<PAGE> 1
SEMIANNUAL REPORT / APRIL 30 2000
AIM DENT DEMOGRAPHIC TRENDS FUND
[COVER IMAGE]
[AIM LOGO APPEARS HERE]
--Registered Trademark--
<PAGE> 2
FUND ARTWORK
------------------------------------
ALL IN A CROWD BY DIANA ONG (BORN 1940, CHINESE-AMERICAN)
ONG'S VIVID WATERCOLOR EVOKES THE ENERGY AND OPTIMISM OF THE
BABY-BOOM GENERATION. WITH THEIR DRIVE AND INNOVATION, THIS
GENERATION DOMINATES THE ECONOMY AND MAY PROPEL THE STOCK
MARKET FOR THE NEXT DECADE.
------------------------------------
AIM Dent Demographic Trends Fund seeks to provide long-term growth of capital by
investing in the securities of companies that are likely to benefit from
changing demographic, economic and lifestyle trends.
ABOUT FUND PERFORMANCE AND PORTFOLIO DATA THROUGHOUT THIS REPORT:
o AIM Dent Demographic Trends Fund's performance figures are historical, and
they reflect the reinvestment of distributions and changes in net asset
value.
o When sales charges are included in performance figures, Class A share
performance reflects the maximum 5.50% sales charge, and Class B and Class
C share performance reflects the applicable contingent deferred sales
charge (CDSC) for the period involved. The CDSC on Class B shares declines
from 5% beginning at the time of purchase to 0% at the beginning of the
seventh year. The CDSC on Class C shares is 1% for the first year after
purchase. The performance of the fund's Class B and Class C shares will
differ from that of its Class A shares due to different sales-charge
structure and class expenses.
o The fund commenced sales on 6/7/99. Because shares have been offered for
less than a year, the return provided is the cumulative total return that
has not been annualized. Cumulative total returns for the fund since
inception, including sales charges, as of 4/30/00 are as follows: Class A
shares, 49.91%; Class B shares, 52.70%; Class C shares, 56.70%. 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: Class A shares, 61.53%; Class B shares, 65.00%;
Class C shares, 69.00%.
o Harry S. Dent's stock market scenario for the coming decade, which is based
on historical data, represents his opinion. Unforeseen events such as
rising inflation, declining productivity, irregular spending and savings
patterns, and other social, political and economic uncertainty could affect
corporate earnings and the stock market, negatively altering Mr. Dent's
view.
o The fund participates in the initial public offering (IPO) market, and a
significant portion of its returns are attributable to its investment in
IPOs, which have a magnified impact due to the fund's relatively small
asset base. There is no guarantee that as the fund's assets grow, it will
continue to experience substantially similar performance by investing in
IPOs.
o Investing in micro-, small and mid-sized companies may involve risks not
associated with more established companies. Also, micro and small companies
may have business risk, significant stock-price fluctuations and
illiquidity.
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 Russell 3000 Index represents the performance of
large-capitalization stocks.
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 DENT DEMOGRAPHIC TRENDS FUND
<PAGE> 3
SEMIANNUAL REPORT / CHAIRMAN'S LETTER
Dear Fellow Shareholder:
[PHOTOS OF When we started AIM in 1976, we had only a table, two chairs
Robert H. Graham and a telephone. At the time, Bob Graham, Gary Crum and I
and 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
APPEAR HERE] seven million investors, $176 billion in assets under
management and 53 retail funds. Over that time, the industry
as a whole has grown from $51 billion in assets to more than
$7 trillion today. I never dreamed we would see such
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 DENT DEMOGRAPHIC TRENDS FUND
<PAGE> 4
SEMIANNUAL REPORT / MANAGERS' OVERVIEW
AIM DENT DEMOGRAPHIC TRENDS FUND RISES
ABOVE VOLATILE MARKET
HOW DID AIM DENT DEMOGRAPHIC TRENDS FUND PERFORM DURING THE REPORTING PERIOD?
Though not quite a year old, the fund has performed impressively despite the
capricious stock market. For the six-month period ended April 30, 2000, Class A,
Class B and Class C shares of the fund posted returns of 30.64%, 30.22% and
30.22%, respectively. (These returns are at net asset value, which does not
include sales charges.) The fund handily outperformed its primary benchmark, the
Russell 3000 Index, which had a return of 10.32% for the reporting period. Net
assets in the fund more than tripled from $392 million to $1.4 billion over the
past six months.
WHAT WAS THE MARKET ENVIRONMENT LIKE DURING THE REPORTING PERIOD?
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 (not 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.
HAS THE FUND'S PORTFOLIO CHANGED SINCE YOUR LAST REPORT?
Although the fund is clearly tilted toward large-cap stocks, we were able to
participate in the rotation from large- to mid- and small-cap stocks that
happened during the reporting period because of our diversified portfolio. We
still believe that large-cap stocks will win the race for leadership over time,
but the fund also has a complementary mix of small- and mid-cap stocks.
The predominant sectors in the fund's portfolio continue to be technology,
financials, health care and consumer-related products and services. These are
the sectors we expect will benefit from current and future demographic trends.
Over the
OUR INVESTMENT PHILOSOPHY
AIM Dent Demographic Trends Fund is designed to capitalize on consumer spending
habits. The fund's management team is guided by the opinions and research of
Harry S. Dent Jr., a strategic consultant and best-selling author. According to
Dent's analysis:
o The major force driving the stock market historically has been consumer
spending on major purchases such as housing, furnishings, appliances and
cars.
o Historically, the market has done well when a generation's spending peaks
at about age 46 1/2.
o As more baby boomers reach their peak spending age, they may propel the
stock market for the next decade.
The fund focuses on companies in market sectors that are expected to benefit
from this spending wave.
FUND BEATS RUSSELL 3000 INDEX
Cumulative returns for six months ended 4/30/00,
excluding sales charges
=======================================================
bar chart went here
CLASS A
SHARES 30.64%
CLASS B
SHARES 30.22%
CLASS C
SHARES 30.22%
RUSSELL
3000 10.32%
=======================================================
See important fund and index disclosures inside front cover.
AIM DENT DEMOGRAPHIC TRENDS FUND
2
<PAGE> 5
SEMIANNUAL REPORT / MANAGERS' OVERVIEW
past six months, we have increased our tech weighting from about 39% to nearly
51%, particularly in the communications-equipment and telecommunications
industries, which continue to see phenomenal growth due to the increasing
prevalence of wireless phones.
