<PAGE> 1
SEMIANNUAL REPORT / APRIL 30 2000
AIM EMERGING GROWTH FUND
[COVER IMAGE]
[AIM LOGO APPEARS HERE]
--Registered Trademark--
<PAGE> 2
[ COVER IMAGE ]
-------------------------------------
INDOOR CYCLING BY LEROY NIEMAN
LIKE A BICYCLIST BATTLING TO TAKE THE LEAD IN A HOTLY
CONTESTED RACE, COMPANIES VIE FOR POSITION WITHIN THEIR
RESPECTIVE INDUSTRIES. IN AIM EMERGING GROWTH FUND,
WE SEEK TO OWN THE STOCKS OF COMPANIES WE BELIEVE ARE
RISING TO THE FOREFRONT IN NEW OR EXISTING INDUSTRIES.
-------------------------------------
AIM Emerging Growth Fund is for shareholders who seek long-term growth of
capital by investing in securities of companies that are likely to benefit from
new or innovative products, services or processes.
ABOUT FUND PERFORMANCE AND PORTFOLIO DATA THROUGHOUT THIS REPORT:
o AIM Emerging 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 returns would have been lower.
o When sales charges are included in performance figures, Class A share
performance reflects the maximum 5.50% sales charge, 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 3/31/00),
total return is cumulative total return that has not yet been annualized.
o Investing in small 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 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 Russell 2500 Index measures the performance of the 2,500
smallest companies in the Russell 3000 Index, which measures the performance
of the 3,000 largest U.S. companies based on total market capitalization.
o The unmanaged Russell 2500 Growth Index measures the performance of those
Russell 2500 companies with higher price-to-book ratios and higher
forecasted growth values.
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.
TOTAL RETURNS
3/31/00--4/30/00, including sales charges
================================================================================
CLASS A SHARES
--------------------------------------------------------------------------------
Inception (3/31/00) (8.79)%*
*(3.50)% excluding sales charges
CLASS B SHARES
--------------------------------------------------------------------------------
Inception (3/31/00) (8.33)%*
*(3.50)% excluding CDSC
CLASS C SHARES
--------------------------------------------------------------------------------
Inception (3/31/00) (4.56)%**
*(3.60)% 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.
================================================================================
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 EMERGING 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
Charles T. had the idea of creating a mutual fund company that put
Bauer, people first. Our slogan, "people are the product," means
Chairman of that people--our employees and our investors--are our
the Board of company.
THE FUND Almost a quarter-century later, we've grown to more than
APPEARS HERE] seven million investors, $176 billion in assets under
management and 53 retail funds. Over that time, the industry
[PHOTO OF as a whole has grown from $51 billion in assets to more than
Robert H. $7 trillion today. I never dreamed we would see such
Graham, phenomenal growth. You are the main reason for our success,
APPEARS HERE] and I want you to know how much I appreciate your loyalty
and trust over the past 24 years.
Usually in this letter I review market activity during
the period covered by the report. This time, I'd just like
to say thank you. I am retiring as chairman of the AIM Funds effective September
30, and as chairman of AIM effective December 31, 2000. Bob Graham, whose
picture appears under mine, will succeed me as AIM's chairman and chairman of
the AIM Funds. Gary Crum will remain president of A I M Capital Management,
Inc., leading our investment division. I am enormously proud to leave AIM in
such capable hands.
I'm also very proud of our team of employees, now more than 2,300 strong.
Because of their collective commitment to excellence and ethical business
practices, AIM has earned the trust of investors and financial advisors alike.
And every employee, from portfolio managers to client services representatives,
is dedicated to serving our shareholders.
Rest assured that nothing at AIM will change because of my retirement. You
can still depend on this company to manage your money responsibly and provide
you with top-notch service. As chairman of AIM and chairman of the AIM Funds,
Bob is committed to preserving the things that have made AIM great in the past
and positioning it to succeed in the future. And Gary is dedicated to
maintaining the quality and long-term performance you've come to expect from
AIM.
In the pages that follow, the managers of your fund comment on recent market
activity, how they have managed your fund over the past six months and their
outlook for the coming months. We trust you will find their comments helpful.
If you have any questions or comments, please contact us through our Web
site, www.aimfunds.com, or call our Client Services department at 800-959-4246
during normal business hours. Information about your account is available at our
Web site and on our automated AIM Investor Line, 800-246-5463.
Thank you again for the support and trust you've shown us. I feel privileged
to have helped you with your financial goals, and I wish you success in all your
endeavors.
Sincerely,
/s/ CHARLES T. BAUER
Charles T. Bauer
Chairman, A I M Advisors, Inc.
AIM EMERGING GROWTH FUND
<PAGE> 4
SEMIANNUAL REPORT / MANAGERS' OVERVIEW
-------------------------------------
THE FUND INVESTS IN COMPANIES
MANAGEMENT BELIEVES ARE POISED
FOR SIGNIFICANT GROWTH.
-------------------------------------
FUND DEBUTS IN DIFFICULT MARKET ENVIRONMENT
STOCK MARKETS WERE VERY VOLATILE DURING APRIL. HOW DID AIM EMERGING GROWTH FUND
PERFORM?
The fund, which began sales on March 31, 2000, debuted just before a significant
market sell off. Several key market indexes fell sharply in April, a trend
reflected in the fund's performance. Excluding sales charges, cumulative total
returns were -3.50% for Class A and Class B shares and -3.60% for Class C
shares. The fund outperformed the Russell 2500 Index and the Russell 2500 Growth
Index, which registered total returns of -5.38% and -9.74%, respectively, for
the same period.
