<PAGE> 1
AIM WEINGARTEN FUND
[AIM LOGO APPERARS HERE] SEMIANNUAL REPORT APRIL 30, 1997
<PAGE> 2
------------------------
AIM WEINGARTEN FUND
For shareholders who seek
long-term growth of capital
through investments
primarily in common stocks
of leading U.S. companies
considered by management
to have strong
earnings momentum.
------------------------
ABOUT FUND PERFORMANCE AND PORTFOLIO DATA THROUGHOUT THIS REPORT:
o AIM Weingarten Fund performance figures are historical and reflect
reinvestment of all distributions and changes in net asset value. Unless
otherwise indicated, Fund results were computed at net asset value
without reflecting sales charges.
o The Fund's average annual total returns, including sales charges, for
periods ended 3/31/97 (the most recent calendar quarter-end) are as
follows. For A shares, one year, 3.72%; five years, 9.75%; 10 years,
11.83%. For B shares, one year, 3.92%; since inception on 6/15/95,
12.03%.
o When sales charges are included in performance figures, Class A share
performance reflects the maximum 5.50% sales charge, and Class B share
performance reflects the applicable contingent deferred sales charge
(CDSC) for the period involved. The CDSC on Class B shares declines from
5% beginning at the time of purchase to 0% at the beginning of the
seventh year. The performance of the Fund's Class B shares will differ
from that of Class A shares due to differences in sales charge structure
and class expenses.
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 Past performance cannot guarantee comparable future results.
o The Fund's portfolio composition is subject to change, and there is no
assurance the Fund will continue to hold any particular security.
ABOUT INDEXES AND OTHER PERFORMANCE BENCHMARKS CITED IN THIS REPORT:
o Lipper Analytical Services, Inc. is an independent mutual fund
performance monitor. The unmanaged Lipper Growth Fund Index represents an
average of the performance of the 30 largest growth mutual funds.
o Standard & Poor's Corporation (S&P) is a credit-rating agency. The
unmanaged Standard & Poor's Composite Index of 500 Stocks (S&P 500) is
widely regarded by investors as representative of the stock market in
general.
o The Dow Jones Industrial Average (DJIA) is an unmanaged composite of the
performance of 30 large-company stocks.
o An investment cannot be made in any index listed. Unless otherwise
indicated, index results include reinvested dividends and do not
reflect sales charges.
MUTUAL FUNDS, ANNUITIES, AND OTHER INVESTMENTS ARE NOT INSURED BY
THE FDIC OR ANY OTHER GOVERNMENT AGENCY; ARE NOT DEPOSITS OR
OTHER OBLIGATIONS OF, OR GUARANTEED BY, ANY BANK OR ANY
AFFILIATE; AND ARE SUBJECT TO INVESTMENT RISKS,
INCLUDING POSSIBLE LOSS OF PRINCIPAL
AMOUNT INVESTED.
This report may be distributed only to current shareholders or to persons
who have received a current prospectus of the Fund.
<PAGE> 3
The Chairman's Letter
Dear Fellow Shareholder:
We have seen a great deal of change in the markets
during the past few months, change that has been
[PHOTO OF unsettling even for experienced market watchers.
CHARLES T. In many instances the change has occurred suddenly
BAUER, as the markets have fluctuated widely during the past
CHAIRMAN OF six months. The popular Dow Jones Industrial Average of
THE BOARD OF 30 large companies ranged from just over 7000 to just
THE FUND below 6400 before strengthening once again and
APPEARS HERE] regaining its lost ground. Both the Russell 2000 Index,
judged to be the benchmark for small-cap stocks, and
the Dow recently have set records.
The point we want to emphasize is that such
volatility seems to be the norm rather than the
exception in the current market. Although most
attention has been on the large stocks in the S&P 500 index, the broad-based
index generally considered "the market," small- and mid-cap companies have been
even more volatile. Indexes for smaller companies were down as much as 20%
before their recent rebound. Similarly, bonds fluctuated widely as concerns
mounted over the possibility of rising interest rates.
What does all of this mean? In past reports, we suggested that the 20%-30%
returns of 1995 and 1996 were unlikely to continue uninterrupted, and we have
seen that to be true so far in 1997. However, we are still experiencing the
longest bull market in history, now in its seventh year. For hundreds of
thousands of investors, this bull market is the only investment climate they
have ever known. If you have been invested in stocks only since 1990, your
experience has truly been extraordinary: the S&P 500 had an annual return of
30% in 1991, 38% in 1995, and 23% in 1996. And not one down year.
Of course, returns such as those we've enjoyed in this bull market are
well above the averages for stocks. That has led mutual fund managers,
financial consultants, and market experts to voice concern that some investors
may not be prepared for more modest returns that are in line with historical
averages. And, although we've seen nothing but advances in the S&P 500 since
1990, it is important to remember that the market has averaged a down year one
out of every three years since 1928.
KEEP REALISTIC EXPECTATIONS
What many investors may not realize is that periodic declines are
inevitable. In every market, there is always some segment, and some investment
strategies, that occasionally fall out of favor. Declines similar to what we
have seen in the small-cap and mid-cap sectors during the past six months often
are more severe than warranted; that is, they take good stocks down with the
bad. Of course, that lets us pick stocks just as prices for many attractive
companies are near their lowest for the year.
Not that we expect severe declines ahead. But it is important to maintain
realistic expectations about investment performance. Indeed, indications are
that stock performance may be returning to historic norms closer to 10% return
per year than 20%.
It's also a good idea to reassess your financial goals periodically with
your financial consultant. Managing your investments in changing markets can be
challenging. But your financial consultant knows a few time-tested investment
strategies that can help. Diversification can help you cushion the effects of
volatility.
On the following pages, your Fund's portfolio management team offers a
complete discussion of recent market conditions and how the Fund was affected.
They also discuss
Continued on next page
-----------------------
In every market, there
is always some segment,
and some investment
strategies, that
occasionally fall out
of favor.
-----------------------
<PAGE> 4
The Chairman's Letter
-----------------------
It's also a good idea
to reassess your
financial goals
periodically with your
financial consultant.
-----------------------
the Fund's portfolio strategy: why they believe the portfolio is
well-positioned for growth, and why they are confident that the reasons for
investing in the Fund are as compelling as ever. These discussions will help
you better understand the relative performance of your Fund.
AIM/INVESCO MERGER FINALIZED
We are pleased to announce that the merger of A I M Management Group Inc.
and INVESCO plc was concluded on February 28, 1997. AIM is now part of one of
the world's largest independent investment management groups with approximately
$170 billion in assets under management. The combined company, AMVESCAP plc,
has the financial strength necessary to meet your needs in an increasingly
competitive financial services environment, both in the United States and
worldwide. And, we will not change the portfolio management, investment style,
or name of any of the AIM funds you own. We have begun a new and promising era
for AIM, one we believe will yield exciting opportunities.
We appreciate the trust you have placed in us and we look forward to our
continued close association. If you have any questions or comments about this
report, we invite you to call Client Services at 800-959-4246 during normal
business hours. For automated account information 24 hours a day, call the AIM
Investor Line at 800-246-5463. We also invite you to visit AIM's Internet Web
site at www.aimfunds.com.
Sincerely,
/s/ CHARLES T. BAUER
Charles T. Bauer
Chairman
2
<PAGE> 5
The Managers' Overview
IN VOLATILE MARKET, FUND'S STEADY GROWTH CONTINUES
A roundtable discussion with the Fund management team for AIM Weingarten Fund
for the six months ended April 30, 1997.
- -------------------------------------------------------------------------------
Q. HOW DID THE FUND PERFORM DURING THE SIX MONTHS ENDED APRIL 30, 1997?
A. Total return for the six-month period covered by this report was 5.67% for
Class A shares of the Fund, 5.23% for Class B shares. At the close of the
reporting period, net assets of the Fund were $5.43 billion.
===============================================================================
Average Annual Total Returns
- -------------------------------------------------------------------------------
As of 4/30/97
Class A Shares
10 Years 13.18%
5 Years 12.14%
1 Year 11.30%
Class B Shares
Since Inception (6/15/95) 15.77%
1 Year 10.37%
===============================================================================
Q. WHAT WERE MARKET CONDITIONS LIKE DURING THIS REPORTING PERIOD?
A. Stock markets remained volatile, as they were throughout 1996. The popular
Dow Jones Industrial Average continued to climb through record highs,
but its performance was punctuated by two downturns of consequence, the
first in December 1996, the second from mid-March to mid-April 1997. In the
second decline, the Dow lost 9.8% of its value-just about the 10% correction
many market watchers believed was due given the prolonged length of this
bull market.
The primary cause of market volatility has been ongoing uncertainty
regarding interest rates, the strength of the economy, and the outlook
for corporate earnings. In circumstances like these, investors are drawn to
large, predictable companies, a phenomenon termed a "flight to quality."
Large-company stocks continued to be market favorites, outperforming
smaller-company stocks. During the six months covered by this report, the
S&P 500, an index of large-company stocks, produced total returns of 14.71%.
However, it was a very narrow market.
Q. WHAT DO YOU MEAN BY A NARROW MARKET?
A. In a narrow market,the performance of a market index is generated by
comparatively few stocks. For example, if you took out of the S&P 500
the 100 largest stocks in that index, its performance for 1996 dropped from
22.95% to about 5.4%. In other words, 20% of the stocks in that index
accounted for more than 75% of its total return.
Such an unusual environment presents a challenge for a diversified
mutual fund such as AIM Weingarten Fund, which has a relatively small
holding of each security in its portfolio. AIM Weingarten Fund had 228
holdings as of the close of the reporting period. Keep in mind that while
diversification means the Fund will not capture all the positive returns a
narrow market may offer when it is going up, it also means the Fund may not
experience all the negative returns during a downturn.
People seem willing to pay quite high prices for companies with a certain
level of predictability in their earnings, such as Procter & Gamble or
General Electric Co. It is as if they were paying an "earnings insurance"
premium.
But investors also want liquidity-securities that are widely traded
so there will be a market for them if circumstances change abruptly. Even
though the market resumed rising again in mid-April, with the Dow again
reaching new highs shortly after the six-month reporting period closed,
investors still seem skittish, uncertain whether this can continue. So a
relatively few large-company stocks continue to outperform dramatically.
Q. DID THE FUND'S PORTFOLIO CHANGE MUCH? HAVE YOU TRIED TO MAKE IT LOOK MORE
LIKE THE S&P 500?
A. We have made modifications since our last report, but no dramatic changes.
Technology stocks, financial stocks, and health-care stocks are still among
our largest holdings. But we have not attempted to model the Fund's
portfolio after any index.
Q. WITH MANY TECHNOLOGY STOCKS LAGGING, WHY DO YOU STILL OWN A LARGE NUMBER OF
TECH STOCKS?
A. Approximately 17% of the portfolio's common stock holdings are technology
companies such as service providers, personal computer makers, and
semiconductor manufacturers.
This sector has had its difficulties. In a technology universe of 600
stocks followed by Bear Stearns, by April 1, 1997, the average software
company stock was down 53% from its 1996 peak. Many tech stocks, especially
those of smaller companies, have never fully recovered from the sell-off that
hit last summer.
-------------------------
In a narrow market, the
performance of a market
index is generated by
comparatively few stocks.
-------------------------
See important Fund & index disclosures inside front cover.
3
<PAGE> 6
The Managers' Overview
PORTFOLIO HOLDINGS
As of 4/30/97, based on total net assets
===============================================================================
TOP 10 INDUSTRIES
- -------------------------------------------------------------------------------
1. Medical (Drugs) 8.13%
2. Semiconductors 5.95
3. Retail (Stores) 5.78
4. Finance (Consumer Credit) 5.53
5. Telecommunications 4.74
6. Computer Software/Services 4.52
7. Insurance (Multi-Line Property) 3.73
8. Medical (Patient Services) 3.71
9. Tobacco 3.44
10. Electronic Components/ 3.39
Miscellaneous
TOP 10 COMMON STOCK HOLDINGS
- -------------------------------------------------------------------------------
1. Student Loan Marketing 2.08%
Association
2. Philip Morris Companies, Inc. 1.81
3. RJR Nabisco Holdings Corp. 1.26
4. Applied Materials, Inc. 1.21
5. SmithKline Beecham PLC-ADR 1.15
6. NationsBank Corp. 1.11
7. American Home Products Corp. 1.10
8. Thermo Electron Corp. 1.06
9. Exxon Corp. 1.05
10. Baxter International Inc. .88
Please keep in mind that the Fund's portfolio composition is subject to change
and there is no assurance the Fund will continue to hold any particular
security.
