<PAGE> 1
[COVER IMAGE]
AIM
WEINGARTEN FUND
[AIM LOGO APPEARS HERE] SEMIANNUAL REPORT APRIL 30 1999
<PAGE> 2
[COVER ARTWORK]
-------------------------------------
THE VIOLIN BOX BY SUZANNE VALADON
(1865-1938, FRENCH)
IN THE ART OF INVESTING, SUCCESS DOES NOT ALWAYS COME IN
AN INSTANT--IT IS USUALLY ACHIEVED OVER TIME. VALADON'S
UNFORGETTABLE OILS MAKE THIS POINT, OFTEN TAKING 13 YEARS
OF DEDICATION AND DILIGENCE TO COMPLETE. HER RICHLY COL-
ORED "VIOLIN BOX" REMINDS US THAT ALL GOOD THINGS ARE
WORTH THE WAIT.
-------------------------------------
AIM Weingarten Fund is for 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 The Fund's average annual total returns, including sales charges, for
periods ended 3/31/99 (the most recent calendar quarter-end) are as
follows. For Class A shares, one year, 18.91%; five years, 22.12%; 10
years, 17.98%. For Class B shares, one year, 19.85%; since inception
(6/26/95), 23.74%. For Class C shares, one year, 23.82%; since inception
(8/4/97), 23.23%.
o AIM Weingarten Fund performance figures are historical and reflect
reinvestment of all distributions and changes in net asset value.
o When sales charges are included in performance figures, Class A share
performance reflects the maximum 5.50% sales charge, and Class B and Class
C 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 CDSC on Class C shares is 1% for the first year after
purchase. The performance of the Fund's Class B and Class C shares will
differ from that of Class A shares due to differences in sales charge
structure and expenses.
o The Fund's investment return and principal value will fluctuate, so an
investor's shares, when redeemed, may be worth more or less than their
original cost.
ABOUT INDEXES AND OTHER PERFORMANCE BENCHMARKS CITED IN THIS REPORT:
o The Dow Jones Industrial Average (the Dow) is a price-weighted average of
30 actively traded primarily industrial stocks.
o The unmanaged Lipper Growth Funds Index represents an average of the
performance of the 30 largest growth funds charted by Lipper, Inc., an
independent mutual-fund performance monitor. Results shown reflect
reinvestment of dividends.
o The Standard & Poor's Composite Index of 500 Stocks (S&P 500) is a group of
unmanaged securities widely regarded by investors to be representative of
the stock market in general.
o An investment cannot be made in any index listed. Unless otherwise
indicated, index results include reinvested dividends and do not reflect
sales charges.
AN INVESTMENT IN THE FUND IS NOT A DEPOSIT OF A BANK AND IS NOT INSURED OR
GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY
OTHER GOVERNMENT AGENCY. THERE IS A RISK THAT YOU
COULD LOSE SOME OR ALL OF YOUR MONEY.
This report may be distributed only to current shareholders or to persons who
have received a current prospectus of the Fund.
AIM WEINGARTEN FUND
<PAGE> 3
SEMIANNUAL REPORT / CHAIRMAN'S LETTER
Dear Fellow Shareholder:
With only several months remaining in 1999, the question on
[PHOTO OF many of your minds may be, "How will the year 2000 computer
Charles T. issue affect AIM and my investments?" We would like you to
Bauer, feel comfortable.
Chairman of During March and April, AIM participated in an
the Board of industrywide test that gave us a chance to see how our
THE FUND technology systems might be affected by the changeover to
APPEARS HERE] the year 2000 (Y2K). Everything went as well as we had
hoped; in general, the industry sailed through the testing
process with flying colors. The financial industry has been
seen as a leader in planning for year 2000 concerns. Thus,
it was no surprise to most participants that the test was
an overwhelming success.
The general purpose of the process was to test
electronic interfaces among financial industry members in
the United States and to follow transactions through a
typical trading cycle--from order entry to the settlement process. Investment
banks, broker-dealers, custodian banks and mutual-fund companies all worked
together to make this possible. Approximately 400 firms were involved in the
testing; AIM was one of 70 asset managers.
TEST RESULTS EXCELLENT
During the testing process, thousands of transactions were submitted and
approximately 260,000 steps were tested. Of those, only a handful experienced
minor glitches--just 0.02% of the total number of transactions. All problems
were worked through quickly before the hypothetical trades were settled. Of
course, AIM will keep testing and planning throughout 1999 as a precaution.
AIM'S INTERNAL EFFORTS CONTINUE
As you know from our previous communications to you, AIM has been addressing
the year 2000 issue for several years. During 1998, we made substantial
progress on our preparations. We are now in the final phases of the project,
continually testing internal applications and our interfaces with outside
parties. On the investment side, our portfolio-management staff is evaluating
the Y2K preparedness of the companies in which we invest.
We feel that our preparations for 2000 are very comprehensive, and the
industrywide testing showed that our colleagues in the financial industry are
also working hard to be ready for the new year. We do not think shareholders
need to take any extraordinary measures with their investments to prepare for
2000. However, if you have any lingering concerns, it may reassure you to know
that AIM is finalizing contingency plans that will be ready if there are
unexpected problems. Our plans will give AIM employees guidelines to follow for
a wide variety of situations.
For a more comprehensive discussion of our Y2K efforts and for periodic
updates, please visit our Web site, www.aimfunds.com.
We are pleased to send you this report covering your fund's performance
over the last six months. If you have any questions or comments, please contact
our Client Services department at 800-959-4246, or e-mail your inquiry to us at
[email protected]. You can access information about your account through our
AIM Investor Line at 800-246-5463 or at our Web site.
Thank you for your continued participation in The AIM Family of
Funds--Registered Trademark--. We appreciate your business.
Sincerely,
/s/ CHARLES T. BAUER
Charles T. Bauer
Chairman
-------------------------------------
THE FINANCIAL INDUSTRY
HAS BEEN SEEN AS A
LEADER IN PLANNING FOR
YEAR 2000 CONCERNS.
-------------------------------------
PLEASE NOTE THAT THE INFORMATION ABOUT THE YEAR 2000 IN THIS LETTER IS DEEMED
AIM'S YEAR 2000 READINESS DISCLOSURE.
AIM WEINGARTEN FUND
<PAGE> 4
SEMIANNUAL REPORT / MANAGERS' OVERVIEW
AIM WEINGARTEN FUND OUTPACES
BENCHMARK INDEXES
HOW DID THE FUND PERFORM DURING THE REPORTING PERIOD?
For the six-month reporting period ended April 30, 1999, total return for the
Fund's Class A shares was an impressive 29.47%. The Fund's Class B and C shares
returned 29.02% and 28.99%, respectively. These returns are computed at net
asset value, that is, without the effect of sales charges. Fund performance far
outpaced the gains of benchmark indexes. For the same period, the S&P 500
posted a 22.31% gain, while the Lipper Growth Funds Index returned 23.71%.
As AIM Weingarten Fund approaches its 30th anniversary on June 17, it has
much to celebrate. For 1998, the Fund's Class A shares boasted a 33.06% gain,
well above the 28.60% return of the S&P 500 for the same period. Long-term Fund
performance remains excellent. Since inception in 1969 to March 31, 1999, the
Fund's Class A shares have outpaced the formidable benchmark by more than 2.5%,
returning 15.91%, excluding sales charges, vs. the 13.25% average annual total
return by the S&P 500.
The Fund's record relative to its peers also reflects its time-proven
success. For the 20-year period ended April 30, AIM Weingarten Fund was in the
top 7% of its Lipper growth fund category. Net assets under management
increased by 30% during the last six months, for a total of $8.96 billion at
the reporting period's close.
WHAT WERE THE MAJOR TRENDS IN THE FINANCIAL MARKETS DURING THE REPORTING
PERIOD?
At the beginning of the reporting period, the Fund benefited from the "flight
to quality" during last fall's market downturn. Increasing narrowness in the
U.S. financial markets through early 1999 continued the dominance by large-cap
stocks. The Dow closed above 10,000 on March 29, 1999, and surpassed several
other milestones in April.
The beginning of 1999 was not so hospitable for the technology sector.
