<PAGE> 1
SEMIANNUAL REPORT / APRIL 30 2000
AIM LARGE CAP BASIC VALUE FUND
[COVER IMAGE]
[AIM LOGO APPEARS HERE]
--Registered Trademark--
<PAGE> 2
[ COVER IMAGE ]
-------------------------------------
STILL LIFE WITH CURTAIN AND FLOWERED PITCHER
BY PAUL CEZANNE
THE FRENCH PAINTER CEZANNE FOUND BEAUTY IN EVERYDAY OBJECTS
WITHOUT HAVING TO REMAKE THEM. HE PAINTED WHAT HE SAW--WHAT
EVERYONE SEES--AND HIS WORK MADE THE ORDINARY SEEM EXTRAORDI-
NARY. IN A SIMILAR FASHION, AIM LARGE CAP BASIC VALUE FUND
BELIEVES THAT VALUE CAN BE FOUND IN LARGE, FAMILIAR COMPANIES.
-------------------------------------
AIM Large Cap Basic Value Fund seeks long-term growth of capital, with current
income as a secondary objective, by investing in the equity securities of
large-capitalization companies.
ABOUT FUND PERFORMANCE AND PORTFOLIO DATA THROUGHOUT THIS REPORT:
o AIM Large Cap Basic Value Fund's performance figures are historical, and
they reflect the reinvestment of distributions and changes in net asset
value.
o Had the advisor not absorbed fund expenses, returns would have been lower.
o When sales charges are included in performance figures, Class A share
performance reflects the maximum 5.50% sales charge.
o The fund's performance as of the close of the reporting period is reported
in the managers' overview on the pages that follow. In addition, industry
regulations require us to provide cumulative total returns (including sales
charges) as of 3/31/00, the most recent calendar quarter-end, which were as
follows: Class A shares, inception (6/30/99), 3.33%.
o Because the fund's shares have been offered for less than a year, the
returns provided are cumulative total returns that have not yet been
annualized.
o 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.
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 Large-Cap Value Fund Index represents an average of the
performance of the 30 largest large-capitalization value funds tracked by
Lipper, Inc., an independent mutual fund performance monitor.
o The unmanaged Russell 1000 Index represents the performance of the stocks of
large-capitalization companies.
o The unmanaged Standard & Poor's Composite Index of 500 Stocks (the S&P 500)
represents the performance of the stock market.
o The unmanaged Dow Jones Industrial Average (the Dow) is a price-weighted
average of 30 actively traded primarily industrial securities.
o An investment cannot be made in an index. Unless otherwise indicated, index
results include reinvested dividends, and they do not reflect sales charges.
AN INVESTMENT IN THE FUND IS NOT A DEPOSIT OF A BANK AND IS
NOT INSURED OR GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE
CORPORATION OR ANY OTHER GOVERNMENT AGENCY. THERE IS A RISK
THAT YOU COULD LOSE SOME OR ALL OF YOUR MONEY.
This report may be distributed only to current shareholders or to persons
who have received a current prospectus of the fund.
AIM LARGE CAP BASIC VALUE FUND
<PAGE> 3
SEMIANNUAL REPORT / CHAIRMAN'S LETTER
Dear Fellow Shareholder:
[PHOTO OF When we started AIM in 1976, we had only a table, two chairs
Charles T. and a telephone. At the time, Bob Graham, Gary Crum and I
Bauer had the idea of creating a mutual fund company that put
Chairman of people first. Our slogan, "people are the product," means
the Board of that people--our employees and our investors--are our
THE FUND company.
APPEARS HERE] Almost a quarter-century later, we've grown to more than
seven million investors, $176 billion in assets under
[PHOTO OF management and 53 retail funds. Over that time, the industry
Robert H. as a whole has grown from $51 billion in assets to more than
Graham $7 trillion today. I never dreamed we would see such
APPEARS HERE] phenomenal growth. You are the main reason for our success,
and I want you to know how much I appreciate your loyalty
and trust over the past 24 years.
Usually in this letter I review market activity during
the period covered by the report. This time, I'd just like
to say thank you. I am retiring as chairman of the AIM Funds effective September
30, and as chairman of AIM effective December 31, 2000. Bob Graham, whose
picture appears under mine, will succeed me as AIM's chairman and chairman of
the AIM Funds. Gary Crum will remain president of A I M Capital Management,
Inc., leading our investment division. I am enormously proud to leave AIM in
such capable hands.
I'm also very proud of our team of employees, now more than 2,300 strong.
Because of their collective commitment to excellence and ethical business
practices, AIM has earned the trust of investors and financial advisors alike.
And every employee, from portfolio managers to client services representatives,
is dedicated to serving our shareholders.
Rest assured that nothing at AIM will change because of my retirement. You
can still depend on this company to manage your money responsibly and provide
you with top-notch service. As chairman of AIM and chairman of the AIM Funds,
Bob is committed to preserving the things that have made AIM great in the past
and positioning it to succeed in the future. And Gary is dedicated to
maintaining the quality and long-term performance you've come to expect from
AIM.
In the pages that follow, the managers of your fund comment on recent market
activity, how they have managed your fund over the past six months and their
outlook for the coming months. We trust you will find their comments helpful.
If you have any questions or comments, please contact us through our Web
site, www.aimfunds.com, or call our Client Services department at 800-959-4246
during normal business hours. Information about your account is available at our
Web site and on our automated AIM Investor Line, 800-246-5463.
Thank you again for the support and trust you've shown us. I feel privileged
to have helped you with your financial goals, and I wish you success in all your
endeavors.
Sincerely,
/s/ CHARLES T. BAUER
Charles T. Bauer
Chairman, A I M Advisors, Inc.
AIM LARGE CAP BASIC VALUE FUND
<PAGE> 4
SEMIANNUAL REPORT / MANAGERS' OVERVIEW
AIM LARGE CAP BASIC VALUE FUND
APPROACHES ONE-YEAR ANNIVERSARY
HOW DID THE FUND PERFORM DURING THE REPORTING PERIOD?
