<PAGE> 1
SEMIANNUAL REPORT / JANUARY 31 2000
AIM LARGE CAP OPPORTUNITIES FUND
[COVER IMAGE]
[AIM LOGO APPEARS HERE]
<PAGE> 2
[COVER IMAGE]
-------------------------------------
MIDMORNING, DONNINGTON, GLOUCESTER BY CHARLES NEAL
A BEAUTIFUL PAINTING IS A PLEASING BLEND OF CAREFULLY SELECTED
COLORS. SIMILARLY, IN CONSTRUCTING THE PORTFOLIO OF AIM LARGE
CAP OPPORTUNITIES FUND, WE CAREFULLY SELECT THE STOCKS OF
LARGER COMPANIES THAT WE BELIEVE HAVE EXCITING PROSPECTS.
-------------------------------------
AIM Large Cap Opportunities Fund is for shareholders who seek long-term growth
of capital by investing in a portfolio consisting primarily of large-company
stocks which management believes involve "special opportunities."
ABOUT FUND PERFORMANCE AND PORTFOLIO DATA THROUGHOUT THIS REPORT:
o AIM Large Cap Opportunities Fund's performance figures are historical and
they reflect changes in net asset value and the reinvestment of
distributions. Had expenses not been waived in the past, returns for the
fund would have been lower.
o When sales charges are included in performance figures, Class A share
performance reflects the maximum 5.5% 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
expenses.
o Because the fund has been in existence for less than a year (since
12/30/99), total return provided is cumulative total return that has not yet
been annualized.
o The fund's cumulative total return, including sales charges, for the period
ended 12/31/99, the most recent calendar quarter end, was -5.48%.
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.
o Past performance cannot guarantee comparable future results.
ABOUT INDEXES AND OTHER PERFORMANCE BENCHMARKS CITED IN THIS REPORT:
o The Dow Jones Industrial Average (the Dow) is a price-weighted average of 30
actively traded primarily industrial stocks.
o The unmanaged Standard & Poor's Composite Index of 500 Stocks (the S&P 500)
is generally considered representative of the stock market.
o An investment cannot be made in an index. 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 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 LARGE CAP OPPORTUNITIES FUND
<PAGE> 3
SEMIANNUAL REPORT / CHAIRMAN'S LETTER
Dear Fellow Shareholder:
During 1999 and very early this year, well-known
[PHOTO OF indicators of large-company stocks such as the Dow Jones
Charles T. Industrial Average and the S&P 500 began to seem
Bauer, unstoppable. Yet toward the close of the period covered by
Chairman of this report, both came to an abrupt halt. The Dow had
the Board of reached an all-time high of 11,723 in mid-January; by
THE FUND January 31, it had declined to 10,940. Similarly, the S&P
APPEARS HERE] 500 reached its all-time high of 1,469 at the end of 1999;
one month later that index stood at 1,394.
However, some sectors of the stock market, particularly
technology, remained favorites. The tech-dominated NASDAQ
Composite Index continued to rise, reaching 3,940 on
January 31, up 49.52% in six months and headed toward new
highs after the close of the reporting period. The ascent
of this sector had many worried, however, as market
valuations of some tech companies soared to untested
heights. While a number of observers anticipated a change in market sentiment,
no one can predict when that might occur.
We think this divergent market is a good environment for the long-short
strategy pursued by your fund. The strategy, which is explained in further
detail in the pages that follow, attempts to take advantage of downturns in
segments of the market as well as rallies.
LOOKING AHEAD
As we look about at the close of this reporting period, we are encouraged by
multiple signs of economic health in Europe and Asia, not to mention the U.S.
economic expansion, which is now the longest on record; and we welcome the
Federal Reserve's vigilant stance on inflation. However, we know how quickly
the fortunes of the market or of a market segment can change. For our
shareholders, we therefore reiterate our commitment to investing through a
financial advisor. In addition to helping you select investments appropriate to
your time horizon and risk tolerance, a financial advisor can keep you informed
about how shifting market conditions affect you and your portfolio--and help
assure that when you do alter your investments, there's a logical reason for
doing so. AIM believes every investor should be guided by a financial
professional.
FUND MANAGERS COMMENT
In the pages that follow, your fund's portfolio managers discuss how they
managed your fund for the period ended January 31, how the markets behaved and
what they foresee for the near future. We trust you will find their discussion
informative. If you have any questions or comments, we invite you to contact us,
either at our Web site, aimfunds.com, or through our Client Services department
at 800-959-4246. Information about your account is also available through our
automated AIM Investor Line, 800-246-5463.
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.
-------------------------------------
WE THINK THIS
DIVERGENT MARKET IS A
GOOD ENVIRONMENT FOR
THE LONG-SHORT STRATEGY
PURSUED BY YOUR FUND.
-------------------------------------
AIM LARGE CAP OPPORTUNITIES FUND
<PAGE> 4
SEMIANNUAL REPORT / MANAGERS' OVERVIEW
NEW FUND OFF TO GOOD START DESPITE
VOLATILE MARKET ENVIRONMENT
THE FUND HAD BEEN IN EXISTENCE A LITTLE MORE THAN A MONTH WHEN THE REPORTING
PERIOD ENDED. HOW DID IT PERFORM? AIM Large Cap Opportunities Fund performed
well from its inception on December 30, 1999, through the end of the reporting
period, posting a cumulative total return (without sales charges) of 3.70%. That
was significantly better than the -4.71% total return for the S&P 500 Index for
the same period.
