<PAGE> 1
[AIM LOGO APPEARS HERE]
[GRAPHIC COLLAGE APPEARS HERE]
AIM GROWTH FUND
SEMIANNUAL REPORT
JUNE 30, 1995
<PAGE> 2
AIM GROWTH FUND
For shareholders who seek growth of capital by investing in a portfolio
consisting primarily of the common stocks of established medium- and
large-size companies with prospects for above-average, long-term
earnings growth.
ABOUT FUND PERFORMANCE DATA THROUGHOUT THIS REPORT:
o AIM Growth Fund's performance figures are historical and reflect
reinvestment of all distributions and changes in net asset value. Unless
otherwise indicated, the Fund's performance is computed without a sales
charge.
o 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 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 Standard & Poor's Corporation (S&P) is a credit-rating agency. The
unmanaged Standard & Poor's Composite Index of 500 Stocks (S&P 500) is
widely regarded by investors as representative of the stock market in
general. The unmanaged S&P MidCap index is generally representative of
the performance of the stocks of midsize-capitalization companies.
The unmanaged Russell 2000 Index is generally representative of the
performance of the stocks of small-capitalization companies. Lipper
Analytical Services, Inc., is an independent mutual fund performance
monitor. The unmanaged Lipper Growth Fund Index represents an average of
the performance of the 30 largest growth mutual funds.
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 RETURNS
For periods ended June 30, 1995
<TABLE>
<CAPTION>
Without With
Sales Charge Sales Charge
------------ ------------
<S> <C> <C>
CLASS A SHARES
10 Years 11.23% 10.60%
5 Years 7.80 6.59
1 Year 32.03 24.82
6 Months 23.26 16.48
CLASS B SHARES
Inception (9/1/93) 7.60% 5.58%
1 Year 30.79 25.79
6 Months 22.63 17.63
</TABLE>
The Fund paid no distributions during the six months ended June 30, 1995.
- --------------------------------------------------------------------------------
<PAGE> 3
CHAIRMAN'S LETTER
Dear Shareholder:
Following a dramatic record-breaking rise in stock values,
including the best quarterly performance for stocks in 2 1/2
[PHOTO of years, AIM Growth Fund closed the six months ended June 30,
Charles T. Bauer, 1995, with an impressive total return of 23.26% for Class A
Chairman of shares, and 22.63% for Class B shares.
the Board of The Fund's performance eclipsed even the impressive
the Fund, 20.15% total return logged during the reporting period by
APPEARS HERE] the Standard & Poor's Composite Index of 500 Stocks (S&P0
500), widely regarded by investors as representative of the
stock market in general.
Even within a strong market, skilled investment management was still
the distinguishing factor among stock funds. The Wall Street Journal reported
that only 300 of the 2,383 stock funds tracked by Lipper Analytical Services,
Inc., managed to outperform the S&P 500 during the first six months of
1995--AIM Growth Fund was one of those 300 funds.
The Fund's strong performance contributed to an increase of almost 40%
in net assets to $225.5 million during the six months ended June 30, 1995. Net
asset value per Class A share increased to $12.72 from $10.32. Class B shares
increased to $12.52 from $10.21 per share.
AIM Growth Fund has achieved positive total returns in eight of the
last 10 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, total assets under AIM's
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 addition of more than 320,000 shareholder accounts during the
period.
We appreciate your continued confidence in AIM Growth 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 Growth Fund
was one of
only 300 funds
to outperform
the S&P 500 in the
first six months
of 1995.
-----------
RECORD-BREAKING PERFORMANCE FOR STOCKS IN 1995
Following 1994, when stocks posted flat to negative returns and bonds had one
of their worst years on record, investors were more than ready for good news.
It came in the form of positive 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 the economy 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 stocks. Heartened investors relaxed the
inflation vigil and drove up stocks to extraordinary levels. The historical
return on stocks, as represented by the S&P 500 over the last 70 years, has
been about 10% per year according to Ibbotson Associates. In the first six
months of 1995, stocks delivered twice that average with a total return of
20.15%.
During most of the reporting period, technology issues--particularly
in semiconductors, computers, and software company sectors--led the market
advance, followed by financial services companies such as banks, securities
firms, and insurance companies.
During the second quarter of 1995, economic growth dropped to an
annual rate of less than 1%. 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.
By June 30, 1995, the S&P 500 stock index had posted a one-year total
return, including reinvested dividends, of 25.99%, outperforming roughly
two-thirds of all stock funds. Of course, as an index, the S&P 500 lacks
operating expenses and trading costs, but the superior performance of the index
this year can be attributed to its emphasis on stocks of larger corporations,
which outperformed stocks of midsize and smaller companies stocks for most of
the first six months of 1995. Midsize and smaller company stocks are
represented by the S&P MidCap index and the Russell 2000 Index, respectively.
The 12-month total return for the average stock fund was 21.88% as of June 30,
1995, according to Lipper. Growth stock funds fared a little better with a
22.26% 12-month return over the same period as measured by the Lipper Growth
Fund Index.
AIM Growth Fund produced decisive one-year total returns of 32.03% and
30.79% on Class A and Class B shares, respectively, as of June 30, 1995.
YOUR INVESTMENT PORTFOLIO
A strong emphasis on selected technology stocks--about 50% of the portfolio as
of June 30, 1995--drove up the value of shares in AIM Growth Fund.
Expanding market penetration and product innovations propelled many
technology stocks to unprecedented levels. The Fund emphasized market leaders
such as Intel Corp., Microsoft Corp., COMPAQ Computer Corp., and International
Business Machines Corp., as well as strong, albeit lesser known companies
exhibiting phenomenal growth potential in domestic and growing over-seas
markets.
Semiconductor chip maker Altera Corp. credited its recently reported
96% increase in quarterly sales to solid growth in demand from Europe and
Japan. The Fund's stocks in Applied Materials, Inc., LSI Logic Corp., and
Cypress Semiconductor Corp., also benefited from the increase in global
bookings by roughly 40% in the first six months of 1995.
LAM Research Corp. announced a breakthrough in thermal processing of
================================================================================
TOP 10 EQUITY HOLDINGS
(as of 6/30/95)
1. Applied Materials, Inc.
2. Micron Technology Inc.
3. LSI Logic Corp.
4. Teradyne, Inc.
5. Atmel Corp.
6. Texas Instruments Inc.
7. Intel Corp.
8. Nokia Corp.
9. LAM Research Corp.
10. Sun Microsystems Inc.
See important Fund disclosure on inside front cover.
2
<PAGE> 5
================================================================================
THE FUTURE OF TECHNOLOGY
<TABLE>
<S> <C> <C>
Technology stocks, driven by powerful dollars) gross domestic product, and company-by-company basis, rather than
earnings to push the averages higher that number is expected to increase focus on individual industry sectors.
almost single-handedly, have gained to 20% of a $6.2 trillion economy by Our fund management teams let the
more than 30% in the first six months the year 2000. Further, compared to a earnings of companies take us
of 1995, with semiconductors alone up 55% computer penetration of the into--and out of--stocks chosen for
a sizzling 94%. As these companies marketplace in the U.S., Europe has our fund portfolios. This exclusive
continue to grow, analysts believe only 25% penetration, with 20% in emphasis on companies generating
the best news is still ahead for this Japan and less than 1% in China. accelerating earnings maximizes the
powerful sector over the long term. (Source: Money, July 1995) potential for portfolio growth.
Consider this: current spending AIM believes the key to investing
by businesses and consumers on in the ever-broadening technology
technology generates about 8% of the universe is an ongoing commitment to
nation's $5.3 trillion (in 1987 disciplined stock selection on a
</TABLE>
300mm microchips, and Micron Technology Inc. developed new main memory DRAMs
and modules which improve speed performance by up to 100%.
Positions in cable television providers DSC Communications Corp. and
General Instrument Corp. rose on favorable news about legislation proposed in
Congress which would allow cable companies to channel video to customers over
phone lines.
Finnish electronics manufacturer Nokia Corp. announced an 86% increase
in profits on mobile phone sales in the first four months of 1995.
Telecommunications giant Telefonaktiebolaget L.M. Ericsson recently signed a
$225 million contract to deliver cellular service in Southeast Asia and Brazil.
