset value of
Advisor Class shares of each Underlying Theme Funds on the day of valuation, and
Short-term investments with a maturity of 60 days or less are valued at
amortized cost.
(B) REPURCHASE AGREEMENTS
With respect to repurchase agreements entered into by the Fund, it is the Fund's
policy to always receive, as collateral, United States government securities or
other high quality debt securities of which the value, including accrued
interest, is at least equal to the amount to be repaid to the Fund under each
agreement at its maturity.
(C) TAXES
It is the policy of the Fund to meet the requirements for qualification as a
"regulated investment company" under the Internal Revenue Code of 1986, as
amended ("Code"). It is also the intention of the Fund to make distributions
sufficient to avoid imposition of any excise tax under Section 4982 of the Code.
Therefore, no provision has been made for Federal taxes on income, capital
gains, or unrealized appreciation of securities held, and excise tax on income
and capital gains. The Fund currently has a capital loss carryforward of
$731,153 which expires in 2006.
(D) DISTRIBUTIONS TO SHAREHOLDERS
Distributions to shareholders are recorded by the Fund on the ex-date. Income
and capital gain distributions are determined in accordance with Federal income
tax regulations which may differ from generally accepted accounting principles.
These differences are primarily due to differing treatments of income and gains
on various investment securities held by the Fund and timing differences.
2. RELATED PARTIES
A I M Advisors, Inc. (the "Manager"), an indirectly wholly owned subsidiary of
AMVESCAP PLC, is the Fund's investment manager and administrator. As of the
close of business on May 29, 1998, Liechtenstein Global Trust AG ("LGT"), the
former indirect parent organization of Chancellor LGT Asset Management, Inc.
("Chancellor LGT"), consummated a purchase agreement with AMVESCAP PLC pursuant
to which AMVESCAP PLC acquired LGT's Asset Management Division, which included
Chancellor LGT and certain other affiliates. Also, as of the close of business
May 29, 1998, A I M Distributors, Inc. ("AIM Distributors"), a wholly-owned
subsidiary of the Manager, became the Fund's distributor, and the Trust was
reorganized from a Massachusetts business trust into a Delaware business trust.
Finally, as of the close of business on September 4, 1998, A I M Fund Services,
Inc. ("AFS"), an affiliate of the Manager and AIM Distributors, replaced GT
Global Investor Services, Inc. ("GT Services") as the transfer agent of the
Fund.
AIM Distributors serves as the Fund's distributor. For the period ended May 29,
1998, GT Global, Inc. ("GT Global"), an affiliate of the investment sub-advisor,
served as the Fund's distributor.
Class A shares are subject to initial sales charges imposed at the time of
purchase, in accordance with the schedule included in the Fund's current
prospectus. AIM Distributors collects the sales charges imposed on sales of
Class A shares, and reallows a portion of such charges to dealers through which
the sales are made. For the year ended December 31, 1998, AIM Distributors
retained $5,203 of such sales charges. Purchases of Class A shares exceeding
$1,000,000 may be subject to a contingent deferred sales charge ("CDSC") upon
redemption, in accordance with the Fund's current prospectus. There were no
CDSC's collected for Class A for the year ended December 31,1998. In addition,
AIM Distributors also makes ongoing shareholder servicing and trail commission
payments to dealers whose clients hold Class A shares.
Class B shares are not subject to initial sales charges. When Class B shares are
sold, AIM Distributors from its own resources pays
11
<PAGE>
commissions to dealers through which the sales are made. Certain redemptions of
Class B shares made within six years of purchase are subject to CDSCs, in
accordance with the Fund's current prospectus. During the year ended December
31, 1998, AIM Distributors collected such CDSCs in the amount of $77,258. In
addition, AIM Distributors makes ongoing shareholder servicing and trail
commission payments to dealers whose clients hold Class B shares.
Class C shares are not subject to initial sales charges. When Class C shares are
sold, AIM Distributors from its own resources pays commissions to dealers
through which the sales are made. Certain redemptions of Class C shares made
within one year of purchase are subject to CDSCs, in accordance with the Fund's
current prospectus. During the year ended December 31, 1998, AIM Distributors
collected such CDSCs in the amount of $208. In addition, AIM Distributors makes
ongoing shareholder servicing and trail commission payments to dealers whose
clients hold Class B shares.