At the close of the six months ended April 30, 2000, AIM Large Cap Basic Value
Fund approached its one-year anniversary. For the reporting period, the fund's
Class A shares produced cumulative total returns of 15.86% at net asset value,
that is, without the effect of sales charges. The fund outperformed the Russell
1000 Index and the Lipper Large-Cap Value Index, which returned 9.72% and 2.44%,
respectively, for the same period.
The fund's net assets stood at $1.2 million on April 30.
WHAT WERE THE OVERALL MARKET TRENDS DURING THE REPORTING PERIOD?
The U.S. equity markets experienced significant volatility during the last six
months. Many technology stocks that soared in 1999 came crashing back to earth
in early 2000 as investors questioned those stocks' valuations. Many investors
abandoned dot-com stocks, concerned that they were overvalued, lacked a clear
business model and might never make a profit.
But even the stocks of large, historically profitable old-economy companies
were not immune to price declines if it appeared they might not meet earnings
expectations. Investors increasingly focused on corporate profits, and many
companies that failed to deliver profits to their shareholders were punished.
There were many reasons for the markets' heightened volatility, including
continued interest-rate hikes by the Federal Reserve Board (the Fed) and
sometimes contradictory economic indicators. The Fed raised short-term interest
rates five times during the last year for a total increase of 125 basis points
(1.25%) in a preemptive effort to contain inflation. (On May 16, shortly after
the close of the reporting period, the Fed raised short-term interest rates by
an additional 50 basis points and signaled it may raise rates further.)
For all the headline-making one-day dips and dives in one market benchmark
or another, it is worth noting that the most widely followed market indexes all
produced positive returns for the six months covered by this report. The S&P 500
rose 7.18%; the Dow eked out a 0.79% gain; and even the Nasdaq, which provoked
the most hand-wringing, was up an impressive 30.14%.
WHAT SECTORS WERE REPRESENTED IN THE FUND'S PORTFOLIO?
The fund's portfolio included holdings in a variety of sectors--some of which
have been ignored by investors who have rushed to embrace technology companies,
and little else, in the past year. As of April 30, 2000, financials (18.6%),
energy (16.0%), health care (13.4%) and capital goods (10.4%) were among the
sectors most heavily represented in the fund's portfolio. Technology holdings
totaled 13.2% of the fund's portfolio--just enough to contribute to fund
performance, but small enough to reduce the fund's exposure to market
volatility. With investor interest in technology relatively high, there are few
technology companies that we consider undervalued.
WHAT MADE THE ENERGY SECTOR ATTRACTIVE?
Our energy investments appreciated significantly over the last six months. Oil
prices tripled from about $11 per barrel in early 1999 to about $34 in early
2000 after OPEC member nations cut production and exports. In March 2000, OPEC
announced production increases that seemed likely to stabilize oil prices in the
range of $21 to $25--a range that provided major oil companies with an incentive
to explore for and develop offshore reserves.
We've concentrated our energy holdings in drilling and equipment companies
that serve large integrated oil companies. Drillers and equipment providers
stand to benefit most quickly from higher, sustainable oil prices. As oil prices
have risen, drilling and equipment companies have raised the rates they charge
their customers--the deep-pocketed integrated oil companies, not motorists at
the gas pump.
CUMULATIVE TOTAL RETURNS
For the six months ended 4/30/00,
excluding sales charges
BAR GRAPH
================================================================================
LARGE CAP BASIC VALUE FUND (CLASS A SHARES) 15.86%
RUSSELL 1000 INDEX 9.72%
LIPPER LARGE-CAP VALUE INDEX 2.44%
================================================================================
PORTFOLIO COMPOSITION
As of 4/30/00, based on total net assets
<TABLE>
<CAPTION>
=================================================================================================
TOP 10 EQUITY HOLDINGS TOP 10 INDUSTRIES
-------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
1. Koninklijke (Royal) Phillips 1. Oil & Gas (Drilling & Equipment) 9.20%
Electronics N.V.-ADR (Netherlands) 4.49%
2. UnitedHealth Group Inc. 3.35 2. Financial (Diversified) 8.70
3. Health Management 3. Health Care (Hospital Management) 5.46
Associates, Inc. - (Class A) 3.07
4. Transocean Sedco Forex Inc. 3.06 4. Electrical Equipment 4.96
5. Citigroup Inc. 2.99 5. Electric Companies 4.31
6. First Data Corp. 2.86 6. Retail (Food Chains) 4.21
7. International Business Machines Corp. 2.81 7. Computers (Software & Services) 4.09
8. Dynegy Inc. - (Class A) 2.74 8. Health Care (Managed Care) 3.35
9. Exxon Mobil Corp. 2.58 9. Telephone 2.96
10. Schlumberger Ltd. 2.57 10. Services (Data Processing) 2.86
The fund's portfolio is subject to change, and there is no assurance that the
fund will continue to hold any particular security.
=================================================================================================
</TABLE>
See important fund and index disclosures inside front cover.
AIM LARGE CAP BASIC VALUE FUND
2
<PAGE> 5
SEMIANNUAL REPORT / MANAGERS' OVERVIEW
WHAT WERE SOME OF THE FUND'S TOP "CORE" HOLDINGS?
Fund managers consider "core" holdings to be large companies with proven track
records, attractive business models and positive long-term outlooks. Core stocks
in the fund's portfolio included Philips Electronics, the Dutch maker of
televisions and VCRs, semiconductors, medical imaging equipment and light bulbs;
Citigroup, the world's largest financial-services company and a leader in the
credit card, banking, insurance and investment-services industries; IBM, the
world's top provider of computer hardware and the second-largest provider of
computer software; and Exxon Mobil, the world's largest integrated oil company
(formed from the 1999 merger of Exxon and Mobil). These well-established
companies have proven year in and year out their ability to grow their
businesses and deliver for their shareholders.
WHAT WERE SOME OF THE FUND'S TOP VALUE HOLDINGS?
Fund managers consider a value holding to be a stock selling at a substantial
discount to its "intrinsic value" (the "true" value of a company based on its
estimated future cash flow). Fund managers buy a value stock when the difference
between the stock's price and the company's "intrinsic value" offers a 50%
return potential.