The Fund added financial services companies Corestates Financial Corp.
and Federal Home Loan Mortgage Corp. as interest rates retreated. Defensive
positions such as Coca-Cola Enterprises, Inc. and Crown Cork & Seal Co., Inc.
benefited from the slowing economy. The Fund reduced its weighting in such
cyclical sectors as chemicals, metal, paper, and auto-related industries.
Positions in health care, medical services, and selected retailers were sold as
those companies began to report a decrease in earnings potential.
As of June 30, 1995, the Fund's portfolio was composed of 290 holdings.
OUTLOOK FOR THE FUTURE
We have traveled halfway through this amazing year. While some express concern
about the rise in the overall market, AIM Growth Fund continues to look for
investment potential one company at a time. By confining the scope of our
analysis to individual companies, we can maintain our focus on earnings
momentum. We rely on what we know about a company, rather than projections
about that company's future.
At this writing, earnings remain strong for several sectors,
particularly selected technology groups. Defensive companies have performed
well in the more moderate economy, and financial services companies have
benefited from the more favorable interest rate environment.
Technology companies and large domestic companies with a strong
foreign presence, such as many companies in which AIM Growth Fund is invested,
stand to benefit from continued moderate growth in the U.S. and the growing
demand overseas for U.S. products and services.
See important Fund disclosure on inside front cover.
3
<PAGE> 6
FINANCIALS
SCHEDULE OF INVESTMENTS
June 30, 1995
(Unaudited)
<TABLE>
<CAPTION>
SHARES MARKET VALUE
<S> <C> <C>
COMMON STOCKS - 84.91%
ADVERTISING/BROADCASTING-0.30%
800 Belo (A.H.) Corp. $ 24,500
- -------------------------------------------------------------------------------------------
2,500 Capital Cities/ABC, Inc. 270,000
- -------------------------------------------------------------------------------------------
11,400 Infinity Broadcasting Corp.-Class A(a) 380,475
- -------------------------------------------------------------------------------------------
674,975
- -------------------------------------------------------------------------------------------
AEROSPACE/DEFENSE-0.44%
5,600 Boeing Co. 350,700
- -------------------------------------------------------------------------------------------
10,000 Lockheed Martin Corp. 631,250
- -------------------------------------------------------------------------------------------
981,950
- -------------------------------------------------------------------------------------------
APPLIANCES-0.46%
25,000 Newell Co. 612,500
- -------------------------------------------------------------------------------------------
8,000 Premark International Inc. 415,000
- -------------------------------------------------------------------------------------------
1,027,500
- -------------------------------------------------------------------------------------------
AUTOMOBILE/TRUCK PARTS & TIRES-0.46%
9,200 Dana Corp. 263,350
- -------------------------------------------------------------------------------------------
22,400 Echlin Inc. 778,400
- -------------------------------------------------------------------------------------------
1,041,750
- -------------------------------------------------------------------------------------------
BANKING-0.47%
17,500 Corestates Financial Corp. 610,312
- -------------------------------------------------------------------------------------------
18,300 Southern National Corp. 439,200
- -------------------------------------------------------------------------------------------
1,049,512
- -------------------------------------------------------------------------------------------
BANKING (MONEY CENTER)-0.15%
7,300 Chemical Banking Corp. 344,925
- -------------------------------------------------------------------------------------------
BEVERAGES (ALCOHOLIC)-0.32%
16,300 Canandaigua Wine Co., Inc.-Class A(a) 729,425
- -------------------------------------------------------------------------------------------
BEVERAGES (SOFT DRINKS)-0.52%
29,000 Coca-Cola Enterprises, Inc. 634,375
- -------------------------------------------------------------------------------------------
11,500 PepsiCo Inc. 524,687
- -------------------------------------------------------------------------------------------
1,159,062
- -------------------------------------------------------------------------------------------
BIOTECHNOLOGY-0.16%
4,400 Amgen Inc.(a) 353,925
- -------------------------------------------------------------------------------------------
BUILDING MATERIALS-0.29%
21,000 Black & Decker Corp. 648,375
- -------------------------------------------------------------------------------------------
BUSINESS SERVICES-2.01%
10,700 Equifax Inc. 357,112
- -------------------------------------------------------------------------------------------
29,400 Healthcare COMPARE Corp.(a) 882,000
- -------------------------------------------------------------------------------------------
</TABLE>
4
<PAGE> 7
FINANCIALS
<TABLE>
<CAPTION>
SHARES MARKET VALUE
<S> <C> <C>
Business Services-(continued)
29,000 Manpower Inc. $ 739,500
- -------------------------------------------------------------------------------------------
26,000 Olsten Corp. 851,500
- -------------------------------------------------------------------------------------------
35,000 Sensormatic Electronics Corp. 1,242,500
- -------------------------------------------------------------------------------------------
14,500 Value Health, Inc.(a) 467,625
- -------------------------------------------------------------------------------------------
4,540,237
- -------------------------------------------------------------------------------------------
CHEMICALS-0.37%
10,500 Dow Chemical Co. 754,687
- -------------------------------------------------------------------------------------------
3,000 Hanna (M.A.) Co. 78,000
- -------------------------------------------------------------------------------------------
832,687
- -------------------------------------------------------------------------------------------
CHEMICALS (SPECIALTY)-0.49%
11,100 Airgas Inc.(a) 298,312
- -------------------------------------------------------------------------------------------
4,100 Loctite Corp. 186,550
- -------------------------------------------------------------------------------------------
11,300 Praxair, Inc. 282,500
- -------------------------------------------------------------------------------------------
5,600 W.R. Grace & Co. 343,700
- -------------------------------------------------------------------------------------------
1,111,062
- -------------------------------------------------------------------------------------------
COMPUTER MAINFRAMES-0.34%
7,900 International Business Machines Corp. 758,400
- -------------------------------------------------------------------------------------------
COMPUTER MINI/PCS-2.24%
15,000 COMPAQ Computer Corp.(a) 680,625
- -------------------------------------------------------------------------------------------
30,600 Dell Computer Corp.(a) 1,839,825
- -------------------------------------------------------------------------------------------
7,800 Hewlett-Packard Co. 581,100
- -------------------------------------------------------------------------------------------
40,000 Sun Microsystems Inc.(a) 1,940,000
- -------------------------------------------------------------------------------------------
5,041,550
- -------------------------------------------------------------------------------------------
COMPUTER NETWORKING-3.46%
13,300 ALANTEC Corp.(a) 455,525
- -------------------------------------------------------------------------------------------
23,100 Bay Networks, Inc. 955,762
- -------------------------------------------------------------------------------------------
31,000 Cabletron Systems, Inc.(a) 1,650,750
- -------------------------------------------------------------------------------------------
37,900 Cisco Systems, Inc.(a) 1,916,318
- -------------------------------------------------------------------------------------------
10,000 Lannet Data Communications, Ltd.(a) 240,000
- -------------------------------------------------------------------------------------------
8,300 Madge N.V.(a) 232,400
- -------------------------------------------------------------------------------------------
11,000 Network Equipment Technologies, Inc.(a) 261,250
- -------------------------------------------------------------------------------------------
8,400 Optical Data Systems, Inc.(a) 220,500
- -------------------------------------------------------------------------------------------
28,000 3Com Corp.(a) 1,876,000
- -------------------------------------------------------------------------------------------
7,808,505
- -------------------------------------------------------------------------------------------
COMPUTER PERIPHERALS-3.96%
32,000 Adaptec Inc.(a) 1,184,000
- -------------------------------------------------------------------------------------------
12,650 Alliance Semiconductor Corp.(a) 619,850
- -------------------------------------------------------------------------------------------
20,500 American Power Conversion Corp.(a) 468,937
- -------------------------------------------------------------------------------------------
13,000 Digi International, Inc.(a) 295,750
- -------------------------------------------------------------------------------------------
79,000 EMC Corp.(a) 1,915,750
- -------------------------------------------------------------------------------------------
</TABLE>
5
<PAGE> 8
FINANCIALS
<TABLE>
<CAPTION>
SHARES MARKET VALUE
<S> <C> <C>
Computer Peripherals-(continued)
16,700 Microchip Technology Corp.(a) $ 607,462
- -------------------------------------------------------------------------------------------
8,200 Oak Technology, Inc.(a) 301,350
- -------------------------------------------------------------------------------------------
41,000 Oracle Systems Corp.(a) 1,583,625
- -------------------------------------------------------------------------------------------
28,600 Quantum Corp.(a) 654,225
- -------------------------------------------------------------------------------------------
16,000 Read Rite Corp.(a) 428,000
- -------------------------------------------------------------------------------------------
8,000 U.S. Robotics, Inc.(a) 872,000
- -------------------------------------------------------------------------------------------