For the period ended May 29, 1998, pursuant to the then effective separate
distribution plans adopted under the 1940 Act Rule 12b-1 by the Trust's Board of
Trustees with respect to the Fund's Class A shares ("Class A Plan"), Class B
shares ("Class B Plan") and Class C shares ("Class C"), the Fund reimbursed GT
Global for a portion of its shareholder servicing and distribution expenses.
Under the Class A Plan, the Fund was permitted to pay GT Global a service fee at
the annualized rate of up to 0.25% of the average daily net assets of the Fund's
Class A shares for GT Global's expenditures incurred in servicing and
maintaining shareholder accounts, and was permitted to pay GT Global a
distribution fee at the annualized rate of up to 0.50% of the average daily net
assets of the Fund's Class A shares, less any amounts paid by the Fund as the
aforementioned service fee, for GT Global's expenditures incurred in providing
services as distributor. All expenses for which GT Global was reimbursed under
the Class A Plan would have been incurred within one year of such reimbursement.
For the period ended May 29, 1998, pursuant to that Class B Plan and Class C
Plan, the Fund was permitted to pay GT Global a service fee at the annualized
rate of up to 0.25% of the average daily net assets of the Fund's Class B and
Class C shares for GT Global's expenditures incurred in servicing and
maintaining shareholder accounts, and was permitted to pay GT Global a
distribution fee at the annualized rate of up to 0.75% of the average daily net
assets of the Fund's Class B and Class C shares for GT Global's expenditures
incurred in providing services as distributor. Expenses incurred under the Class
B Plan and Class C Plan in excess of 1.00% annually were permitted to be carried
forward for reimbursement in subsequent years as long as that Plan continues in
effect.
Effective as of the close of business May 29, 1998, pursuant to Rule 12b-1 under
the 1940 Act, the Trust's Board of Trustees has adopted a Master Distribution
Plan applicable to the Fund's Class A and Class C shares (the "Class A and Class
C Plan") and Class B shares ("Class B Plan"), pursuant to which a Fund
compensates AIM Distributors for the purpose of financing any activity that is
intended to result in the sale of Class A, Class B, and Class C shares of the
Funds. Under the Class A and Class C Plan, a Fund compensates AIM Distributors
at the annualized rate of 0.50% of the average daily net assets of the Fund's
Class A shares and an aggregated amount of 1.00% of the average daily net assets
of Class C shares of the Fund. The Fund, pursuant to the Fund's Class B Plan,
compensates AIM Distributors at an annualized rate of 1.00% of the average daily
net assets of the Fund's Class B shares. Of these amounts, the Fund may pay a
service fee of 0.25% of the average daily net assets of the Class A or Class B
shares to selected dealers and financial institutions who furnish continuing
personal shareholder services to their customers who purchase and own the
appropriate class of shares of the Fund. Any amounts not paid as a service fee
under the Plans would constitute an asset-based sales charge.
The Manager is the pricing and accounting agent for the Fund. The Manager will
initially assume all costs of the Fund's operation, except for service and
distribution fees as described below and non-recurring and extraordinary
expenses. The Fund, as a shareholder in the Underlying Theme Funds, indirectly
will bear its proportionate share of any investment management fees and other
expenses paid by the Underlying Theme Funds. Subject to receipt of a pending
exemptive order from the Securities and Exchange Commission, the Trust, on
behalf of the Fund, will enter into a Special Servicing Agreement ("Agreement")
with the Underlying Theme Funds, the Manager and AFS, the transfer agent. If the
Board of Trustees of the Underlying Theme Funds makes certain findings, each
Underlying Theme Fund will pay certain nondistribution-related expenses of the
Fund to the extent such expenses are less than the estimated savings to the
Underlying Theme Funds from the operation of the Fund. The Manager and AIM
Distributors also voluntarily have undertaken to limit the Underlying Theme
Fund's expenses (exclusive of brokerage commissions, taxes, interest, and
extraordinary expenses) to the maximum annual rate of 1.50% of the average daily
net assets of the Underlying Theme Fund's Advisor Class shares.
Effective as of the close of business September 4, 1998, the Fund, pursuant to a
transfer agency and service agreement, has agreed to pay AFS an annualized fee
of $24.85 per shareholder accounts that are open during any monthly year (this
fee includes all out-of-pocket expenses), and an annualized fee of $0.70 per
shareholder account that is closed during any monthly year. Both fees shall be
billed by AFS monthly in arrears on a prorated basis of 1/12 of the annualized
fee for all such accounts.