The fund's value stocks included UnitedHealth Group, which offers a variety
of health-care plans and services, including HMO, point-of-service and
preferred-provider plans. Another value holding was Health Management
Associates, which operates more than 30 hospitals in rural areas of 12 states.
Each year the company identifies and buys a handful of financially ailing
hospitals with good turnaround potential located in growing markets; it improves
facilities and recruits medical specialists to attract patients who, previously,
would have had to travel to major cities for medical treatment.
WHAT IS YOUR MARKET OUTLOOK?
We believe that the financial markets may remain volatile for some time to
come--at least until the direction of the economy can be determined. The Fed
has made clear its intention to raise short-term interest rates sufficiently to
ensure that inflation remains in check. Perhaps the only thing investors abhor
more than higher interest rates is uncertainty about the direction of the
economy. We are optimistic that the Fed will find a way to keep the economy
growing without rekindling inflation, and that would be good news for AIM Large
Cap Basic Value Fund shareholders--and all investors.
-------------------------------------
AIM'S APPROACH TO VALUE
As the name implies, value investing typically means shopping for bargains. Many
value managers simply purchase stocks whose prices have dropped--and then hope
for a rebound.
AT AIM, WE TAKE THE PROCESS FURTHER.
Low prices serve as a starting point for researching attractive companies with
proven track records. AIM portfolio managers compare a company's stock price to
its calculated intrinsic value and then analyze the stock's appreciation
potential.
With our value discipline, you may benefit from both the growth in earnings
and the temporary discount to fair value.
We follow four basic rules for our value discipline by:
o Focusing on individual companies-- not industries, sectors or countries
o Purchasing stocks selling at a discount to their relative value
o Reducing reliance on uncertain forecasts of future events
o Maintaining a strong sell discipline
AIM's value discipline allows us to invest in attractive companies that aren't
priced at a premium. It provides shareholders broad diversification across
different industries and sectors.
Value investing may be appropriate when the broad stock market appears
overvalued. This approach also takes advantage of the natural volatility in
prices and earnings.
-------------------------------------
See important fund and index disclosures inside front cover.
AIM LARGE CAP BASIC VALUE FUND
3
<PAGE> 6
SEMIANNUAL REPORT / FOR CONSIDERATION
A PROSPEROUS RETIREMENT: IT'S UP TO YOU, AND IT CAN BE DONE
Many experts predict that Social Security could go broke sometime between 2020
and 2030 as the number of retirees outpaces the ability of the workforce to pay
for their benefits through taxes. Lawmakers are sharply divided on ways to
remedy this impending problem.
Meanwhile, the Social Security Administration is sending Americans a wake-up
call. The agency now mails annual contributions and benefit statements to all
workers covered by Social Security. You should receive your statement three
months before your birthday.
The most important information in the statement is an estimate of the
monthly retirement benefit you will receive at age 62, at full retirement and at
age 70. Many people may be shocked to learn how small that amount will be.
RETIREMENT IS EXPENSIVE
Social Security and pensions account for only 43% of the retirement income
needed by affluent retirees, according to the Social Security Administration and
the U.S. Bureau of Labor Statistics. The other 57% may need to come from
personal savings. Financial experts estimate that most people will need about
75% of their current annual income to maintain their lifestyle in retirement.
If you're depending on Social Security alone, you may have to scale back your
lifestyle considerably upon retirement.
WOULD YOU RATHER BE A MILLIONAIRE?
Of course you would. What to do? You could try to become a guest on the hit
television quiz show. A more practical way is to save and invest now for a
comfortable retirement later. But remember: when planning for retirement, time
can be your best friend--or your worst enemy. Time can affect your retirement
plans in three ways.
o The longer you wait to begin saving for retirement, the more you'll have to
save to accumulate the nest egg you'll need, as the table nearby shows.
o Even modest inflation means that each dollar you save today will be less
valuable 20 or 30 or 40 years from now. Over a 25-year period, a 2% annual
rate of inflation reduces the value (the "buying power") of $1,000 to just
$610.
o As Americans live longer, they need their retirement savings to last longer.
More and more Americans each year outlive their savings.
Let's estimate you'll need $1 million to live comfortably in retirement. How
much will you need to save each month to reach your goal--if you start early, or
if you wait to begin saving?
THE LESSON? START SAVING EARLY
Procrastination can be expensive. The longer you wait to begin your retirement
saving plan, the more you'll have to save
WILL YOU HAVE ENOUGH FOR RETIREMENT?
Social Security and pensions account for 43% of the retirement income needed by
affluent retirees. The rest must come from personal savings.
<TABLE>
<CAPTION>
================================================================================
PIE GRAPH
--------------------------------------------------------------------------------
<S> <C>
SOCIAL SECURITY AND PENSIONS 43%
PERSONAL SAVINGS 57%
Source: Social Security Administration and U.S. Bureau of Labor Statistics
================================================================================
</TABLE>
<TABLE>
<CAPTION>
================================================================================
[PHOTO]
STARTING EARLY MAKES IT EASIER TO SAVE FOR RETIREMENT
YEARS TO MONTHLY SAVINGS
CURRENT SAVE UNTIL RETIREMENT NEEDED TO
AGE RETIREMENT SAVINGS GOAL REACH GOAL
--------------------------------------------------------------------------------
<S> <C> <C> <C>
25 40 $1,000,000 $ 85
35 30 $1,000,000 $ 284
45 20 $1,000,000 $ 1,001
55 10 $1,000,000 $ 4,305
All figures assume a 12% annual return on investments. This hypothetical example
is for illustrative purposes only and is not intended to represent the
performance of any particular fund, IRA or investor. Your actual return isn't
likely to be consistent from year to year and there is no guarantee that a
specific rate of return will be achieved.
================================================================================
</TABLE>
AIM LARGE CAP BASIC VALUE FUND
4
<PAGE> 7
SEMIANNUAL REPORT / FOR CONSIDERATION
each month to build an adequate retirement nest egg. The person who starts
saving at age 25 may be able to accumulate $1 million by saving just $85 a
month. Someone who waits to age 35 before beginning to save for retirement will
have to contribute more than three times as much each month to make up for lost
time!
