<PAGE>
[LOGO OF AIM APPEARS HERE]
[GRAPHIC COLLAGE APPEARS HERE]
AIM AGGRESSIVE
GROWTH FUND
SEMIANNUAL REPORT
APRIL 30, 1995
<PAGE>
FUNDAMENTALS
AIM AGGRESSIVE
GROWTH FUND
seeks to achieve long-term growth of capital by investing primarily in common
stocks, convertible bonds, convertible preferred stocks and warrants of
companies which in the opinion of the Fund's investment advisor are expected to
achieve earnings growth over time at a rate in excess of 15% per year.
PORTFOLIO DATA
TOP 10 EQUITY HOLDINGS
1. LSI Logic Corp.
2. Atmel Corp.
3. Tencor Instruments
4. Teradyne, Inc.
5. Altera Corp.
6. U.S. Robotics, Corp.
7. Lannet Data Communications, Ltd.
8. Kemet Corp.
9. FSI International, Inc.
10. Silicon Valley Group, Inc.
TOP 10 INDUSTRIES
1. Semiconductors
2. Computer Software/Services
3. Medical (Patient Services)
4. Electronic Components/Miscellaneous
5. Computer Networking
6. Telecommunications
7. Computer Peripherals
8. Retail (Stores)
9. Medical Instruments/Products
10. Leisure & Recreation
This table represents a summary of the Fund's portfolio as of April 30, 1995,
the close of the six-month reporting period. The Fund's composition may change
and there is no assurance the Fund will continue to hold the same securities.
AVERAGE ANNUAL TOTAL RETURNS
Through 3/31/95 (most recent calendar quarter)
<TABLE>
<CAPTION>
With Sales Excluding
Charge Sales Charge
<S> <C> <C>
Ten Years 15.18% 15.83%
Five Years 24.71% 26.13%
One Year 19.80% 26.76%
</TABLE>
GROWTH OF A
HYPOTHETICAL
$10,000
INVESTMENT
10 Years Ended 4/30/95
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
AIM Aggressive Lipper Small Company
Measurement Period Growth Fund(1) Russell 200 Stock Index(2) Growth Fund Index(2)
4/30/85 - 4/30/95 (In Dollars) (In Dollars) (In Dollars)
<S> <C> <C> <C>
4/85 9,449 10,000 10,000
4/86 12,292 13,495 13,315
4/87 13,101 14,867 14,247
4/88 11,180 13,678 13,622
4/89 12,216 15,768 15,828
4/90 12,600 15,426 16,232
4/91 16,035 16,985 18,026
4/92 19,607 19,885 21,068
4/93 24,489 23,019 23,757
4/94 33,283 26,430 27,453
4/95 42,207 28,338 30,201
</TABLE>
Past performance cannot guarantee comparable future results.
Sources: (1)Towers Data Systems HYPO(R) and (2)Lipper Analytical Services, Inc.
AIM Aggressive Growth Fund's performance figures are historical and reflect
reinvestment of all distributions, changes in net asset value, and the effect of
the 5.50% maximum sales charge unless otherwise indicated. The Fund's investment
return and principal value will fluctuate so that an investor's shares, when
redeemed, may be worth more or less than their original cost.
Lipper Analytical Services, Inc. is an independent mutual fund performance
monitor. The unmanaged Lipper Small Company Growth Fund Index represents an
average of the performance of small-capitalization growth funds. The Russell
2000 Stock Index is an unmanaged index generally considered representative of
small-capitalization stocks. An investment cannot be made in the indexes listed.
Index results include reinvested dividends and do not reflect sales charges.
<PAGE>
CHAIRMAN'S LETTER
Dear Fellow Shareholder:
AIM Aggressive Growth Fund extended its record of exceptional
long-term performance during the six-month period ended April 30,
[PHOTO 1995. The value of your investment increased 12.20%, assuming
Charles T. reinvestment of any applicable distributions and excluding the
Bauer, maximum 5.50% sales charge. Your Fund grew in assets from $687.2
Chairman of million to $883.2 million.
the Board of Your Fund's total return was more than double that of the
the Fund, Russell 2000 Stock Index, an unmanaged index representing small-
APPEARS HERE] capitalization stocks, and that of the Lipper Small Company
Growth Fund Index, which represents an average of the performance
of small-capitalization growth funds. Over the six-month
reporting period, the Russell index delivered total returns
of 5.36% and the Lipper index delivered total returns of 5.17%. An investment
cannot be made in an index; index results reflect reinvestment of all dividends
and do not reflect sales charges.
AIM Aggressive Growth Fund also significantly outpaced the 10.46% total return
of the Standard & Poor's Composite Index of 500 Stocks, an unmanaged index
considered representative of the stock market as a whole, during a period when
the broader market tended to favor large-capitalization stocks over the smaller,
emerging companies in which your Fund invests. A review of the economy, the
Fund's portfolio strategy, and our outlook for the months ahead follows on page
2 of this report.
AIM Aggressive Growth Fund's performance for the one-year and five-year
periods ended March 31, 1995, the most recent calendar quarter-end, placed it in
the top 1% of all mutual funds according to Lipper Analytical Services, Inc., an
independent mutual fund performance monitor. For the one-year period then ended,
AIM Aggressive Growth Fund was No. 20 of 6,346 funds tracked by Lipper. For the
five-year period, it was No. 3 of 2,605. Longer term, over the 10-year period
ended March 31, 1995, the Fund was in the top 4% of all mutual funds, No. 41 out
of 1,072. Lipper rankings exclude sales charges but include fees and expenses.
AIM Aggressive Growth Fund has built an impressive record of long-term
results, as shown in the 10-year performance numbers summarized on this report's
Fundamentals page, opposite. It is important to keep in mind that throughout
this period, your Fund and the stock market in general have experienced a
variety of up and down years. Shareholders who have retained a long-term
perspective have enjoyed the greatest returns on their investment. Although past
performance does not ensure comparable future results, we believe shareholders
who keep a long-term perspective will have greater opportunity for reaping
rewards over time. We remain confident in managing the Fund according to our
disciplined, earnings-driven investment strategy.
While your Fund's management team has been working to maximize the return on
your investment and help you achieve your long-term financial goals, AIM has
continued a commitment to customer service by expanding our shareholder service
operation. We have also improved our toll-free 24-hour AIM Investor Line so that
you can now access information on current yield and total return of your AIM
Fund in addition to data on your individual account simply by calling 800-246-
5463.
We are pleased to send you this shareholder report for AIM Aggressive Growth
Fund, and we are equally pleased to respond to any questions or comments you may
have.
Respectfully submitted,
/s/ CHARLES T. BAUER
Charles T. Bauer
Chairman
1
<PAGE>
DISCUSSION & ANALYSIS
AIM AGGRESSIVE GROWTH FUND CONTINUES
STRONG PERFORMANCE
----------
At the end of the
period, six of the
top 10 industries
in the portfolio
represented the
technology sector.
----------
As the period covered by this report opened, financial markets were affected by
the Federal Reserve Board's effort to use rising interest rates to slow an
economy it feared was overheating.
While corporate earnings reports were robust, rising rates lured investors
away from the potential volatility of stock markets, resulting in a flat equity
market. During the first half of the reporting period, the Standard & Poor's
Composite Index of 500 Stocks (S&P 500)* gained a mere 0.32%.
The second half of the reporting period differed dramatically, as investors
anticipated that the Fed's policy would succeed in checking inflation while
fostering sustainable economic growth. The S&P 500 rose 10.10% in the three
months ended April 30, closing the period at 514.71, an all-time high.
The market rally was distinguished by the strength of large-company stocks.
This was in sharp contrast to the past few years, when small emerging-growth
companies were market darlings.
YOUR INVESTMENT PORTFOLIO
Despite the fact that it was working against the market's grain, in the six
months covered by this report, AIM Aggressive Growth Fund produced a total
return of 12.20%, excluding sales charges, primarily due to Fund managers'
continued emphasis on technology stocks that meet the Fund's earnings-based
investment criteria. At the end of the period, six of the top 10 industries in
the portfolio represented the technology sector.
Fund managers define this sector broadly, to include telecommunications, for
example, as well as computer parts, peripherals, and software. The sector's
strength continues unabated, nurtured by the interconnections among technology
industries.
Consider the much-publicized introduction of Windows 95. Most computer users
will require more memory in order to use it, and many new software programs will
be written that complement and take advantage of this new operating system.
Thus, one new technology product stimulates production of others. The 1990s may
well be remembered as the technology decade as these interconnections produce
numerous opportunities for winning stocks.
While increasing its technology holdings, AIM Aggressive Growth Fund remained
broadly diversified, with more than 300 holdings as of April 30, 1995. Also,
in keeping with a strategic bias in favor of being fully invested, the Fund's
cash position was quite small, less than 4% of net assets. Of course, the Fund's
portfolio composition may change, and there is no assurance it will continue to
hold the same securities.