At the end of the reporting period, total net assets in the fund stood at
$95.9 million.
WHAT IS THE FUND'S MANAGEMENT STRATEGY?
The fund invests in companies management believes are poised for significant
growth. We focus on start-up and developing companies emerging in existing or
new industries. Our stock-selection process is based on our perception of a
company's prospects, not on speculation about the performance of a broad market
sector.
We expect that the fund will invest primarily in small- and mid-cap stocks,
although it can also hold large-cap stocks. This flexibility gives the fund the
potential to benefit from owning the stock of a company as it grows.
WHAT WERE THE KEY TRENDS IN THE STOCK MARKET?
Stocks were extremely volatile in April as markets experienced a sharp sell-off.
Technology stocks, which earlier had propelled the Dow, the Nasdaq and other
market indexes to new heights, were particularly hard hit. Investors became
concerned that tech stocks might be overvalued, sparking a sharp sell-off in
this sector. In mid 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 affected.
Investors were also concerned that the Federal Reserve Board (the Fed) might
continue to raise interest rates to slow torrid economic growth and to contain
inflation. In March, 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 5.75% to 6.0%. Interest-rate concerns prompted a sell
off that affected almost every stock-market sector.
Nearly all major market indexes sustained losses in April. The
tech-dominated Nasdaq, with a total return of -15.57% for the month, was among
the most drastically affected. Total returns for April for other major indexes
were as follows: the S&P 500, -3.01%; the S&P 400, -3.49%; and the Russell 2000,
-6.02%.
HOW WAS THE FUND POSITIONED AS OF APRIL 30?
At the end of the reporting period, the fund had 90 equity holdings and
significant exposure to the technology sector. The portfolio's heavy tech
weighting was a result of our stock-selection criteria; we found many emerging
companies with excellent growth prospects in that 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 semiconductors, communications equipment and software.
These industries are benefiting from the steady sales of personal computers, the
proliferation of new communications devices and the expansion of the Internet.
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. Silicon Storage Technology, Inc. 3.31% 1. Electronics (Semiconductors) 17.74%
2. Powerwave Technologies, Inc. 2.60 2. Communications Equipment 12.26
3. Kopin Corp. 2.02 3. Telecommunications (Cellular/Wireless) 6.05
4. Microchip Technology, Inc. 2.01 4. Computers (Software & Services) 5.49
5. Alpha Industries, Inc. 1.90 5. Computers (Peripherals) 5.15
6. ANADIGICS, Inc. 1.77 6. Computers (Networking) 3.98
7. SDL, Inc. 1.73 7. Electrical Equipment 3.20
8. Zoran Corp. 1.69 8. Oil & Gas (Drilling & Equipment) 3.08
9. CommScope, Inc. 1.61 9. Electronics (Instrumentation) 2.98
10. E-Tek Dynamics, Inc. 1.60 10. Equipment (Semiconductor) 2.37
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 EMERGING GROWTH FUND
<PAGE> 5
SEMIANNUAL REPORT / MANAGERS' OVERVIEW
CAN YOU NAME A FEW OF THE TECH STOCKS IN THE PORTFOLIO?
Silicon Storage Technology, the fund's largest equity holding, provides flash
memory chips that do not need constant power to retain data and can be erased
and reprogrammed in blocks. Powerwave Technologies, our second-largest holding,
makes radio frequency power amplifiers that boost signal strength and reduce
transmission interference in the base stations of cellular and personal
communications service networks. Kopin, the fund's third-largest holding, makes
specialized semiconductor wafers used in digital phones, pagers and video
cameras.
Other tech stocks in the portfolio included Microchip Technology, which
makes low-cost embedded control products for the automotive, consumer,
communications, industrial and office automation markets; Alpha Industries,
which sells integrated circuits that help send and receive radio frequencies;
and ANADIGICS, which produces integrated circuits used to transmit signals in a
variety of high-volume communications applications, including wireless and
fiber-optic telecommunications, cable television and direct-broadcast satellite
television systems.
We believe that 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 WERE SOME NON-TECH STOCKS IN THE PORTFOLIO?
Newfield Exploration drills for oil and gas, both on and off shore, mostly in
the Gulf of Mexico, while CEC Entertainment operates the popular Chuck E.
Cheese's Pizza restaurants.
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
may 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.
GETTING AHEAD OF THE GROWTH CURVE
<TABLE>
<CAPTION>
====================================================================================================================================
BUSINESS CYCLE STAGES
INVESTMENT FOCUS
START-UP DEVELOPING ESTABLISHED MATURE
example: Sycamore example: Brocade example: Wal-Mart example: Ford
Networks Communications
GROWTH RATE
<S> <C> <C> <C> <C>
------------------------------------------------------------------------------------------------------------------------------------
This life-cycle curve illustrates ------------
the greater growth potential that
------------
typically characterizes companies
in their early development. The fund
------------
targets those small companies with
the potential for rapid growth. ------------
====================================================================================================================================
</TABLE>
The chart illustrates the general concept of a company's growth cycle and does
not represent the performance of the stocks in which the fund invests. Companies
used in the chart are for illustrative purposes only and do not necessarily
represent specific holdings in the fund.
See important fund and index disclosures inside front cover.
AIM EMERGING GROWTH FUND
<PAGE> 6
SEMIANNUAL REPORT / FOR CONSIDERATION
CHASING PERFORMANCE MAY HURT MORE
THAN IT HELPS
In the wake of some of last year's eye-popping mutual fund returns of more than
100%, it may be hard to look at your own returns and not feel disappointed.