START WITH A PRACTICAL INVESTMENT PLAN
A comfortable retirement is within your reach. But you will need a practical
investment plan to get there. So consider the four steps described here and talk
them over with your financial advisor. He or she can help you devise a plan and
choose investments suited to your unique circumstances.
1. IF YOU HAVE A 401(k) PLAN, CONTRIBUTE TO IT--AND MAKE THE MOST OF EMPLOYER
MATCHING. If your employer matches 401(k) contributions, contribute at least
enough to maximize the company's contribution. If the company match is 5% of
your salary, contribute at least 5% of your pay yourself. From your
stand-point, the employer contribution is "free" money.
2. CONTRIBUTE TO AN IRA TOO. Even if you cannot deduct an IRA contribution, you
can enjoy an IRA's tax-deferred compounding. And don't forget the added
advantage of the spousal IRA.
3. DIVERSIFY! Asset diversification helps manage risk because different types
of assets behave differently. If you put your retirement assets into mutual
funds, consider buying more than one type of fund.
4. IF YOU HAVE TIME, INVEST AGGRESSIVELY. Historically, small-company stocks
have provided the highest returns. They can be volatile in the short term,
but if you can be patient, consider including aggressive small-company
growth funds in your portfolio.
DOLLAR-COST AVERAGING TYPICALLY LOWERS THE COST OF INVESTING
One simple way to save for retirement is to use an installment plan. With a
strategy called dollar-cost averaging, you can commit a fixed amount of money to
an investment at regular intervals. There are several advantages to this plan:
o Regular investing of equal amounts helps you make the most of market highs
and lows. You automatically buy more shares when prices are low and fewer
shares when prices are high.
o Your average cost per share is less than your average price per share. The
only time this would not occur is if the share price remained constant.
o This strategy is especially appropriate for long-term investments, such as
retirement plans, because the longer you maintain a regular investment
program, the more likely you will be to buy shares at a wide variety of
prices.
o By systematically investing, you will be less tempted to make decisions on
the basis of short-term events and your emotions. Your fortunes as an
investor won't depend on your ability to make the right call about future
trends. Of course, no investment strategy--even dollar-cost averaging--is
guaranteed to result in profits or protect against losses in declining
markets. Since dollar-cost averaging involves continuous investing
regardless of fluctuating securities prices, you should consider your
ability to continue purchases through periods of low price levels.
WHAT SHOULD YOU DO?
Visit your financial advisor. He or she can help you determine how much money
you'll actually need in retirement and how to earn that money through careful
investments.
<TABLE>
<CAPTION>
================================================================================
DOLLAR-COST AVERAGING LOWERS COST OF INVESTING
AMOUNT SHARE SHARES
MONTH INVESTED PRICE PURCHASED
--------------------------------------------------------------------------------
<S> <C> <C> <C>
JANUARY $ 200.00 $ 24.00 8.333
FEBRUARY $ 200.00 $ 20.00 10.000
MARCH $ 200.00 $ 14.00 14.286
APRIL $ 200.00 $ 18.00 11.111
MAY $ 200.00 $ 22.00 9.091
JUNE $ 200.00 $ 24.00 8.333
SIX-MONTH TOTAL $1,200.00 $122.00 61.154
Average price per share: $122.00 divided by 6 equals $20.33;
Average cost to you per share: $1,200.00 divided by 61.154 equals $19.62
--------------------------------------------------------------------------------
</TABLE>
AIM LARGE CAP BASIC VALUE FUND
5
<PAGE> 8
SCHEDULE OF INVESTMENTS
April 30, 2000
(Unaudited)
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
COMMON STOCKS & OTHER EQUITY
INTERESTS-94.34%
AUTOMOBILES-1.57%
General Motors Corp. 200 $ 18,725
-------------------------------------------------------------
BANKS (MAJOR REGIONAL)-0.89%
FleetBoston Financial Corp. 300 10,631
-------------------------------------------------------------
BANKS (MONEY CENTER)-2.05%
Bank of America Corp. 500 24,500
-------------------------------------------------------------
CHEMICALS-1.69%
Air Products & Chemicals, Inc. 650 20,191
-------------------------------------------------------------
COMPUTERS (HARDWARE)-2.81%
International Business Machines Corp. 300 33,487
-------------------------------------------------------------
COMPUTERS (SOFTWARE & SERVICES)-4.09%
BMC Software, Inc.(a) 200 9,362
-------------------------------------------------------------
Computer Associates International, Inc. 500 27,906
-------------------------------------------------------------
Unisys Corp.(a) 500 11,594
-------------------------------------------------------------
48,862
-------------------------------------------------------------
DISTRIBUTORS (FOOD & HEALTH)-1.56%
McKesson HBOC, Inc. 1,100 18,562
-------------------------------------------------------------
ELECTRIC COMPANIES-4.31%
Central and South West Corp. 700 15,181
-------------------------------------------------------------
Niagara Mohawk Holdings Inc.(a) 1,400 19,425
-------------------------------------------------------------
Texas Utilities Co. 500 16,844
-------------------------------------------------------------
51,450
-------------------------------------------------------------
ELECTRICAL EQUIPMENT-4.96%
Koninklijke (Royal) Phillips Electronics
N.V.-ADR (Netherlands) 1,200 53,550
-------------------------------------------------------------
Sony Corp.-ADR (Japan) 25 5,641
-------------------------------------------------------------
59,191
-------------------------------------------------------------
FINANCIAL (DIVERSIFIED)-8.70%
Associates First Capital Corp.-Class A 500 11,094