The financial and health-care sectors struggled on the whole during the
reporting period. Financial stocks tend to get punished whenever inflation fears
surface among investors, as happened over the last six months. While the
health-care sector has seen improved performance of late, it continues to lag
due to a number of factors, including the possible legislation of a Medicare
drug benefit, which may cause industry-pricing pressure. However, we believe
that the fundamentals for these sectors and the demographic forces underpinning
their future growth are still largely positive, so our weightings have not
changed much since our last report.
WHAT TECH-RELATED COMPANIES HAVE YOU FAVORED?
The fund's technology holdings are earnings-momentum stocks with solid company
fundamentals. For example, our largest holding, VERITAS Software, is a market
leader in the storage-management software business. Its products are embedded in
most of the leading server systems being sold to large corporations and
telecommunications-service providers, as increased spending on Internet
infrastructure proliferates.
Fund holding Oracle Systems is a leading maker of database software that
allows multiple users and applications access to the same data simultaneously.
Oracle beat analysts' earnings estimates in the most recent quarter, and
according to the company, 93% of Internet companies use its software.
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
enjoy better Internet access.
WHAT OTHER HOLDINGS HAVE BENEFITED THE FUND?
The challenges among financial and health-care stocks have not been without some
bright spots. Many established banks and brokerage firms have profited from the
strong financial markets and the full IPO schedule. Morgan Stanley Dean Witter,
an investment-banking and retail-brokerage powerhouse that is a top fund
holding, 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.
Our top health-care holding, drug manufacturer Warner-Lambert, 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
pharmaceutical 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 and for the demographic trends we follow remains
largely favorable.
PORTFOLIO COMPOSITION NUMBER OF HOLDINGS 76
As of 4/30/00, based on total net assets
<TABLE>
<CAPTION>
==============================================================================================
TOP 10 EQUITY HOLDINGS TOP 10 INDUSTRIES
----------------------------------------------------------------------------------------------
<S> <C> <C> <C>
1. VERITAS Software Corp. 5.13% 1. Communications Equipment 16.06%
2. Warner-Lambert Co. 4.55 2. Computers
3. Nokia Oyj-ADR (Finland) 3.14 (Software & Services) 14.83
4. Cox Communications, Inc.- 3. Broadcasting
Class A 2.96 (Television, Radio & Cable) 6.12
5. Intel Corp. 2.77 4. Electronics (Semiconductors) 5.79
6. Morgan Stanley 5. Investment Banking/Brokerage 5.46
Dean Witter & Co. 2.51 6. Health Care (Diversified) 5.41
7. Oracle Corp. 2.33 7. Telecommunications
8. Time Warner Inc. 2.29 (Cellular/Wireless) 5.07
9. Citigroup Inc. 2.27 8. Computers (Hardware) 4.31
10. Cisco Systems, Inc. 2.02 9. Financial (Diversified) 3.96
10. Entertainment 3.08
==============================================================================================
</TABLE>
The fund's portfolio is subject to change, and there is no assurance that the
fund will continue to hold any particular security.
See important fund and index disclosures inside front cover.
AIM DENT DEMOGRAPHIC TRENDS FUND
3
<PAGE> 6
SCHEDULE OF INVESTMENTS
April 30, 2000
(Unaudited)
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
COMMON STOCKS & OTHER EQUITY
INTERESTS-95.39%
BANKS (MONEY CENTER)-1.57%
Chase Manhattan Corp. (The) 300,000 $ 21,618,750
---------------------------------------------------------------
BANKS (REGIONAL)-0.73%
Dah Sing Financial Group (Hong
Kong) 2,550,000 9,984,979
---------------------------------------------------------------
BIOTECHNOLOGY-1.61%
Amgen Inc.(a) 161,000 9,016,000
---------------------------------------------------------------
Invitrogen Corp.(a) 119,000 7,422,625
---------------------------------------------------------------
PE Corp.-Celera Genomics Group(a) 70,000 5,775,000
---------------------------------------------------------------
22,213,625
---------------------------------------------------------------
BROADCASTING (TELEVISION, RADIO &
CABLE)-6.12%
AT&T Corp.-Liberty Media
Group-Class A(a) 350,000 17,478,125
---------------------------------------------------------------
Comcast Corp.-Class A(a) 650,000 26,040,625
---------------------------------------------------------------
Cox Communications, Inc.-Class
A(a) 950,000 40,671,875
---------------------------------------------------------------
84,190,625
---------------------------------------------------------------
COMMUNICATIONS EQUIPMENT-16.06%
Comverse Technology, Inc.(a) 260,000 23,188,750
---------------------------------------------------------------
Harmonic, Inc.(a) 180,200 13,301,012
---------------------------------------------------------------
JDS Uniphase Corp.(a) 200,000 20,737,500
---------------------------------------------------------------
Juniper Networks, Inc.(a) 40,000 8,507,500
---------------------------------------------------------------
Motorola, Inc. 175,000 20,835,937
---------------------------------------------------------------
Nokia Oyj-ADR (Finland) 760,000 43,225,000
---------------------------------------------------------------
Nortel Networks Corp. (Canada) 240,000 27,180,000
---------------------------------------------------------------
QUALCOMM Inc.(a) 140,000 15,181,250
---------------------------------------------------------------
Redback Networks, Inc.(a) 100,000 7,937,500
---------------------------------------------------------------
Sycamore Networks, Inc.(a) 175,000 13,737,500
---------------------------------------------------------------
Telefonaktiebolaget LM Ericsson
A.B.-ADR (Sweden) 305,000 26,973,437
---------------------------------------------------------------
220,805,386
---------------------------------------------------------------
COMPUTERS (HARDWARE)-4.31%
Apple Computer, Inc.(a) 150,000 18,609,375
---------------------------------------------------------------
Dell Computer Corp.(a) 400,000 20,050,000
---------------------------------------------------------------
Sun Microsystems, Inc.(a) 225,000 20,685,937
---------------------------------------------------------------
59,345,312
---------------------------------------------------------------
COMPUTERS (NETWORKING)-2.02%
Cisco Systems, Inc.(a) 400,000 27,731,250
---------------------------------------------------------------
COMPUTERS (PERIPHERALS)-1.76%
EMC Corp.(a) 110,000 15,283,125
---------------------------------------------------------------
Network Appliance, Inc.(a) 120,000 8,872,500
---------------------------------------------------------------
24,155,625
---------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
COMPUTERS (SOFTWARE & SERVICES)-14.83%
BEA Systems, Inc.(a) 250,000 $ 12,062,500
---------------------------------------------------------------
Gemstar International Group
Ltd.(a) 150,000 6,937,500
---------------------------------------------------------------
Intuit Inc.(a) 170,000 6,109,375
---------------------------------------------------------------
Novell, Inc.(a) 1,150,000 22,568,750
---------------------------------------------------------------
Oracle Corp.(a) 400,000 31,975,000
---------------------------------------------------------------
Rational Software Corp.(a) 175,000 14,896,875