8,930,949
- -------------------------------------------------------------------------------------------
COMPUTER SOFTWARE & SERVICES-7.06%
20,700 Adobe System, Inc. 1,200,600
- -------------------------------------------------------------------------------------------
15,000 America Online Inc.(a) 660,000
- -------------------------------------------------------------------------------------------
13,000 Autodesk Inc. 559,000
- -------------------------------------------------------------------------------------------
14,500 BMC Software, Inc.(a) 1,120,125
- -------------------------------------------------------------------------------------------
34,800 Cadence Design Systems, Inc.(a) 1,126,650
- -------------------------------------------------------------------------------------------
26,000 Computer Associates International, Inc. 1,761,500
- -------------------------------------------------------------------------------------------
15,300 Corel Corp.(a) 263,925
- -------------------------------------------------------------------------------------------
12,000 Fiserv, Inc.(a) 337,500
- -------------------------------------------------------------------------------------------
17,700 FTP Software, Inc.(a) 531,000
- -------------------------------------------------------------------------------------------
13,400 HBO & Co. 730,300
- -------------------------------------------------------------------------------------------
33,200 Informix Corp.(a) 842,450
- -------------------------------------------------------------------------------------------
16,500 Mentor Graphics Corp.(a) 284,625
- -------------------------------------------------------------------------------------------
7,000 Microsoft Corp.(a) 632,625
- -------------------------------------------------------------------------------------------
10,400 Network General Corp.(a) 283,400
- -------------------------------------------------------------------------------------------
13,800 Pairgain Technologies, Inc.(a) 263,925
- -------------------------------------------------------------------------------------------
17,000 Parametric Technology Corp.(a) 845,750
- -------------------------------------------------------------------------------------------
19,900 Policy Management Systems Corp.(a) 915,400
- -------------------------------------------------------------------------------------------
10,100 Rational Software Corp.(a) 137,612
- -------------------------------------------------------------------------------------------
31,000 Silicon Graphics, Inc.(a) 1,236,125
- -------------------------------------------------------------------------------------------
4,300 SPS Transaction Services, Inc.(a) 148,887
- -------------------------------------------------------------------------------------------
17,200 Sterling Software, Inc.(a) 662,200
- -------------------------------------------------------------------------------------------
19,400 Symantec Corp. 560,175
- -------------------------------------------------------------------------------------------
13,100 Synopsys, Inc.(a) 820,387
- -------------------------------------------------------------------------------------------
15,924,161
- -------------------------------------------------------------------------------------------
CONGLOMERATES-0.51%
17,100 Federal Signal Corp. 369,787
- -------------------------------------------------------------------------------------------
2,600 Loews Corp. 314,600
- -------------------------------------------------------------------------------------------
8,500 Tyco International Ltd. 459,000
- -------------------------------------------------------------------------------------------
1,143,387
- -------------------------------------------------------------------------------------------
CONSUMER NON-DURABLES-0.09%
5,200 Department 56, Inc.(a) 198,900
- -------------------------------------------------------------------------------------------
</TABLE>
6
<PAGE> 9
FINANCIALS
<TABLE>
<CAPTION>
SHARES MARKET VALUE
<S> <C> <C>
CONTAINERS-0.45%
8,000 Ball Corp. $ 279,000
- -------------------------------------------------------------------------------------------
5,900 Bemis Co., Inc. 153,400
- -------------------------------------------------------------------------------------------
11,800 Crown Cork & Seal Co., Inc.(a) 591,475
- -------------------------------------------------------------------------------------------
1,023,875
- -------------------------------------------------------------------------------------------
COSMETICS & TOILETRIES-0.30%
3,200 Alberto-Culver Co. - Class A 82,400
- -------------------------------------------------------------------------------------------
4,000 Gillette Co. 178,500
- -------------------------------------------------------------------------------------------
5,700 Procter & Gamble Co. 409,687
- -------------------------------------------------------------------------------------------
670,587
- -------------------------------------------------------------------------------------------
ELECTRONIC COMPONENTS-2.52%
10,200 Amphenol Corp.(a) 297,075
- -------------------------------------------------------------------------------------------
10,300 Itel Corp. 401,700
- -------------------------------------------------------------------------------------------
3,750 Molex, Inc. 145,312
- -------------------------------------------------------------------------------------------
4,950 Parker-Hannifin Corp. 179,437
- -------------------------------------------------------------------------------------------
26,000 Philips Electronics N.V.-New York Shares-ADR(a) 1,111,500
- -------------------------------------------------------------------------------------------
7,700 Symbol Technologies, Inc.(a) 295,487
- -------------------------------------------------------------------------------------------
17,900 Tektronix, Inc. 881,575
- -------------------------------------------------------------------------------------------
36,100 Teradyne, Inc.(a) 2,360,037
- -------------------------------------------------------------------------------------------
5,672,123
- -------------------------------------------------------------------------------------------
ELECTRONIC/PC DISTRIBUTORS-1.13%
30,000 Arrow Electronics, Inc.(a) 1,492,500
- -------------------------------------------------------------------------------------------
22,000 Avnet, Inc. 1,064,250
- -------------------------------------------------------------------------------------------
2,556,750
- -------------------------------------------------------------------------------------------
FINANCE (ASSET MANAGEMENT)-0.25%
14,000 Finova Group, Inc. 490,000
- -------------------------------------------------------------------------------------------
1,800 XTRA Corp. 83,250
- -------------------------------------------------------------------------------------------
573,250
- -------------------------------------------------------------------------------------------
FINANCE (CONSUMER CREDIT)-2.95%
5,600 ADVANTA Corp.-Class A 211,400
- -------------------------------------------------------------------------------------------
6,700 ADVANTA Corp.-Class B 279,306
- -------------------------------------------------------------------------------------------
30,000 Countrywide Credit Industries, Inc. 630,000
- -------------------------------------------------------------------------------------------
10,100 Credit Acceptance Corp.(a) 207,050
- -------------------------------------------------------------------------------------------
7,200 Dean Witter Discover and Co. 338,400
- -------------------------------------------------------------------------------------------
7,500 Federal Home Loan Mortgage Corp. 515,625
- -------------------------------------------------------------------------------------------
22,000 First USA, Inc. 976,250
- -------------------------------------------------------------------------------------------
23,000 Green Tree Acceptance, Inc. 1,020,625
- -------------------------------------------------------------------------------------------
40,600 MBNA Corp. 1,370,250
- -------------------------------------------------------------------------------------------
12,900 Medaphis Corp.(a) 280,575
- -------------------------------------------------------------------------------------------
42,200 Mercury Finance Co. 812,350
- -------------------------------------------------------------------------------------------
6,641,831
- -------------------------------------------------------------------------------------------
</TABLE>
7
<PAGE> 10
FINANCIALS
<TABLE>
<CAPTION>
SHARES MARKET VALUE
<S> <C> <C>
FINANCE (SAVINGS & LOAN)-0.12%
12,500 Ahmanson (H.F.) & Co. $ 275,000
- -------------------------------------------------------------------------------------------
FOOD PROCESSING-0.51%
9,500 ConAgra, Inc. 331,312
- -------------------------------------------------------------------------------------------
8,000 Heinz (H.J.) Co. 355,000
- -------------------------------------------------------------------------------------------
12,700 Lancaster Colony Corp. 454,025
- -------------------------------------------------------------------------------------------
1,140,337
- -------------------------------------------------------------------------------------------
FUNERAL SERVICES-0.88%
23,400 Loewen Group, Inc. 833,625
- -------------------------------------------------------------------------------------------
31,100 Service Corp. International 983,537
- -------------------------------------------------------------------------------------------
5,100 Stewart Enterprises, Inc. 170,850
- -------------------------------------------------------------------------------------------
1,988,012
- -------------------------------------------------------------------------------------------
FURNITURE-0.01%
700 Leggett & Platt, Inc. 30,800
- -------------------------------------------------------------------------------------------
GAMING-0.48%
9,000 MGM Grand, Inc.(a) 246,375
- -------------------------------------------------------------------------------------------
17,000 Mirage Resorts, Inc.(a) 520,625
- -------------------------------------------------------------------------------------------
8,000 Promus Companies, Inc.(a) 312,000
- -------------------------------------------------------------------------------------------
1,079,000
- -------------------------------------------------------------------------------------------