OUTLOOK FOR THE FUTURE
Many analysts agree that the exceptional earnings growth reported by many U.S.
companies during the first four months of 1995 is unlikely to continue at such
a phenomenal rate. Nevertheless, we believe a projected slowing of the domestic
economy, combined with the declining value of the dollar overseas, represents a
potentially great competitive advantage for U.S. companies. As a result,
earnings estimates for an unusually large number of companies should continue to
be robust.
One of the dynamic forces driving the market in the months to come will be
whose earnings expectations are too high and whose are too low.
In this economic environment, finding stocks that qualify under AIM's
earnings-driven investment philosophy would seem to be a simple task. If
anything, however, the large number of stocks reporting better-than-expected
earnings has forced us to work even harder to find companies with the very best
potential, the one or two companies out of 10 that are going to produce superior
earnings growth. And that's what we believe we do best.
*The S&P 500 is an unmanaged index of 500 securities widely regarded by
investors to be representative of the stock market in general. S&P performance
figures assume reinvestment of all dividends. An investment cannot be made in
an index.
2
<PAGE>
FINANCIALS
SCHEDULE OF INVESTMENTS
April 30, 1995
(Unaudited)
<TABLE>
<CAPTION>
SHARES MARKET VALUE
<C> <S> <C>
COMMON STOCKS - 98.46%
ADVERTISING/BROADCASTING - 1.03%
50,000 Clear Channel Communications, Inc.(a) $ 2,812,500
- ------------------------------------------------------------------
150,000 Heritage Media Corp.-Class A(a) 3,825,000
- ------------------------------------------------------------------
100,000 Meredith Corp. 2,500,000
- ------------------------------------------------------------------
9,137,500
- ------------------------------------------------------------------
AUTOMOBILE/TRUCKS PARTS & TIRES - 0.44%
150,000 Borg-Warner Automotive, Inc. 3,862,500
- ------------------------------------------------------------------
BEVERAGES - 0.49%
100,000 Canandaigua Wine Co., Inc.-Class A(a) 4,300,000
- ------------------------------------------------------------------
BUILDING MATERIALS - 0.43%
70,000 Danaher Corp. 2,082,500
- ------------------------------------------------------------------
60,000 Toro Co. (The) 1,732,500
- ------------------------------------------------------------------
3,815,000
- ------------------------------------------------------------------
BUSINESS SERVICES - 1.87%
103,500 Accustaff, Inc.(a) 2,315,812
- ------------------------------------------------------------------
60,000 Alternative Resources Corp.(a) 2,535,000
- ------------------------------------------------------------------
138,100 Brandon Systems Corp. 3,159,038
- ------------------------------------------------------------------
40,000 Franklin Quest Co.(a) 1,330,000
- ------------------------------------------------------------------
106,200 Healthcare COMPARE Corp.(a) 3,192,637
- ------------------------------------------------------------------
50,000 Interim Services Inc.(a) 1,443,750
- ------------------------------------------------------------------
47,300 Kelly Services Inc.-Class A 1,596,375
- ------------------------------------------------------------------
28,000 Olsten Corp. (The) 955,500
- ------------------------------------------------------------------
16,528,112
- ------------------------------------------------------------------
CHEMICALS - 0.80%
175,000 Applied Extrusion Technologies, Inc.(a) 2,975,000
- ------------------------------------------------------------------
75,000 Dekalb Genetics Corp.-Class B 2,737,500
- ------------------------------------------------------------------
50,000 Wellman Inc. 1,350,000
- ------------------------------------------------------------------
7,062,500
- ------------------------------------------------------------------
CHEMICALS (SPECIALTY) - 0.70%
150,000 Airgas Inc.(a) 3,356,250
- ------------------------------------------------------------------
150,000 Mississippi Chemical Corp. 2,850,000
- ------------------------------------------------------------------
6,206,250
- ------------------------------------------------------------------
</TABLE>
3
<PAGE>
FINANCIALS
<TABLE>
<CAPTION>
SHARES MARKET VALUE
<C> <S> <C>
COMPUTER NETWORKING - 7.62%
50,000 ALANTEC Corp.(a) $ 1,918,750
- ------------------------------------------------------------------
175,000 Apertus Technologies, Inc.(a) 2,439,063
- ------------------------------------------------------------------
300,000 Auspex Systems, Inc.(a) 3,112,500
- ------------------------------------------------------------------
125,000 Belden, Inc. 2,812,500
- ------------------------------------------------------------------
100,000 Black Box Corp.(a) 1,575,000
- ------------------------------------------------------------------
69,900 Chipcom Corp.(a) 2,289,225
- ------------------------------------------------------------------
100,000 Cidco, Inc.(a) 3,600,000
- ------------------------------------------------------------------
250,000 Computer Network Technology Corp.(a) 2,218,750
- ------------------------------------------------------------------
100,000 Digital Systems International, Inc.(a) 637,500
- ------------------------------------------------------------------
200,000 DSP Group, Inc.(a) 4,300,000
- ------------------------------------------------------------------
250,000 InterVoice, Inc.(a) 3,781,250
- ------------------------------------------------------------------
300,000 Lannet Data Communications, Ltd.(a) 5,925,000
- ------------------------------------------------------------------
200,000 Madge, N.V.(a) 5,500,000
- ------------------------------------------------------------------
150,000 Microtest, Inc.(a) 3,150,000
- ------------------------------------------------------------------
52,600 Mustang Software, Inc.(a) 407,650
- ------------------------------------------------------------------
200,000 Network Equipment Technologies, Inc.(a) 4,375,000
- ------------------------------------------------------------------
105,000 Network Peripherals, Inc.(a) 2,008,125
- ------------------------------------------------------------------
125,000 Optical Data Systems, Inc.(a) 5,062,500
- ------------------------------------------------------------------
125,000 Plaintree Systems, Inc.(a) 1,735,344
- ------------------------------------------------------------------
37,000 Plantronics, Inc.(a) 1,008,250
- ------------------------------------------------------------------
200,000 Proteon, Inc.(a) 1,300,000
- ------------------------------------------------------------------
185,000 Summa Four, Inc.(a) 4,301,250
- ------------------------------------------------------------------
150,000 Telco Systems, Inc.(a) 1,837,500
- ------------------------------------------------------------------
100,000 Xylogics, Inc.(a) 2,025,000
- ------------------------------------------------------------------
67,320,157
- ------------------------------------------------------------------
</TABLE>
4
<PAGE>
FINANCIALS
<TABLE>
<CAPTION>
SHARES MARKET VALUE
<C> <S> <C>
COMPUTER PERIPHERALS - 5.15%
125,000 Alliance Semiconductor Corp.(a) $ 5,093,750
- ---------------------------------------------------------------
175,000 Digi International, Inc.(a) 3,893,750
- ---------------------------------------------------------------
115,000 EMC Corp.(a) 2,271,250
- ---------------------------------------------------------------
100,000 Filenet Corp.(a) 3,350,000
- ---------------------------------------------------------------
75,000 Hutchinson Technology, Inc.(a) 2,475,000
- ---------------------------------------------------------------
50,000 Medic Computer Systems, Inc.(a) 2,200,000
- ---------------------------------------------------------------
160,250 Microchip Technology, Inc.(a) 4,527,062
- ---------------------------------------------------------------
25,000 MicroTouch Systems, Inc.(a) 912,500
- ---------------------------------------------------------------
400,000 Mylex Corp.(a) 4,450,000
- ---------------------------------------------------------------
100,000 Norand Corp.(a) 3,050,000
- ---------------------------------------------------------------
150,000 Oak Technology, Inc.(a) 4,143,750
- ---------------------------------------------------------------
150,000 Read-Rite Corp.(a) 3,187,500
- ---------------------------------------------------------------
75,000 U.S. Robotics Corp.(a) 5,943,750
- ---------------------------------------------------------------
45,498,312
- ---------------------------------------------------------------
COMPUTER SOFTWARE/SERVICES - 12.22%
32,400 American Management Systems, Inc.(a) 684,450
- ---------------------------------------------------------------
60,000 Broderbund Software, Inc.(a) 2,970,000
- ---------------------------------------------------------------
27,800 C*ATS Software, Inc.(a) 361,400
- ---------------------------------------------------------------
15,800 CBT Group PLC-ADR(a) 418,700
- ---------------------------------------------------------------
150,000 Cadence Design Systems, Inc.(a) 4,837,500
- ---------------------------------------------------------------
300,000 Corel Corp.(a) 4,162,500
- ---------------------------------------------------------------
100,000 Diamond Multimedia Systems, Inc.(a) 2,000,000
- ---------------------------------------------------------------
100,000 Electronics for Imaging, Inc.(a) 4,550,000
- ---------------------------------------------------------------
100,000 Expert Software, Inc.(a) 1,475,000
- ---------------------------------------------------------------
150,000 Frame Technology Corp.(a) 3,150,000
- ---------------------------------------------------------------
100,000 HBO & Co. 4,575,000
- ---------------------------------------------------------------
14,200 HCIA, Inc.(a) 376,300
- ---------------------------------------------------------------
200,000 Hummingbird Communications Ltd.(a) 4,700,000
- ---------------------------------------------------------------
50,000 Hyperion Software Corp.(a) 2,150,000
- ---------------------------------------------------------------
