<PAGE>
[AIM LOGO APPEARS HERE]
[COLLAGE APPEARS HERE]
AIM WEINGARTEN FUND
ANNUAL REPORT
OCTOBER 31, 1995
<PAGE>
AIM WEINGARTEN FUND
For shareholders who seek long-term growth of capital through investments
primarily in common stocks of leading U.S. companies considered by management
to have strong earnings momentum.
ABOUT FUND PERFORMANCE AND PORTFOLIO DATA THROUGHOUT THIS REPORT:
* AIM Weingarten Fund's performance figures are for Class A shares, are
historical, and reflect reinvestment of all distributions and changes in net
asset value. Unless otherwise indicated, the Fund's performance is computed
without the maximum 5.50% sales charge. The performance of Class B shares,
which commenced sales on June 26, 1995, will differ.
* One-year results include reinvested distributions of $1.85 per share for
Class A shares.
* 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.
* The Fund's portfolio composition may change and there is no assurance the Fund
will continue to hold these same securities.
* Past performance cannot guarantee comparable future results.
ABOUT INDEXES AND OTHER PERFORMANCE BENCHMARKS CITED IN THIS REPORT:
* Lipper Analytical Services, Inc., is an independent mutual fund performance
monitor. The unmanaged Lipper Growth Fund Index represents an average of the
performance of the 30 largest growth mutual funds.
* Standard & Poor's Corporation (S&P) is a credit-rating agency. The unmanaged
Standard & Poor's Composite Index of 500 Stocks (S&P 500) is widely regarded
by investors as representative of the stock market in general. The Dow Jones
Industrial Average (DJIA) is an unmanaged composite of the performance of 30
large-company stocks. The NASDAQ (National Association of Securities Dealers
Automated Quotation System) Composite Index is a group of more than 4,500
unmanaged over-the-counter securities widely regarded by investors to be
representative of the small- and medium-sized company stock universe.
* An investment cannot be made in any indexes listed. Unless otherwise
indicated, index results include reinvested dividends and do not reflect sales
charges.
AVERAGE ANNUAL TOTAL RETURNS
For periods ended 9/30/95, the most recent calendar quarter end, including sales
charge
<TABLE>
<CAPTION>
<S> <C>
Since 6/17/69 14.74%
20 Years 19.52
15 Years 15.86
10 Years 17.15
5 Years 16.11
1 Year 27.78
</TABLE>
This report may be distributed only to current shareholders or to persons
who have received a current prospectus of the Fund.
<PAGE>
A Message from
the Chairman
DEAR FELLOW SHAREHOLDER:
A surge in the equity markets helped push AIM Weingarten
Fund to an outstanding total return of 28.20%,
[PHOTO OF including reinvested distributions of $1.85 per share for
CHARLES T. BAUER Class A shares, for the fiscal year ended October 31, 1995.
CHAIRMAN OF THE The Fund not only outperformed the 23.98% gain posted by
BOARD OF THE FUND the Lipper Income Index, which tracks mutual funds
APPEARS HERE] sharing your Fund's investment objective, but also
outpaced the 26.36% return of the S&P 500.
This successful performance accounts, in part, for the
Fund's growth from $4.01 billion in assets as the fiscal year opened to $4.66
billion as the fiscal year closed. Fund management recounts the decisions behind
the year's performance in the discussion that begins on the following page.
It has, indeed, been a memorable year for AIM Weingarten Fund and AIM overall.
Since January, AIM's net assets under management have grown from $27 billion to
approximately $40 billion. AIM now serves more than 2 million shareholders like
you who continue to count on our expertise and diligence in the management of
your investment.
Nevetheless, we feel compelled to remind shareholders that market cycles come
and go, and such performance as we have enjoyed this year is unlikely to
continue uninterrupted. In terms of market performance, many analysts are
cautioning investors to rein in their expectations, noting that it would be
unrealistic to expect stock market growth of more than 25% a second year in a
row. That is why you should keep in mind that those who have retained a long-
term perspective have generally enjoyed the greatest returns on their
investment.
AIM's disciplined earnings-driven strategy is an ongoing evaluation of market
opportunity, and as the market continues to climb, our job becomes more
challenging. Therefore, even as we relish the success of a good year, our focus
is on the year ahead.
The budget debate over such retirement benefits as Medicare and Social
Security only accentuates the need to build your own retirement nest egg,
independent of any benefits which may-or may not-be available to you when the
time comes. For many in the baby boomer generation, that's just 10 years away.
It is our hope that you continue to rely on AIM Weingarten Fund to help you
build wealth for your financial future. As always, we are ready to respond to
your questions or comments about this report. Please call Client Services at
800-959-4246 during normal business hours. For automated account information 24
hours a day, call the AIM Investor Line toll-free at 800-246-5463.
Respectfully submitted,
/s/ CHARLES T. BAUER
Charles T. Bauer
Chairman
<PAGE>
Management's
Discussion & Analysis
TECHNOLOGY STOCKS PROPEL MARKETS
TO RECORD LEVELS
---------
The much-noted
aging of the American
population, combined
with an ongoing
search for ways to
contain the rising cost
of health care, has
created significant
opportunities.
---------
Healthy corporate profits exceeded analysts' expectations and propelled stocks
through record highs in 1995. The strength was broad-based, resuscitating large-
capitalization stocks, which had been out of favor for three years. The popular
Dow Jones Industrial Average sailed past 4000 on February 23, 1995, and then
topped 5000 on November 21.
Spearheaded by the powerful technology stock advance, the broader NASDAQ
overtook its large-cap cousins in June 1995 to finish the reporting period well
ahead of the pack.
The stars of the technology group were inarguably the semiconductor stocks. As
of June 30, 1995, semiconductor stocks were up an astonishing 94% in just six
months, according to Barron's. Other technology sectors were also strong, such
as aerospace and defense, software, and industrial technology companies. Also
strong were beneficiaries of stable interest rates such as banks and thrifts,
and consumer cyclical stocks in airlines, leisure and recreation companies, and
restaurants.
In September and October, the market took a well-deserved respite as concern
surfaced that third-quarter 1995 earnings reports, particularly in the
technology group, would fall below expectations. Some earnings disappointment
in certain big names such as Intel, Microsoft, Nokia, and IBM initiated
profit-taking, which temporarily suspended the market's advance. Of the
companies reporting earnings in the third quarter of 1995, I/B/E/S International
Inc. reported in The Wall Street Journal that 55% were higher than analysts'
expectations, with 14% on target, and 31% below expectations. These results
compared favorably with second-quarter reports, of which 57% exceeded
expectations and 30% were below target.
With investor confidence renewed, at least for the near term, the market
gathered strength for its next advance. Focus turned from corporate earnings to
the growing gridlock in Congress over the proposals to balance the burgeoning
budget. The Federal Reserve Board declined to implement its much anticipated
interest rate cut pending some positive resolution to the budget debate.
YOUR INVESTMENT PORTFOLIO
AIM Weingarten Fund's earnings-driven investment strategy led it into three
main sectors during the reporting period, and these sectors provided a major
portion of your Fund's 28.20% total annual return during the fiscal year covered
by this report.
. TECHNOLOGY. Once again, the Fund's most extensive holdings were in the
technology sector as many of these stocks continued to report robust earnings.
As the fiscal year drew to a close, however, the Fund's weighting in the
technology sector had dropped from 45% to 35% as a result of lower-than-expected
earnings reports from several companies. The Fund reduced or eliminated holding
in Motorola and Silicon Graphics, among others, when earning momentum in those
companies fell short of AIM's investment philosophy criteria.
In addition, the Fund's holdings shifted from makers of generic computer chips
to companies that produce more sophisticated capital equipment. Thus, holdings
of semiconductor makers were down from approximately 18% of the portfolio to
roughly 14%.
- --------------------------------------------------------------------------------
LIPPER RANKING
(as of 10/31/95)
<TABLE>
<CAPTION>
RANK VS. ALL MUTUAL PERCENTILE
PERIOD FUNDS TRACKED BY LIPPER RANK
- ------ ----------------------- ----------
<S> <C> <C>
10 Years 46 of 1,189 4%
5 Years 446 of 2,727 17%
3 Years 902 of 3,921 23%
1 Year 320 of 7,234 5%
</TABLE>
Lipper rankings are based on total returns and are vs. all mutual funds tracked
by Lipper, excluding sales charges but including fees and expenses.
- --------------------------------------------------------------------------------
See important Fund disclosure inside front cover.
2
<PAGE>
- --------------------------------------------------------------------------------
TOP 10 INDUSTRIES (as of 10/31/95)
1. SEMICONDUCTORS
2. MEDICAL-DRUGS
3. FINANCE-CONSUMER CREDIT
4. COMPUTER SOFTWARE/SERVICES
5. RETAIL-STORES
6. COMPUTER MINIS/PCS
7. COMPUTER NETWORKING
8. MEDICAL-PATIENT SERVICES
9. TELECOMMUNICATIONS
10. MEDICAL-INSTRUMENTS/PRODUCTS
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
TOP 10 INDUSTRIES (as of 10/31/95)
1. APPLIED MATERIALS, INC.
2. PHILIP MORRIS COMPANIES, INC.
3. MICRON TECHNOLOGY INC.
4. TEXAS INSTRUMENTS INC.
5. CISCO SYSTEMS, INC.
6. COMPUTER ASSOCIATES INTERNATIONAL, INC.
7. LAM RESEARCH CORP.
8. SCHERING-PLOUGH CORP.
9. TERADYNE INC.
10. VARIAN ASSOCIATES, INC.
- --------------------------------------------------------------------------------
. FINANCIAL STOCKS. This sector has been enjoying the declining interest rate
environment that has existed since the Federal Reserve Board completed its year-
long run-up of short-term rates early in 1995. Nonbank financial companies have
been especially attractive, including such brokerage/financial services firms as
American Express and Dean Witter. The Fund also benefited from the
Chase-Chemical Bank merger announced shortly before the close of the fiscal
year.
. HEALTH CARE. The much-noted aging of the American population, combined
with an ongoing search for ways to contain the rising cost of health care, has
created significant opportunities. Health-care firms that enhance productivity
have produced especially attractive returns.
