<PAGE> 1
SEMIANNUAL REPORT / APRIL 30 2000
AIM LARGE CAP GROWTH FUND
[COVER IMAGE]
[AIM LOGO APPEARS HERE]
--Registered Trademark--
<PAGE> 2
[ COVER IMAGE ]
------------------------------------
THE BLUE VASE
BY PAUL CEZANNE (1893-1906, FRENCH)
CEZANNE'S MAGNIFICENT STILL LIFES HAVE WITHSTOOD THE TEST OF
TIME TO BECOME CLASSIC EXAMPLES OF POSTIMPRESSIONISM. LIKE
THESE MASTERPIECES, THE COMPANIES IN AIM LARGE CAP GROWTH
FUND ARE ALSO RECOGNIZED AS LEADERS IN THEIR FIELDS.
------------------------------------
AIM Large Cap Growth Fund is for shareholders who seek long-term growth of
capital through investments primarily in large-capitalization company
securities. These securities may include common stocks, convertible bonds,
convertible preferred stocks and warrants of companies with market
capitalizations that are within the top 50% of stocks in the Russell 1000 Index
at the time of purchase.
ABOUT FUND PERFORMANCE AND PORTFOLIO DATA THROUGHOUT THIS REPORT:
o AIM Large Cap Growth Fund's performance figures are historical, and they
reflect the reinvestment of distributions and changes in net asset value.
o Had the advisor not waived fees and expenses during the reporting period,
returns would have been lower.
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 its Class A shares due to different sales-charge structure and class
expenses.
o The fund's average annual total returns as of the close of the reporting
period are shown in a table in the managers' overview on the pages that
follow. In addition, industry regulations require us to provide average
annual total returns, including sales charges, as of 3/31/00 (the most
recent calender-quarter end), which were: Class A shares, inception
(3/1/99), 60.52%, 1 year, 55.91%. Class B shares, inception (4/5/99), 53.08%
(cumulative total return). Class C shares, inception (4/5/99), 57.08%
(cumulative total return).
o International investing presents certain risks not associated with investing
solely in the United States. These include risks relating to fluctuations in
the value of the U.S. dollar relative to other currencies, the custody
arrangement made for the fund's foreign holdings, differences in accounting,
political risks and the lesser degree of information required to be provided
by non-U.S. companies.
o The fund participates in the initial public offering (IPO) market, and a
significant portion of its returns are attributable to its investment in
IPOs, which have a magnified impact due to the fund's relatively small asset
base. There is no guarantee that as the fund's assets grow, it will continue
to experience substantially similar performance by investing in IPOs.
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 unmanaged Dow Jones Industrial Average (the Dow) is a price-weighted
average of 30 actively traded primarily industrial stocks.
o The unmanaged Lipper Large Cap Growth Index represents an average of the
performance of the 30 largest large-capitalization growth funds tracked by
Lipper, Inc., an independent mutual fund performance monitor.
o The National Association of Securities Dealers Automated Quotation System
Composite Index (the Nasdaq) is a market-value-weighted index comprising all
domestic and non-U.S.-based common stocks listed on the Nasdaq system. It
includes more than 5,000 companies, and it is often considered
representative of the small and medium-sized company universe. While it
includes many small and mid-sized company stocks, large-capitalization
technology companies tend to dominate the index.
o The unmanaged Russell 1000 Index represents the performance of the stocks of
large-capitalization companies.
o The unmanaged Standard & Poor's Composite Index of 500 Stocks (the S&P 500)
represents the performance of the stock market.
o An investment cannot be made in an index. Unless otherwise indicated, index
results include reinvested dividends, and they 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 LARGE CAP GROWTH FUND
<PAGE> 3
SEMIANNUAL REPORT / CHAIRMAN'S LETTER
Dear Fellow Shareholder:
When we started AIM in 1976, we had only a table, two chairs
[PHOTOS OF and a telephone. At the time, Bob Graham, Gary Crum and I
Charles T. had the idea of creating a mutual fund company that put
Bauer people first. Our slogan, "people are the product," means
Chairman of that people--our employees and our investors--are our
the Board of company.
THE FUND Almost a quarter-century later, we've grown to more than
APPEARS HERE] seven million investors, $176 billion in assets under
management and 53 retail funds. Over that time, the industry
[PHOTO OF as a whole has grown from $51 billion in assets to more than
Robert H. $7 trillion today. I never dreamed we would see such
Graham phenomenal growth. You are the main reason for our success,
APPEARS HERE] and I want you to know how much I appreciate your loyalty
and trust over the past 24 years.
Usually in this letter I review market activity during
the period covered by the report. This time, I'd just like
to say thank you. I am retiring as chairman of the AIM Funds effective September
30, and as chairman of AIM effective December 31, 2000. Bob Graham, whose
picture appears under mine, will succeed me as AIM's chairman and chairman of
the AIM Funds. Gary Crum will remain president of A I M Capital Management,
Inc., leading our investment division. I am enormously proud to leave AIM in
such capable hands.
I'm also very proud of our team of employees, now more than 2,300 strong.
Because of their collective commitment to excellence and ethical business
practices, AIM has earned the trust of investors and financial advisors alike.
And every employee, from portfolio managers to client services representatives,
is dedicated to serving our shareholders.
Rest assured that nothing at AIM will change because of my retirement. You
can still depend on this company to manage your money responsibly and provide
you with top-notch service. As chairman of AIM and chairman of the AIM Funds,
Bob is committed to preserving the things that have made AIM great in the past
and positioning it to succeed in the future. And Gary is dedicated to
maintaining the quality and long-term performance you've come to expect from
AIM.
In the pages that follow, the managers of your fund comment on recent market
activity, how they have managed your fund over the past six months and their
outlook for the coming months. We trust you will find their comments helpful.
If you have any questions or comments, please contact us through our Web
site, www.aimfunds.com, or call our Client Services department at 800-959-4246
during normal business hours. Information about your account is available at our
Web site and on our automated AIM Investor Line, 800-246-5463.
