<PAGE> 1
SEMIANNUAL REPORT / APRIL 30 2000
AIM MID CAP GROWTH FUND
[COVER IMAGE]
[AIM LOGO APPEARS HERE]
--Registered Trademark--
<PAGE> 2
[ COVER IMAGE ]
-------------------------------------
VASE WITH RED POPPIES BY VINCENT VAN GOGH
VAN GOGH'S MASTERPIECE SPARKLES WITH BRIGHT,
CAPTIVATING COLORS. WE BELIEVE IT CAPTURES THE
SPIRIT OF THE VIBRANT COMPANIES THAT WE SEEK TO
OWN IN AIM MID CAP GROWTH FUND.
-------------------------------------
AIM Mid Cap Growth Fund is for shareholders who seek long-term growth of capital
by investing in a portfolio consisting primarily of stocks of medium-sized
companies which management believes will experience above-average long-term
earnings growth.
ABOUT FUND PERFORMANCE AND PORTFOLIO DATA THROUGHOUT THIS REPORT:
o AIM Mid Cap Growth Fund's performance figures are historical and they
reflect the reinvestment of distributions and changes in net asset value.
o Had fees and expenses not been waived, total return would have been lower.
o When sales charges are included in performance figures, Class A share
performance reflects the maximum 5.50% sales charge, and Class B and Class C
share performance reflects the applicable contingent deferred sales charge
(CDSC) for the period involved. The CDSC on Class B shares declines from 5%
beginning at the time of purchase to 0% at the beginning of the seventh
year. The CDSC on Class C shares is 1% for the first year after purchase.
The performance of the fund's Class B and Class C shares will differ from
that of its Class A shares due to different sales-charge structure and class
expenses.
o Because the fund has been in existence for less than a year (since 11/1/99),
total return provided is cumulative total return that has not yet been
annualized.
o The fund's cumulative total returns as of the close of the reporting period
are shown in a table in the manager's 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: Class A shares, inception (11/1/99), 66.26%. Class
B shares, inception (11/1/99), 70.20%. Class C shares, inception (11/1/99),
74.20%.
o The fund participates in the initial public offering (IPO) market, and a
significant portion of its return is 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 small and mid-sized companies may involve greater risk and
potential reward than investing in more established companies.
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 Lipper Mid-Cap Growth Fund Index represents an average of the
performance of the 30 largest mid-cap growth funds tracked by Lipper, Inc.,
an independent mutual fund performance monitor.
o The National Association of Securities Dealers Automated Quotation System
Composite Index (the Nasdaq) is a market-value-weighted index comprising all
domestic and non-U.S. based common stocks listed on the Nasdaq system. It
includes more than 5,000 companies, and it is often considered
representative of the small and medium-sized company stock universe. While
it includes many small and mid-sized company stocks, large-capitalization
technology companies tend to dominate the index.
o The unmanaged Russell 2000 Index represents the performance of the stocks of
small-capitalization companies.
o The unmanaged Standard & Poor's MidCap 400 Index (the S&P 400) comprises the
common stocks of approximately 400 mid-capitalization companies.
o An investment cannot be made in an index. Unless otherwise indicated, index
results include reinvested dividends, and they do not reflect sales charges.
AN INVESTMENT IN THE FUND IS NOT A DEPOSIT OF A BANK AND IS NOT INSURED OR
GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY OTHER
GOVERNMENT AGENCY. THERE IS A RISK THAT YOU COULD LOSE SOME OR ALL OF
YOUR MONEY.
This report may be distributed only to current shareholders or to persons
who have received a current prospectus of the fund.
AIM MID CAP GROWTH FUND
<PAGE> 3
SEMIANNUAL REPORT / CHAIRMAN'S LETTER
Dear Fellow Shareholder:
When we started AIM in 1976, we had only a table, two chairs
[PHOTO OF and a telephone. At the time, Bob Graham, Gary Crum and I had
Charles T. the idea of creating a mutual fund company that put people
Bauer, first. Our slogan, "people are the product," means that
Chairman of people--our employees and our investors-- are our company.
the Board of Almost a quarter-century later, we've grown to more than
THE FUND seven million investors, $176 billion in assets under
APPEARS HERE] management and 53 retail funds. Over that time, the industry
as a whole has grown from $51 billion in assets to more than
[PHOTO OF $7 trillion today. I never dreamed we would see such
Robert H. phenomenal growth. You are the main reason for our success,
Graham and I want you to know how much I appreciate your loyalty and
APPEARS HERE] 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 MID CAP GROWTH FUND
<PAGE> 4
SEMIANNUAL REPORT / MANAGERS' OVERVIEW
MID-CAP STOCKS SURGE, NEW FUND
OFF TO IMPRESSIVE START
MID-CAP STOCKS RECORDED SOLID GAINS FOR THE REPORTING PERIOD, DESPITE A LATE
DOWNTURN IN THE MARKET. HOW DID AIM MID CAP GROWTH FUND PERFORM?
The fund, which began sales on November 1, 1999, debuted in the midst of a
strong rally in mid-cap stocks. And while several key market indexes fell
sharply in April, the fund still posted outstanding returns for the six months
ended April 30, 2000. Excluding sales charges, cumulative total returns for
Class A, Class B and Class C shares were 53.60%, 52.90% and 53.0%, respectively.
The fund outperformed the S&P 400 and the Lipper Mid-Cap Growth Fund Index,
which recorded gains of 21.26% and 34.92%, respectively, over the same period.
At the end of the reporting period, total net assets in the fund stood at
$162 million.
WHAT IS THE FUND'S MANAGEMENT STRATEGY?
We seek to invest the majority of the fund's assets in companies within the
market-cap range of the S&P 400 Index. By focusing on medium-sized companies,
the fund endeavors to provide much of the growth opportunity of investing in
small-cap companies but with less volatility.
WHAT WERE THE KEY TRENDS IN THE STOCK MARKET?
For most of the reporting period, technology stocks were the undisputed market
leaders. Tech stocks helped push the Dow, the Nasdaq and other market indexes to
new heights. While the Dow peaked in January, the tech-dominated Nasdaq
continued to set records well into March. Toward the end of the month, however,
investors became concerned that tech stocks might be overvalued, sparking a
sharp sell-off in this sector. In April, a federal court ruling against software
giant Microsoft (not a fund holding) helped perpetuate the sell-off. The stocks
of Internet companies with no earnings were particularly hard hit.
