<PAGE> 1
ANNUAL REPORT / DECEMBER 31 1999
AIM SELECT GROWTH FUND
[COVER IMAGE]
[AIM LOGO APPEARS HERE]
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[COVER IMAGE]
------------------------------
THE ARTIST'S GARDEN AT GIVERNY
BY CLAUDE MONET
A CAREFULLY SELECTED COMBINATION OF MULTI-COLORED
FLOWERS CAN RESULT IN A STUNNINGLY BEAUTIFUL GARDEN,
JUST LIKE THE ONE DEPICTED IN MONET'S CLASSIC WORK.
IN AIM SELECT GROWTH FUND, WE ENDEAVOR TO OWN THE
MOST ATTRACTIVE LARGE-, MID- AND SMALL-CAP STOCKS IN AN
EFFORT TO PRODUCE THE BEST RESULTS FOR OUR INVESTORS.
------------------------------
For shareholders who seek long-term growth of capital. The fund invests
primarily in the common stocks of established medium- to large-sized companies
with prospects for above-average, long-term earnings growth.
ABOUT FUND PERFORMANCE AND PORTFOLIO DATA THROUGHOUT THIS REPORT:
o AIM Select Growth Fund's performance figures are historical, and they
reflect changes in net asset value and reinvestment of dividends.
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 Class A shares due to differences in sales charge structure and
class expenses.
o During the fiscal year ended 12/31/99, the fund paid distributions of
$1.0620 per share for Class A, Class B and Class C shares.
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 Russell 3000 Index measures the performance of the stocks of
the 3,000 largest U.S. companies based on total market capitalization.
o The unmanaged Russell 2000 Index is generally considered representative of
the performance of stocks of small-capitalization companies.
o The 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 (Nasdaq) Composite Index is a group of more than 5,000 over-the
counter securities widely regarded by investors to represent the small and
medium-sized company universe.
o The unmanaged Standard & Poor's Composite Index of 500 stocks (S&P 500) is a
group of securities generally considered representative of the stock market.
o The unmanaged Standard & Poor's MidCap 400 Index (S&P 400) comprises the
common stocks of approximately 400 mid-capitalization companies.
o The unmanaged Lipper Growth Funds Index represents an average of the
performance of the 30 largest growth funds tracked by Lipper, Inc., an
independent mutual fund performance monitor.
o An investment cannot be made in any index listed. Unless otherwise
indicated, index results include reinvested dividends and do not reflect
sales charges.
AN INVESTMENT IN THE FUND IS NOT A DEPOSIT OF A BANK AND IS NOT INSURED OR
GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY OTHER
GOVERNMENT AGENCY. THERE IS A RISK THAT YOU COULD LOSE SOME OR ALL OF
YOUR MONEY.
This report may be distributed only to current shareholders or to persons
who have received a current prospectus of the fund.
AIM SELECT GROWTH FUND
<PAGE> 3
ANNUAL REPORT / CHAIRMAN'S LETTER
Dear Fellow Shareholder:
The fiscal year discussed in this report has reconfirmed our
[PHOTO OF faith in two long-established principles of investing:
Charles T. portfolio diversification and long-term thinking. We could
Bauer, title this report "What a Difference a Year Makes."
Chairman of An investor surveying conditions when the fiscal year
the Board of opened on January 1, 1999, would have seen a market
THE FUND dominated by large-capitalization stocks and high-quality
APPEARS HERE] bonds, especially U.S. Treasuries. During 1998, two
well-known indexes of large-capitalization U.S. companies,
the S&P 500 and the Dow Jones Industrial Average, were up
28.60% and 18.15%, respectively. By contrast,
smaller-company stocks in the Russell 2000 had lost 2.55%.
Overseas, many markets were languishing, especially in Asia,
where so many financial difficulties had originated in 1997.
In bond markets as well, name-brand quality was the
place to be. The Lehman Government/Corporate Bond Index,
which follows sovereign issues and investment-grade debt, was up 9.47%, while
the Lehman High Yield Index, which tracks riskier "junk bonds," had risen only
1.60%.
