<PAGE> 1
SEMIANNUAL REPORT / JUNE 30 2000
AIM GLOBAL TRENDS FUND
[COVER IMAGE]
[AIM LOGO APPEARS HERE]
--Registered Trademark--
<PAGE> 2
[ COVER IMAGE ]
-------------------------------------
VARIIERTE RECHTCKE BY WASSILY KANDINSKY CONSIDERED
THE FOUNDER OF ABSTRACT ART, WASSILY KANDINSKY
ACHIEVES A GEOMETRIC RHYTHM IN THIS PAINTING,
TRANSLATED FROM GERMAN AS "VARIED RECTANGLES." ITS
LINES AND FORMS EVOKE 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.
ABOUT FUND PERFORMANCE AND PORTFOLIO DATA THROUGHOUT THIS REPORT:
o AIM Global Trends Fund's performance figures are historical, and they
reflect the reinvestment of distributions and changes in net asset value.
o When sales charges are included in performance figures, Class A share
performance reflects the maximum 4.75% sales charge, and 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 and Class C shares will differ from
that of its Class A shares due to different sales-charge structure and class
expenses.
o 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.
o The fund's investment return and principal value will fluctuate, so an
investor's shares, when redeemed, may be worth more or less than their
original cost.
ABOUT INDEXES AND OTHER PERFORMANCE BENCHMARKS CITED IN THIS REPORT:
o The unmanaged MSCI World Index is a group of global securities tracked by
Morgan Stanley Capital International.
o The unmanaged National Association of Securities Dealers Automated Quotation
System Composite Index (the Nasdaq) is a market-value-weighted index
comprising all domestic and non-U.S.-based common stocks listed on the
Nasdaq system. It includes more than 5,000 companies, and it is often
considered representative of the small and medium-sized company stock
universe. While it includes many small and mid-sized company stocks,
large-capitalization technology companies tend to dominate the index.
o An investment cannot be made in an index. Unless otherwise indicated, index
results include reinvested dividends, and they 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 SOME 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.
<PAGE> 3
SEMIANNUAL REPORT / CHAIRMAN'S LETTER
Dear Fellow Shareholder:
[PHOTO OF When we started AIM in 1976, we had only a table, two chairs
Charles T. and a telephone. At the time, Bob Graham, Gary Crum and I
Bauer, had the idea of creating a mutual fund company that put
Chairman of people first. Our slogan, "people are the product," means
the Board of that people--our employees and our investors--are our
THE FUND company.
APPEARS HERE] Almost a quarter-century later, we've grown to more than
eight million investors, $176 billion in assets under
[PHOTO OF management and 55 retail funds. Over that time, the industry
Robert H. as a whole has grown from $51 billion in assets to more than
Graham $7 trillion today. I never dreamed we would see such
APPEARS HERE] phenomenal growth. You are the main reason for our success,
and I want you to know how much I appreciate your loyalty
and trust over the past 24 years.
Usually in this letter I review market activity during
the period covered by the report. This time, I'd just like
to say thank you. I am retiring as chairman of the AIM Funds effective September
30, and as chairman of AIM effective December 31, 2000. Bob Graham, whose
picture appears under mine, will succeed me as AIM's chairman and chairman of
the AIM Funds. Gary Crum will remain president of A I M Capital Management,
Inc., leading our investment division. I am enormously proud to leave AIM in
such capable hands.
I'm also very proud of our team of employees, now more than 2,500 strong.
Because of their collective commitment to excellence and ethical business
practices, AIM has earned the trust of investors and financial advisors alike.
And every employee, from portfolio managers to client services representatives,
is dedicated to serving our shareholders.
Rest assured that nothing at AIM will change because of my retirement. You
can still depend on this company to manage your money responsibly and provide
you with top-notch service. As chairman of AIM and chairman of the AIM Funds,
Bob is committed to preserving the things that have made AIM great in the past
and positioning it to succeed in the future. And Gary is dedicated to
maintaining the quality and long-term performance you've come to expect from
AIM.
In the pages that follow, the managers of your fund comment on recent market
activity, how they have managed your fund over the past six months and their
outlook for the coming months. We trust you will find their comments helpful.
If you have any questions or comments, please contact us through our Web
site, www.aimfunds.com, or call our Client Services department at 800-959-4246
during normal business hours. Information about your account is available at our
Web site and on our automated AIM Investor Line, 800-246-5463.
Thank you again for the support and trust you've shown us. I feel privileged
to have helped you with your financial goals, and I wish you success in all your
endeavors.
Sincerely,
/s/ CHARLES T. BAUER
Charles T. Bauer
Chairman, A I M Advisors, Inc.
AIM GLOBAL TRENDS FUND
<PAGE> 4
SEMIANNUAL REPORT / MANAGERS' OVERVIEW
MIXED MARKETS PRESENT A CHALLENGE FOR FUND
HOW DID AIM GLOBAL TRENDS FUND PERFORM OVER THE SIX-MONTH REPORTING PERIOD?
Markets worldwide experienced many ups and downs during the first half of 2000,
and the fund felt the effects of this uncertainty. For the six months ended June
30, 2000, the fund posted total returns of -4.63% for Class A shares and -4.87%
for Class B and Class C shares. (These returns are at net asset value, which
does not include sales charges.) Comparatively, the MSCI World Index had a
return of -2.56% for the reporting period. Despite short-term challenges, the
fund continues to provide attractive long-term returns, as shown in the
performance table below.
WHAT WERE THE TRENDS IN WORLD MARKETS DURING THE REPORTING PERIOD?
World markets reached record highs near the end of 1999 in a rally dominated by
technology, media and telecommunications stocks, commonly dubbed TMTs. This
rally lasted for the first half of the reporting period, ending in March with a
sharp sell-off in TMT stocks. As in the United States, investors abroad became
worried about the sky-high valuations of technology stocks. In mid-April, the
tech-heavy Nasdaq plunged, and European, Asian and Latin American markets
followed suit.
Much of the rest of the period was marked by intense day-to-day volatility
even though many companies' earnings reports met or exceeded expectations. Those
companies that missed earnings were severely punished by investors, a rather
ironic twist as just months before investors had seemed willing to take a chance
on dot-coms with little or no earnings.
WHAT HAPPENED IN U.S. MARKETS?
The watchwords in U.S. markets for the first six months of 2000 were volatility
and inflation. While the major volatility was largely confined to the tech
sector, markets across the board bore the brunt of investors' persistent
inflation fears. The Federal Reserve Board (the Fed) raised interest rates three
times during the reporting period, hikes fueled by mixed signals from leading
economic indicators. Investors and analysts alike wondered how much farther this
tightening cycle--in progress since June 1999--would go before the Fed was
satisfied that inflation remained under control. Many investors chose to wait
things out, evidenced in the general decline of trading volumes late in the
reporting period.
HAVE THE FUND'S COUNTRY ALLOCATIONS CHANGED MUCH SINCE YOUR LAST REPORT?
In managing the fund, we strive to select companies in market sectors worldwide
with strong earnings momentum rather than focusing on geographical regions.
Based on this criterion, our largest country allocation is the United States,
where growth opportunities abound. Companies in Western Europe dominate our
overseas weighting as they continue to seek ways to grow and boost profits
through consolidation and innovation. Europe's economic backdrop continues to
look strong.
We have reduced the fund's weighting in Japan since our last report. While
it seemed last year that Japan was on the verge of a major economic comeback,
such a comeback has not yet materialized, and the country remains in recession.
Because of this, aside from some select technology companies, it remains
difficult to find investment opportunities in Japan that meet our earnings
discipline.
WHY HAS THE PORTFOLIO CHANGED SO MUCH IN THE LAST SIX MONTHS?
The fund's sector weightings have shifted significantly over the reporting
period. Overweight positions in technology and consumer-cyclical stocks (such as
retail companies) contributed to the fund's underperformance compared to its
benchmark thus far this year. Volatility in the U.S. tech sector seeped into
markets abroad, leading to lackluster performance on the part of many tech
stocks regardless of their country of origin. Consumer-cyclical stocks have been
shunned by many investors in favor of perceived higher-growth companies. We
pared our weightings in both sectors to take advantage of better opportunities
elsewhere.