Investors were also concerned that the Federal Reserve Board (the Fed) might
continue to raise interest rates to slow torrid economic growth and contain
inflation. During the reporting period, the Fed, which launched a monetary
tightening policy in June 1999, raised the key federal funds rate--the rate
banks charge each other for overnight loans--from 5.25% to 6.0%. Interest-rate
concerns prompted a sell-off that affected nearly every stock-market sector in
April, causing markets to be extremely volatile.
Despite April's well-publicized market downturn, most major indexes posted
gains for the reporting period, with mid- and small-cap stocks leading the
charge. In addition to the impressive performance of the S&P 400, the Russell
2000 was up 18.72%, compared to 0.79% for the Dow. Growth stocks outperformed
value stocks by a wide margin.
WAS THE FUND ABLE TO TAKE ADVANTAGE OF THESE MARKET TRENDS?
Yes, because mid-cap stocks, the market leaders for the reporting period, made
up 71% of the fund's stock portfolio. Investors gravitated to mid-cap stocks
because of their favorable valuations compared to large-cap stocks and the
attractive earnings prospects of mid-sized companies. And while technology
stocks were volatile, the fund's heavy weighting in this sector enhanced
performance. Despite weakness in March and April, tech stocks still
significantly outperformed other issues for the six-month reporting period. We
also took advantage of April's market sell-off to buy the stocks of quality
companies at reduced prices.
The fund participates in the initial public offering (IPO) market, and a
significant portion of its return is 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.
TOTAL RETURNS
11/1/99-4/30/00, excluding sales charges
================================================================================
Bar Chart
FUND CLASS A SHARES 53.60%
FUND CLASS B SHARES 52.90%
FUND CLASS C SHARES 53.0%
LIPPER MID-CAP GROWTH INDEX 34.92%
S&P 400 21.26%
================================================================================
TOTAL RETURNS
11/1/99-4/30/00, including sales charges
================================================================================
CLASS A SHARES
Inception (11/1/99) 45.18%*
* 53.60%, excluding sales charges
CLASS B SHARES
Inception (11/1/99) 47.90%*
* 52.90%, excluding CDSC
CLASS C SHARES
Inception (11/1/99) 52.0%*
* 53.0%, excluding CDSC
Past performance cannot guarantee comparable future results. MARKET VOLATILITY
CAN SIGNIFICANTLY IMPACT SHORT-TERM PERFORMANCE. RESULTS OF AN INVESTMENT MADE
TODAY MAY DIFFER SUBSTANTIALLY FROM THE HISTORICAL PERFORMANCE SHOWN.
================================================================================
See important fund and index disclosures inside front cover.
AIM MID CAP GROWTH FUND
2
<PAGE> 5
SEMIANNUAL REPORT / MANAGERS' OVERVIEW
HOW WAS THE FUND POSITIONED?
At the end of the reporting period, the fund had 131 equity holdings. Tech
stocks made up 50% of the portfolio, with the remainder diversified over several
industry sectors. The portfolio's heavy weighting in the technology sector was a
result of our stock-selection process, which is based on earnings growth
prospects and not macroeconomic predictions. We found many companies with
excellent earnings prospects in the technology sector. Moreover, we generally
avoided buying the stocks of companies that have no earnings.
Industries within the technology sector that were prominently represented in
the portfolio included computer software and services, communications equipment
and semiconductors. These industries are benefiting from the steady sales of
personal computers, the proliferation of new communications devices and the
expansion of the Internet.
CAN YOU NAME A FEW OF THE TECH STOCKS IN THE PORTFOLIO?
ADC Telecommunications, the fund's largest equity holding, makes systems that
increase the speed at which voice, data and video signals are transmitted.
SanDisk, our second-largest holding, is a leading maker of integrated circuits
that retain data when power shuts down. Digex, the third-largest fund holding,
hosts Web sites and Web-based applications for businesses and other
organizations.
Other tech stocks in the portfolio included Methode Electronics, which makes
electronic and optical components, including connectors and automotive
electronic controls; Powerwave Technologies, which makes radio frequency power
amplifiers that boost signal strength and reduce transmission interference in
the base stations of cellular and personal communications service networks; and
Scientific-Atlanta, a leading maker of set-top boxes for receiving
cable-television programming.
We believe the outlook is favorable for tech companies, which stand to
benefit from global economic expansion, mergers and acquisitions and the growth
of wireless communications and the Internet.
WHAT OTHER STOCKS PERFORMED WELL FOR THE FUND?
Other good performers included Emmis Communications, which owns several radio
stations in major cities and publishes a number of magazines, and Health
Management Associates, which operates 30 hospitals in rural areas.
WHAT IS YOUR OUTLOOK FOR THE NEAR TERM?
The near-term outlook for stocks could depend to a large extent on the Fed's
ability to bring the economy to a "soft landing." On May 16, after the reporting
period ended, the central bank raised the federal funds rate to 6.5%. It appears
that the Fed's tightening cycle may be winding down, although the central bank
is may to approve additional rate increases in the immediate months ahead. If
the Fed succeeds in slowing economic growth to a more sustainable rate and in
keeping inflation under control, it could prolong the current record economic
expansion. Such an environment could help sustain corporate earnings growth and
prove favorable for stocks, particularly mid-cap issues because of their
attractive valuations.
However, uncertainty over the Fed's actions and other factors could
perpetuate the volatility that has characterized markets in recent months. In
such an environment, investors would be well advised to take a long-term
perspective on their investment.
