<PAGE> 1
SEMIANNUAL REPORT / APRIL 30, 2000
AIM EQUITY FUNDS, INC.
INSTITUTIONAL CLASSES
[COVER IMAGE]
[AIM LOGO APPEARS HERE]
--Registered Trademark--
<PAGE> 2
TABLE OF CONTENTS
AIM Charter Fund 2-14
AIM Constellation Fund 15-28
AIM Weingarten Fund 29-42
AN INVESTMENT IN THESE FUNDS 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.
<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 call our Client Services
department at 800-659-1005 during normal business hours.
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.
<PAGE> 4
AIM CHARTER FUND
AIM Charter Fund is for shareholders who seek growth of capital with a
secondary objective of current income. The fund invests in the securities of
companies that have prospects for both capital growth and dividend income.
ABOUT FUND PERFORMANCE AND PORTFOLIO DATA THROUGHOUT THIS REPORT:
o AIM Charter Fund's performance figures are historical, and they reflect the
reinvestment of distributions and changes in net asset value.
o The fund's investment return and principal value will fluctuate, so an
investor's shares, when redeemed, may be worth more or less than their
original cost.
ABOUT INDEXES AND OTHER PERFORMANCE BENCHMARKS CITED IN THIS REPORT:
o The Dow Jones Industrial Average (the Dow) is a price-weighted average of 30
actively traded primarily industrial stocks.
o The unmanaged 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 stock
universe. While it includes many small and mid-sized company stocks,
large-capitalization technology companies tend to dominate the index.
o The unmanaged Standard & Poor's Composite Index of 500 Stocks (the S&P 500)
represents the performance of the stock market in general.
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
The fund's average annual total returns as of the close of the reporting period
are shown in the manager's overview on the pages that follow. In addition,
industry regulations require us to provide average annual returns as of 3/31/00
(the most recent calendar quarter-end), which were:
================================================================================
Inception (7/30/91) 19.29%
5 Years 28.32
1 Year 34.45
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.
2
<PAGE> 5
SEMIANNUAL REPORT / MANAGERS' OVERVIEW
AIM CHARTER FUND WEATHERS MARKET VOLATILITY
THE STOCK MARKET ENDED 1999 STRONG BUT EXPERIENCED SOME BUMPS IN THE FIRST
MONTHS OF 2000. HOW DID AIM CHARTER FUND PERFORM?
For the six-month reporting period, AIM Charter Fund turned in an excellent
performance. As of April 30, 2000, the fund's Institutional Class shares had
total returns of 17.75%, handily outperforming the S&P 500, which had a
six-month return of 7.18% as of April 30. Net assets in the fund jumped from
$66.8 million to $82.0 million over the reporting period.
WHAT WAS THE MARKET ENVIRONMENT LIKE OVER THE PAST SIX MONTHS?
After an almost uninterrupted rise through the final months of 1999, stocks
began hitting air pockets early in 2000. The large-company-driven Dow hit its
all-time high in mid-January. But a variety of factors converged to shake
market confidence and led to unusual volatility in March and April:
o U.S. economic growth continued to sizzle, with an annualized growth rate
above 7% for the fourth quarter of 1999 and above 5% in the first quarter of
2000. These numbers led many to believe that the Federal Reserve Board (the
Fed) might implement a larger rate hike in May because its five rate hikes
since June 1999 did not slow the economy.
o The March court ruling that Microsoft (a fund holding) had exercised illegal
monopoly powers cast a pall over the whole technology sector, which was
already subject to misgivings about the untested heights to which many
tech-stock values had risen.
o The Employment Cost Index, which tracks wages and benefits, rose 1.4% in the
first quarter of 2000, its highest rate in more than 10 years. This hinted
at rising inflation and jolted investors. Low inflation, combined with
robust economic growth, has been a major element nurturing the long bull
market of the `90s.
For all the headline-making one-day dips and dives among various benchmarks,
it's worth noting that the most widely reported stock indexes all gained during
the six months covered by this report. A great deal of the market's volatility
was confined to some very high-flying tech stocks that saw their values plummet
in the Nasdaq shakeout late in the reporting period. For the most part, company
earnings reports continued to be positive for the first quarter of 2000 across a
broad array of industries, from banking and health care to energy and certain
technologies.
DID YOU MANAGE THE FUND DIFFERENTLY, GIVEN THE MARKET'S VOLATILITY?
We maintained our bias toward larger, more established companies. Our
investment discipline holds that we do not try to time the market by moving in
and out of stocks that go in and out of favor for various reasons. Instead, we
look at companies in terms of their earnings--we focus on companies in growth
industries or sectors and strive to understand what's behind the numbers, what
factors drive a company's earnings and if those factors are sustainable. This
allows us to make buy and sell decisions based on concrete research rather than
market sentiment.
WHAT WERE THE FUND'S TOP SECTOR WEIGHTINGS?
Technology, financials, health care and consumer cyclicals (such as retail
companies) continue to have the heaviest weightings in the fund's portfolio.
Over the past six months, we increased our tech weighting from 32% to 42%,
particularly in the telecommunications-equipment industry. This industry
continues to see tremendous
-------------------------------------
WE MAINTAINED OUR BIAS TOWARD
LARGER, MORE ESTABLISHED COMPANIES.
-------------------------------------
GROWTH OF NET ASSETS
In millions
================================================================================
Bar Chart
10/31/99 $ 66.8
4/30/00 $ 82.0
================================================================================
THE DECLINE OF DIVIDENDS
For the first time in recent history, a quarter of the value of the S&P 500
comes from companies that do not pay dividends. (A dividend is a distribution
of earnings to shareholders.) Twenty years ago, only 2% of the index's value
came from such companies. What has changed?
A company previously used dividends to convince investors that it was
successful and worthy of investment. Today, many investors consider stocks less
risky than they used to, so the demand for dividends has decreased. Fewer
companies are raising dividends, and increasing numbers of major companies are
not paying them at all.
What does this mean for AIM Charter Fund? In February, the fund's investment
policy was changed to allow it to respond to market conditions such as this
downward dividend trend. Companies that pay or raise their dividends will
continue to be an important part of the fund's portfolio, but so will
high-quality growth companies.
AIM CHARTER FUND
3
<PAGE> 6
SEMIANNUAL REPORT / MANAGERS' OVERVIEW
growth because of the global wireless boom and increased levels of spending by
large corporations positioning themselves to compete in the Internet economy. We
have slightly reduced our weightings in financials and health care to take
advantage of better growth opportunities in the tech sector.
WHAT TECH-RELATED COMPANIES HAVE YOU FAVORED?
The fund owns high-quality, market-leading technology companies that are
generating strong earnings growth ahead of analysts' expectations. For example,
Cisco Systems continues to be a standout holding. Cisco is the world's largest
manufacturer of computer networking equipment--the switches and routers that
direct data across the Internet. In March, Cisco overtook Microsoft as the
world's most valuable company in terms of market capitalization.
We have increased the fund's position in Finland-based Nokia, which holds
more than a quarter of the world's mobile-phone market. Nokia, which posted a
55% increase in net income for the first quarter of 2000, is touting the
prospects of its next generation of mobile phones, which will receive data and
provide better Internet access.
WHAT OTHER HOLDINGS HAVE BENEFITED THE FUND?
In financials, we own established banks or brokerage firms that have profited
from the strong financial and IPO markets. Morgan Stanley Dean Witter, an
investment-banking and retail-brokerage powerhouse, is a top fund holding. The
firm reported a 50% increase in its fiscal first-quarter income over the
previous year. Of particular benefit to the firm's revenue was its underwriting
of tech-related companies.
Drug manufacturer Warner-Lambert, our largest holding, continues to see
strong sales of its cholesterol-lowering drug Lipitor. The company reported
positive earnings for the first quarter of 2000, beating analysts' expectations
despite the generally unfavorable performance of the health-care sector.
Warner-Lambert has announced plans to merge with pharmaceutical giant Pfizer, a
move that will create one of the world's largest and fastest-growing drug
companies.
WHAT IS YOUR NEAR-TERM OUTLOOK?
After the close of the reporting period, the Fed raised the federal funds rate
by 0.5% to 6.5%. Recent economic indicators, such as a 30-year low for the U.S.
unemployment rate, led the Fed to be more aggressive in its attempts to fend
off impending inflationary tendencies in the economy. While investors'
inflation fears may cause some short-term market volatility, we believe that
the environment for equities remains largely favorable. Whatever economic
trends surface, we will maintain our philosophy of investing in high-quality
growth companies.
FUND BEATS S&P 500
Total returns for the six months ended 4/30/00, excluding sales charges
================================================================================
Bar Chart
AIM CHARTER FUND INSTITUTIONAL CLASS 17.75%
S&P 500 7.18%
================================================================================
AVERAGE ANNUAL TOTAL RETURNS
As of 4/30/00
================================================================================
Inception (7/30/91) 18.18%
5 years 25.85
1 year 23.93
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.
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. 5.00% 1. Computers (Software & Services) 12.90%
2. Tyco International Ltd. 4.55 2. Communications Equipment 10.35
3. Target Corp. 4.39 3. Health Care (Diversified) 7.32
4. Cisco Systems, Inc. 3.81 4. Retail (General Merchandise) 5.68
5. Morgan Stanley Dean Witter, & Co. 3.37 5. Financial (Diversified) 5.09
6. Nokia Corp. ADR (Finland) 3.00 6. Electronics (Semiconductors) 5.04
7. VERITAS Software Corp. 2.95 7. Manufacturing (Diversified) 4.54
8. Novell, Inc. 2.70 8. Investment Banking/Brokerage 4.49
9. Citigroup, Inc. 2.61 9. Computers (Hardware) 4.26
10. General Electric Co. 2.59 10. Computers (Networking) 3.81
The fund's portfolio is subject to change, and there is no assurance that the
fund will continue to hold any particular security.
