<PAGE> 1
ANNUAL REPORT / DECEMBER 31 1999
AIM GLOBAL TRENDS FUND
[COVER IMAGE]
[AIM LOGO APPEARS HERE]
<PAGE> 2
[COVER IMAGE]
------------------------------------
VARIIERTE RECHTCKE BY WASSILY KANDINSKY (1866-1944, RUSSIAN)
CONSIDERED THE FOUNDER OF ABSTRACT ART, WASSILY KANDINSKY ACHIEVES
A GEOMETRIC RHYTHM IN HIS 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 changes in net asset value and reinvestment of distributions.
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, Class C and Advisor Class shares will
differ from that of its Class A shares due to different sales-charge
structure and expenses.
o Effective 3/1/99, Advisor Class shares were closed to new investors.
Effective 2/11/00, after the close of the fiscal year, Advisor Class shares
were converted to Class A shares.
o During the fiscal year ended 12/31/99, the fund paid distributions of
$1.4783 per share for Class A, Class B and Class C shares. It paid $1.52 per
Advisor Class share.
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 MSCI EAFE--Registered Trademark-- (Europe, Australasia and the Far East)
Index is a group of unmanaged foreign securities tracked by Morgan Stanley
Capital International.
o The unmanaged MSCI All Country (AC) World Index is a group of global
securities traded on approximately 50 markets in developing and emerging
countries tracked by Morgan Stanley Capital International.
o The unmanaged Standard & Poor's Composite Index of 500 Stocks (S&P 500) is
considered representative of the stock market in general.
o An investment cannot be made in an index. 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 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.
AIM GLOBAL TRENDS FUND
<PAGE> 3
ANNUAL REPORT / CHAIRMAN'S LETTER
Dear Fellow Shareholder:
The fiscal year discussed in this report has reconfirmed our
[PHOTO OF faith in two long-established principles of investing:
Charles T. portfolio diversification and long-term thinking. We could
Bauer, title this report "What a Difference a Year Makes."
Chairman of An investor surveying conditions when the fiscal year
the Board of opened on January 1, 1999, would have been a market
THE FUND dominated by large-capitalization stocks and high-quality
APPEARS HERE] bonds, especially U.S. Treasuries. During 1998, two
well-known indexes of large-capitalization U.S. companies,
the S&P 500 and the Dow Jones Industrial Average, were up
28.60% and 18.15%, respectively. By contrast,
smaller-company stocks in the Russell 2000 had lost 2.55%.
Overseas, many markets were languishing, especially in Asia,
where so many financial difficulties had originated in 1997.
In bond markets as well, name-brand quality was the
place to be. The Lehman Government/Corporate Bond Index,
which follows sovereign issues and investment-grade debt, was up 9.47%, while
the Lehman High Yield Index, which tracks riskier "junk bonds," had risen only
1.60%.
It would be easy for an investor to conclude that blue-chip issues, whether
equity or fixed-income, were the place to be, that it was time to divest himself
of everything else and put all his eggs in the blue-chip basket. The investor,
of course, would be wrong.
MARKETS TURN
While large-capitalization stocks continued to do very well, during 1999 markets
broadened dramatically with many investment sectors performing a complete
turnaround. For example, the small-cap stocks in the Russell 2000 were up 21.26%
for calendar year 1999, and many Asian markets, particularly Japan, had staged a
comeback.
The same holds true of bonds. The higher-quality Lehman index was down
2.15% during 1999 while the Lehman High Yield index was up 2.39%.
The point, at the risk of sounding repetitive to those of you who have
invested with us for a long time, is that this is why diversification is a
fundamental investing principle. Market sectors and asset classes go in and out
of favor, but over the long run--and the long run is several years--the markets'
overall trend has been upward. Selecting an asset class or a market sector on
the basis of a short-term snapshot of conditions is usually unwise, as is
concentrating your portfolio in one asset class. Staying fully invested in a
diversified portfolio remains a compelling strategy and one of your best
prospects for long-term gain. We also continue to remind you that the past few
years have seen extraordinary gains in some markets, and there is no assurance
that this trend will continue.
LOOKING AHEAD
As we look about at the close of this fiscal year, we are encouraged by multiple
signs of economic health in Europe and Asia, not to mention the prolonged U.S.
economic expansion. However, we are aware of how easily an investor could have
been misled by conditions just 12 months ago. For our shareholders, we therefore
reiterate our commitment to investing through a financial advisor. In addition
to helping you select investments appropriate to your time horizon and risk
tolerance, a financial advisor can keep you informed about how changing market
conditions affect you and your portfolio--and help ensure that when you do alter
your investments, there's a logical reason for doing so. AIM believes every
investor should be guided by a financial professional.
FUND MANAGERS COMMENT
In the pages that follow, your fund's portfolio managers discuss how they
managed your fund during the year ended December 31, how the markets behaved and
what they foresee for the near future. We trust you will find their discussion
informative. If you have any questions or comments, we invite you to contact us,
either at our Web site, aimfunds.com, or through our Client Services department
at 800-959-4246. Information about your account is also available through our
automated AIM Investor Line, 800-246-5463.
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.
------------------------------------
STAYING FULLY
INVESTED IN A DIVERSIFIED
PORTFOLIO REMAINS
A COMPELLING STRATEGY
AND ONE OF YOUR
BEST PROSPECTS FOR
LONG-TERM GAIN.
------------------------------------
AIM GLOBAL TRENDS FUND
<PAGE> 4
ANNUAL REPORT / MANAGERS' OVERVIEW
MARKET RALLY AND STRATEGY CHANGE BOOST
FUND PERFORMANCE
GLOBAL MARKETS SAW A DRAMATIC REBOUND IN 1999. HOW DID AIM GLOBAL TRENDS FUND
PERFORM DURING THE FISCAL YEAR?
The fund reported impressive returns of 51.93% for Class A shares, 51.18% for
Class B shares, 51.33% for Class C shares and 52.81% for Advisor Class shares as
of December 31, 1999. (Returns are at net asset value and exclude sales
charges.) With this performance, the fund handily outpaced the 27.31% return of
its benchmark, the MSCI AC World Index.
WHAT WERE THE MAJOR WORLDWIDE TRENDS OVER THE REPORTING PERIOD?
European, Asian and Japanese economies recovered during the fiscal year,
sparking strong market rallies in those regions. In fact, international stocks
outperformed U.S. stocks during 1999--the EAFE Index's 26.96% return topped the
21.03% return of the S&P 500 for the fiscal year. Overseas stocks benefited from
improving investor expectations of economic growth and more favorable
valuations. Countries that focused on cleaning up their banking systems and
stabilizing their currencies enjoyed the best performance.
THE UNITED STATES WAS BY FAR YOUR LEADING COUNTRY ALLOCATION. WHAT HAPPENED IN
U.S. MARKETS IN 1999?
Investor concern over interest rates created substantial volatility in U.S.
stock markets throughout the year. The continued strength of the U.S. economy
raised the specter of inflation, and in response the U.S. Federal Reserve Board
raised interest rates three times.
At the same time, technology stocks ignited a market rally, but not all
stocks benefited. While the S&P 500 and other market indexes reached new levels,
many stocks suffered down or flat years. Among the S&P 500 stocks, 256 declined,
241 rose and three were unchanged.
WHAT HAPPENED IN EUROPE?