For example, pharmaceutical advances and improved devices can lower the
intrusiveness of medical procedures, thereby shortening the length of hospital
stays. The Fund holds several significant domestic pharmaceutical firms,
including Merck & Co. and Pfizer Inc. The portfolio also includes such foreign
firms as Sweden's Pharmacia, which is becoming an increasingly important global
player in this industry.
As of October 31, 1995, the Fund's portfolio comprised 203 holdings. Of
course, the Fund's holdings are subject to change, and there is no guarantee it
will continue to hold any particular security.
OUTLOOK FOR THE FUTURE
At this writing, the market has surpassed the Dow 5000 level. Yet many analysts
maintain that this aging bull market-the Dow has gone a record 61 months without
experiencing a 10% correction-may have plenty of steam left. Barron's recently
reported analysts' estimates that projected the Dow well past 5500 during the
coming year.
Of course, a significant complement of market strategists also believe a
correction is due.
Rather than make any projections of future market performance, AIM remains
committed to its disciplined investment strategy which helps us determine, on a
company-by-company basis, which stocks to own and which to sell--without the
guesswork of market timing.
See important Fund disclosure inside front cover.
3
<PAGE>
Long-Term
Performance
AIM WEINGARTEN FUND: A RECORD TO BE PROUD OF
JUNE 17, 1969-OCTOBER 31, 1995
- --------------------------------------------------------------------------------
Between June 1969 and October 1995, AIM Weingarten Fund significantly outpaced
stock market and other financial benchmarks.
<TABLE>
<CAPTION>
CUMULATIVE TOTAL RETURNS
June 17, 1969-October 31, 1995
<S> <C>
AIM Weingarten Fund 3525.29%
S&P 500 1567.70
6-Month CDs 644.97
CPI 318.57
- --------------------------------------------------------------------------------
</TABLE>
AIM Weingarten Fund started offering investors an opportunity to realize their
dreams over 26 years ago.
The chart opposite shows what would have happened to a one-time $10,000
investment in the Fund from June 1969 through October 31, 1995. That $10,000
would have grown to $362,528.
To put this in perspective, the initial $10,000 investment . . .
* grew more than twice as much as it would have in the Standard & Poor's 500
Index, the benchmark for large-company stocks in which AIM Weingarten Fund
invests.
* increased almost five times as fast as it would have in bank certificates
of deposit.
* stayed far ahead of inflation, growing more than eight times as fast as the
Consumer Price Index.
That's a good investment.
These calculations are based on the concept of total return, which takes into
account both the distributions made by an investment and the growth in value of
the underlying investment. Most of the growth in the hypothetical AIM Weingarten
Fund investment reflects growth in the value of Fund shares, which, of course,
is the goal of a growth mutual fund. During the 26-plus years covered by the
chart, the $10,000 initial investment would have earned only $12,526 in actual
income dividends. But over $260,000 in added value would have been generated.
The true test of any investment is its performance over the long term, through
good and bad times, through strong and weak markets.
AIM Weingarten Fund's superior lifetime performance spans more than a quarter-
century that has seen five major recessions and the 1987 stock market crash, the
Vietnam War and the Persian Gulf War, the prime rate at 20% and the inflation
rate at 13%. In the face of such events, the Fund has consistently appreciated
over long-term periods and has outpaced major market benchmarks and the rate of
inflation.
See important Fund disclosure inside front cover.
4
<PAGE>
GROWTH OF A $10,000 INVESTMENT
June 17, 1969-October 31, 1995
AVERAGE ANNUAL TOTAL RETURNS
(as of 10/31/95)
Since 6/17/69 14.59%
20 Years 19.16
15 Years 15.31
10 Years 16.33
5 Years 15.62
1 Year 21.13
<TABLE>
<CAPTION>
Consumer
6-Month Price AIM Weingarten
DATE S&P 500 CDs Index Fund
- ---- --------- ------- -------------- --------------
<S> <C> <C> <C> <C>
6/17/69 10,000 10,000 10,000 9,444
10/69 9,639 10,871 10,301 9,035
10/70 10,015 11,638 10,874 9,171
10/71 11,439 12,262 11,230 12,723
10/72 13,608 12,922 11,612 14,886
10/73 11,612 14,033 12,623 11,538
10/74 8,557 15,464 14,180 7,703
10/75 11,735 16,471 15,164 10,252
10/76 14,529 17,330 15,902 11,939
10/77 13,485 18,390 16,967 14,175
10/78 14,364 20,267 18,497 17,993
10/79 17,014 22,679 20,956 27,142
10/80 22,535 25,475 23,579 44,933
10/81 21,435 29,423 25,683 39,455
10/82 26,044 33,005 26,667 51,199
10/83 31,893 36,189 27,678 65,986
10/84 33,877 40,042 28,770 61,985
10/85 44,596 43,175 29,863 84,374
10/86 52,899 45,893 30,191 105,517
10/87 55,638 48,915 31,530 115,804
10/88 64,817 52,901 32,923 128,877
10/89 85,292 57,275 34,454 175,324
10/90 82,636 61,770 36,557 185,049
10/91 107,704 64,825 37,678 271,766
10/92 115,898 66,943 38,770 268,039
10/93 127,528 68,868 39,836 272,149
10/94 129,259 72,589 40,902 271,227
10/95 166,767 74,495 41,858 362,528
Past Performance cannot guarantee comparable future results.
</TABLE>
ABOUT THE STATISTICS USED IN THIS DISCUSSION OF YOUR FUND'S LONG-TERM
PERFORMANCE
AIM Weingarten Fund performance figures are for Class A shares; they reflect
reinvestment of all distributions, changes in net asset value, and the effect
of the Class A Shares' maximum sales charge of 5.50%. Performance of Class B
Shares, which commenced sales on June 26, 1995, will be different.
Standard & Poor's Corporation is a credit-rating agency. The unmanaged
Standard & Poor's Composite Index of 500 Stocks (S&P 500) is widely regarded by
investors as representative of the stock market in general.
Bank certificates of deposit (CDs), which are insured by the FDIC for up to
$100,000, are short-term investments that pay fixed principal and interest but
are subject to fluctuating rollover rates and early withdrawal penalties. CD
income is calculated using the six-month annualized average monthly CD rate
reported by the Federal Reserve Board. Shares of AIM Weingarten Fund are not
insured, and their value will vary with market conditions.
The Consumer Price Index (CPI) is a measure of change in consumer prices as
determined by the U.S. Bureau of Labor Statistics.
See important Fund disclosure inside front cover.
5
<PAGE>
Financials
SCHEDULE OF INVESTMENTS
October 31, 1995
<TABLE>
<C> <S> <C>
SHARES MARKET VALUE
DOMESTIC COMMON STOCKS - 82.38%
AEROSPACE/DEFENSE - 0.89%
350,000 Boeing Co. $ 22,968,750
- --------------------------------------------------------------------
116,600 Raytheon Co. 5,086,675
- --------------------------------------------------------------------
150,000 United Technologies Corp. 13,312,500
- --------------------------------------------------------------------
41,367,925
- --------------------------------------------------------------------
APPLIANCES - 0.87%
1,000,000 Newell Co. 24,125,000
- --------------------------------------------------------------------
350,000 Premark International Inc. 16,187,500
- --------------------------------------------------------------------
40,312,500
- --------------------------------------------------------------------
AUTOMOBILE(MANUFACTURERS) - 0.25%
225,000 Chrysler Corp. 11,615,625
- --------------------------------------------------------------------
AUTOMOBILE/TRUCKS PARTS & TIRES - 0.61%
800,000 Echlin Inc. 28,600,000
- --------------------------------------------------------------------
BANKING - 2.38%
455,000 Chase Manhattan Corp. 25,935,000
- --------------------------------------------------------------------
1,250,000 CoreStates Financial Corp. 45,468,750
- --------------------------------------------------------------------
463,600 Norwest Bank Corp. 13,676,200
- --------------------------------------------------------------------
1,000,000 Southern National Corp. 25,750,000
- --------------------------------------------------------------------
110,829,950
- --------------------------------------------------------------------
BEVERAGES - 1.02%
900,000 PepsiCo Inc. 47,475,000
- --------------------------------------------------------------------
BUILDING MATERIALS - 0.89%
548,900 Black & Decker Corp. 18,593,988
- --------------------------------------------------------------------
275,000 Georgia-Pacific Corp. 22,687,500
- --------------------------------------------------------------------
41,281,488
- --------------------------------------------------------------------
BUSINESS SERVICES - 2.21%
330,000 Equifax, Inc. 12,870,000
- --------------------------------------------------------------------
684,800 Healthcare COMPARE Corp.(a) 25,337,600
- --------------------------------------------------------------------
1,000,000 Manpower Inc. 27,125,000
- --------------------------------------------------------------------
712,000 Olsten Corp. 27,412,000
- --------------------------------------------------------------------
368,900 ServiceMaster L.P. 10,467,538
- --------------------------------------------------------------------
103,212,138
- --------------------------------------------------------------------
CHEMICALS (SPECIALTY) - 0.45%
375,000 W.R. Grace & Co. 20,906,250
- --------------------------------------------------------------------
</TABLE>
6
<PAGE>
Financials
<TABLE>
<C> <S> <C>
SHARES MARKET VALUE
COMPUTER MAINFRAMES - 0.73%
350,000 International Business Machines Corp. $ 34,037,500
- --------------------------------------------------------------------
COMPUTER MINI/PCS - 3.61%
900,000 COMPAQ Computer Corp.(a) 50,175,000
- --------------------------------------------------------------------
1,000,000 Dell Computer Corp. 46,625,000
- --------------------------------------------------------------------
250,000 Digital Equipment Corp.(a) 13,531,250
- --------------------------------------------------------------------
456,600 Hewlett-Packard Co. 42,292,575
- --------------------------------------------------------------------
