<PAGE> 1
[AIM LOGO APPEARS HERE]
(GRAPHIC COLLAGE APPEARS HERE)
AIM HIGH YIELD FUND
SEMIANNUAL REPORT
JUNE 30, 1995
<PAGE> 2
AIM HIGH YIELD FUND
For shareholders who seek a high level of current income by investing in a
portfolio consisting primarily of high-yielding, lower-rated corporate
bonds.
ABOUT FUND PERFORMANCE DATA THROUGHOUT THIS REPORT:
o Unless otherwise indicated, Fund results were computed without a sales
charge. When sales charges are included in performance figures, Class A
share performance reflects the maximum 4.75% 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 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 The Fund's portfolio composition may change and there is no assurance the
Fund will continue to hold these same securities.
o Past performance cannot guarantee comparable future results.
ABOUT INDEXES AND OTHER PERFORMANCE BENCHMARKS CITED IN THIS REPORT:
o Lipper Analytical Services, Inc., is an independent mutual fund performance
monitor. The unmanaged Lipper High Current Yield Funds Category represents
an average of the performance of all high-yield funds tracked by Lipper.
o An investment cannot be made in any indexes listed. Unless otherwise
indicated, index results include reinvested dividends and do not reflect
sales charges.
================================================================================
AVERAGE ANNUAL TOTAL RETURN
For periods ended June 30, 1995
<TABLE>
<CAPTION>
Without With
Sales Charge Sales Charge
------------ ------------
<S> <C> <C>
CLASS A SHARES
10 Years 11.75% 11.20%
5 Years 14.24 13.14
1 Year 9.59 4.42
6 Months 10.43 5.13
CLASS B SHARES
Inception (9/1/93) 6.15% 4.18%
1 Year 8.68 3.74
6 Months 9.98 4.98
</TABLE>
Six-month performance includes reinvested distributions of $0.474 and $0.435
for Class A and Class B shares, respectively.
- --------------------------------------------------------------------------------
<PAGE> 3
CHAIRMAN'S LETTER
Dear Shareholder:
Following a dramatic rally in bond prices, AIM High Yield
Fund closed the six months ended June 30, 1995, with a solid
[PHOTO of total return of 10.43% for Class A shares, and 9.98% for
Charles T. Bauer, Class B shares.
Chairman of Even within a strong market, skilled investment management
the Board of was still the distinguishing factor among bond funds. The
the Fund, Fund's performance eclipsed even the 9.72% total return
APPEARS HERE] logged during the reporting period by the Lipper High
Current Yield Funds Category, an unmanaged average of the
performance of all high-yield mutual funds tracked by Lipper Analytical
Services, Inc.
We have provided more detail of the Fund's strong performance, as measured
by Lipper and Morningstar, Inc., in the charts on the following page.
The Fund's strong performance contributed to an increase of 33% in net
assets to $1.028 billion during the six months ended June 30, 1995. Net asset
value per Class A share increased to $9.37 from $8.93. Class B shares increased
to $9.36 from $8.92 per share.
The Fund's 30-day yield was 10.36% for Class A shares and 10.02% for Class
B shares, based on maximum offering price as of June 30, 1995. The yield
calculation reflects the yield to maturity of the securities in the portfolio,
and includes both interest and amortization of any discount or premium to the
face value of the securities.
AIM High Yield Fund has built an impressive record of long-term results,
achieving positive total returns in 14 of the last 16 calendar years. While the
Fund has fluctuated with changing markets during those years, and past
performance cannot guarantee future results, shareholders who have retained a
long-term perspective have enjoyed the greatest returns on their investment.
We remain committed to managing your Fund according to AIM's
research-based, quality-oriented, investment discipline. We believe our
faithful application of this philosophy has been a major contributor to AIM's
growth. In the first six months of this year, our assets under management
increased by more than 18% 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 shareholder accounts during the period.
We appreciate your continued confidence in AIM High Yield Fund. As always,
we are ready to respond to your questions or comments about this report. Please
call Client Services at 800-959-4246 during normal business hours. For
automated account information 24 hours a day, call the AIM Investor Line
toll-free at 800-246-5463.
Respectfully submitted,
/s/ CHARLES T. BAUER
Charles T. Bauer
Chairman
<PAGE> 4
DISCUSSION & ANALYSIS
----------------
AIM High Yield
Fund outperformed
the averages for
high-yield bond funds
over one-, five-, and
10-year periods.
----------------
BOND PERFORMANCE IMPROVES IN 1995
Following 1994, when bonds had one of their worst years on record, investors
were more than ready for good news.
It came in the form of evidence that the Federal Reserve Board's long
sought after "soft landing" for the economy--a strategy to slow growth, but
not to the point of recession--was working. More than a year after the Fed
began efforts to slow 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.
The economy had slowed decidedly from the 5.1% annual rate it logged in the
fourth quarter of 1994.
The news was a tonic for fixed-income investors, who could relax the
inflation vigil and take advantage of opportunity abounding in financial
markets. Falling interest rates boosted values of existing fixed-income
securities, with higher-quality issues luring investors away from high-yield
securities.
Prices of high-yield bonds, which tend to track economic cycles, lagged
behind other fixed-income classes amid a flood of issue supply--some $19
billion--and concerns that a slowing economy would make it harder for
lower-rated companies to service their debt.
During the second quarter of 1995, economic growth dropped to an annual
rate of less than 1%, and markets began to discount the possibility that the
Fed 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. Many analysts believed a rate cut could enable the
economy to skirt recession and prolong an expansion already into its fifth
year.
The prospect of lower interest rates and continued strength in corporate
profits--particularly in such cyclical sectors as chemicals, steel, and
paper--helped high-yield bonds gain 5.80% in the second quarter of 1995.
Overall, the performance of high-yield funds during the reporting period
helped investors to regain some of the performance given up in 1994. One-year
total return for the average high-yield bond fund was 8.17% as of June 30,
1995, according to Lipper High Current Yield Funds Category.
AIM High Yield Fund posted one-year total returns of 9.59% and 8.68%,
respectively, for Class A and Class B shares as of June 30, 1995, extending its
overall positive record of performance. The charts below show the Fund
outperformed the average performance for fixed-income funds over one-, five-,
and 10-year periods, as measured by Lipper.
================================================================================
LIPPER RANKINGS (AS OF 6/30/95)
<TABLE>
<CAPTION>
AIM ALL
HIGH YIELD FIXED-INCOME
PERIOD FUND FUNDS TOP %
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
10 YEARS 7 601 2%
5 YEARS 19 1,571 2
1 YEAR 771 3,998 20
</TABLE>
================================================================================
MORNINGSTAR RATINGS (AS OF 6/30/95)
<TABLE>
<CAPTION>
FUNDS IN
PERIOD RATING HYBRID CATEGORIES
- --------------------------------------------------------------------------------
<S> <C> <C>
OVERALL **** NA
10 YEARS **** 679
5 YEARS ***** 1,532
3 YEARS **** 2,186
</TABLE>
Fund performance rankings are vs. all fixed-income funds tracked by Lipper,
excluding all sales charges, and including fees and expenses. Morningstar
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.
YOUR INVESTMENT PORTFOLIO
An emphasis on quality, earnings momentum, and broad diversification helped AIM
High Yield Fund
See important Fund disclosure on inside front cover.