European markets showed strong fundamentals during the fiscal year: low
inflation, rising employment and improving consumer confidence. Many companies
saw increased earnings growth driven by the economic recovery in Asia and the
strong U.S. dollar, which helped exports.
European companies have been undergoing the same type of restructuring that
U.S. companies went through in the 1980s--selling unproductive assets, cutting
workforces and buying back shares. Strong merger-and-acquisition activity also
continued in Europe, stimulated by the launch of the euro at the beginning of
1999. In fact, European M&A activity topped that of the United States for the
year.
HOW DID JAPAN FARE?
The Japanese stock market was among the strongest in the world. Last spring,
investors--particularly foreign investors--began pouring money into Japanese
stocks amid prospects of a brighter economy. Market activity drove the value of
the yen to powerful heights. By the end of 1999, foreigners owned more of
corporate Japan than banks owned. As with the United States, technology stocks
dominated the Japanese equity market.
WHY DID THE FUND PERFORM SO WELL?
Besides the rebound in worldwide markets, the fund also benefited from a
------------------------------------
COMPUTERS, E-COMMERCE AND THE
INTERNET ARE CHANGING THE WAY THE
WORLD COMMUNICATES AND CONDUCTS
BUSINESS, AND FUND MANAGERS SOUGHT
TO CAPITALIZE ON THIS REVOLUTION.
------------------------------------
[GRAPHIC]
YOUR FUND'S PERFORMANCE
FUND REBOUNDS STRONGLY
One-year total returns, excluding sales charges
[BAR CHART]
================================================================================
FUND FUND FUND ADVISOR
CLASS A CLASS B CLASS C CLASS
SHARES SHARES SHARES SHARES
- --------------------------------------------------------------------------------
Year ended 12/31/99 51.93% 51.18% 51.33% 52.81%
Year ended 12/31/98 9.37% 8.83% N/A 9.80%
================================================================================
See important fund and index disclosures inside front cover.
AIM GLOBAL TRENDS FUND
2
<PAGE> 5
ANNUAL REPORT / MANAGERS' OVERVIEW
[GRAPHIC]
PORTFOLIO COMPOSITION
As of 12/31/99, based on total net assets
<TABLE>
<CAPTION>
=====================================================================================================================
TOP 10 HOLDINGS TOP 10 COUNTRIES TOP 10 INDUSTRIES
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1. Furukawa Electric Co., Ltd. 4.62% 1. United States 57.51% 1. Telephone 8.93
(The)(Japan)
2. Nokia Oyj (Finland) 3.72 2. Japan 8.02 2. Communications Equipment 8.67
3. Cisco Systems, Inc. 2.47 3. Canada 7.17 3. Computers 8.33
4. AT&T Corp.-Liberty Media 2.46 (Software & Services)
Group-Class A 4. France 5.41 4. Electronics (Semiconductors) 5.47
5. Nippon Telegraph & 2.34 5. Finland 3.72 5. Metal Fabricators 4.62
Telephone Corp. (Japan)
6. Lam Research Corp. 2.33 6. United Kingdom 2.75 6. Broadcasting 3.69
7. BCE Inc. (Canada) 2.29 (Television, Radio & Cable)
8. Computer Associates 2.01 7. Netherlands 2.33 7. Financial (Diversified) 3.32
International, Inc. 8. South Korea 1.72 8. Metals Mining 3.07
9. Tyco International Ltd. 1.97 9. Ireland 1.69 9. Manufacturing (Diversified) 2.95
10. Oracle Corp. 1.82 10. Belgium 1.53 10. Telecommunications 2.87
(Cellular/Wireless)
The fund's portfolio is subject to change, and there is no assurance that the
fund will continue to hold any particular security.
=====================================================================================================================
</TABLE>
change in investment strategy approved by shareholders in August 1999. The fund
now directly invests in U.S. and foreign stocks. Before this change, the fund
invested in six AIM Global Theme Funds, allocating its assets according to
industry weightings in the MSCI AC World Index. With the change in investment
strategy, fund managers are no longer tied to each sector's relative proportion
in the index. This flexibility allows the fund to concentrate on the
best-performing growth stocks, regardless of sectors or countries.
WHAT STOCKS DID YOU LIKE?
Most of our top holdings were technology or telecommunications firms based in
the United States or Japan. Computers, e-commerce and the Internet are changing
the way the world communicates and conducts business, and fund managers sought
to capitalize on this revolution. Many of our holdings are involved in building
the infrastructure of the Internet.
o Furukawa Electric is a Japanese manufacturer of fiber-optic cable used in
high-speed data transmissions.
o Nokia, the Finnish cellular-phone maker, has maintained its leading
position in the wireless market and is a pioneer in delivering Internet
content over cellular phones.
o U.S.-based Cisco is the leading maker of routers, switches and other
equipment used to create Internet connections.
We also invested in the world's leading telecommunications companies, AT&T
and Nippon Telegraph & Telephone. The telecommunications services they provide
help form the backbone of the Internet.
WHAT IS YOUR OUTLOOK FOR GLOBAL FINANCIAL MARKETS?
We believe we have reached a period of synchronized global expansion. The United
States drove the markets for the past two years, but with Europe and Asia
gaining strength, we believe growth in the future will be more balanced.
We're encouraged by signs of economic growth in Japan, but much-needed
corporate restructuring has yet to occur on a wide scale. However, restructuring
at major Japanese companies indicates that key corporations are ready to cut
costs and to become more efficient.
In Europe, we expect positive economic growth, stronger corporate earnings
and higher consumer demand. In fact, if European growth continues on its current
path, Europe stands poised to surpass the United States in economic growth
during 2000.
------------------------------------
WE BELIEVE WE HAVE REACHED
A PERIOD OF SYNCHRONIZED
GLOBAL EXPANSION.
------------------------------------
See important fund and index disclosures inside front cover.
AIM GLOBAL TRENDS FUND
3
<PAGE> 6
ANNUAL REPORT / PERFORMANCE HISTORY
YOUR FUND'S LONG-TERM PERFORMANCE
RESULTS OF A $10,000 INVESTMENT
AIM GLOBAL TRENDS FUND VS. BENCHMARK INDEX
9/15/97-12/31/99
[GRAPH]
in thousands
<TABLE>
<CAPTION>
=============================================================================================
AIM GLOBAL TRENDS, AIM GLOBAL TRENDS, MSCI ALL COUNTRY, AIM GLOBAL TRENDS,
CLASS A SHARES CLASS B SHARES WORLD INDEX ADVISOR CLASS SHARES
- ---------------------------------------------------------------------------------------------
<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
12/97 9,269 9,717 10,143 9,749
3/98 10,298 10,778 11,549 10,839
6/98 10,333 10,796 11,622 10,885
9/98 8,485 8,866 10,196 8,952
12/98 10,138 10,574 12,345 10,704
3/99 10,660 11,102 12,846 11,274
6/99 11,545 12,011 13,606 12,228
9/99 11,474 11,927 13,386 12,172
12/99 15,403 15,383 15,717 16,357
Source: Lipper, Inc.
Past performance cannot guarantee comparable future results.
=============================================================================================
</TABLE>
MARKET VOLATILITY CAN SIGNIFICANTLY IMPACT SHORT-TERM PERFORMANCE. RESULTS OF AN
INVESTMENT MADE TODAY MAY DIFFER SUBSTANTIALLY FROM THE HISTORICAL PERFORMANCE
SHOWN.