============================================================================================
</TABLE>
AIM CHARTER FUND
4
<PAGE> 7
SCHEDULE OF INVESTMENTS
April 30, 2000
(Unaudited)
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
COMMON STOCKS & OTHER EQUITY
INTERESTS-89.87%
BANKS (MONEY CENTER)-2.38%
Chase Manhattan Corp. (The) 3,000,000 $ 216,187,500
---------------------------------------------------------------
BROADCASTING (TELEVISION, RADIO &
CABLE)-2.64%
AT&T Corp.-Liberty Media
Group-Class A(a) 2,000,000 99,875,000
---------------------------------------------------------------
Comcast Corp.-Class A(a) 3,500,000 140,218,750
---------------------------------------------------------------
240,093,750
---------------------------------------------------------------
COMMUNICATIONS EQUIPMENT-9.36%
Corning Inc.(b) 250,000 49,375,000
---------------------------------------------------------------
JDS Uniphase Corp.(a) 1,200,000 124,425,000
---------------------------------------------------------------
Motorola, Inc. 1,150,000 136,921,875
---------------------------------------------------------------
Nokia Oyj-ADR (Finland) 4,800,000 273,000,000
---------------------------------------------------------------
Nortel Networks Corp. (Canada) 800,000 90,600,000
---------------------------------------------------------------
Telefonaktiebolaget LM Ericsson
A.B.-ADR (Sweden) 2,000,000 176,875,000
---------------------------------------------------------------
851,196,875
---------------------------------------------------------------
COMPUTERS (HARDWARE)-3.90%
Dell Computer Corp.(a) 2,500,000 125,312,500
---------------------------------------------------------------
Sun Microsystems, Inc.(a) 2,500,000 229,843,750
---------------------------------------------------------------
355,156,250
---------------------------------------------------------------
COMPUTERS (NETWORKING)-3.81%
Cisco Systems, Inc.(a) 5,000,000 346,640,625
---------------------------------------------------------------
COMPUTERS (PERIPHERALS)-1.53%
EMC Corp.(a) 1,000,000 138,937,500
---------------------------------------------------------------
COMPUTERS (SOFTWARE & SERVICES)-11.36%
Intuit Inc.(a) 800,000 28,750,000
---------------------------------------------------------------
Microsoft Corp.(a) 2,500,000 174,375,000
---------------------------------------------------------------
Novell, Inc.(a) 12,500,000 245,312,500
---------------------------------------------------------------
Oracle Corp.(a) 2,500,000 199,843,750
---------------------------------------------------------------
VERITAS Software Corp.(a) 2,500,000 268,164,062
---------------------------------------------------------------
Vitria Technology, Inc.(a) 1,043,100 38,529,506
---------------------------------------------------------------
Yahoo! Inc.(a) 600,000 78,150,000
---------------------------------------------------------------
1,033,124,818
---------------------------------------------------------------
ELECTRICAL EQUIPMENT-3.11%
General Electric Co. 1,500,000 235,875,000
---------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
ELECTRICAL EQUIPMENT-(CONTINUED)
Solectron Corp.(a) 1,000,000 $ 46,812,500
---------------------------------------------------------------
282,687,500
---------------------------------------------------------------
ELECTRONICS
(SEMICONDUCTORS)-5.04%
Celestica Inc. (Canada)(a) 1,350,000 73,659,375
---------------------------------------------------------------
Intel Corp. 1,500,000 190,218,750
---------------------------------------------------------------
Linear Technology Corp. 700,000 39,987,500
---------------------------------------------------------------
Texas Instruments Inc. 950,000 154,731,250
---------------------------------------------------------------
458,596,875
---------------------------------------------------------------
ENTERTAINMENT-1.90%
Time Warner Inc. 500,000 44,968,750
---------------------------------------------------------------
Walt Disney Co. (The) 2,963,900 128,373,919
---------------------------------------------------------------
173,342,669
---------------------------------------------------------------
EQUIPMENT (SEMICONDUCTOR)-1.12%
Applied Materials, Inc.(a) 1,000,000 101,812,500
---------------------------------------------------------------
FINANCIAL (DIVERSIFIED)-5.09%
American Express Co. 1,500,000 225,093,750
---------------------------------------------------------------
Citigroup Inc. 4,000,000 237,750,000
---------------------------------------------------------------
462,843,750
---------------------------------------------------------------
HEALTH CARE (DIVERSIFIED)-7.32%
Allergan, Inc. 1,000,000 58,875,000
---------------------------------------------------------------
American Home Products Corp. 2,000,000 112,375,000
---------------------------------------------------------------
Bristol-Myers Squibb Co. 750,000 39,328,125
---------------------------------------------------------------
Warner-Lambert Co. 4,000,000 455,250,000
---------------------------------------------------------------
665,828,125
---------------------------------------------------------------
HEALTH CARE (DRUGS-GENERIC & OTHER)-0.64%
Genetech, Inc.(a) 500,000 58,500,000
---------------------------------------------------------------
HEALTH CARE (DRUGS-MAJOR
PHARMACEUTICALS)-0.55%
Pharmacia Corp. 1,000,000 49,937,500
---------------------------------------------------------------
HEALTH CARE (HOSPITAL MANAGEMENT)-0.53%
Health Management Associates,
Inc.-Class A(a) 3,000,000 47,812,500
---------------------------------------------------------------
HEALTH CARE (MANAGED CARE)-0.92%
UnitedHealth Group Inc. 1,250,000 83,359,375
---------------------------------------------------------------
</TABLE>
AIM CHARTER FUND
5
<PAGE> 8
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
HEALTH CARE (MEDICAL PRODUCTS &
SUPPLIES)-1.04%
Guidant Corp.(a) 750,000 $ 43,031,250
---------------------------------------------------------------
Medtronic, Inc. 1,000,000 51,937,500
---------------------------------------------------------------
94,968,750
---------------------------------------------------------------
INSURANCE (MULTI-LINE)-2.41%
American International Group,
Inc. 2,000,000 219,375,000
---------------------------------------------------------------
INSURANCE BROKERS-0.65%
Marsh & McLennan Cos. Inc. 600,000 59,137,500
---------------------------------------------------------------
INVESTMENT
BANKING/BROKERAGE-4.49%
Merrill Lynch & Co., Inc. 1,000,000 101,937,500
---------------------------------------------------------------
Morgan Stanley Dean Witter & Co. 4,000,000 307,000,000
---------------------------------------------------------------
408,937,500
---------------------------------------------------------------
MANUFACTURING (DIVERSIFIED)-4.54%
Tyco International Ltd. 9,000,000 413,437,500
---------------------------------------------------------------
OIL & GAS (DRILLING & EQUIPMENT)-1.65%
Schlumberger Ltd. 1,350,000 103,359,375
---------------------------------------------------------------
Transocean Sedco Forex Inc. 1,000,000 47,000,000
---------------------------------------------------------------
150,359,375
---------------------------------------------------------------
OIL (INTERNATIONAL
INTEGRATED)-1.28%
Exxon Mobil Corp. 1,500,000 116,531,250
---------------------------------------------------------------
RAILROADS-0.97%
Kansas City Southern Industries,
Inc. 1,228,100 88,269,688
---------------------------------------------------------------
RETAIL (BUILDING SUPPLIES)-1.36%
Home Depot, Inc. (The) 1,500,000 84,093,750
---------------------------------------------------------------
Lowe's Cos., Inc. 800,000 39,600,000
---------------------------------------------------------------
123,693,750
---------------------------------------------------------------
RETAIL (DEPARTMENT STORES)-0.66%
Kohl's Corporation(a)(b) 1,250,000 60,000,000
---------------------------------------------------------------
RETAIL (DRUG STORES)-0.62%
Walgreen Co. 2,000,000 56,250,000
---------------------------------------------------------------
RETAIL (GENERAL
MERCHANDISE)-5.68%
Costco Wholesale Corp.(a) 1,400,000 75,687,500
---------------------------------------------------------------
Target Corp. 6,000,000 399,375,000
---------------------------------------------------------------
Wal-Mart Stores, Inc. 750,000 41,531,250
---------------------------------------------------------------
516,593,750
---------------------------------------------------------------
RETAIL (SPECIALTY)-0.61%
Amazon.com, Inc.(a) 1,000,000 55,187,500
---------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
SERVICES (COMMERCIAL & CONSUMER)-0.15%
Cendant Corp.-Rts., expiring
02/14/01(c) 1,500,000 $ 13,593,750
---------------------------------------------------------------
SERVICES (DATA PROCESSING)-1.07%
First Data Corp. 2,000,000 97,375,000
---------------------------------------------------------------
TELECOMMUNICATIONS (CELLULAR/
WIRELESS)-1.49%
Nextel Communications, Inc.-Class
A(a) 1,021,400 111,779,463
---------------------------------------------------------------
Vodafone Air Touch PLC-ADR
(United Kingdom) 500,000 23,500,000
---------------------------------------------------------------
135,279,463
---------------------------------------------------------------
Total Common Stocks & Other
Equity Interests (Cost
$5,418,117,214) 8,175,047,888
---------------------------------------------------------------
CONVERTIBLE PREFERRED STOCKS-2.03%
CHEMICALS (DIVERSIFIED)-0.40%
Monsanto Co., $2.60 Conv. Pfd. 800,000 36,200,000
---------------------------------------------------------------
ELECTRIC COMPANIES-1.63%
Houston Industries, Inc.-$3.29
Conv. Pfd. 1,000,000 148,062,500
---------------------------------------------------------------
Total Convertible Preferred
Stocks (Cost $121,971,232) 184,262,500
---------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
<S> <C> <C>
CONVERTIBLE BONDS & NOTES-3.60%
COMMUNICATIONS EQUIPMENT-0.99%
Juniper Networks, Inc., Unsec.
Conv. Bonds, 4.75%, 03/15/07 $60,000,000 54,975,000
---------------------------------------------------------------
Redback Networks, Inc., Conv.
Notes, 5.00%, 04/01/07
(Acquired 04/13/00-04/17/00;
Cost $33,675,750)(d) 50,000,000 35,437,500
---------------------------------------------------------------
90,412,500
---------------------------------------------------------------
COMPUTERS (HARDWARE)-0.36%
Candescent Technology Corp.,
Conv. Deb., 7.00%, 05/01/03
(Acquired 03/07/00; Cost
$9,360,000)(d) 11,700,000 9,477,000
---------------------------------------------------------------
Candescent Technology Corp., Sr.
Conv. Sub. Deb., 7.00%,
05/01/03 (Acquired
04/17/98-11/30/98; Cost
$27,943,750)(d) 28,300,000 22,923,000
---------------------------------------------------------------
32,400,000
---------------------------------------------------------------
COMPUTERS (SOFTWARE &
SERVICES)-1.55%
VERITAS Software Corp., Conv.
Unsec. Notes, 5.25%, 11/01/04 12,500,000 140,562,500
---------------------------------------------------------------
</TABLE>
AIM CHARTER FUND
6
<PAGE> 9
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
<S> <C> <C>
RETAIL (SPECIALTY)-0.70%
Amazon.com, Inc., Conv. Sub.
Deb., 4.75%, 02/01/09 $75,000,000 $ 63,750,000
---------------------------------------------------------------
Total Convertible Bonds &
Notes (Cost $221,483,382) 327,125,000
---------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
SHARES
<S> <C> <C>
MONEY MARKET FUNDS-4.60%
STIC Liquid Assets Portfolio(e) 209,333,447 209,333,447
---------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
MONEY MARKET FUNDS-(CONTINUED)
STIC Prime Portfolio(e) 209,333,447 $ 209,333,447
---------------------------------------------------------------
Total Money Market Funds
(Cost $418,666,894) 418,666,894
---------------------------------------------------------------
TOTAL INVESTMENTS-100.10% (Cost
$6,180,238,722) 9,105,102,282
---------------------------------------------------------------
LIABILITIES LESS OTHER
ASSETS-(0.10%) (8,664,938)
---------------------------------------------------------------
NET ASSETS-100.00% $9,096,437,344
===============================================================
</TABLE>
Investment Abbreviations:
ADR - American Depositary Receipt
Conv. - Convertible
Deb. - Debentures
Pfd. - Preferred
Rts. - Rights
Sec. - Secured
Sr. - Senior
Sub. - Subordinated
Unsec. - Unsecured
Notes to Schedule of Investments:
(a) Non-income producing security.
(b) A portion of this security is subject to call options written. See Note 7.
(c) Non-income producing security acquired as part of a unit with or in exchange
for other securities.
