<PAGE> 1
ANNUAL REPORT / OCTOBER 31 2000
AIM BLUE CHIP FUND
[COVER IMAGE]
[AIM LOGO APPEARS HERE]
--Registered Trademark--
<PAGE> 2
[COVER IMAGE]
-------------------------------------
THE SWING BY PIERRE-AUGUSTE RENOIR
RENOIR BEGAN HIS CAREER AS A PAINTER IN A PORCELAIN FACTORY,
GAINING EXPERIENCE WITH THE COLORS THAT WOULD DISTINGUISH HIS
IMPRESSIONIST WORK AND LEARNING THE IMPORTANCE OF GOOD
CRAFTSMANSHIP. HIS PAINTINGS ARE AMONG THE BEST-KNOWN IN THE
WORLD FOR THEIR SIGNIFICANCE AND VALUE--AS ARE MANY OF THE
BLUE-CHIP COMPANIES IN WHICH THIS FUND INVESTS.
-------------------------------------
AIM Blue Chip Fund is for shareholders who seek long-term growth of capital with
a secondary objective of current income by investing in a relatively
conservative investment portfolio that contains the stocks of top-performing
companies within designated business sectors.
ABOUT FUND PERFORMANCE AND PORTFOLIO DATA THROUGHOUT THIS REPORT:
o AIM Blue Chip Fund's performance figures are historical, and they reflect
the reinvestment of distributions and changes in net asset value.
o When sales charges are included in performance figures, Class A share
performance reflects the maximum 5.50% sales charge, and Class B and Class C
share performance reflects the applicable contingent deferred sales charge
(CDSC) for the period involved. The CDSC on Class B shares declines from 5%
beginning at the time of purchase to 0% at the beginning of the seventh
year. The CDSC on Class C shares is 1% for the first year after purchase.
The performance of the fund's Class B and Class C shares will differ from
that of its Class A shares due to different sales-charge structure and class
expenses.
o In addition to the returns as of the close of the fiscal year found on page
4, industry regulations require us to provide average annual total returns
(including sales charges) as of 9/30/00, the most recent calendar
quarter-end, which were:
================================================================================
CLASS A SHARES
Inception (2/4/87) 14.91%
10 Years 18.29
5 Years 21.94
1 Year 15.73
CLASS B SHARES
Inception (10/1/96) 22.23%
1 Year 16.60
CLASS C SHARES
Inception (8/4/97) 17.72%
1 Year 20.63
================================================================================
o The fund's investment return and principal value will fluctuate, so an
investor's shares, when redeemed, may be worth more or less than their
original cost.
ABOUT INDEXES AND OTHER PERFORMANCE BENCHMARKS CITED IN THIS REPORT:
o The unmanaged Russell 1000 Index represents the performance of the stocks of
large-capitalization companies.
o The unmanaged Standard and Poor's Composite Index of 500 Stocks (the S&P
500) represents the performance of the U.S. stock market.
o An investment cannot be made in an index. Unless otherwise indicated, index
results include reinvested dividends, and they do not reflect sales charges.
AN INVESTMENT IN THE FUND IS NOT A DEPOSIT OF A BANK AND IS NOT INSURED OR
GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY OTHER
GOVERNMENT AGENCY. THERE IS A RISK THAT YOU COULD LOSE SOME OR ALL OF
YOUR MONEY.
This report may be distributed only to current shareholders or to persons
who have received a current prospectus of the fund.
AIM BLUE CHIP FUND
<PAGE> 3
ANNUAL REPORT / CHAIRMAN'S LETTER
Dear Fellow Shareholder:
It's an honor to address you as the AIM Funds' new chairman.
I feel privileged to succeed Ted Bauer, who recently retired
[PHOTO OF from the funds' board and will soon retire as A I M
Robert H. Management Group's chairman after a long, successful career
Graham in the investment industry. Ted has always shown the highest
APPEARS HERE] degree of integrity and commitment to excellence, and I have
always admired him. I'm also proud to be part of the team
that launched AIM almost 25 years ago. From the beginning,
AIM has been a very people-oriented, service-minded company,
and I plan to carry on the tradition for our shareholders,
financial advisors and employees.
UNCERTAIN MARKETS
The markets this year have been particularly volatile and
confusing for many investors, especially for those who have
only experienced the bull market of the 1990s. After almost
a decade of double-digit returns, the S&P 500 was down 1.81% year-to-date as of
October 31, 2000. But market returns in the 20% to 30% range, such as we have
seen in recent years, are not typical. If you expect these kinds of returns
every year, you'll be disappointed. Historically, markets decline in one out of
every four years. What we're seeing now is a normal downturn.
This appears to be a worldwide trend. Throughout 2000, overseas markets
generally have been more turbulent than their U.S. counterpart.
REASONS FOR OPTIMISM
While investors may need to temper their expectations, there are plenty of
reasons to be optimistic. Economic fundamentals remain strong, and many believe
that the Federal Reserve Board may have succeeded in bringing the economy to a
"soft landing." Gross domestic product growth slowed to 2.4% in the third
quarter from the rapid pace of about 7% a year ago. With this slowdown, it seems
unlikely that the Fed will raise interest rates in the near future, and stable
interest rates provide a solid environment for both stocks and bonds.
In Europe, the region's economic and investment future continues to look
bright despite the weak euro. Restructuring, merger activity and tax reform bode
well for European economies. In Asia, most analysts think the continuing
strength of the U.S. economy will help boost Asian stock markets.
THE VALUE OF ADVICE
The current environment illustrates the value of professional money management.
Knowing when to buy and sell takes expertise and discipline even in the best of
markets. During downturns, many investors may be tempted to make decisions based
on emotions instead of strategy. The wisest choice is to rely on a professional
money manager to make these decisions for you.
In these uncertain times, it's important to keep market volatility in
perspective. Mutual fund investing should be a long-term endeavor. Remember why
you're investing, whether it's for your retirement or your child's education,
and think about your time frame. If you're unsure about whether your investments
can meet your goals, visit your financial advisor for help.
In the following pages, your fund's portfolio managers discuss market
activity, how they managed your fund during the fiscal year and their near-term
outlook. 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 for your continued participation in The AIM Family of Funds
--Registered Trademark--.
Sincerely,
/s/ ROBERT H. GRAHAM
Robert H. Graham
Chairman
-------------------------------------
THE CURRENT
ENVIRONMENT
ILLUSTRATES THE VALUE
OF PROFESSIONAL
MONEY MANAGEMENT.
KNOWING WHEN TO BUY
AND SELL TAKES
EXPERTISE AND
DISCIPLINE EVEN IN THE
BEST OF MARKETS.
-------------------------------------
AIM BLUE CHIP FUND
<PAGE> 4
ANNUAL REPORT / MANAGERS' OVERVIEW
AIM BLUE CHIP FUND OVERCOMES MARKET VOLATILITY, BEATS INDEXES
HOW DID AIM BLUE CHIP FUND PERFORM?
For the fiscal year ended October 31, 2000, AIM Blue Chip Fund performed well
despite the volatility that affected stock markets during most of 2000. The
fund's total return was 11.60%, 10.87% and 10.83% for Class A, Class B and Class
C shares, respectively--surpassing the fund's benchmark, the Russell 1000 Index,
which returned 9.06%. Returns for the fund were calculated at net asset value,
that is, excluding sales charges.
The fund's performance for the entire fiscal year includes significant gains
made in late 1999 and early 2000 when the stock market performed quite strongly;
during the second half of the fiscal year, performance was adversely affected by
the sell-off of technology stocks and other market difficulties. Nonetheless,
the fund's total net assets increased from $4.54 billion on October 31, 1999 to
$6.63 billion at the close of the fiscal year.
WHAT WERE THE MAJOR TRENDS IN THE FINANCIAL MARKETS?
U.S. stock markets were volatile for most of 2000, with significant sell-offs in
March through May and again in August through October. In the spring, investors
worried that the Federal Reserve Board (the Fed) would continue raising interest
rates to slow torrid economic growth and to forestall inflation. The Fed raised
the federal funds rate (the rate banks charge one another for overnight loans)
from 6.0% to 6.5% in May--the sixth increase since June 1999. But with data
showing that economic growth was slowing and that inflation was in check, the
Fed kept rates unchanged at its June, August and October meetings.
Early in 2000, investors became concerned that many technology stocks that
had propelled the markets higher in 1999 might have become overvalued. In late
summer and fall, rising oil prices and Middle East tensions made investors
skittish, sparking a second major stock-market sell-off. Investors also became
concerned about a string of corporate earnings warnings and disappointing
third-quarter earnings announcements by a number of major corporations.
Higher oil prices and a weak euro negatively affected corporate profits.
GIVEN MARKET VOLATILITY, HOW DID YOU MANAGE THE FUND?
In keeping with our time-tested investment style, the fund benefited from its
exposure to both growth and value stocks and from its required representation
across all sectors. We reduced the fund's holdings from 93 to 76 stocks during
the course of the fiscal year, choosing to concentrate on those stocks in which
we were most confident. Indeed, while the fund's overall portfolio remained
broadly diversified across all sectors, its top 10 holdings rose from less than
25% to just over 31% of the total portfolio, based on total net assets.