Thank you again for the support and trust you've shown us. I feel privileged
to have helped you with your financial goals, and I wish you success in all your
endeavors.
Sincerely,
/s/ CHARLES T. BAUER
Charles T. Bauer
Chairman, A I M Advisors, Inc.
AIM LARGE CAP GROWTH FUND
<PAGE> 4
SEMIANNUAL REPORT / MANAGERS' OVERVIEW
FUND HANDILY OUTPERFORMS BENCHMARK INDEXES
HOW DID AIM LARGE CAP GROWTH FUND PERFORM OVER THE LAST SIX MONTHS?
For the six months ended April 30, 2000, AIM Large Cap Growth Fund delivered
outstanding returns and outperformed its benchmark indexes. The fund's Class A
shares returned 47.12%, Class B shares returned 46.58% and Class C shares
returned 46.45% at net asset value, that is, without sales charges. Those
returns significantly exceeded the Russell 1000 Index's 9.72% and the Lipper
Large-Cap Growth Index's 16.31% returns for the reporting period. The fund's
strong performance was largely attributable to the continued appreciation of its
high-quality technology holdings.
The fund's assets continue to grow rapidly. Net assets grew from $5.6
million one year ago to $13.9 million six months ago to $73.6 million on April
30, 2000.
WHAT WERE THE MAJOR TRENDS IN THE FINANCIAL MARKETS DURING THE REPORTING PERIOD?
U.S. equity markets experienced significant volatility during the last six
months. Many technology stocks that soared in 1999 came crashing back to earth
in early 2000 as investors questioned those stocks' valuations. Many investors
abandoned dot-com stocks, concerned that they were overvalued, lacked a clear
business model and might never make a profit.
But even the stocks of large, historically profitable old-economy companies
were not immune to price declines if it appeared they might not meet earnings
expectations. Investors increasingly focused on corporate profits, and many
companies that failed to deliver profits to their shareholders were punished.
There were many reasons for the markets' heightened volatility, including
continued interest-rate hikes by the Federal Reserve Board (the Fed) and
sometimes contradictory economic indicators. The Fed raised short-term interest
rates five times during the last year for a total increase of 125 basis points
(1.25%) in a preemptive effort to contain inflation. (On May 16, shortly after
the close of the reporting period, the Fed raised short-term interest rates by
an additional 50 basis points and signaled it may raise rates further.)
For all the headline-making one-day dips and dives in one market benchmark
or another, it is worth noting that the most widely followed market indexes all
produced positive returns for the six months covered by this report. The S&P 500
rose 7.18%; the Dow eked out a 0.79% gain; and even the Nasdaq, which provoked
the most hand-wringing, was up an impressive 30.14%.
HAS MARKET VOLATILITY AFFECTED ALL STOCKS EQUALLY?
Not all stocks have been equally volatile. Much of the volatility has been
concentrated among profitless Internet stocks with high valuations--the kind of
stocks to which the fund has little exposure. The stocks of larger, more
established companies have been comparatively stable. While the technology-laden
Nasdaq was down 5.13% for the first four months of 2000, the S&P 500 Index was
down only 0.79%.
HOW WAS THE FUND'S PORTFOLIO POSITIONED AT THE CLOSE OF THE REPORTING PERIOD?
The fund held a relatively concentrated portfolio of just 51 stocks on April 30,
2000--down from 67 six months earlier. Major sectors represented in the
portfolio at the reporting period's close were technology (58.8% of the
portfolio), health care (10.9%), consumer cyclicals (7.1%) and consumer staples
(5.7%). Within the technology sector, the fund held stock in a variety of
well-established technology companies in the communications equipment, computer
software and services and semiconductor electronics industries. Non-technology
holdings included retail (6.1%), broadcasting (5.7%) and diversified health care
(4.8%).
Technology stocks accounted for approximately 41% of the fund's holdings at
the beginning of the period and approximately 59% at its close. We reduced our
health-care holdings because some health-care companies face potential problems;
some pharmaceutical manufacturers face patent expirations, managed-care
companies have seen rising costs and reduced government
CUMULATIVE TOTAL RETURNS
For the six months ended 4/30/00,
excluding sales charges
================================================================================
FUND CLASS A SHARES 47.12%
FUND CLASS B SHARES 46.58%
FUND CLASS C SHARES 46.45%
LIPPER LARGE-CAP GROWTH INDEX 16.31%
RUSSELL 1000 INDEX 9.72%
================================================================================
GROWTH OF NET ASSETS
in millions
================================================================================
4/30/99 $ 5.6
10/31/99 $13.9
4/30/00 $73.6
================================================================================
See important fund and index disclosures inside front cover.
AIM LARGE CAP GROWTH FUND
2
<PAGE> 5
SEMIANNUAL REPORT / MANAGERS' OVERVIEW
[ COVER IMAGE ]
reimbursements squeeze their earnings and some biotech companies have been hurt
by adverse decisions from the U.S. Food and Drug Administration.
During the six-month reporting period, we trimmed our retail holdings, but
we retained two stocks--Target and Home Depot--that we believe will continue to
do well. Target, the former Dayton Hudson, operates more than 1,200 stores
nationwide; it's a dominant force in the discount, mid-range and upscale
formats. Home Depot, noted for its outstanding customer service, operates more
than 950 stores coast to coast serving professional builders as well as
"do-it-yourselfers." The company is opening a new chain of smaller hardware
stores in the United States and is exporting its superstore concept to South
America.
WHAT ARE SOME OF THE FUND'S MAJOR TECHNOLOGY HOLDINGS?
While a large percentage of the fund's holdings are in the technology sector, we
own well-established, profitable companies that are leaders in their fields.
Three of the fund's largest technology holdings--Nokia, Nortel Networks and Sun
Microsystems--reported extremely strong quarterly earnings shortly before the
close of the reporting period.
Nokia, the world's largest maker of cellular telephones, reported that its
revenue increased 69% and its earnings were up 71% from year-ago levels.