The fund's energy weighting has increased from 2.4% to about 19%. This
increase has been concentrated in industries that benefit most from rising oil
prices: drilling and equipment, and exploration and production. Oil prices
continue to hover around $30 per barrel, and until
-------------------------------------
MARKETS WORLDWIDE EXPERIENCED
MANY UPS AND DOWNS DURING THE
FIRST HALF OF 2000 . . .
-------------------------------------
FUND PERFORMANCE
AVERAGE ANNUAL TOTAL RETURNS
As of 6/30/00, including sales charges
================================================================================
CLASS A SHARES
Inception (9/15/97) 14.79%
1 year 21.21*
*27.25% excluding sales charges
CLASS B SHARES
Inception (9/15/97) 15.39%
1 year 21.62*
*26.62% excluding CDSC
CLASS C SHARES
Inception (1/2/98) 19.81%
1 Year 25.74*
*26.74% excluding CDSC
================================================================================
Past performance cannot guarantee comparable future results. MARKET VOLATILITY
CAN SIGNIFICANTLY IMPACT SHORT-TERM PERFORMANCE. RESULTS OF AN INVESTMENT TODAY
MAY DIFFER SUBSTANTIALLY FROM THE HISTORICAL PERFORMANCE SHOWN.
See important fund and index disclosures inside front cover.
AIM GLOBAL TRENDS FUND
2
<PAGE> 5
SEMIANNUAL REPORT / MANAGERS' OVERVIEW
OPEC substantially increases production, oil prices may remain at current
levels--a boon for companies that profit from finding it and extracting it.
We also increased our weighting in health-care stocks from just under 6% to
about 20%. Health-care stocks, particularly drug companies, benefited from the
excitement surrounding the mapping of the human genome. A rough draft of the
genetic makeup of the human body has been completed, which may lead to new
blockbuster drugs for the treatment of disease.
WHAT STOCKS DID YOU FAVOR?
Our largest energy holding is ENSCO International, a leading offshore-drilling
contractor. International operations in Latin America, Europe and the
Asia-Pacific region account for 45% of the company's revenue; most of its U.S.
drilling business is in the Gulf of Mexico. To capture its share of the
expanding deepwater drilling market, ENSCO is building a semi-submersible outfit
that can drill to 8,000 feet.
Pharmaceutical giant Pfizer, the fund's top holding, recently merged with
Warner-Lambert to become one of the world's largest and fastest-growing drug
companies. The acquisition allows Pfizer to add Lipitor, a leading
cholesterol-lowering drug, to its stable of successful medications, which
includes Celebrex (for arthritis), Norvasc (for heart disease) and Zoloft (an
antidepressant).
Other top fund holdings include ADC Telecommunications and Bestfoods. ADC
makes systems that increase the rate at which voice, data and video signals are
transmitted through cable television, the Internet and over the telephone.
Bestfoods is a diversified foods company with such well-known brands as
Hellmann's, Mazola, Boboli and Skippy. Roughly 60% of the company's sales come
from outside North
America. European consumer-products giant Unilever is in the process of
acquiring Bestfoods to become a top food firm worldwide.
WHAT IS YOUR NEAR-TERM OUTLOOK?
Although U.S. markets have experienced some nerve-wracking volatility of late,
solid economic fundamentals still exist. The fact that the Fed did not raise
interest rates at its recent June meeting may indicate that its tightening cycle
is winding down. However, uncertainty over the Fed's future actions and other
factors could perpetuate the volatility that has characterized markets in recent
months.
On the international front, increased corporate restructuring, mergers and
deregulation are making for a more competitive environment. Coupled with
generally stable interest rates, good growth prospects and attractive stock
valuations, global investors should continue to find attractive investment
opportunities.
PORTFOLIO COMPOSITION
As of 6/30/00, based on total net assets
<TABLE>
<CAPTION>
===================================================================================================================================
TOP 10 EQUITY HOLDINGS TOP 10 COUNTRIES TOP 10 INDUSTRIES
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1. Pfizer Inc. 5.71% 1. United States 59.21% 1. Oil & Gas (Drilling & Equipment) 11.48%
2. IVAX Corp. 2.50 2. Canada 7.75% 2. Health Care (Drugs-Major 5.95
Pharmaceuticals)
3. UnitedHealth Group Inc. 2.47 3. France 4.23% 3. Electronics (Semiconductors) 5.23
4. ADC Telecommunications, Inc. 2.45 4. United Kingdom 3.54% 4. Health Care (Diversified) 4.73
5. Novartis A.G. (Switzerland) 2.22 5. Switzerland 3.31% 5. Communications Equipment 4.28
6. Furukawa Electric Co., Ltd. 2.03 6. Japan 2.85% 6. Oil & Gas (Exploration 4.11
(The) (Japan) & Production)
7. ENSCO International Inc. 2.02 7. Spain 1.98% 7. Health Care (Managed Care) 3.39
8. Bestfoods 1.92 8. Netherlands 1.84% 8. Foods 3.01
9. Nokia Oyj (Finland) 1.84 9. Finland 1.84% 9. Electrical Equipment 2.78
10. Potash Corp. of Saskatchewan Inc. 1.83 10. Singapore 1.47% 10. Chemicals (Specialty) 2.68
(Canada)
The fund's portfolio composition is subject to change, and there is no assurance
that the fund will continue to hold any particular security.
===================================================================================================================================
</TABLE>
See important fund and index disclosures inside front cover.
AIM GLOBAL TRENDS FUND
3
<PAGE> 6
SEMIANNUAL REPORT / FOR CONSIDERATION
CHASING PERFORMANCE MAY HURT MORE THAN IT HELPS
In the wake of some of last year's eye-popping mutual fund returns of more than
100%, it may be hard to look at your own returns and not feel disappointed.
According to Lipper, Inc.(1), the average large-cap core mutual fund finished
1999 up 22.35%--a return that would be considered terrific in most other
years--while the average science and technology fund had an astounding return of
134.77% for the year. Industry trends point to the fact that some investors have
looked at such performance and said, "My investments haven't had that kind of
return. I need to change my portfolio." What's an investor to do?
LOOK AT THE BIG PICTURE
It's very tempting to look only at returns when you invest in a mutual fund. But
there are other factors to consider:
o HOW WELL DOES THE FUND MATCH MY FINANCIAL GOALS?
Different kinds of mutual funds are appropriate for different people at
different stages. Are you a young adult early in your work life, or are you
approaching retirement? Are you investing to buy a house, car or other large
item soon, or are you investing for your later years?
If your investment plan has a rather long time horizon, you may be able to
invest more aggressively because you could have time to recoup should you
experience losses. If your needs are more immediate, you should assess how
aggressive you can afford to be--you may need to be more conservative than you
thought to meet your goal.
o HOW WELL DOES THE FUND MATCH MY TOLERANCE FOR RISK?
Many of the mutual funds that had such high-flying returns for 1999 are pretty
aggressive, investing in smaller, less-established companies, some of which have
not even realized a profit. So while these mutual funds have the potential to
make your money grow, they may also entail more risk than you may be prepared to
take.
Of course, investing in any mutual fund brings with it a certain amount of
risk, but this risk can vary widely depending on the types of holdings in which
a fund invests. It's important that you take a hard look at your risk tolerance
before investing in any fund, particularly if you are ratcheting up to a more
aggressive fund.
o HOW WELL DOES THE FUND FIT INTO MY PORTFOLIO?
When a market sector or mutual fund is doing well, you may be tempted to
overload your portfolio with the "winner of the moment." It seems to make
sense--you're making money with that investment so you should allocate more
money to it, right?
Be careful. A narrowly invested portfolio could be especially vulnerable to
market volatility. Spreading your investment over several types of funds or
investing in one diversified fund can help you spread out your risk--the more
diversified your portfolio, the less overlap it should have. Less overlap can
mean less risk.