(d) Restricted security. May be resold to qualified institutional buyers in
accordance with the provisions of Rule 144A under the Securities Act of
1933, as amended. The valuation of these securities has been determined in
accordance with procedures established by the Board of Directors. The
aggregate market value of these securities at 04/30/00 was $67,837,500 which
represented 7.46% of the Fund's net assets.
(e) The money market fund has the same investment advisor as the Fund.
See Notes to Financial Statements.
AIM CHARTER FUND
7
<PAGE> 10
STATEMENT OF ASSETS AND LIABILITIES
April 30, 2000
(Unaudited)
<TABLE>
<S> <C>
ASSETS:
Investments, at market value (cost
$6,180,238,722) $9,105,102,282
-------------------------------------------------------------
Receivables for:
Capital stock sold 27,717,554
-------------------------------------------------------------
Dividends and Interest 9,073,073
-------------------------------------------------------------
Investment for deferred compensation plan 101,324
-------------------------------------------------------------
Other assets 149,706
-------------------------------------------------------------
Total assets 9,142,143,939
-------------------------------------------------------------
LIABILITIES:
Payables for:
Investments purchased 18,336,180
-------------------------------------------------------------
Capital stock reacquired 9,710,683
-------------------------------------------------------------
Deferred compensation plan 101,324
-------------------------------------------------------------
Options written (premiums received
$4,212,984) 7,086,250
-------------------------------------------------------------
Accrued advisory fees 4,534,775
-------------------------------------------------------------
Accrued administrative services fees 31,726
-------------------------------------------------------------
Accrued distribution fees 4,718,715
-------------------------------------------------------------
Accrued directors' fees 3,167
-------------------------------------------------------------
Accrued transfer agent fees 805,828
-------------------------------------------------------------
Accrued operating expenses 377,947
-------------------------------------------------------------
Total liabilities 45,706,595
-------------------------------------------------------------
Net assets applicable to shares outstanding $9,096,437,344
=============================================================
NET ASSETS:
Class A $5,836,427,480
=============================================================
Class B $2,885,007,464
=============================================================
Class C $ 293,301,650
=============================================================
Institutional Class $ 81,700,750
-------------------------------------------------------------
CAPITAL STOCK, $0.001 PAR VALUE PER SHARE:
Class A:
Authorized 750,000,000
-------------------------------------------------------------
Outstanding 312,103,212
=============================================================
Class B:
Authorized 750,000,000
-------------------------------------------------------------
Outstanding 156,775,658
=============================================================
Class C:
Authorized 750,000,000
-------------------------------------------------------------
Outstanding 15,896,208
=============================================================
Institutional Class:
Authorized 750,000,000
-------------------------------------------------------------
Outstanding 4,316,388
=============================================================
Class A:
Net asset value, and redemption price per
share $ 18.70
-------------------------------------------------------------
Offering price per share:
(Net asset value of $18.70 divided
by 94.50%) $ 19.79
=============================================================
Class B:
Net asset value and offering price per
share $ 18.40
=============================================================
Class C:
Net asset value and offering price per
share $ 18.45
=============================================================
Institutional Class:
Net asset value, offering and redemption
price per share $ 18.93
=============================================================
</TABLE>
STATEMENT OF OPERATIONS
For the six months ended April 30, 2000
(Unaudited)
<TABLE>
<S> <C>
INVESTMENT INCOME:
Dividends (net of foreign withholding tax
$211,486) $ 32,051,145
-------------------------------------------------------------
Interest 4,190,372
-------------------------------------------------------------
Total investment income 36,241,517
-------------------------------------------------------------
EXPENSES:
Advisory fees 26,658,365
-------------------------------------------------------------
Administrative services fee 183,509
-------------------------------------------------------------
Custodian fees 225,137
-------------------------------------------------------------
Distribution fees -- Class A 8,365,548
-------------------------------------------------------------
Distribution fees -- Class B 13,052,206
-------------------------------------------------------------
Distribution fees -- Class C 1,047,229
-------------------------------------------------------------
Transfer agent fees -- Class A 2,746,450
-------------------------------------------------------------
Transfer agent fees -- Class B 2,096,911
-------------------------------------------------------------
Transfer agent fees -- Class C 168,243
-------------------------------------------------------------
Transfer agent fees -- Institutional Class 5,807
-------------------------------------------------------------
Directors' fees 19,399
-------------------------------------------------------------
Other 1,003,798
-------------------------------------------------------------
Total expenses 55,572,602
-------------------------------------------------------------
Less: Fees waived (811,784)
-------------------------------------------------------------
Expenses paid indirectly (62,129)
-------------------------------------------------------------
Net expenses 54,698,689
-------------------------------------------------------------
Net investment income (loss) (18,457,172)
-------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENT SECURITIES, FOREIGN CURRENCIES
AND OPTION CONTRACTS:
Net realized gain (loss) from:
Investment securities 669,287,772
-------------------------------------------------------------
Foreign currencies 48
-------------------------------------------------------------
Option contracts written (9,113,794)
-------------------------------------------------------------
660,174,026
-------------------------------------------------------------
Change in net unrealized appreciation
(depreciation) of:
Investment securities 643,288,938
-------------------------------------------------------------
Foreign currencies (43,683)
-------------------------------------------------------------
Option contracts written (2,698,576)
-------------------------------------------------------------
640,546,679
-------------------------------------------------------------
Net gain on investment securities, foreign
currencies and option contracts 1,300,720,705
-------------------------------------------------------------
Net increase in net assets resulting from
operations $1,282,263,533
=============================================================
</TABLE>
See Notes to Financial Statements.
AIM CHARTER FUND
8
<PAGE> 11
STATEMENT 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) $ (18,457,172) $ (7,207,717)
----------------------------------------------------------------------------------------------
Net realized gain from investment securities, foreign
currencies and option contracts 660,174,026 657,364,994
----------------------------------------------------------------------------------------------
Change in net unrealized appreciation of investment
securities, foreign currencies and option contracts 640,546,679 1,116,552,041
----------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 1,282,263,533 1,766,709,318
----------------------------------------------------------------------------------------------
Distributions to shareholders from net investment income:
Class A -- (9,134,542)
----------------------------------------------------------------------------------------------
Institutional Class -- (216,682)
----------------------------------------------------------------------------------------------
Distributions to shareholders from net realized gains:
Class A (388,577,391) (149,620,112)
----------------------------------------------------------------------------------------------
Class B (178,887,591) (57,712,333)
----------------------------------------------------------------------------------------------
Class C (12,095,929) (1,614,093)
----------------------------------------------------------------------------------------------
Institutional Class (5,231,737) (1,761,967)
----------------------------------------------------------------------------------------------
Share transactions-net:
Class A 413,365,371 151,495,357
----------------------------------------------------------------------------------------------
Class B 475,317,315 370,892,559
----------------------------------------------------------------------------------------------
Class C 141,343,677 84,930,162
----------------------------------------------------------------------------------------------
Institutional Class 8,254,798 9,431,197
----------------------------------------------------------------------------------------------
Net increase in net assets 1,735,752,046 2,163,398,864
----------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 7,360,685,298 5,197,286,434
----------------------------------------------------------------------------------------------
End of period $9,096,437,344 $7,360,685,298
==============================================================================================
NET ASSETS CONSIST OF:
Capital (par value and additional paid-in) $5,504,734,405 $4,466,453,244
----------------------------------------------------------------------------------------------
Undistributed net investment income (loss) (18,674,280) (217,108)
----------------------------------------------------------------------------------------------
Undistributed net realized gain from investment
securities, foreign currencies and option contracts 688,438,463 613,057,085
----------------------------------------------------------------------------------------------
Unrealized appreciation of investment securities, foreign
currencies and option contracts 2,921,938,756 2,281,392,077
----------------------------------------------------------------------------------------------
$9,096,437,344 $7,360,685,298
==============================================================================================
</TABLE>
See Notes to Financial Statements.
AIM CHARTER FUND
9
<PAGE> 12
NOTES TO FINANCIAL STATEMENTS
April 30, 2000
(Unaudited)
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES
AIM Charter 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 with a
secondary objective of current income.
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.
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
AIM CHARTER FUND
10
<PAGE> 13
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. Bond Premiums--It is the policy of the Fund not to amortize market premiums
on bonds for financial reporting purposes.
I. 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 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 $150 million, plus
0.625% of the Fund's average daily net assets in excess of $150 million. AIM has
agreed to waive advisory fees paid 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. During
the six months ended April 30, 2000, AIM waived fees of $811,784. 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 $183,509 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 $2,643,163 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
$8,365,548, $13,052,206 and $1,047,229, respectively, as compensation under the
Plans.
AIM Distributors received commissions of $1,715,641 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 $72,752 in contingent deferred
sales charges imposed on redemptions of Fund shares.
AIM CHARTER FUND
11
<PAGE> 14
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
$5,867 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 $50,878 and $11,251, respectively, under expense offset arrangements.
The effect of the above arrangements resulted in a reduction of the Fund's total
expenses of $62,129 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
$4,197,679,275 and $3,937,733,974, 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 $2,991,113,383
----------------------------------------------------------
Aggregate unrealized (depreciation) of
investment securities (76,783,628)
----------------------------------------------------------
Net unrealized appreciation of investment
securities $2,914,329,755
==========================================================
Cost of investments for tax purposes is $6,190,772,527.
