<PAGE> 1
[AIM LOGO APPEARS HERE]
[GRAPHIC COLLAGE APPEARS HERE]
AIM VALUE FUND
SEMIANNUAL REPORT
JUNE 30, 1995
<PAGE> 2
AIM VALUE FUND
For shareholders who seek long-term growth of capital through a portfolio
that consists primarily of stocks of companies that are undervalued
relative to the stock market as a whole.
ABOUT FUND PERFORMANCE AND DATA THROUGHOUT THIS REPORT:
o Unless otherwise indicated, Fund results were computed at net asset value
without reflecting sales charges. When sales charges are included in
performance figures, Class A share performance reflects the maximum 5.50%
sales charge, and Class B share performance reflects the applicable
contingent deferred sales charge (CDSC) for the period involved. The CDSC
on Class B shares declines from 5% to reach 0% at the beginning of the
seventh year. The performance of the Fund's Class B shares will differ
from that of Class A shares. Total return reflects reinvestment of all
distributions.
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 Past performance cannot guarantee comparable future results.
o The Fund's portfolio composition is subject to change, and there is no
assurance the Fund will continue to hold these same securities.
ABOUT INDEXES AND OTHER PERFORMANCE BENCHMARKS CITED IN THIS REPORT:
o The Consumer Price Index (CPI) is a measure of change in consumer prices
as determined by the U.S. Bureau of Labor Statistics.
o The Dow Jones Industrial Average is a price-weighted average of 30
actively traded primarily industrial stocks. Results shown reflect
reinvestment of dividends.
o The unmanaged Lipper Growth Fund Index represents an average of the
performance of the 30 largest growth funds. It is compiled by Lipper
Analytical Services, Inc., an independent mutual fund performance monitor.
Index results reflect the reinvestment of dividends. Results shown reflect
reinvestment of dividends.
o The Standard & Poor's 500 (S&P 500) is a group of unmanaged securities
widely regarded by investors to be representative of the stock market
in general. Results shown reflect reinvestment of dividends.
o An investment cannot be made in an index. Index results do not reflect
sales charges; results shown reflect reinvestment of dividends.
================================================================================
AVERAGE ANNUAL TOTAL RETURNS
For periods ended June 30, 1995
<TABLE>
<CAPTION>
Without With
Sales Charge Sales Charge
------------ ------------
<S> <C> <C>
CLASS A SHARES
10 Years 17.65% 16.99%
5 Years 17.52 16.20
1 Year 30.62 23.42
6 Months 22.90 16.14
CLASS B SHARES
Inception (10/18/93) 13.74% 11.57%
1 Year 29.44 24.44
6 Months 22.39 17.39
</TABLE>
- --------------------------------------------------------------------------------
<PAGE> 3
CHAIRMAN'S LETTER
Dear Shareholder:
AIM Value Fund extended its record of superb performance
during the six months ended June 30, 1995. Fund management
[PHOTO of continued to identify undervalued stocks with superior
Charles T. Bauer, earnings growth to produce total returns during the
Chairman of six-month period of 22.90% and 22.39% for Class A and Class
the Board of B shares, respectively. Such performance helps explain the
the Fund, Fund's recent dramatic growth. During the first six months
APPEARS HERE] of the year, net assets of the Fund grew 89%, from $2.04
billion to $3.85 billion. Shareholder accounts rose from
approximately 160,000 to more than 250,000.
Your Fund outpaced the stock market in general, surpassing the 20.15%
total return of the S&P 500 during the same period. Your Fund also
outperformed the 18.70% total return posted by the Lipper Growth Fund Index,
which represents an average of the performance of the 30 largest growth funds.
AIM Value Fund's superior performance has earned recognition from both
Morningstar and Lipper, independent mutual fund monitors. Details concerning
the Fund's Morningstar rating and Lipper ranking are included in this report's
DISCUSSION & ANALYSIS, which begins on the next page.
AIM Value Fund's managers capitalized on the bullishness of the stock
markets, which saw benchmark barometers such as the Dow Jones Industrial
Average rise persistently during the first half of the year. This was in
dramatic contrast to 1994, when equity markets were flat in the face of
repeated interest rate increases and investors backed off from the potential
volatility of equities. A complete discussion of market conditions, Fund
portfolio strategy, and our outlook for the months ahead appears on the
following pages.
Your Fund has built an impressive record of long-term results,
achieving a positive total return every calendar year since its inception in
1984. Nevertheless, it is important to keep in mind that over time, AIM Value
Fund and the stock market in general have fluctuated. Although past performance
does not ensure comparable future results, we believe shareholders who keep a
long-term perspective will have greater opportunity for reaping rewards over
time.
We believe faithful application of AIM's earnings-oriented investment
philosophy has been a major contributor to the growth of AIM Value Fund and The
AIM Family of Funds(R). In the first six months of this year, total assets
under AIM's management increased more than 18%, from approximately $27.5
billion to approximately $32.5 billion. While part of this growth can be
attributed to favorable market conditions, it also reflects the opening of more
than 320,000 new shareholder accounts during the same period.
We are pleased to send you this shareholder report for AIM Value Fund.
If you have any questions concerning your AIM account, remember that you can
now access information on current yield and total return of your AIM Fund in
addition to data on your individual account by calling 800-246-5463 at any
time. Or if you prefer, you can speak with a customer service representative by
calling AIM Client Services at 800-959-4246 during normal business hours.
Respectfully submitted,
/s/ CHARLES T. BAUER
Charles T. Bauer
Chairman
<PAGE> 4
DISCUSSION & ANALYSIS
------------
Corporations
continued to report
profits higher than
analysts' expecta-
tions, and investors
recognized oppor-
tunities abounding
in the market.
------------
FUND OUTPERFORMS RALLYING MARKET
Following 1994, when stocks posted flat to negative returns and bonds had one
of their worst years on record, investors were ready for good news.
The good news came in the form of evidence that the Federal Reserve Boards
much-sought "soft landing" for the economy--slowing growth but not to the point
of recession--was occurring. More than a year after the Fed began trying to
moderate economic growth to a more sustainable 2.5% annual pace, the results
were in. A 2.7% annual growth rate in the first quarter of 1995 showed the
economy had slowed decidedly from the 5.1% annual rate logged in the fourth
quarter of 1994.
During the second quarter of 1995, economic growth dropped back to an annual
rate of less than 1%, and markets began to discount the possibility that the
Federal Reserve Board would ease short-term interest rates. Even a moderate
reduction in interest rates would save corporations and consumers billions of
dollars in borrowing costs and help to extend the favorable business cycle.
================================================================================
GROWTH OF $10,000
INCEPTION (5/1/84)-6/30/95
[BAR CHART APPEARS HERE DEPICTING GROWTH OF $10,000 OVER PERIOD
MAY 1, 1984 THROUGH JUNE 30, 1995 FOR CONSUMER PRICE INDEX ($14,762),
LIPPER GROWTH FUND INDEX ($42,855), AND AIM VALUE FUND CLASS A ($63,199)]
Source: Tower Data Systems HYPO(R)
Performance of B shares will differ. A $10,000 investment made at inception of
B shares (10/18/93) would have been worth $12,446 as of 6/30/95.
As the economy cooled, corporations continued to report profits higher than
analysts' expectations, and investors recognized opportunities abounding in the
market. Stocks rose dramatically. Indexes such as the Dow Jones Industrials and
S&P 500 repeatedly reached record highs. On February 23, the Dow for the first
time closed above the 4000 level. From there it proceeded to a high for the
six-month period of 4589.64 on June 22. It closed the period at 4556.10, up
20.37%. The S&P 500 moved comparably, and it closed the period at 544.75,
up 20.15% from the beginning of the year.
Toward the end of the reporting period, some observers started raising
cautionary flags, as evidence began to mount that the economic slowdown could
be both more abrupt and more pronounced than desirable. The word "recession"
began to supplant the phrase "soft landing" when the business media attempted
to forecast what lay ahead. Economic data seemed contradictory. For example,
while the Conference Board, a research organization, reported a sharp decline
in consumer confidence during May, Dun & Bradstreet Corp. found corporate
executives more optimistic than they had been earlier in the year. Personal
income declined 0.2% during May, but the housing market boomed with sales of
new single-family homes up 12.5%.
Shortly after the close of the period covered by this report, the Federal
Reserve Board lowered the Federal Funds rate by 0.25%. Some hailed the move as
likely to ward off further economic slowdown. Others considered it unnecessary
in light of June data that showed an uptick in consumer spending and virtually
no inflation at the consumer level.
YOUR INVESTMENT PORTFOLIO
AIM Value Fund delivered excellent results in this changing environment through
consistent application of investment criteria that focus on corporate earnings
plus relative price/earnings ratio. Total return for Class A shares was 22.90%
during the six-
See important Fund disclosure on inside front cover.
2
<PAGE> 5
================================================================================
TOP 10 EQUITY HOLDINGS
1. Texas Instruments Inc.
2. Philips Electronics, N.V.
New York Shares - ADR
3. Philip Morris
Companies, Inc.
4. EMC Corp.
5. COMPAQ Computer Corp.
6. MBNA Corp.
7. Schering-Plough Corp.
8. Citicorp
9. Intel Corp.
10. Computer Associates
International, Inc.
This is based on the Fund's
portfolio as of June 30, 1995.
month reporting period. For Class B shares, total return was 22.39%.
Fund management seeks what it calls "quality on sale," companies with
proven earnings records whose stock prices remain attractive. With corporate
earnings momentum continuing and the stock market rising to new heights,
finding bargains can become more difficult. During the six-month reporting
period, AIM Value Fund management increased holdings in the
interest-rate-sensitive financial industry. Management also began buying
airline and oil stocks, including UAL and British Petroleum. In addition, some
U.S. stainless steel companies, after 10 years of cost cutting and a
significant decline in the dollar's value compared to certain other major
currencies, are now the world's lowest-cost producers and, therefore,
attractive investments. Allegheny Ludlum Corp. and J & L Specialty Steel, among
others, were added to the portfolio.
Simultaneously, the Fund remained very involved in the technology
sector, broadly defined to include, for example, telecommunications as well as
computer parts, peripherals, and software. While technology represents a
large part of AIM Value Fund's portfolio, the Fund is very diversified, with
more than 200 holdings. Being heavily weighted in technology stocks does not
represent a gamble on this industry by Fund management, but rather the result
of numerous buy and sell decisions based on clearly defined, disciplined
investment standards.