ABOUT THIS CHART
The chart compares the performance of your fund's Class A, Class B and Advisor
Class shares to that of a benchmark index. It is intended to give you a general
idea of how your fund performed compared to this index over the period
9/15/97-12/31/99. (Please note that the index results are for the period
8/31/97-12/31/99.)
It is important to understand the differences between your fund and an
index. An index measures the 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. 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.
AVERAGE ANNUAL TOTAL RETURNS
As of 12/31/99, including sales charges
================================================================================
CLASS A SHARES
Inception (9/15/97) 20.73%
1 year 44.71*
* 51.93% excluding sales charges
CLASS B SHARES
Inception (9/15/97) 22.33%
1 year 46.18
*51.18% excluding CDSC
CLASS C SHARES
Inception (1/2/98) 28.43%
1 year 50.33*
* 51.33% excluding CDSC
ADVISOR CLASS SHARES
Inception (9/15/97) 23.95%
1 year 52.86
================================================================================
Your fund's total return includes sales charges, expenses and management fees.
The performance of the fund's Class C shares will differ from that of its Class
A, Class B and Advisor Class shares due to differing fees and expenses. For fund
performance calculations and descriptions of the indexes cited on this page,
please see the inside front cover.
AIM GLOBAL TRENDS FUND
4
<PAGE> 7
ANNUAL REPORT / FOR CONSIDERATION
EVERY INVESTMENT PORTFOLIO
CAN BENEFIT FROM REGULAR CHECKUPS
[PHOTO]
CONSULTATION CHECKLIST
WHAT TO BRING:
o A list of all your assets, including real estate, life insurance, stocks
and bonds, and mutual funds
o A list of all your expenses, including likely future expenses
o A timetable of your financial goals, including an estimate of when you want
to retire
WHAT TO ASK:
o How can I estimate what my goals will cost?
o How much money do I need to invest, and how often?
o How many different kinds of investments do I need?
o How do I determine my risk tolerance?
o What are the possible risks of the investments you've suggested?
o What effect will these investments have on my taxes? What forms will I need
to file?
o How often do I need to revise my plan?
o How will I know how my investments are doing?
o How can I make changes to my plan?
o What kinds of communication will I get from you?
o Where can I get more information on what we've talked about?
o What do I need to do after this meeting?
Once a year, you and your financial advisor should meet to look ahead, review
investments and take another look at your goals, according to the Forum for
Investor Advice, a nonprofit association that educates investors about the role
and value of professional financial advisors.
Financial advisors can help you with every kind of financial goal, whether
that's saving up for a house, eliminating debt or saving for a comfortable
retirement. An advisor who knows you well and understands your needs can make
all the difference in your financial future. He or she can
o evaluate your total financial situation and help you formulate a
comprehensive financial plan;
o explain different types of investments, as well as their potential risks
and benefits;
o suggest an investment portfolio that can handle changing market conditions;
and
o help you make clear-headed decisions during market volatility.
GETTING THE MOST FROM YOUR PLANNING SESSION
Your advisor needs a complete picture of your financial status to prepare a
workable plan. Come prepared to talk about your financial situation, your goals
and your feelings about risk. And don't be afraid to ask lots of questions. Good
financial advisors take investor education seriously, so take advantage of their
store of knowledge and materials.
The Forum for Investor Advice suggests that you discuss the following with
your financial advisor:
o changes in the financial markets
o changes in your goals and current situation
o retirement plans
o estate planning
o outlook for the markets
Take along our checklist (left) to get you started on the path to good
planning. And don't forget to stay in touch. Maintaining regular contact with
your financial advisor can keep you moving toward your goals, especially when
your life circumstances or financial needs change.
AIM GLOBAL TRENDS FUND
5
<PAGE> 8
SCHEDULE OF INVESTMENTS
December 31, 1999
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
DOMESTIC COMMON STOCKS-57.51%
BIOTECHNOLOGY-1.46%
Amgen Inc.(a) 12,400 $ 744,775
- --------------------------------------------------------------
BROADCASTING (TELEVISION, RADIO &
CABLE)-2.46%
AT&T Corp.-Liberty Media Group-Class
A(a) 22,200 1,259,850
- --------------------------------------------------------------
COMMUNICATIONS EQUIPMENT-3.97%
ADC Telecommunications, Inc.(a) 3,450 250,341
- --------------------------------------------------------------
Comverse Technology, Inc.(a) 4,200 607,950
- --------------------------------------------------------------
Lucent Technologies Inc. 8,800 658,350
- --------------------------------------------------------------
Motorola, Inc. 3,500 515,375
- --------------------------------------------------------------
2,032,016
- --------------------------------------------------------------
COMPUTERS (HARDWARE)-1.15%
Apple Computer, Inc.(a) 3,400 349,562
- --------------------------------------------------------------
Sun Microsystems, Inc.(a) 3,100 240,056
- --------------------------------------------------------------
589,618
- --------------------------------------------------------------
COMPUTERS (NETWORKING)-2.47%
Cisco Systems, Inc.(a) 11,800 1,264,075
- --------------------------------------------------------------
COMPUTERS (PERIPHERALS)-1.29%
Lexmark International Group,
Inc.-Class A(a) 7,300 660,650
- --------------------------------------------------------------
COMPUTERS (SOFTWARE & SERVICES)-6.69%
Adobe Systems, Inc. 6,000 403,500
- --------------------------------------------------------------
America Online, Inc.(a) 5,700 429,994
- --------------------------------------------------------------
Computer Associates International,
Inc. 14,700 1,028,081
- --------------------------------------------------------------
J.D. Edwards & Co.(a) 9,500 283,813
- --------------------------------------------------------------
Oracle Corp.(a) 8,300 930,119
- --------------------------------------------------------------
Synopsys, Inc.(a) 3,650 243,637
- --------------------------------------------------------------
Digital Impact, Inc.(a) 2,100 105,262
- --------------------------------------------------------------
3,424,406
- --------------------------------------------------------------
CONSUMER FINANCE-1.49%
Providian Financial Corp. 8,400 764,925
- --------------------------------------------------------------
ELECTRICAL EQUIPMENT-0.77%
Sawtek, Inc.(a) 5,900 392,719
- --------------------------------------------------------------
ELECTRONICS (COMPONENT
DISTRIBUTORS)-2.07%
Agilent Technologies, Inc.(a) 6,300 487,069
- --------------------------------------------------------------
CTS Corp. 7,600 572,850
- --------------------------------------------------------------
1,059,919
- --------------------------------------------------------------
ELECTRONICS (DEFENSE)-0.54%
General Motors Corp.-Class H(a) 2,900 278,400
- --------------------------------------------------------------
ELECTRONICS (SEMICONDUCTORS)-4.78%
Altera Corp.(a) 6,700 332,069
- --------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
ELECTRONICS (SEMICONDUCTORS)-(CONTINUED)
Flextronics International Ltd.(a) 10,600 $ 487,600
- --------------------------------------------------------------
Integrated Device Technology, Inc.(a) 9,000 261,000
- --------------------------------------------------------------
Intel Corp. 3,600 296,325
- --------------------------------------------------------------
