<PAGE> 1
SEMIANNUAL REPORT / JUNE 30 2000
AIM VALUE FUND
[COVER IMAGE]
[AIM LOGO APPEARS HERE]
--Registered Trademark--
<PAGE> 2
[COVER IMAGE]
-------------------------------------
THE ANTIQUE DEALER BY HEINRICH EDE
ANTIQUE DEALERS SEARCH FOR RARE, HISTORICAL PIECES THAT MAY
APPRECIATE IN VALUE. FINE ANTIQUES DEVELOP A PATINA THAT CANNOT
BE DUPLICATED, BUT BUILDS ONLY WITH TIME. LIKE ANTIQUE COLLECTING,
INVESTING ALSO TAKES PATIENCE AND AN EYE FOR INTRINSIC VALUE.
-------------------------------------
AIM Value Fund seeks long-term growth of capital.
ABOUT FUND PERFORMANCE AND PORTFOLIO DATA THROUGHOUT THIS REPORT:
o AIM Value Fund's performance figures are historical, and they reflect the
reinvestment of distributions and changes in net asset value.
o When sales charges are included in performance figures, Class A share
performance reflects the maximum 5.50% sales charge, and Class B and Class C
share performance reflects the applicable contingent deferred sales charge
(CDSC) for the period involved. The CDSC on Class B shares declines from 5%
beginning at the time of purchase to 0% at the beginning of the seventh
year. The CDSC on Class C shares is 1% for the first year after purchase.
The performance of the fund's Class B and Class C shares will differ from
that of its Class A shares due to different sales-charge structure and
class expenses.
o The fund's investment return and principal value will fluctuate, so an
investor's shares, when redeemed, may be worth more or less than their
original cost.
ABOUT INDEXES AND OTHER PERFORMANCE BENCHMARKS CITED IN THIS REPORT:
o The unmanaged Dow Jones Industrial Average (the Dow) is a price-weighted
average of 30 actively traded primarily industrial stocks.
o The unmanaged National Association of Securities Dealers Automated Quotation
System Composite Index (the Nasdaq) is a market-value-weighted index
comprising all domestic and non-U.S.-based common stocks listed on the
Nasdaq system. It includes more than 5,000 companies, and it is often
considered representative of the small and medium-sized company stock
universe. While it includes many small and mid-sized company stocks,
large-capitalization technology companies tend to dominate the index.
o The unmanaged Standard & Poor's Composite Index of 500 Stocks (the S&P 500)
is generally considered representative of the stock market.
o An investment cannot be made in an index. Unless otherwise indicated, index
results include reinvested dividends, and they do not reflect sales charges.
AN INVESTMENT IN THE FUND IS NOT A DEPOSIT OF A BANK AND IS NOT INSURED OR
GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY OTHER
GOVERNMENT AGENCY. THERE IS A RISK THAT YOU COULD LOSE SOME OR ALL OF
YOUR MONEY.
This report may be distributed only to current shareholders or to persons who
have received a current prospectus of the fund.
AIM VALUE FUND
<PAGE> 3
SEMIANNUAL REPORT / CHAIRMAN'S LETTER
Dear Fellow Shareholder:
[PHOTO OF When we started AIM in 1976, we had only a table, two chairs
Charles T. and a telephone. At the time, Bob Graham, Gary Crum and I
Bauer, had the idea of creating a mutual fund company that put
Chairman of people first. Our slogan, "people are the product," means
the Board of that people--our employees and our investors--are our
THE FUND company.
APPEARS HERE]
Almost a quarter-century later, we've grown to more than
[PHOTO OF eight million investors, $176 billion in assets under
Robert H. management and 55 retail funds. Over that time, the industry
Graham as a whole has grown from $51 billion in assets to more than
APPEARS HERE] $7 trillion today. I never dreamed we would see such
phenomenal growth. You are the main reason for our success,
and I want you to know how much I appreciate your loyalty
and trust over the past 24 years.
Usually in this letter I review market activity during the period covered by the
report. This time, I'd just like to say thank you. I am retiring as chairman of
the AIM Funds effective September 30, and as chairman of AIM effective December
31, 2000. Bob Graham, whose picture appears under mine, will succeed me as AIM's
chairman and chairman of the AIM Funds. Gary Crum will remain president of AIM
Capital Management, Inc., leading our investment division. I am enormously proud
to leave AIM in such capable hands.
I'm also very proud of our team of employees, now more than 2,500 strong.
Because of their collective commitment to excellence and ethical business
practices, AIM has earned the trust of investors and financial advisors alike.
And every employee, from portfolio managers to client services representatives,
is dedicated to serving our shareholders.
Rest assured that nothing at AIM will change because of my retirement. You can
still depend on this company to manage your money responsibly and provide you
with top-notch service. As chairman of AIM and chairman of the AIM Funds, Bob is
committed to preserving the things that have made AIM great in the past and
positioning it to succeed in the future. And Gary is dedicated to maintaining
the quality and long-term performance you've come to expect from AIM.
In the pages that follow, the managers of your fund comment on recent market
activity, how they have managed your fund over the past six months and their
outlook for the coming months. We trust you will find their comments helpful.
If you have any questions or comments, please contact us through our Web site,
www.aimfunds.com, or call our Client Services department at 800-959-4246 during
normal business hours. Information about your account is available at our Web
site and on our automated AIM Investor Line, 800-246-5463.
Thank you again for the support and trust you've shown us. I feel privileged to
have helped you with your financial goals, and I wish you success in all your
endeavors.
Sincerely,
/s/ CHARLES T. BAUER
Charles T. Bauer
Chairman, A I M Advisors, Inc.
AIM VALUE FUND
<PAGE> 4
SEMIANNUAL REPORT / MANAGERS' OVERVIEW
AIM VALUE FUND WEATHERS VOLATILE MARKET
HOW DID AIM VALUE FUND PERFORM OVER THE REPORTING PERIOD?
AIM Value Fund reported flat results for the six months ending June 30, 2000.
Class A shares returned -0.39%, while Class B and Class C shares returned
-0.79%. These returns are at net asset value, so they exclude sales charges.
The fund's performance was in line with that of its benchmark, the S&P 500,
which produced a return of -0.43% during the same time frame.
While the fund and its benchmark were both flat on a six-month basis, AIM
Value Fund beat the S&P 500's performance over the year ended June 30, 2000. The
fund's Class A, Class B and Class C shares reported annual total returns of
13.02%, 12.12% and 12.14% (without sales charges), compared to the 7.24% return
of the S&P 500.
As of June 30, 2000, the fund's total net assets stood at $29.6 billion, a
$1.8 billion increase since the beginning of the year.
WHAT WERE MARKET CONDITIONS LIKE OVER THE PAST SIX MONTHS?
The past six months saw extreme market volatility. During the first three months
of 2000, market indexes such as the Dow and the Nasdaq rose to new heights in a
rally dominated by technology stocks. But near the end of March, market
sentiment soured as investors worried whether tech stocks were overpriced. A
sharp sell-off in the technology sector ensued, particularly for Internet
companies with no earnings.
Interest-rate concerns also roiled the markets during the reporting period.
The Federal Reserve Board (the Fed) continued to raise interest rates in an
effort to slow the economy and prevent inflation. In May, the Fed raised the
federal funds rate to 6.50%, its highest level in nine years. Since June 1999,
the Fed has increased interest rates six times for a total of 1.75%. At its June
2000 meeting, the Fed chose to leave rates unchanged but hinted that more
increases may occur later in the summer.
For all the intense market activity of the past six months, the S&P 500
ended the period flat, while the Dow returned -8.44% and the Nasdaq returned
-2.54%.
HOW DID YOU MANAGE THE FUND DURING THESE CONDITIONS?
Volatility hurt the fund's performance during the second quarter of 2000. The
fund invests in companies with strong earnings growth and reasonable stock
prices; however, good companies selling at good prices were difficult to find
over the past few months. In this environment, we tended to focus more on
earnings growth.
-------------------------------------
THE NEAR-TERM OUTLOOK FOR STOCKS
COULD DEPEND TO A LARGE EXTENT ON
THE FED'S ABILITY TO BRING THE
ECONOMY TO A "SOFT LANDING."
-------------------------------------
FUND PERFORMANCE
NET ASSETS GROW
6/30/99-6/30/00
================================================================================
6/30/99 $23.2 billion
12/31/99 $27.8 billion
6/30/00 $29.6 billion
================================================================================
RESULTS OF A $10,000 INVESTMENT
CLASS A SHARES VS. INDEX
6/30/90-6/30/00
================================================================================
AIM VALUE FUND CLASS A SHARES $56,699
S&P 500 INDEX $51,395
================================================================================
AVERAGE ANNUAL TOTAL RETURNS
For periods ended 6/30/00, including sales charges
================================================================================
CLASS A SHARES
Inception (5/1/84) 18.71%
10 years 18.95
5 years 20.39
1 year 6.80*
*13.02% excluding sales charges
CLASS B SHARES
Inception (10/18/93) 18.96%
5 years 20.60
1 year 7.12*
*12.12% excluding CDSC
CLASS C SHARES
Inception (8/4/97) 19.65%
1 year 11.14*
*12.14 excluding CDSC
Past performance cannot guarantee comparable future results.