WHAT SECTORS HELPED AND HURT FUND PERFORMANCE?
Throughout the fiscal year, the fund remained overweighted in technology stocks.
We continue to believe that the stocks of strong, well-established technology
companies have long-term appreciation potential. While tech stocks overall
performed poorly for the second half of the fiscal year, many of the fund's
holdings added value to the fund. That's because the fund has avoided many
overpriced, profitless technology stocks that were hardest hit during the year's
tech correction.
Health-care stocks generally, and major pharmaceutical stocks in particular,
contributed positively to fund performance, as did the fund's utility and
capital-goods stocks. Shareholders further benefited from the fund's
underweighted position in communication-services, basic-materials and
consumer-staples stocks.
While the fund reduced its consumer-cyclical holdings as the rise in oil
prices and concerns about inflation caused a
================================================================================
FUND VS. INDEX
For the fiscal year ended 10/31/00,
excluding sales charges
================================================================================
FUND CLASS A SHARES 11.60%
FUND CLASS B SHARES 10.87%
FUND CLASS C SHARES 10.83%
RUSSELL 1000 INDEX 9.06%
================================================================================
================================================================================
GROWTH OF NET ASSETS
in billions
================================================================================
10/31/99 $4.54
10/31/00 $6.63
================================================================================
See important fund and index disclosures inside front cover.
AIM BLUE CHIP FUND
2
<PAGE> 5
ANNUAL REPORT / MANAGERS' OVERVIEW
slowdown in consumer spending, this sector adversely affected overall fund
performance.
WHAT WERE SOME OF THE FUND'S TOP HOLDINGS?
The fund's major holdings at the close of the fiscal year included:
o General Electric--a diversified company that produces everything from
locomotives and household appliances to nuclear reactors and medical-imaging
equipment. Half its sales come from its financial arm, GE Capital Services.
o EMC--the leading maker of mainframe computer disk-memory hardware and
software. While storage hardware accounts for about 80% of its sales, EMC
continues to boost its presence in software and related services.
o American International Group--one of the world's largest insurance
companies. AIG is a leading provider of property/ casualty, life and specialty
insurance and is a growing presence in financial services and asset management.
o Citigroup--formed by the merger of one of the world's largest banks
(Citicorp) and one of the world's largest insurers (Travelers Group). The
world's largest financial-services company, Citigroup offers credit card,
banking, insurance and investment services in some 100 countries.
WHAT IS YOUR OUTLOOK FOR THE FUTURE?
At the close of the fiscal year, we remained cautiously optimistic about the
direction of the U.S. economy. While economic growth is slowing, the economy
continues to grow at a sustainable pace. Unemployment dropped to 3.9% in
September--matching a 30-year low. Consumer spending continues to grow, albeit
at a somewhat more subdued pace than last year, and except for the potential
threat of higher oil prices, inflation remains in check. Corporate profits,
while declining, remain impressive; indeed, fourth-quarter profits among S&P 500
companies are expected to grow from year-ago levels. And the federal
government's record $236 billion budget surplus for fiscal year 2000 will allow
it to continue to retire debt and reduce its future borrowing costs.
Interest rates seem to have stabilized as the Fed has taken a respite from
its string of interest-rate increases, which have roiled the markets for more
than a year. However, because of a degree of uncertainty surrounding short-term
economic trends and international developments, markets may continue to be
volatile. In such an environment, we believe the fund is well positioned because
of its broad diversification and long-term investment strategy.
[ART WORK]
PORTFOLIO COMPOSITION
As of 10/31/00, based on total net assets
<TABLE>
<CAPTION>
=========================================================================================================
TOP 10 EQUITY HOLDINGS TOP 10 INDUSTRIES
---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
1. General Electric Co. 5.24% 1. Health Care (Drugs - Major Pharmaceuticals) 9.16%
2. Cisco Systems, Inc. 3.70 2. Computers (Software & Services) 7.75
3. Pfizer Inc. 3.55 3. Electrical Equipment 6.62
4. Tyco International Ltd. (Bermuda) 3.16 4. Financial (Diversified) 6.02
5. EMC Corp. 2.96 5. Communications Equipment 5.94
6. Sun Microsystems, Inc. 2.84 6. Manufacturing (Diversified) 4.01
7. American International Group, Inc. 2.66 7. Computers (Hardware) 3.98
8. Citigroup Inc. 2.50 8. Computers (Networking) 3.70
9. Exxon Mobil Corp. 2.46 9. Retail (General Merchandise) 3.19
10. VERITAS Software Corp. 2.34 10. Electronics (Semiconductors) 3.01
The fund's portfolio is subject to change, and there is no assurance that the
fund will continue to hold any particular security.
=========================================================================================================
</TABLE>
-------------------------------------
READ THIS REPORT ONLINE!
Early in 2001, a new service will be
available--electronic delivery of fund
reports and prospectuses. Soon, you can
read the same AIM report you are reading
now--online. Once you sign up for the
service, we will send you a link to the
report via e-mail. If you choose to receive
your reports online, you will not receive a
paper copy by mail. You may cancel the
service at any time by visiting our Web site.
Please visit our Web site at
www.aimfunds.com and go to "Your AIM
Account." Log into your account and then
click on the "View Other Account Options"
dropdown menu and select "eDelivery."
-------------------------------------
See important fund and index disclosures inside front cover.
AIM BLUE CHIP FUND
3
<PAGE> 6
ANNUAL REPORT / PERFORMANCE HISTORY
YOUR FUND'S LONG-TERM PERFORMANCE
RESULTS OF A $10,000 INVESTMENT
AIM BLUE CHIP FUND VS. BENCHMARK INDEX
2/4/87-10/31/00
in thousands
================================================================================
AIM Blue Chip Russell
Fund, Class A Shares 1000 Index
--------------------------------------------------------------------------------
2/87 $9,451.00 $10,000.00
10/87 8,861.00 9,202.00
10/88 9,612.00 10,640.00
10/89 11,360.00 13,405.00
10/90 11,770.00 12,133.00
10/91 14,997.00 16,572.00
10/92 16,498.00 18,355.00
10/93 17,314.00 21,252.00
10/94 18,788.00 21,944.00
10/95 23,265.00 27,828.00
10/96 28,971.00 34,207.00
10/97 37,432.00 45,098.00
10/98 45,190.00 53,988.00
10/99 58,298.00 67,800.00
10/00 65,059.00 73,941.00
Source: Lipper, Inc.
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.
ABOUT THIS CHART
The chart compares your fund's Class A shares to a benchmark index. It is
intended to give you an idea of how your fund performed compared to this index
over the period 2/4/87-10/31/00. (Data for the index is for the period
1/31/87-10/31/00.)
It is important to understand the differences between your fund and this
index. An index measures the performance of a hypothetical portfolio. A market
index such as the Russell 1000 Index is not managed, incurring no sales charges,
expenses or fees. If you could buy all the securities that make up a market
index, you would incur expenses that would affect your investment's return.
AVERAGE ANNUAL TOTAL RETURNS
As of 10/31/00, including sales charges
================================================================================
CLASS A SHARES
Inception (2/4/87) 14.61%
10 Years 18.04
5 Years 21.53
1 Year 5.45*
*11.60%, excluding sales charges
CLASS B SHARES
Inception (10/1/96) 21.10%
1 Year 5.87*
*10.87%, excluding CDSC
CLASS C SHARES
Inception (8/4/97) 16.29%
1 Year 9.83*
*10.83%, excluding CDSC
================================================================================
YOUR FUND'S TOTAL RETURN INCLUDES SALES CHARGES, EXPENSES AND MANAGEMENT FEES.
THE PERFORMANCE OF THE FUND'S CLASS B AND CLASS C SHARES WILL DIFFER FROM THAT
OF ITS CLASS A SHARES DUE TO DIFFERING FEES AND EXPENSES. FOR FUND PERFORMANCE
CALCULATIONS AND A DESCRIPTION OF THE INDEX CITED ON THIS PAGE, PLEASE SEE THE
INSIDE FRONT COVER.
