<PAGE> 1
SEMIANNUAL REPORT / APRIL 30 2000
AIM WEINGARTEN FUND
[COVER IMAGE]
[AIM LOGO APPEARS HERE]
--Registered Trademark--
<PAGE> 2
[COVER IMAGE]
-------------------------------------
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 UNFORGET-
TABLE OILS MAKE THIS POINT, OFTEN TAKING 13 YEARS OF DEDICATION
AND DILIGENCE TO COMPLETE. HER RICHLY COLORED "VIOLIN BOX"
REMINDS US ALL THAT ALL GOOD THINGS ARE WORTH THE WAIT.
-------------------------------------
AIM Weingarten Fund is for shareholders who seek long-term growth of capital
through investments primarily in common stocks of leading U.S. companies
considered by management to have strong earnings momentum.
ABOUT FUND PERFORMANCE AND PORTFOLIO DATA THROUGHOUT THIS REPORT:
o AIM Weingarten Fund's performance figures are historical, and they reflect
the reinvestment of 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 its Class A shares due to different sales-charge structure and class
expenses.
o In addition to the returns as of the close of the reporting period, shown
nearby, industry regulations require us to provide average annual total
returns (including sales charges) as of 3/31/00, the most recent calendar
quarter-end, which were: Class A shares, one year, 35.65%; five years,
28.81%; 10 years, 19.70%. Class B shares, one year, 37.39%; inception
(6/26/95), 27.63%. Class C shares, one year, 41.35%; inception (8/4/97),
30.11%.
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 Fund Index represents an average of
the performance of the 30 largest large-cap growth funds charted 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 stocks 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.
AVERAGE ANNUAL TOTAL RETURNS
As of 4/30/00, including sales charges
================================================================================
CLASS A SHARES
10 Years 19.11%
5 Years 26.54%
1 Year 27.73%*
*35.17%, excluding sales charges
CLASS B SHARES
Inception (6/26/95) 25.44%
1 Year 29.11%*
*34.11%, excluding CDSC
CLASS C SHARES
Inception (8/4/97) 26.13%
1 Year 33.09%*
*34.09%, excluding CDSC
Past performance does not 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.
================================================================================
AIM WEINGARTEN FUND
<PAGE> 3
SEMIANNUAL REPORT / CHAIRMAN'S LETTER
Dear Fellow Shareholder:
When we started AIM in 1976, we had only a table, two chairs
[PHOTO 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 WEINGARTEN FUND
<PAGE> 4
SEMIANNUAL REPORT / MANAGERS' OVERVIEW
-------------------------------------
THERE WERE MANY REASONS FOR THE
MARKETS' HEIGHTENED VOLATILITY,
INCLUDING CONTINUED INTEREST-RATE
HIKES BY THE FEDERAL RESERVE BOARD
AND SOMETIMES CONTRADICTORY
ECONOMIC INDICATORS.
-------------------------------------
WEINGARTEN FUND CONTINUES RECORD
OF OUTSTANDING PERFORMANCE
HOW DID AIM WEINGARTEN FUND PERFORM OVER THE LAST SIX MONTHS?
For the six months ended April 30, 2000, AIM Weingarten Fund delivered
outstanding returns and outperformed both the Lipper Large-Cap Growth Fund Index
and the Russell 1000 Index. The fund's total return was 26.20% for Class A
shares, 25.71% for Class B shares and 25.69% for Class C shares--each of which
handily beat the Lipper Large-Cap Growth Fund Index's 16.31% and the Russell
1000 Index's 9.72% returns for the reporting period. These performance figures
were calculated at net asset value, that is, without the effect of sales
charges.
The fund's assets continue to grow. Total net assets stood at $12.5 billion
on April 30, 2000, an increase of $2.9 billion over the six-month reporting
period.
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--precisely
the kind of stocks in which the fund does not invest. 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 widely diversified portfolio of 85 stocks in a variety of
sectors and industries at the close of the reporting period. Major sectors
repre-
FUND VS. INDEXES
For the six months ended 4/30/00,
excluding sales charges
================================================================================
(BAR CHART)
FUND CLASS A SHARES 26.20%
FUND CLASS B SHARES 25.71%
FUND CLASS C SHARES 25.69%
LIPPER LARGE-CAP GROWTH FUND INDEX 16.31%
RUSSELL 1000 INDEX 9.72%
================================================================================
GROWTH OF TOTAL NET ASSETS
================================================================================
(BAR CHART)
10/31/99
$9.6 BILLION
4/30/00
$12.5 BILLION
================================================================================
See important fund and index disclosures inside front cover.
AIM WEINGARTEN FUND
2
<PAGE> 5
SEMIANNUAL REPORT / MANAGERS' OVERVIEW
sented in the portfolio on April 30, 2000, were technology (58.9%), consumer
staples (11.9%), consumer cyclicals (8.1%), health care (8.0%) and capital goods
(6.0%). Within the technology sector, the fund held stock in a variety of
well-established companies in the communications equipment, semiconductor,
computer software and services and semiconductor equipment industries.
Technology stocks accounted for approximately 42% of the fund's holdings at
the beginning of the period and approximately 59% at its close. We reduced our
health-care holdings from about 15% to 8% of the fund's portfolio because many
health-care companies face potential problems; some pharmaceutical manufacturers
face patent expirations, some managed-care companies have seen rising costs and
reduced government reimbursements squeeze their earnings and some biotech
companies have been hurt by adverse decisions from the U.S. Food and Drug
Administration.
We slightly reduced our domestic holdings from 95% to 88% of the portfolio
during the period, and we increased our foreign holdings from about 5% to 12%.
The capitalization levels of our holdings remained essentially unchanged, with
roughly 90% of our holdings in the large- or super-cap range.
WHAT WERE SOME OF THE FUND'S MAJOR HOLDINGS?
A large percentage of the fund's holdings were in the technology sector--mainly
well-established, profitable companies that are leaders in their fields. One of
the fund's largest technology holdings, Sun Microsystems, reported extremely
strong quarterly earnings shortly before the close of the reporting period. Sun
is a leading maker of number-crunching workstation computers, storage devices
and servers for powering corporate computer systems and Web sites.
Many of the fund's non-tech holdings also performed well. Home Depot, a
stock we continue to like, is noted for its outstanding customer service. It
operates more than 950 stores coast to coast serving both professional builders
and "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. In the health-care sector, Warner-Lambert--the fund's largest
holding--makes some of the best-known consumer products on the market. But 60%
of its sales come from its pharmaceutical products, including Lipitor, a
market-leading cholesterol treatment.
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 that 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 Weingarten Fund will continue to own
well-managed, financially strong, industry-leading companies with the potential
to appreciate.