According to Lipper, Inc.(1), the average large-cap core mutual fund finished
1999 up 22.35%--a return that would be considered terrific in most other
years--while the average science and technology fund had an astounding return of
134.77% for the year. Industry trends point to the fact that some investors have
looked at such performance and said, "My investments haven't had that kind of
return. I need to change my portfolio." What's an investor to do?
LOOK AT THE BIG PICTURE
It's very tempting to look only at returns when you invest in a mutual fund. But
there are other factors to consider:
o HOW WELL DOES THE FUND MATCH MY FINANCIAL GOALS?
Different kinds of mutual funds are appropriate for different people at
different stages. Are you a young adult early in your work life, or are you
approaching retirement? Are you investing to buy a house, car or other large
item soon, or are you investing for your later years?
If your investment plan has a rather long time horizon, you may be able to
invest more aggressively because you could have time to recoup should you
experience losses. If your needs are more immediate, you should assess how
aggressive you can afford to be--you may need to be more conservative than you
thought to meet your goal.
o HOW WELL DOES THE FUND MATCH MY TOLERANCE FOR RISK?
Many of the mutual funds that had such high-flying returns for 1999 are pretty
aggressive, investing in smaller, less-established companies, some of which
have not even realized a profit. So while these mutual funds have the potential
to make your money grow, they may also entail more risk than you may be prepared
to take.
Of course, investing in any mutual fund brings with it a certain amount of
risk, but this risk can vary widely depending on the types of holdings in which
a fund invests. It's important that you take a hard look at your risk tolerance
before investing in any fund, particularly if you are ratcheting up to a more
aggressive fund.
o HOW WELL DOES THE FUND FIT INTO MY PORTFOLIO?
When a market sector or mutual fund is doing well, you may be tempted to
overload your portfolio with the "winner of the moment." It seems to make
sense--you're making money with that investment so you should allocate more
money to it, right?
Be careful. A narrowly invested portfolio could be especially vulnerable to
market volatility. Spreading your investment over several types of funds or
investing in one diversified fund can help you spread out your risk--the more
diversified your portfolio, the less overlap it should have. Less overlap can
mean less risk.
PAST PERFORMANCE IS NO GUARANTEE
Last year's phenomenal returns were the result of a number of unique
factors--the strong U.S. economy, the proliferation of new technology companies
and record amounts of cash being poured into the stock market, to name a few.
Even so, it may seem that everyone came out a winner in 1999.
In reality, just a few large companies accounted for many of the markets'
records in 1999. More than half the stocks in the S&P 500(2) declined during the
year. The technology sector was clearly dominant--the tech component of the S&P
500 finished 1999 with a return of 75.11%, while the capital goods component of
the index, which came in second for the year, had a return of 28.76%.(3) So if
you didn't invest in technology in 1999, you probably didn't enjoy the same
performance as people who did.
As we've seen thus far in 2000, financial markets can be quite fickle,
revolving around investors' perceptions as much as hard facts. Because of the
ever-changing nature of the market environment, many high-performing mutual
funds don't repeat their gains from year to year. This doesn't necessarily mean
a fund had a
SEC SPEAKS OUT
In the wake of 1999's extraordinary fund performances, the Securities and
Exchange Commission (SEC), which regulates the mutual fund industry, says that
investors should temper their expectations and not make investment decisions
based only on past performance. The SEC also suggests that investors consider
the following factors when looking at a mutual fund:
[PIE GRAPHIC W/O NUMBERS]
AGE
RISK
SIZE
VOLATILITY
MANAGEMENT
EXPENSES
TAX EFFICIENCY
AIM EMERGING GROWTH FUND
<PAGE> 7
SEMIANNUAL REPORT / FOR CONSIDERATION
"bad" year or that fund managers chose holdings poorly. It may just mean that
the environment for a particular fund was not as ideal as it had been in the
past. This can be true for any mutual fund.
KEEP EXPECTATIONS REALISTIC
Along with recognizing how quickly the market environment can change, it's
important to keep your expectations realistic. Of course you would like your
investments to do well every year, but chances are they won't. It's the nature
of the beast. So what you should be shooting for is good performance over the
long term. While your investment may not have a stellar year every year, over
time its average returns may prove to be just what you hoped for.
Sometimes it's hard to be patient when it seems like everyone else's
investments are doing better than yours. You may be tempted to chase winning
performance by trying to time the market, switching in and out of funds as
markets or sectors go in and out of favor. But this strategy can greatly
increase your risk and it rarely works--you may end up with significantly lower
returns than if you'd just stayed put. (There can also be adverse tax
consequences.)
ASSET ALLOCATION: THE OLD STANDBY
The truth is, no one knows for sure what is going to perform well in the market,
which is why mutual fund investors should diversify using asset
allocation--spreading investments over several fund types (e.g., core, growth,
international and income). Unfortunately, some investors seem less interested in
asset allocation these days because they want to chase performance instead. And
when the market is roaring ahead, who can blame them?
But as Isaac Newton proved, what goes up must come down. A diversified
portfolio can offer some protection in a market downturn because when your
assets are spread over several different types of funds, chances are at least
one of them is keeping its head above water. And while a diversified fund
portfolio probably won't perform as well as the flashiest stock fund, it
probably won't do as badly as the worst of them either.
