<PAGE> 1
SEMIANNUAL REPORT / JANUARY 31, 1999
AIM MID CAP
OPPORTUNITIES FUND
[COVER IMAGE]
[AIM LOGO APPEARS HERE]
INVEST WITH DISCIPLINE
--Registered Trademark--
<PAGE> 2
[COVER IMAGE]
-------------------------------------------------------------------
THE ARTIST'S GARDEN AT VETHEUIL BY CLAUDE MONET (FRENCH, 1840-1926)
A BEAUTIFUL GARDEN, SUCH AS THE ONE DEPICTED IN MONET'S CLASSIC
PAINTING, IS USUALLY A PLEASING COMBINATION OF MANY DIFFERENT FLOWERING
PLANTS. SIMILARLY, IN AIM MID CAP OPPORTUNITIES FUND, WE SEEK TO OWN
THE STOCKS OF A BROAD CROSS SECTION OF RAPIDLY GROWING MID-SIZED
COMPANIES IN AN EFFORT TO PRODUCE ATTRACTIVE TOTAL RETURN.
-------------------------------------------------------------------
AIM Mid Cap Opportunities Fund is for shareholders who seek long-term growth of
capital by investing in a portfolio consisting primarily of mid-size-company
stocks which management believes involve "special opportunities."
ABOUT FUND PERFORMANCE AND PORTFOLIO DATA THROUGHOUT THIS REPORT:
o AIM Mid Cap Opportunities Fund performance figures are historical and
reflect reinvestment of all distributions and changes in net asset value.
When sales charges are included in performance figures, Fund performance
reflects the maximum 5.50% sales charge.
o The Fund's investment return and principal value will fluctuate so that an
investor's shares, when redeemed, may be worth more or less than their
original cost.
o Investing in smaller companies may involve greater risk and potential reward
than investing in more established companies.
o Past performance cannot guarantee comparable future results.
ABOUT INDEXES AND OTHER PERFORMANCE BENCHMARKS CITED IN THIS REPORT:
o Russell Midcap Growth Index measures the performance of those Russell
mid-cap companies with higher price-to-book ratios and higher forecasted
growth values.
o An investment cannot be made in any index listed. Unless otherwise
indicated, index results include reinvested dividends and 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 A PORTION OR ALL OF YOUR MONEY.
This report may be distributed only to current shareholders or to persons who
have received a current prospectus of the Fund.
AIM MID CAP OPPORTUNITIES FUND
<PAGE> 3
SEMIANNUAL REPORT / CHAIRMAN'S LETTER
Dear Fellow Shareholder:
We are pleased to welcome you as a shareholder in one of our
newest funds. We are glad you have chosen to invest in AIM Mid
Cap Opportunities Fund and believe it can help diversify your
portfolio. For one, the Fund invests in the stocks of
mid-sized companies as opposed to the stocks of large- or
small-sized companies. These asset classes often react
differently to various market trends. Moreover, the Fund
employs an alternative investment strategy that seeks to take
advantage of both rising and declining corporate earnings.
We believe that diversification is one of the keys to
successful investing. Other important principles include:
o Developing a long-term financial strategy and sticking
with it
o Disregarding short-term fluctuations in the market
o Relying on logic to dictate important investment decisions
o Understanding the benefits of regular, disciplined
investing
YOUR FUND MANAGERS' COMMENTS
On the pages that follow, your Fund's managers offer more detailed discussion of
how markets behaved, how they managed the Fund, and what they foresee for
markets and your Fund. We hope you will find their discussion informative.
We are pleased to send you this report on your Fund's performance. If you
have any questions or comments, please contact our Client Services department at
800-959-4246, or e-mail your inquiry to us at [email protected]. You can
access information about your account through our AIM Investor Line at
800-246-5463 or at our Web site, www.aimfunds.com. We often post market updates
on our Web site.
We thank you for your continued participation in The AIM Family of
Funds--Registered Trademark--.
Sincerely,
/s/ CHARLES T. BAUER
Charles T. Bauer
Chairman, A I M Advisors, Inc.
AIM MID CAP OPPORTUNITIES FUND
<PAGE> 4
SEMIANNUAL REPORT / MANAGERS' OVERVIEW
THE MANAGERS' OVERVIEW:
NEWLY LAUNCHED FUND OFF TO A SOLID START
THE FUND HAD BEEN IN EXISTENCE FOR LESS THAN A MONTH WHEN THE REPORTING PERIOD
ENDED. HOW DID IT PERFORM?
The Fund performed very well from its inception on December 30, 1998, through
the end of the reporting period, posting a cumulative total return, without
sales charges, of 9.10%. That was significantly better than the 5.00% total
return for the Russell Mid Cap Growth Index for the same period.
================================================================================
CUMULATIVE TOTAL RETURN
For the reporting period ended 1/31/99
[Bar Chart]
AIM Mid Cap Opportunities Fund 9.10%
Russell Mid Cap Growth Index 5.00%
================================================================================
CAN YOU DESCRIBE THE FUND'S ALTERNATIVE INVESTMENT STRATEGY?
The Fund can hold both long and short positions. Long positions consist of
stocks that the Fund actually owns. Short positions constitute stocks that have
been borrowed with the intention of selling them and purchasing them at a lower
price.
We believe that earnings drive stock prices. The Fund endeavors to take
advantage of earnings surprises and disappointments. When earnings are falling,
we expect the Fund will have a greater number of short positions. When earnings
are rising, we anticipate that we will have more long positions in the
portfolio. As we are optimistic about the long-term prospects for mid-cap
stocks, we anticipate the Fund will generally have a "long" bias.
The Fund will invest primarily in the stocks of companies that we believe
represent "special opportunities." These can include companies that have made
significant technological advances or have undergone management changes.
Important economic or political developments as well as shifts in the
competitive outlook also can create special opportunities.
HOW CAN SHORT SELLING BENEFIT THE FUND?
With short sales, we seek to take advantage of an anticipated drop in the price
of an overvalued stock of a company whose earnings are decelerating. We sell the
borrowed stock when we believe its price will fall, intending to purchase the
same stock at an anticipated lower price. The strategy offers the potential for
protection in a declining market, thereby reducing risk. A mixed portfolio of
long and short positions can potentially produce lower volatility than an
all-long portfolio. We also can use leveraging-borrowing money-typically to
purchase additional securities. Leveraging may magnify changes in the Fund's net
asset value.