200,000 Sun Microsystems Inc.(a) 15,600,000
- --------------------------------------------------------------------
168,223,825
- --------------------------------------------------------------------
COMPUTER NETWORKING - 3.51%
725,000 Bay Networks Inc.(a) 48,031,250
- --------------------------------------------------------------------
250,000 Cabletron Systems, Inc.(a) 19,656,250
- --------------------------------------------------------------------
750,000 Cisco Systems, Inc.(a) 58,125,000
- --------------------------------------------------------------------
800,000 3Com Corp.(a) 37,600,000
- --------------------------------------------------------------------
163,412,500
- --------------------------------------------------------------------
COMPUTER PERIPHERALS - 0.92%
500,000 Adaptec Inc.(a) 22,250,000
- --------------------------------------------------------------------
464,600 Seagate Technology Inc.(a) 20,790,850
- --------------------------------------------------------------------
43,040,850
- --------------------------------------------------------------------
COMPUTER SOFTWARE/SERVICES - 4.98%
347,700 Adobe Systems, Inc. 19,818,900
- --------------------------------------------------------------------
1,000,000 BMC Software, Inc.(a) 35,625,000
- --------------------------------------------------------------------
1,050,000 Cadence Design Systems, Inc.(a) 33,862,500
- --------------------------------------------------------------------
1,000,000 Computer Associates International, Inc. 55,000,000
- --------------------------------------------------------------------
489,300 FTP Software, Inc.(a) 13,211,100
- --------------------------------------------------------------------
675,000 Mentor Graphics Corp.(a) 14,175,000
- --------------------------------------------------------------------
115,000 Microsoft Corp.(a) 11,500,000
- --------------------------------------------------------------------
433,000 Policy Management Systems Corp.(a) 20,405,125
- --------------------------------------------------------------------
417,500 SoftKey International Inc.(a) 13,151,250
- --------------------------------------------------------------------
332,900 Sterling Software, Inc.(a) 15,355,013
- --------------------------------------------------------------------
232,103,888
- --------------------------------------------------------------------
CONGLOMERATES - 1.26%
50,200 Dial Corp. (The) 1,223,625
- --------------------------------------------------------------------
200,000 Du Pont De Nemours 12,475,000
- --------------------------------------------------------------------
160,700 Federal Signal Corp. 3,595,663
- --------------------------------------------------------------------
180,000 Loews Corp. 26,392,500
- --------------------------------------------------------------------
250,100 Tyco International Ltd. 15,193,575
- --------------------------------------------------------------------
58,880,363
- --------------------------------------------------------------------
</TABLE>
7
<PAGE>
Financials
<TABLE>
<C> <S> <C>
SHARES MARKET VALUE
CONTAINERS - 0.58%
523,100 Ball Corp. $ 14,450,638
- ------------------------------------------------------------------------
275,000 First Brands Corp. 12,581,250
- ------------------------------------------------------------------------
27,031,888
- ------------------------------------------------------------------------
COSMETICS & TOILETRIES - 0.51%
256,600 Alberto-Culver Co. 6,928,200
- ------------------------------------------------------------------------
100,000 Gillette Co. (The) 4,837,500
- ------------------------------------------------------------------------
150,000 Procter & Gamble Co. 12,150,000
- ------------------------------------------------------------------------
23,915,700
- ------------------------------------------------------------------------
ELECTRONIC COMPONENTS/MISCELLANEOUS - 2.01%
622,800 Anixter International Inc.(a) 11,911,050
- ------------------------------------------------------------------------
49,900 AVX Corp. 1,553,138
- ------------------------------------------------------------------------
449,700 Tektronix, Inc. 26,644,725
- ------------------------------------------------------------------------
1,600,000 Teradyne, Inc.(a) 53,400,000
- ------------------------------------------------------------------------
93,508,913
- ------------------------------------------------------------------------
ELECTRONIC/DEFENSE - 0.26%
200,000 Sundstrand Corp. 12,250,000
- ------------------------------------------------------------------------
ELECTRONIC/PC DISTRIBUTORS - 2.01%
850,000 Arrow Electronics, Inc.(a) 43,137,500
- ------------------------------------------------------------------------
1,000,000 Avnet, Inc. 50,375,000
- ------------------------------------------------------------------------
93,512,500
- ------------------------------------------------------------------------
FINANCE (ASSET MANAGEMENT) - 1.03%
668,600 Finova Group, Inc. 30,254,150
- ------------------------------------------------------------------------
815,600 PaineWebber Group, Inc. 17,943,200
- ------------------------------------------------------------------------
48,197,350
- ------------------------------------------------------------------------
FINANCE (CONSUMER CREDIT) - 5.91%
300,000 American Express Co. 12,187,500
- ------------------------------------------------------------------------
1,196,800 Countrywide Credit Industries, Inc. 26,479,200
- ------------------------------------------------------------------------
450,000 Dean Witter Discover & Co. 22,387,500
- ------------------------------------------------------------------------
500,000 Federal Home Loan Mortgage Corp. 34,625,000
- ------------------------------------------------------------------------
33,700 Federal National Mortgage Association 3,534,288
- ------------------------------------------------------------------------
800,000 First USA, Inc. 36,800,000
- ------------------------------------------------------------------------
1,608,200 Green Tree Acceptance, Inc. 42,818,325
- ------------------------------------------------------------------------
1,088,200 MBNA Corp. 40,127,375
- ------------------------------------------------------------------------
650,000 Mercury Finance Co. 12,512,500
- ------------------------------------------------------------------------
252,300 PMI Group, Inc. (The) 12,110,400
- ------------------------------------------------------------------------
250,000 Student Loan Marketing Association 14,718,750
- ------------------------------------------------------------------------
51,400 SunAmerica, Inc. 3,199,650
- ------------------------------------------------------------------------
500,000 United Companies Financial Corp. 14,125,000
- ------------------------------------------------------------------------
275,625,488
- ------------------------------------------------------------------------
</TABLE>
8
<PAGE>
Financials
<TABLE>
<C> <S> <C>
SHARES MARKET VALUE
FINANCE (SAVINGS & LOAN) - 0.45%
783,800 Greenpoint Financial Corp. $ 21,162,600
- --------------------------------------------------------------------
FOOD PROCESSING - 0.73%
300,000 ConAgra, Inc. 11,587,500
- --------------------------------------------------------------------
651,600 Hudson Foods, Inc. 9,203,850
- --------------------------------------------------------------------
394,233 Lancaster Colony Corp. 13,108,247
- --------------------------------------------------------------------
33,899,597
- --------------------------------------------------------------------
FUNERAL SERVICES - 0.78%
61,200 Loewen Group, Inc. 2,450,870
- --------------------------------------------------------------------
840,200 Service Corp. International 33,713,025
- --------------------------------------------------------------------
36,163,895
- --------------------------------------------------------------------
HOTELS/MOTELS - 0.33%
600,000 La Quinta Motor Inns, Inc. 15,450,000
- --------------------------------------------------------------------
INSURANCE (MULTI-LINE PROPERTY) - 1.59%
750,000 ACE, Ltd. 25,500,000
- --------------------------------------------------------------------
250,000 CIGNA Corp. 24,781,250
- --------------------------------------------------------------------
76,900 General Re Corp. 11,140,888
- --------------------------------------------------------------------
218,300 Mid Ocean Ltd. 7,722,363
- --------------------------------------------------------------------
236,600 Prudential Reinsurance Holdings(a) 4,820,725
- --------------------------------------------------------------------
73,965,226
- --------------------------------------------------------------------
LEISURE & RECREATION - 0.75%
1,003,900 Carnival Cruise Lines, Inc. 23,340,675
- --------------------------------------------------------------------
400,000 Mattel, Inc. 11,500,000
- --------------------------------------------------------------------
34,840,675
- --------------------------------------------------------------------
MACHINERY (HEAVY) - 0.25%
300,000 Case Corp. 11,437,500
- --------------------------------------------------------------------
MACHINERY (MISCELLANEOUS) - 1.52%
1,600,000 American Standard Companies(a) 42,800,000
- --------------------------------------------------------------------
610,350 Thermo Electron Corp.(a) 28,076,100
- --------------------------------------------------------------------
70,876,100
- --------------------------------------------------------------------
MEDICAL (DRUGS) - 5.55%
600,000 Abbott Laboratories 23,850,000
- --------------------------------------------------------------------
425,000 American Home Products Corp. 37,665,625
- --------------------------------------------------------------------
590,000 AmeriSource Health Corp.(a) 16,077,500
- --------------------------------------------------------------------
357,700 Cardinal Health, Inc. 18,376,838