2
<PAGE> 5
================================
TOP 10 HOLDINGS
1. Revlon Worldwide
2. Americold Corp.
3. K&F Industries, Inc.
4. Silgan Holdings Inc.
5. GPA Delaware
6. Horizon Cellular Telephone
7. Australis Media Ltd.
8. Continental Cablevision, Inc.
9. Olympic Financial Ltd.
10. Videotron Ltee
This is based on the Fund's
portfolio as of June 30, 1995.
---------------
Many of the Fund's
holdings reported
strong earnings
during the
reporting period.
---------------
deliver strong performance in the first six months of 1995.
Many of the Fund's holdings reported strong earnings during the reporting
period. Recent gains in cable markets helped investments in Century
Communications and Comcast. Australis Media Ltd. secured key broadcasting
agreements, such as rights to air the U.S. PGA Golf Championship and the Rugby
League World Cup finals.
Telecommunications companies, which represented almost 10% of the Fund's
portfolio, benefited from the surge in mobile phone sales. Issues in Cellular
Inc., PriCellular Wireless Corp., and USA Mobile Communications advanced during
the period. The Fund added In-Flight Phones Corp., a provider of air-to-ground
telephone service.
Prices climbed on strong earnings for issues in the advertising and
broadcast media group, which included Ackerly Communications Inc., Katz Corp.
and Lamar Advertising Co.
As the economy retracted during the period, the Fund sold selected cyclical
positions in paper and forest products and steel. Many of the Fund's positions
in chemicals posted earnings gains for the period. The Fund added UCAR Global
Enterprises, Inc., a supplier of graphite electrodes for use by mini-mill steel
companies.
The Fund increased such defensive positions as food and drug retailer
Pathmark Stores, Inc., and new additions Ralph's Grocery Co. and Thrifty
Payless Inc. The Fund also added consumer products producer Revlon Worldwide.
The Fund's portfolio had an average quality rating of B as evaluated by
Standard & Poor's Corporation, a widely known credit-rating agency. The Fund
had a risk-adjusted rating of bb, which is the highest rating S&P gives to
high-yield funds. S&P's ratings are historical and are based on an annual
analysis of the Fund's credit quality, composition, and management.
OUTLOOK FOR THE FUTURE
The central bank's more accommodative monetary policy should spur continued
growth in the economy and fuel gains in corporate profits. The Fed recently
lowered the federal funds rate on overnight loans between banks by 0.25%--the
first such reduction since September 1992.
The move, though widely anticipated, was nonetheless celebrated in stock
and bond markets. Several major banks lowered their prime lending rates from
the highest point in almost four years.
High yield issues, in particular, should benefit from lower interest rates
and moderate growth.
Rather than try to determine the future direction of interest rates and
financial markets, AIM High Yield Fund continues to look for value, one
company at a time. By confining the scope of our analysis to individual
companies, we can maintain our focus on credit fundamentals.
================================================================================
CURRENT YIELD ADVANTAGE
30-DAY YIELD
AS OF 6/30/95.
[BAR CHART APPEARS HERE DEPICTING 30-DAY YIELD AS OF JUNE 30, 1995 FOR
6-MONTH CDs (4.96%)**, 10-YEAR U.S. TREASURY BONDS (6.20%)** AND
AIM HIGH YIELD FUND CLASS A (10.36%)]
10.02% is the current yield for the Fund's Class B shares as of June 30, 1995.
*Bank certificates of deposit, which are insured by the FDIC for up to
$100,000, are short-term investments that pay fixed principal and interest, but
are subject to fluctuating rollover rates and early withdrawal penalties. CD
income is calculated using the six-month annualized average monthly CD rate
reported by the Bank Rate Monitor. Fund shares are not insured and their value
will vary with market conditions. **U.S. Treasury bonds, notes, and bills are
guaranteed as to the timely payment of principal and interest.
See important Fund disclosure on inside front cover.
3
<PAGE> 6
FINANCIALS
SCHEDULE OF INVESTMENTS
June 30, 1995
(Unaudited)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MARKET VALUE
<S> <C> <C>
NON-CONVERTIBLE BONDS & NOTES-90.60%
ADVERTISING/BROADCASTING-4.30%
$ 9,500,000 Ackerley Communications Inc., Sr. Secured Series A Notes,
10.75%, 10/01/03 $ 9,998,750
- ---------------------------------------------------------------------------------------------------------------------
27,000,000 Australis Media Ltd., Sr. Sub. Disc. Notes,
14.00%, 05/15/03(b)(c) 13,905,000
- ---------------------------------------------------------------------------------------------------------------------
7,000,000 Granite Broadcasting Corp., Sr. Sub. Series A Notes,
10.375%, 05/15/05(a) (Acquired 05/12/95-05/22/95; Cost $6,987,500) 7,035,000
- ---------------------------------------------------------------------------------------------------------------------
6,750,000 Katz Corp., Sr. Sub. Notes,
12.75%, 11/15/02 7,323,750
- ---------------------------------------------------------------------------------------------------------------------
6,000,000 Lamar Advertising Co., Sr. Secured Notes,
11.00%, 05/15/03 6,000,000
- ---------------------------------------------------------------------------------------------------------------------
44,262,500
- ---------------------------------------------------------------------------------------------------------------------
AEROSPACE/DEFENSE-1.86%
18,525,000 K & F Industries Inc., Sr. Sub. Deb.,
13.75%, 08/01/01 19,127,062
- ---------------------------------------------------------------------------------------------------------------------
AUTOMOBILE/TRUCKS PARTS & TIRES-2.28%
9,000,000 Aftermarket Technology Corp., Sr. Sub. Notes,
12.00%, 08/01/04 9,540,000
- ---------------------------------------------------------------------------------------------------------------------
6,500,000 Pronet Inc., Sr. Sub. Notes,
11.875%, 06/15/05(a) (Acquired 06/12/95; Cost $6,453,395) 6,548,750
- ---------------------------------------------------------------------------------------------------------------------
7,500,000 Solon Automated Services, Inc., Sr. Notes,
12.75%, 07/15/01 7,387,500
- ---------------------------------------------------------------------------------------------------------------------
23,476,250
- ---------------------------------------------------------------------------------------------------------------------
BEVERAGES-1.12%
9,500,000 Heileman Acquisition Co., Sr. Sub. Notes,
9.625%, 01/31/04 5,700,000
- ---------------------------------------------------------------------------------------------------------------------
6,650,000 Seven Up/RC Bottling Co., Sr. Secured Notes,
11.50%, 08/01/99 5,852,000
- ---------------------------------------------------------------------------------------------------------------------
11,552,000
- ---------------------------------------------------------------------------------------------------------------------
BUILDING MATERIALS-0.68%
7,000,000 International Wire Group, Sr. Sub. Notes,
11.75%, 06/01/05(a) (Acquired 06/07/95; Cost $7,000,000) 7,043,750
- ---------------------------------------------------------------------------------------------------------------------
BUSINESS SERVICES-3.89%
10,200,000 Americold Corp., First Mortgage Series B Deb.,
11.50%, 03/01/05 9,945,000
- ---------------------------------------------------------------------------------------------------------------------
11,410,000 Americold Corp., Sr. Sub. Deb.,
15.00%, 05/01/97 11,410,000
- ---------------------------------------------------------------------------------------------------------------------
1,050,000 Comdata Network, Inc., Gtd. Sr. Notes,
12.50%, 12/15/99 1,145,812
- ---------------------------------------------------------------------------------------------------------------------
5,875,000 Comdata Network, Inc., Sr. Sub. Deb.,
13.25%, 12/15/02 6,609,375
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
4
<PAGE> 7
FINANCIALS
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MARKET VALUE
<S> <C> <C>
Business Services-(continued)
$ 13,000,000 Neodata Services Inc., Sr. Deferred Coupon Notes,
12.00%, 05/01/03(c) $ 10,920,000
- ------------------------------------------------------------------------------------------------------------------------
40,030,187
- ------------------------------------------------------------------------------------------------------------------------