HOMEBUILDING-0.03%
3,000 Oakwood Homes Corp. 76,875
- -------------------------------------------------------------------------------------------
HOTELS/MOTELS-0.76%
3,100 Doubletree Corp.(a) 66,843
- -------------------------------------------------------------------------------------------
20,500 Hospitality Franchise Systems Inc.(a) 709,812
- -------------------------------------------------------------------------------------------
26,000 La Quinta Motor Inns Inc. 702,000
- -------------------------------------------------------------------------------------------
6,800 Marriott International, Inc. 243,950
- -------------------------------------------------------------------------------------------
1,722,605
- -------------------------------------------------------------------------------------------
INSURANCE (LIFE & HEALTH)-0.24%
12,500 AFLAC Inc. 546,875
- -------------------------------------------------------------------------------------------
INSURANCE (MULTI-LINE PROPERTY)-0.28%
13,600 Ace, Ltd. 394,400
- -------------------------------------------------------------------------------------------
1,800 General Re Corp. 240,975
- -------------------------------------------------------------------------------------------
635,375
- -------------------------------------------------------------------------------------------
LEISURE & RECREATION-0.75%
7,600 Avid Technology, Inc.(a) 285,000
- -------------------------------------------------------------------------------------------
10,700 Brunswick Corp. 181,900
- -------------------------------------------------------------------------------------------
19,400 Callaway Golf Co. 291,000
- -------------------------------------------------------------------------------------------
3,400 Carnival Cruise Lines, Inc.-Class A 79,475
- -------------------------------------------------------------------------------------------
</TABLE>
8
<PAGE> 11
FINANCIALS
<TABLE>
<CAPTION>
SHARES MARKET VALUE
<S> <C> <C>
Leisure & Recreation-(continued)
23,150 Mattel, Inc. $ 601,900
- -------------------------------------------------------------------------------------------
4,500 Walt Disney Co. (The) 250,312
- -------------------------------------------------------------------------------------------
1,689,587
- -------------------------------------------------------------------------------------------
MACHINE TOOLS-0.12%
7,700 Kennametal Inc. 271,425
- -------------------------------------------------------------------------------------------
MACHINERY (HEAVY)-0.27%
6,000 AGCO Corp. 225,000
- -------------------------------------------------------------------------------------------
12,700 Case Corp. 377,825
- -------------------------------------------------------------------------------------------
602,825
- -------------------------------------------------------------------------------------------
MACHINERY (MISCELLANEOUS)-0.51%
28,500 Thermo Electron Corp.(a) 1,147,125
- -------------------------------------------------------------------------------------------
MEDICAL (DRUGS)-4.60%
10,500 American Home Products Corp. 812,437
- -------------------------------------------------------------------------------------------
12,000 AmeriSource Health Corp.(a) 273,750
- -------------------------------------------------------------------------------------------
13,030 Bergen Brunswig Corp. 298,061
- -------------------------------------------------------------------------------------------
5,000 Bristol-Myers Squibb Co. 340,625
- -------------------------------------------------------------------------------------------
27,500 Cardinal Health Inc. 1,299,375
- -------------------------------------------------------------------------------------------
11,000 Elan Corp. PLC(a) 448,250
- -------------------------------------------------------------------------------------------
26,000 Forest Laboratories, Inc.(a) 1,153,750
- -------------------------------------------------------------------------------------------
8,000 Johnson & Johnson 541,000
- -------------------------------------------------------------------------------------------
9,100 Mallinckrodt Group, Inc. 323,050
- -------------------------------------------------------------------------------------------
6,000 Merck & Co., Inc. 294,000
- -------------------------------------------------------------------------------------------
47,700 Mylan Laboratories, Inc. 1,466,775
- -------------------------------------------------------------------------------------------
5,700 Pfizer Inc. 526,537
- -------------------------------------------------------------------------------------------
30,000 Schering-Plough Corp. 1,323,750
- -------------------------------------------------------------------------------------------
7,800 Smithkline Beecham PLC-ADR 352,950
- -------------------------------------------------------------------------------------------
9,400 Teva Pharmaceutical Industries Ltd.-ADR 352,500
- -------------------------------------------------------------------------------------------
15,000 Watson Pharmaceuticals, Inc.(a) 585,000
- -------------------------------------------------------------------------------------------
10,391,810
- -------------------------------------------------------------------------------------------
MEDICAL (SERVICES)-8.07%
56,900 Apria Heathcare Group, Inc.(a) 1,607,425
- -------------------------------------------------------------------------------------------
42,320 Columbia/HCA Healthcare Corp. 1,830,340
- -------------------------------------------------------------------------------------------
12,500 Community Health Systems, Inc.(a) 423,437
- -------------------------------------------------------------------------------------------
12,500 Coventry Corp.(a) 176,562
- -------------------------------------------------------------------------------------------
30,000 Diagnostek, Inc.(a) 480,000
- -------------------------------------------------------------------------------------------
14,500 Genesis Health Ventures, Inc.(a) 429,562
- -------------------------------------------------------------------------------------------
30,900 Health Care & Retirement Corp.(a) 903,825
- -------------------------------------------------------------------------------------------
20,300 Health Management Associates, Inc.(a) 593,775
- -------------------------------------------------------------------------------------------
29,400 Healthsource, Inc.(a) 1,029,000
- -------------------------------------------------------------------------------------------
105,000 HEALTHSOUTH Corp.(a) 1,824,375
- -------------------------------------------------------------------------------------------
</TABLE>
9
<PAGE> 12
FINANCIALS
<TABLE>
<CAPTION>
SHARES MARKET VALUE
<S> <C> <C>
Medical (Services)-(continued)
16,400 Horizon Healthcare Corp.(a) $ 293,150
- -------------------------------------------------------------------------------------------
12,000 Humana Inc.(a) 211,500
- -------------------------------------------------------------------------------------------
17,300 Integrated Health Services, Inc. 519,000
- -------------------------------------------------------------------------------------------
55,000 Lincare Holdings, Inc.(a) 1,460,937
- -------------------------------------------------------------------------------------------
10,100 Living Centers Of America, Inc.(a) 273,962
- -------------------------------------------------------------------------------------------
20,500 Manor Care, Inc. 597,062
- -------------------------------------------------------------------------------------------
43,500 Mid Atlantic Medical Services, Inc.(a) 804,750
- -------------------------------------------------------------------------------------------
10,000 Omnicare, Inc. 271,250
- -------------------------------------------------------------------------------------------
27,500 OrNda Healthcorp(a) 470,937
- -------------------------------------------------------------------------------------------
10,300 Oxford Health Plans, Inc.(a) 486,675
- -------------------------------------------------------------------------------------------
3,700 Pacificare Health Systems, Inc.-Class A(a) 187,775
- -------------------------------------------------------------------------------------------
3,400 Pacificare Health Systems, Inc.-Class B(a) 173,400
- -------------------------------------------------------------------------------------------
11,000 Quorum Health Group, Inc.(a) 222,750
- -------------------------------------------------------------------------------------------
15,900 Sun Healthcare Group Inc.(a) 250,425
- -------------------------------------------------------------------------------------------
29,200 Sybron Corp.(a) 1,164,350
- -------------------------------------------------------------------------------------------
7,200 TheraTx, Inc.(a) 96,300
- -------------------------------------------------------------------------------------------
7,000 United Healthcare Corp. 289,625
- -------------------------------------------------------------------------------------------
35,900 Vencor, Inc.(a) 1,130,850
- -------------------------------------------------------------------------------------------
18,202,999
- -------------------------------------------------------------------------------------------
MEDICAL INSTRUMENTS/PRODUCTS-2.52%
6,200 Becton, Dickinson and Co. 361,150
- -------------------------------------------------------------------------------------------
35,200 Biomet, Inc.(a) 545,600
- -------------------------------------------------------------------------------------------
18,000 Boston Scientific Corp.(a) 573,750
- -------------------------------------------------------------------------------------------
20,600 Cordis Corp.(a) 1,375,050
- -------------------------------------------------------------------------------------------
3,000 Idexx Laboratories, Inc.(a) 78,000
- -------------------------------------------------------------------------------------------
7,300 Invacare Corp. 302,950
- -------------------------------------------------------------------------------------------
5,300 Medtronic, Inc. 408,762
- -------------------------------------------------------------------------------------------
10,200 Nellcor Inc.(a) 459,000
- -------------------------------------------------------------------------------------------
20,000 St. Jude Medical, Inc. 1,002,500
- -------------------------------------------------------------------------------------------