- --------------------------------------------------------------------
781,400 Mallinckrodt Group, Inc. 27,153,650
- --------------------------------------------------------------------
225,000 Merck & Co., Inc. 12,937,500
- --------------------------------------------------------------------
1,432,100 Mylan Laboratories, Inc. 27,209,900
- --------------------------------------------------------------------
</TABLE>
9
<PAGE>
Financials
<TABLE>
<C> <S> <C>
SHARES MARKET VALUE
Medical (Drugs) - continued
470,000 Pfizer, Inc. $ 26,966,250
- -------------------------------------------------------------------
7,500 Rhone-Poulenc Rorer Inc. 353,438
- -------------------------------------------------------------------
1,000,000 Schering-Plough Corp. 53,625,000
- -------------------------------------------------------------------
325,000 Watson Pharmaceuticals, Inc.(a) 14,543,750
- -------------------------------------------------------------------
258,759,451
- -------------------------------------------------------------------
MEDICAL (INSTRUMENTS/PRODUCTS) - 2.90%
325,000 Baxter International Inc. 12,553,125
- -------------------------------------------------------------------
200,000 Becton, Dickinson & Co. 13,000,000
- -------------------------------------------------------------------
744,600 Biomet, Inc.(a) 12,378,975
- -------------------------------------------------------------------
216,600 Boston Scientific Corp.(a) 9,124,275
- -------------------------------------------------------------------
100,000 Cordis Corp. (a) 11,050,000
- -------------------------------------------------------------------
601,300 Heart Technology Inc.(a) 17,137,050
- -------------------------------------------------------------------
406,400 Medtronic, Inc. 23,469,600
- -------------------------------------------------------------------
200,000 St. Jude Medical, Inc. 10,650,000
- -------------------------------------------------------------------
75,000 Stryker Corp. 3,384,375
- -------------------------------------------------------------------
525,000 Sybron International Corp.(a) 22,312,500
- -------------------------------------------------------------------
135,059,900
- -------------------------------------------------------------------
MEDICAL (PATIENT SERVICES) - 3.49%
822,500 Apria Healthcare Group, Inc.(a) 17,786,563
- -------------------------------------------------------------------
500,000 Columbia/HCA Healthcare Corp. 24,562,500
- -------------------------------------------------------------------
510,000 Health Management Associates, Inc.(a) 10,965,000
- -------------------------------------------------------------------
500,000 Healthsource, Inc.(a) 26,500,000
- -------------------------------------------------------------------
1,800,000 Healthsouth Corp.(a) 47,025,000
- -------------------------------------------------------------------
600,000 Lincare Holdings, Inc.(a) 14,925,000
- -------------------------------------------------------------------
750,000 Vencor, Inc.(a) 20,812,500
- -------------------------------------------------------------------
162,576,563
- -------------------------------------------------------------------
OFFICE AUTOMATION - 0.96%
350,000 Xerox Corp. 45,412,500
- -------------------------------------------------------------------
OFFICE PRODUCTS - 0.65%
400,000 Avery Dennison Corp. 17,900,000
- -------------------------------------------------------------------
350,000 Reynolds & Reynolds Co. 12,468,750
- -------------------------------------------------------------------
30,368,750
- -------------------------------------------------------------------
OIL EQUIPMENT & SUPPLIES - 0.13%
148,300 Halliburton Co. 6,154,450
- -------------------------------------------------------------------
PAPER & FOREST PRODUCTS - 0.60%
225,000 Champion International Corp. 12,037,500
- -------------------------------------------------------------------
279,800 Mead Corp. (The) 16,123,475
- -------------------------------------------------------------------
28,160,975
- -------------------------------------------------------------------
</TABLE>
10
<PAGE>
Financials
<TABLE>
<C> <S> <C>
SHARES MARKET VALUE
PUBLISHING - 0.20%
235,500 Harcourt General, Inc. $ 9,331,688
- ------------------------------------------------------------------
RESTAURANTS - 0.27%
400,000 Outback Steakhouse Inc.(a) 12,550,000
- ------------------------------------------------------------------
RETAIL (FOOD & DRUG) - 2.05%
1,000,000 Hannaford Bros. Co. 26,125,000
- ------------------------------------------------------------------
805,700 Kroger Co.(a) 26,890,238
- ------------------------------------------------------------------
900,000 Safeway Inc.(a) 42,525,000
- ------------------------------------------------------------------
95,540,238
- ------------------------------------------------------------------
RETAIL (STORES) - 3.99%
637,300 AutoZone, Inc.(a) 15,773,175
- ------------------------------------------------------------------
1,000,000 Circuit City Stores, Inc. 33,375,000
- ------------------------------------------------------------------
1,500,000 Consolidated Stores Corp.(a) 34,687,500
- ------------------------------------------------------------------
625,000 Gap Inc. 24,609,375
- ------------------------------------------------------------------
1,500,000 Intimate Brands, Inc.(a) 25,125,000
- ------------------------------------------------------------------
393,750 Staples, Inc.(a) 10,483,594
- ------------------------------------------------------------------
261,200 Tandy Corp. 12,896,750
- ------------------------------------------------------------------
648,800 Viking Office Products Inc.(a) 28,871,600
- ------------------------------------------------------------------
185,821,994
- ------------------------------------------------------------------
SCIENTIFIC INSTRUMENTS - 1.10%
1,000,000 Varian Associates, Inc. 51,375,000
- ------------------------------------------------------------------
SEMICONDUCTORS - 12.94%
1,000,000 Analog Devices, Inc.(a) 36,125,000
- ------------------------------------------------------------------
2,000,000 Applied Materials, Inc.(a) 100,250,000
- ------------------------------------------------------------------
508,700 Atmel Corp.(a) 15,896,875
- ------------------------------------------------------------------
250,000 Cirrus Logic, Inc.(a) 10,531,250
- ------------------------------------------------------------------
600,000 Cypress Semiconductor Corp.(a) 21,150,000
- ------------------------------------------------------------------
1,000,000 Integrated Device Technology, Inc.(a) 19,000,000
- ------------------------------------------------------------------
150,000 Intel Corp. 10,481,250
- ------------------------------------------------------------------
651,000 KLA Instruments Corp.(a) 27,830,250
- ------------------------------------------------------------------
900,000 LAM Research Corp.(a) 54,787,500
- ------------------------------------------------------------------
450,000 Linear Technology Corp. 19,687,500
- ------------------------------------------------------------------
300,000 LSI Logic Corp.(a) 14,137,500
- ------------------------------------------------------------------
1,200,000 Micron Technology Inc. 84,750,000
- ------------------------------------------------------------------
175,000 Motorola, Inc. 11,484,375
- ------------------------------------------------------------------
400,000 National Semiconductor Corp.(a) 9,750,000
- ------------------------------------------------------------------
250,000 Novellus Systems, Inc.(a) 17,218,750
- ------------------------------------------------------------------
</TABLE>
11
<PAGE>
Financials
<TABLE>
<C> <S> <C>
SHARES MARKET VALUE
Semiconductors - (continued)
718,300 Solectron Corp.(a) $ 28,911,575
- -----------------------------------------------------------------------------
1,000,000 Texas Instruments Inc. 68,250,000
- -----------------------------------------------------------------------------
700,000 Vishay Intertechnology, Inc.(a) 24,675,000
- -----------------------------------------------------------------------------
500,000 VLSI Technology Inc.(a) 11,750,000
- -----------------------------------------------------------------------------
350,000 Xilinx, Inc.(a) 16,100,000
- -----------------------------------------------------------------------------
602,766,825
- -----------------------------------------------------------------------------
SHOES & RELATED APPAREL - 0.61%
500,000 NIKE, Inc. - Class B 28,375,000
- -----------------------------------------------------------------------------
TELECOMMUNICATIONS - 1.41%
800,000 AT&T Corp. 51,200,000
- -----------------------------------------------------------------------------
429,000 Tellabs, Inc.(a) 14,586,000
- -----------------------------------------------------------------------------
65,786,000
- -----------------------------------------------------------------------------
TOBACCO - 1.99%
1,100,000 Philip Morris Companies, Inc. 92,950,000
- -----------------------------------------------------------------------------
TRANSPORTATION - MISCELLANEOUS - 0.25%
390,200 Stolt Nielsen S.A. 11,706,000
- -----------------------------------------------------------------------------
Total Domestic Common Stocks 3,839,832,568
- -----------------------------------------------------------------------------
PRINCIPAL
AMOUNT
CONVERTIBLE CORPORATE BONDS - 1.65%
COMPUTER SOFTWARE/SERVICES - 0.18%
$ 9,580,000 SoftKey International Inc., Conv. Sr. Notes,
5.50%, 11/01/00(b)
(acquired 10/17/95; cost $9,580,000) 8,095,100
- -----------------------------------------------------------------------------
ELECTRONIC COMPONENTS/MISCELLANEOUS - 0.44%
15,215,000 Altera Corp., Conv. Sub. Notes, 5.75%,
06/15/02(b)
(acquired 7/27/95-10/17/95; cost
$20,134,139) 20,502,213
- -----------------------------------------------------------------------------
OFFICE AUTOMATION - 0.55%
19,500,000 Danka Business Systems PLC, Conv. Yankee Sub.