-------------------------------------------------------------
Citigroup Inc. 600 35,663
-------------------------------------------------------------
Fannie Mae 400 24,125
-------------------------------------------------------------
Freddie Mac 300 13,781
-------------------------------------------------------------
MGIC Investment Corp. 400 19,125
-------------------------------------------------------------
103,788
-------------------------------------------------------------
HEALTH CARE (DRUGS-MAJOR
PHARMACEUTICALS)-1.49%
Pharmacia Corp. 357 17,828
-------------------------------------------------------------
HEALTH CARE (HOSPITAL MANAGEMENT)-5.45%
Columbia/HCA Healthcare Corp. 1,000 28,438
-------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
HEALTH CARE (HOSPITAL MANAGEMENT)-(CONTINUED)
Health Management Associates, Inc.-Class
A(a) 2,300 $ 36,656
-------------------------------------------------------------
65,094
-------------------------------------------------------------
HEALTH CARE (LONG TERM CARE)-0.80%
Manor Care, Inc.(a) 800 9,550
-------------------------------------------------------------
HEALTH CARE (MANAGED CARE)-3.35%
UnitedHealth Group Inc. 600 40,013
-------------------------------------------------------------
HEALTH CARE (MEDICAL PRODUCTS &
SUPPLIES)-2.17%
Beckman Coulter, Inc. 400 25,925
-------------------------------------------------------------
INSURANCE (MULTI-LINE)-1.15%
American International Group, Inc. 125 13,711
-------------------------------------------------------------
INSURANCE (PROPERTY-CASUALTY)-1.60%
XL Capital Ltd.-Class A 400 19,050
-------------------------------------------------------------
INSURANCE BROKERS-2.27%
Aon Corp. 1,000 27,063
-------------------------------------------------------------
INVESTMENT MANAGEMENT-1.35%
Franklin Resources, Inc. 500 16,125
-------------------------------------------------------------
LEISURE TIME (PRODUCTS)-1.95%
Mattel, Inc. 1,900 23,275
-------------------------------------------------------------
MANUFACTURING (DIVERSIFIED)-1.45%
Minnesota Mining and Manufacturing Co. 200 17,300
-------------------------------------------------------------
MANUFACTURING (SPECIALIZED)-2.34%
Parker-Hannifin Corp. 600 27,900
-------------------------------------------------------------
NATURAL GAS-2.74%
Dynegy Inc.-Class A 500 32,719
-------------------------------------------------------------
OIL & GAS (DRILLING & EQUIPMENT)-9.20%
Diamond Offshore Drilling, Inc. 400 16,125
-------------------------------------------------------------
ENSCO International Inc. 800 26,550
-------------------------------------------------------------
Schlumberger Ltd. 400 30,625
-------------------------------------------------------------
Transocean Sedco Forex Inc. 777 36,519
-------------------------------------------------------------
109,819
-------------------------------------------------------------
OIL (INTERNATIONAL INTEGRATED)-4.68%
BP Amoco PLC-ADR (United Kingdom) 492 25,092
-------------------------------------------------------------
Exxon Mobil Corp. 396 30,764
-------------------------------------------------------------
55,856
-------------------------------------------------------------
PAPER & FOREST PRODUCTS-1.54%
International Paper Co. 500 18,375
-------------------------------------------------------------
</TABLE>
6
<PAGE> 9
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
RETAIL (DEPARTMENT STORES)-0.85%
Federated Department Stores, Inc.(a) 300 $ 10,200
-------------------------------------------------------------
RETAIL (FOOD CHAINS)-4.21%
Albertson's, Inc. 800 26,050
-------------------------------------------------------------
Kroger Co. (The)(a) 1,300 24,131
-------------------------------------------------------------
50,181
-------------------------------------------------------------
SERVICES (COMMERCIAL & CONSUMER)-1.14%
IMS Health, Inc. 800 13,650
-------------------------------------------------------------
SERVICES (COMPUTER SYSTEMS)-1.16%
SunGard Data Systems, Inc.(a) 400 13,825
-------------------------------------------------------------
SERVICES (DATA PROCESSING)-2.86%
First Data Corp. 700 34,081
-------------------------------------------------------------
TELECOMMUNICATIONS (LONG DISTANCE)-1.57%
AT&T Corp. 400 18,675
-------------------------------------------------------------
TELEPHONE-2.96%
Bell Atlantic Corp. 300 17,775
-------------------------------------------------------------
SBC Communications Inc. 400 17,525
-------------------------------------------------------------
35,300
-------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
TOBACCO-1.10%
Philip Morris Cos. Inc. 600 $ 13,125
-------------------------------------------------------------
WASTE MANAGEMENT-2.33%
Waste Management, Inc. 1,750 27,781
-------------------------------------------------------------
Total Common Stocks & Other Equity
Interests (Cost $1,146,179) 1,125,808
-------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
<S> <C> <C>
U.S. GOVERNMENT AGENCY SECURITIES-3.02%
FEDERAL HOME LOAN MORTGAGE CORP.
("FHLMC")-3.02%
Discount Notes, 5.88%, 05/01/00 (Cost
$36,000)(b) $36,000 $ 36,000
---------------------------------------------------------------
TOTAL INVESTMENTS-97.36% (Cost
$1,182,179) 1,161,808
---------------------------------------------------------------
OTHER ASSETS LESS LIABILITIES-2.64% 31,504
---------------------------------------------------------------
NET ASSETS-100.00% $1,193,312
===============================================================
</TABLE>
Investment Abbreviations:
ADR - American Depositary Receipt
Notes to Schedule of Investments:
(a) Non-income producing security.
(b) The interest rate shown represents the rate of discount paid or received at
the time of purchase by the Fund.
See Notes to Financial Statements.