8,000 Stryker Corp. 307,000
- -------------------------------------------------------------------------------------------
8,600 Sunrise Medical, Inc.(a) 267,675
- -------------------------------------------------------------------------------------------
5,681,437
- -------------------------------------------------------------------------------------------
METALS-0.11%
8,000 Alumax, Inc.(a) 249,000
- -------------------------------------------------------------------------------------------
OFFICE AUTOMATION-0.98%
42,600 Danka Business Systems PLC-ADR 1,030,387
- -------------------------------------------------------------------------------------------
10,000 Xerox Corp. 1,172,500
- -------------------------------------------------------------------------------------------
2,202,887
- -------------------------------------------------------------------------------------------
</TABLE>
10
<PAGE> 13
FINANCIALS
<TABLE>
<CAPTION>
SHARES MARKET VALUE
<S> <C> <C>
OFFICE PRODUCTS-0.47%
12,100 Avery Dennison Corp. $ 484,000
- -------------------------------------------------------------------------------------------
19,800 Reynolds & Reynolds Co.-Class A 584,100
- -------------------------------------------------------------------------------------------
1,068,100
- -------------------------------------------------------------------------------------------
OIL EQUIPMENT & SUPPLIES-0.06%
8,100 Smith International, Inc.(a) 135,675
- -------------------------------------------------------------------------------------------
PAPER & FOREST PRODUCTS-0.30%
11,600 Federal Paper Board Co., Inc. 410,350
- -------------------------------------------------------------------------------------------
5,100 International Corp. 265,837
- -------------------------------------------------------------------------------------------
676,187
- -------------------------------------------------------------------------------------------
POLLUTION CONTROL-0.31%
5,100 Asyst Technologies, Inc.(a) 189,337
- -------------------------------------------------------------------------------------------
14,000 Browning-Ferris Industries, Inc. 505,750
- -------------------------------------------------------------------------------------------
695,087
- -------------------------------------------------------------------------------------------
PUBLISHING-0.44%
17,000 Harcourt General, Inc. 722,500
- -------------------------------------------------------------------------------------------
4,500 Tribune Co. 276,187
- -------------------------------------------------------------------------------------------
998,687
- -------------------------------------------------------------------------------------------
RESTAURANTS-0.40%
12,700 Cracker Barrel Old Country Store, Inc. 261,937
- -------------------------------------------------------------------------------------------
19,000 Morrison Restaurants, Inc. 456,000
- -------------------------------------------------------------------------------------------
6,000 Outback Steakhouse, Inc.(a) 173,250
- -------------------------------------------------------------------------------------------
100 Wendy's International, Inc. 1,787
- -------------------------------------------------------------------------------------------
892,974
- -------------------------------------------------------------------------------------------
RETAIL (FOOD & DRUGS)-1.80%
6,000 Casey's General Stores, Inc. 108,000
- -------------------------------------------------------------------------------------------
19,900 Eckerd (Jack) Corp.(a) 636,800
- -------------------------------------------------------------------------------------------
17,000 Hannaford Bros. Co. 484,500
- -------------------------------------------------------------------------------------------
39,300 Kroger Co.(a) 1,056,187
- -------------------------------------------------------------------------------------------
12,600 Revco D.S., Inc.(a) 302,400
- -------------------------------------------------------------------------------------------
5,200 Rite Aid Corp. 133,250
- -------------------------------------------------------------------------------------------
32,400 Safeway Inc.(a) 1,210,950
- -------------------------------------------------------------------------------------------
6,300 Smith's Food & Drug Centers, Inc.-Class B 124,425
- -------------------------------------------------------------------------------------------
4,056,512
- -------------------------------------------------------------------------------------------
RETAIL STORES-4.82%
28,200 AutoZone, Inc.(a) 708,525
- -------------------------------------------------------------------------------------------
6,600 Baby Superstore, Inc.(a) 311,025
- -------------------------------------------------------------------------------------------
11,200 Bed Bath & Beyond, Inc.(a) 271,600
- -------------------------------------------------------------------------------------------
25,900 Circuit City Stores, Inc. 819,087
- -------------------------------------------------------------------------------------------
38,000 Consolidated Stores Corp.(a) 793,250
- -------------------------------------------------------------------------------------------
13,500 General Nutrition Companies, Inc.(a) 474,187
- -------------------------------------------------------------------------------------------
</TABLE>
11
<PAGE> 14
FINANCIALS
<TABLE>
<CAPTION>
SHARES MARKET VALUE
<S> <C> <C>
Retail Stores-(continued)
7,100 Gymboree Corp.(a) $ 206,343
- -------------------------------------------------------------------------------------------
31,800 Heilig-Meyers Co. 810,900
- -------------------------------------------------------------------------------------------
15,000 Home Depot, Inc. 609,375
- -------------------------------------------------------------------------------------------
8,500 Lowe's Companies, Inc. 253,937
- -------------------------------------------------------------------------------------------
6,000 Men's Wearhouse, Inc. (The)(a) 165,000
- -------------------------------------------------------------------------------------------
8,000 Michaels Stores, Inc.(a) 170,000
- -------------------------------------------------------------------------------------------
11,000 Micro Warehouse, Inc.(a) 506,000
- -------------------------------------------------------------------------------------------
41,600 Office Depot, Inc.(a) 1,170,000
- -------------------------------------------------------------------------------------------
13,000 Pep Boys-Manny, Moe & Jack 347,750
- -------------------------------------------------------------------------------------------
14,000 Sports Authority, Inc. (The)(a) 285,250
- -------------------------------------------------------------------------------------------
23,000 Staples, Inc.(a) 664,125
- -------------------------------------------------------------------------------------------
3,000 Sunglass Hut International(a) 105,000
- -------------------------------------------------------------------------------------------
18,200 Sysco Corp. 536,900
- -------------------------------------------------------------------------------------------
8,700 Tandy Corp. 451,312
- -------------------------------------------------------------------------------------------
30,000 Viking Office Products Inc.(a) 1,098,750
- -------------------------------------------------------------------------------------------
7,000 Waban, Inc.(a) 104,125
- -------------------------------------------------------------------------------------------
10,862,441
- -------------------------------------------------------------------------------------------
SCIENTIFIC INSTRUMENTS-0.68%
27,800 Varian Associates, Inc. 1,535,950
- -------------------------------------------------------------------------------------------
SEMICONDUCTORS-15.88%
37,400 Altera Corp.(a) 1,617,580
- -------------------------------------------------------------------------------------------
48,900 Analog Devices, Inc.(a) 1,662,600
- -------------------------------------------------------------------------------------------
34,900 Applied Materials, Inc.(a) 3,023,212
- -------------------------------------------------------------------------------------------
8,200 ASM Lithography Holding(a) 294,175
- -------------------------------------------------------------------------------------------
41,100 Atmel Corp.(a) 2,275,912
- -------------------------------------------------------------------------------------------
25,000 Cirrus Logic, Inc.(a) 1,567,187
- -------------------------------------------------------------------------------------------
40,900 Cypress Semiconductor Corp.(a) 1,656,450
- -------------------------------------------------------------------------------------------
6,300 Electroglas Inc.(a) 360,675
- -------------------------------------------------------------------------------------------
25,500 Integrated Device Technology, Inc.(a) 1,179,375
- -------------------------------------------------------------------------------------------
32,000 Intel Corp. 2,026,000
- -------------------------------------------------------------------------------------------
19,800 International Rectifier Corp.(a) 643,500
- -------------------------------------------------------------------------------------------
16,400 KLA Instruments Corp.(a) 1,266,900
- -------------------------------------------------------------------------------------------
30,900 Lam Research Corp.(a) 1,977,600
- -------------------------------------------------------------------------------------------
12,100 Lattice Semiconductor Corp.(a) 415,937
- -------------------------------------------------------------------------------------------
18,000 Linear Technology Corp. 1,188,000
- -------------------------------------------------------------------------------------------
61,000 LSI Logic Corp.(a) 2,386,625
- -------------------------------------------------------------------------------------------
6,200 Maxim Integrated Products, Inc.(a) 316,200
- -------------------------------------------------------------------------------------------
50,000 Micron Technology Inc. 2,743,750
- -------------------------------------------------------------------------------------------
25,000 National Semiconductor Corp.(a) 693,750
- -------------------------------------------------------------------------------------------
19,000 Novellus Systems, Inc.(a) 1,287,250
- -------------------------------------------------------------------------------------------