AIM BLUE CHIP FUND
4
<PAGE> 7
SCHEDULE OF INVESTMENTS
October 31, 2000
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
COMMON STOCKS & OTHER EQUITY
INTERESTS-92.79%
AIRLINES-0.25%
Delta Air Lines, Inc. 350,000 $ 16,537,500
===============================================================
BANKS (MAJOR REGIONAL)-1.34%
Fifth Third Bancorp 825,000 42,384,375
---------------------------------------------------------------
State Street Corp. 375,000 46,777,500
===============================================================
89,161,875
===============================================================
BANKS (MONEY CENTER)-1.32%
Chase Manhattan Corp. (The) 1,925,000 87,587,500
===============================================================
BEVERAGES (NON-ALCOHOLIC)-0.41%
Coca-Cola Co. (The) 450,000 27,168,750
===============================================================
BIOTECHNOLOGY-1.64%
Amgen Inc.(a) 1,875,000 108,632,812
===============================================================
BROADCASTING (TELEVISION, RADIO &
CABLE)-1.40%
AT&T Corp.-Liberty Media
Corp.-Class A 3,000,000 54,000,000
---------------------------------------------------------------
Comcast Corp.-Class A(a) 950,000 38,712,500
===============================================================
92,712,500
===============================================================
CHEMICALS-0.83%
Air Products & Chemicals, Inc. 800,000 29,850,000
---------------------------------------------------------------
Du Pont (E.I.) de Nemours & Co. 550,000 24,956,250
===============================================================
54,806,250
===============================================================
COMMUNICATIONS EQUIPMENT-5.94%
ADC Telecommunications, Inc.(a) 1,150,000 24,581,250
---------------------------------------------------------------
Comverse Technology, Inc.(a) 470,000 52,522,500
---------------------------------------------------------------
JDS Uniphase Corp.(a) 1,200,000 97,650,000
---------------------------------------------------------------
Nokia Oyj-ADR (Finland) 1,500,000 64,125,000
---------------------------------------------------------------
Nortel Networks Corp. (Canada) 3,400,000 154,700,000
===============================================================
393,578,750
===============================================================
COMPUTERS (HARDWARE)-3.98%
Gateway, Inc.(a) 550,000 28,385,500
---------------------------------------------------------------
International Business Machines
Corp. 475,000 46,787,500
---------------------------------------------------------------
Sun Microsystems, Inc.(a) 1,700,000 188,487,500
===============================================================
263,660,500
===============================================================
COMPUTERS (NETWORKING)-3.70%
Cisco Systems, Inc.(a) 4,550,000 245,131,250
===============================================================
COMPUTERS (PERIPHERALS)-2.95%
EMC Corp.(a) 2,200,000 195,937,500
===============================================================
COMPUTERS (SOFTWARE &
SERVICES)-7.75%
America Online, Inc.(a) 1,125,000 56,733,750
---------------------------------------------------------------
Microsoft Corp.(a) 2,000,000 137,750,000
---------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
COMPUTERS (SOFTWARE & SERVICES)-(CONTINUED)
Oracle Corp.(a) 4,200,000 $ 138,600,000
---------------------------------------------------------------
VERITAS Software Corp.(a) 1,100,000 155,117,187
---------------------------------------------------------------
Yahoo! Inc.(a) 435,000 25,501,875
===============================================================
513,702,812
===============================================================
ELECTRIC COMPANIES-0.72%
Duke Power Co. 362,500 31,333,594
---------------------------------------------------------------
Edison International 700,000 16,712,500
===============================================================
48,046,094
===============================================================
ELECTRICAL EQUIPMENT-6.62%
General Electric Co. 6,341,400 347,587,987
---------------------------------------------------------------
Sanmina Corp.(a) 800,000 91,450,000
===============================================================
439,037,987
===============================================================
ELECTRONICS
(SEMICONDUCTORS)-3.01%
Intel Corp. 1,250,000 56,250,000
---------------------------------------------------------------
PMC-Sierra, Inc. (Canada)(a) 185,000 31,357,500
---------------------------------------------------------------
Texas Instruments Inc. 700,000 34,343,750
---------------------------------------------------------------
Xilinx, Inc.(a) 1,075,000 77,870,312
===============================================================
199,821,562
===============================================================
ENTERTAINMENT-2.23%
Time Warner Inc. 1,050,000 79,705,500
---------------------------------------------------------------
Viacom Inc.-Class B(a) 1,200,000 68,250,000
===============================================================
147,955,500
===============================================================
EQUIPMENT (SEMICONDUCTOR)-0.60%
Applied Materials, Inc.(a) 750,000 39,843,750
===============================================================
FINANCIAL (DIVERSIFIED)-6.02%
American Express Co. 1,575,000 94,500,000
---------------------------------------------------------------
Citigroup Inc. 3,150,000 165,768,750
---------------------------------------------------------------
Fannie Mae 1,100,000 84,700,000
---------------------------------------------------------------
Freddie Mac 900,000 54,000,000
===============================================================
398,968,750
===============================================================
HEALTH CARE (DIVERSIFIED)-1.27%
American Home Products Corp. 675,000 42,862,500
---------------------------------------------------------------
Johnson & Johnson 450,000 41,456,250
===============================================================
84,318,750
===============================================================
HEALTH CARE (DRUGS-MAJOR
PHARMACEUTICALS)-9.16%
Allergan, Inc. 1,200,000 100,875,000
---------------------------------------------------------------
Merck & Co., Inc. 800,000 71,950,000
---------------------------------------------------------------
Pfizer Inc. 5,450,000 235,371,875
---------------------------------------------------------------
Pharmacia Corp. 2,025,000 111,375,000
---------------------------------------------------------------
</TABLE>
5
<PAGE> 8
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
HEALTH CARE (DRUGS-MAJOR
PHARMACEUTICALS)-(CONTINUED)
Schering-Plough Corp. 1,700,000 $ 87,868,750
===============================================================
607,440,625
===============================================================
HEALTH CARE (MEDICAL PRODUCTS &
SUPPLIES)-2.24%
Medtronic, Inc. 1,975,000 107,267,187
---------------------------------------------------------------
PE Corp-PE Biosystems Group 350,000 40,950,000
===============================================================
148,217,187
===============================================================
HOUSEHOLD PRODUCTS (NON-DURABLES)-0.66%
Colgate-Palmolive Co. 750,000 44,070,000
===============================================================
INSURANCE (MULTI-LINE)-2.66%
American International Group,
Inc. 1,800,000 176,400,000
===============================================================
INVESTMENT
BANKING/BROKERAGE-2.99%
Merrill Lynch & Co., Inc. 1,000,000 70,000,000
---------------------------------------------------------------
Morgan Stanley Dean Witter & Co. 1,600,000 128,500,000
===============================================================
198,500,000
===============================================================
MANUFACTURING (DIVERSIFIED)-4.01%
Tyco International Ltd. (Bermuda) 3,700,000 209,743,750
---------------------------------------------------------------
United Technologies Corp. 800,000 55,850,000
===============================================================
265,593,750
===============================================================
NATURAL GAS-1.70%
El Paso Energy Corp. 650,000 40,746,875
---------------------------------------------------------------
Enron Corp. 875,000 71,804,688
===============================================================
112,551,563
===============================================================
OIL & GAS (DRILLING & EQUIPMENT)-1.15%
Halliburton Co. 875,000 32,429,688
---------------------------------------------------------------
Schlumberger Ltd. 575,000 43,771,875
===============================================================
76,201,563
===============================================================
OIL (INTERNATIONAL
INTEGRATED)-2.95%
Exxon Mobil Corp. 1,825,000 162,767,188
---------------------------------------------------------------
Royal Dutch Petroleum Co.-ADR-New
York Shares (Netherlands) 550,000 32,656,250
===============================================================
195,423,438
===============================================================
PAPER & FOREST PRODUCTS-0.29%
Bowater Inc. 350,000 18,943,750
===============================================================
POWER PRODUCERS
(INDEPENDENT)-0.42%
Calpine Corp.(a) 355,000 28,022,813
===============================================================
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
RAILROADS-0.28%
Canadian National Railway Co.
(Canada) 600,000 $ 18,900,000
===============================================================
RETAIL (BUILDING SUPPLIES)-1.62%
Home Depot, Inc. (The) 2,500,000 107,500,000
===============================================================
RETAIL (FOOD CHAINS)-1.18%
Safeway Inc.(a) 1,425,000 77,929,688
===============================================================
RETAIL (GENERAL
MERCHANDISE)-3.19%
Costco Wholesale Corp.(a) 1,300,000 47,612,500
---------------------------------------------------------------
Target Corp. 2,200,000 60,775,000
---------------------------------------------------------------
Wal-Mart Stores, Inc. 2,275,000 103,228,125
===============================================================
211,615,625
===============================================================
SERVICES
(ADVERTISING/MARKETING)-0.65%
Interpublic Group of Companies,
Inc. (The) 1,000,000 42,937,500
===============================================================
SERVICES (DATA PROCESSING)-1.71%
First Data Corp. 1,325,000 66,415,625
---------------------------------------------------------------
Fiserv, Inc.(a) 900,000 47,193,750
===============================================================
113,609,375
===============================================================
TELECOMMUNICATIONS (CELLULAR/
WIRELESS)-1.16%
Vodafone Airtouch PLC-ADR (United
Kingdom) 1,800,000 76,612,500
===============================================================
TELECOMMUNICATIONS (LONG
DISTANCE)-0.45%
WorldCom, Inc.(a) 1,250,000 29,687,500
===============================================================
TELEPHONE-2.34%
BellSouth Corp. 700,000 33,818,750
---------------------------------------------------------------
SBC Communications Inc. 2,100,000 121,143,750
===============================================================
154,962,500
===============================================================
Total Common Stocks & Other
Equity Interests (Cost
$4,395,745,182) 6,151,729,769
===============================================================
MONEY MARKET FUNDS-6.81%
STIC Liquid Assets Portfolio(b) 225,743,493 225,743,493
---------------------------------------------------------------
STIC Prime Portfolio(b) 225,743,493 225,743,493
===============================================================
Total Money Market Funds
(Cost $451,486,986) 451,486,986
===============================================================
TOTAL INVESTMENTS-99.60% (Cost
$4,847,232,168) 6,603,216,755
===============================================================
OTHER ASSETS LESS
LIABILITIES-0.40% 26,572,233
===============================================================
NET ASSETS-100.00% $6,629,788,988
_______________________________________________________________
===============================================================
</TABLE>
Investment Abbreviation:
ADR - American Depositary Receipt
Notes to Schedule of Investments:
(a)Non-income producing security.