</TABLE>
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 22,500 $ 25,481,560
----------------------------------------------- -------- ------------
Written 16,000 9,432,948
----------------------------------------------- -------- ------------
Closed (13,681) (21,219,307)
----------------------------------------------- -------- ------------
Exercised (3,000) (2,407,419)
----------------------------------------------- -------- ------------
Expired (16,819) (7,074,798)
----------------------------------------------- -------- ------------
End of period 5,000 $ 4,212,984
=============================================== ======== ============
</TABLE>
Open call option contracts written at April 30, 2000 were as follows:
<TABLE>
<CAPTION>
NUMBER APRIL 30, UNREALIZED
CONTRACT STRIKE OF PREMIUMS 2000 APPRECIATION
ISSUE MONTH PRICE CONTRACTS RECEIVED MARKET VALUE (DEPRECIATION)
----- -------- ------ --------- ---------- ------------ --------------
<S> <C> <C> <C> <C> <C> <C>
Corning, Inc. May-00 $170 850 $1,388,429 $2,624,375 $(1,235,946)
Corning, Inc. May-00 175 850 1,165,311 2,295,000 (1,129,689)
Corning, Inc. May-00 180 800 916,769 1,870,000 (953,231)
Kohls Corp. May-00 52.5 2,500 742,475 296,875 445,600
------- ---------- ---------- -----------
5,000 $4,212,984 $7,086,250 $(2,873,266)
============= ====== ==== ======= ========== ========== ===========
</TABLE>
AIM CHARTER FUND
12
<PAGE> 15
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 27,888,891 $ 515,451,062 51,272,783 $ 809,088,837
------------------------------------------------------------------------------------------------------------------------
Class B 26,318,356 480,310,853 36,310,602 576,056,633
------------------------------------------------------------------------------------------------------------------------
Class C 7,967,333 146,015,716 6,968,661 111,866,437
------------------------------------------------------------------------------------------------------------------------
Institutional Class 472,348 8,881,907 828,138 13,421,969
------------------------------------------------------------------------------------------------------------------------
Issued as reinvestment of dividends:
Class A 21,348,673 366,548,415 10,532,077 149,384,623
------------------------------------------------------------------------------------------------------------------------
Class B 9,983,386 169,087,741 3,894,826 54,866,091
------------------------------------------------------------------------------------------------------------------------
Class C 672,773 11,427,814 107,859 1,525,822
------------------------------------------------------------------------------------------------------------------------
Institutional Class 294,478 5,109,184 134,608 1,929,704
------------------------------------------------------------------------------------------------------------------------
Reacquired:
Class A (25,463,229) (468,634,106) (51,731,503) (806,978,103)
------------------------------------------------------------------------------------------------------------------------
Class B (9,556,633) (174,081,279) (16,551,587) (260,030,165)
------------------------------------------------------------------------------------------------------------------------
Class C (883,118) (16,099,853) (1,788,368) (28,462,097)
------------------------------------------------------------------------------------------------------------------------
Institutional Class (305,898) (5,736,293) (372,429) (5,920,476)
------------------------------------------------------------------------------------------------------------------------
58,737,360 $1,038,281,161 39,605,667 $ 616,749,275
========================================================================================================================
</TABLE>
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>
INSTITUTIONAL CLASS
-----------------------------------------------------------------------
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 $ 17.33 $ 13.42 $ 13.48 $ 11.24 $ 10.66 $ 8.93
----------------------------------------------------- ------- ------- ------- ------- ------- -------
Income from investment operations:
Net investment income 0.02 0.09 0.18 0.16 0.24 0.23
----------------------------------------------------- ------- ------- ------- ------- ------- -------
Net gains (losses) on securities (both realized
and unrealized) 2.93 4.43 1.24 2.91 1.44 2.07
----------------------------------------------------- ------- ------- ------- ------- ------- -------
Total from investment operations 2.95 4.52 1.42 3.07 1.68 2.30
----------------------------------------------------- ------- ------- ------- ------- ------- -------
Less distributions:
Dividends from net investment income -- (0.07) (0.14) (0.16) (0.20) (0.24)
----------------------------------------------------- ------- ------- ------- ------- ------- -------
Distributions from net realized gains (1.35) (0.54) (1.34) (0.67) (0.90) (0.33)
----------------------------------------------------- ------- ------- ------- ------- ------- -------
Total distributions (1.35) (0.61) (1.48) (0.83) (1.10) (0.57)
----------------------------------------------------- ------- ------- ------- ------- ------- -------
Net asset value, end of period $ 18.93 $ 17.33 $ 13.42 $ 13.48 $ 11.24 $ 10.66
===================================================== ======= ======= ======= ======= ======= =======
Total return 17.75% 34.61% 11.69% 29.05% 17.29% 27.45%
===================================================== ======= ======= ======= ======= ======= =======
Ratios/supplemental data:
Net assets, end of period (000s omitted) $81,701 $66,801 $43,815 $40,191 $29,591 $25,538
===================================================== ======= ======= ======= ======= ======= =======
Ratio of expenses to average net assets:
With fee waivers 0.65%(a) 0.65% 0.66% 0.67% 0.69% 0.74%
===================================================== ======= ======= ======= ======= ======= =======
Without fee waivers 0.67%(a) 0.67% 0.67% 0.68% 0.70% 0.74%
===================================================== ======= ======= ======= ======= ======= =======
Ratio of net investment income to average net assets 0.20%(a) 0.51% 1.37% 1.21% 2.24% 1.98%
===================================================== ======= ======= ======= ======= ======= =======
Portfolio turnover rate 97% 107% 154% 170% 164% 161%
===================================================== ======= ======= ======= ======= ======= =======
</TABLE>
(a) Ratios are annualized based on average net assets of $78,012,638.
AIM CHARTER FUND
13
<PAGE> 16
<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 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 Fund Management Company
11 Greenway Plaza
Samuel D. Sirko Suite 100
Assistant Secretary Houston, TX 77002
</TABLE>
AIM CHARTER FUND
14
<PAGE> 17
AIM CONSTELLATION FUND
AIM Constellation Fund is for shareholders who seek growth of capital by
investing principally in common stocks of companies the portfolio managers
believe are likely to benefit from new or innovative products, services or
processes as well as those that have experienced above-average long-term growth
in earnings and have excellent prospects for future growth.
ABOUT FUND PERFORMANCE AND PORTFOLIO DATA THROUGHOUT THIS REPORT:
o AIM Constellation Fund's performance figures are historical, and they
reflect the reinvestment of distributions and changes in net asset value.
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.
o Investing in small and mid-sized companies may involve greater risk and
potential reward than investing in more established companies.
ABOUT INDEXES AND OTHER PERFORMANCE BENCHMARKS CITED IN THIS REPORT:
o The Dow Jones Industrial Average (the Dow) is a price-weighted average of 30
actively traded primarily industrial stocks.
o The unmanaged Lipper Multi-Cap Growth Fund Index represents an average of
the performance of the 30 largest multi-cap growth funds tracked by Lipper,
Inc., an independent mutual fund performance monitor.
o The unmanaged 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 stock
universe. While it includes many small and mid-sized company stocks,
large-capitalization technology companies tend to dominate the index.
o The unmanaged Russell 2000 Index represents the performance of stocks of
small-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 The unmanaged Standard & Poor's MidCap 400 Index (the S&P 400) comprises the
common stocks of approximately 400 mid-capitalization companies.
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
The fund's average annual total returns as of the close of the reporting period
are shown in the manager's overview on the pages that follow. In addition,
industry regulations require us to provide average annual returns as of 3/31/00
(the most recent calendar quarter-end), which were:
================================================================================
Inception (4/8/92) 23.00%
5 Years 26.97
1 Year 67.97
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.
AIM CONSTELLATION FUND
15
<PAGE> 18
SEMIANNUAL REPORT / MANAGERS' OVERVIEW
FUND WEATHERS MARKET SELL-OFF, RECORDS EXCELLENT RETURNS
AFTER SOARING TO NEW HEIGHTS, STOCK INDEXES PLUNGED AS THE REPORTING PERIOD
CLOSED. HOW DID AIM CONSTELLATION FUND PERFORM?
Despite a steep drop in several key market indexes in April, the fund posted an
impressive return for the six-month period ended April 30, 2000. Total return
for the Institutional Class was 34.00%. The fund outperformed both the S&P 500
and the Lipper Multi-Cap Growth Fund Index, which recorded gains of 7.18% and
30.26%, respectively, over the same period.
While technology stocks were volatile, the fund's heavy weighting in this
sector enhanced performance. Over the reporting period, the fund's total net
assets grew from $15.3 million to $20.7 million.
WHAT WERE THE KEY TRENDS IN THE STOCK MARKET?
For most of the reporting period, technology stocks were the undisputed market
leaders. Tech stocks helped push the Dow, the Nasdaq and other market indexes
to new heights. While the Dow peaked in January, the tech-dominated Nasdaq
continued to set records well into March. Toward the end of the month, however,
investors became concerned that tech stocks might be overvalued, sparking a
sharp sell-off in this sector. In April, a federal court ruling against
software giant Microsoft (not a fund holding) helped perpetuate this sell-off.
The stocks of Internet companies with no earnings were particularly hard hit.
Investors were also concerned that the Federal Reserve Board (the Fed) might
continue to raise interest rates to slow torrid economic growth and contain
inflation. During the reporting period, the Fed, which launched a monetary
tightening policy in June 1999, raised the key federal funds rate--the rate
banks charge each other for overnight loans--from 5.25% to 6.0%. Interest-rate
concerns prompted a sell-off that affected nearly every stock-market sector in
April, causing markets to be extremely volatile.
Despite April's well-publicized market downturn, most major indexes posted
gains for the reporting period, with mid-cap stocks leading the charge. The S&P
MidCap 400 Index was up 21.26% compared to 0.79% for the Dow and 18.72% for the
Russell 2000, which measures the performance of small-cap stocks. Despite
weakness in March and April, tech stocks still outperformed other issues for
the six-month reporting period by a significant margin.
HOW DID YOU MANAGE THE FUND?
During the reporting period, the fund implemented a new investment strategy
that permits it to invest in all sizes of companies instead of being limited to
mid- and small-cap stocks, allowing the fund to take advantage of rallies
within various market segments. We took advantage of April's market sell-off to
buy the stocks of quality companies at reduced prices.
Over the last six months, we increased the fund's technology holdings from
46% to 51% while reducing consumer-cyclical stocks from 20% to 13% of the
portfolio. The portfolio's heavy weighting in the technology sector was a
result of our stock-selection criteria, which is based on earnings growth
prospects, not macroeconomic predictions. We continued to find many companies
with excellent earnings prospects in the technology sector. Moreover, we
generally do not buy the stocks of companies that have no earnings.
Industries within the technology sector that were prominently represented in
the portfolio included computer software and services, communications equipment
and semiconductors. These industries are benefiting from the steady sales of
personal computers, the proliferation of new communications devices and the
expansion of the Internet.
CAN YOU NAME A FEW OF THE TECH STOCKS IN THE PORTFOLIO?
At the end of the reporting period, VERITAS Software was the portfolio's top
equity holding. VERITAS is the world's largest maker of storage-management
software, which protects networks against data loss from crashes and errors,
expedites data recovery and manages corporate storage. JDS Uniphase, the
portfolio's second-largest equity holding, is the world's leading supplier of
parts for fiber-optic equipment. Corning, our third-largest holding, is the
inventor and one of the world's top manufacturers of fiber-optic cable. All
three reported strong earnings for the most recent quarter.
Other tech stocks in the portfolio included
o Analog Devices, a leading maker of both analog and digital integrated
circuits, which translate such phenomena as pressure, temperature and
sound into digital signals
o ADC Telecommunications, which makes systems that speed up the rate at
which voice, data and video signals are transmitted
o PMC-Sierra, which develops semiconductor components that improve
Internet transmission.
AIM CONSTELLATION FUND
16
<PAGE> 19
SEMIANNUAL REPORT / MANAGERS' OVERVIEW
We believe the outlook is favorable for tech companies, which stand to
benefit from global economic expansion, mergers and acquisitions and the growth
of wireless communications and the Internet.
WHAT OTHER STOCKS PERFORMED WELL FOR THE FUND?
In the financial sector, the fund benefited from owning the stock of discount
brokerage firm Charles Schwab, a leading discount broker. In the energy sector,
a stock that performed well for the fund was Cooper Cameron, a maker of
equipment for the oil and gas industry.
WHAT IS YOUR OUTLOOK FOR THE NEAR TERM?
The near-term outlook for stocks could depend largely on the Fed's ability to
bring the economy to a "soft landing." On May 16, after the reporting period
ended, the central bank raised the federal funds rate to 6.5%. It appears that
the Fed's tightening cycle may be winding down, although the central bank may
approve additional rate increases in the immediate months ahead. If the Fed
succeeds in slowing economic growth to a more sustainable rate and keeping
inflation under control, it could prolong the current record economic
expansion. Such an environment could help sustain corporate earnings growth and
prove favorable for stocks.