DURING THE FUND'S BRIEF EXISTENCE, HOW DID THE STOCK MARKET PERFORM?
Most major stock market indexes recorded gains in January. However, large-cap
stocks outperformed mid- and small-cap stocks. In the uncertain market
environment created by economic problems abroad, most notably in Brazil,
investors favored large-cap stocks because of their liquidity. Additionally,
investors preferred the stocks of companies that were expected to experience
rapid earnings growth over stocks that were undervalued relative to the rest of
the market.
HOW WAS THE FUND POSITIONED?
As of January 31, 1999, the Fund's holdings were concentrated in the principal
growth sectors: technology, consumer cyclicals and health care. Technology
companies are getting a boost from increasing demand for more powerful software,
the need to reprogram older computers to recognize the year 2000 and growth of
the Internet as a means of communication, commerce and entertainment.
Consumer-cyclical companies, particularly retailers, are benefiting from a
vibrant economy, nearly full employment and rising wages. Health-care companies,
especially pharmaceutical firms, are benefiting from the growing medical needs
of an aging population.
---------------------------------------
WITH SHORT SALES, WE SEEK TO TAKE
ADVANTAGE OF AN ANTICIPATED DROP IN THE
PRICE OF AN OVERVALUED STOCK OF A COM-
PANY WHOSE EARNINGS ARE DECELERATING.
---------------------------------------
See important Fund and index disclosures inside front cover.
AIM MID CAP OPPORTUNITIES FUND
<PAGE> 5
SEMIANNUAL REPORT / MANAGERS' OVERVIEW
PORTFOLIO COMPOSITION
As of 1/31/99, based on total net assets
<TABLE>
<CAPTION>
===================================================================================================================================
TOP 10 STOCK HOLDINGS TOP 10 INDUSTRIES SHORT POSITIONS
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1. America Online, Inc. 2.06% 1. Computers (Software & Services) 13.37% 1. I2 Technologies, Inc. 1.02%
2. QLogic Corp. 1.62 2. Retail (Specialty-Apparel) 5.27 2. HEALTHSOUTH Corp. 0.72
3. Allaire Corp. 1.50 3. Computers (Peripherals) 4.32 3. ANADIGICS, Inc. 0.41
4. Tiffany & Co. 1.35 4. Electronics (Semiconductors) 4.05 4. United Assets Management Corp. 0.41
5. SEI Investments Co. 1.35 5. Retail (Specialty) 3.26 5. Dollar General Corp. 0.29
6. Tut Systems, Inc. 1.35 6. Communications Equipment 3.00 6. Shared Medical Systems Corp. 0.28
7. Lexmark International Group, Inc. 1.33 7. Services (Computer Systems) 2.57 7. Ocular Sciences, Inc. 0.27
8. Medlmmune, Inc. 1.30 8. Savings & Loan Companies 2.47 8. Advanced Micro Devices, Inc. 0.27
9. American Eagle Outfitters, Inc. 1.20 9. Restaurants 2.45 9. J.D. Edwards & Co. 0.24
10. Insight Enterprises, Inc. 1.17 10. Financial (Diversified) 2.41
Please keep in mind that the Fund's portfolio is subject to change and there is
no assurance the Fund will continue to hold any particular security.
===================================================================================================================================
</TABLE>
WHAT ARE SOME OF THE FUND'S TOP HOLDINGS?
Stocks that we liked included America Online (AOL), American Eagle Outfitters
and Allergan. AOL is the world's largest Internet online service provider with
approximately 15 million subscribers. American Eagle Outfitters sells casual
wear while Allergan is a leading maker of eye- and skin-care products.
WHAT IS YOUR OUTLOOK?
We expect the low-inflation, low-interest-rate environment that proved so
favorable to certain segments of the stock market in l998 to persist in the
months ahead. We also believe the economy will continue to grow, but at a slower
pace. Profits are expected to decline for larger companies while remaining
robust for mid-cap companies. Moreover, mid-cap stocks continue to be relatively
cheap in comparison to large-cap stocks. These factors could make mid-cap stocks
increasingly attractive to investors and thus prove beneficial to the Fund.
A SPECIAL NOTE ABOUT RISK
Leveraging and short selling, along with other hedging strategies, may present
higher risks, but also offer the potential for greater rewards. Short sales
involve greater risk in that they rely on the managers' ability to accurately
anticipate the future value of a security. The Fund is not a complete investment
program and may not be appropriate for all investors. There is no guarantee that
the investment strategies used by the Fund's managers will help investors attain
their goals. Please see the prospectus for more information about specific
investment strategies and risks.
See important Fund and index disclosures inside front cover.