Your financial advisor can help you determine what kinds of mutual funds best
fit your investment goals and risk tolerance. Talk to your financial advisor for
more information.
(1) Lipper, Inc. is an independent mutual fund performance monitor.
(2) The unmanaged Standard & Poor's Composite Index of 500 Stocks (the S&P 500)
is generally considered representative of the stock market.
(3) Source: Bloomberg.
DOLLAR-COST AVERAGING CAN LOWER THE COST OF INVESTING
One useful way to buy shares of a mutual fund is through dollar-cost averaging.
In such a plan, you invest a certain amount at regular intervals--say $200 per
month--which allows you to buy more shares when mutual fund prices go down and
fewer shares when prices go up. This gives you the benefit of your average cost
per share actually being less than the average price per share.
Please keep in mind that this example is hypothetical and is not indicative of
the performance of any investment, IRA or AIM fund. Dollar-cost averaging does
not assure a profit and does not protect against loss in declining markets.
Since dollar-cost averaging involves continuous investing regardless of
fluctuating securities prices, investors should consider their ability to
continue purchases over an extended period of time.
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.
================================================================================
MONTH AMOUNT INVESTED SHARE PRICE SHARES PURCHASED
--------------------------------------------------------------------------------
JANUARY $ 200 $ 24 8.333
FEBRUARY 200 20 10.000
MARCH 200 14 14.286
APRIL 200 18 11.111
MAY 200 22 9.091
JUNE 200 24 8.333
6-MONTH TOTAL $1200 $122 61.154
Average price per share: $122 divided by 6 = $20.33
Average cost per share: $1200 divided by 61.154 = $19.62
================================================================================
AIM EMERGING GROWTH FUND
<PAGE> 8
SCHEDULE OF INVESTMENTS
April 30, 2000
(Unaudited)
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
COMMON STOCKS & OTHER EQUITY
INTERESTS-82.72%
BIOTECHNOLOGY-0.27%
Caliper Technologies Corp.(a) 7,000 $ 262,500
--------------------------------------------------------------
BROADCASTING (TELEVISION, RADIO &
CABLE) -1.99%
Radio One, Inc.(a) 23,000 1,334,000
--------------------------------------------------------------
Radio Unica Corp.(a) 60,000 577,500
--------------------------------------------------------------
1,911,500
--------------------------------------------------------------
COMMUNICATIONS EQUIPMENT-12.26%
Aspect Communications Corp.(a) 17,500 621,250
--------------------------------------------------------------
Avanex Corp.(a) 5,000 609,375
--------------------------------------------------------------
BreezeCom Ltd. (Israel)(a) 20,000 550,000
--------------------------------------------------------------
E-Tek Dynamics, Inc.(a) 7,500 1,535,625
--------------------------------------------------------------
Finisar Corp.(a) 18,000 671,625
--------------------------------------------------------------
Harmonic, Inc.(a) 15,000 1,107,187
--------------------------------------------------------------
JDS Uniphase Corp.(a) 5,400 559,912
--------------------------------------------------------------
Juniper Networks, Inc.(a) 3,000 638,062
--------------------------------------------------------------
Proxim, Inc.(a) 7,500 577,031
--------------------------------------------------------------
Redback Networks, Inc.(a) 7,500 595,312
--------------------------------------------------------------
SBA Communications Corp.(a) 25,000 1,015,625
--------------------------------------------------------------
Sycamore Networks, Inc.(a) 17,500 1,373,750
--------------------------------------------------------------
Turnstone Systems, Inc.(a) 6,000 660,000
--------------------------------------------------------------
UTStarcom, Inc.(a) 26,000 1,235,000
--------------------------------------------------------------
11,749,754
--------------------------------------------------------------
COMPUTERS (HARDWARE)-0.76%
National Instruments Corp.(a) 15,000 731,250
--------------------------------------------------------------
COMPUTERS (NETWORKING)-3.98%
Extreme Networks, Inc.(a) 19,000 1,094,875
--------------------------------------------------------------
Foundry Networks, Inc.(a) 2,500 227,500
--------------------------------------------------------------
MRV Communications, Inc.(a) 6,000 413,625
--------------------------------------------------------------
SonicWALL, Inc.(a) 9,000 544,500
--------------------------------------------------------------
VeriSign, Inc.(a) 6,500 905,937
--------------------------------------------------------------
Virata Corp.(a) 5,000 626,250
--------------------------------------------------------------
3,812,687
--------------------------------------------------------------
COMPUTERS (PERIPHERALS)-5.15%
QLogic Corp.(a) 8,000 802,500
--------------------------------------------------------------
SanDisk Corp.(a) 10,500 962,062
--------------------------------------------------------------
Silicon Storage Technology, Inc.(a) 32,500 3,168,750
--------------------------------------------------------------
4,933,312
--------------------------------------------------------------
COMPUTERS (SOFTWARE & SERVICES)-5.49%
Alteon Websystems, Inc.(a) 15,000 1,020,000
--------------------------------------------------------------
BEA Systems, Inc.(a) 10,000 482,500
--------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
COMPUTERS (SOFTWARE & SERVICES)-
(CONTINUED)
Broadbase Software, Inc.(a) 15,000 $ 237,187
--------------------------------------------------------------
Check Point Software Technologies
Ltd. (Israel)(a) 2,000 346,000
--------------------------------------------------------------
Digital Island, Inc.(a) 10,500 366,187
--------------------------------------------------------------
Gemstar International Group Ltd.(a) 10,500 485,625
--------------------------------------------------------------
ISS Group, Inc.(a) 4,500 406,969
--------------------------------------------------------------
Macrovision Corp.(a) 6,000 293,250
--------------------------------------------------------------
Mercator Software, Inc.(a) 6,000 220,875
--------------------------------------------------------------
Micromuse, Inc.(a) 3,500 343,437
--------------------------------------------------------------
Netegrity, Inc.(a) 9,500 421,563
--------------------------------------------------------------
VERITAS Software Corp.(a) 6,000 643,594
--------------------------------------------------------------
5,267,187
--------------------------------------------------------------