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 buying them at an
anticipated 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 to hold more 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 large-cap stocks, we anticipate
that 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 include companies that have made
significant technological advances or have undergone management changes.
Important economic or political developments and 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 buy the same
stock at the 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 can also leverage (borrow money), typically to buy additional securities.
Leveraging may magnify changes in the fund's net asset value.
WHAT ARE THE RISKS INVOLVED?
Leveraging and short selling, along with other hedging strategies, may present
higher risks, but also offer greater potential rewards. Short sales involve
greater risk in that they rely on the manager's ability accurately to anticipate
a security's future value. The fund, which is not a complete investment program,
may not be appropriate for all investors. There is no guarantee that the fund
managers' investment strategies will help investors attain their goals. Please
see the prospectus for more information about specific investment strategies and
risks.
DURING THE FUND'S BRIEF EXISTENCE, HOW DID THE STOCK MARKET PERFORM?
Several key stock market indexes, including the Dow, soared to record heights in
January before retreating toward the end of the month. Investors were concerned
that the Federal Reserve Board (the Fed) would raise interest rates to slow
torrid economic growth and forestall inflation. These concerns sparked a market
sell-off in the final weeks of January.
HOW WAS THE FUND POSITIONED?
As of January 31, 2000, the fund had 64 holdings. The fund's holdings were
concentrated in the principal growth sectors, especially technology. Tech stocks
performed extremely well in 1999. Computers, e-commerce and the Internet are
changing the way the world communicates and conducts business, and investors
sought to capitalize on this revolution.
Please keep in mind that our sector weightings were the result of our
stock-selection process, which is based on company earnings and not
macro-economic predictions. We believe that earnings drive stock prices. We are
finding more companies with excellent growth prospects in the technology sector.
WHAT ARE SOME OF THE FUND'S TOP HOLDINGS?
Major stock holdings included Medtronic, Walt Disney, General Electric, Clarify
and Adelphia Communications. Medtronic makes devices to regulate erratic
heartbeats, tremors and other conditions; Walt Disney, the world's
second-largest media company, is involved in film and TV production,
-------------------------------------
THE FUND'S HOLDINGS WERE
CONCENTRATED IN THE PRINCIPAL
GROWTH SECTORS, ESPECIALLY
TECHNOLOGY.
-------------------------------------
See important fund and index disclosures inside front cover.
AIM LARGE CAP OPPORTUNITIES FUND
<PAGE> 5
SEMIANNUAL REPORT / MANAGERS' OVERVIEW
theme parks, publishing and other activities. General Electric is a
multi-faceted conglomerate that produces aircraft engines, transportation
equipment, appliances, medical imaging devices and plastics in addition to
electrical power. Clarify makes software that automates front-office functions
such as customer service, while Adelphia Communications provides
cable-television service to about five million subscribers throughout the United
States.
WHAT IS YOUR OUTLOOK?
The unprecedented economic expansion of the past few years has helped push stock
market indexes to record heights. Over the near term, we expect healthy economic
growth to continue. While such a trend would seemingly bode well for stocks, it
could contribute to volatility in the market, especially if the Fed deems that
the economy is growing too rapidly. On February 2, shortly after the close of
the reporting period, the central bank raised the federal funds rate to 5.75%.
Although by no means certain, it appears that the Fed is poised to raise
interest rates again in the months ahead to slow economic growth and forestall
inflation. Uncertainty about the Fed's direction could have an unsettling effect
on the stock market.
However, we remain optimistic about the long-term prospects for large-cap
stocks because corporate earnings remain solid for larger companies.
PORTFOLIO COMPOSITION
As of 1/31/00, based on total net assets
<TABLE>
<CAPTION>
====================================================================================================================================
TOP 10 EQUITY HOLDINGS TOP 10 INDUSTRIES TOP SHORT POSITIONS
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1. Medtronic, Inc. 1.84% 1. Computers (Software & Services) 12.57% 1. TMP Worldwide Inc. 2.71%
2. Walt Disney Co. (The) 1.75 2. Electronics (Semiconductors) 7.37 2. United Parcel Service-Class B 1.92
3. General Electric Co. 1.72 3. Investment Banking/Brokerage 4.22 3. Rambus, Inc. 1.58
4. Merrill Lynch & Co., Inc. 1.68 4. Communications Equipment 3.91 4. Stryker Corp. 1.42
5. Millipore Corp. 1.59 5. Oil & Gas (Drilling & Equipment) 3.51 5. Chemdex Corp. 0.78
6. Clarify, Inc. 1.57 6. Broadcasting (Television, Radio 6. Quintiles Transnational Corp. 0.55
& Cable) 2.62
7. Royal Dutch Petroleum Co.- 7. Computers (Networking) 2.27 7. Gap, Inc. (The) 0.36
New York Shares-ADR 1.51
8. Adelphia Communications Corp. 1.49 8. Telephone 2.26 8. Cardinal Health, Inc. 0.31
9. Goldman Sachs Group, Inc. (The) 1.47 9. Electronics (Instrumentation) 1.94
10. Nokia Oyj-ADR (Finland) 1.47 10. Financial (Diversified) 1.89
The fund's portfolio is subject to change, and there is no assurance that the fund will continue to
hold any particular security.
====================================================================================================================================
</TABLE>
-------------------------------------
...WE REMAIN OPTIMISTIC ABOUT THE
LONG-TERM PROSPECTS FOR LARGE-CAP
STOCKS BECAUSE CORPORATE EARNINGS
REMAIN SOLID FOR LARGER COMPANIES
-------------------------------------
See important fund and index disclosures inside front cover.