PORTFOLIO COMPOSITION
As of 4/30/00, based on total net assets
<TABLE>
<CAPTION>
=============================================================================================
TOP 10 HOLDINGS TOP 10 INDUSTRIES
---------------------------------------------------------------------------------------------
<S> <C> <C> <C>
1. Warner-Lambert Co. 3.87% 1. Communications Equipment 16.46%
2. Intel Corp. 3.55 2. Electronics (Semiconductors) 13.69
3. Telefonaktiebolaget 3.48 3. Computers (Software & Services) 9.40
LM Ericsson - ADR (Sweden)
4. Nortel Networks Corp. (Canada) 3.17 4. Broadcasting (Television, Radio 7.81
5. Sun Microsystems, Inc. 2.94 & Cable)
6. Oracle Corp. 2.88 5. Equipment (Semiconductor) 6.42
7. AT&T Corp. - 2.75 6. Health Care (Diversified) 5.46
Liberty Media Group - Class A 7. Electrical Equipment 5.29
8. Applied Materials, Inc. 2.74 8. Computers (Hardware) 3.96
9. Cisco Systems, Inc. 2.66 9. Entertainment 3.40
10. Teradyne, Inc. 2.49 10. Computers (Networking) 2.88
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 WEINGARTEN FUND
3
<PAGE> 6
SEMIANNUAL REPORT / FOR CONSIDERATION
A PROSPEROUS RETIREMENT: IT'S UP TO YOU,
AND IT CAN BE DONE
Many experts predict that Social Security could go broke sometime between 2020
and 2030 as the number of retirees outpaces the ability of the workforce to pay
for their benefits through taxes. Lawmakers are sharply divided on ways to
remedy this impending problem.
Meanwhile, the Social Security Administration is sending Americans a wake-up
call. The agency now mails annual contributions and benefit statements
to all workers covered by Social Security. You should receive your statement
three months before your birthday.
The most important information in the statement is an estimate of the
monthly retirement benefit you will receive at age 62, at full retirement and at
age 70. Many people may be shocked to learn how small that amount will be.
RETIREMENT IS EXPENSIVE
Social Security and pensions account for only 43% of the retirement income
needed by affluent retirees, according to the Social Security Administration and
the U.S. Bureau of Labor Statistics. The other 57% may need to come from
personal savings. Financial experts estimate that most people will need about
75% of their current annual income to maintain their lifestyle in retirement.
If you're depending on Social Security alone, you may have to scale back
your lifestyle considerably upon retirement.
WOULD YOU RATHER BE A MILLIONAIRE?
Of course you would. What to do? You could try to become a guest on the hit
television quiz show. A more practical way is to save and invest now for a
comfortable retirement later. But remember: when planning for retirement, time
can be your best friend--or your worst enemy. Time can affect your retirement
plans in three ways.
o The longer you wait to begin saving for retirement, the more you'll have to
save to accumulate the nest egg you'll need, as the table nearby shows.
o Even modest inflation means that each dollar you save today will be less
valuable 20 or 30 or 40 years from now. Over a 25-year period, a 2% annual
rate of inflation reduces the value (the "buying power") of $1,000 to just
$610.
o As Americans live longer, they need their retirement savings to last longer.
More and more Americans each year outlive their savings.
Let's estimate you'll need $1 million to live comfortably in retirement. How
much will you need to save each month to reach your goal--if you start early,
or if you wait to begin saving?
THE LESSON? START SAVING EARLY
Procrastination can be expensive. The longer you wait to begin your retirement
saving plan, the more you'll have to save
-------------------------------------------------------------------------------
WILL YOU HAVE ENOUGH FOR RETIREMENT?
Social Security and pensions account for 43% of the retirement income needed by
affluent retirees. The rest must come from personal savings.
================================================================================
[PIE CHART]
SOCIAL SECURITY AND PENSIONS 43%
PERSONAL SAVINGS 57%
Source: Social Security Administration and U.S. Bureau of Labor Statistics
================================================================================
[ARTWORK]
STARTING EARLY MAKES IT EASIER TO SAVE FOR RETIREMENT
<TABLE>
<CAPTION>
YEARS TO MONTHLY SAVINGS
CURRENT SAVE UNTIL RETIREMENT NEEDED TO
AGE RETIREMENT SAVINGS GOAL REACH GOAL
--------------------------------------------------------------------------------
<S> <C> <C> <C>
25 40 $1,000,000 $ 85
35 30 $1,000,000 $ 284
45 20 $1,000,000 $1,001
55 10 $1,000,000 $4,305
</TABLE>
All figures assume a 12% annual return on investments. This hypothetical example
is for illustrative purposes only and is not intended to represent the
performance of any particular fund, IRA or investor. Your actual return isn't
likely to be consistent from year to year and there is no guarantee that a
specific rate of return will be achieved.
AIM WEINGARTEN FUND
4
<PAGE> 7
SEMIANNUAL REPORT / FOR CONSIDERATION
each month to build an adequate retirement nest egg. The person who starts
saving at age 25 may be able to accumulate $1 million by saving just $85 a
month. Someone who waits to age 35 before beginning to save for retirement will
have to contribute more than three times as much each month to make up for lost
time!
START WITH A PRACTICAL INVESTMENT PLAN
A comfortable retirement is within your reach. But you will need a practical
investment plan to get there. So consider the four steps described here and talk
them over with your financial advisor. He or she can help you devise a plan and
choose investments suited to your unique circumstances.
1. IF YOU HAVE A 401(k) PLAN, CONTRIBUTE TO IT--AND MAKE THE MOST OF EMPLOYER
MATCHING. If your employer matches 401(k) contributions, contribute at
least enough to maximize the company's contribution. If the company match
is 5% of your salary, contribute at least 5% of your pay yourself. From
your stand-point, the employer contribution is "free" money.
2. CONTRIBUTE TO AN IRA TOO. Even if you cannot deduct an IRA contribution,
you can enjoy an IRA's tax-deferred compounding. And don't forget the added
advantage of the spousal IRA.
3. DIVERSIFY! Asset diversification helps manage risk because different types
of assets behave differently. If you put your retirement assets into mutual
funds, consider buying more than one type of fund.
4. IF YOU HAVE TIME, INVEST AGGRESSIVELY. Historically, small-company stocks
have provided the highest returns. They can be volatile in the short term,
but if you can be patient, consider including aggressive small-company
growth funds in your portfolio.