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. ADC Telecommunications, Inc. 1.69% 1. Computers (Software & Services) 16.74%
2. SanDisk Corp. 1.61 2. Communications Equipment 10.77
3. Digex, Inc. 1.53 3. Oil & Gas (Drilling & Equipment) 7.42
4. Emmis Communications Corp. 1.41 4. Electrical Equipment 5.97
5. Methode Electronics, Inc.-Class A 1.39 5. Electronics (Semiconductors) 5.59
6. Scientific-Atlanta, Inc. 1.36 6. Broadcasting (Television, Radio & Cable) 4.91
7. Powerwave Technologies, Inc. 1.18 7. Electronics (Instrumentation) 4.01
8. SDL, Inc. 1.15 8. Retail (Specialty) 3.03
9. Extreme Networks, Inc. 1.07 9. Computers (Peripherals) 2.27
10. Health Management Associates, Inc.-Class A 1.07 10. Telecommunications (Cellular/Wireless) 2.23
The fund's portfolio composition 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 MID CAP GROWTH FUND
5
<PAGE> 6
SCHEDULE OF INVESTMENTS
April 30, 2000
(Unaudited)
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
COMMON STOCKS & OTHER EQUITY
INTERESTS-86.98%
AUTO PARTS & EQUIPMENT-0.46%
Danaher Corp. 13,100 $ 748,337
--------------------------------------------------------------
BEVERAGES (ALCOHOLIC)-0.60%
Coors (Adolph)-Class B 19,000 969,000
--------------------------------------------------------------
BIOTECHNOLOGY-0.37%
Biogen, Inc.(a) 10,100 594,006
--------------------------------------------------------------
BROADCASTING (TELEVISION, RADIO &
CABLE)-4.91%
Emmis Broadcasting Corp.-Class A(a) 53,500 2,273,750
--------------------------------------------------------------
Hispanic Broadcasting Corp.(a) 12,400 1,253,175
--------------------------------------------------------------
Pegasus Communications Corp.(a) 6,400 698,400
--------------------------------------------------------------
Univision Communications,
Inc.-Class A(a) 15,000 1,638,750
--------------------------------------------------------------
USA Networks, Inc.(a) 48,700 1,120,100
--------------------------------------------------------------
Westwood One, Inc.(a) 27,200 962,200
--------------------------------------------------------------
7,946,375
--------------------------------------------------------------
COMMUNICATIONS EQUIPMENT-10.77%
ADC Telecommunications, Inc.(a) 45,000 2,733,750
--------------------------------------------------------------
Comverse Technology, Inc.(a) 15,000 1,337,812
--------------------------------------------------------------
Copper Mountain Networks, Inc.(a) 15,900 1,325,662
--------------------------------------------------------------
Digital Lightwave, Inc.(a) 20,900 1,431,650
--------------------------------------------------------------
Ditech Communications Corp.(a) 11,300 968,975
--------------------------------------------------------------
Finisar Corp.(a) 10,800 402,975
--------------------------------------------------------------
Gilat Satellite Networks Ltd.
(Israel)(a) 6,500 558,187
--------------------------------------------------------------
Harmonic, Inc.(a) 19,000 1,402,437
--------------------------------------------------------------
Intertrust Technologies Corp.(a) 43,900 1,009,700
--------------------------------------------------------------
MCK Communications, Inc.(a) 25,900 809,375
--------------------------------------------------------------
Osicom Technologies, Inc.(a) 18,900 982,800
--------------------------------------------------------------
Polycom, Inc.(a) 9,400 743,775
--------------------------------------------------------------
Scientific-Atlanta, Inc. 33,900 2,205,619
--------------------------------------------------------------
UTStarcom, Inc.(a) 31,700 1,505,750
--------------------------------------------------------------
17,418,467
--------------------------------------------------------------
COMPUTERS (NETWORKING)-1.07%
Extreme Networks, Inc.(a) 30,000 1,728,750
--------------------------------------------------------------
COMPUTERS (PERIPHERALS)-2.27%
QLogic Corp.(a) 10,600 1,063,312
--------------------------------------------------------------
SanDisk Corp.(a) 28,482 2,609,663
--------------------------------------------------------------
3,672,975
--------------------------------------------------------------
COMPUTERS (SOFTWARE &
SERVICES)-16.29%
Adobe Systems, Inc. 7,200 870,750
--------------------------------------------------------------
Advanced Fibre Communications,
Inc.(a) 22,800 1,041,675
--------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
COMPUTERS (SOFTWARE & SERVICES)-(CONTINUED)
Allaire Corp.(a) 22,900 $ 1,260,931
--------------------------------------------------------------
Aspect Development, Inc.(a) 24,300 1,679,737
--------------------------------------------------------------
BEA Systems, Inc.(a) 24,600 1,186,950
--------------------------------------------------------------
Check Point Software Networks Ltd.
(Israel)(a) 5,600 968,800
--------------------------------------------------------------
Digex, Inc.(a) 31,700 2,472,600
--------------------------------------------------------------
Electronics for Imaging, Inc.(a) 18,600 971,850
--------------------------------------------------------------
Inktomi Corp.(a) 7,000 1,077,562
--------------------------------------------------------------
IONA Technologies PLC-ADR
(Ireland)(a) 16,800 954,450
--------------------------------------------------------------
J.D. Edwards & Co.(a) 43,200 788,400
--------------------------------------------------------------
Lycos, Inc.(a) 16,700 776,550
--------------------------------------------------------------
Macromedia, Inc.(a) 16,800 1,461,600
--------------------------------------------------------------
Macrovision Corp.(a) 20,100 982,387
--------------------------------------------------------------
Mercury Interactive Corp.(a) 18,800 1,692,000
--------------------------------------------------------------
Micromuse, Inc.(a) 6,600 647,625
--------------------------------------------------------------
Orbotech, Ltd. (Israel)(a) 12,550 1,069,887
--------------------------------------------------------------
Portal Software, Inc.(a) 20,800 954,200
--------------------------------------------------------------
Quest Software, Inc.(a) 17,100 644,456
--------------------------------------------------------------
Rational Software Corp.(a) 15,900 1,353,487
--------------------------------------------------------------
Titan Capital Trust, 5.75% Conv.
