<PAGE> 1
[COVER PHOTO APPEARS HERE]
AIM AGGRESSIVE
GROWTH FUND
[AIM LOGO APPEARS HERE] SEMIANNUAL REPORT APRIL 30, 1996
<PAGE> 2
AIM AGGRESSIVE GROWTH FUND
For shareholders who seek long-term growth of capital by investing in a
portfolio consisting primarily of small-company stocks which management
believes will have earnings growth in excess of the general economy.
ABOUT FUND PERFORMANCE AND PORTFOLIO DATA THROUGHOUT THIS REPORT:
o AIM Aggressive Growth Fund's performance figures are historical and
reflect reinvestment of all distributions and changes in net asset
value. Unless otherwise indicated, the Fund's performance is computed
without a sales charge. When sales charges are included, Fund
performance reflects the maximum 5.50% sales charge.
o 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.
o The Fund's portfolio composition is subject to change and there is no
assurance the Fund will continue to hold any one particular security.
o Past performance cannot guarantee comparable future results.
ABOUT INDEXES AND OTHER PERFORMANCE BENCHMARKS CITED IN THIS REPORT:
o Standard & Poor's Corporation (S&P) is a credit-rating agency. The
unmanaged Standard & Poor's Composite Index of 500 Stocks is widely
regarded by investors as representative of the stock market in
general.
o The Dow Jones Industrial Average (DJIA) is an unmanaged composite of
the performance of 30 large-company stocks.
o Lipper Analytical Services, Inc., is an independent mutual fund
performance monitor. The unmanaged Lipper Small Company Growth Fund
Index represents an average of the performance of the 30 largest
small-capitalization growth funds.
o The unmanaged Russell 2000 Index and the NASDAQ (National Association
of Securities Dealers Automated Quotation System) Composite Index both
are generally representative of the performance of the stocks of
small-capitalization companies.
o An investment cannot be made in the indexes listed. Unless otherwise
indicated, index results include reinvested dividends and do not
reflect sales charges.
This report may be distributed only to current shareholders or to persons who
have received a current prospectus of the Fund.
<PAGE> 3
A Message from
the Chairman
Dear Fellow Shareholder:
"Past performance cannot guarantee comparable future results."
As a mutual fund investor, you've seen this disclaimer on every
piece of mail you've ever received about your fund. You've seen
it so often that you probably don't even think about it or
question what it means. But you should.
[PHOTO OF That sentence about past performance is true now more than
Charles T. ever. These days it bluntly means "Don't expect the 25% to 35%
Bauer, returns you received last year." Don't automatically expect
Chairman of the 15% to 20% returns of the past decade, either. History
the Board of shows that the average annual return is about 9% to 10%. If
the Fund, you're investing in mutual funds with expectations of
APPEARS HERE] double-digit returns every year, you will be disappointed.
Maybe not today, but sometime in the future.
What is a realistic expectation for 1996? In this uncertain
market, it is easier to discuss what is unrealistic. Last
year's performance was an anomaly--the equivalent of euphoria.
To expect a repeat is unrealistic.
I realize I am sounding a warning bell during the mutual fund industry's best
year ever. Investors like you poured $99 billion into stock mutual funds during
the first four months of 1996--the highest inflows on record. At $3 trillion in
assets, the industry has grown 1,500 times over the past 50 years. If we are to
sustain that growth, we must have the public's confidence. Our industry has a
long-standing reputation for honesty and integrity. To maintain that reputation
as our assets swell into the trillions, we must make sure that we don't promise
anything we can't produce.
The industry's concern about investors' expectations goes beyond stamping all
our advertising with a standard disclaimer about performance. Mutual fund
leaders recently met for a conference in New York, and foremost on our minds
was educating investors about market volatility.
A whole generation of investors has seen nothing but a bull market, which
started in 1982. Except for the 1987 market crash, they've enjoyed a heady
rise. They may expect the same throughout this decade. I've been in the mutual
fund industry for more than 25 years, and I have seen a 5% to 10% market
correction about every five years. The last major correction was in 1990. If
history is any kind of teacher, we are overdue.
The challenge for investors is not to panic when the market takes a downturn.
We have another saying in the industry: "Focus on time, not timing." Over time,
the stock market has proven to be the only investment that consistently beats
inflation. But investing in it takes a long-term view. Market timing--trying to
play the market and "rescue" your money in a downturn--has proven to be an
inefficient strategy for most investors.
The challenge for the mutual fund industry is to keep your trust during a bear
market. The industry has survived and thrived because of its built-in
integrity: By law, we must operate in the best interests of our shareholders.
The mutual fund industry is among the most regulated in the country. The
Investment Company Act of 1940, which governs our industry, protects
shareholders against self-dealing, conflicts of interest, misappropriation of
funds, and other fraudulent activities.
The industry also polices itself. At AIM we have an exhaustive code of ethics
that governs each of our 1,150 employees.
(continued)
----------------------------
At $3 trillion
in assets, the industry
has grown
1,500 times over the
past 50 years.
If we are to sustain
that growth, we must
have the public's
confidence.
----------------------------
<PAGE> 4
A Message from
the Chairman
On a very basic level, it boils down to this: We are dealing with your money,
and if we lose your trust, we lose our business.
We are vulnerable to even the hint of impropriety. That's why the mutual fund
industry is set up to avoid even the perception of self-dealing. Fund managers
succeed to the extent that they attract and keep investors. If they lose your
faith, managers ultimately will fail.
Mutual funds are highly liquid investments. Any time you choose, you can pull
out of a fund and receive a redemption price reflective of the market that day.
If you become dissatisfied with a fund manager, it's easy to leave and go
elsewhere. With more than 7,000 funds available, it's a buyers' market.
The next time you read "Past performance cannot guarantee comparable future
results," think about your own expectations as an investor. We cannot promise
you another year like 1995. But we can promise to manage your money with
honesty and integrity.
Respectfully submitted,
/s/ CHARLES T. BAUER
Charles T. Bauer
Chairman
On the following pages is a complete discussion of your Fund's performance and
investment strategy. If you have any questions or comments about this report,
please call our Client Services department 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.
2
<PAGE> 5
Management's
Discussion & Analysis
[PHOTO APPEARS AIM AGGRESSIVE GROWTH FUND INCREASES
HERE] DIVERSIFICATION IN A TURBULENT MARKET
MARKET RECAP
Uncertainty plagued the performance of stock markets through most of the
six-month period ended April 30, 1996. With uncertainty came unprecedented
volatility as markets were whipsawed by sweeping point swings. The New York
Stock Exchange's 50 point "collar" on daily program trading was triggered a
record 49 times during the first four months of 1996.
The principal concern was that conditions which prompted 1995's remarkable
advance in stocks-robust corporate earnings, moderate economic growth, and mild
inflation-would not continue. Indeed, The Wall Street Journal reported that
corporate earnings fell precipitously in the fourth quarter of 1995, and the
economy slowed to a feeble annual growth rate of 0.5%.
Initially, the technology-laden small company market averages were hardest
hit. After a stellar performance through most of 1995, the technology sector
seemed to confirm investor concerns about corporate profits when key companies
reported disappointing earnings and rising inventories. Investors flocked to
defensive, blue-chip stocks and waited for the Federal Reserve Bank Board to
spur the economy by cutting interest rates. The Fed did lower rates in December
and January, but market watchers anticipated that further cuts were possible.
In March, everything changed. The Labor Department released the first of two
stunningly strong monthly employment reports and the DJIA fell 171 points in
one day. Gasoline and commodity prices were sharply higher. Fed Chairman Alan
Greenspan cautioned about growing wage pressures. Suddenly the economy appeared
to be overheating and analysts voiced the concern that the Fed might have to
raise interest rates to slow it down.
In less than two weeks, the markets warmed to the benefits of a growing
economy and major averages advanced to near record levels. One analyst equipped
that it was a "Goldilocks econ-omy-not too hot and not too cold."
Subsequent reports offered a mixed picture of the economy. Job growth slowed,
but consumer income and spending levels rose and factory orders surged.
Corporate earnings were better than expected though well below year-ago levels.
I/B/E/S International, a Wall Street firm that tabulates corporate earnings
estimates, reported that 54% of 1,929 companies surveyed posted earnings that
were better than analysts' expectations.
Though the markets remained skittish, stocks resumed their advance toward
record levels, particularly small-company stocks. Market leadership was
broadly divided across selected sectors including cyclical consumer, energy,
industrial, and technology. The NASDAQ Composite Index made nine consecutive
records in the final days of April to close at 1190.58, up 14.91% for the
reporting period. The DJIA finished the period up 18.46%, and the S&P 500
gained 13.76%.
YOUR FUND'S INVESTMENT STRATEGY
The changing earnings environment set the stage for significant changes in
market leadership during the reporting period. AIM Aggressive Growth Fund
looked past the market turbulence to uncover companies still exhibiting
accelerating earnings growth. The Fund performed well, outpacing both its peer
group and the performance of small company stocks in general. Total return for
the
- --------------------------------------------------------------------------------
PORTFOLIO HOLDINGS
- --------------------------------------------------------------------------------
TOP 10 EQUITY HOLDINGS (AS OF APRIL 30, 1996)
1. PairGain Technologies, Inc.
2. Cascade Communications Corp.
3. FORE Systems, Inc.
4. U.S. Robotics Corp.
5. Xylan Corp.
6. Shared Medical Systems Corp.
7. Medaphis Corp.
8. Business Objects S.A.
9. Andrew Corp.
10. Kent Electronics Corp.
----------------------------
Total return for
AIM Aggressive Growth
Fund during
the six-month period
ended April 30, 1996,
was 21.85%.
----------------------------
3
<PAGE> 6
Management's
Discussion & Analysis
- ----------------------------
AIM Aggressive
Growth Fund
looked past the
market turbulence
to uncover
companies still
exhibiting accelerating
earnings growth.
- ----------------------------
Fund during the six-month period ended April 30, 1996, was 21.85%. Total return
for the NASDAQ Composite and the Russell 2000, two measures of small company
stock performance, rose 14.91% and 18.42% for the same period, respectively,
and the Lipper Small Company Growth Fund Index was up 19.33%.
The Fund's favorable market performance contributed to an increase in net
assets over the period from $2.25 billion to $2.84 billion. The Fund increased
the number of its holdings to 361, with emphasis on selected technology
producers, medical services and supplies providers, and cyclical consumer goods
and services companies. Keep in mind, the Fund's portfolio composition may
change and there is no assurance the Fund will continue to hold any particular
security.
Technology companies, which had comprised roughly 45% of the Fund's holdings,
were pared to 37% and emphasis was shifted from semiconductor producers to
computer software and networking companies. The Fund added Xylan Corp., a
leading provider of high-bandwidth switching systems that enhance the
performance of existing local area networks and facilitate migration to next
generation networking technologies. Also new to the portfolio were Business
Objects S.A., a leading provider of enterprise decision support tools, and
Engineering Animation, Inc., a developer of 3D animation products. Many
existing positions were up sharply on strong earnings reports, including Shared
Medical Systems Corp., a designer of computer-based information processing
systems, and telecommunications equipment maker PairGain Technologies, Inc.,
the Fund's largest holding.