Canada's Nortel Networks, North America's number-two maker of telecommunications
products, reported that its quarterly revenue rose 48% to $6.3 billion--$1
billion higher than expected--and its earnings grew by almost 80%. And Sun
Microsystems reported that its revenue increased 35% and its earnings 49% from
year-earlier levels.
We believe these companies, and the fund's other holdings, have the
potential to outperform the market as a whole going forward.
WHAT IS YOUR OUTLOOK FOR THE FUTURE?
U.S. and foreign markets may remain volatile for some time because of rising
interest rates and because some investors have yet to figure out the proper way
to value high-growth technology companies. While the Fed traditionally refrains
from raising interest rates during presidential elections, it has made clear its
intention to continue raising rates as necessary to ensure inflation remains in
check.
Technology and telecommunications companies in the United States and
elsewhere are producing innovative new products and infrastructure that could
result in many years of above-average growth. While further Fed rate hikes could
put pressure on more traditional sectors of the economy, many industry-leading
technology companies have little debt, making them somewhat immune to the
effects of rising interest rates. AIM Large Cap Growth Fund will continue to own
well-managed, financially strong, industry-leading companies with the potential
to appreciate in the years ahead.
AVERAGE ANNUAL TOTAL RETURNS
As of 4/30/00, including sales charges
================================================================================
CLASS A SHARES
Inception (3/1/99) 48.15%
1 Year 50.32*
*59.10% excluding sales charges
================================================================================
================================================================================
CLASS B SHARES
Inception (4/5/99) 42.17%
1 Year 52.80*
*57.80% excluding CDSC
================================================================================
================================================================================
CLASS C SHARES
Inception (4/5/99) 45.82%
1 Year 56.80*
*57.80% excluding CDSC
Past performance cannot guarantee comparable future results.
================================================================================
MARKET VOLATILITY CAN SIGNIFICANTLY IMPACT SHORT-
TERM PERFORMANCE. RESULTS OF AN INVESTMENT MADE
TODAY MAY DIFFER SUBSTANTIALLY FROM THE HISTORICAL
PERFORMANCE SHOWN.
PORTFOLIO COMPOSITION
As of 4/30/00, based on total net assets
<TABLE>
<CAPTION>
=====================================================================================================
TOP 10 HOLDINGS TOP 10 INDUSTRIES
-----------------------------------------------------------------------------------------------------
<S> <C> <S> <C>
1. Nokia Corp. (Finland) 4.14% 1. Communications Equipment 16.73%
2. Warner-Lambert Co. 4.02 2. Computers (Software & Services) 15.71
3. Nextel Communications, Inc.-Class A 3.97 3. Electronics (Semiconductors) 9.65
4. Cisco Systems, Inc. 3.96 4. Broadcasting (Television, Radio & Cable) 5.72
5. JDS Uniphase Corp. 3.66 5. Computers (Networking) 5.24
6. General Electric Co. 3.65 6. Health Care (Diversified) 4.82
7. Target Corp. 3.63 7. Telecommunications (Cellular/Wireless) 4.82
8. Nortel Networks Corp. (Canada) 3.38 8. Electrical Equipment 4.44
9. VERITAS Software Corp. 3.10 9. Retail (General Merchandise) 3.63
10. Sun Microsystems, Inc. 3.00 10. Computers (Hardware) 3.00
The fund's portfolio is subject to change, and there is no assurance that the
fund will continue to hold any particular security.
=====================================================================================================
</TABLE>
See important fund and index disclosures inside front cover.
AIM LARGE CAP GROWTH FUND
3
<PAGE> 6
SCHEDULE OF INVESTMENTS
April 20, 2000
(Unaudited)
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
DOMESTIC COMMON STOCKS-80.56%
BIOTECHNOLOGY-1.45%
Amgen Inc. 19,000 $ 1,064,000
--------------------------------------------------------------
BROADCASTING (TELEVISION, RADIO &
CABLE)-5.72%
AT&T Corp.-Liberty Media Group-Class
A(a) 27,300 1,363,294
--------------------------------------------------------------
Cablevision Systems Corp.-Class A(a) 29,700 2,010,319
--------------------------------------------------------------
Comcast Corp.-Class A(a) 20,900 837,306
--------------------------------------------------------------
4,210,919
--------------------------------------------------------------
COMMUNICATIONS EQUIPMENT-7.11%
Comverse Technology, Inc.(a) 15,200 1,355,650
--------------------------------------------------------------
JDS Uniphase Corp.(a) 26,000 2,695,875
--------------------------------------------------------------
Motorola, Inc. 6,400 762,000
--------------------------------------------------------------
QUALCOMM Inc.(a) 3,900 422,906
--------------------------------------------------------------
5,236,431
--------------------------------------------------------------
COMPUTERS (HARDWARE)-3.00%
Sun Microsystems, Inc.(a) 24,000 2,206,500
--------------------------------------------------------------
COMPUTERS (NETWORKING)-5.24%
Cisco Systems, Inc.(a) 42,000 2,911,781
--------------------------------------------------------------
VeriSign, Inc.(a) 6,800 947,750
--------------------------------------------------------------
3,859,531
--------------------------------------------------------------
COMPUTERS (PERIPHERALS)-2.75%
EMC Corp.(a) 8,700 1,208,756
--------------------------------------------------------------
Network Appliance, Inc.(a) 11,000 813,312
--------------------------------------------------------------
2,022,068
--------------------------------------------------------------
COMPUTERS (SOFTWARE &
SERVICES)-14.44%
America Online, Inc.(a) 17,600 1,052,700
--------------------------------------------------------------
BEA Systems, Inc.(a) 37,600 1,814,200
--------------------------------------------------------------
Oracle Corp.(a) 24,400 1,950,475
--------------------------------------------------------------