It would be easy for an investor to conclude that blue-chip issues, whether
equity or fixed-income, were the place to be, that it was time to divest himself
of everything else and put all his eggs in the blue-chip basket. The investor,
of course, would be wrong.
MARKETS TURN
While large-capitalization stocks continued to do very well, during 1999 markets
broadened dramatically with many investment sectors performing a complete
turnaround. For example, the small-cap stocks in the Russell 2000 were up 21.26%
for calendar year 1999, and many Asian markets, particularly Japan, had staged a
comeback.
The same holds true of bonds. The higher-quality Lehman index was down 2.15%
during 1999 while the Lehman High Yield index was up 2.39%.
The point, at the risk of sounding repetitive to those of you who have
invested with us for a long time, is that this is why diversification is a
fundamental investing principle. Market sectors and asset classes go in and out
of favor, but over the long run--and the long run is several years--the markets'
overall trend has been upward. Selecting an asset class or a market sector on
the basis of a short-term snapshot of conditions is usually unwise, as is
concentrating your portfolio in one asset class. Staying fully invested in a
diversified portfolio remains a compelling strategy and one of your best
prospects for long-term gain. We also continue to remind you that the past few
years have seen extraordinary gains in some markets, and there is no assurance
that this trend will continue.
LOOKING AHEAD
As we look about at the close of this fiscal year, we are encouraged by multiple
signs of economic health in Europe and Asia, not to mention the prolonged U.S.
economic expansion. However, we are aware of how easily an investor could have
been misled by conditions just 12 months ago. For our shareholders, we therefore
reiterate our commitment to investing through a financial advisor. In addition
to helping you select investments appropriate to your time horizon and risk
tolerance, a financial advisor can keep you informed about how changing market
conditions affect you and your portfolio--and help ensure that when you do alter
your investments, there's a logical reason for doing so. AIM believes every
investor should be guided by a financial professional.
FUND MANAGERS COMMENT
In the pages that follow, your fund's portfolio managers discuss how they
managed your fund during the year ended December 31, how the markets behaved and
what they foresee for the near future. We trust you will find their discussion
informative. If you have any questions or comments, we invite you to contact us,
either at our Web site, aimfunds.com, or through our Client Services department
at 800-959-4246. Information about your account is also available through our
automated AIM Investor Line, 800-246-5463.
Thank you for your continued participation in The AIM Family of
Funds--Registered Trademark--.
Sincerely,
/s/ CHARLES T. BAUER
Charles T. Bauer
Chairman, A I M Advisors, Inc.
------------------------------
STAYING FULLY
INVESTED IN A DIVERSIFIED
PORTFOLIO REMAINS
A COMPELLING STRATEGY
AND ONE OF YOUR
BEST PROSPECTS FOR
LONG-TERM GAIN.
------------------------------
AIM SELECT GROWTH FUND
<PAGE> 4
ANNUAL REPORT / MANAGERS' OVERVIEW
FUND BENEFITS FROM TECH STOCK RALLY, POSTS
EXCELLENT RETURNS
SURGING TECHNOLOGY STOCKS BOOSTED SEVERAL KEY MARKET INDEXES TO RECORD LEVELS.
HOW DID AIM SELECT GROWTH FUND PERFORM?
The fund's significant exposure to the high-flying technology sector helped it
record impressive gains for the fiscal year. Excluding sales charges, total
returns for Class A, Class B and Class C shares for the year ended December 31,
1999, were 41.48%, 40.29% and 40.26%, respectively. The fund significantly
outperformed the Russell 3000 Index, the Lipper Growth Funds Index and the S&P
500, which registered gains of 20.90%, 27.96% and 21.03%, respectively, over the
same period.
CAN YOU DESCRIBE SOME OF THE MAJOR TRENDS IN THE STOCK MARKET?
If the 1998 market witnessed a flight to quality, the 1999 market saw a stampede
to growth. The bull market in technology stocks sent major indexes to new
heights in 1999, but all stocks didn't benefit from this trend. While the S&P
500, the Dow and the Nasdaq soared to new levels, many stocks suffered down or
flat years. Among the S&P 500 stocks, 256 declined, 241 rose and three were
unchanged.