---------------------------------------------------------------
Siebel Systems, Inc.(a) 125,000 15,359,375
---------------------------------------------------------------
VERITAS Software Corp.(a) 657,900 70,570,055
---------------------------------------------------------------
Vitria Technology, Inc.(a) 282,200 10,423,762
---------------------------------------------------------------
Yahoo! Inc.(a) 100,000 13,025,000
---------------------------------------------------------------
203,928,192
---------------------------------------------------------------
ELECTRONICS (COMPONENT DISTRIBUTORS)-0.93%
C-COR.net Corp.(a) 328,000 12,833,000
---------------------------------------------------------------
ELECTRONICS
(INSTRUMENTATION)-1.78%
PE Corp-PE Biosystems Group 250,000 15,000,000
---------------------------------------------------------------
Waters Corp.(a) 100,000 9,475,000
---------------------------------------------------------------
24,475,000
---------------------------------------------------------------
ELECTRONICS (SEMICONDUCTORS)-5.79%
Broadcom Corp.-Class A(a) 45,000 7,756,875
---------------------------------------------------------------
Intel Corp. 300,000 38,043,750
---------------------------------------------------------------
SDL, Inc.(a) 90,000 17,550,000
---------------------------------------------------------------
Texas Instruments Inc. 100,000 16,287,500
---------------------------------------------------------------
79,638,125
---------------------------------------------------------------
ENTERTAINMENT-3.08%
Time Warner Inc. 350,000 31,478,125
---------------------------------------------------------------
Walt Disney Co. (The) 250,000 10,828,125
---------------------------------------------------------------
42,306,250
---------------------------------------------------------------
EQUIPMENT (SEMICONDUCTOR)-1.12%
Applied Materials, Inc.(a) 70,000 7,126,875
---------------------------------------------------------------
Teradyne, Inc.(a) 75,000 8,250,000
---------------------------------------------------------------
15,376,875
---------------------------------------------------------------
FINANCIAL (DIVERSIFIED)-3.96%
American Express Co. 155,000 23,259,687
---------------------------------------------------------------
Citigroup Inc. 525,000 31,204,688
---------------------------------------------------------------
54,464,375
---------------------------------------------------------------
HEALTH CARE (DIVERSIFIED)-5.41%
Allergan, Inc. 200,000 11,775,000
---------------------------------------------------------------
Warner-Lambert Co. 550,000 62,596,875
---------------------------------------------------------------
74,371,875
---------------------------------------------------------------
</TABLE>
4
<PAGE> 7
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
HEALTH CARE (DRUGS-GENERIC & OTHER)-1.36%
Genetech, Inc.(a) 100,000 $ 11,700,000
---------------------------------------------------------------
Shire Pharmaceuticals Group PLC
(United Kingdom)(a) 175,000 7,043,750
---------------------------------------------------------------
18,743,750
---------------------------------------------------------------
HEALTH CARE (HOSPITAL MANAGEMENT)-0.87%
Health Management Associates,
Inc.-Class A(a) 750,000 11,953,125
---------------------------------------------------------------
HEALTH CARE (MANAGED CARE)-0.61%
UnitedHealth Group Inc. 125,000 8,335,938
---------------------------------------------------------------
HEALTH CARE (MEDICAL PRODUCTS &
SUPPLIES)-1.94%
Guidant Corp.(a) 200,000 11,475,000
---------------------------------------------------------------
Medtronic, Inc. 215,000 11,166,563
---------------------------------------------------------------
Novoste Corp.(a) 100,000 4,100,000
---------------------------------------------------------------
26,741,563
---------------------------------------------------------------
INSURANCE (MULTI-LINE)-1.79%
American International Group, Inc. 225,000 24,679,688
---------------------------------------------------------------
INSURANCE BROKERS-0.54%
Marsh & McLennan Cos. Inc. 75,000 7,392,188
---------------------------------------------------------------
INVESTMENT BANKING/BROKERAGE-5.46%
Goldman Sachs Group, Inc. (The) 80,000 7,460,000
---------------------------------------------------------------
Merrill Lynch & Co., Inc. 200,000 20,387,500
---------------------------------------------------------------
Morgan Stanley Dean Witter & Co. 450,000 34,537,500
---------------------------------------------------------------
Schwab (Charles) Corp. (The) 225,000 10,012,500
---------------------------------------------------------------
Wit Capital Group, Inc.(a) 250,000 2,640,625
---------------------------------------------------------------
75,038,125
---------------------------------------------------------------
LODGING-HOTELS-0.54%
Carnival Corp. 300,000 7,462,500
---------------------------------------------------------------
RAILROADS-1.22%
Kansas City Southern Industries,
Inc. 233,300 16,768,438
---------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
RETAIL (BUILDING SUPPLIES)-0.81%
Home Depot, Inc. (The) 200,000 $ 11,212,500
---------------------------------------------------------------
RETAIL (COMPUTERS &
ELECTRONICS)-1.87%
Best Buy Co., Inc.(a) 250,000 20,187,500
---------------------------------------------------------------
Tweeter Home Entertainment Group,
Inc.(a) 150,000 5,531,250
---------------------------------------------------------------
25,718,750
---------------------------------------------------------------
RETAIL (GENERAL MERCHANDISE)-0.97%
Target Corp. 200,000 13,312,500
---------------------------------------------------------------
RETAIL (SPECIALTY)-0.40%
Amazon.com, Inc.(a) 100,000 5,518,750
---------------------------------------------------------------
SERVICES (COMPUTER SYSTEMS)-0.86%
Brocade Communications Systems,
Inc.(a) 95,000 11,780,000
---------------------------------------------------------------
TELECOMMUNICATIONS (CELLULAR/
WIRELESS)-5.07%
China Telecom Ltd. (Hong Kong)(a) 842,000 6,026,485
---------------------------------------------------------------
Nextel Communications, Inc.-Class
A(a) 250,000 27,359,375
---------------------------------------------------------------
Powerwave Technologies, Inc.(a) 110,000 22,886,875
---------------------------------------------------------------
Vodafone AirTouch PLC (United
Kingdom) 2,933,488 13,456,729
---------------------------------------------------------------
69,729,464
---------------------------------------------------------------
Total Common Stocks & Other
Equity Interests (Cost
$1,102,490,983) 1,311,826,523
---------------------------------------------------------------
MONEY MARKET FUNDS-4.92%
STIC Liquid Assets Portfolio(b) 33,811,353 33,811,353
---------------------------------------------------------------
STIC Prime Portfolio(b) 33,811,353 33,811,353
---------------------------------------------------------------
Total Money Market Funds (Cost
$67,622,706) 67,622,706
---------------------------------------------------------------
TOTAL INVESTMENTS-100.31% (Cost
$1,170,113,689) 1,379,449,229
---------------------------------------------------------------
LIABILITIES LESS OTHER
ASSETS-(0.31%) (4,202,096)
---------------------------------------------------------------
NET ASSETS-100.00% $1,375,247,133
===============================================================
</TABLE>
Investment Abbreviations:
ADR - American Depositary Receipt
Notes to Schedule of Investments:
(a)Non-income producing security.