PAST PERFORMANCE IS NO GUARANTEE
Last year's phenomenal returns were the result of a number of unique factors--
the strong U.S. economy, the proliferation of new technology companies and
record amounts of cash being poured into the stock market, to name a few. Even
so, it may seem that everyone came out a winner in 1999.
In reality, just a few large companies accounted for many of the markets'
records in 1999. More than half the stocks in the S&P 500(2) declined during the
year. The technology sector was clearly dominant--the tech component of the S&P
500 finished 1999 with a return of 75.11%, while the capital goods component of
the index, which came in second for the year, had a return of 28.76%.(3) So if
you didn't invest in technology in 1999, you probably didn't enjoy the same
performance as people who did.
As we've seen thus far in 2000, financial markets can be quite fickle,
revolving around investors' perceptions as much as hard facts. Because of the
ever-changing nature of the market environment, many high-performing mutual
funds don't repeat their gains from year to year. This doesn't necessarily
mean a fund had a "bad" year or that fund managers chose
================================================================================
SEC SPEAKS OUT
In the wake of 1999's extraordinary fund performances, the Securities and
Exchange Commission (SEC), which regulates the mutual fund industry, says that
investors should temper their expectations and not make investment decisions
based only on past performance. The SEC also suggests that investors consider
the following factors when looking at a mutual fund:
Age
Risk
Size
Volatility
Management
Expenses
Tax Efficiency
Source: The Wall Street Journal, 1/25/00
================================================================================
AIM GLOBAL TRENDS FUND
4
<PAGE> 7
SEMIANNUAL REPORT / FOR CONSIDERATION
holdings poorly. It may just mean that the environment for a particular fund was
not as ideal as it had been in the past. This can be true for any mutual fund.
KEEP EXPECTATIONS REALISTIC
Along with recognizing how quickly the market environment can change, it's
important to keep your expectations realistic. Of course you would like your
investments to do well every year, but chances are they won't. It's the nature
of the beast. So what you should be shooting for is good performance over the
long term. While your investment may not have a stellar year every year, over
time its average returns may prove to be just what you hoped for.
Sometimes it's hard to be patient when it seems like everyone else's
investments are doing better than yours. You may be tempted to chase winning
performance by trying to time the market, switching in and out of funds as
markets or sectors go in and out of favor. But this strategy can greatly
increase your risk and it rarely works--you may end up with significantly lower
returns than if you'd just stayed put. (There can also be adverse tax
consequences.)
ASSET ALLOCATION: THE OLD STANDBY
The truth is, no one knows for sure what is going to perform well in the market,
which is why mutual fund investors should diversify using asset
allocation--spreading investments over several fund types (e.g., core, growth,
international and income). Unfortunately, some investors seem less interested in
asset allocation these days because they want to chase performance instead. And
when the market is roaring ahead, who can blame them?
But as Isaac Newton proved, what goes up must come down. A diversified
portfolio can offer some protection in a market downturn because when your
assets are spread over several different types of funds, chances are at least
one of them is keeping its head above water. And while a diversified fund
portfolio probably won't perform as well as the flashiest stock fund, it
probably won't do as badly as the worst of them either.
--------------------------------------------------------------------------------
Your financial advisor can help you determine what kinds of mutual funds best
fit your investment goals and risk tolerance. Talk to your financial advisor for
more information.
(1) Lipper, Inc. is an independent mutual fund performance monitor.
(2) The unmanaged Standard & Poor's Composite Index of 500 Stocks (the S&P 500)
is generally considered representative of the stock market.
(3) Source: Bloomberg.
--------------------------------------------------------------------------------
DOLLAR-COST AVERAGING CAN LOWER THE COST OF INVESTING
One useful way to buy shares of a mutual fund is through dollar-cost averaging.
In such a plan, you invest a certain amount at regular intervals--say $200 per
month--which allows you to buy more shares when mutual fund prices go down and
fewer shares when prices go up. This gives you the benefit of your average cost
per share actually being less than the average price per share.
Please keep in mind that this example is hypothetical and is not indicative of
the performance of any investment, IRA or AIM fund. Dollar-cost averaging does
not assure a profit and does not protect against loss in declining markets.
Since dollar-cost averaging involves continuous investing regardless of
fluctuating securities prices, investors should consider their ability to
continue purchases over an extended period of time.
For more complete information about any AIM fund(s), including sales charges and
expenses, ask your financial advisor or securities dealer for a free
prospectus(es). Please read the prospectus(es) carefully before you invest or
send money.
================================================================================
MONTH AMOUNT INVESTED SHARE PRICE SHARES PURCHASED
--------------------------------------------------------------------------------
JANUARY $ 200 $ 24 8.333
FEBRUARY 200 20 10.000
MARCH 200 14 14.286
APRIL 200 18 11.111
MAY 200 22 9.091
JUNE 200 24 8.333
6-MONTH TOTAL $1200 $122 61.154
================================================================================
Average price per share: $122 divided by 6 = $20.33
Average cost per share: $1200 divided by 61.154 = $19.62
AIM GLOBAL TRENDS FUND
5
<PAGE> 8
SCHEDULE OF INVESTMENTS
June 30, 2000
(Unaudited)
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
DOMESTIC COMMON STOCKS-59.21%
BEVERAGES (NON-ALCOHOLIC)-1.08%
PepsiCo, Inc. 12,000 $ 533,250
--------------------------------------------------------------
BIOTECHNOLOGY-1.71%
Genzyme Corp.(a) 14,200 844,012
--------------------------------------------------------------
BROADCASTING (TELEVISION, RADIO &
CABLE)-1.05%
AT&T Corp.-Liberty Media Group-Class
A(a) 21,400 518,950
--------------------------------------------------------------
COMMUNICATIONS EQUIPMENT-2.45%
ADC Telecommunications, Inc.(a) 14,400 1,207,800
--------------------------------------------------------------
COMPUTERS (SOFTWARE & SERVICES)-1.24%
Adobe Systems Inc. 4,700 611,000
--------------------------------------------------------------
ELECTRIC COMPANIES-0.30%
NRG Energy, Inc.(a) 8,100 147,825
--------------------------------------------------------------
ELECTRICAL EQUIPMENT-2.78%
Amphenol Corp.-Class A(a) 4,800 317,700
--------------------------------------------------------------
AVX Corp. 15,600 357,825
--------------------------------------------------------------
KEMET Corp.(a) 27,800 696,737
--------------------------------------------------------------
1,372,262
--------------------------------------------------------------
ELECTRONICS (COMPONENT
DISTRIBUTORS)-0.91%
Arrow Electronics, Inc.(a) 11,200 347,200
--------------------------------------------------------------
Avnet, Inc. 1,700 100,725
--------------------------------------------------------------
447,925
--------------------------------------------------------------
ELECTRONICS (INSTRUMENTATION)-1.05%
Varian Inc.(a) 11,300 521,212
--------------------------------------------------------------
ELECTRONICS (SEMICONDUCTORS)-4.48%
Altera Corp.(a) 6,000 611,625
--------------------------------------------------------------
Integrated Device Technology, Inc.(a) 14,700 880,163
--------------------------------------------------------------
Intel Corp. 3,600 481,275
--------------------------------------------------------------
Xilinx, Inc.(a) 2,900 239,431
--------------------------------------------------------------
2,212,494
--------------------------------------------------------------
ENGINEERING & CONSTRUCTION-0.87%
Quanta Services, Inc.(a) 7,800 429,000
--------------------------------------------------------------