AIM MID CAP OPPORTUNITIES FUND
<PAGE> 6
SCHEDULE OF INVESTMENTS
JANUARY 31, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
COMMON STOCKS-77.74%
AEROSPACE/DEFENSE-0.64%
Gulfstream Aerospace Corp.(a) 200 $ 11,000
- -------------------------------------------------------------
AIRLINES-0.86%
COMAIR Holdings Inc. 400 14,675
- -------------------------------------------------------------
BANKS (REGIONAL)-2.40%
Bank United Corp.-Class A 300 12,000
- -------------------------------------------------------------
First Tennessee National Corp. 400 14,625
- -------------------------------------------------------------
National Commerce Bancorporation 700 14,305
- -------------------------------------------------------------
40,930
- -------------------------------------------------------------
BEVERAGES (ALCOHOLIC)-0.75%
Adolph Coors Co. 200 12,812
- -------------------------------------------------------------
BIOTECHNOLOGY-0.58%
Biogen, Inc.(a) 100 9,825
- -------------------------------------------------------------
BROADCASTING (TELEVISION, RADIO & CABLE)-1.59%
Heftel Broadcasting Corp.(a) 200 9,125
- -------------------------------------------------------------
Univision Communications Inc.(a) 400 18,000
- -------------------------------------------------------------
27,125
- -------------------------------------------------------------
COMMUNICATIONS EQUIPMENT-3.00%
ADC Telecommunications, Inc.(a) 200 7,963
- -------------------------------------------------------------
Comverse Technology, Inc.(a) 200 16,800
- -------------------------------------------------------------
ECI Telecommunications Ltd. 200 8,675
- -------------------------------------------------------------
General Instrument Corp.(a) 500 17,750
- -------------------------------------------------------------
51,188
- -------------------------------------------------------------
COMPUTERS (HARDWARE)-1.10%
Apple Computer, Inc.(a) 100 4,119
- -------------------------------------------------------------
NCR Corp.(a) 300 14,625
- -------------------------------------------------------------
18,744
- -------------------------------------------------------------
COMPUTERS (NETWORKING)-0.59%
FORE Systems, Inc.(a) 600 10,087
- -------------------------------------------------------------
COMPUTERS (PERIPHERALS)-4.32%
Adaptec, Inc.(a) 400 9,250
- -------------------------------------------------------------
Jabil Circuit, Inc.(a) 200 14,288
- -------------------------------------------------------------
Lexmark International Group, Inc.(a) 200 22,625
- -------------------------------------------------------------
QLogic Corp.(a) 200 27,575
- -------------------------------------------------------------
73,738
- -------------------------------------------------------------
COMPUTERS (SOFTWARE & SERVICES)-13.37%
Advanced Fibre Communications, Inc.(a) 500 5,906
- -------------------------------------------------------------
Allaire Corp.(a) 500 25,688
- -------------------------------------------------------------
America Online, Inc. 200 35,150
- -------------------------------------------------------------
American Management Systems, Inc.(a) 400 14,675
- -------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
COMPUTERS (SOFTWARE & SERVICES)-(CONTINUED)
Check Point Software Technologies Ltd.(a) 200 $ 9,700
- -------------------------------------------------------------
Citrix Systems, Inc.(a) 200 18,125
- -------------------------------------------------------------
Complete Business Solutions, Inc.(a) 400 12,000
- -------------------------------------------------------------
Concord EFS, Inc.(a) 200 8,125
- -------------------------------------------------------------
Electronic Arts, Inc.(a) 300 12,646
- -------------------------------------------------------------
Electronics for Imaging, Inc.(a) 300 10,800
- -------------------------------------------------------------
Gemstar International Group Ltd.(a) 100 5,788
- -------------------------------------------------------------
Informix Corp.(a) 900 9,844
- -------------------------------------------------------------
Macromedia, Inc.(a) 400 14,025
- -------------------------------------------------------------
Novell, Inc.(a) 500 10,188
- -------------------------------------------------------------
Rational Software Corp.(a) 200 6,612
- -------------------------------------------------------------
USWeb Corp.(a) 400 12,200
- -------------------------------------------------------------
VERITAS Software Corp.(a) 200 16,725
- -------------------------------------------------------------
228,197
- -------------------------------------------------------------
COMMUNICATIONS EQUIPMENT-1.35%
Tut Systems, Inc.(a) 400 23,000
- -------------------------------------------------------------
DISTRIBUTORS (FOOD & HEALTH)-0.74%
Patterson Dental Co.(a) 300 12,712
- -------------------------------------------------------------
ELECTRICAL EQUIPMENT-0.30%
American Power Conversion Corp.(a) 100 5,112
- -------------------------------------------------------------
ELECTRONICS (INSTRUMENTATION)-1.35%
Perkin-Elmer Corp. 50 4,753
- -------------------------------------------------------------
Waters Corp.(a) 200 18,200
- -------------------------------------------------------------
22,953
- -------------------------------------------------------------
ELECTRONICS (SEMICONDUCTORS)-4.05%
Flextronics International Ltd.(a) 200 8,475
- -------------------------------------------------------------
Level One Communications, Inc.(a) 400 15,800
- -------------------------------------------------------------
Micrel, Inc.(a) 400 19,700
- -------------------------------------------------------------
PMC-Sierra, Inc.(a) 200 14,862
- -------------------------------------------------------------
Vitesse Semiconductor Corp.(a) 200 10,338
- -------------------------------------------------------------
69,175
- -------------------------------------------------------------
FINANCIAL (DIVERSIFIED)-2.41%
FINOVA Group, Inc. 300 18,075
- -------------------------------------------------------------
SEI Investments Co. 200 23,025
- -------------------------------------------------------------
41,100
- -------------------------------------------------------------
FOODS-0.56%
Flowers Industries, Inc. 400 9,625
- -------------------------------------------------------------
HEALTH CARE (DIVERSIFIED)-0.90%
Allergan, Inc. 200 15,375
- -------------------------------------------------------------
</TABLE>
4
<PAGE> 7
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
HEALTH CARE (DRUGS-GENERIC & OTHER)-2.38%
MedImmune, Inc.(a) 450 $ 22,275
- -------------------------------------------------------------
Mylan Laboratories, Inc. 600 18,300
- -------------------------------------------------------------
40,575
- -------------------------------------------------------------
HEALTH CARE (MANAGED CARE)-1.56%
Express Scripts, Inc.-Class A(a) 200 13,150
- -------------------------------------------------------------
PacifiCare Health Systems, Inc.-Class
B(a) 100 7,075
- -------------------------------------------------------------
Trigon Healthcare, Inc.(a) 200 6,388
- -------------------------------------------------------------
26,613
- -------------------------------------------------------------
HEALTH CARE (MEDICAL PRODUCTS & SUPPLIES)-2.12%
Bausch & Lomb Inc. 100 6,138
- -------------------------------------------------------------
Henry Schein, Inc.(a) 200 8,412
- -------------------------------------------------------------
Safeskin Corp.(a) 400 9,350
- -------------------------------------------------------------
VISX, Inc.(a) 200 12,200
- -------------------------------------------------------------
36,100
- -------------------------------------------------------------
HEALTH CARE (SPECIALIZED SERVICES)-0.72%
Omnicare, Inc. 400 12,250
- -------------------------------------------------------------
HOMEBUILDING-0.76%
Centex Corp. 300 12,955
- -------------------------------------------------------------
INSURANCE (LIFE/HEALTH)-0.91%
AFLAC Inc. 200 8,575
- -------------------------------------------------------------
Protective Life Corp. 200 6,913