However, uncertainty over the Fed's actions and other factors could
perpetuate the volatility that has characterized markets in recent months. In
such an environment, investors would be well advised to take a long-term
perspective on their investment.
TOTAL RETURNS
For the six months ended 4/30/00
================================================================================
Bar Chart
AIM CONSTELLATION FUND INSTITUTIONAL CLASS 34.00%
LIPPER MULTI-CAP GROWTH FUND INDEX 30.26%
S&P 500 7.18%
================================================================================
AVERAGE ANNUAL TOTAL RETURNS
As of 4/30/00
================================================================================
Inception (4/8/92) 21.48%
5 Years 24.30
1 Year 49.44
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.
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. VERITAS Software Corp. 2.99% 1. Computers (Software & Services) 13.91%
2. JDS Uniphase Corp. 2.71 2. Communications Equipment 12.80
3. Corning, Inc. 2.09 3. Electronics (Semiconductors) 11.29
4. Analog Devices, Inc. 1.99 4. Oil & Gas (Drilling & Equipment) 6.45
5. ADC Telecommunications, Inc. 1.84 5. Broadcasting (Television, Radio & Cable) 4.55
6. PMC-Sierra, Inc. (Canada) 1.75 6. Electrical Equipment 3.46
7. Scientific-Atlanta, Inc. 1.46 7. Computers (Networking) 2.78
8. Nokia Oyj ADR (Finland) 1.41 8. Investment Banking/Brokerage 2.67
9. Inktomi Corp. 1.34 9. Services (Advertising & Marketing) 2.34
10. Comverse Technology, Inc 1.30 10. Equipment (Semiconductor) 2.27
The fund's portfolio is subject to change, and there is no assurance that the
fund will continue to hold any particular security.
==========================================================================================================
</TABLE>
AIM CONSTELLATION FUND
17
<PAGE> 20
SCHEDULE OF INVESTMENTS
April 30, 2000
(Unaudited)
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
COMMON STOCKS & OTHER EQUITY
INTERESTS-96.77%
AUTO PARTS & EQUIPMENT-0.55%
Danaher Corp. 2,000,000 $ 114,250,000
---------------------------------------------------------------
BANKS (MAJOR REGIONAL)-0.58%
Northern Trust Corp. 1,850,000 118,631,250
---------------------------------------------------------------
BIOTECHNOLOGY-1.41%
Amgen Inc.(a) 1,500,000 84,000,000
---------------------------------------------------------------
Biogen, Inc.(a) 2,379,300 139,932,581
---------------------------------------------------------------
Chiron Corp.(a) 1,500,000 67,875,000
---------------------------------------------------------------
291,807,581
---------------------------------------------------------------
BROADCASTING (TELEVISION, RADIO
& CABLE)-4.55%
AMFM Inc.(a) 2,400,000 159,300,000
---------------------------------------------------------------
AT&T Corp.-Liberty Media Group-
Class A(a) 3,000,000 149,812,500
---------------------------------------------------------------
Cox Communications, Inc.-Class
A(a) 1,600,000 68,500,000
---------------------------------------------------------------
Hispanic Broadcasting Corp.(a) 1,525,000 154,120,312
---------------------------------------------------------------
Univision Communications,
Inc.-Class A(a) 1,519,800 166,038,150
---------------------------------------------------------------
USA Networks, Inc.(a) 4,500,000 103,500,000
---------------------------------------------------------------
Westwood One, Inc.(a) 3,918,000 138,599,250
---------------------------------------------------------------
939,870,212
---------------------------------------------------------------
COMMUNICATIONS EQUIPMENT-12.80%
ADC Telecommunications, Inc.(a) 6,250,000 379,687,500
---------------------------------------------------------------
CIENA Corp.(a) 563,800 69,699,775
---------------------------------------------------------------
Comverse Technology, Inc.(a) 3,000,000 267,562,500
---------------------------------------------------------------
Corning Inc. 2,190,800 432,683,000
---------------------------------------------------------------
JDS Uniphase Corp.(a) 5,400,000 559,912,500
---------------------------------------------------------------
Juniper Networks, Inc.(a) 500,000 106,343,750
---------------------------------------------------------------
Nokia Oyj-ADR (Finland) 5,112,800 290,790,500
---------------------------------------------------------------
Nortel Networks Corp. (Canada) 1,750,000 198,187,500
---------------------------------------------------------------
QUALCOMM Inc.(a) 350,300 37,985,656
---------------------------------------------------------------
Scientific-Atlanta, Inc. 4,636,400 301,655,775
---------------------------------------------------------------
2,644,508,456
---------------------------------------------------------------
COMPUTERS (HARDWARE)-1.88%
Apple Computer, Inc.(a) 732,100 90,826,156
---------------------------------------------------------------
Compaq Computer Corp. 3,500,000 102,375,000
---------------------------------------------------------------
Dell Computer Corp.(a) 1,250,000 62,656,250
---------------------------------------------------------------
Sun Microsystems, Inc.(a) 1,432,400 131,691,275
---------------------------------------------------------------
387,548,681
---------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
COMPUTERS (NETWORKING)-2.78%
Cisco Systems, Inc.(a) 2,000,000 $ 138,656,250
---------------------------------------------------------------
Exodus Communications, Inc.(a) 1,750,000 154,765,625
---------------------------------------------------------------
Extreme Networks, Inc.(a) 750,000 43,218,750
---------------------------------------------------------------
VeriSign, Inc.(a) 1,700,000 236,937,500
---------------------------------------------------------------
573,578,125
---------------------------------------------------------------
COMPUTERS (PERIPHERALS)-1.35%
Adaptec, Inc.(a) 1,196,100 32,294,700
---------------------------------------------------------------
EMC Corp.(a) 1,248,000 173,394,000
---------------------------------------------------------------
Network Appliance, Inc.(a) 1,000,000 73,937,500
---------------------------------------------------------------
279,626,200
---------------------------------------------------------------
COMPUTERS (SOFTWARE &
SERVICES)-13.58%
Aspect Development, Inc.(a) 1,450,000 100,231,250
---------------------------------------------------------------
BEA Systems, Inc.(a) 2,200,000 106,150,000
---------------------------------------------------------------
Business Objects S.A.-ADR
(France)(a) 1,500,000 146,812,500
---------------------------------------------------------------
Check Point Software
Technologies Ltd. (Israel)(a) 1,500,000 259,500,000
---------------------------------------------------------------
Citrix Systems, Inc.(a) 1,107,300 67,614,506
---------------------------------------------------------------
DoubleClick Inc.(a) 500,000 37,937,500
---------------------------------------------------------------
Electronics for Imaging,
Inc.(a) 2,500,000 130,625,000
---------------------------------------------------------------
Gemstar International Group
Ltd.(a) 1,750,000 80,937,500
---------------------------------------------------------------
Inktomi Corp.(a) 1,800,000 277,087,500
---------------------------------------------------------------
Intuit Inc.(a) 3,250,000 116,796,875
---------------------------------------------------------------
J.D. Edwards & Co.(a) 4,500,000 82,125,000
---------------------------------------------------------------
Lycos, Inc.(a) 2,300,000 106,950,000
---------------------------------------------------------------
Mercury Interactive Corp.(a) 382,800 34,452,000
---------------------------------------------------------------
Oracle Corp.(a) 1,250,000 99,921,875
---------------------------------------------------------------
PeopleSoft, Inc.(a) 2,500,000 34,843,750
---------------------------------------------------------------
Portal Software, Inc.(a) 1,037,700 47,604,487
---------------------------------------------------------------
Rational Software Corp.(a) 698,300 59,442,787
---------------------------------------------------------------
Siebel Systems, Inc.(a) 1,500,000 184,312,500
---------------------------------------------------------------
Verio, Inc.(a) 2,250,000 84,515,625
---------------------------------------------------------------
VERITAS Software Corp.(a) 5,750,000 616,777,344
---------------------------------------------------------------
Yahoo! Inc.(a) 1,000,000 130,250,000
---------------------------------------------------------------
2,804,887,999
---------------------------------------------------------------
CONSUMER FINANCE-0.78%
Providian Financial Corp. 1,825,000 160,714,062
---------------------------------------------------------------
ELECTRICAL EQUIPMENT-3.46%
American Power Conversion
Corp.(a) 5,250,000 185,390,625
---------------------------------------------------------------
Conexant Systems, Inc.(a) 2,000,000 119,750,000
---------------------------------------------------------------
</TABLE>
AIM CONSTELLATION FUND
18
<PAGE> 21
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
ELECTRICAL EQUIPMENT-(CONTINUED)
Sanmina Corp.(a) 2,000,000 $ 120,125,000
---------------------------------------------------------------
Symbol Technologies, Inc. 2,756,100 153,652,575
---------------------------------------------------------------
Vishay Intertechnology, Inc.(a) 1,622,000 136,045,250
---------------------------------------------------------------
714,963,450
---------------------------------------------------------------
ELECTRONICS (COMPONENT
DISTRIBUTORS)-0.54%
Agilent Technologies, Inc.(a) 1,250,000 110,781,250
---------------------------------------------------------------
ELECTRONICS (DEFENSE)-0.87%
General Motors Corp.-Class H(a) 1,873,000 180,393,312
---------------------------------------------------------------
ELECTRONICS
(INSTRUMENTATION)-0.98%
PE Corp-PE Biosystems Group 3,375,000 202,500,000
---------------------------------------------------------------
ELECTRONICS
(SEMICONDUCTORS)-11.30%
Advanced Micro Devices, Inc.(a) 875,300 76,807,575
---------------------------------------------------------------
Altera Corp.(a) 1,000,000 102,250,000
---------------------------------------------------------------
Analog Devices, Inc.(a) 5,359,800 411,699,638
---------------------------------------------------------------
ASM Lithography Holding N.V.