Microchip Technology, Inc.(a) 6,500 444,844
- --------------------------------------------------------------
National Semiconductor Corp.(a) 10,200 436,687
- --------------------------------------------------------------
Rambus Inc.(a) 2,800 188,825
- --------------------------------------------------------------
2,447,350
- --------------------------------------------------------------
EQUIPMENT (SEMICONDUCTOR)-2.33%
Lam Research Corp.(a) 10,700 1,193,719
- --------------------------------------------------------------
FINANCIAL (DIVERSIFIED)-1.79%
American Express Co. 3,000 498,750
- --------------------------------------------------------------
Citigroup Inc. 7,500 416,719
- --------------------------------------------------------------
915,469
- --------------------------------------------------------------
GAMING, LOTTERY & PARIMUTUEL
COMPANIES-0.25%
Isle of Capri Casinos, Inc.(a) 9,800 129,237
- --------------------------------------------------------------
HEALTH CARE (DIVERSIFIED)-2.24%
Allergan, Inc. 9,000 447,750
- --------------------------------------------------------------
Warner-Lambert Co. 8,500 696,469
- --------------------------------------------------------------
1,144,219
- --------------------------------------------------------------
HEALTH CARE (MANAGED CARE)-0.96%
United Healthcare Corp. 9,200 488,750
- --------------------------------------------------------------
HEALTH CARE (MEDICAL PRODUCTS &
SUPPLIES)-1.08%
VISX, Inc.(a) 10,700 553,725
- --------------------------------------------------------------
INVESTMENT BANKING/BROKERAGE-1.43%
Goldman Sachs Group, Inc. (The) 2,900 273,144
- --------------------------------------------------------------
Morgan Stanley Dean Witter & Co. 3,200 456,800
- --------------------------------------------------------------
729,944
- --------------------------------------------------------------
MANUFACTURING (DIVERSIFIED)-2.95%
Tyco International Ltd. 26,000 1,010,750
- --------------------------------------------------------------
United Technologies Corp. 7,700 500,500
- --------------------------------------------------------------
1,511,250
- --------------------------------------------------------------
OIL & GAS (DRILLING &
EQUIPMENT)-0.76%
BJ Services Co.(a) 9,300 388,856
- --------------------------------------------------------------
OIL & GAS (EXPLORATION &
PRODUCTION)-0.27%
Union Pacific Resources Group, Inc. 11,000 140,250
- --------------------------------------------------------------
RETAIL (BUILDING SUPPLIES)-1.65%
Home Depot, Inc. (The) 7,200 493,650
- --------------------------------------------------------------
</TABLE>
6
<PAGE> 9
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
RETAIL (BUILDING SUPPLIES)-(CONTINUED)
Lowe's Cos., Inc. 5,900 $ 352,525
- --------------------------------------------------------------
846,175
- --------------------------------------------------------------
RETAIL (COMPUTERS & ELECTRONICS)-1.63%
InterTAN, Inc.(a) 16,700 436,287
- --------------------------------------------------------------
Tandy Corp. 8,100 398,419
- --------------------------------------------------------------
834,706
- --------------------------------------------------------------
RETAIL (DISCOUNTERS)-0.92%
Wal-Mart Stores, Inc. 6,800 470,050
- --------------------------------------------------------------
RETAIL (GENERAL MERCHANDISE)-0.89%
Dayton Hudson Corp. 6,200 455,312
- --------------------------------------------------------------
RETAIL (SPECIALTY)-0.30%
Sonic Automotive, Inc.(a) 15,700 153,075
- --------------------------------------------------------------
SERVICES (ADVERTISING/MARKETING)-2.62%
Lamar Advertising Co.(a) 4,000 242,250
- --------------------------------------------------------------
Metris Companies, Inc. 13,400 478,213
- --------------------------------------------------------------
Young & Rubicam Inc. 8,800 622,600
- --------------------------------------------------------------
1,343,063
- --------------------------------------------------------------
SERVICES (COMPUTER SYSTEMS)-0.45%
Sykes Enterprises, Inc.(a) 5,300 232,538
- --------------------------------------------------------------
TELECOMMUNICATIONS-0.51%
Level 3 Communications, Inc.(a) 3,200 262,000
- --------------------------------------------------------------
TELECOMMUNICATIONS (CELLULAR/
WIRELESS)-0.94%
Sprint Corp.(a) 4,700 481,750
- --------------------------------------------------------------
TELECOMMUNICATIONS (LONG DISTANCE)-1.14%
Global TeleSystems Group, Inc.(a) 16,800 581,700
- --------------------------------------------------------------
TELEPHONE-3.26%
CTC Communications Group, Inc.(a) 12,300 479,892
- --------------------------------------------------------------
Intermedia Communications Inc.(a) 8,600 333,788
- --------------------------------------------------------------
NTL Inc.(a) 3,800 474,050
- --------------------------------------------------------------
Qwest Communications International,
Inc.(a) 8,900 382,700
- --------------------------------------------------------------
1,670,430
- --------------------------------------------------------------
Total Domestic Common Stocks
(Cost $24,765,335) 29,444,921
- --------------------------------------------------------------
FOREIGN STOCKS-36.72%
BELGIUM-1.53%
Fortis (B) (Financial-Diversified)(a) 21,700 782,308
- --------------------------------------------------------------
CANADA-7.17%
Alcan Aluminum Ltd. (Aluminum) 18,500 761,380
- --------------------------------------------------------------
BCE Inc. (Telephone) 12,900 1,172,199
- --------------------------------------------------------------
Inco Ltd. (Metals Mining)(a) 37,500 876,897
- --------------------------------------------------------------
Rogers Communications, Inc.-Class B
(Telecommunications-
Cellular/Wireless)(a) 18,400 450,024
- --------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
CANADA-(CONTINUED)
Teleglobe, Inc. (Telecommunications) 18,100 $ 412,589
- --------------------------------------------------------------
3,673,089
- --------------------------------------------------------------
FINLAND-3.72%
Nokia Oyj (Communications Equipment) 10,500 1,902,191
- --------------------------------------------------------------
FRANCE-5.41%
Alcatel Alsthom (Communications
Equipment) 2,200 504,835
- --------------------------------------------------------------
Banque Nationale de Paris
(Banks-Major Regional) 3,750 345,716
- --------------------------------------------------------------
Bouygues Offshore S.A. (Engineering &
Construction) 4,444 166,830
- --------------------------------------------------------------
Renault S.A. (Automobiles) 12,300 592,475
- --------------------------------------------------------------
SEITA (Tobacco) 4,000 181,161
- --------------------------------------------------------------
Societe Generale (Banks-Major
Regional) 1,500 348,735
- --------------------------------------------------------------
Societe Television Francaise 1
(Broadcasting- Television, Radio &
Cable) 1,200 628,025
- --------------------------------------------------------------
2,767,777
- --------------------------------------------------------------
GERMANY-0.69%
Epcos A.G. (Electronics-Component
Distributors)(a) 4,700 352,408
- --------------------------------------------------------------
IRELAND-1.69%
CRH PLC (Construction-Cement &
Aggregates) 23,342 500,391
- --------------------------------------------------------------
Esat Telecom Group PLC-ADR
(Telecommunications-Long Distance)(a) 4,000 366,000
- --------------------------------------------------------------
866,391
- --------------------------------------------------------------
JAPAN-8.02%
Furukawa Electric Co., Ltd. (The)
(Metal Fabricators) 156,000 2,367,687
- --------------------------------------------------------------
Nippon Telegraph & Telephone Corp.