(b)The money market fund and the Fund are affiliated by having the same
investment advisor.
See Notes to Financial Statements.
6
<PAGE> 9
STATEMENT OF ASSETS AND LIABILITIES
October 31, 2000
<TABLE>
<S> <C>
ASSETS:
Investments, at market value (cost
$4,847,232,168) $6,603,216,755
-------------------------------------------------------------
Receivables for:
Investments sold 35,680,271
-------------------------------------------------------------
Fund shares sold 29,699,243
-------------------------------------------------------------
Dividends and interest 3,794,604
-------------------------------------------------------------
Collateral for securities loaned 175,209,900
-------------------------------------------------------------
Investment for deferred compensation plan 43,677
=============================================================
Total assets 6,847,644,450
=============================================================
LIABILITIES:
Payables for:
Investments purchased 26,918,854
-------------------------------------------------------------
Collateral upon return of securities loaned 175,209,900
-------------------------------------------------------------
Fund shares reacquired 6,601,695
-------------------------------------------------------------
Deferred compensation plan 43,677
-------------------------------------------------------------
Accrued advisory fees 3,412,139
-------------------------------------------------------------
Accrued administrative services fees 25,814
-------------------------------------------------------------
Accrued distribution fees 4,231,844
-------------------------------------------------------------
Accrued trustees' fees 1,462
-------------------------------------------------------------
Accrued transfer agent fees 1,155,715
-------------------------------------------------------------
Accrued operating expenses 254,362
=============================================================
Total liabilities 217,855,462
_____________________________________________________________
=============================================================
Net assets applicable to shares outstanding $6,629,788,988
_____________________________________________________________
=============================================================
NET ASSETS:
Class A $3,163,453,384
_____________________________________________________________
=============================================================
Class B $2,746,149,137
_____________________________________________________________
=============================================================
Class C $ 720,186,467
_____________________________________________________________
=============================================================
SHARES OUTSTANDING, $0.001 PAR VALUE PER
SHARE:
Class A 182,934,983
_____________________________________________________________
=============================================================
Class B 162,812,031
_____________________________________________________________
=============================================================
Class C 42,703,660
_____________________________________________________________
=============================================================
Class A:
Net asset value and redemption price per
share $ 17.29
-------------------------------------------------------------
Offering price per share:
(Net asset value of $17.29 divided by
94.50%) $ 18.30
_____________________________________________________________
=============================================================
Class B:
Net asset value and offering price per
share $ 16.87
_____________________________________________________________
=============================================================
Class C:
Net asset value and offering price per
share $ 16.86
_____________________________________________________________
=============================================================
</TABLE>
STATEMENT OF OPERATIONS
For the year ended October 31, 2000
<TABLE>
<S> <C>
INVESTMENT INCOME:
Dividends (net of foreign withholding tax of
$313,610) $ 33,420,380
------------------------------------------------------------
Dividends from affiliated money market funds 17,441,323
------------------------------------------------------------
Interest 203,770
------------------------------------------------------------
Security lending income 73,892
============================================================
Total investment income 51,139,365
============================================================
EXPENSES:
Advisory fees 36,923,601
------------------------------------------------------------
Administrative services fees 280,996
------------------------------------------------------------
Custodian fees 370,411
------------------------------------------------------------
Distribution fees -- Class A 9,983,123
------------------------------------------------------------
Distribution fees -- Class B 24,298,215
------------------------------------------------------------
Distribution fees -- Class C 5,556,340
------------------------------------------------------------
Transfer agent fees -- Class A 4,370,413
------------------------------------------------------------
Transfer agent fees -- Class B 4,794,034
------------------------------------------------------------
Transfer agent fees -- Class C 1,096,265
------------------------------------------------------------
Trustees' fees 18,457
------------------------------------------------------------
Other 2,515,283
============================================================
Total expenses 90,207,138
============================================================
Less: Fees waived (70,387)
------------------------------------------------------------
Expenses paid indirectly (100,040)
============================================================
Net expenses 90,036,711
============================================================
Net investment income (loss) (38,897,346)
============================================================
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENT SECURITIES, FOREIGN CURRENCIES,
FUTURES CONTRACTS AND OPTION CONTRACTS
Net realized gain (loss) from:
Investment securities (180,875,648)
------------------------------------------------------------
Foreign currencies (302,282)
------------------------------------------------------------
Futures contracts (959,165)
------------------------------------------------------------
Option contracts written (10,334,450)
============================================================
(192,471,545)
============================================================
Change in net unrealized appreciation
(depreciation) of:
Investment securities 712,308,699
------------------------------------------------------------
Foreign currencies (11,728)
------------------------------------------------------------
Futures contracts (1,817,529)
------------------------------------------------------------
Option contracts written 3,165,156
============================================================
713,644,598
============================================================
Net gain from investment securities,
foreign currencies, futures contracts and
option contracts 521,173,053
============================================================
Net increase in net assets resulting from
operations $ 482,275,707
____________________________________________________________
============================================================
</TABLE>
See Notes to Financial Statements.
7
<PAGE> 10
STATEMENT OF CHANGES IN NET ASSETS
For the years ended October 31, 2000 and 1999
<TABLE>
<CAPTION>
2000 1999
-------------- --------------
<S> <C> <C>
OPERATIONS:
Net investment income (loss) $ (38,897,346) $ (10,379,871)
----------------------------------------------------------------------------------------------
Net realized gain (loss) from investment securities,
foreign currencies, futures contracts and option
contracts (192,471,545) (35,834,384)
----------------------------------------------------------------------------------------------
Change in net unrealized appreciation of investment
securities, foreign currencies, futures contracts and
option contracts 713,644,598 756,524,720
==============================================================================================
Net increase in net assets resulting from operations 482,275,707 710,310,465
==============================================================================================
Distributions to shareholders from net investment income:
Class A -- (776,772)
----------------------------------------------------------------------------------------------
Distributions to shareholders from net realized gains:
Class A -- (3,128,249)
----------------------------------------------------------------------------------------------
Class B -- (2,256,383)
----------------------------------------------------------------------------------------------
Class C -- (293,473)
----------------------------------------------------------------------------------------------
Share transactions-net:
Class A 608,764,340 830,315,460
----------------------------------------------------------------------------------------------
Class B 660,832,200 866,521,395
----------------------------------------------------------------------------------------------
Class C 337,243,562 220,917,321
==============================================================================================
Net increase in net assets 2,089,115,809 2,621,609,764
==============================================================================================
NET ASSETS:
Beginning of year 4,540,673,179 1,919,063,415
==============================================================================================
End of year $6,629,788,988 $4,540,673,179
______________________________________________________________________________________________
==============================================================================================
NET ASSETS CONSIST OF:
Shares of beneficial interest $5,107,761,635 $3,540,120,284
----------------------------------------------------------------------------------------------
Undistributed net investment income (loss) (106,761) (97,169)
----------------------------------------------------------------------------------------------
Undistributed net realized gain (loss) from investment
securities, foreign currencies, futures contracts and
option contracts (233,836,669) (41,676,121)
----------------------------------------------------------------------------------------------
Unrealized appreciation of investment securities, foreign
currencies, futures contracts and option contracts 1,755,970,783 1,042,326,185
==============================================================================================
$6,629,788,988 $4,540,673,179
______________________________________________________________________________________________
==============================================================================================
</TABLE>
See Notes to Financial Statements.
8
<PAGE> 11
NOTES TO FINANCIAL STATEMENTS
October 31, 2000
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES
AIM Blue Chip Fund (the "Fund") is a series portfolio of AIM Equity Funds (the
"Trust"). The Trust is a Delaware business trust 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, each
having an unlimited number of shares of beneficial interest. Prior to June 17,
2000, the Fund was organized as a series portfolio of AIM Equity Funds, Inc. At
a meeting held on February 3, 2000, the Board of Directors of AIM Equity Funds,
Inc. approved an Agreement and Plan of Reorganization (the "Reorganization")
which reorganized the Fund as a series portfolio of the Trust. Shareholders of
the Fund approved the Reorganization at a meeting held on June 16, 2000. The
Fund currently offers three different classes of shares: Class A shares, Class B
shares and Class C shares. Class A shares are sold with a front-end sales
charge. Class B shares and Class C shares are sold with a contingent deferred
sales charge. Matters affecting each portfolio or class will be voted on
exclusively by the shareholders of such portfolio or class. The assets,
liabilities and operations of each portfolio are accounted for separately.
Information presented in these financial statements pertains only to the Fund.
The Fund's investment objective is long-term growth of capital with a secondary
objective of current income.
The preparation of financial statements in conformity with accounting
principles generally accepted in the United States of America 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 as of the close of
the customary trading session 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 Trust's
officers in a manner specifically authorized by the Board of Trustees.