125,000 Integrated Silicon Systems(a) 3,375,000
- ---------------------------------------------------------------
150,000 Integrated Systems, Inc.(a) 3,150,000
- ---------------------------------------------------------------
44,800 Intergraph Corp.(a) 481,600
- ---------------------------------------------------------------
50,000 Intersolv Inc.(a) 687,500
- ---------------------------------------------------------------
100,000 Macromedia Inc.(a) 3,350,000
- ---------------------------------------------------------------
140,000 NetManage, Inc.(a) 2,555,000
- ---------------------------------------------------------------
</TABLE>
5
<PAGE>
FINANCIALS
<TABLE>
<CAPTION>
SHARES MARKET VALUE
<C> <S> <C>
Computer Software/Services - (continued)
175,000 Network General Corp.(a) $ 4,571,875
- -------------------------------------------------------------------
50,500 Open Environment Corp.(a) 883,750
- -------------------------------------------------------------------
150,000 Pairgain Technologies, Inc.(a) 3,187,500
- -------------------------------------------------------------------
245,900 Phamis, Inc.(a) 4,764,312
- -------------------------------------------------------------------
150,000 Pinnacle Systems, Inc.(a) 2,737,500
- -------------------------------------------------------------------
200,000 Planar Systems, Inc.(a) 3,950,000
- -------------------------------------------------------------------
150,000 Platinum Technology Inc.(a) 3,000,000
- -------------------------------------------------------------------
50,000 Policy Management Systems Corp.(a) 2,518,750
- -------------------------------------------------------------------
50,000 Project Software & Development, Inc.(a) 1,212,500
- -------------------------------------------------------------------
27,600 Renaissance Solutions, Inc.(a) 358,800
- -------------------------------------------------------------------
200,000 Softdesk, Inc.(a) 4,550,000
- -------------------------------------------------------------------
150,000 Softkey International, Inc.(a) 3,675,000
- -------------------------------------------------------------------
61,900 Sterling Software Inc.(a) 2,104,600
- -------------------------------------------------------------------
200,000 Structural Dynamics Research Corp.(a) 2,425,000
- -------------------------------------------------------------------
175,000 Symantec Corp.(a) 4,068,750
- -------------------------------------------------------------------
220,000 S3, Inc.(a) 5,087,500
- -------------------------------------------------------------------
100,000 TGV Software, Inc.(a) 1,875,000
- -------------------------------------------------------------------
200,000 Viasoft, Inc.(a) 1,962,500
- -------------------------------------------------------------------
100,000 VMARK Software, Inc.(a) 1,500,000
- -------------------------------------------------------------------
285,000 Wind River Systems(a) 3,491,250
- -------------------------------------------------------------------
107,934,537
- -------------------------------------------------------------------
CONSUMER NON-DURABLES - 0.34%
80,000 Department 56, Inc.(a) 2,960,000
- -------------------------------------------------------------------
CONTAINERS - 0.48%
100,000 Sealed Air Corp.(a) 4,275,000
- -------------------------------------------------------------------
COSMETICS & TOILETRIES - 0.34%
75,000 Helen of Troy Ltd.(a) 1,293,750
- -------------------------------------------------------------------
50,000 Helene Curtis Industries, Inc. 1,718,750
- -------------------------------------------------------------------
3,012,500
- -------------------------------------------------------------------
</TABLE>
6
<PAGE>
FINANCIALS
<TABLE>
<CAPTION>
SHARES MARKET VALUE
<C> <S> <C>
ELECTRONIC COMPONENTS/MISCELLANEOUS - 7.78%
50,000 AFC Cable Systems, Inc.(a) $ 837,500
- ----------------------------------------------------------------------
200,000 Ametek, Inc. 3,250,000
- ----------------------------------------------------------------------
150,000 Amphenol Corp.(a) 4,200,000
- ----------------------------------------------------------------------
70,000 BMC Industries, Inc. 1,260,000
- ----------------------------------------------------------------------
122,700 Brooks Automation, Inc.(a) 1,733,137
- ----------------------------------------------------------------------
180,000 Electro Scientific Industries, Inc.(a) 4,792,500
- ----------------------------------------------------------------------
50,000 Franklin Electronic Publishers, Inc.(a) 1,550,000
- ----------------------------------------------------------------------
100,000 Harman International Industries, Inc. 3,650,000
- ----------------------------------------------------------------------
98,000 Integrated Silicon Solution, Inc.(a) 3,773,000
- ----------------------------------------------------------------------
125,000 Methode Electronics, Inc. 2,156,250
- ----------------------------------------------------------------------
37,500 Molex, Inc. 1,415,625
- ----------------------------------------------------------------------
170,000 Oak Industries, Inc.(a) 4,972,500
- ----------------------------------------------------------------------
158,300 PRI Automation, Inc.(a) 4,155,375
- ----------------------------------------------------------------------
200,000 PSC, Inc.(a) 2,600,000
- ----------------------------------------------------------------------
225,000 Recoton Corp.(a) 3,600,000
- ----------------------------------------------------------------------
100,000 Semitool, Inc.(a) 2,375,000
- ----------------------------------------------------------------------
131,200 Symbol Technologies, Inc.(a) 4,346,000
- ----------------------------------------------------------------------
100,000 Tektronix, Inc. 4,550,000
- ----------------------------------------------------------------------
250,000 Telxon Corp. 3,937,500
- ----------------------------------------------------------------------
120,000 Teradyne, Inc.(a) 6,075,000
- ----------------------------------------------------------------------
125,000 Trimble Navigation Ltd.(a) 2,375,000
- ----------------------------------------------------------------------
50,000 Videonics, Inc.(a) 725,000
- ----------------------------------------------------------------------
20,000 X-Rite, Inc. 390,000
- ----------------------------------------------------------------------
68,719,387
- ----------------------------------------------------------------------
ELECTRONIC/DEFENSE - 0.75%
200,000 Alpha Industries, Inc.(a) 2,625,000
- ----------------------------------------------------------------------
100,000 Watkins-Johnson Co. 3,962,500
- ----------------------------------------------------------------------
6,587,500
- ----------------------------------------------------------------------
ENGINEERING & CONSTRUCTION - 0.22%
75,000 CDI Corp.(a) 1,921,875
- ----------------------------------------------------------------------
</TABLE>
7
<PAGE>
FINANCIALS
<TABLE>
<CAPTION>
SHARES MARKET VALUE
<C> <S> <C>
FINANCE (CONSUMER CREDIT) - 2.20%
150,000 AmeriCredit Corp.(a) $ 1,350,000
- ------------------------------------------------------------------
50,000 CMAC Investment Corp. 1,850,000
- ------------------------------------------------------------------
90,700 Concord EFS, Inc.(a) 2,721,000
- ------------------------------------------------------------------
150,000 Credit Acceptance Corp.(a) 3,000,000
- ------------------------------------------------------------------
35,000 First USA, Inc. 1,487,500
- ------------------------------------------------------------------
50,000 Foothill Group Inc.-Class A 1,087,500
- ------------------------------------------------------------------
90,900 General Acceptance Corp.(a) 2,386,125
- ------------------------------------------------------------------
150,000 Money Store Inc. (The) 3,506,250
- ------------------------------------------------------------------
150,000 PMT Services, Inc.(a) 2,062,500
- ------------------------------------------------------------------
19,450,875
- ------------------------------------------------------------------
FINANCE (SAVINGS & LOAN) - 0.36%
75,000 TFC Financial Corp. 3,215,625
- ------------------------------------------------------------------
FUNERAL SERVICES - 0.39%
126,700 Stewart Enterprises Inc.-Class A 3,484,250
- ------------------------------------------------------------------
GAMING - 0.60%
46,000 Aztar Corp.(a) 425,500
- ------------------------------------------------------------------
100,000 Grand Casinos, Inc.(a) 2,775,000
- ------------------------------------------------------------------
69,800 Players International, Inc.(a) 2,067,825
- ------------------------------------------------------------------
5,268,325
- ------------------------------------------------------------------
HOTELS/MOTELS - 1.22%
100,000 La Quinta Motor Inns, Inc. 2,987,500
- ------------------------------------------------------------------
450,000 Prime Hospitality Corp.(a) 4,500,000
- ------------------------------------------------------------------
226,666 ShoLodge, Inc.(a) 3,272,490
- ------------------------------------------------------------------
10,759,990
- ------------------------------------------------------------------
INSURANCE (LIFE & HEALTH) - 0.52%
100,000 American Travellers Corp.(a) 2,000,000
- ------------------------------------------------------------------
98,600 Emphesys Financial Group Inc. 2,600,575
- ------------------------------------------------------------------
4,600,575
- ------------------------------------------------------------------
INSURANCE (MULTI-LINE PROPERTY) - 1.10%
60,000 Allied Group, Inc. 1,755,000
- ------------------------------------------------------------------
100,000 Crop Growers Corp.(a) 3,050,000
- ------------------------------------------------------------------
25,000 HCC Insurance Holdings, Inc.(a) 575,000
- ------------------------------------------------------------------
32,000 Mutual Risk Management Ltd. 984,000
- ------------------------------------------------------------------
100,000 Vesta Insurance Group, Inc. 3,337,500
- ------------------------------------------------------------------