CABLE TELEVISION-8.21%
5,000,000 Adelphia Communications Corp., Sr. Deb.,
11.875%, 09/15/04 4,700,000
- ------------------------------------------------------------------------------------------------------------------------
4,250,000 Adelphia Communications Corp., Sr. Notes,
12.50%, 05/15/02 4,228,750
- ------------------------------------------------------------------------------------------------------------------------
8,800,000 American Media Operations, Sr. Sub. Notes,
11.625%, 11/15/04 9,416,000
- ------------------------------------------------------------------------------------------------------------------------
10,900,000 Century Communications, Sr. Sub. Deb.,
11.875%, 10/15/03 11,554,000
- ------------------------------------------------------------------------------------------------------------------------
Comcast Corp., Sr. Sub. Deb.,
2,200,000 10.25%, 10/15/01 2,348,500
- ------------------------------------------------------------------------------------------------------------------------
6,500,000 10.625%, 07/15/12 6,955,000
- ------------------------------------------------------------------------------------------------------------------------
12,500,000 Continental Cablevision, Inc., Sr. Sub. Deb.,
11.00%, 06/01/07 13,875,000
- ------------------------------------------------------------------------------------------------------------------------
10,500,000 Groupe Videotron Ltee, Yankee Bonds,
10.625%, 02/15/05 11,051,250
- ------------------------------------------------------------------------------------------------------------------------
8,525,000 Marcus Cable Co., Sr. Deb.,
11.875%, 10/01/05 8,184,000
- ------------------------------------------------------------------------------------------------------------------------
9,500,000 Rogers Cable Systems, Sr. Secured Second Priority Notes,
10.00%, 03/15/05(a) (Acquired 03/10/95-04/04/95; Cost $9,458,750) 9,761,250
- ------------------------------------------------------------------------------------------------------------------------
2,300,000 Videotron Ltee, Yankee Bonds,
10.25%, 10/15/02 2,383,375
- ------------------------------------------------------------------------------------------------------------------------
84,457,125
- ------------------------------------------------------------------------------------------------------------------------
CHEMICALS-7.40%
9,600,000 Applied Extrusion Technologies, Inc., Sr. Series B Notes,
11.50%, 04/01/02 10,080,000
- ------------------------------------------------------------------------------------------------------------------------
10,600,000 Arcadian Partners, L.P., Sr. Series B Notes,
10.75%, 05/01/05 10,600,000
- ------------------------------------------------------------------------------------------------------------------------
6,000,000 Berry Plastics Corp., Sr. Sub. Notes,
12.25%, 04/15/04 6,090,000
- ------------------------------------------------------------------------------------------------------------------------
2,500,000 Foamex L.P., Sr. Notes,
11.25% 10/01/02 2,462,500
- ------------------------------------------------------------------------------------------------------------------------
7,180,000 Foamex L.P., Sr. Sub. Deb.,
11.875%, 10/01/04 6,821,000
- ------------------------------------------------------------------------------------------------------------------------
9,100,000 Harris Chemical Corp., Gtd. Sr. Sub. Notes,
10.75%, 10/15/03 8,508,500
- ------------------------------------------------------------------------------------------------------------------------
9,000,000 Huntsman Corp., First Mortgage Notes,
11.00%, 04/15/04 9,832,500
- ------------------------------------------------------------------------------------------------------------------------
10,235,000 Indspec Chemical, Sr. Sub. Disc. Notes,
11.50%, 12/01/03(c) 6,473,637
- ------------------------------------------------------------------------------------------------------------------------
5,000,000 Laroche Industries, Inc., Sr. Sub. Notes,
13.00%, 08/15/04 5,150,000
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
5
<PAGE> 8
FINANCIALS
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MARKET VALUE
<S> <C> <C>
Chemicals-(continued)
$10,000,000 Polymer Group, Inc., Sr. Notes,
12.75%, 07/15/02(a)(Acquired 06/17/94-06/21/94; Cost $10,098,750) $ 10,100,000
- ------------------------------------------------------------------------------------------------------------------------
76,118,137
- ------------------------------------------------------------------------------------------------------------------------
CONGLOMERATES-0.52%
5,000,000 Tjiwi Kimia International Global Co., Gtd. Notes,
13.25%, 08/01/01 5,312,500
- ------------------------------------------------------------------------------------------------------------------------
CONTAINERS-2.90%
10,700,000 Owens-Illinois, Inc., Sr. Deb.,
11.00%, 12/01/03 11,743,250
- ------------------------------------------------------------------------------------------------------------------------
19,750,000 Silgan Holdings Inc., Sr. Disc. Deb.,
13.25%, 12/15/02(c) 18,071,250
- ------------------------------------------------------------------------------------------------------------------------
29,814,500
- ------------------------------------------------------------------------------------------------------------------------
COSMETICS/TOILETRIES-2.22%
33,000,000 Revlon Worldwide, Sr. Secured Disc. Series B Notes,
13.208%, 03/15/98(c) 22,852,500
- ------------------------------------------------------------------------------------------------------------------------
ENERGY (ALTERNATE SOURCES)-1.64%
7,500,000 Kenetech Corp., Sr. Secured Notes,
12.75%, 12/15/02 7,350,000
- ------------------------------------------------------------------------------------------------------------------------
9,000,000 Petroleum Heat & Power, Sub. Deb.,
12.25%, 02/01/05 9,540,000
- ------------------------------------------------------------------------------------------------------------------------
16,890,000
- ------------------------------------------------------------------------------------------------------------------------
FINANCE (ASSET MANAGEMENT)-2.10%
19,500,000 GPA Delaware, Deb.,
8.75%, 12/15/98 16,575,000
- ------------------------------------------------------------------------------------------------------------------------
5,000,000 Indah Kiat International Finance Co., Sr. Secured Notes,
12.50%, 06/15/06 5,050,000
- ------------------------------------------------------------------------------------------------------------------------
21,625,000
- ------------------------------------------------------------------------------------------------------------------------
FINANCE (CONSUMER CREDIT)-1.86%
7,125,000 Grupo Industrial Durango, Sr. Notes,
12.00%, 07/15/01 5,272,500
- ------------------------------------------------------------------------------------------------------------------------
13,500,000 Olympic Financial Ltd., Sr. Notes,
13.00%, 05/01/00 13,837,500
- ------------------------------------------------------------------------------------------------------------------------
19,110,000
- ------------------------------------------------------------------------------------------------------------------------
FINANCE (LEASING COMPANIES)-0.80%
Sea Containers Ltd., Sr. Sub. Deb.,
5,350,000 Series A, 12.50%, 12/01/04 5,831,500
- ------------------------------------------------------------------------------------------------------------------------
2,250,000 Series B, 12.50%, 12/01/04 2,373,750
- ------------------------------------------------------------------------------------------------------------------------
8,205,250
- ------------------------------------------------------------------------------------------------------------------------
FOOD & DRUG-4.96%
11,000,000 Dominick's Finer Foods, Sr. Sub. Notes,
10.875%, 05/01/05(a) (Acquired 04/27/95-06/05/95; Cost $11,101,250) 11,165,000
- ------------------------------------------------------------------------------------------------------------------------
8,525,000 Pathmark Stores, Inc., Sub. Notes,
11.625%, 06/15/02 9,015,187
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
6
<PAGE> 9
FINANCIALS
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MARKET VALUE
<S> <C> <C>
Food & Drug-(continued)
Ralph's Grocery Co., Sr. Notes,
$ 9,500,000 10.45%, 06/15/04 $ 9,500,000
- --------------------------------------------------------------------------------------------------------------------------