(b)The money market fund has the same investment advisor as the Fund.
See Notes to Financial Statements.
5
<PAGE> 8
STATEMENT OF ASSETS AND LIABILITIES
April 30, 2000
(Unaudited)
<TABLE>
<S> <C>
ASSETS:
Investments, at market value (cost
$1,170,113,689) $1,379,449,229
-------------------------------------------------------------
Receivables for:
Capital stock sold 14,765,016
-------------------------------------------------------------
Dividends 898,473
-------------------------------------------------------------
Investment for deferred compensation plan 6,138
-------------------------------------------------------------
Other assets 115,675
-------------------------------------------------------------
Total assets 1,395,234,531
-------------------------------------------------------------
LIABILITIES:
Payables for:
Investments purchased 17,094,343
-------------------------------------------------------------
Capital stock reacquired 722,529
-------------------------------------------------------------
Deferred compensation plan 6,138
-------------------------------------------------------------
Accrued advisory fees 905,039
-------------------------------------------------------------
Accrued administrative services fees 11,792
-------------------------------------------------------------
Accrued distribution fees 882,245
-------------------------------------------------------------
Accrued directors' fees 730
-------------------------------------------------------------
Accrued transfer agent fees 144,616
-------------------------------------------------------------
Accrued operating expenses 219,966
-------------------------------------------------------------
Total liabilities 19,987,398
-------------------------------------------------------------
Net assets applicable to shares outstanding $1,375,247,133
-------------------------------------------------------------
NET ASSETS:
Class A $ 551,947,439
-------------------------------------------------------------
Class B $ 591,395,422
-------------------------------------------------------------
Class C $ 231,904,272
-------------------------------------------------------------
CAPITAL STOCK, $0.001 PAR VALUE PER SHARE:
Class A:
Authorized 750,000,000
-------------------------------------------------------------
Outstanding 34,799,367
-------------------------------------------------------------
Class B:
Authorized 750,000,000
-------------------------------------------------------------
Outstanding 37,496,114
-------------------------------------------------------------
Class C:
Authorized 750,000,000
-------------------------------------------------------------
Outstanding 14,707,850
-------------------------------------------------------------
Class A:
Net asset value and redemption price per
share $ 15.86
-------------------------------------------------------------
Offering price per share:
(Net asset value of $15.86 / 94.50%) $ 16.78
-------------------------------------------------------------
Class B:
Net asset value and offering price per
share $ 15.77
-------------------------------------------------------------
Class C:
Net asset value and offering price per
share $ 15.77
-------------------------------------------------------------
</TABLE>
STATEMENT OF OPERATIONS
For the six months ended April 30, 2000
(Unaudited)
<TABLE>
<S> <C>
INVESTMENT INCOME:
Dividends (net of foreign withholding tax
$32,887) $ 3,052,036
------------------------------------------------------------
Interest 25,012
------------------------------------------------------------
Total investment income 3,077,048
------------------------------------------------------------
EXPENSES:
Advisory fees 3,864,937
------------------------------------------------------------
Administrative services fee 52,317
------------------------------------------------------------
Custodian fees 55,294
------------------------------------------------------------
Distribution fees -- Class A 645,833
------------------------------------------------------------
Distribution fees -- Class B 1,991,693
------------------------------------------------------------
Distribution fees -- Class C 709,483
------------------------------------------------------------
Transfer agent fees -- Class A 350,487
------------------------------------------------------------
Transfer agent fees -- Class B 416,439
------------------------------------------------------------
Transfer agent fees -- Class C 148,345
------------------------------------------------------------
Directors' fees 3,345
------------------------------------------------------------
Other 374,047
------------------------------------------------------------
Total expenses 8,612,220
------------------------------------------------------------
Less: Expenses paid indirectly (7,914)
------------------------------------------------------------
Net expenses 8,604,306
------------------------------------------------------------
Net investment income (loss) (5,527,258)
------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENT SECURITIES AND FOREIGN CURRENCIES
Net realized gain (loss) from:
Investment securities (26,944,646)
------------------------------------------------------------
Foreign currencies 329,389
------------------------------------------------------------
(26,615,257)
------------------------------------------------------------
Change in net unrealized appreciation
(depreciation) of:
Investment securities 169,474,463
------------------------------------------------------------
Foreign currencies (76)
------------------------------------------------------------
169,474,387
------------------------------------------------------------
Net gain on investment securities and foreign
currencies 142,859,130
------------------------------------------------------------
Net increase in net assets resulting from
operations $137,331,872
============================================================
</TABLE>
See Notes to Financial Statements.