OUTLOOK FOR THE FUTURE
While some have expressed concern about the sharp rise in the overall stock
market during 1995, AIM Value Fund continues to look for attractive portfolio
positions one company at a time regardless of market conditions. Fund
management maintains its focus on earnings momentum, relying on what is known
about a company rather than on a projection of things to come. In the case of
AIM Value Fund, price/earnings ratio is added to AIM's customary earnings
criteria as a way to evaluate whether a security is underpriced relative to the
issuing company's intrinsic worth.
At this writing, earnings remain strong for several sectors,
particularly selected technology groups. Defensive companies have performed
well in the moderating economy, and financial services companies have benefited
from a more favorable interest rate environment. A more accommodative monetary
policy by the Federal Reserve should spur continued growth in the economy.
Technology companies and large companies with strong overseas
penetration stand to benefit from continued moderate growth in the U.S. and the
growing demand overseas for U.S. products and services as a number of foreign
economies expand at a faster rate than the U.S. economy.
================================================================================
MORNINGSTAR RATINGS
(AS OF 6/30/95)
AIM VALUE FUND A SHARES
<TABLE>
<CAPTION>
Funds in
Period Ratings Equity Category
- -------------------------------------------
<S> <C> <C>
Overall ***** NA
10 Years ***** 459
5 Years ***** 906
3 Years ***** 1,234
</TABLE>
================================================================================
LIPPER RANKINGS
(AS OF 6/30/95)
AIM VALUE FUND A SHARES
<TABLE>
<CAPTION>
Rank vs. Percentile
Period All Equity Funds Rank
- ----------------------------------------------
<S> <C> <C>
10 Years 22 of 520 4.23%
5 Years 63 of 1071 5.88%
3 Years 89 of 1457 6.11%
1 Year 215 of 2683 7.90%
</TABLE>
Fund performance rankings are vs. all equity funds tracked by Lipper, excluding
sales charges, and including fees and expenses. Morningstar's rating system of
one (lowest) to five (highest) stars is based on risk and return ratios for
three-, five-, and 10-year periods and considers all loads and fees. Of the
funds in an investment category, 10% receive five stars, 22.5% receive four
stars, 35% receive three stars, 22.5% receive two stars, and 10% receive one
star. Ratings compare funds of similar investment objectives and represent
past performance, which is no guarantee of comparable future results.
See important Fund disclosure on inside front cover.
3
<PAGE> 6
FOR CONSIDERATION
INVESTING ACCORDING TO
YOUR PERSONAL
FINANCIAL OBJECTIVES
ASSET ALLOCATION
Every mutual fund investor would like to invest in a market that only goes
up--a tide that lifts all ships. The truth is, markets also decline. Recently,
concerns about inflation, changing interest rates, possible tax reform, and
other issues have affected financial markets. But market changes do not affect
all investments the same way--some investments may benefit from a market trend
when others do not.
And market changes are not the only factors an investor must manage. There
are a number of important considerations with every investment, including
investment risk, and investment risk takes many forms:
o The prices of some investments will fluctuate according to changes in the
market.
o The value of some investments, such as fixed-income securities, will rise
and fall as interest rates change.
o When interest rates fall, investors face the possibility that investment
income cannot be reinvested at higher rates previously available.
o Inflation can cause the value of some investments to erode as the cost of
living increases.
o Investments valued in U.S. dollars will rise and fall according to the
dollar's value against other world currencies.
To manage these changing conditions, investors have learned to diversify
their assets across a wide variety of investments. For most investors, mutual
funds offer convenient and affordable methods to diversify their assets. For as
little as $500, an investor has access to a portfolio of hundreds of
professionally selected securities.
When you invest in more than one fund, you increase the level of
diversification. You also gain another important benefit. Since mutual funds
are managed according to specific investment objectives, such as growth or
income, you can invest in mutual funds with different investment objectives to
create a personalized investment plan that suits your unique financial
objectives. This investment strategy is called asset allocation.
Mutual fund investors tend to seek growth, or current income, or some
combination of both. Generally, investors who choose to assume more investment
risk get the potential for a higher return. With asset allocation, you can
fine-tune your investment plan to be more conservative, or more aggressive,
depending on your personal financial goals and risk tolerances.
Your investment consultant can assist you in developing an asset allocation
strategy and selecting the appropriate investments to help you meet your long-
term investment goals. Your financial consultant is familiar with your
particular situation and is your best source of information concerning
important investment decisions.
4
<PAGE> 7
ASSET ALLOCATION WITH THE AIM FAMILY OF FUNDS(R)
AIM offers a wide variety of funds suitable for many asset allocation
strategies:
[Left column contains gradient shading from dark indicating relatively
aggressive to light indicating relatively conservative.]
<TABLE>
<CAPTION>
RELATIVELY
AGGRESSIVE OBJECTIVE FUND
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C>
Aggressive Growth AIM Aggressive Growth Fund*
AIM Constellation Fund
AIM Global Aggressive Growth Fund
- ---------------------------------------------------------------------------------------------------------
Growth AIM Global Growth Fund
AIM Growth Fund
AIM International Equity Fund
AIM Value Fund
AIM Weingarten Fund
- ---------------------------------------------------------------------------------------------------------
Growth and Income AIM Balanced Fund
AIM Charter Fund
- ---------------------------------------------------------------------------------------------------------
Income and Growth AIM Global Utilities Fund**
- ---------------------------------------------------------------------------------------------------------
High Current Income AIM High Yield Fund
- ---------------------------------------------------------------------------------------------------------
Current Income AIM Global Income Fund
AIM Income Fund
- ---------------------------------------------------------------------------------------------------------
Current Tax-Free Income AIM Municipal Bond Fund
AIM Tax-Exempt Bond Fund of CT
AIM Tax-Free Intermediate Shares
- ---------------------------------------------------------------------------------------------------------
Current Income AIM Government Securities Fund
and High Degree of Safety
- ---------------------------------------------------------------------------------------------------------
High Degree of Safety AIM Limited Maturity Treasury Shares
and Current Income
- ---------------------------------------------------------------------------------------------------------
Stability, Liquidity AIM Money Market Fund
and Current Income
- ---------------------------------------------------------------------------------------------------------
Stability, Liquidity AIM Tax-Exempt Cash Fund
and Current Tax-Free Income
- ---------------------------------------------------------------------------------------------------------
RELATIVELY
CONSERVATIVE
</TABLE>
* AIM Aggressive Growth Fund was closed to new investors on July 18, 1995.
** On May 1, 1995, AIM Utilities Fund broadened its investment strategy to
permit up to 80% of its total assets to be invested in foreign securities, and
was renamed AIM Global Utilities 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.
5
<PAGE> 8
FINANCIALS
SCHEDULE OF INVESTMENTS
June 30, 1995
(Unaudited)
<TABLE>
<CAPTION>
SHARES MARKET VALUE
<S> <C> <C>
COMMON STOCKS-77.01%
ADVERTISING/BROADCASTING-1.38%
200,000 Heritage Media Corp.(a) $ 5,775,000
- --------------------------------------------------------------------------------------------
153,400 Renaissance Communications Corp.(a) 5,138,900
- --------------------------------------------------------------------------------------------
45,100 Sinclair Broadcast Group, Inc.(a) 1,262,800
- --------------------------------------------------------------------------------------------
1,000,000 Time Warner, Inc. 41,125,000
- --------------------------------------------------------------------------------------------
53,301,700
- --------------------------------------------------------------------------------------------
AEROSPACE/DEFENSE-1.20%
550,000 Boeing Co. 34,443,750
- --------------------------------------------------------------------------------------------
150,000 United Technologies Corp. 11,718,750
- --------------------------------------------------------------------------------------------
46,162,500
- --------------------------------------------------------------------------------------------
AIRLINES-1.13%
300,000 AMR Corp.(a) 22,387,500
- --------------------------------------------------------------------------------------------
196,800 Northwest Airlines Corp.(a) 6,961,800
- --------------------------------------------------------------------------------------------
100,000 UAL Corp.(a) 14,025,000
- --------------------------------------------------------------------------------------------
43,374,300
- --------------------------------------------------------------------------------------------
APPLIANCES-0.34%
250,000 Premark International Inc. 12,968,750
- --------------------------------------------------------------------------------------------
AUTOMOBILE/TRUCKS PARTS & TIRES-0.67%
900,000 Borg-Warner Automotive 25,650,000
- --------------------------------------------------------------------------------------------
BANKING-1.94%
350,000 Bank of New York Co., Inc. 14,131,250
- --------------------------------------------------------------------------------------------
800,000 Citicorp 46,300,000
- --------------------------------------------------------------------------------------------
200,000 Morgan (J.P.) & Co., Inc. 14,025,000
- --------------------------------------------------------------------------------------------
74,456,250
- --------------------------------------------------------------------------------------------
BEVERAGES-0.92%
103,700 Canandaigua Wine Co., Inc.-Class A(a) 4,640,575
- --------------------------------------------------------------------------------------------
1,400,000 Coca-Cola Enterprises Inc. 30,625,000
- --------------------------------------------------------------------------------------------
35,265,575
- --------------------------------------------------------------------------------------------
BIOTECHNOLOGY-0.39%
226,200 Cordis Corp.(a) 15,098,850
- --------------------------------------------------------------------------------------------
BUILDING MATERIALS-0.40%
250,000 National Gypsum Co.(a) 13,062,500
- --------------------------------------------------------------------------------------------
100,000 USG Corp.(a) 2,375,000
- --------------------------------------------------------------------------------------------
15,437,500
- --------------------------------------------------------------------------------------------
BUSINESS SERVICES-1.39%
312,600 Interim Services(a) 7,815,000
- --------------------------------------------------------------------------------------------
162,200 Kelly Services Inc.(a) 4,176,650
- --------------------------------------------------------------------------------------------
</TABLE>
6
<PAGE> 9
FINANCIALS
<TABLE>
<CAPTION>
SHARES MARKET VALUE
<S> <C> <C>
Business Services-(continued)
500,000 Manpower, Inc. $ 12,750,000
- --------------------------------------------------------------------------------------------
245,200 Olsten Corp. (The) 8,030,300
- --------------------------------------------------------------------------------------------
400,000 Sensormatic Electronics Corp. 14,200,000
- --------------------------------------------------------------------------------------------
200,000 Value Health, Inc.(a) 6,450,000
- --------------------------------------------------------------------------------------------
53,421,950
- --------------------------------------------------------------------------------------------
CHEMICALS-1.42%
375,000 Dow Chemical Co. 26,953,125
- --------------------------------------------------------------------------------------------
200,000 Sterling Chemicals, Inc.(a) 2,325,000
- --------------------------------------------------------------------------------------------
1,052,000 Terra Industries, Inc. 12,755,500
- --------------------------------------------------------------------------------------------
375,000 Union Carbide Corp. 12,515,625
- --------------------------------------------------------------------------------------------
54,549,250
- --------------------------------------------------------------------------------------------
CHEMICALS (SPECIALTY)-1.44%
300,000 Cabot Corp. 15,825,000
- --------------------------------------------------------------------------------------------
280,600 IMC Global, Inc. 15,187,475
- --------------------------------------------------------------------------------------------
270,000 OM Group Inc. 7,695,000
- --------------------------------------------------------------------------------------------
661,300 Praxair, Inc. 16,532,500
- --------------------------------------------------------------------------------------------
55,239,975
- --------------------------------------------------------------------------------------------
COMPUTER MAINFRAMES-1.12%
450,000 International Business Machines Corp. 43,200,000
- --------------------------------------------------------------------------------------------
COMPUTER MINI/PCS-3.96%
1,200,000 COMPAQ Computer Corp.(a) 54,450,000
- --------------------------------------------------------------------------------------------