7
<PAGE> 10
STATEMENT OF ASSETS AND LIABILITIES
April 30, 2000
(Unaudited)
<TABLE>
<S> <C>
ASSETS:
Investments, at market value (Cost $1,182,179) $ 1,161,808
------------------------------------------------------------
Receivables for:
Amount due from Advisor 35,149
------------------------------------------------------------
Capital stock sold 25
------------------------------------------------------------
Dividends 1,183
------------------------------------------------------------
Investment for deferred compensation plan 3,906
------------------------------------------------------------
Other assets 15,699
------------------------------------------------------------
Total assets 1,217,770
------------------------------------------------------------
LIABILITIES:
Payables for:
Deferred compensation plan 3,906
------------------------------------------------------------
Accrued administrative services fees 4,098
------------------------------------------------------------
Accrued distribution fees 347
------------------------------------------------------------
Accrued directors' fees 570
------------------------------------------------------------
Accrued transfer agent fees 309
------------------------------------------------------------
Accrued operating expenses 15,228
------------------------------------------------------------
Total liabilities 24,458
------------------------------------------------------------
Net assets applicable to shares outstanding $ 1,193,312
============================================================
NET ASSETS:
Class A $ 1,193,312
============================================================
CAPITAL STOCK, $0.001 PAR VALUE PER SHARE:
Class A:
Authorized 750,000,000
------------------------------------------------------------
Outstanding 112,981
------------------------------------------------------------
Class A:
Net asset value and redemption price per
share $ 10.56
------------------------------------------------------------
Offering price per share:
(Net asset value of
$10.56 divided by 94.50%) $ 11.17
============================================================
</TABLE>
STATEMENT OF OPERATIONS
For the six months ended April 30, 2000
(Unaudited)
<TABLE>
<S> <C>
INVESTMENT INCOME:
Dividends (net of foreign withholding tax $86) $ 8,018
-----------------------------------------------------------
Interest 1,949
-----------------------------------------------------------
Total investment income 9,967
-----------------------------------------------------------
EXPENSES:
Advisory fees 3,322
-----------------------------------------------------------
Administrative services fees 24,863
-----------------------------------------------------------
Custodian fees 2,692
-----------------------------------------------------------
Distribution fees-Class A 1,933
-----------------------------------------------------------
Transfer agent fees-Class A 911
-----------------------------------------------------------
Printing 8,112
-----------------------------------------------------------
Professional fees 24,068
-----------------------------------------------------------
Directors' fees 4,082
-----------------------------------------------------------
Other 10,417
-----------------------------------------------------------
Total expenses 80,400
-----------------------------------------------------------
Less: Fees waived and expenses reimbursed (73,466)
-----------------------------------------------------------
Expenses paid indirectly (17)
-----------------------------------------------------------
Net expenses 6,917
-----------------------------------------------------------
Net investment income 3,050
-----------------------------------------------------------
REALIZED AND UNREALIZED GAIN ON INVESTMENT
SECURITIES
Net realized gain from investment securities 99,366
-----------------------------------------------------------
Change in net unrealized appreciation of
investment securities 64,702
-----------------------------------------------------------
Net gain on investment securities 164,068
-----------------------------------------------------------
Net increase in net assets resulting from
operations $167,118
===========================================================
</TABLE>
See Notes to Financial Statements.
8
<PAGE> 11
STATEMENT OF CHANGES IN NET ASSETS
For the six months ended April 30, 2000 and the period June 30, 1999 (date
operations commenced) through October 31, 1999
(Unaudited)
<TABLE>
<CAPTION>
APRIL 30, OCTOBER 31,
2000 1999
---------- -----------
<S> <C> <C>
OPERATIONS:
Net investment income $ 3,050 $ 3,308
---------------------------------------------------------------------------------------
Net realized gain from investment securities 99,366 8,496
---------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) of
investment securities 64,702 (85,073)
---------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
operations 167,118 (73,269)
---------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM NET INVESTMENT INCOME:
Class A (19,234) --
---------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM NET REALIZED GAINS:
Class A (12,288) --
---------------------------------------------------------------------------------------
SHARE TRANSACTIONS-NET:
Class A (95,391) 1,226,376
---------------------------------------------------------------------------------------
Net increase in net assets 40,205 1,153,107
---------------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 1,153,107 --
---------------------------------------------------------------------------------------
End of period $1,193,312 $1,153,107
=======================================================================================
NET ASSETS CONSIST OF:
Capital (par value and additional paid-in) $1,126,969 $1,222,360
---------------------------------------------------------------------------------------
Undistributed net investment income (loss) (8,860) 7,324
---------------------------------------------------------------------------------------
Undistributed net realized gain from investment securities 95,574 8,496
---------------------------------------------------------------------------------------
Unrealized appreciation (depreciation) of investment
securities (20,371) (85,073)
---------------------------------------------------------------------------------------
$1,193,312 $1,153,107
=======================================================================================
</TABLE>
See Notes to Financial Statements.
9
<PAGE> 12
NOTES TO FINANCIAL STATEMENTS
April 30, 2000
(Unaudited)
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES
AIM Large Cap Basic Value 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 consists of three different classes of shares:
Class A shares, Class B shares and Class C shares. Class A shares are sold with
a front-end sales charge. Class B shares and Class C shares will be sold with a
contingent deferred sales charge. Matters affecting each portfolio or class will
be voted on exclusively by the shareholders of such portfolio or class. The
assets, liabilities and operations of each portfolio are accounted for
separately. Information presented in these financial statements pertains only to
the Fund. The Fund's investment objective is long-term growth of capital 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.
10
<PAGE> 13
F. Foreign Currency Contracts--A foreign currency contract is an obligation to
purchase or sell a specific currency for an agreed-upon price at a future
date. The Fund may enter into a foreign currency contract to attempt to
minimize the risk to the Fund from adverse changes in the relationship
between currencies. The Fund may also enter into a foreign currency contract
for the purchase or sale of a security denominated in a foreign currency in
order to "lock in" the U.S. dollar price of that security. The Fund could be
exposed to risk if counterparties to the contracts are unable to meet the
terms of their contracts or if the value of the foreign currency changes
unfavorably.
G. Expenses--Distribution expenses and certain transfer agency expenses
directly attributable to a class of shares are charged to those classes'
operations. All other expenses which are attributable to more than one class
are allocated among the classes.