6
<PAGE> 9
STATEMENT OF CHANGES IN NET ASSETS
For the six months ended April 30, 2000 and the period June 7, 1999 (date
operations commenced) through October 31, 1999
(Unaudited)
<TABLE>
<CAPTION>
APRIL 30, OCTOBER 31,
2000 1999
-------------- ------------
<S> <C> <C>
OPERATIONS:
Net investment income (loss) $ (5,527,258) $ (1,112,143)
--------------------------------------------------------------------------------------------
Net realized gain (loss) from investment securities and
foreign currencies (26,615,257) (3,389,798)
--------------------------------------------------------------------------------------------
Change in net unrealized appreciation of investment
securities and foreign currencies 169,474,387 39,861,077
--------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 137,331,872 35,359,136
--------------------------------------------------------------------------------------------
SHARE TRANSACTIONS-NET:
Class A 330,147,519 148,625,216
--------------------------------------------------------------------------------------------
Class B 352,476,186 161,925,702
--------------------------------------------------------------------------------------------
Class C 162,383,055 46,998,447
--------------------------------------------------------------------------------------------
Net increase in net assets 982,338,632 392,908,501
--------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 392,908,501 --
--------------------------------------------------------------------------------------------
End of period $1,375,247,133 $392,908,501
============================================================================================
NET ASSETS CONSIST OF:
Capital (par value and additional paid-in) $1,201,477,705 $356,470,945
--------------------------------------------------------------------------------------------
Undistributed net investment income (loss) (5,561,027) (33,769)
--------------------------------------------------------------------------------------------
Undistributed net realized gain (loss) from investment
securities and foreign currencies (30,005,009) (3,389,752)
--------------------------------------------------------------------------------------------
Unrealized appreciation of investment securities and
foreign currencies 209,335,464 39,861,077
--------------------------------------------------------------------------------------------
$1,375,247,133 $392,908,501
============================================================================================
</TABLE>
See Notes to Financial Statements.
7
<PAGE> 10
NOTES TO FINANCIAL STATEMENTS
April 30, 2000
(Unaudited)
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES
AIM Dent Demographic Trends Fund (the "Fund") is a series portfolio of AIM
Equity Funds, Inc. (the "Company"). The Company is a Maryland corporation
registered under the Investment Company Act of 1940, as amended (the "1940
Act"), as an open-end series management investment company consisting of eleven
separate portfolios. The Fund currently offers three different classes of
shares: Class A shares, Class B shares and Class C shares. Class A shares are
sold with a front-end sales charge. Class B shares and Class C shares are sold
with a contingent deferred sales charge. Matters affecting each portfolio or
class will be voted on exclusively by the shareholders of such portfolio or
class. The assets, liabilities and operations of each portfolio are accounted
for separately. Information presented in these financial statements pertains
only to the Fund. The Fund's investment objective is long-term growth of
capital.
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenses during
the reporting period. Actual results could differ from those estimates. The
following is a summary of the significant accounting policies followed by the
Fund in the preparation of its financial statements.
A. Security Valuations -- A security listed or traded on an exchange (except
convertible bonds) is valued at its last sales price as of the close of the
customary trading session on the exchange where the security is principally
traded, or lacking any sales on a particular day, the security is valued at
the closing bid price on that day. Each security reported on the NASDAQ
National Market System is valued at the last sales price on the valuation
date or absent a last sales price, at the closing bid price. Debt obligations
(including convertible bonds) are valued on the basis of prices provided by
an independent pricing service. Prices provided by the pricing service may be
determined without exclusive reliance on quoted prices, and may reflect
appropriate factors such as yield, type of issue, coupon rate and maturity
date. Securities for which market prices are not provided by any of the above
methods are valued based upon quotes furnished by independent sources and are
valued at the last bid price in the case of equity securities and in the case
of debt obligations, the mean between the last bid and asked prices.
Securities for which market quotations are not readily available or are
questionable are valued at fair value as determined in good faith by or under
the supervision of the Company's officers in a manner specifically authorized
by the Board of Directors of the Company. Short-term obligations having 60
days or less to maturity are valued at amortized cost which approximates
market value. For purposes of determining net asset value per share, futures
and option contracts generally will be valued 15 minutes after the close of
the customary trading session of the New York Stock Exchange ("NYSE").
Generally, trading in foreign securities is substantially completed each day
at various times prior to the close of the NYSE. The values of such
securities used in computing the net asset value of the Fund's shares are
determined as of such times. Foreign currency exchange rates are also
generally determined prior to the close of the NYSE. Occasionally, events
affecting the values of such securities and such exchange rates may occur
between the times at which they are determined and the close of the customary
trading session of the NYSE which would not be reflected in the computation
of the Fund's net asset value. If events materially affecting the value of
such securities occur during such period, then these securities will be
valued at their fair value as determined in good faith by or under the
supervision of the Board of Directors.
B. Securities Transactions and Investment Income -- Securities transactions are
accounted for on a trade date basis. Realized gains or losses on sales are
computed on the basis of specific identification of the securities sold.
Interest income is recorded as earned from settlement date and is recorded on
the accrual basis. Dividend income is recorded on the ex-dividend date.
C. Distributions -- Distributions from income and net realized capital gains, if
any, are generally paid annually and recorded on ex-dividend date. The Fund
may elect to use a portion of the proceeds from redemptions as distributions
for federal income tax purposes.
D. Federal Income Taxes -- The Fund intends to comply with the requirements of
the Internal Revenue Code necessary to qualify as a regulated investment
company and, as such, will not be subject to federal income taxes on
otherwise taxable income (including net realized capital gains) which is
distributed to shareholders. Therefore, no provision for federal income taxes
is recorded in the financial statements. The Fund has a capital loss
carryforward of $3,389,675 which may be carried forward to offset future
taxable gains, if any, which expires, if not previously utilized, in the year
2007.
E. Foreign Currency Translations -- Portfolio securities and other assets and
liabilities denominated in foreign currencies are translated into U.S. dollar
amounts at date of valuation. Purchases and sales of portfolio securities and
income items denominated in foreign currencies are translated into U.S.
dollar amounts on the respective dates of such transactions. The Fund does
not separately account for that portion of the results of operations
resulting from changes in foreign exchange rates on investments and the
fluctuations arising from changes in market prices of securities held. Such
fluctuations are included with the net realized and unrealized gain or loss
from investments.
8
<PAGE> 11
F. Foreign Currency Contracts -- A foreign currency contract is an obligation to
purchase or sell a specific currency for an agreed-upon price at a future
date. The Fund may enter into a foreign currency contract to attempt to
minimize the risk to the Fund from adverse changes in the relationship
between currencies. The Fund may also enter into a foreign currency contract
for the purchase or sale of a security denominated in a foreign currency in
order to "lock in" the U.S. dollar price of that security. The Fund could be
exposed to risk if counterparties to the contracts are unable to meet the
terms of their contracts or if the value of the foreign currency changes
unfavorably.