- -------------------------------------------------------------
15,488
- -------------------------------------------------------------
INVESTMENT MANAGEMENT-1.02%
Federated Investors, Inc.-Class B 900 17,438
- -------------------------------------------------------------
LEISURE TIME (PRODUCTS)-0.91%
Harley-Davidson, Inc. 300 15,600
- -------------------------------------------------------------
MACHINERY (DIVERSIFIED)-0.65%
Applied Power, Inc.-Class A 300 11,100
- -------------------------------------------------------------
RESTAURANTS-2.45%
Brinker International, Inc.(a) 400 11,000
- -------------------------------------------------------------
CKE Restaurants, Inc. 400 9,500
- -------------------------------------------------------------
Papa John's International, Inc.(a) 400 16,275
- -------------------------------------------------------------
Sonic Corp.(a) 200 5,050
- -------------------------------------------------------------
41,825
- -------------------------------------------------------------
RETAIL (COMPUTERS & ELECTRONICS)-0.85%
CompUSA, Inc.(a) 300 3,788
- -------------------------------------------------------------
Tandy Corp. 200 10,800
- -------------------------------------------------------------
14,588
- -------------------------------------------------------------
RETAIL (DEPARTMENT STORES)-0.79%
Kohl's Corp.(a) 200 13,550
- -------------------------------------------------------------
RETAIL (DISCOUNTERS)-0.77%
Dollar Tree Stores, Inc. 100 4,319
- -------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
RETAIL (DISCOUNTERS)-(CONTINUED)
99 Cents Only Stores(a) 200 $ 8,875
- -------------------------------------------------------------
13,194
- -------------------------------------------------------------
RETAIL (HOME SHOPPING)-0.23%
Micro Warehouse, Inc.(a) 100 3,900
- -------------------------------------------------------------
RETAIL (SPECIALTY)-3.26%
General Nutrition Companies, Inc.(a) 500 8,062
- -------------------------------------------------------------
Hollywood Entertainment Corp.(a) 400 13,525
- -------------------------------------------------------------
Linens 'N Things, Inc.(a) 300 11,063
- -------------------------------------------------------------
Tiffany & Co. 400 23,050
- -------------------------------------------------------------
55,700
- -------------------------------------------------------------
RETAIL (SPECIALTY-APPAREL)-5.27%
Abercrombie & Fitch Co.-Class A(a) 200 15,350
- -------------------------------------------------------------
American Eagle Outfitters, Inc.(a) 300 20,512
- -------------------------------------------------------------
AnnTaylor Stores Corp.(a) 400 15,500
- -------------------------------------------------------------
Intimate Brands, Inc. 300 11,963
- -------------------------------------------------------------
Men's Wearhouse, Inc. (The)(a) 500 14,813
- -------------------------------------------------------------
TJX Companies, Inc. 400 11,825
- -------------------------------------------------------------
89,963
- -------------------------------------------------------------
SAVINGS & LOAN COMPANIES-2.47%
Astoria Financial Corp. 300 13,725
- -------------------------------------------------------------
Dime Bancorp, Inc. 500 12,125
- -------------------------------------------------------------
GreenPoint Financial Corp. 500 16,375
- -------------------------------------------------------------
42,225
- -------------------------------------------------------------
SERVICES (ADVERTISING/MARKETING)-1.63%
CMGI Inc.(a) 100 12,200
- -------------------------------------------------------------
Lamar Advertising Co.(a) 400 15,700
- -------------------------------------------------------------
27,900
- -------------------------------------------------------------
SERVICES (COMMERCIAL & CONSUMER)-0.86%
Galileo International, Inc. 300 14,700
- -------------------------------------------------------------
SERVICES (COMPUTER SYSTEMS)-2.57%
CIBER, Inc.(a) 400 11,000
- -------------------------------------------------------------
Insight Enterprises, Inc.(a) 400 20,000
- -------------------------------------------------------------
Keane, Inc.(a) 400 12,900
- -------------------------------------------------------------
43,900
- -------------------------------------------------------------
SERVICES (DATA PROCESSING)-1.73%
Affiliated Computer Services, Inc.(a) 100 4,825
- -------------------------------------------------------------
CSG Systems International, Inc.(a) 200 14,975
- -------------------------------------------------------------
Fiserv, Inc.(a) 200 9,788
- -------------------------------------------------------------
29,588
- -------------------------------------------------------------
SPECIALTY PRINTING-0.60%
Valassis Communications, Inc.(a) 200 10,225
- -------------------------------------------------------------
</TABLE>
5
<PAGE> 8
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
TEXTILES (APPAREL)-2.37%
Gucci Group N.V.-ADR-New York shares 200 $ 13,763
- -------------------------------------------------------------
Jones Apparel Group, Inc.(a) 400 12,500
- --------------------------------------------------------------
Tommy Hilfiger Corp.(a) 200 14,150
- -------------------------------------------------------------
40,413
- -------------------------------------------------------------
Total Common Stocks (Cost $1,289,083) $1,327,163
- -------------------------------------------------------------
OPTIONS PURCHASED-0.67%
</TABLE>
<TABLE>
<CAPTION>
NUMBER
OF EXERCISE EXPIRATION
CONTRACTS PRICE DATE
<S> <C> <C> <C> <C>
CALLS-0.67%
BIOTECHNOLOGY-0.27%
AMEX Biotech Index 500 200 Mar-99 4,625
- ---------------------------------------------------------------------
COMPUTERS (NETWORKING)-0.12%
FORE Systems, Inc. 200 17.50 Apr-99 500
- ---------------------------------------------------------------------
FORE Systems, Inc. 900 20 Apr-99 1,463
- ---------------------------------------------------------------------
1,963
- ---------------------------------------------------------------------
COMPUTERS (PERIPHERALS)-0.02%
Iomega Corp. 2,000 10 Feb-99 312
- ---------------------------------------------------------------------
HEALTH CARE (MEDICAL PRODUCTS &
SUPPLIES)-0.26%
Baxter International
Inc. 1,600 70 Feb-99 4,500
- ---------------------------------------------------------------------
Total Options Purchased
(Cost $12,178) $11,400
- ---------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
<S> <C> <C>
GOVERNMENT AGENCY OBLIGATIONS-31.34%
Federal Home Loan Discount Notes,
4.62%, 02/01/99 $535,000 $ 535,000
- --------------------------------------------------------------
TOTAL INVESTMENTS-109.75% 1,873,563
- --------------------------------------------------------------
LIABILITIES LESS OTHER ASSETS-(9.75)% (166,446)
- --------------------------------------------------------------
NET ASSETS-100.00% $1,707,117
==============================================================
</TABLE>
SECURITIES SOLD SHORT(b)
JANUARY 31, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES
SOLD MARKET
SHORT VALUE
<S> <C> <C>
SECURITIES SOLD SHORT
Advanced Micro Devices, Inc. 200 $ 4,588
- ------------------------------------------------------------
ANADIGICS, Inc. 400 7,050
- ------------------------------------------------------------
Dollar General Corp. 200 4,988
- ------------------------------------------------------------
HEALTHSOUTH Corp. 900 12,206
- ------------------------------------------------------------
I2 Technologies, Inc. 500 17,437
- ------------------------------------------------------------
J.D. Edwards & Co. 200 4,062
- ------------------------------------------------------------
Ocular Sciences, Inc. 200 4,625
- ------------------------------------------------------------
Shared Medical Systems Corp. 100 4,700
- ------------------------------------------------------------
United Assets Management Corp. 300 6,975
- ------------------------------------------------------------
$66,631
============================================================
</TABLE>
Notes to Schedule of Investments:
(a) Non-income producing security.