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 Trustees.
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 on the accrual basis from settlement date.
Dividend income is recorded on the ex-dividend date.
On October 31, 2000, undistributed net investment income was increased by
$38,887,754, undistributed net realized gains increased by $310,997 and paid
in capital decreased by $39,198,751 as a result of differing book/tax
treatment of foreign currency transactions and net operating loss
reclassifications. Net assets of the Fund were unaffected by the
reclassification discussed above.
C. Distributions -- Distributions from income and net realized capital gains, if
any, are generally paid annually and recorded on ex-dividend date. The Fund
may elect to use a portion of the proceeds from redemptions as distributions
for federal income tax purposes.
D. Federal Income Taxes -- The Fund intends to comply with the requirements of
the Internal Revenue Code necessary to qualify as a regulated investment
company and, as such, will not be subject to federal income taxes on
otherwise taxable income (including net realized capital gains) which is
distributed to shareholders. Therefore, no provision for federal income taxes
is recorded in the financial statements.
The Fund has a capital loss carryforward of $224,125,606 as of October 31,
2000 which may be carried forward to offset
9
<PAGE> 12
future taxable gains, if any, which expires, if not previously utilized, in
the year 2008.
E. Foreign Currency Translations -- Portfolio securities and other assets and
liabilities denominated in foreign currencies are translated into U.S. dollar
amounts at date of valuation. Purchases and sales of portfolio securities and
income items denominated in foreign currencies are translated into U.S.
dollar amounts on the respective dates of such transactions. The Fund does
not separately account for the portion of the results of operations resulting
from changes in foreign exchange rates on investments and the fluctuations
arising from changes in market prices of securities held. Such fluctuations
are included with the net realized and unrealized gain or loss from
investments.
F. Foreign Currency Contracts -- A foreign currency contract is an obligation to
purchase or sell a specific currency for an agreed-upon price at a future
date. The Fund may enter into a foreign currency contract to attempt to
minimize the risk to the Fund from adverse changes in the relationship
between currencies. The Fund may also enter into a foreign currency contract
for the purchase or sale of a security denominated in a foreign currency in
order to "lock in" the U.S. dollar price of that security. The Fund could be
exposed to risk if counterparties to the contracts are unable to meet the
terms of their contracts or if the value of the foreign currency changes
unfavorably.
G. Covered Call Options -- The Fund may write call options, on a covered basis;
that is, the Fund will own the underlying security. Options written by the
Fund normally will have expiration dates between three and nine months from
the date written. The exercise price of a call option may be below, equal to,
or above the current market value of the underlying security at the time the
option is written. When the Fund writes a covered call option, an amount
equal to the premium received by the Fund is recorded as an asset and an
equivalent liability. The amount of the liability is subsequently
"marked-to-market" to reflect the current market value of the option written.
The current market value of a written option is the mean between the last bid
and asked prices on that day. If a written call option expires on the
stipulated expiration date, or if the Fund enters into a closing purchase
transaction, the Fund realizes a gain (or a loss if the closing purchase
transaction exceeds the premium received when the option was written) without
regard to any unrealized gain or loss on the underlying security, and the
liability related to such option is extinguished. If a written option is
exercised, the Fund realizes a gain or a loss from the sale of the underlying
security and the proceeds of the sale are increased by the premium originally
received.
A call option gives the purchaser of such option the right to buy, and the
writer (the Fund) the obligation to sell, the underlying security at the
stated exercise price during the option period. The purchaser of a call
option has the right to acquire the security which is the subject of the call
option at any time during the option period. During the option period, in
return for the premium paid by the purchaser of the option, the Fund has
given up the opportunity for capital appreciation above the exercise price
should the market price of the underlying security increase, but has retained
the risk of loss should the price of the underlying security decline. During
the option period, the Fund may be required at any time to deliver the
underlying security against payment of the exercise price. This obligation is
terminated upon the expiration of the option period or at such earlier time
at which the Fund effects a closing purchase transaction by purchasing (at a
price which may be higher than that received when the call option was
written) a call option identical to the one originally written.
H. Futures Contracts -- The Fund may purchase or sell futures contracts as a
hedge against changes in market conditions. Initial margin deposits required
upon entering into futures contracts are satisfied by the segregation of
specific securities as collateral for the account of the broker (the Fund's
agent in acquiring the futures position). During the period the futures
contracts are open, changes in the value of the contracts are recognized as
unrealized gains or losses by "marking to market" on a daily basis to reflect
the market value of the contracts at the end of each day's trading. Variation
margin payments are made or received depending upon whether unrealized gains
or losses are incurred. When the contracts are closed, the Fund recognizes a
realized gain or loss equal to the difference between the proceeds from, or
cost of, the closing transaction and the Fund's basis in the contract. Risks
include the possibility of an illiquid market and that a change in value of
the contracts may not correlate with changes in the value of the securities
being hedged.
I. Expenses -- Distribution expenses and certain transfer agency expenses
directly attributable to a class of shares are charged to those classes'
operations. All other expenses which are attributable to more than one class
are allocated among the classes.
NOTE 2-ADVISORY FEES AND OTHER TRANSACTIONS WITH AFFILIATES
The Trust 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 0.75% of
the first $350 million of the Fund's average daily net assets, plus 0.625% of
the Fund's average daily net assets in excess of $350 million. AIM has agreed to
waive advisory fees payable by the Fund to AIM at the annual rate of 0.025% for
each $5 billion increment in net assets over $5 billion, up to a maximum waiver
of 0.175% on net assets in excess of $35 billion. During the year ended October
31, 2000, AIM waived fees of $70,387.
The Fund, pursuant to a master administrative services agreement with AIM, has
agreed to pay AIM for certain administrative costs incurred in providing
accounting services to the Fund. For the year ended October 31, 2000, AIM was
paid $280,996 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 year ended October 31, 2000, AFS was
paid $5,597,222 for such services.
10
<PAGE> 13
The Trust 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 Trust 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. For the year ended October 31, 2000,
the Class A, Class B and Class C shares paid AIM Distributors $9,983,123,
$24,298,215 and $5,556,340, respectively, as compensation under the Plans.
AIM Distributors received commissions of $2,876,209 from sales of the Class A
shares of the Fund during the year ended October 31, 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 year ended October 31, 2000,
AIM Distributors received $197,230 in contingent deferred sales charges imposed
on redemptions of Fund shares.
Certain officers and trustees of the Trust are officers and directors of AIM,
AFS and AIM Distributors.
During the year ended October 31, 2000, the Fund paid legal fees of $12,798
for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the
Board of Trustees. A member of that firm is a trustee of the Trust.
NOTE 3-INDIRECT EXPENSES
For the year ended October 31, 2000, the Fund received reductions in transfer
agency fees from AFS (an affiliate of AIM) of $78,129 and reductions in
custodian fees of $21,911 under expense offset arrangements which resulted in a
reduction of the Fund's total expenses of $100,040.
NOTE 4-TRUSTEES' FEES
Trustees' fees represent remuneration paid to trustees who are not an
"interested person" of AIM. The Trust invests trustees' fees, if so elected by a
trustee, 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 Citibank, N.A. 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 year ended October 31,
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-PORTFOLIO SECURITIES LOANED
The Fund may lend portfolio securities to the extent of one-third of the Fund's
total assets. Such loans are secured by collateral equal to no less than the
market value, determined daily, of the loaned securities. Such collateral will
be cash or debt securities issued or guaranteed by the U.S. Government or any of
its agencies. Cash collateral pursuant to these loans is invested in short-term
money market instruments or affiliated money market funds. Lending securities
entails a risk of loss to the Fund if and to the extent that the market value of
the securities loaned were to increase and the borrower did not increase the
collateral accordingly, and the borrower fails to return the securities.
At October 31, 2000, securities with an aggregate value of $170,706,450 were
on loan to brokers. The loans were secured by cash collateral of $175,209,900
received by the Fund. For the year ended October 31, 2000, the Fund received
fees of $73,892 for securities lending.
NOTE 7-INVESTMENT SECURITIES
The aggregate amount of investment securities (other than short-term securities)
purchased and sold by the Fund during the year ended October 31, 2000 was
$2,695,331,056 and $1,214,890,041, respectively.
The amount of unrealized appreciation (depreciation) of investment securities,
for tax purposes, as of October 31, 2000 is as follows:
<TABLE>
<S> <C>
Aggregate unrealized appreciation of
investment securities $1,874,199,000
----------------------------------------------------------
Aggregate unrealized (depreciation) of
investment securities (127,925,379)
==========================================================
Net unrealized appreciation of investment
securities $1,746,273,621
__________________________________________________________
==========================================================
Cost of investments for tax purposes is $4,856,943,134.