For the period January 1, 1998 to September 4, 1998, GT Services, an affiliate
of the Manager and AIM Distributors, was the transfer agent of the Fund. For
performing shareholder servicing, reporting, and general transfer agent
services, GT Services received an annual maintenance fee of $17.50 per account,
a new account fee of $4.00 per account, a per transaction fee of $1.75 for all
transactions other than exchanges and a per exchange fee of $2.25. GT Services
was also reimbursed by the Fund for its out-of-pocket expenses for such items as
postage, forms, telephone charges, stationery and office supplies.
Subject to the receipt of a pending exemptive order from the Securities and
Exchange Commission, the Trust will pay each of its Trustees who is not an
employee, officer or director of the Manager or AIM Distributors $5,000 per year
plus $300 for each meeting of the board or any committee thereof attended by the
Trustee. Until such order is received, the Manager pays the trustees such fees.
12
<PAGE>
3. PURCHASES AND SALES
For the year ended December 31, 1998, purchases and sales, other than short-term
investments, of the Underlying Theme Funds by the Fund, are as follows:
<TABLE>
<CAPTION>
AIM GLOBAL PURCHASES SALES
- ------------------------------------------------ -------------- --------------
<S> <C> <C>
Consumer Products and Services Fund............. $ 5,701,863 $ 4,562,266
Telecommunications Fund......................... $ 1,828,214 1,193,655
Financial Services Fund......................... $ 3,832,422 2,779,932
Resources Fund.................................. $ 3,479,472 1,184,858
Health Care Fund................................ $ 2,374,943 1,310,095
Infrastructure Fund............................. $ 3,414,597 1,984,449
</TABLE>
4. CAPITAL SHARES
At December 31, 1998, there were an unlimited number of shares of beneficial
interest authorized, at no par value. Transactions in capital shares of the Fund
were as follows:
CAPITAL SHARE TRANSACTIONS
<TABLE>
<CAPTION>
SEPTEMBER 15, 1997
(COMMENCEMENT OF
YEAR ENDED OPERATIONS)
DECEMBER 31, 1998 TO DECEMBER 31, 1997
-------------------------- --------------------------
CLASS A SHARES AMOUNT SHARES AMOUNT
- ------------------------------------------------------------ ----------- ------------ ----------- ------------
<S> <C> <C> <C> <C>
Shares sold................................................. 952,323 $ 10,681,667 1,560,835 $ 17,768,084
Shares issued in connection with reinvestment of
distributions ............................................ 22,552 245,281 54,891 563,181
----------- ------------ ----------- ------------
974,875 10,926,948 1,615,726 18,331,265
Shares repurchased ......................................... (843,563) (9,206,317) (194,494) (2,190,806)
----------- ------------ ----------- ------------
Net increase ............................................... 131,312 $ 1,720,631 1,421,232 $ 16,140,459
----------- ------------ ----------- ------------
----------- ------------ ----------- ------------
<CAPTION>
CLASS B
- ------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares sold................................................. 1,302,574 $ 14,551,138 1,832,668 $ 20,681,472
Shares issued in connection with reinvestment of
distributions ............................................ 26,664 289,152 67,039 687,825
<CAPTION>
CLASS B
- ------------------------------------------------------------
<S> <C> <C> <C> <C>
----------- ------------ ----------- ------------
1,329,238 14,840,290 1,899,707 21,369,297
Shares repurchased ......................................... (894,609) (9,623,737) (96,841) (1,061,266)
----------- ------------ ----------- ------------
Net increase ............................................... 434,629 $ 5,216,553 1,802,866 $ 20,308,031
----------- ------------ ----------- ------------
----------- ------------ ----------- ------------
<CAPTION>
CLASS C
*
- ------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares sold................................................. 35,723 $ 397,022 -- $ --
Shares issued in connection with reinvestment of
distributions ............................................ 265 2,876 -- --
----------- ------------ ----------- ------------
35,988 399,898 -- --
Shares repurchased ......................................... (14,123) (146,933) -- --
----------- ------------ ----------- ------------
Net increase ............................................... 21,865 $ 252,965 -- $ --
----------- ------------ ----------- ------------
----------- ------------ ----------- ------------
<CAPTION>
ADVISOR
CLASS
- ------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares sold................................................. 29,946 $ 324,974 113,102 $ 1,276,664
Shares issued in connection with reinvestment of
distributions ............................................ 1,418 15,444 5,102 52,402
---------- ------------ ---------- ------------
31,364 340,418 118,204 1,329,066
Shares repurchased ......................................... (76,261) (780,899) (4,533) (48,416)
---------- ------------ ---------- ------------
Net increase (decrease) .................................... (44,897) $ (440,481) 113,671 $ 1,280,650
---------- ------------ ---------- ------------
---------- ------------ ---------- ------------
</TABLE>
- ----------------
* The Fund began offering Class C shares on January 1, 1998.