DOLLAR-COST AVERAGING TYPICALLY LOWERS THE COST OF INVESTING
One simple way to save for retirement is to use an installment plan. With a
strategy called dollar-cost averaging, you can commit a fixed amount of money to
an investment at regular intervals. There are several advantages to this plan:
o Regular investing of equal amounts helps you make the most of market highs
and lows. You automatically buy more shares when prices are low and fewer
shares when prices are high.
o Your average cost per share is less than your average price per share. The
only time this would not occur is if the share price remained constant.
o This strategy is especially appropriate for long-term investments, such as
retirement plans, because the longer you maintain a regular investment pro
gram, the more likely you will be to buy shares at a wide variety of
prices.
o By systematically investing, you will be less tempted to make decisions on
the basis of short-term events and your emotions. Your fortunes as an
investor won't depend on your ability to make the right call about future
trends.
Of course, no investment strategy--even dollar-cost averaging--is guaranteed
to result in profits or protect against losses in declining markets. Since
dollar-cost averaging involves continuous investing regardless of fluctuating
securities prices, you should consider your ability to continue purchases
through periods of low price levels.
WHAT SHOULD YOU DO?
Visit your financial advisor. He or she can help you determine how much money
you'll actually need in retirement and how to earn that money through careful
investments.
<TABLE>
<CAPTION>
DOLLAR-COST AVERAGING LOWERS COST OF INVESTING
AMOUNT SHARE SHARES
MONTH INVESTED PRICE PURCHASED
--------------------------------------------------------------------------------
<S> <C> <C> <C>
JANUARY $200.00 $24.00 8.333
FEBRUARY $200.00 $20.00 10.000
MARCH $200.00 $14.00 14.286
APRIL $200.00 $18.00 11.111
MAY $200.00 $22.00 9.091
JUNE $200.00 $24.00 8.333
SIX-MONTH TOTAL $1,200.00 $122.00 61.154
--------------------------------------------------------------------------------
</TABLE>
Average price per share: $122.00 divided by 6 equals $20.33;
Average cost to you per share: $1,200.00 divided by 61.154 equals $19.62
AIM WEINGARTEN FUND
5
<PAGE> 8
SCHEDULE OF INVESTMENTS
April 30, 2000
(Unaudited)
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
DOMESTIC COMMON STOCKS-81.98%
BIOTECHNOLOGY-0.35%
Amgen Inc.(a) 772,600 $ 43,265,600
---------------------------------------------------------------
BROADCASTING (TELEVISION, RADIO
& CABLE)-7.81%
AT&T Corp.-Liberty Media
Group-Class A(a) 6,900,000 344,568,750
---------------------------------------------------------------
Cablevision Systems Corp.-Class
A(a) 1,515,100 102,553,331
---------------------------------------------------------------
Comcast Corp.-Class A(a) 3,396,200 136,060,262
---------------------------------------------------------------
Cox Communications, Inc.-Class
A(a) 2,330,900 99,791,656
---------------------------------------------------------------
Infinity Broadcasting
Corp.-Class A(a) 6,327,400 214,736,137
---------------------------------------------------------------
UnitedGlobalCom Inc.-Class A(a) 1,500,000 79,687,500
---------------------------------------------------------------
977,397,636
---------------------------------------------------------------
COMMUNICATIONS EQUIPMENT-8.68%
ADC Telecommunications, Inc.(a) 497,900 30,247,425
---------------------------------------------------------------
Comverse Technology, Inc.(a) 1,426,000 127,181,375
---------------------------------------------------------------
Copper Mountain Networks,
Inc.(a) 1,435,200 119,659,800
---------------------------------------------------------------
Efficient Networks, Inc.(a) 565,200 37,161,900
---------------------------------------------------------------
JDS Uniphase Corp.(a) 1,400,000 145,162,500
---------------------------------------------------------------
Motorola, Inc. 1,750,000 208,359,375
---------------------------------------------------------------
PairGain Technologies,
Inc.(a)(b) 7,000,000 174,125,000
---------------------------------------------------------------
Polycom, Inc.(a) 136,100 10,768,912
---------------------------------------------------------------
QUALCOMM Inc.(a) 1,500,000 162,656,250
---------------------------------------------------------------
Scientific-Atlanta, Inc. 1,090,100 70,924,631
---------------------------------------------------------------
1,086,247,168
---------------------------------------------------------------
COMPUTERS (HARDWARE)-3.96%
Apple Computer, Inc.(a) 1,000,000 124,062,500
---------------------------------------------------------------
Palm, Inc.(a) 151,500 4,128,375
---------------------------------------------------------------
Sun Microsystems, Inc.(a) 4,000,000 367,750,000
---------------------------------------------------------------
495,940,875
---------------------------------------------------------------
COMPUTERS (NETWORKING)-2.88%
3Com Corp.(a) 684,000 26,975,250
---------------------------------------------------------------
Cisco Systems, Inc.(a) 4,800,000 332,775,000
---------------------------------------------------------------
359,750,250
---------------------------------------------------------------
COMPUTERS (PERIPHERALS)-1.70%
Advanced Digital Information
Corp.(a) 2,152,500 52,870,781
---------------------------------------------------------------
EMC Corp.(a) 1,150,000 159,778,125
---------------------------------------------------------------
212,648,906
---------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
COMPUTERS (SOFTWARE &
SERVICES)-8.92%
Adobe Systems, Inc. 871,800 $ 105,433,312
---------------------------------------------------------------
America Online, Inc.(a) 2,000,000 119,625,000
---------------------------------------------------------------
Citrix Systems, Inc.(a) 1,000,000 61,062,500
---------------------------------------------------------------
Gemstar International Group
Ltd.(a) 750,400 34,706,000
---------------------------------------------------------------
Intuit Inc.(a) 2,037,800 73,233,438
---------------------------------------------------------------
Microsoft Corp.(a) 1,300,000 90,675,000
---------------------------------------------------------------
Oracle Corp.(a) 4,500,000 359,718,750
---------------------------------------------------------------
Portal Software, Inc.(a) 1,400,000 64,225,000
---------------------------------------------------------------
Rational Software Corp.(a) 1,264,900 107,674,613
---------------------------------------------------------------
Siebel Systems, Inc.(a) 459,800 56,497,925
---------------------------------------------------------------
VERITAS Software Corp.(a) 400,000 42,906,250
---------------------------------------------------------------
1,115,757,788
---------------------------------------------------------------