===============================================================================
But many tech companies have reported excellent earnings for the first
quarter of 1997, and our stock-selection process has found a number of
technology companies we consider very promising. However, they are different
from the ones we owned six months ago.
We have reduced our exposure to computer networking stocks, for example.
This field has become problematic as networking has become more complex and
the field increasingly competitive. Our holdings in this area are down to
less than 1% of the portfolio; when the reporting period opened, they
represented more than 4% of the portfolio.
On the other hand, we more than doubled our stake in semiconductor
makers, focusing mainly on such makers of high-value, differentiated
semiconductor products as Texas Instruments, Motorola, and Micron
Technology. Companies like these have significant competitive advantages
over makers of commodity memory chips. Despite the potential uncertainty in
the short run, keep in mind that technology has been the chief engine of
economic expansion the past few years, generating up to one-third of all
economic growth by some estimates. We expect this sector to offer good growth
possibilities over the long term.
Q. WHAT DO YOU FIND ATTRACTIVE ABOUT FINANCIAL STOCKS?
A. Stocks from various financial industries constitute almost 10% of the
portfolio. We have had a relatively long period of stable interest rates and
low inflation, which is a perfect environment for financial firms. This
sector ought to remain healthy as long as inflation remains at bay.
The consolidation and restructuring going on in the banking industry, as
institutions like NationsBank gradually bring about truly national banking,
provide opportunities. Consumer-credit firms among our largest holdings are
government-sponsored entities such as "Sallie Mae," the Student Loan
Marketing Association, which has become the nation's leading provider of
financial funding services for college education loans; and the Federal
National Mortgage Association and Federal Home Loan Mortgage Corporation, the
most important players in the home mortgage market.
Q. DO YOU STILL HAVE SIZABLE HEALTH-CARE HOLDINGS?
A. Health-care stocks remain among our largest positions, especially
pharmaceutical companies and patient-care providers, which together compose
almost 12% of the portfolio. Pharmaceutical manufacturers are bringing a
steady stream of new products to market and many are reporting substantial
earnings growth. The pharmaceutical manufacturers in the portfolio tend to
be highly recognizable names such as Merck & Co., SmithKline Beecham, and
Bristol-Myers Squibb.
In the patient-care area, health maintenance organizations, including
United HealthCare and Oxford Health Plans, managed-care providers with a
growing enrollment, continue to lead the efficiency drive in the U.S.
health-care industry and have recently improved their pricing structure. A
recently formed alliance between other companies in the portfolio illustrate
the ongoing change in this industry: MedPartners, Inc., the nation's largest
physician practice management company, has contracted with hospital operator
Tenet Healthcare, thus forming the largest integrated health-care contracting
network in Southern California.
Given demographic trends in the U.S., we think health care will remain a
promising area of investment for some time.
Q. WHAT IS YOUR MARKET OUTLOOK FOR THE NEAR TERM?
A. In the U.S., the economic fundamentals appear to be in place: given the
absence of inflation, the Federal Reserve Board held interest rates steady
when it met in May; the economy is growing at a very healthy clip; and for
a record 17 quarters in a row, corporate earnings have outstripped analysts'
forecasts. The unanswerable questions are whether this can continue and, if
so, for how long?
After two extraordinary years in 1995 and 1996, the consensus expectation
is that stock performance may be returning to its historical norm of 9% or
10% total returns. We all need to keep in mind that 9% and 10% are
substantial returns and well above the prevailing inflation rate of about
3%. It's just that they seem slim compared to the very recent past. The
greatest challenge for investors may be to temper their expectations.
See important Fund & index disclosures inside front cover.
4
<PAGE> 7
Long-Term Performance
AIM WEINGARTEN FUND CLASS A SHARES VS. BENCHMARK INDEXES
The chart compares your Fund to benchmark indexes. It is important to
understand differences between your Fund and these indexes. An index measures
the performance of a hypothetical portfolio. A market index such as the S&P 500
is not managed; therefore, there are no sales charges, expenses, or fees. If
you could buy all the securities that make up a particular index, you would
incur expenses that would affect the return on your investment. Use of these
indexes is intended to give you a general idea of how your Fund performed
compared to these benchmarks.
===============================================================================
GROWTH OF A $10,000 INVESTMENT
- -------------------------------------------------------------------------------
6/17/69 - 4/30/97
AIM S&P Lipper Growth
Weingarten Fund 500 Fund Index
- -------------------------------------------------------------------------------
(In thousands)
6/17/69 $ 9,444 $ 10,000 $ 10,000
4/70 $ 7,573 $ 8,610 $ 8,147
4/71 $ 11,339 $ 11,381 $ 11,091
4/72 $ 14,447 $ 12,149 $ 13,032
4/73 $ 11,603 $ 12,416 $ 11,038
4/74 $ 9,842 $ 10,845 $ 9,335
4/75 $ 10,382 $ 11,013 $ 9,373
4/76 $ 11,407 $ 13,342 $ 10,681
4/77 $ 12,080 $ 13,451 $ 10,533
4/78 $ 16,156 $ 13,912 $ 11,676
4/79 $ 19,867 $ 15,405 $ 13,476
4/80 $ 27,403 $ 16,994 $ 15,597
4/81 $ 43,205 $ 22,301 $ 22,488
4/82 $ 36,883 $ 20,670 $ 19,966
4/83 $ 65,713 $ 30,788 $ 30,664
4/84 $ 57,791 $ 31,299 $ 28,638
4/85 $ 70,366 $ 36,816 $ 32,779
4/86 $103,121 $ 50,140 $ 45,074
4/87 $127,515 $ 63,444 $ 53,356
4/88 $122,037 $ 59,359 $ 50,388
4/89 $147,107 $ 72,880 $ 60,558
4/90 $170,565 $ 80,488 $ 64,386
4/91 $219,345 $ 94,628 $ 75,590
4/92 $248,067 $107,924 $ 86,099
4/93 $249,169 $117,870 $ 94,469
4/94 $268,499 $124,147 $103,250
4/95 $302,255 $145,770 $114,597
4/96 $395,188 $189,698 $147,689
4/97 $439,831 $237,332 $168,510
===============================================================================
Past performance cannot guarantee comparable future results.
===============================================================================
Average Annual Total Returns
For periods ended 4/30/97.
Including sales charges.
Class A Shares
Since Inception (6/17/69) 14.54%
20 Years 19.35%
10 Years 12.54%
5 Years 10.87%
1 Year 5.18%
Class B Shares
Since Inception (6/15/95) 13.84%
1 Year 5.37%
===============================================================================
------------------------
Source: Towers Data Systems HYPO --Registered Trademark--. Your Fund's
total return includes sales charges, expenses, and management fees. The
performance of Class B shares will differ from that of A shares due to
differing fees and expenses. For Fund performance calculations and descriptions
of indexes cited on this page, please refer to the inside front cover.
5
<PAGE> 8
For Consideration
WHY SMART MONEY
REMAINS FULLY INVESTED
Some investors like to wait for just the right moment to get into the stock
market and for just the right time to pull their investment out.
If that sounds like you, there's something you should know. During the
periods when you're content to sit on the sidelines, some of the market's best
single-day performances could slip right past you.
Are you so confident in your timing strategy that you're willing to
forfeit those gains? Missing even a handful of them could cost you dearly.
MISSING THE 20 BEST DAYS COULD CUT YOUR RETURN IN HALF
If you had invested a hypothetical $10,000 in the S&P 500 Index on December 31,
1991, by December 31, 1996 your $10,000 would have grown to $20,276, an average
annual total return of 15.18%.
But suppose during that five-year period there were times when you decided
to get out of the market, and as a result you ended up missing the market's 10
best single-day performances. In that case, your 15.18% return would have been
reduced to 11.03%. If you had missed the market's 20 best days, that 15.18%
return would have been sliced almost in half, down to 7.72%.
SMART INVESTORS DON'T PLAY THE TIMING GAME
The more you try to time the market, the greater your chances become of missing
the market's biggest single-day gains. That's why smart investors don't play
the timing game. They don't let the market's short-term gyrations sideline them
or dictate their investment objectives. They're patient investors-focused on
the long term and on their long-term goals.
Of course, past performance cannot guarantee comparable future results.
But one thing is clear. It's time, not timing, that counts when it comes to
potentially maximizing your investment return.
TALK TO YOUR FINANCIAL CONSULTANT
To find out more about the advantages of investing through the market ups and
downs, consult the combined expertise of your financial consultant and the
investment management of AIM. Regardless of the market, AIM's investment
strategy stays the same; we believe earnings drive stock prices and stock
prices drive portfolio performance.
AIM managed approximately $73 billion as of May 23, 1997, for financial
institutions, corporate clients and individual investors like you. Your
financial consultant can help you start investing with AIM today.
THE PENALTY FOR MISSING THE MARKET
Trying to time the market can be an inexact-and costly-exercise. S&P 500 Index:
December 31, 1991-December 31, 1996.
===============================================================================
Average Annual Growth
Period of Investment Total Return $10,000
- -------------------------------------------------------------------------------
Fully Invested 15.18% $20,276
Miss the 10 Best Days 11.03 16,876
Miss the 20 Best Days 7.72 14,507
Miss the 40 Best Days 2.13 11,113
Miss the 60 Best Days -2.37 8,868
===============================================================================
Source: Ibbotson Associates, Towers Data Systems HYPO--Registered Trademark--.
Past performance cannot guarantee comparable future results. The unmanaged
Standard & Poor's Composite Index of 500 Stocks is a group of unmanaged
securities widely regarded to be representative of the stock market in general;
results mentioned assume the reinvestment of dividends. An investment cannot be
made in an index.
------------------------
Instead of panicking
when the market moves,
try focusing on long-term
goals. Remember, it's
time- not timing- that
counts.