Notes, 6.75%, 04/01/02(b)
(acquired 10/26/95; cost $24,960,000) 25,740,000
- -----------------------------------------------------------------------------
RETAIL STORES - 0.48%
34,400,000 Office Depot Inc., Liquid Yield Option Notes,
4.00%, 11/01/08(c) 22,532,000
- -----------------------------------------------------------------------------
Total Convertible Corporate Bonds 76,869,313
- -----------------------------------------------------------------------------
SHARES
CONVERTIBLE PREFERRED STOCKS - 0.22%
FINANCE (CONSUMER CREDIT) - 0.22%
165,000 SunAmerica Inc. - Series E, $3.10 Conv. Pfd. 10,230,000
- -----------------------------------------------------------------------------
Total Convertible Preferred Stocks 10,230,000
- -----------------------------------------------------------------------------
</TABLE>
12
<PAGE>
Financials
<TABLE>
<C> <S> <C>
SHARES MARKET VALUE
FOREIGN STOCKS & OTHER EQUITY INTERESTS - 10.98%
AUSTRALIA - 0.36%
1,255,832 Broken Hill Proprietary Co. Ltd. (Conglomerates) $ 17,008,450
- -----------------------------------------------------------------------------
CANADA - 0.54%
694,900 Northern Telecom Ltd. (Telecommunications) 25,016,400
- -----------------------------------------------------------------------------
DENMARK - 0.28%
290,000 Danisco A/S (Food Processing) 13,215,593
- -----------------------------------------------------------------------------
FINLAND - 0.55%
400,000 Nokia Corp. - ADR (Telecommunications) 22,300,000
- -----------------------------------------------------------------------------
55,450 Nokia Corp. (Telecommunications) 3,172,226
- -----------------------------------------------------------------------------
25,472,226
- -----------------------------------------------------------------------------
FRANCE - 0.28%
65,500 LVMH Moet Hennessy Louis Vuitton (Beverages) 13,032,760
- -----------------------------------------------------------------------------
GERMANY - 0.35%
30,400 Mannesmann A.G. (Machinery - Miscellaneous) 10,005,889
- -----------------------------------------------------------------------------
158,000 Veba A.G. (Electric Services) 6,486,800
- -----------------------------------------------------------------------------
16,492,689
- -----------------------------------------------------------------------------
HONG KONG - 1.05%
820,000 HSBC Holdings PLC (Banking) 11,931,399
- -----------------------------------------------------------------------------
3,077,000 Hutchison Whampoa Ltd. (Conglomerates) 16,953,208
- -----------------------------------------------------------------------------
2,505,000 Sun Hung Kai Properties Ltd. (Real Estate) 20,006,434
- -----------------------------------------------------------------------------
48,891,041
- -----------------------------------------------------------------------------
ISRAEL - 0.53%
625,000 Teva Pharmaceutical Industries Ltd. - ADR
(Medical - Drugs) 24,531,250
- -----------------------------------------------------------------------------
ITALY - 0.35%
167,000 Fila Holding S.p.A. - ADR (Retail Stores) 7,201,875
- -----------------------------------------------------------------------------
2,919,000 Telecom Italia Mobile S.p.A.(a)
(Telecommunications) 4,909,560
- -----------------------------------------------------------------------------
2,919,000 Telecom Italia S.p.A. (Telecommunications) 4,471,893
- -----------------------------------------------------------------------------
16,583,328
- -----------------------------------------------------------------------------
MALAYSIA - 0.58%
2,149,000 Malayan Banking Berhad (Banking) 17,337,465
- -----------------------------------------------------------------------------
1,600,000 United Engineers (Building Materials) 9,948,839
- -----------------------------------------------------------------------------
27,286,304
- -----------------------------------------------------------------------------
NETHERLANDS - 0.79%
550,000 Elsag Bailey Process Automation N.V. - ADR(a)
(Electronic Components/Miscellaneous) 14,987,500
- -----------------------------------------------------------------------------
276,100 Philips Electronics N.V. - New York Shares - ADR
(Electronics) 10,664,363
- -----------------------------------------------------------------------------
120,000 Wolters Kluwer N.V. (Publishing) 10,921,536
- -----------------------------------------------------------------------------
36,573,399
- -----------------------------------------------------------------------------
</TABLE>
13
<PAGE>
Financials
<TABLE>
<C> <S> <C>
SHARES MARKET VALUE
NEW ZEALAND - 0.22%
2,500,000 Telecom Corp. of New Zealand (Telecommunications) $ 10,380,222
- -------------------------------------------------------------------------------
SINGAPORE - 0.20%
1,513,000 City Developments Ltd. (Real Estate) 9,369,249
- -------------------------------------------------------------------------------
SWEDEN - 3.62%
250,000 ASEA AB-B Shares (Conglomerates) 24,658,916
- -------------------------------------------------------------------------------
712,200 ASTRA AB-A Shares (Medical - Drugs) 26,168,840
- -------------------------------------------------------------------------------
625,000 ASTRA AB-B Shares (Medical - Drugs) 22,588,320
- -------------------------------------------------------------------------------
958,900 Pharmacia AB-A Shares (Medical - Drugs) 33,356,308
- -------------------------------------------------------------------------------
719,100 Pharmacia Aktiebolaget SP - ADR (Medical - Drugs) 25,168,500
- -------------------------------------------------------------------------------
490,000 Skandia Forsakrings (Insurance - Multi-Line
Property) 12,433,364
- -------------------------------------------------------------------------------
1,141,976 Telefonaktiebolaget L.M.Ericsson - ADR
(Telecommunications) 24,391,922
- -------------------------------------------------------------------------------
168,766,170
- -------------------------------------------------------------------------------
SWITZERLAND - 0.71%
6,500 BBC Brown Boveri Ltd. (Conglomerates) 7,540,298
- -------------------------------------------------------------------------------
29,200 Ciba-Geigy Ltd. (Medical - Drugs) 25,282,833
- -------------------------------------------------------------------------------
32,823,131
- -------------------------------------------------------------------------------
UNITED KINGDOM - 0.57%
190,300 Danka Business Systems PLC - ADR (Office
Automation) 6,375,050
- -------------------------------------------------------------------------------
1,000,000 Granada Group PLC (Leisure & Recreation) 10,679,841
- -------------------------------------------------------------------------------
410,000 Thorn EMI PLC (Leisure & Recreation) 9,548,300
- -------------------------------------------------------------------------------
26,603,191
- -------------------------------------------------------------------------------
Total Foreign Stocks & Other Equity Interests 512,045,403
- -------------------------------------------------------------------------------
PRINCIPAL
AMOUNT
REPURCHASE AGREEMENT - 0.03%(d)
$ 1,274,793 Daiwa Securities America Inc., 5.90%, 11/01/95(e) 1,274,793
- -------------------------------------------------------------------------------
Total Repurchase Agreement 1,274,793
- -------------------------------------------------------------------------------
TIME DEPOSIT - 4.40%
205,000,000 Cayman Time Deposit, 5.75%, 11/01/95 205,000,000
- -------------------------------------------------------------------------------
Total Time Deposit 205,000,000
- -------------------------------------------------------------------------------
TOTAL INVESTMENTS - 99.66% 4,645,252,077
- -------------------------------------------------------------------------------
OTHER ASSETS LESS LIABILITIES - 0.34% 16,046,672
- -------------------------------------------------------------------------------
NET ASSETS - 100.00% $4,661,298,749
===============================================================================
</TABLE>
14
<PAGE>
Financials
Abbreviations:
ADR - American Depositary Receipt
NOTES TO SCHEDULE OF INVESTMENTS:
(a) Non-income producing security.
(b) Restricted Security. May be resold to qualified institutional buyers in
accordance with the provisions of Rule 144A under the Securities Act of
1933, as amended. The valuation of the securities has been determined in
accordance with procedures established by the Board of Directors. The
aggregate market value of these securities at October 31, 1995 was
$54,337,313 which represented 1.17% of the net assets.
(c) Zero coupon bond. The interest rate shown represents the rate of original
issue discount.
(d) 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% 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.
(e) Joint repurchase agreement entered into 10/31/95 with a maturing value of
$401,494,641. Collateralized by $353,853,000 U.S. Treasury Notes, 8.375%
due 08/15/08.
See Notes to Financial Statements.
15
<PAGE>
Financials
STATEMENT OF ASSETS AND LIABILITIES
October 31, 1995
<TABLE>
<S> <C>
ASSETS:
Investments, at market value (cost $3,692,990,886) $4,645,252,077
- -------------------------------------------------------------------------
Foreign currencies, at market value (cost $19,248,298) 18,855,785
- -------------------------------------------------------------------------
Receivables for:
Investments sold 81,804,922
- -------------------------------------------------------------------------
Capital stock sold 7,671,955
- -------------------------------------------------------------------------
Dividends and interest 2,040,054
- -------------------------------------------------------------------------
Investment for deferred compensation plan 59,337
- -------------------------------------------------------------------------
Other assets 111,757
- -------------------------------------------------------------------------
Total assets 4,755,795,887
- -------------------------------------------------------------------------
LIABILITIES:
Payables for:
Investments purchased 79,969,614
- -------------------------------------------------------------------------
Capital stock reacquired 8,329,522
- -------------------------------------------------------------------------
Deferred compensation 59,337
- -------------------------------------------------------------------------
Options repurchased 467,407
- -------------------------------------------------------------------------
Accrued advisory fees 2,411,107
- -------------------------------------------------------------------------
Accrued administrative service fees 33,042
- -------------------------------------------------------------------------
Accrued distribution fees 1,766,732
- -------------------------------------------------------------------------
Accrued transfer agent fees 474,454
- -------------------------------------------------------------------------
Accrued operating expenses 985,923
- -------------------------------------------------------------------------
Total liabilities 94,497,138
- -------------------------------------------------------------------------
Net assets applicable to shares outstanding $4,661,298,749
=========================================================================
NET ASSETS:
Class A $4,564,729,631
=========================================================================
Class B $ 42,237,610
=========================================================================
Institutional Class $ 54,331,508
=========================================================================
CAPITAL STOCK, $.001 PAR VALUE PER SHARE:
Class A:
Authorized 750,000,000
- -------------------------------------------------------------------------
Outstanding 224,564,125
=========================================================================
Class B:
Authorized 750,000,000
- -------------------------------------------------------------------------
Outstanding 2,082,509
=========================================================================
Institutional Class:
Authorized 200,000,000
- -------------------------------------------------------------------------
Outstanding 2,652,632
=========================================================================
CLASS A:
Net asset value and redemption price per share $20.33
=========================================================================
Offering price per share:
(Net asset value of $20.33 divided by 94.50%) $21.51
=========================================================================
CLASS B:
Net asset value and offering price per share $20.28
=========================================================================
INSTITUTIONAL CLASS:
Net asset value, offering and redemption price per share $20.48
=========================================================================
</TABLE>
See Notes to Financial Statements.
16
<PAGE>
Financials
STATEMENT OF OPERATIONS
For the year ended October 31, 1995
<TABLE>
<S> <C>
INVESTMENT INCOME:
Dividends (net of $693,812 foreign withholding tax) $ 38,215,389
- ------------------------------------------------------------------------
Interest 8,498,626
- ------------------------------------------------------------------------
Total investment income 46,714,015
- ------------------------------------------------------------------------
EXPENSES:
Advisory fees 26,291,625
- ------------------------------------------------------------------------
Administrative service fees 182,595
- ------------------------------------------------------------------------
Custodian fees 871,313
- ------------------------------------------------------------------------
Directors' fees 42,436
- ------------------------------------------------------------------------
Distribution fees-Class A 12,217,290
- ------------------------------------------------------------------------
Distribution fees-Class B 68,621
- ------------------------------------------------------------------------
Transfer agent fees-Class A 7,784,636
- ------------------------------------------------------------------------
Transfer agent fees-Class B 15,054
- ------------------------------------------------------------------------
Transfer agent fees-Institutional Class 2,913
- ------------------------------------------------------------------------
Other 1,340,482
- ------------------------------------------------------------------------
Total expenses 48,816,965
- ------------------------------------------------------------------------
Less fees waived by advisor (843,494)
- ------------------------------------------------------------------------
Net expenses 47,973,471
- ------------------------------------------------------------------------
Net investment income (loss) (1,259,456)
- ------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENT
SECURITIES, FOREIGN CURRENCIES, FUTURES AND OPTIONS
CONTRACTS:
Net realized gain on sales of:
Investment securities 610,490,585
- ------------------------------------------------------------------------
Foreign currencies 966,904
- ------------------------------------------------------------------------
Futures contracts 6,404,690
- ------------------------------------------------------------------------
Options contracts 2,779,330
- ------------------------------------------------------------------------
620,641,509
- ------------------------------------------------------------------------
Net unrealized appreciation (depreciation) of:
Investment securities 416,011,617
- ------------------------------------------------------------------------
Foreign currencies (751,970)
- ------------------------------------------------------------------------
Futures contracts (4,057,387)
- ------------------------------------------------------------------------
411,202,260
- ------------------------------------------------------------------------
Net gain on investment securities, foreign currencies,
futures and options contracts 1,031,843,769
- ------------------------------------------------------------------------
Net increase in net assets resulting from operations $1,030,584,313
========================================================================
</TABLE>
See Notes to Financial Statements.