9,701,500
- ------------------------------------------------------------------
</TABLE>
8
<PAGE>
FINANCIALS
<TABLE>
<CAPTION>
SHARES MARKET VALUE
<C> <S> <C>
LEISURE & RECREATION - 2.21%
125,000 Avid Technology, Inc.(a) $ 5,039,063
- ------------------------------------------------------------------------
50,000 Cobra Golf, Inc.(a) 1,087,500
- ------------------------------------------------------------------------
100,000 Coleman Co., Inc.(a) 3,625,000
- ------------------------------------------------------------------------
187,500 First Team Sports, Inc.(a) 3,773,437
- ------------------------------------------------------------------------
150,000 Guest Supply, Inc.(a) 3,150,000
- ------------------------------------------------------------------------
115,000 West Marine, Inc.(a) 2,846,250
- ------------------------------------------------------------------------
19,521,250
- ------------------------------------------------------------------------
MACHINE TOOLS - 1.22%
200,000 Acme-Cleveland Corp. 4,150,000
- ------------------------------------------------------------------------
130,000 Applied Power, Inc.-Class A 3,428,750
- ------------------------------------------------------------------------
95,000 Kennametal Inc. 3,182,500
- ------------------------------------------------------------------------
10,761,250
- ------------------------------------------------------------------------
MACHINERY (HEAVY) - 0.65%
67,500 AGCO Corp. 2,404,688
- ------------------------------------------------------------------------
37,500 IDEX Corp. 1,251,562
- ------------------------------------------------------------------------
100,000 Tractor Supply Co.(a) 2,125,000
- ------------------------------------------------------------------------
5,781,250
- ------------------------------------------------------------------------
MACHINERY (MISCELLANEOUS) - 0.24%
50,000 Kulicke & Soffa Industries, Inc.(a) 2,118,750
- ------------------------------------------------------------------------
MEDICAL (DRUGS) - 1.23%
100,000 A.L. Laboratories, Inc.-Class A 2,387,500
- ------------------------------------------------------------------------
53,000 Arbor Drugs, Inc. 1,358,125
- ------------------------------------------------------------------------
75,000 Express Scripts, Inc.-Class A(a) 2,165,625
- ------------------------------------------------------------------------
160,000 Watson Pharmaceuticals, Inc.(a) 4,980,000
- ------------------------------------------------------------------------
10,891,250
- ------------------------------------------------------------------------
MEDICAL (PATIENT SERVICES) - 10.42%
145,000 Community Health Systems, Inc.(a) 5,038,750
- ------------------------------------------------------------------------
51,100 Coventry Corp.(a) 1,200,850
- ------------------------------------------------------------------------
200,000 Diagnostek, Inc.(a) 3,700,000
- ------------------------------------------------------------------------
175,000 Evergreen Healthcare, Inc.(a) 2,209,375
- ------------------------------------------------------------------------
75,000 Genesis Health Ventures, Inc.(a) 2,043,750
- ------------------------------------------------------------------------
109,900 Health Care & Retirement Corp.(a) 3,104,675
- ------------------------------------------------------------------------
75,000 Health Management, Inc.(a) 1,359,375
- ------------------------------------------------------------------------
51,750 Health Management Associates, Inc.-Class A(a) 1,500,750
- ------------------------------------------------------------------------
100,000 Healthsource, Inc.(a) 3,587,500
- ------------------------------------------------------------------------
</TABLE>
9
<PAGE>
FINANCIALS
<TABLE>
<CAPTION>
SHARES MARKET VALUE
<C> <S> <C>
Medical (Patient Services) - (continued)
280,530 HEALTHSOUTH Corp.(a) $ 5,540,468
- --------------------------------------------------------------------
50,000 HealthWise of America, Inc.(a) 1,400,000
- --------------------------------------------------------------------
85,000 Homedco Group, Inc.(a) 4,866,250
- --------------------------------------------------------------------
142,100 Horizon Healthcare Corp.(a) 2,966,338
- --------------------------------------------------------------------
11,200 Horizon Mental Health Management, Inc.(a) 124,600
- --------------------------------------------------------------------
150,000 Integrated Health Services, Inc. 5,193,750
- --------------------------------------------------------------------
150,000 Lincare Holdings, Inc.(a) 4,631,250
- --------------------------------------------------------------------
100,000 Living Centers of America, Inc.(a) 2,837,500
- --------------------------------------------------------------------
22,000 MedCath Inc.(a) 286,000
- --------------------------------------------------------------------
45,500 MedPartners, Inc.(a) 1,074,937
- --------------------------------------------------------------------
117,000 Mid Atlantic Medical Services, Inc.(a) 2,018,250
- --------------------------------------------------------------------
165,000 Multicare Companies, Inc. (The)(a) 3,382,500
- --------------------------------------------------------------------
250,000 OrNda HealthCorp(a) 4,375,000
- --------------------------------------------------------------------
67,600 Oxford Health Plans, Inc.(a) 2,813,850
- --------------------------------------------------------------------
134,500 Physician Reliance Network, Inc.(a) 3,396,125
- --------------------------------------------------------------------
65,500 Quantum Health Resources, Inc.(a) 1,064,375
- --------------------------------------------------------------------
109,300 Quorum Health Group, Inc.(a) 2,254,312
- --------------------------------------------------------------------
125,000 Rotech Medical Corp.(a) 4,062,500
- --------------------------------------------------------------------
120,000 Sierra Health Services, Inc.(a) 3,255,000
- --------------------------------------------------------------------
144,000 Sun Healthcare Group, Inc.(a) 3,474,000
- --------------------------------------------------------------------
190,000 TheraTx, Inc.(a) 2,755,000
- --------------------------------------------------------------------
50,000 United American Healthcare Corp.(a) 843,750
- --------------------------------------------------------------------
127,500 Vencor, Inc.(a) 3,952,500
- --------------------------------------------------------------------
52,500 Vivra, Inc.(a) 1,686,564
- --------------------------------------------------------------------
91,999,844
- --------------------------------------------------------------------
MEDICAL INSTRUMENTS/PRODUCTS - 2.27%
237,100 Amsco International, Inc.(a) 2,993,388
- --------------------------------------------------------------------
175,000 Conmed Corp.(a) 3,325,000
- --------------------------------------------------------------------
65,000 Cordis Corp.(a) 4,663,750
- --------------------------------------------------------------------
6,300 Idexx Laboratories, Inc.(a) 270,900
- --------------------------------------------------------------------
21,100 Nellcor Inc.(a) 875,650
- --------------------------------------------------------------------
100,000 Patterson Dental Co.(a) 2,325,000
- --------------------------------------------------------------------
100,000 Sunrise Medical, Inc.(a) 3,025,000
- --------------------------------------------------------------------
70,000 Target Therapeutics, Inc.(a) 2,555,000
- --------------------------------------------------------------------
20,033,688
- --------------------------------------------------------------------
</TABLE>
10
<PAGE>
FINANCIALS
<TABLE>
<CAPTION>
SHARES MARKET VALUE
<C> <S> <C>
METALS (MISCELLANEOUS) - 0.39%
60,000 Steel of West Virginia, Inc.(a) $ 727,500
- ------------------------------------------------------------
100,000 Wolverine Tube, Inc.(a) 2,675,000
- ------------------------------------------------------------
3,402,500
- ------------------------------------------------------------
OFFICE AUTOMATION - 0.77%
150,000 Danka Business Systems PLC-ADR 4,106,250
- ------------------------------------------------------------
100,000 In Focus Systems, Inc.(a) 2,675,000
- ------------------------------------------------------------
6,781,250
- ------------------------------------------------------------
POLLUTION CONTROL - 0.71%
75,000 Asyst Technologies, Inc.(a) 2,925,000
- ------------------------------------------------------------
50,000 Sanifill, Inc.(a) 1,331,250
- ------------------------------------------------------------
70,000 United Waste Systems, Inc.(a) 1,977,500
- ------------------------------------------------------------
6,233,750
- ------------------------------------------------------------
PUBLISHING - 0.72%
65,000 Devon Group, Inc.(a) 1,738,750
- ------------------------------------------------------------
100,000 Media General, Inc. - Class A 3,250,000
- ------------------------------------------------------------
25,000 Scholastic Corp.(a) 1,400,000
- ------------------------------------------------------------
6,388,750
- ------------------------------------------------------------
RESTAURANTS - 0.91%
251,562 Apple South, Inc. 3,647,650
- ------------------------------------------------------------
150,000 Sonic Corp.(a) 3,881,250
- ------------------------------------------------------------
50,000 Uno Restaurant Corp.(a) 550,000
- ------------------------------------------------------------
8,078,900
- ------------------------------------------------------------
RETAIL (FOOD & DRUG) - 1.01%
200,000 Big B, Inc. 2,900,000
- ------------------------------------------------------------
150,000 Casey's General Stores, Inc. 2,587,500
- ------------------------------------------------------------
108,425 Revco D.S., Inc.(a) 2,331,138
- ------------------------------------------------------------
50,000 Smith's Food & Drug Centers, Inc. 1,081,250
- ------------------------------------------------------------
8,899,888
- ------------------------------------------------------------
RETAIL (STORES) - 4.50%