After the sector's sterling performance in 1998, many investors began to worry
about a bubble developing, especially in high-flying Internet stocks, the
so-called ".com" universe. A sell-off in the technology arena ensued, but the
markets rebounded after first-quarter 1999 earnings reports came in quite
strong.
WHAT CONTRIBUTED TO THE FUND'S STRONG GAINS?
We believe that several factors drove the Fund's stellar performance. One is
scarcity of earnings in the financial markets. In an environment of moderate or
slightly decelerating economic growth, investors put a premium on growth
companies, and growth stocks tend to outperform other types of stocks. Our
overweighting in large-cap stocks, which represented 87% of the Fund's total
net assets at the end of the reporting period, also contributed to the Fund's
strong showing. In addition, since last October, we have reduced the Fund's
total holdings to approximately 90 names, down from 124. Early in 1998, the
Fund had the lion's share of its assets in fast-paced momentum names. However,
when the economy slowed and earnings cooled at mid-year, we culled
approximately a third of our holdings and began
AIM WEINGARTEN FUND VS. BENCHMARK INDEXES
Six-month total returns, excluding sales charges
As of 4/30/99
===============================================================================
[CHART]
CLASS A SHARES 29.47%
CLASS B SHARES 29.02%
CLASS C SHARES 28.99%
S&P500 INDEX 22.31%
LIPPER GROWTH FUNDS INDEX 23.71%
===============================================================================
LIPPER RANKINGS
As of 4/30/99
AIM WEINGARTEN FUND, CLASS A SHARES
===============================================================================
RANK VS. PERCENTILE
PERIOD ALL GROWTH FUNDS RANK
- -------------------------------------------------------------------------------
20 years 6 of 88 7%
10 years 52 of 171 31%
5 years 117 of 391 30%
1 year 249 of 1,035 25%
===============================================================================
Fund percentage rankings are vs. all funds in its category tracked by Lipper,
Inc., excluding sales charges and including fees and expenses.
===============================================================================
GROWTH OF NET ASSETS
As of 4/30/99
===============================================================================
[CHART]
10/31/98 $6.89 BILLION
4/30/99 $8.96 BILLION
===============================================================================
See important Fund and index disclosures inside front cover.
AIM WEINGARTEN FUND
2
<PAGE> 5
SEMIANNUAL REPORT / MANAGERS' OVERVIEW
to focus on stable core stocks in traditional growth sectors, such as
technology and health care.
WHAT ARE THE DIFFERENCES BETWEEN A CORE HOLDING AND A MOMENTUM HOLDING?
A company may qualify for the Fund's portfolio in one of two ways: as a core
holding or as a momentum holding. A core holding is a company that has a very
stable and profitable business model projected to grow by at least 12% over the
next five years. A core holding is expected to outperform over the long term.
On the other hand, a momentum company is one currently enjoying a dramatic
surge in earnings that, while probably not sustainable over the long term,
exceeds the market's near-term growth rate. The Fund combines high-quality core
companies with potentially more explosive momentum stocks in a barbell
strategy.
WHAT TYPE OF TECHNOLOGY COMPANIES DOES THE FUND OWN?
At the reporting period's close, technology holdings accounted for
approximately 36% of the Fund's net assets. The majority of the Fund's
technology holdings are high-quality, dominant brand-name firms. Companies such
as AOL and Cisco Systems continued to do well due to their large size, which
has become a strategic weapon for companies in this sector. Larger technology
companies have more money to spend on research and development, which in turn
drives further technological advancement. In this sector, being small- or
mid-cap may not necessarily be an advantage. Having money to spend on research
and development and the ability to provide global reach to customers have
become the main thrusts behind a technology business's success.
WHAT TYPE OF HEALTH-CARE COMPANIES DO YOU FAVOR?
The Fund's health-care holdings, which accounted for 18.4% of net assets on
April 30, were split among diversified health-care companies, major
pharmaceuticals and medical-equipment makers. Our investment in this sector has
been driven by long-term demographic trends. The aging population needs more
and more health care. Worldwide drug sales are rising at a rate of 8% to 10% a
year, and medical-device sales at 7% annually. In the health-care arena, we are
seeing a continuation of the "size matters" theme. The costs to bring a new
drug to market total in the neighborhood of $1 billion. So bigger firms, such
as Warner-Lambert and Abbott Laboratories, have a clear advantage over their
smaller counterparts. In addition, these larger companies already have a
foothold in the consumer products markets. We believe very strongly in this
sector as a long-term growth vehicle.
WHAT IS YOUR OUTLOOK FOR THE FUTURE?
Four months into 1999, fears of a recession in the United States have faded. In
fact, most economists are betting on continued steady growth, with low
inflation and high employment. International markets have stabilized as
countries slowly get a grip on their economies, leading analysts to believe
that the worst is over. Domestically, interest rates, another key factor
supporting a bullish outlook, are likely to remain quite steady, thanks to the
Federal Reserve Board's watchful guard. To the extent that these factors remain
in place, the investing environment for the Fund continues to be favorable.
PORTFOLIO COMPOSITION
As of 4/30/99, based on total net assets
================================================================================
TOP 10 EQUITY HOLDINGS TOP 10 INDUSTRIES
- --------------------------------------------------------------------------------
1. America Online, Inc. 4.66% 1. Computers 11.00%
(Software & Services)
2. MCI WorldCom, Inc. 4.45 2. Health Care (Diversified) 7.37
3. Freddie Mac 2.45 3. Communications Equipment 6.51
4. International Business 2.34 4. Health Care 6.17
Machines Corp. (Medical Products & Supplies)
5. Tyco International Ltd. 2.22 5. Broadcasting 6.06
(Television, Radio & Cable)
6. Warner-Lambert Co. 2.02 6. Financial (Diversified) 5.32
7. Fannie Mae 1.98 7. Telecommunications 4.45
(Long Distance)
8. Abbott Laboratories 1.97 8. Computer (Hardware) 4.17
9. Time Warner, Inc. 1.95 9. Health Care (Drugs- 3.91
Major Pharmaceuticals)
10. Cisco Systems, Inc. 1.92 10. Retail (Specialty) 3.83
The Fund's portfolio is subject to change, and there is no assurance the Fund
will continue to hold any particular security.
================================================================================
See important Fund and index disclosures inside front cover.
AIM WEINGARTEN FUND
3
<PAGE> 6
SEMIANNUAL REPORT / PERFORMANCE HISTORY
YOUR FUND'S LONG-TERM PERFORMANCE
RESULTS OF A $10,000 INVESTMENT
AIM WEINGARTEN FUND VS. BENCHMARK INDEXES
6/17/69-4/30/99
================================================================================
AVERAGE ANNUAL TOTAL RETURNS
As of 4/30/99, including sales charges
A SHARES
10 Years 17.30%
5 Years 22.00
1 Year 16.54
B SHARES
Since Inception (6/26/95) 23.06%
1 Year 17.35
C SHARES
Since Inception (8/4/97) 21.77%
1 Year 21.38
================================================================================
ABOUT THIS CHART
The chart compares your Fund's Class A shares to benchmark indexes. It is
important to understand the 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, incurring no sales charges, expenses or fees. If
you could buy all the securities that make up a market index, you would incur
expenses that would affect your investment's return. An index of funds such as
the Lipper Growth Funds Index includes a number of mutual funds grouped by
investment objective. Each of those funds interprets that objective dif-
AIM WEINGARTEN FUND
4
<PAGE> 7
SEMIANNUAL REPORT / PERFORMANCE HISTORY
HYPO LINE CHART
- --------------------------------------------------------------------------------
Class A Shares S&P 500 Index Lipper Growth Fund Index
- --------------------------------------------------------------------------------
6/17/69 $9,464.00 $10,000.00 $10,000.00
4/70 $7,573.00 $8,590.21 $8146.79
4/71 $11,339.00 $11,353.46 $11091.14
4/72 $14,447.00 $12,124.30 $13032.41
4/73 $11,601.00 $12,394.42 $11037.84
4/74 $9,841.00 $10,831.84 $9335.25
4/75 $10,381.00 $10,984.28 $9372.99
4/76 $11,406.00 $13,308.18 $10,681.30
4/77 $12,079.00 $13,435.10 $10,532.99
4/78 $16,154.00 $13,910.68 $11,676.43
4/79 $19,864.00 $15,415.93 $13,476.35
4/80 $27,397.00 $17,017.83 $15,597.05
4/81 $43,196.00 $22,348.17 $22,488.50
4/82 $36,874.00 $20,706.26 $19,966.23
4/83 $65,698.00 $30,830.80 $28,638.40
4/84 $57,778.00 $31,367.78 $30,663.75
4/85 $70,350.00 $36,906.53 $28,638.40
4/86 $103,097.00 $50,281.29 $45,073.99
4/87 $127,486.00 $63,608.88 $53,355.84
4/88 $122,010.00 $59,471.80 $50,387.99
4/89 $147,074.00 $73,083.06 $60,558.48
4/90 $170,526.00 $80,771.73 $64,385.73
4/91 $219,296.00 $94,974.66 $75,589.77
4/92 $248,011.00 $108,268.90 $86,098.92
4/93 $249,113.00 $118,253.30 $94,468.50
4/94 $268,438.00 $124,529.98 $103,249.58
4/95 $302,186.00 $146,243.23 $114,597.28
4/96 $395,099.00 $190,385.44 $147,687.09
4/97 $439,732.00 $238,214.38 $168,530.59
4/98 $622,442.00 $336,036.28 $235,637.67
4/99 $767,615.00 $409,387.22 $280,949.63
$767,615
AIM WEINGARTEN FUND, CLASS A SHARES
$409,387
S&P 500 Index
$280,950
LIPPER GROWTH FUNDS INDEX
================================================================================
PAST PERFORMANCE IS NO GUARANTEE OF COMPARABLE FUTURE RESULTS.
