<PAGE>
[LOGO OF AIM APPEARS HERE]
[GRAPHIC COLLAGE APPEARS HERE]
AIM WEINGARTEN FUND
SEMIANNUAL REPORT
APRIL 30, 1995
<PAGE>
FUNDAMENTALS
AIM
WEINGARTEN
FUND
(RETAIL CLASS)
seeks to provide growth of capital through investments primarily in common
stocks of leading U.S. companies considered by management to have strong
earnings momentum.
PORTFOLIO DATA
TOP 10 EQUITY HOLDINGS
1. International Business Machines Corp.
2. Applied Materials, Inc.
3. Texas Instruments Inc.
4. Computer Associates International, Inc.
5. Micron Technology Inc.
6. LSI Logic Corp.
7. LAM Research Corp.
8. Varian Associates, Inc.
9. Telefonaktiebolaget L. M. Ericsson Class B
10. Safeway Inc.
TOP 10 INDUSTRIES
1. Semiconductors
2. Computer Software/Services
3. Retail (Stores)
4. Medical (Drugs)
5. Telecommunications
6. Medical (Patient Services)
7. Computer Networking
8. Conglomerates
9. Retail (Food and Drug)
10. Medical (Instruments/Products)
This table represents a summary of the Fund's portfolio as of April 30, 1995,
the close of the six-month reporting period. The Fund's composition may change
and there is no assurance the Fund will continue to hold the same securities.
AVERAGE ANNUAL TOTAL RETURNS
Through 3/31/95 (Most recent calendar quarter)
<TABLE>
<CAPTION>
With Sales Excluding Sales
Charge Charge
<S> <C> <C>
Ten Years 14.72% 15.38%
Five Years 9.98% 11.24%
One Year 3.88% 9.91%
</TABLE>
GROWTH OF A
HYPOTHETICAL
$10,000
INVESTMENT
10 YEARS ENDED 4/30/95
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Measurement Period AIM Weingarten Fund S&P 500 Lipper Growth Fund Index
4/30/85 - 4/30/95 (In Dollars) (In Dollars) (In Dollars)
<S> <C> <C> <C>
4/85 9,446 10,000 10,000
4/86 13,843 13,624 13,750
4/87 17,117 17,236 16,273
4/88 16,382 16,115 15,370
4/89 19,747 19,804 18,473
4/90 22,896 21,888 19,643
4/91 29,445 25,735 23,058
4/92 33,300 29,338 26,127
4/93 33,448 32,043 28,667
4/94 36,043 33,745 31,330
4/95 40,574 39,630 34,773
</TABLE>
Past performance cannot guarantee comparable future results.
Source: Towers Data Systems HYPO(R)
AIM Weingarten Fund performance figures are historical and reflect reinvestment
of all dividends and capital gains distributions, changes in net asset value,
and the effect of the 5.50% maximum sales charge, unless otherwise indicated.
The Fund's investment return and principal value will fluctuate so that an
investor's shares, when redeemed, may be worth more or less than their original
cost.
Lipper Analytical Services, Inc., is an independent mutual fund performance
monitor. The unmanaged Lipper Growth Fund Index represents a broad approximation
of the performance of growth funds. Standard & Poor's Corp. is a credit-rating
agency. The Standard & Poor's Composite Index of 500 Stocks (S&P 500) is a group
of unmanaged securities widely regarded by investors to be representative of the
stock market in general. An investment cannot be made in the indexes listed.
Index results include reinvested dividends and do not reflect sales charges.
<PAGE>
CHAIRMAN'S LETTER
Dear Fellow Shareholder:
AIM Weingarten Fund delivered impressive performance during the
six months covered by this report. If, like most AIM
shareholders, you reinvested your income and capital gains
[PHOTO distributions, the value of your investment increased 6.89%
Charles T. between October 31, 1994, and April 30, 1995, excluding the
Bauer, maximum 5.50% sales charge. Your Fund distributed income
Chairman of earnings of $.07 per share plus capital gains of $1.78.
the Board of AIM Weingarten Fund's total return closely tracked the 6.99%
the Fund, total return of the Lipper Growth Fund Index, which averages
APPEARS HERE] the performance of the 30 largest growth funds tracked by Lipper
Analytical Services, Inc., an independent mutual fund
performance monitor.
AIM Weingarten Fund's performance reflects, in part, a stock market that
favored the large-capitalization stocks in which your Fund invests. If you are a
long-term shareholder of AIM Weingarten Fund, you probably know that these
large-cap stocks have been out of favor in recent years. During the early 1990s,
markets preferred smaller emerging companies. Late last year, however, investors
returned to large, well-established companies. For example, the Standard &
Poor's Composite Index of 500 Stocks, an unmanaged index widely regarded as
representative of the stock market in general, gained 10.46% during the six
months covered by this report, almost twice the 5.36% gain of the Russell 2000
Stock Index, an unmanaged index generally considered representative of small-
capitalization stocks. A review of the economy, the Fund's portfolio strategy,
and our outlook for the months ahead follows on page 2 of this report.
The resurgence of large-capitalization growth stocks may represent a back-to-
basics trend. In 1994, shocks such as the Orange County, California, bankruptcy,
the failure of British investment bank Barings PLC, and December's Mexican peso
crisis may have led many market participants back to a greater emphasis on
choosing quality investments rather than on reaching for higher yield.
AIM Weingarten Fund has built an impressive record of long-term results, as
shown in the 10-year performance numbers summarized in this report's
Fundamentals page, opposite. It is important to keep in mind that throughout
this period, your Fund and the stock market in general have experienced a
variety of up and down years. Shareholders who have retained a long-term
perspective have enjoyed the greatest returns on their investment. Although past
performance does not ensure comparable future results, we believe shareholders
who keep a long-term perspective will have greater opportunity for reaping
rewards over time. We remain confident in managing the Fund according to our
disciplined, earnings-driven investment strategy.
While your Fund's management team has been working to maximize the return on
your investment and help you achieve your long-term Financial goals, AIM has
continued a commitment to customer service by expanding our shareholder service
operation. We have also improved our toll-free 24-hour AIM Investor Line so that
you can now access information on current yield and total return of your AIM
Fund in addition to data on your individual account simply by calling 800-246-
5463.
We are pleased to send you this shareholder report for the Retail Class of AIM
Weingarten Fund, and we are equally pleased to respond to any questions or
comments you may have.
Respectfully submitted,
/s/ CHARLES T. BAUER
Charles T. Bauer
Chairman
<PAGE>
DISCUSSION & ANALYSIS
AIM WEINGARTEN FUND
PRODUCES SOLID GAIN IN RALLYING MARKET
---------
Stocks of
technology companies
continue to fit the
Fund's earnings-based
investment criteria.
---------
As the period covered by this report opened, financial markets were affected by
the Federal Reserve Board's effort to use rising interest rates
to slow an economy it feared was overheating.
While corporate earnings were robust, rising rates lured investors away from
the potential volatility of stock markets, resulting in a flat equity market.
During the first half of the reporting period, the Standard & Poor's Composite
Index of 500 Stocks (S&P 500)* gained a mere 0.32%.
The second half of the reporting period differed dramatically, as investors
anticipated that Federal Reserve policy would succeed in checking inflation
while fostering sustainable economic growth. The S&P 500 rose 10.10% in the
three months ended April 30, closing the period at 514.71, an all-time high.
The market rally was distinguished by the strength of large-company stocks, in
contrast with the past few years, when small, emerging-growth companies were
market darlings.
YOUR INVESTMENT PORTFOLIO
In this favorable environment, AIM Weingarten Fund produced a total return of
6.89% for the six months ended April 30, 1995, excluding sales charges.
Contributing to this performance is the portfolio's position in technology
stocks, which constituted about 40% of holdings at the close of the reporting
period. Stocks of technology companies continue to fit the Fund's earnings-
based investment criteria.