22,100 Ann Taylor Stores, Inc.(a) 555,262
- ------------------------------------------------------------
32,000 Bed Bath & Beyond, Inc.(a) 668,000
- ------------------------------------------------------------
200,000 Bon-Ton Stores, Inc. (The)(a) 2,075,000
- ------------------------------------------------------------
115,000 CompUSA, Inc.(a) 2,860,625
- ------------------------------------------------------------
62,000 Creative Computers, Inc.(a) 1,526,750
- ------------------------------------------------------------
100,000 Just for Feet, Inc.(a) 2,862,500
- ------------------------------------------------------------
</TABLE>
11
<PAGE>
FINANCIALS
<TABLE>
<CAPTION>
SHARES MARKET VALUE
<C> <S> <C>
Retail (Stores) - (continued)
165,000 Men's Warehouse, Inc. (The)(a) $ 4,166,250
- ----------------------------------------------------------------
100,000 Micro Warehouse, Inc.(a) 3,500,000
- ----------------------------------------------------------------
115,000 Movie Gallery, Inc.(a) 3,593,750
- ----------------------------------------------------------------
211,800 Petco Animal Supplies, Inc.(a) 4,368,375
- ----------------------------------------------------------------
210,000 Pier 1 Imports, Inc. 1,890,000
- ----------------------------------------------------------------
150,000 Proffitt's, Inc.(a) 3,712,500
- ----------------------------------------------------------------
50,000 Regis Corp.(a) 853,125
- ----------------------------------------------------------------
175,000 Sports Authority, Inc. (The)(a) 3,106,250
- ----------------------------------------------------------------
50,000 Tech Data Corp.(a) 593,750
- ----------------------------------------------------------------
100,000 Waban, Inc.(a) 1,662,500
- ----------------------------------------------------------------
150,000 Zale Corp.(a) 1,753,125
- ----------------------------------------------------------------
39,747,762
- ----------------------------------------------------------------
SCIENTIFIC INSTRUMENTS - 0.68%
100,000 Dynatech Corp.(a) 1,750,000
- ----------------------------------------------------------------
125,000 Input/Output, Inc.(a) 4,234,375
- ----------------------------------------------------------------
5,984,375
- ----------------------------------------------------------------
SEMICONDUCTORS - 14.13%
111,900 ACT Manufacturing, Inc.(a) 1,566,600
- ----------------------------------------------------------------
75,000 Altera Corp.(a) 6,065,625
- ----------------------------------------------------------------
99,800 ASM Lithography Holding N.V.(a) 2,732,025
- ----------------------------------------------------------------
140,000 Atmel Corp.(a) 6,160,000
- ----------------------------------------------------------------
150,000 Credence Systems Corp.(a) 5,437,500
- ----------------------------------------------------------------
150,000 Cypress Semiconductor Corp.(a) 4,537,500
- ----------------------------------------------------------------
85,000 Electroglas, Inc.(a) 3,697,500
- ----------------------------------------------------------------
90,000 Exar Corp.(a) 2,373,750
- ----------------------------------------------------------------
125,000 FSI International, Inc.(a) 5,812,500
- ----------------------------------------------------------------
100,000 Integrated Device Technology, Inc.(a) 3,812,500
- ----------------------------------------------------------------
175,000 International Rectifier Corp.(a) 4,440,625
- ----------------------------------------------------------------
150,000 KEMET Corp.(a) 5,925,000
- ----------------------------------------------------------------
75,000 KLA Instruments Corp.(a) 4,650,000
- ----------------------------------------------------------------
115,000 LSI Logic Corp.(a) 7,661,875
- ----------------------------------------------------------------
100,000 Lam Research Corp.(a) 5,050,000
- ----------------------------------------------------------------
150,000 Lattice Semiconductor Corp.(a) 4,518,750
- ----------------------------------------------------------------
55,000 Linear Technology Corp. 3,286,250
- ----------------------------------------------------------------
54,400 Maxim Integrated Products, Inc.(a) 1,972,000
- ----------------------------------------------------------------
</TABLE>
12
<PAGE>
FINANCIALS
<TABLE>
<CAPTION>
SHARES MARKET VALUE
<C> <S> <C>
Semiconductors - (continued)
142,200 Merix Corp.(a) $ 3,235,050
- -------------------------------------------------------------
60,000 Novellus Systems, Inc.(a) 3,645,000
- -------------------------------------------------------------
100,000 OPTI, Inc.(a) 1,512,500
- -------------------------------------------------------------
97,500 Photronics, Inc.(a) 2,218,125
- -------------------------------------------------------------
125,000 Sanmina Corp.(a) 4,265,625
- -------------------------------------------------------------
100,000 SCI Systems, Inc.(a) 2,037,500
- -------------------------------------------------------------
18,400 SDL, Inc.(a) 469,200
- -------------------------------------------------------------
100,000 Sierra Semiconductor Corp.(a) 2,550,000
- -------------------------------------------------------------
200,000 Silicon Valley Group, Inc.(a) 5,800,000
- -------------------------------------------------------------
90,100 Tencor Instruments(a) 6,104,275
- -------------------------------------------------------------
240,000 Tylan General, Inc.(a) 2,880,000
- -------------------------------------------------------------
100,000 Ultratech Stepper, Inc.(a) 5,600,000
- -------------------------------------------------------------
225,000 VLSI Technology, Inc.(a) 4,795,312
- -------------------------------------------------------------
124,812,587
- -------------------------------------------------------------
SHOES & RELATED APPAREL - 0.70%
200,000 Maxwell Shoe Co., Inc.-Class A 1,700,000
- -------------------------------------------------------------
135,000 Wolverine World Wide, Inc. 4,522,500
- -------------------------------------------------------------
6,222,500
- -------------------------------------------------------------
STEEL - 0.59%
50,000 AK Steel Holding Corp.(a) 1,343,750
- -------------------------------------------------------------
120,000 J & L Specialty Steel, Inc. 2,220,000
- -------------------------------------------------------------
75,000 Synalloy Corp. 1,668,750
- -------------------------------------------------------------
5,232,500
- -------------------------------------------------------------
TELECOMMUNICATIONS - 5.27%
140,000 ADC Telecommunications, Inc.(a) 4,620,000
- -------------------------------------------------------------
150,000 Allen Group, Inc.(a) 3,393,750
- -------------------------------------------------------------
75,000 Andrew Corp.(a) 3,712,500
- -------------------------------------------------------------
60,000 Aspect Telecommunications Corp.(a) 2,505,000
- -------------------------------------------------------------
135,000 DSC Communications Corp.(a) 4,995,000
- -------------------------------------------------------------
75,000 Glenayre Technologies, Inc.(a) 4,612,500
- -------------------------------------------------------------
80,000 LCI International, Inc.(a) 2,020,000
- -------------------------------------------------------------
150,000 Microdyne Corp.(a) 2,512,500
- -------------------------------------------------------------
98,700 Periphonics Corp.(a) 1,554,525
- -------------------------------------------------------------
50,000 StrataCom, Inc.(a) 1,837,500
- -------------------------------------------------------------
</TABLE>
13
<PAGE>
FINANCIALS
<TABLE>
<CAPTION>
SHARES MARKET VALUE
<C> <S> <C>
Telecommunications - (continued)
200,000 Tekelec(a) $ 4,900,000
- ---------------------------------------------------------------------
70,000 Tellabs, Inc.(a) 4,830,000
- ---------------------------------------------------------------------
200,000 U.S. Long Distance Corp.(a) 3,100,000
- ---------------------------------------------------------------------
200,000 VTEL Corp.(a) 1,925,000
- ---------------------------------------------------------------------
46,518,275
- ---------------------------------------------------------------------
TEXTILES - 1.72%
125,000 Nautica Enterprises, Inc.(a) 3,437,500
- ---------------------------------------------------------------------
200,000 Quicksilver, Inc.(a) 3,950,000
- ---------------------------------------------------------------------
125,000 St. John's Knits, Inc. 4,328,125
- ---------------------------------------------------------------------
150,000 Tommy Hilfiger Corp.(a) 3,450,000
- ---------------------------------------------------------------------
15,165,625
- ---------------------------------------------------------------------
TRANSPORTATION - 0.27%
40,000 Fritz Companies, Inc.(a) 2,410,000
- ---------------------------------------------------------------------
TRUCKING - 0.80%
100,000 Landstar System, Inc.(a) 2,900,000
- ---------------------------------------------------------------------
75,000 M.S. Carriers, Inc.(a) 1,818,750
- ---------------------------------------------------------------------
100,000 TNT Freightways Corp. 2,350,000
- ---------------------------------------------------------------------
7,068,750
- ---------------------------------------------------------------------
Total Common Stocks 869,676,964
- ---------------------------------------------------------------------
PRINCIPAL
AMOUNT
REPURCHASE AGREEMENTS - 3.37%(b)
$29,736,042 Goldman, Sachs & Co., 5.92%, 05/01/95(c) 29,736,042
- ---------------------------------------------------------------------
Total Repurchase Agreements 29,736,042
- ---------------------------------------------------------------------
TOTAL INVESTMENT SECURITIES - 101.83% 899,413,006
- ---------------------------------------------------------------------
OTHER ASSETS LESS LIABILITIES - (1.83)% (16,166,513)
=====================================================================
NET ASSETS - 100.00% $883,246,493
=====================================================================
</TABLE>
NOTES TO SCHEDULE OF INVESTMENTS:
(a) Non-income producing security.