17
<PAGE>
Financials
STATEMENT OF CHANGES IN NET ASSETS
For the years ended October 31, 1995 and 1994
<TABLE>
<CAPTION>
1995 1994
<S> <C> <C>
OPERATIONS:
Net investment income (loss) $ (1,259,456) $ 18,228,044
- -------------------------------------------------------------------------------
Net realized gain on sales of investment
securities, foreign currencies, futures
and options contracts 620,641,509 387,037,586
- -------------------------------------------------------------------------------
Net unrealized appreciation (depreciation)
of investment securities, foreign
currencies, and futures contracts 411,202,260 (259,837,784)
- -------------------------------------------------------------------------------
Net increase in net assets resulting from
operations 1,030,584,313 145,427,846
- -------------------------------------------------------------------------------
Dividends to shareholders from net investment
income:
Class A (14,842,521) (29,907,523)
- -------------------------------------------------------------------------------
Class B -- --
- -------------------------------------------------------------------------------
Institutional Class (290,923) (363,799)
- -------------------------------------------------------------------------------
Distributions to shareholders from net
realized gains on investment securities:
Class A (387,332,253) (89,314,780)
- -------------------------------------------------------------------------------
Class B -- --
- -------------------------------------------------------------------------------
Institutional Class (4,072,920) (724,291)
- -------------------------------------------------------------------------------
Net equalization credits (charges):
Class A 204,025 (10,126,574)
- -------------------------------------------------------------------------------
Class B 297,921 --
- -------------------------------------------------------------------------------
Institutional Class 71,195 1,640
- -------------------------------------------------------------------------------
Share transactions-net:
Class A (17,628,236) (1,048,548,626)
- -------------------------------------------------------------------------------
Class B 41,458,876 --
- -------------------------------------------------------------------------------
Institutional Class 6,504,480 96,085
- -------------------------------------------------------------------------------
Net increase (decrease) in net assets 654,953,957 (1,033,460,022)
- -------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 4,006,344,792 5,039,804,814
- -------------------------------------------------------------------------------
End of period $4,661,298,749 $ 4,006,344,792
===============================================================================
NET ASSETS CONSIST OF:
Capital (par value and additional paid-in) $3,070,552,699 $ 3,040,217,579
- -------------------------------------------------------------------------------
Undistributed net investment income 25,028,873 40,848,632
- -------------------------------------------------------------------------------
Undistributed net realized gain on sales of
investment securities, foreign currencies,
futures and options contracts 613,833,040 384,596,704
- -------------------------------------------------------------------------------
Unrealized appreciation of investment
securities, foreign currencies, and
futures contracts 951,884,137 540,681,877
- -------------------------------------------------------------------------------
$4,661,298,749 $ 4,006,344,792
===============================================================================
</TABLE>
See Notes to Financial Statements.
18
<PAGE>
Financials
NOTES TO FINANCIAL STATEMENTS
October 31, 1995
NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES
AIM Weingarten 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 Weingarten Fund, AIM Charter Fund, AIM Constellation Fund and AIM
Aggressive Growth Fund. The Fund currently offers three different classes of
shares: the Class A shares (formerly "Retail Shares"), Class B shares and the
Institutional Class. Matters affecting each portfolio or class will be voted on
exclusively by such shareholders. 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. If a mean is
not available, as is the case in some foreign markets, the closing bid will
be used absent a last sales price. 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 or absent a last sales price, at the mean
of the closing bid and asked prices. 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. Generally, trading in foreign securities is
substantially completed each day at various times prior to the close of the
New York Stock Exchange. 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 New York Stock Exchange. 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 New York Stock
Exchange which will 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 Directors.
B. 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.
C. 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 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.
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 or cash, and/or by securing a
standby letter of credit from a major commercial bank, as collateral, for
the account of the broker (the Fund's agent in acquiring the futures
position). During the period the futures contract is open, changes in the
value of the contract are recognized as unrealized gains or losses by
"marking to market" on a daily basis to reflect the market value of the
contract 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 contract is closed, the Fund records 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 the
contract may not correlate with changes in the securities being hedged.
E. Covered Call Options - The Fund may write call options, but only on a
covered basis; that is, the Fund will own the underlying security. Options
written by the Fund normally will have expiration dates between three and
nine months from the date written. The exercise price of a call option may
be below, equal to, or above the current market value of the underlying
security at the time the option is written. When the Fund writes a covered
call option, an amount equal to the premium received by the Fund is recorded
as an asset and an equivalent liability. The amount of the liability is
subsequently "marked-to-market" to reflect the current market value of the
option written. The current market value of a written option is the last
sale price, or in the absence of a sale, the mean between the last bid and
asked prices on that day. If a written call option expires on the stipulated
expiration date, or if the Fund enters into a closing purchase transaction,
the Fund realizes a gain (or a loss if the closing purchase transaction
exceeds the premium received when the option was written) without regard to
any unrealized gain or loss on the underlying security, and the liability
related to such option is extinguished. If a written option is exercised,
the Fund realizes a gain or a loss from the sale of the underlying security
and the proceeds of the sale are increased by the premium originally
received.
A call option gives the purchaser of such option the right to buy, and the
writer (the Fund) the obligation to sell, the underlying security at the
stated exercise price during the option period. The purchaser of a call
option has the right to acquire the security which is the subject of the call
option at any time during the option period. During the option period, in
return for the premium paid by the purchaser of the option, the Fund has
given up the opportunity for
19
<PAGE>
Financials
capital appreciation above the exercise price should the market price of the
underlying security increase, but has retained the risk of loss should the
price of the underlying security decline. During the option period, the Fund
may be required at any time to deliver the underlying security against
payment of the exercise price. This obligation is terminated upon the
expiration of the option period or at such earlier time at which the Fund
effects a closing purchase transaction by purchasing (at a price which may be
higher than that received when the call option was written) a call option
identical to the one originally written. The Fund will not write a covered
call option if, immediately thereafter, the aggregate value of the securities
underlying all such options, determined as of the dates such options were
written, would exceed 25% of the net assets of the Fund.
F. 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 specific identification of 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.
G. 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.
H. Expenses - Operating expenses directly attributable to a class of shares are
charged to that class' operations. Expenses which are applicable to all
classes, e.g. advisory fees, are allocated among them.
I. Equalization - The Fund follows the accounting practice known as
equalization by which a portion of the proceeds from sales and the costs of
repurchases of Fund shares, equivalent on a per share basis to the amount of
undistributed net investment income, is credited or charged to undistributed
net income when the transaction is recorded so that undistributed net
investment income per share is unaffected by sales or redemptions of Fund
shares.
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"). The terms of the master investment advisory agreement
provide that the Fund shall pay an advisory fee to AIM at an annual rate of
1.0% of the first $30 million of the Fund's average daily net assets, plus
0.75% of the Fund's average daily net assets in excess of $30 million to and
including $350 million, plus 0.625% of the Fund's average daily net assets in
excess of $350 million. AIM is currently voluntarily waiving a portion of its
advisory fees payable by the Fund to AIM to the extent necessary to reduce the
fees paid by the Fund at net asset levels higher than those currently
incorporated in the present advisory fee schedule. AIM will receive a fee
calculated at the annual rate of 1.0% of the first $30 million of the Fund's
average daily net assets, plus 0.75% of the Fund's average daily net assets in
excess of $30 million to and including $350 million, plus 0.625% of the Fund's
average daily net assets in excess of $350 million to and including $2 billion,
plus 0.60% of the Fund's average daily net assets in excess of $2 billion to
and including $3 billion, plus 0.575% of the Fund's average daily net assets in
excess of $3 billion to and including $4 billion, plus 0.55% of the Fund's
average daily net assets in excess of $4 billion. The waiver of fees is
entirely voluntary and the Board of Directors of the Company would be advised
of any decision by AIM to discontinue the waiver. During the year ended October
31, 1995, AIM waived fees of $843,494. Under the terms of a master sub-advisory
agreement between AIM and A I M Capital Management, Inc. ("AIM Capital"), AIM
pays AIM Capital 50% of the amount paid by the Fund to AIM. These agreements
require 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 Fund, pursuant to a master administrative services agreement with AIM, has
agreed to reimburse AIM for certain administrative costs incurred in providing
accounting services to the Fund. During the year ended October 31, 1995, AIM
was reimbursed $182,595 for such services.
The Fund, pursuant to a transfer agency and service agreement, has agreed to
pay A I M Fund Services, Inc. ("AFS") for certain costs incurred in providing
transfer agency services to the Class A shares and Class B shares. During the
year ended October 31, 1995, AFS was reimbursed $4,016,831 for such services.
During the year ended October 31, 1995, the Fund, pursuant to a transfer
agency and service agreement, paid A I M Institutional Fund Services, Inc.
("AIFS") $1,260 for shareholder and transfer agency services with respect to
the Institutional Class. Effective July 1, 1995, AIFS became the exclusive
transfer agent for the Institutional Class of the Fund.
The Company has entered into a master distribution agreement with A I M
Distributors, Inc. ("AIM Distributors") to serve as the distributor for the
Class A and Class B shares and a master distribution agreement with Fund
Management Company ("FMC") to serve as the distributor for the Institutional
Class. The Company has adopted Plans pursuant to Rule 12b-1 under the 1940 Act
with respect to the Fund's Class A shares (the "Class A Plan") and with respect
to the Fund's Class B shares (the "Class B Plan") (collectively, the "Plans").