Fund managers define the technology sector broadly, to include
telecommunications, for example, as well as computer parts, peripherals, and
software. This sector's strength continues unabated, nurtured by the
interconnections among technology industries.
Consider the much-publicized introduction of Windows 95. Most computer users
will require more memory in order to use it, and many new software programs will
be written to complement and take advantage of this new operating system. Thus,
one new technology product stimulates production of others. The 1990s may well
be remembered as the technology decade as these interconnections produce
numerous opportunities for winning stocks.
Though often thought of as the arena of startups, the technology universe also
includes a number of large companies of the type in which AIM Weingarten Fund
invests. A list of the companies representing the portfolio's 10 largest
holdings as a percent of net assets appears on this report's Fundamentals page.
While heavily invested in the technology sector, your Fund remained well
diversified with about 250 holdings. In keeping with a strategic bias in favor
of being fully invested, particularly in a favorable market, the Fund's cash
position as of April 30 was negligible. Of course, the Fund's composition may
change, and there is no assurance the Fund will continue to hold the same
securities.
OUTLOOK FOR THE FUTURE
Many analysts agree that the exceptional earnings growth reported by many U.S.
companies during the first four months of 1995 is unlikely to continue at
such a phenomenal rate. Nevertheless, we believe a projected slowing of the
domestic economy, combined with the declining value of the dollar overseas,
represents a potentially great competitive advantage for U.S. companies. As a
result, earnings for an unusually large number of companies should continue to
be robust.
One of the dynamic forces driving the market in the months to come will be
whose earnings expectations are too high and whose are too low.
In this economic environment, finding stocks that qualify under AIM's
earnings-driven investment philosophy would seem to be a simple task. If
anything, however, the large number of stocks reporting better-than-expected
earnings has forced us to work even harder to find the companies with the very
best potential, the one or two companies out of 10 that are going to produce
superior earnings growth. And that's what we believe we do best.
*The S&P 500 is an unmanaged index of 500 securities widely regarded by
investors to be representative of the stock market in general. S&P performance
figures assume reinvestment of all dividends. An investment cannot be made in
an index.
2
<PAGE>
FINANCIALS
SCHEDULE OF INVESTMENTS
April 30, 1995
(Unaudited)
<TABLE>
<CAPTION>
SHARES MARKET VALUE
<C> <S> <C>
DOMESTIC COMMON STOCKS-92.32%
ADVERTISING/BROADCASTING-0.50%
120,000 Capital Cities/ABC Inc. $ 10,140,000
- -----------------------------------------------------------------------
250,000 Interpublic Group of Companies, Inc. 9,500,000
- -----------------------------------------------------------------------
19,640,000
- -----------------------------------------------------------------------
AEROSPACE/DEFENSE-0.55%
200,000 Boeing Co. 11,000,000
- -----------------------------------------------------------------------
250,000 Rockwell International Corp. 10,906,250
- -----------------------------------------------------------------------
21,906,250
- -----------------------------------------------------------------------
APPLIANCES-0.72%
500,000 Newell Co. 11,812,500
- -----------------------------------------------------------------------
350,000 Premark International Inc. 16,887,500
- -----------------------------------------------------------------------
28,700,000
- -----------------------------------------------------------------------
AUTOMOBILE/TRUCKS PARTS & TIRES-0.55%
200,000 Eaton Corp. 11,475,000
- -----------------------------------------------------------------------
275,000 Goodyear Tire & Rubber Co. 10,450,000
- -----------------------------------------------------------------------
21,925,000
- -----------------------------------------------------------------------
BANKING (MONEY CENTER)-0.13%
79,200 Morgan (J. P.) & Co. Inc. 5,197,500
- -----------------------------------------------------------------------
BEVERAGES-1.45%
200,000 Coca-Cola Co. (The) 11,625,000
- -----------------------------------------------------------------------
553,500 Coca-Cola Enterprises Inc. 12,384,563
- -----------------------------------------------------------------------
800,000 PepsiCo Inc. 33,300,000
- -----------------------------------------------------------------------
57,309,563
- -----------------------------------------------------------------------
BIOTECHNOLOGY-0.61%
331,800 AMGEN Inc.(a) 24,117,712
- -----------------------------------------------------------------------
BUILDING MATERIALS-0.58%
650,000 Black & Decker Corp. 19,500,000
- -----------------------------------------------------------------------
149,600 USG Corp.(a) 3,534,300
- -----------------------------------------------------------------------
23,034,300
- -----------------------------------------------------------------------
BUSINESS SERVICES-2.77%
78,600 Diebold, Inc. 3,261,900
- -----------------------------------------------------------------------
390,600 Equifax, Inc. 12,645,675
- -----------------------------------------------------------------------
681,600 Healthcare COMPARE Corp.(a) 20,490,600
- -----------------------------------------------------------------------
427,700 Kelly Services Inc. 14,434,875
- -----------------------------------------------------------------------
</TABLE>
3
<PAGE>
FINANCIALS
<TABLE>
<CAPTION>
SHARES MARKET VALUE
<C> <S> <C>
Business Services-(continued)
350,800 Manpower Inc. $ 11,707,950
- -------------------------------------------------------------------
690,800 Olsten Corp. 23,573,550
- -------------------------------------------------------------------
800,000 Sensormatic Electronics Corp. 23,800,000
- -------------------------------------------------------------------
109,914,550
- -------------------------------------------------------------------
CHEMICALS-1.48%
200,000 Dow Chemical Co. 13,900,000
- -------------------------------------------------------------------
125,000 Monsanto Co. 10,406,250
- -------------------------------------------------------------------
500,000 PPG Industries, Inc. 19,687,500
- -------------------------------------------------------------------
461,900 Union Carbide Corp. 14,780,800
- -------------------------------------------------------------------
58,774,550
- -------------------------------------------------------------------
CHEMICALS (SPECIALTY)-1.38%
300,200 Engelhard Corp. 11,520,175
- -------------------------------------------------------------------
184,800 IMC Global, Inc. 9,078,300
- -------------------------------------------------------------------
225,000 Loctite Corp. 11,193,750
- -------------------------------------------------------------------
315,000 Morton International, Inc. 9,765,000
- -------------------------------------------------------------------
546,700 Praxair, Inc. 12,984,125
- -------------------------------------------------------------------
54,541,350
- -------------------------------------------------------------------
COMPUTER MAINFRAMES-1.20%
500,000 International Business Machines Corp. 47,375,000
- -------------------------------------------------------------------
COMPUTER MINI/PC-2.76%
500,000 Dell Computer Corp.(a) 27,375,000
- -------------------------------------------------------------------
225,000 Digital Equipment Corp.(a) 10,378,125
- -------------------------------------------------------------------
525,000 Gateway 2000 Inc.(a) 9,942,188
- -------------------------------------------------------------------
477,600 Hewlett-Packard Co. 31,581,300
- -------------------------------------------------------------------
750,000 Sun Microsystems, Inc.(a) 29,906,250
- -------------------------------------------------------------------
109,182,863
- -------------------------------------------------------------------
COMPUTER NETWORKING-3.62%
650,000 Bay Networks, Inc.(a) 23,643,750
- -------------------------------------------------------------------
675,000 Cabletron Systems, Inc.(a) 32,062,500
- -------------------------------------------------------------------