Pfd., (Acquired
02/03/00-04/04/00; Cost
$658,316)(b) 12,500 637,500
--------------------------------------------------------------
Verity, Inc.(a) 29,300 950,419
--------------------------------------------------------------
Websense, Inc.(a) 36,800 1,196,000
--------------------------------------------------------------
WebTrends Corp.(a) 22,000 721,875
--------------------------------------------------------------
26,361,691
--------------------------------------------------------------
ELECTRIC COMPANIES-0.68%
Montana Power Co. (The) 24,900 1,097,156
--------------------------------------------------------------
ELECTRICAL EQUIPMENT-5.97%
American Power Conversion Corp.(a) 35,700 1,260,656
--------------------------------------------------------------
CommScope, Inc.(a) 33,700 1,600,750
--------------------------------------------------------------
Cree Research, Inc.(a) 10,000 1,455,000
--------------------------------------------------------------
Electro Scientific Industries,
Inc.(a) 12,800 807,200
--------------------------------------------------------------
Kemet Corp.(a) 20,000 1,490,000
--------------------------------------------------------------
Sanmina Corp.(a) 10,400 624,650
--------------------------------------------------------------
Sawtek, Inc.(a) 21,100 1,008,844
--------------------------------------------------------------
Veeco Instruments Inc.(a) 22,800 1,416,450
--------------------------------------------------------------
9,663,550
--------------------------------------------------------------
ELECTRONICS (DEFENSE)-0.58%
Aeroflex, Inc.(a) 25,000 931,250
--------------------------------------------------------------
ELECTRONICS (INSTRUMENTATION)-4.01%
Coherent, Inc.(a) 15,000 867,188
--------------------------------------------------------------
Methode Electronics, Inc.-Class A 53,800 2,241,947
--------------------------------------------------------------
</TABLE>
4
<PAGE> 7
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
ELECTRONICS (INSTRUMENTATION)-(CONTINUED)
Newport Corp. 11,500 $ 1,395,094
--------------------------------------------------------------
PerkinElmer, Inc. 12,800 700,800
--------------------------------------------------------------
Varian Semiconductor Equipment
Associates, Inc.(a) 19,100 1,284,475
--------------------------------------------------------------
6,489,504
--------------------------------------------------------------
ELECTRONICS (SEMICONDUCTORS)-5.59%
Amkor Technology, Inc.(a) 21,300 1,303,294
--------------------------------------------------------------
Burr-Brown Corp.(a) 13,900 946,938
--------------------------------------------------------------
Micrel, Inc.(a) 6,000 519,000
--------------------------------------------------------------
Microchip Technology, Inc.(a) 11,850 735,441
--------------------------------------------------------------
RF Micro Devices, Inc.(a) 10,400 1,082,250
--------------------------------------------------------------
SDL, Inc.(a) 9,500 1,852,500
--------------------------------------------------------------
Semtech Corp.(a) 12,300 838,706
--------------------------------------------------------------
Silicon Laboratories Inc.(a) 10,600 922,200
--------------------------------------------------------------
St. Assembly Test Services Ltd.-ADR
(Singapore)(a) 20,100 837,919
--------------------------------------------------------------
9,038,248
--------------------------------------------------------------
EQUIPMENT (SEMICONDUCTOR)-1.64%
Credence Systems Corp.(a) 6,500 927,875
--------------------------------------------------------------
Lam Research Corp.(a) 16,600 761,525
--------------------------------------------------------------
Novellus Systems, Inc.(a) 14,500 966,969
--------------------------------------------------------------
2,656,369
--------------------------------------------------------------
FINANCIAL (DIVERSIFIED)-0.51%
SEI Investments Co. 6,900 823,688
--------------------------------------------------------------
HEALTH CARE (DRUGS-GENERIC &
OTHER)-2.19%
Forest Laboratories, Inc.(a) 8,400 706,125
--------------------------------------------------------------
Jones Pharma, Inc. 53,300 1,535,706
--------------------------------------------------------------
Medicis Pharmaceutical Corp.-Class
A(a) 29,900 1,308,125
--------------------------------------------------------------
3,549,956
--------------------------------------------------------------
HEALTH CARE (HOSPITAL
MANAGEMENT)-1.07%
Health Management Associates,
Inc.-Class A(a) 108,300 1,726,031
--------------------------------------------------------------
INVESTMENT MANAGEMENT-0.53%
Federated Investors, Inc.-Class B 30,100 850,325
--------------------------------------------------------------
INVESTMENTS-0.45%
London Pacific Group Ltd.-ADR
(United Kingdom) 58,000 732,250
--------------------------------------------------------------
LEISURE TIME (PRODUCTS)-0.61%
Harley-Davidson, Inc. 24,600 979,388
--------------------------------------------------------------
MANUFACTURING (DIVERSIFIED)-0.52%
Kopin Corp.(a) 10,900 844,069
--------------------------------------------------------------
MANUFACTURING (SPECIALIZED)-1.56%
Flextronics International Ltd.