600,000 Dell Computer Corp.(a) 36,075,000
- --------------------------------------------------------------------------------------------
200,000 Hewlett-Packard Co. 14,900,000
- --------------------------------------------------------------------------------------------
700,000 Sun Microsystems, Inc.(a) 33,950,000
- --------------------------------------------------------------------------------------------
800,000 Wang Laboratories, Inc.(a) 13,100,000
- --------------------------------------------------------------------------------------------
152,475,000
- --------------------------------------------------------------------------------------------
COMPUTER NETWORKING-1.47%
450,000 Belden Inc. 12,150,000
- --------------------------------------------------------------------------------------------
500,000 Cheyenne Software, Inc.(a) 9,250,000
- --------------------------------------------------------------------------------------------
300,000 Cisco Systems, Inc.(a) 15,168,750
- --------------------------------------------------------------------------------------------
287,800 Comverse Technology, Inc. 5,108,450
- --------------------------------------------------------------------------------------------
220,000 3Com Corp.(a) 14,740,000
- --------------------------------------------------------------------------------------------
56,417,200
- --------------------------------------------------------------------------------------------
COMPUTER PERIPHERALS-4.86%
795,100 Adaptec, Inc.(a) 29,418,700
- --------------------------------------------------------------------------------------------
3,400,000 EMC Corp. 82,450,000
- --------------------------------------------------------------------------------------------
325,600 Quantum Corp.(a) 7,448,100
- --------------------------------------------------------------------------------------------
350,000 Read-Rite Corp.-Class A(a) 9,362,500
- --------------------------------------------------------------------------------------------
600,000 Seagate Technology(a) 23,550,000
- --------------------------------------------------------------------------------------------
223,500 U.S. Robotics, Inc.(a) 24,361,500
- --------------------------------------------------------------------------------------------
</TABLE>
7
<PAGE> 10
FINANCIALS
<TABLE>
<CAPTION>
SHARES MARKET VALUE
<S> <C> <C>
Computer Peripherals-(continued)
600,000 Western Digital Corp.(a) $ 10,425,000
- --------------------------------------------------------------------------------------------
187,015,800
- --------------------------------------------------------------------------------------------
COMPUTER SOFTWARE & SERVICES-3.98%
177,000 Adobe Systems, Inc. 10,266,000
- --------------------------------------------------------------------------------------------
200,000 Bay Networks, Inc.(a) 8,275,000
- --------------------------------------------------------------------------------------------
150,000 BMC Software, Inc.(a) 11,587,500
- --------------------------------------------------------------------------------------------
300,000 Ceridian Corp.(a) 11,062,500
- --------------------------------------------------------------------------------------------
660,000 Computer Associates International, Inc. 44,715,000
- --------------------------------------------------------------------------------------------
400,000 Electronics for Imaging, Inc.(a) 20,900,000
- --------------------------------------------------------------------------------------------
450,000 National Data Corp. 10,406,250
- --------------------------------------------------------------------------------------------
550,000 Network General Corp.(a) 14,987,500
- --------------------------------------------------------------------------------------------
250,000 Sterling Software, Inc.(a) 9,625,000
- --------------------------------------------------------------------------------------------
317,700 S3, Inc.(a) 11,437,200
- --------------------------------------------------------------------------------------------
153,261,950
- --------------------------------------------------------------------------------------------
CONGLOMERATES-0.84%
200,000 Allied Products Corp. 3,825,000
- --------------------------------------------------------------------------------------------
120,000 ITT Corp.(a) 14,100,000
- --------------------------------------------------------------------------------------------
120,000 Loews Corp. 14,520,000
- --------------------------------------------------------------------------------------------
32,445,000
- --------------------------------------------------------------------------------------------
CONTAINERS-1.58%
300,000 Ball Corp. 10,462,500
- --------------------------------------------------------------------------------------------
320,000 Crown Cork & Seal Co., Inc.(a) 16,040,000
- --------------------------------------------------------------------------------------------
200,000 First Brands Corp. 8,575,000
- --------------------------------------------------------------------------------------------
103,500 Sealed Air Corp.(a) 4,554,000
- --------------------------------------------------------------------------------------------
1,000,000 Stone Container Corp.(a) 21,250,000
- --------------------------------------------------------------------------------------------
60,881,500
- --------------------------------------------------------------------------------------------
COSMETICS & TOILETRIES-0.65%
256,900 McKesson Corp. 12,010,075
- --------------------------------------------------------------------------------------------
180,000 Procter & Gamble Co. 12,937,500
- --------------------------------------------------------------------------------------------
24,947,575
- --------------------------------------------------------------------------------------------
ELECTRONIC COMPONENTS-2.72%
600,000 Harman International Industries, Inc. 24,300,000
- --------------------------------------------------------------------------------------------
828,000 Itel Corp.(a) 32,292,000
- --------------------------------------------------------------------------------------------
350,000 Oak Industries, Inc.(a) 9,012,500
- --------------------------------------------------------------------------------------------
300,000 Tektronix, Inc. 14,775,000
- --------------------------------------------------------------------------------------------
372,100 Teradyne Inc.(a) 24,326,037
- --------------------------------------------------------------------------------------------
104,705,537
- --------------------------------------------------------------------------------------------
</TABLE>
8
<PAGE> 11
FINANCIALS
<TABLE>
<CAPTION>
SHARES MARKET VALUE
<S> <C> <C>
ELECTRONIC/PC DISTRIBUTORS-1.34%
660,000 Arrow Electronics, Inc.(a) $ 32,835,000
- --------------------------------------------------------------------------------------------
300,000 Avnet, Inc. 14,512,500
- --------------------------------------------------------------------------------------------
150,000 Wyle Laboratories 4,218,750
- --------------------------------------------------------------------------------------------
51,566,250
- --------------------------------------------------------------------------------------------
FINANCE (ASSET MANAGEMENT)-0.63%
200,000 Franklin Resources, Inc. 8,900,000
- --------------------------------------------------------------------------------------------
160,000 Morgan Stanley Group Inc. 12,960,000
- --------------------------------------------------------------------------------------------
53,100 XTRA Corp. 2,455,875
- --------------------------------------------------------------------------------------------
24,315,875
- --------------------------------------------------------------------------------------------
FINANCE (CONSUMER CREDIT)-3.97%
50,000 ADVANTA Corp.-Class A 2,084,375
- --------------------------------------------------------------------------------------------
120,200 ADVANTA Corp.-Class B 4,537,550
- --------------------------------------------------------------------------------------------
235,700 CMAC Investment Corp. 10,223,488
- --------------------------------------------------------------------------------------------
500,000 Countrywide Credit Industries, Inc. 10,500,000
- --------------------------------------------------------------------------------------------
250,000 Federal Home Loan Mortgage Corp. 17,187,500
- --------------------------------------------------------------------------------------------
250,000 Federal National Mortgage Association 23,593,750
- --------------------------------------------------------------------------------------------
150,000 First USA, Inc. 6,656,250
- --------------------------------------------------------------------------------------------
90,000 Foothill Group, Inc. (The) 2,295,000
- --------------------------------------------------------------------------------------------
160,000 Green Tree Acceptance, Inc. 7,100,000
- --------------------------------------------------------------------------------------------
1,600,000 MBNA Corp. 54,000,000
- --------------------------------------------------------------------------------------------
280,000 PMI Group, Inc. (The) 12,145,000
- --------------------------------------------------------------------------------------------
46,100 Sunamerica, Inc. 2,351,100
- --------------------------------------------------------------------------------------------
152,674,013
- --------------------------------------------------------------------------------------------
FINANCE (SAVINGS & LOAN)-0.44%
400,000 Ahmanson (H. F.) & Co. 8,800,000
- --------------------------------------------------------------------------------------------
328,300 Charter One Financial, Inc. 8,043,350
- --------------------------------------------------------------------------------------------
16,843,350
- --------------------------------------------------------------------------------------------
FOOD PROCESSING-0.65%
700,000 Hudson Foods, Inc.-Class A 9,712,500
- --------------------------------------------------------------------------------------------
350,000 IBP, Inc. 15,225,000
- --------------------------------------------------------------------------------------------
24,937,500
- --------------------------------------------------------------------------------------------
FUNERAL SERVICES-0.57%
428,000 Service Corp. International 13,535,500
- --------------------------------------------------------------------------------------------
258,300 Stewart Enterprises, Inc. 8,653,050
- --------------------------------------------------------------------------------------------
22,188,550
- --------------------------------------------------------------------------------------------
GAMING-0.50%
200,000 Circus Circus Enterprises, Inc.(a) 7,050,000
- --------------------------------------------------------------------------------------------
400,000 Mirage Resorts, Inc.(a) 12,250,000
- --------------------------------------------------------------------------------------------
19,300,000
- --------------------------------------------------------------------------------------------
HOTELS/MOTELS-0.32%
344,700 Marriott International, Inc. 12,366,113
- --------------------------------------------------------------------------------------------
</TABLE>
9
<PAGE> 12
FINANCIALS
<TABLE>
<CAPTION>
SHARES MARKET VALUE
<S> <C> <C>
INSURANCE (LIFE & HEALTH)-0.20%
335,000 Emphesys Financial Group $ 7,914,375
- --------------------------------------------------------------------------------------------
INSURANCE (MULTI-LINE PROPERTY)-1.33%
285,700 Ace, Ltd. 8,285,300
- --------------------------------------------------------------------------------------------
276,100 American General Corp. 9,318,375
- --------------------------------------------------------------------------------------------
100,000 American International Group, Inc. 11,400,000
- --------------------------------------------------------------------------------------------
400,000 TIG Holdings, Inc. 9,200,000
- --------------------------------------------------------------------------------------------
300,000 Travelers Group, Inc. 13,125,000
- --------------------------------------------------------------------------------------------
51,328,675
- --------------------------------------------------------------------------------------------
LEISURE & RECREATION-0.50%
160,700 Brunswick Corp. 2,731,900
- --------------------------------------------------------------------------------------------
300,000 Walt Disney Co. (The) 16,687,500
- --------------------------------------------------------------------------------------------
19,419,400
- --------------------------------------------------------------------------------------------
MACHINE TOOLS-0.40%
100,000 Applied Power Inc.-Class A 2,887,500
- --------------------------------------------------------------------------------------------
460,000 Cincinnati Milacron, Inc. 12,420,000
- --------------------------------------------------------------------------------------------
15,307,500
- --------------------------------------------------------------------------------------------
MACHINERY-(HEAVY)-0.39%
500,000 Case Corp. 14,875,000
- --------------------------------------------------------------------------------------------
MEDICAL (DRUGS)-3.45%
800,000 Bergen Brunswig Corp. 18,300,000
- --------------------------------------------------------------------------------------------
900,000 ICN Pharmaceuticals, Inc. 14,175,000
- --------------------------------------------------------------------------------------------
200,000 Johnson & Johnson 13,525,000
- --------------------------------------------------------------------------------------------
500,000 Mylan Laboratories 15,375,000
- --------------------------------------------------------------------------------------------
200,000 Pfizer Inc. 18,475,000
- --------------------------------------------------------------------------------------------
1,200,000 Schering-Plough Corp. 52,950,000
- --------------------------------------------------------------------------------------------
132,800,000
- --------------------------------------------------------------------------------------------