Sources: Towers Data Systems HYPO--Registered Trademark--.
================================================================================
ferently, and each employs a different management style and investment
strategy. Use of these indexes is intended to give you a general idea of how
your Fund performed compared to these benchmarks. Please note that performance
figures for the indexes are from 6/30/69 to 4/30/99.
Your Fund's total return includes sales charges, expenses and management fees.
The performance of the Fund's Class B and Class C shares will differ from Class
A shares due to differing fees and expenses. For Fund data performance
calculations and descriptions of indexes cited on this page, please refer to
the inside front cover.
MARKET VOLATILITY CAN SIGNIFICANTLY AFFECT SHORT-TERM PERFORMANCE. RESULTS OF
AN INVESTMENT MADE TODAY MAY DIFFER SUBSTANTIALLY FROM THE HISTORICAL
PERFORMANCE SHOWN.
AIM WEINGARTEN FUND
5
<PAGE> 8
SCHEDULE OF INVESTMENTS
April 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
DOMESTIC COMMON STOCKS-90.83%
BANKS (MONEY CENTER)-0.92%
Chase Manhattan Corp. (The) 1,000,000 $ 82,750,000
- ---------------------------------------------------------------
BANKS (REGIONAL)-0.28%
North Fork Bancorporation, Inc. 1,121,600 25,236,000
- ---------------------------------------------------------------
BROADCASTING (TELEVISION, RADIO & CABLE)-6.06%
AT&T Corp.-Liberty Media
Group(a) 857,300 54,760,038
- ---------------------------------------------------------------
Clear Channel Communications,
Inc.(a) 950,460 66,056,970
- ---------------------------------------------------------------
Comcast Corp.-Class A 1,687,700 110,860,794
- ---------------------------------------------------------------
Cox Communications, Inc.-Class
A(a) 1,141,500 90,606,563
- ---------------------------------------------------------------
Infinity Broadcasting
Corp.-Class A(a) 3,357,000 92,946,937
- ---------------------------------------------------------------
Jacor Communications, Inc.(a) 925,000 74,231,250
- ---------------------------------------------------------------
MediaOne Group, Inc.(a) 650,000 53,015,625
- ---------------------------------------------------------------
542,478,177
- ---------------------------------------------------------------
CHEMICALS (DIVERSIFIED)-0.15%
Monsanto Co. 296,800 13,430,200
- ---------------------------------------------------------------
COMMUNICATIONS EQUIPMENT-3.77%
General Instrument Corp.(a) 578,900 21,129,850
- ---------------------------------------------------------------
Lucent Technologies, Inc. 1,802,500 108,375,313
- ---------------------------------------------------------------
Motorola, Inc. 2,038,500 163,334,812
- ---------------------------------------------------------------
QUALCOMM, Inc.(a) 222,500 44,500,000
- ---------------------------------------------------------------
337,339,975
- ---------------------------------------------------------------
COMPUTERS (HARDWARE)-4.17%
International Business Machines
Corp. 1,000,000 209,187,500
- ---------------------------------------------------------------
Sun Microsystems, Inc.(a) 2,750,000 164,484,375
- ---------------------------------------------------------------
373,671,875
- ---------------------------------------------------------------
COMPUTERS (NETWORKING)-3.39%
Ascend Communications, Inc.(a) 1,369,000 132,279,625
- ---------------------------------------------------------------
Cisco Systems, Inc.(a) 1,504,900 171,652,656
- ---------------------------------------------------------------
303,932,281
- ---------------------------------------------------------------
COMPUTERS (PERIPHERALS)-1.42%
EMC Corp.(a) 600,000 65,362,500
- ---------------------------------------------------------------
Lexmark International Group,
Inc.(a) 500,000 61,750,000
- ---------------------------------------------------------------
127,112,500
- ---------------------------------------------------------------
COMPUTERS (SOFTWARE & SERVICES)-11.00%
America Online, Inc. 2,925,000 417,543,750
- ---------------------------------------------------------------
Citrix Systems, Inc.(a) 1,303,200 55,386,000
- ---------------------------------------------------------------
Compuware Corp.(a) 2,000,000 48,750,000
- ---------------------------------------------------------------
Microsoft Corp.(a) 1,700,000 138,231,250
- ---------------------------------------------------------------
Oracle Corp.(a) 2,001,500 54,165,594
- ---------------------------------------------------------------
Unisys Corp.(a) 5,000,000 157,187,500
- ---------------------------------------------------------------
Yahoo! Inc.(a) 650,000 $ 113,546,875
- ---------------------------------------------------------------
984,810,969
- ---------------------------------------------------------------
CONSUMER FINANCE-0.91%
Capital One Financial Corp. 169,200 29,387,925
- ---------------------------------------------------------------
Providian Financial Corp. 400,000 51,625,000
- ---------------------------------------------------------------
81,012,925
- ---------------------------------------------------------------
DISTRIBUTORS (FOOD & HEALTH)-0.44%
AmeriSource Health Corp.-Class
A(a) 1,433,800 39,698,337
- ---------------------------------------------------------------
ELECTRICAL EQUIPMENT-1.15%
Sanmina Corp.(a) 1,063,000 70,556,625
- ---------------------------------------------------------------
Symbol Technologies, Inc. 678,300 32,388,825
- ---------------------------------------------------------------
102,945,450
- ---------------------------------------------------------------
ELECTRONICS (SEMICONDUCTORS)-3.23%
Analog Devices, Inc.(a) 1,350,000 47,418,750
- ---------------------------------------------------------------
Intel Corp. 750,000 45,890,625
- ---------------------------------------------------------------
LSI Logic Corp.(a) 382,900 13,018,600
- ---------------------------------------------------------------
Texas Instruments, Inc. 900,000 91,912,500
- ---------------------------------------------------------------
Xilinx, Inc.(a) 2,000,000 91,250,000
- ---------------------------------------------------------------
289,490,475
- ---------------------------------------------------------------
ENTERTAINMENT-1.95%
Time Warner, Inc. 2,500,000 175,000,000
- ---------------------------------------------------------------
EQUIPMENT (SEMICONDUCTOR)-0.30%
Teradyne, Inc.(a) 571,900 26,986,531
- ---------------------------------------------------------------
FINANCIAL (DIVERSIFIED)-5.32%
American Express Co. 610,500 79,784,719
- ---------------------------------------------------------------
Fannie Mae 2,500,000 177,343,750
- ---------------------------------------------------------------
Freddie Mac 3,500,000 219,625,000
- ---------------------------------------------------------------
476,753,469
- ---------------------------------------------------------------
HEALTH CARE (DIVERSIFIED)-7.37%
Abbott Laboratories 3,650,000 176,796,875
- ---------------------------------------------------------------
American Home Products Corp. 1,322,300 80,660,300
- ---------------------------------------------------------------
Bristol-Myers Squibb Co. 1,248,600 79,364,137
- ---------------------------------------------------------------
Johnson & Johnson 1,461,900 142,535,250
- ---------------------------------------------------------------
Warner-Lambert Co. 2,661,000 180,781,687
- ---------------------------------------------------------------
660,138,249
- ---------------------------------------------------------------
HEALTH CARE (DRUGS-GENERIC & OTHER)-0.32%
Watson Pharmaceuticals, Inc.(a) 700,000 28,350,000
- ---------------------------------------------------------------