------------------------
6
<PAGE> 9
SCHEDULE OF INVESTMENTS
April 30, 1997
(Unaudited)
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
DOMESTIC COMMON STOCKS-82.79%
ADVERTISING/BROADCASTING-0.29%
Interpublic Group of Companies,
Inc. 275,000 $ 15,571,875
- ---------------------------------------------------------------
AEROSPACE/DEFENSE-0.63%
Gulfstream Aerospace Corp.(a) 444,300 11,329,650
- ---------------------------------------------------------------
United Technologies Corp. 300,000 22,687,500
- ---------------------------------------------------------------
34,017,150
- ---------------------------------------------------------------
APPLIANCES-0.25%
Sunbeam Corp., Inc. 425,000 13,493,750
- ---------------------------------------------------------------
BANKING-1.11%
NationsBank Corp. 1,000,000 60,375,000
- ---------------------------------------------------------------
BANKING (MONEY CENTER)-0.51%
Chase Manhattan Corp. 300,000 27,787,500
- ---------------------------------------------------------------
BEVERAGES (SOFT DRINKS)-0.09%
PepsiCo, Inc. 143,000 4,987,125
- ---------------------------------------------------------------
BIOTECHNOLOGY-0.89%
Amgen, Inc.(a) 250,000 14,718,750
- ---------------------------------------------------------------
Biogen, Inc.(a) 621,600 19,891,200
- ---------------------------------------------------------------
Guidant Corp. 200,000 13,650,000
- ---------------------------------------------------------------
48,259,950
- ---------------------------------------------------------------
BUSINESS SERVICES-2.17%
AccuStaff, Inc.(a) 1,800,000 32,850,000
- ---------------------------------------------------------------
Cognizant Corp. 935,700 30,527,213
- ---------------------------------------------------------------
Diebold, Inc. 450,150 15,080,025
- ---------------------------------------------------------------
Equifax, Inc. 1,000,000 28,750,000
- ---------------------------------------------------------------
Ingram Micro, Inc.(a)-Class A 457,200 10,401,300
- ---------------------------------------------------------------
117,608,538
- ---------------------------------------------------------------
CHEMICALS-0.27%
Monsanto Co. 341,900 14,616,225
- ---------------------------------------------------------------
COMPUTER MAINFRAMES-0.59%
International Business Machines
Corp. 200,000 32,150,000
- ---------------------------------------------------------------
COMPUTER MINI/PCS-3.14%
Compaq Computer Corp.(a) 500,000 42,687,500
- ---------------------------------------------------------------
Dell Computer Corp.(a) 350,000 29,290,625
- ---------------------------------------------------------------
Gateway 2000, Inc.(a) 350,000 19,206,250
- ---------------------------------------------------------------
Hewlett-Packard Co. 679,500 35,673,750
- ---------------------------------------------------------------
Stratus Computer, Inc.(a) 240,800 9,361,100
- ---------------------------------------------------------------
Sun Microsystems, Inc.(a) 1,191,300 34,324,331
- ---------------------------------------------------------------
170,543,556
- ---------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
COMPUTER NETWORKING-0.57%
Ascend Communications, Inc.(a) 350,000 $ 16,012,500
- ---------------------------------------------------------------
Belden, Inc. 483,300 14,861,475
- ---------------------------------------------------------------
30,873,975
- ---------------------------------------------------------------
COMPUTER PERIPHERALS-1.68%
Adaptec, Inc.(a) 700,000 25,900,000
- ---------------------------------------------------------------
American Power Conversion
Corp.(a) 489,200 9,417,100
- ---------------------------------------------------------------
EMC Corp.(a) 400,000 14,550,000
- ---------------------------------------------------------------
Seagate Technology, Inc.(a) 625,000 28,671,875
- ---------------------------------------------------------------
Storage Technology Corp.(a) 360,000 12,645,000
- ---------------------------------------------------------------
91,183,975
- ---------------------------------------------------------------
COMPUTER SOFTWARE/SERVICES-4.52%
Adobe Systems, Inc. 500,000 19,562,500
- ---------------------------------------------------------------
BMC Software, Inc.(a) 290,000 12,542,500
- ---------------------------------------------------------------
Cadence Design Systems, Inc.(a) 500,000 16,000,000
- ---------------------------------------------------------------
Computer Associates
International, Inc. 36,000 1,872,000
- ---------------------------------------------------------------
Compuware Corp.(a) 700,000 26,425,000
- ---------------------------------------------------------------
Electronic Arts, Inc.(a) 450,000 10,856,250
- ---------------------------------------------------------------
Fiserv, Inc.(a) 708,600 26,749,650
- ---------------------------------------------------------------
HBO & Co. 600,000 32,100,000
- ---------------------------------------------------------------
Microsoft Corp.(a) 300,000 36,450,000
- ---------------------------------------------------------------
National Data Corp. 343,100 12,866,250
- ---------------------------------------------------------------
Parametric Technology Co.(a) 300,000 13,575,000
- ---------------------------------------------------------------
Sterling Commerce, Inc.(a) 700,000 18,112,500
- ---------------------------------------------------------------
Synopsys, Inc.(a) 210,900 6,722,438
- ---------------------------------------------------------------
Wallace Computer Services, Inc. 425,000 11,368,750
- ---------------------------------------------------------------
245,202,838
- ---------------------------------------------------------------
CONGLOMERATES-2.66%
AlliedSignal Inc. 292,200 21,111,450
- ---------------------------------------------------------------
Corning Inc. 375,000 18,093,750
- ---------------------------------------------------------------
Johnson Controls, Inc. 400,000 15,350,000
- ---------------------------------------------------------------
Loews Corp. 450,000 41,343,750
- ---------------------------------------------------------------
Tyco International Ltd. 500,000 30,500,000
- ---------------------------------------------------------------
U.S. Industries, Inc.(a) 500,000 18,062,500
- ---------------------------------------------------------------
144,461,450
- ---------------------------------------------------------------
CONTAINERS-0.31%
Sealed Air Corp.(a) 369,000 17,066,250
- ---------------------------------------------------------------
COSMETICS & TOILETRIES-1.46%
Dial Corp. 1,000,000 15,500,000
- ---------------------------------------------------------------
McKesson Corp. 67,200 4,863,600
- ---------------------------------------------------------------
Procter & Gamble Co. (The) 350,000 44,012,500
- ---------------------------------------------------------------
</TABLE>
7
<PAGE> 10
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
COSMETICS & TOILETRIES-(CONTINUED)
Warner-Lambert Co. 150,000 $ 14,700,000
- ---------------------------------------------------------------
79,076,100
- ---------------------------------------------------------------
ELECTRIC POWER-0.30%
AES Corp.(a) 250,000 16,312,500
- ---------------------------------------------------------------
ELECTRONIC COMPONENTS/MISCELLANEOUS-2.82%
General Electric Co. 300,000 33,262,500
- ---------------------------------------------------------------
Honeywell, Inc. 330,400 23,334,500
- ---------------------------------------------------------------
Symbol Technologies, Inc. 670,100 21,694,487
- ---------------------------------------------------------------
Teradyne, Inc.(a) 950,000 31,112,500
- ---------------------------------------------------------------
Thermo Instrument Systems,
Inc.(a) 538,500 16,895,437
- ---------------------------------------------------------------
Waters Corp.(a) 901,900 26,718,787
- ---------------------------------------------------------------
153,018,211
- ---------------------------------------------------------------
FINANCE (ASSET MANAGEMENT)-0.87%
Franklin Resources, Inc. 406,500 24,034,312
- ---------------------------------------------------------------
T. Rowe Price Associates 500,000 23,125,000
- ---------------------------------------------------------------
47,159,312
- ---------------------------------------------------------------
FINANCE (CONSUMER CREDIT)-5.10%
Federal Home Loan Mortgage Corp. 1,403,800 44,746,125
- ---------------------------------------------------------------
Federal National Mortgage
Association 1,134,500 46,656,313
- ---------------------------------------------------------------
Finova Group, Inc. 227,000 15,577,875
- ---------------------------------------------------------------
Green Tree Financial Corp. 611,400 18,112,725
- ---------------------------------------------------------------
Household International, Inc. 175,000 15,400,000
- ---------------------------------------------------------------
Money Store, Inc. (The) 1,013,500 21,916,937
- ---------------------------------------------------------------
Student Loan Marketing
Association 952,900 112,680,425
- ---------------------------------------------------------------
SunAmerica, Inc. 33,400 1,536,400
- ---------------------------------------------------------------
276,626,800
- ---------------------------------------------------------------
FINANCE (SAVINGS & LOAN)-1.52%
H.F. Ahmanson & Co. 800,000 30,500,000
- ---------------------------------------------------------------
ContiFinancial Corp.(a) 342,600 9,849,750
- ---------------------------------------------------------------
Great Western Financial Corp. 1,000,000 42,000,000
- ---------------------------------------------------------------
82,349,750
- ---------------------------------------------------------------
FOOD/PROCESSING-1.37%
ConAgra, Inc. 550,000 31,693,750
- ---------------------------------------------------------------
Dean Foods Co. 725,000 26,734,375
- ---------------------------------------------------------------
Lancaster Colony Corp. 394,233 16,212,832
- ---------------------------------------------------------------
74,640,957
- ---------------------------------------------------------------
FUNERAL SERVICES-0.82%
Service Corp. International 1,305,600 44,716,800
- ---------------------------------------------------------------
FURNITURE-0.30%
Furniture Brands International,
Inc.(a) 1,108,900 16,356,275
- ---------------------------------------------------------------
GAMING-0.23%
International Game Technology 800,000 12,700,000
- ---------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
HOTELS/MOTELS-0.97%
HFS, Inc.(a) 350,000 $ 20,737,500
- ---------------------------------------------------------------
Host Marriott Corp.(a) 208,500 3,622,687
- ---------------------------------------------------------------
Marriot International, Inc. 515,000 28,453,750
- ---------------------------------------------------------------
52,813,937
- ---------------------------------------------------------------
INSURANCE (LIFE & HEALTH)-1.23%
Conseco Inc. 1,148,900 47,535,738
- ---------------------------------------------------------------
Equitable Companies, Inc. 500,000 14,625,000
- ---------------------------------------------------------------
Equitable of Iowa Companies 92,800 4,535,600
- ---------------------------------------------------------------
66,696,338
- ---------------------------------------------------------------
INSURANCE (MULTI-LINE
PROPERTY)-3.28%
Allstate Corp. 565,300 37,027,150
- ---------------------------------------------------------------
American International Group,
Inc. 225,000 28,912,500
- ---------------------------------------------------------------
Everest Re Holdings, Inc. 800,500 23,014,375
- ---------------------------------------------------------------
ITT Hartford Group, Inc. 375,000 27,937,500
- ---------------------------------------------------------------
MBIA, Inc. 150,000 14,606,250
- ---------------------------------------------------------------
MGIC Investment Corp. 200,000 16,250,000
- ---------------------------------------------------------------
Travelers Group, Inc. 550,000 30,456,250
- ---------------------------------------------------------------
178,204,025
- ---------------------------------------------------------------
LEISURE & RECREATION-0.81%
Carnival Corp.-Class A 800,000 29,500,000
- ---------------------------------------------------------------
Walt Disney Co. (The) 175,000 14,350,000
- ---------------------------------------------------------------
43,850,000
- ---------------------------------------------------------------
MACHINERY (HEAVY)-0.59%
Caterpillar Inc. 175,000 15,575,000
- ---------------------------------------------------------------
Ingersoll-Rand Co. 334,100 16,412,663
- ---------------------------------------------------------------
31,987,663
- ---------------------------------------------------------------
MACHINERY (MISCELLANEOUS)-1.06%
Thermo Electron Corp.(a) 1,664,400 57,421,800
- ---------------------------------------------------------------
MEDICAL (DRUGS)-6.24%
Abbott Laboratories 250,000 15,250,000
- ---------------------------------------------------------------
American Home Products Corp. 900,000 59,625,000
- ---------------------------------------------------------------
AmeriSource Health Corp.-Class
A(a) 500,000 22,312,500
- ---------------------------------------------------------------
Bristol-Myers Squibb Co. 500,000 32,750,000
- ---------------------------------------------------------------
Cardinal Health, Inc. 500,000 26,625,000
- ---------------------------------------------------------------
ICN Pharmaceuticals, Inc. 1,200,000 25,350,000
- ---------------------------------------------------------------
Johnson & Johnson 500,000 30,625,000
- ---------------------------------------------------------------
Merck & Co., Inc. 500,000 45,250,000
- ---------------------------------------------------------------
Pfizer, Inc. 300,000 28,800,000
- ---------------------------------------------------------------
Rhone-Poulenc Rorer, Inc. 180,000 12,982,500