The Fund held more than 20% of its holdings in medical services and equipment
suppliers. Many were new to the portfolio, such as Dentsply International,
Inc., a maker of x-ray systems for dental markets, and Sofamor Danek Group,
Inc., a global manufacturer of spinal implants. The Fund also added ABR
Information Services, Inc., a health-benefits administrator. Sybron Corp. and
Rotech Medical Corp. continued as solid performers, with each reporting strong
earnings in its most recent quarterly report.
Cyclical consumer goods and services companies-among the better performing
sectors during the reporting period- comprised approximately 16% of the Fund's
holdings. The Fund was diversified into 10 different industries, and retail
- -------------------------------------------------------------------------------
LIPPER RANKINGS
AS OF APRIL 30, 1996
- -------------------------------------------------------------------------------
Rank vs.
All Mutual Funds Percentile
Period Tracked by Lipper Rank
------ ----------------- ----------
1 year 104 of 7,911 1%
3 years 5 of 4,500 1%
5 years 2 of 2,886 1%
10 years 21 of 1,278 2%
- ------------------------------------------------------------------------------
Fund percentage rankings are based on total returns and are vs. all mutual
funds tracked by Lipper, excluding sales charges and including fees and
expenses. Of course, past performance cannot guarantee comparable future
results.
- -------------------------------------------------------------------------------
MORNINGSTAR RATINGS*
AS OF APRIL 30, 1996
- -------------------------------------------------------------------------------
Funds in
Equity
Period Rating Category
- ------ ------ --------
Overall ***** NA
3 years ***** 1,505
5 years ***** 978
10 years ***** 520
*Morningstar's rating system of one (lowest) to five (highest) stars is based
on risk and return ratios for three-, five-, and 10-year periods and considers
all loads, expenses, and fees. Ratings compare funds with similar investment
objectives and represent past performance, which is no guarantee of comparable
future results.
- -------------------------------------------------------------------------------
4
<PAGE> 7
Long-Term
Performance
stores comprised the greatest emphasis. Positions in Sunglass Hut
International, Inc. and The Sport's Authority, Inc. were increased as they
continued to exhibit attractive earnings momentum. Among the Fund's new
additions were Tech Data Corp., a Fortune 500 distributor of personal computer
products with more than 50,000 resellers and retail dealers, and Garden Ridge
Corp., a retailer of home accessories and decorative products that recently
announced plans to expand 25%-30% annually for the next few years.
OUTLOOK
Signs are that volatility will persist in financial markets for some time.
Shortly after the reporting period ended on April 30, the Commerce Department
reported that the economy had grown a surprising 2.8% in the first quarter of
1996. Not surprising, the markets plummeted amid inflationary fears and The
Wall Street Journal ran a headline that said, "Yikes! Good News!" Days later,
markets recuperated on economic news that suggested inflation was not a threat:
declining employment levels and retail sales, and tame increases of just 0.4%
in producer prices and 0.5% in industrial production.
The outlook for corporate earnings is mixed for the second quarter of 1996.
The dampeners will be the rise in interest rates from the middle of the first
quarter, a stronger U.S. dollar, and strong energy prices. Higher interest
rates increase the cost of borrowing and erode profits. A strong dollar impacts
competition in overseas markets. Higher oil prices have a negative ripple
effect in several industries from airlines to travel to transportation.
- -------------------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT
10 years ended April 30, 1996
Past performance cannot guarantee comparable future results.
- -------------------------------------------------------------------------------
AIM Aggressive Russell 2000 Small Company
Growth Fund Stock Index Growth Funds
- ---- --------------- ------------- --------------
4/86 9,447 10,000 10,000
4/87 9,999 11,004 11,228
4/88 8,592 10,133 10,546
4/89 9,389 11,692 12,471
4/90 9,684 11,436 13,019
4/91 12,324 12,601 15,068
4/92 15,069 14,751 17,964
4/93 18,821 17,077 20,503
4/94 25,580 19,601 23,545
4/95 32,439 21,018 25,735
4/96 49,832 27,952 36,214
- ------------------------------------------------------------------------------
Source: Towers Data Systems HYPO(R)
Your Fund's total return includes sales charges, expenses, and management fees.
For Fund performance calculations and descriptions of indexes cited on this
page, please refer to the inside front cover.
- ----------------------------------
As of March 31, 1996
(the most recent calendar quarter)
1 Year 32.12%*
5 Years 27.76
10 Years 16.35
*39.81% excluding sales charge
- ----------------------------------
5
<PAGE> 8
Financials
SCHEDULE OF INVESTMENTS
April 30, 1996
(Unaudited)
<TABLE>
<CAPTION>
SHARES MARKET VALUE
<S> <C> <C>
COMMON STOCKS-97.49%
ADVERTISING/BROADCASTING-1.55%
181,400 American Radio Systems Corp.(a) $ 6,122,250
- ---------------------------------------------------------------------------------------------
250,000 Chancellor Corp.-Class A(a) 6,375,000
- ---------------------------------------------------------------------------------------------
100,000 Clear Channel Communications, Inc.(a) 6,775,000
- ---------------------------------------------------------------------------------------------
150,000 HA-LO Industries, Inc.(a) 5,100,000
- ---------------------------------------------------------------------------------------------
150,000 Heritage Media Corp.-Class A(a) 5,756,250
- ---------------------------------------------------------------------------------------------
200,000 Jacor Communications, Inc.(a) 4,350,000
- ---------------------------------------------------------------------------------------------
100,000 Meridith Corp. 4,537,500
- ---------------------------------------------------------------------------------------------
335,000 Paxson Communications Corp.(a) 4,983,125
- ---------------------------------------------------------------------------------------------
43,999,125
- ---------------------------------------------------------------------------------------------
AUTOMOBILE/TRUCK PARTS & TIRES-0.20%
150,000 Borg-Warner Automotive, Inc. 5,718,750
- ---------------------------------------------------------------------------------------------
BUILDING MATERIALS-0.10%
70,000 Danaher Corp. 2,756,250
- ---------------------------------------------------------------------------------------------
BUSINESS SERVICES-2.52%
400,000 Alternative Resources Corp.(a) 14,500,000
- ---------------------------------------------------------------------------------------------
33,900 APAC Teleservices, Inc.(a) 2,627,250
- ---------------------------------------------------------------------------------------------
400,000 Barrett Business Services, Inc.(a) 7,000,000
- ---------------------------------------------------------------------------------------------
100,000 Cambridge Technology Partners, Inc.(a) 6,725,000
- ---------------------------------------------------------------------------------------------
123,700 Career Horizons, Inc.(a) 4,360,425
- ---------------------------------------------------------------------------------------------
27,000 Childtime Learning Centers(a) 263,250
- ---------------------------------------------------------------------------------------------
86,500 Data Processing Resources Corp.(a) 2,184,125
- ---------------------------------------------------------------------------------------------
230,100 Equity Corp. International(a) 6,586,612
- ---------------------------------------------------------------------------------------------
300,000 IntelliQuest Information Group, Inc.(a) 11,550,000
- ---------------------------------------------------------------------------------------------
225,000 Oxford Resources Corp.(a) 6,637,500
- ---------------------------------------------------------------------------------------------
20,300 Pharmaceutical Product Development, Inc.(a) 857,675
- ---------------------------------------------------------------------------------------------
100,000 PhyMatrix Corp.(a) 1,900,000
- ---------------------------------------------------------------------------------------------
67,500 Romac International, Inc.(a) 2,480,625
- ---------------------------------------------------------------------------------------------
101,600 RTW, Inc.(a) 4,064,010
- ---------------------------------------------------------------------------------------------
71,736,472
- ---------------------------------------------------------------------------------------------
CHEMICALS-0.14%
300,000 Agrium, Inc. (Canada) 3,862,500
- ---------------------------------------------------------------------------------------------
CHEMICALS (SPECIALTY)-0.54%
711,000 Airgas Inc.(a) 15,286,500
- ---------------------------------------------------------------------------------------------
COMPUTER MINI/PCS-0.34%
125,000 CDW Computer Centers, Inc.(a) 9,671,875
- ---------------------------------------------------------------------------------------------
COMPUTER NETWORKING-5.34%
325,000 ACT Networks, Inc.(a) 9,587,500
- ---------------------------------------------------------------------------------------------
320,000 Ascend Communications, Inc.(a) 19,680,000
- ---------------------------------------------------------------------------------------------
300,000 Auspex Systems, Inc.(a) 5,812,500
- ---------------------------------------------------------------------------------------------
</TABLE>
6
<PAGE> 9
Financials
<TABLE>
<CAPTION>
SHARES MARKET VALUE
<S> <C> <C>
Computer Networking-continued
125,000 Belden, Inc. $ 3,718,750
- ---------------------------------------------------------------------------------------------
680,400 Brite Voice Systems, Inc.(a) 13,097,700
- ---------------------------------------------------------------------------------------------
240,000 Cascade Communications Corp.(a) 24,060,000
- ---------------------------------------------------------------------------------------------
482,000 Coherent Communications Systems Corp.(a) 9,278,500
- ---------------------------------------------------------------------------------------------
297,700 FORE Systems, Inc.(a) 23,518,300
- ---------------------------------------------------------------------------------------------
350,000 Gandalf Technologies, Inc.(a) 6,212,500
- ---------------------------------------------------------------------------------------------
300,000 InterVoice, Inc.(a) 8,400,000
- ---------------------------------------------------------------------------------------------
242,900 Madge Networks N.V.(a) (Netherlands) 7,165,550
- ---------------------------------------------------------------------------------------------
216,600 Shiva Corp.(a) 12,941,850
- ---------------------------------------------------------------------------------------------
241,800 Sync Research, Inc.(a) 4,775,550
- ---------------------------------------------------------------------------------------------
225,000 Xircom, Inc.(a) 3,628,125
- ---------------------------------------------------------------------------------------------
151,876,825
- ---------------------------------------------------------------------------------------------
COMPUTER PERIPHERALS-2.09%
300,000 Chips and Technologies, Inc.(a) 3,356,250
- ---------------------------------------------------------------------------------------------
32,000 Iomega Corp.(a) 1,752,000
- ---------------------------------------------------------------------------------------------
145,000 Medic Computer Systems, Inc.(a) 13,557,500
- ---------------------------------------------------------------------------------------------
100,050 Microchip Technology, Inc.(a) 2,551,275
- ---------------------------------------------------------------------------------------------
600,000 Mylex Corp.(a) 14,625,000
- ---------------------------------------------------------------------------------------------
150,000 U.S. Robotics Corp.(a) 23,475,000
- ---------------------------------------------------------------------------------------------
59,317,025
- ---------------------------------------------------------------------------------------------
COMPUTER SOFTWARE/SERVICES-20.55%
300,000 Affiliated Computer Services, Inc.(a) 14,287,500
- ---------------------------------------------------------------------------------------------
300,000 Amisys Managed Care Systems(a) 6,300,000
- ---------------------------------------------------------------------------------------------
190,000 Analysts International Corp. 7,172,500
- ---------------------------------------------------------------------------------------------
400,000 Applied Microsystems Corp.(a) 5,400,000
- ---------------------------------------------------------------------------------------------
150,000 Atria Software, Inc.(a) 8,175,000
- ---------------------------------------------------------------------------------------------
78,500 Bell & Howell Co.(a) 2,472,750
- ---------------------------------------------------------------------------------------------
250,000 Business Objects S.A.(a) 21,625,000
- ---------------------------------------------------------------------------------------------
112,500 Cadence Design Systems, Inc.(a) 5,878,125
- ---------------------------------------------------------------------------------------------
50,000 CBT Group PLC-ADR(a) (Ireland) 3,700,000
- ---------------------------------------------------------------------------------------------
250,000 CFI Proservices, Inc.(a) 6,625,000
- ---------------------------------------------------------------------------------------------
46,100 Checkfree Corp.(a) 887,425
- ---------------------------------------------------------------------------------------------
175,500 Citrix Systems, Inc.(a) 13,689,000