2,000,000 11.00%, 06/15/05 1,935,000
- --------------------------------------------------------------------------------------------------------------------------
7,500,000 Star Markets Co., Inc., Sr. Sub. Notes,
13.00%, 11/01/04(a) (Acquired 10/26/94-11/10/94; Cost $7,509,375) 7,425,000
- --------------------------------------------------------------------------------------------------------------------------
Thrifty Payless Inc., Sr. Sub. Notes,
6,000,000 11.75%, 04/15/03 6,330,000
- --------------------------------------------------------------------------------------------------------------------------
5,500,000 12.25%, 04/15/04 5,651,250
- --------------------------------------------------------------------------------------------------------------------------
51,021,437
- --------------------------------------------------------------------------------------------------------------------------
FOOD/PROCESSING-0.91%
8,800,000 Curtice-Burns Foods Inc., Sr. Sub. Notes,
12.25%, 02/01/05 9,328,000
- --------------------------------------------------------------------------------------------------------------------------
GAMING-1.91%
11,000,000 Bally's Grand Inc., First Mortgage Notes,
10.375%, 12/15/03 10,725,000
- --------------------------------------------------------------------------------------------------------------------------
1,940,000 Boyd Gaming, Sr. Sub. Notes,
10.75%, 09/01/03 1,998,200
- --------------------------------------------------------------------------------------------------------------------------
6,700,000 Harrah's Jazz Co., First Morgage Notes,
14.25%, 11/15/01 6,968,000
- --------------------------------------------------------------------------------------------------------------------------
19,691,200
- --------------------------------------------------------------------------------------------------------------------------
GAS DISTRIBUTION-0.50%
5,000,000 TransTexas Gas Corp., Sr. Secured Second Notes,
11.50%, 06/15/02 5,125,000
- --------------------------------------------------------------------------------------------------------------------------
INSURANCE (LIFE & HEALTH)-0.91%
8,970,000 American Life Holding Co., Sr. Sub. Notes,
11.25%, 09/15/04 9,328,800
- --------------------------------------------------------------------------------------------------------------------------
LEISURE & RECREATION-2.01%
8,375,000 Affinity Group, Sr. Sub. Notes,
11.50%, 10/15/03 8,406,406
- --------------------------------------------------------------------------------------------------------------------------
8,000,000 IHF Holdings, Inc., Sr. Sub. Disc. Notes,
15.00%, 11/15/04(a)(c)(d) (Acquired 11/04/94; Cost $3,879,920) 4,800,000
- --------------------------------------------------------------------------------------------------------------------------
7,250,000 Icon Health & Fitness, Sr. Sub. Notes,
13.00%, 07/15/02(a)(e) (Acquired 11/04/94-03/01/95; Cost $7,350,630) 7,503,750
- --------------------------------------------------------------------------------------------------------------------------
20,710,156
- --------------------------------------------------------------------------------------------------------------------------
MACHINERY-2.00%
12,000,000 Calmar Spraying Systems, Sr. Sub. Disc. Notes,
14.00%, 02/15/99 12,240,000
- --------------------------------------------------------------------------------------------------------------------------
8,000,000 Waters Corp., Sr. Sub. Notes,
12.75%, 09/30/04 8,360,000
- --------------------------------------------------------------------------------------------------------------------------
20,600,000
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
7
<PAGE> 10
FINANCIALS
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MARKET VALUE
<S> <C> <C>
MACHINERY (HEAVY)-1.89%
$12,405,000 Interlake Corp., Sr. Sub. Deb.,
12.125%, 03/01/02 $ 12,249,937
- ---------------------------------------------------------------------------------------------------------------------
7,000,000 Primeco Inc., Sr. Sub. Notes,
12.75%, 03/01/05 7,140,000
- ---------------------------------------------------------------------------------------------------------------------
19,389,937
- ---------------------------------------------------------------------------------------------------------------------
MEDICAL INSTRUMENTS/PRODUCTS-0.58%
5,800,000 General Medical Corp., Sr. Sub. Notes,
10.875%, 08/15/03 5,959,500
- ---------------------------------------------------------------------------------------------------------------------
MEDICAL SERVICES-3.31%
10,000,000 National Medical Enterprises Inc., Sr. Sub. Notes,
10.125%, 03/01/05 10,562,500
- ---------------------------------------------------------------------------------------------------------------------
OrNda Healthcorp, Sr. Sub. Notes,
4,500,000 12.25%, 05/15/02 4,983,750
- ---------------------------------------------------------------------------------------------------------------------
5,250,000 11.375%, 08/15/04 5,735,625
- ---------------------------------------------------------------------------------------------------------------------
8,285,000 Quorum Health Group, Sr. Sub. Notes,
11.875%, 12/15/02 9,072,075
- ---------------------------------------------------------------------------------------------------------------------
4,000,000 Total Renal Care, Sr. Sub. Disc. Notes,
12.00%, 08/15/04(c)(f) 3,640,000
- ---------------------------------------------------------------------------------------------------------------------
33,993,950
- ---------------------------------------------------------------------------------------------------------------------
METALS-2.60%
5,250,000 GS Technologies Operation Co., Gtd. Sr. Notes,
12.00%, 09/01/04 5,171,250
- ---------------------------------------------------------------------------------------------------------------------
9,500,000 Kaiser Aluminum, Sr. Sub. Notes,
12.75%, 02/01/03 10,212,500
- ---------------------------------------------------------------------------------------------------------------------
10,500,000 UCAR Global Enterprises Inc., Sr. Sub. Notes,
12.00%, 01/15/05(a) (Acquired 01/20/95-02/14/95; cost $10,733,750) 11,313,750
- ---------------------------------------------------------------------------------------------------------------------
26,697,500
- ---------------------------------------------------------------------------------------------------------------------
OIL EQUIPMENT & SUPPLIES-0.50%
5,055,000 Energy Ventures, Inc., Sr. Notes,
10.25%, 03/15/04 5,181,375
- ---------------------------------------------------------------------------------------------------------------------
PAPER & FOREST PRODUCTS-3.93%
11,000,000 Repap New Brunswick, Second Priority Sr. Secured Notes,
10.625%, 04/15/05 11,110,000
- ---------------------------------------------------------------------------------------------------------------------
8,000,000 S.D. Warren Co., Sr. Sub. Notes,
12.00%, 12/15/04 8,620,000
- ---------------------------------------------------------------------------------------------------------------------
9,000,000 Stone Container Corp., First Mortgage Notes,
10.75%, 10/02/02 9,427,500
- ---------------------------------------------------------------------------------------------------------------------
11,000,000 United Stationer Supply, Sr. Sub. Notes,
12.75%, 05/01/05(a) (Acquired 04/26/95; Cost $11,000,000) 11,220,000
- ---------------------------------------------------------------------------------------------------------------------
40,377,500
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
8
<PAGE> 11
FINANCIALS
<TABLE>
<CAPTION>
PRINCIPAL -
AMOUNT MARKET VALUE
<S> <C> <C>
POLLUTION CONTROL-1.76%
$ 9,500,000 Allied Waste Industries, Inc., Sr. Sub. Notes,
12.00%, 02/01/04 $ 9,903,750
- ----------------------------------------------------------------------------------------------------------------------
8,000,000 Mid-American Waste Systems, Inc., Sr. Sub. Notes,
12.25%, 02/15/03 8,180,000
- ----------------------------------------------------------------------------------------------------------------------
18,083,750
- ----------------------------------------------------------------------------------------------------------------------
PUBLISHING-2.89%
13,826,000 Affiliated Newspaper Investments Inc., Sr. Disc. Notes,
13.25%, 07/01/06(c) 8,226,470
- ----------------------------------------------------------------------------------------------------------------------