HEALTH CARE (DRUGS-MAJOR PHARMACEUTICALS)-3.91%
Lilly (Eli) & Co. 1,600,000 117,800,000
- ---------------------------------------------------------------
Pfizer, Inc. 525,000 60,407,813
- ---------------------------------------------------------------
</TABLE>
6
<PAGE> 9
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
HEALTH CARE (DRUGS-MAJOR PHARMACEUTICALS)-(CONTINUED)
Pharmacia & Upjohn, Inc. 2,042,700 $ 114,391,200
- ---------------------------------------------------------------
Schering-Plough Corp. 1,200,000 57,975,000
- ---------------------------------------------------------------
350,574,013
- ---------------------------------------------------------------
HEALTH CARE (MEDICAL PRODUCTS & SUPPLIES)-6.17%
Bausch & Lomb, Inc. 933,100 69,982,500
- ---------------------------------------------------------------
Baxter International, Inc. 925,000 58,275,000
- ---------------------------------------------------------------
Becton, Dickinson & Co. 3,525,000 131,085,938
- ---------------------------------------------------------------
Boston Scientific Corp.(a) 1,075,500 45,775,969
- ---------------------------------------------------------------
Guidant Corp. 1,924,100 103,300,119
- ---------------------------------------------------------------
Medtronic, Inc. 2,000,000 143,875,000
- ---------------------------------------------------------------
552,294,526
- ---------------------------------------------------------------
INSURANCE (MULTI-LINE)-1.75%
American International Group,
Inc. 1,334,625 156,735,023
- ---------------------------------------------------------------
LODGING-HOTELS-0.88%
Carnival Corp. 1,902,800 78,490,500
- ---------------------------------------------------------------
MANUFACTURING (DIVERSIFIED)-3.31%
Tyco International Ltd. 2,442,830 198,479,938
- ---------------------------------------------------------------
United Technologies Corp. 675,000 97,790,625
- ---------------------------------------------------------------
296,270,563
- ---------------------------------------------------------------
NATURAL GAS-0.50%
Enron Corp. 600,000 45,150,000
- ---------------------------------------------------------------
RETAIL (BUILDING SUPPLIES)-2.89%
Home Depot, Inc. (The) 1,900,000 113,881,250
- ---------------------------------------------------------------
Lowe's Companies, Inc. 2,750,000 145,062,500
- ---------------------------------------------------------------
258,943,750
- ---------------------------------------------------------------
RETAIL (COMPUTERS & ELECTRONICS)-1.32%
Best Buy Co., Inc.(a) 1,340,000 63,985,000
- ---------------------------------------------------------------
Tandy Corp. 750,000 54,328,125
- ---------------------------------------------------------------
118,313,125
- ---------------------------------------------------------------
RETAIL (DISCOUNTERS)-0.60%
Dollar Tree Stores, Inc.(a) 1,465,000 53,472,500
- ---------------------------------------------------------------
RETAIL (FOOD CHAINS)-1.50%
Kroger Co.(a) 1,727,500 93,824,844
- ---------------------------------------------------------------
Safeway, Inc.(a) 750,000 40,453,125
- ---------------------------------------------------------------
134,277,969
- ---------------------------------------------------------------
RETAIL (GENERAL MERCHANDISE)-1.63%
Dayton Hudson Corp. 1,000,000 67,312,500
- ---------------------------------------------------------------
Fred Meyer, Inc.(a) 272,500 14,749,063
- ---------------------------------------------------------------
Wal-Mart Stores, Inc. 1,396,800 64,252,800
- ---------------------------------------------------------------
146,314,363
- ---------------------------------------------------------------
RETAIL (SPECIALTY)-3.83%
Amazon.com, Inc.(a) 498,600 85,790,363
- ---------------------------------------------------------------
Office Depot, Inc.(a) 6,370,050 $ 140,141,100
- ---------------------------------------------------------------
Staples, Inc.(a) 2,965,400 88,962,000
- ---------------------------------------------------------------
Tiffany & Co. 329,500 27,678,000
- ---------------------------------------------------------------
342,571,463
- ---------------------------------------------------------------
RETAIL (SPECIALTY-APPAREL)-1.88%
Abercrombie & Fitch Co.-Class
A(a) 701,700 66,749,212
- ---------------------------------------------------------------
Gap, Inc. (The) 446,050 29,690,203
- ---------------------------------------------------------------
Intimate Brands, Inc. 1,436,400 71,820,000
- ---------------------------------------------------------------
168,259,415
- ---------------------------------------------------------------
SERVICES (ADVERTISING/MARKETING)-1.36%
Outdoor Systems, Inc.(a) 4,821,525 121,442,161
- ---------------------------------------------------------------
SERVICES (DATA PROCESSING)-2.70%
Affiliated Computer Services,
Inc.(a) 896,100 34,275,825
- ---------------------------------------------------------------
Ceridian Corp.(a) 1,290,000 47,246,250
- ---------------------------------------------------------------
CSG Systems International,
Inc.(a) 1,455,800 56,230,275
- ---------------------------------------------------------------
First Data Corp. 1,500,000 63,656,250
- ---------------------------------------------------------------
Fiserv, Inc.(a) 690,600 40,443,263
- ---------------------------------------------------------------
241,851,863
- ---------------------------------------------------------------
TELECOMMUNICATIONS (LONG DISTANCE)-4.45%
MCI WorldCom, Inc.(a) 4,849,800 398,592,937
- ---------------------------------------------------------------
Total Domestic Common
Stocks (Cost
$5,571,719,342) 8,134,691,584
- ---------------------------------------------------------------
FOREIGN STOCKS & OTHER EQUITY INTERESTS-5.11%
CANADA-1.30%
Northern Telecom Ltd.-ADR
(Communications Equipment) 1,700,000 115,918,750
- ---------------------------------------------------------------
FINLAND-1.44%
Nokia Oyj (Communications
Equipment) 324,800 25,034,064
- ---------------------------------------------------------------
Nokia Oyj A.B.-Class A-ADR
(Communications Equipment) 1,400,000 103,862,500
- ---------------------------------------------------------------
128,896,564
- ---------------------------------------------------------------
IRELAND-0.60%
Elan Corp. PLC-ADR (Health
Care-Drugs-Generic &
Other)(a) 1,043,300 53,729,950
- ---------------------------------------------------------------
NETHERLANDS-1.77%
Koninklijke (Royal) Philips
Electronics N.V. (Electrical
Equipment) 769,000 65,653,375
- ---------------------------------------------------------------
Philips Electronics N.V.
(Household Furniture &
Appliances) 1,081,000 93,083,639
- ---------------------------------------------------------------
158,737,014
- ---------------------------------------------------------------
Total Foreign Stocks &
Other Equity Interests
(Cost $400,758,187) 457,282,278
- ---------------------------------------------------------------
</TABLE>
7
<PAGE> 10
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
<S> <C> <C>
REPURCHASE AGREEMENT-3.88%(B)
Goldman, Sachs & Co., 4.94%,
05/03/99 (Cost
$347,244,869)(c) $347,244,869 $ 347,244,869
- ---------------------------------------------------------------
TOTAL INVESTMENTS-99.82% 8,939,218,731
- ---------------------------------------------------------------
OTHER ASSETS LESS
LIABILITIES-0.18% 16,464,806
- ---------------------------------------------------------------
TOTAL NET ASSETS-100.00% $8,955,683,537
===============================================================
</TABLE>
Abbreviation:
ADR - American Depositary Receipt
Notes to Schedule of Investments:
(a) Non-income producing security.