- ----------------
FEDERAL TAX INFORMATION (UNAUDITED):
Pursuant to Section 852 of the Internal Revenue Code, the Fund designates
$543,303 as a capital gain dividend for the fiscal year ended December 31, 1998.
13
<PAGE>
REPORT OF
INDEPENDENT ACCOUNTANTS
- --------------------------------------------------------------------------------
To the Shareholders of AIM Global Trends Fund (formerly AIM New Dimension Fund
and prior to that GT Global New Dimension Fund) and Board of Trustees of AIM
Series Trust (formerly GT Global Series Trust):
In our opinion, the accompanying statement of assets and liabilities, including
the portfolio 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 the AIM Global Trends Fund at
December 31, 1998, and the results of its operations, the changes in its net
assets and the financial highlights for the periods indicated, in conformity
with generally accepted accounting principles. 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 generally accepted
auditing standards which 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 December 31, 1998 by
correspondence with the custodian and brokers, provide a reasonable basis for
the opinion expressed above.
PRICEWATERHOUSECOOPERS LLP
BOSTON, MASSACHUSETTS
FEBRUARY 19, 1999
14
<PAGE>
PROXY RESULTS (UNAUDITED)
A Special Meeting of Shareholders of the G.T. Global Series Trust, now known as
AIM Series Trust (the "Trust"), was held on May 20, 1998. The meeting was held
for the following purposes:
(1) To elect Trustees as follows: C. Derek Anderson, Frank S. Bayley, William J.
Guilfoyle, Arthur C. Patterson, Ruth H. Quigley.
(2) To approve a new investment management and administration contract and
sub-advisory and sub-administration contract with respect to each series of
the Trust (each, a "Fund," and collectively, the "Funds").
(3) To approve replacement Rule 12b-1 plans of distribution with respect to
Class A and B Shares of each Fund and Class C Shares of Series Trust.
(4) To approve changes to the fundamental investment restrictions of the Fund.
(5) To approve an agreement and plan of conversion and termination for the
Trust.
(6) To ratify the selection of Coopers & Lybrand L.L.P., now known as
PricewaterhouseCoopers LLP, as the Trust's independent public accountants.
The results of the proxy solicitation on the above matters were as follows:
<TABLE>
<CAPTION>
VOTES WITHHELD/
TRUSTEE/MATTER VOTES FOR AGAINST ABSTENTIONS
------------------------------------------------------------ ------------ --------- ----------
<S> <C> <C> <C> <C>
(1) C. Derek Anderson........................................... 2,244,409 N/A 100,405
Frank S. Bayley............................................. 2,244,409 N/A 100,405
William J. Guilfoyle........................................ 2,244,409 N/A 100,405
Arthur C. Patterson......................................... 2,244,409 N/A 100,405
Ruth H. Quigley............................................. 2,244,409 N/A 100,405
(2)(a) Approval of investment management and administration
contract................................................... 1,724,246 18,776 601,792 *
(2)(b) Approval of sub-advisory and sub-administration contract.... 1,709,968 24,523 610,323 *
(3) Approval of replacement Rule 12b-1 plans of distribution
CLASS A..................................................... 925,725 16,983 31,595
CLASS B..................................................... 1,163,470 8,037 69,990
CLASS C..................................................... 8,911 0 191
(4)(a) Modification of Fundamental Restriction on Portfolio
Diversification............................................ 1,700,708 30,649 613,457 *
(4)(b) Modification of Fundamental Restriction on Issuing Senior
Securities and Borrowing Money............................. 1,700,740 30,617 613,457 *
(5) Approval of an agreement and plan of conversion and
termination with respect to the Trust...................... 1,710,876 20,582 613,356 *
(6) Ratification of the selection of Coopers and Lybrand L.L.P.,
now known as
PricewaterhouseCoopers LLP, as the Trust's Independent
Public Accountants......................................... 2,258,784 7,421 78,608
</TABLE>
- ------------------------
* Includes Broker Non-Votes
15
<PAGE>
BOARD OF TRUSTEES
C. Derek Anderson
President, Plantagenet Capital
Management, LLC (an investment
partnership); Chief Executive Officer,
Plantagenet Holdings, Ltd.