150,000 Chipcom Corp.(a) 4,912,500
- -------------------------------------------------------------------
750,000 Cisco Systems, Inc.(a) 29,906,250
- -------------------------------------------------------------------
325,000 General Instruments Corp.(a) 11,090,625
- -------------------------------------------------------------------
500,000 Novell, Inc.(a) 10,875,000
- -------------------------------------------------------------------
550,000 3Com Corp.(a) 30,800,000
- -------------------------------------------------------------------
143,290,625
- -------------------------------------------------------------------
</TABLE>
4
<PAGE>
FINANCIALS
<TABLE>
<CAPTION>
SHARES MARKET VALUE
<C> <S> <C>
COMPUTER PERIPHERALS-2.05%
750,000 Adaptec Inc.(a) $ 24,000,000
- ---------------------------------------------------------------------
174,900 American Power Conversion Corp.(a) 2,973,300
- ---------------------------------------------------------------------
1,700,000 EMC Corp.(a) 33,575,000
- ---------------------------------------------------------------------
522,400 Quantum Corp.(a) 9,664,400
- ---------------------------------------------------------------------
700,000 Western Digital Corp.(a) 11,200,000
- ---------------------------------------------------------------------
81,412,700
- ---------------------------------------------------------------------
COMPUTER SOFTWARE/SERVICES-7.52%
500,000 Adobe Systems, Inc. 29,125,000
- ---------------------------------------------------------------------
469,500 Autodesk Inc. 15,992,343
- ---------------------------------------------------------------------
400,000 BMC Software, Inc.(a) 24,900,000
- ---------------------------------------------------------------------
750,000 Cadence Design Systems, Inc.(a) 24,187,500
- ---------------------------------------------------------------------
675,000 Computer Associates International, Inc. 43,453,125
- ---------------------------------------------------------------------
240,000 Computer Sciences Corp.(a) 11,850,000
- ---------------------------------------------------------------------
248,600 Informix Corp.(a) 9,788,625
- ---------------------------------------------------------------------
154,700 Mentor Graphics Corp.(a) 2,610,563
- ---------------------------------------------------------------------
250,000 Microsoft Corp.(a) 20,437,500
- ---------------------------------------------------------------------
1,087,500 Oracle Systems, Corp.(a) 33,168,750
- ---------------------------------------------------------------------
425,000 Parametric Technology Corp.(a) 20,187,500
- ---------------------------------------------------------------------
450,000 Policy Management Systems Corp.(a) 22,668,750
- ---------------------------------------------------------------------
800,000 Silicon Graphics, Inc.(a) 30,000,000
- ---------------------------------------------------------------------
275,000 Sterling Software, Inc.(a) 9,350,000
- ---------------------------------------------------------------------
297,719,656
- ---------------------------------------------------------------------
CONGLOMERATES-2.64%
250,000 Allied-Signal Inc. 9,906,250
- ---------------------------------------------------------------------
800,000 Dial Corp. (The) 19,300,000
- ---------------------------------------------------------------------
130,000 Du Pont De Nemours 8,563,750
- ---------------------------------------------------------------------
617,500 Federal Signal Corp. 13,970,937
- ---------------------------------------------------------------------
100,000 ITT Corp. 10,450,000
- ---------------------------------------------------------------------
100,000 Loews Corp. 10,187,500
- ---------------------------------------------------------------------
150,000 TRW Inc. 11,156,250
- ---------------------------------------------------------------------
400,000 Tyco International Ltd. 21,000,000
- ---------------------------------------------------------------------
104,534,687
- ---------------------------------------------------------------------
</TABLE>
5
<PAGE>
FINANCIALS
<TABLE>
<CAPTION>
SHARES MARKET VALUE
<C> <S> <C>
CONTAINERS-0.88%
300,000 Ball Corp. $ 10,275,000
- -----------------------------------------------------------------------
64,400 Bemis Co., Inc. 1,787,100
- -----------------------------------------------------------------------
325,000 Crown Cork & Seal Co., Inc.(a) 13,893,750
- -----------------------------------------------------------------------
450,700 Stone Container Corp.(a) 8,957,663
- -----------------------------------------------------------------------
34,913,513
- -----------------------------------------------------------------------
COSMETICS & TOILETRIES-0.78%
150,000 Colgate-Palmolive Co. 10,537,500
- -----------------------------------------------------------------------
100,000 Gillette Co. (The) 8,200,000
- -----------------------------------------------------------------------
175,000 Procter & Gamble Co. 12,228,125
- -----------------------------------------------------------------------
30,965,625
- -----------------------------------------------------------------------
ELECTRONIC COMPONENTS/MISCELLANEOUS-1.72%
400,000 General Electric Co. 22,400,000
- -----------------------------------------------------------------------
449,700 Tektronix, Inc. 20,461,350
- -----------------------------------------------------------------------
500,000 Teradyne, Inc.(a) 25,312,500
- -----------------------------------------------------------------------
68,173,850
- -----------------------------------------------------------------------
ELECTRONICS/DEFENSE-0.28%
200,000 Sundstrand Corp. 11,100,000
- -----------------------------------------------------------------------
ELECTRONIC (PC DISTRIBUTORS)-1.26%
596,000 Arrow Electronics, Inc.(a) 27,714,000
- -----------------------------------------------------------------------
500,000 Avnet, Inc. 22,250,000
- -----------------------------------------------------------------------
49,964,000
- -----------------------------------------------------------------------
FINANCE (ASSET MANAGEMENT)-0.62%
600,000 Finova Group, Inc. 20,250,000
- -----------------------------------------------------------------------
250,500 PaineWebber Group, Inc. 4,289,813
- -----------------------------------------------------------------------
24,539,813
- -----------------------------------------------------------------------
FINANCE (CONSUMER CREDIT)-2.11%
575,000 First USA, Inc. 24,437,500
- -----------------------------------------------------------------------
500,000 Green Tree Acceptance, Inc. 20,437,500
- -----------------------------------------------------------------------
650,000 MBNA Corp. 19,662,500
- -----------------------------------------------------------------------
650,000 Mercury Finance Co. 9,831,250
- -----------------------------------------------------------------------
252,300 PMI Group, Inc. (The) 9,398,175
- -----------------------------------------------------------------------
83,766,925
- -----------------------------------------------------------------------
</TABLE>
6
<PAGE>
FINANCIALS
<TABLE>
<CAPTION>
SHARES MARKET VALUE
<C> <S> <C>
FINANCE (SAVINGS & LOAN)-0.29%
178,500 Ahmanson (H.F.) & Co. $ 3,748,500
- --------------------------------------------------------------------
171,500 Golden West Financial Corp. 7,846,125
- --------------------------------------------------------------------
11,594,625
- --------------------------------------------------------------------
FOOD PROCESSING-2.40%
690,000 Archer Daniels Midland Co. 12,592,500
- --------------------------------------------------------------------
275,000 ConAgra, Inc. 9,143,750
- --------------------------------------------------------------------
470,000 Hudson Foods, Inc. 8,107,500
- --------------------------------------------------------------------
623,333 Lancaster Colony Corp. 21,660,822
- --------------------------------------------------------------------
1,050,000 Sysco Corp. 29,400,000
- --------------------------------------------------------------------
600,000 Tyson Foods, Inc. 14,250,000
- --------------------------------------------------------------------
95,154,572
- --------------------------------------------------------------------
FUNERAL SERVICES-0.71%
1,000,000 Service Corp. International 28,250,000
- --------------------------------------------------------------------
GAMING-0.55%
375,000 Mirage Resorts, Inc.(a) 11,250,000