(b) Collateral on repurchase agreements, including the Fund's pro-rata interest
in joint repurchase agreements, is taken into possession by the Fund upon
entering into the repurchase agreement. The collateral is marked to market
daily to ensure its market value is at least 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.
(c) Joint repurchase agreement entered into 04/30/99 with a maturing value of
$400,164,667. Collateralized by $407,564,858 U.S. Government obligations,
5.00% to 8.00% due 07/01/03 to 05/01/29 with an aggregate market value at
04/30/99 of $408,000,001.
See Notes to Financial Statements.
8
<PAGE> 11
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1999
(UNAUDITED)
<TABLE>
<S> <C>
ASSETS:
Investments, at market value (cost
$6,319,722,398) $8,939,218,731
- --------------------------------------------------------
Receivables for:
Investments sold 180,240,937
- --------------------------------------------------------
Capital stock sold 15,917,032
- --------------------------------------------------------
Dividends and interest 4,648,237
- --------------------------------------------------------
Investment for deferred compensation
plan 115,648
- --------------------------------------------------------
Other assets 198,706
- --------------------------------------------------------
Total assets 9,140,339,291
- --------------------------------------------------------
LIABILITIES:
Payables for:
Investments purchased 162,360,014
- --------------------------------------------------------
Capital stock reacquired 12,268,301
- --------------------------------------------------------
Deferred compensation 115,648
- --------------------------------------------------------
Accrued advisory fees 4,327,628
- --------------------------------------------------------
Accrued administrative services fees 19,288
- --------------------------------------------------------
Accrued directors' fees 13,350
- --------------------------------------------------------
Accrued distribution fees 3,727,923
- --------------------------------------------------------
Accrued transfer agent fees 800,535
- --------------------------------------------------------
Accrued operating expenses 1,023,067
- --------------------------------------------------------
Total liabilities 184,655,754
- --------------------------------------------------------
Net assets applicable to shares
outstanding $8,955,683,537
- --------------------------------------------------------
NET ASSETS:
Class A $7,717,881,519
========================================================
Class B $1,072,717,717
========================================================
Class C $ 61,899,473
========================================================
Institutional Class $ 103,184,828
========================================================
CAPITAL STOCK, $0.001 PAR VALUE PER SHARE:
Class A:
Authorized 750,000,000
- --------------------------------------------------------
Outstanding 291,850,405
========================================================
Class B:
Authorized 750,000,000
- --------------------------------------------------------
Outstanding 41,915,873
========================================================
Class C:
Authorized 750,000,000
- --------------------------------------------------------
Outstanding 2,417,284
========================================================
Institutional Class:
Authorized 200,000,000
- --------------------------------------------------------
Outstanding 3,821,833
========================================================
Class A:
Net asset value and redemption price
per share $ 26.44
- --------------------------------------------------------
Offering price per share:
(Net asset value of $26.44
divided by 94.50%) $ 27.98
========================================================
Class B:
Net asset value and offering price per
share $ 25.59
========================================================
Class C:
Net asset value and offering price per
share $ 25.61
========================================================
Institutional Class:
Net asset value, offering and
redemption price per share $ 27.00
========================================================
</TABLE>
See Notes to Financial Statements.
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED APRIL 30, 1999
(UNAUDITED)
<TABLE>
<S> <C>
INVESTMENT INCOME:
Dividends (net of $538,610 foreign
withholding tax) $ 19,684,424
- ----------------------------------------------------------
Interest 10,253,425
- ----------------------------------------------------------
Total investment income 29,937,849
- ----------------------------------------------------------
EXPENSES:
Advisory fees 25,796,512
- ----------------------------------------------------------
Administrative services fees 109,744
- ----------------------------------------------------------
Custodian fees 290,748
- ----------------------------------------------------------
Directors' fees 33,673
- ----------------------------------------------------------
Distribution fees-Class A 10,721,830
- ----------------------------------------------------------
Distribution fees-Class B 4,489,959
- ----------------------------------------------------------
Distribution fees-Class C 185,840
- ----------------------------------------------------------
Transfer agent fees-Class A 4,027,404
- ----------------------------------------------------------
Transfer agent fees-Class B 894,615
- ----------------------------------------------------------
Transfer agent fees-Class C 46,974
- ----------------------------------------------------------
Transfer agent fees-Institutional Class 4,664
- ----------------------------------------------------------
Other 1,278,205
- ----------------------------------------------------------
Total expenses 47,880,168
- ----------------------------------------------------------
Less: Fees waived by advisor (1,949,330)
- ----------------------------------------------------------
Expenses paid indirectly (74,354)
- ----------------------------------------------------------
Net expenses 45,856,484
- ----------------------------------------------------------
Net investment income (loss) (15,918,635)
- ----------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) FROM
INVESTMENT SECURITIES, FOREIGN
CURRENCIES, FUTURES AND OPTION
CONTRACTS:
Net realized gain (loss) from:
Investment securities 1,160,662,484
- ----------------------------------------------------------
Foreign currencies (4,495,922)
- ----------------------------------------------------------
Futures contracts 10,089,965
- ----------------------------------------------------------
Option contracts purchased (3,914,290)
- ----------------------------------------------------------
Option contracts written (29,103,796)
- ----------------------------------------------------------
1,133,238,441
- ----------------------------------------------------------
Net unrealized appreciation (depreciation)
of:
Investment securities 911,257,020
- ----------------------------------------------------------
Foreign currencies (12,453)
- ----------------------------------------------------------
Futures contracts (6,756,866)
- ----------------------------------------------------------
Option contracts purchased (3,182,585)
- ----------------------------------------------------------
Option contracts written (7,126,569)
- ----------------------------------------------------------
894,178,547
- ----------------------------------------------------------
Net gain from investment securities,
foreign currencies, futures and option
contracts 2,027,416,988
- ----------------------------------------------------------
Net increase in net assets resulting from
operations $2,011,498,353
==========================================================
</TABLE>
9
<PAGE> 12
STATEMENT OF CHANGES IN NET ASSETS
For the six months ended April 30, 1999 and the year ended October 31, 1998
(Unaudited)
<TABLE>
<CAPTION>
APRIL 30, OCTOBER 31,
1999 1998
-------------- --------------
<S> <C> <C>
OPERATIONS:
Net investment income (loss) $ (15,918,635) $ 89,216
- ----------------------------------------------------------------------------------------------
Net realized gain from investment securities, foreign
currencies, futures and option contracts 1,133,238,441 514,276,104
- ----------------------------------------------------------------------------------------------
Net unrealized appreciation of investment securities,
foreign currencies, futures and option contracts 894,178,547 255,708,695
- ----------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 2,011,498,353 770,074,015
- ----------------------------------------------------------------------------------------------
Distributions to shareholders from net investment income:
Class A (3,891,948) --
- ----------------------------------------------------------------------------------------------
Institutional Class (345,675) --
- ----------------------------------------------------------------------------------------------
Distributions to shareholders from net realized gains:
Class A (405,150,816) (864,947,763)
- ----------------------------------------------------------------------------------------------
Class B (49,729,963) (76,736,323)
- ----------------------------------------------------------------------------------------------
Class C (1,700,579) (626,936)
- ----------------------------------------------------------------------------------------------
Institutional Class (4,840,109) (9,231,714)
- ----------------------------------------------------------------------------------------------
Share transactions-net:
Class A 260,991,725 442,079,076
- ----------------------------------------------------------------------------------------------
Class B 206,395,649 240,674,117
- ----------------------------------------------------------------------------------------------
Class C 33,103,395 21,194,188
- ----------------------------------------------------------------------------------------------
Institutional Class 13,434,732 12,302,794
- ----------------------------------------------------------------------------------------------
Net increase in net assets 2,059,764,764 534,781,454
- ----------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 6,895,918,773 6,361,137,319
- ----------------------------------------------------------------------------------------------
End of period $8,955,683,537 $6,895,918,773
==============================================================================================
NET ASSETS CONSIST OF:
Capital (par value and additional paid-in) $5,196,302,992 $4,682,377,491
- ----------------------------------------------------------------------------------------------
Undistributed net investment income (loss) (16,121,519) 4,034,739
- ----------------------------------------------------------------------------------------------
Undistributed net realized gain from investment
securities, foreign currencies, futures and option
contracts 1,156,055,229 484,238,255
- ----------------------------------------------------------------------------------------------
Unrealized appreciation of investment securities, foreign
currencies, futures and option contracts 2,619,446,835 1,725,268,288
- ----------------------------------------------------------------------------------------------
$8,955,683,537 $6,895,918,773
==============================================================================================
</TABLE>
See Notes to Financial Statements.