- ---------------------------------------------------------------
Schering-Plough Corp. 175,000 14,000,000
- ---------------------------------------------------------------
Watson Pharmaceuticals, Inc.(a) 700,000 25,025,000
- ---------------------------------------------------------------
338,595,000
- ---------------------------------------------------------------
</TABLE>
8
<PAGE> 11
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
MEDICAL (PATIENT SERVICES)-3.71%
Columbia/HCA Healthcare Corp. 875,000 $ 30,625,000
- ---------------------------------------------------------------
Health Care and Retirement
Corp.(a) 222,350 7,031,819
- ---------------------------------------------------------------
HEALTHSOUTH Corp.(a) 1,400,000 27,650,000
- ---------------------------------------------------------------
MedPartners, Inc.(a) 1,100,000 20,075,000
- ---------------------------------------------------------------
Oxford Health Plans, Inc.(a) 300,000 19,762,500
- ---------------------------------------------------------------
Quorum Health Group, Inc.(a) 1,000,000 31,125,000
- ---------------------------------------------------------------
Tenet Healthcare Corp.(a) 1,100,000 28,600,000
- ---------------------------------------------------------------
United Healthcare Corp. 550,000 26,743,750
- ---------------------------------------------------------------
Universal Health Services,
Inc.-Class B(a) 262,000 9,923,250
- ---------------------------------------------------------------
201,536,319
- ---------------------------------------------------------------
MEDICAL INSTRUMENTS/PRODUCTS-2.96%
Baxter International Inc. 1,000,000 47,875,000
- ---------------------------------------------------------------
Becton, Dickinson & Co. 600,000 27,600,000
- ---------------------------------------------------------------
Boston Scientific Corp.(a) 300,000 14,475,000
- ---------------------------------------------------------------
DePuy, Inc.(a) 172,200 3,616,200
- ---------------------------------------------------------------
Stryker Corp.(a) 701,600 23,065,100
- ---------------------------------------------------------------
Sybron International Corp.(a) 941,900 31,318,175
- ---------------------------------------------------------------
US Surgical Corp. 375,000 12,843,750
- ---------------------------------------------------------------
160,793,225
- ---------------------------------------------------------------
OFFICE AUTOMATION-0.28%
Xerox Corp. 250,000 15,375,000
- ---------------------------------------------------------------
OFFICE PRODUCTS-0.42%
Reynolds & Reynolds Co.-Class A 1,100,000 22,825,000
- ---------------------------------------------------------------
OIL & GAS (DRILLING)-0.24%
Reading & Bates Corp.(a) 575,000 12,865,625
- ---------------------------------------------------------------
OIL & GAS (SERVICES)-1.98%
Exxon Corp. 1,010,000 57,191,250
- ---------------------------------------------------------------
Halliburton Co. 400,000 28,250,000
- ---------------------------------------------------------------
Louisiana Land & Exploration
Co.(a) 360,800 18,040,000
- ---------------------------------------------------------------
Unocal Corp. 108,900 4,151,813
- ---------------------------------------------------------------
107,633,063
- ---------------------------------------------------------------
OIL EQUIPMENT & SUPPLIES-1.71%
Baker Hughes, Inc. 550,100 18,978,450
- ---------------------------------------------------------------
BJ Services Co.(a) 142,800 6,729,450
- ---------------------------------------------------------------
Coastal Corp. 300,000 14,250,000
- ---------------------------------------------------------------
Cooper Cameron Corp.(a) 95,300 6,790,125
- ---------------------------------------------------------------
Rowan Companies, Inc.(a) 675,000 12,150,000
- ---------------------------------------------------------------
Schlumberger Ltd. 200,000 22,150,000
- ---------------------------------------------------------------
Tidewater, Inc. 300,000 12,037,500
- ---------------------------------------------------------------
93,085,525
- ---------------------------------------------------------------
PAPER & FOREST PRODUCTS-0.60%
Kimberly-Clark Corp. 640,500 32,825,625
- ---------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
POLLUTION CONTROL-0.71%
USA Waste Services, Inc.(a) 800,000 $ 26,200,000
- ---------------------------------------------------------------
US Filter Corp.(a) 399,900 12,146,962
- ---------------------------------------------------------------
38,346,962
- ---------------------------------------------------------------
PUBLISHING-0.54%
Gannett Company, Inc. 97,600 8,515,600
- ---------------------------------------------------------------
New York Times Co.-Class A 325,000 14,056,250
- ---------------------------------------------------------------
Times Mirror Co. 122,400 6,762,600
- ---------------------------------------------------------------
29,334,450
- ---------------------------------------------------------------
RESTAURANTS-0.49%
Applebee's International, Inc. 630,800 14,744,950
- ---------------------------------------------------------------
Boston Chicken, Inc.(a) 500,000 11,937,500
- ---------------------------------------------------------------
26,682,450
- ---------------------------------------------------------------
RETAIL (FOOD & DRUG)-1.68%
American Stores Co. 456,000 20,748,000
- ---------------------------------------------------------------
Kroger Co.(a) 997,200 27,423,000
- ---------------------------------------------------------------
Rite Aid Corp. 650,000 29,900,000
- ---------------------------------------------------------------
Safeway, Inc.(a) 300,000 13,387,500
- ---------------------------------------------------------------
91,458,500
- ---------------------------------------------------------------
RETAIL (STORES)-5.79%
Barnes & Noble, Inc.(a) 111,200 4,170,000
- ---------------------------------------------------------------
Bed Bath & Beyond, Inc.(a) 575,000 15,740,625
- ---------------------------------------------------------------
Consolidated Stores Corp.(a) 562,500 22,500,000
- ---------------------------------------------------------------
Costco Companies, Inc.(a) 1,100,000 31,762,500
- ---------------------------------------------------------------
CVS Corp. 450,000 22,331,250
- ---------------------------------------------------------------
Dayton Hudson Corp. 425,000 19,125,000
- ---------------------------------------------------------------
Gap, Inc. 140,800 4,488,000
- ---------------------------------------------------------------
Home Depot, Inc. 250,000 14,500,000
- ---------------------------------------------------------------
Jones Apparel Group, Inc.(a) 200,000 8,350,000
- ---------------------------------------------------------------
Lowe's Companies, Inc. 1,080,000 41,040,000
- ---------------------------------------------------------------
Pep Boys-Manny, Moe & Jack 1,000,000 32,625,000
- ---------------------------------------------------------------
Ross Stores, Inc. 525,000 14,765,625
- ---------------------------------------------------------------
Sysco Corp. 298,600 10,600,300
- ---------------------------------------------------------------
Tech Data Corp.(a) 786,800 19,276,600
- ---------------------------------------------------------------
TJX Companies, Inc. 325,000 15,356,250
- ---------------------------------------------------------------
Toys "R" Us, Inc.(a) 550,000 15,675,000
- ---------------------------------------------------------------
U.S. Office Products Co.(a) 850,000 21,675,000
- ---------------------------------------------------------------
313,981,150
- ---------------------------------------------------------------
SCIENTIFIC INSTRUMENTS-0.30%
Perkin-Elmer Corp. 225,000 16,340,625
- ---------------------------------------------------------------
SEMICONDUCTORS-5.95%
Advanced Micro Devices, Inc.(a) 600,000 25,500,000
- ---------------------------------------------------------------
Analog Devices, Inc.(a) 500,000 13,375,000
- ---------------------------------------------------------------
Applied Materials, Inc.(a) 1,200,000 65,850,000
- ---------------------------------------------------------------
Cypress Semiconductor Corp.(a) 638,900 8,864,738
- ---------------------------------------------------------------
</TABLE>
9
<PAGE> 12
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
SEMICONDUCTORS-(CONTINUED)
Intel Corp. 100,000 $ 15,312,500
- ---------------------------------------------------------------
KLA Instruments Corp.(a) 700,000 31,150,000
- ---------------------------------------------------------------
Linear Technology Corp. 300,000 15,075,000
- ---------------------------------------------------------------
LSI Logic Corp.(a) 425,000 16,256,250
- ---------------------------------------------------------------
Maxim Integrated Products, Inc.(a) 300,000 15,862,500
- ---------------------------------------------------------------
Micron Technology, Inc. 850,000 29,962,500
- ---------------------------------------------------------------
Motorola, Inc. 450,000 25,762,500
- ---------------------------------------------------------------
National Semiconductor Corp.(a) 673,300 16,832,500
- ---------------------------------------------------------------
Novellus Systems, Inc.(a) 125,600 7,253,400
- ---------------------------------------------------------------
Texas Instruments, Inc. 400,000 35,700,000
- ---------------------------------------------------------------
322,756,888
- ---------------------------------------------------------------
TELECOMMUNICATIONS-2.83%
ADC Telecommunications, Inc.(a)(b) 750,000 19,593,750
- ---------------------------------------------------------------
Andrew Corp.(a) 525,000 12,993,750
- ---------------------------------------------------------------
Lucent Technologies, Inc. 600,000 35,475,000
- ---------------------------------------------------------------
PairGain Technologies, Inc.(a) 500,000 13,000,000
- ---------------------------------------------------------------
Tellabs, Inc.(a) 800,000 31,900,000
- ---------------------------------------------------------------
WorldCom, Inc.(a) 1,700,000 40,800,000
- ---------------------------------------------------------------
153,762,500
- ---------------------------------------------------------------
TELEPHONE-0.23%
Cincinnati Bell, Inc. 225,000 12,600,000
- ---------------------------------------------------------------
TEXTILES-0.28%
Fruit of The Loom, Inc.-Class A(a) 415,100 14,943,600
- ---------------------------------------------------------------
TOBACCO-3.44%
Philip Morris Companies, Inc. 2,500,000 98,437,500
- ---------------------------------------------------------------
RJR Nabisco Holdings Corp. 2,306,200 68,609,450
- ---------------------------------------------------------------
Universal Corp. 700,000 19,600,000
- ---------------------------------------------------------------
186,646,950
- ---------------------------------------------------------------
Total Domestic Common Stocks 4,494,518,082
- ---------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C> <C>
DOMESTIC CONVERTIBLE PREFERRED STOCKS-1.19%
FINANCE (CONSUMER CREDIT)-0.43%
SunAmerica, Inc.-Series E,
$3.10 Conv. Pfd. 228,800 23,337,600
- ---------------------------------------------------------------
HOTELS/MOTELS-0.31%
Host Marriott Financial Trust-
$3.375 Conv. Pfd. (acquired
02/12/97-02/19/97; cost
$18,036,739)(c) 310,800 17,250,643
- ---------------------------------------------------------------
INSURANCE (MULTI-LINE PROPERTY)-0.45%
MGIC Investment Corp.-$3.12 Conv.
Pfd. 347,600 24,288,550
- ---------------------------------------------------------------
Total Domestic Convertible Preferred
Stocks 64,876,793
- ---------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
<S> <C> <C>
DOMESTIC CONVERTIBLE BONDS & NOTES-1.42%
CHEMICALS-0.39%
Sandoz Capital BVI Ltd., Gtd.
Conv. Deb., 2.00%, 10/06/02
(acquired 11/01/96-11/05/96;
cost $18,721,100)(c) $17,000,000 $ 21,335,000
- ---------------------------------------------------------------
ELECTRONIC COMPONENTS/MISCELLANEOUS-0.57%
SCI Systems, Inc., Conv. Sub.
Notes, 5.00%, 05/01/06 22,050,000 30,897,563
- ---------------------------------------------------------------
POLLUTION CONTROL-0.09%
US Filter Corp., Conv. Sub.
Notes, 6.00%, 09/15/05 2,700,000 4,683,475
- ---------------------------------------------------------------
SEMICONDUCTORS-0.37%
Altera Corp., Conv. Sub. Notes,
5.75%, 06/15/02
(acquired 01/17/97; cost
$16,951,400)(c) 10,000,000 20,278,700
- ---------------------------------------------------------------
Total Domestic Convertible Bonds & Notes 77,194,738
- ---------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
SHARES
<S> <C> <C>
FOREIGN STOCKS & OTHER EQUITY INTERESTS-8.37%
CANADA-1.48%
Canadian Pacific, Ltd.
(Transportation) 585,000 14,259,375
- ---------------------------------------------------------------
Newbridge Networks Corp.(a)
(Computer Networking) 600,000 19,050,000
- ---------------------------------------------------------------
Northern Telecom Ltd.
(Telecommunications) 325,000 23,603,125
- ---------------------------------------------------------------
Philip Environmental, Inc.(a)
(Pollution Control) 1,500,000 23,625,000
- ---------------------------------------------------------------
80,537,500
- ---------------------------------------------------------------
FINLAND-0.29%
Nokia Oy A.B.-Class A-ADR
(Telecommunications) 240,000 15,510,000
- ---------------------------------------------------------------
FRANCE-0.51%
Elf Aquitaine S.A. (Oil &
Gas-Services) 285,000 27,638,139
- ---------------------------------------------------------------
GERMANY-0.30%
Adidas A.G. (Shoes & Related
Apparel) 78,800 8,213,073
- ---------------------------------------------------------------
VEBA A.G. (Electric Power) 158,000 8,138,122
- ---------------------------------------------------------------
16,351,195
- ---------------------------------------------------------------
HONG KONG-0.88%
HSBC Holdings PLC (Banking) 820,000 20,747,434
- ---------------------------------------------------------------
Sun Hung Kai Properties Ltd.