ELECTRICAL EQUIPMENT-3.20%
CommScope, Inc.(a) 32,500 1,543,750
--------------------------------------------------------------
Cree Research, Inc.(a) 7,500 1,091,250
--------------------------------------------------------------
Veeco Instruments Inc.(a) 7,000 434,875
--------------------------------------------------------------
3,069,875
--------------------------------------------------------------
ELECTRONICS (COMPONENT
DISTRIBUTORS)-1.35%
C-COR.net Corp.(a) 20,000 782,500
--------------------------------------------------------------
Power-One, Inc.(a) 7,500 511,875
--------------------------------------------------------------
1,294,375
--------------------------------------------------------------
ELECTRONICS (DEFENSE)-1.09%
Anaren Microwave, Inc.(a) 10,000 1,040,000
--------------------------------------------------------------
ELECTRONICS (INSTRUMENTATION)-2.98%
Alpha Industries, Inc.(a) 35,000 1,820,000
--------------------------------------------------------------
Newport Corp. 4,000 485,250
--------------------------------------------------------------
PerkinElmer, Inc. 10,000 547,500
--------------------------------------------------------------
2,852,750
--------------------------------------------------------------
ELECTRONICS (SEMICONDUCTORS)-17.74%
ANADIGICS, Inc.(a) 22,500 1,693,125
--------------------------------------------------------------
Applied Micro Circuits Corp.(a) 11,000 1,417,625
--------------------------------------------------------------
Burr-Brown Corp.(a) 10,000 681,250
--------------------------------------------------------------
Elantec Semiconductor, Inc.(a) 30,000 1,215,000
--------------------------------------------------------------
GlobeSpan, Inc.(a) 13,500 1,282,500
--------------------------------------------------------------
Metalink, Ltd. (Israel)(a) 25,000 714,063
--------------------------------------------------------------
Microchip Technology, Inc.(a) 31,000 1,923,938
--------------------------------------------------------------
MIPS Technologies, Inc(a) 8,000 259,875
--------------------------------------------------------------
PMC-Sierra, Inc. (Canada)(a) 6,000 1,151,250
--------------------------------------------------------------
RF Micro Devices, Inc.(a) 12,000 1,248,750
--------------------------------------------------------------
SDL, Inc.(a) 8,500 1,657,500
--------------------------------------------------------------
Silicon Image, Inc(a) 14,000 561,750
--------------------------------------------------------------
Therma-Wave, Inc(a) 10,000 275,000
--------------------------------------------------------------
</TABLE>
6
<PAGE> 9
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
ELECTRONICS (SEMICONDUCTORS)-(CONTINUED)
TranSwitch Corp.(a) 7,000 $ 616,438
--------------------------------------------------------------
Vitesse Semiconductor Corp.(a) 10,000 680,625
--------------------------------------------------------------
Zoran Corp.(a) 32,500 1,622,969
--------------------------------------------------------------
17,001,658
--------------------------------------------------------------
EQUIPMENT (SEMICONDUCTOR)-2.37%
Asyst Technologies, Inc.(a) 22,500 1,203,750
--------------------------------------------------------------
Credence Systems Corp.(a) 7,500 1,070,625
--------------------------------------------------------------
2,274,375
--------------------------------------------------------------
HEALTH CARE (DRUGS-GENERIC &
OTHER)-0.66%
Anesta Corp.(a) 33,500 632,313
--------------------------------------------------------------
HEALTH CARE (MEDICAL PRODUCTS &
SUPPLIES)-1.00%
Aspect Medical Systems, Inc.(a) 17,000 754,375
--------------------------------------------------------------
Precision Optics Corp, Inc.(a) 17,500 202,344
--------------------------------------------------------------
956,719
--------------------------------------------------------------
MANUFACTURING (DIVERSIFIED)-2.02%
Kopin Corp.(a) 25,000 1,935,938
--------------------------------------------------------------
OIL & GAS (DRILLING &
EQUIPMENT)-3.08%
Marine Drilling Companies, Inc.(a) 30,000 780,000
--------------------------------------------------------------
Patterson Energy, Inc.(a) 40,000 1,130,000
--------------------------------------------------------------
UTI Energy Corp.(a) 30,000 1,042,500
--------------------------------------------------------------
2,952,500
--------------------------------------------------------------
OIL & GAS (EXPLORATION &
PRODUCTION)-2.08%
Louis Dreyfus Natural Gas Corp.(a) 35,000 980,000
--------------------------------------------------------------
Newfield Exploration Co.(a) 25,000 1,015,625
--------------------------------------------------------------
1,995,625
--------------------------------------------------------------
RESTAURANTS-1.76%
CEC Entertainment, Inc.(a) 30,000 900,000
--------------------------------------------------------------
P.F. Chang's China Bistro, Inc.(a) 22,500 787,500
--------------------------------------------------------------
1,687,500
--------------------------------------------------------------
RETAIL (COMPUTERS &
ELECTRONICS)-0.96%
Tweeter Home Entertainment Group,
Inc.(a) 25,000 921,875
--------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
RETAIL (DISCOUNTERS)-0.70%
Ames Department Stores, Inc.(a) 37,500 $ 672,656
--------------------------------------------------------------
RETAIL (SPECIALTY)-0.81%
Linens 'n Things, Inc.(a) 25,000 771,875
--------------------------------------------------------------
RETAIL (SPECIALTY-APPAREL)-2.12%
Hot Topic, Inc.(a) 22,500 691,875
--------------------------------------------------------------
Pacific Sunwear of California(a) 17,500 596,094
--------------------------------------------------------------
Too Inc.(a) 25,000 748,438
--------------------------------------------------------------
2,036,407
--------------------------------------------------------------
SERVICES (COMPUTER SYSTEMS)-1.23%
Brocade Communications Systems,
Inc.(a) 9,500 1,178,000
--------------------------------------------------------------
TELECOMMUNICATIONS (CELLULAR/
WIRELESS)-6.05%
AirGate PCS Inc.(a) 12,500 1,071,875
--------------------------------------------------------------
Powerwave Technologies, Inc.(a) 12,000 2,496,750
--------------------------------------------------------------
Rural Cellular Corp.-Class A(a) 15,000 1,109,063
--------------------------------------------------------------
Western Wireless Corp.-Class A(a) 22,500 1,117,969
--------------------------------------------------------------
5,795,657
--------------------------------------------------------------
TELECOMMUNICATIONS (LONG
DISTANCE)-1.03%