10
<PAGE> 13
NOTES TO FINANCIAL STATEMENTS
APRIL 30, 1999
(UNAUDITED)
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES
AIM Weingarten Fund (the "Fund") is a series portfolio of AIM Equity Funds, Inc.
(the "Company"). The Company is a Maryland corporation registered under the
Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end
series management investment company consisting of nine separate portfolios. The
Fund currently offers four different classes of shares: Class A shares, Class B
shares, Class C shares and the Institutional Class. Class A shares are sold with
a front-end sales charge. Class B shares and Class C shares are sold with a
contingent deferred sales charge. Matters affecting each portfolio or class will
be voted on exclusively by the shareholders of such portfolio or class. The
assets, liabilities and operations of each portfolio are accounted for
separately. Information presented in these financial statements pertains only to
the Fund. The Fund's investment objective is to seek growth of capital.
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenses during
the reporting period. Actual results could differ from those estimates. The
following is a summary of significant accounting policies followed by the Fund
in the preparation of its financial statements.
A. Security Valuations--A security listed or traded on an exchange (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 closing bid price 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 closing bid price. Debt obligations (including
convertible bonds) are valued on the basis of prices provided by an
independent pricing service. Prices provided by the pricing service may be
determined without exclusive reliance on quoted prices, and may reflect
appropriate factors such as yield, type of issue, coupon rate 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 would 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
market 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. The
Fund does not separately account for that portion of the results of
operations resulting from changes in foreign exchange rates on investments
and the fluctuations arising from changes in market prices of securities
held. Such fluctuations are included with the net realized and unrealized
gain or loss from investments.
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 foreign currency contract to attempt to
minimize the risk to the Fund from adverse changes in the relationship
between currencies. The Fund may enter into a foreign 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 contracts are open, changes in the
value of the contracts are recognized as unrealized gains or losses by
"marking to market" on a daily basis to reflect the market value of the
contracts at the end of each day's trading. Variation margin payments are
made or received depending upon whether unrealized gains or losses are
incurred. When the contracts are closed, the Fund recognizes a realized gain
or loss equal to the difference between the proceeds from, or cost of, the
closing transaction and the Fund's basis in the contract. Risks include the
possibility of an illiquid market and that the change in the value of the
contracts may not correlate with changes in the value of 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
11
<PAGE> 14
a covered call option, an amount equal to the premium received by the Fund
is recorded as an asset and an equivalent liability. The amount of the
liability is subsequently "marked-to-market" to reflect the current market
value of the option written. The current market value of a written option is
the 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 and are paid annually.
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 among the
classes.
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 contractually 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 contractual and may not be
terminated without approval by the Board of Directors of the Company. During the
six months ended April 30, 1999, AIM waived fees of $1,949,330. 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,
1999, AIM was reimbursed $109,744 for such services.
The Fund, pursuant to a transfer agent and service agreement, has agreed to
pay A I M Fund Services, Inc. ("AFS") a fee for providing transfer agency and
shareholder services to the Fund. During the six months ended April 30, 1999,
AFS was paid $2,719,811 for such services.
The Company has entered into master distribution agreements with A I M
Distributors, Inc. ("AIM Distributors") to serve as the distributor for the
Class A, Class B and Class C shares of the Fund. The Company has adopted
distribution plans pursuant to Rule 12b-1 under the 1940 Act with respect to the
Fund's Class A shares and Class C shares (the "Class A and C Plan"), and the
Fund's Class B shares (the "Class B Plan")(collectively, the "Plans"). The Fund,
pursuant to the Class A and C Plan, pays AIM Distributors compensation at an
annual rate of 0.30% of the average daily net assets of the Class A shares and
1.00% of the average daily net assets of Class C shares. 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 of the Class B shares. Of these amounts, the
Fund may pay a service fee of 0.25% of the
12
<PAGE> 15
average daily net assets of the Class A, Class B or C shares to selected dealers
and financial institutions who furnish continuing personal shareholder services
to their customers who purchase and own the appropriate class of shares of the
Fund. Any amounts not paid as a service fee under the 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. During the six months ended April 30, 1999, the Class A, Class B and
Class C shares paid AIM Distributors $10,721,830, $4,489,959, and $185,840,
respectively, as compensation under the Plans.
AIM Distributors received commissions of $1,081,813 from sales of the Class
A shares of the Fund during the six months ended April 30, 1999. 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, 1999, AIM Distributors received commissions of $118,545 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 and FMC.
During the six months ended April 30, 1999, the Fund paid legal fees of
$7,269 for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel
to the Company's directors. A member of that firm is a director of the Company.
NOTE 3-INDIRECT EXPENSES
During the six months ended April 30, 1999, the Fund received reductions in
transfer agency fees from AFS (an affiliate of AIM) and reductions in custodian
fees of $53,442 and $20,912, respectively, under expense offset arrangements.
The effect of the above arrangements resulted in a reduction of the Fund's total
expenses of $74,354 during the six months ended April 30, 1999.
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) $1,000,000,000 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. During the six
months ended April 30, 1999, 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 0.05% 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-INVESTMENT SECURITIES
The aggregate amount of investment securities (other than short-term securities)
purchased and sold during the six months ended April 30, 1999 was $5,976,000,039
and $5,810,462,211, respectively.
The amount of unrealized appreciation (depreciation) of investment
securities, on a tax basis, as of April 30, 1999 is as follows:
<TABLE>
<S> <C>
Aggregate unrealized appreciation of
investment securities $2,631,418,154
- ----------------------------------------------------------
Aggregate unrealized (depreciation) of
investment securities (32,728,604)
- ----------------------------------------------------------
Net unrealized appreciation of investment
securities $2,598,689,550
==========================================================
</TABLE>
Cost of investments for tax purposes is $6,340,529,181.