ELECTRICAL EQUIPMENT-3.22%
Conexant Systems, Inc.(a) 1,200,000 71,850,000
---------------------------------------------------------------
General Electric Co. 1,000,000 157,250,000
---------------------------------------------------------------
Sanmina Corp.(a) 1,200,000 72,075,000
---------------------------------------------------------------
Symbol Technologies, Inc. 1,814,600 101,163,950
---------------------------------------------------------------
402,338,950
---------------------------------------------------------------
ELECTRONICS (COMPONENT
DISTRIBUTORS)-0.99%
Agilent Technologies, Inc.(a) 1,400,000 124,075,000
---------------------------------------------------------------
ELECTRONICS
(INSTRUMENTATION)-0.72%
PE Corp-PE Biosystems Group 1,495,700 89,742,000
---------------------------------------------------------------
ELECTRONICS
(SEMICONDUCTORS)-12.66%
Altera Corp.(a) 1,314,000 134,356,500
---------------------------------------------------------------
Analog Devices, Inc.(a) 2,600,000 199,712,500
---------------------------------------------------------------
Atmel Corp.(a) 1,300,000 63,618,750
---------------------------------------------------------------
Cypress Semiconductor Corp.(a) 2,000,000 103,875,000
---------------------------------------------------------------
Intel Corp. 3,500,000 443,843,750
---------------------------------------------------------------
LSI Logic Corp.(a) 2,500,000 156,250,000
---------------------------------------------------------------
Texas Instruments Inc. 1,700,000 276,887,500
---------------------------------------------------------------
Xilinx, Inc.(a) 2,800,000 205,100,000
---------------------------------------------------------------
1,583,644,000
---------------------------------------------------------------
ENTERTAINMENT-3.40%
Time Warner Inc. 2,200,000 197,862,500
---------------------------------------------------------------
TV Guide, Inc.-Class A(a) 1,832,400 54,628,425
---------------------------------------------------------------
</TABLE>
6
<PAGE> 9
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
ENTERTAINMENT-(CONTINUED)
Walt Disney Co. (The) 4,000,000 $ 173,250,000
---------------------------------------------------------------
425,740,925
---------------------------------------------------------------
EQUIPMENT (SEMICONDUCTOR)-6.42%
Applied Materials, Inc.(a) 3,361,000 342,191,813
---------------------------------------------------------------
Credence Systems Corp.(a) 525,000 74,943,750
---------------------------------------------------------------
KLA-Tencor Corp.(a) 1,000,000 74,875,000
---------------------------------------------------------------
Teradyne, Inc.(a) 2,830,000 311,300,000
---------------------------------------------------------------
803,310,563
---------------------------------------------------------------
FINANCIAL (DIVERSIFIED)-2.73%
Fannie Mae 2,800,000 168,875,000
---------------------------------------------------------------
Freddie Mac 3,750,000 172,265,625
---------------------------------------------------------------
341,140,625
---------------------------------------------------------------
HEALTH CARE (DIVERSIFIED)-5.46%
Allergan, Inc. 1,483,700 87,352,838
---------------------------------------------------------------
IVAX Corp.(a) 4,100,000 112,237,500
---------------------------------------------------------------
Warner-Lambert Co. 4,250,000 483,703,125
---------------------------------------------------------------
683,293,463
---------------------------------------------------------------
HEALTH CARE (DRUGS-GENERIC &
OTHER)-0.60%
Forest Laboratories, Inc.(a) 900,700 75,715,094
---------------------------------------------------------------
HEALTH CARE (MEDICAL PRODUCTS &
SUPPLIES)-0.41%
Medtronic, Inc. 1,000,000 51,937,500
---------------------------------------------------------------
INVESTMENT BANKING/BROKERAGE-1.23%
Morgan Stanley Dean Witter & Co. 2,000,000 153,500,000
---------------------------------------------------------------
MANUFACTURING
(DIVERSIFIED)-1.74%
Tyco International Ltd. 4,750,000 218,203,125
---------------------------------------------------------------
RETAIL (BUILDING SUPPLIES)-2.41%
Home Depot, Inc. (The) 3,532,500 198,040,781
---------------------------------------------------------------
Lowe's Cos., Inc. 2,081,100 103,014,450
---------------------------------------------------------------
301,055,231
---------------------------------------------------------------
RETAIL (COMPUTERS &
ELECTRONICS)-1.96%
Best Buy Co., Inc.(a) 2,392,100 193,162,075
---------------------------------------------------------------
Circuit City Stores-Circuit City
Group 879,900 51,749,119
---------------------------------------------------------------
244,911,194
---------------------------------------------------------------
RETAIL (GENERAL
MERCHANDISE)-0.96%
Costco Wholesale Corp.(a) 1,400,000 75,687,500
---------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
RETAIL (GENERAL MERCHANDISE)-(CONTINUED)
Target Corp. 670,000 $ 44,596,875
---------------------------------------------------------------
120,284,375
---------------------------------------------------------------
RETAIL (SPECIALTY)-0.35%
Tiffany & Co. 609,000 44,266,688
---------------------------------------------------------------
SERVICES (ADVERTISING/
MARKETING)-0.26%
TMP Worldwide, Inc.(a) 500,000 32,687,500
---------------------------------------------------------------
TELECOMMUNICATIONS (CELLULAR/
WIRELESS)-2.11%
Nextel Communications,
Inc.-Class A(a) 1,901,800 208,128,238
---------------------------------------------------------------
Western Wireless Corp.-Class
A(a) 1,115,100 55,406,531
---------------------------------------------------------------
263,534,769
---------------------------------------------------------------
TELEPHONE-0.05%
RCN Corp.(a) 201,300 5,762,213
---------------------------------------------------------------
Total Domestic Common Stocks
(Cost $6,388,309,193) 10,256,151,438
---------------------------------------------------------------
FOREIGN STOCKS & OTHER EQUITY
INTERESTS-11.87%
CANADA-4.20%
Celestica Inc. (Electronics-
Semiconductors)(a) 1,670,300 91,135,744
---------------------------------------------------------------
Nortel Networks Corp.
(Communications Equipment) 3,500,000 396,375,000
---------------------------------------------------------------
PMC-Sierra, Inc., (Electronics-
Semiconductors)(a) 195,000 37,415,625
---------------------------------------------------------------
524,926,369
---------------------------------------------------------------
FINLAND-1.14%
Nokia Oyj-ADR (Communications
Equipment) 2,500,000 142,187,500
---------------------------------------------------------------
HONG KONG-0.50%
China Telecom Ltd.
(Telecommunications-
Cellular/Wireless)(a) 8,720,100 62,412,773
---------------------------------------------------------------
ISRAEL-0.48%
Check Point Software
Technologies Ltd.