================================================================================
MARKET VOLATILITY CAN SIGNIFICANTLY IMPACT SHORT-TERM PERFORMANCE. RESULTS
OF AN INVESTMENT MADE TODAY MAY DIFFER SUBSTANTIALLY FROM THE HISTORICAL
PERFORMANCE SHOWN.
See important fund and index disclosures inside front cover.
AIM VALUE FUND
2
<PAGE> 5
SEMIANNUAL REPORT / MANAGERS' OVERVIEW
To concentrate on our best-performing companies, we kept the number of
holdings at about 50. The fund's major industries continued to be broadcasting,
technology, retail and finance.
BESIDES MARKET VOLATILITY, WHAT OTHER FACTORS AFFECTED FUND PERFORMANCE?
Our holdings in cable TV hurt performance in the second quarter of 2000.
Cable-TV stocks such as fund holdings Comcast and Cox Communications took a hit
near the end of the reporting period because of concerns over cash-flow growth
and competition from satellite companies. Even though short-term performance
disappointed, we believe that the long-term prospects for these firms and cable
stocks in general are strong, especially as cable companies enter the telephone
business.
In addition, the fund was underweighted in health-care stocks, particularly
drug manufacturers, an area that performed well during the past six months. We
were cautious about this industry because of political risks: Congress and
President Clinton continue to dicker over how to add a Medicare drug benefit
into the current system. In addition, drug companies face increasing pressure
from consumers to lower prices.
WHAT STOCKS PERFORMED WELL FOR THE FUND?
Our semiconductor holdings such as Analog Devices and Applied Materials
benefited from strong demand for computer chips, increased earnings and rising
stock prices. Cellular-phone maker Nokia and mobile-phone service provider
Nextel also reported excellent earnings, propelled by the explosive growth of
the wireless-telecommunications market.
We also continued to hold Target because the company shows strong earnings
growth, and its stock is selling at a reasonable price. Formerly Dayton Hudson,
the company changed its name in January to Target. We anticipate that the name
change will benefit the stock, as more investors connect the stock name with the
successful retailer.
Another long-time fund holding, Tyco, continues to show earnings growth.
After the end of the reporting period, its stock price jumped on news that the
Securities and Exchange Commission had dropped its inquiry into Tyco's
accounting practices, essentially vindicating the company. The diversified
corporation has interests in electronics, plastics, valves and pipes, and fire
and security products.
WHAT IS YOUR OUTLOOK FOR THE NEAR TERM?
The near-term outlook for stocks could depend to a large extent on the Fed's
ability to bring the economy to a "soft landing." There are signs that the
economy could be slowing. Consequently, the Fed may wind down its tightening
cycle, although the central bank could approve one or two more rate hikes in the
months ahead. If the Fed succeeds in slowing economic growth to a more
sustainable rate and in keeping inflation under control, it could prolong the
current record economic expansion. Such an environment could prove favorable for
stocks.
However, uncertainty over the Fed's actions and other factors could
perpetuate the volatility that has characterized markets in recent months. In
such an environment, investors would be well advised to maintain a long-term
perspective on their investment.
PORTFOLIO COMPOSITION
As of 6/30/00, based on total net assets
<TABLE>
<CAPTION>
================================================================================================================
TOP 10 HOLDINGS TOP 10 INDUSTRIES
----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
1. Comcast Corp.-Class A 6.15% 1. Broadcasting (Television, Radio & Cable) 10.33%
2. Nextel Communications, Inc.-Class A 5.78 2. Computers (Hardware) 8.63
3. Nokia Oyj-ADR (Finland) 5.44 3. Communications Equipment 7.67
4. Target Corp. 4.35 4. Retail (General Merchandise) 6.38
5. Cox Communications, Inc.-Class A 4.18 5. Telecommunications (Cellular/Wireless) 5.78
6. Tyco International Ltd. (Bermuda) 3.92 6. Electronics (Semiconductors) 4.50
7. Apple Computer, Inc. 3.53 7. Equipment (Semiconductor) 4.24
8. Morgan Stanley Dean Witter & Co. 3.48 8. Investment Banking/Brokerage 4.22
9. First Data Corp. 2.88 9. Manufacturing (Diversified) 3.92
10. Analog Devices, Inc. 2.78 10. Services (Data Processing) 3.64
The fund's portfolio composition is subject to change, and there is no assurance
that the fund will continue to hold any particular security.
================================================================================================================
</TABLE>
See important fund and index disclosures inside front cover.
AIM VALUE FUND
3
<PAGE> 6
SEMIANNUAL REPORT / FOR CONSIDERATION
CHASING PERFORMANCE MAY HURT MORE THAN IT HELPS
In the wake of some of last year's eye-popping mutual fund returns of more than
100%, it may be hard to look at your own returns and not feel disappointed.
According to Lipper, Inc.(1), the average large-cap core mutual fund finished
1999 up 22.35%--a return that would be considered terrific in most other
years--while the average science and technology fund had an astounding return of
134.77% for the year. Industry trends point to the fact that some investors have
looked at such performance and said, "My investments haven't had that kind of
return. I need to change my portfolio." What's an investor to do?
LOOK AT THE BIG PICTURE
It's very tempting to look only at returns when you invest in a mutual fund. But
there are other factors to consider:
o How well does the fund match my financial goals?
Different kinds of mutual funds are appropriate for different people at
different stages. Are you a young adult early in your work life, or are you
approaching retirement? Are you investing to buy a house, car or other large
item soon, or are you investing for your later years?
If your investment plan has a rather long time horizon, you may be able to
invest more aggressively because you could have time to recoup should you
experience losses. If your needs are more immediate, you should assess how
aggressive you can afford to be--you may need to be more conservative than you
thought to meet your goal.
o How well does the fund match my tolerance for risk?
Many of the mutual funds that had such high-flying returns for 1999 are pretty
aggressive, investing in smaller, less-established companies, some of which have
not even realized a profit. So while these mutual funds have the potential to
make your money grow, they may also entail more risk than you may be prepared to
take.
Of course, investing in any mutual fund brings with it a certain amount of
risk, but this risk can vary widely depending on the types of holdings in which
a fund invests. It's important that you take a hard look at your risk tolerance
before investing in any fund, particularly if you are ratcheting up to a more
aggressive fund.
o How well does the fund fit into my portfolio?
When a market sector or mutual fund is doing well, you may be tempted to
overload your portfolio with the "winner of the moment." It seems to make
sense--you're making money with that investment so you should allocate more
money to it, right?
Be careful. A narrowly invested portfolio could be especially vulnerable to
market volatility. Spreading your investment over several types of funds or
investing in one diversified fund can help you spread out your risk--the more
diversified your portfolio, the less overlap it should have. Less overlap can
mean less risk.
PAST PERFORMANCE IS NO GUARANTEE
Last year's phenomenal returns were the result of a number of unique factors--
the strong U.S. economy, the proliferation of new technology companies and
record amounts of cash being poured into the stock market, to name a few. Even
so, it may seem that everyone came out a winner in 1999.
In reality, just a few large companies accounted for many of the markets'
records in 1999. More than half the stocks in the S&P 500(2) declined during the
year. The technology sector was clearly dominant--the tech component of the S&P
500 finished 1999 with a return of 75.11%, while the capital goods component of
the index, which came in second for the year, had a return of 28.76%.(3) So if
you didn't invest in technology in 1999, you probably didn't enjoy the same
performance as people who did.
As we've seen thus far in 2000, financial markets can be quite fickle,
revolving around investors' perceptions as much as hard facts. Because of the
ever-changing nature of the market environment, many high-performing mutual
funds don't repeat their gains from year to year. This doesn't necessarily mean
a fund had a "bad" year or that fund managers chose
================================================================================
SEC SPEAKS OUT
In the wake of 1999's extraordinary fund performances, the Securities and
Exchange Commission (SEC), which regulates the mutual fund industry, says that
investors should temper their expectations and not make investment decisions
based only on past performance. The SEC also suggests that investors consider
the following factors when looking at a mutual fund:
Age
Risk
Size
Volatility
Management
Expenses
Tax Efficiency
Source: The Wall Street Journal, 1/25/00
================================================================================
AIM VALUE FUND
4
<PAGE> 7
SEMIANNUAL REPORT / FOR CONSIDERATION
holdings poorly. It may just mean that the environment for a particular fund was
not as ideal as it had been in the past. This can be true for any mutual fund.
KEEP EXPECTATIONS REALISTIC
Along with recognizing how quickly the market environment can change, it's
important to keep your expectations realistic. Of course you would like your
investments to do well every year, but chances are they won't. It's the nature
of the beast. So what you should be shooting for is good performance over the
long term. While your investment may not have a stellar year every year, over
time its average returns may prove to be just what you hoped for.
Sometimes it's hard to be patient when it seems like everyone else's
investments are doing better than yours. You may be tempted to chase winning
performance by trying to time the market, switching in and out of funds as
markets or sectors go in and out of favor. But this strategy can greatly
increase your risk and it rarely works--you may end up with significantly lower
returns than if you'd just stayed put. (There can also be adverse tax
consequences.)