MEDICAL INSTRUMENTS/PRODUCTS-0.61%
200,000 Becton, Dickinson & Co. 11,650,000
- --------------------------------------------------------------------------------------------
12,200 Kinetic Concepts, Inc. 86,925
- --------------------------------------------------------------------------------------------
235,000 St. Jude Medical, Inc. 11,779,375
- --------------------------------------------------------------------------------------------
23,516,300
- --------------------------------------------------------------------------------------------
MEDICAL (PATIENT SERVICES)-4.23%
400,000 Columbia/HCA Healthcare Corp. 17,300,000
- --------------------------------------------------------------------------------------------
112,500 Community Health Systems, Inc.(a) 3,810,937
- --------------------------------------------------------------------------------------------
300,000 Diagnostek, Inc.(a) 4,800,000
- --------------------------------------------------------------------------------------------
250,000 Genesis Health Ventures, Inc.(a) 7,406,250
- --------------------------------------------------------------------------------------------
400,000 Health Care and Retirement Corp.(a) 11,700,000
- --------------------------------------------------------------------------------------------
400,000 Horizon Healthcare Corp.(a) 7,150,000
- --------------------------------------------------------------------------------------------
530,000 Integrated Health Services, Inc. 15,900,000
- --------------------------------------------------------------------------------------------
340,000 Living Centers of America, Inc.(a) 9,222,500
- --------------------------------------------------------------------------------------------
</TABLE>
10
<PAGE> 13
FINANCIALS
<TABLE>
<CAPTION>
SHARES MARKET VALUE
<S> <C> <C>
Medical (Patient Services)-(continued)
600,000 Manor Care, Inc. $ 17,475,000
- --------------------------------------------------------------------------------------------
350,000 Mid-Atlantic Medical Services, Inc.(a) 6,475,000
- --------------------------------------------------------------------------------------------
750,000 OrNda Healthcorp(a) 12,843,750
- --------------------------------------------------------------------------------------------
480,000 Quorum Health Group, Inc.(a) 9,720,000
- --------------------------------------------------------------------------------------------
97,700 Sierra Health Services, Inc.(a) 2,393,650
- --------------------------------------------------------------------------------------------
330,000 Sybron International Corp.(a) 13,158,750
- --------------------------------------------------------------------------------------------
500,000 U.S. Healthcare, Inc. 15,312,500
- --------------------------------------------------------------------------------------------
200,000 United Healthcare Corp. 8,275,000
- --------------------------------------------------------------------------------------------
162,943,337
- --------------------------------------------------------------------------------------------
METALS-0.70%
520,000 Alumax, Inc.(a) 16,185,000
- --------------------------------------------------------------------------------------------
90,400 Harsco Corp. 4,768,600
- --------------------------------------------------------------------------------------------
122,600 Mueller Industries, Inc.(a) 6,038,050
- --------------------------------------------------------------------------------------------
26,991,650
- --------------------------------------------------------------------------------------------
OFFICE AUTOMATION-0.91%
300,000 Xerox Corp. 35,175,000
- --------------------------------------------------------------------------------------------
OFFICE PRODUCTS-0.08%
100,000 Reynolds & Reynolds Co.-Class A 2,950,000
- --------------------------------------------------------------------------------------------
OIL & GAS-0.68%
275,000 Mobil Corp. 26,400,000
- --------------------------------------------------------------------------------------------
PAPER & FOREST PRODUCTS-1.69%
200,000 Bowater, Inc. 8,975,000
- --------------------------------------------------------------------------------------------
300,000 Champion International Corp. 15,637,500
- --------------------------------------------------------------------------------------------
300,000 Federal Paper Board Co. 10,612,500
- --------------------------------------------------------------------------------------------
500,000 Mead Corp. 29,687,500
- --------------------------------------------------------------------------------------------
64,912,500
- --------------------------------------------------------------------------------------------
POLLUTION CONTROL-1.21%
500,000 Browning-Ferris Industries, Inc. 18,062,500
- --------------------------------------------------------------------------------------------
1,000,000 WMX Technologies, Inc. 28,375,000
- --------------------------------------------------------------------------------------------
46,437,500
- --------------------------------------------------------------------------------------------
PUBLISHING-0.47%
200,000 American Publishing Co. 2,150,000
- --------------------------------------------------------------------------------------------
100,000 Central Newspapers, Inc.-Class A 2,962,500
- --------------------------------------------------------------------------------------------
400,000 Scripps (E.W.) Co. 12,900,000
- --------------------------------------------------------------------------------------------
18,012,500
- --------------------------------------------------------------------------------------------
RETAIL (FOOD & DRUG)-1.30%
500,000 Circle K Corp.(a) 8,437,500
- --------------------------------------------------------------------------------------------
500,000 Eckerd Corp.(a) 16,000,000
- --------------------------------------------------------------------------------------------
436,300 Revco D.S., Inc.(a) 10,471,200
- --------------------------------------------------------------------------------------------
400,000 Safeway Inc.(a) 14,950,000
- --------------------------------------------------------------------------------------------
49,858,700
- --------------------------------------------------------------------------------------------
</TABLE>
11
<PAGE> 14
FINANCIALS
<TABLE>
<CAPTION>
SHARES MARKET VALUE
<S> <C> <C>
RETAIL STORES-0.08%
196,000 Waban, Inc.(a) $ 2,915,500
- --------------------------------------------------------------------------------------------
SCIENTIFIC INSTRUMENTS-0.36%
250,000 Varian Associates, Inc. 13,812,500
- --------------------------------------------------------------------------------------------
SEMICONDUCTORS-11.24%
600,000 Analog Devices, Inc.(a) 20,400,000
- --------------------------------------------------------------------------------------------
300,000 Applied Materials, Inc.(a) 25,987,500
- --------------------------------------------------------------------------------------------
400,000 Cypress Semiconductor Corp.(a) 16,200,000
- --------------------------------------------------------------------------------------------
150,000 Electroglas, Inc.(a) 8,587,500
- --------------------------------------------------------------------------------------------
270,000 Exar Corp.(a) 7,965,000
- --------------------------------------------------------------------------------------------
720,000 Intel Corp. 45,585,000
- --------------------------------------------------------------------------------------------
250,000 Kemet Corp.(a) 13,125,000
- --------------------------------------------------------------------------------------------
400,000 LAM Research Corp.(a) 25,600,000
- --------------------------------------------------------------------------------------------
400,000 LSI Logic Corp.(a) 15,650,000
- --------------------------------------------------------------------------------------------
440,000 Micron Technology, Inc. 24,145,000
- --------------------------------------------------------------------------------------------
1,100,000 National Semiconductor Corp.(a) 30,525,000
- --------------------------------------------------------------------------------------------
350,000 OPTI, Inc.(a) 7,962,500
- --------------------------------------------------------------------------------------------
1,335,600 Texas Instruments Inc. 178,803,450
- --------------------------------------------------------------------------------------------
394,300 VLSI Technology, Inc.(a) 11,878,288
- --------------------------------------------------------------------------------------------
432,414,238
- --------------------------------------------------------------------------------------------
SHOES & RELATED APPAREL-0.39%
180,000 Nike, Inc.-Class B 15,120,000
- --------------------------------------------------------------------------------------------
STEEL-0.88%
250,000 AK Steel Holding Corp.(a) 6,812,500
- --------------------------------------------------------------------------------------------
550,000 Allegheny Ludlum Corp. 10,862,500
- --------------------------------------------------------------------------------------------
380,000 J&L Specialty Steel, Inc. 7,315,000
- --------------------------------------------------------------------------------------------
200,000 Lukens Inc. 6,450,000
- --------------------------------------------------------------------------------------------
307,600 UNR Industries, Inc. 2,268,550
- --------------------------------------------------------------------------------------------
33,708,550
- --------------------------------------------------------------------------------------------
TELECOMMUNICATIONS-1.06%
159,000 ALC Communications Corp.(a) 7,174,875
- --------------------------------------------------------------------------------------------
720,000 DSC Communications Corp.(a) 33,480,000
- --------------------------------------------------------------------------------------------
40,654,875
- --------------------------------------------------------------------------------------------
TELEPHONE-0.31%
420,000 Century Telephone Enterprises 11,917,500
- --------------------------------------------------------------------------------------------
TOBACCO-2.32%
1,200,000 Philip Morris Companies, Inc. 89,250,000
- --------------------------------------------------------------------------------------------
Total Common Stocks 2,963,103,413
- --------------------------------------------------------------------------------------------
</TABLE>
12
<PAGE> 15
FINANCIALS
<TABLE>
<CAPTION>
SHARES MARKET VALUE
<S> <C> <C>
FOREIGN STOCKS-10.77%
AUSTRALIA-0.40%
202,776 Broken Hill Proprietary Co. Ltd. (Conglomerates) $ 2,496,149
- --------------------------------------------------------------------------------------------
120,000 News Corp Ltd.-ADR (Publishing) 2,715,000
- --------------------------------------------------------------------------------------------
500,000 News Corp Ltd.-Preference Shares-ADR (Publishing) 10,000,000
- --------------------------------------------------------------------------------------------
15,211,149
- --------------------------------------------------------------------------------------------
CANADA-0.22%
500,000 Corel Corp. (Computer Software & Services)(a) 8,625,000
- --------------------------------------------------------------------------------------------
DENMARK-0.38%
233,000 Danisco A/S (Food Processing) 9,966,300
- --------------------------------------------------------------------------------------------
97,500 Unidanmark A/S (Banking) 4,784,279
- --------------------------------------------------------------------------------------------
14,750,579
- --------------------------------------------------------------------------------------------
FINLAND-1.08%
700,000 Nokia Corp.-Class A-ADR (Telecommunications)(a) 41,737,500
- --------------------------------------------------------------------------------------------
FRANCE-0.97%
15,200 Docks De France S.A. (Retail-Food & Drug) 2,315,421
- --------------------------------------------------------------------------------------------
4,800 Essilor International-Compagnie Generale d'Optique (Medical
Services) 872,673
- --------------------------------------------------------------------------------------------
18,600 Legrand S.A. (Electronic Components/Misc.) 2,952,198
- --------------------------------------------------------------------------------------------
13,000 Moet Hennessy-Louis Vuitton (Beverages) 2,339,373
- --------------------------------------------------------------------------------------------
7,260 Promodes S.A. (Retail Stores) 1,653,639
- --------------------------------------------------------------------------------------------
16,900 Roussel Uclaf (Medical-Drugs) 2,637,087
- --------------------------------------------------------------------------------------------
600,000 SGS-Thomson Microelectron N.V. (Semiconductors)(a) 24,375,000
- --------------------------------------------------------------------------------------------
37,145,391
- --------------------------------------------------------------------------------------------
GERMANY-0.10%
8,300 Mannesmann A.G. (Machinery-Heavy) 2,535,795
- --------------------------------------------------------------------------------------------
3,150 VEBA A.G. (Electric Services) 1,237,996
- --------------------------------------------------------------------------------------------
3,773,791
- --------------------------------------------------------------------------------------------
HONG KONG-0.53%
1,080,000 HSBC Holdings PLC (Banking) 13,852,775
- --------------------------------------------------------------------------------------------
700,000 Hutchison Whampoa Ltd. (Conglomerates) 3,383,391
- --------------------------------------------------------------------------------------------
440,000 Sun Hung Kai Properties Ltd. (Real Estate) 3,255,447
- --------------------------------------------------------------------------------------------
20,491,613
- --------------------------------------------------------------------------------------------
ITALY-0.06%
820,000 Societ Italiana Per L'Esercizio delle Telecommunicazioni, P.A.