(Telephone) 70 1,199,510
- --------------------------------------------------------------
NTT Mobile Communications Network, Inc.
(Telecommunications-Cellular/Wireless) 14 538,752
- --------------------------------------------------------------
4,105,949
- --------------------------------------------------------------
MEXICO-1.03%
Telefonos de Mexico S.A.-ADR
(Telephone) 4,700 528,750
- --------------------------------------------------------------
NETHERLANDS-2.33%
ASM Lithography Holding N.V.
(Electronics- Semiconductors)(a) 3,100 352,625
- --------------------------------------------------------------
Equant N.V.-New York Shares
(Computers- Software & Services)(a) 2,300 257,600
- --------------------------------------------------------------
Getronics N.V. (Computers-Software &
Services) 7,300 581,889
- --------------------------------------------------------------
1,192,114
- --------------------------------------------------------------
SINGAPORE-0.66%
NatSteel Ltd. (Iron & Steel) 170,000 338,877
- --------------------------------------------------------------
SOUTH KOREA-1.72%
Pohang Iron & Steel Co. Ltd.-ADR
(Iron & Steel) 25,200 882,000
- --------------------------------------------------------------
</TABLE>
7
<PAGE> 10
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
UNITED KINGDOM-2.75%
BP Amoco PLC-ADR (Oil & Gas-Refining
& Marketing) 4,400 $ 260,975
- --------------------------------------------------------------
Centrica PLC (Oil & Gas-Exploration &
Production) 160,000 453,408
- --------------------------------------------------------------
Rio Tinto PLC (Metals Mining) 28,800 695,225
- --------------------------------------------------------------
1,409,608
- --------------------------------------------------------------
Total Foreign Stocks (Cost
$13,783,164) 18,801,462
- --------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
MONEY MARKET FUNDS-3.96%
STIC Liquid Assets Portfolio(b) 1,014,954 $ 1,014,954
- --------------------------------------------------------------
STIC Prime Portfolio(b) 1,014,954 1,014,954
- --------------------------------------------------------------
Total Money Market Funds (Cost
$2,029,908) 2,029,908
- --------------------------------------------------------------
TOTAL INVESTMENTS-98.19% (Cost
$40,578,407) 50,276,291
- --------------------------------------------------------------
OTHER ASSETS LESS LIABILITIES-1.81% 925,385
- --------------------------------------------------------------
NET ASSETS-100.00% $51,201,676
==============================================================
</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
December 31, 1999
<TABLE>
<S> <C>
ASSETS:
Investments, at market value (cost
$40,578,407) $50,276,291
- ---------------------------------------------------------
Foreign currencies, at value (cost
$1,378,868) 1,385,902
- ---------------------------------------------------------
Receivables for:
Investments sold 62,727
- ---------------------------------------------------------
Fund shares sold 187,666
- ---------------------------------------------------------
Dividends and interest 46,551
- ---------------------------------------------------------
Other assets 2,753
- ---------------------------------------------------------
Total assets 51,961,890
- ---------------------------------------------------------
LIABILITIES:
Payables for:
Investments purchased 527,960
- ---------------------------------------------------------
Fund shares reacquired 116,126
- ---------------------------------------------------------
Accrued distribution fees 91,969
- ---------------------------------------------------------
Accrued transfer agent fees 7,175
- ---------------------------------------------------------
Accrued operating expenses 16,984
- ---------------------------------------------------------
Total liabilities 760,214
- ---------------------------------------------------------
NET ASSETS APPLICABLE TO SHARES OUTSTANDING $51,201,676
=========================================================
NET ASSETS:
Class A $20,594,824
=========================================================
Class B $29,118,008
=========================================================
Class C $ 499,576
=========================================================
Advisor Class $ 989,268
=========================================================
SHARES OUTSTANDING:
Class A 1,305,467
=========================================================
Class B 1,863,828
=========================================================
Class C 31,987
=========================================================
Advisor Class 62,532
=========================================================
Class A:
Net asset value and redemption price per
share $ 15.78
- ---------------------------------------------------------
Offering price per share:
(Net asset value of $15.78 divided
by 95.25%) $ 16.57
=========================================================
Class B:
Net asset value and offering price per
share $ 15.62
=========================================================
Class C:
Net asset value and offering price per
share $ 15.62
=========================================================
Advisor Class:
Net asset value, redemption and offering
price per share $ 15.82
=========================================================
</TABLE>
STATEMENT OF OPERATIONS
For the year ended December 31, 1999
<TABLE>
<S> <C>
INVESTMENT INCOME:
Interest $ 102,225
- ---------------------------------------------------------
Dividends (net of $10,848 foreign
withholding tax) 118,927
- ---------------------------------------------------------
Total investment income 221,152
- ---------------------------------------------------------
EXPENSES:
Advisory and administrative fees 142,786
- ---------------------------------------------------------
Accounting services fees 17,100
- ---------------------------------------------------------
Custodian fees 11,148
- ---------------------------------------------------------
Distribution fees -- Class A 83,176
- ---------------------------------------------------------
Distribution fees -- Class B 238,049
- ---------------------------------------------------------
Distribution fees -- Class C 2,969
- ---------------------------------------------------------
Printing 39,597
- ---------------------------------------------------------
Trustees' fees 3,941
- ---------------------------------------------------------
Transfer Agent fees 28,880
- ---------------------------------------------------------
Other 29,846
- ---------------------------------------------------------
Total expenses 597,492
- ---------------------------------------------------------
Less: Fees waived and reimbursed by advisor (52,643)
- ---------------------------------------------------------
Expenses paid indirectly (141)
- ---------------------------------------------------------
Net expenses 544,708
- ---------------------------------------------------------
Net investment income (loss) (323,556)
- ---------------------------------------------------------
REALIZED AND UNREALIZED GAIN FROM INVESTMENT
SECURITIES AND FOREIGN CURRENCIES:
Net realized gain (loss) from:
Investment securities 10,025,846
- ---------------------------------------------------------
Foreign currencies (29,114)
=========================================================
9,996,732
=========================================================
Net unrealized appreciation of:
Investment securities 8,399,433
- ---------------------------------------------------------
Foreign currencies 6,812
=========================================================
8,406,245
=========================================================
Net gain from investment securities and
foreign currencies 18,402,977
=========================================================
Net increase in net assets resulting from
operations $18,079,421
=========================================================
</TABLE>
See Notes to Financial Statements.