ASSET ALLOCATION: THE OLD STANDBY
The truth is, no one knows for sure what is going to perform well in the market,
which is why mutual fund investors should diversify using asset
allocation--spreading investments over several fund types (e.g., core, growth,
international and income). Unfortunately, some investors seem less interested in
asset allocation these days because they want to chase performance instead. And
when the market is roaring ahead, who can blame them?
But as Isaac Newton proved, what goes up must come down. A diversified
portfolio can offer some protection in a market downturn because when your
assets are spread over several different types of funds, chances are at least
one of them is keeping its head above water. And while a diversified fund
portfolio probably won't perform as well as the flashiest stock fund, it
probably won't do as badly as the worst of them either.
Your financial advisor can help you determine what kinds of mutual funds best
fit your investment goals and risk tolerance. Talk to your financial advisor for
more information.
(1) Lipper, Inc. is an independent mutual fund performance monitor.
(2) The unmanaged Standard & Poor's Composite Index of 500 Stocks (the S&P 500)
is generally considered representative of the stock market.
(3) Source: Bloomberg.
DOLLAR-COST AVERAGING CAN LOWER THE COST OF INVESTING
One useful way to buy shares of a mutual fund is through dollar-cost averaging.
In such a plan, you invest a certain amount at regular intervals--say $200 per
month--which allows you to buy more shares when mutual fund prices go down and
fewer shares when prices go up. This gives you the benefit of your average cost
per share actually being less than the average price per share.
Please keep in mind that this example is hypothetical and is not indicative of
the performance of any investment, IRA or AIM fund. Dollar-cost averaging does
not assure a profit and does not protect against loss in declining markets.
Since dollar-cost averaging involves continuous investing regardless of
fluctuating securities prices, investors should consider their ability to
continue purchases over an extended period of time.
For more complete information about any AIM fund(s), including sales charges and
expenses, ask your financial advisor or securities dealer for a free
prospectus(es). Please read the prospectus(es) carefully before you invest or
send money.
================================================================================
MONTH AMOUNT INVESTED SHARE PRICE SHARES PURCHASED
--------------------------------------------------------------------------------
JANUARY $ 200 $ 24 8.333
FEBRUARY 200 20 10.000
MARCH 200 14 14.286
APRIL 200 18 11.111
MAY 200 22 9.091
JUNE 200 24 8.333
6-MONTH TOTAL $1200 $122 61.154
Average price per share: $122 divided by 6 = $20.33
Average cost per share: $1200 divided by 61.154 = $19.62
================================================================================
AIM VALUE FUND
5
<PAGE> 8
SCHEDULE OF INVESTMENTS
JUNE 30, 2000
(UNAUDITED)
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
DOMESTIC COMMON STOCKS-75.79%
BANKS (MONEY CENTER)-1.75%
Chase Manhattan Corp. (The) 11,250,000 $ 518,203,125
----------------------------------------------------------------
BROADCASTING (TELEVISION, RADIO
& CABLE)-10.33%
Comcast Corp.-Class A(a)(b) 45,000,000 1,822,500,000
----------------------------------------------------------------
Cox Communications, Inc.-Class
A(a) 27,188,900 1,238,794,256
----------------------------------------------------------------
3,061,294,256
----------------------------------------------------------------
COMPUTERS (HARDWARE)-8.63%
Apple Computer, Inc.(a)(b) 20,000,000 1,047,500,000
----------------------------------------------------------------
Dell Computer Corp.(a) 14,127,800 696,677,137
----------------------------------------------------------------
Gateway, Inc.(a) 7,605,750 431,626,313
----------------------------------------------------------------
Sun Microsystems, Inc.(a) 4,200,000 381,937,500
----------------------------------------------------------------
2,557,740,950
----------------------------------------------------------------
COMPUTERS (PERIPHERALS)-2.40%
EMC Corp.(a) 1,157,600 89,062,850
----------------------------------------------------------------
Lexmark International Group,
Inc.-Class A(a)(b) 9,254,100 622,338,225
----------------------------------------------------------------
711,401,075
----------------------------------------------------------------
COMPUTERS (SOFTWARE &
SERVICES)-1.93%
At Home Corp.-Series A(a) 16,500,000 342,375,000
----------------------------------------------------------------
Citrix Systems, Inc.(a) 2,000,000 37,875,000
----------------------------------------------------------------
Oracle Corp.(a) 1,500,000 126,093,750
----------------------------------------------------------------
Unisys Corp.(a) 4,500,000 65,531,250
----------------------------------------------------------------
571,875,000
----------------------------------------------------------------
ELECTRICAL EQUIPMENT-0.79%
Solectron Corp.(a) 5,600,000 234,500,000
----------------------------------------------------------------
ELECTRONICS
(SEMICONDUCTORS)-3.22%
Analog Devices, Inc.(a) 10,851,900 824,744,400
----------------------------------------------------------------
Texas Instruments Inc. 1,900,000 130,506,250
----------------------------------------------------------------
955,250,650
----------------------------------------------------------------
ENTERTAINMENT-0.18%
Time Warner Inc. 698,700 53,101,200
----------------------------------------------------------------
EQUIPMENT (SEMICONDUCTOR)-4.24%
Applied Materials, Inc.(a) 9,009,900 816,522,188
----------------------------------------------------------------
Teradyne, Inc.(a) 5,976,700 439,287,450
----------------------------------------------------------------
1,255,809,638
----------------------------------------------------------------
FINANCIAL (DIVERSIFIED)-2.64%
American Express Co. 7,500,000 390,937,500
----------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
FINANCIAL
(DIVERSIFIED)-(CONTINUED)
Citigroup Inc. 6,500,000 $ 391,625,000
----------------------------------------------------------------
782,562,500
----------------------------------------------------------------
HEALTH CARE (DIVERSIFIED)-1.09%
Johnson & Johnson 3,180,800 324,044,000
----------------------------------------------------------------
HEALTH CARE (DRUGS-MAJOR
PHARMACEUTICALS)-2.11%
Pfizer Inc. 13,000,000 624,000,000
----------------------------------------------------------------
HEALTH CARE (MEDICAL PRODUCTS &
SUPPLIES)-1.92%
Guidant Corp.(a) 11,500,000 569,250,000
----------------------------------------------------------------
HOUSEHOLD PRODUCTS (NON-
DURABLES)-1.11%
Colgate-Palmolive Co. 1,200,000 71,850,000
----------------------------------------------------------------
Kimberly-Clark Corp. 4,500,000 258,187,500
----------------------------------------------------------------
330,037,500
----------------------------------------------------------------
INSURANCE (MULTI-LINE)-2.85%
American International Group,
Inc. 6,750,000 793,125,000
----------------------------------------------------------------
Hartford Financial Services
Group, Inc. (The) 900,000 50,343,750
----------------------------------------------------------------
843,468,750
----------------------------------------------------------------
INVESTMENT
BANKING/BROKERAGE-4.22%
Merrill Lynch & Co., Inc. 1,900,000 218,500,000
----------------------------------------------------------------
Morgan Stanley Dean Witter &
Co. 12,400,000 1,032,300,000
----------------------------------------------------------------
1,250,800,000
----------------------------------------------------------------
NATURAL GAS-1.55%
Williams Cos., Inc. (The) 11,000,000 458,562,500
----------------------------------------------------------------
OIL & GAS (DRILLING &
EQUIPMENT)-0.39%
Schlumberger Ltd. 1,532,400 114,355,350
----------------------------------------------------------------
PAPER & FOREST PRODUCTS-0.24%
Weyerhaeuser Co. 1,670,000 71,810,000
----------------------------------------------------------------
PHOTOGRAPHY/IMAGING-0.23%
Eastman Kodak Co. 1,142,200 67,960,900
----------------------------------------------------------------
RETAIL (BUILDING
SUPPLIES)-0.06%
Lowe's Cos., Inc. 435,300 17,874,506
----------------------------------------------------------------
RETAIL (COMPUTERS &
ELECTRONICS)-2.18%
Best Buy Co., Inc.(a) 10,190,300 644,536,475
----------------------------------------------------------------
</TABLE>
6
<PAGE> 9
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
RETAIL (DRUG STORES)-1.76%
Walgreen Co. 16,231,000 $ 522,435,313
----------------------------------------------------------------
RETAIL (FOOD CHAINS)-2.30%
Kroger Co. (The)(a) 11,500,000 253,718,750
----------------------------------------------------------------
Safeway Inc.(a) 9,500,000 428,687,500
----------------------------------------------------------------
682,406,250
----------------------------------------------------------------
RETAIL (GENERAL
MERCHANDISE)-6.38%
Costco Wholesale Corp.(a) 18,146,800 598,844,400
----------------------------------------------------------------
Target Corp. 22,248,000 1,290,384,000
----------------------------------------------------------------
1,889,228,400
----------------------------------------------------------------
SERVICES (ADVERTISING/
MARKETING)-1.87%
Omnicom Group Inc. 6,208,800 552,971,250
----------------------------------------------------------------
SERVICES (DATA
PROCESSING)-3.64%
Automatic Data Processing, Inc. 4,200,000 224,962,500
----------------------------------------------------------------
First Data Corp. 17,200,000 853,550,000
----------------------------------------------------------------
1,078,512,500
----------------------------------------------------------------
TELECOMMUNICATIONS (CELLULAR/
WIRELESS)-5.78%
Nextel Communications,
Inc.-Class A(a) 28,000,000 1,713,250,000
----------------------------------------------------------------
Total Domestic Common Stocks
(Cost $17,360,600,180) 22,457,242,088
----------------------------------------------------------------
FOREIGN STOCKS & OTHER EQUITY
INTERESTS-12.95%
BERMUDA-3.92%
Tyco International Ltd.