13
<PAGE> 16
NOTE 7-CALL OPTION CONTRACTS
Transactions in call options written during the six months ended April 30, 1999
are summarized as follows:
<TABLE>
<CAPTION>
CALL OPTION CONTRACTS
-------------------------
NUMBER OF PREMIUMS
CONTRACTS RECEIVED
--------- ------------
<S> <C> <C>
Beginning of period 79,608 $ 44,508,416
- ------------------------------------------------------ -------- ------------
Written 16,655 15,409,447
- ------------------------------------------------------ -------- ------------
Closed (42,149) (32,128,190)
- ------------------------------------------------------ -------- ------------
Exercised (7,902) (3,522,927)
- ------------------------------------------------------ -------- ------------
Expired (46,212) (24,266,746)
- ------------------------------------------------------ -------- ------------
End of period 0 $ 0
====================================================== ======== ============
</TABLE>
NOTE 8-PUT OPTIONS PURCHASED
Transactions in put options purchased during the six months ended April 30, 1999
are summarized as follows:
<TABLE>
<CAPTION>
PUT OPTION CONTRACTS
-------------------------
NUMBER OF PREMIUMS
CONTRACTS PAID
--------- ------------
<S> <C> <C>
Beginning of period 9,625 $ 3,914,290
- ------------------------------------------------------ -------- ------------
Expired (9,625) (3,914,290)
- ------------------------------------------------------ -------- ------------
End of period 0 $ 0
====================================================== ======== ============
</TABLE>
NOTE 9-CAPITAL STOCK
Changes in the capital stock outstanding during six months ended April 30, 1999
and the year ended October 31, 1998 were as follows:
<TABLE>
<CAPTION>
APRIL 30, 1999 OCTOBER 31, 1998
---------------------------- ------------------------------
SHARES AMOUNT SHARES AMOUNT
----------- ------------- ----------- ---------------
<S> <C> <C> <C> <C>
Sold:
Class A 26,149,014 $ 655,880,167 62,788,326 $ 1,368,867,407
- ----------------------------------------------------------------------------------------------------------------------------
Class B 9,565,647 236,334,175 12,056,594 257,385,548
- ----------------------------------------------------------------------------------------------------------------------------
Class C 1,596,692 39,831,471 1,204,025 25,772,311
- ----------------------------------------------------------------------------------------------------------------------------
Institutional Class 524,593 13,566,195 593,328 13,533,791
- ----------------------------------------------------------------------------------------------------------------------------
Issued as a reinvestment of dividends:
Class A 16,540,579 383,079,336 41,795,514 813,441,370
- ----------------------------------------------------------------------------------------------------------------------------
Class B 2,102,818 47,272,428 3,831,332 73,061,374
- ----------------------------------------------------------------------------------------------------------------------------
Class C 71,202 1,602,038 31,251 600,022
- ----------------------------------------------------------------------------------------------------------------------------
Institutional Class 217,868 5,146,039 456,144 9,035,386
- ----------------------------------------------------------------------------------------------------------------------------
Reacquired:
Class A (31,482,870) (777,967,778) (79,734,776) (1,740,229,701)
- ----------------------------------------------------------------------------------------------------------------------------
Class B (3,168,749) (77,210,954) (4,228,997) (89,772,805)
- ----------------------------------------------------------------------------------------------------------------------------
Class C (343,916) (8,330,114) (246,074) (5,178,145)
- ----------------------------------------------------------------------------------------------------------------------------
Institutional Class (206,548) (5,277,502) (458,838) (10,266,383)
- ----------------------------------------------------------------------------------------------------------------------------
21,566,330 $ 513,925,501 38,087,829 $ 716,250,175
============================================================================================================================
</TABLE>
14
<PAGE> 17
NOTE 10-FINANCIAL HIGHLIGHTS
Shown below are the financial highlights for a share of Class A capital stock
outstanding during the six months ended April 30, 1999, and each of the years in
the five-year period ended October 31, 1998, for a share of Class B capital
stock outstanding during the six months ended April 30, 1999, each of the years
in the three-year period ended October 31, 1998 and the period June 26, 1995
(date sales commenced) through October 31, 1995, and for a share of Class C
capital stock outstanding during the six months ended April 30, 1999, the year
ended October 31, 1998 and the period August 4, 1997 (date sales commenced)
through October 31, 1997.
<TABLE>
<CAPTION>
CLASS A
--------------------------------------------------------------------------------
OCTOBER 31,
APRIL 30, ------------------------------------------------------------------
1999 1998 1997 1996 1995 1994
---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 21.72 $ 22.72 $ 20.19 $ 20.33 $ 17.82 $ 17.62
- ----------------------------------------------- ---------- ---------- ---------- ---------- ---------- ----------
Income from investment operations:
Net investment income (loss) (0.04) 0.02 0.01 0.06 -- 0.07
- ----------------------------------------------- ---------- ---------- ---------- ---------- ---------- ----------
Net gains on securities (both realized and
unrealized) 6.23 2.38 4.82 2.51 4.36 0.57
- ----------------------------------------------- ---------- ---------- ---------- ---------- ---------- ----------
Total from investment operations 6.19 2.40 4.83 2.57 4.36 0.64
- ----------------------------------------------- ---------- ---------- ---------- ---------- ---------- ----------
Less distributions:
Dividends from net investment income (0.01) -- (0.06) -- (0.07) (0.11)
- ----------------------------------------------- ---------- ---------- ---------- ---------- ---------- ----------
Distributions from net realized gains (1.46) (3.40) (2.24) (2.71) (1.78) (0.33)
- ----------------------------------------------- ---------- ---------- ---------- ---------- ---------- ----------
Total distributions (1.47) (3.40) (2.30) (2.71) (1.85) (0.44)
- ----------------------------------------------- ---------- ---------- ---------- ---------- ---------- ----------
Net asset value, end of period $ 26.44 $ 21.72 $ 22.72 $ 20.19 $ 20.33 $ 17.82
=============================================== ========== ========== ========== ========== ========== ==========
Total return(a) 29.47% 12.34% 26.83% 14.81% 28.20% 3.76%
=============================================== ========== ========== ========== ========== ========== ==========
Ratios/supplemental data:
Net assets, end of period (000s omitted) $7,717,882 $6,094,178 $5,810,582 $4,977,493 $4,564,730 $3,965,858
=============================================== ========== ========== ========== ========== ========== ==========
Ratio of expenses to average net assets(b) 1.04%(c) 1.04% 1.07% 1.12% 1.17% 1.21%
=============================================== ========== ========== ========== ========== ========== ==========
Ratio of net investment income (loss) to
average net assets(d) (0.31)%(c) 0.07% 0.07% 0.33% (0.02)% 0.45%
=============================================== ========== ========== ========== ========== ========== ==========
Portfolio turnover rate 75% 125% 128% 159% 139% 136%
=============================================== ========== ========== ========== ========== ========== ==========
</TABLE>
(a) Does not deduct sales charges and are not annualized for periods less than
one year.
(b) After fee waivers and/or expense reimbursements. Ratios of expenses to
average net assets prior to fee waivers and/or expense reimbursements were
1.09% (annualized), 1.09%, 1.11%, 1.15%, 1.19% and 1.24% for 1999-1994.
(c) Ratios are annualized and based on average net assets of $7,207,123,369.
(d) After fee waivers and/or expense reimbursements. Ratios of net investment
income (loss) to average net assets prior to fee waivers and/or expense
reimbursements were (0.36)% (annualized), 0.02%, 0.03%, 0.30%, (0.04)% and
0.42% for 1999-1994.
(e) Averages computed on a daily basis.
15
<PAGE> 18
NOTE 10-FINANCIAL HIGHLIGHTS-continued
<TABLE>
<CAPTION>
CLASS B CLASS C
------------------------------------------------------------ -----------------------------------
OCTOBER 31, OCTOBER 31,
APRIL 30, ---------------------------------------------- APRIL 30, ----------------------
1999 1998 1997 1996 1995 1999 1998 1997
---------- -------- -------- -------- ---------- --------- ----------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning
of period $ 21.12 $ 22.34 $ 19.98 $ 20.28 $ 18.56 $ 21.14 $ 22.34 $ 22.83
- --------------------------- ---------- -------- -------- -------- ------- ------- ------- -------
Income from investment
operations:
Net investment income
(loss) (0.13) (0.15)(a) (0.15)(a) (0.05)(a) (0.03) (0.13)(a) (0.15)(a) (0.04)(a)
- --------------------------- ---------- -------- -------- -------- ------- ------- ------- -------
Net gains (losses) on
securities (both
realized and
unrealized) 6.06 2.33 4.75 2.46 1.75 6.06 2.35 (0.45)
- --------------------------- ---------- -------- -------- -------- ------- ------- ------- -------
Total from investment
operations 5.93 2.18 4.60 2.41 1.72 5.93 2.20 (0.49)
- --------------------------- ---------- -------- -------- -------- ------- ------- ------- -------
Distributions from net
realized gains (1.46) (3.40) (2.24) (2.71) -- (1.46) (3.40) --
- --------------------------- ---------- -------- -------- -------- ------- ------- ------- -------
Net asset value, end of
period $ 25.59 $ 21.12 $ 22.34 $ 19.98 $ 20.28 $ 25.61 $ 21.14 $ 22.34
=========================== ========== ======== ======== ======== ======= ======= ======= =======
Total return(b) 29.02% 11.45% 25.78% 13.95% 9.27% 28.99% 11.54% (2.15)%
=========================== ========== ======== ======== ======== ======= ======= ======= =======
Ratios/supplemental data:
Net assets, end of period
(000's omitted) $1,072,718 $705,750 $486,105 $267,459 $42,238 $61,899 $23,107 $ 2,326
=========================== ========== ======== ======== ======== ======= ======= ======= =======
Ratio of expenses to
average net assets(c) 1.82%(d) 1.83% 1.87% 1.95% 1.91%(e) 1.82%(d) 1.83% 1.84%(e)
=========================== ========== ======== ======== ======== ======= ======= ======= =======
Ratio of net investment
income (loss) to average
net assets(f) (1.09)%(d) (0.72)% (0.73)% (0.50)% (0.76)%(e) (1.09)%(d) (0.72)% (0.70)%(e)
=========================== ========== ======== ======== ======== ======= ======= ======= =======
Portfolio turnover rate 75% 125% 128% 159% 139% 75% 125% 128%
=========================== ========== ======== ======== ======== ======= ======= ======= =======
</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 fee waivers and/or expense reimbursements. Ratios of expenses to
average net assets prior to fee waivers and/or expense reimbursements were
1.87% (annualized), 1.87%, 1.91%, 1.98% and 1.94% (annualized) for 1999-1995
for Class B and 1.87% (annualized), 1.87%, 1.88% (annualized) for 1999-1997
for Class C.