Siebel Systems, Inc.(a) 14,300 1,757,112
--------------------------------------------------------------
VERITAS Software Corp.(a) 21,250 2,279,395
--------------------------------------------------------------
Vitria Technology, Inc.(a) 11,400 421,087
--------------------------------------------------------------
webMethods, Inc.(a) 2,000 180,000
--------------------------------------------------------------
Yahoo! Inc.(a) 9,000 1,172,250
--------------------------------------------------------------
10,627,219
--------------------------------------------------------------
ELECTRICAL EQUIPMENT-4.44%
Cree Research, Inc.(a) 4,000 582,000
--------------------------------------------------------------
General Electric Co. 17,100 2,688,975
--------------------------------------------------------------
3,270,975
--------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
ELECTRONICS (INSTRUMENTATION)-2.28%
PE Corp-PE Biosystems Group 7,900 $ 474,000
--------------------------------------------------------------
Waters Corp.(a) 12,700 1,203,325
--------------------------------------------------------------
1,677,325
--------------------------------------------------------------
ELECTRONICS (SEMICONDUCTORS)-6.94%
Broadcom Corp.-Class A(a) 4,500 775,687
--------------------------------------------------------------
Intel Corp.(a) 14,200 1,800,737
--------------------------------------------------------------
Linear Technology Corp. 9,000 514,125
--------------------------------------------------------------
LSI Logic Corp.(a) 9,000 562,500
--------------------------------------------------------------
Texas Instruments Inc. 6,500 1,058,688
--------------------------------------------------------------
Xilinx, Inc.(a) 5,400 395,550
--------------------------------------------------------------
5,107,287
--------------------------------------------------------------
EQUIPMENT (SEMICONDUCTOR)-1.09%
Applied Materials, Inc.(a) 3,800 386,888
--------------------------------------------------------------
Teradyne, Inc.(a) 3,800 418,000
--------------------------------------------------------------
804,888
--------------------------------------------------------------
FINANCIAL (DIVERSIFIED)-1.53%
American Express Co. 7,500 1,125,469
--------------------------------------------------------------
HEALTH CARE (DIVERSIFIED)-4.82%
Allergan, Inc. 10,000 588,750
--------------------------------------------------------------
Warner-Lambert Co. 26,000 2,959,125
--------------------------------------------------------------
3,547,875
--------------------------------------------------------------
HEALTH CARE (DRUGS-GENERIC &
OTHER)-0.71%
Genetech, Inc.(a) 4,500 526,500
--------------------------------------------------------------
HEALTH CARE (MEDICAL PRODUCTS &
SUPPLIES)-1.88%
Medtronic, Inc. 26,600 1,381,538
--------------------------------------------------------------
INSURANCE (MULTI-LINE)-0.97%
American International Group, Inc. 6,500 712,969
--------------------------------------------------------------
NATURAL GAS-1.89%
Enron Corp. 20,000 1,393,750
--------------------------------------------------------------
RETAIL (BUILDING SUPPLIES)-2.50%
Home Depot, Inc. (The) 32,800 1,838,850
--------------------------------------------------------------
RETAIL (GENERAL MERCHANDISE)-3.63%
Target Corp. 40,100 2,669,156
--------------------------------------------------------------
SERVICES
(ADVERTISING/MARKETING)-0.98%
Omnicom Group, Inc. 7,900 719,394
--------------------------------------------------------------
</TABLE>
4
<PAGE> 7
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
SERVICES (COMPUTER SYSTEMS)-2.37%
Brocade Communications Systems,
Inc.(a) 14,100 $ 1,748,400
--------------------------------------------------------------
TELECOMMUNICATIONS
(CELLULAR/WIRELESS)-4.82%
Nextel Communications, Inc.-Class
A(a) 26,700 2,921,981
--------------------------------------------------------------
Powerwave Technologies, Inc.(a) 3,000 624,188
--------------------------------------------------------------
3,546,169
--------------------------------------------------------------
Total Domestic Common Stocks
(Cost $53,709,475) 59,297,213
--------------------------------------------------------------
FOREIGN STOCKS & OTHER EQUITY
INTERESTS-13.60%
CANADA-6.10%
Nortel Networks Corp.
(Communications Equipment) 22,000 2,491,500
--------------------------------------------------------------
PMC-Sierra, Inc.
(Electronics-Semiconductors)(a) 10,400 1,995,500
--------------------------------------------------------------
4,487,000
--------------------------------------------------------------
FINLAND-4.14%
Nokia Oyj-ADR (Communications
Equipment) 53,600 3,048,500
--------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
ISRAEL-1.27%
Check Point Software Technologies
Ltd. (Computers-Software &
Services)(a) 5,400 $ 934,200
--------------------------------------------------------------
SWEDEN-2.09%
Telefonaktiebolaget LM Ericsson
A.B.-ADR (Communications
Equipment) 17,400 1,538,813
--------------------------------------------------------------
Total Foreign Stocks & Other
Equity Interests (Cost
$8,220,485) 10,008,513
--------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C> <C>
MONEY MARKET FUNDS-7.20%
STIC Liquid Assets Portfolio(b) 2,649,795 2,649,795
--------------------------------------------------------------
STIC Prime Portfolio(b) 2,649,795 2,649,795
--------------------------------------------------------------
Total Money Market Funds (Cost
$5,299,590) 5,299,590
--------------------------------------------------------------
TOTAL INVESTMENTS-101.36% (Cost
$67,229,550) 74,605,316
--------------------------------------------------------------
LIABILITIES LESS OTHER
ASSETS-(1.36%) (1,000,548)
--------------------------------------------------------------
NET ASSETS-100.00% $73,604,768
==============================================================
</TABLE>
Investment Abbreviations:
ADR - American Depositary Receipt
Notes to Schedule of Investments:
(a) Non-income producing security.
(b) The money market fund has the same investment advisor as the Fund.
See Notes to Financial Statements.