(Real Estate) 2,505,000 27,163,235
- ---------------------------------------------------------------
47,910,669
- ---------------------------------------------------------------
IRELAND-0.36%
Elan Corp.
PLC-ADR(a)(Medical-Drugs) 580,000 19,720,000
- ---------------------------------------------------------------
ISRAEL-0.38%
Teva Pharmaceutical Industries
Ltd.-ADR (Medical-Drugs) 405,800 20,594,350
- ---------------------------------------------------------------
</TABLE>
10
<PAGE> 13
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
ITALY-0.64%
Telecom Italia Mobile S.p.A.
(Telecommunications) 6,000,000 $ 18,821,674
- ---------------------------------------------------------------
Telecom Italia S.p.A.
(Telecommunications) 6,000,000 15,885,058
- ---------------------------------------------------------------
34,706,732
- ---------------------------------------------------------------
MALAYSIA-0.20%
Malayan Banking Berhad (Banking) 1,074,000 10,693,803
- ---------------------------------------------------------------
NETHERLANDS-1.05%
Gucci Group N.V.-ADR-New York
Registered Shares (Textiles) 250,000 17,343,750
- ---------------------------------------------------------------
Philips Electronics N.V.-ADR-New
York Shares (Appliances) 320,300 17,136,050
- ---------------------------------------------------------------
Royal Dutch Petroleum Co.-ADR-New
York Shares (Oil &
Gas-Services) 125,000 22,531,250
- ---------------------------------------------------------------
57,011,050
- ---------------------------------------------------------------
SWEDEN-0.55%
Telefonaktiebolaget LM
Ericsson-ADR
(Telecommunications) 881,300 29,633,713
- ---------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
UNITED KINGDOM-1.73%
Danka Business Systems PLC-ADR
(Office Automation) 401,900 $ 12,283,069
- ---------------------------------------------------------------
Granada Group PLC (Leisure &
Recreation) 1,330,000 19,184,765
- ---------------------------------------------------------------
SmithKline Beecham PLC-ADR
(Medical-Drugs) 775,000 62,484,375
- ---------------------------------------------------------------
93,952,209
- ---------------------------------------------------------------
Total Foreign Stocks & Other Equity
Interests 454,259,360
- ---------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
<S> <C> <C>
COMMERCIAL PAPER TRUST-0.55%
Citibank, N.A., 5.895%,
12/26/97(d) $30,000,000 30,000,000
- ---------------------------------------------------------------
REPURCHASE AGREEMENTS(e)-5.24%
Goldman, Sachs & Co., 5.375%,
05/01/97(f) 86,853,893 86,853,893
- ---------------------------------------------------------------
HSBC Securities, Inc., 5.55%,
05/01/97(g) 197,510,181 197,510,181
- ---------------------------------------------------------------
Total Repurchase Agreements 284,364,074
- ---------------------------------------------------------------
TOTAL INVESTMENTS-99.56% 5,405,213,047
- ---------------------------------------------------------------
OTHER ASSETS LESS LIABILITIES-0.44% 23,707,955
- ---------------------------------------------------------------
TOTAL NET ASSETS-100.00% $5,428,921,002
===============================================================
</TABLE>
Abbreviations:
<TABLE>
<S> <C>
ADR -American Depository Receipt
Conv. -Convertible
Pfd. -Preferred
Gtd. -Guaranteed
Sub. -Subordinated
</TABLE>
Notes to Schedule of Investments:
(a) Non-income producing security
(b) A portion of this security is subject to call options written. See Note 6.
(c) Restricted Security. May be resold to qualified institutional buyers in
accordance with the provisions of Rule 144A under the Securities Act of
1933, as amended. The valuation of these securities has been determined in
accordance with procedures established by the Board of Directors. The
aggregate market value of these securities at April 30, 1997 was $58,864,343
which represented 1.08% of the Fund's net assets.
(d) Variable rate trust certificates representing an interest in a trust
(comprised of eligible debt obligations) entitling the Fund to receive
variable rate interest. The Fund has the right, upon seven calendar days'
notice to the trustee, to put its certificates to the trust at par value
plus accrued interest. Because variable rate trust certificates involve a
trust and a third party put feature, they involve complexities and potential
risks that may not be present where the debt obligation is owned directly.
Rate shown is the rate in effect on April 30, 1997.
(e) Collateral on repurchase agreements, including the Fund's pro-rata interest
in joint repurchase agreements, is taken into possession by the Fund upon
entering into the repurchase agreement. The collateral is marked to market
daily to ensure its market value as being 102% of the sales price of the
repurchase agreement. The investments in some repurchase agreements are
through participation in joint accounts with other mutual funds, private
accounts and certain non-registered investment companies managed by the
investment advisor or its affiliates.
(f) Joint repurchase agreement entered into on 04/30/97 with maturing value of
$701,547,221. Collateralized by $757,320,000 U.S. Treasury obligations, 0%
to 8.875% due 07/17/97 to 02/15/26 with an aggregate market value at April
30, 1997 of $716,184,843.
(g) Joint repurchase agreement entered into on 04/30/97 with maturing value of
$500,077,083. Collateralized by $285,655,288 U.S. Government agency
obligations, 0% to 8.00% due 04/01/19 to 12/01/35 and $321,339,000 U.S.
Treasury obligations, 4.75% to 9.25% due 09/30/97 to 10/31/99 with an
aggregate market value at April 30, 1997 of $510,003,616.
See Notes to Financial Statements.
11
<PAGE> 14
STATEMENT OF ASSETS AND LIABILITIES
April 30, 1997
(Unaudited)
<TABLE>
<S> <C>
ASSETS:
Investments, at market value (cost
$4,524,773,802) $5,405,213,047
- --------------------------------------------------------
Foreign currencies, at market value
(cost $10,528) 10,792
- --------------------------------------------------------
Receivables for:
Investments sold 90,580,668
- --------------------------------------------------------
Options purchased 281,250
- --------------------------------------------------------
Capital stock sold 4,604,126
- --------------------------------------------------------
Dividends and interest 4,277,796
- --------------------------------------------------------
Investment for deferred compensation
plan 66,430
- --------------------------------------------------------
Other assets 126,497
- --------------------------------------------------------
Total assets 5,505,160,606
- --------------------------------------------------------
LIABILITIES:
Payables for:
Investments purchased 59,109,537
- --------------------------------------------------------
Options written 750,000
- --------------------------------------------------------
Capital stock reacquired 9,292,445
- --------------------------------------------------------
Deferred compensation 66,430
- --------------------------------------------------------
Accrued advisory fees 2,614,487
- --------------------------------------------------------
Accrued administrative service fees 10,510
- --------------------------------------------------------
Accrued distribution fees 2,109,588
- --------------------------------------------------------
Accrued transfer agent fees 1,541,871
- --------------------------------------------------------
Accrued operating expenses 744,736
- --------------------------------------------------------
Total liabilities 76,239,604
- --------------------------------------------------------
Net assets applicable to shares
outstanding $5,428,921,002
========================================================
NET ASSETS:
Class A $5,014,448,112
========================================================
Class B $ 351,019,539
========================================================
Institutional Class $ 63,453,351
========================================================
CAPITAL STOCK, $.001 PAR VALUE PER SHARE:
CLASS A:
Authorized 750,000,000
- --------------------------------------------------------
Outstanding 264,935,631
========================================================
CLASS B:
Authorized 750,000,000
- --------------------------------------------------------
Outstanding 18,779,084
========================================================
INSTITUTIONAL CLASS:
Authorized 200,000,000
- --------------------------------------------------------
Outstanding 3,310,794
- --------------------------------------------------------
CLASS A:
Net asset value and redemption price
per share $ 18.93
========================================================
Offering price per share:
(Net asset value of
$18.93 divided by 94.50%) $ 20.03
========================================================
CLASS B:
Net asset value and offering price per
share $ 18.69
========================================================
INSTITUTIONAL CLASS:
Net asset value, offering and
redemption price per share $ 19.17
========================================================
</TABLE>
STATEMENT OF OPERATIONS
For the six months ended April 30, 1997
(Unaudited)
<TABLE>
<S> <C>
INVESTMENT INCOME:
Dividends (net of $396,081 foreign
withholding tax) $ 24,799,615
- ----------------------------------------------------------
Interest 6,302,042
- ----------------------------------------------------------
Total investment income 31,101,657
- ----------------------------------------------------------
EXPENSES:
Advisory fees 17,460,585
- ----------------------------------------------------------
Administrative service fees 73,693
- ----------------------------------------------------------
Custodian fees 191,071
- ----------------------------------------------------------
Directors' fees 15,990
- ----------------------------------------------------------
Distribution fees-Class A 7,688,203
- ----------------------------------------------------------
Distribution fees-Class B 1,589,373
- ----------------------------------------------------------
Transfer agent fees-Class A 4,286,458
- ----------------------------------------------------------
Transfer agent fees-Class B 385,368
- ----------------------------------------------------------
Transfer agent fees-Institutional Class 2,855
- ----------------------------------------------------------
Other 847,420
- ----------------------------------------------------------
Total expenses 32,541,016
- ----------------------------------------------------------
Less: Fees waived by advisor (949,019)
- ----------------------------------------------------------
Expenses paid indirectly (45,865)
- ----------------------------------------------------------
Net expenses 31,546,132
- ----------------------------------------------------------
Net investment (loss) (444,475)
- ----------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENT SECURITIES, FOREIGN
CURRENCIES AND OPTION CONTRACTS:
Net realized gain (loss) on sales of:
Investment securities 447,720,009
- ----------------------------------------------------------
Foreign currencies (2,571,094)
- ----------------------------------------------------------
Options contracts 4,829,479
- ----------------------------------------------------------
449,978,394
- ----------------------------------------------------------
Net unrealized appreciation (depreciation)
of:
Investment securities (153,788,488)
- ----------------------------------------------------------
Foreign currencies (53,868)
- ----------------------------------------------------------
Options contracts 2,178,320
- ----------------------------------------------------------
(151,664,036)
- ----------------------------------------------------------
Net gain on investment securities,
foreign currencies and option
contracts 298,314,358
- ----------------------------------------------------------
Net increase in net assets resulting from
operations $ 297,869,883
==========================================================
</TABLE>
See Notes to Financial Statements.