The best performing stocks were those with the most perceived growth
potential: technology, telecommunications and broadcasting stocks. Computers,
e-commerce and the Internet are changing the way the world communicates and
conducts business, and investors sought to capitalize on this revolution.
Technology stocks dominated the market, with the technology sector of the S&P
500 returning 75.21% in 1999.
These impressive results masked a very volatile year for the stock market.
Investors were concerned about interest rates throughout 1999. In three separate
moves, the Federal Reserve Board (the Fed) raised the key federal funds rate
from 4.75% to 5.50%. In December, a Fed decision to leave rates unchanged
sparked a market rally.
Large-, mid- and small-cap stock indexes all posted impressive gains for the
year. Besides the Dow and the S&P 500, barometers of the performance of
large-cap stocks, the S&P MidCap 400 Index was up 14.72%, while the Russell 2000
Index, a measure of the performance of small-cap stocks, was up 21.26%. Value
stocks, which rallied earlier in the year, ended up posting more modest gains
for the year as investors focused on growth stocks
HOW DID THE FUND TAKE ADVANTAGE OF THESE MARKET TRENDS?
We increased the fund's exposure to the technology sector from 32% to 49% of the
portfolio between the beginning and the end of the fiscal year. This strategy
allowed the fund to take advantage of the strong performance of technology
stocks. Over the same period, we reduced the fund's exposure to the
underperforming financial and health-care sectors. Please keep in mind, our
sector weightings are the result of our stock-selection process, which is based
on company earnings, not macro-economic predictions. We are finding more
companies with excellent growth prospects in the technology sector.
The fund's exposure to large-, mid-, and small-cap stocks enabled it to
benefit from rallies in these three segments of the market. At the end of the
fiscal year,
------------------------------
THE FUND'S EXPOSURE TO LARGE-, MID-,
AND SMALL-CAP STOCKS ENABLED IT TO
BENEFIT FROM RALLIES IN THESE THREE
SEGMENTS OF THE MARKET.
------------------------------
FUND OUTPERFORMS INDEXES
12/31/98-12/31/99, excluding sales charges.
======================================================================
Fund Fund Fund Russell Lipper S&P 500
Class A Class B Class C 3000 Growth Index
shares shares shares Index Funds Index
41.48% 40.29% 40.26% 20.90% 27.96% 21.03%
======================================================================
================================================================================
TOTAL NET ASSETS
================================================================================
12/31/98 $ 1.1 billion
12/31/99 $757 million
================================================================================
See important fund and index disclosures inside front cover.
AIM SELECT GROWTH FUND
2
<PAGE> 5
ANNUAL REPORT / MANAGERS' OVERVIEW
super-cap and large-cap stocks, the market favorites for the past several years,
composed 67% of the fund's holdings. Mid- and small-cap stocks made up 28% and
5%, respectively.
WHAT TECH STOCKS DID YOU LIKE?
PMC-Sierra, the fund's top holding, develops semiconductor networking
components for telecommunications and data communications systems. The
Canada-based company reported strong earnings for the fourth quarter of 1999.
InfoSpace.com, the fund's second largest holding, is a leading Internet content
services provider while Comverse Technology is a major manufacturer of voice
mail systems.
Other tech stocks in the portfolio included EMC, a leading maker of
mainframe computer disk memory hardware and software; Oracle, a major developer
of database management systems software, which allows multiple users to access
the same data simultaneously; and Sun Microsystems, a leading maker of
workstation computers, storage devices and servers for powering corporate
computer networks and Web sites.
We remain optimistic about the growth prospects for tech companies.
Technology is assuming an increasingly important position in the U.S. and world
economy. Just recently, adjustments were made to the Dow to reflect this
development.
MICROSOFT IS ONE OF THE FUND'S LARGER HOLDINGS. HOW WILL THE RULING IN THE
DEPARTMENT OF JUSTICE CASE AFFECT YOUR INVESTMENT?