8,500,000 Garden State Newspapers, Sr. Sub. Notes,
12.00%, 07/01/04 8,500,000
- ----------------------------------------------------------------------------------------------------------------------
3,500,000 K-III Communications Corp., Sr. Notes,
10.25%, 06/01/04 3,675,000
- ----------------------------------------------------------------------------------------------------------------------
8,810,000 K-III Communications Corp., Sr. Secured Notes,
10.625%, 05/01/02 9,338,600
- ----------------------------------------------------------------------------------------------------------------------
29,740,070
- ----------------------------------------------------------------------------------------------------------------------
RESTAURANTS-1.14%
15,000,000 Flagstar Corp., Sr. Sub. Notes,
11.25%, 11/01/04 11,700,000
- ----------------------------------------------------------------------------------------------------------------------
RETAIL (STORES)-0.97%
9,500,000 Fleming Co. Inc., Sr. Notes,
10.625%, 12/15/01 9,998,750
- ----------------------------------------------------------------------------------------------------------------------
SECURITY (SAFETY SERVICES)-0.44%
4,500,000 Cabot Safety, Sr. Sub. Notes,
12.50%, 07/15/05(a) (Acquired 06/29/95; Cost $4,500,000) 4,545,000
- ----------------------------------------------------------------------------------------------------------------------
STEEL-0.37%
3,925,000 Earle Jorgensen Co., Sr. Notes,
10.75%, 03/01/00 3,768,000
- ----------------------------------------------------------------------------------------------------------------------
TELECOMMUNICATIONS-9.93%
8,000,000 Celcaribe S.A., Sr. Secured Notes,
13.50%, 03/15/04(a)(c)(g) (Acquired 05/17/94-05/26/94; Cost $6,429,128) 6,800,000
- ----------------------------------------------------------------------------------------------------------------------
16,000,000 Cellular Inc., Sr. Sub. Disc. Notes,
11.75%, 09/01/03(c) 11,840,000
- ----------------------------------------------------------------------------------------------------------------------
10,000,000 Centennial Cellular, Sr. Notes,
10.125%, 05/15/05 9,925,000
- ----------------------------------------------------------------------------------------------------------------------
18,200,000 Horizon Cellular Telephone, Sr. Sub. Disc. Notes,
11.375%, 10/01/00(c) 14,287,000
- ----------------------------------------------------------------------------------------------------------------------
21,235,000 In-Flight Phone Corp., Sr. Disc. Notes,
14.00%, 05/15/02(a)(c)(h) (Acquired 04/28/95-05/22/95; Cost $14,065,618) 12,528,650
- ----------------------------------------------------------------------------------------------------------------------
8,720,000 MobileMedia Communications, Inc., Sr. Sub. Notes,
10.50%, 12/01/03(c) 5,798,800
- ----------------------------------------------------------------------------------------------------------------------
12,000,000 PriCellular Wireless Corp., Sr. Disc. Notes,
14.00%, 11/15/01 9,660,000
- ----------------------------------------------------------------------------------------------------------------------
11,555,000 Rogers Cantel Mobile Inc., Sr. Gtd. Secured Notes,
10.75%, 11/01/01 11,959,428
- ----------------------------------------------------------------------------------------------------------------------
</TABLE>
9
<PAGE> 12
FINANCIALS
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MARKET VALUE
<S> <C> <C>
Telecommunications-(continued)
$ 8,500,000 Telex Communications, Inc., Sr. Notes,
12.00%, 07/15/04 $ 8,627,500
- ----------------------------------------------------------------------------------------------------------------------
12,000,000 USA Mobile Communications, Sr. Notes,
9.50%, 02/01/04 10,560,000
- ----------------------------------------------------------------------------------------------------------------------
101,986,378
- ----------------------------------------------------------------------------------------------------------------------
TEXTILES-4.15%
10,465,000 Dan River Inc., Sr. Sub. Notes,
10.125%, 12/15/03 10,360,350
- ----------------------------------------------------------------------------------------------------------------------
16,000,000 Ivex Holdings Corp., Disc. Series B Deb.,
13.25%, 03/15/05(c) 8,640,000
- ----------------------------------------------------------------------------------------------------------------------
6,500,000 Ivex Packaging Corp, Sr. Sub. Notes,
12.50%, 12/15/02 6,987,500
- ----------------------------------------------------------------------------------------------------------------------
8,400,000 Synthetic Industries Inc., Sr. Sub. Deb.,
12.75%, 12/01/02 8,484,000
- ----------------------------------------------------------------------------------------------------------------------
8,000,000 Tultex Corp., Sr. Gtd. Notes,
10.625%, 03/15/05 8,160,000
- ----------------------------------------------------------------------------------------------------------------------
42,631,850
- ----------------------------------------------------------------------------------------------------------------------
TRANSPORTATION-0.71%
7,000,000 Dade International Inc., Sr. Sub. Notes,
13.00%, 02/01/05(a) (Acquired 12/09/94-03/29/95; Cost $7,030,000) 7,350,000
- ----------------------------------------------------------------------------------------------------------------------
UTILITIES-0.45%
4,501,000 Southeastern Public Services, Sr. Sub. Deb.,
11.875%, 02/01/98 4,624,777
- ----------------------------------------------------------------------------------------------------------------------
Total Non-Convertible Bonds & Notes 931,709,691
- ----------------------------------------------------------------------------------------------------------------------
<CAPTION>
SHARES
<S> <C> <C>
COMMON STOCKS-0.23%
AUTOMOBILE/TRUCKS PARTS & TIRES-0.16%
72,600 Lear Seating Corp.(i) 1,660,725
- ----------------------------------------------------------------------------------------------------------------------
FOOD & DRUG-0.04%
123,500 Thrifty Payless Holdings-Class C(i) 432,250
- ----------------------------------------------------------------------------------------------------------------------
PUBLISHING-0.03%
13,826 Affiliated Newspaper Investments Inc.(i) 276,520
- ----------------------------------------------------------------------------------------------------------------------
Total Common Stocks 2,369,495
- ----------------------------------------------------------------------------------------------------------------------
<CAPTION>
PRINCIPAL
AMOUNT
<S> <C> <C>
REPURCHASE AGREEMENT(j)-6.09%
$62,630,946 Daiwa Securities America Inc.,
6.20%, 07/03/95(k) 62,630,946
- ----------------------------------------------------------------------------------------------------------------------
Total Repurchase Agreement 62,630,946
- ----------------------------------------------------------------------------------------------------------------------
</TABLE>
10
<PAGE> 13
FINANCIALS
<TABLE>
<CAPTION>
SHARES MARKET VALUE
<S> <C> <C>
WARRANTS-0.01%
BUILDING MATERIALS-0.00%
3,000 Payless Cashways, Inc., expiring 11/01/96(i) $ 939
- ---------------------------------------------------------------------------------------------------------------------
CHEMICALS-0.01%
6,000 Berry Plastics Holdings, expiring 04/15/04(i) 75,000
- ---------------------------------------------------------------------------------------------------------------------
Total Warrants 75,939
- ---------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS -- 96.93% 996,786,071
- ---------------------------------------------------------------------------------------------------------------------
OTHER ASSETS LESS LIABLILITIES -- 3.07% 31,572,073
- ---------------------------------------------------------------------------------------------------------------------
NET ASSETS -- 100.00% $1,028,358,144
=====================================================================================================================
</TABLE>
Notes to Schedule of Investments:
(a) Restricted security. May be resold to qualified institutional buyers in
accordance with the provisions of Rule 144A under the Securities Act of
1933, as amended. The valuation of these securities has been determined in
accordance with procedures established by the Board of Trustees. The
aggregate market value of these securities at June 30, 1995 was
$125,139,900, which represented 12.17% of the Fund's net assets.