(Computers-Software &
Services)(a) 350,000 60,550,000
---------------------------------------------------------------
NETHERLANDS-2.07%
Koninklijke (Royal) Philips
Electronics N.V. (Electrical
Equipment) 3,794,080 169,382,475
---------------------------------------------------------------
Koninklijke (Royal) Philips
Electronics N.V.-ADR
(Electrical Equipment) 2,024,000 90,321,000
---------------------------------------------------------------
259,703,475
---------------------------------------------------------------
</TABLE>
7
<PAGE> 10
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
SWEDEN-3.48%
Telefonaktiebolaget LM Ericsson
A.B.-ADR (Communications
Equipment) 4,919,200 $ 435,041,750
---------------------------------------------------------------
Total Foreign Stocks & Other
Equity Interests
(Cost $882,102,120) 1,484,821,867
---------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
MONEY MARKET FUNDS-5.62%
STIC Liquid Assets Portfolio(c) 351,801,145 $ 351,801,145
---------------------------------------------------------------
STIC Prime Portfolio(c) 351,801,145 351,801,145
---------------------------------------------------------------
Total Money Market Funds
(Cost $703,602,290) 703,602,290
---------------------------------------------------------------
TOTAL INVESTMENTS-99.47%
(Cost $7,974,013,603) 12,444,575,595
---------------------------------------------------------------
OTHER ASSETS LESS
LIABILITIES-0.53% 65,874,384
---------------------------------------------------------------
NET ASSETS-100.00% $12,510,449,979
===============================================================
</TABLE>
Investment Abbreviations:
ADR - American Depositary Receipt
Notes to Schedule of Investments:
(a) Non-income producing security.
(b) Affiliated issuers are those in which the Fund's holdings of an issuer
represent 5% or more of the outstanding voting securities of the issuer. The
Fund has not owned enough of the outstanding voting securities of the issuer
to have control (as defined in the Investment Company Act of 1940) of that
issuer. The market value as of 04/30/00 represented 1.39% of the Fund's net
assets.
(c) The money market fund has the same investment advisor as the Fund.
See Notes to Financial Statements.
8
<PAGE> 11
STATEMENT OF ASSETS AND LIABILITIES
April 30, 2000
(Unaudited)
<TABLE>
<S> <C>
ASSETS:
Investments, at market value (Cost
$7,974,013,603) $12,444,575,595
-------------------------------------------------------------
Receivables for:
Investments sold 84,915,434
-------------------------------------------------------------
Capital stock sold 21,953,732
-------------------------------------------------------------
Dividends 4,928,190
-------------------------------------------------------------
Investment for deferred compensation plan 157,009
-------------------------------------------------------------
Other assets 215,166
-------------------------------------------------------------
Total assets 12,556,745,126
-------------------------------------------------------------
LIABILITIES:
Payables for:
Investments purchased 19,023,243
-------------------------------------------------------------
Capital stock reacquired 13,450,657
-------------------------------------------------------------
Deferred compensation plan 157,009
-------------------------------------------------------------
Accrued advisory fees 5,787,006
-------------------------------------------------------------
Accrued administrative services fees 43,550
-------------------------------------------------------------
Accrued distribution fees 5,398,215
-------------------------------------------------------------
Accrued directors' fees 3,262
-------------------------------------------------------------
Accrued transfer agent fees 1,605,200
-------------------------------------------------------------
Accrued operating expenses 827,005
-------------------------------------------------------------
Total liabilities 46,295,147
-------------------------------------------------------------
Net assets applicable to shares
outstanding $12,510,449,979
=============================================================
</TABLE>
<TABLE>
<S> <C>
NET ASSETS:
Class A $10,197,685,764
=============================================================
Class B $ 1,918,822,773
=============================================================
Class C $ 246,853,752
=============================================================
Institutional Class $ 147,087,690
=============================================================
CAPITAL STOCK, $0.001 PAR VALUE PER SHARE:
Class A:
Authorized 750,000,000
-------------------------------------------------------------
Outstanding 317,271,947
=============================================================
Class B:
Authorized 750,000,000
-------------------------------------------------------------
Outstanding 62,451,528
=============================================================
Class C:
Authorized 750,000,000
-------------------------------------------------------------
Outstanding 8,029,894
=============================================================
Institutional Class:
Authorized 200,000,000
-------------------------------------------------------------
Outstanding 4,453,393
=============================================================
Class A :
Net asset value and redemption price per
share $ 32.14
-------------------------------------------------------------
Offering price per share:
(Net asset value of $32.14
divided by 94.50%) $ 34.01
=============================================================
Class B :
Net asset value and offering price per
share $ 30.72
=============================================================
Class C :
Net asset value and offering price per
share $ 30.74
=============================================================
Institutional Class:
Net asset value, offering and redemption
price per share $ 33.03
=============================================================
</TABLE>
STATEMENT OF OPERATIONS
For the six months ended April 30, 2000
(Unaudited)
<TABLE>
<S> <C>
INVESTMENT INCOME:
Dividends (net of foreign withholding tax
$637,556) $ 31,048,622
-------------------------------------------------------------
Interest 24,589
-------------------------------------------------------------
Total investment income 31,073,211
-------------------------------------------------------------
EXPENSES:
Advisory fees 36,503,704
-------------------------------------------------------------
Administrative services fee 233,704
-------------------------------------------------------------
Custodian fees 404,308
-------------------------------------------------------------
Distribution fees-Class A 14,418,877
-------------------------------------------------------------
Distribution fees-Class B 8,300,610
-------------------------------------------------------------
Distribution fees-Class C 863,405
-------------------------------------------------------------
Transfer agent fees-Class A 4,974,608
-------------------------------------------------------------
Transfer agent fees-Class B 1,596,856
-------------------------------------------------------------
Transfer agent fees-Class C 166,100
-------------------------------------------------------------
Transfer agent fees-Institutional Class 10,398
-------------------------------------------------------------
Directors' fees 29,721
-------------------------------------------------------------
Other 804,989
-------------------------------------------------------------
Total expenses 68,307,280
-------------------------------------------------------------
Less: Fees waived (3,227,861)
-------------------------------------------------------------
Expenses paid indirectly (104,346)
-------------------------------------------------------------
Net expenses 64,975,073
-------------------------------------------------------------
Net investment income (loss) (33,901,862)
-------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENT SECURITIES, FOREIGN CURRENCIES,
FUTURES AND OPTION CONTRACTS:
Net realized gain (loss) from:
Investment securities 1,372,535,546
-------------------------------------------------------------
Foreign currencies (23,046)
-------------------------------------------------------------
Futures contracts 9,049,301
-------------------------------------------------------------
Option contracts written (152,474,766)
-------------------------------------------------------------
1,229,087,035
-------------------------------------------------------------
Change in net unrealized appreciation
(depreciation) of:
Investment securities 1,296,928,915
-------------------------------------------------------------
Foreign currencies (56,459)
-------------------------------------------------------------
Option contracts written 20,384,517
-------------------------------------------------------------
1,317,256,973
-------------------------------------------------------------
Net gain on investment securities, foreign
currencies, futures and option contracts 2,546,344,008
-------------------------------------------------------------
Net increase in net assets resulting from
operations $ 2,512,442,146
=============================================================
</TABLE>
See Notes to Financial Statements.