</TABLE>
12
<PAGE> 15
FINANCIALS
<TABLE>
<CAPTION>
SHARES MARKET VALUE
<S> <C> <C>
Semiconductors-(continued)
7,000 SCI Systems, Inc.(a) $ 175,000
- -------------------------------------------------------------------------------------------
6,100 Sierra Semiconductor Corp.(a) 193,675
- -------------------------------------------------------------------------------------------
8,100 Silicon Valley Group, Inc.(a) 293,625
- -------------------------------------------------------------------------------------------
24,000 Solectron Corp.(a) 819,000
- -------------------------------------------------------------------------------------------
7,400 Tencor Instruments(a) 303,400
- -------------------------------------------------------------------------------------------
17,000 Texas Instruments Inc. 2,275,875
- -------------------------------------------------------------------------------------------
15,100 Vishay Intertechnology, Inc.(a) 545,487
- -------------------------------------------------------------------------------------------
43,100 VLSI Technology, Inc.(a) 1,298,387
- -------------------------------------------------------------------------------------------
14,000 Xilinx, Inc.(a) 1,316,000
- -------------------------------------------------------------------------------------------
35,803,127
- -------------------------------------------------------------------------------------------
SHOES & RELATED APPAREL-0.41%
21,000 Nine West Group, Inc.(a) 766,500
- -------------------------------------------------------------------------------------------
7,500 Wolverine World Wide, Inc. 155,625
- -------------------------------------------------------------------------------------------
922,125
- -------------------------------------------------------------------------------------------
TELECOMMUNICATIONS-5.89%
10,000 ADC Telecommunications Inc.(a) 357,500
- -------------------------------------------------------------------------------------------
9,400 Allen Group, Inc. 278,475
- -------------------------------------------------------------------------------------------
5,700 Andrew Corp.(a) 329,887
- -------------------------------------------------------------------------------------------
5,200 Aspect Telecommunications Corp.(a) 232,700
- -------------------------------------------------------------------------------------------
38,500 DSC Communications Corp.(a) 1,790,250
- -------------------------------------------------------------------------------------------
40,900 General Instrument Corp.(a) 1,569,537
- -------------------------------------------------------------------------------------------
17,400 Glenayre Technologies, Inc.(a) 887,400
- -------------------------------------------------------------------------------------------
33,500 Nokia Corp.-ADR(a) 1,997,437
- -------------------------------------------------------------------------------------------
49,600 Scientific-Atlanta, Inc. 1,091,200
- -------------------------------------------------------------------------------------------
94,400 Telefonaktiebolaget L.M. Ericsson-ADR 1,888,000
- -------------------------------------------------------------------------------------------
35,900 Tellabs, Inc.(a) 1,727,687
- -------------------------------------------------------------------------------------------
8,400 U.S. Long Distance Corp.(a) 136,500
- -------------------------------------------------------------------------------------------
37,000 WorldCom, Inc.(a) 999,000
- -------------------------------------------------------------------------------------------
13,285,573
- -------------------------------------------------------------------------------------------
TELEPHONE-0.03%
2,300 Century Telephone Enterprises, Inc. 65,262
- -------------------------------------------------------------------------------------------
TEXTILES-0.11%
10,200 Unifi, Inc. 244,800
- -------------------------------------------------------------------------------------------
TOBACCO-0.29%
6,000 Philip Morris Companies, Inc. 446,250
- -------------------------------------------------------------------------------------------
7,000 UST, Inc. 208,250
- -------------------------------------------------------------------------------------------
654,500
- -------------------------------------------------------------------------------------------
TRUCKING-0.08%
9,100 TNT Freightways Corp. 180,862
- -------------------------------------------------------------------------------------------
Total Common Stocks 191,451,489
- -------------------------------------------------------------------------------------------
</TABLE>
13
<PAGE> 16
FINANCIALS
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MARKET VALUE
<S> <C> <C>
U.S. TREASURY BILLS(b) - 14.16%
$ 600,000 5.76%, 07/13/95 $ 598,848
- -------------------------------------------------------------------------------------------
2,000,000 5.64%, 10/19/95 1,968,020
- -------------------------------------------------------------------------------------------
25,000,000(c) 5.48%, 11/16/95 24,495,250
- -------------------------------------------------------------------------------------------
5,000,000(c) 5.42%, 12/21/95 4,867,450
- -------------------------------------------------------------------------------------------
Total U.S. Treasury Bills 31,929,568
- -------------------------------------------------------------------------------------------
REPURCHASE AGREEMENTS - 2.37%(d)
1,345,079 Daiwa Securities America Inc.(e)
6.20%, 07/03/95 1,345,079
- -------------------------------------------------------------------------------------------
4,000,000 SBC Government Securities, Inc.(f)
6.22%, 07/03/95 4,000,000
- -------------------------------------------------------------------------------------------
Total Repurchase Agreements 5,345,079
- -------------------------------------------------------------------------------------------
TOTAL INVESTMENTS -- 101.44% 228,726,136
- -------------------------------------------------------------------------------------------
OTHER ASSETS LESS LIABILITIES -- (1.44)% (3,235,933)
- -------------------------------------------------------------------------------------------
NET ASSETS -- 100.00% $225,490,203
===========================================================================================
</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 for the Fund.
(c) A portion of the principal balance was pledged as collateral to cover margin
requirements for open futures contracts. See Note 6 to Financial Statements.
(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 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.
(e) Joint repurchase agreement entered into on 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 on 06/30/95 with a maturing value of
$200,103,667. Collateralized by $233,420,000 U.S. Treasury obligations, 0%
to 8.25% due 07/05/95 to 02/15/02.
Abbreviations:
ADR - American Depositary Receipt
See Notes to Financial Statements.
14
<PAGE> 17
FINANCIALS
STATEMENT OF ASSETS AND LIABILITIES
June 30, 1995
(Unaudited)
<TABLE>
<S> <C>
ASSETS:
Investments, at market value (cost $188,988,448) $228,726,136
- ----------------------------------------------------------------------------------------
Receivables for:
Investments sold 1,765,214
- ----------------------------------------------------------------------------------------
Fund shares sold 1,620,215
- ----------------------------------------------------------------------------------------
Dividends and interest 125,956
- ----------------------------------------------------------------------------------------
Investment for deferred compensation plan 58,388
- ----------------------------------------------------------------------------------------
Other assets 11,787
- ----------------------------------------------------------------------------------------
Total assets 232,307,696
- ----------------------------------------------------------------------------------------
LIABILITIES:
Payables for:
Investments purchased 5,463,756
- ----------------------------------------------------------------------------------------
Fund shares reacquired 834,374
- ----------------------------------------------------------------------------------------
Deferred compensation plan 58,388
- ----------------------------------------------------------------------------------------
Variation margin 78,000
- ----------------------------------------------------------------------------------------
Accrued advisory fees 133,920
- ----------------------------------------------------------------------------------------
Accrued administrative services fees 5,378
- ----------------------------------------------------------------------------------------
Accrued distribution fees 144,516
- ----------------------------------------------------------------------------------------
Accrued trustees' fees 1,229
- ----------------------------------------------------------------------------------------
Accrued transfer agent fees 46,729
- ----------------------------------------------------------------------------------------
Accrued operating expenses 51,203
- ----------------------------------------------------------------------------------------
Total liabilities 6,817,493
- ----------------------------------------------------------------------------------------
Net assets applicable to shares outstanding $225,490,203
========================================================================================
NET ASSETS:
Class A $147,461,452
========================================================================================
Class B $ 78,028,751
========================================================================================
SHARES OUTSTANDING, $0.01 PAR VALUE PER SHARE:
Class A 11,589,583
========================================================================================
Class B 6,231,457
========================================================================================
Class A:
Net asset value and redemption price per share $ 12.72
========================================================================================
Offering price per share:
(Net asset value of $12.72 divided by 94.50%) $ 13.46
========================================================================================
Class B:
Net asset value and offering price per share $ 12.52
========================================================================================
</TABLE>
See Notes to Financial Statements.