9
<PAGE> 12
STATEMENT OF CHANGES IN NET ASSETS
For the years ended December 31, 1999 and 1998
<TABLE>
<CAPTION>
1999 1998
----------- -----------
<S> <C> <C>
OPERATIONS:
Net investment income (loss) $ (323,556) $ (226,913)
- ------------------------------------------------------------------------------------------
Net realized gain (loss) from investment securities and
foreign currencies 9,996,732 (1,162,416)
- ------------------------------------------------------------------------------------------
Change in net unrealized appreciation of investment
securities and foreign currencies 8,406,245 4,092,846
- ------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 18,079,421 2,703,517
- ------------------------------------------------------------------------------------------
Distributions to shareholders from net investment income:
Class A -- (26,011)
- ------------------------------------------------------------------------------------------
Advisor Class (2,325) (5,762)
- ------------------------------------------------------------------------------------------
Distributions to shareholders from net realized gains on
investment securities:
Class A (1,767,423) (219,151)
- ------------------------------------------------------------------------------------------
Class B (2,505,025) (311,471)
- ------------------------------------------------------------------------------------------
Class C (39,159) (2,998)
- ------------------------------------------------------------------------------------------
Advisor Class (82,148) (9,683)
- ------------------------------------------------------------------------------------------
Share transactions-net:
Class A (2,708,897) 1,720,631
- ------------------------------------------------------------------------------------------
Class B (4,238,502) 5,216,553
- ------------------------------------------------------------------------------------------
Class C 143,802 252,965
- ------------------------------------------------------------------------------------------
Advisor Class (125,191) (440,481)
- ------------------------------------------------------------------------------------------
Net increase in net assets 6,754,553 8,878,109
- ------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 44,447,123 35,569,014
- ------------------------------------------------------------------------------------------
End of period $51,201,676 $44,447,123
==========================================================================================
NET ASSETS CONSIST OF:
Shares of beneficial interest $37,900,018 $44,578,806
- ------------------------------------------------------------------------------------------
Undistributed net investment income (loss) -- 2,313
- ------------------------------------------------------------------------------------------
Undistributed net realized gain (loss) from investment
securities and foreign currencies 3,596,963 (1,432,446)
- ------------------------------------------------------------------------------------------
Unrealized appreciation of investment securities and
foreign currencies 9,704,695 1,298,450
- ------------------------------------------------------------------------------------------
$51,201,676 $44,447,123
==========================================================================================
</TABLE>
See Notes to Financial Statements.
10
<PAGE> 13
NOTES TO FINANCIAL STATEMENTS
December 31, 1999
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.
On June 15, 1999, the Board of Trustees unanimously approved a change to the
fundamental investment restrictions (the "restructuring") of the Fund whereby
the Fund which had operated as a "fund of funds" investing in the 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 and Technology Fund (collectively, the "Underlying Theme
Funds") would directly invest primarily in equity securities of U.S. and foreign
issuers in any or all of the global industry sectors in which the Underlying
Theme Funds invested. On August 25, 1999, a Special Meeting of Shareholders
approved the restructuring which was effective August 27, 1999.
The Fund consists of four different classes of shares: Class A shares, Class B
shares, Class C shares and Advisor Class 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 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 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 trading 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 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 as earned from settlement date and is recorded on
the accrual basis. Dividend income is recorded on the ex-dividend date. On
December 31, 1999, undistributed net investment income was increased by
$323,568, undistributed net realized gains decreased by $573,568 and paid-in
capital increased by $250,000 as a result of differing book/tax treatment of
foreign currency transactions and other reclassifications. Net assets of the
Fund were unaffected by the reclassifications.
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 of fund share 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
11
<PAGE> 14
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 that 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.
F. Foreign Currency Contracts -- A foreign currency contract is an obligation to
purchase or sell a specific currency for an agreed-upon price at a future
date. The Fund may enter into a foreign currency contract to attempt to
minimize the risk to the Fund from adverse changes in the relationship
between currencies. The Fund may also enter into a foreign currency contract
for the purchase or sale of a security denominated in a foreign currency in
order to "lock in" the U.S. dollar price of that security. The Fund could be
exposed to risk if counterparties to the contracts are unable to meet the
terms of their contracts or if the value of the foreign currency changes
unfavorably.
G. 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.
INVESCO Asset Management Limited is the Fund's sub-advisor and
sub-administrator. Effective August 27, 1999 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 and
extraordinary expenses) to the maximum annual rate of 2.00%, 2.50%, 2.50% and
1.50% of the average daily net assets of the Fund's Class A, Class B, Class C
and Advisor Class shares, respectively, until June 30, 2000. During the year
ended December 31, 1999, AIM waived fees of $41,316 and reimbursed expenses of
$11,327.
Prior to the restructuring effective August 27, 1999, AIM was the Fund's
investment manager and administrator. AIM as investment manager and
administrator beared all expenses of the Fund (other than expenses reimbursed
pursuant to the Fund's 12b-1 plans of distribution and non-recurring and
extraordinary expenses of the Fund). The Fund as a shareholder in the Underlying
Theme Funds, indirectly beared its proportionate share of any investment
management and other expenses paid by the Underlying Theme Funds. AIM also had
undertaken to limit the Underlying Theme Funds' expenses (exclusive of brokerage
commissions, taxes, interest and extraordinary expenses) to a maximum annual
rate of 1.50% of the average daily net assets of the Underlying Theme Funds'
Advisor Class shares.
Effective July 1, 1999, the Trust entered into a master administrative
services agreement with AIM. The Fund, pursuant to the 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 year ended
December 31, 1999, AIM was paid $17,100 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 year ended December 31, 1999, AFS was
paid $28,880 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
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 year ended December 31, 1999, the Class A,
Class B and Class C shares paid AIM Distributors $83,176, $238,049 and $2,969,
respectively, as compensation under the Plans.
AIM Distributors received commissions of $5,165 from sales of the Class A
shares of the Fund during the year ended December 31, 1999. 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 year ended December 31, 1999,
AIM Distributors received $1,175 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
During the year ended December 31, 1999, the Fund received reductions in
custodian fees of $141 under expense offset arrangements. The effect of the
above arrangements resulted in a reduction of the Fund's total expenses of $141
during the year ended December 31, 1999.
12
<PAGE> 15
NOTE 4-BANK BORROWINGS
The Fund is a participant in a committed line of credit facility with a
syndicate administered by The Chase Manhattan Bank. 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 year
ended December 31, 1999, 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. Prior to May 28, 1999, the Fund, along with certain
other funds advised and/or administered by AIM, had a line of credit with
BankBoston and State Street Bank & Trust Company. The arrangements with the
banks allowed the Fund and certain other funds to borrow, on a first come, first
served basis, an aggregate maximum amount of $250,000,000.
NOTE 5-INVESTMENT SECURITIES
The aggregate amount of investment securities (other than short-term securities)
purchased and sold by the Fund during the year ended December 31, 1999 was
$58,521,511 and $73,424,249, respectively.
The amount of unrealized appreciation of investment securities, for tax
purposes, as of December 31, 1999 was as follows:
<TABLE>
<S> <C>
Aggregate unrealized appreciation of
investment securities $10,694,077
- ---------------------------------------------------------
Aggregate unrealized (depreciation) of
investment securities (996,193)
- ---------------------------------------------------------
Net unrealized appreciation of investment
securities $ 9,697,884
=========================================================
</TABLE>
Investments have the same cost for tax and financial
statement purposes.