(Manufacturing-Diversified) 24,500,000 1,160,687,500
----------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
CANADA-3.59%
360networks Inc.
(Telecommunications-Long
Distance)(a) 1,757,400 $ 26,800,350
----------------------------------------------------------------
Celestica Inc.
(Electronics-Semiconductors)(a) 7,600,000 377,150,000
----------------------------------------------------------------
Nortel Networks Corp.
(Communications Equipment) 9,689,300 661,294,725
----------------------------------------------------------------
1,065,245,075
----------------------------------------------------------------
FINLAND-5.44%
Nokia Oyj-ADR (Communications
Equipment) 32,272,700 1,611,617,956
----------------------------------------------------------------
Total Foreign Stocks & Other
Equity Interests (Cost
$1,995,069,524) 3,837,550,531
----------------------------------------------------------------
MONEY MARKET FUNDS-11.90%
STIC Liquid Assets Portfolio(c) 1,763,215,408 1,763,215,408
----------------------------------------------------------------
STIC Prime Portfolio(c) 1,763,215,408 1,763,215,408
----------------------------------------------------------------
Total Money Market Funds (Cost
$3,526,430,816) 3,526,430,816
----------------------------------------------------------------
TOTAL INVESTMENTS-100.64%
(Cost $22,882,100,520) 29,821,223,435
----------------------------------------------------------------
LIABILITIES LESS OTHER
ASSETS-(0.64%) (188,412,801)
----------------------------------------------------------------
NET ASSETS-100.00% $29,632,810,634
================================================================
</TABLE>
Investment Abbreviation:
ADR - American Depositary Receipt
Notes to Schedule of Investments:
(a)Non-income producing security.
(b)Affiliated issuers are those in which the Fund's holdings of an issuer
represent 5% or more of the outstanding voting securities of the issuer. The
Fund has not owned enough of the outstanding voting securities of the issuer
to have control (as defined in the Investment Company Act of 1940) of that
issuer. The aggregate market value of these securities at 06/30/00 was
$3,492,338,225 which represented 11.79% of the Fund's net assets.
(c)The money market fund has the same investment advisor as the Fund.
See Notes to Financial Statements.
7
<PAGE> 10
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 2000
(UNAUDITED)
<TABLE>
<S> <C>
ASSETS:
Investments, at market value (cost
$22,882,100,520) $29,821,223,435
----------------------------------------------------------
Receivables for:
Investments sold 239,298,145
----------------------------------------------------------
Collateral for securities loaned 147,712,500
----------------------------------------------------------
Fund shares sold 70,104,384
----------------------------------------------------------
Dividends and interest 17,998,796
----------------------------------------------------------
Investment for deferred compensation plan 219,447
----------------------------------------------------------
Other assets 1,771,120
----------------------------------------------------------
Total assets 30,298,327,827
----------------------------------------------------------
LIABILITIES:
Payables for:
Investments purchased 391,248,330
----------------------------------------------------------
Collateral upon return of securities
loaned 147,712,500
----------------------------------------------------------
Fund shares reacquired 41,325,510
----------------------------------------------------------
Foreign currency contracts 23,122,250
----------------------------------------------------------
Foreign currency contracts outstanding 15,249,663
----------------------------------------------------------
Deferred compensation plan 219,447
----------------------------------------------------------
Accrued advisory fees 14,698,512
----------------------------------------------------------
Accrued administrative services fees 81,586
----------------------------------------------------------
Accrued distribution fees 27,771,025
----------------------------------------------------------
Accrued trustees' fees 17,808
----------------------------------------------------------
Accrued transfer agent fees 3,090,963
----------------------------------------------------------
Accrued operating expenses 979,599
----------------------------------------------------------
Total liabilities 665,517,193
----------------------------------------------------------
Net assets applicable to shares
outstanding $29,632,810,634
==========================================================
NET ASSETS:
Class A $13,179,118,202
==========================================================
Class B $15,045,846,702
==========================================================
Class C $ 1,407,845,730
==========================================================
SHARES OUTSTANDING, $0.01 PAR VALUE PER
SHARE:
Class A 270,965,434
==========================================================
Class B 321,290,347
==========================================================
Class C 30,050,887
==========================================================
Class A:
Net asset value and redemption price
per share $ 48.64
----------------------------------------------------------
Offering price per share:
(Net asset value of $48.64 divided
by 94.50%) $ 51.47
==========================================================
Class B:
Net asset value and offering price per
share $ 46.83
==========================================================
Class C:
Net asset value and offering price per
share $ 46.85
==========================================================
</TABLE>
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2000
(UNAUDITED)
<TABLE>
<S> <C>
INVESTMENT INCOME:
Dividends (net of foreign withholding tax
of $1,171,572) $ 118,821,805
----------------------------------------------------------
Security lending income 5,559
----------------------------------------------------------
Total investment income 118,827,364
----------------------------------------------------------
EXPENSES:
Advisory fees 90,852,320
----------------------------------------------------------
Administrative services fee 486,487
----------------------------------------------------------
Custodian fees 638,270
----------------------------------------------------------
Distribution fees -- Class A 16,257,781
----------------------------------------------------------
Distribution fees -- Class B 73,947,416
----------------------------------------------------------
Distribution fees -- Class C 5,815,346
----------------------------------------------------------
Transfer agent fees -- Class A 7,049,274
----------------------------------------------------------
Transfer agent fees -- Class B 11,520,807
----------------------------------------------------------
Transfer agent fees -- Class C 906,688
----------------------------------------------------------
Trustees' fees 34,495
----------------------------------------------------------
Other 3,177,298
----------------------------------------------------------
Total expenses 210,686,182
----------------------------------------------------------
Less: Fees waived by advisor (3,379,542)
----------------------------------------------------------
Expenses paid indirectly (200,309)
----------------------------------------------------------
Net expenses 207,106,331
----------------------------------------------------------
Net investment income (loss) (88,278,967)
----------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENT SECURITIES, FOREIGN CURRENCY
CONTRACTS AND OPTION CONTRACTS
Net realized gain from:
Investment securities 2,006,329,041
----------------------------------------------------------
Foreign currency contracts 167,189,435
----------------------------------------------------------
Option contracts written 2,054,631
----------------------------------------------------------
2,175,573,107
----------------------------------------------------------
Change in net unrealized appreciation
(depreciation) of:
Investment securities (2,204,825,230)
----------------------------------------------------------
Foreign currency contracts (84,198,640)
----------------------------------------------------------
(2,289,023,870)
----------------------------------------------------------
Net gain (loss) on investment securities,
foreign currency contracts and option
contracts (113,450,763)
----------------------------------------------------------
Net increase (decrease) in net assets
resulting from operations $ (201,729,730)
==========================================================
</TABLE>
See Notes to Financial Statements.
8
<PAGE> 11
STATEMENT OF CHANGES IN NET ASSETS
FOR THE SIX MONTHS ENDED JUNE 30, 2000 AND THE YEAR ENDED DECEMBER 31, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
JUNE 30, DECEMBER 31,
2000 1999
--------------- ---------------
<S> <C> <C>
OPERATIONS:
Net investment income (loss) $ (88,278,967) $ (115,945,323)
--------------------------------------------------------------------------------------------------
Net realized gain from investment securities, foreign
currency contracts and option contracts 2,175,573,107 2,580,583,708
--------------------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) of
investment securities, foreign currency contracts and
option contracts (2,289,023,870) 3,559,362,924
--------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
operations (201,729,730) 6,024,001,309
--------------------------------------------------------------------------------------------------
Distributions to shareholders from net realized gains:
Class A -- (788,853,278)
--------------------------------------------------------------------------------------------------
Class B -- (918,638,257)
--------------------------------------------------------------------------------------------------
Class C -- (52,550,069)
--------------------------------------------------------------------------------------------------
Share transactions-net:
Class A 598,571,109 1,781,344,407
--------------------------------------------------------------------------------------------------
Class B 833,307,858 2,515,709,918
--------------------------------------------------------------------------------------------------
Class C 563,643,077 562,747,820
--------------------------------------------------------------------------------------------------
Net increase in net assets 1,793,792,314 9,123,761,850
--------------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 27,839,018,320 18,715,256,470
--------------------------------------------------------------------------------------------------
End of period $29,632,810,634 $27,839,018,320
==================================================================================================
NET ASSETS CONSIST OF:
Shares of beneficial interest $19,880,460,414 $17,884,938,370
--------------------------------------------------------------------------------------------------
Undistributed net investment income (loss) (88,856,301) (577,334)
--------------------------------------------------------------------------------------------------
Undistributed net realized gain from investment
securities, foreign currency contracts and option
contracts 2,917,333,269 741,760,162
--------------------------------------------------------------------------------------------------
Unrealized appreciation of investment securities, foreign
currency contracts and option contracts 6,923,873,252 9,212,897,122
--------------------------------------------------------------------------------------------------
$29,632,810,634 $27,839,018,320
==================================================================================================
</TABLE>
See Notes to Financial Statements.