(Telecommunications)(a) 2,222,582
- --------------------------------------------------------------------------------------------
MALAYSIA-0.43%
1,337,000 Genting Berhad (Leisure & Recreation) 13,216,448
- --------------------------------------------------------------------------------------------
301,000 Leader Universal Holdings (Electronic Components/Misc.)(a) 1,074,118
- --------------------------------------------------------------------------------------------
272,000 Malayan Banking Berhad (Banking) 2,153,240
- --------------------------------------------------------------------------------------------
16,443,806
- --------------------------------------------------------------------------------------------
NETHERLANDS-3.30%
40,300 Koninklijke Nedlloyd Hoogovens CVA (Steel)(a) 1,602,117
- --------------------------------------------------------------------------------------------
240,000 Madge, N.V. (Computer Networking)(a) 6,720,000
- --------------------------------------------------------------------------------------------
</TABLE>
13
<PAGE> 16
FINANCIALS
<TABLE>
<CAPTION>
SHARES MARKET VALUE
<S> <C> <C>
Netherlands-(continued)
190,000 Orthofix International N.V. (Medical Services)(a) $ 3,253,750
- --------------------------------------------------------------------------------------------
2,300,000 Philips Electronics, N.V. New York Shares-ADR (Electronic
Components/Misc.)(a) 98,325,000
- --------------------------------------------------------------------------------------------
100,000 Royal Dutch Petroleum Co.-ADR (Oil & Gas) 12,187,500
- --------------------------------------------------------------------------------------------
10,900 Verenigde Nederlandse Utgevbedri Verigd Bezit (Publishing)(a) 1,304,905
- --------------------------------------------------------------------------------------------
40,000 Wolters Kluwer N.V. (Publishing)(a) 3,528,880
- --------------------------------------------------------------------------------------------
126,922,152
- --------------------------------------------------------------------------------------------
NEW ZEALAND-0.10%
1,320,000 Fletcher Challenge Ltd. (Paper & Forest Products) 3,706,378
- --------------------------------------------------------------------------------------------
SINGAPORE-0.43%
400,000 Keppel Corp. Ltd. (Transportation) 3,262,970
- --------------------------------------------------------------------------------------------
1,400,000 United Overseas Bank Ltd. (Banking) 13,223,614
- --------------------------------------------------------------------------------------------
16,486,584
- --------------------------------------------------------------------------------------------
SWEDEN-1.24%
353,250 ASTRA AB "A" (Medical-Drugs) 10,906,826
- --------------------------------------------------------------------------------------------
216,750 ASTRA AB "B" Free(Medical-Drugs) 6,528,345
- --------------------------------------------------------------------------------------------
27,500 Electrolux AB "B" Free (Furniture) 1,251,874
- --------------------------------------------------------------------------------------------
470,000 Skandia Forsakrings AB (Insurance-Multi-Line Property) 9,114,164
- --------------------------------------------------------------------------------------------
1,000,000 Telefonaktiebolaget L.M. Ericsson (Telecommunications)(a) 20,000,000
- --------------------------------------------------------------------------------------------
47,801,209
- --------------------------------------------------------------------------------------------
SWITZERLAND-0.06%
2,350 BBC Brown Boveri A.G. (Conglomerates) 2,432,653
- --------------------------------------------------------------------------------------------
UNITED KINGDOM-1.47%
93,400 BOC Group PLC (Chemicals-Specialty) 1,192,941
- --------------------------------------------------------------------------------------------
300,000 British Petroleum Co. PLC-ADR (Oil & Gas) 25,687,500
- --------------------------------------------------------------------------------------------
1,800,000 Burton Group PLC (Retail Stores) 2,376,332
- --------------------------------------------------------------------------------------------
221,450 Rank Organisation PLC (Leisure & Recreation) 1,398,372
- --------------------------------------------------------------------------------------------
320,000 Smithkline Beecham PLC-ADR (Medical-Drugs) 14,480,000
- --------------------------------------------------------------------------------------------
1,900,000 Standard Chartered PLC (Finance-Asset Management) 10,093,844
- --------------------------------------------------------------------------------------------
67,420 Thorn EMI PLC (Leisure & Recreation) 1,396,228
- --------------------------------------------------------------------------------------------
56,625,217
- --------------------------------------------------------------------------------------------
Total Foreign Stocks 414,375,604
- --------------------------------------------------------------------------------------------
</TABLE>
14
<PAGE> 17
FINANCIALS
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MARKET VALUE
<S> <C> <C>
U.S. TREASURY SECURITIES-4.83%
U.S. TREASURY BILLS-4.83%(b)
$110,000,000 6.37%, 07/06/95 $ 109,911,896
- ---------------------------------------------------------------------------------------------
25,000,000 5.76%, 07/13/95 24,953,583
- ---------------------------------------------------------------------------------------------
52,000,000 5.35%, 12/07/95 50,786,840
- ---------------------------------------------------------------------------------------------
Total U.S. Treasury Securities 185,652,319
- ---------------------------------------------------------------------------------------------
MASTER NOTE AGREEMENT-2.44%(c)
94,000,000 Morgan Stanley Group Inc., 6.525%, 08/01/95 94,000,000
- ---------------------------------------------------------------------------------------------
REPURCHASE AGREEMENTS-4.28%(d)
39,848,759 Daiwa Securities America Inc., 6.20%, 07/03/95(e) 39,848,759
- ---------------------------------------------------------------------------------------------
125,000,000 Goldman, Sachs & Co., 6.00%, 07/03/95(f) 125,000,000
- ---------------------------------------------------------------------------------------------
Total Repurchase Agreements 164,848,759
- ---------------------------------------------------------------------------------------------
TOTAL INVESTMENTS -- 99.33% 3,821,980,095
- ---------------------------------------------------------------------------------------------
OTHER ASSETS LESS LIABILITIES -- 0.67% 25,846,366
- ---------------------------------------------------------------------------------------------
NET ASSETS -- 100.00% $3,847,826,461
=============================================================================================
</TABLE>
Notes to Schedule of Investments:
(a) Non-income producing security.
(b) U.S. Treasury Bills are traded on a discount basis. In such cases the
interest rate shown represents the rate of discount paid or received at
the time of purchase by the Fund.
(c) Master Note Purchase Agreement may be terminated by either party upon three
business days' notice. Interest rates on master notes are redetermined
periodically. Rate shown is the rate in effect on June 30, 1995.
(d) Collateral on repurchase agreements, including the Fund's pro-rata
interest in joint repurchase agreements, is taken into possession by the
Fund upon entering into the repurchase agreement. The collateral is marked
to market daily to ensure its market value as being 102% of the sales
price of the repurchase agreement. The investments in some repurchase
agreements are through participation in joint accounts with other mutual
funds managed by the investment advisor.
(e) Joint repurchase agreement entered into 06/30/95 with a maturing value of
$186,890,118. Collateralized by $195,572,000 U.S. Treasury obligations,
0% to 8.375% due 06/27/96 to 08/15/08.
(f) Joint repurchase agreement entered into 06/30/95 with a maturing value of
$400,200,000. Collateralized by $367,670,000 U.S. Treasury obligations,
0% to 10.75% due 08/31/95 to 05/15/17.
Abbreviations:
ADR - American Depositary Receipt
See Notes to Financial Statements.