(Netherlands)(a) 2,250,000 90,000,000
---------------------------------------------------------------
Celestica Inc. (Canada)(a) 4,012,700 218,942,944
---------------------------------------------------------------
Cypress Semiconductor Corp.(a) 1,313,900 68,240,681
---------------------------------------------------------------
Intel Corp. 1,000,000 126,812,500
---------------------------------------------------------------
Linear Technology Corp. 2,500,000 142,812,500
---------------------------------------------------------------
LSI Logic Corp.(a) 2,500,000 156,250,000
---------------------------------------------------------------
Maxim Integrated Products,
Inc.(a) 2,000,000 129,625,000
---------------------------------------------------------------
Microchip Technology, Inc.(a) 2,000,112 124,131,951
---------------------------------------------------------------
PMC-Sierra, Inc. (Canada)(a) 1,879,200 360,571,500
---------------------------------------------------------------
SDL, Inc.(a) 608,200 118,599,000
---------------------------------------------------------------
Vitesse Semiconductor Corp.(a) 750,000 51,046,875
---------------------------------------------------------------
Xilinx, Inc.(a) 2,122,400 155,465,800
---------------------------------------------------------------
2,333,255,964
---------------------------------------------------------------
EQUIPMENT (SEMICONDUCTOR)-2.27%
Applied Materials, Inc.(a) 1,000,000 101,812,500
---------------------------------------------------------------
KLA-Tencor Corp.(a) 1,750,000 131,031,250
---------------------------------------------------------------
Novellus Systems, Inc.(a) 1,500,000 100,031,250
---------------------------------------------------------------
Teradyne, Inc.(a) 1,227,400 135,014,000
---------------------------------------------------------------
467,889,000
---------------------------------------------------------------
FINANCIAL (DIVERSIFIED)-0.42%
American Express Co. 575,000 86,285,938
---------------------------------------------------------------
HEALTH CARE (DRUGS-GENERIC &
OTHER)-1.48%
Forest Laboratories, Inc.(a) 1,123,200 94,419,000
---------------------------------------------------------------
Jones Pharma, Inc.(b) 5,536,912 159,532,277
---------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
HEALTH CARE (DRUGS-GENERIC &
OTHER)-(CONTINUED)
Medicis Pharmaceutical
Corp.-Class A(a) 1,200,000 $ 52,500,000
---------------------------------------------------------------
306,451,277
---------------------------------------------------------------
HEALTH CARE (HOSPITAL
MANAGEMENT)-1.12%
Columbia/HCA Healthcare Corp. 2,332,400 66,327,625
---------------------------------------------------------------
Health Management Associates,
Inc.- Class A(a) 7,190,900 114,604,969
---------------------------------------------------------------
Tenet Healthcare Corp.(a) 2,000,000 51,000,000
---------------------------------------------------------------
231,932,594
---------------------------------------------------------------
HEALTH CARE (MEDICAL PRODUCTS &
SUPPLIES)-1.53%
Biomet, Inc. 1,974,700 70,472,106
---------------------------------------------------------------
Medtronic, Inc.(c) 4,741,600 246,266,850
---------------------------------------------------------------
316,738,956
---------------------------------------------------------------
HEALTH CARE (SPECIALIZED
SERVICES)-0.34%
Lincare Holdings, Inc.(a) 2,301,800 70,204,900
---------------------------------------------------------------
INSURANCE (LIFE/HEALTH)-0.55%
AFLAC, Inc. 2,326,500 113,562,281
---------------------------------------------------------------
INVESTMENT
BANKING/BROKERAGE-2.67%
Goldman Sachs Group, Inc.
(The)(c) 2,250,000 209,812,500
---------------------------------------------------------------
Morgan Stanley Dean Witter &
Co. 1,700,000 130,475,000
---------------------------------------------------------------
Schwab (Charles) Corp. (The) 4,750,000 211,375,000
---------------------------------------------------------------
551,662,500
---------------------------------------------------------------
INVESTMENT MANAGEMENT-0.34%
Federated Investors, Inc.-Class
B 2,500,000 70,625,000
---------------------------------------------------------------
LEISURE TIME (PRODUCTS)-1.10%
Harley-Davidson, Inc.(c) 5,700,000 226,931,250
---------------------------------------------------------------
MANUFACTURING
(DIVERSIFIED)-0.54%
Honeywell International 2,000,000 112,000,000
---------------------------------------------------------------
MANUFACTURING
(SPECIALIZED)-0.75%
Millipore Corp. 2,149,800 154,113,788
---------------------------------------------------------------
NATURAL GAS-0.59%
Enron Corp.(c) 1,750,000 121,953,125
---------------------------------------------------------------
OIL & GAS (DRILLING &
EQUIPMENT)-6.40%
BJ Services Co.(a) 2,600,000 182,650,000
---------------------------------------------------------------
Cooper Cameron Corp.(a)(b) 2,761,200 207,090,000
---------------------------------------------------------------
ENSCO International Inc. 2,500,000 82,968,750
---------------------------------------------------------------
Grant Prideco, Inc.(a) 1,872,400 36,043,700
---------------------------------------------------------------
Nabors Industries, Inc.(a) 4,432,000 174,787,000
---------------------------------------------------------------
R&B Falcon Corp.(a) 5,900,000 122,425,000
---------------------------------------------------------------
</TABLE>
AIM CONSTELLATION FUND
19
<PAGE> 22
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
OIL & GAS (DRILLING & EQUIPMENT)-(CONTINUED)
Rowan Cos., Inc.(a) 3,262,700 $ 91,151,681
---------------------------------------------------------------
Smith International, Inc.(a) 2,150,000 163,400,000
---------------------------------------------------------------
Transocean Sedco Forex Inc. 3,950,000 185,650,000
---------------------------------------------------------------
Weatherford International,
Inc.(a) 1,872,400 76,066,250
---------------------------------------------------------------
1,322,232,381
---------------------------------------------------------------
RAILROADS-1.06%
Kansas City Southern
Industries, Inc. 3,050,000 219,218,750
---------------------------------------------------------------
RESTAURANTS-0.78%
Brinker International, Inc.(a) 3,000,000 95,625,000
---------------------------------------------------------------
Outback Steakhouse, Inc.(a) 2,000,000 65,500,000
---------------------------------------------------------------
161,125,000
---------------------------------------------------------------
RETAIL (BUILDING
SUPPLIES)-1.31%
Home Depot, Inc. (The) 1,750,000 98,109,375
---------------------------------------------------------------
Lowe's Cos., Inc. 3,500,000 173,250,000
---------------------------------------------------------------
271,359,375
---------------------------------------------------------------
RETAIL (COMPUTERS &
ELECTRONICS)-1.10%
Best Buy Co., Inc.(a) 882,200 71,237,650
---------------------------------------------------------------
CDW Computer Centers, Inc.(a) 1,500,000 156,000,000
---------------------------------------------------------------
227,237,650
---------------------------------------------------------------
RETAIL (DEPARTMENT
STORES)-0.93%
Kohl's Corp.(a) 4,000,000 192,000,000
---------------------------------------------------------------
RETAIL (DISCOUNTERS)-1.13%
Dollar Tree Stores, Inc.(a) 1,810,600 104,788,475
---------------------------------------------------------------
Family Dollar Stores, Inc. 2,850,000 54,328,125
---------------------------------------------------------------
Ross Stores, Inc. 3,567,200 74,019,400
---------------------------------------------------------------
233,136,000
---------------------------------------------------------------
RETAIL (SPECIALTY)-1.82%
Bed Bath & Beyond, Inc.(a) 5,000,000 183,437,500
---------------------------------------------------------------
Staples, Inc.(a) 4,000,000 76,250,000
---------------------------------------------------------------
Tiffany & Co. 750,000 54,515,625
---------------------------------------------------------------
Zale Corp.(a) 1,500,000 61,875,000
---------------------------------------------------------------
376,078,125
---------------------------------------------------------------
RETAIL
(SPECIALTY-APPAREL)-1.79%
Gap, Inc. (The) 2,500,000 91,875,000
---------------------------------------------------------------
Intimate Brands, Inc. 1,500,000 57,750,000
---------------------------------------------------------------
Limited, Inc. (The) 2,000,000 90,375,000
---------------------------------------------------------------
Men's Wearhouse, Inc.
(The)(a)(b) 2,487,800 53,332,213
---------------------------------------------------------------
Talbots, Inc. (The) 1,500,000 75,843,750
---------------------------------------------------------------
369,175,963
---------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
SERVICES (ADVERTISING/
MARKETING)-2.34%
Lamar Advertising Co.(a)(b) 3,750,000 $ 165,234,375
---------------------------------------------------------------
Omnicom Group, Inc. 2,500,000 227,656,250
---------------------------------------------------------------
Young & Rubicam Inc. 1,632,500 90,909,844
---------------------------------------------------------------
483,800,469
---------------------------------------------------------------
SERVICES (COMPUTER
SYSTEMS)-0.60%
Brocade Communications Systems,
Inc.(a) 1,000,000 124,000,000
---------------------------------------------------------------
SERVICES (DATA
PROCESSING)-1.60%
CSG Systems International,
Inc.(a) 956,500 44,118,563
---------------------------------------------------------------
Fiserv, Inc.(a) 4,060,300 186,520,031
---------------------------------------------------------------
Paychex, Inc. 1,875,000 98,671,875
---------------------------------------------------------------
329,310,469
---------------------------------------------------------------
TELECOMMUNICATIONS (CELLULAR/
WIRELESS)-2.25%
Crown Castle International
Corp.(a) 2,144,200 82,283,675
---------------------------------------------------------------
Level 3 Communications, Inc.(a) 1,000,000 89,000,000
---------------------------------------------------------------
Metromedia Fiber Network,
Inc.-Class A(a) 4,000,000 123,500,000
---------------------------------------------------------------
VoiceStream Wireless(a) 569,200 56,350,800
---------------------------------------------------------------
Western Wireless Corp.-Class
A(a) 2,301,000 114,330,938
---------------------------------------------------------------
465,465,413
---------------------------------------------------------------
TELEPHONE-2.04%
Broadwing Inc.(a) 3,000,000 84,937,500
---------------------------------------------------------------
CenturyTel, Inc. 1,583,525 38,796,363
---------------------------------------------------------------
NTL Inc.(a) 1,500,000 114,750,000
---------------------------------------------------------------
Qwest Communications
International, Inc.(a) 3,495,800 151,630,325
---------------------------------------------------------------
RCN Corp.(a) 1,103,900 31,599,137
---------------------------------------------------------------
421,713,325
---------------------------------------------------------------
TEXTILES (APPAREL)-0.51%
Jones Apparel Group, Inc.(a) 3,564,000 105,806,250
---------------------------------------------------------------
Total Common Stocks & Other
Equity Interests (Cost
$11,318,442,251) 19,989,326,321
---------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
<S> <C> <C>
CONVERTIBLE BONDS & NOTES-0.57%
COMPUTERS (NETWORKING)-0.13%
Exodus Communications, Inc.,
Conv. Notes, 4.75%, 07/15/08
(Acquired 12/02/99; Cost
$19,815,000)(d) $ 19,815,000 27,468,544
---------------------------------------------------------------
</TABLE>
AIM CONSTELLATION FUND
20
<PAGE> 23
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
<S> <C> <C>
COMPUTERS (SOFTWARE &
SERVICES)-0.33%
Critical Path Inc., Conv.
Notes, 5.75%, 04/01/05
(Acquired 03/27/00-04/25/00;
Cost $65,116,131)(d) $ 81,000,000 $ 67,989,375
---------------------------------------------------------------
TELEPHONE-0.11%
NTL Inc., Conv. Sub. Notes,
5.75%, 12/15/09 (Acquired
12/17/99; Cost
$25,458,250)(d) 25,000,000 22,281,250
---------------------------------------------------------------
Total Convertible Bonds &
Notes (Cost $110,401,924) 117,739,169
---------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
MONEY MARKET FUNDS-3.14%
STIC Liquid Assets Portfolio(e) 324,330,906 $ 324,330,906
---------------------------------------------------------------
STIC Prime Portfolio(e) 324,330,906 324,330,906
---------------------------------------------------------------
Total Money Market Funds
(Cost $648,661,812) 648,661,812
---------------------------------------------------------------
TOTAL INVESTMENTS-100.48% (Cost
$12,077,505,987) 20,755,727,302
---------------------------------------------------------------
LIABILITIES LESS OTHER
ASSETS-(0.48%) (100,001,286)
---------------------------------------------------------------
NET ASSETS-100.00% $20,655,726,016
===============================================================
</TABLE>
Investment Abbreviations:
ADR - American Depositary Receipt
Conv. - Convertible
Sub. - Subordinated
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 aggregate market value of these securities as of
04/30/00 was $585,188,865 which represented 2.83% of the Fund's net assets.