9
<PAGE> 12
NOTES TO FINANCIAL STATEMENTS
June 30, 2000
(Unaudited)
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES
AIM Value Fund (the "Fund") is a series portfolio of AIM Funds Group (the
"Trust"). The Trust is a Delaware business trust registered under the Investment
Company Act of 1940, as amended (the "1940 Act"), as an open-end series
management investment company consisting of four separate portfolios, each
having an unlimited number of shares of beneficial interest. The Fund currently
offers three different classes of shares: Class A shares, Class B shares and
Class C shares. Class A shares are sold with a front-end sales charge. Class B
shares and Class C shares are sold with a contingent deferred sales charge.
Matters affecting each portfolio or class will be voted on exclusively by the
shareholders of such portfolio or class. The assets, liabilities and operations
of each portfolio are accounted for separately. Information presented in these
financial statements pertains only to the Fund. The Fund's investment objective
is to achieve long-term growth of capital. Income is a secondary objective.
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenses during
the reporting period. Actual results could differ from those estimates. The
following is a summary of the significant accounting policies followed by the
Fund in the preparation of its financial statements.
A. Security Valuations -- A security listed or traded on an exchange (except
convertible bonds) is valued at its last sales price as of the close of the
customary trading session on the exchange where the security is principally
traded, or lacking any sales on a particular day, the security is valued at
the closing bid price on that day. Each security reported on the NASDAQ
National Market System is valued at the last sales price as of the close of
the customary trading session on the valuation date or absent a last sales
price, at the closing bid price. Debt obligations (including convertible
bonds) are valued on the basis of prices provided by an independent pricing
service. Prices provided by the pricing service may be determined without
exclusive reliance on quoted prices, and may reflect appropriate factors such
as yield, type of issue, coupon rate and maturity date. Securities for which
market prices are not provided by any of the above methods are valued based
upon quotes furnished by independent sources and are valued at the last bid
price in the case of equity securities and in the case of debt obligations,
the mean between the last bid and asked prices. Securities for which market
quotations are not readily available or are questionable are valued at fair
value as determined in good faith by or under the supervision of the Trust's
officers in a manner specifically authorized by the Board of Trustees.
Short-term obligations having 60 days or less to maturity are valued at
amortized cost which approximates market value. For purposes of determining
net asset value per share, futures and option contracts generally will be
valued 15 minutes after the close of the customary trading session of the New
York Stock Exchange ("NYSE").
Generally, trading in foreign securities is substantially completed each
day at various times prior to the close of the NYSE. The values of such
securities used in computing the net asset value of the Fund's shares are
determined as of such times. Foreign currency exchange rates are also
generally determined prior to the close of the NYSE. Occasionally, events
affecting the values of such securities and such exchange rates may occur
between the times at which they are determined and the close of the customary
trading session of the NYSE which would not be reflected in the computation
of the Fund's net asset value. If events materially affecting the value of
such securities occur during such period, then these securities will be
valued at their fair value as determined in good faith by or under the
supervision of the Board of Trustees.
B. Securities Transactions and Investment Income -- Securities transactions are
accounted for on a trade date basis. Realized gains or losses on sales are
computed on the basis of specific identification of the securities sold.
Interest income is recorded on the accrual basis from settlement date.
Dividend income is recorded on the ex-dividend date.
C. Distributions -- Distributions from income and net realized capital gains, if
any, are generally paid annually and recorded on ex-dividend date. The Fund
may elect to use a portion of the proceeds from redemptions as distributions
for federal income tax purposes.
D. Federal Income Taxes -- The Fund intends to comply with the requirements of
the Internal Revenue Code necessary to qualify as a regulated investment
company and, as such, will not be subject to federal income taxes on
otherwise taxable income (including net realized capital gains) which is
distributed to shareholders. Therefore, no provision for federal income taxes
is recorded in the financial statements.
E. Foreign Currency Translations -- Portfolio securities and other assets and
liabilities denominated in foreign currencies are translated into U.S. dollar
amounts at date of valuation. Purchases and sales of portfolio securities and
income items denominated in foreign currencies are translated into U.S.
dollar amounts on the respective dates of such transactions. The Fund does
not separately account for the portion of the results of operations resulting
from changes in foreign exchange rates on investments and the fluctuations
arising from changes in market prices of securities held. Such fluctuations
are included with the net realized and unrealized gain or loss from
investments.
F. Foreign Currency Contracts -- A foreign currency contract is an obligation to
purchase or sell a specific currency for an agreed-upon price at a future
date. The Fund may enter into a
10
<PAGE> 13
foreign currency contract to attempt to minimize the risk to the Fund from
adverse changes in the relationship between currencies. The Fund may also
enter into a foreign currency contract for the purchase or sale of a security
denominated in a foreign currency in order to "lock in" the U.S. dollar price
of that security. The Fund could be exposed to risk if counterparties to the
contracts are unable to meet the terms of their contracts or if the value of
the foreign currency changes unfavorably.
Outstanding foreign currency contracts at June 30, 2000 were as follows:
<TABLE>
<CAPTION>
CONTRACT TO UNREALIZED
SETTLEMENT ------------------------------ APPRECIATION
DATE CURRENCY DELIVER RECEIVE VALUE (DEPRECIATION)
--------------------- -------- ------------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C>
09/29/00 CAD 999,250,000 $ 675,207,719 $ 677,086,822 $ (1,879,103)
--------------------------------------------------------------------------------------------------
08/28/00 EUR 971,500,000 916,758,880 929,137,742 (12,378,862)
--------------------------------------------------------------------------------------------------
10/03/00 EUR 643,500,000 615,813,600 616,805,298 (991,698)
==================================================================================================
2,614,250,000 $2,207,780,199 $2,223,029,862 $(15,249,663)
==================================================================================================
</TABLE>
G. Covered Call Options -- The Fund may write call options, 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 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.
H. Expenses -- Distribution expenses and certain transfer agency expenses
directly attributable to a class of shares are charged to those classes'
operations. All other expenses which are attributable to more than one class
are allocated among the classes.
NOTE 2-ADVISORY FEES AND OTHER TRANSACTIONS WITH AFFILIATES
The Trust has entered into a master investment advisory agreement with A I M
Advisors, Inc. ("AIM"). Under the terms of the investment advisory agreement,
the Fund pays an advisory fee to AIM at the annual rate of 0.80% of the first
$150 million of the Fund's average daily net assets, plus 0.625% of the Fund's
average daily net assets in excess of $150 million. AIM has agreed to waive
advisory fees payable by the Fund to AIM at the annual rate of 0.025% of the
Fund's average daily net assets in excess of $2 billion. During the six months
ended June 30, 2000, AIM waived fees of $3,379,542. Effective July 1, 2000, AIM
has agreed to waive advisory fees payable by the Fund to AIM at the annual rate
of 0.025% for each $5 billion increment in net assets over $5 billion, up to a
maximum waiver of 0.175% on net assets in excess of $35 billion.
The Fund, pursuant to a master administrative services agreement with AIM,
has agreed to pay AIM for certain administrative costs incurred in providing
accounting services to the Fund. For the six months ended June 30, 2000, AIM was
paid $486,487 for such services.
The Fund, pursuant to a transfer agency and service agreement, has agreed to
pay A I M Fund Services, Inc. ("AFS") a fee for providing transfer agency and
shareholder services to the Fund. For the six months ended June 30, 2000, AFS
was paid $10,272,491 for such services.
The Trust has entered into master distribution agreements with A I M
Distributors, Inc. ("AIM Distributors") to serve as the distributor for the
Class A, Class B and Class C shares of the Fund. The Trust has adopted plans
pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund's Class A
shares, Class B shares and Class C shares (collectively the "Plans"). The Fund,
pursuant to the Plans, pays AIM Distributors compensation at the annual rate of
0.25% of the Fund's average daily net assets of Class A shares and 1.00% of the
average daily net assets of Class B and C shares. Of these amounts, the Fund may
pay a service fee of 0.25% of the average daily net assets of the Class A, Class
B or Class C shares to selected dealers and financial institutions who furnish
continuing personal shareholder services to their customers who purchase and own
the appropriate class of shares of the Fund. Any amounts not paid as a service
fee under the Plans would constitute an asset-based sales charge. The Plans also
impose a cap on the total sales charges, including asset-based sales charges
that may be paid by the respective classes. For the six months ended June 30,
2000, the Class A, Class B and Class C shares paid AIM Distributors $16,257,781,
$73,947,416 and $5,815,346, respectively, as compensation under the Plans.
11
<PAGE> 14
AIM Distributors received commissions of $4,634,493 from sales of the Class A
shares of the Fund during the six months ended June 30, 2000. Such commissions
are not an expense of the Fund. They are deducted from, and are not included in,
the proceeds from sales of Class A shares. During the six months ended June 30,
2000, AIM Distributors received $504,317 in contingent deferred sales charges
imposed on redemptions of Fund shares.