EQUIPMENT (SEMICONDUCTOR)-1.73%
Credence Systems Corp.(a) 9,800 540,838
--------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
EQUIPMENT (SEMICONDUCTOR)-(CONTINUED)
Lam Research Corp.(a) 8,400 $ 315,000
--------------------------------------------------------------
855,838
--------------------------------------------------------------
FOODS-1.92%
Bestfoods 13,700 948,725
--------------------------------------------------------------
GAMING, LOTTERY & PARIMUTUEL
COMPANIES-1.64%
MGM Grand, Inc. 10,600 340,525
--------------------------------------------------------------
Station Casinos, Inc.(a) 18,700 467,500
--------------------------------------------------------------
808,025
--------------------------------------------------------------
HEALTH CARE (DIVERSIFIED)-2.50%
IVAX Corp.(a) 29,800 1,236,700
--------------------------------------------------------------
HEALTH CARE (DRUGS-GENERIC &
OTHER)-1.09%
Andrx Corp.(a) 8,400 536,944
--------------------------------------------------------------
HEALTH CARE (DRUGS-MAJOR
PHARMACEUTICALS)-5.71%
Pfizer Inc. 58,800 2,822,400
--------------------------------------------------------------
HEALTH CARE (HOSPITAL
MANAGEMENT)-1.02%
HCA-Healthcare Corp. (The) 16,600 504,225
--------------------------------------------------------------
HEALTH CARE (MANAGED CARE)-3.39%
UnitedHealth Group Inc. 14,200 1,217,650
--------------------------------------------------------------
Wellpoint Health Networks Inc.(a) 6,300 456,356
--------------------------------------------------------------
1,674,006
--------------------------------------------------------------
HEALTH CARE (SPECIALIZED
SERVICES)-1.32%
Quest Diagnostics Inc.(a) 8,700 650,325
--------------------------------------------------------------
INSURANCE (LIFE/HEALTH)-0.92%
John Hancock Financial Services,
Inc.(a) 19,200 454,800
--------------------------------------------------------------
INVESTMENT MANAGEMENT-1.58%
Alliance Capital Management Holding
L.P. 16,500 782,719
--------------------------------------------------------------
MANUFACTURING (SPECIALIZED)-1.13%
Millipore Corp. 7,400 557,775
--------------------------------------------------------------
NATURAL GAS-1.69%
Dynegy Inc.-Class A 12,200 833,412
--------------------------------------------------------------
OIL & GAS (DRILLING &
EQUIPMENT)-9.23%
BJ Services Co.(a) 10,300 643,750
--------------------------------------------------------------
</TABLE>
6
<PAGE> 9
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
OIL & GAS (DRILLING & EQUIPMENT)-(CONTINUED)
ENSCO International Inc. 27,900 $ 999,169
--------------------------------------------------------------------
Marine Drilling Cos., Inc.(a) 19,600 548,800
--------------------------------------------------------------------
Patterson Energy, Inc.(a) 17,500 498,750
--------------------------------------------------------------------
R&B Falcon Corp.(a) 38,300 902,444
--------------------------------------------------------------------
Smith International, Inc.(a) 7,200 524,250
--------------------------------------------------------------------
Weatherford International, Inc.(a) 11,100 441,919
--------------------------------------------------------------------
4,559,082
--------------------------------------------------------------------
OIL & GAS (EXPLORATION &
PRODUCTION)-2.11%
Burlington Resources Inc. 8,900 340,425
--------------------------------------------------------------------
Union Pacific Resources Group Inc. 32,000 704,000
--------------------------------------------------------------------
1,044,425
--------------------------------------------------------------------
REAL ESTATE INVESTMENT TRUSTS-0.78%
Boston Properties, Inc. 10,000 386,250
--------------------------------------------------------------------
RETAIL (COMPUTERS &
ELECTRONICS)-1.32%
CDW Computer Centers, Inc.(a) 10,400 650,000
--------------------------------------------------------------------
SERVICES
(ADVERTISING/MARKETING)-0.74%
Omnicom Group Inc. 4,100 365,156
--------------------------------------------------------------------
SERVICES (DATA PROCESSING)-0.97%
Learning Tree International, Inc.(a) 7,800 477,750
--------------------------------------------------------------------
TELEPHONE-0.50%
CTC Communications Group, Inc.(a) 6,850 246,600
--------------------------------------------------------------------
Total Domestic Common Stocks
(Cost $24,142,188) 29,240,887
--------------------------------------------------------------------
FOREIGN STOCKS & OTHER EQUITY
INTERESTS-32.51%
BELGIUM-0.58%
ICOS Vision Systems Corp. N.V.
(Equipment-Semiconductor)(a) 7,800 284,700
--------------------------------------------------------------------
CANADA-7.75%
Anderson Exploration Ltd.
(Oil-Domestic Integrated)(a) 31,800 578,299
--------------------------------------------------------------------
Angiotech Pharmaceuticals, Inc.
(Health Care-Drugs-Major
Pharmaceuticals)(a) 2,800 116,225
--------------------------------------------------------------------
Microcell Telecommunications Inc.
(Telecommunications-Cellular/Wireless)(a) 14,800 535,790
--------------------------------------------------------------------
NOVA Chemicals Corp.
(Chemicals-Specialty) 19,900 418,395
--------------------------------------------------------------------
Potash Corp. of Saskatchewan Inc.
(Chemicals-Specialty) 16,500 903,529
--------------------------------------------------------------------
Precision Drilling Corp. (Oil &
Gas-Drilling & Equipment)(a) 9,100 351,893
--------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
CANADA-(CONTINUED)
Prudential Steel Ltd. (Oil &
Gas-Drilling & Equipment) 22,700 $ 333,011
--------------------------------------------------------------------
Renaissance Energy Ltd. (Oil &
Gas-Exploration & Production)(a) 46,500 451,105
--------------------------------------------------------------------
Trican Well Service Ltd. (Oil &
Gas-Drilling & Equipment)(a) 15,500 139,366
--------------------------------------------------------------------
3,827,613
--------------------------------------------------------------------
FINLAND-1.84%
Nokia Oyj (Communications Equipment) 17,796 906,347
--------------------------------------------------------------------
FRANCE-4.23%
AGF-Assurances Generales de France
(Insurance-Multi-Line) 6,600 348,086
--------------------------------------------------------------------
Bouygues Offshore S.A. (Oil &
Gas-Drilling & Equipment) 5,744 287,341
--------------------------------------------------------------------
PSA Peugeot Citroen (Automobiles) 2,300 460,665
--------------------------------------------------------------------
Societe Television Francaise 1
(Broadcasting-Television, Radio &
Cable) 7,000 486,906
--------------------------------------------------------------------
Total Fina Elf S.A. (Oil &
Gas-Refining & Marketing) 3,300 504,991
--------------------------------------------------------------------
2,087,989
--------------------------------------------------------------------
GERMANY-0.73%
Epcos A.G. (Electronics-Component
Distributors)(a) 3,600 361,549
--------------------------------------------------------------------
HONG KONG-0.34%
Giordano International Ltd.
(Retail-Specialty-Apparel) 112,000 170,252
--------------------------------------------------------------------
IRELAND-1.09%
Elan Corp. PLC-ADR (Health
Care-Drugs-Generic & Other)(a) 11,100 537,656
--------------------------------------------------------------------
JAPAN-2.85%
Furukawa Electric Co., Ltd. (The)
(Metal Fabricators) 48,000 1,001,460
--------------------------------------------------------------------
NTT DoCoMo, Inc.
(Telecommunications-Cellular/
Wireless) 15 405,501
--------------------------------------------------------------------
1,406,961
--------------------------------------------------------------------
MEXICO-0.96%
Telefonos de Mexico S.A. de
C.V.-Class L-ADR (Telephone) 8,300 474,138
--------------------------------------------------------------------
NETHERLANDS-1.84%
ASM Lithography Holding N.V.-New York
Shares
(Electronics-Semiconductor)(a) 8,400 370,650
--------------------------------------------------------------------
</TABLE>
7
<PAGE> 10
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
NETHERLANDS-(CONTINUED)
Koninklijke Numico N.V. (Foods)(a) 11,400 $ 539,866
--------------------------------------------------------------
910,516
--------------------------------------------------------------
SINGAPORE-1.47%
Flextronics International Ltd.