15
<PAGE> 18
FINANCIALS
STATEMENT OF OPERATIONS
For the six months ended June 30, 1995
(Unaudited)
<TABLE>
<S> <C>
INVESTMENT INCOME:
Dividends $ 500,048
- ----------------------------------------------------------------------------------------
Interest 968,972
- ----------------------------------------------------------------------------------------
Total investment income 1,469,020
- ----------------------------------------------------------------------------------------
EXPENSES:
Advisory fees 708,986
- ----------------------------------------------------------------------------------------
Custodian fees 40,128
- ----------------------------------------------------------------------------------------
Transfer agent fees -- Class A 105,378
- ----------------------------------------------------------------------------------------
Transfer agent fees -- Class B 93,977
- ----------------------------------------------------------------------------------------
Administrative services fees 35,157
- ----------------------------------------------------------------------------------------
Trustees' fees 2,565
- ----------------------------------------------------------------------------------------
Distribution fees -- Class A 165,067
- ----------------------------------------------------------------------------------------
Distribution fees -- Class B 254,354
- ----------------------------------------------------------------------------------------
Other 64,862
- ----------------------------------------------------------------------------------------
Total expenses 1,470,474
- ----------------------------------------------------------------------------------------
Net investment income (loss) (1,454)
- ----------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN FROM INVESTMENT SECURITIES, FUTURES AND OPTIONS CONTRACTS:
Net realized gain from:
Investment securities 7,357,961
- ----------------------------------------------------------------------------------------
Futures contracts 3,134,372
- ----------------------------------------------------------------------------------------
Options contracts 79,829
- ----------------------------------------------------------------------------------------
10,572,162
- ----------------------------------------------------------------------------------------
Unrealized appreciation of:
Investment securities 28,808,090
- ----------------------------------------------------------------------------------------
Futures contracts 609,873
- ----------------------------------------------------------------------------------------
Option contracts 57,001
- ----------------------------------------------------------------------------------------
29,474,964
- ----------------------------------------------------------------------------------------
Net gain from investment securities, futures and options contracts 40,047,126
- ----------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $40,045,672
========================================================================================
</TABLE>
See Notes to Financial Statements.
16
<PAGE> 19
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 (loss) $ (1,454) $ (212,386)
- -----------------------------------------------------------------------------------------------------------------------------------
Net realized gain from investment securities, futures and options contracts 10,572,162 2,769,880
- -----------------------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) of investment securities, futures
and options contracts 29,474,964 (10,397,965)
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from operations 40,045,672 (7,840,471)
- -----------------------------------------------------------------------------------------------------------------------------------
Distributions to shareholders from net investment income -- Class A -- (1,847)
- -----------------------------------------------------------------------------------------------------------------------------------
Distributions to shareholders from net realized gains on investment securities,
futures and options contracts:
Class A -- (4,927,563)
- -----------------------------------------------------------------------------------------------------------------------------------
Class B -- (1,473,126)
- -----------------------------------------------------------------------------------------------------------------------------------
Share transactions-net:
Class A (4,037,255) (12,166,631)
- -----------------------------------------------------------------------------------------------------------------------------------
Class B 27,762,461 30,353,095
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets 63,770,878 3,943,457
- -----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 161,719,325 157,775,868
- -----------------------------------------------------------------------------------------------------------------------------------
End of period $225,490,203 $161,719,325
===================================================================================================================================
NET ASSETS CONSIST OF:
Shares of beneficial interest $176,541,221 $152,816,015
- -----------------------------------------------------------------------------------------------------------------------------------
Undistributed net investment income (loss) (56,378) (54,924)
- -----------------------------------------------------------------------------------------------------------------------------------
Undistributed net realized gain (loss) from investment securities, futures and
options contracts 8,534,299 (2,037,863)
- -----------------------------------------------------------------------------------------------------------------------------------
Unrealized appreciation of investment securities, futures and options
contracts 40,471,061 10,996,097
- -----------------------------------------------------------------------------------------------------------------------------------
$225,490,203 $161,719,325
===================================================================================================================================
</TABLE>
See Notes to Financial Statements.
17
<PAGE> 20
FINANCIALS
NOTES TO FINANCIAL STATEMENTS
June 30, 1995
(Unaudited)
NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES
AIM Growth 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 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. 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.
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.
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.
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 satisfied
by the segregation of specific securities as collateral for the account of
the broker (the Fund's agent in acquiring the futures position). During the
period the futures contracts are open, changes in the value of the contracts
are recognized as unrealized gains or losses by "marking to market" on a
daily basis to reflect the market value of the contracts at the end of each
day's trading. Variation margin payments are made or received depending upon
whether unrealized gains or losses are incurred. When the contracts are
closed, the Fund
18
<PAGE> 21
FINANCIALS
NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES (continued)
recognizes a realized gain or loss equal to the difference between the
proceeds from, or cost of, the closing transaction and the Fund's basis in
the contract. Risks include the possibility of an illiquid market and the
change in the value of the contracts may not correlate with changes in the
value of 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.
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. 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 $35,157 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
$114,566 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
19
<PAGE> 22
FINANCIALS
NOTE 2 - ADVISORY FEES AND OTHER TRANSACTIONS WITH AFFILIATES (continued)
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 $165,067 and $254,354, respectively, as compensation under the
Plans.
AIM Distributors received commissions of $44,597 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 $83,145 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 $666
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.
20
<PAGE> 23
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
$106,742,066 and $80,936,421, 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 $41,059,281
- ------------------------------------------------------------------------------------------------------------------
Aggregate unrealized (depreciation) of investment securities (1,570,858)
- ------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation of investment securities $39,488,423
==================================================================================================================
Cost of investments for tax purposes is $189,237,713.
</TABLE>
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 4,159,669 $ 47,252,393 4,669,279 $ 49,954,762
- -------------------------------------------------------------------------------------------------------------------------------
Class B 2,889,462 32,455,548 3,113,829 33,848,039
- -------------------------------------------------------------------------------------------------------------------------------
Issued as reinvestment of dividends:
Class A -- -- 467,584 4,717,930
- -------------------------------------------------------------------------------------------------------------------------------
Class B -- -- 135,261 1,349,902
- -------------------------------------------------------------------------------------------------------------------------------
Reacquired:
Class A (4,510,222) (51,289,648) (6,154,491) (66,839,323)
- -------------------------------------------------------------------------------------------------------------------------------
Class B (424,826) (4,693,087) (459,392) (4,844,846)
- -------------------------------------------------------------------------------------------------------------------------------
2,114,083 $ 23,725,206 1,772,070 $ 18,186,464
===============================================================================================================================
</TABLE>
NOTE 6 - OPEN FUTURES CONTRACTS
On June 30, 1995, $1,334,000 principal amount of U.S. Treasury Bills were
pledged as collateral to cover margin requirements for open futures contracts.