9
<PAGE> 12
STATEMENTS OF CHANGES IN NET ASSETS
For the six months ended April 30, 2000 and the year ended October 31, 1999
(Unaudited)
<TABLE>
<CAPTION>
APRIL 30, OCTOBER 31,
2000 1999
--------------- --------------
<S> <C> <C>
OPERATIONS:
Net investment income (loss) $ (33,901,862) $ (41,231,383)
-----------------------------------------------------------------------------------------------
Net realized gain from investment securities, foreign
currencies, futures and option contracts 1,229,087,035 1,252,613,276
-----------------------------------------------------------------------------------------------
Change in net unrealized appreciation of investment
securities, foreign currencies, futures and option
contracts 1,317,256,973 1,427,968,629
-----------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 2,512,442,146 2,639,350,522
-----------------------------------------------------------------------------------------------
Distributions to shareholders from net investment income:
Class A -- (3,691,627)
-----------------------------------------------------------------------------------------------
Institutional Class -- (343,112)
-----------------------------------------------------------------------------------------------
Distributions in excess of net investment income:
Class A -- (377,640)
-----------------------------------------------------------------------------------------------
Institutional Class -- (5,008)
-----------------------------------------------------------------------------------------------
Distributions to shareholders from net realized gains:
Class A (912,260,788) (404,965,108)
-----------------------------------------------------------------------------------------------
Class B (156,092,170) (49,731,739)
-----------------------------------------------------------------------------------------------
Class C (13,701,260) (1,700,816)
-----------------------------------------------------------------------------------------------
Institutional Class (12,672,994) (4,837,664)
-----------------------------------------------------------------------------------------------
Share transactions-net:
Class A 908,471,129 95,538,920
-----------------------------------------------------------------------------------------------
Class B 442,991,458 347,953,526
-----------------------------------------------------------------------------------------------
Class C 125,308,195 70,937,422
-----------------------------------------------------------------------------------------------
Institutional Class 15,273,792 16,644,022
-----------------------------------------------------------------------------------------------
Net increase in net assets 2,909,759,508 2,704,771,698
-----------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 9,600,690,471 6,895,918,773
-----------------------------------------------------------------------------------------------
End of period $12,510,449,979 $9,600,690,471
===============================================================================================
NET ASSETS CONSIST OF:
Capital (par value and additional paid-in) $ 6,771,395,955 $5,279,351,381
-----------------------------------------------------------------------------------------------
Undistributed net investment income (loss) (34,219,416) (317,554)
-----------------------------------------------------------------------------------------------
Undistributed net realized gain from investment
securities, foreign currencies, futures and option
contracts 1,302,779,550 1,168,419,727
-----------------------------------------------------------------------------------------------
Unrealized appreciation of investment securities, foreign
currencies, futures and option contracts 4,470,493,890 3,153,236,917
-----------------------------------------------------------------------------------------------
$12,510,449,979 $9,600,690,471
===============================================================================================
</TABLE>
See Notes to Financial Statements.
10
<PAGE> 13
NOTES TO FINANCIAL STATEMENTS
April 30, 2000
(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 eleven 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 growth of capital primarily
by investing in common stocks of seasoned and better-capitalized companies.
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.
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.
11
<PAGE> 14
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. Covered Call Options--The Fund may write call options, on a covered
basis; that is, the Fund will own the underlying security. Options written
by the Fund normally will have expiration dates between three and nine
months from the date written. The exercise price of a call option may be
below, equal to, or above the current market value of the underlying
security at the time the option is written. When the Fund writes a covered
call option, an amount equal to the premium received by the Fund is
recorded as an asset and an equivalent liability. The amount of the
liability is subsequently "marked-to-market" to reflect the current market
value of the option written. The current market value of a written option
is the 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.
H. 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, the Fund pays an option premium. The option's underlying instrument
may be a security or a futures contract. Put options may be used by the
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.
I. Futures Contracts--The Fund may purchase or sell futures contracts as a
hedge against changes in market conditions. Initial margin deposits
required upon entering into futures contracts are satisfied by the
segregation of specific securities as collateral for the account of the
broker (the Fund's agent in acquiring the futures position). During the
period the futures contracts are open, changes in the value of the
contracts are recognized as unrealized gains or losses by "marking to
market" on a daily basis to reflect the market value of the contracts at
the end of each day's trading. Variation margin payments are made or
received depending upon whether unrealized gains or losses are incurred.
When the contracts are closed, the Fund recognizes a realized gain or loss
equal to the difference between the proceeds from, or cost of, the closing
transaction and the Fund's basis in the contract. Risks include the
possibility of an illiquid market and that a change in value of the
contracts may not correlate with changes in the value of the securities
being hedged.
J. 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 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 has agreed to waive advisory fees payable by the Fund to AIM at the
annual rate of 0.025% of the Fund's average daily net assets in excess of $2
billion to and including $3 billion, 0.05% of the Fund's average daily net
assets in excess of $3 billion to and including $4 billion and 0.075% of the
Fund's average daily net assets in excess of $4 billion. During the six months
ended April 30, 2000, AIM waived fees of $3,227,861. 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 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 $233,704 for such services.
12
<PAGE> 15
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 $3,271,266 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 and a master distribution agreement with
Fund Management Company ("FMC") to serve as the distributor for the
Institutional Class 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 0.30% 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
$14,418,877, $8,300,610 and $863,405, respectively, as compensation under the
Plans.
AIM Distributors received commissions of $1,950,209 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 $50,445 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
$7,364 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 $69,518 and $34,828, respectively, under expense offset arrangements.
The effect of the above arrangements resulted in a reduction of the Fund's total
expenses of $104,346 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.
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
$7,027,937,951 and $7,025,291,262, 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 $4,649,612,370
----------------------------------------------------------
Aggregate unrealized (depreciation) of
investment securities (179,635,901)
----------------------------------------------------------
Net unrealized appreciation of investment
securities $4,469,976,469
==========================================================
</TABLE>
Cost of investments for tax purposes is $7,974,599,126.