- ---------------------------------------------------------------------------------------------
14,600 Computer Task Group, Inc. 406,975
- ---------------------------------------------------------------------------------------------
600,000 Computervision Corp. 7,275,000
- ---------------------------------------------------------------------------------------------
450,000 Cooper & Chyan Technology, Inc.(a) 7,987,500
- ---------------------------------------------------------------------------------------------
185,200 CSG Systems International, Inc.(a) 5,926,400
- ---------------------------------------------------------------------------------------------
183,600 CyCare Systems, Inc.(a) 6,701,400
- ---------------------------------------------------------------------------------------------
275,000 Cylink Corp.(a) 5,018,750
- ---------------------------------------------------------------------------------------------
18,000 DataWorks Corp.(a) 265,500
- ---------------------------------------------------------------------------------------------
325,000 Dendrite International, Inc.(a) 7,718,750
- ---------------------------------------------------------------------------------------------
300,000 Dialogic Corp.(a) 13,950,000
- ---------------------------------------------------------------------------------------------
204,200 Documentum, Inc.(a) 9,393,200
- ---------------------------------------------------------------------------------------------
310,100 Engineering Animation, Inc.(a) 7,209,825
- ---------------------------------------------------------------------------------------------
128,000 Forte Software, Inc.(a) 7,904,000
- ---------------------------------------------------------------------------------------------
</TABLE>
7
<PAGE> 10
Financials
<TABLE>
<CAPTION>
SHARES MARKET VALUE
<S> <C> <C>
Computer Software/Services-continued
33,600 Gensym Corp.(a) $ 693,000
- ---------------------------------------------------------------------------------------------
122,900 GT Interactive Software Corp.(a) 2,411,912
- ---------------------------------------------------------------------------------------------
110,100 HBO & Co. 13,074,375
- ---------------------------------------------------------------------------------------------
276,600 HCIA, Inc.(a) 14,936,400
- ---------------------------------------------------------------------------------------------
113,200 Health Systems Design Corp.(a) 1,712,150
- ---------------------------------------------------------------------------------------------
250,000 HPR Inc.(a) 10,750,000
- ---------------------------------------------------------------------------------------------
200,000 Hummingbird Communications Ltd.(a) 8,350,000
- ---------------------------------------------------------------------------------------------
65,600 IDX Systems Corp.(a) 2,410,800
- ---------------------------------------------------------------------------------------------
320,600 Imnet Systems, Inc.(a) 10,579,800
- ---------------------------------------------------------------------------------------------
250,000 Indus Group, Inc.(a) 5,312,500
- ---------------------------------------------------------------------------------------------
600,000 Integrated Systems, Inc.(a) 17,550,000
- ---------------------------------------------------------------------------------------------
206,400 Intersolv Inc.(a) 2,244,600
- ---------------------------------------------------------------------------------------------
44,300 Intuit, Inc.(a) 2,303,600
- ---------------------------------------------------------------------------------------------
29,200 i2 Technologies, Inc.(a) 1,189,900
- ---------------------------------------------------------------------------------------------
20,500 Logic Works, Inc.(a) 348,500
- ---------------------------------------------------------------------------------------------
263,100 Lumisys, Inc.(a) 7,761,450
- ---------------------------------------------------------------------------------------------
68,800 McAffee Associates, Inc.(a) 4,214,000
- ---------------------------------------------------------------------------------------------
291,100 Meridian Data, Inc.(a) 5,057,862
- ---------------------------------------------------------------------------------------------
290,000 META Group, Inc.(a) 8,627,500
- ---------------------------------------------------------------------------------------------
347,600 Meta-Software, Inc.(a) 6,256,800
- ---------------------------------------------------------------------------------------------
30,300 MetaTools(a) 848,400
- ---------------------------------------------------------------------------------------------
100,000 Microcom, Inc.(a) 2,437,500
- ---------------------------------------------------------------------------------------------
15,200 National Data Corp. 535,800
- ---------------------------------------------------------------------------------------------
300,000 Network General Corp.(a) 13,237,500
- ---------------------------------------------------------------------------------------------
22,500 Open Text Corp.(a) (Canada) 323,437
- ---------------------------------------------------------------------------------------------
320,000 OrCAD, Inc.(a) 4,280,000
- ---------------------------------------------------------------------------------------------
340,000 PairGain Technologies, Inc.(a) 32,470,000
- ---------------------------------------------------------------------------------------------
250,000 PeopleSoft, Inc.(a) 15,750,000
- ---------------------------------------------------------------------------------------------
100,000 Phamis, Inc.(a) 1,475,000
- ---------------------------------------------------------------------------------------------
300,000 Pinnacle Systems, Inc.(a) 7,725,000
- ---------------------------------------------------------------------------------------------
330,000 PowerCerv Corp.(a) 4,455,000
- ---------------------------------------------------------------------------------------------
49,300 Premenos Technology Corp.(a) 1,109,250
- ---------------------------------------------------------------------------------------------
275,000 Prism Solutions, Inc.(a) 8,971,875
- ---------------------------------------------------------------------------------------------
200,000 Project Software & Development Inc.(a) 7,000,000
- ---------------------------------------------------------------------------------------------
250,000 Pure Software, Inc.(a) 9,937,500
- ---------------------------------------------------------------------------------------------
131,600 RadiSys Corp.(a) 3,421,600
- ---------------------------------------------------------------------------------------------
15,000 Raptor Systems, Inc.(a) 495,000
- ---------------------------------------------------------------------------------------------
300,000 Rational Software Corp.(a) 16,012,500
- ---------------------------------------------------------------------------------------------
202,900 Red Brick Systems, Inc.(a) 12,021,825
- ---------------------------------------------------------------------------------------------
150,000 Renaissance Solutions, Inc.(a) 4,950,000
- ---------------------------------------------------------------------------------------------
335,000 S3, Inc.(a) 4,731,875
- ---------------------------------------------------------------------------------------------
20,100 Sapient Corp.(a) 1,060,275
- ---------------------------------------------------------------------------------------------
400,000 Segue Software, Inc.(a) 11,800,000
- ---------------------------------------------------------------------------------------------
325,000 Shared Medical Systems Corp. 22,262,500
- ---------------------------------------------------------------------------------------------
150,000 SoftKey International, Inc.(a) 4,200,000
- ---------------------------------------------------------------------------------------------
176,500 Software 2000(a) 2,801,937
- ---------------------------------------------------------------------------------------------
</TABLE>
8
<PAGE> 11
Financials
<TABLE>
<CAPTION>
SHARES MARKET VALUE
<S> <C> <C>
Computer Software/Services-continued
100,000 Sterling Software, Inc.(a) $ 7,775,000
- ---------------------------------------------------------------------------------------------
100,000 Summit Medical Systems(a) 2,237,500
- ---------------------------------------------------------------------------------------------
300,000 SunGard Data Systems Inc.(a) 9,975,000
- ---------------------------------------------------------------------------------------------
38,500 Sykes Enterprises, Inc.(a) 1,366,750
- ---------------------------------------------------------------------------------------------
6,700 Synopsys, Inc.(a) 276,375
- ---------------------------------------------------------------------------------------------
31,300 Vantive Corp.(a) 1,134,625
- ---------------------------------------------------------------------------------------------
200,000 Veritas Software Corp.(a) 9,075,000
- ---------------------------------------------------------------------------------------------
175,000 Verity, Inc.(a) 6,015,625
- ---------------------------------------------------------------------------------------------
300,000 Viasoft, Inc.(a) 10,875,000
- ---------------------------------------------------------------------------------------------
37,800 Visio Corp.(a) 1,417,500
- ---------------------------------------------------------------------------------------------
350,000 Wind River Systems, Inc.(a) 13,650,000
- ---------------------------------------------------------------------------------------------
73,200 Workgroup Technology Corp.(a) 1,921,500
- ---------------------------------------------------------------------------------------------
349,600 Xylan Corp.(a) 22,396,250
- ---------------------------------------------------------------------------------------------
584,184,648
- ---------------------------------------------------------------------------------------------
COSMETICS & TOILETRIES-0.12%
101,800 Helen of Troy, Ltd.(a) 2,545,000
- ---------------------------------------------------------------------------------------------
34,500 Nature's Sunshine Products, Inc. 862,500
- ---------------------------------------------------------------------------------------------
3,407,500
- ---------------------------------------------------------------------------------------------
ELECTRONIC COMPONENTS/MISCELLANEOUS-4.64%
200,000 Ametek, Inc. 3,850,000
- ---------------------------------------------------------------------------------------------
200,000 Amphenol Corp.(a) 5,275,000
- ---------------------------------------------------------------------------------------------
240,000 ANADIGICS, Inc.(a) 7,095,000
- ---------------------------------------------------------------------------------------------
500,000 BMC Industries, Inc. 13,375,000
- ---------------------------------------------------------------------------------------------
400,000 California Amplifier Inc.(a) 14,200,000
- ---------------------------------------------------------------------------------------------
500,000 Computer Products, Inc.(a) 8,093,750
- ---------------------------------------------------------------------------------------------
135,000 Eltron International, Inc.(a) 3,881,250
- ---------------------------------------------------------------------------------------------
224,700 General Scanning, Inc.(a) 3,876,075
- ---------------------------------------------------------------------------------------------
220,000 Hadco Corp.(a) 6,682,500
- ---------------------------------------------------------------------------------------------
126,000 Harman International Industries, Inc. 5,953,500
- ---------------------------------------------------------------------------------------------
187,500 Methode Electronics, Inc. 3,140,625
- ---------------------------------------------------------------------------------------------
300,000 Perceptron, Inc.(a) 9,975,000
- ---------------------------------------------------------------------------------------------
143,300 PRI Automation, Inc.(a) 4,048,225
- ---------------------------------------------------------------------------------------------
98,700 Recoton Corp.(a) 1,875,300
- ---------------------------------------------------------------------------------------------
161,600 Silicon Storage Technology, Inc.(a) 2,868,400
- ---------------------------------------------------------------------------------------------
480,000 Sipex Corp.(a) 9,840,000
- ---------------------------------------------------------------------------------------------
300,000 Symbol Technologies, Inc.(a) 13,875,000
- ---------------------------------------------------------------------------------------------
500,000 Telxon Corp. 11,500,000
- ---------------------------------------------------------------------------------------------
160,000 ThermoQuest Corp.(a) 2,640,000
- ---------------------------------------------------------------------------------------------
132,044,625
- ---------------------------------------------------------------------------------------------
ELECTRONIC/PC DISTRIBUTORS-0.74%
500,000 Kent Electronics Corp.(a) 21,062,500
- ---------------------------------------------------------------------------------------------
FINANCE (ASSET MANAGEMENT)-0.14%
150,000 Imperial Credit Industries, Inc.(a) 3,900,000
- ---------------------------------------------------------------------------------------------
</TABLE>
9
<PAGE> 12
Financials
<TABLE>
<CAPTION>
SHARES MARKET VALUE
<S> <C> <C>
FINANCE (CONSUMER CREDIT)-4.47%
307,100 Aames Financial Corp. $ 13,550,787
- ---------------------------------------------------------------------------------------------
75,000 Cityscape Financial Corp.(a) 3,281,250
- ---------------------------------------------------------------------------------------------
150,000 CMAC Investment Corp. 8,400,000
- ---------------------------------------------------------------------------------------------