(b) Issued as a unit. This unit also includes 27,000 warrants to purchase
57.7721 shares of common stock at $0.01 per share per warrant.
(c) Discounted bond at purchase. Interest rate shown represents coupon rate
at which the bond will accrue at a specified future date.
(d) Issued as a unit. This unit also includes 8,000 warrants to purchase
0.64673 shares of Class L common stock at $0.01 per share per warrant and
6.4673 shares of Class A common stock at $0.01 per share per warrant.
(e) Issued as a unit. This unit also includes 4 warrants to purchase 0.19753
shares of Class L common stock and 1.9753 shares of Class A common stock
per warrant.
(f) Issued as a unit. This unit also includes 36 Class B common shares.
(g) Issued as a unit. This unit also includes 1,300,800 Celcaribe Ordinary
Trust Certificates.
(h) Issued as a unit. This unit also includes 21,235 warrants to purchase one
share of common stock per share per warrant.
(i) Non-income producing security.
(j) 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 percent 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.
(k) 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.
Abbreviations:
Deb. - Debentures
Disc. - Discounted
Gtd. - Guaranteed
Sr. - Senior
Sub. - Subordinated
See Notes to Financial Statements.
11
<PAGE> 14
FINANCIALS
STATEMENT OF ASSETS AND LIABILITIES
June 30, 1995
(Unaudited)
<TABLE>
<S> <C>
ASSETS:
Investments, at market value (cost $984,807,828) $ 996,786,071
- -----------------------------------------------------------------------------------------
Receivables for:
Investments sold 11,794,375
- -----------------------------------------------------------------------------------------
Fund shares sold 8,534,214
- -----------------------------------------------------------------------------------------
Interest 21,989,092
- -----------------------------------------------------------------------------------------
Investment for deferred compensation plan 28,809
- -----------------------------------------------------------------------------------------
Other assets 40,180
- -----------------------------------------------------------------------------------------
Total assets 1,039,172,741
- -----------------------------------------------------------------------------------------
LIABILITIES:
Payables for:
Investments purchased 4,500,000
- -----------------------------------------------------------------------------------------
Fund shares reacquired 1,398,507
- -----------------------------------------------------------------------------------------
Dividends 3,625,398
- -----------------------------------------------------------------------------------------
Deferred compensation plan 28,809
- -----------------------------------------------------------------------------------------
Accrued advisory fees 450,877
- -----------------------------------------------------------------------------------------
Accrued administrative services fees 7,091
- -----------------------------------------------------------------------------------------
Accrued distribution fees 662,961
- -----------------------------------------------------------------------------------------
Accrued trustees' fees 2,095
- -----------------------------------------------------------------------------------------
Accrued transfer agent fees 53,397
- -----------------------------------------------------------------------------------------
Accrued operating expenses 85,462
- -----------------------------------------------------------------------------------------
Total liabilities 10,814,597
- -----------------------------------------------------------------------------------------
Net assets applicable to shares outstanding $1,028,358,144
=========================================================================================
NET ASSETS:
Class A $ 703,527,835
=========================================================================================
Class B $ 324,830,309
=========================================================================================
SHARES OUTSTANDING, $0.01 PAR VALUE PER SHARE:
Class A 75,107,354
=========================================================================================
Class B 34,702,922
=========================================================================================
Class A:
Net asset value and redemption price per share $ 9.37
=========================================================================================
Offering price per share:
(Net asset value of $9.37 divided by 95.25%) $ 9.84
=========================================================================================
Class B:
Net asset value and offering price per share $ 9.36
=========================================================================================
</TABLE>
See Notes to Financial Statements.
12
<PAGE> 15
FINANCIALS
STATEMENT OF OPERATIONS
For the six months ended June 30, 1995
(Unaudited)
<TABLE>
<S> <C>
INVESTMENT INCOME:
Interest $50,718,289
- ----------------------------------------------------------------------------------------
EXPENSES:
Advisory fees 2,444,267
- ----------------------------------------------------------------------------------------
Custodian fees 39,753
- ----------------------------------------------------------------------------------------
Transfer agent fees -- Class A 317,986
- ----------------------------------------------------------------------------------------
Transfer agent fees -- Class B 229,684
- ----------------------------------------------------------------------------------------
Administrative services fees 41,886
- ----------------------------------------------------------------------------------------
Trustees' fees 4,796
- ----------------------------------------------------------------------------------------
Distribution fees -- Class A 805,107
- ----------------------------------------------------------------------------------------
Distribution fees -- Class B 1,271,394
- ----------------------------------------------------------------------------------------
Other 171,551
- ----------------------------------------------------------------------------------------
Total expenses 5,326,424
- ----------------------------------------------------------------------------------------
Net investment income 45,391,865
- ----------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN ON INVESTMENT SECURITIES:
Net realized gain on sales of investment securities 2,402,264
- ----------------------------------------------------------------------------------------
Unrealized appreciation of investment securities 39,476,893
- ----------------------------------------------------------------------------------------
Net gain on investment securities 41,879,157
- ----------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $87,271,022
========================================================================================
</TABLE>
See Notes to Financial Statements.