(c) A portion of this security is subject to call options written. See Note 7.
(d) Restricted security. May be resold to qualified institutional buyers in
accordance with the provisions of Rule 144A under the Securities Act of
1933, as amended. The valuation of these securities has been determined in
accordance with procedures established by the Board of Directors. The
aggregate market value of these securities at 04/30/00 was $117,739,169
which represented 0.57% of the Fund's net assets.
(e) The money market fund has the same investment advisor as the Fund.
See Notes to Financial Statements.
AIM CONSTELLATION FUND
21
<PAGE> 24
STATEMENT OF ASSETS AND LIABILITIES
April 30, 2000
(Unaudited)
<TABLE>
<S> <C>
ASSETS:
Investments, at market value (cost
$12,077,505,987) $20,755,727,302
-------------------------------------------------------------
Receivables for:
Investments sold 162,431,108
-------------------------------------------------------------
Capital stock sold 32,662,880
-------------------------------------------------------------
Dividends and Interest 5,197,947
-------------------------------------------------------------
Investment for deferred compensation plan 219,535
-------------------------------------------------------------
Other assets 988,721
-------------------------------------------------------------
Total assets 20,957,227,493
-------------------------------------------------------------
LIABILITIES:
Payables for:
Investments purchased 162,263,976
-------------------------------------------------------------
Capital stock reacquired 114,415,316
-------------------------------------------------------------
Deferred compensation plan 219,535
-------------------------------------------------------------
Options written (premiums received
$4,594,572) 1,493,609
-------------------------------------------------------------
Accrued advisory fees 10,042,123
-------------------------------------------------------------
Accrued administrative services fees 59,187
-------------------------------------------------------------
Accrued distribution fees 7,741,754
-------------------------------------------------------------
Accrued directors' fees 6,493
-------------------------------------------------------------
Accrued transfer agent fees 4,358,928
-------------------------------------------------------------
Accrued operating expenses 900,556
-------------------------------------------------------------
Total liabilities 301,501,477
-------------------------------------------------------------
Net assets applicable to shares outstanding $20,655,726,016
=============================================================
NET ASSETS:
Class A $18,921,516,143
=============================================================
Class B $ 1,031,286,280
=============================================================
Class C $ 324,903,258
=============================================================
Institutional Class $ 378,020,335
=============================================================
CAPITAL STOCK, $0.001 PAR VALUE PER SHARE:
Class A:
Authorized 1,000,000,000
-------------------------------------------------------------
Outstanding 444,216,321
=============================================================
Class B:
Authorized 1,000,000,000
-------------------------------------------------------------
Outstanding 24,816,471
=============================================================
Class C:
Authorized 750,000,000
-------------------------------------------------------------
Outstanding 7,820,615
=============================================================
Institutional Class:
Authorized 200,000,000
-------------------------------------------------------------
Outstanding 8,492,512
=============================================================
Class A:
Net asset value and redemption price per
share $ 42.60
-------------------------------------------------------------
Offering price per share:
(Net asset value of $42.60 divided
by 94.50%) $ 45.07
=============================================================
Class B:
Net asset value and offering price per
share $ 41.56
=============================================================
Class C:
Net asset value and offering price per
share $ 41.54
=============================================================
Institutional Class:
Net asset value, offering and redemption
price per share $ 44.51
=============================================================
</TABLE>
STATEMENT OF OPERATIONS
For the six months ended April 30, 2000
(Unaudited)
<TABLE>
<S> <C>
INVESTMENT INCOME:
Dividends (net of foreign withholding tax
$300,802) $ 37,638,099
-------------------------------------------------------------
Interest 1,652,827
-------------------------------------------------------------
Total investment income 39,290,926
-------------------------------------------------------------
EXPENSES:
Advisory fees 60,894,984
-------------------------------------------------------------
Administrative services fee 346,584
-------------------------------------------------------------
Custodian fees 328,528
-------------------------------------------------------------
Distribution fees -- Class A 26,982,802
-------------------------------------------------------------
Distribution fees -- Class B 4,237,526
-------------------------------------------------------------
Distribution fees -- Class C 1,252,867
-------------------------------------------------------------
Transfer agent fees -- Class A 12,817,350
-------------------------------------------------------------
Transfer agent fees -- Class B 1,131,334
-------------------------------------------------------------
Transfer agent fees -- Class C 334,490
-------------------------------------------------------------
Transfer agent fees -- Institutional Class 25,272
-------------------------------------------------------------
Directors' fees 41,472
-------------------------------------------------------------
Other 1,247,729
-------------------------------------------------------------
Total expenses 109,640,938
-------------------------------------------------------------
Less: Fees waived (2,181,249)
-------------------------------------------------------------
Expenses paid indirectly (161,830)
-------------------------------------------------------------
Net expenses 107,297,859
-------------------------------------------------------------
Net investment income (loss) (68,006,933)
-------------------------------------------------------------
REALIZED AND UNREALIZED GAIN ON INVESTMENT SECURITIES,
FOREIGN CURRENCIES AND OPTION CONTRACTS:
Net realized gain from:
Investment securities 2,471,849,544
-------------------------------------------------------------
Option contracts written 32,124,058
-------------------------------------------------------------
2,503,973,602
-------------------------------------------------------------
Change in net unrealized appreciation
(depreciation) of:
Investment securities 2,669,821,895
-------------------------------------------------------------
Foreign currencies (1,049)
-------------------------------------------------------------
Option contracts written 4,349,562
-------------------------------------------------------------
2,674,170,408
-------------------------------------------------------------
Net gain on investment securities, foreign
currencies and option contracts 5,178,144,010
-------------------------------------------------------------
Net increase in net assets resulting from
operations $5,110,137,077
=============================================================
</TABLE>
See Notes to Financial Statements.
AIM CONSTELLATION FUND
22
<PAGE> 25
STATEMENT 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) $ (68,006,933) $ (76,875,258)
------------------------------------------------------------------------------------------------
Net realized gain from investment securities, foreign
currencies and option contracts 2,503,973,602 1,644,017,203
------------------------------------------------------------------------------------------------
Change in net unrealized appreciation of investment
securities, foreign currencies and option contracts 2,674,170,408 2,669,133,759
------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 5,110,137,077 4,236,275,704
------------------------------------------------------------------------------------------------
Distributions to shareholders from net realized gains:
Class A (1,341,527,015) (337,206,115)
------------------------------------------------------------------------------------------------
Class B (59,302,977) (8,290,207)
------------------------------------------------------------------------------------------------
Class C (16,589,705) (2,229,567)
------------------------------------------------------------------------------------------------
Institutional Class (23,400,833) (5,075,580)
------------------------------------------------------------------------------------------------
Share transactions-net:
Class A 1,202,424,646 (1,783,881,252)
------------------------------------------------------------------------------------------------
Class B 299,847,081 205,093,817
------------------------------------------------------------------------------------------------
Class C 124,772,971 55,508,352
------------------------------------------------------------------------------------------------
Institutional Class 70,882,977 (4,793,973)
------------------------------------------------------------------------------------------------
Net increase in net assets 5,367,244,222 2,355,401,179
------------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 15,288,481,794 12,933,080,615
------------------------------------------------------------------------------------------------
End of period $20,655,726,016 $15,288,481,794
================================================================================================
NET ASSETS CONSIST OF:
Capital (par value and additional paid-in) $ 9,361,884,526 $ 7,663,956,851
------------------------------------------------------------------------------------------------
Undistributed net investment income (loss) (68,558,670) (551,737)
------------------------------------------------------------------------------------------------
Undistributed net realized gain from investment
securities, foreign currencies and option contracts 2,681,079,353 1,617,926,281
------------------------------------------------------------------------------------------------
Unrealized appreciation of investment securities, foreign
currencies and option contracts 8,681,320,807 6,007,150,399
------------------------------------------------------------------------------------------------
$20,655,726,016 $15,288,481,794
================================================================================================
</TABLE>
See Notes to Financial Statements.
AIM CONSTELLATION FUND
23
<PAGE> 26
NOTES TO FINANCIAL STATEMENTS
April 30, 2000
(Unaudited)
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES
AIM Constellation 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.
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. 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
AIM CONSTELLATION FUND
24
<PAGE> 27
received when the option was written) without regard to any unrealized gain
or loss on the underlying security, and the liability related to such option
is extinguished. If a written option is exercised, the Fund realizes a gain
or a loss from the sale of the underlying security and the proceeds of the
sale are increased by the premium originally received.
A call option gives the purchaser of such option the right to buy, and
the writer (the Fund) the obligation to sell, the underlying security at the
stated exercise price during the option period. The purchaser of a call
option has the right to acquire the security which is the subject of the
call option at any time during the option period. During the option period,
in return for the premium paid by the purchaser of the option, the Fund has
given up the opportunity for capital appreciation above the exercise price
should the market price of the underlying security increase, but has
retained the risk of loss should the price of the underlying security
decline. During the option period, the Fund may be required at any time to
deliver the underlying security against payment of the exercise price. This
obligation is terminated upon the expiration of the option period or at such
earlier time at which the Fund effects a closing purchase transaction by
purchasing (at a price which may be higher than that received when the call
option was written) a call option identical to the one originally written.
F. 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.
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 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 $150 million, plus
0.625% of the Fund's average daily net assets in excess of $150 million. AIM has
agreed to waive advisory fees paid 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. During
the six months ended April 30, 2000, AIM waived fees of $2,181,249. 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 $346,584 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 $5,609,953 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
$26,982,803, $4,237,526 and $1,252,867, respectively, as compensation under the
Plans.
AIM Distributors received commissions of $2,511,724 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 $168,593 in contingent deferred
sales charges imposed on redemptions of Fund shares.
AIM CONSTELLATION FUND
25
<PAGE> 28
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
$11,277 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 $116,741 and $45,089, respectively, under expense offset arrangements.
The effect of the above arrangements resulted in a reduction of the Fund's total
expenses of $161,830 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
$9,162,139,810 and $8,802,590,457, 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 $9,046,988,555
----------------------------------------------------------
Aggregate unrealized (depreciation) of
investment securities (372,597,573)
----------------------------------------------------------
Net unrealized appreciation of investment
securities $8,674,390,982
==========================================================
</TABLE>
Cost of investments for tax purposes is $12,081,336,320.