Primus Telecommunications Group,
Inc.(a) 30,000 984,375
--------------------------------------------------------------
TEXTILES (APPAREL)-0.59%
Quicksilver, Inc.(a) 30,000 566,250
--------------------------------------------------------------
Total Common Stocks & Other
Equity Interests (Cost
$78,587,364) 79,288,913
--------------------------------------------------------------
MONEY MARKET FUNDS-18.31%
STIC Liquid Assets Portfolio(b) 8,778,515 8,778,515
--------------------------------------------------------------
STIC Prime Portfolio(b) 8,778,515 8,778,515
--------------------------------------------------------------
Total Money Market Funds (Cost
$17,557,030) 17,557,030
--------------------------------------------------------------
TOTAL INVESTMENTS-101.03% (Cost
$96,144,394) 96,845,943
--------------------------------------------------------------
LIABILITIES LESS OTHER ASSETS-(1.03%) (991,235)
--------------------------------------------------------------
NET ASSETS-100.00% $95,854,708
==============================================================
</TABLE>
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.
7
<PAGE> 10
STATEMENT OF ASSETS AND LIABILITIES
April 30, 2000
(Unaudited)
<TABLE>
<S> <C>
ASSETS:
Investments, at market value (cost $96,144,394) $96,845,943
------------------------------------------------------------
Receivables for:
Investments sold 269,054
------------------------------------------------------------
Capital stock sold 4,902,004
------------------------------------------------------------
Dividends 72,263
------------------------------------------------------------
Other assets 304,366
------------------------------------------------------------
Total assets 102,393,630
------------------------------------------------------------
LIABILITIES:
Payables for:
Investments purchased 6,247,307
------------------------------------------------------------
Capital stock reacquired 222,195
------------------------------------------------------------
Accrued advisory fees 19,484
------------------------------------------------------------
Accrued administrative services fees 4,098
------------------------------------------------------------
Accrued distribution fees 33,925
------------------------------------------------------------
Accrued directors' fees 667
------------------------------------------------------------
Accrued transfer agent fees 2,502
------------------------------------------------------------
Accrued operating expenses 8,744
------------------------------------------------------------
Total liabilities 6,538,922
------------------------------------------------------------
Net assets applicable to shares outstanding $95,854,708
============================================================
NET ASSETS:
Class A $52,464,030
============================================================
Class B $30,206,150
============================================================
Class C $13,184,528
============================================================
CAPITAL STOCK, $0.001 PAR VALUE PER SHARE:
Class A:
Authorized 750,000,000
------------------------------------------------------------
Outstanding 5,435,640
============================================================
Class B:
Authorized 750,000,000
------------------------------------------------------------
Outstanding 3,131,097
============================================================
Class C:
Authorized 750,000,000
------------------------------------------------------------
Outstanding 1,367,711
============================================================
Class A:
Net asset value and redemption price per
share $ 9.65
------------------------------------------------------------
Offering price per share:
(Net asset value of $9.65 divided by 94.50%) $ 10.21
============================================================
Class B:
Net asset value and offering price per share $ 9.65
============================================================
Class C:
Net asset value and offering price per share $ 9.64
============================================================
</TABLE>
STATEMENT OF OPERATIONS
For the period March 31, 2000 (date operations commenced) through April 30, 2000
(Unaudited)
<TABLE>
<S> <C>
INVESTMENT INCOME:
Dividends $ 72,305
------------------------------------------------------------
Interest 27,552
------------------------------------------------------------
Total investment income 99,857
------------------------------------------------------------
EXPENSES:
Advisory fees 44,457
------------------------------------------------------------
Administrative services fee 4,098
------------------------------------------------------------
Custodian fees 1,594
------------------------------------------------------------
Distribution fees -- Class A 11,307
------------------------------------------------------------
Distribution fees -- Class B 15,904
------------------------------------------------------------
Distribution fees -- Class C 6,744
------------------------------------------------------------
Transfer agent fees -- Class A 2,729
------------------------------------------------------------
Transfer agent fees -- Class B 1,352
------------------------------------------------------------
Transfer agent fees -- Class C 573
------------------------------------------------------------
Registration and filing fees 26,864
------------------------------------------------------------
Professional Fees 8,086
------------------------------------------------------------
Directors' fees 667
------------------------------------------------------------
Other 3,620
------------------------------------------------------------
Total expenses 127,995
------------------------------------------------------------
Less: Fees waived (24,973)
------------------------------------------------------------
Expenses paid indirectly (199)
------------------------------------------------------------
Net expenses 102,823
------------------------------------------------------------
Net investment income (loss) (2,966)
------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENT SECURITIES
Net realized gain (loss) from investment
securities (1,275,974)
------------------------------------------------------------
Change in net unrealized appreciation of
investment securities 701,549
------------------------------------------------------------
Net gain (loss) on investment securities (574,425)
------------------------------------------------------------
Net increase (decrease) in net assets resulting
from operations $ (577,391)
============================================================
</TABLE>
See Notes to Financial Statements.