Certain officers and trustees of the Trust are officers and directors of AIM,
AFS and AIM Distributors.
During the six months ended June 30, 2000, the Fund paid legal fees of $21,575
for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the
Board of Trustees. A member of that firm is a trustee of the Trust.
NOTE 3-INDIRECT EXPENSES
For the six months ended June 30, 2000, the Fund received reductions in transfer
agency fees from AFS (an affiliate of AIM) and reductions in custodian fees of
$157,093 and $43,216, respectively, under expense offset arrangements which
resulted in a reduction of the Fund's total expenses of $200,309.
NOTE 4-TRUSTEES' FEES
Trustees' fees represent remuneration paid to trustees who are not an
"interested person" of AIM. The Trust invests trustees' fees, if so elected by a
trustee, in mutual fund shares in accordance with a deferred compensation plan.
NOTE 5-BANK BORROWINGS
The Fund is a participant in a committed line of credit facility with a
syndicate administered by Citibank, N.A. The Fund may borrow up to the lesser of
(i) $1,000,000,000 or (ii) the limits set by its prospectus for borrowings. The
Fund and other funds advised by AIM which are parties to the line of credit may
borrow on a first come, first served basis. During the six months ended June 30,
2000, the Fund did not borrow under the line of credit agreement. The funds
which are party to the line of credit are charged a commitment fee of 0.09% on
the unused balance of the committed line. The commitment fee is allocated among
the funds based on their respective average net assets for the period.
NOTE 6-PORTFOLIO SECURITIES LOANED
The Fund may lend portfolio securities to the extent of one-third of the
Fund's total assets. Such loans would be secured by collateral equal to no less
than the market value, determined daily, of the loaned securities. Such
collateral will be cash or debt securities issued or guaranteed by the U.S.
Government or any of its agencies. Cash collateral pursuant to these loans would
be invested in short-term money market instruments or affiliated money market
funds. Lending securities entails a risk of loss to the Fund if and to the
extent that the market value of the securities loaned were to increase and the
lender did not increase the collateral accordingly.
At June 30, 2000, securities with an aggregate value of $143,508,131 were on
loan to brokers. The loans were secured by cash collateral of $147,712,500
received by the Fund. For the six months ended June 30, 2000, the Fund received
fees of $5,559 for securities lending.
NOTE 7-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, 2000 was
$10,365,117,281 and $8,962,704,154, respectively.
The amount of unrealized appreciation (depreciation) of investment securities,
for tax purposes, as of June 30, 2000 is as follows:
<TABLE>
<S> <C>
Aggregate unrealized appreciation of:
Investment securities $7,468,216,888
----------------------------------------------------------
Aggregate unrealized (depreciation) of:
Investment securities (557,776,391)
----------------------------------------------------------
Net unrealized appreciation of investment
securities $6,910,440,497
==========================================================
Cost of investments for tax purposes is
$22,910,782,938.
</TABLE>
NOTE 8-CALL OPTION CONTRACTS
Transactions in call options written during the six months ended June 30, 2000
are summarized as follows:
<TABLE>
<CAPTION>
CALL OPTION CONTRACTS
------------------------
NUMBER OF PREMIUMS
CONTRACTS RECEIVED
--------- -----------
<S> <C> <C>
Beginning of period -- $ --
----------------------------------------------------------
Written 10,000 2,054,631
----------------------------------------------------------
Exercised (10,000) (2,054,631)
----------------------------------------------------------
End of period -- $ --
==========================================================
</TABLE>
12
<PAGE> 15
NOTE 9-SHARE INFORMATION
Changes in shares outstanding during the six months ended June 30, 2000 and the
year ended December 31, 1999 were as follows:
<TABLE>
<CAPTION>
JUNE 30, DECEMBER 31,
2000 1999
----------------------------- -----------------------------
SHARES AMOUNT SHARES AMOUNT
----------- --------------- ----------- ---------------
<S> <C> <C> <C> <C>
Sold:
Class A 37,036,705 $ 1,831,971,299 65,309,195 $ 2,905,872,208
---------------------------------------------------------------------------------------------------------------------------
Class B 37,058,764 1,765,032,348 67,138,813 2,915,628,481
---------------------------------------------------------------------------------------------------------------------------
Class C 13,471,717 642,296,830 13,738,072 600,569,156
---------------------------------------------------------------------------------------------------------------------------
Issued as reinvestment of dividends:
Class A -- -- 16,150,747 754,887,097
---------------------------------------------------------------------------------------------------------------------------
Class B -- -- 19,043,747 860,577,418
---------------------------------------------------------------------------------------------------------------------------
Class C -- -- 1,098,977 49,675,082
---------------------------------------------------------------------------------------------------------------------------
Reacquired:
Class A (24,922,261) (1,233,400,190) (42,137,878) (1,879,414,898)
---------------------------------------------------------------------------------------------------------------------------
Class B (19,537,739) (931,724,490) (29,076,106) (1,260,495,981)
---------------------------------------------------------------------------------------------------------------------------
Class C (1,652,310) (78,653,753) (2,008,443) (87,496,418)
---------------------------------------------------------------------------------------------------------------------------
41,454,876 $ 1,995,522,044 109,257,124 $ 4,859,802,145
===========================================================================================================================
</TABLE>
NOTE 10-FINANCIAL HIGHLIGHTS
The following schedule presents financial highlights for one share of the Fund
outstanding throughout the periods indicated.
<TABLE>
<CAPTION>
CLASS A
---------------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED DECEMBER 31,
JUNE 30, -------------------------------------------------------------------
2000 1999 1998 1997 1996(a) 1995
---------------- ----------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 48.83 $ 40.19 $ 32.42 $ 29.15 $ 26.81 $ 21.14
---------------------------------------- ----------- ----------- ---------- ---------- ---------- ----------
Income from investment operations:
Net investment income (loss) (0.04) (0.04) 0.09 0.17 0.43 0.14
---------------------------------------- ----------- ----------- ---------- ---------- ---------- ----------
Net gains (losses) on securities (both
realized and unrealized) (0.15) 11.93 10.38 6.78 3.42 7.21
---------------------------------------- ----------- ----------- ---------- ---------- ---------- ----------
Total from investment operations (0.19) 11.89 10.47 6.95 3.85 7.35
---------------------------------------- ----------- ----------- ---------- ---------- ---------- ----------
Less distributions:
Dividends from net investment income -- -- (0.09) (0.04) (0.41) (0.09)
---------------------------------------- ----------- ----------- ---------- ---------- ---------- ----------
Distributions from net realized gains -- (3.25) (2.61) (3.64) (1.10) (1.59)
---------------------------------------- ----------- ----------- ---------- ---------- ---------- ----------
Total distributions -- (3.25) (2.70) (3.68) (1.51) (1.68)
---------------------------------------- ----------- ----------- ---------- ---------- ---------- ----------
Net asset value, end of period $ 48.64 $ 48.83 $ 40.19 $ 32.42 $ 29.15 $ 26.81
======================================== =========== =========== ========== ========== ========== ==========
Total return(b) (0.39)% 29.95% 32.76% 23.95% 14.52% 34.85%
======================================== =========== =========== ========== ========== ========== ==========
Ratios/supplemental data:
Net assets, end of period (000s omitted) $13,179,118 $12,640,073 $8,823,094 $6,745,253 $5,100,061 $3,408,952
======================================== =========== =========== ========== ========== ========== ==========
Ratio of expenses to average net assets:
With fee waivers 1.00%(c) 1.00% 1.00% 1.04% 1.11% 1.12%
---------------------------------------- ----------- ----------- ---------- ---------- ---------- ----------
Without fee waivers 1.02%(c) 1.02% 1.02% 1.06% 1.13% 1.13%
======================================== =========== =========== ========== ========== ========== ==========
Ratio of net investment income (loss) to
average net assets (0.17)%(c) (0.09)% 0.26% 0.57% 1.65% 0.74%
======================================== =========== =========== ========== ========== ========== ==========
Portfolio turnover rate 33% 66% 113% 137% 126% 151%
======================================== =========== =========== ========== ========== ========== ==========
</TABLE>
(a) Calculated using average shares outstanding.
(b) Total returns are not annualized for periods less than one year.
(c) Ratios are annualized and based on average net assets of $13,077,687,445.