- --------------------------------------------------------------------
275,000 Promus Companies Inc.(a) 10,587,500
- --------------------------------------------------------------------
21,837,500
- --------------------------------------------------------------------
HOME BUILDING-0.18%
302,400 Fleetwood Enterprises, Inc. 6,955,200
- --------------------------------------------------------------------
HOTELS/MOTELS-1.15%
500,000 Hospitality Franchise Systems, Inc.(a) 15,187,500
- --------------------------------------------------------------------
600,000 La Quinta Motor Inns Inc. 17,925,000
- --------------------------------------------------------------------
349,700 Marriott International, Inc. 12,589,200
- --------------------------------------------------------------------
45,701,700
- --------------------------------------------------------------------
INSURANCE (LIFE & HEALTH)-0.26%
250,000 AFLAC Inc. 10,312,500
- --------------------------------------------------------------------
INSURANCE (MULTI-LINE PROPERTY)-0.99%
22,100 ACE, Ltd. 585,650
- --------------------------------------------------------------------
100,000 American International Group, Inc. 10,675,000
- --------------------------------------------------------------------
125,000 CIGNA Corp. 9,078,125
- --------------------------------------------------------------------
75,000 General Re Corp. 9,553,125
- --------------------------------------------------------------------
144,400 Transatlantic Holdings, Inc. 9,169,400
- --------------------------------------------------------------------
39,061,300
- --------------------------------------------------------------------
</TABLE>
7
<PAGE>
FINANCIALS
<TABLE>
<CAPTION>
SHARES MARKET VALUE
<C> <S> <C>
LEISURE & RECREATION-1.41%
475,000 Brunswick Corp. $ 10,153,125
- ------------------------------------------------------------------
407,600 Callaway Golf Co. 5,044,050
- ------------------------------------------------------------------
425,000 Carnival Cruise Line, Inc. 10,571,875
- ------------------------------------------------------------------
850,000 Mattel, Inc. 20,187,500
- ------------------------------------------------------------------
180,000 Walt Disney Co. (The) 9,967,500
- ------------------------------------------------------------------
55,924,050
- ------------------------------------------------------------------
MACHINERY (HEAVY)-0.62%
482,000 Case Corp. 12,230,750
- ------------------------------------------------------------------
150,000 Deere & Co. 12,300,000
- ------------------------------------------------------------------
24,530,750
- ------------------------------------------------------------------
MACHINERY (MISCELLANEOUS)-0.65%
475,000 Thermo Electron Corp.(a) 25,590,625
- ------------------------------------------------------------------
MEDICAL (DRUGS)-4.43%
300,000 American Home Products Corp. 23,137,500
- ------------------------------------------------------------------
175,000 AmeriSource Health Corp.(a) 3,871,875
- ------------------------------------------------------------------
225,000 Cardinal Health, Inc. 10,378,125
- ------------------------------------------------------------------
534,500 Forest Laboratories, Inc.(a) 24,052,500
- ------------------------------------------------------------------
325,000 Johnson & Johnson 21,125,000
- ------------------------------------------------------------------
150,200 Mallinckrodt Group, Inc. 5,407,200
- ------------------------------------------------------------------
250,000 Merck & Co., Inc. 10,718,750
- ------------------------------------------------------------------
325,000 Mylan Laboratories, Inc. 9,993,750
- ------------------------------------------------------------------
350,000 Pfizer Inc. 30,318,750
- ------------------------------------------------------------------
350,000 Schering-Plough Corp. 26,381,250
- ------------------------------------------------------------------
325,000 Watson Pharmaceuticals, Inc.(a) 10,115,625
- ------------------------------------------------------------------
175,500,325
- ------------------------------------------------------------------
MEDICAL (INSTRUMENTS/PRODUCTS)-3.25%
300,000 Baxter International Inc. 10,425,000
- ------------------------------------------------------------------
267,100 Becton, Dickinson & Co. 14,890,825
- ------------------------------------------------------------------
575,000 Biomet, Inc.(a) 10,062,500
- ------------------------------------------------------------------
350,000 Boston Scientific Corp.(a) 9,537,500
- ------------------------------------------------------------------
327,500 Cordis Corp.(a) 23,498,125
- ------------------------------------------------------------------
250,000 Medtronic, Inc. 18,593,750
- ------------------------------------------------------------------
292,800 St. Jude Medical, Inc. 12,590,400
- ------------------------------------------------------------------
210,000 Stryker Corp. 9,476,250
- ------------------------------------------------------------------
525,000 Sybron Corp.(a) 19,490,625
- ------------------------------------------------------------------
128,564,975
- ------------------------------------------------------------------
</TABLE>
8
<PAGE>
FINANCIALS
<TABLE>
<CAPTION>
SHARES MARKET VALUE
<C> <S> <C>
MEDICAL (PATIENT SERVICES)-4.37%
100,000 Abbey Healthcare Group, Inc.(a) $ 3,975,000
- --------------------------------------------------------------------
750,000 Columbia HCA Healthcare Corp. 31,500,000
- --------------------------------------------------------------------
950,000 Diagnostek, Inc.(a) 17,575,000
- --------------------------------------------------------------------
440,000 Health Management Associates, Inc.(a) 12,760,000
- --------------------------------------------------------------------
350,000 Healthsource, Inc.(a) 12,556,250
- --------------------------------------------------------------------
600,000 Healthsouth Corp.(a) 11,850,000
- --------------------------------------------------------------------
300,000 Homedco Group, Inc.(a) 17,175,000
- --------------------------------------------------------------------
950,000 Humana Inc.(a) 18,525,000
- --------------------------------------------------------------------
1,000,000 Mid Atlantic Medical Services, Inc.(a) 17,250,000
- --------------------------------------------------------------------
150,000 Pacificare Health Systems, Inc.(a) 9,300,000
- --------------------------------------------------------------------
443,700 United Healthcare Corp. 16,084,125
- --------------------------------------------------------------------
172,400 U.S. Healthcare, Inc. 4,611,700
- --------------------------------------------------------------------
173,162,075
- --------------------------------------------------------------------
METALS (MISCELLANEOUS)-0.26%
367,000 Alumax Inc.(a) 10,367,750
- --------------------------------------------------------------------
OFFICE AUTOMATION-0.81%
260,000 Xerox Corp. 32,012,500
- --------------------------------------------------------------------
OFFICE PRODUCTS-0.68%
313,300 Avery Dennison Corp. 12,727,812
- --------------------------------------------------------------------
4,300 OfficeMax, Inc.(a) 110,187
- --------------------------------------------------------------------
536,400 Reynolds & Reynolds Co. 14,214,600
- --------------------------------------------------------------------
27,052,599
- --------------------------------------------------------------------
PAPER & FOREST PRODUCTS-1.05%
423,100 Federal Paper Board Co., Inc. 12,534,338
- --------------------------------------------------------------------
121,400 Georgia-Pacific Corp. 9,636,125
- --------------------------------------------------------------------
95,600 Kimberly-Clark Corp. 5,413,350
- --------------------------------------------------------------------
217,800 Longview Fibre Co. 3,620,925
- --------------------------------------------------------------------
200,000 Mead Corp. (The) 10,350,000
- --------------------------------------------------------------------
41,554,738
- --------------------------------------------------------------------
POLLUTION CONTROL-0.25%
300,000 Browning-Ferris Industries, Inc. 9,900,000
- --------------------------------------------------------------------
RESTAURANTS-0.66%
414,000 McDonalds Corp. 14,490,000
- --------------------------------------------------------------------
510,800 Morrison Restaurants, Inc. 11,556,850