(b) Collateral on repurchase agreements, including the Fund's pro-rata interest
in joint repurchase agreements, is taken into possession by the Fund upon
entering into the repurchase agreement. The collateral is marked to market
daily to ensure its market value as being 102 percent of the sales price of
the repurchase agreement. The investments in some repurchase agreements are
through participation in joint accounts with other mutual funds managed by
the investment advisor.
(c) Joint repurchase agreement entered into 04/28/95 with a maturing value of
$403,984,662. Collateralized by $400,123,000 U.S. Treasury obligations,
0.00% to 8.875% due 10/12/95 to 02/15/21.
See Notes to Financial Statements.
14
<PAGE>
FINANCIALS
STATEMENT OF ASSETS AND LIABILITIES
April 30, 1995
(Unaudited)
<TABLE>
<S> <C>
ASSETS:
Investments, at market value (cost $681,603,474) $899,413,006
- --------------------------------------------------------------
Foreign currencies, at market value (cost $848) 876
- --------------------------------------------------------------
Receivables for:
Investments sold 14,575,539
- --------------------------------------------------------------
Capital stock sold 4,485,549
- --------------------------------------------------------------
Dividends and interest 93,478
- --------------------------------------------------------------
Investment and deferred compensation plan 8,112
- --------------------------------------------------------------
Other assets 60,170
- --------------------------------------------------------------
Total assets 918,636,730
- --------------------------------------------------------------
LIABILITIES:
Payables for:
Investments purchased 31,715,507
- --------------------------------------------------------------
Capital stock reacquired 2,537,007
- --------------------------------------------------------------
Deferred compensation 8,112
- --------------------------------------------------------------
Accrued advisory fees 460,378
- --------------------------------------------------------------
Accrued administrative service fees 5,866
- --------------------------------------------------------------
Accrued distribution fees 272,088
- --------------------------------------------------------------
Accrued directors' fees 2,533
- --------------------------------------------------------------
Accrued transfer agent fees 234,630
- --------------------------------------------------------------
Accrued operating expenses 154,116
- --------------------------------------------------------------
Total liabilities 35,390,237
- --------------------------------------------------------------
Net assets applicable to shares outstanding $883,246,493
==============================================================
CAPITAL STOCK, $.001 PAR VALUE PER SHARE:
Authorized 750,000,000
- --------------------------------------------------------------
Outstanding 27,749,471
==============================================================
Net asset value and redemption price per share $ 31.83
==============================================================
Offering price per share:
(Net asset value of $31.83 divided by 94.50%) $ 33.68
==============================================================
</TABLE>
See Notes to Financial Statements.
15
<PAGE>
FINANCIALS
STATEMENT OF OPERATIONS
For the six months ended April 30, 1995
(Unaudited)
<TABLE>
<S> <C>
INVESTMENT INCOME:
Dividends $ 715,848
- ---------------------------------------------------------------------------------------------------------
Interest 705,617
- ---------------------------------------------------------------------------------------------------------
Total investment income 1,421,465
- ---------------------------------------------------------------------------------------------------------
EXPENSES:
Advisory fees 2,385,593
- ---------------------------------------------------------------------------------------------------------
Custodian fees 54,708
- ---------------------------------------------------------------------------------------------------------
Directors' fees 4,158
- ---------------------------------------------------------------------------------------------------------
Distribution fees 925,824
- ---------------------------------------------------------------------------------------------------------
Administrative service fees 32,447
- ---------------------------------------------------------------------------------------------------------
Transfer agent fees 891,725
- ---------------------------------------------------------------------------------------------------------
Other 390,157
- ---------------------------------------------------------------------------------------------------------
Total expenses 4,684,612
- ---------------------------------------------------------------------------------------------------------
Net investment income (loss) (3,263,147)
- ---------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENT SECURITIES AND FOREIGN CURRENCIES:
Net realized gain (loss) on sales of:
Investment securities 13,232,028
- ---------------------------------------------------------------------------------------------------------
Foreign currencies (2,769)
- ---------------------------------------------------------------------------------------------------------
13,229,259
- ---------------------------------------------------------------------------------------------------------
Unrealized appreciation of:
Investment securities 84,799,982
- ---------------------------------------------------------------------------------------------------------
Foreign currencies 28
- ---------------------------------------------------------------------------------------------------------
84,800,010
- ---------------------------------------------------------------------------------------------------------
Net gain on investment securities and foreign currencies 98,029,269
- ---------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $94,766,122
- ---------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
16
<PAGE>
FINANCIALS
STATEMENT OF CHANGES IN NET ASSETS
For the six months ended April 30, 1995 and the year ended October 31, 1994
(Unaudited)
<TABLE>
<CAPTION>
APRIL 30, OCTOBER 31,
1995 1994
<S> <C> <C>
OPERATIONS:
Net investment income (loss) $ (3,263,147) $ (1,178,968)
- ------------------------------------------------------------------------------
Net realized gain (loss) on sales of investment
securities and foreign currencies 13,229,259 (2,796,834)
- ------------------------------------------------------------------------------
Unrealized appreciation of investment securities
and foreign currencies 84,800,010 95,272,310
- ------------------------------------------------------------------------------
Net increase in net assets resulting from
operations 94,766,122 91,296,508
- ------------------------------------------------------------------------------
Distributions to shareholders from net realized
gains on investment securities -- (25,209)
- ------------------------------------------------------------------------------
Net increase from capital stock transactions 101,242,644 378,710,145
- ------------------------------------------------------------------------------
Net increase in net assets 196,008,766 469,981,444
- ------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 687,237,727 217,256,283
- ------------------------------------------------------------------------------
End of period $883,246,493 $687,237,727
==============================================================================
NET ASSETS CONSIST OF:
Capital (par value and additional paid-in) $658,753,742 $557,511,098
- ------------------------------------------------------------------------------
Undistributed net investment income (loss) (3,263,147) --
- ------------------------------------------------------------------------------
Undistributed net realized gain (loss) on sales
of investment securities and foreign currencies 9,946,338 (3,282,921)
- ------------------------------------------------------------------------------
Unrealized appreciation of investment securities
and foreign currencies 217,809,560 133,009,550
- ------------------------------------------------------------------------------
$883,246,493 $687,237,727
==============================================================================
</TABLE>
See Notes to Financial Statements.
17
<PAGE>
FINANCIALS
NOTES TO FINANCIAL STATEMENTS
April 30, 1995
(Unaudited)
NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES
AIM Aggressive Growth Fund (the "Fund") is a series portfolio of AIM Equity
Funds, Inc. (the "Company"). The Company is a Maryland corporation registered
under the Investment Company Act of 1940, as amended (the "1940 Act"), as an
open-end series management investment company consisting of four diversified
portfolios: AIM Aggressive Growth Fund, AIM Weingarten Fund, AIM Charter Fund
and AIM Constellation Fund. AIM Weingarten Fund, AIM Charter Fund and AIM
Constellation Fund currently offer two different classes of shares: the Retail
Class and the Institutional Class. The Fund currently offers only one class of
shares. As of the close of business on May 2, 1994, the Fund temporarily
discontinued public sales of its shares to new investors. 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 following is a summary of 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 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 mean between the closing bid and asked prices on that day. Each security
traded in the over-the-counter market (but not including securities reported
on the NASDAQ National Market System) is valued at the mean between the last
bid and asked prices based upon quotes furnished by market makers for such
securities. Each security reported on the NASDAQ National Market System is
valued at the last sales price on the valuation date. Securities for which
market quotations are not readily available are valued at fair value as
determined in good faith by or under the supervision of the Company's
officers in a manner specifically authorized by the Board of Directors of
the Company. Short-term obligations having 60 days or less to maturity are
valued at amortized cost which approximates market value.