5
<PAGE> 8
STATEMENT OF ASSETS AND LIABILITIES
April 30, 2000
(Unaudited)
<TABLE>
<S> <C>
ASSETS:
Investments, at market value (cost
$67,229,550) $ 74,605,316
------------------------------------------------------------
Receivables for:
Investments sold 569,884
------------------------------------------------------------
Capital stock sold 1,950,500
------------------------------------------------------------
Dividends 30,870
------------------------------------------------------------
Investment for deferred compensation plan 6,987
------------------------------------------------------------
Other assets 26,843
------------------------------------------------------------
Total assets 77,190,400
------------------------------------------------------------
LIABILITIES:
Payables for:
Investments purchased 3,307,162
------------------------------------------------------------
Capital stock reacquired 48,409
------------------------------------------------------------
Deferred compensation plan 6,987
------------------------------------------------------------
Accrued advisory fees 123,320
------------------------------------------------------------
Accrued administrative services fees 4,099
------------------------------------------------------------
Accrued distribution fees 35,593
------------------------------------------------------------
Accrued directors' fees 576
------------------------------------------------------------
Accrued transfer agent fees 9,083
------------------------------------------------------------
Accrued operating expenses 50,403
------------------------------------------------------------
Total liabilities 3,585,632
------------------------------------------------------------
Net assets applicable to shares outstanding $ 73,604,768
------------------------------------------------------------
NET ASSETS:
Class A $ 37,924,966
============================================================
Class B $ 24,563,019
============================================================
Class C $ 11,116,783
============================================================
CAPITAL STOCK, $0.001 PAR VALUE PER SHARE:
Class A:
Authorized 750,000,000
------------------------------------------------------------
Outstanding 2,283,145
------------------------------------------------------------
Class B:
Authorized 750,000,000
------------------------------------------------------------
Outstanding 1,490,130
------------------------------------------------------------
Class C:
Authorized 750,000,000
------------------------------------------------------------
Outstanding 674,108
------------------------------------------------------------
Class A :
Net asset value and redemption price per
share $ 16.61
------------------------------------------------------------
Offering price per share:
(Net asset value of $16.61
divided by 94.50%) $ 17.58
------------------------------------------------------------
Class B :
Net asset value and offering price per share $ 16.48
------------------------------------------------------------
Class C :
Net asset value and offering price per share $ 16.49
------------------------------------------------------------
</TABLE>
STATEMENT OF OPERATIONS
For the six months ended April 30, 2000
(Unaudited)
<TABLE>
<S> <C>
INVESTMENT INCOME:
Dividends (net of foreign withholding tax
$1,864) $ 120,681
------------------------------------------------------------
Interest 346
------------------------------------------------------------
Total investment income 121,027
------------------------------------------------------------
EXPENSES:
Advisory fees 125,477
------------------------------------------------------------
Administrative services fee 24,864
------------------------------------------------------------
Custodian fees 9,069
------------------------------------------------------------
Distribution fees-Class A 30,672
------------------------------------------------------------
Distribution fees-Class B 56,894
------------------------------------------------------------
Distribution fees-Class C 24,007
------------------------------------------------------------
Transfer agent fees-Class A 17,111
------------------------------------------------------------
Transfer agent fees-Class B 13,893
------------------------------------------------------------
Transfer agent fees-Class C 5,861
------------------------------------------------------------
Registration and filing fees 39,818
------------------------------------------------------------
Directors' fees 3,538
------------------------------------------------------------
Other 42,436
------------------------------------------------------------
Total expenses 393,640
------------------------------------------------------------
Less: Fees waived (10,880)
------------------------------------------------------------
Expenses paid indirectly (2,469)
------------------------------------------------------------
Net expenses 380,291
------------------------------------------------------------
Net investment income (loss) (259,264)
------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENT SECURITIES, FOREIGN CURRENCIES AND
FUTURES CONTRACTS
Net realized gain from:
Investment securities 2,568,504
------------------------------------------------------------
Futures contracts 11,585
------------------------------------------------------------
2,580,089
------------------------------------------------------------
Change in net unrealized appreciation
(depreciation) of:
Investment securities 5,927,104
------------------------------------------------------------
Foreign currencies (6,343)
------------------------------------------------------------
Futures contracts (5,475)
------------------------------------------------------------
5,915,286
------------------------------------------------------------
Net gain on investment securities, foreign
currencies and futures contracts 8,495,375
------------------------------------------------------------
Net increase in net assets resulting from
operations $8,236,111
------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
6
<PAGE> 9
STATEMENT OF CHANGES IN NET ASSETS
For the six months ended April 30, 2000 and the period March 1, 1999 (date
operations commenced) through October 31, 1999
(Unaudited)
<TABLE>
<CAPTION>
APRIL 30, OCTOBER 31,
2000 1999
----------- -----------
<S> <C> <C>
OPERATIONS:
Net investment income (loss) $ (259,264) $ (46,810)
----------------------------------------------------------------------------------------
Net realized gain (loss) from investment securities,
foreign currencies and futures contracts 2,580,089 (429,952)
----------------------------------------------------------------------------------------
Change in net unrealized appreciation of investment
securities, foreign currencies and futures contracts 5,915,286 1,454,137
----------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 8,236,111 977,375
----------------------------------------------------------------------------------------
Share transactions-net:
Class A 25,978,211 7,163,788
----------------------------------------------------------------------------------------
Class B 16,462,403 4,882,266
----------------------------------------------------------------------------------------
Class C 9,058,617 845,997
----------------------------------------------------------------------------------------
Net increase in net assets 59,735,342 13,869,426
----------------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 13,869,426 --
----------------------------------------------------------------------------------------
End of period $73,604,768 $13,869,426
========================================================================================
NET ASSETS CONSIST OF:
Capital (par value and additional paid-in) $64,380,202 $12,880,971
----------------------------------------------------------------------------------------
Undistributed net investment income (loss) (294,994) (35,730)
----------------------------------------------------------------------------------------
Undistributed net realized gain (loss) from investment
securities, foreign currencies and futures contracts 2,150,137 (429,952)
----------------------------------------------------------------------------------------
Unrealized appreciation of investment securities, foreign
currencies and futures contracts 7,369,423 1,454,137
----------------------------------------------------------------------------------------
$73,604,768 $13,869,426
========================================================================================
</TABLE>
See Notes to Financial Statements.