</TABLE>
NOTE 8-CALL OPTION CONTRACTS
Transactions in call options written during the year ended October 31, 2000 are
summarized as follows:
<TABLE>
<CAPTION>
CALL OPTION CONTRACTS
----------------------
NUMBER OF PREMIUMS
CONTRACTS RECEIVED
--------- ----------
<S> <C> <C>
Beginning of year 4,858 $5,063,081
----------------------------------------------------------
Closed (4,858) (5,063,081)
==========================================================
End of year -- $ --
__________________________________________________________
==========================================================
</TABLE>
11
<PAGE> 14
NOTE 9-SHARE INFORMATION
Changes in shares outstanding during the years ended October 31, 2000 and 1999
were as follows:
<TABLE>
<CAPTION>
2000 1999
----------------------------- -----------------------------
SHARES AMOUNT SHARES AMOUNT
----------- -------------- ----------- --------------
<S> <C> <C> <C> <C>
Sold:
Class A 148,715,420 $1,263,107,272 31,555,257 $1,348,329,456
----------------------------------------------------------------------------------------------------------------------------
Class B 129,401,524 992,150,930 24,939,694 1,053,306,393
----------------------------------------------------------------------------------------------------------------------------
Class C 37,286,271 429,625,653 6,902,119 292,602,692
----------------------------------------------------------------------------------------------------------------------------
Issued as reinvestment of dividends:
Class A -- -- 93,903 3,711,997
----------------------------------------------------------------------------------------------------------------------------
Class B -- -- 54,813 2,141,056
----------------------------------------------------------------------------------------------------------------------------
Class C -- -- 7,197 281,069
----------------------------------------------------------------------------------------------------------------------------
Reacquired:
Class A (15,253,996) (654,342,932) (12,216,671) (521,725,993)
----------------------------------------------------------------------------------------------------------------------------
Class B (8,016,409) (331,318,730) (4,443,246) (188,926,054)
----------------------------------------------------------------------------------------------------------------------------
Class C (2,250,850) (92,382,091) (1,692,129) (71,966,440)
============================================================================================================================
289,881,960 $1,606,840,102 45,200,937 $1,917,754,176
____________________________________________________________________________________________________________________________
============================================================================================================================
</TABLE>
NOTE 10-FINANCIAL HIGHLIGHTS
The following schedule presents financial highlights for a share of the Fund
outstanding throughout the periods indicated.
<TABLE>
<CAPTION>
CLASS A(a)
-----------------------------------------------------------------------------------------
YEAR ENDED OCTOBER 31, OCTOBER 1, 1996 TO YEAR ENDED
-------------------------------------------------- OCTOBER 31, SEPTEMBER 30,
2000 1999 1998(b) 1997(b) 1996 1996
---------- ---------- ---------- -------- ------------------ -------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 15.49 $ 12.05 $ 10.32 $ 8.69 $ 8.52 $ 7.94
---------------------------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income (loss) (0.05) 0.01 0.04 0.06 -- 0.11
---------------------------------------------------------------------------------------------------------------------------------
Net gains on securities (both
realized and unrealized) 1.85 3.47 1.92 2.31 0.17 1.54
=================================================================================================================================
Total from investment operations 1.80 3.48 1.96 2.37 0.17 1.65
=================================================================================================================================
Less distributions:
Dividends from net investment income -- (0.01) (0.02) (0.02) -- (0.07)
---------------------------------------------------------------------------------------------------------------------------------
Distributions from net realized
gains -- (0.03) (0.21) (0.72) -- (1.00)
=================================================================================================================================
Total distributions -- (0.04) (0.23) (0.74) -- (1.07)
=================================================================================================================================
Net asset value, end of period $ 17.29 $ 15.49 $ 12.05 $ 10.32 $ 8.69 $ 8.52
_________________________________________________________________________________________________________________________________
=================================================================================================================================
Total return(c) 11.60% 29.01% 19.36% 29.68% 2.04% 22.39%
_________________________________________________________________________________________________________________________________
=================================================================================================================================
Ratios/supplemental data:
Net assets, end of period (000s
omitted) $3,163,453 $2,299,551 $1,085,648 $498,178 $120,448 $106,415
_________________________________________________________________________________________________________________________________
=================================================================================================================================
Ratio of expenses to average net
assets:
With fee waivers 1.19%(d) 1.19% 1.22% 1.31% 1.30%(e) 1.26%
---------------------------------------------------------------------------------------------------------------------------------
Without fee waivers 1.19%(d) 1.19% 1.22% 1.32% 1.37%(e) 1.26%
=================================================================================================================================
Ratio of net investment income (loss)
to average net assets (0.31)%(d) 0.03% 0.33% 0.50% 0.12%(e) 0.53%
_________________________________________________________________________________________________________________________________
=================================================================================================================================
Portfolio turnover rate 22% 22% 27% 43% 10% 58%
_________________________________________________________________________________________________________________________________
=================================================================================================================================
</TABLE>
(a) Per share information and shares have been restated to reflect a 3 for 1
stock split, effected in the form of a 200% stock dividend, on September 8,
2000.
(b) Calculated using average shares outstanding.
(c) Does not include sales charges and is not annualized for periods less than
one year.
(d) Ratios are based on average daily net assets of $2,852,320,679.
(e) Annualized.
12
<PAGE> 15
NOTE 10-FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
CLASS B(a)
--------------------------------------------------------------------------
OCTOBER 1, 1996
YEAR ENDED OCTOBER 31, (DATE SALES COMMENCED)
------------------------------------------------ TO OCTOBER 31,
2000(b) 1999(b) 1998 1997(b) 1996
---------- ---------- -------- -------- ----------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 15.22 $ 11.91 $ 10.25 $ 8.69 $ 8.52
---------------------------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income (loss) (0.17) (0.10) (0.04) (0.01) --
---------------------------------------------------------------------------------------------------------------------------------
Net gains on securities (both realized and
unrealized) 1.82 3.44 1.91 2.30 0.17
=================================================================================================================================
Total from investment operations 1.65 3.34 1.87 2.29 0.17
=================================================================================================================================
Less distributions:
Dividends from net investment income -- -- -- (0.01) --
---------------------------------------------------------------------------------------------------------------------------------
Distributions from net realized gains -- (0.03) (0.21) (0.72) --
=================================================================================================================================
Total distributions -- (0.03) (0.21) (0.73) --
=================================================================================================================================
Net asset value, end of period $ 16.87 $ 15.22 $ 11.91 $ 10.25 $ 8.69
_________________________________________________________________________________________________________________________________
=================================================================================================================================
Total return(c) 10.87% 28.08% 18.52% 28.81% 2.00%
_________________________________________________________________________________________________________________________________
=================================================================================================================================
Ratios/supplemental data:
Net assets, end of period (000s omitted) $2,746,149 $1,891,171 $745,862 $264,337 $8,101
_________________________________________________________________________________________________________________________________
=================================================================================================================================
Ratio of expenses to average net assets:
With fee waivers 1.88%(d) 1.91% 1.94% 2.10% 2.01%(e)
---------------------------------------------------------------------------------------------------------------------------------
Without fee waivers 1.88%(d) 1.91% 1.94% 2.12% 2.08%(e)
=================================================================================================================================
Ratio of net investment income (loss) to average net
assets (1.00)%(d) (0.68)% (0.38)% (0.28)% (0.58)%(e)
_________________________________________________________________________________________________________________________________
=================================================================================================================================
Portfolio turnover rate 22% 22% 27% 43% 10%
_________________________________________________________________________________________________________________________________
=================================================================================================================================
</TABLE>
(a)Per share information and shares have been restated to reflect a 3 for 1
stock split, effected in the form of a 200% stock dividend, on September 8,
2000.
(b)Calculated using average shares outstanding.
(c)Does not include contingent deferred sales charges and is not annualized for
periods less than one year.
(d)Ratios are based on average daily net assets of $2,429,821,489.
(e)Annualized.
<TABLE>
<CAPTION>
CLASS C(a)
---------------------------------------------------------
AUGUST 4, 1997
YEAR ENDED OCTOBER 31, (DATE SALES COMMENCED)
------------------------------- TO OCTOBER 31,
2000(b) 1999(b) 1998(b) 1997(b)
-------- -------- ------- ----------------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 15.21 $ 11.91 $10.25 $10.57
-----------------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income (loss) (0.17) (0.10) (0.04) --
-----------------------------------------------------------------------------------------------------------------------
Net gains (losses) on securities (both realized and
unrealized) 1.82 3.43 1.91 (0.32)
=======================================================================================================================
Total from investment operations 1.65 3.33 1.87 (0.32)
=======================================================================================================================
Less distributions:
Distributions from net realized gains -- (0.03) (0.21) --
=======================================================================================================================
Net asset value, end of period $ 16.86 $ 15.21 $11.91 $10.25
_______________________________________________________________________________________________________________________
=======================================================================================================================
Total return(c) 10.82% 28.09% 18.52% (3.06)%
_______________________________________________________________________________________________________________________
=======================================================================================================================
Ratios/supplemental data:
Net assets, end of period (000s omitted) $720,186 $349,951 $87,554 $3,947
_______________________________________________________________________________________________________________________
=======================================================================================================================
Ratio of expenses to average net assets:
With fee waivers 1.88%(d) 1.90% 1.94% 2.10%(e)
-----------------------------------------------------------------------------------------------------------------------
Without fee waivers 1.88%(d) 1.90% 1.94% 2.12%(e)
=======================================================================================================================
Ratio of net investment income (loss) to average net assets (1.00)%(d) (0.68)% (0.38)% (0.28)%(e)
_______________________________________________________________________________________________________________________
=======================================================================================================================
Portfolio turnover rate 22% 22% 27% 43%
_______________________________________________________________________________________________________________________
=======================================================================================================================
</TABLE>
(a) Per share information and shares have been restated to reflect a 3 for 1
stock split, effected in the form of a 200% stock dividend, on September 8,
2000.