Late in the fiscal year, a federal judge ruled that Microsoft is a monopoly. As
of this writing, neither a settlement nor an appeal has been announced, and it's
unlikely that a final decision will be made until 2001. While we cannot comment
on our specific plans to buy or sell stocks, we can say that as of this time,
Microsoft remains a large holding in the fund. We believe that the company's
growth prospects remain strong, especially with the upcoming introduction of two
new software products: Office 2000 and Windows 2000. Over the short term, the
stock may be volatile, but this is a core growth company that should continue to
be a part of our portfolio.
WHAT OTHER STOCKS DID YOU LIKE?
Clear Channel Communications is a major radio station owner and one of the
world's largest outdoor advertising companies, and Knight/Trimark is a
securities broker that has established a significant online trading presence.
WHAT IS YOUR OUTLOOK?
The unprecedented economic expansion over the past few years has helped push
stock-market indexes to record heights. Near term, we expect healthy economic
growth to continue. While such a trend would seemingly bode well for stocks, it
could contribute to volatility in the market, especially if the Fed decides
that the economy is growing too rapidly. On February 2, after the close of the
fiscal year, the Fed raised the federal funds rate to 5.75%. Although by no
means a certainty, it appears that the Fed is poised to raise interest rates
again in the months ahead to slow economic growth and forestall inflation.
Uncertainty about the Fed's direction could have an unsettling effect on the
stock market.
Regardless of market trends, we continue to seek out what we believe are the
best large-, mid- and small-cap stocks as well as the top growth and value
stocks, for inclusion in the fund's portfolio.
PORTFOLIO COMPOSITION
As of 12/31/99, based on total net assets
<TABLE>
<CAPTION>
==========================================================================================================
TOP 10 EQUITY HOLDINGS TOP 10 INDUSTRIES
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
1. PMC-Sierra, Inc. 4.03% 1. Computers (Software & Services) 16.10%
2. InfoSpace.com, Inc. 3.27 2. Electronics-(Semiconductors) 7.50
3. Microsoft Corp. 3.02 3. Communications Equipment 7.19
4. Comverse Technology, Inc. 2.88 4. Electrical Equipment 4.57
5. EMC Corp. 2.77 5. Financial (Diversified) 4.29
6. MCI WorldCom, Inc. 2.42 6. Computer Peripherals 3.99
7. Oracle Corp. 2.24 7. Computer Hardware 3.67
8. Sun Microsystems, Inc. 2.24 8. Telecommunications (Long Distance) 3.47
9. Nokia Oyj A.B.-ADR (Finland) 2.18 9. Broadcasting (Television, Radio & Cable) 2.91
10. Knight/Trimark Group, Inc.-Class A 1.88 10. Services (Data Processing) 2.68
The fund's portfolio 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 SELECT GROWTH FUND
3
<PAGE> 6
ANNUAL REPORT / PERFORMANCE HISTORY
YOUR FUND'S LONG-TERM PERFORMANCE
RESULTS OF A $10,000 INVESTMENT
AIM SELECT GROWTH FUND VS. BENCHMARK INDEX
12/31/89-12/31/99
in thousands
================================================================================
AIM Select Growth Fund, Russell
Class A Share 3000 Index
- --------------------------------------------------------------------------------
12/89 10,000 9,274
12/90 8,974 9,494
12/91 12,299 12,689
12/92 12,322 13,918
12/93 12,770 15,431
12/94 12,132 15,459
12/95 16,294 21,149
12/96 19,325 25,163
12/97 23,101 33,953
12/98 29,360 42,149
12/99 41,538 50,959
Source: Lipper, Inc.
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.
ABOUT THIS CHART
The chart compares your fund's Class A shares to a benchmark index. It is
intended to give you an idea of how your fund performed compared to this index
over the period 12/31/89-12/31/99. It is important to understand differences
between your fund and an index. Your fund's total return is shown with a sales
charge and includes fund expenses and management fees. An index measures
performance of a hypothetical portfolio. A market index such as the Russell 3000
is not managed, incurring no sales charges, expenses or fees. If you could buy
all the securities that make up a market index, you would incur expenses that
would affect your investment's return.