AIM LARGE CAP OPPORTUNITIES FUND
<PAGE> 6
SCHEDULE OF INVESTMENTS
January 31, 2000
(Unaudited)
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
COMMON STOCKS & OTHER EQUITY
STOCKS-64.78%
ALUMINUM-0.34%
Alcoa Inc. 300 $ 20,906
- -------------------------------------------------------------
BIOTECHNOLOGY-0.51%
Amgen Inc.(a) 500 31,844
- -------------------------------------------------------------
BROADCASTING (TELEVISION, RADIO &
CABLE)-2.62%
Adelphia Communications Corp.(a) 1,400 92,662
- -------------------------------------------------------------
AMFM Inc.(a) 900 70,200
- -------------------------------------------------------------
162,862
- -------------------------------------------------------------
CHEMICALS-0.66%
Du Pont (E.I.) de Nemours & Co. 700 41,300
- -------------------------------------------------------------
COMMUNICATIONS EQUIPMENT-3.91%
Comverse Technology, Inc.(a) 400 57,350
- -------------------------------------------------------------
Motorola, Inc. 500 68,375
- -------------------------------------------------------------
Nokia Oyj-ADR (Finland) 500 91,500
- -------------------------------------------------------------
QUALCOMM Inc.(a) 200 25,400
- -------------------------------------------------------------
242,625
- -------------------------------------------------------------
COMPUTERS (HARDWARE)-1.53%
Hewlett-Packard Co. 300 32,475
- -------------------------------------------------------------
Sun Microsystems, Inc.(a) 800 62,850
- -------------------------------------------------------------
95,325
- -------------------------------------------------------------
COMPUTERS (NETWORKING)-2.27%
Cisco Systems, Inc.(a) 700 76,650
- -------------------------------------------------------------
VeriSign, Inc.(a) 400 64,100
- -------------------------------------------------------------
140,750
- -------------------------------------------------------------
COMPUTERS (PERIPHERALS)-0.51%
EMC Corp.(a) 300 31,950
- -------------------------------------------------------------
COMPUTERS (SOFTWARE & SERVICES)-10.67%
America Online, Inc.(a) 1,100 62,631
- -------------------------------------------------------------
Citrix Systems, Inc.(a) 600 82,350
- -------------------------------------------------------------
Clarify, Inc.(a) 800 97,250
- -------------------------------------------------------------
Gemstar International Group Ltd.(a) 600 39,825
- -------------------------------------------------------------
Inktomi Corp.(a) 400 39,775
- -------------------------------------------------------------
Intuit Inc.(a) 400 24,125
- -------------------------------------------------------------
Lycos, Inc.(a) 1,200 88,125
- -------------------------------------------------------------
Open Market, Inc.(a) 1,300 66,950
- -------------------------------------------------------------
Oracle Corp.(a) 400 19,981
- -------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
COMPUTERS (SOFTWARE & SERVICES)-(CONTINUED)
Verio, Inc.(a) 1,300 $ 83,687
- -------------------------------------------------------------
VERITAS Software Corp.(a) 400 58,350
- -------------------------------------------------------------
663,049
- -------------------------------------------------------------
ELECTRICAL EQUIPMENT-1.72%
General Electric Co. 800 106,700
- -------------------------------------------------------------
ELECTRONICS (DEFENSE)-1.45%
General Motors Corp.-Class H(a) 800 90,000
- -------------------------------------------------------------
ELECTRONICS (INSTRUMENTATION)-1.94%
PE Corp-PE Biosystems Group 400 59,900
- -------------------------------------------------------------
SRS Labs, Inc.(a) 7,000 60,812
- -------------------------------------------------------------
120,712
- -------------------------------------------------------------
ELECTRONICS (SEMICONDUCTORS)-7.37%
Altera Corp.(a) 1,300 85,475
- -------------------------------------------------------------
ASM Lithography Holding N.V.
(Netherlands)(a) 600 73,762
- -------------------------------------------------------------
Flextronics International Ltd.