474,975 Concord EFS, Inc.(a) 15,911,662
- ---------------------------------------------------------------------------------------------
342,600 Credit Acceptance Corp.(a) 6,423,750
- ---------------------------------------------------------------------------------------------
475,000 Medaphis Corp.(a) 21,909,375
- ---------------------------------------------------------------------------------------------
716,600 Money Store Inc. (The) 18,094,150
- ---------------------------------------------------------------------------------------------
300,000 Olympic Financial Ltd.(a) 6,675,000
- ---------------------------------------------------------------------------------------------
300,000 PMT Services, Inc.(a) 8,662,500
- ---------------------------------------------------------------------------------------------
300,000 RAC Financial Group, Inc.(a) 9,262,500
- ---------------------------------------------------------------------------------------------
225,000 United Companies Financial Corp. 7,200,000
- ---------------------------------------------------------------------------------------------
40,500 WFS Financial, Inc.(a) 810,000
- ---------------------------------------------------------------------------------------------
704,800 World Acceptance Corp.(a) 6,959,900
- ---------------------------------------------------------------------------------------------
127,140,874
- ---------------------------------------------------------------------------------------------
FINANCE (SAVINGS & LOAN)-0.37%
300,000 TCF Financial Corp. 10,612,500
- ---------------------------------------------------------------------------------------------
FOOD/PROCESSING-0.83%
482,700 Performance Food Group Co.(a) 13,817,287
- ---------------------------------------------------------------------------------------------
300,000 Richfood Holdings, Inc. 9,787,500
- ---------------------------------------------------------------------------------------------
23,604,787
- ---------------------------------------------------------------------------------------------
FUNERAL SERVICES-0.40%
250,000 Stewart Enterprises Inc.-Class A 11,437,500
- ---------------------------------------------------------------------------------------------
FURNITURE-0.13%
125,000 Bush Industries, Inc. 3,781,250
- ---------------------------------------------------------------------------------------------
GAMING-0.13%
112,500 Grand Casinos, Inc.(a) 3,642,187
- ---------------------------------------------------------------------------------------------
HOME BUILDING-0.06%
71,700 American Homestar Corp.(a) 1,613,250
- ---------------------------------------------------------------------------------------------
HOTELS/MOTELS-0.24%
450,000 Prime Hospitality Corp.(a) 6,806,250
- ---------------------------------------------------------------------------------------------
INSURANCE (LIFE & HEALTH)-0.60%
205,000 American Travellers Corp.(a) 3,997,500
- ---------------------------------------------------------------------------------------------
200,000 Compdent Corp.(a) 8,850,000
- ---------------------------------------------------------------------------------------------
162,500 First Commonwealth, Inc.(a) 4,428,125
- ---------------------------------------------------------------------------------------------
17,275,625
- ---------------------------------------------------------------------------------------------
INSURANCE (MULTI-LINE PROPERTY)-0.69%
60,000 Allied Group, Inc. 2,152,500
- ---------------------------------------------------------------------------------------------
100,000 HCC Insurance Holdings, Inc.(a) 5,850,000
- ---------------------------------------------------------------------------------------------
150,000 United Dental Care, Inc.(a) 5,887,500
- ---------------------------------------------------------------------------------------------
178,500 Vesta Insurance Group, Inc. 5,734,312
- ---------------------------------------------------------------------------------------------
19,624,312
- ---------------------------------------------------------------------------------------------
</TABLE>
10
<PAGE> 13
Financials
<TABLE>
<CAPTION>
SHARES MARKET VALUE
<S> <C> <C>
LEISURE & RECREATION-1.05%
400,000 Cannondale Corp.(a) $ 8,900,000
- ---------------------------------------------------------------------------------------------
50,000 Coleman Co., Inc.(a) 2,293,750
- ---------------------------------------------------------------------------------------------
375,000 Moovies, Inc.(a) 4,500,000
- ---------------------------------------------------------------------------------------------
61,100 Morrow Snowboards, Inc.(a) 626,275
- ---------------------------------------------------------------------------------------------
247,700 West Marine, Inc.(a) 13,685,425
- ---------------------------------------------------------------------------------------------
30,005,450
- ---------------------------------------------------------------------------------------------
MACHINE TOOLS-0.24%
100,000 Applied Power, Inc.-Class A 3,137,500
- ---------------------------------------------------------------------------------------------
100,000 Kennametal Inc. 3,787,500
- ---------------------------------------------------------------------------------------------
6,925,000
- ---------------------------------------------------------------------------------------------
MACHINERY (HEAVY)-0.16%
200,000 Tractor Supply Co.(a) 4,600,000
- ---------------------------------------------------------------------------------------------
MEDICAL (DRUGS)-1.70%
100,000 Alpharma, Inc.-Class A 2,450,000
- ---------------------------------------------------------------------------------------------
79,500 Arbor Drugs, Inc. 1,609,875
- ---------------------------------------------------------------------------------------------
150,000 Biovail Corp. International(a) (Canada) 4,237,500
- ---------------------------------------------------------------------------------------------
225,000 Cardinal Health, Inc. 14,118,750
- ---------------------------------------------------------------------------------------------
33,300 Dura Pharmaceuticals, Inc.(a) 1,781,550
- ---------------------------------------------------------------------------------------------
150,000 Express Scripts, Inc.-Class A(a) 7,425,000
- ---------------------------------------------------------------------------------------------
100,000 Gulf South Medical Supply, Inc.(a) 4,050,000
- ---------------------------------------------------------------------------------------------
100,000 Parexel International Corp.(a) 4,925,000
- ---------------------------------------------------------------------------------------------
160,000 Watson Pharmaceuticals, Inc.(a) 7,600,000
- ---------------------------------------------------------------------------------------------
48,197,675
- ---------------------------------------------------------------------------------------------
MEDICAL (INSTRUMENTS/PRODUCTS)-4.22%
97,500 Advanced Technology Laboratories, Inc.(a) 3,168,750
- ---------------------------------------------------------------------------------------------
200,000 ArthroCare Corp.(a) 5,050,000
- ---------------------------------------------------------------------------------------------
47,115 Boston Scientific Corp.(a) 2,031,834
- ---------------------------------------------------------------------------------------------
250,000 CardioThoracic Systems, Inc.(a) 5,906,250
- ---------------------------------------------------------------------------------------------
200,000 CNS, Inc.(a) 3,950,000
- ---------------------------------------------------------------------------------------------
445,500 Conmed Corp.(a) 13,253,625
- ---------------------------------------------------------------------------------------------
300,000 Dentsply International, Inc. 12,525,000
- ---------------------------------------------------------------------------------------------
31,900 ESC Medical Systems Limited(a) (Israel) 1,403,600
- ---------------------------------------------------------------------------------------------
32,300 Heartport, Inc.(a) 1,154,725
- ---------------------------------------------------------------------------------------------
150,000 InControl, Inc.(a) 2,287,500
- ---------------------------------------------------------------------------------------------
200,000 Intelligent Medical Imaging, Inc.(a) 2,000,000
- ---------------------------------------------------------------------------------------------
300,000 IRIDEX Corp.(a) 4,500,000
- ---------------------------------------------------------------------------------------------
150,000 MiniMed, Inc.(a) 3,075,000
- ---------------------------------------------------------------------------------------------
185,000 National Dentex Corp.(a) 3,746,250
- ---------------------------------------------------------------------------------------------
123,800 Nellcor Puritan Bennett Inc.(a) 6,066,200
- ---------------------------------------------------------------------------------------------
90,000 Norland Medical Systems(a) 3,037,500
- ---------------------------------------------------------------------------------------------
135,000 OrthoLogic Corp.(a) 4,708,125
- ---------------------------------------------------------------------------------------------
400,000 Patterson Dental Co.(a) 12,100,000
- ---------------------------------------------------------------------------------------------
275,000 ResMed, Inc.(a) 3,437,500
- ---------------------------------------------------------------------------------------------
</TABLE>
11
<PAGE> 14
Financials
<TABLE>
<CAPTION>
SHARES MARKET VALUE
<S> <C> <C>
Medical (Instruments/Products)-continued
400,000 Sofamor Danek Group, Inc.(a) $ 13,100,000
- ---------------------------------------------------------------------------------------------
246,800 Target Therapeutics, Inc.(a) 13,388,900
- ---------------------------------------------------------------------------------------------
119,890,759
- ---------------------------------------------------------------------------------------------
MEDICAL (PATIENT SERVICES)-16.49%
250,000 ABR Information Systems, Inc.(a) 15,625,000
- ---------------------------------------------------------------------------------------------
224,900 American HomePatient, Inc.(a) 9,502,025
- ---------------------------------------------------------------------------------------------
400,000 American Medical Response, Inc.(a) 14,800,000
- ---------------------------------------------------------------------------------------------
101,000 American Oncology Resources, Inc.(a) 4,822,750
- ---------------------------------------------------------------------------------------------
400,000 Apria Healthcare Group, Inc.(a) 13,600,000
- ---------------------------------------------------------------------------------------------
450,000 Arbor Health Care Co.(a) 12,825,000
- ---------------------------------------------------------------------------------------------
300,000 Community Health Systems, Inc.(a) 13,012,500
- ---------------------------------------------------------------------------------------------
300,000 EmCare(a) 8,400,000
- ---------------------------------------------------------------------------------------------
250,000 Enterprise Systems, Inc.(a) 8,375,000
- ---------------------------------------------------------------------------------------------
350,000 Envoy Corp.(a) 10,106,250
- ---------------------------------------------------------------------------------------------
200,000 FPA Medical Management, Inc.(a) 3,325,000
- ---------------------------------------------------------------------------------------------
450,000 Genesis Health Ventures, Inc.(a) 13,331,250
- ---------------------------------------------------------------------------------------------
350,000 Health Care & Retirement Corp.(a) 12,906,250
- ---------------------------------------------------------------------------------------------
491,775 Health Management Associates, Inc.-Class A(a) 15,736,800
- ---------------------------------------------------------------------------------------------
500,000 Healthsource Inc.(a) 17,062,500
- ---------------------------------------------------------------------------------------------
525,530 HEALTHSOUTH Corp.(a) 19,510,301
- ---------------------------------------------------------------------------------------------
173,000 Hologic, Inc.(a) 5,103,500
- ---------------------------------------------------------------------------------------------
250,000 Home Health Corp. of America(a) 3,250,000
- ---------------------------------------------------------------------------------------------
280,000 Housecall Medical Resources, Inc.(a) 6,090,000
- ---------------------------------------------------------------------------------------------
425,000 Lincare Holdings, Inc.(a) 16,495,312
- ---------------------------------------------------------------------------------------------
300,000 Living Centers of America, Inc.(a) 11,100,000
- ---------------------------------------------------------------------------------------------
775,000 Matria Healthcare, Inc.(a) 5,909,375
- ---------------------------------------------------------------------------------------------
300,000 MedPartners/Mullikin, Inc.(a) 8,662,500
- ---------------------------------------------------------------------------------------------
250,000 Multicare Co., Inc.(a) 7,093,750
- ---------------------------------------------------------------------------------------------
100,000 Myriad Genetics, Inc.(a) 3,293,750
- ---------------------------------------------------------------------------------------------
28,300 National Surgery Centers, Inc.(a) 940,975
- ---------------------------------------------------------------------------------------------
275,000 NCS HealthCare, Inc.(a) 9,212,500
- ---------------------------------------------------------------------------------------------
287,200 OccuSystems, Inc.(a) 8,328,800
- ---------------------------------------------------------------------------------------------