12
<PAGE> 15
STATEMENT OF CHANGES IN NET ASSETS
For the six months ended April 30, 1997 and the year ended October 31, 1996
(Unaudited)
<TABLE>
<CAPTION>
APRIL 30, OCTOBER 31,
1997 1996
-------------- --------------
<S> <C> <C>
OPERATIONS:
Net investment income (loss) $ (444,475) $ 14,147,587
- ----------------------------------------------------------------------------------------------
Net realized gain on sales of investment securities,
foreign currencies, futures and options contracts 449,978,394 590,548,116
- ----------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) of investment
securities, foreign currencies, and options contracts (151,664,036) 79,138,554
- ----------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 297,869,883 683,834,257
- ----------------------------------------------------------------------------------------------
Dividends to shareholders from net investment income:
Class A (14,825,812) --
- ----------------------------------------------------------------------------------------------
Institutional Class (446,594) --
- ----------------------------------------------------------------------------------------------
Distributions to shareholders from net realized gains on
investment securities:
Class A (552,424,286) (606,609,217)
- ----------------------------------------------------------------------------------------------
Class B (32,141,402) (7,814,517)
- ----------------------------------------------------------------------------------------------
Institutional Class (6,654,246) (7,332,667)
- ----------------------------------------------------------------------------------------------
Net equalization credits:
Class A 1,412,885 2,368,957
- ----------------------------------------------------------------------------------------------
Class B 62,469 992,175
- ----------------------------------------------------------------------------------------------
Institutional Class 86,077 65,590
- ----------------------------------------------------------------------------------------------
Share transactions-net:
Class A 322,422,079 362,344,237
- ----------------------------------------------------------------------------------------------
Class B 101,653,884 210,825,508
- ----------------------------------------------------------------------------------------------
Institutional Class 6,470,978 5,462,015
- ----------------------------------------------------------------------------------------------
Net increase in net assets 123,485,915 644,136,338
- ----------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 5,305,435,087 4,661,298,749
- ----------------------------------------------------------------------------------------------
End of period $5,428,921,002 $5,305,435,087
==============================================================================================
NET ASSETS CONSIST OF:
Capital (par value and additional paid-in) $4,079,731,400 $3,649,184,459
- ----------------------------------------------------------------------------------------------
Undistributed net investment income 30,361,176 44,516,626
- ----------------------------------------------------------------------------------------------
Undistributed net realized gain on sales of investment
securities, foreign currencies, futures and options
contracts 439,469,771 580,711,311
- ----------------------------------------------------------------------------------------------
Unrealized appreciation of investment securities, foreign
currencies, and option contracts 879,358,655 1,031,022,691
- ----------------------------------------------------------------------------------------------
$5,428,921,002 $5,305,435,087
==============================================================================================
</TABLE>
See Notes to Financial Statements.
13
<PAGE> 16
NOTES TO FINANCIAL STATEMENTS
April 30, 1997
(Unaudited)
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES
AIM Weingarten Fund (the "Fund") is a series 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 six diversified portfolios:
AIM Weingarten Fund, AIM Aggressive Growth Fund, AIM Blue Chip Fund, AIM Capital
Development Fund, AIM Charter Fund and AIM Constellation Fund. The Fund
currently offers three different classes of shares: the Class A shares, Class B
shares and the Institutional Class. Matters affecting each portfolio or class
will be voted on exclusively by such shareholders. The assets, liabilities and
operations of each portfolio are accounted for separately. The Fund's investment
objective is to seek growth of capital principally through investment in common
stocks of seasoned and better capitalized companies. Information presented in
these financial statements pertains only to the Fund.
The following is a summary of significant accounting policies followed by the
Fund in the preparation of its financial statements. 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.
A. Security Valuations--A security listed or traded on an exchange (except
convertible bonds) is valued at its last sales price on the exchange where
the security is principally traded, or lacking any sales on a particular
day, the security is valued at the 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. Debt obligations (including convertible bonds) are valued
on the basis of prices provided by an independent pricing service. Prices
provided by an independent pricing service may be determined without
exclusive reliance on quoted prices, and may reflect appropriate factors
such as yield, type of issue, corporate and maturity date. 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. Foreign Currency Translations--Portfolio securities and other assets and
liabilities denominated in foreign currencies are translated into U.S.
dollar amounts at date of valuation. Purchases and sales of portfolio
securities and income items denominated in foreign currencies are translated
into U.S. dollar amounts on the respective dates of such transactions.
C. Foreign Currency Contracts--A foreign currency contract is an obligation to
purchase or sell a specific currency for an agreed-upon price at a future
date. The Fund may enter into a currency contract for the purchase or sale
of a security denominated in a foreign currency in order to "lock in" the
U.S. dollar price of that security. The Fund could be exposed to risk if
counterparties to the contracts are unable to meet the terms of their
contracts.
D. Stock Index Futures Contracts--The Fund may purchase or sell stock index
futures contracts as a hedge against changes in market conditions. Initial
margin deposits required upon entering into futures contracts are satisfied
by the segregation of specific securities or cash, and/or by securing a
standby letter of credit from a major commercial bank, as collateral, for
the account of the broker (the Fund's agent in acquiring the futures
position). During the period the futures contract is open, changes in the
value of the contract are recognized as unrealized gains or losses by
"marking to market" on a daily basis to reflect the market value of the
contract at the end of each day's trading. Variation margin payments are
made or received depending upon whether unrealized gains or losses are
incurred. When the contract is closed, the Fund records a realized gain or
loss equal to the difference between the proceeds from (or cost of) the
closing transaction and the Fund's basis in the contract. Risks include
the possibility of an illiquid market and that a change in the value of
the contract may not correlate with changes in the securities being hedged.
E. Covered Call Options--The Fund may write call options, but only on a covered
basis; that is, the Fund will own the underlying security. Options written
by the Fund normally will have expiration dates between three and nine
months from the date written. The exercise price of a call option may be
below, equal to, or above the current market value of the underlying
security at the time the option is written. When the Fund writes a covered
call option, an amount equal to the premium received by the Fund is recorded
as an asset and an equivalent
14
<PAGE> 17
liability. The amount of the liability is subsequently "marked-to-market" to
reflect the current market value of the option written. The current market
value of a written option is the mean between the last bid and asked prices
on that day. If a written call option expires on the stipulated expiration
date, or if the Fund enters into a closing purchase transaction, the Fund
realizes a gain (or a loss if the closing purchase transaction exceeds the
premium received when the option was written) without regard to any
unrealized gain or loss on the underlying security, and the liability
related to such option is extinguished. If a written option is exercised,
the Fund realizes a gain or a loss from the sale of the underlying security
and the proceeds of the sale are increased by the premium originally
received.
A call option gives the purchaser of such option the right to buy, and the
writer (the Fund) the obligation to sell, the underlying security at the
stated exercise price during the option period. The purchaser of a call
option has the right to acquire the security which is the subject of the call
option at any time during the option period. During the option period, in
return for the premium paid by the purchaser of the option, the Fund has
given up the opportunity for capital appreciation above the exercise price
should the market price of the underlying security increase, but has retained
the risk of loss should the price of the underlying security decline. During
the option period, the Fund may be required at any time to deliver the
underlying security against payment of the exercise price. This obligation is
terminated upon the expiration of the option period or at such earlier time
at which the Fund effects a closing purchase transaction by purchasing (at a
price which may be higher than that received when the call option was
written) a call option identical to the one originally written.
F. Put options--The Fund may purchase put options. By purchasing a put option,
the Fund obtains the right (but not the obligation) to sell the option's
underlying instrument at a fixed strike price. In return for this right, a
Fund pays an option premium. The option's underlying instrument may be a
security, or a futures contract. Put options may be used by a Fund to hedge
securities it owns by locking in a minimum price at which the Fund can sell.
If security prices fall, the put option could be exercised to offset all or
a portion of the Fund's resulting losses. At the same time, because the
maximum the Fund has at risk is the cost of the option, purchasing put
options does not eliminate the potential for the Fund to profit from an
increase in the value of the securities hedged.
G. Securities Transactions, Investment Income and Distributions--Securities
transactions are accounted for on a trade date basis. Realized gains or
losses on sales are computed on the specific identification of securities
sold. Interest income is recorded as earned from settlement date and is
recorded on the accrual basis. Dividend income and distributions to
shareholders are recorded on the ex-dividend date.
H. 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.
I. Expenses--Distribution and transfer agency expenses directly attributable to
a class of shares are charged to that class' operations. All other expenses
which are attributable to more than one class are allocated between the
classes.
J. Equalization--The Fund follows the accounting practice known as equalization
by which a portion of the proceeds from sales and the costs of repurchases
of Fund shares, equivalent on a per share basis to the amount of
undistributed net investment income, is credited or charged to undistributed
net income when the transaction is recorded so that undistributed net
investment income per share is unaffected by sales or redemptions of Fund
shares.
NOTE 2-ADVISORY FEES AND OTHER TRANSACTIONS WITH AFFILIATES
The Company has entered into a master investment advisory agreement with A I M
Advisors, Inc. ("AIM"). The terms of the master investment advisory agreement
provide that the Fund shall pay an advisory fee to AIM at an annual rate of 1.0%
of the first $30 million of the Fund's average daily net assets, plus 0.75% of
the Fund's average daily net assets in excess of $30 million to and including
$350 million, plus 0.625% of the Fund's average daily net assets in excess of
$350 million. AIM is currently voluntarily waiving a portion of its advisory
fees payable by the Fund to AIM to the extent necessary to reduce the fees paid
by the Fund at net asset levels higher than those currently incorporated in the
present advisory fee schedule. AIM will receive a fee calculated at the annual
rate of 1.0% of the first $30 million of the Fund's average daily net assets,
plus 0.75% of the Fund's average daily net assets in excess of $30 million to
and including $350 million, plus 0.625% of the Fund's average daily net assets
in excess of $350 million to and including $2 billion, plus 0.60% of the Fund's
average daily net assets in excess of $2 billion to and including $3 billion,
plus 0.575% of the Fund's average daily net assets in excess of $3 billion to
and including $4 billion, plus 0.55% of the Fund's average daily net assets in
excess of $4 billion. The waiver of fees is entirely voluntary but approval is
required by the Board of Directors of the Company for any decision by AIM to
discontinue the waiver. During the six months ended April 30, 1997, AIM waived
fees of $949,019. Under the terms of a master sub-advisory agreement between AIM
and A I M Capital Management, Inc. ("AIM Capital"), AIM pays AIM Capital 50% of
the amount paid by the Fund to AIM.
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, 1997, AIM
was reimbursed $73,693 for such services.
The Fund, pursuant to a transfer agency and service agreement, has agreed to
pay A I M Fund Services, Inc. ("AFS") for certain costs incurred in providing
transfer agency services to the Class A shares and Class B shares. During the
six months ended April 30, 1997, AFS was reimbursed $2,228,690 for such
services.
During the six months ended April 30, 1997, the Fund, pursuant to a transfer
agency and service agreement, paid A I M Institutional Fund Services, Inc.
("AIFS") $2,855 for shareholder and transfer agency services with respect to the
Institutional Class.
15
<PAGE> 18
The Fund received reductions in transfer agency fees of $42,960 from dividends
received on balances in cash management bank accounts. In addition, the Fund
incurred expenses of $2,905 for pricing services which are paid through directed
brokerage commissions. The effect of the above arrangements resulted in a
reduction in the Fund's total expenses of $45,865 during the six months ended
April 30, 1997.
The Company has entered into a master distribution agreement with A I M
Distributors, Inc. ("AIM Distributors") to serve as the distributor for the
Class A and Class B shares and a master distribution agreement with Fund
Management Company ("FMC") to serve as the distributor for the Institutional
Class. The Company has adopted Plans pursuant to Rule 12b-1 under the 1940 Act
with respect to the Fund's Class A shares (the "Class A Plan") and with respect
to the Fund's Class B shares (the "Class B Plan") (collectively, the "Plans").
The Fund, pursuant to the Class A Plan, pays AIM Distributors compensation at
the annual rate of 0.30% of the average daily net assets attributable to the
Class A shares. The Class A Plan is designed to compensate AIM Distributors for
certain promotional and other sales related costs, and to implement a program
which provides periodic payments to selected dealers and financial institutions
who furnish continuing personal shareholder services to their customers who
purchase and own Class A shares of the Fund. The Fund, pursuant to the Class B
Plan, pays AIM Distributors compensation at an annual rate of 1.00% of the
average daily net assets attributable to the Class B shares. Of this amount, the
Fund may pay a service fee of 0.25% of the average daily net assets of the Class
B shares to selected dealers and financial institutions who furnish continuing
personal shareholder services to their customers who purchase and own Class B
shares of the Fund. Any amounts not paid as a service fee under such Plans would
constitute an asset-based sales charge. The Plans also impose a cap on the total
sales charges, including asset-based sales charges, that may be paid by the
respective classes. AIM Distributors may, from time to time, assign, transfer or
pledge to one or more designees, its rights to all or a designated portion of
(a) compensation received by AIM Distributors from the Fund pursuant to the
Class B Plan (but not AIM Distributors duties and obligations pursuant to the
Class B Plan) and (b) any contingent deferred sales charges received by AIM
Distributors related to the Class B shares. During the six months ended April
30, 1997, the Class A shares and the Class B shares paid AIM Distributors
$7,688,203 and $1,589,373, respectively, as compensation under the Plans.