The Fund, pursuant to the Class A Plan, pays AIM Distributors compensation at
the annual rate of 0.30% of the average daily net assets attributable to the
Class A shares. The Class A Plan is designed to compensate AIM Distributors for
certain promotional and other sales related costs, and to implement a program
which provides periodic payments to selected dealers and financial institutions
who furnish continuing personal shareholder services to their customers who
purchase and own Class A shares of the Fund. The Fund, pursuant to the Class B
Plan, pays AIM Distributors compensation at an annual rate of 1.00% of the
average daily net assets attributable to the Class B shares. Of this amount,
the Fund may pay a service fee of 0.25% of the average daily net assets of the
Class B shares to selected dealers and financial institutions who furnish
continuing personal shareholder services to their customers who purchase and
own Class B shares of the Fund. Any amounts not paid as a service fee under
such 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. AIM Distributors may, from time to time,
assign, transfer or pledge to one or more designees, its rights to all or a
designated portion of (a) compensation received by AIM Distributors from the
Fund pursuant to the Class B Plan (but not AIM Distributors duties and
obligations pursuant to the Class B Plan) and (b) any contingent deferred sales
charges received by AIM Distributors related to the Class B shares. During the
year ended October 31, 1995 for the Class A shares and the period June 26, 1995
(date sales commenced) through October 31, 1995 for the Class B shares, the
Class A shares and the Class B shares paid AIM Distributors $12,217,290 and
$68,621, respectively, as compensation under the Plans.
AIM Distributors received commissions of $1,767,515 from sales of shares of
the Class A shares of the Fund during the year ended October 31, 1995. 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. Certain officers and
directors of the Company are officers and directors of AIM, AIM Capital, AIM
Distributors, AFS, AIFS and FMC.
During the year ended October 31, 1995, the Fund paid legal fees of $13,238
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.
20
<PAGE>
Financials
NOTE 3 - INVESTMENT SECURITIES
The aggregate amount of investment securities (other than short-term
securities) purchased and sold during the year ended October 31, 1995 was
$5,516,271,702 and $5,871,965,081, respectively.
The amount of unrealized appreciation (depreciation) of investment securities
on a tax basis as of October 31, 1995 is as follows:
<TABLE>
<S> <C>
Aggregate unrealized appreciation of investment securities $980,791,723
- ---------------------------------------------------------------------------
Aggregate unrealized (depreciation) of investment securities (39,012,965)
- ---------------------------------------------------------------------------
Net unrealized appreciation of investment securities $941,778,758
===========================================================================
</TABLE>
Cost of investments for tax purposes is $3,703,473,319.
NOTE 4 - DIRECTORS' FEES
Directors' fees represent remuneration paid or accrued to each director who is
not an "interested person" of AIM. The Company invests directors' fees, if so
elected by a director, in mutual fund shares in accordance with a deferred
compensation plan.
NOTE 5 - BANK BORROWINGS
The Fund has a $68,400,000 committed line of credit with a financial
institution syndicate with Chemical Bank of New York as the administrative
agent. Interest on borrowings under the line of credit is payable on maturity
or prepayment date. The Fund is charged a commitment fee, payable quarterly, at
the rate of 1/10 of 1% per annum on the unused balance of the Fund's
commitment.
NOTE 6 - OPTION CONTRACTS WRITTEN
Transactions in call options written during the year ended October 31, 1995 are
summarized as follows:
<TABLE>
<CAPTION>
OPTION CONTRACTS
---------------------
NUMBER OF PREMIUMS
CONTRACTS RECEIVED
--------- -----------
<S> <C> <C>
Beginning of year -- --
- -------------------------------------------------------------------------------
Written 29,413 $ 6,668,627
- -------------------------------------------------------------------------------
Closed (11,309) (3,032,287)
- -------------------------------------------------------------------------------
Exercised (4,833) (887,684)
- -------------------------------------------------------------------------------
Expired (13,271) (2,748,656)
- -------------------------------------------------------------------------------
End of year -- $ --
===============================================================================
</TABLE>
NOTE 7 - CAPITAL STOCK
Changes in the capital stock outstanding during the years ended October 31,
1995 and 1994 were as follows:
<TABLE>
<CAPTION>
1995 1994
-------------------------- ----------------------------
SHARES AMOUNT SHARES AMOUNT
----------- ------------- ----------- ---------------
<S> <C> <C> <C> <C>
Sold:
Class A 32,034,901 $ 559,325,258 22,715,102 $ 385,995,119
- -----------------------------------------------------------------------------------
Class B* 2,180,033 43,415,613 -- --
- -----------------------------------------------------------------------------------
Institutional Class 559,557 10,092,219 466,667 7,928,748
- -----------------------------------------------------------------------------------
Issued as a reinvestment
of dividends:
Class A 24,460,017 361,036,594 4,979,521 84,004,521
- -----------------------------------------------------------------------------------
Class B* -- -- -- --
- -----------------------------------------------------------------------------------
Institutional Class 199,304 2,950,819 42,665 721,040
- -----------------------------------------------------------------------------------
Reacquired:
Class A (54,445,065) (937,990,088) (88,892,319) (1,518,548,266)
- -----------------------------------------------------------------------------------
Class B* (97,524) (1,956,737) -- --
- -----------------------------------------------------------------------------------
Institutional Class (363,327) (6,538,558) (503,154) (8,553,703)
- -----------------------------------------------------------------------------------
4,527,896 $ 30,335,120 (61,191,518) $(1,048,452,541)
===================================================================================
</TABLE>
*Class B shares commenced sales on June 26, 1995.
21
<PAGE>
Financials
NOTE 8 - FINANCIAL HIGHLIGHTS
Shown below are the condensed financial highlights for a Class A share
outstanding during each of the years in the seven-year period ended October 31,
1995, the ten months ended October 31, 1988 and each of the years in the two-
year period ended December 31, 1987(a) and for a Class B share outstanding
during the period June 26, 1995 (date sales commenced) through October 31,
1995.
CLASS A:
<TABLE>
<CAPTION>
OCTOBER 31,
--------------------------------------------------------------------------------------------
<CAPTION>
1995 1994 1993 1992 1991 1990 1989 1988(b)
---------- ---------- ---------- ---------- ---------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of
period $ 17.82 $ 17.62 $ 16.68 $ 15.76 $ 11.15 $ 12.32 $ 9.23 $ 8.36
- ------------------ ---------- ---------- ---------- ---------- ---------- -------- -------- --------
Income from
investment
operations:
Net investment
income -- 0.07 0.10 0.10 0.11 0.09 0.10 0.07
- ------------------ ---------- ---------- ---------- ---------- ---------- -------- -------- --------
Net gains
(losses) on
securities (both
realized and
unrealized) 4.36 0.57 0.93 0.98 4.80 (0.56) 3.10 0.80
- ------------------ ---------- ---------- ---------- ---------- ---------- -------- -------- --------
Total from
investment
operations 4.36 0.64 1.03 1.08 4.91 (0.47) 3.20 0.87
- ------------------ ---------- ---------- ---------- ---------- ---------- -------- -------- --------
Less
distributions:
Dividends from
net investment
income (0.07) (0.11) (0.09) (0.07) (0.09) (0.06) (0.11) --
- ------------------ ---------- ---------- ---------- ---------- ---------- -------- -------- --------
Distributions
from net
realized capital
gains (1.78) (0.33) -- (0.09) (0.21) (0.64) -- --
- ------------------ ---------- ---------- ---------- ---------- ---------- -------- -------- --------
Total
distributions (1.85) (0.44) (0.09) (0.16) (0.30) (0.70) (0.11) --
- ------------------ ---------- ---------- ---------- ---------- ---------- -------- -------- --------
Net asset value,
end of period $ 20.33 $ 17.82 $ 17.62 $ 16.68 $ 15.76 $ 11.15 $ 12.32 $ 9.23
================== ========== ========== ========== ========== ========== ======== ======== ========
Total return(c) 28.20% 3.76% 6.17% 6.85% 44.88% (4.03)% 35.13% 10.41%
================== ========== ========== ========== ========== ========== ======== ======== ========
Ratios/supplemental
data:
Net assets, end of
period (000s
omitted) $4,564,730 $3,965,858 $4,999,983 $5,198,835 $2,534,331 $632,522 $393,320 $297,284
================== ========== ========== ========== ========== ========== ======== ======== ========
Ratio of expenses
to average net
assets 1.2%(d) 1.2% 1.1% 1.1% 1.2% 1.3% 1.2% 1.1%(f)
================== ========== ========== ========== ========== ========== ======== ======== ========
Ratio of net
investment income
to average net
assets 0.0%(d) 0.4% 0.6% 0.6% 0.7% 0.8% 1.0% 0.9%(f)
================== ========== ========== ========== ========== ========== ======== ======== ========
Portfolio turnover
rate 139% 136% 109% 37% 46% 79% 87% 93%
================== ========== ========== ========== ========== ========== ======== ======== ========
Borrowings for the
period:
Amount of debt
outstanding at
end of period
(000s omitted) -- -- -- -- -- -- $ 3,781 --
================== ========== ========== ========== ========== ========== ======== ======== ========
Average amount of
debt outstanding
during the period
(000s omitted)(e) $ 593 -- -- -- -- $ 485 $ 1,083 $ 229
================== ========== ========== ========== ========== ========== ======== ======== ========
Average number of
shares
outstanding
during the period
(000s omitted)(e) 229,272 249,351 314,490 246,273 102,353 44,770 31,275 33,031
================== ========== ========== ========== ========== ========== ======== ======== ========
Average amount of
debt per share
during the period $ 0.0026 -- -- -- -- $ 0.011 $ 0.035 $ 0.007
================== ========== ========== ========== ========== ========== ======== ======== ========
DECEMBER 31,
-------------------
1987 1986(b)
--------- ---------
<S> <C> <C>
Net asset value,
beginning of
period $ 8.82 $ 9.10
- -------------------- --------- ---------
Income from
investment
operations:
Net investment
income 0.07 0.09
- -------------------- --------- ---------
Net gains
(losses) on
securities (both
realized and
unrealized) 0.83 2.11
- -------------------- --------- ---------
Total from
investment
operations 0.90 2.20
- -------------------- --------- ---------
Less
distributions:
Dividends from
net investment
income (0.09) (0.09)
- -------------------- --------- ---------
Distributions
from net
realized capital
gains (1.27) (2.39)
- -------------------- --------- ---------
Total
distributions (1.36) (2.48)
- -------------------- --------- ---------
Net asset value,
end of period $ 8.36 $ 8.82
==================== ========= =========
Total return(c) 9.75% 25.06%
==================== ========= =========
Ratios/supplemental
data:
Net assets, end of
period (000s
omitted) $286,453 $171,138
==================== ========= =========
Ratio of expenses
to average net
assets 1.0% 1.0%
==================== ========= =========
Ratio of net
investment income
to average net
assets 0.7% 0.8%
==================== ========= =========
Portfolio turnover
rate 108% 113%
==================== ========= =========
Borrowings for the
period:
Amount of debt
outstanding at
end of period
(000s omitted) $ 355 --
==================== ========= =========
Average amount of
debt outstanding
during the period
(000s omitted)(e) $ 509 $ 56
==================== ========= =========
Average number of
shares
outstanding
during the period
(000s omitted)(e) 25,825 18,519
==================== ========= =========
Average amount of
debt per share
during the period $ 0.020 $ 0.003
==================== ========= =========
</TABLE>
(a) Per share information has been restated to reflect a 2 for 1 stock split,
effected in the form of a dividend, on September 29, 1987.