250,000 Omnicare Inc. 15,000,000
- ---------------------------------------------------------------------------------------------
250,000 OrNda HealthCorp(a) 6,875,000
- ---------------------------------------------------------------------------------------------
450,000 Orthodontic Centers of America, Inc.(a) 17,775,000
- ---------------------------------------------------------------------------------------------
300,000 Oxford Health Plans, Inc.(a) 15,150,000
- ---------------------------------------------------------------------------------------------
150,000 Pediatric Services of America, Inc.(a) 3,787,500
- ---------------------------------------------------------------------------------------------
220,000 Pediatrix Medical Group, Inc.(a) 10,505,000
- ---------------------------------------------------------------------------------------------
125,000 PhyCor, Inc.(a) 6,156,250
- ---------------------------------------------------------------------------------------------
134,500 Physician Reliance Network, Inc.(a) 5,817,125
- ---------------------------------------------------------------------------------------------
303,200 Physicians Resource Group Inc.(a) 9,133,900
- ---------------------------------------------------------------------------------------------
200,000 Platinum Entertainment, Inc.(a) 2,475,000
- ---------------------------------------------------------------------------------------------
300,000 Quorum Health Group, Inc.(a) 7,612,500
- ---------------------------------------------------------------------------------------------
200,000 Renal Care Group, Inc.(a) 6,900,000
- ---------------------------------------------------------------------------------------------
450,000 Rotech Medical Corp.(a) 18,675,000
- ---------------------------------------------------------------------------------------------
175,000 Sierra Health Services, Inc.(a) 5,775,000
- ---------------------------------------------------------------------------------------------
</TABLE>
12
<PAGE> 15
Financials
<TABLE>
<CAPTION>
SHARES MARKET VALUE
<S> <C> <C>
Medical (Patient Services)-continued
100,000 Sterling Healthcare Group(a) $ 1,725,000
- ---------------------------------------------------------------------------------------------
175,000 Summit Care Corp.(a) 3,762,500
- ---------------------------------------------------------------------------------------------
600,000 Sybron Corp.(a) 15,150,000
- ---------------------------------------------------------------------------------------------
113,000 Total Renal Care Holdings, Inc.(a) 4,322,250
- ---------------------------------------------------------------------------------------------
1,400 Universal Health Services, Inc.(a) 77,700
- ---------------------------------------------------------------------------------------------
350,000 Vencor, Inc.(a) 11,812,500
- ---------------------------------------------------------------------------------------------
500,000 Veterinary Centers of America, Inc.(a) 15,250,000
- ---------------------------------------------------------------------------------------------
395,900 Vitalcom, Inc.(a) 6,631,325
- ---------------------------------------------------------------------------------------------
468,789,638
- ---------------------------------------------------------------------------------------------
METALS-0.17%
150,000 Oregon Metallurgical Corp.(a) 4,781,250
- ---------------------------------------------------------------------------------------------
OFFICE AUTOMATION-1.21%
221,400 Corporate Express Inc.(a) 8,274,825
- ---------------------------------------------------------------------------------------------
250,000 Danka Business Systems PLC-ADR (United Kingdom) 12,000,000
- ---------------------------------------------------------------------------------------------
282,300 In Focus Systems, Inc.(a) 14,256,150
- ---------------------------------------------------------------------------------------------
34,530,975
- ---------------------------------------------------------------------------------------------
OFFICE PRODUCTS-0.80%
389,400 BT Office Products International, Inc.(a) 6,765,825
- ---------------------------------------------------------------------------------------------
394,700 Daisytek International Corp.(a) 16,084,025
- ---------------------------------------------------------------------------------------------
22,849,850
- ---------------------------------------------------------------------------------------------
OIL & GAS (EXPLORATION & PRODUCTION)-0.04%
36,800 Belco Oil & Gas Corp.(a) 1,062,600
- ---------------------------------------------------------------------------------------------
OIL & GAS (SERVICES)-0.25%
100,000 Chesapeake Energy Corp.(a) 7,075,000
- ---------------------------------------------------------------------------------------------
POLLUTION CONTROL-1.40%
150,000 GTS Duratek, Inc.(a) 2,596,875
- ---------------------------------------------------------------------------------------------
300,000 Sanifill, Inc.(a) 13,012,500
- ---------------------------------------------------------------------------------------------
150,000 United Waste Systems, Inc.(a) 8,250,000
- ---------------------------------------------------------------------------------------------
300,000 US Filter Corp.(a) 9,225,000
- ---------------------------------------------------------------------------------------------
253,200 USA Waste Services, Inc.(a) 6,583,200
- ---------------------------------------------------------------------------------------------
39,667,575
- ---------------------------------------------------------------------------------------------
PUBLISHING-0.38%
103,600 Gartner Group, Inc.(a) 3,548,300
- ---------------------------------------------------------------------------------------------
300,000 World Color Press, Inc.(a) 7,200,000
- ---------------------------------------------------------------------------------------------
10,748,300
- ---------------------------------------------------------------------------------------------
RESTAURANTS-1.99%
499,962 Apple South, Inc. 12,999,012
- ---------------------------------------------------------------------------------------------
300,000 Daka International, Inc.(a) 9,112,500
- ---------------------------------------------------------------------------------------------
275,000 Landry's Seafood Restaurants, Inc.(a) 6,462,500
- ---------------------------------------------------------------------------------------------
175,000 Lone Star Steakhouse & Saloon, Inc.(a) 7,240,625
- ---------------------------------------------------------------------------------------------
290,000 Longhorn Steaks, Inc.(a) 7,866,250
- ---------------------------------------------------------------------------------------------
79,500 Papa John's International, Inc.(a) 3,920,343
- ---------------------------------------------------------------------------------------------
</TABLE>
13
<PAGE> 16
Financials
<TABLE>
<CAPTION>
SHARES MARKET VALUE
<S> <C> <C>
Restaurants-continued
137,200 Planet Hollywood International, Inc.(a) $ 3,481,450
- ---------------------------------------------------------------------------------------------
290,000 Sonic Corp.(a) 5,510,000
- ---------------------------------------------------------------------------------------------
56,592,680
- ---------------------------------------------------------------------------------------------
RETAIL (FOOD & DRUG)-0.08%
100,000 Casey's General Stores, Inc. 2,156,250
- ---------------------------------------------------------------------------------------------
RETAIL (STORES)-9.24%
82,200 Barnett, Inc.(a) 1,931,700
- ---------------------------------------------------------------------------------------------
150,000 Bed Bath & Beyond, Inc.(a) 8,859,375
- ---------------------------------------------------------------------------------------------
115,000 Blyth Industries, Inc.(a) 4,571,250
- ---------------------------------------------------------------------------------------------
170,000 CompUSA, Inc.(a) 5,886,250
- ---------------------------------------------------------------------------------------------
370,000 Creative Computers, Inc.(a) 3,006,250
- ---------------------------------------------------------------------------------------------
200,100 Duty Free International, Inc. 2,676,337
- ---------------------------------------------------------------------------------------------
300,000 Eastbay, Inc.(a) 4,500,000
- ---------------------------------------------------------------------------------------------
35,300 Gadzooks, Inc.(a) 1,782,650
- ---------------------------------------------------------------------------------------------
260,000 Garden Ridge Corp.(a) 14,430,000
- ---------------------------------------------------------------------------------------------
325,000 Global DirectMail Corp.(a) 12,756,250
- ---------------------------------------------------------------------------------------------
150,000 Gymboree Corp.(a) 3,881,250
- ---------------------------------------------------------------------------------------------
175,000 Heilig-Meyers Co. 3,609,375
- ---------------------------------------------------------------------------------------------
275,000 Just for Feet Inc.(a) 13,165,625
- ---------------------------------------------------------------------------------------------
450,000 Men's Wearhouse, Inc. (The)(a) 16,650,000
- ---------------------------------------------------------------------------------------------
135,100 Meyer (Fred), Inc.(a) 3,884,125
- ---------------------------------------------------------------------------------------------
343,600 Micro Wearhouse, Inc.(a) 14,774,800
- ---------------------------------------------------------------------------------------------
85,400 Mossimo, Inc.(a) 3,245,200
- ---------------------------------------------------------------------------------------------
115,000 Movie Gallery Inc.(a) 3,507,500
- ---------------------------------------------------------------------------------------------
246,900 MSC Industrial Direct Co., Inc.(a) 8,980,987
- ---------------------------------------------------------------------------------------------
200,000 O'Reilly Automotive, Inc.(a) 7,850,000
- ---------------------------------------------------------------------------------------------
200,000 Oakley, Inc.(a) 9,200,000
- ---------------------------------------------------------------------------------------------
427,500 Petco Animal Supplies, Inc.(a) 12,290,625
- ---------------------------------------------------------------------------------------------
425,000 Rexall Sundown, Inc.(a) 12,112,500
- ---------------------------------------------------------------------------------------------
600,000 Sport's Authority, Inc. (The)(a) 17,850,000
- ---------------------------------------------------------------------------------------------
250,000 Starbucks Corp.(a) 6,781,250
- ---------------------------------------------------------------------------------------------
600,000 Sunglass Hut International, Inc.(a) 17,550,000
- ---------------------------------------------------------------------------------------------
800,000 Tech Data Corp.(a) 15,600,000
- ---------------------------------------------------------------------------------------------
96,700 Thompson PBE, Inc.(a) 979,087
- ---------------------------------------------------------------------------------------------
500,000 U.S. Office Products Co.(a) 18,000,000
- ---------------------------------------------------------------------------------------------
400,000 Wilmar Industries, Inc.(a) 9,500,000
- ---------------------------------------------------------------------------------------------
150,000 Zale Corp.(a) 2,793,750
- ---------------------------------------------------------------------------------------------
262,606,136
- ---------------------------------------------------------------------------------------------
SCIENTIFIC INSTRUMENTS-0.49%
400,000 Input/Output, Inc.(a) 13,900,000
- ---------------------------------------------------------------------------------------------
SEMICONDUCTORS-2.69%
148,300 Atmel Corp.(a) 5,932,000
- ---------------------------------------------------------------------------------------------
265,000 Elantec Semiconductor, Inc.(a) 3,511,250
- ---------------------------------------------------------------------------------------------
350,000 International Rectifier Corp.(a) 7,875,000
- ---------------------------------------------------------------------------------------------
395,900 MEMC Electronic Materials, Inc.(a) 19,745,512
- ---------------------------------------------------------------------------------------------
</TABLE>
14
<PAGE> 17
Financials
<TABLE>
<CAPTION>
SHARES MARKET VALUE
<S> <C> <C>
Semiconductors-continued
250,000 Sanmina Corp.(a) $ 8,875,000
- ---------------------------------------------------------------------------------------------
350,000 SCI Systems, Inc.(a) 15,006,250
- ---------------------------------------------------------------------------------------------
41,900 SDL, Inc.(a) 1,707,425
- ---------------------------------------------------------------------------------------------
100,000 Sierra Semiconductor Corp.(a) 1,637,500
- ---------------------------------------------------------------------------------------------
23,100 Tower Semiconductor Ltd.(a) (Israel) 369,600
- ---------------------------------------------------------------------------------------------
400,000 Vitesse Semiconductor Corp.(a) 11,950,000
- ---------------------------------------------------------------------------------------------
76,609,537
- ---------------------------------------------------------------------------------------------
SHOES & RELATED APPAREL-0.27%
250,000 Wolverine World Wide, Inc. 7,718,750
- ---------------------------------------------------------------------------------------------
TELECOMMUNICATIONS-5.97%
140,000 ADC Telecommunications, Inc.(a) 5,880,000
- ---------------------------------------------------------------------------------------------