NOTE 6-SHARE INFORMATION
Changes in shares outstanding during the years ended December 31, 1999 and 1998
were as follows:
<TABLE>
<CAPTION>
1999 1998
---------------------- -----------------------
SHARES AMOUNT SHARES AMOUNT
-------- ----------- --------- -----------
<S> <C> <C> <C> <C>
Sold:
Class A 200,188 $ 2,730,032 952,323 $10,681,667
- --------------------------------------------------------------------------------------------------------------
Class B 181,716 2,419,036 1,302,574 14,551,138
- --------------------------------------------------------------------------------------------------------------
Class C 14,063 186,601 35,723 397,022
- --------------------------------------------------------------------------------------------------------------
Advisor Class 17,792 225,871 29,946 324,974
- --------------------------------------------------------------------------------------------------------------
Issued as reinvestment of dividends:
Class A 118,185 1,690,082 22,552 245,281
- --------------------------------------------------------------------------------------------------------------
Class B 160,713 2,277,307 26,664 289,152
- --------------------------------------------------------------------------------------------------------------
Class C 2,695 38,132 265 2,876
- --------------------------------------------------------------------------------------------------------------
Advisor Class 5,723 81,816 1,418 15,444
- --------------------------------------------------------------------------------------------------------------
Reacquired:
Class A (568,367) (7,129,011) (843,563) (9,206,317)
- --------------------------------------------------------------------------------------------------------------
Class B (719,011) (8,934,845) (894,609) (9,623,737)
- --------------------------------------------------------------------------------------------------------------
Class C (6,636) (80,931) (14,123) (146,933)
- --------------------------------------------------------------------------------------------------------------
Advisor Class (32,673) (432,878) (76,261) (780,899)
- --------------------------------------------------------------------------------------------------------------
(625,612) $(6,928,788) 542,909 $ 6,749,668
==============================================================================================================
</TABLE>
13
<PAGE> 16
NOTE 7-FINANCIAL HIGHLIGHTS
Shown below are the financial highlights for a share of Class A, Class B and
Advisor Class shares outstanding during each of the years in the two-year period
ended December 31, 1999 and the period September 15, 1997 (date sales commenced)
through December 31, 1997, and for a share of Class C outstanding during each of
the years in the two-year period ended December 31, 1999.
<TABLE>
<CAPTION>
Class A
------------------------------
1999(a) 1998(a) 1997(a)
------- ------- -------
<S> <C> <C> <C>
Net asset value, beginning of period $ 11.46 $ 10.63 $ 11.43
- ------------------------------------------------------------ ------- ------- -------
Income from investment operations:
Net investment income (loss) (0.06) (0.02) (0.01)
- ------------------------------------------------------------ ------- ------- -------
Net realized and unrealized gain (loss) on investments 5.86 1.01 (0.31)
- ------------------------------------------------------------ ------- ------- -------
Net increase (decrease) from investment operations 5.80 0.99 (0.32)
- ------------------------------------------------------------ ------- ------- -------
Distributions to shareholders:
From net investment income -- (0.02) --
- ------------------------------------------------------------ ------- ------- -------
From net realized gains (1.48) (0.14) --
- ------------------------------------------------------------ ------- ------- -------
In excess of net investment income -- -- (0.48)
- ------------------------------------------------------------ ------- ------- -------
Total distributions (1.48) (0.16) (0.48)
- ------------------------------------------------------------ ------- ------- -------
Net asset value, end of period $ 15.78 $ 11.46 $ 10.63
============================================================ ======= ======= =======
Total return(b) 51.93% 9.37% (2.68)%
============================================================ ======= ======= =======
Ratios and supplemental data:
Net assets, end of period (in 000s) $20,595 $17,822 $15,145
============================================================ ======= ======= =======
Ratio of expenses to average net assets:
With fee waivers 1.03%(c) 0.50% 0.50%(d)
- ------------------------------------------------------------ ------- ------- -------
Without fee waivers 1.16%(c) 0.50% 0.50%(d)
============================================================ ======= ======= =======
Ratio of net investment income (loss) to average net assets:
With fee waivers (0.50)%(c) (0.21)% (0.35)%(d)
- ------------------------------------------------------------ ------- ------- -------
Without fee waivers (0.63)%(c) (0.21)% (0.35)%(d)
============================================================ ======= ======= =======
Portfolio turnover rate 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 based on average net assets of $16,635,251.
(d) Annualized.
<TABLE>
<CAPTION>
Class B Class C Advisor Class
----------------------------- ------------------- ---------------------------
1999(a) 1998(a) 1997(a) 1999(a) 1998(a) 1999(a) 1998(a) 1997(a)
------- ------- ------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 11.41 $ 10.62 $ 11.43 $11.40 $10.62 $11.45 $10.64 $11.43
- ------------------------------------------ ------- ------- ------- ------ ------ ------ ------ ------
Income from investment operations:
Net investment income (loss) (0.13) (0.07) (0.02) (0.13) (0.08) -- 0.03 0.01
- ------------------------------------------ ------- ------- ------- ------ ------ ------ ------ ------
Net realized and unrealized gain (loss)
on investment 5.82 1.00 (0.32) 5.83 1.00 5.89 1.00 (0.31)
- ------------------------------------------ ------- ------- ------- ------ ------ ------ ------ ------
Net increase (decrease) from
investment operations 5.69 0.93 (0.34) 5.70 0.92 5.89 1.03 (0.30)
- ------------------------------------------ ------- ------- ------- ------ ------ ------ ------ ------
Distributions to shareholders:
From net investment income -- -- -- -- -- (0.04) (0.08) --
- ------------------------------------------ ------- ------- ------- ------ ------ ------ ------ ------
From net realized gains (1.48) (0.14) -- (1.48) (0.14) (1.48) (0.14) --
- ------------------------------------------ ------- ------- ------- ------ ------ ------ ------ ------
In excess of net investment income -- -- (0.47) -- -- -- -- (0.49)
- ------------------------------------------ ------- ------- ------- ------ ------ ------ ------ ------
Total distributions (1.48) (0.14) (0.47) (1.48) (0.14) (1.52) (0.22) (0.49)
- ------------------------------------------ ------- ------- ------- ------ ------ ------ ------ ------
Net asset value, end of period $ 15.62 $ 11.41 $ 10.62 $15.62 $11.40 $15.82 $11.45 $10.64
========================================== ======= ======= ======= ====== ====== ====== ====== ======
Total return(b) 51.18% 8.83% (2.83)% 51.33% 8.94% 52.81% 9.80% (2.51)%
========================================== ======= ======= ======= ====== ====== ====== ====== ======
Ratios and supplemental data:
Net assets, end of period (in 000s) $29,118 $25,555 $19,184 $500 $249 $989 $821 $1,241
========================================== ======= ======= ======= ====== ====== ====== ====== ======
Ratio of expenses to average net assets:
With fee waivers 1.53%(c) 1.00% 1.00%(d) 1.53%(c) 1.00%(d) 0.53%(c) 0.00% 0.00%(d)
- ------------------------------------------ ------- ------- ------- ------ ------ ------ ------ ------
Without fee waivers 1.66%(c) 1.00% 1.00%(d) 1.66%(c) 1.00%(d) 0.66%(c) 0.00% 0.00%(d)
========================================== ======= ======= ======= ====== ====== ====== ====== ======
Ratio of net investment income (loss)
to average net assets:
With fee waivers (1.00)%(c) (0.71)% (0.85)%(d) (1.00)%(c) (0.71)%(d) 0.00(c) 0.28% 0.15%(d)
- ------------------------------------------ ------- ------- ------- ------ ------ ------ ------ ------
Without fee waivers (1.13)%(c) (0.71)% (0.85)%(d) (1.13)%(c) (0.71)% (0.13)%(c) 0.28% 0.15%(d)
========================================== ======= ======= ======= ====== ====== ====== ====== ======
Portfolio turnover rate 147% 28% 1% 147% 28% 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 based on average net assets of $23,804,842, $296,927 and $884,810
for Class B, Class C and Advisor Class, respectively.