AVERAGE ANNUAL TOTAL RETURNS
As of 12/31/99 including sales charges
================================================================================
CLASS A SHARES
10 Years 15.30%
5 Years 26.47
1 Year 33.67*
*41.48% excluding sales charges
CLASS B SHARES
Inception (9/1/93) 19.31%
5 Years 26.66
1 Year 35.29**
**40.29% excluding CDSC
CLASS C SHARES
Inception (8/4/97) 24.65%
1 Year 39.26***
***40.26% excluding CDSC.
================================================================================
Your fund's total return includes sales charges, expenses and management fees.
The performance of Class B and Class C shares will differ from that of Class A
shares due to differing fees and expenses. For fund performance calculations and
the description of the index cited on this page, please refer to the inside
front cover.
AIM SELECT GROWTH FUND
4
<PAGE> 7
ANNUAL REPORT / FOR CONSIDERATION
WHY GOOD ECONOMIC NEWS SOMETIMES
RATTLES MARKETS
You turn on your television and learn the nation's unemployment rate has dropped
to its lowest level in decades. This latest tidbit of information enhances an
already rosy economic picture. The economy is growing at a brisk pace, wages are
rising and consumer spending is on the upswing.
Later in the day, you hear that financial markets plummeted in reaction to
the positive report on unemployment. Why in the world, you wonder, do markets
act that way?
Market observers often comment that "good news on Main Street is bad news on
Wall Street." And on the surface, it would appear to be that way at times.
RAPID GROWTH CAN SPUR INFLATION
It's not because the markets are opposed to good economic news. It's because a
major school of economic theory holds that when the economy grows too rapidly,
it can lead to runaway inflation. For example, if unemployment is extremely low
and wages are rising, companies have to pay more to hire and retain employees.
To cover increases in labor costs, companies may have to raise the prices of
their goods and services. If prices are rising faster than wages, consumers are
actually losing ground, even if their salaries are increasing.
FED MORE LIKELY TO RAISE INTEREST RATES
Moreover, when inflation looms as a threat, the Federal Reserve Board (the Fed)
is more likely to raise interest rates to keep it in check. And when rumors
abound that the central bank is about to tighten monetary policy, it can have a
disquieting effect on financial markets.
But if the Fed does raise interest rates slightly as a pre-emptive move
against inflation, it's not necessarily a bad thing, even if it causes a
short-term drop in markets. One well-known market analyst likened a modest
interest-rate hike to a flu shot: while it can cause some temporary discomfort,
it can prevent more serious malaise later. As Fed Chairman Alan Greenspan
observed, "Modest pre-emptive actions can obviate the need for more drastic
actions at a later date."
In three seperate moves in 1999, the central bank raised the federal funds
rate--the rate banks charge each other for borrowing surplus reserves--from
4.75% to 5.50%. These moves were a bid to head off inflation, which has been
very low in recent years, but threatened to re-emerge because of torrid economic
growth.
Stocks generally react negatively to a Fed interest-rate hike because it
means higher borrowing costs for corporations, which can affect their
profitability. Bonds also tend to decline in value when their coupons fall below
prevailing interest rates.
RESPONSES OF MARKETS CAN BE A LITTLE SURPRISING
Sometimes the markets will greet a Fed rate increase with a collective
yawn--that is, the actual announcement of a tightening in monetary policy has
very little impact on stocks and bonds. Generally, in such cases, the markets
have anticipated a Fed move in the preceding weeks and have adjusted stock and
bond prices accordingly.
Other times markets will actually rally after the Fed announces a rate
increase, especially if it is more modest than expected. Such a phenomenon is
often referred to as a "relief rally." The Standard & Poor's Composite Index of
500 Stocks (S&P 500) rose 1.57% on June 30, 1999, after the Fed raised rates.
While past performance cannot guarantee comparable future results, in recent
years, Fed rate hikes have only had a transitory impact on the markets. In such
scenarios, it is advisable to remain focused on your long-term financial goals
and not get too concerned about temporary dips in stock and bond prices.