- --------------------------------------------------------------------
26,046,850
- --------------------------------------------------------------------
</TABLE>
9
<PAGE>
FINANCIALS
<TABLE>
<CAPTION>
SHARES MARKET VALUE
<C> <S> <C>
RETAIL (FOOD & DRUG)-3.37%
650,000 Albertson's, Inc. $ 20,556,250
- ------------------------------------------------------------------
500,000 Eckerd Corp.(a) 14,562,500
- ------------------------------------------------------------------
893,000 Hannaford Bros. Co. 23,552,875
- ------------------------------------------------------------------
475,300 Kroger Co.(a) 12,120,150
- ------------------------------------------------------------------
800,000 Rite Aid Corp. 18,600,000
- ------------------------------------------------------------------
900,000 Safeway Inc.(a) 33,750,000
- ------------------------------------------------------------------
394,600 Stop & Shop Companies, Inc. (The)(a) 10,506,225
- ------------------------------------------------------------------
133,648,000
- ------------------------------------------------------------------
RETAIL (STORES)-6.19%
105,900 Ann Taylor Stores Corp.(a) 2,660,737
- ------------------------------------------------------------------
473,900 AutoZone, Inc.(a) 10,958,937
- ------------------------------------------------------------------
550,000 Circuit City Stores, Inc. 14,231,250
- ------------------------------------------------------------------
1,500,000 Consolidated Stores Corp.(a) 25,687,500
- ------------------------------------------------------------------
375,162 Dollar General Corp. 8,722,517
- ------------------------------------------------------------------
290,800 Harcourt General, Inc. 11,886,450
- ------------------------------------------------------------------
900,000 Heilig-Meyers Co. 18,900,000
- ------------------------------------------------------------------
550,000 Home Depot, Inc. (The) 22,962,500
- ------------------------------------------------------------------
700,000 Lowe's Companies, Inc. 20,212,500
- ------------------------------------------------------------------
579,900 Michaels Stores, Inc.(a) 16,527,150
- ------------------------------------------------------------------
1,011,550 Office Depot, Inc.(a) 23,012,763
- ------------------------------------------------------------------
700,000 Pep Boys-Manny, Moe, & Jack 18,025,000
- ------------------------------------------------------------------
225,000 Sears, Roebuck & Co. 12,206,250
- ------------------------------------------------------------------
200,000 Tandy Corp. 9,900,000
- ------------------------------------------------------------------
700,000 Viking Office Products Inc.(a) 19,250,000
- ------------------------------------------------------------------
600,000 Waban Inc.(a) 9,975,000
- ------------------------------------------------------------------
245,118,554
- ------------------------------------------------------------------
SCIENTIFIC INSTRUMENTS-0.89%
764,500 Varian Associates, Inc. 35,167,000
- ------------------------------------------------------------------
SEMICONDUCTORS-13.22%
350,000 Altera Corp.(a) 28,306,250
- ------------------------------------------------------------------
900,000 Analog Devices, Inc.(a) 24,187,500
- ------------------------------------------------------------------
763,400 Applied Materials, Inc.(a) 47,044,525
- ------------------------------------------------------------------
750,000 Atmel Corp.(a) 33,000,000
- ------------------------------------------------------------------
153,600 Cirrus Logic, Inc.(a) 7,651,200
- ------------------------------------------------------------------
</TABLE>
10
<PAGE>
FINANCIALS
<TABLE>
<CAPTION>
SHARES MARKET VALUE
<C> <S> <C>
Semiconductors-(continued)
800,000 Cypress Semiconductor Corp.(a) $ 24,200,000
- -------------------------------------------------------------------
400,000 Integrated Device Technology, Inc.(a) 15,250,000
- -------------------------------------------------------------------
250,000 Intel Corp. 25,593,750
- -------------------------------------------------------------------
425,500 KLA Instruments Corp.(a) 26,381,000
- -------------------------------------------------------------------
750,000 Lam Research Corp.(a) 37,875,000
- -------------------------------------------------------------------
412,500 Linear Technology Corp. 24,646,875
- -------------------------------------------------------------------
600,000 LSI Logic Corp.(a) 39,975,000
- -------------------------------------------------------------------
500,000 Micron Technology Inc. 41,125,000
- -------------------------------------------------------------------
550,000 National Semiconductor Corp.(a) 12,581,250
- -------------------------------------------------------------------
535,000 Novellus Systems, Inc.(a) 32,501,250
- -------------------------------------------------------------------
228,100 Solectron Corp.(a) 6,700,438
- -------------------------------------------------------------------
425,000 Texas Instruments Inc. 45,050,000
- -------------------------------------------------------------------
480,000 Vishay Intertechnology, Inc.(a) 28,380,000
- -------------------------------------------------------------------
300,000 Xilinx, Inc.(a) 23,025,000
- -------------------------------------------------------------------
523,474,038
- -------------------------------------------------------------------
SHOES & RELATED APPAREL-1.11%
275,000 Nike, Inc. 21,071,875
- -------------------------------------------------------------------
700,000 Nine West Group, Inc.(a) 22,750,000
- -------------------------------------------------------------------
43,821,875
- -------------------------------------------------------------------
TELECOMMUNICATIONS-3.13%
400,000 ADC Telecommunications, Inc.(a) 13,200,000
- -------------------------------------------------------------------
750,000 DSC Communications Corp.(a) 27,750,000
- -------------------------------------------------------------------
250,000 Glenayre Technologies, Inc.(a) 15,375,000
- -------------------------------------------------------------------
775,000 LDDS Communications, Inc.(a) 18,600,000
- -------------------------------------------------------------------
945,600 Scientific-Atlanta Inc. 21,512,400
- -------------------------------------------------------------------
400,000 Tellabs, Inc.(a) 27,600,000
- -------------------------------------------------------------------
124,037,400
- -------------------------------------------------------------------
TELEPHONE-0.23%
300,000 Century Telephone Enterprises, Inc. 8,925,000
- -------------------------------------------------------------------
TOBACCO-1.05%
340,000 Philip Morris Companies, Inc. 23,035,000
- -------------------------------------------------------------------
350,940 RJR Nabisco Holdings Corp. 9,606,982
- -------------------------------------------------------------------
325,000 UST, Inc. 9,140,625
- -------------------------------------------------------------------
41,782,607
- -------------------------------------------------------------------
Total Domestic Common Stocks 3,657,049,140
- -------------------------------------------------------------------
</TABLE>
11
<PAGE>
FINANCIALS
<TABLE>
<CAPTION>
SHARES MARKET VALUE
<C> <S> <C>
FOREIGN STOCKS & OTHER EQUITY INTERESTS-7.59%
AUSTRALIA-0.16%
430,525 Broken Hill Proprietary Co. Ltd. (Conglomerates) $ 6,262,637
- ------------------------------------------------------------------------------
CANADA-0.11%
119,900 Northern Telecom Ltd. (Telecommunications) 4,361,363
- ------------------------------------------------------------------------------
FINLAND-0.69%
280,000 Nokia Corp.-ADR (Telecommunications) 11,480,000
- ------------------------------------------------------------------------------
390,400 Nokia Corp. Cumulative Pfd. (Telecommunications) 15,942,173
- ------------------------------------------------------------------------------
Total Canada 27,422,173
- ------------------------------------------------------------------------------
FRANCE-0.31%
65,500 LVHM Moet Hennessy Louis Vuitton (Beverages) 12,462,861
- ------------------------------------------------------------------------------
GERMANY-0.36%
30,400 Mannesmann A.G. (Machinery-Heavy) 8,245,257
- ------------------------------------------------------------------------------
15,800 Veba A.G. (Electric Power) 5,880,978