(Manufacturing-Specialized)(a) 10,600 728,088
--------------------------------------------------------------
SPAIN-1.98%
Acerinox, S.A. (Iron & Steel) 10,800 311,811
--------------------------------------------------------------
Altadis, S.A. (Tobacco) 43,500 666,914
--------------------------------------------------------------
978,725
--------------------------------------------------------------
SWITZERLAND-3.31%
Adecco S.A. (Services-Commercial &
Consumer) 633 536,533
--------------------------------------------------------------
Novartis A.G. (Health
Care-Diversified) 695 1,098,263
--------------------------------------------------------------
1,634,796
--------------------------------------------------------------
UNITED KINGDOM-3.54%
BP Amoco PLC-ADR (Oil-International
Integrated) 9,400 531,688
--------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
UNITED KINGDOM-(CONTINUED)
Centrica PLC (Oil & Gas-Exploration &
Production) 160,000 $ 533,751
--------------------------------------------------------------
Energis PLC (Telephone)(a) 7,600 284,921
--------------------------------------------------------------
FKI PLC (Manufacturing-Diversified) 111,265 395,582
--------------------------------------------------------------
1,745,942
--------------------------------------------------------------
Total Foreign Stocks & Other
Equity Interests (Cost
$13,549,925) 16,055,272
--------------------------------------------------------------
MONEY MARKET FUNDS-7.34%
STIC Liquid Assets Portfolio(b) 1,812,780 1,812,780
--------------------------------------------------------------
STIC Prime Portfolio(b) 1,812,780 1,812,780
--------------------------------------------------------------
Total Money Market Funds (Cost
$3,625,560) 3,625,560
--------------------------------------------------------------
TOTAL INVESTMENTS-99.06% (Cost
$41,317,673) 48,921,719
--------------------------------------------------------------
OTHER ASSETS LESS LIABILITIES-0.94% 462,886
--------------------------------------------------------------
NET ASSETS-100.00% $49,384,605
==============================================================
</TABLE>
Investment Abbreviations:
ADR - American Depositary Receipt
Notes to Schedule of Investments:
(a)Non-income producing security.
(b)The money market fund has the same investment advisor as the Fund.
See Notes to Financial Statements.
8
<PAGE> 11
STATEMENT OF ASSETS AND LIABILITIES
June 30, 2000
(Unaudited)
<TABLE>
<S> <C>
ASSETS:
Investments, at market value (cost $41,317,673) $48,921,719
------------------------------------------------------------
Foreign currencies, at value (cost $468,491) 469,302
------------------------------------------------------------
Receivables for:
Investments sold 82,897
------------------------------------------------------------
Fund shares sold 49,231
------------------------------------------------------------
Dividends 55,075
------------------------------------------------------------
Other assets 11,017
------------------------------------------------------------
Total assets 49,589,241
------------------------------------------------------------
LIABILITIES:
Payables for:
------------------------------------------------------------
Fund shares reacquired 24,225
------------------------------------------------------------
Accrued advisory fees 29,222
------------------------------------------------------------
Accrued administrative services fees 4,099
------------------------------------------------------------
Accrued distribution fees 97,863
------------------------------------------------------------
Accrued transfer agent fees 10,870
------------------------------------------------------------
Accrued trustees' fees 1,900
------------------------------------------------------------
Accrued operating expenses 36,457
------------------------------------------------------------
Total liabilities 204,636
------------------------------------------------------------
Net assets applicable to shares outstanding $49,384,605
============================================================
NET ASSETS:
Class A $21,487,890
============================================================
Class B $26,646,873
============================================================
Class C $ 1,249,842
============================================================
SHARES OUTSTANDING, $0.01 PAR VALUE PER SHARE:
Class A 1,427,923
============================================================
Class B 1,792,791
============================================================
Class C 84,114
============================================================
Class A:
Net asset value and redemption price per
share $ 15.05
------------------------------------------------------------
Offering price per share:
(Net asset value of $15.05 divided
by 95.25%) $ 15.80
============================================================
Class B:
Net asset value and offering price per share $ 14.86
============================================================
Class C:
Net asset value and offering price per share $ 14.86
============================================================
</TABLE>
STATEMENT OF OPERATIONS
For the six months ended June 30, 2000
(Unaudited)
<TABLE>
<S> <C>
INVESTMENT INCOME:
Dividends (net of foreign withholding tax
$15,728) $ 191,484
------------------------------------------------------------
Interest 2,139
------------------------------------------------------------
Total investment income 193,623
------------------------------------------------------------
EXPENSES:
Advisory fees 246,254
------------------------------------------------------------
Administrative services fee 24,863
------------------------------------------------------------
Custodian fees 25,075
------------------------------------------------------------
Distribution fees -- Class A 52,930
------------------------------------------------------------
Distribution fees -- Class B 140,446
------------------------------------------------------------
Distribution fees -- Class C 4,776
------------------------------------------------------------
Transfer agent fees 53,823
------------------------------------------------------------
Trustees' fees 4,521
------------------------------------------------------------
Other 57,299
------------------------------------------------------------
Total expenses 609,987
------------------------------------------------------------
Less: Fees waived by advisor (33,283)
------------------------------------------------------------
Expenses paid indirectly (404)
------------------------------------------------------------
Net expenses 576,300
------------------------------------------------------------
Net investment income (loss) (382,677)
------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENT SECURITIES AND FOREIGN CURRENCIES
Net realized gain (loss) from:
Investment securities 109,291
------------------------------------------------------------
Foreign currencies (99,832)
------------------------------------------------------------
9,459
------------------------------------------------------------
Change in net unrealized appreciation
(depreciation) of:
Investment securities (2,093,838)
------------------------------------------------------------
Foreign currencies (4,324)
------------------------------------------------------------
(2,098,162)
------------------------------------------------------------
Net gain (loss) on investment securities and
foreign currencies (2,088,703)
------------------------------------------------------------
Net increase (decrease) in net assets resulting
from operations $(2,471,380)
============================================================
</TABLE>
See Notes to Financial Statements.
9
<PAGE> 12
STATEMENT OF CHANGES IN NET ASSETS
For the six months ended June 30, 2000 and the year ended December 31, 1999
(Unaudited)
<TABLE>
<CAPTION>
JUNE 30, DECEMBER 31,
2000 1999
----------- ------------
<S> <C> <C>
OPERATIONS:
Net investment income (loss) $ (382,677) $ (323,556)
-----------------------------------------------------------------------------------------
Net realized gain from investment securities and foreign
currencies 9,459 9,996,732
-----------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) of
investment securities and foreign currencies (2,098,162) 8,406,245
-----------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
operations (2,471,380) 18,079,421
-----------------------------------------------------------------------------------------
Distributions to shareholders from net investment income:
Advisor Class -- (2,325)
-----------------------------------------------------------------------------------------
Distributions to shareholders from net realized gains:
Class A -- (1,767,423)
-----------------------------------------------------------------------------------------
Class B -- (2,505,025)
-----------------------------------------------------------------------------------------
Class C -- (39,159)
-----------------------------------------------------------------------------------------
Advisor Class* -- (82,148)
-----------------------------------------------------------------------------------------
Share transactions-net:
Class A 1,581,571 (2,708,897)
-----------------------------------------------------------------------------------------
Class B (1,036,583) (4,238,502)
-----------------------------------------------------------------------------------------
Class C 812,609 143,802
-----------------------------------------------------------------------------------------
Advisor Class* (703,288) (125,191)
-----------------------------------------------------------------------------------------
Net increase (decrease) in net assets (1,817,071) 6,754,553
-----------------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 51,201,676 44,447,123
-----------------------------------------------------------------------------------------
End of period $49,384,605 $51,201,676
=========================================================================================
NET ASSETS CONSIST OF:
Shares of beneficial interest $38,554,327 $37,900,018
-----------------------------------------------------------------------------------------
Undistributed net investment income (loss) (382,677) --
-----------------------------------------------------------------------------------------
Undistributed net realized gain from investment securities
and foreign currencies 3,606,422 3,596,963
-----------------------------------------------------------------------------------------
Unrealized appreciation of investment securities and
foreign currencies 7,606,533 9,704,695
-----------------------------------------------------------------------------------------
$49,384,605 $51,201,676
=========================================================================================
</TABLE>
* Advisor Class shares were converted to Class A shares effective as of the
close of business on February 11, 2000.
See Notes to Financial Statements.