8
<PAGE> 11
STATEMENT OF CHANGES IN NET ASSETS
For the period March 31, 2000 (date operations commenced) through April 30, 2000
(Unaudited)
<TABLE>
<CAPTION>
APRIL 30,
2000
-----------
<S> <C>
OPERATIONS:
Net investment income (loss) $ (2,966)
-------------------------------------------------------------------------
Net realized gain (loss) from investment securities (1,275,974)
-------------------------------------------------------------------------
Change in net unrealized appreciation of investment
securities 701,549
-------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
operations (577,391)
-------------------------------------------------------------------------
Share transactions-net:
Class A 53,451,054
-------------------------------------------------------------------------
Class B 30,013,781
-------------------------------------------------------------------------
Class C 12,967,264
-------------------------------------------------------------------------
Net increase in net assets 95,854,708
-------------------------------------------------------------------------
NET ASSETS:
Beginning of period --
-------------------------------------------------------------------------
End of period $95,854,708
=========================================================================
NET ASSETS CONSIST OF:
Capital (par value and additional paid-in) $96,432,099
-------------------------------------------------------------------------
Undistributed net investment income (loss) (2,966)
-------------------------------------------------------------------------
Undistributed net realized gain (loss) from investment
securities (1,275,974)
-------------------------------------------------------------------------
Unrealized appreciation of investment securities 701,549
-------------------------------------------------------------------------
$95,854,708
=========================================================================
</TABLE>
See Notes to Financial Statements.
9
<PAGE> 12
NOTES TO FINANCIAL STATEMENTS
April 30, 2000
(Unaudited)
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES
AIM Emerging 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 on March 31, 2000 and 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.
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 0.85% of
the first $1 billion of the Fund's average daily net assets plus 0.80% of the
Fund's average daily net assets over $1 billion. During the period March 31,
2000 (date operations commenced) through April 30, 2000, AIM waived fees of
$24,973.
10
<PAGE> 13
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 March 31, 2000 (date
operations commenced) through April 30, 2000, AIM was paid $4,098 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. During the period March 31, 2000 (date
operations commenced) through April 30, 2000, AFS was paid $2,830 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 March 31, 2000
(date operations commenced) through April 30, 2000, the Class A, Class B and
Class C shares paid AIM Distributors $11,307, $15,904 and $6,744, respectively,
as compensation under the Plans.
AIM Distributors received commissions of $111,389 from sales of the Class A
shares of the Fund during the period March 31, 2000 (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 March 31, 2000 (date operations commenced) through
April 30, 2000, AIM Distributors received $94 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.
NOTE 3-INDIRECT EXPENSES
During the period March 31, 2000 (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 $55 and $144,
respectively, under expense offset arrangements. The effect of the above
arrangements resulted in a reduction of the Fund's total expenses of $199 during
the period March 31, 2000 (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
March 31, 2000 (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 March 31, 2000 (date operations
commenced) through April 30, 2000 was $87,640,531 and $7,777,193, 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 $ 5,794,489
---------------------------------------------------------
Aggregate unrealized (depreciation) of
investment securities (5,092,940)
---------------------------------------------------------
Net unrealized appreciation of investment
securities $ 701,549
=========================================================
</TABLE>
Investments have the same cost for tax and financial
statement purposes.
11
<PAGE> 14
NOTE 7-CAPITAL STOCK
Changes in capital stock outstanding during the period March 31, 2000 (date
operations commenced) through April 30, 2000 were as follows:
<TABLE>
<CAPTION>
APRIL 30, 2000
------------------------
SHARES AMOUNT
--------- -----------
<S> <C> <C>
Sold:
Class A 6,370,398 $61,263,099
--------------------------------------------------------------------------------------
Class B 3,327,477 31,768,297
--------------------------------------------------------------------------------------
Class C 1,391,378 13,175,840
--------------------------------------------------------------------------------------
Reacquired:
Class A (934,758) (7,812,045)
--------------------------------------------------------------------------------------
Class B (196,380) (1,754,516)
--------------------------------------------------------------------------------------
Class C (23,667) (208,576)
--------------------------------------------------------------------------------------
9,934,448 $96,432,099
======================================================================================
</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
---------- ---------- ----------
MARCH 31, MARCH 31, MARCH 31,
2000 2000 2000
(DATE (DATE (DATE
OPERATIONS OPERATIONS OPERATIONS
COMMENCED) COMMENCED) 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 gains (losses) on securities (both realized and
unrealized) (0.35) (0.35) (0.36)
----------------------------------------------------------- ------- ------- -------
Total from investment operations (0.35) (0.35) (0.36)
----------------------------------------------------------- ------- ------- -------
Net asset value, end of period $ 9.65 $ 9.65 $ 9.64
=========================================================== ======= ======= =======
Total return(a) (3.50)% (3.50)% (3.60)%
=========================================================== ======= ======= =======
Ratios/supplemental data:
Net assets, end of period (000s omitted) $52,464 $30,206 $13,185
=========================================================== ======= ======= =======
Ratio of expenses to average net assets:
With fee waivers 1.61%(b) 2.25%(b) 2.25%(b)
----------------------------------------------------------- ------- ------- -------
Without fee waivers 2.06%(b) 2.70%(b) 2.70%(b)
=========================================================== ======= ======= =======
Ratio of net investment income (loss) to average net assets 0.21%(b) (0.43)%(b) (0.43)%(b)
=========================================================== ======= ======= =======
Portfolio turnover rate 19% 19% 19%
=========================================================== ======= ======= =======
</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 $38,141,599,
$18,777,379 and $7,961,995 for Class A, Class B and Class C, respectively.