13
<PAGE> 16
NOTE 10-FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
CLASS B
---------------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED DECEMBER 31,
JUNE 30, -------------------------------------------------------------------
2000(a) 1999(a) 1998 1997 1996(a) 1995
---------------- ----------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 47.20 $ 39.24 $ 31.89 $ 28.92 $ 26.65 $ 21.13
---------------------------------------- ----------- ----------- ---------- ---------- ---------- ----------
Income from investment operations:
Net investment income (loss) (0.23) (0.39) (0.18) (0.07) 0.20 (0.01)
---------------------------------------- ----------- ----------- ---------- ---------- ---------- ----------
Net gains (losses) on securities (both
realized and unrealized) (0.14) 11.60 10.14 6.68 3.38 7.12
---------------------------------------- ----------- ----------- ---------- ---------- ---------- ----------
Total from investment operations (0.37) 11.21 9.96 6.61 3.58 7.11
---------------------------------------- ----------- ----------- ---------- ---------- ---------- ----------
Less distributions:
Dividends from net investment income -- -- -- -- (0.21) --
---------------------------------------- ----------- ----------- ---------- ---------- ---------- ----------
Distributions from net realized gains -- (3.25) (2.61) (3.64) (1.10) (1.59)
---------------------------------------- ----------- ----------- ---------- ---------- ---------- ----------
Total distributions -- (3.25) (2.61) (3.64) (1.31) (1.59)
---------------------------------------- ----------- ----------- ---------- ---------- ---------- ----------
Net asset value, end of period $ 46.83 $ 47.20 $ 39.24 $ 31.89 $ 28.92 $ 26.65
======================================== =========== =========== ========== ========== ========== ==========
Total return(b) (0.79)% 28.94% 31.70% 22.96% 13.57% 33.73%
======================================== =========== =========== ========== ========== ========== ==========
Ratios/supplemental data:
Net assets, end of period (000s omitted) $15,045,847 $14,338,087 $9,680,068 $6,831,796 $4,875,933 $2,860,531
======================================== =========== =========== ========== ========== ========== ==========
Ratio of expenses to average net assets:
With fee waivers 1.79%(c) 1.79% 1.80% 1.85% 1.94% 1.94%
---------------------------------------- ----------- ----------- ---------- ---------- ---------- ----------
Without fee waivers 1.81%(c) 1.81% 1.82% 1.87% 1.96% 1.96%
======================================== =========== =========== ========== ========== ========== ==========
Ratio of net investment income (loss) to
average net assets (0.97)%(c) (0.88)% (0.54)% (0.24)% 0.82% (0.08)%
======================================== =========== =========== ========== ========== ========== ==========
Portfolio turnover rate 33% 66% 113% 137% 126% 151%
======================================== =========== =========== ========== ========== ========== ==========
</TABLE>
(a) Calculated using average shares outstanding.
(b) Does not deduct contingent deferred sales charges and is not annualized for
periods less than one year.
(c) Ratios are annualized and based on average net assets of $14,870,744,134.
<TABLE>
<CAPTION>
CLASS C
------------------------------------------------------------------
YEAR ENDED AUGUST 4, 1997
SIX MONTHS ENDED DECEMBER 31, (DATE SALES COMMENCED)
JUNE 30, -------------------- TO DECEMBER 31,
2000(a) 1999(a) 1998(a) 1997
---------------- -------- -------- ----------------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 47.22 $ 39.26 $ 31.90 $ 35.60
------------------------------------------------------------ ---------- -------- -------- -------
Income from investment operations:
Net investment income (loss) (0.23) (0.39) (0.19) (0.01)
------------------------------------------------------------ ---------- -------- -------- -------
Net gains (losses) on securities (both realized and
unrealized) (0.14) 11.60 10.16 (0.05)
------------------------------------------------------------ ---------- -------- -------- -------
Total from investment operations (0.37) 11.21 9.97 (0.06)
------------------------------------------------------------ ---------- -------- -------- -------
Less distributions from net realized gains -- (3.25) (2.61) (3.64)
------------------------------------------------------------ ---------- -------- -------- -------
Net asset value, end of period $ 46.85 $ 47.22 $ 39.26 $ 31.90
============================================================ ========== ======== ======== =======
Total return(b) (0.79)% 28.92% 31.72% (0.08)%
============================================================ ========== ======== ======== =======
Ratios/supplemental data:
Net assets, end of period (000s omitted) $1,407,846 $860,859 $212,095 $32,900
============================================================ ========== ======== ======== =======
Ratio of expenses to average net assets:
With fee waivers 1.79%(c) 1.79% 1.80% 1.84%(d)
------------------------------------------------------------ ---------- -------- -------- -------
Without fee waivers 1.81%(c) 1.81% 1.82% 1.86%(d)
============================================================ ========== ======== ======== =======
Ratio of net investment income (loss) to average net assets (0.97)%(c) (0.88)% (0.54)% (0.23)%(d)
============================================================ ========== ======== ======== =======
Portfolio turnover rate 33% 66% 113% 137%
============================================================ ========== ======== ======== =======
</TABLE>
(a) Calculated using average shares outstanding.
(b) Does not deduct contingent deferred sales charges and is not annualized for
periods less than one year.
(c) Ratios are annualized and based on average net assets of $1,169,459,644.
(d) Annualized.
14
<PAGE> 17
PROXY RESULTS (UNAUDITED)
A Special Meeting of Shareholders of AIM Funds Group, a Delaware business trust
(the "Trust"), was held on May 3, 2000. The meeting was held for the following
purposes:
(1) To elect Trustees as follows: Charles T. Bauer, Bruce L. Crockett, Owen Daly
II, Edward K. Dunn, Jr., Jack M. Fields, Carl Frischling, Robert H. Graham,
Prema Mathai-Davis, Lewis F. Pennock and Louis S. Sklar.
(2) To approve a new Master Investment Advisory Agreement for AIM Value Fund
(the "Fund").
(3) To approve changing the fundamental investment restrictions of the Fund.
(4) To approve changing the investment objective of the Fund and making it
non-fundamental.
(5) To ratify the selection of KPMG LLP as independent accountants of the Fund
for the fiscal year ending in 2000.
The results of the proxy solicitation on the above matters were as follows:
<TABLE>
<CAPTION>
VOTES WITHHELD/
TRUSTEES/MATTER VOTES FOR AGAINST ABSTENTIONS
--------------- ------------- ---------- -----------
<S> <C> <C> <C> <C>
(1) Charles T. Bauer............................................ 1,514,464,534 N/A 46,493,668
Bruce L. Crockett........................................... 1,516,486,806 N/A 44,471,396
Owen Daly II................................................ 1,515,115,325 N/A 45,842,877
Edward K. Dunn, Jr. ........................................ 1,516,300,879 N/A 44,657,323
Jack M. Fields.............................................. 1,516,328,985 N/A 44,629,217
Carl Frischling............................................. 1,515,733,560 N/A 45,224,642
Robert H. Graham............................................ 1,516,470,809 N/A 44,487,393
Prema Mathai-Davis.......................................... 1,515,583,756 N/A 45,374,446
Lewis F. Pennock............................................ 1,516,458,889 N/A 44,499,313
Louis S. Sklar.............................................. 1,516,220,167 N/A 44,738,035
(2) Adjournment of approval of a new Investment Advisory
Agreement................................................... 191,756,409 4,816,012 108,195,950*
(3)(a) Adjournment of approval of changing the Fundamental
Restriction on Issuer Diversification....................... 187,717,392 6,540,842 110,510,137*
(3)(b) Adjournment of approval of changing the Fundamental
Restriction on Borrowing Money and Issuing Senior
Securities.................................................. 186,284,410 8,037,809 110,446,152*
(3)(c) Adjournment of changing or adding the Fundamental
Restriction on Underwriting Securities...................... 187,218,156 6,925,728 110,624,487*
(3)(d) Adjournment of changing or adding the Fundamental
Restriction on Industry Concentration....................... 187,505,371 6,702,153 110,560,847*
(3)(e) Adjournment of approval of changing the Fundamental
Restriction on Purchasing or Selling Real Estate............ 186,217,466 8,043,249 110,507,656*
(3)(f) Adjournment of approval of changing the Fundamental
Restriction on Purchasing or Selling Commodities and
Elimination of Fundamental Restriction on Puts and Calls.... 185,048,605 8,985,770 110,733,996*
(3)(g) Adjournment of approval of changing the Fundamental
Restriction on Making Loans................................. 184,779,726 8,944,132 111,044,513*
(3)(h) Adjournment of approval of a new Fundamental Investment
Restriction on Investing all of the Fund's assets in an
Open-End Fund............................................... 185,779,835 7,875,928 111,112,608*
(3)(i) Adjournment of approval of Elimination of Fundamental
Restriction on Margin Transactions.......................... 182,648,511 10,841,899 111,277,961*
(3)(j) Adjournment of approval of the Elimination of Fundamental
Restriction on Short Sales of Securities.................... 183,638,975 9,899,004 111,230,392*
(4) Adjournment of approval of changing the Investment Objective
and Making it Non-Fundamental............................... 183,529,516 10,693,894 110,554,961*
(5) Ratification of the selection of KPMG LLP as Independent
Accountants of the Fund..................................... 289,695,341 2,418,289 12,654,741
</TABLE>
15
<PAGE> 18
The Special Meeting of Shareholders of the Trust was reconvened on May 31,
2000. The following matters were then considered:
<TABLE>
<CAPTION>
VOTES WITHHELD/
MATTER VOTES FOR AGAINST ABSTENTIONS
------ ------------- ---------- -----------
<S> <C> <C> <C> <C>
(2) Approval of a new Investment Advisory Agreement............. 239,955,914 5,760,855 80,591,160*
(3)(a) Change to Fundamental Restriction on Issuer
Diversification............................................. 234,952,693 8,222,652 83,132,584*
(3)(b) Change to Fundamental Restriction on Borrowing Money and
Issuing Senior Securities................................... 233,192,994 10,067,830 83,047,105*
(3)(c) Change to or Addition of Fundamental Restriction on
Underwriting Securities..................................... 234,457,639 8,642,550 83,207,740*
(3)(d) Change to or Addition of Fundamental Restriction on Industry
Concentration............................................... 234,767,814 8,381,327 83,158,788*
(3)(e) Change to Fundamental Restriction on Purchasing or Selling
Real Estate................................................. 233,198,772 10,043,220 83,065,937*
(3)(f) Change to Fundamental Restriction on Purchasing or Selling
Commodities and Elimination of Fundamental Restriction on
Puts and Calls.............................................. 231,707,980 11,237,370 83,362,579*
(3)(g) Change to Fundamental Restriction on Making Loans........... 231,525,618 11,086,285 83,696,026*
(3)(h) Approval of a new Fundamental Investment Restriction on
Investing all of the Fund's assets in an Open-End Fund...... 232,828,307 9,613,226 83,866,396*
(3)(i) Elimination of Fundamental Restriction on Margin
Transactions................................................ 228,538,311 13,776,449 83,993,169*
(3)(j) Elimination of Fundamental Restriction on Short Sales of
Securities.................................................. 229,892,758 12,523,443 83,891,728*
(4) Approval of Changing the Investment Objective and Making it
Non-Fundamental............................................. 228,889,507 14,059,822 83,358,600*
</TABLE>
---------------
* Includes Broker Non-Votes.