10
<PAGE> 13
NOTES TO FINANCIAL STATEMENTS
June 30, 2000
(Unaudited)
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES
AIM Global Trends Fund (the "Fund") is a separate series of AIM Series Trust
(the "Trust"). The Trust is organized as a Delaware business trust and is
registered under the Investment Company Act of 1940, as amended (the "1940
Act"), as an open-end management investment company having an unlimited number
of shares of beneficial interest. The Fund consists of three different classes
of shares: Class A shares, Class B shares and Class C shares. The Fund formerly
offered Advisor Class shares; however, as of the close of business on February
11, 2000, the Advisor Class shares were converted to Class A shares. Class A
shares are sold with a front-end sales charge. Class B shares and Class C shares
are sold with a contingent deferred sales charge. Advisor Class shares were sold
without a sales charge. Matters affecting each portfolio or class will be voted
on exclusively by the shareholders of such portfolio or class. The assets,
liabilities and operations of each portfolio are accounted for separately.
Information presented in these financial statements pertains only to the Fund.
The Fund's investment objective is growth of capital.
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 at the date of the
financial statements and the reported amounts of revenues and expenses during
the reporting period. Actual results could differ from those estimates. The
following is a summary of the significant accounting policies followed by the
Fund in the preparation of its financial statements.
A. Security Valuations -- 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 is valued at
the closing bid price on that day. Each security reported on the NASDAQ
National Market System is valued at the last sales price as of the close of
the customary trading session on the valuation date or absent a last sales
price, at the closing bid price. Debt obligations (including convertible
bonds) are valued on the basis of prices provided by an independent pricing
service. Prices provided by the pricing service may be determined without
exclusive reliance on quoted prices, and may reflect appropriate factors such
as yield, type of issue, coupon rate and maturity date. Securities for which
market prices are not provided by any of the above methods are valued based
upon quotes furnished by independent sources and are valued at the last bid
price in the case of equity securities and in the case of debt obligations,
the mean between the last bid and asked prices. Securities for which market
quotations are not readily available or are questionable are valued at fair
value as determined in good faith by or under the supervision of the Trust's
officers in a manner specifically authorized by the Board of Trustees.
Short-term obligations having 60 days or less to maturity are valued at
amortized cost which approximates market value. For purposes of determining
net asset value per share, futures and option contracts generally will be
valued 15 minutes after the close of the customary trading session of the New
York Stock Exchange ("NYSE").
Generally, trading in foreign securities is substantially completed each
day at various times prior to the close of the NYSE. The values of such
securities used in computing the net asset value of the Fund's shares are
determined as of such times. Foreign currency exchange rates are also
generally determined prior to the close of the NYSE. Occasionally, events
affecting the values of such securities and such exchange rates may occur
between the times at which they are determined and the close of the customary
trading session of the NYSE which would not be reflected in the computation
of the Fund's net asset value. If events materially affecting the value of
such securities occur during such period, then these securities will be
valued at their fair value as determined in good faith by or under the
supervision of the Board of Trustees.
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.
C. Distributions -- Distributions from income and net realized capital gains, if
any, are generally paid annually and recorded on ex-dividend date. The Fund
may elect to use a portion of the proceeds from redemptions as distributions
for federal income tax purposes.
D. Federal Income Taxes -- The Fund intends to comply with the requirements of
the Internal Revenue Code necessary to qualify as a regulated investment
company and, as such, will not be subject to federal income taxes on
otherwise taxable income (including net realized capital gains) which is
distributed to shareholders. Therefore, no provision for federal income taxes
is recorded in the financial statements.
E. Foreign Currency Translations -- 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 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. Such fluctuations
are included with the net realized and unrealized gain or loss from
investments.
11
<PAGE> 14
F. Expenses -- Distribution expenses directly attributable to a class of shares
are charged to that class' operations. All other expenses which are
attributable to more than one class are allocated among the classes.
NOTE 2-ADVISORY FEES AND OTHER TRANSACTIONS WITH AFFILIATES
A I M Advisors, Inc. ("AIM") is the Fund's investment manager and administrator.
The Fund pays AIM investment management and administration fees at an annual
rate of 0.975% on the first $500 million of the Fund's average daily net assets,
plus 0.95% on the next $500 million of the Fund's average daily net assets, plus
0.925% on the next $500 million of the Fund's average daily net assets, plus
0.90% on the Fund's average daily net assets exceeding $1.5 billion. AIM has
contractually agreed to limit the Fund's expenses (exclusive of brokerage
commissions, taxes, interest, extraordinary items and increases in expenses due
to expense offset arrangements, if any) to the maximum annual rate of 2.00%,
2.50% and 2.50% of the average daily net assets of the Fund's Class A, Class B
and Class C shares, respectively. During the six months ended June 30, 2000, AIM
waived fees of $33,283.
The Fund, pursuant to a master administrative services agreement with AIM,
has agreed to pay AIM for certain administrative costs incurred in providing
accounting services to the Fund. For the six months ended June 30, 2000, AIM was
paid $24,863 for such services.
The Fund, pursuant to a transfer agency and service agreement, has agreed to
pay A I M Fund Services, Inc. ("AFS") a fee for providing transfer agency and
shareholder services to the Fund. For the six months ended June 30, 2000, AFS
was paid $32,525 for such services.
The Trust has entered into master distribution agreements with A I M
Distributors, Inc. ("AIM Distributors") to serve as the distributor for the
Class A, Class B and Class C 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
shares, Class B shares and Class C shares (collectively the "Plans"). The Fund,
pursuant to the Plans, pays AIM Distributors compensation at the annual rate of
0.50% 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 C shares. Of these amounts, the Fund may
pay a service fee of 0.25% of the average daily net assets of the Class A, Class
B or Class C 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 Plans also
impose a cap on the total sales charges, including asset-based sales charges
that may be paid by the respective classes. For the six months ended June 30,
2000, the Class A, Class B and Class C shares paid AIM Distributors $52,930,
$140,446 and $4,776, respectively, as compensation under the Plans.
AIM Distributors received commissions of $9,209 from sales of the Class A
shares of the Fund during the six months ended June 30, 2000. Such commissions
are not an expense of the Fund. They are deducted from, and are not included in,
the proceeds from sales of Class A shares. During the six months ended June 30,
2000, AIM Distributors received $74 in contingent deferred sales charges imposed
on redemptions of Fund shares.
Certain officers and trustees of the Trust are officers and directors of
AIM, AFS and AIM Distributors.
NOTE 3-INDIRECT EXPENSES
For the six months ended June 30, 2000, the Fund received reductions in transfer
agency fees from AFS (an affiliate of AIM) and in custodian fees of $278 and
$126, respectively, under expense offset arrangements which resulted in a
reduction of the Fund's total expenses of $404.
NOTE 4-BANK BORROWINGS
The Fund is a participant in a committed line of credit facility with a
syndicate administered by Citibank, N.A. The Fund may borrow up to the lesser of
(i) $1,000,000,000 or (ii) the limits set by its prospectus for borrowings. The
Fund and other funds advised by AIM which are parties to the line of credit may
borrow on a first come, first served basis. During the six months ended June 30,
2000, the Fund did not borrow under the line of credit agreement. The funds
which are party to the line of credit are charged a commitment fee of 0.09% on
the unused balance of the committed line. The commitment fee is allocated among
the funds based on their respective average net assets for the period.
NOTE 5-INVESTMENT SECURITIES
The aggregate amount of investment securities (other than short-term securities)
purchased and sold by the Fund during the six months ended June 30, 2000 was
$73,109,653 and $74,075,330, respectively.
The amount of unrealized appreciation of investment securities, for tax
purposes, as of June 30, 2000 is as follows:
<TABLE>
<S> <C>
Aggregate unrealized appreciation of
investment securities $ 9,301,265
---------------------------------------------------------
Aggregate unrealized (depreciation) of
investment securities (1,697,219)
---------------------------------------------------------
Net unrealized appreciation of investment
securities $ 7,604,046
=========================================================
Investments have the same cost for tax and financial
statement purposes.