7
<PAGE> 10
NOTES TO FINANCIAL STATEMENTS
April 30, 2000
(Unaudited)
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES
AIM Large Cap Growth Fund (the "Fund") is a series portfolio of AIM Equity
Funds, Inc. (the "Company"). The Company is a Maryland corporation registered
under the Investment Company Act of 1940, as amended (the "1940 Act"), as an
open-end series management investment company consisting of eleven separate
portfolios. The Fund currently offers three different classes of shares: Class A
shares, Class B shares and Class C shares. 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 long-term 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 the significant accounting policies followed by the
Fund in the preparation of its financial statements.
A. Security Valuations--A security listed or traded on an exchange (except
convertible bonds) is valued at its last sales price as of the close of the
customary trading session 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 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 prices are not provided by any of the above
methods are valued based upon quotes furnished by independent sources and are
valued at the last bid price in the case of equity securities and in the case
of debt obligations, the mean between the last bid and asked prices.
Securities for which market quotations are not readily available or are
questionable are valued at fair value as determined in good faith by or under
the supervision of the Company's officers in a manner specifically authorized
by the Board of Directors of the Company. Short-term obligations having 60
days or less to maturity are valued at amortized cost which approximates
market value. For purposes of determining net asset value per share, futures
and option contracts generally will be valued 15 minutes after the close of
the customary trading session of the New York Stock Exchange ("NYSE").
Generally, trading in foreign securities is substantially completed each
day at various times prior to the close of the NYSE. 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 NYSE. 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 customary
trading session of the NYSE 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 value as determined in good faith by or under the
supervision of the Board of Directors.
B. Securities Transactions and Investment Income--Securities transactions are
accounted for on a trade date basis. Realized gains or losses on sales are
computed on the basis of specific identification of the securities sold.
Interest income is recorded as earned from settlement date and is recorded on
the accrual basis. Dividend income is recorded on the ex-dividend date.
C. Distributions--Distributions from income and net realized capital gains, if
any, are generally paid annually and recorded on ex-dividend date. The Fund
may elect to use a portion of the proceeds from redemptions as distributions
for federal income tax purposes.
D. 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. The Fund has a capital loss
carryforward of $380,100 which may be carried forward to offset future
taxable gains, if any, which expires, if not previously utilized, in the year
2007.
E. 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.
8
<PAGE> 11
F. 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 also 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 or if the value of the foreign currency changes
unfavorably.
G. Expenses--Distribution expenses and certain transfer agency expenses
directly attributable to a class of shares are charged to those classes'
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"). Under the terms of the master investment advisory
agreement, the Fund pays an advisory fee to AIM at the annual rate of 0.75% of
the first $1 billion of the Fund's average daily net assets, plus 0.70% over $1
billion to and including $2 billion of the Fund's average daily net assets and
0.625% of the Fund's average daily net assets over $2 billion. AIM has
contractually agreed to waive fees and reimburse expenses (excluding interest,
taxes, dividends on short sales, extraordinary items and increases in expenses
due to offset arrangements, if any) for Class A, Class B and Class C shares to
the extent necessary to limit the total operating expenses of Class A Shares to
1.95% (e.g. if AIM waives 0.42% of Class A expenses, AIM will also waive 0.42%
of Class B and Class C expenses. During the six months ended April 30, 2000, AIM
waived fees of $10,880.
The Fund, pursuant to a master administrative services agreement with AIM, has
agreed to pay AIM for certain administrative costs incurred in providing
accounting services to the Fund. For the six months ended April 30, 2000, AIM
was paid $24,864 for such services.
The Fund, pursuant to a transfer agency 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. For the six months ended April 30, 2000, AFS
was paid $23,161 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 plans
pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund's Class A
shares, Class B shares and Class C shares (collectively the "Plans"). The Fund,
pursuant to the Plans, pays AIM Distributors compensation at the annual rate of
0.35% of the Fund's average daily net assets of Class A shares and 1.00% of the
average daily net assets of Class B and C shares. Of these amounts, the Fund may
pay a service fee of 0.25% of the average daily net assets of the Class A, Class
B or Class 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, 2000, the Class A, Class B and Class C shares paid AIM Distributors $30,672,
$56,894 and 24,007, respectively, as compensation under the Plans.
AIM Distributors received commissions of $57,916 from sales of the Class A
shares of the Fund during the six months ended April 30, 2000. 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,
2000, AIM Distributors received $10,611 in contingent deferred sales charges
imposed on redemptions of Fund shares.
Certain officers and directors of the Company are officers and directors of
AIM, AFS, FMC and AIM Distributors.
During the six months ended April 30, 2000, the Fund paid legal fees of $2,531
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, 2000, the Fund received reductions in
transfer agency fees from AFS (an affiliate of AIM) and reductions in custodian
fees of $178 and $2,291, respectively, under expense offset arrangements. The
effect of the above arrangements resulted in a reduction of the Fund's total
expenses of $2,469 during the six months ended April 30, 2000.
NOTE 4-DIRECTORS' FEES
Directors' fees represent remuneration paid to directors who are 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, 2000, 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 0.09% 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.
9
<PAGE> 12
NOTE 6-INVESTMENT SECURITIES
The aggregate amount of investment securities (other than short-term securities)
purchased and sold by the Fund during the six months ended April 30, 2000 was
$62,775,768 and $14,346,360, respectively.
The amount of unrealized appreciation (depreciation) of investment securities,
for tax purposes, as of April 30, 2000 is as follows:
<TABLE>
<S> <C>
Aggregate unrealized appreciation of investment securities $ 8,769,104
--------------------------------------------------------------------------
Aggregate unrealized (depreciation) of investment securities (1,395,112)
--------------------------------------------------------------------------
Net unrealized appreciation of investment securities $ 7,373,992
==========================================================================
Cost of investments for tax purposes is $67,231,324.