(b) Collateral on short sales was segregated by the Fund in the amount of
$119,878 which represents 179.91% of market value of securities sold short.
Abbreviation:
ADR - American Depositary Receipt
See Notes to Financial Statements.
6
<PAGE> 9
STATEMENT OF ASSETS AND LIABILITIES
JANUARY 31, 1999
(UNAUDITED)
<TABLE>
<S> <C>
ASSETS:
Investments, at market value (cost
$1,836,261) $1,873,563
- ---------------------------------------------------------
Cash 18,965
- ---------------------------------------------------------
Receivables for:
Investments sold 11,799
- ---------------------------------------------------------
Investments sold short 64,413
- ---------------------------------------------------------
Fund shares sold 25,690
- ---------------------------------------------------------
Receivable due from advisor 1,063
- ---------------------------------------------------------
Total assets 1,995,493
- ---------------------------------------------------------
LIABILITIES:
Payables for investments purchased 218,784
- ---------------------------------------------------------
Market value of securities sold short
(proceeds from sales $64,413) 66,631
- ---------------------------------------------------------
Accrued administrative services fees 2,000
- ---------------------------------------------------------
Accrued distribution fees 372
- ---------------------------------------------------------
Accrued trustees' fees 70
- ---------------------------------------------------------
Accrued transfer agent fees 63
- ---------------------------------------------------------
Accrued operating expenses 456
- ---------------------------------------------------------
Total liabilities 288,376
- ---------------------------------------------------------
Net assets applicable to shares outstanding $1,707,117
=========================================================
NET ASSETS:
Class A $1,707,117
=========================================================
SHARES OUTSTANDING, $0.01 PAR VALUE PER SHARE:
Class A 156,473
=========================================================
Class A:
Net asset value and redemption price per
share $ 10.91
=========================================================
Offering price per share:
(Net asset value of $10.91
divided by / 94.50%) $ 11.54
=========================================================
</TABLE>
STATEMENT OF OPERATIONS
FOR THE PERIOD DECEMBER 30, 1998 (DATE OPERATIONS COMMENCED) THROUGH
JANUARY 31, 1999
(UNAUDITED)
<TABLE>
<S> <C>
INVESTMENT INCOME:
Interest $ 3,452
- --------------------------------------------------------
EXPENSES:
Advisory fees 1,090
- --------------------------------------------------------
Administrative services fees 2,000
- --------------------------------------------------------
Legal fees 528
- --------------------------------------------------------
Custodian fees 1,464
- --------------------------------------------------------
Transfer agent fees-Class A 69
- --------------------------------------------------------
Trustees' fees 70
- --------------------------------------------------------
Distribution fees-Class A 382
- --------------------------------------------------------
Other 9
- --------------------------------------------------------
Total expenses 5,612
- --------------------------------------------------------
Less: Expenses paid indirectly (1,464)
- --------------------------------------------------------
Fees waived and reimbursed by advisor (2,153)
- --------------------------------------------------------
Net expenses 1,995
- --------------------------------------------------------
Net investment income 1,457
- --------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENT
SECURITIES AND SECURITIES SOLD SHORT:
Net realized gain (loss) from:
Investment securities 95,375
- --------------------------------------------------------
Securities sold short (228)
- --------------------------------------------------------
95,147
- --------------------------------------------------------
Net unrealized appreciation (depreciation) of:
Investment securities 37,302
- --------------------------------------------------------
Securities sold short (2,218)
- --------------------------------------------------------
35,084
- --------------------------------------------------------
Net gain from investment securities and
securities sold short 130,231
- --------------------------------------------------------
Net increase in net assets resulting from
operations $131,688
========================================================
</TABLE>
See Notes to Financial Statements.
7
<PAGE> 10
STATEMENT OF CHANGES IN NET ASSETS
FOR THE PERIOD DECEMBER 30, 1998 (DATE OPERATIONS COMMENCED) THROUGH
JANUARY 31, 1999
(UNAUDITED)
<TABLE>
<S> <C>
OPERATIONS:
Net investment income $ 1,457
- ------------------------------------------------------------------------
Net realized gain from investment securities and
securities sold short 95,147
- ------------------------------------------------------------------------
Net unrealized appreciation of investment securities and
securities sold short 35,084
- ------------------------------------------------------------------------
Net increase in net assets resulting from operations 131,688
- ------------------------------------------------------------------------
Share transactions-net:
Class A 1,575,429
- ------------------------------------------------------------------------
Net increase in net assets 1,707,117
- ------------------------------------------------------------------------
NET ASSETS:
Beginning of period --
- ------------------------------------------------------------------------
End of period $1,707,117
========================================================================
NET ASSETS CONSIST OF:
Shares of beneficial interest $1,575,429
- ------------------------------------------------------------------------
Undistributed net investment income 1,457
- ------------------------------------------------------------------------
Undistributed net realized gain from investment securities
and securities sold short 95,147
- ------------------------------------------------------------------------
Unrealized appreciation of investment securities and
securities sold short 35,084
- ------------------------------------------------------------------------
$1,707,117
========================================================================
</TABLE>
NOTES TO FINANCIAL STATEMENTS
JANUARY 31, 1999
(UNAUDITED)
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES
AIM Mid Cap Opportunities Fund (the "Fund") is a series portfolio of AIM Special
Opportunities 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 two
investment portfolios. The Fund commenced operations on December 30, 1998. The
Fund currently offers Class A shares to employees of AIM Management Group Inc.,
AMVESCAP PLC and their affiliates, and to any current or retired officer,
director or trustee of The AIM Family of Funds. Class B and Class C shares of
the Fund are not currently available. Class A shares are sold with a front-end
sales charge. Matters affecting each portfolio or class are 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 capital appreciation.