13
<PAGE> 16
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 $ 45,391,865 $ 69,124,221
- -------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) on sales of investment securities 2,402,264 (26,898,895)
- -------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) of investment securities 39,476,893 (57,089,748)
- -------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from operations 87,271,022 (14,864,422)
- -------------------------------------------------------------------------------------------------------------------
Distributions to shareholders from net investment income:
Class A (33,384,439) (58,337,288)
- -------------------------------------------------------------------------------------------------------------------
Class B (11,944,834) (10,971,364)
- -------------------------------------------------------------------------------------------------------------------
Distributions in excess of net investment income:
Class A -- (91,900)
- -------------------------------------------------------------------------------------------------------------------
Class B -- (16,331)
- -------------------------------------------------------------------------------------------------------------------
Share transactions-net:
Class A 93,983,791 97,407,253
- -------------------------------------------------------------------------------------------------------------------
Class B 122,135,345 175,148,092
- -------------------------------------------------------------------------------------------------------------------
Net increase in net assets 258,060,885 188,274,040
- -------------------------------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 770,297,259 582,023,219
- -------------------------------------------------------------------------------------------------------------------
End of period $1,028,358,144 $770,297,259
===================================================================================================================
NET ASSETS CONSIST OF:
Shares of beneficial interest $1,104,693,723 $888,574,587
- -------------------------------------------------------------------------------------------------------------------
Undistributed net investment income 1,011,897 949,305
- -------------------------------------------------------------------------------------------------------------------
Undistributed net realized gain (loss) on sales of investment securities (89,325,719) (91,727,983)
- -------------------------------------------------------------------------------------------------------------------
Unrealized appreciation (depreciation) of investment securities 11,978,243 (27,498,650)
- -------------------------------------------------------------------------------------------------------------------
$1,028,358,144 $770,297,259
===================================================================================================================
</TABLE>
See Notes to Financial Statements.
14
<PAGE> 17
FINANCIALS
NOTES TO FINANCIAL STATEMENTS
June 30, 1995
(Unaudited)
NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES
AIM High Yield 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 are voted on exclusively by the shareholders of such
portfolio or class. The assets, liabilities and operations of each portfolio are
accounted for separately. Information presented in these financial statements
pertains only to the Fund. The Fund invests primarily in high yield bonds. These
bonds may involve special risks in addition to the risks associated with
investment in higher rated debt securities. High yield bonds may be more
susceptible to real or perceived adverse economic and competitive industry
conditions than higher grade bonds. Also, the secondary market in which high
yield bonds are traded may be less liquid than the market for higher grade
bonds. The following is a summary of significant accounting policies followed by
the Fund in the preparation of its financial statements.
A. Security Valuations - Non-convertible bonds and notes are valued on the basis
of prices provided by an independent pricing service. Prices provided by the
pricing service may be determined without exclusive reliance on quoted
prices, and may reflect appropriate factors such as institution-size trading
in similar groups of securities, developments related to special securities,
yield, quality, coupon rate, maturity, type of issue, individual trading
characteristics and other market data. Investment securities for which prices
are not provided by the pricing service and which are listed or traded on an
exchange are valued at the last sales price on the exchange where principally
traded or, lacking any sales on a particular day, at the mean between the
closing bid and asked prices on that day unless the Board of Trustees, or
persons designated by the Board of Trustees, determines that the
over-the-counter quotations more closely reflect the current market value of
the security. Securities traded in the over-the-counter market, except (i)
securities priced by the pricing service, (ii) securities for which
representative exchange prices are available, and (iii) securities reported
in the NASDAQ National Market System, are valued at the mean between
representative last bid and asked prices obtained from an electronic
quotation reporting system, if such prices are available, or from established
market makers. Each security reported in 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 and "restricted securities" are
valued at fair value as determined in good faith by or under the supervision
of the Trust's officers in accordance with methods which are 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.
B. 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 is recorded on the
ex-dividend date. It is the policy of the Fund to declare daily dividends
from net investment income. Such dividends are paid monthly. Distributions
from net realized capital gains, if any, are recorded on ex-dividend date and
are paid annually subject to restrictions noted in section "C" below.
C. Federal Income Taxes - The Fund intends to comply with the requirements of
the Internal Revenue Code necessary to qualify as a regulated investment
company and, as such, will not be subject to federal income taxes on
otherwise taxable income (including net realized capital gains) which is
distributed to shareholders. Therefore, no provision for federal income taxes
is recorded in the financial statements. The Fund has a capital loss
carryforward of $76,729,687 (which may be carried forward to offset future
taxable capital gains, if any) which expires, if not previously utilized,
through the year 2002.
15
<PAGE> 18
FINANCIALS
NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES (continued)
D. 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 0.625% of
the first $200 million of the Fund's average daily net assets, plus 0.55% of the
Fund's average daily net assets in excess of $200 million to and including $500
million, plus 0.50% of the Fund's average daily net assets in excess of $500
million to and including $1 billion, plus 0.45% of the Fund's average daily net
assets in excess of $1 billion. Under the terms of a sub-advisory agreement
between AIM and CIGNA Investments, Inc. ("CII"), AIM pays CII 0.15% of the first
$300 million of the Fund's average daily net assets, plus 0.10% of the Fund's
average daily net assets in excess of $300 million. The advisory 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 $41,886 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, the Fund paid
AFS $314,341 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 the 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 $805,107 and $1,271,394, respectively, as
compensation under the Plans.
AIM Distributors received commissions of $531,547 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 $318,608 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 $8,004
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.
16
<PAGE> 19
FINANCIALS
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.
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
$363,963,882 and $219,543,762, 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 $ 30,118,047
- -----------------------------------------------------------------------------------------------------------------
Aggregate unrealized (depreciation) of investment securities (18,139,804)
- -----------------------------------------------------------------------------------------------------------------
Net unrealized appreciation of investment securities $ 11,978,243
=================================================================================================================
</TABLE>
Investments have the same cost for tax and financial statement purposes.
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 18,543,183 $170,722,863 25,855,410 $ 248,478,420
- --------------------------------------------------------- ----------------------------- ------------------------------
Class B 16,110,449 148,627,245 23,795,476 226,709,226
- --------------------------------------------------------- ----------------------------- ------------------------------
Issued as reinvestment of dividends:
Class A 2,279,318 21,052,588 3,794,971 35,880,387
- --------------------------------------------------------- ----------------------------- ------------------------------
Class B 582,226 5,381,092 470,871 4,424,592
- --------------------------------------------------------- ----------------------------- ------------------------------
Reacquired:
Class A (10,577,543) (97,791,660) (19,578,260) (186,951,554)
- --------------------------------------------------------- ----------------------------- ------------------------------
Class B (3,438,337) (31,872,992) (5,930,666) (55,985,726)
- --------------------------------------------------------- ----------------------------- ------------------------------
23,499,296 $216,119,136 28,407,802 $ 272,555,345
========================================================= ============================ =============================
</TABLE>
17
<PAGE> 20
FINANCIALS
NOTE 6 - 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 September 1, 1993 (date sales commenced) through December 31, 1993.