(an investment banking firm)
Frank S. Bayley
Partner, law firm of
Baker & McKenzie
Robert H. Graham
President and Chief Executive Officer,
A I M Management Group Inc.
Arthur C. Patterson
Managing Partner, Accel Partners
(a venture capital firm)
Ruth H. Quigley
Private Investor
OFFICERS
Robert H. Graham
Chairman and President
Dana R. Sutton
Vice President & Assistant Treasurer
Samuel D. Sirko
Vice President & Secretary
Kenneth W. Chancey
Vice President &
Principal Accounting Officer
John J. Arthur
Vice President
Melville B. Cox
Vice President
Gary T. Crum
Vice President
Carol F. Relihan
Vice President
Nancy L. Martin
Assistant Secretary
Ofelia M. Mayo
Assistant Secretary
Kathleen J. Pflueger
Assistant Secretary
Pamela Ruddock
Assistant Treasurer
Paul Wozniak
Assistant Treasurer
OFFICE OF THE FUND
11 Greenway Plaza
Suite 100
Houston, TX 77046
INVESTMENT MANAGER
A I M Advisors, Inc.
11 Greenway Plaza
Suite 100
Houston, TX 77046
TRANSFER AGENT
A I M Fund Services, Inc.
P.O. Box 4739
Houston, TX 77210-4739
CUSTODIAN
State Street Bank and Trust Company
225 Franklin Street
Boston, MA 02110
COUNSEL TO THE FUND
Kirkpatrick & Lockhart, LLP
1800 Massachusetts Avenue, N.W.
Washington, D.C. 20036-1800
COUNSEL TO THE TRUSTEES
Paul, Hastings, Janofsky & Walker LLP
Twenty Third Floor
555 South Flower Street
Los Angeles, CA 90071
DISTRIBUTOR
A I M Distributors, Inc.
11 Greenway Plaza
Suite 100
Houston, TX 77046
AUDITORS
PricewaterhouseCoopers LLP
One Post Office Square
Boston, MA 02109
16
<PAGE>
ANNUAL REPORT / FOR CONSIDERATION
HOW AIM MAKES INVESTING EASY FOR YOU
- -- LOW INITIAL INVESTMENT. You can get your investment program started
for as little as $500. Subsequent investments can be made for only $50.
- -- AUTOMATIC REINVESTMENT OF DIVIDENDS AND/OR CAPITAL GAINS.
Distributions may be received in cash or reinvested in the Fund free
of charge. Over time, the power of compounding can significantly
increase the value of your assets.
- -- AUTOMATIC INVESTMENT PLAN. You may build your investment by regularly
purchasing additional shares. Pre-authorized checks for $50 or more
can be drafted monthly from your personal checking account.
- -- EASY ACCESS TO YOUR MONEY. Your shares may be redeemed at net asset
value any day the New York Stock Exchange is open. The price of shares
sold may be more or less than their original cost, depending on market
conditions.
- -- SYSTEMATIC WITHDRAWAL PLAN. You may elect to receive checks of at
least $50 monthly or quarterly through a systematic withdrawal plan.
- -- EXCHANGE PRIVILEGE. As your goals change, you may exchange all or part
of your assets for those of other funds within the same share class of
The AIM Family of Funds-Registered Trademark-. The exchange privilege
may be modified or discontinued for any of the AIM funds. Certain
restrictions apply.
- -- RETIREMENT PLANS. You may purchase shares of an AIM fund for your
Individual Retirement Account (IRA), Roth IRA, or any other type of
retirement plan, and earn tax-deferred dollars for your retirement.
- -- TOLL-FREE ACCESS. Current shareholders can call our AIM Investor Line
at 800-246-5463 for 24-hour-a-day account information. Or, of course,
you may contact your financial consultant for assistance.
- -- WWW.AIMFUNDS.COM. As a current shareholder, you can check account
balances 24 hours a day over the Internet. State-of-the-art encryption
lets you send us questions that include confidential information
without the fear of eavesdropping, tampering, or forgery.
CURRENT SHAREHOLDERS
CAN CALL OUR
AIM INVESTOR LINE AT
800-246-5463
FOR 24-HOUR-A-DAY
ACCOUNT INFORMATION.