13
<PAGE> 16
NOTE 7-CALL OPTION CONTRACTS
Transactions in call options written during the six months ended April 30, 2000
are summarized as follows:
<TABLE>
<CAPTION>
CALL OPTION CONTRACTS
-------------------------
NUMBER OF PREMIUMS
CONTRACTS RECEIVED
--------- -------------
<S> <C> <C>
Beginning of period 91,902 $ 116,996,621
---------------------------------------------------------------------------------------
Closed (85,877) (111,818,048)
---------------------------------------------------------------------------------------
Exercised (6,025) (5,178,573)
---------------------------------------------------------------------------------------
End of period -- --
=======================================================================================
</TABLE>
NOTE 8-CAPITAL STOCK
Changes in capital stock outstanding during the six months ended April 30, 2000
and the year ended 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 21,015,269 $ 664,683,008 38,697,927 $ 994,480,979
-----------------------------------------------------------------------------------------------------------------------------
Class B 13,469,522 408,162,135 17,982,789 456,125,945
-----------------------------------------------------------------------------------------------------------------------------
Class C 4,170,001 126,711,972 3,622,407 92,753,207
-----------------------------------------------------------------------------------------------------------------------------
Institutional Class 563,947 17,973,394 826,477 21,885,030
-----------------------------------------------------------------------------------------------------------------------------
Issued as reinvestment of dividends:
Class A 29,963,045 854,823,238 16,540,521 383,078,048
-----------------------------------------------------------------------------------------------------------------------------
Class B 5,414,733 148,087,523 2,102,927 47,274,883
-----------------------------------------------------------------------------------------------------------------------------
Class C 480,419 13,149,061 71,213 1,602,275
-----------------------------------------------------------------------------------------------------------------------------
Institutional Class 428,931 12,554,824 217,868 5,146,039
-----------------------------------------------------------------------------------------------------------------------------
Reacquired:
Class A (19,454,850) (611,035,117) (50,133,647) (1,282,020,107)
-----------------------------------------------------------------------------------------------------------------------------
Class B (3,760,234) (113,258,200) (6,174,366) (155,447,302)
-----------------------------------------------------------------------------------------------------------------------------
Class C (481,445) (14,552,838) (926,007) (23,418,060)
-----------------------------------------------------------------------------------------------------------------------------
Institutional Class (478,272) (15,254,426) (391,478) (10,387,047)
-----------------------------------------------------------------------------------------------------------------------------
51,331,066 $1,492,044,574 22,436,631 $ 531,073,890
=============================================================================================================================
</TABLE>
14
<PAGE> 17
NOTE 9-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
---------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED OCTOBER 31,
APRIL 30, ------------------------------------------------------------------
2000 1999 1998 1997 1996 1995
----------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 28.31 $ 21.72 $ 22.72 $ 20.19 $ 20.33 $ 17.82
---------------------------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income (loss) (0.07) (0.10) 0.02 0.01 0.06 --
---------------------------------------------------------------------------------------------------------------------------------
Net gains on securities (both realized and
unrealized) 7.09 8.16 2.38 4.82 2.51 4.36
---------------------------------------------------------------------------------------------------------------------------------
Total from investment operations 7.02 8.06 2.40 4.83 2.57 4.36
---------------------------------------------------------------------------------------------------------------------------------
Less distributions:
Dividends from net investment income -- (0.01) -- (0.06) -- (0.07)
---------------------------------------------------------------------------------------------------------------------------------
Distributions from net realized gains (3.19) (1.46) (3.40) (2.24) (2.71) (1.78)
---------------------------------------------------------------------------------------------------------------------------------
Total distributions (3.19) (1.47) (3.40) (2.30) (2.71) (1.85)
---------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 32.14 $ 28.31 $ 21.72 $ 22.72 $ 20.19 $ 20.33
=================================================================================================================================
Total return(a) 26.24% 38.62% 12.34% 26.83% 14.81% 28.20%
=================================================================================================================================
Ratios/supplemental data:
Net assets, end of period (000s omitted) $10,197,686 $8,089,739 $6,094,178 $5,810,582 $4,977,493 $4,564,730
=================================================================================================================================
Ratio of expenses to average net assets:
With fee waivers 1.00%(b) 1.03% 1.04% 1.07% 1.12% 1.17%
=================================================================================================================================
Without fee waivers 1.06%(b) 1.08% 1.09% 1.11% 1.15% 1.19%
=================================================================================================================================
Ratio of net investment income (loss) to
average net assets (0.46)%(b) (0.38)% 0.07% 0.07% 0.33% (0.02)%
=================================================================================================================================
Portfolio turnover rate 64% 124% 125% 128% 159% 139%
=================================================================================================================================
</TABLE>
(a) Does not deduct sales charges and is not annualized for periods less than
one year.
(b) Ratios are annualized and based on average net assets of $9,665,401,167.
<TABLE>
<CAPTION>
CLASS B
---------------------------------------------------------------------------------------
JUNE 26, 1995
(DATE SALES
SIX MONTHS ENDED YEAR ENDED OCTOBER 31, COMMENCED)
APRIL 30, ---------------------------------------------- TO
2000(a) 1999(a) 1998(a) 1997(a) 1996(a) OCTOBER 31, 1995
---------------- ---------- -------- -------- -------- -----------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 27.29 $ 21.12 $ 22.34 $ 19.98 $ 20.28 $ 18.56
---------------------------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income (loss) (0.19) (0.30) (0.15) (0.15) (0.05) (0.03)
---------------------------------------------------------------------------------------------------------------------------------
Net gains on securities (both realized
and unrealized) 6.81 7.93 2.33 4.75 2.46 1.75
---------------------------------------------------------------------------------------------------------------------------------
Total from investment operations 6.62 7.63 2.18 4.60 2.41 1.72
---------------------------------------------------------------------------------------------------------------------------------
Less distributions from net realized
gains (3.19) (1.46) (3.40) (2.24) (2.71) --
---------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 30.72 $ 27.29 $ 21.12 $ 22.34 $ 19.98 $ 20.28
=================================================================================================================================
Total return(b) 25.72% 37.59% 11.45% 25.78% 13.95% 9.27%
=================================================================================================================================
Ratios/supplemental data:
Net assets, end of period (000s omitted) $1,918,823 $1,291,456 $705,750 $486,105 $267,459 $42,238
=================================================================================================================================
Ratio of expenses to average net assets:
With fee waivers 1.79%(c) 1.82% 1.83% 1.87% 1.95% 1.91%(d)
=================================================================================================================================
Without fee waivers 1.85%(c) 1.87% 1.87% 1.91% 1.98% 1.94%(d)
=================================================================================================================================
Ratio of net investment income (loss) to
average net assets (1.25)%(c) (1.17)% (0.72)% (0.73)% (0.50)% (0.76)%(d)
=================================================================================================================================
Portfolio turnover rate 64% 124% 125% 128% 159% 139%
=================================================================================================================================
</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) Ratios are annualized and based on average net assets of $1,669,243,452.
(d) Annualized.