450,000 Andrew Corp.(a) 21,600,000
- ---------------------------------------------------------------------------------------------
225,000 Aspect Telecommunications Corp.(a) 12,937,500
- ---------------------------------------------------------------------------------------------
499,950 Brightpoint, Inc.(a) 11,748,825
- ---------------------------------------------------------------------------------------------
200,000 Glenayre Technologies, Inc.(a) 9,300,000
- ---------------------------------------------------------------------------------------------
300,000 LCI International, Inc.(a) 7,800,000
- ---------------------------------------------------------------------------------------------
300,000 Nera AS -ADR (Norway) 11,025,000
- ---------------------------------------------------------------------------------------------
213,500 Octel Communications Corp.(a) 9,554,125
- ---------------------------------------------------------------------------------------------
200,000 Periphonics Corp.(a) 4,500,000
- ---------------------------------------------------------------------------------------------
209,700 Premiere Technologies, Inc.(a) 7,916,175
- ---------------------------------------------------------------------------------------------
270,000 Premisys Communications, Inc.(a) 11,812,500
- ---------------------------------------------------------------------------------------------
120,400 Proxim, Inc.(a) 3,356,150
- ---------------------------------------------------------------------------------------------
100,000 Tellabs, Inc.(a) 5,525,000
- ---------------------------------------------------------------------------------------------
300,000 Teltrend, Inc.(a) 14,812,500
- ---------------------------------------------------------------------------------------------
300,000 TESSCO Technologies, Inc.(a) 9,000,000
- ---------------------------------------------------------------------------------------------
200,000 Transaction Network Services, Inc.(a) 7,700,000
- ---------------------------------------------------------------------------------------------
37,500 TransPro, Inc.(a) 276,562
- ---------------------------------------------------------------------------------------------
350,000 U.S. Long Distance Corp.(a) 9,012,500
- ---------------------------------------------------------------------------------------------
175,000 United States Satellite Broadcasting Co., Inc.(a) 5,993,750
- ---------------------------------------------------------------------------------------------
169,750,587
- ---------------------------------------------------------------------------------------------
TEXTILES-1.31%
225,000 Nautica Enterprises, Inc.(a) 10,462,500
- ---------------------------------------------------------------------------------------------
212,100 Quicksilver, Inc.(a) 8,059,800
- ---------------------------------------------------------------------------------------------
125,000 St. John's Knits, Inc. 7,421,875
- ---------------------------------------------------------------------------------------------
250,000 Tommy Hilfiger Corp.(a) 11,375,000
- ---------------------------------------------------------------------------------------------
37,319,175
- ---------------------------------------------------------------------------------------------
TRANSPORTATION-0.41%
400,000 Hub Group, Inc.(a) 9,300,000
- ---------------------------------------------------------------------------------------------
78,700 Rural/Metro Corp.(a) 2,331,487
- ---------------------------------------------------------------------------------------------
11,631,487
- ---------------------------------------------------------------------------------------------
Total Common Stocks 2,771,771,804
- ---------------------------------------------------------------------------------------------
</TABLE>
15
<PAGE> 18
Financials
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MARKET VALUE
<S> <C> <C>
REPURCHASE AGREEMENT-2.74%(b)
$77,907,198 Daiwa Securities America Inc., 5.34%, 05/01/96(c) $ 77,907,198
- ---------------------------------------------------------------------------------------------
TOTAL INVESTMENT SECURITIES-100.23% 2,849,679,002
- ---------------------------------------------------------------------------------------------
OTHER ASSETS LESS LIABILITIES-(0.23)% (6,494,706)
- ---------------------------------------------------------------------------------------------
NET ASSETS-100.00% $2,843,184,296
=============================================================================================
</TABLE>
Abbreviations:
ADR -- American Depository Receipt
NOTES TO SCHEDULE OF INVESTMENTS:
(a) Non-income producing security.
(b) Collateral on repurchase agreements, including the Fund's pro-rata interest
in joint repurchase agreements, is taken into possession by the Fund upon
entering into the repurchase agreement. The collateral is marked to market
daily to ensure its market value as being 102 percent of the sales price of
the repurchase agreement. The investments in some repurchase agreements are
through participation in joint accounts with other mutual funds, private
accounts and certain non-registered investment companies managed by the
investment advisor or its affiliates.
(c) Joint repurchase agreement entered into 04/30/96 with a maturing value of
$767,124,680. Collateralized by $737,151,000 U.S. Treasury obligations, 0%
to 11.25% due 05/15/96 to 02/15/21.
See Notes to Financial Statements.
16
<PAGE> 19
Financials
SCHEDULE OF ASSETS AND LIABILITIES
April 30, 1996
(Unaudited)
<TABLE>
<S> <C>
ASSETS:
Investments, at market value (cost $1,895,471,976) $2,849,679,002
- -----------------------------------------------------------------------------------------
Foreign currencies, at market value (cost $1,885) 1,896
- -----------------------------------------------------------------------------------------
Receivables for:
Investments sold 6,001,472
- -----------------------------------------------------------------------------------------
Capital stock sold 16,446,731
- -----------------------------------------------------------------------------------------
Dividends and interest 105,562
- -----------------------------------------------------------------------------------------
Investment for deferred compensation plan 16,268
- -----------------------------------------------------------------------------------------
Other assets 342,056
- -----------------------------------------------------------------------------------------
Total assets 2,872,592,987
- -----------------------------------------------------------------------------------------
LIABILITIES:
Payables for:
Investments purchased 21,703,686
- -----------------------------------------------------------------------------------------
Capital stock reacquired 4,857,056
- -----------------------------------------------------------------------------------------
Deferred compensation 16,268
- -----------------------------------------------------------------------------------------
Accrued advisory fees 1,372,471
- -----------------------------------------------------------------------------------------
Accrued administrative service fees 7,713
- -----------------------------------------------------------------------------------------
Accrued distribution fees 867,691
- -----------------------------------------------------------------------------------------
Accrued directors fees 6,501
- -----------------------------------------------------------------------------------------
Accrued transfer agent fees 315,235
- -----------------------------------------------------------------------------------------
Accrued operating expenses 262,070
- -----------------------------------------------------------------------------------------
Total liabilities 29,408,691
- -----------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO SHARES OUTSTANDING $2,843,184,296
=========================================================================================
Capital stock, $.001 par value per share:
Authorized 750,000,000
- -----------------------------------------------------------------------------------------
Outstanding 59,605,426
=========================================================================================
NET ASSET VALUE AND REDEMPTION PRICE PER SHARE $ 47.70
=========================================================================================
OFFERING PRICE PER SHARE:
(Net asset value of $47.70 divided by 94.50%) $ 50.48
=========================================================================================
</TABLE>
See Notes to Financial Statements.
17
<PAGE> 20
Financials
STATEMENT OF OPERATIONS
For the six months ended April 30, 1996
(Unaudited)
<TABLE>
<S> <C>
INVESTMENT INCOME:
Interest $ 3,736,497
- ----------------------------------------------------------------------------------------
Dividends 892,576
- ----------------------------------------------------------------------------------------
Total investment income 4,629,073
- ----------------------------------------------------------------------------------------
EXPENSES:
Advisory fees 7,451,196
- ----------------------------------------------------------------------------------------
Custodian fees 106,993
- ----------------------------------------------------------------------------------------
Directors' fees 10,457
- ----------------------------------------------------------------------------------------
Distribution fees 2,928,351
- ----------------------------------------------------------------------------------------
Administrative services fees 47,975
- ----------------------------------------------------------------------------------------
Transfer agent fees 1,967,238
- ----------------------------------------------------------------------------------------
Other 586,722
- ----------------------------------------------------------------------------------------
Total expenses 13,098,932
- ----------------------------------------------------------------------------------------
Net investment income (loss) (8,469,859)
- ----------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENT SECURITIES, FUTURES
CONTRACTS AND FOREIGN CURRENCIES:
Net realized gain (loss) on sales of:
Investment securities (9,510,445)
- ----------------------------------------------------------------------------------------
Futures contracts 17,081,337
- ----------------------------------------------------------------------------------------
Foreign currencies --
- ----------------------------------------------------------------------------------------
7,570,892
- ----------------------------------------------------------------------------------------
Unrealized appreciation of:
Investment securities 514,065,747
- ----------------------------------------------------------------------------------------
Futures contracts (7,624,500)
- ----------------------------------------------------------------------------------------
Foreign currencies (31)
- ----------------------------------------------------------------------------------------
506,441,216
- ----------------------------------------------------------------------------------------
Net gain on investment securities, futures contracts and foreign
currencies 514,012,108
- ----------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $505,542,249
========================================================================================
</TABLE>
See Notes to Financial Statements.
18
<PAGE> 21
Financials
STATEMENT OF CHANGES IN NET ASSETS
For the six months ended April 30, 1996 and the year ended October 31, 1995
(Unaudited)
<TABLE>
<CAPTION>
APRIL 30, OCTOBER 31,
1996 1995
-------------- --------------
<S> <C> <C>
OPERATIONS:
Net investment income (loss) $ (8,469,859) $ (2,318,274)
- ----------------------------------------------------------------------------------------------
Net realized gain on sales of investment securities,
futures contracts and foreign currencies 7,570,892 52,290,438
- ----------------------------------------------------------------------------------------------
Net unrealized appreciation of investment securities,
futures contracts and foreign currencies 506,441,216 314,756,271
- ----------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 505,542,249 364,728,435
- ----------------------------------------------------------------------------------------------
Distributions to shareholders from net realized gains on
investment securities (54,512,342) --
- ----------------------------------------------------------------------------------------------
Net increase from capital stock transactions 146,600,459 1,193,587,768
- ----------------------------------------------------------------------------------------------
Net increase in net assets 597,630,366 1,558,316,203
- ----------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 2,245,553,930 687,237,727
- ----------------------------------------------------------------------------------------------
End of period $2,843,184,296 $2,245,553,930
- ----------------------------------------------------------------------------------------------
NET ASSETS CONSIST OF:
Capital (par value and additional paid-in) $1,895,390,697 $1,748,790,238
- ----------------------------------------------------------------------------------------------
Undistributed net investment income (loss) (8,486,573) (16,714)
- ----------------------------------------------------------------------------------------------
Undistributed net realized gain (loss) on sales of
investment securities and foreign currencies 2,073,135 49,014,585
- ----------------------------------------------------------------------------------------------
Unrealized appreciation of investment securities and
foreign currencies 954,207,037 447,765,821
- ----------------------------------------------------------------------------------------------
$2,843,184,296 $2,245,553,930
==============================================================================================
</TABLE>
See Notes to Financial Statements.