B. Securities Transactions, Investment Income and Distributions -- 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 and distributions to
shareholders are recorded on the ex-dividend date.
C. 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. The Fund has a capital loss
carryforward of $3,178,755 (which may be carried forward to offset future
taxable capital gains, if any) which expires, if not previously utilized,
through the year 2002.
D. Stock Index Futures Contracts -- The Fund may purchase or sell stock index
futures contracts as a hedge against changes in market conditions. Initial
margin deposits required upon entering into futures contracts are satisfied
by the segregation of specific securities as collateral for the account of
the broker (the Fund's agent in acquiring the futures position). During the
period the futures contracts are open, changes in the value of the contracts
are recognized as unrealized gains or losses by "marking to market" on a
daily basis to reflect the market value of the contracts at the end of each
day's trading. Variation margin payments are made or received depending upon
whether unrealized gains or losses are incurred. When the contracts are
closed, the Fund recognizes a realized gain or loss equal to the difference
between the proceeds from, or cost of, the closing transaction and the
Fund's basis in the contract. Risks include the possibility of an illiquid
market and that a change in the value of contracts may not correlate with
changes in the value of the securities being hedged.
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.
F. Foreign Currency Contracts -- A forward 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 forward 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.
NOTE 2 - ADVISORY FEES AND OTHER TRANSACTIONS WITH AFFILIATES
The Company has entered into a master investment advisory agreement with A I M
Advisors, Inc. ("AIM"). Under the terms of the master investment advisory
agreement, the Fund pays an advisory fee to AIM at the annual rate of 0.80% of
the first $150 million of the Fund's average daily net assets, plus 0.625% of
the Fund's average daily net assets in excess of $150 million. This agreement
requires AIM to reduce its fees or, if necessary, make payments to the Fund to
the extent required to satisfy any expense limitations imposed by the
securities laws or regulations thereunder of any state in which the Fund's
shares are qualified for sale. The master investment advisory agreement was
amended on November 14, 1994 with respect to the Fund. The amendment to the
master investment advisory
18
<PAGE>
FINANCIALS
NOTE 2 - ADVISORY FEES AND OTHER TRANSACTIONS WITH AFFILIATES-CONTINUED
agreement was approved by the Fund's shareholders at a special meeting held on
November 14, 1994. Of the 12,005,913 shares voted at the meeting, 8,253,959
shares voted for the amendment, 3,243,846 voted against the amendment, and
508,108 shares abstained. Under the previous terms, the Fund paid an advisory
fee to AIM at the annual rate of 0.60% of the first $200 million of the Fund's
average daily net assets, plus 0.50% of the Fund's average daily net assets in
excess of $200 million to and including $500 million, plus 0.40% of the Fund's
average daily net assets in excess of $500 million to and including $1 billion,
plus 0.30% of the Fund's average daily net assets in excess of $1 billion.
The Fund, pursuant to a master administrative services agreement with AIM, has
agreed to reimburse AIM for certain administrative costs incurred in providing
accounting and shareholder services to the Fund. During the six months ended
April 30, 1995, AIM was reimbursed $32,447 for such services.
The Fund, pursuant to a transfer agency and service agreement, has agreed to
reimburse A I M Fund Services, Inc. ("AFS") for certain costs incurred in
providing transfer agency services to the Fund. During the six months ended
April 30, 1995, AFS was reimbursed $449,490 for such services.
The Company has entered into a master distribution agreement with A I M
Distributors, Inc. ("AIM Distributors") to serve as the distributor for the
Fund. The Company has adopted a Plan pursuant to Rule 12b-1 under the 1940 Act
(the "Plan"), whereby the Fund will pay AIM Distributors an annual rate of
0.25% of the Fund's average daily net assets as compensation for services
related to the sales and distribution of the Fund's shares. The Plan provides
that payments to dealers and financial institutions that provide continuing
personal shareholder services to their customers who purchase and own shares of
the Fund, in amounts of up to 0.25% of the average net assets of the Fund
attributable to the customers of such dealers or financial institutions, may be
characterized as a service fee. The Plan also provides that payments to AIM
Distributors are characterized as an asset-based sales charge under the Plan.
The Plan also imposes a cap on the total amount of sales charges, including
asset-based sales charges, that may be paid by the Company with respect to the
Fund's shares. During the six months ended April 30, 1995, the Fund paid AIM
Distributors $925,824 as compensation under the Plan.
AIM Distributors received commissions of $546,064 from sales of shares of the
Fund's capital stock during the six months ended April 30, 1995. Such
commissions are not an expense of the Fund. They are deducted from, and are not
included in, the proceeds from sales of capital stock. Certain officers and
directors of the Company are officers and directors of AIM, AFS and AIM
Distributors.
During the six months ended April 30, 1995, the Fund paid legal fees of $1,316
for services rendered by Kramer, Levin, Naftalis, Nessen, Kamin & Frankel as
counsel to the Company's directors. A member of that firm is a director of the
Company.
NOTE 3 - AFFILIATED COMPANY TRANSACTIONS
Affiliated issuers, as defined in the Investment Company Act of 1940, are
issuers in which the Fund held 5% or more of the outstanding voting securities.
A summary of transactions for each issuer who is or was an affiliate at or
during the six months ended April 30, 1995, were as follows:
<TABLE>
<CAPTION>
SHARE BALANCE SHARE BALANCE MARKET VALUE
OCTOBER 31, PURCHASES SALES REALIZED DIVIDEND APRIL 30, APRIL 30,
NAME OF ISSUER: 1994 COST COST GAIN INCOME 1995 1995
<S> <C> <C> <C> <C> <C> <C> <C>
General Acceptance Corp. -0- $1,945,000 -0- -0- -0- 90,900 $2,386,125
- -----------------------------------------------------------------------------------------------------
Tylan General, Inc. -0- 1,793,575 -0- -0- -0- 240,000 2,880,000
=====================================================================================================
</TABLE>
NOTE 4 - INVESTMENT SECURITIES
The aggregate amount of investment securities (other than short-term
securities) purchased and sold by the Fund during the six months ended April
30, 1995 was $398,086,368 and $276,029,334, respectively.
The amount of unrealized appreciation (depreciation) of investment securities
as of April 30, 1995, on a tax basis, is as follows:
<TABLE>
<S> <C>
Aggregate unrealized appreciation of investment securities $227,213,704
- ---------------------------------------------------------------------------
Aggregate unrealized (depreciation) of investment securities (9,431,537)
- ---------------------------------------------------------------------------
Net unrealized appreciation of investment securities $217,782,167
===========================================================================
Cost of investments for tax purposes is $681,630,839.
</TABLE>
19
<PAGE>
FINANCIALS
NOTE 5 - DIRECTORS' FEES
Directors' fees represent remuneration paid or accrued to each director who is
not an "interested person" of the Company. The Company may invest directors'
fees, if so elected by a director, in mutual fund shares in accordance with a
deferred compensation plan.
NOTE 6 - CAPITAL STOCK
Changes in the Fund's capital stock outstanding during the six months ended
April 30, 1995 and the year ended October 31, 1994 were as follows:
<TABLE>
<CAPTION>
APRIL 30, 1995 OCTOBER 31, 1994
-------------------------- --------------------------
SHARES AMOUNT SHARES AMOUNT
----------- ------------- ----------- -------------
<S> <C> <C> <C> <C>
Sold 16,503,095 $ 478,635,156 37,245,080 $ 938,440,033
- -------------------------------------------------------------------------------
Issued as reinvestment
of dividends -- -- 759 16,782
- -------------------------------------------------------------------------------
Reacquired (12,974,070) (377,392,512) (22,135,293) (559,746,670)
- -------------------------------------------------------------------------------
3,529,025 $ 101,242,644 15,110,546 $ 378,710,145
- -------------------------------------------------------------------------------
</TABLE>
NOTE 7 - FINANCIAL HIGHLIGHTS
Shown below are the condensed financial highlights for a share of the Fund
outstanding during the six months ended April 30, 1995, the year ended October
31, 1994, the ten month period ended October 31, 1993 and each of the years in
the seven-year period ended December 31, 1992.