(Singapore)(a) 1,000 49,687
- -------------------------------------------------------------
Intel Corp. 900 89,044
- -------------------------------------------------------------
LSI Logic Corp.(a) 900 73,575
- -------------------------------------------------------------
Texas Instruments Inc. 800 86,300
- -------------------------------------------------------------
457,843
- -------------------------------------------------------------
ENTERTAINMENT-1.75%
Walt Disney Co. (The) 3,000 108,938
- -------------------------------------------------------------
FINANCIAL (DIVERSIFIED)-1.89%
American Express Co. 400 65,925
- -------------------------------------------------------------
Citigroup Inc. 900 51,694
- -------------------------------------------------------------
117,619
- -------------------------------------------------------------
HEALTH CARE (DIVERSIFIED)-0.42%
Bristol-Myers Squibb Co. 400 26,400
- -------------------------------------------------------------
HEALTH CARE (DRUGS-MAJOR
PHARMACEUTICALS)-0.71%
Schering-Plough Corp. 1,000 44,000
- -------------------------------------------------------------
HEALTH CARE (MEDICAL PRODUCTS &
SUPPLIES)-1.84%
Medtronic, Inc. 2,500 114,375
- -------------------------------------------------------------
INSURANCE (MULTI-LINE)-0.50%
American International Group, Inc. 300 31,238
- -------------------------------------------------------------
INVESTMENT BANKING/BROKERAGE-4.22%
Goldman Sachs Group, Inc. (The) 1,000 91,625
- -------------------------------------------------------------
</TABLE>
<PAGE> 7
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
INVESTMENT BANKING/BROKERAGE-(CONTINUED)
Merrill Lynch & Co., Inc. 1,200 $ 104,100
- -------------------------------------------------------------
Morgan Stanley Dean Witter & Co. 1,000 66,250
- -------------------------------------------------------------
261,975
- -------------------------------------------------------------
INVESTMENT MANAGEMENT-0.26%
Southwest Securities Group, Inc.-$2.83
Conv. Pfd. 500 16,313
- -------------------------------------------------------------
MANUFACTURING (SPECIALIZED)-1.59%
Millipore Corp. 2,300 98,469
- -------------------------------------------------------------
METALS MINING-0.94%
Phelps Dodge Corp. 1,000 58,125
- -------------------------------------------------------------
NATURAL GAS-1.09%
Enron Corp. 1,000 67,438
- -------------------------------------------------------------
OIL & GAS (DRILLING & EQUIPMENT)-3.51%
ENSCO International Inc. 3,000 68,625
- -------------------------------------------------------------
Schlumberger Ltd. 1,200 73,275
- -------------------------------------------------------------
Transocean Sedco Forex Inc. 2,400 76,350
- -------------------------------------------------------------
218,250
- -------------------------------------------------------------
OIL & GAS (EXPLORATION &
PRODUCTION)-0.23%
Kerr-McGee Corp.-$1.83 Conv. Pfd. 400 14,300
- -------------------------------------------------------------
OIL (INTERNATIONAL INTEGRATED)-1.51%
Royal Dutch Petroleum Co.-New York
Shares-ADR (Netherlands) 1,700 93,606
- -------------------------------------------------------------
RAILROADS-1.45%
Kansas City Southern Industries, Inc. 1,300 89,944
- -------------------------------------------------------------
RETAIL (BUILDING SUPPLIES)-0.27%
Home Depot, Inc. (The) 300 16,988
- -------------------------------------------------------------
RETAIL (DISCOUNTERS)-0.71%
Wal-Mart Stores, Inc. 800 43,800
- -------------------------------------------------------------
SERVICES (ADVERTISING/MARKETING)-1.76%
Interpublic Group of Companies, Inc. 1,100 50,600
- -------------------------------------------------------------
Lamar Advertising Co.(a) 1,000 58,625
- -------------------------------------------------------------
109,225
- -------------------------------------------------------------
SERVICES (COMPUTER SYSTEMS)-1.04%
Brocade Communications Systems,
Inc.(a) 400 64,800
- -------------------------------------------------------------
TELECOMMUNICATIONS
(CELLULAR/WIRELESS)-1.33%
Level 3 Communications, Inc.(a) 700 82,556
- -------------------------------------------------------------
TELEPHONE-2.26%
NTL Inc.(a) 500 62,906
- -------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
TELEPHONE-(CONTINUED)
RCN Corp.(a) 1,300 $ 77,269
- -------------------------------------------------------------
140,175
- -------------------------------------------------------------
Total Common Stocks & Other Equity
Interests (Cost $3,966,385) 4,024,400
- -------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
<S> <C> <C>
CORPORATE CONVERTIBLE BONDS-1.59%
COMPUTERS (SOFTWARE & SERVICES)-1.59%
Rational Software Corp., Conv. Bonds,
5.00%, 02/01/07 (Acquired
01/27/00-01/28/00; Cost $100,312)(b) $100,000 98,500
- --------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
NUMBER
OF EXERCISE EXPIRATION
CONTRACTS PRICE DATE
<S> <C> <C> <C> <C>
OPTIONS
PURCHASED-2.89%
CALLS-0.47%
AMEX Pharmaceutical
Index (Health
Care-Drugs- Major
Pharmaceutical) 3 $ 360 Feb-00 4,125
- ---------------------------------------------------------------------
Lycos, Inc.
(Computers-
Software &
Services) 6 90 Apr-00 3,900
- ---------------------------------------------------------------------
Microsoft Corp.
(Computers-Software
& Services) 30 110 Apr-00 13,688
- ---------------------------------------------------------------------
Morgan Stanley
Cyclical Index
(Investments) 5 590 Mar-00 1,156
- ---------------------------------------------------------------------
Network Associates,
Inc.