15
<PAGE> 18
NOTE 9-FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
CLASS C
-----------------------------------------------------------------
AUGUST 4, 1997
YEAR ENDED (DATE SALES
SIX MONTHS ENDED OCTOBER 31, COMMENCED)
APRIL 30, -------------------- TO
2000(a) 1999(a) 1998(a) OCTOBER 31, 1997(a)
---------------- -------- ------- -------------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 27.30 $ 21.14 $ 22.34 $22.83
-------------------------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income (loss) (0.19) (0.30) (0.15) (0.04)
-------------------------------------------------------------------------------------------------------------------------------
Net gains on securities (both realized and unrealized) 6.82 7.92 2.35 (0.45)
-------------------------------------------------------------------------------------------------------------------------------
Total from investment operations 6.63 7.62 2.20 (0.49)
-------------------------------------------------------------------------------------------------------------------------------
Less distributions from net realized gains (3.19) (1.46) (3.40) --
-------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 30.74 $ 27.30 $ 21.14 $22.34
===============================================================================================================================
Total return(b) 25.74% 37.50% 11.54% 2.15%
===============================================================================================================================
Ratios/supplemental data:
Net assets, end of period (000s omitted) $246,854 $105,420 $23,107 $2,326
===============================================================================================================================
Ratio of expenses to average net assets:
With fee waivers 1.79%(c) 1.82% 1.83% 1.84%(d)
===============================================================================================================================
Without fee waivers 1.85%(c) 1.87% 1.87% 1.88%(d)
===============================================================================================================================
Ratio of net investment income (loss) to average net assets (1.25)%(c) (1.17)% (0.72)% (0.70)%(d)
===============================================================================================================================
Portfolio turnover rate 64% 124% 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) Ratios are annualized and based on average net assets of $173,629,752.
(d) Annualized.
16
<PAGE> 19
<TABLE>
<S> <C> <C>
BOARD OF DIRECTORS OFFICERS OFFICE OF THE FUND
Charles T. Bauer Charles T. Bauer 11 Greenway Plaza
Chairman Chairman Suite 100
A I M Management Group Inc. Houston, TX 77046
Robert H. Graham
Bruce L. Crockett President INVESTMENT ADVISOR
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 SUB-ADVISOR
Director Edgar M. Larsen
Cortland Trust Inc. Senior Vice President A I M Capital Management, Inc.
11 Greenway Plaza
Edward K. Dunn Jr. Dana R. Sutton Suite 100
Chairman, Mercantile Mortgage Corp.; Vice President and Treasurer Houston, TX 77046
Formerly Vice Chairman and President,
Mercantile-Safe Deposit & Trust Co.; and Melville B. Cox TRANSFER AGENT
President, Mercantile Bankshares Vice President
A I M Fund Services, Inc.
Jack Fields Mary J. Benson P.O. Box 4739
Chief Executive Officer Assistant Vice President and Houston, TX 77210-4739
Texana Global, Inc.; Assistant Treasurer
Formerly Member CUSTODIAN
of the U.S. House of Representatives Sheri Morris
Assistant Vice President and State Street Bank and Trust Company
Carl Frischling Assistant Treasurer 225 Franklin Street
Partner Boston, MA 02110
Kramer, Levin, Naftalis & Frankel LLP Renee A. Friedli
Assistant Secretary COUNSEL TO THE FUND
Robert H. Graham
President and Chief Executive Officer P. Michelle Grace Ballard Spahr
A I M Management Group Inc. Assistant Secretary Andrews & Ingersoll, LLP
1735 Market Street
Prema Mathai-Davis Nancy L. Martin Philadelphia, PA 19103
Chief Executive Officer, YWCA of the U.S.A. Assistant Secretary
COUNSEL TO THE DIRECTORS
Lewis F. Pennock Ofelia M. Mayo
Attorney Assistant Secretary Kramer, Levin, Naftalis & Frankel LLP
919 Third Avenue
Louis S. Sklar Lisa A. Moss New York, NY 10022
Executive Vice President Assistant Secretary
Hines Interests DISTRIBUTOR
Limited Partnership Kathleen J. Pflueger
Assistant Secretary A I M Distributors, Inc.
11 Greenway Plaza
Samuel D. Sirko Suite 100
Assistant Secretary Houston, TX 77046
</TABLE>
<PAGE> 20
THE AIM FAMILY OF FUNDS--REGISTERED TRADEMARK--
<TABLE>
<S> <C> <C>
GROWTH FUNDS INTERNATIONAL GROWTH FUNDS A I M Management Group Inc.
AIM Aggressive Growth Fund AIM Advisor International Value Fund has provided leadership in the
AIM Blue Chip Fund AIM Asian Growth Fund mutual fund industry since
AIM Capital Development Fund AIM Developing Markets Fund 1976 and managed approximately
AIM Constellation Fund(1) AIM Euroland Growth Fund(5) $176 billion in assets for
AIM Dent Demographic Trends Fund AIM European Development Fund more than 7.4 million
AIM Emerging Growth Fund AIM International Equity Fund shareholders, including
AIM Large Cap Growth Fund AIM Japan Growth Fund individual investors,
AIM Large Cap Opportunities Fund AIM Latin American Growth Fund corporate clients and
AIM Mid Cap Equity Fund financial institutions, as of
AIM Mid Cap Growth Fund GLOBAL GROWTH FUNDS March 31, 2000.
AIM Mid Cap Opportunities Fund(2) AIM Global Aggressive Growth Fund The AIM Family of
AIM Select Growth Fund AIM Global Growth Fund Funds--REGISTERED
AIM Small Cap Growth Fund(3) AIM Global Trends Fund(6) TRADEMARK--is distributed
AIM Small Cap Opportunities Fund(4) nationwide, and AIM today is
AIM Value Fund GLOBAL GROWTH & INCOME FUNDS the eighth-largest mutual fund
AIM Weingarten Fund AIM Global Utilities Fund complex in the United States
in assets under management,
GROWTH & INCOME FUNDS GLOBAL INCOME FUNDS according to Strategic
AIM Advisor Flex Fund AIM Global Income Fund Insight, an independent mutual
AIM Advisor Real Estate Fund AIM Strategic Income Fund fund monitor.
AIM Balanced Fund
AIM Basic Value Fund THEME FUNDS
AIM Charter Fund AIM Global Consumer Products and Services Fund
AIM Global Financial Services Fund
INCOME FUNDS AIM Global Health Care Fund
AIM Floating Rate Fund AIM Global Infrastructure Fund
AIM High Yield Fund AIM Global Resources Fund
AIM High Yield Fund II AIM Global Telecommunications and Technology Fund
AIM Income Fund
AIM Intermediate Government Fund
AIM Limited Maturity Treasury 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
MONEY MARKET FUNDS
AIM Money Market Fund
AIM Tax-Exempt Cash 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.
[DALBAR LOGO APPEARS HERE] [AIM LOGO APPEARS HERE]
--Registered Trademark--
INVEST WITH DISCIPLINE
--Registered Trademark--
AIM Distributions, Inc.
WEI-SAR-1