</TABLE>
12
<PAGE> 15
NOTE 6-SHARE INFORMATION
Changes in shares outstanding during the six months ended June 30, 2000 and the
year ended December 31, 1999 were as follows:
<TABLE>
<CAPTION>
JUNE 30, DECEMBER 31,
2000 1999
---------------------- --------------------------
SHARES AMOUNT SHARES AMOUNT
-------- ----------- ------------ -----------
<S> <C> <C> <C> <C>
Sold:
Class A 193,793 $ 3,262,253 200,188 $ 2,730,032
-----------------------------------------------------------------------------------------------------------------
Class B 184,301 2,826,229 181,716 2,419,036
-----------------------------------------------------------------------------------------------------------------
Class C* 58,338 913,221 14,063 186,601
-----------------------------------------------------------------------------------------------------------------
Advisor Class** 864 13,351 17,792 225,871
-----------------------------------------------------------------------------------------------------------------
Issued as reinvestment of dividends:
Class A -- -- 118,185 1,690,082
-----------------------------------------------------------------------------------------------------------------
Class B -- -- 160,713 2,277,307
-----------------------------------------------------------------------------------------------------------------
Class C* -- -- 2,695 38,132
-----------------------------------------------------------------------------------------------------------------
Advisor Class** -- -- 5,723 81,816
-----------------------------------------------------------------------------------------------------------------
Conversion of Advisor Class shares to Class A shares***:
Class A 61,297 680,172 -- --
-----------------------------------------------------------------------------------------------------------------
Advisor Class (61,105) (680,172) -- --
-----------------------------------------------------------------------------------------------------------------
Reacquired:
Class A (132,634) (2,360,854) (568,367) (7,129,011)
-----------------------------------------------------------------------------------------------------------------
Class B (255,338) (3,862,812) (719,011) (8,934,845)
-----------------------------------------------------------------------------------------------------------------
Class C* (6,211) (100,612) (6,636) (80,931)
-----------------------------------------------------------------------------------------------------------------
Advisor Class** (2,291) (36,467) (32,673) (432,878)
-----------------------------------------------------------------------------------------------------------------
41,014 $ 654,309 (625,612) $(6,928,788)
=================================================================================================================
</TABLE>
* Class C shares commenced sales on January 2, 1998.
** Advisor Class share activity for the period January 1, 2000 through February
11, 2000.
*** Effective as of the close of business February 11, 2000, pursuant to
approval by the Board of Trustees on November 3, 1999, all outstanding
shares of Advisor Class shares were converted to Class A shares of the fund.
13
<PAGE> 16
NOTE 7-FINANCIAL HIGHLIGHTS
The following schedule presents financial highlights for one share of the Fund
outstanding throughout the periods indicated.
<TABLE>
<CAPTION>
Class A
-------------------------------------------------------
SEPTEMBER 15,
1997 (DATE
YEAR ENDED OPERATIONS
SIX MONTHS DECEMBER 31, COMMENCED) TO
ENDED JUNE 30, -------------------- DECEMBER 31,
2000(a) 1999(a) 1998(a) 1997(a)
-------------- -------- -------- -------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 15.78 $ 11.46 $ 10.63 $ 11.43
------------------------------------------------------------ ------- ------- ------- -------
Income from investment operations:
Net investment income (loss) (0.09) (0.06) (0.02) (0.01)
------------------------------------------------------------ ------- ------- ------- -------
Net gains (losses) on securities (both realized and
unrealized) (0.64) 5.86 1.01 (0.31)
------------------------------------------------------------ ------- ------- ------- -------
Total from investment operations (0.73) 5.80 0.99 (0.32)
------------------------------------------------------------ ------- ------- ------- -------
Less distributions:
Dividends from net investment income -- -- (0.02) --
------------------------------------------------------------ ------- ------- ------- -------
Distributions from net realized gains -- (1.48) (0.14) --
------------------------------------------------------------ ------- ------- ------- -------
Return of capital -- -- -- (0.48)
------------------------------------------------------------ ------- ------- ------- -------
Total distributions -- (1.48) (0.16) (0.48)
------------------------------------------------------------ ------- ------- ------- -------
Net asset value, end of period $ 15.05 $ 15.78 $ 11.46 $ 10.63
============================================================ ======= ======= ======= =======
Total return(b) (4.63)% 51.93% 9.37% (2.68)%
============================================================ ======= ======= ======= =======
Ratios/supplemental data:
Net assets, end of period (000s omitted) $21,488 $20,595 $17,822 $15,145
============================================================ ======= ======= ======= =======
Ratio of expenses to average net assets:
With fee waivers 2.00%(c) 1.03% 0.50% 0.50%(d)
------------------------------------------------------------ ------- ------- ------- -------
Without fee waivers 2.13%(c) 1.16% 0.50% 0.50%(d)
============================================================ ======= ======= ======= =======
Ratio of net investment income (loss) to average net assets (1.23)%(c) (0.50)% (0.21)% (0.35)%(d)
============================================================ ======= ======= ======= =======
Portfolio turnover rate 151% 147% 28% 1%
============================================================ ======= ======= ======= =======
</TABLE>
(a) Calculated using average shares outstanding.
(b) Does not deduct sales charges and is not annualized for periods less than
one year.
(c) Ratios are annualized and based on average net assets of $21,288,179.
(d) Annualized.
<TABLE>
<CAPTION>
Class B
-------------------------------------------------------
SEPTEMBER 15,
1997 (DATE
YEAR ENDED OPERATIONS
SIX MONTHS DECEMBER 31, COMMENCED) TO
ENDED JUNE 30, -------------------- DECEMBER 31,
2000(a) 1999(a) 1998(a) 1997(a)
-------------- -------- -------- -------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 15.62 $ 11.41 $ 10.62 $ 11.43
------------------------------------------------------------ ------- ------- ------- -------
Income from investment operations:
Net investment income (loss) (0.13) (0.13) (0.07) (0.02)
------------------------------------------------------------ ------- ------- ------- -------
Net gains (losses) on securities (both realized and
unrealized) (0.63) 5.82 1.00 (0.32)
------------------------------------------------------------ ------- ------- ------- -------
Total from investment operations (0.76) 5.69 0.93 (0.34)
------------------------------------------------------------ ------- ------- ------- -------
Less distributions:
Distributions from net realized gains -- (1.48) (0.14) --
------------------------------------------------------------ ------- ------- ------- -------
Return of capital -- -- -- (0.47)
------------------------------------------------------------ ------- ------- ------- -------
Total distributions -- (1.48) (0.14) (0.47)
------------------------------------------------------------ ------- ------- ------- -------
Net asset value, end of period $ 14.86 $ 15.62 $ 11.41 $ 10.62
============================================================ ======= ======= ======= =======
Total return(b) (4.87)% 51.18% 8.83% (2.83)%
============================================================ ======= ======= ======= =======
Ratios/supplemental data:
Net assets, end of period (000s omitted) $26,647 $29,118 $25,555 $19,184
============================================================ ======= ======= ======= =======
Ratio of expenses to average net assets:
With fee waivers 2.50%(c) 1.53% 1.00% 1.00%(d)
------------------------------------------------------------ ------- ------- ------- -------
Without fee waivers 2.63%(c) 1.66% 1.00% 1.00%(d)
============================================================ ======= ======= ======= =======
Ratio of net investment income (loss) to average net assets (1.73)%(c) (1.00)% (0.71)% (0.85)%(d)
============================================================ ======= ======= ======= =======
Portfolio turnover rate 151% 147% 28% 1%
============================================================ ======= ======= ======= =======
</TABLE>
(a) Calculated using average shares outstanding.
(b) Does not deduct contingent deferred sales charges and is not annualized for
periods less than one year.
(c) Ratios are annualized and based on average net assets of $28,243,465.
(d) Annualized.