<TABLE>
<CAPTION>
APRIL 30, OCTOBER 31,
--------- -------------------
1995 1994 1993
--------- -------- --------
<S> <C> <C> <C>
Net asset value, beginning of period $ 28.37 $ 23.85 $ 18.52
- -------------------------------------------- -------- -------- --------
Income from investment operations:
Net investment income (loss) (0.12) (0.05) (0.02)
- -------------------------------------------- -------- -------- --------
Net gains (losses) on securities
(both realized and unrealized) 3.58 4.57 5.35
- -------------------------------------------- -------- -------- --------
Total from investment operations 3.46 4.52 5.33
- -------------------------------------------- -------- -------- --------
Less distributions:
Dividends from net investment income -- -- --
- -------------------------------------------- -------- -------- --------
Distributions from capital gains -- -- --
- -------------------------------------------- -------- -------- --------
Total distributions -- -- --
- -------------------------------------------- -------- -------- --------
Net asset value, end of period $ 31.83 $ 28.37 $ 23.85
- -------------------------------------------- -------- -------- --------
Total return(b) 12.20% 18.96% 28.78%
- -------------------------------------------- -------- -------- --------
Ratios/supplemental data:
Net assets, end of period (000s omitted) $883,246 $687,238 $217,256
- -------------------------------------------- -------- -------- --------
Ratio of expenses to average net assets(c) 1.27%(e) 1.07% 1.00%(f)
- -------------------------------------------- -------- -------- --------
Ratio of net investment income (loss)
to average net assets(d) (0.88)%(e) (0.26)% (0.24)%(f)
- -------------------------------------------- -------- -------- --------
Portfolio turnover rate 38% 75% 61%
- -------------------------------------------- -------- -------- --------
</TABLE>
<TABLE>
<CAPTION>
DECEMBER 31,
-----------------------------------------------------------------
1992(a) 1991 1990 1989 1988 1987 1986
--------- --------- -------- -------- -------- --------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period $ 16.06 $ 11.85 $13.30 $ 11.07 $ 9.86 $ 12.10 $ 12.61
- ------------------------- --------- --------- -------- -------- -------- --------- --------
Income from investment
operations:
Net investment income
(loss) (0.03) (0.04) 0.08 0.03 0.05 -- 0.01
- ------------------------- --------- --------- -------- -------- -------- --------- --------
Net gains (losses) on
securities
(both realized and
unrealized) 3.41 7.29 (0.95) 2.28 1.21 (1.38) 0.05
- ------------------------- --------- --------- -------- -------- -------- --------- --------
Total from investment
operations 3.38 7.25 (0.87) 2.31 1.26 (1.38) 0.06
- ------------------------- --------- --------- -------- -------- -------- --------- --------
Less distributions:
Dividends from net
investment income -- -- (0.09) (0.03) (0.05) -- (0.08)
- ------------------------- --------- --------- -------- -------- -------- --------- --------
Distributions from
capital gains (0.92) (3.04) (0.49) (0.05) -- (0.86) (0.49)
- ------------------------- --------- --------- -------- -------- -------- --------- --------
Total distributions (0.92) (3.04) (0.58) (0.08) (0.05) (0.86) (0.57)
- ------------------------- --------- --------- -------- -------- -------- --------- --------
Net asset value, end of
period $ 18.52 $ 16.06 $11.85 $ 13.30 $ 11.07 $ 9.86 $ 12.10
- ------------------------- --------- --------- -------- -------- -------- --------- --------
Total return(b) 21.34% 63.90% (6.50)% 20.89% 12.77% (11.52)% 0.37%
- ------------------------- --------- --------- -------- -------- -------- --------- --------
Ratios/supplemental
data:
Net assets, end of
period (000s omitted) $38,238 $16,218 $9,234 $11,712 $12,793 $13,991 $18,547
- ------------------------- --------- --------- -------- -------- -------- --------- --------
Ratio of expenses to
average net assets(c) 1.25% 1.25% 1.25% 1.25% 1.22% 1.20% 1.19%
- ------------------------- --------- --------- -------- -------- -------- --------- --------
Ratio of net investment
income (loss) to
average net assets(d) (0.59)% (0.31)% 0.62% 0.24% 0.38% 0.01% 0.11%
- ------------------------- --------- --------- -------- -------- -------- --------- --------
Portfolio turnover rate 164% 165% 137% 69% 56% 118% 106%
- ------------------------- --------- --------- -------- -------- -------- --------- --------
</TABLE>
(a) The Fund changed investment advisors on June 30, 1992.
(b) Does not deduct sales charges and for periods less than one year, total
returns are not annualized.
(c) Ratios of expenses to average net assets prior to reduction of advisory
fees and expense reimbursements were 1.09%, 1.17% (annualized), 1.65%,
1.83%, 1.99%, 1.80%, 1.56%, 1.29% and 1.32% for 1994-86, respectively.
(d) Ratios of net investment income (loss) to average net assets prior to
reduction of advisory fees and expense reimbursements were (0.28)%, (0.41)%
(annualized), (0.99)%, (0.89)%, (0.11)%, (0.31)%, 0.04%, (0.08)% and
(0.02)%, for 1994-86, respectively.
(e) Ratios are annualized and based on average net assets of $746,687,351.
(f) Annualized.
20
<PAGE>
DIRECTORS & OFFICERS
<TABLE>
<CAPTION>
BOARD OF DIRECTORS OFFICERS OFFICE OF THE FUND
<S> <C> <C>
Charles T. Bauer Charles T. Bauer 11 Greenway Plaza
Chairman and Chief Executive Officer Chairman Suite 1919
A I M Management Group Inc. Houston, TX 77046
Robert H. Graham (800) 347-1919
Bruce L. Crockett President
President and Chief Executive Officer INVESTMENT ADVISER
COMSAT Corporation John J. Arthur
Senior Vice President and Treasurer A I M Advisors, Inc.
Owen Daly II 11 Greenway Plaza
Director Gary T. Crum Suite 1919
Cortland Trust Inc. Senior Vice President Houston, TX 77046
Carl Frischling Jonathan C. Schoolar TRANSFER AGENT
Partner Senior Vice President
Kramer, Levin, Naftalis, Nessen, A I M Fund Services, Inc.
Kamin & Frankel Carol F. Relihan P.O. Box 4739
Vice President and Secretary Houston, TX 77210-4739
Robert H. Graham
President Melville B. Cox CUSTODIAN
A I M Management Group Inc. Vice President
State Street Bank and Trust
John F. Kroeger Dana R. Sutton Company
Formerly, Consultant Vice President 225 Franklin Street
Wendell & Stockel Associates, Inc. and Assistant Treasurer Boston, MA 02110
Lewis F. Pennock P. Michelle Grace COUNSEL TO THE FUND
Attorney Assistant Secretary
Ballard Spahr
Ian W. Robinson Nancy L. Martin Andrews & Ingersoll
Consultant; Former Executive Assistant Secretary 1735 Market Street, 51st Floor
Vice President and Philadelphia, PA 19103
Chief Financial Officer Ofelia M. Mayo
Bell Atlantic Management Assistant Secretary COUNSEL TO THE DIRECTORS
Services, Inc.
Kathleen J. Pflueger Kramer, Levin, Naftalis,
Louis S. Sklar Assistant Secretary Nessen, Kamin & Frankel
Executive Vice President 919 Third Avenue
Hines Interests Samuel D. Sirko New York, NY 10022
Limited Partnership Assistant Secretary
DISTRIBUTOR
Stephen I. Winer
Assistant Secretary A I M Distributors, Inc.
11 Greenway Plaza
Mary J. Benson Suite 1919
Assistant Treasurer Houston, TX 77046
</TABLE>
This report may be distributed only to current shareholders or to persons who
have received a current prospectus of the Fund.
21
<PAGE>
[LOGO OF AIM APPEARS HERE] A I M Distributors, Inc. BULK RATE
11 Greenway Plaza, Suite 1919 U.S. POSTAGE
Houston, Texas 77046 PAID
Houston, TX
Permit No.2332
THE AIM FAMILY OF FUNDS(R)
AGGRESSIVE GROWTH
AIM Aggressive Growth Fund*
AIM Constellation Fund
AIM Global Aggressive Growth Fund
GROWTH
AIM Global Growth Fund
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AIM Weingarten Fund
GROWTH AND INCOME
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INCOME AND GROWTH
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HIGH CURRENT INCOME
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CURRENT INCOME [FULL PAGE PHOTO OF AIM MANAGEMENT
AIM Global Income Fund GROUP OFFICE BUILDING]
AIM Income Fund
CURRENT TAX-FREE INCOME
AIM Municipal Bond Fund
AIM Tax-Exempt Bond Fund of Conn.
AIM Tax-Free Intermediate Shares
CURRENT INCOME AND HIGH DEGREE OF SAFETY
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HIGH DEGREE OF SAFETY AND CURRENT INCOME
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STABILITY, LIQUIDITY, AND CURRENT INCOME
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STABILITY, LIQUIDITY, AND CURRENT TAX-FREE INCOME
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* AIM Aggressive Growth Fund was closed to new investors on May 2, 1994. For
more complete information about any AIM Fund, including sales charges and
expenses, ask your investment broker or securities dealer for a free
prospectus(es). Please read the prospectus(es) carefully before you invest or
send money.