19
<PAGE> 22
Financials
NOTES TO FINANCIAL STATEMENTS
April 30, 1996
(Unaudited)
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES
AIM Aggressive Growth Fund (the "Fund") is a series portfolio of AIM Equity
Funds, Inc. (the "Company"). The Company is a Maryland corporation registered
under the Investment Company Act of 1940, as amended (the "1940 Act"), as an
open-end series management investment company consisting of four operating
diversified portfolios: AIM Aggressive Growth Fund, AIM Weingarten Fund, AIM
Charter Fund and AIM Constellation Fund. The Fund has temporarily discontinued
public sales of its shares to new investors. The Fund is a diversified portfolio
which seeks to achieve long-term growth of capital by investing primarily in
common stocks, convertible bonds, convertible preferred stocks and warrants of
companies which in the opinion of the Fund's investment advisor are expected to
achieve earnings growth over time at a rate in excess of 15% per year. Matters
affecting each portfolio or class will be voted on exclusively by the
shareholders of such portfolio or class. The assets, liabilities and operations
of each portfolio are accounted for separately.
Information presented in these financial statements pertains only to the Fund.
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenses during
the reporting period. Actual results could differ from those estimates. The
following is a summary of the significant accounting policies followed by the
Fund in the preparation of its financial statements.
A. Security Valuations--A security listed or traded on an exchange is valued at
its last 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 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 or are questionable 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. Securities Transactions, Investment Income and Distributions--Securities
transactions are recorded on a trade date basis. Realized gains or losses on
sales are computed on the basis of specific identification of the securities
sold. Interest income is recorded as earned from settlement date and is
recorded on the accrual basis. Dividend income and distributions to
shareholders are recorded on the ex-dividend date.
C. Federal Income Taxes--The Fund intends to comply with the requirements of the
Internal Revenue Code necessary to qualify as a regulated investment company
and, as such, will not be subject to federal income taxes on otherwise
taxable income (including net realized capital gains) which is distributed to
shareholders. Therefore, no provision for federal income taxes is recorded in
the financial statements.
D. Stock Index Futures Contracts--The Fund may purchase or sell stock index
stock index futures contracts as a hedge against changes in market
conditions. Initial margin deposits required upon entering into futures
contracts are satisfied by the segregation of specific securities as
collateral for the account of the broker (the Fund's agent in acquiring the
futures position). During the period the futures contracts are open, changes
in
20
<PAGE> 23
Financials
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES-continued
the value of the contracts are recognized as unrealized gains or losses by
"marking to market" on a daily basis to reflect the market value of the
contracts at the end of each day's trading. Variation margin payments are
made or received depending upon whether unrealized gains or losses are
incurred. When the contracts are closed, the Fund recognizes a realized gain
or loss equal to the difference between the proceeds from, or cost of, the
closing transaction and the Fund's basis in the contract. Risks include the
possibility of an illiquid market and that a change in the value of contracts
may not correlate with changes in the value of the securities being hedged.
E. Foreign Currency Transactions--Portfolio securities and other assets and
liabilities denominated in foreign currencies are translated into U.S. dollar
amounts at date of valuation. Purchases and sales of portfolio securities and
income items denominated in foreign currencies are translated into U.S.
dollar amounts on the respective dates of such transactions.
F. Foreign Currency Contracts--A forward currency contract is an obligation to
purchase or sell a specific currency for an agreed-upon price at a future
date. The Fund may enter into a forward contract for the purchase or sale of
a security denominated in a foreign currency in order to "lock in" the U.S.
dollar price of that security. The Fund could be exposed to risk if
counterparties to the contracts are unable to meet the terms of their
contracts.
NOTE 2-ADVISORY FEES AND OTHER TRANSACTIONS WITH AFFILIATES
The Company has entered into a master investment advisory agreement with A I M
Advisors, Inc. ("AIM"). Under the terms of the master investment advisory
agreement, the Fund pays an advisory fee to AIM at the annual rate of 0.80% of
the first $150 million of the Fund's average daily net assets, plus 0.625% of
the fund's average daily net assets in excess of $150 million. This agreement
requires AIM to reduce its fees or, if necessary, make payments to the Fund to
the extent required to satisfy any expense limitations imposed by the securities
laws or regulations thereunder of any state in which the Fund's shares are
qualified for sale.
The 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 six months ended April 30, 1996, AIM
was reimbursed $47,975 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 Fund. During the six months ended April 30,
1996, AFS was paid $1,012,278 for such services.
The Company has entered into a master distribution agreement with A I M
Distributors, Inc. ("AIM Distributors") to serve as the distributor for the
Fund. The Company has adopted a plan pursuant to rule 12b-1 under the 1940 Act
(the "Plan"), whereby the Fund pays to AIM Distributors an annual rate of 0.25%
of the Fund's average daily net assets as compensation for services related to
the sales and distribution of the Fund's shares. The Plan provides that payments
to dealers and financial institutions that provide continuing personal
shareholder services to their customers who purchase and own shares of the Fund,
in amounts of up to 0.25% of the average net assets of the Fund attributable to
the customers of such dealers or financial institutions, may be characterized as
a service fee. Any amounts not paid as a service fee under the Plan would
constitute an assets-based sales charge. The Plan also imposes a cap on the
total amount of sales charges, including asset-based sales charges, that may be
paid by the Company with respect to the Fund's shares. During the six months
ended April 30, 1996, the Fund paid AIM Distributors $2,928,351 as compensation
under the Plan.
AIM Distributors received commissions of $914,309 from sales of shares of the
Fund's capital stock during the six months ended April 30, 1996. Such
commissions are not an expense of the Fund. They are deducted from, and are not
included in, the proceeds from sales of capital stock. Certain officers and
directors of the Company are officers and directors of AIM, AFS and AIM
Distributors.
During the six months ended April 30, 1996, the Fund paid legal fees of $7,871
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.
21
<PAGE> 24
Financials
NOTE 3-AFFILIATED COMPANY TRANSACTIONS
Affiliated issuers, as defined in the 1940 Act, are issuers in which the Fund
held 5% or more of the outstanding voting securities. A summary of transactions
for each issuer who is or was an affiliate at or during the six months ended
April 30, 1996, were as follows:
<TABLE>
<CAPTION>
SHARE
BALANCE REALIZED SHARE BALANCE MARKET VALUE
OCTOBER 31, PURCHASES SALES GAIN DIVIDEND APRIL 30, APRIL 30,
NAME OF ISSUER: 1995 COST COST (LOSS) INCOME 1996 1996
<S> <C> <C> <C> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------
Applied Microsystems
Corp. 400,000 $ 4,012,391 $ -- $ -- -- 400,000 $ 5,400,000
- -------------------------------------------------------------------------------------------------------------
Arbor Health Care Co. 390,000 1,297,500 -- -- -- 450,000 12,825,000
- -------------------------------------------------------------------------------------------------------------
Barrett Business
Services, Inc. 400,000 6,381,503 -- -- -- 400,000 7,000,000
- -------------------------------------------------------------------------------------------------------------
Brightpoint, Inc. 406,250 1,664,922 -- -- -- 499,950 11,748,825
- -------------------------------------------------------------------------------------------------------------
Brite Voice Systems,
Inc. 680,400 10,270,526 -- -- -- 680,400 13,097,700
- -------------------------------------------------------------------------------------------------------------
Cannondale Corp. 400,000 -- -- -- -- 400,000 8,900,000
- -------------------------------------------------------------------------------------------------------------
CFI Proservices, Inc. -- 4,006,780 -- -- -- 250,000 6,625,000
- -------------------------------------------------------------------------------------------------------------
Creative Computers,
Inc. 300,000 3,700,420 3,007,188 (2,159,283) -- 370,000 3,006,250
- -------------------------------------------------------------------------------------------------------------
Daisytek International
Corp. -- 11,095,511 -- -- -- 394,700 16,084,025
- -------------------------------------------------------------------------------------------------------------
Daka International,
Inc. 300,000 -- -- -- -- 300,000 9,112,500
- -------------------------------------------------------------------------------------------------------------
Eastbay, Inc. 204,200 1,544,775 -- -- -- 300,000 4,500,000
- -------------------------------------------------------------------------------------------------------------
Engineering Animation,
Inc. -- 7,486,913 -- -- -- 310,100 7,209,825
- -------------------------------------------------------------------------------------------------------------
General Acceptance
Corp. 153,800 -- 3,547,890 (598,878) -- -- --
- -------------------------------------------------------------------------------------------------------------
General Scanning, Inc. 224,700 -- -- -- -- 224,700 3,876,075
- -------------------------------------------------------------------------------------------------------------
Hub Group, Inc. -- 5,741,024 -- -- -- 400,000 9,300,000
- -------------------------------------------------------------------------------------------------------------
IRIDEX Corp. -- 2,983,356 -- -- -- 300,000 4,500,000
- -------------------------------------------------------------------------------------------------------------
META Group, Inc. -- 6,946,035 -- -- -- 290,000 8,627,500
- -------------------------------------------------------------------------------------------------------------
National Dentex Corp. -- 4,229,375 -- -- -- 185,000 3,746,250
- -------------------------------------------------------------------------------------------------------------
NCS HealthCare, Inc. -- 5,872,089 -- -- -- 275,000 9,212,500
- -------------------------------------------------------------------------------------------------------------
Orcad, Inc. -- 3,844,024 -- -- -- 320,000 4,280,000
- -------------------------------------------------------------------------------------------------------------
Paradigm Technology,
Inc. 350,000 -- 10,111,543 (5,090,493) -- -- --
- -------------------------------------------------------------------------------------------------------------
Performance Food Group
Co. 150,000 8,184,421 -- -- -- 482,700 13,817,288
- -------------------------------------------------------------------------------------------------------------
Segue Software, Inc. -- 8,795,827 -- -- -- 400,000 11,800,000
- -------------------------------------------------------------------------------------------------------------
Sipex Corp. -- 5,086,323 -- -- -- 480,000 9,840,000
- -------------------------------------------------------------------------------------------------------------
Sofitdesk, Inc. 290,000 -- 5,073,922 (1,398,452) -- -- --
- -------------------------------------------------------------------------------------------------------------
TESSCO Technologies,
Inc. 175,000 3,256,454 -- -- -- 300,000 9,000,000
- -------------------------------------------------------------------------------------------------------------
Tylan General, Inc. 350,000 -- 3,553,875 413,893 -- -- --
- -------------------------------------------------------------------------------------------------------------
Vitalcom, Inc. -- 5,563,952 -- -- -- 395,900 6,631,325
=============================================================================================================
</TABLE>
NOTE 4-BANK BORROWINGS
The Fund has a $14,900,000 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. During the six months ended April 30, 1996, the Fund did not borrow under
the line of credit agreement. 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.