15
<PAGE> 18
FINANCIALS
STATEMENT OF ASSETS AND LIABILITIES
June 30, 1995
(Unaudited)
<TABLE>
<S> <C>
ASSETS:
Investments, at market value (cost $3,233,595,895) $3,821,980,095
- -----------------------------------------------------------------------------------------
Foreign currencies, at market value (cost $3,911,843) 3,964,258
- -----------------------------------------------------------------------------------------
Receivables for:
Investments sold 15,465,611
- -----------------------------------------------------------------------------------------
Fund shares sold 48,270,716
- -----------------------------------------------------------------------------------------
Dividends and interest 4,935,521
- -----------------------------------------------------------------------------------------
Investment for deferred compensation plan 18,605
- -----------------------------------------------------------------------------------------
Other assets 146,529
- -----------------------------------------------------------------------------------------
Total assets 3,894,781,335
- -----------------------------------------------------------------------------------------
LIABILITIES:
Payables for:
Investments purchased 24,135,469
- -----------------------------------------------------------------------------------------
Fund shares reacquired 4,262,062
- -----------------------------------------------------------------------------------------
Deferred compensation plan 18,605
- -----------------------------------------------------------------------------------------
Options written 13,007,250
- -----------------------------------------------------------------------------------------
Variation margin 130,000
- -----------------------------------------------------------------------------------------
Accrued advisory fees 1,851,926
- -----------------------------------------------------------------------------------------
Accrued administrative services fees 11,130
- -----------------------------------------------------------------------------------------
Accrued distribution fees 2,553,636
- -----------------------------------------------------------------------------------------
Accrued transfer agent fees 687,138
- -----------------------------------------------------------------------------------------
Accrued trustees' fees 4,058
- -----------------------------------------------------------------------------------------
Accrued operating expenses 293,600
- -----------------------------------------------------------------------------------------
Total liabilities 46,954,874
- -----------------------------------------------------------------------------------------
Net assets applicable to shares outstanding $3,847,826,461
=========================================================================================
NET ASSETS:
Class A $2,291,240,466
=========================================================================================
Class B $1,556,585,995
=========================================================================================
SHARES OUTSTANDING, $0.01 PAR VALUE PER SHARE:
Class A 88,192,549
=========================================================================================
Class B 60,198,215
=========================================================================================
Class A:
Net asset value and redemption price per share $ 25.98
=========================================================================================
Offering price per share:
(Net asset value of $25.98 divided by 94.50%) $ 27.49
=========================================================================================
Class B:
Net asset value and offering price per share $ 25.86
=========================================================================================
</TABLE>
See Notes to Financial Statements.
16
<PAGE> 19
FINANCIALS
STATEMENT OF OPERATIONS
For the six months ended June 30, 1995
(Unaudited)
<TABLE>
<S> <C>
INVESTMENT INCOME:
Dividends $ 15,440,885
- ----------------------------------------------------------------------------------------
Interest 14,712,444
- ----------------------------------------------------------------------------------------
Total investment income 30,153,329
- ----------------------------------------------------------------------------------------
EXPENSES:
Advisory fees 8,869,960
- ----------------------------------------------------------------------------------------
Custodian fees 132,383
- ----------------------------------------------------------------------------------------
Distribution fees -- Class A 2,207,192
- ----------------------------------------------------------------------------------------
Distribution fees -- Class B 5,154,892
- ----------------------------------------------------------------------------------------
Administrative services fees 63,773
- ----------------------------------------------------------------------------------------
Trustees' fees 10,122
- ----------------------------------------------------------------------------------------
Transfer agent fees -- Class A 1,751,884
- ----------------------------------------------------------------------------------------
Transfer agent fees -- Class B 1,518,012
- ----------------------------------------------------------------------------------------
Other 830,955
- ----------------------------------------------------------------------------------------
Total expenses 20,539,173
- ----------------------------------------------------------------------------------------
Less fees waived by advisor (101,646)
- ----------------------------------------------------------------------------------------
Net expenses 20,437,527
- ----------------------------------------------------------------------------------------
Net investment income 9,715,802
- ----------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENT SECURITIES, FOREIGN
CURRENCIES, FUTURES AND OPTIONS TRANSACTIONS:
Net realized gain from:
Investment securities 87,382,775
- ----------------------------------------------------------------------------------------
Foreign currencies 392,201
- ----------------------------------------------------------------------------------------
Futures contracts 36,091,640
- ----------------------------------------------------------------------------------------
Options contracts 955,857
- ----------------------------------------------------------------------------------------
124,822,473
- ----------------------------------------------------------------------------------------
Unrealized appreciation (depreciation) of:
Investment securities 479,435,509
- ----------------------------------------------------------------------------------------
Foreign currencies 29,387
- ----------------------------------------------------------------------------------------
Futures contracts (2,558,228)
- ----------------------------------------------------------------------------------------
Options contracts (10,053,275)
- ----------------------------------------------------------------------------------------
466,853,393
- ----------------------------------------------------------------------------------------
Net gain from investment securities, foreign currencies, futures and
options transactions 591,675,866
- ----------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $601,391,668
========================================================================================
</TABLE>
See Notes to Financial Statements.
17
<PAGE> 20
FINANCIALS
STATEMENT OF CHANGES IN NET ASSETS
For the six months ended June 30, 1995 and the year ended December 31, 1994
(Unaudited)
<TABLE>
<CAPTION>
JUNE 30, DECEMBER 31,
1995 1994
<S> <C> <C>
OPERATIONS:
Net investment income $ 9,715,802 $ 9,941,431
- ---------------------------------------------------------------------------------------------
Net realized gain (loss) from investment securities,
foreign currencies, futures and options
transactions 124,822,473 (14,172,848)
- ---------------------------------------------------------------------------------------------
Unrealized appreciation of investment securities,
foreign currencies, futures and option contracts 466,853,393 36,857,970
- ---------------------------------------------------------------------------------------------
Net increase in net assets resulting from
operations 601,391,668 32,626,553
- ---------------------------------------------------------------------------------------------
Distributions to shareholders from net investment
income:
Class A -- (9,726,386)
- ---------------------------------------------------------------------------------------------
Class B -- --
- ---------------------------------------------------------------------------------------------
Distributions to shareholders from net realized gains on investment
securities:
Class A -- (12,282,372)
- ---------------------------------------------------------------------------------------------
Class B -- (6,028,782)
- ---------------------------------------------------------------------------------------------
Share transactions-net:
Class A 553,064,927 585,993,203
- ---------------------------------------------------------------------------------------------
Class B 654,526,045 619,742,029
- ---------------------------------------------------------------------------------------------
Net increase in net assets 1,808,982,640 1,210,324,245
- ---------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 2,038,843,821 828,519,576
- ---------------------------------------------------------------------------------------------
End of period $3,847,826,461 $2,038,843,821
=============================================================================================
NET ASSETS CONSIST OF:
Shares of beneficial interest $3,153,905,111 $1,946,314,139
- ---------------------------------------------------------------------------------------------
Undistributed net investment income 9,958,967 243,165
- ---------------------------------------------------------------------------------------------
Undistributed net realized gain from investment
securities, foreign currencies, futures and options
transactions 104,257,301 (20,565,172)
- ---------------------------------------------------------------------------------------------
Unrealized appreciation of investment securities,
foreign currencies, and futures and options
contracts 579,705,082 112,851,689
- ---------------------------------------------------------------------------------------------
$3,847,826,461 $2,038,843,821
=============================================================================================
</TABLE>
See Notes to Financial Statements.
18
<PAGE> 21
FINANCIALS
NOTES TO FINANCIAL STATEMENTS
June 30, 1995
(Unaudited)
NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES
AIM Value Fund (the "Fund") is a series portfolio of AIM Funds Group (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 nine separate series portfolios,
each having an unlimited number of shares of beneficial interest. The Fund
currently offers two different classes of shares: the Class A shares and the
Class B shares. Class A shares are sold with a front-end sales charge. Class B
shares are sold with a contingent deferred sales charge. Matters affecting each
portfolio or class will be voted on exclusively by the shareholders of such
portfolio or class. The assets, liabilities and operations of each portfolio are
accounted for separately. Information presented in these financial statements
pertains only to the Fund. The 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 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 mean between the closing bid and asked prices 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. Securities for which
market quotations are not readily available 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. Generally, trading in foreign securities is
substantially completed each day at various times prior to the close of the
New York Stock Exchange. 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 New York Stock Exchange. 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 New York Stock Exchange which will
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. Foreign Currency Translations - Portfolio securities and other assets and
liabilities denominated in foreign currencies are translated into U.S. dollar
amounts at date of valuation. Purchases and sales of portfolio securities and
income items denominated in foreign currencies are translated into U.S.
dollar amounts on the respective dates of such transactions.
C. Foreign Currency Contracts - A forward currency contract is an obligation to
purchase or sell a specific currency for an agreed-upon price at a future
date. The Fund may enter into a forward contract to attempt to minimize the
risk to the Fund from adverse changes in the relationship between currencies.
The Fund may also enter into a forward contract for the purchase or sale of a
security denominated in a foreign currency in order to "lock in" the U.S.
dollar price of that security. The Fund could be exposed to risk if
counterparties to the contracts are unable to meet the terms of their
contracts or if the value of the foreign currency changes unfavorably.
D. 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 and distributions to
shareholders are recorded on the ex-dividend date.
E. Stock Index Futures Contracts - The Fund may purchase or sell stock index
futures contracts as a hedge against changes in market conditions. Initial
margin deposits required upon entering into futures contracts are
19
<PAGE> 22
FINANCIALS
NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES (continued)
satisfied by the segregation of specific securities or cash, and/or by
securing a standby letter of credit from a major commercial bank, as
collateral, for the account of the broker (the Fund's agent in acquiring the
futures position). During the period the futures contract is open, changes in
the value of the contract are recognized as unrealized gains or losses by
"marking to market" on a daily basis to reflect the market value of the
contract at the end of each day's trading. Variation margin payments are made
or received depending upon whether unrealized gains or losses are incurred.
When the contract is closed, the Fund records a realized gain or loss equal
to the difference between the proceeds from (or cost of) the closing
transaction and the Fund's basis in the contract. Risks include the
possibility of an illiquid market and the change in the value of the contract
may not correlate with changes in the securities being hedged.
F. Covered Call Options - The Fund may write call options, but only on a covered
basis; that is, the Fund will own the underlying security. Options written by
the Fund normally will have expiration dates between three and nine months
from the date written. The exercise price of a call option may be below,
equal to, or above the current market value of the underlying security at the
time the option is written. When the Fund writes a covered call option, an
amount equal to the premium received by the Fund is recorded as an asset and
an equivalent liability. The amount of the liability is subsequently
"marked-to-market" to reflect the current market value of the option written.
The current market value of a written option is the last sale price, or in
the absence of a sale, 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. The Fund will
not write a covered call option if, immediately thereafter, the aggregate
value of the securities underlying all such options, determined as of the
dates such options were written, would exceed 5% of the net assets of the
Fund.
G. 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.
H. Expenses - Operating expenses directly attributable to a class of shares are
charged to that class' operations. Expenses which are applicable to both
classes, e.g. advisory fees, are allocated between them.