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenses during
the reporting period. Actual results could differ from those estimates. The
following is a summary of 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 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
traded in the over-the-counter market (but not including securities reported
on the NASDAQ National Market System) is valued at the mean between the last
bid and asked prices based upon quotes furnished by market makers for such
securities. Each security reported on the NASDAQ National Market System is
valued at the last sales price on the valuation date or, absent a last sales
price, at the closing bid price. Debt obligations (including convertible
bonds) are valued on the basis of prices provided by an independent pricing
service. Prices provided by the pricing service may be determined without
exclusive reliance on quoted prices and may reflect appropriate factors such
as yield, type of issue, coupon rate and maturity date. Securities for which
market prices are not provided by any of the above methods are valued at the
mean between the last bid and asked prices based upon quotes furnished by
independent sources. Securities for which market quotations either 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.
8
<PAGE> 11
B. Accounting for Securities Sold Short -- When the Fund sells common stock
short, an amount equal to the proceeds of the sale is recorded as an asset.
This asset is offset by a liability (representing the borrowed security)
recorded on the books of the Fund at the market value of the common stock
determined each day in accordance with the procedures for security valuations
discussed in section "A" above. The Fund's risk is that the value of the
security will increase rather than decline and thus an unrealized loss will
be recorded. When the Fund closes out a short position by delivering the
stock sold short, the Fund will realize a gain or loss and the liability
related to such short position will be eliminated. The Fund is required to
segregate cash or securities as collateral at a level that is equal to the
current market value of the securities sold short to secure its obligation to
the broker who delivered such securities to the buyer on behalf of the Fund.
The amount segregated as collateral deposits will not at anytime exceed 25%
of the Fund's net assets.
C. Securities Transactions, Investment Income and Distributions -- Securities
transactions are accounted for on a trade date basis. Realized gains or
losses on sales are computed on the basis of specific identification of the
securities sold. Interest income is recorded as earned from settlement date
and is recorded on the accrual basis. Dividend income, dividend expense on
short sales and distributions to shareholders are recorded on the ex-dividend
date.
D. Federal Income Taxes -- The Fund intends to comply with the requirements of
the Internal Revenue Code necessary to qualify as a regulated investment
company and, as such, will not be subject to federal income taxes on
otherwise taxable income (including net realized capital gains) which is
distributed to shareholders. Therefore, no provision for federal income taxes
is recorded in the financial statements.
E. Call Options -- The Fund may write and buy call options, including securities
index options. 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 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.
An option on a securities index gives the holder the right to receive a
cash "exercise settlement amount" equal to the difference between the
exercise price of the option and the value of the underlying stock index on
the exercise date, multiplied by a fixed "index multiplier." A securities
index fluctuates with changes in the market values of the securities included
in the index. In the purchase of securities index options the principal risk
is that the premium and transaction costs paid by the Fund in purchasing an
option will be lost if the changes in the level of the index do not exceed
the cost of the option. In writing securities index options, the principal
risk is that the Fund could bear a loss on the options that would be only
partially offset (or not offset at all) by the increased value or reduced
cost of hedged securities. Moreover, in the event the Fund were unable to
close an option it had written, it might be unable to sell the securities
used as cover.
The Fund will not write options if, immediately thereafter, the aggregate
value of the securities underlying all such options, determined as of the
dates such options were written, would exceed 50% of the total assets of the
Fund.
F. Put Options -- The Fund may purchase and write put options including
securities index options. By purchasing a put option, the Fund obtains the
right (but not the obligation) to sell the options' underlying instrument at
a fixed strike price. In return for this right, a Fund pays an option
premium. The option's underlying instrument may be a security, securities
index, or a futures contract. Put options may be used by a Fund to hedge
securities it owns by locking in a minimum price at which the Fund can sell.
If security prices fall, the put option could be exercised to offset all or a
portion of the Fund's resulting losses. At the same time, because the maximum
the Fund has at risk is the cost of the option, purchasing put options does
not eliminate the potential for the Fund to profit from an increase in the
value of the securities hedge. The Fund may write put options to earn
additional income in the form of option premiums if it expects the price of
the underlying securities to remain stable or rise during the option period
so that the option will not be exercised. The risk in this strategy is that
the price of the underlying securities may decline by an amount greater than
the premium received. The Fund will not purchase options if, at the time of
the investment, the aggregate premiums paid for outstanding options will
exceed 25% of the Fund's total assets.
G. Expenses -- Distribution and transfer agency expenses directly attributable
to a class of shares are charged to that class' operations. All other
expenses which are attributable to more than one class are allocated between
the classes.
9
<PAGE> 12
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 an annual rate of 1% of the
Fund's average daily net assets for the first $1 billion of net assets and 0.95%
of the Fund's average daily net assets above $1 billion. During the period
December 30, 1998 (date operations commenced) through January 31, 1999, AIM
waived fees and reimbursed expenses of $2,153.
The Fund, pursuant to a master administrative services agreement with AIM, has
agreed to reimburse AIM for certain administrative costs incurred in providing
accounting services to the Fund. During the period December 30, 1998 (date
operations commenced) through January 31, 1999, AIM was reimbursed $2,000 for
such services.