(Computers-Software
& Services) 23 30 Feb-00 1,581
- ---------------------------------------------------------------------
OSX Index (Oil & Gas-
Services) 15 95 Mar-00 4,688
- ---------------------------------------------------------------------
29,138
- ---------------------------------------------------------------------
PUTS-2.42%
DOT Index 1 1,100 Feb-00 8,750
1 1,050 Mar-00 9,437
- ---------------------------------------------------------------------
Enron Corp. (Natural
Gas) 7 60 Mar-00 1,969
- ---------------------------------------------------------------------
Nasdaq 100 Index 1 3,600 Mar-00 24,325
- ---------------------------------------------------------------------
S&P 500 Index 6 1,375 Feb-00 12,375
6 1,400 Feb-00 17,700
6 1,375 Mar-00 20,025
5 1,400 Mar-00 21,031
5 1,450 Mar-00 34,750
- ---------------------------------------------------------------------
150,362
- ---------------------------------------------------------------------
Total Options Purchased
(Cost $191,275) 179,500
- ---------------------------------------------------------------------
</TABLE>
<PAGE> 8
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
MONEY MARKET FUNDS-18.80%
STIC Liquid Assets Portfolio(c) 584,068 $ 584,068
- -------------------------------------------------------------
STIC Prime Portfolio(c) 584,068 584,068
- -------------------------------------------------------------
Total Money Market Funds (Cost
$1,168,136) 1,168,136
- -------------------------------------------------------------
TOTAL INVESTMENTS-88.06% (Cost
$5,426,108) 5,470,536
- -------------------------------------------------------------
OTHER ASSETS LESS LIABILITIES-11.94% 741,864
- -------------------------------------------------------------
NET ASSETS-100.00% $6,212,400
=============================================================
</TABLE>
<TABLE>
<CAPTION>
SHARES
SOLD MARKET
SHORT VALUE
<S> <C> <C>
SECURITIES SOLD SHORT(d)
Cardinal Health, Inc. 400 $ 19,125
- ------------------------------------------------------------
Chemdex Corp. 500 48,750
- ------------------------------------------------------------
Gap, Inc. (The) 500 22,344
- ------------------------------------------------------------
Quintiles Transnational Corp. 1,300 34,369
- ------------------------------------------------------------
Rambus, Inc. 1,300 97,987
- ------------------------------------------------------------
Stryker Corp. 1,400 88,200
- ------------------------------------------------------------
TMP Worldwide Inc. 1,200 168,150
- ------------------------------------------------------------
United Parcel Service-Class B 2,000 119,000
- ------------------------------------------------------------
$597,925
============================================================
</TABLE>
Investment Abbreviations:
ADR - American Depositary Receipt
Conv. - Convertible
Pfd. - Preferred
Notes to Financial Statements:
(a) Non-income producing security.
(b) Restricted security. May be resold to qualified institutional buyers in
accordance with the provisions of Rule 144A under the Securities Act of
1933, as amended. The valuation of these securities has been determined in
accordance with procedures established by the Board of Trustees. The market
value of this security represented 1.59% of the Fund's net assets.
(c) The money market fund has the same investment advisor as the Fund.
(d) Collateral on short sales was segregated by the Fund in the amount of
$638,412 which represents 106.77% of market value.
See Notes to Financial Statements.
<PAGE> 9
STATEMENT OF ASSETS AND LIABILITIES
January 31, 2000
(Unaudited)
<TABLE>
<S> <C>
ASSETS:
Investments, at market value (cost
$5,426,108) $5,470,536
- ---------------------------------------------------------
Cash 3,155
- ---------------------------------------------------------
Receivables for:
Investments sold 241,971
- ---------------------------------------------------------
Investments sold short 644,347
- ---------------------------------------------------------
Fund shares sold 779,945
- ---------------------------------------------------------
Amount due from advisor 17,038
- ---------------------------------------------------------
Dividends and interest 3,925
- ---------------------------------------------------------
Other assets 36,676
- ---------------------------------------------------------
Total assets 7,197,593
- ---------------------------------------------------------
LIABILITIES:
Payables for:
Investments purchased 349,014
- ---------------------------------------------------------
Fund shares reacquired 15,555
- ---------------------------------------------------------
Short positions covered 12,221
- ---------------------------------------------------------
Market value of securities sold short
(proceeds from short sales $644,347) 597,925
- ---------------------------------------------------------
Accrued administrative services fees 4,235
- ---------------------------------------------------------
Accrued distribution fees 1,161
- ---------------------------------------------------------
Accrued trustees' fees 500
- ---------------------------------------------------------
Accrued transfer agent fees 315
- ---------------------------------------------------------
Accrued operating expenses 4,267
- ---------------------------------------------------------
Total liabilities 985,193
- ---------------------------------------------------------
NET ASSETS APPLICABLE TO SHARES OUTSTANDING $6,212,400
=========================================================
NET ASSETS:
Class A $6,212,400
=========================================================
SHARES OUTSTANDING, $0.01 PAR VALUE PER
SHARE:
Class A 599,290
=========================================================
Class A:
Net asset value and redemption price per
share $ 10.37
- ---------------------------------------------------------
Offering price per share:
(Net asset value of $10.37
divided by 94.50%) $ 10.97
=========================================================
</TABLE>
STATEMENT OF OPERATIONS
For the period December 30, 1999 (date operations commenced) through January 31,
2000
(Unaudited)
<TABLE>
<S> <C>
INVESTMENT INCOME:
Interest $ 2,778
- ---------------------------------------------------------
Dividend 3,903
- ---------------------------------------------------------
Total investment income 6,681
- ---------------------------------------------------------
EXPENSES:
Advisory fees 5,104
- ---------------------------------------------------------
Administrative services fees 4,508
- ---------------------------------------------------------
Legal fees 5,685
- ---------------------------------------------------------
Audit fees 1,250
- ---------------------------------------------------------
Custodian fees 1,277
- ---------------------------------------------------------
Transfer agent fees 430
- ---------------------------------------------------------
Trustees' fees 500
- ---------------------------------------------------------
Distribution fees 1,191
- ---------------------------------------------------------
Registration and filing fees 3,394
- ---------------------------------------------------------
Printing fees 6,665
- ---------------------------------------------------------
Other 165
- ---------------------------------------------------------
Total expenses 30,169
- ---------------------------------------------------------
Less: Fees waived and reimbursed by advisor (22,142)
- ---------------------------------------------------------
Net expenses 8,027
- ---------------------------------------------------------
Net investment income (loss) (1,346)
- ---------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) FROM
INVESTMENT SECURITIES, SECURITIES SOLD
SHORT AND OPTION CONTRACTS:
Net realized gain (loss) from:
Investment securities 73,463
- ---------------------------------------------------------
Securities sold short (9,065)
- ---------------------------------------------------------
64,398
- ---------------------------------------------------------
Change in net unrealized appreciation
(depreciation) of:
Investment securities 56,203
- ---------------------------------------------------------
Securities sold short 46,422
- ---------------------------------------------------------
Option contracts purchased (11,775)
- ---------------------------------------------------------
90,850
- ---------------------------------------------------------
Net gain from investment securities,
securities sold short and option contracts 155,248
- ---------------------------------------------------------
Net increase in net assets resulting from
operations $ 153,902
=========================================================
</TABLE>
See Notes to Financial Statements.