(Singapore)(a) 14,800 1,039,700
--------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
MANUFACTURING (SPECIALIZED)-(CONTINUED)
Millipore Corp. 20,700 $ 1,483,931
--------------------------------------------------------------
2,523,631
--------------------------------------------------------------
NATURAL GAS-0.67%
Dynegy Inc.-Class A 16,558 1,083,514
--------------------------------------------------------------
OIL & GAS (DRILLING &
EQUIPMENT)-7.42%
BJ Services Co.(a) 15,900 1,116,975
--------------------------------------------------------------
Cooper Cameron Corp.(a) 19,100 1,432,500
--------------------------------------------------------------
ENSCO International Inc. 40,200 1,334,138
--------------------------------------------------------------
Grant Prideco, Inc.(a) 17,400 334,950
--------------------------------------------------------------
Nabors Industries, Inc.(a) 35,200 1,388,200
--------------------------------------------------------------
National-Oilwell, Inc.(a) 40,000 957,500
--------------------------------------------------------------
R&B Falcon Corp.(a) 64,800 1,344,600
--------------------------------------------------------------
Rowan Cos., Inc.(a) 43,000 1,201,313
--------------------------------------------------------------
Smith International, Inc.(a) 14,900 1,132,400
--------------------------------------------------------------
Transocean Sedco Forex Inc. 22,300 1,048,100
--------------------------------------------------------------
Weatherford International, Inc.(a) 17,400 706,875
--------------------------------------------------------------
11,997,551
--------------------------------------------------------------
OIL & GAS (EXPLORATION &
PRODUCTION)-2.02%
Burlington Resources, Inc. 25,000 982,813
--------------------------------------------------------------
Kerr-McGee Corp. 7,000 362,250
--------------------------------------------------------------
Kerr-McGee Corp., $1.83 Pfd. DECS 5,500 246,469
--------------------------------------------------------------
Union Pacific Resources Group Inc. 87,000 1,669,313
--------------------------------------------------------------
3,260,845
--------------------------------------------------------------
RAILROADS-0.41%
Kansas City Southern Industries,
Inc. 9,200 661,250
--------------------------------------------------------------
RESTAURANTS-0.52%
Outback Steakhouse, Inc.(a) 25,700 841,675
--------------------------------------------------------------
RETAIL (COMPUTERS &
ELECTRONICS)-0.68%
Tandy Corp. 19,300 1,100,100
--------------------------------------------------------------
RETAIL (DISCOUNTERS)-1.74%
Dollar Tree Stores, Inc.(a) 13,400 775,525
--------------------------------------------------------------
Family Dollar Stores, Inc. 38,100 726,281
--------------------------------------------------------------
Ross Stores, Inc. 63,400 1,315,550
--------------------------------------------------------------
2,817,356
--------------------------------------------------------------
RETAIL (FOOD CHAINS)-0.40%
BJ's Wholesale Club, Inc.(a) 18,400 652,050
--------------------------------------------------------------
RETAIL (SPECIALTY)-3.03%
Bed Bath & Beyond, Inc.(a) 34,600 1,269,388
--------------------------------------------------------------
Linens 'n Things, Inc.(a) 42,000 1,296,750
--------------------------------------------------------------
Pier 1 Imports, Inc. 47,500 540,313
--------------------------------------------------------------
Tiffany & Co. 10,100 734,144
--------------------------------------------------------------
</TABLE>
5
<PAGE> 8
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
RETAIL (SPECIALTY)-(CONTINUED)
Zale Corp.(a) 25,800 $ 1,064,250
--------------------------------------------------------------
4,904,845
--------------------------------------------------------------
RETAIL (SPECIALTY-APPAREL)-1.11%
Intimate Brands, Inc. 18,200 700,700
--------------------------------------------------------------
Talbots, Inc. (The) 21,700 1,097,206
--------------------------------------------------------------
1,797,906
--------------------------------------------------------------
SERVICES
(ADVERTISING/MARKETING)-1.46%
Lamar Advertising Co.(a) 27,500 1,211,719
--------------------------------------------------------------
Young & Rubicam Inc. 20,700 1,152,731
--------------------------------------------------------------
2,364,450
--------------------------------------------------------------
SERVICES (DATA PROCESSING)-0.98%
CSG Systems International, Inc.(a) 14,800 682,650
--------------------------------------------------------------
Fiserv, Inc.(a) 19,500 895,781
--------------------------------------------------------------
1,578,431
--------------------------------------------------------------
TELECOMMUNICATIONS (CELLULAR/
WIRELESS)-2.23%
Crown Castle International Corp.(a) 20,700 794,363
--------------------------------------------------------------
Powerwave Technologies, Inc.(a) 9,200 1,914,175
--------------------------------------------------------------
Western Wireless Corp.-Class A(a) 18,200 904,313
--------------------------------------------------------------
3,612,851
--------------------------------------------------------------
TELECOMMUNICATIONS (LONG
DISTANCE)-0.97%
Primus Telecommunications Group,
Inc.(a) 27,000 885,938
--------------------------------------------------------------
Williams Communications Group,
Inc.(a) 18,700 691,900
--------------------------------------------------------------
1,577,838
--------------------------------------------------------------
TEXTILES (APPAREL)-0.69%
Jones Apparel Group, Inc.(a) 37,500 1,113,281
--------------------------------------------------------------
Total Common Stocks & Other
Equity Interests (Cost
$128,970,300) 140,708,959
--------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
<S> <C> <C>
CONVERTIBLE BONDS & NOTES-1.15%
COMPUTERS (NETWORKING)-0.08%
Exodus Communications, Inc. Conv.
Notes, 4.75%, 07/15/08 (Acquired
12/02/99; Cost $90,000)(b) $ 90,000 $ 124,762
--------------------------------------------------------------
COMPUTERS (SOFTWARE &
SERVICES)-0.44%
Critical Path Inc., Conv. Notes,
5.75%, 04/01/05 (Acquired
03/27/00-04/25/00; Cost
$729,157)(b) 850,000 713,469
--------------------------------------------------------------
TELECOMMUNICATIONS (LONG
DISTANCE)-0.63%
Primus Telecommunications Group,
Inc., Conv. Notes, 5.75%,
02/15/07 (Acquired 02/17/00-
04/13/00; Cost $1,166,206)(b) 1,210,000 1,025,475
--------------------------------------------------------------
Total Convertible Bonds & Notes
(Cost $1,985,484) 1,863,706
--------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
SHARES
<S> <C> <C>
MONEY MARKET FUNDS-10.46%
STIC Liquid Assets Portfolio(c) 8,457,258 8,457,258
--------------------------------------------------------------
STIC Prime Portfolio(c) 8,457,258 8,457,258
--------------------------------------------------------------
Total Money Market Funds (Cost
$16,914,516) 16,914,516
--------------------------------------------------------------
TOTAL INVESTMENTS-98.59% (Cost $147,870,300) 159,487,181
--------------------------------------------------------------
OTHER ASSETS LESS LIABILITIES-1.41% 2,286,773
--------------------------------------------------------------
NET ASSETS-100.00% $161,773,954
==============================================================
</TABLE>
Investment Abbreviations:
ADR - American Depositary Receipt
Conv. - Convertible
DECS - Dividend Enhanced Convertible Stock
Pfd. - Preferred
Notes to Schedule of Investments:
(a) Non-income producing security.
(b) Restricted security. May be resold to qualified institutional buyers in
accordance with the provisions of Rule 144A under the Securities Act of
1933, as amended. The valuation of these securities has been determined in
accordance with procedures established by the Board of Directors. The
aggregate market value of these securities at 04/30/00 was $2,501,206 which
represented 1.55% of the Fund's net assets.
(c) The money market fund has the same investment advisor as the Fund.
See Notes to Financial Statements.