- ------------------------------------------------------------------------------
Total Germany 14,126,235
- ------------------------------------------------------------------------------
HONG KONG-0.29%
1,000,000 Hutchison Whampoa Ltd. (Conglomerates) 4,340,524
- ------------------------------------------------------------------------------
1,100,000 Sun Hung Kai Properties Ltd. (Real Estate) 7,019,765
- ------------------------------------------------------------------------------
Total Hong Kong 11,360,289
- ------------------------------------------------------------------------------
ISRAEL-0.18%
210,000 Teva Pharmaceutical Industries Ltd.--ADR
(Medical-Drugs) 7,192,500
- ------------------------------------------------------------------------------
ITALY-0.34%
1,400,000 Fiat S.p.A. (Automobile-Manufacturers)(a) 5,710,793
- ------------------------------------------------------------------------------
2,919,000 Telecom Italia (Telecommunications) 7,790,035
- ------------------------------------------------------------------------------
Total Italy 13,500,828
- ------------------------------------------------------------------------------
JAPAN-0.29%
110,000 Autobacs Seven (Automobile/Trucks Parts & Tires) 11,479,741
- ------------------------------------------------------------------------------
MALAYSIA-0.14%
810,500 Malayan Banking Berhad (Banking) 5,541,040
- ------------------------------------------------------------------------------
NETHERLANDS-1.10%
875,000 Philips N.V.-ADR (Electronic Components
Miscellaneous) 33,687,500
- ------------------------------------------------------------------------------
120,000 Wolters Kluwer N.V. (Publishing) 9,764,835
- ------------------------------------------------------------------------------
Total Netherlands 43,452,335
- ------------------------------------------------------------------------------
SINGAPORE-0.16%
790,000 Keppel Corp. Ltd. (Conglomerates) 6,406,171
- ------------------------------------------------------------------------------
</TABLE>
12
<PAGE>
FINANCIALS
<TABLE>
<CAPTION>
SHARES MARKET VALUE
<C> <S> <C>
SPAIN-0.12%
147,300 Repsol S. A.-ADR (Natural Gas Pipeline) $ 4,713,600
- ---------------------------------------------------------------------------
SWEDEN-1.24%
250,000 ASTRA AB (Medical-Drugs) 7,122,899
- ---------------------------------------------------------------------------
150,000 Electrolux "B" (Appliances) 7,659,697
- ---------------------------------------------------------------------------
509,540 Telefonaktiebolaget L.M.Ericsson Class B
(Telecommunications) 34,171,026
- ---------------------------------------------------------------------------
Total Sweden 48,953,622
- ---------------------------------------------------------------------------
SWITZERLAND-0.36%
6,500 BBC Brown Boveri Ltd. (Conglomerates) 6,412,683
- ---------------------------------------------------------------------------
11,500 Ciba-Geigy Ltd. (Medical-Drugs) 7,864,620
- ---------------------------------------------------------------------------
Total Switzerland 14,277,303
- ---------------------------------------------------------------------------
UNITED KINGDOM-1.74%
390,800 British Sky Broadcasting-ADR (Advertising-
Broadcasting)(a) 9,379,200
- ---------------------------------------------------------------------------
450,000 Danka Business Systems PLC-ADR (Office
Automation) 12,318,750
- ---------------------------------------------------------------------------
1,000,000 Granada Group PLC (Leisure & Recreation) 9,164,789
- ---------------------------------------------------------------------------
730,000 Pearson PLC (Conglomerates) 6,731,413
- ---------------------------------------------------------------------------
807,950 Rank Organization PLC (Conglomerates) 5,512,887
- ---------------------------------------------------------------------------
475,000 SmithKline Beecham PLC-ADR (Medical-Drugs) 18,465,625
- ---------------------------------------------------------------------------
410,000 Thorn EMI PLC (Leisure & Recreation) 7,501,931
- ---------------------------------------------------------------------------
Total United Kingdom 69,074,595
- ---------------------------------------------------------------------------
Total Foreign Stocks & Other Equity Interests 300,587,293
- ---------------------------------------------------------------------------
TOTAL INVESTMENTS-99.91% 3,957,636,433
- ---------------------------------------------------------------------------
OTHER ASSETS LESS LIABILITIES-0.09% 3,586,384
- ---------------------------------------------------------------------------
NET ASSETS-100.00% $3,961,222,817
===========================================================================
</TABLE>
NOTES TO SCHEDULE OF INVESTMENTS:
(a) Non-income producing security.
Abbreviations:
ADR--American Depository Receipt
Pfd.--Preferred
See Notes to Schedule of Investments.
13
<PAGE>
FINANCIALS
STATEMENT OF ASSETS AND LIABILITIES
April 30, 1995
(Unaudited)
<TABLE>
<S> <C>
ASSETS:
Investments, at market value (cost $3,303,426,255) $ 3,957,636,433
- -------------------------------------------------------------------------
Foreign currencies, at market value (cost $2,619,857) 2,647,373
- -------------------------------------------------------------------------
Receivables for:
Investments sold 178,079,250
- -------------------------------------------------------------------------
Capital stock sold 5,922,563
- -------------------------------------------------------------------------
Interest and dividends 1,699,153
- -------------------------------------------------------------------------
Investment for deferred compensation plan 46,491
- -------------------------------------------------------------------------
Other assets 102,261
- -------------------------------------------------------------------------
Total assets 4,146,133,524
- -------------------------------------------------------------------------
LIABILITIES:
Payables for:
Investments purchased 147,374,349
- -------------------------------------------------------------------------
Capital stock reacquired 13,550,279
- -------------------------------------------------------------------------
Deferred compensation 46,491
- -------------------------------------------------------------------------
Amount due to custodian bank 18,141,093
- -------------------------------------------------------------------------
Options written 700,000
- -------------------------------------------------------------------------
Accrued advisory fees 1,994,848
- -------------------------------------------------------------------------
Accrued administrative service fees 77,865
- -------------------------------------------------------------------------
Accrued distribution fees 1,451,209
- -------------------------------------------------------------------------
Accrued transfer agent fees 604,246
- -------------------------------------------------------------------------
Accrued operating expenses 970,327
- -------------------------------------------------------------------------
Total liabilities 184,910,707
- -------------------------------------------------------------------------
Net assets applicable to shares outstanding $ 3,961,222,817
=========================================================================
NET ASSETS:
Institutional Class $ 43,007,649
=========================================================================
Retail Class $ 3,918,215,168
=========================================================================
CAPITAL STOCK, $.001 PAR VALUE PER SHARE:
Institutional Class:
Authorized 200,000,000
- -------------------------------------------------------------------------
Outstanding 2,523,451
=========================================================================
Retail Class:
Authorized 750,000,000
- -------------------------------------------------------------------------
Outstanding 231,120,344
=========================================================================
INSTITUTIONAL CLASS:
Net asset value, offering and redemption price per share $17.04
=========================================================================
RETAIL CLASS:
Net asset value and redemption price per share $16.95
=========================================================================
Offering price per share:
(Net asset value of $16.95 divided by 94.50%) $17.94
=========================================================================
</TABLE>
See Notes to Financial Statements.