<PAGE> 10
STATEMENT OF CHANGES IN NET ASSETS
For the period December 30, 1999 (date operations commenced) through January 31,
2000
(Unaudited)
<TABLE>
<S> <C>
OPERATIONS:
Net investment income (loss) $ (1,346)
- ------------------------------------------------------------------------
Net realized gain from investment securities, securities
sold short and option contracts 64,398
- ------------------------------------------------------------------------
Change in net unrealized appreciation of investment
securities, securities sold short and option contracts 90,850
- ------------------------------------------------------------------------
Net increase in net assets resulting from operations 153,902
- ------------------------------------------------------------------------
SHARE TRANSACTIONS-NET:
Class A 6,058,498
- ------------------------------------------------------------------------
Net increase in net assets 6,212,400
- ------------------------------------------------------------------------
NET ASSETS:
Beginning of period --
- ------------------------------------------------------------------------
End of period $6,212,400
========================================================================
NET ASSETS CONSIST OF:
Shares of beneficial interest $6,058,498
- ------------------------------------------------------------------------
Undistributed net investment income (loss) (1,346)
- ------------------------------------------------------------------------
Undistributed net realized gain from investment
securities, securities sold short and option contracts 64,398
- ------------------------------------------------------------------------
Unrealized appreciation of investment securities,
securities sold short and option contracts 90,850
- ------------------------------------------------------------------------
$6,212,400
========================================================================
</TABLE>
See Notes to Financial Statements.
<PAGE> 11
NOTES TO FINANCIAL STATEMENTS
JANUARY 31, 2000
(UNAUDITED)
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES
AIM Large 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 three
separate portfolios, each having an unlimited number of shares of beneficial
interest. The Fund commenced operations on December 30, 1999. The Fund consist
of three different classes of shares: Class A shares, Class B shares and Class C
shares. Class A shares are sold with a front-end sales charge. Class B shares
and Class C shares will be sold with a contingent deferred sales charge. Class A
shares commenced sales on December 30, 1999. Class B and Class C shares are not
currently offered. Matters affecting each portfolio or class will be voted on
exclusively by the shareholders of such portfolio or class. The assets,
liabilities and operations of each portfolio are accounted for separately.
Information presented in these financial statements pertains only to the Fund.
The Fund's investment objective is long-term growth of capital.
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenses during
the reporting period. Actual results could differ from those estimates. The
following is a summary of the significant accounting policies followed by the
Fund in the preparation of its financial statements.
A. Security Valuations -- A security listed or traded on an exchange (except
convertible bonds) is valued at its last sales price 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 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, quality, 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 trading 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 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 as earned from settlement date and is
recorded on the accrual basis. Dividend income is recorded on the
ex-dividend date.
C. Distributions -- Distributions from income and net realized capital gains,
if any, are generally paid annually and recorded on ex-dividend date. The
Fund may elect to use a portion of the proceeds of fund share redemptions
as distributions for federal income tax purposes.
D. Federal Income Taxes -- The Fund intends to comply with the requirements of
the Internal Revenue Code necessary to qualify as a regulated investment
company and, as such, will not be subject to federal income taxes on
otherwise taxable income (including net realized capital gains) which is
distributed to shareholders. Therefore, no provision for federal income
taxes is recorded in the financial statements.
E. Securities Sold Short -- When the Fund sells common stock short, an amount
equal to the proceeds of the sales 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 disclosed in
"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 obligation to the
broker who delivered such securities to the buyer on behalf of the Fund.
The amount segregated as
<PAGE> 12
collateral deposits will not at any time exceed 25% of the Fund's net
assets. Dividend expense on short sales is recorded on ex-dividend date.
F. 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.
G. 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.
H. Expenses -- Distribution expenses 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 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 AIM a base management fee calculated at the annual rate
of 1.50% of the Fund's average daily net assets. The base management fee will be
adjusted, on a monthly basis starting January 1, 2001, (i) upward at the rate of
0.20%, on a pro rata basis, for each percentage point the 12-month rolling
investment performance of the Class A shares exceeds the sum of 2.00% and the
12-month rolling investment record of the S&P 500--Registered Trademark-- Index,
or (ii) downward at the rate of 0.20%, on a pro rata basis, for each percentage
point the 12-month rolling investment record of the S&P 500--Registered
Trademark-- Index less 2.00% exceeds the 12-month rolling investment performance
of the Class A shares. During the period December 30, 1999 (date operations
commenced) through January 31, 2000, AIM waived fees of $5,104 and reimbursed
expenses of $17,038.