<PAGE>
THE AIM FAMILY OF FUNDS-REGISTERED TRADEMARK-
GROWTH FUNDS
AIM Aggressive Growth Fund(1)
AIM Blue Chip Fund
AIM Capital Development Fund
AIM Constellation Fund
AIM Mid Cap Equity Fund(2, A)
AIM Select Growth Fund(3)
AIM Small Cap Growth Fund(2, B)
AIM Small Cap Opportunities Fund
AIM Value Fund
AIM Weingarten Fund
GROWTH & INCOME FUNDS
AIM Advisor Flex Fund
AIM Advisor Large Cap Value Fund
AIM Advisor MultiFlex Fund
AIM Advisor Real Estate Fund
AIM Balanced Fund
AIM Basic Value Fund(2, C)
AIM Charter Fund
INCOME FUNDS
AIM Floating Rate Fund(2)
AIM High Yield Fund
AIM High Yield Fund II
AIM Income Fund
AIM Intermediate Government Fund
AIM Limited Maturity Treasury Fund
TAX-FREE INCOME FUNDS
AIM High Income Municipal Fund
AIM Municipal Bond Fund
AIM Tax-Exempt Bond Fund of Connecticut
AIM Tax-Free Intermediate Fund
MONEY MARKET FUNDS
AIM Money Market Fund
AIM Tax-Exempt Cash Fund
INTERNATIONAL GROWTH FUNDS
AIM Advisor International Value Fund
AIM Asian Growth Fund
AIM Developing Markets Fund(2)
AIM Europe Growth Fund(2)
AIM European Development Fund
AIM International Equity Fund
AIM Japan Growth Fund(2)
AIM Latin American Growth Fund(2)
AIM New Pacific Growth Fund(2)
GLOBAL GROWTH FUNDS
AIM Global Aggressive Growth Fund
AIM Global Growth Fund
GLOBAL GROWTH & INCOME FUNDS
AIM Global Growth & Income Fund(2)
AIM Global Utilities Fund
GLOBAL INCOME FUNDS
AIM Emerging Markets Debt Fund(2, D)
AIM Global Government Income Fund(2)
AIM Global Income Fund
AIM Strategic Income Fund(2)
THEME FUNDS
AIM Global Consumer Products and Services Fund(2)
AIM Global Financial Services Fund(2)
AIM Global Health Care Fund(2)
AIM Global Infrastructure Fund(2)
AIM Global Resources Fund(2)
AIM Global Telecommunications Fund(2)
AIM Global Trends Fund(2, E)
A I M MANAGEMENT GROUP INC. HAS PROVIDED LEADERSHIP IN THE MUTUAL FUND
INDUSTRY SINCE 1976 AND MANAGED APPROXIMATELY $109 BILLION IN ASSETS FOR MORE
THAN 6.2 MILLION SHAREHOLDERS, INCLUDING INDIVIDUAL INVESTORS, CORPORATE
CLIENTS, AND FINANCIAL INSTITUTIONS, AS OF DECEMBER 31, 1998.
THE AIM FAMILY OF FUNDS-REGISTERED TRADEMARK- IS DISTRIBUTED NATIONWIDE,
AND AIM TODAY IS THE 10TH-LARGEST MUTUAL FUND COMPLEX IN THE U.S. IN ASSETS
UNDER MANAGEMENT, ACCORDING TO STRATEGIC INSIGHT, AN INDEPENDENT MUTUAL FUND
MONITOR.
(1)AIM Aggressive Growth Fund reopened to new investors November 16, 1998.
(2)Effective May 29, 1998, A I M Advisors, Inc. became advisor to the former
GT Global Funds. (3)On May 1, 1998, AIM Growth Fund was renamed AIM Select
Growth Fund. (A)On September 8, 1998, AIM Mid Cap Growth Fund was renamed AIM
Mid Cap Equity Fund. (B)On September 8, 1998, AIM Small Cap Equity Fund was
renamed AIM Small Cap Growth Fund. (C)On September 8, 1998, AIM America Value
Fund was renamed AIM Basic Value Fund. (D)On September 8, 1998, AIM Global
High Income Fund was renamed AIM Emerging Markets Debt Fund. (E)On September
8, 1998, AIM New Dimension Fund was renamed AIM Global Trends Fund. For more
complete information about any AIM Fund(s), including sales charges and
expenses, ask your financial consultant or securities dealer for a free
prospectus(es). Please read the prospectus(es) carefully before you invest or
send money.
GTR-AR-1