(b) Calculated using average shares outstanding.
(c) Does not include contingent deferred sales charges and is not annualized for
periods less than one year.
(d) Ratios are based on average daily net assets of $555,634,002.
(e) Annualized.
13
<PAGE> 16
INDEPENDENT AUDITORS' REPORT
To the Shareholders and Board of Trustees
AIM Equity Funds:
We have audited the accompanying statements of assets and
liabilities of AIM Blue Chip Fund (a portfolio of AIM
Equity Funds), including the schedule of investments, as
of October 31, 2000, the related statement of operations
for the year then ended, the statement of changes in net
assets for each of the years in the two-year period then
ended and financial highlights for each of the periods in
the four-year period then ended, the one month period
ended October 31, 1996, and the year ended September 30,
1996. These financial statements and financial highlights
are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these
financial statements and financial highlights based on
our audits.
We conducted our audits in accordance with auditing
standards generally accepted in the United States of
America. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether
the financial statements and financial highlights are
free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements. Our
procedures included confirmation of securities owned as
of October 31, 2000, by correspondence with the custodian
and brokers. An audit also includes assessing the
accounting principles used and significant estimates made
by management, as well as evaluating the overall
financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial
highlights referred to above present fairly, in all
material respects, the financial position of AIM Blue
Chip Fund as of October 31, 2000, the results of its
operations for the year then ended, the changes in its
net assets for each of the years in the two-year period
then ended and financial highlights for each of the years
in the four-year period then ended, the one-month period
ended October 31, 1996, and the year ended September 30,
1996 in conformity with accounting principles generally
accepted in the United States of America.
KPMG LLP
December 6, 2000
Houston, Texas
14
<PAGE> 17
PROXY RESULTS (UNAUDITED)
A Special Meeting of Shareholders of AIM Blue Chip Fund (the "Fund"), a
portfolio of AIM Equity Funds, Inc., a Maryland corporation (the "Company"),
reorganized as AIM Equity Funds, a Delaware business trust (the "trust"), was
held on May 3, 2000. The meeting was held for the following purposes:
(1)* To elect the following Directors: Charles T. Bauer, Bruce L. Crockett, Owen
Daly II, Edward K. Dunn, Jr., Jack M. Fields, Carl Frischling, Robert H.
Graham, Prema Mathai-Davis, Lewis F. Pennock and Louis S. Sklar.
(2)* To approve an Agreement and Plan of Reorganization which provides for the
reorganization of the company as a Delaware business trust.
(3) To approve a new Master Investment Advisory Agreement with A I M Advisors,
Inc.
(4) To approve changing the fundamental investment restrictions of the Fund.
(5) To approve changing the investment objective of the Fund so that it is
non-fundamental.
(6) To ratify the selection of KPMG LLP as independent accountants of the Fund
for the fiscal year ending in 2000.
The results of the voting on the above matters were as follows:
<TABLE>
<CAPTION>
VOTES WITHHELD/
DIRECTORS/MATTER VOTES FOR AGAINST ABSTENTIONS
---------------- ----------- ---------- -----------
<S> <C> <C> <C> <C>
(1)* Charles T. Bauer............................................ 880,499,527 N/A 21,899,315
Bruce L. Crockett........................................... 880,943,079 N/A 21,455,763
Owen Daly II................................................ 880,468,204 N/A 21,930,638
Edward K. Dunn, Jr. ........................................ 880,922,500 N/A 21,476,342
Jack M. Fields.............................................. 880,960,800 N/A 21,438,042
Carl Frischling............................................. 880,836,332 N/A 21,562,510
Robert H. Graham............................................ 880,965,547 N/A 21,433,295
Prema Mathai-Davis.......................................... 880,635,296 N/A 21,763,546
Lewis F. Pennock............................................ 880,899,481 N/A 21,499,361
Louis S. Sklar.............................................. 880,825,241 N/A 21,573,601
(2)* Adjournment of approval of an Agreement and Plan of
Reorganization which provides for the reorganization of AIM
Equity Funds, Inc. as a Delaware business trust............. 610,634,359 17,637,580 274,126,903**
(3) Adjournment of approval of a new Master Investment Advisory
Agreement with A I M Advisors, Inc.......................... 35,936,451 984,206 16,913,977**
(4)(a) Adjournment of approval of changing or adding the
Fundamental Restriction on Issuer Diversification........... 35,430,549 1,258,476 17,145,609**
(4)(b) Adjournment of approval of changing the Fundamental
Restriction on Borrowing Money and Issuing Senior
Securities.................................................. 35,173,284 1,503,820 17,157,530**
(4)(c) Adjournment of approval of changing the Fundamental
Restriction on Underwriting Securities...................... 35,300,651 1,367,133 17,166,850**
(4)(d) Adjournment of approval of changing the Fundamental
Restriction on Industry Concentration....................... 35,367,402 1,321,404 17,145,828**
(4)(e) Adjournment of approval of changing the Fundamental
Restriction on Purchasing or Selling Real Estate............ 35,206,590 1,502,415 17,125,629**
(4)(f) Adjournment of approval of changing the Fundamental
Restriction on Purchasing or Selling Commodities............ 35,070,780 1,617,039 17,146,815**
(4)(g) Adjournment of approval of changing the Fundamental
Restriction on Making Loans................................. 35,033,916 1,657,296 17,143,422**
(4)(h) Adjournment of approval of a new Fundamental Investment
Restriction on Investing all of the Fund's Assets in an
Open-End Fund............................................... 35,210,923 1,440,106 17,183,605**
(4)(i) Adjournment of approval of the Elimination of the
Fundamental Restriction on Margin Transactions.............. 34,643,270 1,990,249 17,201,115**
(4)(j) Adjournment of approval of the Elimination of Fundamental
Restriction on Short Sales of Securities.................... 34,820,376 1,848,047 17,166,211**
(5) Adjournment of approval of changing the Investment Objective
so that it is Non-Fundamental............................... 34,615,646 2,135,159 17,083,829**
(6) Ratification of the selection of KPMG LLP as Independent
Accountants of the Fund..................................... 51,298,680 473,215 2,062,739
</TABLE>
15
<PAGE> 18
The Special Meeting of Shareholders of the Company was reconvened on May
31, 2000. The following matters were then considered:
<TABLE>
<CAPTION>
VOTES WITHHELD/
MATTER VOTES FOR AGAINST ABSTENTIONS
------ ----------- ---------- -----------
<S> <C> <C> <C> <C>
(2)* Adjournment of approval of an Agreement and Plan of
Reorganization which provides for the reorganization of AIM
Equity Funds, Inc. as a Delaware business trust............. 771,237,475 25,045,711 214,550,642**
(3) Approval of a new Master Investment Advisory Agreement with
A I M Advisors, Inc......................................... 46,153,445 1,210,832 15,256,915**
(4)(a) Approval of changing the Fundamental Restriction on Issuer
Diversification............................................. 45,338,448 1,615,979 15,666,765**
(4)(b) Approval of changing the Fundamental Restriction on
Borrowing Money and Issuing Senior Securities............... 45,039,208 1,874,063 15,707,921**
(4)(c) Approval of changing the Fundamental Restriction on
Underwriting Securities..................................... 45,201,107 1,731,636 15,688,449**
(4)(d) Approval of changing the Fundamental Restriction on Industry
Concentration............................................... 45,280,043 1,656,097 15,685,052**
(4)(e) Approval of changing the Fundamental Restriction on
Purchasing or Selling Real Estate........................... 45,052,318 1,889,303 15,679,571**
(4)(f) Approval of changing the Fundamental Restriction on
Purchasing or Selling Commodities........................... 44,925,195 2,004,745 15,691,252**
(4)(g) Approval of changing the Fundamental Restriction on Making
Loans....................................................... 44,885,518 2,049,332 15,686,342**
(4)(h) Approval of a new Fundamental Investment Restriction on
Investing all of the Fund's assets in an Open-End Fund...... 45,110,880 1,774,086 15,736,226**
(4)(i) Approval of the Elimination of the Fundamental Restriction
on Margin Transactions...................................... 44,364,534 2,487,563 15,769,095**
(4)(j) Approval of the Elimination of Fundamental Restriction on
Short Sales of Securities................................... 44,583,176 2,318,367 15,719,649**
(5) Approval of Changing the Investment Objective so that it is
Non-Fundamental............................................. 44,341,718 2,628,563 15,650,911**
</TABLE>
The Special Meeting of Shareholders of the Company was reconvened on June
16, 2000. The following matter was then considered:
<TABLE>
<CAPTION>
VOTES WITHHELD/
MATTER VOTES FOR AGAINST ABSTENTIONS
------ ----------- ---------- -----------
<S> <C> <C> <C> <C>
(2)* Approval of an Agreement and Plan of Reorganization which
provides for the reorganization of AIM Equity Funds, Inc. as
a Delaware business trust................................... 824,680,935 26,389,312 203,059,248**
</TABLE>
---------------
* Proposal 1 and 2 required approval by a combined vote of all of the
portfolios of AIM Equity Funds, Inc.