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
<PAGE> 13
the Fund. For the period December 30, 1999 (date operations commenced) through
January 31, 2000, AIM was paid $4,508 for such services.
The Fund, pursuant to a transfer agency and service agreement, has agreed to
pay A I M Fund Services, Inc. ("AFS") a fee for providing transfer agency and
shareholder services to the Fund. For the period December 30, 1999 (date
operations commenced) through January 31, 2000, AFS was paid $230 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 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 period December 30, 1999
(date operations commenced) through January 31, 2000, the Class A shares paid
AIM Distributors $1,191 as compensation under the Plans.
AIM Distributors received commissions of $6,765, from sales of the Class A
shares of the Fund during the period December 30, 1999 (date operations
commenced) through January 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.
Certain officers and trustees of the Trust are officers and directors of AIM,
AFS and AIM Distributors.
NOTE 3-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 4-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. The funds which
are party to the line of credit are charged a commitment fee of 0.10% on the
unused balance of the committed line.
During the period December 30, 1999 (date operations commenced) through
January 31, 2000, the Fund did not borrow under the line of credit.
NOTE 5-INVESTMENT SECURITIES
The aggregate amount of investment securities (other than short-term securities)
purchased and sold by the Fund during the period December 30, 1999 (date
operations commenced) through January 31, 2000 was $5,135,387 and $1,130,300,
respectively.
The amount of unrealized appreciation (depreciation) of investment securities
and securities sold short, for tax purposes, as of January 31, 2000 was as
follows:
<TABLE>
<S> <C>
Aggregate unrealized appreciation of:
Investment securities $ 226,399
- --------------------------------------------------------
Securities sold short 50,492
- --------------------------------------------------------
Aggregate unrealized (depreciation) of:
Investment securities (181,971)
- --------------------------------------------------------
Securities sold short (4,070)
- --------------------------------------------------------
Net unrealized appreciation of investment
securities $ 90,850
========================================================
</TABLE>
Cost of investments and securities sold short is the same for tax and financial
reporting purposes.
NOTE 6-SHARE INFORMATION
Changes in Class A shares outstanding during the period December 30, 1999 (date
operations commenced) through January 31, 2000:
<TABLE>
<CAPTION>
JANUARY 31, 2000
--------------------
SHARES AMOUNT
------- ----------
<S> <C> <C>
Sold 600,815 $6,074,303
- -----------------------------------------------------------
Reacquired (1,525) (15,805)
- -----------------------------------------------------------
599,290 $6,058,498
===========================================================
</TABLE>
<PAGE> 14
NOTE 7-FINANCIAL HIGHLIGHTS
Shown below are the financial highlights for a share of Class A outstanding
during the period December 30, 1999 (date operations commenced) through January
31, 2000.
<TABLE>
<CAPTION>
<S> <C>
Net asset value, beginning of period $ 10.00
- ------------------------------------------------------------ --------
Income from investment operations:
Net investment income (loss) --
- ------------------------------------------------------------ --------
Net gains on securities (both realized and unrealized) 0.37
- ------------------------------------------------------------ --------
Total from investment operations 0.37
- ------------------------------------------------------------ --------
Net asset value, end of period $ 10.37
============================================================ ========
Total return(a) 3.70%
============================================================ ========
Ratios/supplemental data:
Net assets, end of period (000s omitted) $ 6,212
============================================================ ========
Ratio of expenses to average net assets:
Including waivers and reimbursements 2.36%(b)
- ------------------------------------------------------------ --------
Excluding waivers and reimbursements 11.87%(b)
============================================================ ========
Ratio of net investment income (loss) to average net assets (0.40)%(b)
============================================================ ========
Portfolio turnover rate 40%
============================================================ ========
</TABLE>
(a) Does not deduct sales charges and is not annualized for periods less than
one year.
(b) Ratios are annualized and based on average net assets of $3,773,752.
<PAGE> 15
<TABLE>
<CAPTION>
BOARD OF TRUSTEES OFFICERS OFFICE OF THE FUND
<S> <C> <C>
Charles T. Bauer Charles T. Bauer 11 Greenway Plaza
Chairman Chairman Suite 100
A I M Management Group Inc. Houston, TX 77046
Robert H. Graham
Bruce L. Crockett President INVESTMENT ADVISOR
Director A I M Advisors, Inc.
ACE Limited; Carol F. Relihan 11 Greenway Plaza
Formerly Director, President, and Senior Vice President and Secretary Suite 100
Chief Executive Officer Houston, TX 77046
COMSAT Corporation Gary T. Crum
Senior Vice President TRANSFER AGENT
Owen Daly II A I M Fund Services, Inc.
Director Edgar M. Larsen P.O. Box 4739
Cortland Trust Inc. Senior Vice President Houston, TX 77210-4739
Edward K. Dunn Jr. Dana R. Sutton CUSTODIAN
Chairman, Mercantile Mortgage Corp.; Vice President and Treasurer State Street Bank and Trust Company
Formerly Vice Chairman and President, 225 Franklin Street
Mercantile-Safe Deposit & Trust Co.; and Melville B. Cox Boston, MA 02110
President, Mercantile Bankshares Vice President
COUNSEL TO THE FUND
Jack Fields Mary J. Benson Ballard Spahr
Chief Executive Officer Assistant Vice President and Andrews & Ingersoll, LLP
Texana Global, Inc.; Assistant Treasurer 1735 Market Street
Formerly Member Philadelphia, PA 19103
of the U.S. House of Representatives Sheri Morris
Assistant Vice President and COUNSEL TO THE TRUSTEES
Carl Frischling Assistant Treasurer Kramer Levin Naftalis & Frankel LLP
Partner 919 Third Avenue
Kramer, Levin, Naftalis & Frankel LLP Renee A. Friedli New York, NY 10022
Assistant Secretary
Robert H. Graham DISTRIBUTOR
President and Chief Executive Officer P. Michelle Grace A I M Distributors, Inc.