14
<PAGE>
FINANCIALS
STATEMENT OF OPERATIONS
For the six months ended April 30, 1995
(Unaudited)
<TABLE>
<S> <C>
INVESTMENT INCOME:
Dividends (net of $274,813 foreign withholding tax) $ 16,840,128
- ---------------------------------------------------------------------------------------------------------------
Interest 6,297,919
- ---------------------------------------------------------------------------------------------------------------
Total investment income 23,138,047
- ---------------------------------------------------------------------------------------------------------------
EXPENSES:
Advisory fees 11,690,289
- ---------------------------------------------------------------------------------------------------------------
Custodian fees 388,052
- ---------------------------------------------------------------------------------------------------------------
Distribution fees 5,584,160
- ---------------------------------------------------------------------------------------------------------------
Administrative service fees 144,903
- ---------------------------------------------------------------------------------------------------------------
Directors' fees 19,369
- ---------------------------------------------------------------------------------------------------------------
Transfer agent fees 3,192,099
- ---------------------------------------------------------------------------------------------------------------
Other 1,352,689
- ---------------------------------------------------------------------------------------------------------------
Total expenses 22,371,561
- ---------------------------------------------------------------------------------------------------------------
Net investment income 766,486
- ---------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN ON INVESTMENT SECURITIES, FOREIGN CURRENCIES, FUTURES AND OPTIONS
CONTRACTS:
Net realized gain on sales of:
Investment securities 124,419,986
- ---------------------------------------------------------------------------------------------------------------
Foreign currencies 617,622
- ---------------------------------------------------------------------------------------------------------------
Futures contracts 6,404,690
- ---------------------------------------------------------------------------------------------------------------
Options contracts 3,680,448
- ---------------------------------------------------------------------------------------------------------------
135,122,746
- ---------------------------------------------------------------------------------------------------------------
Unrealized appreciation (depreciation) of:
Investment securities 117,960,603
- ---------------------------------------------------------------------------------------------------------------
Foreign currencies (334,387)
- ---------------------------------------------------------------------------------------------------------------
Futures contracts (4,057,392)
- ---------------------------------------------------------------------------------------------------------------
Options contracts (429,508)
- ---------------------------------------------------------------------------------------------------------------
113,139,316
- ---------------------------------------------------------------------------------------------------------------
Net gain on investment securities, foreign currencies, futures and options contracts 248,262,062
- ---------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 249,028,548
- ---------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
15
<PAGE>
FINANCIALS
STATEMENT OF CHANGES IN NET ASSETS
For the six months ended April 30, 1995 and the year ended October 31, 1994
(Unaudited)
<TABLE>
<CAPTION>
APRIL 30, OCTOBER 31,
1995 1994
<S> <C> <C>
OPERATIONS:
Net investment income $ 766,486 $ 18,228,044
- ----------------------------------------------------------------------------------------------------------------------------
Net realized gain on sales of investment securities, foreign currencies, futures and
options contracts 135,122,746 387,037,586
- ----------------------------------------------------------------------------------------------------------------------------
Unrealized appreciation (depreciation) of investment securities, foreign currencies,
futures and options contracts 113,139,316 (259,837,784)
- ----------------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 249,028,548 145,427,846
- ----------------------------------------------------------------------------------------------------------------------------
Dividends to shareholders from net investment income (15,093,174) (30,271,322)
- ----------------------------------------------------------------------------------------------------------------------------
Distributions to shareholders from net realized gains on investment securities (391,404,259) (90,039,071)
- ----------------------------------------------------------------------------------------------------------------------------
Net equalization credits (charges) 1,342,063 (10,124,934)
- ----------------------------------------------------------------------------------------------------------------------------
Share transactions-net:
Institutional Class 4,020,267 96,085
- ----------------------------------------------------------------------------------------------------------------------------
Retail Class 106,984,580 (1,048,548,626)
- ----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets (45,121,975) (1,033,460,022)
- ----------------------------------------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 4,006,344,792 5,039,804,814
- ----------------------------------------------------------------------------------------------------------------------------
End of period $3,961,222,817 $ 4,006,344,792
============================================================================================================================
NET ASSETS CONSIST OF:
Capital (par value and additional paid-in) $3,151,222,426 $ 3,040,217,579
- ----------------------------------------------------------------------------------------------------------------------------
Undistributed net investment income 27,864,007 40,848,632
- ----------------------------------------------------------------------------------------------------------------------------
Undistributed net realized gain on sales of investment securities, foreign currencies,
futures and options contracts 128,315,191 384,596,704
- ----------------------------------------------------------------------------------------------------------------------------
Unrealized appreciation of investment securities, foreign currencies, futures and
options contracts 653,821,193 540,681,877
- ----------------------------------------------------------------------------------------------------------------------------
$3,961,222,817 $ 4,006,344,792
============================================================================================================================
</TABLE>
See Notes to Financial Statements.
16
<PAGE>
FINANCIALS
NOTES TO FINANCIAL STATEMENTS
April 30, 1995
(Unaudited)
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, AIM Charter Fund and AIM Constellation Fund
currently offer two different classes of shares: the Retail Class and the
Institutional Class. AIM Aggressive Growth Fund currently offers only one
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. Each security
traded in the over-the-counter market (but not including securities reported
on the NASDAQ National Market System) is valued at the mean between the last
bid and asked prices based upon quotes furnished by market makers for such
securities. Each security reported on the NASDAQ National Market System is
valued at the last sales price on the valuation date. Securities for which
market quotations are not readily available are valued at fair value as
determined in good faith by or under the supervision of the Company's
officers in a manner specifically authorized by the Board of Directors of
the Company. Short-term obligations having 60 days or less to maturity are
valued at amortized cost which approximates market value. 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
17
<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 5% 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 both
classes, e.g. advisory fees, are allocated between 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 six months ended
April 30, 1995, AIM waived fees of $320,681. 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 and shareholder services to the Fund. During the six months ended
April 30, 1995, AIM was reimbursed $144,903 for such services.
The Fund, pursuant to a transfer agency and service agreement, has agreed to
reimburse A I M Fund Services, Inc. ("AFS") for certain costs incurred in
providing transfer agency services to the Retail Class. During the six months
ended April 30, 1995, AFS was reimbursed $1,956,672 for such services.
The Company has entered into a master distribution agreement with A I M
Distributors, Inc. ("AIM Distributors") to serve as the distributor for the
Retail Class and a master distribution agreement with Fund Management Company
("FMC") to serve as the distributor for the Institutional Class. The Company
has also adopted a Plan pursuant to Rule 12b-1 under the 1940 Act (the "Plan"),
with respect to the Retail Class, whereby the Fund will pay AIM Distributors an
annual rate of 0.30% of the Retail Class' average daily net assets as
compensation for services related to the sales and distribution of the Retail
Class' shares. The Plan provides that payments to dealers and other financial
institutions that provide continuing personal shareholder services to their
customers who purchase and own shares of the Retail Class, in amounts of up to
0.25% of the average net assets of the Retail Class attributable to the
customers of such dealers or financial institutions, may be characterized as a
service fee. The Plan also provides that payments to dealers and other
financial institutions in excess of such amount, and payments to AIM
Distributors, are characterized as an asset-based sales charge under the Plan.
The Plan also imposes a cap on the total amount of sales charges, including
asset-based sales charges, that may be paid by the Company with respect to the
Fund's Retail Class. During the six months ended April 30, 1995, the Retail
Class paid AIM Distributors $5,584,160 as compensation pursuant to the Plan.
AIM Distributors received commissions of $733,116 from sales of shares of the
Retail Class' capital stock during the six months ended April 30, 1995. Such
commissions are not an expense of the Fund. They are deducted from, and are not
included in, the proceeds from sales of capital stock. Certain officers and
directors of the Company are officers and directors of AIM, AIM Capital, AIM
Distributors, AFS and FMC.
During the six months ended April 30, 1995 the Fund paid legal fees of $4,370
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.
18
<PAGE>
FINANCIALS
NOTE 3 - INVESTMENT SECURITIES
The aggregate amount of investment securities (other than short-term
securities) purchased and sold during the six months ended April 30, 1995 was
$2,553,326,746 and $2,605,809,976, respectively.
The amount of unrealized appreciation (depreciation) of investment securities
on a tax basis as of April 30, 1995 is as follows:
<TABLE>
<S> <C>
Aggregate unrealized appreciation of investment securities $703,527,501
- ---------------------------------------------------------------------------
Aggregate unrealized (depreciation) of investment securities (49,987,823)
- ---------------------------------------------------------------------------
Net unrealized appreciation of investment securities $653,539,678
===========================================================================
</TABLE>
Cost of investments for tax purposes is $3,304,096,755.
NOTE 4 - DIRECTORS' FEES
Directors' fees represent remuneration paid or accrued to each director who is
not an "interested person" of the Company. The Company invests directors' fees,
if so elected by a director, in mutual fund shares in accordance with a
deferred compensation plan.