G. Expenses -- Distribution expenses and certain transfer agency expenses
directly attributable to a class of shares are charged to those classes'
operations. All other expenses which are attributable to more than one class
are allocated among the classes.
NOTE 2-ADVISORY FEES AND OTHER TRANSACTIONS WITH AFFILIATES
The Company has entered into a master investment advisory agreement with A I M
Advisors, Inc. ("AIM"). H.S. Dent Advisors, Inc. ("H.S. Dent") is the Fund's
subadvisor. Under the terms of the master investment advisory agreement, the
Fund pays an advisory fee to AIM at the annual rate of 0.85% of the first $2
billion of the Fund's average daily net assets, plus 0.80% of the Fund's average
daily net assets exceeding $2 billion. Under the terms of a subadvisory
agreement between AIM and H.S. Dent, AIM pays H.S. Dent at the annual rate of
0.13% of the first $1 billion of the Fund's average daily net assets, plus 0.10%
of the next $1 billion of the Fund's average daily net assets, plus 0.07% of the
Fund's average daily net assets exceeding $2 billion.
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 $52,317 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 $501,381 for such services.
The Company has entered into master distribution agreements with A I M
Distributors, Inc. ("AIM Distributors") to serve as the distributor for the
Class A, Class B and Class C shares of the Fund. The Company has adopted plans
pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund's Class A
shares, Class B shares and Class C shares (collectively the "Plans"). The Fund,
pursuant to the Plans, pays AIM Distributors compensation at the annual rate of
0.35% of the Fund's average daily net assets of Class A shares and 1.00% of the
average daily net assets of Class B and C shares. Of these amounts, the Fund may
pay a service fee of 0.25% of the average daily net assets of the Class A, Class
B or Class C shares to selected dealers and financial institutions who furnish
continuing personal shareholder services to their customers who purchase and own
the appropriate class of shares of the Fund. Any amounts not paid as a service
fee under the Plans would constitute an asset-based sales charge. The Plans also
impose a cap on the total sales charges, including asset-based sales charges
that may be paid by the respective classes. During the six months ended April
30, 2000, the Class A, Class B and Class C shares paid AIM Distributors
$645,833, $1,991,693 and $709,483, respectively, as compensation under the
Plans.
AIM Distributors received commissions of $1,216,563 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 $26,508 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 $1,635
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 $5,217 and $2,697, respectively, under expense offset arrangements. The
effect of the above arrangements resulted in a reduction of the Fund's total
expenses of $7,914 during the six months ended April 30, 2000.
NOTE 4-DIRECTORS' FEES
Directors' fees represent remuneration paid to directors who are not an
"interested person" of AIM. The Company invests directors' fees, if so elected
by a director, in mutual fund shares in accordance with a deferred compensation
plan.
NOTE 5-BANK BORROWINGS
The Fund is a participant in a committed line of credit facility with a
syndicate administered by The Chase Manhattan Bank. The Fund may borrow up to
the lesser of (i) $1,000,000,000 or (ii) the limits set by its prospectus for
borrowings. The Fund and other funds advised by AIM which are parties to the
line of credit may borrow on a first come, first served basis. During the six
months ended April 30, 2000, the Fund did not borrow under the line of credit
agreement. The funds which are party to the line of credit are charged a
commitment fee of 0.09% on the unused balance of the committed line. The
commitment fee is allocated among the funds based on their respective average
net assets for the period.
9
<PAGE> 12
NOTE 6-INVESTMENT SECURITIES
The aggregate amount of investment securities (other than short-term securities)
purchased and sold by the Fund during the six months ended April 30, 2000 was
$1,206,270,656 and $405,122,767, 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 $243,106,456
--------------------------------------------------------------------------
Aggregate unrealized (depreciation) of investment securities (33,770,916)
--------------------------------------------------------------------------
Net unrealized appreciation of investment securities $209,335,540
==========================================================================
Investments have the same cost for tax and financial statement purposes.
</TABLE>
NOTE 7-CAPITAL STOCK
Changes in capital stock outstanding during the six months ended April 30, 2000
and the period June 7, 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 23,055,731 $357,794,217 14,146,708 $155,933,583
-------------------------------------------------------------------------------------------------------------------
Class B 23,971,035 369,952,405 14,828,511 163,946,584
-------------------------------------------------------------------------------------------------------------------
Class C 10,974,277 170,600,316 4,372,731 48,262,483
-------------------------------------------------------------------------------------------------------------------
Reacquired:
Class A (1,751,631) (27,646,698) (651,441) (7,308,367)
-------------------------------------------------------------------------------------------------------------------
Class B (1,123,970) (17,476,219) (179,461) (2,020,882)
-------------------------------------------------------------------------------------------------------------------
Class C (527,255) (8,217,261) (111,903) (1,264,036)
-------------------------------------------------------------------------------------------------------------------
54,598,187 $845,006,760 32,405,145 $357,549,365
===================================================================================================================
</TABLE>
NOTE 8-FINANCIAL HIGHLIGHTS
Contained below is per share operating performance data for a share outstanding
throughout each period, total investment return, ratios and supplemental data.
This information has been derived from information provided in the financial
statements.
<TABLE>
<CAPTION>
CLASS A
-------------------------
JUNE 7, 1999
(DATE
OPERATIONS
SIX MONTHS COMMENCED)
ENDED TO
APRIL 30, OCTOBER 31,
2000 1999
---------- ------------
<S> <C> <C>
Net asset value, beginning of period $ 12.14 $ 10.00
----------------------------------------------------------------------------------------
Income from investment operations:
Net investment income (loss) (0.04) (0.03)
----------------------------------------------------------------------------------------
Net gains on securities (both realized and unrealized) 3.76 2.17
----------------------------------------------------------------------------------------
Total from investment operations 3.72 2.14
----------------------------------------------------------------------------------------
Net asset value, end of period $ 15.86 $ 12.14
========================================================================================
Total return(a) 30.64% 21.40%
========================================================================================
Ratios/supplemental data:
Net assets, end of period (000s omitted) $551,947 $163,872
========================================================================================
Ratio of expenses to average net assets 1.49%(b) 1.60%(c)(d)
----------------------------------------------------------------------------------------
Ratio of net investment income (loss) to average net assets (0.81)%(b) (1.00)%(c)
========================================================================================
Portfolio turnover rate 47% 29%
========================================================================================
</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 $371,083,532.