** Includes Broker Non-Votes
---------------
Effective September 30, 2000, Charles T. Bauer retired from his positions as an
officer and trustee of the Trust and Robert H. Graham succeeded Mr. Bauer as
Chairman of the Board.
16
<PAGE> 19
ABOUT YOUR FUND'S BOARD
The board of trustees is elected by you to look after your interests as a
mutual-fund shareholder. Trustees' responsibilities include choosing investment
advisors for your fund; keeping an eye on performance, operations and expenses;
making decisions regarding dividends and other duties.
Nine of your fund's 10 trustees are independent. In other words, they have no
affiliation with AIM except as independent fund trustees charged with
representing the interest of fund investors. Representing a cross section of
businesses and industries, they have achieved success and recognition in their
respective fields. They bring their considerable expertise and experience to
their positions as trustees.
Listed below are the members of the board of trustees of your mutual fund and
their respective titles.
<TABLE>
<CAPTION>
BOARD OF TRUSTEES OFFICERS OFFICE OF THE FUND
<S> <C> <C>
Robert H. Graham Robert H. Graham 11 Greenway Plaza
Chairman, President and Chief Executive Officer Chairman and President Suite 100
A I M Management Group Inc. Houston, TX 77046
Carol F. Relihan
Bruce L. Crockett Senior Vice President and Secretary INVESTMENT ADVISOR
Director
ACE Limited; Gary T. Crum A I M Advisors, Inc.
Formerly Director, President, and Senior Vice President 11 Greenway Plaza
Chief Executive Officer Suite 100
COMSAT Corporation Edgar M. Larsen Houston, TX 77046
Vice President
Owen Daly II TRANSFER AGENT
Formerly Director Dana R. Sutton
Cortland Trust Inc. Vice President and Treasurer A I M Fund Services, Inc.
P.O. Box 4739
Albert R. Dowden Melville B. Cox Houston, TX 77210-4739
Chairman of the Board of Directors, Vice President
The Cortland Trust and DHJ Media, Inc.; and CUSTODIAN
Director, Magellan Insurance Company, Mary J. Benson
Formerly Director, President and Assistant Vice President and State Street Bank and Trust Company
Chief Executive Officer, Assistant Treasurer 225 Franklin Street
Volvo Group North America, Inc.; and Boston, MA 02110
Senior Vice President, AB Volvo Sheri Morris
Assistant Vice President and COUNSEL TO THE FUND
Edward K. Dunn Jr. Assistant Treasurer
Chairman, Mercantile Mortgage Corp.; Ballard Spahr
Formerly Vice Chairman and President, Jim A. Coppedge Andrews & Ingersoll, LLP
Mercantile-Safe Deposit & Trust Co.; and Assistant Secretary 1735 Market Street
President, Mercantile Bankshares Philadelphia, PA 19103
Renee A. Friedli
Jack Fields Assistant Secretary COUNSEL TO THE TRUSTEES
Chief Executive Officer
Twenty First Century, Inc.; P. Michelle Grace Kramer, Levin, Naftalis & Frankel LLP
Formerly Member Assistant Secretary 919 Third Avenue
of the U.S. House of Representatives New York, NY 10022
Nancy L. Martin
Carl Frischling Assistant Secretary DISTRIBUTOR
Partner
Kramer, Levin, Naftalis & Frankel LLP Ofelia M. Mayo A I M Distributors, Inc.
Assistant Secretary 11 Greenway Plaza
Prema Mathai-Davis Suite 100
Formerly Chief Executive Officer, Lisa A. Moss Houston, TX 77046
YWCA of the U.S.A. Assistant Secretary
AUDITORS
Lewis F. Pennock Kathleen J. Pflueger
Partner Assistant Secretary KPMG LLP
Pennock & Cooper 700 Louisiana
Houston, TX 77002
Louis S. Sklar
Executive Vice President
Hines Interests
Limited Partnership
</TABLE>
REQUIRED FEDERAL INCOME TAX INFORMATION (UNAUDITED)
Of ordinary dividends paid to shareholders during the Fund's tax year ended
October 31, 2000, 0% is eligible for the dividends received deduction for
corporations.
<PAGE> 20
THE AIM FAMILY OF FUNDS--Registered Trademark--
<TABLE>
<S> <C> <C>
EQUITY FUNDS A I M Management Group Inc. has provided
leadership in the mutual fund industry
DOMESTIC EQUITY FUNDS INTERNATIONAL/GLOBAL EQUITY FUNDS since 1976 and managed approximately
$183 billion in assets for more than
MORE AGGRESSIVE MORE AGGRESSIVE eight million shareholders, including
individual investors, corporate clients
AIM Small Cap Opportunities(1) AIM Latin American Growth and financial institutions, as of
AIM Mid Cap Opportunities(2) AIM Developing Markets September 30, 2000.
AIM Large Cap Opportunities(3) AIM European Small Company The AIM Family of Funds--Registered
AIM Emerging Growth AIM Asian Growth Trademark-- is distributed nationwide,
AIM Small Cap Growth(4) AIM Japan Growth and AIM today is the eighth-largest
AIM Aggressive Growth AIM International Emerging Growth mutual fund complex in the United States
AIM Mid Cap Growth AIM European Development in assets under management, according to
AIM Small Cap Equity AIM Euroland Growth Strategic Insight, an independent mutual
AIM Capital Development AIM Global Aggressive Growth fund monitor.
AIM Constellation AIM International Equity AIM is a subsidiary of AMVESCAP PLC,
AIM Dent Demographic Trends AIM Advisor International Value one of the world's largest independent
AIM Select Growth AIM Global Trends financial services companies with $414
AIM Large Cap Growth AIM Global Growth billion in assets under management as of
AIM Weingarten September 30, 2000.
AIM Mid Cap Equity MORE CONSERVATIVE
AIM Value II
AIM Charter SECTOR EQUITY FUNDS
AIM Value
AIM Blue Chip MORE AGGRESSIVE
AIM Basic Value
AIM Large Cap Basic Value AIM New Technology
AIM Balanced AIM Global Telecommunications and Technology
AIM Advisor Flex AIM Global Resources
AIM Global Financial Services
MORE CONSERVATIVE AIM Global Health Care
AIM Global Consumer Products and Services
AIM Global Infrastructure
AIM Advisor Real Estate
AIM Global Utilities
MORE CONSERVATIVE
FIXED-INCOME FUNDS
TAXABLE FIXED-INCOME FUNDS TAX-FREE FIXED-INCOME FUNDS
MORE AGGRESSIVE MORE AGGRESSIVE
AIM Strategic Income AIM High Income Municipal
AIM High Yield II AIM Tax-Exempt Bond of Connecticut
AIM High Yield AIM Municipal Bond
AIM Income AIM Tax-Free Intermediate
AIM Global Income AIM Tax-Exempt Cash
AIM Floating Rate(5)
AIM Intermediate Government MORE CONSERVATIVE
AIM Limited Maturity Treasury
AIM Money Market
MORE CONSERVATIVE
</TABLE>
The AIM Risk Spectrum illustrates equity and fixed-income funds from more
aggressive to more conservative. When assessing the degree of risk, three
factors were considered: the funds' portfolio holdings, volatility patterns over
time and diversification permitted within the fund. Fund rankings are relative
to one another within The AIM Family of Funds--Registered Trademark-- and should
not be compared with other investments. There is no guarantee that any one AIM
fund will be less volatile than any other. (1) AIM Small Cap Opportunities Fund
closed to new investors Nov. 4, 1999. (2) AIM Mid Cap Opportunities Fund closed
to new investors March 21, 2000. (3) AIM Large Cap Opportunities Fund closed to
new investors Sept. 29, 2000. (4) AIM Small Cap Growth Fund closed to new
investors Nov. 8, 1999. (5) AIM Floating Rate Fund was restructured to offer
multiple share classes April 3, 2000. Existing shares were converted to Class B
shares, and Class C shares commenced offering.
FOR MORE COMPLETE INFORMATION ABOUT ANY AIM FUND, INCLUDING SALES CHARGES
AND EXPENSES, OBTAIN THE APPROPRIATE PROSPECTUS(ES) FROM YOUR FINANCIAL ADVISOR.
PLEASE READ THE PROSPECTUS(ES) CAREFULLY BEFORE YOU INVEST OR SEND MONEY. This
report is not authorized for distribution to prospective investors unless
preceded or accompanied by a currently effective fund prospectus. If used as
sales material after Jan. 20, 2001, this report must be accompanied by a fund
Performance & Commentary or by an AIM Quarterly Review of Performance for the
most recent quarter end.
[DALBAR LOGO APPEARS HERE] [AIM LOGO APPEARS HERE]
--Registered Trademark--
INVEST WITH DISCIPLINE
--Registered Trademark--
A I M Distributors, Inc. BCH-AR-1