The Fund, pursuant to a transfer agency and shareholder service agreement, has
agreed to pay A I M Fund Services, Inc. ("AFS") a fee for providing transfer
agency shareholder services to the Fund. During the period December 30, 1998
(date operations commenced) through January 31, 1999, AFS was paid $44 for such
services.
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
distribution plans pursuant to Rule 12b-1 under the 1940 Act with respect to the
Fund's Class A shares and Class C shares (the "Class A and C Plan"), and the
Fund's Class B shares (the "Class B Plan") (collectively, the "Plans"). The
Fund, pursuant to the Class A and C Plan, pays AIM Distributors compensation at
an annual rate of 0.35% of the average daily net assets attributable to the
Class A shares and 1.00% of the average daily net assets attributable to the
Class C shares. The Fund pursuant to the Class B Plan, pays AIM Distributors
compensation at an annual rate of 1.00% of the average daily net assets
attributable to the Class B 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. As of January 31, 1999, Class B and
Class C Shares are not currently available. During the period December 30, 1998
(date operations commenced) through January 31, 1999, Class A paid AIM
Distributors $382 as compensation under the Plan.
Certain officers and trustees of the Trust are officers and directors of AIM,
AIM Distributors and AFS.
NOTE 3-INDIRECT EXPENSES
During the period December 30, 1998 (date operations commenced) through January
31, 1999, the Fund received reductions in transfer agency fees from AFS (an
affiliate of AIM) and reductions in custodian fees of $1 and $1,463,
respectively under expense offset arrangements. The effect of the above
arrangements resulted in a reduction of the Fund's total expenses of $1,464
during the period December 30, 1998 (date operations commenced) through January
31, 1999.
NOTE 4-TRUSTEES' FEES
Trustees' fees represent remuneration paid or accrued to each trustee who is not
an "interested person" of AIM. The Trust may invest 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 The Chase Manhattan Bank. The Fund may borrow up to
the lesser of (i) $240,000,000 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. Interest on
borrowings under the line of credit is payable on maturity or prepayment date.
During the period December 30, 1998 (date operations commenced) through January
31, 1999, the Fund did not borrow under the line of credit agreement. The funds
which are parties to the line of credit are charged a commitment fee of 0.06% on
the unused balance of the committed line. The commitment fee is allocated among
such funds based on their respective average net assets for the period.
NOTE 6-INVESTMENT SECURITIES
The aggregate amount of investment securities (other than short-term securities)
purchased and sold by the Fund during the period December 30, 1998 (date
operations commenced) through January 31, 1999 was $1,406,282 and $209,452,
respectively.
The amount of unrealized appreciation (depreciation) of investment securities,
on a tax basis, as of January 31, 1999 is as follows:
<TABLE>
<S> <C>
Aggregate unrealized appreciation of:
Investment securities $ 76,775
- --------------------------------------------------------
Securities sold short 2,196
- --------------------------------------------------------
Aggregate unrealized (depreciation) of:
Investment securities (39,473)
- --------------------------------------------------------
Securities sold short (4,414)
- --------------------------------------------------------
Net unrealized appreciation of investment
securities $ 35,084
========================================================
</TABLE>
Investments have the same cost for tax and financial statement purposes.
Proceeds from securities sold short for tax purposes is the same.
10
<PAGE> 13
NOTE 7-SHARE INFORMATION
Changes in shares Class A outstanding during the period December 30, 1998 (date
operations commenced) through January 31, 1999 are as follows:
<TABLE>
<CAPTION>
SHARES AMOUNT
------- ----------
<S> <C> <C>
Sold 161,518 $1,625,429
- ----------------------------------------------------------------------------------
Reacquired (5,045) (50,000)
- ----------------------------------------------------------------------------------
156,473 $1,575,429
==================================================================================
</TABLE>
NOTE 8-FINANCIAL HIGHLIGHTS
Shown below are the financial highlights for a share of Class A outstanding
during the period December 30, 1998 (date operations commenced) through January
31, 1999.
<TABLE>
<CAPTION>
<S> <C>
Net asset value, beginning of period $ 10.00
- ------------------------------------------------------------ --------
Income from investment operations:
Net investment income 0.01
- ------------------------------------------------------------ --------
Net gains on securities (both realized and unrealized) 0.90
- ------------------------------------------------------------ --------
Total from investment operations 0.91
- ------------------------------------------------------------ --------
Net asset value, end of period $ 10.91
============================================================ ========
Total return(a) 9.10%
============================================================ ========
Ratios/supplemental data:
Net assets, end of period (000s omitted) $ 1,707
============================================================ ========
Ratio of expenses to average net assets:
Excluding indirect expenses(b) 1.83%(c)
============================================================ ========
Including indirect expenses 3.17%(c)
============================================================ ========
Ratio of net investment income to average net assets(d) 1.34%(c)
============================================================ ========
Portfolio turnover rate 29%
============================================================ ========
</TABLE>
(a) Does not deduct sales charges and is not annualized for periods less than
one year.
(b) After fee waivers and/or expense reimbursements. Ratio of expenses to
average net assets prior to fee waivers and/or expense reimbursements was
3.80% (annualized).
(c) Ratios are annualized and based on average net assets of $1,243,607.
(d) After fee waivers and/or expense reimbursements. Ratio of net investment
income(loss) to average net assets prior to fee waivers and/or expense
reimbursements was (0.64)% (annualized).
11
<PAGE> 14
<TABLE>
<S> <C> <C>
BOARD OF TRUSTEES OFFICERS OFFICE OF THE FUND
Charles T. Bauer Charles T. Bauer 11 Greenway Plaza
Chairman Chairman Suite 100
A I M Management Group Inc. Houston, TX 77046
Robert H. Graham
Bruce L. Crockett President INVESTMENT ADVISOR
Director
ACE Limited; John J. Arthur A I M Advisors, Inc.
Formerly Director, President, and Senior Vice President and Treasurer 11 Greenway Plaza
Chief Executive Officer Suite 100
COMSAT Corporation Carol F. Relihan Houston, TX 77046
Senior Vice President and Secretary
Owen Daly II TRANSFER AGENT
Director Gary T. Crum
Cortland Trust Inc. Senior Vice President A I M Fund Services, Inc.