(d) Ratios are annualized and based on average net assets of $905,433,736 and
$37,476,108 for Class B and Class C, respectively.
(e) Annualized.
(f) After fee waivers and/or expense reimbursements. Ratios of net investment
income (loss) to average net assets prior to fee waivers and/or expense
reimbursements were (1.14)% (annualized),(0.76)%, (0.77)%, (0.53)% and
(0.79)% (annualized) for 1999-1995 for Class B and (1.14)% (annualized),
(0.76)%, (0.74)% (annualized) for 1999-1997 for Class C.
(g) Averages computed on a daily basis.
16
<PAGE> 19
<TABLE>
<CAPTION>
BOARD OF DIRECTORS OFFICERS OFFICE OF THE FUND
<S> <C> <C>
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
Director
ACE Limited; Carol F. Relihan A I M Advisors, Inc.
Formerly Director, President, and Senior Vice President and Secretary 11 Greenway Plaza
Chief Executive Officer Suite 100
COMSAT Corporation Gary T. Crum Houston, TX 77046
Senior Vice President
Owen Daly II TRANSFER AGENT
Director Edgar M. Larsen
Cortland Trust Inc. Senior Vice President A I M Fund Services, Inc.
P.O. Box 4739
Edward K. Dunn Jr. Dana R. Sutton Houston, TX 77210-4739
Chairman, Mercantile Mortgage Corp.; Vice President and Treasurer
Formerly Vice Chairman and President, CUSTODIAN
Mercantile-Safe Deposit & Trust Co.; and Melville B. Cox
President, Mercantile Bankshares Vice President State Street Bank and Trust Company
225 Franklin Street
Jack Fields Mary J. Benson Boston, MA 02110
Chief Executive Officer Assistant Vice President and
Texana Global, Inc.; Assistant Treasurer COUNSEL TO THE FUND
Formerly Member
of the U.S. House of Representatives Sheri Morris Ballard Spahr
Assistant Vice President and Andrews & Ingersoll, LLP
Carl Frischling Assistant Treasurer 1735 Market Street
Partner Philadelphia, PA 19103
Kramer, Levin, Naftalis & Frankel LLP Renee A. Friedli
Assistant Secretary COUNSEL TO THE DIRECTORS
Robert H. Graham
President and Chief Executive Officer P. Michelle Grace Kramer, Levin, Naftalis & Frankel L
A I M Management Group Inc. Assistant Secretary 919 Third Avenue
New York, NY 10022
Prema Mathai-Davis Jeffrey H. Kupor
Chief Executive Officer, YWCA of the U.S.A.; Assistant Secretary DISTRIBUTOR
Commissioner, New York City Dept. for the
Aging; and member of the Board of Directors, Nancy L. Martin A I M Distributors, Inc.
Metropolitan Transportation Authority of Assistant Secretary 11 Greenway Plaza
New York State Suite 100
Ofelia M. Mayo Houston, TX 77046
Lewis F. Pennock Assistant Secretary
Attorney
Lisa A. Moss
Louis S. Sklar Assistant Secretary
Executive Vice President
Hines Interests Kathleen J. Pflueger
Limited Partnership Assistant Secretary
Samuel D. Sirko
Assistant Secretary
Stephen I. Winer
Assistant Secretary
</TABLE>
<PAGE> 20
THE AIM FAMILY OF FUNDS--Registered Trademark--
<TABLE>
<S> <C> <C>
GROWTH FUNDS MONEY MARKET FUNDS A I M Management Group Inc. has
AIM Aggressive Growth Fund(1) AIM Money Market Fund provided leadership in the
AIM Blue Chip Fund AIM Tax-Exempt Cash Fund mutual-fund industry since 1976
AIM Capital Development Fund and managed approximately $112
AIM Constellation Fund INTERNATIONAL GROWTH FUNDS billion in assets for more than
AIM Dent Demographic Trends Fund AIM Advisor International Value Fund 6.3 million shareholders,
AIM Large Cap Growth Fund AIM Asian Growth Fund including individual investors,
AIM Mid Cap Equity Fund(2), (A) AIM Developing Markets Fund(2) corporate clients and financial
AIM Select Growth Fund(3) AIM Europe Growth Fund(2) institutions as of March 31,
AIM Small Cap Growth Fund(2), (B) AIM European Development Fund 1999.
AIM Small Cap Opportunities Fund AIM International Equity Fund
AIM Value Fund AIM Japan Growth Fund(2) The AIM Family of
AIM Weingarten Fund AIM Latin American Growth Fund(2) Funds--Registered Trademark-- is
AIM New Pacific Growth Fund(2) distributed nationwide, and AIM
GROWTH & INCOME FUNDS today is the 10th-largest
AIM Advisor Flex Fund GLOBAL GROWTH FUNDS mutual-fund complex in the
AIM Advisor Large Cap Value Fund AIM Global Aggressive Growth Fund United States in assets under
AIM Advisor Real Estate Fund AIM Global Growth Fund management, according to
AIM Balanced Fund Strategic Insight, an
AIM Basic Value Fund(2), (C) GLOBAL GROWTH & INCOME FUNDS independent mutual-fund monitor.
AIM Charter Fund AIM Global Growth & Income Fund(2)
AIM Global Utilities Fund
INCOME FUNDS
AIM Floating Rate Fund(2) GLOBAL INCOME FUNDS
AIM High Yield Fund AIM Emerging Markets Debt Fund(2), (D)
AIM High Yield Fund II AIM Global Government Income Fund(2)
AIM Income Fund AIM Global Income Fund
AIM Intermediate Government Fund AIM Strategic Income Fund(2)
AIM Limited Maturity Treasury Fund
THEME FUNDS
TAX-FREE INCOME FUNDS AIM Global Consumer Products and Services Fund(2)
AIM High Income Municipal Fund AIM Global Financial Services Fund(2)
AIM Municipal Bond Fund AIM Global Health Care Fund(2)
AIM Tax-Exempt Bond Fund of Connecticut AIM Global Infrastructure Fund(2)
AIM Tax-Free Intermediate Fund AIM Global Resources Fund(2)
AIM Global Telecommunications and Technology Fund(2),(E)
AIM Global Trends Fund(2),(F)
</TABLE>
(1)AIM Aggressive Growth Fund reopened to new investors November 16, 1998.
(2)Effective May 29, 1998, A I M Advisors, Inc. became advisor to the former GT
Global Funds. (3)On May 1, 1998, AIM Growth Fund was renamed AIM Select Growth
Fund. (A)On September 8, 1998, AIM Mid Cap Growth Fund was renamed AIM Mid Cap
Equity Fund. (B)On September 8, 1998, AIM Small Cap Equity Fund was renamed AIM
Small Cap Growth Fund. (C)On September 8, 1998, AIM America Value Fund was
renamed AIM Basic Value Fund. (D)On September 8, 1998, AIM Global High Income
Fund was renamed AIM Emerging Markets Debt Fund. (E)On June 1, 1999, AIM Global
Telecommunications Fund was renamed AIM Global Telecommunications and Technology
Fund. (F)On September 8, 1998, AIM New Dimension Fund was renamed AIM Global
Trends Fund. For more complete information about any AIM Fund(s), including
sales charges and expenses, ask your financial consultant or securities
dealer for a free prospectus(es). Please read the prospectus(es) carefully
before you invest or send money.
[AIM LOGO APPEARS HERE]
INVEST WITH DISCIPLINE
--Registered Trademark--