(c) Annualized.
(d) After fee waivers and/or expense reimbursements. Ratio of expenses to
average net assets excluding fee waivers was 1.65%.
10
<PAGE> 13
NOTE 8-FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
CLASS B
-------------------------
JUNE 7, 1999
(DATE
OPERATIONS
SIX MONTHS COMMENCED)
ENDED TO
APRIL 30, OCTOBER 31,
2000 1999
---------- ------------
<S> <C> <C>
Net asset value, beginning of period $ 12.11 $ 10.00
----------------------------------------------------------------------------------------
Income from investment operations:
Net investment income (loss) (0.08) (0.04)
----------------------------------------------------------------------------------------
Net gains on securities (both realized and unrealized) 3.74 2.15
----------------------------------------------------------------------------------------
Total from investment operations 3.66 2.11
----------------------------------------------------------------------------------------
Net asset value, end of period $ 15.77 $ 12.11
========================================================================================
Total return(a) 30.22% 21.10%
========================================================================================
Ratios/supplemental data:
Net assets, end of period (000s omitted) $591,395 $177,430
========================================================================================
Ratio of expenses to average net assets 2.16%(b) 2.24%(c)(d)
========================================================================================
Ratio of net investment income (loss) to average net assets (1.48)%(b) (1.64)%(c)
========================================================================================
Portfolio turnover rate 47% 29%
========================================================================================
</TABLE>
(a) Does not deduct contingent deferred sales charges and is not annualized for
periods less than one year.
(b) Ratios are annualized and based on average net assets of $400,534,956.
(c) Annualized.
(d) After fee waivers and/or expense reimbursements. Ratio of expenses to
average net assets excluding fee waivers was 2.29%.
<TABLE>
<CAPTION>
CLASS C
-------------------------
JUNE 7, 1999
(DATE
OPERATIONS
SIX MONTHS COMMENCED)
ENDED TO
APRIL 30, OCTOBER 31,
2000 1999
---------- ------------
<S> <C> <C>
Net asset value, beginning of period $ 12.11 $ 10.00
----------------------------------------------------------------------------------------
Income from investment operations:
Net investment income (loss) (0.07) (0.04)
----------------------------------------------------------------------------------------
Net gains on securities (both realized and unrealized) 3.73 2.15
----------------------------------------------------------------------------------------
Total from investment operations 3.66 2.11
----------------------------------------------------------------------------------------
Net asset value, end of period $ 15.77 $ 12.11
========================================================================================
Total return(a) 30.22% 21.10%
========================================================================================
Ratios/supplemental data:
Net assets, end of period (000s omitted) $231,904 $51,605
========================================================================================
Ratio of expenses to average net assets 2.16%(b) 2.24%(c)(d)
========================================================================================
Ratio of net investment income (loss) to average net assets (1.48)%(b) (1.64)%(c)
========================================================================================
Portfolio turnover rate 47% 29%
========================================================================================
</TABLE>
(a) Does not deduct contingent deferred sales charges and is not annualized for
periods less than one year.
(b) Ratios are annualized and based on average net assets of $142,681,431.
(c) Annualized.
(d) After fee waivers and/or expense reimbursements. Ratio of expenses to
average net assets excluding fee waivers was 2.29%.
11
<PAGE> 14
<TABLE>
<CAPTION>
BOARD OF DIRECTORS OFFICERS OFFICE OF THE FUND
<S> <C> <C>
Charles T. Bauer Charles T. Bauer 11 Greenway Plaza
Chairman Chairman Suite 100
A I M Management Group Inc. Houston, TX 77046
Robert H. Graham
Bruce L. Crockett President INVESTMENT ADVISOR
Director
ACE Limited; Carol F. Relihan A I M Advisors, Inc.
Formerly Director, President, and Senior Vice President and Secretary 11 Greenway Plaza
Chief Executive Officer Suite 100
COMSAT Corporation Gary T. Crum Houston, TX 77046
Senior Vice President
Owen Daly II SUB-ADVISOR
Director Edgar M. Larsen
Cortland Trust Inc. Senior Vice President H.S. Dent Advisors, Inc.
6515 Gwin Road
Edward K. Dunn Jr. Dana R. Sutton Oakland, CA 94611
Chairman, Mercantile Mortgage Corp.; Vice President and Treasurer
Formerly Vice Chairman and President, TRANSFER AGENT
Mercantile-Safe Deposit & Trust Co.; and Melville B. Cox
President, Mercantile Bankshares Vice President A I M Fund Services, Inc.
P.O. Box 4739
Jack Fields Mary J. Benson Houston, TX 77210-4739
Chief Executive Officer Assistant Vice President and
Texana Global, Inc.; Assistant Treasurer CUSTODIAN
Formerly Member
of the U.S. House of Representatives Sheri Morris State Street Bank and Trust Company
Assistant Vice President and 225 Franklin Street
Carl Frischling Assistant Treasurer Boston, MA 02110
Partner
Kramer, Levin, Naftalis & Frankel LLP Renee A. Friedli COUNSEL TO THE FUND
Assistant Secretary
Robert H. Graham Ballard Spahr
President and Chief Executive Officer P. Michelle Grace Andrews & Ingersoll, LLP
A I M Management Group Inc. Assistant Secretary 1735 Market Street
Philadelphia, PA 19103
Prema Mathai-Davis Nancy L. Martin
Chief Executive Officer, YWCA of the U.S.A. Assistant Secretary COUNSEL TO THE DIRECTORS
Lewis F. Pennock Ofelia M. Mayo Kramer, Levin, Naftalis & Frankel LLP
Attorney Assistant Secretary 919 Third Avenue
New York, NY 10022
Louis S. Sklar Lisa A. Moss
Executive Vice President Assistant Secretary DISTRIBUTOR
Hines Interests
Limited Partnership Kathleen J. Pflueger A I M Distributors, Inc.