(d) Annualized.
NOTE 8-SUBSEQUENT EVENT
On November 3, 1999, the Board of Trustees approved the conversion of Advisor
Class Shares into Class A Shares. The effective date of this conversion was
February 11, 2000.
14
<PAGE> 17
REPORT OF INDEPENDENT ACCOUNTANTS
To the Trustees of AIM Series Trust and Shareholders of
AIM Global Trends Fund:
In our opinion, the accompanying statement of assets and
liabilities, including the schedule of investments, and
the related statements of operations and of changes in
net assets and the financial highlights present fairly,
in all material respects, the financial position of the
AIM Global Trends Fund (hereafter referred to as the
"Fund") at December 31, 1999, and the results of its
operations, the changes in its net assets and the
financial highlights for each of the periods indicated
therein, in conformity with accounting principles
generally accepted in the United States. 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 auditing standards
generally accepted in the United States 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, 1999
by correspondence with the custodian and brokers, provide
a reasonable basis for the opinion expressed above.
PRICEWATERHOUSECOOPERS LLP
Boston, Massachusetts
February 16, 2000
15
<PAGE> 18
PROXY RESULTS (UNAUDITED)
A Special Meeting of Shareholders of AIM Series Trust was held on August 25,
1999. The meeting was held for the following purposes:
(1) To approve a new investment advisory agreement with respect to AIM Global
Trends Fund (the "Fund").
(2) To approve changes to the fundamental investment restrictions of the Fund.
(3) To elect a Trustee.
(4) To ratify the selection of 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 VOTES WITHHELD/
MATTER FOR AGAINST ABSTENTIONS
------ --------- ------- -----------
<S> <C> <C> <C> <C>
(1) Approval of new investment advisory agreement............... 1,371,737 50,002 61,855
(2)(a) Modification of Fundamental Restriction on Concentration.... 1,360,627 55,223 67,743
(2)(b) Modification of Fundamental Restriction on Portfolio 1,368,064 48,189 67,341
Diversification.............................................
(2)(c) Addition of Fundamental Policy on Investments in Investment 1,368,574 47,138 67,882
Companies...................................................
(2)(d) Modification of Fundamental Restriction on Issuing Senior 1,368,051 47,120 68,422
Securities and Borrowing Money..............................
(2)(e) Modification of Fundamental Restriction on Underwriting 1,370,708 45,367 67,518
Securities..................................................
(2)(f) Modification of Fundamental Restriction on Real Estate 1,365,865 48,684 69,044
Investments.................................................
(2)(g) Modification of Fundamental Restriction on Making Loans..... 1,361,342 50,601 71,650
(3) Election of a Trustee Robert H. Graham...................... 1,795,672 1,077 65,374
(4) Ratification of the selection of PricewaterhouseCoopers LLP 1,763,343 16,981 81,797
as the Trust's Independent Public Accounts..................
</TABLE>
16
<PAGE> 19
<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 & Treasurer INVESTMENT MANAGER
(an investment banking firm)
Samuel D. Sirko A I M Advisors, Inc.
Frank S. Bayley Vice President & 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
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
AUDITORS
PricewaterhouseCoopers LLP
160 Federal St.
Boston, MA 02110
</TABLE>
REQUIRED FEDERAL INCOME TAX INFORMATION (UNAUDITED)
AIM Global Trends Fund distributed long-term capital gains of $4,393,755 for the
Fund's tax year ended December 31, 1999. Of long-term capital gains distributed,
100% is 20% rate gain.
17
<PAGE> 20
THE AIM FAMILY OF FUNDS--Registered Trademark--
<TABLE>
<S> <C> <C>
GROWTH FUNDS MONEY MARKET FUNDS A I M Management Group Inc. has provided
AIM Aggressive Growth Fund AIM Money Market Fund leadership in the mutual fund industry
AIM Blue Chip Fund AIM Tax-Exempt Cash Fund since 1976 and managed approximately $160
AIM Capital Development Fund billion in assets for more than 6.6 million
AIM Constellation Fund(1) INTERNATIONAL GROWTH FUNDS shareholders, including individual investors,
AIM Dent Demographic Trends Fund AIM Advisor International Value Fund corporate clients and financial institutions,
AIM Large Cap Growth Fund AIM Asian Growth Fund as of December 31, 1999.
AIM Mid Cap Equity Fund AIM Developing Markets Fund The AIM Family of Funds--Registered Trademark--
AIM Mid Cap Growth Fund AIM Euroland Growth Fund(4) is distributed nationwide, and AIM today is the
AIM Mid Cap Opportunities Fund AIM European Development Fund eighth-largest mutual fund complex in the United
AIM Select Growth Fund AIM International Equity Fund States in assets under management, according to
AIM Small Cap Growth Fund(2) AIM Japan Growth Fund Strategic Insight, an independent mutual fund
AIM Small Cap Opportunities Fund(3) AIM Latin American Growth Fund monitor.
AIM Value Fund AIM New Pacific Growth Fund
AIM Weingarten Fund
GROWTH & INCOME FUNDS GLOBAL GROWTH FUNDS
AIM Advisor Flex Fund AIM Global Aggressive Growth Fund
AIM Advisor Large Cap Value Fund AIM Global Growth Fund
AIM Advisor Real Estate Fund
AIM Balanced Fund GLOBAL GROWTH & INCOME FUNDS
AIM Basic Value Fund AIM Global Growth & Income Fund
AIM Charter Fund AIM Global Utilities Fund
INCOME FUNDS GLOBAL INCOME FUNDS
AIM Floating Rate Fund AIM Emerging Markets Debt Fund
AIM High Yield Fund AIM Global Government Income Fund
AIM High Yield Fund II AIM Global Income Fund
AIM Income Fund AIM Strategic Income Fund
AIM Intermediate Government Fund
AIM Limited Maturity Treasury Fund THEME FUNDS
AIM Global Consumer Products and Services Fund
TAX-FREE INCOME FUNDS AIM Global Financial Services Fund
AIM High Income Municipal Fund AIM Global Health Care Fund
AIM Municipal Bond Fund AIM Global Infrastructure Fund
AIM Tax-Exempt Bond Fund of Connecticut AIM Global Resources Fund
AIM Tax-Free Intermediate Fund AIM Global Telecommunications and Technology Fund(5)
AIM Global Trends Fund(6)
</TABLE>
(1) Effective December 1, 1999, AIM Constellation Fund's investment strategy
broadened to allow investments across all market capitalizations. (2) AIM Small
Cap Growth Fund closed to new investors on November 8, 1999. (3) AIM Small Cap
Opportunities Fund closed to new investors on November 4, 1999. (4) On September
1, 1999, AIM Europe Growth Fund was renamed AIM Euroland Growth Fund. Previously
the fund invested in all size companies in most areas of Europe. The fund now
seeks to invest at least 65%of its assets in large-cap companies within
countries using the euro as their currency (EMU-member countries). (5) On June
1, 1999, AIM Global Telecommunications Fund was renamed AIM Global
Telecommunications and Technology Fund. (6) Effective August 27, 1999, AIM
Global Trends Fund was restructured to operate as a traditional mutual fund.
Before that date, the fund operated as a fund of funds. 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. If used as
sales material after April 20, 2000, this report must be accompanied by a
current Quarterly Review of Performance for AIM Funds.
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