6
<PAGE> 9
STATEMENT OF ASSETS AND LIABILITIES
April 30, 2000
(Unaudited)
<TABLE>
<S> <C>
ASSETS:
Investments, at market value (cost
$147,870,300) $159,487,181
------------------------------------------------------------
Receivables for:
Investments sold 190,539
------------------------------------------------------------
Capital stock sold 3,071,871
------------------------------------------------------------
Dividends and Interest 104,306
------------------------------------------------------------
Investment for deferred compensation plan 2,494
------------------------------------------------------------
Other assets 58,661
------------------------------------------------------------
Total assets 162,915,052
------------------------------------------------------------
LIABILITIES:
Payables for:
Investments purchased 675,127
------------------------------------------------------------
Capital stock reacquired 81,441
------------------------------------------------------------
Deferred compensation plan 2,494
------------------------------------------------------------
Accrued advisory fees 237,474
------------------------------------------------------------
Accrued administrative services fees 4,098
------------------------------------------------------------
Accrued distribution fees 85,953
------------------------------------------------------------
Accrued directors' fees 498
------------------------------------------------------------
Accrued transfer agent fees 27,273
------------------------------------------------------------
Accrued operating expenses 26,740
------------------------------------------------------------
Total liabilities 1,141,098
------------------------------------------------------------
Net assets applicable to shares outstanding $161,773,954
------------------------------------------------------------
NET ASSETS:
Class A $ 80,908,146
============================================================
Class B $ 61,653,432
============================================================
Class C $ 19,212,376
============================================================
CAPITAL STOCK, $0.001 PAR VALUE PER SHARE:
Class A:
Authorized 750,000,000
------------------------------------------------------------
Outstanding 5,266,033
------------------------------------------------------------
Class B:
Authorized 750,000,000
------------------------------------------------------------
Outstanding 4,031,393
------------------------------------------------------------
Class C:
Authorized 750,000,000
------------------------------------------------------------
Outstanding 1,255,699
------------------------------------------------------------
Class A:
Net asset value and redemption price per
share $ 15.36
------------------------------------------------------------
Offering price per share:
(Net asset value of $15.36 divided by
94.50%) $ 16.25
------------------------------------------------------------
Class B:
Net asset value and offering price per share $ 15.29
------------------------------------------------------------
Class C:
Net asset value and offering price per share $ 15.30
------------------------------------------------------------
</TABLE>
STATEMENT OF OPERATIONS
For the period November 1, 1999 (date operations commenced) through April 30,
2000
(Unaudited)
<TABLE>
<S> <C>
INVESTMENT INCOME:
Dividends $ 306,706
------------------------------------------------------------
Interest 37,198
------------------------------------------------------------
Total investment income 343,904
------------------------------------------------------------
EXPENSES:
Advisory fees 294,123
------------------------------------------------------------
Administrative services fee 24,863
------------------------------------------------------------
Custodian fees 24,106
------------------------------------------------------------
Distribution fees -- Class A 67,590
------------------------------------------------------------
Distribution fees -- Class B 132,785
------------------------------------------------------------
Distribution fees -- Class C 45,397
------------------------------------------------------------
Transfer agent fees -- Class A 42,980
------------------------------------------------------------
Transfer agent fees -- Class B 34,848
------------------------------------------------------------
Transfer agent fees -- Class C 11,913
------------------------------------------------------------
Other 84,481
------------------------------------------------------------
Total expenses 763,086
------------------------------------------------------------
Less: Fees waived (33,800)
------------------------------------------------------------
Expenses paid indirectly (2,096)
------------------------------------------------------------
Net expenses 727,190
------------------------------------------------------------
Net investment income (loss) (383,286)
------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENT SECURITIES
Net realized gain (loss) from investment
securities (5,680,099)
------------------------------------------------------------
Change in net unrealized appreciation of
investment securities 11,616,881
------------------------------------------------------------
Net gain on investment securities 5,936,782
------------------------------------------------------------
Net increase in net assets resulting from
operations $ 5,553,496
============================================================
</TABLE>
See Notes to Financial Statements.
7
<PAGE> 10
STATEMENT OF CHANGES IN NET ASSETS
For the period November 1, 1999 (date operations commenced) through April 30,
2000
(Unaudited)
<TABLE>
<CAPTION>
APRIL 30,
2000
------------
<S> <C>
OPERATIONS:
Net investment income (loss) $ (383,286)
----------------------------------------------------------------------------
Net realized gain (loss) from investment securities (5,680,099)
----------------------------------------------------------------------------
Change in net unrealized appreciation of investment
securities 11,616,881
----------------------------------------------------------------------------
Net increase in net assets resulting from operations 5,553,496
----------------------------------------------------------------------------
Share transactions-net:
Class A 77,139,905
----------------------------------------------------------------------------
Class B 60,560,961
----------------------------------------------------------------------------
Class C 18,519,592
----------------------------------------------------------------------------
Net increase in net assets 161,773,954
----------------------------------------------------------------------------
NET ASSETS:
Beginning of period 0
----------------------------------------------------------------------------
End of period $161,773,954
============================================================================
NET ASSETS CONSIST OF:
Capital (par value and additional paid-in) $156,220,458
----------------------------------------------------------------------------
Undistributed net investment income (loss) (383,286)
----------------------------------------------------------------------------
Undistributed net realized gain (loss) from investment
securities (5,680,099)
----------------------------------------------------------------------------
Unrealized appreciation of investment securities 11,616,881
----------------------------------------------------------------------------
$161,773,954
============================================================================
</TABLE>
See Notes to Financial Statements.
8
<PAGE> 11
NOTES TO FINANCIAL STATEMENTS
April 30, 2000
(Unaudited)
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES
AIM Mid Cap Growth Fund (the "Fund") is a series portfolio of AIM Equity Funds,
Inc. (the "Company"). The Company is a Maryland corporation registered under the
Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end
series management investment company consisting of eleven separate portfolios.
The Fund commenced operations November 1, 1999 and 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.
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. 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 0.80% of
the first $1 billion of the Fund's average daily net assets plus 0.75% of the
Fund's average daily net assets over $1 billion. During the period November 1,
1999 (date operations commenced) through April 30, 2000, AIM waived fees of
$33,800.