14
<PAGE> 17
NOTE 7-FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
Class C
-------------------------------------------------
JANUARY 2, 1998
(DATE SALES
SIX MONTHS YEAR ENDED COMMENCED) TO
ENDED JUNE 30, DECEMBER 31, DECEMBER 31,
2000(a) 1999(a) 1998(a)
-------------- ------------ ---------------
<S> <C> <C> <C>
Net asset value, beginning of period $15.62 $11.40 $10.62
------------------------------------------------------------ ------ ------ ------
Income from investment operations:
Net investment income (loss) (0.13) (0.13) (0.08)
------------------------------------------------------------ ------ ------ ------
Net gains (losses) on securities (both realized and
unrealized) (0.63) 5.83 1.00
------------------------------------------------------------ ------ ------ ------
Total from investment operations (0.76) 5.70 0.92
------------------------------------------------------------ ------ ------ ------
Less distributions from net realized gains -- (1.48) (0.14)
------------------------------------------------------------ ------ ------ ------
Net asset value, end of period $14.86 $15.62 $11.40
============================================================ ====== ====== ======
Total return(b) (4.87)% 51.33% 8.94%
============================================================ ====== ====== ======
Ratios/supplemental data:
Net assets, end of period (000s omitted) $1,250 $ 500 $ 249
============================================================ ====== ====== ======
Ratio of expenses to average net assets:
With fee waivers 2.50%(c) 1.53% 1.00%(d)
------------------------------------------------------------ ------ ------ ------
Without fee waivers 2.63%(c) 1.66% 1.00%(d)
============================================================ ====== ====== ======
Ratio of net investment income (loss) to average net assets (1.73)%(c) (1.00)% (0.71)%(d)
============================================================ ====== ====== ======
Portfolio turnover rate 151% 147% 28%
============================================================ ====== ====== ======
</TABLE>
(a) Calculated using average shares outstanding.
(b) Does not deduct contingent deferred sales charges and is not annualized for
periods less than one year.
(c) Ratios are annualized and based on average net assets of $960,413.
(d) Annualized.
15
<PAGE> 18
<TABLE>
<CAPTION>
BOARD OF TRUSTEES OFFICERS OFFICE OF THE FUND
<S> <C> <C>
C. Derek Anderson Robert H. Graham 11 Greenway Plaza
Senior Managing Partner, Plantagenet Capital Chairman and President Suite 100
Management, LLC (an investment Houston, TX 77046
partnership); Chief Executive Officer, Dana R. Sutton
Plantagenet Holdings, Ltd. Vice President and Treasurer INVESTMENT MANAGER
(an investment banking firm)
Samuel D. Sirko A I M Advisors, Inc.
Frank S. Bayley Vice President and Secretary 11 Greenway Plaza
Partner, law firm of Suite 100
Baker & McKenzie Melville B. Cox Houston, TX 77046
Vice President
Robert H. Graham TRANSFER AGENT
Director, President and Chief Executive Officer, Gary T. Crum
A I M Management Group Inc. Vice President A I M Fund Services, Inc.
P.O. Box 4739
Ruth H. Quigley Carol F. Relihan Houston, TX 77210-4739
Private Investor Vice President
CUSTODIAN
Mary J. Benson
Assistant Vice President and State Street Bank and Trust Company
Assistant Treasurer 225 Franklin Street
Boston, MA 02110
Sheri Morris
Assistant Vice President and COUNSEL TO THE FUND
Assistant Treasurer
Kirkpatrick & Lockhart LLP
Nancy L. Martin 1800 Massachusetts Avenue, N.W.
Assistant Secretary Washington, D.C. 20036-1800
Ofelia M. Mayo COUNSEL TO THE TRUSTEES
Assistant Secretary
Paul, Hastings, Janofsky & Walker LLP
Kathleen J. Pflueger Twenty Third Floor
Assistant Secretary 555 South Flower Street
Los Angeles, CA 90071
DISTRIBUTOR
A I M Distributors, Inc.
11 Greenway Plaza
Suite 100
Houston, TX 77046
</TABLE>
16
<PAGE> 19
-------------------------------------
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<PAGE> 20
THE AIM FAMILY OF FUNDS--Registered Trademark--
<TABLE>
<S> <C> <C>
EQUITY FUNDS
DOMESTIC EQUITY FUNDS INTERNATIONAL/GLOBAL EQUITY FUNDS A I M Management Group Inc. has provided
leadership in the mutual fund industry
MORE AGGRESSIVE MORE AGGRESSIVE since 1976 and managed approximately
$176 billion in assets for more than 8
AIM Small Cap Opportunities(1) AIM Latin American Growth million shareholders, including
AIM Mid Cap Opportunities(2) AIM Developing Markets individual investors, corporate clients
AIM Large Cap Opportunities AIM Asian Growth and financial institutions, as of
AIM Emerging Growth AIM Japan Growth June 30, 2000.
AIM Small Cap Growth(3) AIM European Development The AIM Family of Funds--Registered
AIM Aggressive Growth AIM Euroland Growth(5) Trademark-- is distributed nationwide,
AIM Mid Cap Growth AIM Global Aggressive Growth and AIM today is the eighth-largest
AIM Capital Development AIM International Equity mutual fund complex in the United States
AIM Constellation(4) AIM Advisor International Value in assets under management, according to
AIM Dent Demographic Trends AIM Global Trends(6) Strategic Insight, an independent mutual
AIM Select Growth AIM Global Growth fund monitor.
AIM Large Cap Growth AIM is a subsidiary of AMVESCAP PLC,
AIM Weingarten MORE CONSERVATIVE one of the world's largest independent
AIM Mid Cap Equity financial services companies with $389
AIM Charter SECTOR EQUITY FUNDS billion in assets under management as of
AIM Value June 30, 2000.
AIM Blue Chip MORE AGGRESSIVE
AIM Basic Value
AIM Large Cap Basic Value AIM Global Telecommunications and Technology
AIM Balanced AIM Global Resources
AIM Advisor Flex AIM Global Financial Services
AIM Global Health Care
MORE CONSERVATIVE AIM Global Consumer Products and Services
AIM Global Infrastructure
AIM Advisor Real Estate
AIM Global Utilities
MORE CONSERVATIVE
FIXED-INCOME FUNDS
TAXABLE FIXED-INCOME FUNDS TAX-FREE FIXED-INCOME FUNDS
MORE AGGRESSIVE MORE AGGRESSIVE
AIM Strategic Income AIM High Income Municipal
AIM High Yield II AIM Tax-Exempt Bond of Connecticut
AIM High Yield AIM Municipal Bond
AIM Income AIM Tax-Free Intermediate
AIM Global Income AIM Tax-Exempt Cash
AIM Floating Rate(7)
AIM Intermediate Government MORE CONSERVATIVE
AIM Limited Maturity Treasury
AIM Money Market
MORE CONSERVATIVE
</TABLE>
The AIM Risk Spectrum illustrates equity and fixed-income funds from more
aggressive to more conservative. When assessing the degree of risk, three
factors were considered: the funds' portfolio holdings, volatility patterns over
time and diversification permitted within the fund. Fund rankings are relative
to one another within The AIM Family of Funds--Registered Trademark-- and should
not be compared with other investments. There is no guarantee that any one AIM
fund will be less volatile than any other. (1) AIM Small Cap Opportunities Fund
closed to new investors Nov. 4, 1999. (2) AIM Mid Cap Opportunities Fund closed
to new investors March 21, 2000. (3) AIM Small Cap Growth Fund closed to new
investors Nov. 8, 1999. (4) AIM Constellation Fund's investment strategy
broadened to allow investments across all market capitalizations Dec. 1, 1999.
(5) AIM Europe Growth Fund was renamed AIM Euroland Growth Fund Sept. 1, 1999.
(6) AIM Global Trends Fund was restructured to operate as a traditional mutual
fund Aug. 27, 1999. Previously, the fund operated as a fund of funds. (7) AIM
Floating Rate Fund was restructured to offer multiple share classes April 3,
2000. Existing shares were converted to Class B shares, and Class C shares
commenced offering.
FOR MORE COMPLETE INFORMATION ABOUT ANY AIM FUND, INCLUDING SALES CHARGES
AND EXPENSES, OBTAIN THE APPROPRIATE PROSPECTUS(ES) FROM YOUR FINANCIAL ADVISOR.
PLEASE READ THE PROSPECTUS(ES) CAREFULLY BEFORE YOU INVEST OR SEND MONEY. This
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Performance & Commentary or by an AIM Quarterly Review of Performance for the
most recent quarter end.
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A I M Distributors, Inc. GRT-SAR-1