16
<PAGE> 19
<TABLE>
<CAPTION>
BOARD OF TRUSTEES OFFICERS OFFICE OF THE FUND
<S> <C> <C>
Charles T. Bauer Charles T. Bauer 11 Greenway Plaza
Director and Chairman Chairman Suite 100
A I M Management Group Inc. Houston, TX 77046
Robert H. Graham
Bruce L. Crockett President INVESTMENT ADVISOR
Director
ACE Limited; Carol F. Relihan A I M Advisors, Inc.
Formerly Director, President, and Senior Vice President and Secretary 11 Greenway Plaza
Chief Executive Officer Suite 100
COMSAT Corporation Gary T. Crum Houston, TX 77046
Senior Vice President
Owen Daly II TRANSFER AGENT
Director Dana R. Sutton
Cortland Trust Inc. Vice President and Treasurer A I M Fund Services, Inc.
P.O. Box 4739
Edward K. Dunn Jr. Robert G. Alley Houston, TX 77210-4739
Chairman, Mercantile Mortgage Corp.; Vice President
Formerly Vice Chairman, President CUSTODIAN
and Chief Operating Officer, Stuart W. Coco
Mercantile-Safe Deposit & Trust Co.; and Vice President State Street Bank and Trust Company
President, Mercantile Bankshares 225 Franklin Street
Melville B. Cox Boston, MA 02110
Jack Fields Vice President
Chief Executive Officer COUNSEL TO THE FUND
Texana Global, Inc. Karen Dunn Kelley
and Twenty First Vice President Ballard Spahr
Century Group, Inc.; Andrews & Ingersoll, LLP
Formerly Member Edgar M. Larsen 1735 Market Street
of the U.S. House of Representatives Vice President Philadelphia, PA 19103
Carl Frischling Mary J. Benson COUNSEL TO THE TRUSTEES
Partner Assistant Vice President and
Kramer, Levin, Naftalis & Frankel LLP Assistant Treasurer Kramer, Levin, Naftalis & Frankel LLP
919 Third Avenue
Robert H. Graham Sheri Morris New York, NY 10022
Director, President and Chief Executive Officer Assistant Vice President and
A I M Management Group Inc. Assistant Treasurer DISTRIBUTOR
Prema Mathai-Davis Renee A. Friedli A I M Distributors, Inc.
Formerly, Chief Executive Officer, Assistant Secretary 11 Greenway Plaza
YWCA of the U.S.A. Suite 100
P. Michelle Grace Houston, TX 77046
Lewis F. Pennock Assistant Secretary
Attorney
Nancy L. Martin
Louis S. Sklar Assistant Secretary
Executive Vice President,
Development and Operations, Ofelia M. Mayo
Hines Interests Assistant Secretary
Limited Partnership
Lisa A. Moss
Assistant Secretary
Kathleen J. Pflueger
Assistant Secretary
Samuel D. Sirko
Assistant Secretary
</TABLE>
<PAGE> 20
THE AIM FAMILY OF FUNDS--Registered Trademark--
<TABLE>
<S> <C> <C>
EQUITY FUNDS
DOMESTIC EQUITY FUNDS INTERNATIONAL/GLOBAL EQUITY FUNDS A I M Management Group Inc. has provided
leadership in the mutual fund industry
MORE AGGRESSIVE MORE AGGRESSIVE since 1976 and managed approximately
$176 billion in assets for more than 8
AIM Small Cap Opportunities(1) AIM Latin American Growth million shareholders, including
AIM Mid Cap Opportunities(2) AIM Developing Markets individual investors, corporate clients
AIM Large Cap Opportunities AIM Asian Growth and financial institutions, as of June
AIM Emerging Growth AIM Japan Growth 30, 2000.
AIM Small Cap Growth(3) AIM European Development The AIM Family of Funds--Registered
AIM Aggressive Growth AIM Euroland Growth(5) Trademark-- is distributed nationwide,
AIM Mid Cap Growth AIM Global Aggressive Growth and AIM today is the eighth-largest
AIM Capital Development AIM International Equity mutual fund complex in the United
AIM Constellation(4) AIM Advisor International Value States in assets under management,
AIM Dent Demographic Trends AIM Global Trends(6) according to Strategic Insight, an
AIM Select Growth AIM Global Growth independent mutual fund monitor.
AIM Large Cap Growth AIM is a subsidiary of AMVESCAP PLC,
AIM Weingarten MORE CONSERVATIVE one of the world's largest independent
AIM Mid Cap Equity financial services companies with $389
AIM Charter SECTOR EQUITY FUNDS billion in assets under management as of
AIM Value June 30, 2000.
AIM Blue Chip MORE AGGRESSIVE
AIM Basic Value
AIM Large Cap Basic Value
AIM Balanced
AIM Advisor Flex AIM Global Telecommunications and Technology
AIM Global Resources
MORE CONSERVATIVE AIM Global Financial Services
AIM Global Health Care
AIM Global Consumer Products and Services
AIM Global Infrastructure
AIM Advisor Real Estate
AIM Global Utilities
MORE CONSERVATIVE
FIXED-INCOME FUNDS
TAXABLE FIXED-INCOME FUNDS TAX-FREE FIXED-INCOME FUNDS
MORE AGGRESSIVE MORE AGGRESSIVE
AIM Strategic Income AIM High Income Municipal
AIM High Yield II AIM Tax-Exempt Bond of Connecticut
AIM High Yield AIM Municipal Bond
AIM Income AIM Tax-Free Intermediate
AIM Global Income AIM Tax-Exempt Cash
AIM Floating Rate(7)
AIM Intermediate Government
AIM Limited Maturity Treasury MORE CONSERVATIVE
AIM Money Market
MORE CONSERVATIVE
</TABLE>
The AIM Risk Spectrum illustrates equity and fixed-income funds from more
aggressive to more conservative. When assessing the degree of risk, three
factors were considered: the funds' portfolio holdings, volatility patterns over
time and diversification permitted within the fund. Fund rankings are relative
to one another within The AIM Family of Funds--Registered Trademark--and should
not be compared with other investments. There is no guarantee that any one AIM
fund will be less volatile than any other. (1) AIM Small Cap Opportunities Fund
closed to new investors Nov. 4, 1999. (2)AIM Mid Cap Opportunities Fund closed
to new investors March 21, 2000. (3) AIM Small Cap Growth Fund closed to new
investors Nov. 8, 1999. (4) AIM Constellation Fund's investment strategy
broadened to allow investments across all market capitalizations Dec. 1, 1999.
(5) AIM Europe Growth Fund was renamed AIM Euroland Growth Fund Sept. 1, 1999.
(6) AIM Global Trends Fund was restructured to operate as a traditional mutual
fund Aug. 27, 1999. Previously, the fund operated as a fund of funds. (7) AIM
Floating Rate Fund was restructured to offer multiple share classes April 3,
2000. Existing shares were converted to Class B shares, and Class C shares
commenced offering.
FOR MORE COMPLETE INFORMATION ABOUT ANY AIM FUND, INCLUDING SALES CHARGES
AND EXPENSES, OBTAIN THE APPROPRIATE PROSPECTUS(ES) FROM YOUR FINANCIAL ADVISOR.
PLEASE READ THE PROSPECTUS(ES) CAREFULLY BEFORE YOU INVEST OR SEND MONEY. This
report is not authorized for distribution to prospective investors unless
preceded or accompanied by a currently effective fund prospectus. If used as
sales material after Oct. 20, 2000, this report must be accompanied by a fund
Performance & Commentary or by an AIM Quarterly Review of Performance for the
most recent quarter end.
[DALBAR AFS LOGO APPEARS HERE] [AIM LOGO APPEARS HERE]
--Registered Trademark--
INVEST WITH DISCIPLINE
--Registered Trademark--
A I M Distributors, Inc. VAL-SAR-1