P.O. Box 4739
Edward K. Dunn Jr. Edgar M. Larsen Houston, TX 77210-4739
Chairman, Mercantile Mortgage Corp.; Senior Vice President
Formerly Vice Chairman and President, CUSTODIAN
Mercantile-Safe Deposit & Trust Co.; and Dana R. Sutton
President, Mercantile Bankshares Vice President and Assistant Treasurer State Street Bank
and Trust Company
Jack Fields Melville B. Cox 225 Franklin Street
Chief Executive Officer Vice President Boston, MA 02111
Texana Global, Inc.;
Formerly Member Mary J. Benson COUNSEL TO THE FUND
of the U.S. House of Representatives Assistant Vice President
and Assistant Treasurer Ballard Spahr
Carl Frischling Andrews & Ingersoll, LLP
Partner Sheri Morris 1735 Market Street
Kramer, Levin, Naftalis & Frankel LLP Assistant Vice President Philadelphia, PA 19103
and Assistant Treasurer
Robert H. Graham COUNSEL TO THE TRUSTEES
President and Chief Executive Officer Renee A. Friedli
A I M Management Group Inc. Assistant Secretary Kramer, Levin, Naftalis & Frankel LLP
919 Third Avenue
Prema Mathai-Davis P. Michelle Grace New York, NY 10022
Chief Executive Officer, YWCA of the U.S.A.; Assistant Secretary
Commissioner, New York City Dept. for the Aging; DISTRIBUTOR
and member of the Board of Directors; Metropolitan Jeffrey H. Kupor
Transportation Authority of New York State Assistant Secretary A I M Distributors, Inc.
11 Greenway Plaza
Lewis F. Pennock Nancy L. Martin Suite 100
Attorney Assistant Secretary Houston, TX 77046
Ian W. Robinson Ofelia M. Mayo
Consultant; Formerly Executive Assistant Secretary
Vice President and
Chief Financial Officer Lisa A. Moss
Bell Atlantic Management Assistant Secretary
Services, Inc.
Kathleen J. Pflueger
Louis S. Sklar Assistant Secretary
Executive Vice President
Hines Interests Samuel D. Sirko
Limited Partnership Assistant Secretary
Stephen I. Winer
Assistant Secretary
</TABLE>
14
<PAGE> 15
THE AIM FAMILY OF FUNDS--Registered Trademark--
<TABLE>
<S> <C> <C>
GROWTH FUNDS MONEY MARKET FUNDS A I M Management Group Inc. has provided
AIM Aggressive Growth Fund(1) AIM Money Market Fund leadership in the mutual fund industry since 1976
AIM Blue Chip Fund AIM Tax-Exempt Cash Fund and managed approximately $109 billion in assets
AIM Capital Development Fund for more than 6.2 million shareholders, including
AIM Constellation Fund INTERNATIONAL GROWTH FUNDS individual investors, corporate clients, and
AIM Mid Cap Equity Fund(2), (A) AIM Advisor International Value Fund financial institutions, as of December 31, 1998.
AIM Mid Cap Opportunities Fund AIM Asian Growth Fund The AIM Family of Funds--Registered Trademark--
AIM Select Growth Fund(3) AIM Developing is distributed nationwide, and AIM today is the
AIM Small Cap Growth Fund(2), (B) Markets Fund(2) 10th-largest mutual fund complex in the U.S. in
AIM Small Cap Opportunities Fund AIM Europe Growth Fund(2) assets under management, according to Strategic
AIM Value Fund AIM European Development Fund Insight, an independent mutual fund monitor.
AIM Weingarten Fund AIM International Equity Fund
AIM Japan Growth Fund(2)
GROWTH & INCOME FUNDS AIM Latin American Growth Fund(2)
AIM Advisor Flex Fund AIM New Pacific Growth Fund(2)
AIM Advisor Large Cap Value Fund
AIM Advisor MultiFlex Fund GLOBAL GROWTH FUNDS
AIM Advisor Real Estate Fund AIM Global Aggressive Growth Fund
AIM Balanced Fund AIM Global Growth Fund
AIM Basic Value Fund(2), (C)
AIM Charter Fund GLOBAL GROWTH & INCOME FUNDS
AIM Global Growth & Income Fund(2)
INCOME FUNDS AIM Global Utilities Fund
AIM Floating Rate Fund(2)
AIM High Yield Fund GLOBAL INCOME FUNDS
AIM High Yield Fund II AIM Emerging Markets Debt Fund(2), (D)
AIM Income Fund AIM Global Government Income Fund(2)
AIM Intermediate Government Fund AIM Global Income Fund
AIM Limited Maturity Treasury Fund AIM Strategic Income Fund(2)
TAX-FREE INCOME FUNDS THEME FUNDS
AIM High Income Municipal Fund AIM Global Consumer Products and Services Fund(2)
AIM Municipal Bond Fund AIM Global Financial Services Fund(2)
AIM Tax-Exempt Bond Fund of Connecticut AIM Global Health Care Fund(2)
AIM Tax-Free Intermediate Fund AIM Global Infrastructure Fund(2)
AIM Global Resources Fund(2)
AIM Global Telecommunications Fund(2)
AIM Global Trends Fund(2), (E)
</TABLE>
(1) AIM Aggressive Growth Fund reopened to new investors November 16, 1998. (2)
Effective May 29, 1998, A I M Advisors, Inc. became advisor to the former GT
Global Funds. (3) On May 1, 1998, AIM Growth Fund was renamed AIM Select Growth
Fund. (A) On September 8, 1998, AIM Mid Cap Growth Fund was renamed AIM Mid Cap
Equity Fund. (B) On September 8, 1998, AIM Small Cap Equity Fund was renamed AIM
Small Cap Growth Fund. (C) On September 8, 1998, AIM America Value Fund was
renamed AIM Basic Value Fund. (D) On September 8, 1998, AIM Global High Income
Fund was renamed AIM Emerging Markets Debt Fund. (E) On September 8, 1998, AIM
New Dimension Fund was renamed AIM Global Trends Fund. For more complete
information about any AIM Fund(s), including sales charges and expenses, ask
your financial consultant or securities dealer for a free prospectus(es). Please
read the prospectus(es) carefully before you invest or send money.