Assistant Secretary 11 Greenway Plaza
Suite 100
Samuel D. Sirko Houston, TX 77046
Assistant Secretary
</TABLE>
12
<PAGE> 15
AIM FUNDS--Registered Trademark--MAKES
INVESTING EASY
o AIM BANK CONNECTION(SM). You can make investments in your AIM account in
amounts from $50 to $100,000 without writing a check. Once you set up this
convenient feature, AIM will draw the funds from your pre-authorized
checking account at your request.
o AIM INTERNET CONNECT(SM). Sign up for this service and you can purchase,
redeem or exchange shares of AIM funds in your current AIM account simply
by accessing our Web site at www.aimfunds.com. For a retirement account,
such as an IRA or 403(b), only exchanges are allowed over the Internet
because of the tax-reporting and record-keeping requirements these accounts
involve.
o AUTOMATIC REINVESTMENT OF DIVIDENDS AND/OR CAPITAL GAINS. You can receive
distributions in cash, or you can reinvest them in your account without
paying a sales charge. Over time, the power of compounding can
significantly increase the value of your account.
o AUTOMATIC INVESTMENT PLAN. You can add to your account by authorizing your
AIM fund to withdraw a specified amount, minimum $50, from your bank
account on a regular schedule.
o EASY ACCESS TO YOUR MONEY. You can redeem shares of your AIM fund any day
the New York Stock Exchange is open. The value of the shares may be more or
less than their original cost depending on market conditions.
o EXCHANGE PRIVILEGE. As your investment goals change, you may exchange part
or all of your shares of one fund for shares of a different AIM fund within
the same share class. You may make up to 10 such exchanges per calendar
year.
o TAX-ADVANTAGED RETIREMENT PLANS. You can enjoy the tax advantages offered
by a variety of investment plans, including Traditional IRAs, Roth IRAs and
education IRAs, among others.
o E-MAIL ACCESS. You can contact us at [email protected] for general
information. For account information, contact us at
[email protected].
o www.aimfunds.com. Our award-winning Web site provides account information,
shareholder education and fund performance information.
-----------------------------------
OUR AUTOMATED
AIM INVESTOR LINE,
800-246-5463,
PROVIDES CURRENT ACCOUNT
INFORMATION AND THE
PRICE, YIELD AND
TOTAL RETURN ON ALL
AIM FUNDS 24 HOURS A
DAY. YOU CAN ALSO
ORDER A YEAR-TO-DATE
STATEMENT OF YOUR
ACCOUNT.
-----------------------------------
<PAGE> 16
THE AIM FAMILY OF FUNDS--Registered Trademark--
<TABLE>
<S> <C> <C>
GROWTH FUNDS INTERNATIONAL GROWTH FUNDS A I M Management Group Inc. has provided
AIM Aggressive Growth Fund AIM Advisor International Value Fund leadership in the mutual fund industry
AIM Blue Chip Fund AIM Asian Growth Fund since 1976 and managed approximately
AIM Capital Development Fund AIM Developing Markets Fund $176 billion in assets for more than
AIM Constellation Fund(1) AIM Euroland Growth Fund(5) 7.4 million shareholders, including
AIM Dent Demographic Trends Fund AIM European Development Fund individual investors, corporate clients
AIM Emerging Growth Fund AIM International Equity Fund and financial institutions, as of
AIM Large Cap Growth Fund AIM Japan Growth Fund March 31, 2000.
AIM Large Cap Opportunities Fund AIM Latin American Growth Fund The AIM Family of Funds--Registered
AIM Mid Cap Equity Fund Trademark--is distributed nationwide,
AIM Mid Cap Growth Fund GLOBAL GROWTH FUNDS and AIM today is the eighth-largest
AIM Mid Cap Opportunities Fund(2) AIM Global Aggressive Growth Fund mutual fund complex in the United States
AIM Select Growth Fund AIM Global Growth Fund in assets under management, according to
AIM Small Cap Growth Fund(3) AIM Global Trends Fund(6) Strategic Insight, an independent mutual
AIM Small Cap Opportunities Fund(4) fund monitor.
AIM Value Fund GLOBAL GROWTH & INCOME FUNDS
AIM Weingarten Fund AIM Global Utilities Fund
GROWTH & INCOME FUNDS GLOBAL INCOME FUNDS
AIM Advisor Flex Fund AIM Global Income Fund
AIM Advisor Real Estate Fund AIM Strategic Income Fund
AIM Balanced Fund
AIM Basic Value Fund THEME FUNDS
AIM Charter Fund AIM Global Consumer Products and Services Fund
AIM Global Financial Services Fund
INCOME FUNDS AIM Global Health Care Fund
AIM Floating Rate Fund AIM Global Infrastructure Fund
AIM High Yield Fund AIM Global Resources Fund
AIM High Yield Fund II AIM Global Telecommunications and Technology Fund
AIM Income Fund
AIM Intermediate Government Fund
AIM Limited Maturity Treasury Fund
TAX-FREE INCOME FUNDS
AIM High Income Municipal Fund
AIM Municipal Bond Fund
AIM Tax-Exempt Bond Fund of Connecticut
AIM Tax-Free Intermediate Fund
MONEY MARKET FUNDS
AIM Money Market Fund
AIM Tax-Exempt Cash Fund
</TABLE>
(1) Effective December 1, 1999, AIM Constellation Fund's investment strategy
broadened to allow investments across all market capitalizations. (2) AIM Mid
Cap Opportunities Fund closed to new investors on March 21, 2000. (3) AIM Small
Cap Growth Fund closed to new investors on November 8, 1999. (4) AIM Small Cap
Opportunities Fund closed to new investors on November 4, 1999. (5) On September
1, 1999, AIM Europe Growth Fund was renamed AIM Euroland Growth Fund. Previously
the fund invested in all size companies in most areas of Europe. The fund now
seeks to invest at least 65% of its assets in large-cap companies within
countries using the euro as their currency (EMU-member countries). (6) Effective
August 27, 1999, AIM Global Trends Fund was restructured to operate as a
traditional mutual fund. Before that date, the fund operated as a fund of funds.
For more complete information about any AIM fund(s), including sales charges and
expenses, ask your financial advisor or securities dealer for a free
prospectus(es). Please read the prospectus(es) carefully before you invest or
send money. If used as sales material after July 20, 2000, this report must be
accompanied by a current Quarterly Review of Performance for AIM Funds.
[AIM LOGO APPEARS HERE]
--Registered Trademark--
INVEST WITH DISCIPLINE
--Registered Trademark--
DDT-SAR-1
[DALBAR LOGO APPEARS HERE]
A I M Distributors, Inc.