A I M Management Group Inc. Assistant Secretary 11 Greenway Plaza
Suite 100
Prema Mathai-Davis Jeffrey H. Kupor Houston, TX 77046
Chief Executive Officer, YWCA of the U.S.A.; Assistant Secretary
Commissioner, New York City Dept. for
the Aging; and member of the Board of Directors, Nancy L. Martin
Metropolitan Transportation Authority of Assistant Secretary
New York State
Ofelia M. Mayo
Lewis F. Pennock Assistant Secretary
Attorney
Lisa A. Moss
Louis S. Sklar Assistant Secretary
Executive Vice President
Hines Interests Kathleen J. Pflueger
Limited Partnership Assistant Secretary
Samuel D. Sirko
Assistant Secretary
Stephen I. Winer
Assistant Secretary
</TABLE>
<PAGE> 16
THE AIM FAMILY OF FUNDS--Registered Trademark--
<TABLE>
<S> <C> <C>
GROWTH FUNDS INTERNATIONAL GROWTH FUNDS A I M Management Group Inc. has provided
AIM Aggressive Growth Fund AIM Advisor International Value Fund leadership in the mutual fund industry
AIM Blue Chip Fund AIM Asian Growth Fund since 1976 and managed approximately
AIM Capital Development Fund AIM Developing Markets Fund $160 billion in assets for more than 6.6 million
AIM Constellation Fund(1) AIM Euroland Growth Fund(4) shareholders, including individual investors,
AIM Dent Demographic Trends Fund AIM European Development Fund corporate clients and financial institutions,
AIM Large Cap Growth Fund AIM International Equity Fund as of December 31, 1999.
AIM Mid Cap Equity Fund AIM Japan Growth Fund The AIM Family of Funds--Registered Trademark--
AIM Mid Cap Growth Fund AIM Latin American Growth Fund is distributed nationwide, and AIM today is the
AIM Mid Cap Opportunities Fund AIM New Pacific Growth Fund eighth-largest mutual fund complex in the United
AIM Select Growth Fund States in assets under management, according to
AIM Small Cap Growth Fund(2) GLOBAL GROWTH FUNDS Strategic Insight, an independent mutual
AIM Small Cap Opportunities Fund(3) AIM Global Aggressive Growth Fund fund monitor.
AIM Value Fund AIM Global Growth Fund
AIM Weingarten Fund
GLOBAL GROWTH & INCOME FUNDS
GROWTH & INCOME FUNDS AIM Global Growth & Income Fund
AIM Advisor Flex Fund AIM Global Utilities Fund
AIM Advisor Large Cap Value Fund
AIM Advisor Real Estate Fund GLOBAL INCOME FUNDS
AIM Balanced Fund AIM Emerging Markets Debt Fund
AIM Basic Value Fund AIM Global Government Income Fund
AIM Charter Fund AIM Global Income Fund
AIM Strategic Income Fund
INCOME FUNDS
AIM Floating Rate Fund THEME FUNDS
AIM High Yield Fund AIM Global Consumer Products and Services Fund
AIM High Yield Fund II AIM Global Financial Services Fund
AIM Income Fund AIM Global Health Care Fund
AIM Intermediate Government Fund AIM Global Infrastructure Fund
AIM Limited Maturity Treasury Fund AIM Global Resources Fund
AIM Global Telecommunications and Technology Fund(5)
TAX-FREE INCOME FUNDS AIM Global Trends Fund(6)
AIM High Income Municipal Fund
AIM Municipal Bond Fund
AIM Tax-Exempt Bond Fund of Connecticut
AIM Tax-Free Intermediate Fund
MONEY MARKET FUNDS
AIM Money Market Fund
AIM Tax-Exempt Cash Fund
</TABLE>
(1) Effective December 1, 1999, AIM Constellation Fund's investment strategy
broadened to allow investments across all market capitalizations. (2) AIM Small
Cap Growth Fund closed to new investors on November 8, 1999. (3) AIM Small Cap
Opportunities Fund closed to new investors on November 4, 1999. (4) On September
1, 1999, AIM Europe Growth Fund was renamed AIM Euroland Growth Fund. Previously
the fund invested in all size companies in most areas of Europe. The fund now
seeks to invest at least 65% of its assets in large-cap companies within
countries using the euro as their currency (EMU-member countries). (5) On June
1, 1999, AIM Global Telecommunications Fund was renamed AIM Global
Telecommunications and Technology Fund. (6) Effective August 27, 1999, AIM
Global Trends Fund was restructured to operate as a traditional mutual fund.
Before that date, the fund operated as a fund of funds. For more complete
information about any AIM fund(s), including sales charges and expenses, ask
your financial advisor or securities dealer for a free prospectus(es). Please
read the prospectus(es) carefully before you invest or send money. If used as
sales material after April 20, 2000, this report must be accompanied by a
current Quarterly Review of Performance for AIM Funds.
[AIM LOGO APPEARS HERE]
A I M Distributors, Inc. INVEST WITH DISCIPLINE
--Registered Trademark--
LCO-SAR-1