22
<PAGE> 25
Financials
NOTE 5-INVESTMENT SECURITIES
The aggregate amount of investment securities (other than short-term securities)
purchased and sold during the six months ended April 30, 1996 were
$1,066,467,667 and $771,936,996, respectively.
The amount of unrealized appreciation (depreciation) of investment
securities as of April 30, 1996 is as follows:
<TABLE>
<S> <C>
Aggregate unrealized appreciation of investment securities $983,650,490
- ----------------------------------------------------------------------------------------
Aggregate unrealized (depreciation) of investment securities (29,446,608)
- ----------------------------------------------------------------------------------------
Net unrealized appreciation of investment securities $954,203,882
========================================================================================
Cost of investment for tax purposes is $1,895,475,120.
</TABLE>
NOTE 6-DIRECTORS' FEES
Directors' fees represent remuneration paid or accrued to each director who is
not an "interested person" of AIM. The Company may invest directors' fees, if so
elected by a director, in mutual fund shares in accordance with a deferred
compensation plan.
NOTE 7-CAPITAL STOCK
Changes in capital stock outstanding during the six months ended April 30, 1996
and the year ended October 31, 1995 were as follows:
<TABLE>
<CAPTION>
APRIL 30, 1996 OCTOBER 31, 1995
---------------------------- -----------------------------
SHARES AMOUNT SHARES AMOUNT
----------- ------------- ----------- --------------
<S> <C> <C> <C> <C>
Sold 13,426,773 $ 545,209,794 53,971,580 $1,912,251,434
- ----------------------------------------------------------------------------------------------------
Issued as reinvestment of dividends 1,291,037 49,898,506 -- --
- ----------------------------------------------------------------------------------------------------
Reacquired (11,076,290) (448,507,841) (22,228,120) (718,663,666)
- ----------------------------------------------------------------------------------------------------
3,641,520 $ 146,600,459 31,743,460 $1,193,587,768
====================================================================================================
</TABLE>
23
<PAGE> 26
Financials
NOTE 8-FINANCIAL HIGHLIGHTS
Shown below are the condensed financial highlights for a share of capital stock
outstanding during the six months ended April 30, 1996, each of the years in the
two-year period ended October 31, 1995, the ten month period ended October 31,
1993 and each of the years in the six-year period ended December 31, 1992.
<TABLE>
<CAPTION>
OCTOBER 31, DECEMBER 31,
APRIL 30, -------------------------------------- --------------------------------
1996 1995 1994 1993 1992(a) 1991 1990
---------- ---------- -------- -------- ------- ------- ------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period $ 40.13 $ 28.37 $ 23.85 $ 18.52 $ 16.06 $ 11.85 $13.30
- ------------------------- ---------- ---------- -------- -------- ------- ------- ------
Income from investment
operations:
Net investment income
(loss) (0.14) (0.04) (0.05) (0.02) (0.03) (0.04) 0.08
- ------------------------- ---------- ---------- -------- -------- ------- ------- ------
Net gains (losses) on
securities (both
realized and
unrealized) 8.68 11.80 4.57 5.35 3.41 7.29 (0.95)
- ------------------------- ---------- ---------- -------- -------- ------- ------- ------
Total from
investment
operations 8.54 11.76 4.52 5.33 3.38 7.25 (0.87)
- ------------------------- ---------- ---------- -------- -------- ------- ------- ------
Less distributions:
Dividends from net
investment income -- -- -- -- -- -- (0.09)
- ------------------------- ---------- ---------- -------- -------- ------- ------- ------
Distributions from
capital gains (0.97) -- -- -- (0.92) (3.04) (0.49)
- ------------------------- ---------- ---------- -------- -------- ------- ------- ------
Total
distributions (0.97) -- -- -- (0.92) (3.04) (0.58)
- ------------------------- ---------- ---------- -------- -------- ------- ------- ------
Net asset value, end of
period $ 47.70 $ 40.13 $ 28.37 $ 23.85 $ 18.52 $ 16.06 $11.85
========================= ========== ========== ======== ======== ======= ======= ======
Total return(b) 21.85% 41.45% 18.96% 28.78% 21.34% 63.90% (6.50)%
========================= ========== ========== ======== ======== ======= ======= ======
Ratio/supplemental data:
Net assets, end of period
(000s omitted) $2,843,184 $2,245,554 $687,238 $217,256 $38,238 $16,218 $9,234
========================= ========== ========== ======== ======== ======= ======= ======
Ratio of expenses to
average net assets(c) 1.12%(e) 1.08% 1.07% 1.00%(f) 1.25% 1.25% 1.25%
========================= ========== ========== ======== ======== ======= ======= ======
Ratio of net investment
income (loss) to
average net assets(d) (0.72)%(e) (0.19)% (0.26)% (0.24)%(f) (0.59)% (0.31)% 0.62%
========================= ========== ========== ======== ======== ======= ======= ======
Portfolio turnover rate 25% 52% 75% 61% 164% 165% 137%
========================= ========== ========== ======== ======== ======= ======= ======
<CAPTION>
DECEMBER 31,
---------------------------------
1989 1988 1987
------- ------- -------
<S> <C> <C> <C>
Net asset value,
beginning of period $ 11.07 $ 9.86 $ 12.10
- ------------------------- ------- ------- --------
Income from investment
operations:
Net investment income
(loss) 0.03 0.05 --
- ------------------------- ------- ------- --------
Net gains (losses) on
securities (both
realized and
unrealized) 2.28 1.21 (1.38)
- ------------------------- ------- ------- --------
Total from
investment
operations 2.31 1.26 (1.38)
- ------------------------- ------- ------- --------
Less distributions:
Dividends from net
investment income (0.03) (0.05) --
- ------------------------- ------- ------- --------
Distributions from
capital gains (0.05) -- (0.86)
- ------------------------- ------- ------- --------
Total
distributions (0.08) (0.05) (0.86)
- ------------------------- ------- ------- --------
Net asset value, end of
period $ 13.30 $ 11.07 $ 9.86
========================= ======= ======= =======
Total return(b) 20.89% 12.77% (11.52)%
========================= ======= ======= =======
Ratio/supplemental data:
Net assets, end of period
(000s omitted) $11,712 $12,793 $13,991
========================= ======= ======= =======
Ratio of expenses to
average net assets(c) 1.25% 1.22% 1.20%
========================= ======= ======= =======
Ratio of net investment
income (loss) to
average net assets(d) 0.24% 0.38% 0.01%
========================= ======= ======= =======
Portfolio turnover rate 69% 56% 118%
========================= ======= ======= =======
</TABLE>
(a) The Fund changed investment advisors on June 30, 1992.
(b) Does not deduct sales charges and for periods less than one year, total
returns are not annualized.
(c) Ratios of expenses to average net assets prior to reduction of advisory fees
and expense reimbursements were 1.15%, 1.09%, 1.17% (annualized), 1.65%,
1.83%, 1.99%, 1.80%, 1.56% and 1.29% for 1995-87, respectively.
(d) Ratios of net investment income (loss) to average net assets prior to
reduction of advisory fees and expense reimbursements were (0.26)%, (0.28)%,
(0.41)% (annualized), (0.99)%, (0.89)%, (0.11)%, (0.31)%, 0.04% and (0.08)%
for 1995-87, respectively.
(e) Ratios are annualized and based on average net assets of $2,359,897,444.
(f) Annualized.
24
<PAGE> 27
Directors &
Officers
<TABLE>
<CAPTION>
<S> <C> <C>
BOARD OF DIRECTORS OFFICERS OFFICE OF THE FUND
11 Greenway Plaza
Charles T. Bauer Charles T. Bauer Suite 1919
Chairman and Chief Executive Officer Chairman Houston, TX 77046
A I M Management Group Inc.
Robert H. Graham
Bruce L. Crockett President INVESTMENT ADVISOR
Director, President, and Chief A I M Advisors, Inc.
Executive Officer John J. Arthur 11 Greenway Plaza
COMSAT Corporation Senior Vice President and Treasurer Suite 1919
Houston, TX 77046
Owen Daly II Gary T. Crum
Director Senior Vice President
Cortland Trust Inc. TRANSFER AGENT
Scott G. Lucas A I M Fund Services, Inc.
Carl Frischling Senior Vice President P.O. Box 4739
Partner Houston, TX 77210-4739
Kramer, Levin, Naftalis, Nessen, Carol F. Relihan
Kamin & Frankel Senior Vice President and Secretary
CUSTODIAN
Robert H. Graham Jonathan C. Schoolar State Street Bank & Trust Company
President and Chief Operating Officer Senior Vice President 225 Franklin Street
A I M Management Group Inc. Boston, MA 02110
Melville B. Cox
John F. Kroeger Vice President
Formerly, Consultant COUNSEL TO THE FUND
Wendell & Stockel Associates, Inc. Dana R. Sutton Ballard Spahr
Vice President and Assistant Treasurer Andrews & Ingersoll
Lewis F. Pennock 1735 Market Street
Attorney P. Michelle Grace Philadelphia, PA 19103
Assistant Secretary
Ian W. Robinson
Consultant; Formerly Executive David L. Kite COUNSEL TO THE DIRECTORS
Vice President and Assistant Secretary Kramer, Levin, Naftalis,
Chief Financial Officer Nessen, Kamin & Frankel
Bell Atlantic Management Nancy L. Martin 919 Third Avenue
Services, Inc. Assistant Secretary New York, NY 10022
Louis S. Sklar Ofelia M. Mayo
Executive Vice President Assistant Secretary DISTRIBUTOR
Hines Interests A I M Distributors, Inc.
Limited Partnership Kathleen J. Pflueger 11 Greenway Plaza
Assistant Secretary Suite 1919
Houston, TX 77046
Samuel D. Sirko
Assistant Secretary
Stephen I. Winer
Assistant Secretary
Mary J. Benson
Assistant Treasurer
</TABLE>
<PAGE> 28
<TABLE>
<S> <C>
THE AIM FAMILY OF FUNDS(R)
AGGRESSIVE GROWTH
AIM Aggressive Growth Fund*
[PHOTO OF 11 GREENWAY PLAZA APPEARS HERE] AIM Capital Development Fund
AIM Constellation Fund
AIM Global Aggressive Growth Fund
GROWTH
AIM Blue Chip Fund
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
AIM Management Group has provided leadership in the investors on July 18, 1995. **On September 25,
mutual fund industry since 1976 and currently manages 1995, AIM Government Securities Fund became AIM
approximately $54 billion in assets for more than Intermediate Government Fund. For more complete
2.3 million shareholders, including individual information about any AIM Fund(s), including
investors, corporate clients, and financial sales charges and expenses, ask your financial
institutions. The AIM Family of Funds(R) is consultant or securities dealer for a free
distributed nationwide, and AIM today ranks among prospectus(es). Please read the prospectus(es)
the nation's top 15 mutual fund companies in assets carefully before you invest or send money.
under management, according to Lipper Analytical
Services, Inc. ---------------
BULK RATE
U.S. POSTAGE
PAID
[AIM LOGO APPEARS HERE] HOUSTON, TX
Permit No. 1919
A I M Distributors, Inc. ---------------
11 Greenway Plaza, Suite 1919
Houston, TX 77046
</TABLE>