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 0.80% of
the first $150 million of the Fund's average daily net assets, plus 0.625% of
the Fund's average daily net assets in excess of $150 million. AIM is currently
voluntarily waiving a portion of its advisory fees payable by the Fund to AIM to
the extent necessary to reduce the fees paid by the Fund at net asset levels
higher than those
20
<PAGE> 23
FINANCIALS
NOTE 2 - ADVISORY FEES AND OTHER TRANSACTIONS WITH AFFILIATES (continued)
currently incorporated in the present advisory fee schedule. AIM will receive a
fee calculated at 0.80% of the first $150 million of the Fund's average daily
net assets, plus 0.625% of the Fund's average daily net assets in excess of $150
million to and including $2 billion, plus 0.60% of the Fund's average daily net
assets in excess of $2 billion. The waiver of fees is entirely voluntary and the
Board of Trustees would be advised of any decision by AIM to discontinue the
waiver. During the six months ended June 30, 1995, AIM voluntarily waived
advisory fees in the amount of $101,646. This agreement requires AIM to reduce
its fees or, if necessary, make payments to the Fund to the extent required to
satisfy any expense limitations imposed by the securities laws or regulations
thereunder of any state in which the Fund's shares are qualified for sale.
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 six months ended June 30,
1995, AIM was reimbursed $63,773 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
services to the Fund. During the six months ended June 30, 1995, AFS was paid
$1,868,046 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 shares and Class B 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 (the "Class A Plan") and with respect to the Fund's Class B shares (the
"Class B Plan") (collectively, the "Plans"). The Fund, pursuant to the Class A
Plan, pays AIM Distributors compensation at an annual rate of 0.25% of the
average daily net assets attributable to the Class A shares. The Class A Plan is
designed to compensate AIM Distributors for certain promotional and other sales
related costs, and to implement a program which provides periodic payments to
selected dealers and financial institutions who furnish continuing personal
shareholder services to their customers who purchase and own Class A shares of
the Fund. 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 this amount, the Fund may pay a service
fee of 0.25% of the average daily net assets of the Class B shares to selected
dealers and financial institutions who furnish continuing personal shareholder
services to their customers who purchase and own Class B shares of the Fund. Any
amounts not paid as a service fee under such Plans would constitute an
asset-based sales charge. The Plans also impose a cap on the total sales
charges, including asset-based sales charges, that may be paid by the respective
classes. During the six months ended June 30, 1995, the Class A shares and the
Class B shares paid AIM Distributors $2,207,192 and $5,154,892, respectively, as
compensation pursuant to the Plans.
AIM Distributors received commissions of $2,778,717 from sales of the Class A
shares of the Fund during the six months ended June 30, 1995. Such commissions
are not an expense of the Fund. They are deducted from, and are not included in,
the proceeds from sales of Class A shares. During the six months ended June 30,
1995, AIM Distributors received $1,041,794 in contingent deferred sales charges
imposed on redemptions of Fund shares. Certain officers and trustees of the
Trust are officers and directors of AIM, AIM Distributors and AFS.
During the six months ended June 30, 1995, the Fund paid legal fees of $2,057
for services rendered by Kramer, Levin, Naftalis, Nessen, Kamin & Frankel as
counsel to the Board of Trustees. A member of that firm is a trustee of the
Trust.
NOTE 3 - TRUSTEES' FEES
Trustees' fees represent remuneration paid or accrued to each trustee who is not
an "interested person" of the Trust. The Trust may invest trustees' fees, if so
elected by a trustee, in mutual fund shares in accordance with a deferred
compensation plan.
21
<PAGE> 24
FINANCIALS
NOTE 4 - INVESTMENT SECURITIES
The aggregate amount of investment securities (other than short-term securities)
purchased and sold by the Fund during the six months ended June 30, 1995 was
$2,974,545,382 and $1,647,663,965, respectively.
The amount of unrealized appreciation (depreciation) of investment securities on
a tax basis as of June 30, 1995 is as follows:
<TABLE>
<S> <C>
Aggregate unrealized appreciation of investment securities $612,516,783
- ------------------------------------------------------------------------------------------------------------------
Aggregate unrealized (depreciation) of investment securities (24,132,583)
- ------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation of investment securities $588,384,200
==================================================================================================================
</TABLE>
Cost of investments for tax purposes is $3,233,595,895.
NOTE 5 - SHARE INFORMATION
Changes in shares outstanding during the six months ended June 30, 1995 and the
year ended December 31, 1994 were as follows:
<TABLE>
<CAPTION>
JUNE 30, 1995 DECEMBER 31, 1994
------------------------------- -------------------------------
SHARES VALUE SHARES VALUE
----------- -------------- ----------- --------------
<S> <C> <C> <C> <C>
Sold:
Class A 33,968,594 $ 786,179,811 44,842,263 $ 956,547,274
- ------------------------------------------------------- ------------------------------- -------------------------------
Class B 30,101,691 703,200,710 30,585,526 650,657,626
- ------------------------------------------------------- ------------------------------- -------------------------------
Issued as reinvestment of dividends:
Class A -- -- 1,002,453 20,670,601
- ------------------------------------------------------- ------------------------------- -------------------------------
Class B -- -- 289,906 5,707,603
- ------------------------------------------------------- ------------------------------- -------------------------------
Reacquired:
Class A (10,034,446) (233,114,884) (18,339,133) (391,224,672)
- ------------------------------------------------------- ------------------------------- -------------------------------
Class B (2,087,493) (48,674,665) (1,727,299) (36,623,200)
- ------------------------------------------------------- ------------------------------- -------------------------------
51,948,346 $1,207,590,972 56,653,716 $1,205,735,232
======================================================= =============================== ===============================
</TABLE>
NOTE 6 - OPEN FUTURES CONTRACTS
At June 30, 1995, $53,398,509 principal amount of U.S. Treasury securities were
deposited in a segregated account with the Fund's custodian as collateral for
open futures contracts:
Open futures contracts at June 30, 1995 were as follows:
<TABLE>
<CAPTION>
NUMBER
OF UNREALIZED
CONTRACT CONTRACTS/MONTH/COMMITMENT APPRECIATION
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
S&P 500 Index 200 contracts/September/Buy $1,316,490
================================================================================================================================
</TABLE>
NOTE 7 - OPTION CONTRACTS WRITTEN
Transactions in call options written during the six months ended June 30, 1995
are summarized as follows:
<TABLE>
<CAPTION>
OPTION CONTRACTS
--------------------------
NUMBER
OF PREMIUMS
CONTRACTS RECEIVED
---------- -----------
<S> <C> <C>
Beginning of period -- --
- --------------------------------------------------------------------------------------------------------------------------
Written 23,850 $ 6,405,717
- --------------------------------------------------------------------------------------------------------------------------
Closed (1,000) (356,928)
- --------------------------------------------------------------------------------------------------------------------------
Exercised (9,268) (2,488,135)
- --------------------------------------------------------------------------------------------------------------------------
Expired (3,600) (606,679)
- --------------------------------------------------------------------------------------------------------------------------
End of period 9,982 $ 2,953,975
==========================================================================================================================
</TABLE>
22
<PAGE> 25
FINANCIALS
Open call option contracts written at June 30, 1995 were as follows:
<TABLE>
<CAPTION>
JUNE 30, UNREALIZED
CONTRACT STRIKE NUMBER OF PREMIUM 1995 APPRECIATION
ISSUE MONTH PRICE CONTRACTS RECEIVED MARKET VALUE (DEPRECIATION)
- ----- -------- ------ --------- ---------- ------------ --------------
<S> <C> <C> <C> <C> <C> <C>
Circus Circus Enterprises Sep 35 1,000 $ 251,991 $ (250,000) $ 1,991
- ---------------------------------------------------------------------------------------------------------------------------------
EMC Corp. July 15 4,000 937,968 (3,700,000) (2,762,032)
- ---------------------------------------------------------------------------------------------------------------------------------
EMC Corp. July 17.5 2,000 248,991 (1,475,000) (1,226,009)
- ---------------------------------------------------------------------------------------------------------------------------------
International Business Machines Corp. July 80 750 422,611 (1,190,625) (768,014)
- ---------------------------------------------------------------------------------------------------------------------------------
International Business Machines Corp. July 85 750 222,743 (881,250) (658,507)
- ---------------------------------------------------------------------------------------------------------------------------------
Texas Instruments Inc. July 95 832 566,781 (3,276,000) (2,709,219)
- ---------------------------------------------------------------------------------------------------------------------------------
Texas Instruments Inc. July 100 650 302,890 (2,234,375) (1,931,485)
- ---------------------------------------------------------------------------------------------------------------------------------
9,982 $2,953,975 $(13,007,250) $(10,053,275)
=================================================================================================================================
</TABLE>
NOTE 8 - FINANCIAL HIGHLIGHTS
Shown below are the condensed financial highlights for a Class A share
outstanding during the six months ended June 30, 1995 and each of the years in
the nine-year period ended December 31, 1994 and for a Class B share outstanding
during the six months ended June 30, 1995, the year ended December 31, 1994 and
the period October 18, 1993 (date sales commenced) through December 31, 1993.