9
<PAGE> 12
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. During the period November 1, 1999 (date
operations commenced) through 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 period November 1, 1999 (date
operations commenced) through April 30, 2000, AFS was paid $49,801 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 period November 1, 1999
(date operations commenced) through April 30, 2000, the Class A, Class B and
Class C shares paid AIM Distributors $67,590, $132,785 and $45,397,
respectively, as compensation under the Plans.
AIM Distributors received commissions of $218,724 from sales of the Class A
shares of the Fund during the period November 1, 1999 (date operations
commenced) through 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 period November 1, 1999 (date operations
commenced) through April 30, 2000, AIM Distributors received $4,931 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 and AIM Distributors.
During the period November 1, 1999 (date operations commenced) through April
30, 2000, the Fund paid legal fees of $989 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 period November 1, 1999 (date operations commenced) through April 30,
2000, the Fund received reductions in transfer agency fees from AFS (an
affiliate of AIM) and reductions in custodian fees of $380 and $1,716,
respectively, under expense offset arrangements. The effect of the above
arrangements resulted in a reduction of the Fund's total expenses of $2,096
during the period November 1, 1999 (date operations commenced) through 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 period
November 1, 1999 (date operations commenced) through April 30, 2000, the Fund
did not borrow under the line of credit agreement. The funds which are party to
the line of credit are charged a commitment fee of 0.09% on the unused balance
of the committed line. The commitment fee is allocated among the funds based on
their respective average net assets for the period.
NOTE 6-INVESTMENT SECURITIES
The aggregate amount of investment securities (other than short-term securities)
purchased and sold by the Fund during the period November 1, 1999 (date
operations commenced) through April 30, 2000 was $190,376,810 and $53,714,564
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 $21,225,202
---------------------------------------------------------
Aggregate unrealized (depreciation) of
investment securities (9,608,321)
---------------------------------------------------------
Net unrealized appreciation of investment
securities $11,616,881
=========================================================
</TABLE>
Investments have the same cost for tax and financial
purposes.
10
<PAGE> 13
NOTE 7-CAPITAL STOCK
Changes in capital stock outstanding during the period November 1, 1999 (date
operations commenced) through April 30, 2000 were as follows:
<TABLE>
<CAPTION>
APRIL 30, 2000
-------------------------
SHARES AMOUNT
---------- ------------
<S> <C> <C>
Sold:
Class A 6,081,237 $ 89,115,328
---------------------------------------------------------------------------------------
Class B 4,232,813 63,691,935
---------------------------------------------------------------------------------------
Class C 1,369,943 20,283,608
---------------------------------------------------------------------------------------
Reacquired:
Class A (815,204) (11,975,423)
---------------------------------------------------------------------------------------
Class B (201,420) (3,130,974)
---------------------------------------------------------------------------------------
Class C (114,244) (1,764,016)
---------------------------------------------------------------------------------------
10,553,125 $156,220,458
=======================================================================================
</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 CLASS B CLASS C
--------------------------- --------------------------- ---------------------------
NOVEMBER 1, 1999 NOVEMBER 1, 1999 NOVEMBER 1, 1999
(DATE OPERATIONS COMMENCED) (DATE OPERATIONS COMMENCED) (DATE OPERATIONS COMMENCED)
TO TO TO
APRIL 30, APRIL 30, APRIL 30,
2000 2000 2000
--------------------------- --------------------------- ---------------------------
<S> <C> <C> <C>
Net asset value, beginning of
period $ 10.00 $ 10.00 $ 10.00
----------------------------- --------------------------- --------------------------- ---------------------------
Income from investment
operations:
Net investment income
(loss) (0.05) (0.11) (0.11)
----------------------------- --------------------------- --------------------------- ---------------------------
Net gains on securities
(both realized and
unrealized) 5.41 5.40 5.41
----------------------------- --------------------------- --------------------------- ---------------------------
Total from investment
operations 5.36 5.29 5.30
----------------------------- --------------------------- --------------------------- ---------------------------
Net asset value, end of
period $ 15.36 $ 15.29 $ 15.30
============================= =========================== =========================== ===========================
Total return(a) 53.60% 52.90% 53.00%
============================= =========================== =========================== ===========================
Ratios/supplemental data:
Net assets, end of period
(000s omitted) $80,908 $61,653 $19,212
============================= =========================== =========================== ===========================
Ratio of expenses to average
net assets:
With fee waivers 1.64%(b) 2.33%(b) 2.33%(b)
============================= =========================== =========================== ===========================
Without fee waivers 1.73%(b) 2.42%(b) 2.42%(b)
============================= =========================== =========================== ===========================
Ratio of net investment
income (loss) to average
net assets (0.70)%(b) (1.39)%(b) (1.39)%(b)
============================= =========================== =========================== ===========================
Portfolio turnover rate 78% 78% 78%
============================= =========================== =========================== ===========================
</TABLE>
(a) Does not deduct sales charges or 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 $38,835,088,
$26,702,933 and $9,129,243 for Class A, Class B and Class C, respectively.
11
<PAGE> 14
<TABLE>
<CAPTION>
BOARD OF DIRECTORS OFFICERS OFFICE OF THE FUND
<S> <C> <C>
Charles T. Bauer Charles T. Bauer 11 Greenway Plaza
Chairman Chairman Suite 100
A I M Management Group Inc. Houston, TX 77046
Robert H. Graham
Bruce L. Crockett President INVESTMENT ADVISOR
Director
ACE Limited; Carol F. Relihan A I M Advisors, Inc.
Formerly Director, President, and Senior Vice President and Secretary 11 Greenway Plaza
Chief Executive Officer Suite 100
COMSAT Corporation Gary T. Crum Houston, TX 77046
Senior Vice President
Owen Daly II TRANSFER AGENT
Director Edgar M. Larsen
Cortland Trust Inc. Senior Vice President A I M Fund Services, Inc.