</TABLE>
NOTE 7-CAPITAL STOCK
Changes in capital stock outstanding during the six months ended April 30, 2000
and the period March 1, 1999 (date operations commenced) through October 31,
1999 were as follows:
<TABLE>
<CAPTION>
APRIL 30, 2000 OCTOBER 31, 1999
----------------------- -----------------------
SHARES AMOUNT SHARES AMOUNT
--------- ----------- --------- -----------
<S> <C> <C> <C> <C>
Sold:
Class A 2,071,779 $33,927,126 788,751 $ 8,217,840
---------------------------------------------------------------------------------------------------------------
Class B 1,164,223 18,258,030 577,653 6,130,128
---------------------------------------------------------------------------------------------------------------
Class C 630,972 9,623,564 85,761 907,295
---------------------------------------------------------------------------------------------------------------
Reacquired:
Class A (477,997) (7,948,915) (99,388) (1,054,052)
---------------------------------------------------------------------------------------------------------------
Class B (134,854) (1,795,627) (116,892) (1,247,862)
---------------------------------------------------------------------------------------------------------------
Class C (36,928) (564,947) (5,697) (61,298)
---------------------------------------------------------------------------------------------------------------
3,217,195 $51,499,231 1,230,188 $12,892,051
===============================================================================================================
</TABLE>
NOTE 8-FINANCIAL HIGHLIGHTS
Contained below is per share operating performance data for a share outstanding
throughout each period, total investment return, ratios and supplemental data.
This information has been derived from information provided in the financial
statements.
<TABLE>
<CAPTION>
CLASS A
------------------------------------
MARCH 1,
1999
(DATE OPERATIONS
SIX MONTHS ENDED COMMENCED) TO
APRIL 30, OCTOBER 31,
2000(a) 1999
---------------- ----------------
<S> <C> <C>
Net asset value, beginning of period $ 11.29 $10.00
--------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income (loss) (0.09) (0.04)
--------------------------------------------------------------------------------------------------
Net gains on securities (both realized and unrealized) 5.41 1.33
--------------------------------------------------------------------------------------------------
Total from investment operations 5.32 1.29
--------------------------------------------------------------------------------------------------
Net asset value, end of period $ 16.61 $11.29
==================================================================================================
Total return(b) 47.12% 13.70%
==================================================================================================
Ratios/supplemental data:
Net assets, end of period (000s omitted) $37,925 $7,785
==================================================================================================
Ratio of expenses to average net assets:
With fee waivers 1.94%(c) 1.53%(d)
==================================================================================================
Without fee waivers 2.00%(c) 3.63%(d)
==================================================================================================
Ratio of net investment income (loss) to average net assets (1.20)%(c) (0.59)%(d)
==================================================================================================
Portfolio turnover rate 43% 21%
==================================================================================================
</TABLE>
(a) Calculated using average shares outstanding during the period.
(b) Does not deduct sales charges and is not annualized for periods less than
one year.
(c) Ratios are annualized and based on average net assets of $17,623,212.
(d) Annualized.
10
<PAGE> 13
NOTE 8-FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
CLASS B CLASS C
----------------------------------- ------------------------------------
APRIL 5, APRIL 5,
1999 1999
(DATE SALES (DATE SALES
SIX MONTHS ENDED COMMENCED) TO SIX MONTHS ENDED COMMENCED) TO
APRIL 30, OCTOBER 31, APRIL 30, OCTOBER 31,
2000(a) 1999(a) 2000(a) 1999(a)
---------------- ---------------- ---------------- ----------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 11.25 $ 11.02 $ 11.25 $11.02
---------------------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income (loss) (0.14) (0.08) (0.15) (0.08)
---------------------------------------------------------------------------------------------------------------------------
Net gains on securities (both realized and
unrealized) 5.37 0.31 5.39 0.31
---------------------------------------------------------------------------------------------------------------------------
Total from investment operations 5.23 0.23 5.24 0.23
---------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 16.48 $ 11.25 $ 16.49 $11.25
===========================================================================================================================
Total return(b) 46.48% 2.09% 46.58% 2.09%
===========================================================================================================================
Ratios/supplemental data:
Net assets, end of period (000s omitted) $24,563 $ 5,183 $11,117 $ 901
===========================================================================================================================
Ratio of expenses to average net assets:
With fee waivers 2.63%(c) 2.23%(d) 2.63%(c) 2.23%(d)
===========================================================================================================================
Without fee waivers 2.69%(c) 4.33%(d) 2.69%(c) 4.33%(d)
===========================================================================================================================
Ratio of net investment income (loss) to
average net assets (1.90)%(c) (1.29)%(d) (1.90)%(c) (1.29)%(d)
===========================================================================================================================
Portfolio turnover rate 43% 21% 43% 21%
===========================================================================================================================
</TABLE>
(a) Calculated based upon the average shares outstanding during the period.
(b) Does not deduct contingent deferred sales charges and is not annualized for
periods less than one year.
(c) Ratios are annualized and based on average net assets of $11,441,260 and
$4,827,692 for Class B and Class C, respectively.
(d) Annualized.
11
<PAGE> 14
<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 LLP
A I M Management Group Inc. Assistant Secretary 919 Third Avenue
New York, NY 10022
Prema Mathai-Davis Nancy L. Martin
Chief Executive Officer, YWCA of the U.S.A. Assistant Secretary DISTRIBUTOR
Lewis F. Pennock Ofelia M. Mayo A I M Distributors, Inc.
Attorney Assistant Secretary 11 Greenway Plaza
Suite 100
Louis S. Sklar Lisa A. Moss Houston, TX 77046
Executive Vice President Assistant Secretary
Hines Interests
Limited Partnership Kathleen J. Pflueger
Assistant Secretary
Samuel D. Sirko
Assistant Secretary
</TABLE>
12
<PAGE> 15
------------------------------------
OUR AUTOMATED
AIM INVESTOR LINE,
800-246-5463,
PROVIDES CURRENT ACCOUNT
INFORMATION AND THE PRICE,
YIELD AND TOTAL RETURN ON
ALL AIM FUNDS 24 HOURS A
DAY. YOU CAN ALSO ORDER A
YEAR-TO-DATE STATEMENT OF
YOUR ACCOUNT.