<TABLE>
<CAPTION>
DECEMBER 31,
JUNE 30, ------------------------------------------
1995 1994 1993 1992(a)
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
CLASS A:
Net asset value, beginning of period $ 21.14 $ 20.82 $ 18.24 $ 17.55
- ------------------------------------------------------ ---------- ---------- --------- ---------
Income from investment operations:
Net investment income 0.10 0.16 0.04 0.12
- ------------------------------------------------------ ---------- ---------- --------- ---------
Net gains on securities (both realized and
unrealized) 4.74 0.52 3.34 2.68
- ------------------------------------------------------ ---------- ---------- --------- ---------
Total from investment operations 4.84 0.68 3.38 2.80
- ------------------------------------------------------ ---------- ---------- --------- ---------
Less distributions:
Dividends from net investment income -- (0.16) (0.03) (0.12)
- ------------------------------------------------------ ---------- ---------- --------- ---------
Distributions from net realized capital gains -- (0.20) (0.77) (1.99)
- ------------------------------------------------------ ---------- ---------- --------- ---------
Total distributions -- (0.36) (0.80) (2.11)
- ------------------------------------------------------ ---------- ---------- --------- ---------
Net asset value, end of period $ 25.98 $ 21.14 $ 20.82 $ 18.24
====================================================== ========== ========== ========= =========
Total return(b) 22.90% 3.28% 18.71% 16.39%
====================================================== ========== ========== ========= =========
Ratios/supplemental data:
Net assets, end of period (000s omitted) $2,291,240 $1,358,725 $ 765,305 $ 239,663
====================================================== ========== ========== ========= =========
Ratio of expenses to average net assets 1.15%(c) 0.98% 1.09% 1.16%
====================================================== ========== ========== ========= =========
Ratio of net investment income to average net assets 1.00%(c) 0.92% 0.30% 0.75%
====================================================== ========== ========== ========= =========
Portfolio turnover rate 71% 127% 177% 170%
====================================================== ========== ========== ========= =========
<CAPTION>
DECEMBER 31,
-------------------------------------------------------------------------
1991 1990 1989 1988 1987
--------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
CLASS A:
Net asset value, beginning of period $ 13.75 $ 14.53 $ 12.79 $ 11.47 $ 12.26
- ------------------------------------------------------ --------- -------- -------- -------- --------
Income from investment operations:
Net investment income 0.13 0.26 0.40 0.26 0.25
- ------------------------------------------------------ --------- -------- -------- -------- --------
Net gains on securities (both realized and
unrealized) 5.73 0.01 3.58 2.07 0.53
- ------------------------------------------------------ --------- -------- -------- -------- --------
Total from investment operations 5.86 0.27 3.98 2.33 0.78
- ------------------------------------------------------ --------- -------- -------- -------- --------
Less distributions:
Dividends from net investment income (0.14) (0.26) (0.43) (0.26) (0.39)
- ------------------------------------------------------ --------- -------- -------- -------- --------
Distributions from net realized capital gains (1.92) (0.79) (1.81) (0.75) (1.18)
- ------------------------------------------------------ --------- -------- -------- -------- --------
Total distributions (2.06) (1.05) (2.24) (1.01) (1.57)
- ------------------------------------------------------ --------- -------- -------- -------- --------
Net asset value, end of period $ 17.55 $ 13.75 $ 14.53 $ 12.79 $ 11.47
====================================================== ========= ======== ======== ======== ========
Total return(b) 43.45% 1.88% 31.54% 20.61% 5.96%
====================================================== ========= ======== ======== ======== ========
Ratios/supplemental data:
Net assets, end of period (000s omitted) $ 152,149 $ 86,565 $ 76,444 $ 60,076 $ 55,527
====================================================== ========= ======== ======== ======== ========
Ratio of expenses to average net assets 1.22% 1.21%(d) 1.00%(d) 1.00%(d) 1.00%
====================================================== ========= ======== ======== ======== ========
Ratio of net investment income to average net assets 0.89% 1.87%(e) 2.65%(e) 1.98%(e) 1.91%
====================================================== ========= ======== ======== ======== ========
Portfolio turnover rate 135% 131% 152% 124% 219%
====================================================== ========= ======== ======== ======== ========
<CAPTION>
December 31,
------------
1986
--------
<S> <C>
CLASS A:
Net asset value, beginning of period $ 12.90
- ------------------------------------------------------ --------
Income from investment operations:
Net investment income 0.36
- ------------------------------------------------------ --------
Net gains on securities (both realized and
unrealized) 0.75
- ------------------------------------------------------ --------
Total from investment operations 1.11
- ------------------------------------------------------ --------
Less distributions:
Dividends from net investment income (0.43)
- ------------------------------------------------------ --------
Distributions from net realized capital gains (1.32)
- ------------------------------------------------------ --------
Total distributions (1.75)
- ------------------------------------------------------ --------
Net asset value, end of period $ 12.26
====================================================== ========
Total return(b) 8.80%
====================================================== ========
Ratios/supplemental data:
Net assets, end of period (000s omitted) $ 46,642
====================================================== ========
Ratio of expenses to average net assets 1.00%(d)
====================================================== ========
Ratio of net investment income to average net assets 3.15%(e)
====================================================== ========
Portfolio turnover rate 134%
====================================================== ========
</TABLE>
(a) The Fund changed investment advisors on June 30, 1992.
(b) Total returns do not deduct sales charges and for periods less than one year
are not annualized.
(c) Ratios are annualized and based on average net assets of $1,780,387,263.
(d) Ratios of expenses to average net assets prior to reduction of advisory fees
were 1.23%, 1.09%, 1.08% and 1.05% for 1990-88 and 1986, respectively.
(e) Ratios of net investment income to average net assets prior to reduction of
advisory fees were 1.85%, 2.56%, 1.90% and 3.14% for 1990-88 and 1986,
respectively.
23
<PAGE> 26
FINANCIALS
NOTE 8 - FINANCIAL HIGHLIGHTS (continued)
<TABLE>
<CAPTION>
DECEMBER 31,
JUNE 30, --------------------
1995 1994 1993
---------- -------- -------
<S> <C> <C> <C>
CLASS B:
Net asset value, beginning of period $ 21.13 $ 20.82 $ 21.80
- ----------------------------------------------------------------------------- ---------- -------- -------
Income from investment operations:
Net investment income 0.02 -- 0.02
- ----------------------------------------------------------------------------- ---------- -------- -------
Net gains (losses) on securities (both realized and unrealized) 4.71 0.51 (0.21)
- ----------------------------------------------------------------------------- ---------- -------- -------
Total from investment operations 4.73 0.51 (0.19)
- ----------------------------------------------------------------------------- ---------- -------- -------
Less distributions:
Dividends from net investment income -- -- (0.02)
- ----------------------------------------------------------------------------- ---------- -------- -------
Distributions from net realized capital gains -- (0.20) (0.77)
- ----------------------------------------------------------------------------- ---------- -------- -------
Total distributions -- (0.20) (0.79)
- ----------------------------------------------------------------------------- ---------- -------- -------
Net asset value, end of period $ 25.86 $ 21.13 $ 20.82
============================================================================= ========== ======== =======
Total return(a) 22.39% 2.46% (0.74)%
============================================================================= ========== ======== =======
Ratios/supplemental data:
Net assets, end of period (000s omitted) $1,556,586 $680,119 $63,215
============================================================================= ========== ======== =======
Ratio of expenses to average net assets 1.99%(b) 1.90% 1.85%(c)
============================================================================= ========== ======== =======
Ratio of net investment income (loss) to average net assets 0.17%(b) 0.00% (0.46)%(c)
============================================================================= ========== ======== =======
Portfolio turnover rate 71% 127% 177%
============================================================================= ========== ======== =======
</TABLE>
(a) Total returns do not deduct contingent deferred sales charges and for
periods less than one year are not annualized.
(b) Ratios are annualized and based on average net assets of $1,039,522,448.
(c) Annualized.
24
<PAGE> 27
TRUSTEES & OFFICERS
<TABLE>
<S> <C> <C>
BOARD OF TRUSTEES OFFICERS OFFICE OF THE FUND
11 Greenway Plaza
Charles T. Bauer Charles T. Bauer Suite 1919
Chairman and Chief Executive Officer Chairman Houston, TX 77046
A I M Management Group Inc.
Robert H. Graham
Bruce L. Crockett President INVESTMENT ADVISER
Director, President and
Chief Executive Officer John J. Arthur A I M Advisors, Inc.
COMSAT Corporation Senior Vice President and Treasurer 11 Greenway Plaza
Suite 1919
Owen Daly II Gary T. Crum Houston, TX 77046
Director Senior Vice President
Cortland Trust Inc.
Carol F. Relihan TRANSFER AGENT
Carl Frischling Vice President and Secretary
Partner A I M Fund Services, Inc.
Kramer, Levin, Naftalis, Nessen, Dana R. Sutton P.O. Box 4739
Kamin & Frankel Vice President Houston, TX 77210-4739
and Assistant Treasurer
Robert H. Graham
President Robert G. Alley CUSTODIAN
A I M Management Group Inc. Vice President
State Street Bank and Trust Company
John F. Kroeger Stuart W. Coco 225 Franklin Street
Formerly, Consultant Vice President Boston, MA 02110
Wendell & Stockel Associates, Inc.
Melville B. Cox
Lewis F. Pennock Vice President COUNSEL TO THE FUND
Attorney
Karen Dunn Kelley Ballard Spahr
Ian W. Robinson Vice President Andrews & Ingersoll
Consultant; Former Executive 1735 Market Street
Vice President and Jonathan C. Schoolar Philadelphia, PA 19103
Chief Financial Officer Vice President
Bell Atlantic Management
Services, Inc. P. Michelle Grace COUNSEL TO THE TRUSTEES
Assistant Secretary
Louis S. Sklar Kramer, Levin, Naftalis,
Executive Vice President Nancy L. Martin Nessen, Kamin & Frankel
Hines Interests Assistant Secretary 919 Third Avenue
Limited Partnership New York, NY 10022
Ofelia M. Mayo
Assistant Secretary
DISTRIBUTOR
Kathleen J. Pflueger
Assistant Secretary A I M Distributors, Inc.
11 Greenway Plaza
Samuel D. Sirko Suite 1919
Assistant Secretary Houston, TX 77046
Stephen I. Winer
Assistant Secretary
Mary J. Benson
Assistant Treasurer
</TABLE>
This report may be distributed only to current shareholders or to persons
who have received a current Fund prospectus.
25
<PAGE> 28
A I M Distributors, Inc. ---------------
[AIM LOGO 11 Greenway Plaza, Suite 1919 BULK RATE
APPEARS HERE] Houston, Texas 77046 U.S. POSTAGE
PAID
Houston, TX
THE AIM FAMILY OF FUNDS(R) Permit No. 2332
---------------
AGGRESSIVE GROWTH
AIM Aggressive Growth Fund*
AIM Constellation Fund
AIM Global Aggressive Growth Fund
GROWTH
AIM Global Growth Fund
AIM Growth Fund
AIM International Equity Fund
AIM Value Fund
AIM Weingarten Fund
GROWTH AND INCOME
AIM Balanced Fund
AIM Charter Fund
INCOME AND GROWTH [FULL PAGE PHOTO OF
AIM Global Utilities Fund** AIM MANAGEMENT GROUP
HIGH CURRENT INCOME OFFICE BUILDING]
AIM High Yield Fund
CURRENT INCOME
AIM Global Income Fund
AIM Income Fund
CURRENT TAX-FREE INCOME
AIM Municipal Bond Fund
AIM Tax-Exempt Bond Fund of Conn.
AIM Tax-Free Intermediate Shares
CURRENT INCOME AND HIGH DEGREE OF SAFETY
AIM Government Securities Fund
HIGH DEGREE OF SAFETY AND CURRENT INCOME
AIM Limited Maturity Treasury Shares
STABILITY, LIQUIDITY, AND CURRENT INCOME
AIM Money Market Fund
STABILITY, LIQUIDITY, AND CURRENT TAX-FREE INCOME
AIM Tax-Exempt Cash Fund
*AIM Aggressive Growth Fund was closed to new investors on
July 18, 1995. **On May 1, 1995, AIM Utilities Fund broadened its investment
strategy to permit up to 80% of its total assets to be invested in foreign
securities, and was renamed AIM Global Utilities 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.