NOTE 2-ADVISORY FEES AND OTHER TRANSACTIONS WITH AFFILIATES
The Company has entered into a master investment advisory agreement with A I M
Advisors, Inc. ("AIM"). Under the terms of the master investment advisory
agreement, the Fund pays an advisory fee to AIM at the annual rate of 0.60% of
the first $1 billion of the Fund's average daily net assets, plus 0.575% over $1
billion to and including $2 billion of the Fund's average daily net assets and
0.55% of the Fund's average daily net assets over $2 billion. AIM has
contractually agreed to waive fees and reimburse expenses (excluding interest,
taxes, dividends on short sales, extraordinary items and increases in expenses
due to offset arrangements, if any) for Class A, Class B and Class C shares to
the extent necessary to limit the total operating expenses of Class A Shares to
1.25% (e.g. if AIM waives 0.42% of Class A expenses, AIM will also waive 0.42%
of Class B and Class C expenses). During the six months ended April 30, 2000,
AIM waived fees of $3,322 and reimbursed expenses of $70,144.
The Fund, pursuant to a master administrative services agreement with AIM,
has agreed to pay AIM for certain administrative costs incurred in providing
accounting services to the Fund. For the six months ended April 30, 2000, AIM
was paid $24,863 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 $198 for such services.
The Company has entered into master distribution agreements with A I M
Distributors, Inc. ("AIM Distributors") to serve as the distributor for the
Class A, Class B and Class C shares of the Fund. The Company has adopted plans
pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund's Class A
shares, Class B shares and Class C shares (collectively the "Plans"). The Fund,
pursuant to the Plans, pays AIM Distributors compensation at the annual rate of
0.35% of the Fund's average daily net assets of Class A shares and 1.00% of the
average daily net assets of Class B and C shares. Of these amounts, the Fund may
pay a service fee of 0.25% of the average daily net assets of the Class A, Class
B or Class C shares to selected dealers and financial institutions who furnish
continuing personal shareholder services to their customers who purchase and own
the appropriate class of shares of the Fund. Any amounts not paid as a service
fee under the Plans would constitute an asset-based sales charge. The Plans also
impose a cap on the total sales charges, including asset-based sales charges
that may be paid by the respective classes. During the six months ended April
30, 2000, the Class A, shares paid AIM Distributors $1,933 as compensation under
the Plans.
AIM Distributors received commissions of $100 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 $0 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
$1,325 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-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 4-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.
11
<PAGE> 14
NOTE 5-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
$346,833 and $426,377, 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 $ 132,398
-----------------------------------------------------------------------
Aggregate unrealized (depreciation) of investment securities (156,298)
-----------------------------------------------------------------------
Net unrealized appreciation (depreciation) of investment
securities $ (23,900)
=======================================================================
Cost of investments for tax purposes is $1,185,708.
</TABLE>
NOTE 6-CAPITAL STOCK
Changes in capital stock outstanding during the six months ended April 30, 2000
and the period June 30, 1999 (date operations commenced) through October 31,
1999 were as follows:
<TABLE>
<CAPTION>
APRIL 30, 2000 OCTOBER 31, 1999
-------------------- ---------------------
SHARES AMOUNT SHARES AMOUNT
------- --------- ------- ----------
<S> <C> <C> <C> <C>
Sold:
Class A 10,248 $ 99,260 125,927 $1,256,078
-----------------------------------------------------------------------------------------------------------
Issued as reinvestment of dividends:
Class A 3,346 31,522 -- --
-----------------------------------------------------------------------------------------------------------
Reacquired:
Class A (23,348) (226,173) (3,192) (29,702)
-----------------------------------------------------------------------------------------------------------
(9,754) $ (95,391) 122,735 $1,226,376
===========================================================================================================
</TABLE>
NOTE 7-FINANCIAL HIGHLIGHTS
Contained below is per share operating performance data for a share outstanding
throughout each period, total investment return, ratios and supplemental data.
This information has been derived from information provided in the financial
statements.
<TABLE>
<CAPTION>
CLASS A
------------------------------------
JUNE 30,
1999
(DATE OPERATIONS
COMMENCED)
SIX MONTHS ENDED TO
APRIL 30, OCTOBER 31,
2000 1999
---------------- ----------------
<S> <C> <C>
Net asset value, beginning of period $ 9.40 $ 10.00
----------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income 0.04 0.03
----------------------------------------------------------------------------------------------------
Net gains (losses) on securities (both realized and
unrealized) 1.42 (0.63)
----------------------------------------------------------------------------------------------------
Total from investment operations 1.46 (0.60)
----------------------------------------------------------------------------------------------------
Less distributions:
Dividends from net investment income (0.18) --
----------------------------------------------------------------------------------------------------
Distributions from net realized gains (0.12) --
----------------------------------------------------------------------------------------------------
Total distributions (0.30) --
----------------------------------------------------------------------------------------------------
Net asset value, end of period $10.56 $ 9.40
====================================================================================================
Total return(a) 15.86% (6.00)%
====================================================================================================
Ratios/supplemental data:
Net assets, end of period (000s omitted) $1,193 $ 1,153
====================================================================================================
Ratio of expenses to average net assets:
With fee waivers 1.25%(b) 1.25%(c)
====================================================================================================
Without fee waivers 14.56%(b) 10.02%(c)
====================================================================================================
Ratio of net investment income (loss) to average net assets 0.55%(b) 0.87%(c)
====================================================================================================
Portfolio turnover rate 33% 10%
====================================================================================================
</TABLE>
(a) Does not deduct sales charges and is not annualized for periods less than
one year.
(b) Ratios are annualized and based on average net assets of $1,110,505.
(c) Annualized.
12
<PAGE> 15
<TABLE>
<CAPTION>
BOARD OF DIRECTORS OFFICERS OFFICE OF THE FUND
<S> <C> <C>
Charles T. Bauer Charles T. Bauer 11 Greenway Plaza
Chairman Chairman Suite 100
A I M Management Group Inc. Houston, TX 77046
Robert H. Graham
Bruce L. Crockett President INVESTMENT ADVISOR
Director
ACE Limited; Carol F. Relihan A I M Advisors, Inc.
Formerly Director, President, and Senior Vice President and Secretary 11 Greenway Plaza
Chief Executive Officer Suite 100
COMSAT Corporation Gary T. Crum Houston, TX 77046
Senior Vice President
Owen Daly II TRANSFER AGENT
Director Edgar M. Larsen
Cortland Trust Inc. Senior Vice President A I M Fund Services, Inc.