NOTE 5 - OPTION CONTRACTS WRITTEN
Transactions in call options written during the six months ended April 30, 1995
are summarized as follows:
<TABLE>
<CAPTION>
OPTION CONTRACTS
--------------------
NUMBER
OF PREMIUMS
CONTRACTS RECEIVED
--------- ----------
<S> <C> <C>
Beginning of year -- --
- -----------------------------------------------------------------------------
Written 26,413 $6,077,527
- -----------------------------------------------------------------------------
Closed (8,309) (2,441,187)
- -----------------------------------------------------------------------------
Exercised (2,833) (617,192)
- -----------------------------------------------------------------------------
Expired (13,271) (2,748,656)
- -----------------------------------------------------------------------------
End of year 2,000 $ 270,492
=============================================================================
</TABLE>
Open call option contracts written at April 30, 1995 were as follows:
<TABLE>
<CAPTION>
APRIL 30, UNREALIZED
CONTRACT NUMBER OF PREMIUM 1995 APPRECIATION
ISSUER MONTH CONTRACTS RECEIVED MARKET VALUE (DEPRECIATION)
<S> <C> <C> <C> <C> <C>
Coca Cola Co. (The) May 2,000 $270,492 $(700,000) $(429,508)
============================================================================
</TABLE>
NOTE 6 - CAPITAL STOCK
Changes in the Retail Class capital stock outstanding during six months ended
April 30, 1995 and the year ended October 31, 1994 were as follows:
<TABLE>
<CAPTION>
APRIL 30, 1995 OCTOBER 31, 1994
-------------------------- ----------------------------
SHARES VALUE SHARES VALUE
----------- ------------- ----------- ---------------
<S> <C> <C> <C> <C>
Sold 15,716,236 $ 249,014,469 22,715,102 $ 385,995,119
- ---------------------------------------------------------------------------------
Issued as reinvestment
of dividends 24,460,017 361,036,594 4,979,521 84,004,521
- ---------------------------------------------------------------------------------
Reacquired (31,570,182) (503,066,483) (88,892,319) (1,518,548,266)
- ---------------------------------------------------------------------------------
8,606,071 $ 106,984,580 (66,197,696) $(1,048,548,626)
=================================================================================
</TABLE>
19
<PAGE>
FINANCIALS
NOTE 7 - FINANCIAL HIGHLIGHTS
Shown below are the condensed financial highlights for a Retail Class share
outstanding during the six months ended April 30, 1995, each of the years in
the six-year period ended October 31, 1994, the ten months ended October 31,
1988 and each of the years in the two-year period ended December 31, 1987(a).
<TABLE>
<CAPTION>
APRIL 30, OCTOBER 31,
---------- -----------------------------------------------------------------------------
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 0.01 0.07 0.10 0.10 0.11 0.09 0.10 0.07
- ------------------ ---------- ---------- ---------- ---------- ---------- -------- -------- --------
Net gains
(losses) on
securities (both
realized and
unrealized) 0.97 0.57 0.93 0.98 4.80 (0.56) 3.10 0.80
- ------------------ ---------- ---------- ---------- ---------- ---------- -------- -------- --------
Total from
investment
operations 0.98 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 $ 16.95 $ 17.82 $ 17.62 $ 16.68 $ 15.76 $ 11.15 $ 12.32 $ 9.23
================== ========== ========== ========== ========== ========== ======== ======== ========
Total return(c) 6.89% 3.76% 6.17% 6.85% 44.88% (4.03)% 35.13% 10.41%
================== ========== ========== ========== ========== ========== ======== ======== ========
Ratios/supplemental
data:
Net assets, end of
period (000s
omitted) $3,918,215 $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%
================== ========== ========== ========== ========== ========== ======== ======== ========
Ratio of net
investment income
to average net
assets 0.1%(d) 0.4% 0.6% 0.6% 0.7% 0.8% 1.0% 0.9%
================== ========== ========== ========== ========== ========== ======== ======== ========
Portfolio turnover
rate 70% 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) -- -- -- -- -- $ 485 $ 1,083 $ 229
================== ========== ========== ========== ========= ========== ======== ======== ========
Average number of
shares
outstanding
during the period
(000s omitted)(e) 231,500 249,351 314,490 246,273 102,353 44,770 31,275 33,031
================== ========== ========== ========== ========== ========== ======== ======== ========
Average amount of
debt per share
during the period -- -- -- -- -- $ 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 2 for 1 stock splits,
effected in the form of dividends, on September 29, 1987, and July 15,
1983.
(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) Ratios are annualized and based on average net assets of $3,753,625,168.
(e) Averages computed on a daily basis.
20
<PAGE>
DIRECTORS AND OFFICERS
<TABLE>
<CAPTION>
BOARD OF DIRECTORS OFFICERS OFFICE OF THE FUND
<S> <C> <C>
Charles T. Bauer Charles T. Bauer 11 Greenway Plaza
Chairman and Chief Executive Officer Chairman Suite 1919
A I M Management Group Inc. Houston, TX 77046
Robert H. Graham (800) 347-1919
Bruce L. Crockett President
President and Chief Executive Officer INVESTMENT ADVISER
COMSAT Corporation John J. Arthur
Senior Vice President and Treasurer A I M Advisors, Inc.
Owen Daly II 11 Greenway Plaza
Director Gary T. Crum Suite 1919
Cortland Trust Inc. Senior Vice President Houston, TX 77046
Carl Frischling Jonathan C. Schoolar TRANSFER AGENT
Partner Senior Vice President
Kramer, Levin, Naftalis, Nessen, A I M Fund Services, Inc.
Kamin & Frankel Carol F. Relihan P.O. Box 4739
Vice President and Secretary Houston, TX 77210-4739
Robert H. Graham
President Melville B. Cox CUSTODIAN
A I M Management Group Inc. Vice President
State Street Bank and Trust
John F. Kroeger Dana R. Sutton Company
Formerly, Consultant Vice President 225 Franklin Street
Wendell & Stockel Associates, Inc. and Assistant Treasurer Boston, MA 02110
Lewis F. Pennock P. Michelle Grace COUNSEL TO THE FUND
Attorney Assistant Secretary
Ballard Spahr
Ian W. Robinson Nancy L. Martin Andrews & Ingersoll
Consultant; Former Executive Assistant Secretary 1735 Market Street, 51st Floor
Vice President and Philadelphia, PA 19103
Chief Financial Officer Ofelia M. Mayo
Bell Atlantic Management Assistant Secretary COUNSEL TO THE DIRECTORS
Services, Inc.
Kathleen J. Pflueger Kramer, Levin, Naftalis,
Louis S. Sklar Assistant Secretary Nessen, Kamin & Frankel
Executive Vice President 919 Third Avenue
Hines Interests Samuel D. Sirko New York, NY 10022
Limited Partnership Assistant Secretary
DISTRIBUTOR
Stephen I. Winer
Assistant Secretary A I M Distributors, Inc.
11 Greenway Plaza
Mary J. Benson Suite 1919
Assistant Treasurer Houston, TX 77046
</TABLE>
This report may be distributed only to current shareholders or to persons who
have received a current prospectus of the Fund.
21
<PAGE>
[LOGO OF AIM APPEARS HERE] A I M Distributors, Inc. BULK RATE
11 Greenway Plaza, Suite 1919 U.S. POSTAGE
Houston, Texas 77046 PAID
Houston, TX
Permit No. 2332
THE AIM FAMILY OF FUNDS(R)
AGGRESSIVE GROWTH
AIM Aggressive Growth Fund*
AIM Constellation Fund
AIM Global Aggressive Growth Fund
GROWTH
AIM Global Growth Fund
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 [FULL PAGE PHOTO OF AIM MANAGEMENT
AIM Income Fund GROUP OFFICE BUILDING]
CURRENT TAX-FREE INCOME
AIM Municipal Bond Fund
AIM Tax-Exempt Bond Fund of Conn.
AIM Tax-Free Intermediate Shares
CURRENT INCOME AND HIGH DEGREE OF SAFETY
AIM Government Securities 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 May 2, 1994. For
more complete information about any AIM Fund, including sales charges and
expenses, ask your investment broker or securities dealer for a free
prospectus(es). Please read the prospectus(es) carefully before you invest or
send money. This report may be distributed only to current shareholders or to
persons who have received a current prospectus of the Fund.