------------------------------------
AIM FUNDS--Registered Trademark-- MAKES INVESTING EASY
o AIM BANK CONNECTION(SM). You can make investments in your AIM account in
amounts from $50 to $100,000 without writing a check. Once you set up this
convenient feature, AIM will draw the funds from your pre-authorized
checking account at your request.
o AIM INTERNET CONNECT(SM). Sign up for this service and you can purchase,
redeem or exchange shares of AIM funds in your current AIM account simply by
accessing our Web site at www.aimfunds.com. For a retirement account, such
as an IRA or 403(b), only exchanges are allowed over the Internet because of
the tax-reporting and record-keeping requirements these accounts involve.
o AUTOMATIC REINVESTMENT OF DIVIDENDS AND/OR CAPITAL GAINS. You can receive
distributions in cash, or you can reinvest them in your account without
paying a sales charge. Over time, the power of compounding can significantly
increase the value of your account.
o AUTOMATIC INVESTMENT PLAN. You can add to your account by authorizing your
AIM fund to withdraw a specified amount, minimum $50, from your bank account
on a regular schedule.
o EASY ACCESS TO YOUR MONEY. You can redeem shares of your AIM fund any day
the New York Stock Exchange is open. The value of the shares may be more or
less than their original cost depending on market conditions.
o EXCHANGE PRIVILEGE. As your investment goals change, you may exchange part
or all of your shares of one fund for shares of a different AIM fund within
the same share class. You may make up to 10 such exchanges per calendar
year.
o TAX-ADVANTAGED RETIREMENT PLANS. You can enjoy the tax advantages offered by
a variety of investment plans, including Traditional IRAs, Roth IRAs and
education IRAs, among others.
o E-MAIL ACCESS. You can contact us at [email protected] for general
information. For account information, contact us at
[email protected].
o www.aimfunds.com. Our award-winning Web site provides account information,
shareholder education and fund performance information.
<PAGE> 16
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 AIM Money Market Fund provided leadership in the mutual
AIM Blue Chip Fund AIM Tax-Exempt Cash Fund fund industry since 1976 and
AIM Capital Development Fund managed approximately $176 billion
AIM Constellation Fund(1) INTERNATIONAL GROWTH FUNDS in assets for more than 7.4 million
AIM Dent Demographic Trends Fund AIM Advisor International Value Fund shareholders, including individual
AIM Emerging Growth Fund AIM Asian Growth Fund investors, corporate clients and
AIM Large Cap Growth Fund AIM Developing Markets Fund financial institutions, as of March
AIM Large Cap Opportunities Fund AIM Euroland Growth Fund(5) 31, 2000.
AIM Mid Cap Equity Fund AIM European Development Fund The AIM Family of Funds--Registered
AIM Mid Cap Growth Fund AIM International Equity Fund Trademark-- is distributed
AIM Mid Cap Opportunities Fund(2) AIM Japan Growth Fund nationwide, and AIM today is the
AIM Select Growth Fund AIM Latin American Growth Fund eighth-largest mutual fund complex
AIM Small Cap Growth Fund(3) in the United States in assets
AIM Small Cap Opportunities Fund(4) GLOBAL GROWTH FUNDS under management, according to
AIM Value Fund AIM Global Aggressive Growth Fund Strategic Insight, an independent
AIM Weingarten Fund AIM Global Growth Fund mutual fund monitor.
AIM Global Trends Fund(6)
GROWTH & INCOME FUNDS
AIM Advisor Flex Fund GLOBAL GROWTH & INCOME FUNDS
AIM Advisor Real Estate Fund AIM Global Utilities Fund
AIM Balanced Fund
AIM Basic Value Fund GLOBAL INCOME FUNDS
AIM Charter Fund AIM Global Income Fund
AIM Strategic Income Fund
INCOME FUNDS
AIM Floating Rate Fund THEME FUNDS
AIM High Yield Fund AIM Global Consumer Products and Services Fund
AIM High Yield Fund II AIM Global Financial Services Fund
AIM Income Fund AIM Global Health Care Fund
AIM Intermediate Government Fund AIM Global Infrastructure Fund
AIM Limited Maturity Treasury Fund AIM Global Resources Fund
AIM Global Telecommunications and Technology Fund
TAX-FREE INCOME FUNDS
AIM High Income Municipal Fund
AIM Municipal Bond Fund
AIM Tax-Exempt Bond Fund of Connecticut
AIM Tax-Free Intermediate Fund
</TABLE>
(1) Effective December 1, 1999, AIM Constellation Fund's investment strategy
broadened to allow investments across all market capitalizations. (2) AIM Mid
Cap Opportunities Fund closed to new investors on March 21, 2000. (3) AIM Small
Cap Growth Fund closed to new investors on November 8, 1999. (4) AIM Small Cap
Opportunities Fund closed to new investors on November 4, 1999. (5) On September
1, 1999, AIM Europe Growth Fund was renamed AIM Euroland Growth Fund. Previously
the fund invested in all size companies in most areas of Europe. The fund now
seeks to invest at least 65% of its assets in large-cap companies within
countries using the euro as their currency (EMU-member countries). (6) Effective
August 27, 1999, AIM Global Trends Fund was restructured to operate as a
traditional mutual fund. Before that date, the fund operated as a fund of funds.
For more complete information about any AIM fund(s), including sales charges and
expenses, ask your financial advisor or securities dealer for a free
prospectus(es). Please read the prospectus(es) carefully before you invest or
send money. If used as sales material after July 20, 2000, this report must be
accompanied by a current Quarterly Review of Performance for AIM Funds.
[AIM LOGO APPEARS HERE]
[DALBAR LOGO APPEARS HERE] -Registered Trademark--
INVEST WITH DEISCIPLINE
-Registered Trademark--
LCG-SAR-1
A I M Distributors, Inc.