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 22,091 $ 3,848,894
--------------------------------------------- --------- ------------
Written 87,799 58,345,982
--------------------------------------------- --------- ------------
Closed (69,921) (52,092,932)
--------------------------------------------- --------- ------------
Expired (24,381) (5,507,372)
--------------------------------------------- --------- ------------
End of period 15,588 $ 4,594,572
============================================= ========= ============
</TABLE>
Open call option contracts written at April 30, 2000 were as follows:
<TABLE>
<CAPTION>
APRIL 30,
CONTRACT STRIKE NUMBER OF PREMIUMS 2000 UNREALIZED
ISSUE MONTH PRICE CONTRACTS RECEIVED MARKET VALUE APPRECIATION
----- -------- ------ --------- ---------- ------------ --------------
<S> <C> <C> <C> <C> <C> <C>
Enron Corp. May-00 $ 80 3,500 $ 941,713 $ 175,000 $ 766,713
Goldman Sachs Group, Inc. (The) May-00 130 1,441 276,057 36,025 240,032
Harley-Davidson, Inc. May-00 50 870 95,262 29,906 65,356
Medtronic, Inc. May-00 55 9,777 3,281,540 1,252,678 2,028,862
---------- ---------- ----------
15,588 $4,594,572 $1,493,609 $3,100,963
================================ ====== ==== ====== ========== ========== ==========
</TABLE>
AIM CONSTELLATION FUND
26
<PAGE> 29
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 47,664,468 $ 2,002,506,950 98,564,141 $ 2,981,238,092
-----------------------------------------------------------------------------------------------------------------------------
Class B 7,573,060 311,546,329 10,942,571 332,728,027
-----------------------------------------------------------------------------------------------------------------------------
Class C 3,208,675 132,258,758 5,133,893 156,450,704
-----------------------------------------------------------------------------------------------------------------------------
Institutional Class 1,895,934 80,440,191 1,596,295 51,100,608
-----------------------------------------------------------------------------------------------------------------------------
Issued as reinvestment of dividends:
Class A 34,136,481 1,274,295,386 11,320,463 318,895,308
-----------------------------------------------------------------------------------------------------------------------------
Class B 1,560,323 56,999,170 286,888 7,992,642
-----------------------------------------------------------------------------------------------------------------------------
Class C 430,717 15,725,462 75,962 2,115,494
-----------------------------------------------------------------------------------------------------------------------------
Institutional Class 593,713 23,119,167 170,003 4,957,282
-----------------------------------------------------------------------------------------------------------------------------
Reacquired:
Class A (50,122,218) (2,074,377,690) (167,354,090) (5,084,014,652)
-----------------------------------------------------------------------------------------------------------------------------
Class B (1,661,443) (68,698,418) (4,443,036) (135,626,852)
-----------------------------------------------------------------------------------------------------------------------------
Class C (569,978) (23,211,249) (3,390,263) (103,057,846)
-----------------------------------------------------------------------------------------------------------------------------
Institutional Class (784,221) (32,676,381) (1,915,980) (60,851,863)
-----------------------------------------------------------------------------------------------------------------------------
43,925,511 $ 1,697,927,675 (49,013,153) $(1,528,073,056)
=============================================================================================================================
</TABLE>
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>
INSTITUTIONAL CLASS
----------------------------------------------------------------------------
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 $ 36.01 $ 27.25 $ 30.00 $ 26.01 $ 24.05 $ 18.49
--------------------------------------------------- -------- -------- -------- -------- -------- --------
Income from investment operations:
Net investment income (loss) (0.05) (0.01) -- 0.02 0.04 0.02
--------------------------------------------------- -------- -------- -------- -------- -------- --------
Net gains (losses) on securities (both realized
and unrealized) 11.83 9.50 (0.65) 4.86 2.67 6.06
--------------------------------------------------- -------- -------- -------- -------- -------- --------
Total from investment operations 11.78 9.49 (0.65) 4.88 2.71 6.08
--------------------------------------------------- -------- -------- -------- -------- -------- --------
Less distributions from net realized gains (3.28) (0.73) (2.10) (0.89) (0.75) (0.52)
--------------------------------------------------- -------- -------- -------- -------- -------- --------
Net asset value, end of period $ 44.51 $ 36.01 $ 27.25 $ 30.00 $ 26.01 $ 24.05
=================================================== ======== ======== ======== ======== ======== ========
Total return 34.00% 35.46% (1.85)% 19.42% 11.81% 34.09%
=================================================== ======== ======== ======== ======== ======== ========
Ratios/supplemental data:
Net assets, end of period (000s omitted) $378,020 $244,369 $189,039 $188,109 $293,035 $138,918
=================================================== ======== ======== ======== ======== ======== ========
Ratio of expenses to average net assets:
With fee waivers 0.64%(a) 0.64% 0.63% 0.65% 0.66% 0.66%
=================================================== ======== ======== ======== ======== ======== ========
Without fee waivers 0.66%(a) 0.66% 0.65% 0.67% 0.67% 0.68%
=================================================== ======== ======== ======== ======== ======== ========
Ratio of net investment income (loss) to average
net assets (0.23)%(a) (0.04)% (0.01)% 0.06% 0.21% 0.18%
=================================================== ======== ======== ======== ======== ======== ========
Portfolio turnover rate 48% 62% 76% 67% 58% 45%
=================================================== ======== ======== ======== ======== ======== ========
</TABLE>
(a) Ratios are annualized and based on average net assets of $393,915,760.
AIM CONSTELLATION FUND
27
<PAGE> 30
<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 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 Fund Management Company
11 Greenway Plaza
Samuel D. Sirko Suite 100
Assistant Secretary Houston, TX 77002
</TABLE>
AIM CONSTELLATION FUND
28
<PAGE> 31
AIM WEINGARTEN FUND
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 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 Lipper Growth Fund Index represents an average of the
performance of the 30 largest growth funds charted by Lipper, Inc., an
independent mutual fund performance monitor.
o The unmanaged 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)
is a group of securities widely regarded as representative of 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
The fund's average annual total returns as of the close of the reporting period
are shown in the manager's overview on the pages that follow. In addition,
industry regulations require us to provide average annual returns as of 3/31/00
(the most recent calendar quarter-end), which were:
================================================================================
Inception (10/8/91) 20.72%
5 Years 30.82
1 Year 44.06
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.
AIM WEINGARTEN FUND
29
<PAGE> 32
AIM 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 Index and
the Russell 1000 Index. Total return for the Institutional Class was 26.46%,
which handily beat the Lipper Large-Cap Growth Index's 16.31% and the Russell
1000 Index's 9.72% returns for the reporting period.
The fund's assets continue to grow. Net assets rose from $114.1 million to
$147.1 million during the reporting period.
WHAT WERE THE MAJOR TRENDS IN THE FINANCIAL MARKETS DURING THE REPORTING
PERIOD?
U.S. equity markets experienced unprecedented 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 that 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 price-to-earnings
multiples--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
represented 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 stocks 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 hold-
ings 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.
GROWTH OF NET ASSETS
in millions
================================================================================
Bar Chart
10/31/99 $114.1
4/30/00 $147.1
================================================================================
AIM WEINGARTEN FUND
30
<PAGE> 33
SEMIANNUAL REPORT / MANAGERS' OVERVIEW
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 continued 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 single
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 intends to own
well-managed, financially strong, industry-leading companies with the potential
to appreciate in the years ahead.
TOTAL RETURNS
For the six months ended 4/30/00
================================================================================
Bar Chart
AIM WEINGARTEN FUND INSTITUTIONAL CLASS 26.46%
LIPPER LARGE CAP GROWTH INDEX 16.31%
RUSSELL 1000 INDEX 9.72%
================================================================================
AVERAGE ANNUAL TOTAL RETURNS
As of 4/30/00
================================================================================
Inception (10/8/91) 19.63%
5 Years 28.52
1 Year 35.69
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.
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 LM Ericsson-ADR 3.48 3. Computers (Software & Services) 9.40
4. Nortel Networks Corp. (Canada) 3.17 4. Broadcasting (Television, Radio & Cable) 7.81
5. Sun Microsystems, Inc. 2.94 5. Equipment (Semiconductor) 6.42
6. Oracle Corp. 2.88 6. Health Care (Diversified) 5.46
7. AT&T Corp. - Liberty Media Group-Class A 2.75 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>
AIM WEINGARTEN FUND
31
<PAGE> 34
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>
AIM WEINGARTEN FUND
32
<PAGE> 35
<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>
AIM WEINGARTEN FUND
33
<PAGE> 36
<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.
AIM WEINGARTEN FUND
34
<PAGE> 37
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
-------------------------------------------------------------
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.
AIM WEINGARTEN FUND
35
<PAGE> 38
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.
AIM WEINGARTEN FUND
36
<PAGE> 39
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.
AIM WEINGARTEN FUND
37
<PAGE> 40
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.
AIM WEINGARTEN FUND
38
<PAGE> 41
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
==========================================================
Cost of investments for tax purposes is $7,974,599,126.
</TABLE>
AIM WEINGARTEN FUND
39
<PAGE> 42
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>
AIM WEINGARTEN FUND
40
<PAGE> 43
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>
INSTITUTIONAL CLASS
-----------------------------------------------------------------------------
YEAR ENDED OCTOBER 31,
SIX MONTHS ENDED --------------------------------------------------------
APRIL 30, 2000 1999 1998 1997 1996 1995
---------------- -------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 28.96 $ 22.18 $ 23.05 $ 20.46 $ 20.48 $ 17.94
---------------------------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income (loss) (0.01) 0.02 0.10 0.08 0.17 0.10
---------------------------------------------------------------------------------------------------------------------------------
Net gains on securities (both realized and
unrealized) 7.27 8.32 2.43 4.90 2.52 4.35
---------------------------------------------------------------------------------------------------------------------------------
Total from investment operations 7.26 8.34 2.53 4.98 2.69 4.45
---------------------------------------------------------------------------------------------------------------------------------
Less distributions:
Dividends from net investment income -- (0.10) -- (0.15) -- (0.13)
---------------------------------------------------------------------------------------------------------------------------------
Distributions from net realized gains (3.19) (1.46) (3.40) (2.24) (2.71) (1.78)
---------------------------------------------------------------------------------------------------------------------------------
Total distributions (3.19) (1.56) (3.40) (2.39) (2.71) (1.91)
---------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 33.03 $ 28.96 $ 22.18 $ 23.05 $ 20.46 $ 20.48
=================================================================================================================================
Total return 26.50% 39.20% 12.79% 27.37% 15.34% 28.69%
=================================================================================================================================
Ratios/supplemental data:
Net assets, end of period (000s omitted) $147,088 $114,076 $72,884 $62,124 $60,483 $54,332
=================================================================================================================================
Ratio of expenses to average net assets:
With fee waivers 0.65%(a) 0.63% 0.62% 0.64% 0.65% 0.70%
=================================================================================================================================
Without fee waivers 0.67%(a) 0.68% 0.67% 0.68% 0.68% 0.72%
=================================================================================================================================
Ratio of net investment income (loss) to average
net assets (0.07)%(a) 0.02% 0.49% 0.50% 0.80% 0.45%
=================================================================================================================================
Portfolio turnover rate 64% 124% 125% 128% 159% 139%
=================================================================================================================================
</TABLE>
(a) Ratios are annualized and based on average net assets of $139,584,073.
AIM WEINGARTEN FUND
41
<PAGE> 44
<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 Fund Management Company
11 Greenway Plaza
Samuel D. Sirko Suite 100
Assistant Secretary Houston, TX 77002
</TABLE>
AIM WEINGARTEN FUND
42
<PAGE> 45
[AIM LOGO APPEARS HERE]
--Registered Trademark--
Fund Management Company
11 Greenway Plaza, Suite 100
Houston, Texas 77046-1188