AIM Distributors received commissions of $831,559 from sales of shares of the
Class A shares of the Fund during the year six months ended April 30, 1997. Such
commissions are not an expense of the Fund. They are deducted from, and are not
included in, the proceeds from sales of Class A shares. During the six months
ended April 30, 1997, AIM Distributors received commissions of $24,937 in
contingent deferred sales charges imposed on redemptions of Fund shares. Certain
officers and directors of the Company are officers and directors of AIM, AIM
Capital, AIM Distributors, AFS, AIFS and FMC.
During the six months ended April 30, 1997, the Fund paid legal fees of
$10,693 for services rendered by Kramer, Levin, Naftalis & Frankel as counsel to
the Company's directors. A member of that firm is a director of the Company.
NOTE 3-INVESTMENT SECURITIES
The aggregate amount of investment securities (other than short-term securities)
purchased and sold during the six months ended April 30, 1997 was $3,610,400,083
and $4,082,664,624, respectively.
The amount of unrealized appreciation (depreciation) of investment securities,
on a tax basis, as of April 30, 1997 is as follows:
<TABLE>
<S> <C>
Aggregate unrealized appreciation of
investment securities $ 980,079,896
- ----------------------------------------------------------
Aggregate unrealized (depreciation) of
investment securities (105,092,131)
- ----------------------------------------------------------
Net unrealized appreciation of investment
securities $ 874,987,765
==========================================================
</TABLE>
Cost of investments for tax purposes is $4,530,225,282.
NOTE 4-DIRECTORS' FEES
Directors' fees represent remuneration paid or accrued to each director who is
not an "interested person" of AIM. The Company invests directors' fees, if so
elected by a director, in mutual fund shares in accordance with a deferred
compensation plan.
NOTE 5-BANK BORROWINGS
The Fund is a participant in a committed line of credit facility with a
syndicate administered by The Chase Manhattan Bank. The Fund may borrow up to
the lesser of (i) $325,000,000 or (ii) the limits set by its prospectus for
borrowings. The Fund and other funds advised by AIM which are parties to the
line of credit may borrow on a first come, first served basis. Interest on
borrowings under the line of credit is payable on maturity or prepayment date.
During the six months ended April 30, 1997, the Fund did not borrow under the
line of credit agreement. The funds which are party to the line of credit are
charged a commitment fee of 0.08% on the unused balance of the committed line.
The commitment fee is allocated among the funds based on their respective
average net assets for the period.
NOTE 6-OPTION CONTRACTS WRITTEN
Transactions in call options written during the six months ended April 30, 1997
are summarized as follows:
<TABLE>
<CAPTION>
OPTION CONTRACTS
-------------------------
NUMBER OF PREMIUMS
CONTRACTS RECEIVED
--------- ------------
<S> <C> <C>
Beginning of period 55,804 $ 22,601,072
- -----------------------------------------------------------
Written 62,525 18,316,598
- -----------------------------------------------------------
Closed (79,359) (30,366,331)
- -----------------------------------------------------------
Exercised (9,500) (3,963,917)
- -----------------------------------------------------------
Expired (21,970) (6,081,525)
- -----------------------------------------------------------
End of period 7,500 $ 505,897
- -----------------------------------------------------------
</TABLE>
16
<PAGE> 19
Open call option contracts written at April 30, 1997 were as follows:
<TABLE>
<CAPTION>
APRIL 30, UNREALIZED
CONTRACT STRIKE NUMBER OF PREMIUM 1997 APPRECIATION
MONTH PRICE CONTRACTS RECEIVED MARKET VALUE (DEPRECIATION)
ISSUE -------- ------ --------- -------- ------------ --------------
<S> <C> <C> <C> <C> <C> <C>
ADC Telecommunications, Inc. April 27 75 $505,897 $750,000 $(244,103)
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
NOTE 7-PUT OPTIONS WRITTEN
Transactions in put options purchased during the six months ended April 30, 1997
are summarized as follows:
<TABLE>
<CAPTION>
PUT OPTION CONTRACTS
------------------------
NUMBER OF PREMIUMS
CONTRACTS PAID
--------- ----------
<S> <C> <C>
Beginning of period -- --
- --------------------------------------------------------------------------------------
Purchased 7,500 $1,053,750
- --------------------------------------------------------------------------------------
Exercised -- --
- --------------------------------------------------------------------------------------
End of period 7,500 $1,053,750
- --------------------------------------------------------------------------------------
</TABLE>
Open put option contracts purchased at April 30, 1997 were as follows:
<TABLE>
<CAPTION>
APRIL 30, UNREALIZED
CONTRACT STRIKE NUMBER OF PREMIUM 1997 APPRECIATION
MONTH PRICE CONTRACTS RECEIVED MARKET VALUE (DEPRECIATION)
ISSUE -------- ------ --------- ---------- ------------ --------------
<S> <C> <C> <C> <C> <C> <C>
ADC Telecommunications, Inc. April 22.5 75 $1,053,750 $281,250 $772,500
- ----------------------------------------------------------------------------------------------------------------------------
</TABLE>
NOTE 8-CAPITAL STOCK
Changes in the capital stock outstanding during the six months ended April 30,
1997 and the year ended October 31, 1996 were as follows:
<TABLE>
<CAPTION>
APRIL 30, 1997 OCTOBER 31, 1996
-------------------------- --------------------------
SHARES AMOUNT SHARES AMOUNT
---------- ------------ ---------- ------------
<S> <C> <C> <C> <C>
Sold:
Class A 18,222,095 $353,778,240 34,550,539 $648,183,624
- ---------------------------------------------------------------------------------------------------------------------
Class B 5,136,342 98,559,132 12,381,545 231,706,372
- ---------------------------------------------------------------------------------------------------------------------
Institutional Class 187,453 3,617,225 516,716 9,877,153
- ---------------------------------------------------------------------------------------------------------------------
Issued as a reinvestment of dividends:
Class A 29,415,287 528,056,969 32,395,132 557,844,149
- ---------------------------------------------------------------------------------------------------------------------
Class B 1,715,463 30,689,638 425,933 7,326,082
- ---------------------------------------------------------------------------------------------------------------------
Institutional Class 313,585 5,650,803 338,803 5,871,449
- ---------------------------------------------------------------------------------------------------------------------
Reacquired:
Class A (29,281,788) (559,413,130) (44,929,759) (843,683,536)
- ---------------------------------------------------------------------------------------------------------------------
Class B (1,461,847) (27,594,886) (1,500,861) (28,206,946)
- ---------------------------------------------------------------------------------------------------------------------
Institutional Class (146,120) (2,797,050) (552,275) (10,286,587)
- ---------------------------------------------------------------------------------------------------------------------
24,100,470 $430,546,941 33,625,773 $578,631,760
=====================================================================================================================
</TABLE>
17
<PAGE> 20
NOTE 9-FINANCIAL HIGHLIGHTS
Shown below are the financial highlights for a Class A share outstanding during
the six months ended April 30, 1997, each of the years in the eight-year period
ended October 31, 1996 and the ten months ended October 31, 1988 and for a Class
B share outstanding during the six months ended April 30, 1997, the year ended
October 31, 1996 and the period June 26, 1995 (date sales commenced) through
October 31, 1995.
CLASS A:
<TABLE>
<CAPTION>
October 31,
April 30, ---------------------------------------------------------------
1997 1996 1995 1994 1993 1992
---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 20.19 $ 20.33 $ 17.82 $ 17.62 $ 16.68 $ 15.76
- ------------------------------------------ ---------- ---------- ---------- ---------- ---------- ----------
Income from investment operations:
Net investment income -- 0.06 -- 0.07 0.10 0.10
- ------------------------------------------ ---------- ---------- ---------- ---------- ---------- ----------
Net gains (losses) on securities (both
realized and unrealized) 1.04 2.51 4.36 0.57 0.93 0.98
- ------------------------------------------ ---------- ---------- ---------- ---------- ---------- ----------
Total from investment operations 1.04 2.57 4.36 0.64 1.03 1.08
- ------------------------------------------ ---------- ---------- ---------- ---------- ---------- ----------
Less distributions:
Dividends from net investment income (0.06) -- (0.07) (0.11) (0.09) (0.07)
- ------------------------------------------ ---------- ---------- ---------- ---------- ---------- ----------
Distributions from net realized capital
gains (2.24) (2.71) (1.78) (0.33) -- (0.09)
- ------------------------------------------ ---------- ---------- ---------- ---------- ---------- ----------
Total distributions (2.30) (2.71) (1.85) (0.44) (0.09) (0.16)
- ------------------------------------------ ---------- ---------- ---------- ---------- ---------- ----------
Net asset value, end of period $ 18.93 $ 20.19 $ 20.33 $ 17.82 $ 17.62 $ 16.68
========================================== ========== ========== ========== ========== ========== ==========
Total return(b) 5.67% 14.81% 28.20% 3.76% 6.17% 6.85%
========================================== ========== ========== ========== ========== ========== ==========
Ratios/supplemental data:
Net assets, end of period (000s omitted) $5,014,448 $4,977,493 $4,564,730 $3,965,858 $4,999,983 $5,198,835
========================================== ========== ========== ========== ========== ========== ==========
Ratio of expenses to average net assets(c) 1.11%(d)(e) 1.12% 1.17% 1.21% 1.13% 1.13%
========================================== ========== ========== ========== ========== ========== ==========
Ratio of net investment income to average
net assets(g) 0.03%(d) 0.33% (0.02)% 0.45% 0.62% 0.60%
========================================== ========== ========== ========== ========== ========== ==========
Portfolio turnover rate 68% 159% 139% 136% 109% 37%
========================================== ========== ========== ========== ========== ========== ==========
Average broker commission rate paid(h) $ 0.0622 $ 0.0615 N/A N/A N/A N/A
========================================== ========== ========== ========== ========== ========== ==========
Borrowings for the period:
Amount of debt outstanding at end of
period (000s omitted) -- -- -- -- -- --
========================================== ========== ========== ========== ========== ========== ==========
Average amount of debt outstanding during
the period (000s omitted)(i) -- -- $ 593 -- -- --
========================================== ========== ========== ========== ========== ========== ==========
Average number of shares outstanding
during the period (000s omitted)(i) 264,280 248,189 229,272 249,351 314,490 246,273
========================================== ========== ========== ========== ========== ========== ==========
Average amount of debt per share during
the period -- -- $ 0.003 -- -- --
========================================== ========== ========== ========== ========== ========== ==========
<CAPTION>
October 31,
---------------------------------------------
1991 1990 1989 1988(a)
---------- ---------- -------- --------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 11.15 $ 12.32 $ 9.23 $ 8.36
- ------------------------------------------ ---------- ---------- -------- --------
Income from investment operations:
Net investment income 0.11 0.09 0.10 0.07
- ------------------------------------------ ---------- ---------- -------- --------
Net gains (losses) on securities (both
realized and unrealized) 4.80 (0.56) 3.10 0.80
- ------------------------------------------ ---------- ---------- -------- --------
Total from investment operations 4.91 (0.47) 3.20 0.87
- ------------------------------------------ ---------- ---------- -------- --------
Less distributions:
Dividends from net investment income (0.09) (0.06) (0.11) --
- ------------------------------------------ ---------- ---------- -------- --------
Distributions from net realized capital
gains (0.21) (0.64) -- --
- ------------------------------------------ ---------- ---------- -------- --------
Total distributions (0.30) (0.70) (0.11) --
- ------------------------------------------ ---------- ---------- -------- --------
Net asset value, end of period $ 15.76 $ 11.15 $ 12.32 $ 9.23
========================================== ========== ========== ======== ========
Total return(b) 44.88% (4.03)% 35.13% 10.41%
========================================== ========== ========== ======== ========
Ratios/supplemental data:
Net assets, end of period (000s omitted) $2,534,331 $ 632,522 $393,320 $297,284
========================================== ========== ========== ======== ========
Ratio of expenses to average net assets(c) 1.18% 1.25% 1.19% 1.08%(f)
========================================== ========== ========== ======== ========
Ratio of net investment income to average
net assets(g) 0.72% 0.75% 0.96% 0.90%(f)
========================================== ========== ========== ======== ========
Portfolio turnover rate 46% 79% 87% 93%
========================================== ========== ========== ======== ========
Average broker commission rate paid(h) N/A N/A N/A N/A
========================================== ========== ========== ======== ========
Borrowings for the period:
Amount of debt outstanding at end of
period (000s omitted) -- -- $ 3,781 --
========================================== ========== ========== ======== ========
Average amount of debt outstanding during
the period (000s omitted)(i) -- $ 485 $ 1,083 $ 229
========================================== ========== ========== ======== ========
Average number of shares outstanding
during the period (000s omitted)(i) 102,353 44,770 31,275 33,031
========================================== ========== ========== ======== ========
Average amount of debt per share during
the period -- $ 0.011 $ 0.035 $ 0.007
========================================== ========== ========== ======== ========
</TABLE>
(a) The Fund changed investment advisors on September 30, 1988.