P.O. Box 4739
Edward K. Dunn Jr. Dana R. Sutton Houston, TX 77210-4739
Chairman, Mercantile Mortgage Corp.; Vice President and Treasurer
Formerly Vice Chairman and President, CUSTODIAN
Mercantile-Safe Deposit & Trust Co.; and Melville B. Cox
President, Mercantile Bankshares Vice President State Street Bank and Trust Company
225 Franklin Street
Jack Fields Mary J. Benson Boston, MA 02110
Chief Executive Officer Assistant Vice President and
Texana Global, Inc.; Assistant Treasurer COUNSEL TO THE FUND
Formerly Member
of the U.S. House of Representatives Sheri Morris Ballard Spahr
Assistant Vice President and Andrews & Ingersoll, LLP
Carl Frischling Assistant Treasurer 1735 Market Street
Partner Philadelphia, PA 19103
Kramer, Levin, Naftalis & Frankel LLP Renee A. Friedli
Assistant Secretary COUNSEL TO THE DIRECTORS
Robert H. Graham
President and Chief Executive Officer P. Michelle Grace Kramer, Levin, Naftalis & Frankel LLP
A I M Management Group Inc. Assistant Secretary 919 Third Avenue
New York, NY 10022
Prema Mathai-Davis Nancy L. Martin
Chief Executive Officer, YWCA of the U.S.A. Assistant Secretary DISTRIBUTOR
Lewis F. Pennock Ofelia M. Mayo A I M Distributors, Inc.
Attorney Assistant Secretary 11 Greenway Plaza
Suite 100
Louis S. Sklar Lisa A. Moss Houston, TX 77046
Executive Vice President Assistant Secretary
Hines Interests
Limited Partnership Kathleen J. Pflueger
Assistant Secretary
Samuel D. Sirko
Assistant Secretary
</TABLE>
<PAGE> 16
THE AIM FAMILY OF FUNDS--Registered Trademark--
<TABLE>
<S> <C> <C>
GROWTH FUNDS MONEY MARKET FUNDS
AIM Aggressive Growth Fund AIM Money Market Fund A I M Management Group Inc.
AIM Blue Chip Fund AIM Tax-Exempt Cash Fund has provided leadership in the
AIM Capital Development Fund mutual fund industry since
AIM Constellation Fund(1) INTERNATIONAL GROWTH FUNDS 1976 and managed approximately
AIM Dent Demographic Trends Fund AIM Advisor International Value Fund $176 billion in assets for
AIM Emerging Growth Fund AIM Asian Growth Fund more than 7.4 million
AIM Large Cap Growth Fund AIM Developing Markets Fund shareholders, including
AIM Large Cap Opportunities Fund AIM Euroland Growth Fund(5) individual investors,
AIM Mid Cap Equity Fund AIM European Development Fund corporate clients and
AIM Mid Cap Growth Fund AIM International Equity Fund financial institutions, as of
AIM Mid Cap Opportunities Fund(2) AIM Japan Growth Fund March 31, 2000.
AIM Select Growth Fund AIM Latin American Growth Fund The AIM Family of
AIM Small Cap Growth Fund(3) Funds--Registered Trademark--
AIM Small Cap Opportunities Fund(4) GLOBAL GROWTH FUNDS is distributed nationwide, and
AIM Value Fund AIM Global Aggressive Growth Fund AIM today is the
AIM Weingarten Fund AIM Global Growth Fund eighth-largest mutual fund
AIM Global Trends Fund(6) complex in the United States
GROWTH & INCOME FUNDS in assets under management,
AIM Advisor Flex Fund GLOBAL GROWTH & INCOME FUNDS according to Strategic
AIM Advisor Real Estate Fund AIM Global Utilities Fund Insight, an independent mutual
AIM Balanced Fund fund monitor.
AIM Basic Value Fund GLOBAL INCOME FUNDS
AIM Charter Fund AIM Global Income Fund
AIM Strategic Income Fund
INCOME FUNDS
AIM Floating Rate Fund THEME FUNDS
AIM High Yield Fund AIM Global Consumer Products and Services Fund
AIM High Yield Fund II AIM Global Financial Services Fund
AIM Income Fund AIM Global Health Care Fund
AIM Intermediate Government Fund AIM Global Infrastructure Fund
AIM Limited Maturity Treasury Fund AIM Global Resources Fund
AIM Global Telecommunications and Technology Fund
TAX-FREE INCOME FUNDS
AIM High Income Municipal Fund
AIM Municipal Bond Fund
AIM Tax-Exempt Bond Fund of Connecticut
AIM Tax-Free Intermediate Fund
</TABLE>
(1) Effective December 1, 1999, AIM Constellation Fund's investment strategy
broadened to allow investments across all market capitalizations. (2) AIM Mid
Cap Opportunities Fund closed to new investors on March 21, 2000. (3) AIM Small
Cap Growth Fund closed to new investors on November 8, 1999. (4) AIM Small Cap
Opportunities Fund closed to new investors on November 4, 1999. (5) On September
1, 1999, AIM Europe Growth Fund was renamed AIM Euroland Growth Fund. Previously
the fund invested in all size companies in most areas of Europe. The fund now
seeks to invest at least 65% of its assets in large-cap companies within
countries using the euro as their currency (EMU-member countries). (6) Effective
August 27, 1999, AIM Global Trends Fund was restructured to operate as a
traditional mutual fund. Before that date, the fund operated as a fund of funds.
For more complete information about any AIM fund(s), including sales charges and
expenses, ask your financial advisor or securities dealer for a free
prospectus(es). Please read the prospectus(es) carefully before you invest or
send money. If used as sales material after July 20, 2000, this report must be
accompanied by a current Quarterly Review of Performance for AIM Funds.
[AIM LOGO APPEARS HERE]
--Registered Trademark--
INVEST WITH DISCIPLINE
--Registered Trademark--
[DALBAR LOGO
APPEARS HERE]
A I M Distributors, Inc.
LCBV-SAR-1