12
<PAGE> 15
<TABLE>
<CAPTION>
BOARD OF DIRECTORS OFFICERS OFFICE OF THE FUND
<S> <C> <C>
Charles T. Bauer Charles T. Bauer 11 Greenway Plaza
Chairman Chairman Suite 100
A I M Management Group Inc. Houston, TX 77046
Robert H. Graham
Bruce L. Crockett President INVESTMENT ADVISOR
Director
ACE Limited; Carol F. Relihan A I M Advisors, Inc.
Formerly Director, President, and Senior Vice President and Secretary 11 Greenway Plaza
Chief Executive Officer Suite 100
COMSAT Corporation Gary T. Crum Houston, TX 77046
Senior Vice President
Owen Daly II TRANSFER AGENT
Director Edgar M. Larsen
Cortland Trust Inc. Senior Vice President A I M Fund Services, Inc.
P.O. Box 4739
Edward K. Dunn Jr. Dana R. Sutton Houston, TX 77210-4739
Chairman, Mercantile Mortgage Corp.; Vice President and Treasurer
Formerly Vice Chairman and President, CUSTODIAN
Mercantile-Safe Deposit & Trust Co.; and Melville B. Cox
President, Mercantile Bankshares Vice President State Street Bank and Trust Company
225 Franklin Street
Jack Fields Mary J. Benson Boston, MA 02110
Chief Executive Officer Assistant Vice President and
Texana Global, Inc.; Assistant Treasurer COUNSEL TO THE FUND
Formerly Member
of the U.S. House of Representatives Sheri Morris Ballard Spahr
Assistant Vice President and Andrews & Ingersoll, LLP
Carl Frischling Assistant Treasurer 1735 Market Street
Partner Philadelphia, PA 19103
Kramer, Levin, Naftalis & Frankel LLP Renee A. Friedli
Assistant Secretary COUNSEL TO THE DIRECTORS
Robert H. Graham
President and Chief Executive Officer P. Michelle Grace Kramer, Levin, Naftalis & Frankel LLP
A I M Management Group Inc. Assistant Secretary 919 Third Avenue
New York, NY 10022
Prema Mathai-Davis Nancy L. Martin
Chief Executive Officer, YWCA of the U.S.A. Assistant Secretary DISTRIBUTOR
Lewis F. Pennock Ofelia M. Mayo A I M Distributors, Inc.
Attorney Assistant Secretary 11 Greenway Plaza
Suite 100
Louis S. Sklar Lisa A. Moss Houston, TX 77046
Executive Vice President Assistant Secretary
Hines Interests
Limited Partnership Kathleen J. Pflueger
Assistant Secretary
Samuel D. Sirko
Assistant Secretary
</TABLE>
<PAGE> 16
THE AIM FAMILY OF FUNDS--Registered Trademark--
<TABLE>
<S> <C> <C>
GROWTH FUNDS 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 since
AIM Blue Chip Fund AIM Asian Growth Fund 1976 and managed approximately $176 billion in
AIM Capital Development Fund AIM Developing Markets Fund assets for more than 7.4 million shareholders,
AIM Constellation Fund(1) AIM Euroland Growth Fund(5) including individual investors, corporate
AIM Dent Demographic Trends Fund AIM European Development Fund clients and financial institutions, as of March
AIM Emerging Growth Fund AIM International Equity Fund 31, 2000.
AIM Large Cap Growth Fund AIM Japan Growth Fund The AIM Family of Funds--Registered
AIM Large Cap Opportunities Fund AIM Latin American Growth Fund Trademark--is distributed nationwide, and AIM
AIM Mid Cap Equity Fund today is the eighth-largest mutual fund complex
AIM Mid Cap Growth Fund GLOBAL GROWTH FUNDS in the United States in assets under
AIM Mid Cap Opportunities Fund(2) AIM Global Aggressive Growth Fund management, according to Strategic Insight, an
AIM Select Growth Fund AIM Global Growth Fund independent mutual fund monitor.
AIM Small Cap Growth Fund(3) AIM Global Trends Fund(6)
AIM Small Cap Opportunities Fund(4)
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.
[DALBAR LOGO APPEARS HERE] [AIM LOGO APPEARS HERE]
--Registered Trademark--
INVEST WITH DISCIPLINE
--Registered Trademark--
EMG-SAR-1
AIM Distributors, Inc.