<TABLE>
<CAPTION>
DECEMBER 31,
JUNE 30, ------------------------------------------------------------
1995 1994 1993 1992(a) 1991 1990
-------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
CLASS A:
Net asset value, beginning of period $ 8.93 $ 10.05 $ 9.40 $ 8.86 $ 7.07 $ 8.94
- -------------------------------------------- -------- -------- -------- -------- -------- --------
Income from investment operations:
Net investment income 0.47 0.96 0.97 1.04 1.02 1.09
- -------------------------------------------- -------- -------- -------- -------- -------- --------
Net gains (losses) on securities (both
realized and unrealized) 0.44 (1.12) 0.69 0.55 1.81 (1.84)
- -------------------------------------------- -------- -------- -------- -------- -------- --------
Total from investment operations 0.91 (0.16) 1.66 1.59 2.83 (0.75)
- -------------------------------------------- -------- -------- -------- -------- -------- --------
Less distributions:
Dividends from net investment income (0.47) (0.96) (1.01) (1.05) (1.04) (1.12)
- -------------------------------------------- -------- -------- -------- -------- -------- --------
Net asset value, end of period $ 9.37 $ 8.93 $ 10.05 $ 9.40 $ 8.86 $ 7.07
============================================ ======== ======== ======== ======== ======== ========
Total return(b) 10.43% (1.67)% 18.40% 18.60% 42.18% (9.03)%
============================================ ======== ======== ======== ======== ======== ========
Ratios/supplemental data:
Net assets, end of period (000s omitted) $703,528 $578,959 $550,760 $324,518 $259,677 $204,932
============================================ ======== ======== ======== ======== ======== ========
Ratio of expenses to average net assets 0.95%(c) 1.00% 1.12% 1.15% 1.22% 1.21%(d)
============================================ ======== ======== ======== ======== ======== ========
Ratio of net investment income to average
net assets 10.34%(c) 10.07% 9.82% 11.00% 12.67% 13.59%(e)
============================================ ======== ======== ======== ======== ======== ========
Portfolio turnover rate 26% 53% 53% 56% 61% 27%
============================================ ======== ======== ======== ======== ======== ========
<CAPTION>
DECEMBER 31,
-----------------------------------------------
1989 1988 1987 1986
-------- -------- -------- --------
<S> <C> <C> <C> <C>
CLASS A:
Net asset value, beginning of period $ 10.01 $ 9.67 $ 10.54 $ 10.21
- -------------------------------------------- -------- -------- -------- --------
Income from investment operations:
Net investment income 1.21 1.18 1.16 1.26
- -------------------------------------------- -------- -------- -------- --------
Net gains (losses) on securities (both
realized and unrealized) (1.07) 0.34 (0.83) 0.31
- -------------------------------------------- -------- -------- -------- --------
Total from investment operations 0.14 1.52 0.33 1.57
- -------------------------------------------- -------- -------- -------- --------
Less distributions:
Dividends from net investment income (1.21) (1.18) (1.20) (1.24)
- -------------------------------------------- -------- -------- -------- --------
Net asset value, end of period $ 8.94 $ 10.01 $ 9.67 $ 10.54
============================================ ======== ======== ======== ========
Total return(b) 1.18% 16.41% 3.07% 15.97%
============================================ ======== ======== ======== ========
Ratios/supplemental data:
Net assets, end of period (000s omitted) $261,920 $274,631 $242,858 $246,865
============================================ ======== ======== ======== ========
Ratio of expenses to average net assets 0.99% 0.96%(d) 0.92% 0.92%
============================================ ======== ======== ======== ========
Ratio of net investment income to average
net assets 12.40% 11.84%(e) 11.21% 11.84%
============================================ ======== ======== ======== ========
Portfolio turnover rate 36% 76% 81% 86%
============================================ ======== ======== ======== ========
</TABLE>
(a) The Fund changed investment advisors on June 30, 1992.
(b) Total returns do not deduct sales charges and are not annualized for periods
less than one year.
(c) Ratios are annualized and based on average net assets of $649,423,367.
(d) Ratios of expenses to average net assets prior to reduction of advisory fees
were 1.22% and 1.00% for years 1990 and 1988, respectively.
(e) Ratios of net investment income to average net assets prior to reduction of
advisory fees were 13.58% and 11.80% for years 1990 and 1988, respectively.
18
<PAGE> 21
FINANCIALS
NOTE 6 - FINANCIAL HIGHLIGHTS (continued)
<TABLE>
<CAPTION>
DECEMBER 31,
JUNE 30, ---------------------
1995 1994 1993
-------- -------- -------
<S> <C> <C> <C>
CLASS B:
Net asset value, beginning of period $ 8.92 $ 10.04 $ 9.96
- -------------------------------------------------------------------------------- -------- -------- -------
Income from investment operations:
Net investment income 0.44 0.87 0.32
- -------------------------------------------------------------------------------- -------- -------- -------
Net gains (losses) on securities (both realized and unrealized) 0.44 (1.10) 0.07
- -------------------------------------------------------------------------------- -------- -------- -------
Total from investment operations 0.88 (0.23) 0.39
- -------------------------------------------------------------------------------- -------- -------- -------
Less distributions:
Dividends from net investment income (0.44) (0.89) (0.31)
- -------------------------------------------------------------------------------- -------- -------- -------
Net asset value, end of period $ 9.36 $ 8.92 $ 10.04
================================================================================ ======== ======== =======
Total return(a) 9.98%(b) (2.48)% 4.00%(b)
================================================================================ ======== ======== =======
Ratios/supplemental data:
Net assets, end of period (000s omitted) $324,830 $191,338 $31,264
================================================================================ ======== ======== =======
Ratio of expenses to average net assets 1.78%(c) 1.80% 1.93%(d)
================================================================================ ======== ======== =======
Ratio of net investment income to average net assets 9.51%(c) 9.27% 8.99%(d)
================================================================================ ======== ======== =======
Portfolio turnover rate 26% 53% 53%
================================================================================ ======== ======== =======
</TABLE>
(a) Does not deduct contingent deferred sales charges.
(b) Total return is not annualized.
(c) Ratios are annualized and based on average net assets of $256,386,079.
(d) Annualized.
19
<PAGE> 22
This page intentionally left blank.
20
<PAGE> 23
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 ADVISOR
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 INVESTMENT SUB-ADVISOR
Carl Frischling Vice President and Secretary
Partner CIGNA Investments, Inc.
Kramer, Levin, Naftalis, Nessen, Dana R. Sutton 900 Cottage Grove Road
Kamin & Frankel Vice President Bloomfield, CT 06002
and Assistant Treasurer
Robert H. Graham
President Robert G. Alley TRANSFER AGENT
A I M Management Group Inc. Vice President
A I M Fund Services, Inc.
John F. Kroeger Stuart W. Coco P.O. Box 4739
Formerly, Consultant Vice President Houston, TX 77210-4739
Wendell & Stockel Associates, Inc.
Melville B. Cox
Lewis F. Pennock Vice President CUSTODIAN
Attorney
Karen Dunn Kelley State Street Bank & Trust Co.
Ian W. Robinson Vice President 225 Franklin Street
Consultant; Former Executive Boston, MA 02110
Vice President and Jonathan C. Schoolar
Chief Financial Officer Vice President
Bell Atlantic Management COUNSEL TO THE FUND
Services, Inc. P. Michelle Grace
Assistant Secretary Ballard Spahr
Louis S. Sklar Andrews & Ingersoll
Executive Vice President Nancy L. Martin 1735 Market Street
Hines Interests Assistant Secretary Philadelphia, PA 19103
Limited Partnership
Ofelia M. Mayo
Assistant Secretary COUNSEL TO THE TRUSTEES
Kathleen J. Pflueger Kramer, Levin, Naftalis,
Assistant Secretary Nessen, Kamin & Frankel
919 Third Avenue
Samuel D. Sirko New York, NY 10022
Assistant Secretary
Stephen I. Winer DISTRIBUTOR
Assistant Secretary
A I M Distributors, Inc.
Mary J. Benson 11 Greenway Plaza
Assistant Treasurer Suite 1919
Houston, TX 77046
</TABLE>
This report may be distributed only to current shareholders or to persons who
have received a current prospectus of the Fund.
21
<PAGE> 24
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.