P.O. Box 4739
Edward K. Dunn Jr. Dana R. Sutton Houston, TX 77210-4739
Chairman, Mercantile Mortgage Corp.; Vice President and Treasurer
Formerly Vice Chairman and President, CUSTODIAN
Mercantile-Safe Deposit & Trust Co.; and Melville B. Cox
President, Mercantile Bankshares Vice President State Street Bank and Trust Company
225 Franklin Street
Jack Fields Mary J. Benson Boston, MA 02110
Chief Executive Officer Assistant Vice President and
Texana Global, Inc.; Assistant Treasurer COUNSEL TO THE FUND
Formerly Member
of the U.S. House of Representatives Sheri Morris Ballard Spahr
Assistant Vice President and Andrews & Ingersoll, LLP
Carl Frischling Assistant Treasurer 1735 Market Street
Partner Philadelphia, PA 19103
Kramer, Levin, Naftalis & Frankel LLP Renee A. Friedli
Assistant Secretary COUNSEL TO THE DIRECTORS
Robert H. Graham
President and Chief Executive Officer P. Michelle Grace Kramer, Levin, Naftalis & Frankel LLP
A I M Management Group Inc. Assistant Secretary 919 Third Avenue
New York, NY 10022
Prema Mathai-Davis Nancy L. Martin
Chief Executive Officer, YWCA of the U.S.A. Assistant Secretary DISTRIBUTOR
Lewis F. Pennock Ofelia M. Mayo A I M Distributors, Inc.
Attorney Assistant Secretary 11 Greenway Plaza
Suite 100
Louis S. Sklar Lisa A. Moss Houston, TX 77046
Executive Vice President Assistant Secretary
Hines Interests
Limited Partnership Kathleen J. Pflueger
Assistant Secretary
Samuel D. Sirko
Assistant Secretary
</TABLE>
12
<PAGE> 15
-------------------------------------
OUR AUTOMATED AIM INVESTOR LINE, 800-246-5463,
PROVIDES CURRENT ACCOUNT INFORMATION AND THE PRICE,
YIELD AND TOTAL RETURN ON ALL AIM FUNDS
24 HOURS A DAY. YOU CAN ALSO ORDER
A YEAR-TO-DATE STATEMENT OF YOUR ACCOUNT.
-------------------------------------
AIM FUNDS--Registered Trademark-- MAKES INVESTING EASY
o AIM BANK CONNECTION(SM). You can make investments in your AIM account in
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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
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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
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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
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o E-MAIL ACCESS. You can contact us at [email protected] for general
information. For account information, contact us at
[email protected].
o www.aimfunds.com. Our award-winning Web site provides account information,
shareholder education and fund performance information.
<PAGE> 16
THE AIM FAMILY OF FUNDS--Registered Trademark--
<TABLE>
<S> <C> <C>
GROWTH FUNDS MONEY MARKET FUNDS A I M Management Group Inc. has provided
AIM Aggressive Growth Fund AIM Money Market Fund leadership in the mutual fund industry
AIM Blue Chip Fund AIM Tax-Exempt Cash Fund since 1976 and managed approximately $176
AIM Capital Development Fund billion in assets for more than 7.4
AIM Constellation Fund(1) INTERNATIONAL GROWTH FUNDS million shareholders, including individual
AIM Dent Demographic Trends Fund AIM Advisor International Value Fund investors, corporate clients and financial
AIM Emerging Growth Fund AIM Asian Growth Fund institutions, as of March 31, 2000.
AIM Large Cap Growth Fund AIM Developing Markets Fund
AIM Large Cap Opportunities Fund AIM Euroland Growth Fund(5) The AIM Family of Funds--Registered
AIM Mid Cap Equity Fund AIM European Development Fund Trademark-- is distributed nationwide, and
AIM Mid Cap Growth Fund AIM International Equity Fund AIM today is the eighth-largest mutual
AIM Mid Cap Opportunities Fund(2) AIM Japan Growth Fund fund complex in the United States in
AIM Select Growth Fund AIM Latin American Growth Fund assets under management, according to
AIM Small Cap Growth Fund(3) Strategic Insight, an independent mutual
AIM Small Cap Opportunities Fund(4) GLOBAL GROWTH FUNDS fund monitor.
AIM Value Fund AIM Global Aggressive Growth Fund
AIM Weingarten Fund AIM Global Growth Fund
AIM Global Trends Fund(6)
GROWTH & INCOME FUNDS
AIM Advisor Flex Fund GLOBAL GROWTH & INCOME FUNDS
AIM Advisor Real Estate Fund AIM Global Utilities Fund
AIM Balanced Fund
AIM Basic Value Fund GLOBAL INCOME FUNDS
AIM Charter Fund AIM Global Income Fund
AIM Strategic Income Fund
INCOME FUNDS
AIM Floating Rate Fund THEME FUNDS
AIM High Yield Fund AIM Global Consumer Products and Services Fund
AIM High Yield Fund II AIM Global Financial Services Fund
AIM Income Fund AIM Global Health Care Fund
AIM Intermediate Government Fund AIM Global Infrastructure Fund
AIM Limited Maturity Treasury Fund AIM Global Resources Fund
AIM Global Telecommunications and Technology Fund
TAX-FREE INCOME FUNDS
AIM High Income Municipal Fund
AIM Municipal Bond Fund
AIM Tax-Exempt Bond Fund of Connecticut
AIM Tax-Free Intermediate Fund
</TABLE>
(1) Effective December 1, 1999, AIM Constellation Fund's investment strategy
broadened to allow investments across all market capitalizations. (2) AIM Mid
Cap Opportunities Fund closed to new investors on March 21, 2000. (3) AIM Small
Cap Growth Fund closed to new investors on November 8, 1999. (4) AIM Small Cap
Opportunities Fund closed to new investors on November 4, 1999. (5) On September
1, 1999, AIM Europe Growth Fund was renamed AIM Euroland Growth Fund. Previously
the fund invested in all size companies in most areas of Europe. The fund now
seeks to invest at least 65% of its assets in large-cap companies within
countries using the euro as their currency (EMU-member countries). (6) Effective
August 27, 1999, AIM Global Trends Fund was restructured to operate as a
traditional mutual fund. Before that date, the fund operated as a fund of funds.
For more complete information about any AIM fund(s), including sales charges and
expenses, ask your financial advisor or securities dealer for a free
prospectus(es). Please read the prospectus(es) carefully before you invest or
send money. If used as sales material after July 20, 2000, this report must be
accompanied by a current Quarterly Review of Performance for AIM Funds.
[DALBAR LOGO APPEARS HERE] [AIM LOGO APPEARS HERE]
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