(b) The Fund changed investment advisors on May 1, 1986, and on September 30,
1988.
(c) Does not deduct sales charges and, for periods less than one year, total
returns are not annualized.
(d) After waiver of advisory fees. Ratios of expenses and net investment income
to average net assets prior to waiver of advisory fees were 1.2% and
(0.04)%, respectively. Ratios are based on average net assets of
$4,072,429,878.
(e) Averages computed on a daily basis.
(f) Annualized.
22
<PAGE>
Financials
CLASS B:
<TABLE>
<CAPTION>
1995
-------
<S> <C>
Net asset value, beginning of period $18.56
- -------------------------------------------------- -------
Income from investment operations:
Net investment income (loss) (0.03)
- -------------------------------------------------- -------
Net gains (losses) on securities (both realized
and unrealized) 1.75
- -------------------------------------------------- -------
Total from investment operations 1.72
- -------------------------------------------------- -------
Less distributions:
Dividends from net investment income --
- -------------------------------------------------- -------
Distributions from net realized capital gains --
- -------------------------------------------------- -------
Total distributions --
- -------------------------------------------------- -------
Net asset value, end of period $20.28
================================================== =======
Total return(a) 9.27%
================================================== =======
Ratios/supplemental data:
Net assets, end of period (000's omitted) $42,238
================================================== =======
Ratio of expenses to average net assets 1.91 %(b)
================================================== =======
Ratio of net investment income (loss) to average
net assets (0.76)%(b)
================================================== =======
Portfolio turnover rate 139%
================================================== =======
Borrowings for the period:
Amount of debt outstanding at end of
period (000s omitted) --
================================================== =======
Average amount of debt outstanding during the
period (000s omitted)(c) $ 3
================================================== =======
Average number of shares outstanding during the
period (000s omitted)(c) 1,036
================================================== =======
Average amount of debt per share during the period $0.0029
================================================== =======
</TABLE>
(a) Do not deduct contingent deferred sales charges and is not annualized for
periods less than one year.
(b) Annualized. After waiver of advisory fees. Annualized ratios of expenses
and net investment income (loss) to average net assets prior to waiver of
advisory fees were 1.94% and (0.79)%, respectively. Ratios are based on
average net assets of $19,567,695.
(c) Averages computed on a daily basis.
23
<PAGE>
INDEPENDENT AUDITORS' REPORT
To the Shareholders and Board of Directors
AIM Weingarten Fund:
We have audited the accompanying statement of assets and liabilities of AIM
Weingarten Fund (a portfolio of AIM Equity Funds, Inc.), including the schedule
of investments, as of October 31, 1995, the related statement of operations for
the year then ended, the statement of changes in net assets for each of the
years in the two-year period then ended, and financial highlights for each of
the years in the seven year period then ended, the ten months ended October 31,
1988, and the two year period ended December 31, 1987. These financial
statements and financial highlights are the responsibility of the Fund's
management. Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
October 31, 1995, by correspondence with the custodian and brokers. An audit
also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of AIM
Weingarten Fund as of October 31, 1995, the results of its operations for the
year then ended, the changes in its net assets for each of the years in the
two-year period then ended, and the financial highlights for each of the years
in the seven year period then ended, the ten months ended October 31, 1988, and
the two year period ended December 31, 1987, in conformity with generally
accepted accounting principles.
KPMG Peat Marwick LLP
Houston, Texas
December 8, 1995
24
<PAGE>
<TABLE>
<S> <C> <C>
Directors & Officers
BOARD OF DIRECTORS OFFICERS OFFICE OF THE FUND
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
Bruce L. Crockett President INVESTMENT ADVISOR
Director, President, and Chief
Executive Officer John J. Arthur A I M Advisors, Inc.
COMSAT Corporation Senior Vice President and Treasurer 11 Greenway Plaza
Suite 1919
Owen Daly II Gary T. Crum Houston, TX 77046
Director Senior Vice President
Cortland Trust Inc. TRANSFER AGENT
Jonathan C. Schoolar
Carl Frischling Senior Vice President A I M Fund Services, Inc.
Partner P.O. Box 4739
Kramer, Levin, Naftalis, Nessen, Carol F. Relihan Houston, TX 77210-4739
Kamin & Frankel Vice President and Secretary
CUSTODIAN
Robert H. Graham Melville B. Cox
President and Chief Operating Officer Vice President State Street Bank and Trust Company
A I M Management Group Inc. 225 Franklin Street
Dana R. Sutton Boston, MA 02110
John F. Kroeger Vice President and Assistant Treasurer
Formerly, Consultant COUNSEL TO THE FUND
Wendell & Stockel Associates, Inc. P. Michelle Grace
Assistant Secretary Ballard Spahr
Lewis F. Pennock Andrews & Ingersoll
Attorney Nancy L. Martin 1735 Market Street
Assistant Secretary Philadelphia, PA 19103
Ian W. Robinson
Consultant; Former Executive Ofelia M. Mayo COUNSEL TO THE DIRECTORS
Vice President and Assistant Secretary
Chief Financial Officer Kramer, Levin, Naftalis,
Bell Atlantic Management Kathleen J. Pflueger Nessen, Kamin & Frankel
Services, Inc. Assistant Secretary 919 Third Avenue
New York, NY 10022
Louis S. Sklar Samuel D. Sirko
Executive Vice President Assistant Secretary DISTRIBUTOR
Hines Interests
Limited Partnership Stephen I. Winer A I M Distributors, Inc.
Assistant Secretary 11 Greenway Plaza
Suite 1919
Mary J. Benson Houston, TX 77046
Assistant Treasurer
AUDITORS
KPMG Peat Marwick LLP
700 Louisiana
NationsBank Bldg.
Houston, TX 77002
</TABLE>
REQUIRED FEDERAL INCOME TAX INFORMATION
AIM Weingarten Fund Retail Class paid ordinary dividends in the
amount of $0.068 per share to shareholders of Class A shares during its
tax year ended October 31, 1995. Of this amount 99% is eligible for the
dividends received deduction for corporations. The fund also distributed
long-term capital gains of $1.778 per share for Class A shares during
its tax year ended October 31, 1995.
<PAGE>
<TABLE>
<S> <C>
[PHOTO THE AIM FAMILY OF FUNDS(R)
APPEARS
HERE] AGGRESSIVE GROWTH
AIM Aggressive Growth Fund*
AIM Constellation Fund
AIM Global Aggressive Growth Fund
GROWTH
AIM Global Growth Fund
AIM Growth Fund
AIM International Equity Fund
AIM Value Fund
AIM Weingarten Fund
GROWTH AND INCOME
AIM Balanced Fund
AIM Charter Fund
INCOME AND GROWTH
AIM Global Utilities Fund**
HIGH CURRENT INCOME
AIM High Yield Fund
CURRENT INCOME
AIM Global Income Fund
AIM Income Fund
CURRENT TAX-FREE INCOME
AIM Municipal Bond Fund
AIM Tax-Exempt Bond Fund of CT
AIM Tax-Free Intermediate Shares
CURRENT INCOME AND HIGH DEGREE
OF SAFETY
AIM Intermediate Government Fund***
HIGH DEGREE OF SAFETY AND
CURRENT INCOME
AIM Limited Maturity Treasury Shares
STABILITY, LIQUIDITY, AND
CURRENT INCOME
AIM Money Market Fund
STABILITY, LIQUIDITY, AND
CURRENT TAX-FREE INCOME
AIM Tax-Exempt Cash Fund
*AIM Aggressive Growth Fund was closed
to new investors on July 18, 1995. **On
May 1, 1995, AIM Utilities Fund broadened
its investment strategy to permit up to
80% of its total assets to be invested in
foreign securities, and was renamed
AIM Management Group has provided leadership AIM Global Utilities Fund. ***On
in the mutual fund industry since 1976 and September 25, 1995, AIM Government
currently manages approximately $40 billion Securities Fund became AIM Intermediate
in assets for more than 2 million shareholders, Government Fund. For more complete
including individual investors, corporate clients, information about any AIM Fund(s), including
and financial institutions. The AIM Family of sales charges and expenses, ask your
Funds(R) is distributed nationwide, and AIM financial consultant or securities dealer
today ranks among the nation's top 20 mutual for a free prospectus(es). Please read the
fund companies in assets under management, prospectus(es) carefully before you invest
according to Lipper Analytical Services, Inc. or send money.
[AIM LOGO -------------------
APPEARS BULK RATE
HERE] U.S. POSTAGE
PAID
HOUSTON, TX
A I M Distributors, Inc. Permit No. 1919
11 Greenway Plaza, Suite 1919 -------------------
Houston, TX 77046
</TABLE>