(b) Does not deduct sales charges and, for periods less than one year, total
returns are not annualized.
(c) After waiver of fees and/or expense reimbursements. Ratios of expenses to
average net assets prior to waiver of fees and/or expense reimbursements
were 1.14% (annualized), 1.15%, 1.19%, 1.24%, 1.17% and 1.15% for the
periods 1997-1992, respectively.
(d) Ratios are annualized and based on average net assets of $5,167,944,740.
(e) Includes indirectly paid expenses. Excluding indirectly paid expenses, the
ratio of expenses to average net assets would have remained the same.
(f) Annualized.
(g) After waiver of fees and/or expense reimbursements. Ratios of net investment
income (loss) to average net assets prior to waiver of fees and/or expense
reimbursements were 0.00% (annualized), 0.30%, (0.04%), 0.42%, 0.58% and
0.58% for the periods 1997-1992, respectively.
(h) Disclosure requirement beginning with the Fund's fiscal year ending October
31, 1996.
(i) Averages computed on a daily basis.
18
<PAGE> 21
CLASS B:
<TABLE>
<CAPTION>
OCTOBER 31,
APRIL 30, ---------------------------
1997 1996 1995
---------- ---------- ----------
<S> <C> <C> <C>
Net asset value, beginning of period $ 19.98 $ 20.28 $ 18.56
- ------------------------------------------------------------ ---------- ---------- ----------
Income from investment operations:
Net investment income (loss) (0.05) (0.05)(a) (0.03)
- ------------------------------------------------------------ ---------- ---------- ----------
Net gains (losses) on securities (both realized and
unrealized) 1.00 2.46 1.75
- ------------------------------------------------------------ ---------- ---------- ----------
Total from investment operations 0.95 2.41 1.72
- ------------------------------------------------------------ ---------- ---------- ----------
Less distributions:
Distributions from capital gains (2.24) (2.71) --
- ------------------------------------------------------------ ---------- ---------- ----------
Net asset value, end of period $ 18.69 $ 19.98 $ 20.28
============================================================ ========== ========== ==========
Total return(b) 5.23% 13.95% 9.27%
============================================================ ========== ========== ==========
Ratios/supplemental data:
Net assets, end of period (000's omitted) $ 351,020 $ 267,459 $ 42,238
============================================================ ========== ========== ==========
Ratio of expenses to average net assets(c) 1.88%(d)(e) 1.95% 1.91%(f)
============================================================ ========== ========== ==========
Ratio of net investment income (loss) to average net
assets(g) (0.74)%(d) (0.50)% (0.76)%(f)
============================================================ ========== ========== ==========
Portfolio turnover rate 68% 159% 139%
============================================================ ========== ========== ==========
Average broker commission rate paid(h) $ 0.0622 $ 0.0615 N/A
============================================================ ========== ========== ==========
Borrowings for the period:
Amount of debt outstanding at end of
period (000s omitted) -- -- --
============================================================ ========== ========== ==========
Average amount of debt outstanding during the
period (000s omitted)(i) -- -- $ 3
============================================================ ========== ========== ==========
Average number of shares outstanding during the
period (000s omitted)(i) 16,619 7,956 1,036
============================================================ ========== ========== ==========
Average amount of debt per share during the period -- -- $ 0.0039
============================================================ ========== ========== ==========
</TABLE>
(a) Calculated using average shares outstanding.
(b) Does not deduct contingent deferred sales charges and is not annualized for
periods less than one year.
(c) After waiver of fees and/or expense reimbursements. Ratios of expenses to
average net assets prior to waiver of fees and/or expense reimbursements
were 1.89% (annualized), 1.98% and 1.94% (annualized) for the periods
1997-1995, respectively.
(d) Ratios are annualized and based on average net assets of $320,508,971.
(e) Includes indirectly paid expenses. Excluding indirectly paid expenses, the
ratio of expenses to average net assets would have remained the same.
(f) Annualized.
(g) After waiver of fees and/or expense reimbursements. Ratios of net investment
income (loss) to average net assets prior to waiver of fees and/or expense
reimbursements were (0.75)% (annualized), (0.53)% and (0.79)% (annualized)
for the periods 1997-1995, respectively.
(h) Disclosure requirement beginning with the Fund's fiscal year ending October
31, 1996.
(i) Averages computed on a daily basis.
19
<PAGE> 22
SUPPLEMENTAL PROXY INFORMATION
- --------------------------------------------------------------------------------
The Annual Meeting of Shareholders of the AIM Equity Funds, Inc. (the "Company")
was held on February 7, 1997 at the offices of A I M Management Group Inc., 11
Greenway Plaza, Houston, Texas. The meeting was held for the following purposes:
(1) To elect Directors as follows: Charles T. Bauer, Bruce L. Crockett, Owen
Daly II, Carl Frischling, Robert H. Graham, John F. Kroeger, Lewis F.
Pennock, Ian W. Robinson and Louis S. Sklar.
(2) To approve a new Master Investment Advisory Agreement between the AIM
Constellation Fund (the "Fund") and A I M Advisors, Inc.
(3) To approve a new Sub-Advisory Agreement between AIM and A I M Capital
Management, Inc.
(4) To approve the elimination of the fundamental investment policy prohibiting
the Fund from investing in other investment companies.
(5) To approve the elimination of the fundamental investment policy prohibiting
or restricting the Fund's investments in puts, calls, straddles and spreads.
(6) To ratify the selection of KPMG Peat Marwick LLP as independent accountants
for the Fund for the Company's fiscal year ending October 31, 1997.
The results of the proxy solicitation on the above matters were as follows:
<TABLE>
<CAPTION>
Votes
Director/Matter Votes For Against Abstentions
--------------- --------- ------- -----------
<S> <C> <C> <C> <C>
(1) Charles T. Bauer............................................ 618,811,245 0 19,923,485
Bruce L. Crockett........................................... 619,427,685 0 19,307,045
Owen Daly II................................................ 618,919,919 0 19,814,811
Carl Frischling............................................. 619,275,356 0 19,459,374
Robert H. Graham............................................ 619,431,576 0 19,303,154
John F. Kroeger............................................. 618,878,096 0 19,856,634
Lewis F. Pennock............................................ 619,272,998 0 19,461,732
Ian W. Robinson............................................. 618,944,840 0 19,789,890
Louis S. Sklar.............................................. 619,462,714 0 19,272,016
(2) Approval of Master Investment Advisory Agreement............ 146,733,416 2,498,355 6,552,908
(3) Approval of Sub-Advisory Agreement.......................... 146,153,496 2,885,840 6,745,343
(4) Elimination of Fundamental Investment Policy Concerning
Investments in Other Investment Companies................... 111,841,005 5,168,602 6,908,560
(5) Elimination of Fundamental Investment Policy concerning
Puts, Calls, Straddles and Spreads.......................... 110,091,179 6,531,415 7,295,571
(6) KPMG Peat Marwick LLP....................................... 609,690,634 5,519,782 23,524,314
</TABLE>
20
<PAGE> 23
Directors & Officers
<TABLE>
<S> <C> <C>
BOARD OF DIRECTORS OFFICERS OFFICE OF THE FUND
Charles T. Bauer Charles T. Bauer 11 Greenway Plaza
Chairman Chairman Suite 100
A I M Management Group Inc. Houston, TX 77046
Robert H. Graham
Bruce L. Crockett President INVESTMENT ADVISOR
Formerly Director, President, and
Chief Executive Officer John J. Arthur A I M Advisors, Inc.
COMSAT Corporation Senior Vice President and Treasurer 11 Greenway Plaza
Suite 100
Owen Daly II Gary T. Crum Houston, TX 77046
Director Senior Vice President
Cortland Trust Inc. TRANSFER AGENT
Scott G. Lucas
Jack Fields Senior Vice President A I M Fund Services, Inc.
Formerly Member of the P.O. Box 4739
U.S. House of Representatives Carol F. Relihan Houston, TX 77210-4739
Senior Vice President
Carl Frischling and Secretary CUSTODIAN
Partner
Kramer, Levin, Naftalis & Frankel Jonathan C. Schoolar State Street Bank & Trust
Senior Vice President 225 Franklin Street
Robert H. Graham Boston, MA 02110
President and Chief Executive Officer Melville B. Cox
A I M Management Group Inc. Vice President COUNSEL TO THE FUND
John F. Kroeger Dana R. Sutton Ballard Spahr
Formerly Consultant Vice President and Assistant Treasurer Andrews & Ingersoll
Wendell & Stockel Associates, Inc. 1735 Market Street
P. Michelle Grace Philadelphia, PA 19103
Lewis F. Pennock Assistant Secretary
Attorney COUNSEL TO THE DIRECTORS
David L. Kite
Ian W. Robinson Assistant Secretary Kramer, Levin, Naftalis & Frankel
Consultant; Formerly Executive 919 Third Avenue
Vice President and Nancy L. Martin New York, NY 10022
Chief Financial Officer Assistant Secretary
Bell Atlantic Management DISTRIBUTOR
Services, Inc. Ofelia M. Mayo
Assistant Secretary A I M Distributors, Inc.
Louis S. Sklar 11 Greenway Plaza
Executive Vice President Kathleen J. Pflueger Suite 100
Hines Interests Assistant Secretary Houston, TX 77046
Limited Partnership
Samuel D. Sirko
Assistant Secretary
Stephen I. Winer
Assistant Secretary
Mary J. Benson
Assistant Treasurer
</TABLE>
<PAGE> 24
<TABLE>
<S> <C>
THE AIM FAMILY OF FUNDS--Registered Trademark--
AGGRESSIVE GROWTH
AIM Aggressive Growth Fund*
AIM Capital Development Fund
AIM Constellation Fund
AIM Global Aggressive Growth Fund
GROWTH
[PHOTO OF AIM Blue Chip Fund
11 GREENWAY PLAZA AIM Global Growth Fund
APPEARS HERE] 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
A I M Management Group Inc. has provided leadership in the *AIM Aggressive Growth Fund was closed to new investors on
mutual fund industry since 1976 and managed approximately June 5, 1997. For more complete information about any AIM
$73 billion in assets for more than 3.5 million shareholders, Fund(s), including sales charges and expenses, ask your
including individual investors, corporate clients, and financial financial consultant or securities dealer for a free
institutions as of May 23, 1997. The AIM Family of prospectus(es). Please read the prospectus(es) carefully
Funds--Registered Trademark-- is distributed nationwide, and before you invest or send money.
AIM today ranks among the nation's top 15 mutual fund
companies in assets under management, according to Lipper
Analytical Services, Inc.
[AIM LOGO APPEARS HERE] -----------------
BULK RATE
A I M Distributors, Inc. U.S. POSTAGE
11 Greenway Plaza, Suite 100 PAID
Houston, TX 77046 HOUSTON, TX
Permit No. 1919
-----------------
</TABLE>