Open futures contracts at June 30, 1995 were as follows:
<TABLE>
<CAPTION>
NO. OF UNREALIZED
CONTRACT CONTRACTS/MONTH/COMMITMENT APPRECIATION
<S> <C> <C>
S&P 500 Index 120 contracts/Sept./Buy $733,373
=======================================================================================================================
</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 551 $127,014
- -------------------------------------------------------------------------------------------------------------------
Written 6 1,031
- -------------------------------------------------------------------------------------------------------------------
Closed (202) (58,070)
- -------------------------------------------------------------------------------------------------------------------
Exercised (81) (12,894)
- -------------------------------------------------------------------------------------------------------------------
Expired (274) (57,081)
- -------------------------------------------------------------------------------------------------------------------
End of period 0 $ 0
===================================================================================================================
</TABLE>
21
<PAGE> 24
FINANCIALS
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 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 $ 10.32 $ 11.32 $ 12.28 $ 14.73 $ 12.35 $ 13.92
- ------------------------------------------- -------- -------- -------- -------- -------- --------
Income from investment operations:
Net investment income 0.01 -- -- 0.06 0.11 0.21
- ------------------------------------------- -------- -------- -------- -------- -------- --------
Net gains (losses) on securities (both
realized and unrealized) 2.39 (0.57) 0.41 (0.04) 4.33 (0.91)
- ------------------------------------------- -------- -------- -------- -------- -------- --------
Total from investment operations 2.40 (0.57) 0.41 0.02 4.44 (0.70)
- ------------------------------------------- -------- -------- -------- -------- -------- --------
Less distributions:
Dividends from net investment income -- -- -- (0.06) (0.13) (0.20)
- ------------------------------------------- -------- -------- -------- -------- -------- --------
Distributions from capital gains -- (0.43) (1.37) (2.41) (1.93) (0.67)
- ------------------------------------------- -------- -------- -------- -------- -------- --------
Total distributions -- (0.43) (1.37) (2.47) (2.06) (0.87)
- ------------------------------------------- -------- -------- -------- -------- -------- --------
Net asset value, end of period $ 12.72 $ 10.32 $ 11.32 $ 12.28 $ 14.73 $ 12.35
=========================================== ======== ======== ======== ======== ======== ========
Total return(b) 23.26% (4.99)% 3.64% 0.19% 37.05% (5.04)%
=========================================== ======== ======== ======== ======== ======== ========
Ratios/supplemental data:
Net assets, end of period (000s omitted) $147,461 $123,271 $146,723 $168,395 $185,461 $153,245
=========================================== ======== ======== ======== ======== ======== ========
Ratio of expenses to average net assets 1.32%(c) 1.22% 1.17% 1.17% 1.21% 1.16%
=========================================== ======== ======== ======== ======== ======== ========
Ratio of net investment income to average
net assets 0.27%(c) 0.02% 0.02% 0.42% 0.73% 1.41%
=========================================== ======== ======== ======== ======== ======== ========
Portfolio turnover rate 53% 201% 192% 133% 73% 61%
=========================================== ======== ======== ======== ======== ======== ========
<CAPTION>
DECEMBER 31,
-----------------------------------------------
1989 1988 1987 1986
-------- -------- -------- --------
<S> <C> <C> <C> <C>
CLASS A:
Net asset value, beginning of period $ 11.93 $ 11.04 $ 12.91 $ 14.95
- ------------------------------------------- -------- -------- -------- --------
Income from investment operations:
Net investment income 0.25 0.23 0.24 0.26
- ------------------------------------------- -------- -------- -------- --------
Net gains (losses) on securities (both
realized and unrealized) 3.16 0.89 0.30 1.57
- ------------------------------------------- -------- -------- -------- --------
Total from investment operations 3.41 1.12 0.54 1.83
- ------------------------------------------- -------- -------- -------- --------
Less distributions:
Dividends from net investment income (0.27) (0.23) (0.31) (0.35)
- ------------------------------------------- -------- -------- -------- --------
Distributions from capital gains (1.15) -- (2.10) (3.52)
- ------------------------------------------- -------- -------- -------- --------
Total distributions (1.42) (0.23) (2.41) (3.87)
- ------------------------------------------- -------- -------- -------- --------
Net asset value, end of period $ 13.92 $ 11.93 $ 11.04 $ 12.91
=========================================== ======== ======== ======== ========
Total return(b) 28.87% 10.13% 3.62% 12.85%
=========================================== ======== ======== ======== ========
Ratios/supplemental data:
Net assets, end of period (000s omitted) $187,805 $180,793 $203,329 $213,346
=========================================== ======== ======== ======== ========
Ratio of expenses to average net assets 1.00% 0.98% 0.84% 0.85%
=========================================== ======== ======== ======== ========
Ratio of net investment income to average
net assets 1.62% 1.73% 1.51% 1.82%
=========================================== ======== ======== ======== ========
Portfolio turnover rate 53% 38% 78% 66%
=========================================== ======== ======== ======== ========
</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 $133,148,033.
22
<PAGE> 25
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 $ 10.21 $ 11.31 $ 12.83
- ------------------------------------------------------------------------------------------ ------- ------- -------
Income from investment operations:
Net investment income (loss) (0.03) (0.06) (0.01)
- ------------------------------------------------------------------------------------------ ------- ------- -------
Net gains (losses) on securities (both realized and unrealized) 2.34 (0.61) (0.14)
- ------------------------------------------------------------------------------------------ ------- ------- -------
Total from investment operations 2.31 (0.67) (0.15)
- ------------------------------------------------------------------------------------------ ------- ------- -------
Less distributions:
Distributions from capital gains -- (0.43) (1.37)
- ------------------------------------------------------------------------------------------ ------- ------- -------
Total distributions -- (0.43) (1.37)
- ------------------------------------------------------------------------------------------ ------- ------- -------
Net asset value, end of period $ 12.52 $ 10.21 $ 11.31
========================================================================================== ======= ======= =======
Total return(a) 22.63% (5.88)% (0.92)%
========================================================================================== ======= ======= =======
Ratios/supplemental data:
Net assets, end of period (000s omitted) $78,029 $38,448 $11,053
========================================================================================== ======= ======= =======
Ratio of expenses to average net assets 2.25%(b) 2.18% 1.91%(c)
========================================================================================== ======= ======= =======
Ratio of net investment income (loss) to average net assets (0.66)%(b) (0.94)% (0.72)%(c)
========================================================================================== ======= ======= =======
Portfolio turnover rate 53% 201% 192%
========================================================================================== ======= ======= =======
</TABLE>
(a) Total returns do not reflect deduction of contingent deferred sales charges
and are not annualized for periods less than one year.
(b) Ratios are annualized and based on average net assets of $53,607,539.
(c) Annualized.
23
<PAGE> 26
This page intentionally left blank.
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 Chairman Houston, TX 77046
Chief Executive Officer
A I M Management Group Inc. Robert H. Graham
President INVESTMENT ADVISOR
Bruce L. Crockett
Director, President, and John J. Arthur A I M Advisors, Inc.
Chief Executive Officer Senior Vice President and Treasurer 11 Greenway Plaza
COMSAT Corporation Suite 1919
Gary T. Crum Houston, TX 77046
Owen Daly II Senior Vice President
Director
Cortland Trust Inc. Carol F. Relihan TRANSFER AGENT
Vice President and Secretary
Carl Frischling A I M Fund Services, Inc.
Partner Dana R. Sutton P.O. Box 4739
Kramer, Levin, Naftalis, Vice President Houston, TX 77210-4739
Nessen, Kamin & Frankel and Assistant Treasurer
Robert H. Graham Robert G. Alley CUSTODIAN
President Vice President
A I M Management Group Inc. State Street Bank & Trust Co.
Stuart W. Coco 225 Franklin Street
John F. Kroeger Vice President Boston, MA 02110
Formerly, Consultant
Wendell & Stockel Melville B. Cox
Associates, Inc. Vice President COUNSEL TO THE FUND
Lewis F. Pennock Karen Dunn Kelley Ballard Spahr
Attorney Vice President Andrews & Ingersoll
1735 Market Street
Ian W. Robinson Jonathan C. Schoolar Philadelphia, PA 19103
Consultant; Former Executive Vice President
Vice President and
Chief Financial Officer P. Michelle Grace COUNSEL TO THE TRUSTEES
Bell Atlantic Management Assistant Secretary
Services, Inc. Kramer, Levin, Naftalis,
Nancy L. Martin Nessen, Kamin & Frankel
Louis S. Sklar Assistant Secretary 919 Third Avenue
Executive Vice President New York, NY 10022
Hines Interests Ofelia M. Mayo
Limited Partnership 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 prospectus of the Fund.
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.