AIM SELECT GROWTH FUND
5
<PAGE> 8
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1999
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
COMMON STOCKS & OTHER EQUITY
INTERESTS-93.93%
BROADCASTING (TELEVISION, RADIO &
CABLE)-2.91%
AMFM Inc.(a) 76,000 $ 5,947,000
- ---------------------------------------------------------------
CBS Corp.(a) 122,400 7,825,950
- ---------------------------------------------------------------
Clear Channel Communications, Inc.(a) 197,956 17,667,573
- ---------------------------------------------------------------
31,440,523
- ---------------------------------------------------------------
COMMUNICATIONS EQUIPMENT-7.19%
Comverse Technology, Inc.(a) 214,950 31,114,012
- ---------------------------------------------------------------
Finisar Corp.(a) 16,400 1,473,950
- ---------------------------------------------------------------
Juniper Networks, Inc.(a) 21,600 7,344,000
- ---------------------------------------------------------------
Lucent Technologies Inc. 160,800 12,029,850
- ---------------------------------------------------------------
Nokia Oyj A.B.-ADR (Finland) 123,600 23,484,000
- ---------------------------------------------------------------
Sycamore Networks, Inc.(a) 7,000 2,156,000
- ---------------------------------------------------------------
77,601,812
- ---------------------------------------------------------------
COMPUTERS (HARDWARE)-3.67%
Dell Computer Corp.(a) 179,000 9,129,000
- ---------------------------------------------------------------
National Instruments Corp.(a) 165,000 6,311,250
- ---------------------------------------------------------------
Sun Microsystems, Inc.(a) 312,000 24,160,500
- ---------------------------------------------------------------
39,600,750
- ---------------------------------------------------------------
COMPUTERS (NETWORKING)-1.43%
Cisco Systems, Inc.(a) 144,000 15,426,000
- ---------------------------------------------------------------
COMPUTERS (PERIPHERALS)-3.54%
EMC Corp.(a) 274,000 29,934,500
- ---------------------------------------------------------------
QLogic Corp.(a) 51,500 8,233,562
- ---------------------------------------------------------------
38,168,062
- ---------------------------------------------------------------
COMPUTERS (SOFTWARE & SERVICES)-16.10%
America Online, Inc.(a) 92,000 6,940,250
- ---------------------------------------------------------------
AppNet, Inc.(a) 190,700 8,343,125
- ---------------------------------------------------------------
Citrix Systems, Inc.(a) 123,300 15,165,900
- ---------------------------------------------------------------
Electronic Arts Inc.(a) 96,700 8,122,800
- ---------------------------------------------------------------
InfoSpace.com, Inc.(a) 165,000 35,310,000
- ---------------------------------------------------------------
ISS Group, Inc.(a) 16,400 1,166,450
- ---------------------------------------------------------------
Lycos, Inc.(a) 90,000 7,160,625
- ---------------------------------------------------------------
Marimba, Inc.(a) 17,000 783,062
- ---------------------------------------------------------------
Microsoft Corp.(a) 279,600 32,643,300
- ---------------------------------------------------------------
Oracle Corp.(a) 216,000 24,205,500
- ---------------------------------------------------------------
Siebel Systems, Inc.(a) 74,000 6,216,000
- ---------------------------------------------------------------
USWeb Corp.(a) 261,000 11,598,187
- ---------------------------------------------------------------
VERITAS Software Corp.(a) 112,500 16,101,562
- ---------------------------------------------------------------
173,756,761
- ---------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
CONSUMER FINANCE-1.16% SHARES VALUE
<S> <C> <C>
Capital One Financial Corp. 93,000 $ 4,481,437
- ---------------------------------------------------------------
Providian Financial Corp. 88,050 8,018,053
- ---------------------------------------------------------------
12,499,490
- ---------------------------------------------------------------
DISTRIBUTORS (FOOD & HEALTH)-0.54%
McKesson HBOC, Inc. 260,000 5,866,250
- ---------------------------------------------------------------
ELECTRIC COMPANIES-1.05%
Niagara Mohawk Holdings Inc.(a) 214,300 2,986,806
- ---------------------------------------------------------------
Northeast Utilities 218,600 4,494,963
- ---------------------------------------------------------------
Texas Utilities Co. 107,000 3,805,187
- ---------------------------------------------------------------
11,286,956
- ---------------------------------------------------------------
ELECTRICAL EQUIPMENT-4.57%
American Power Conversion Corp.(a) 318,000 8,387,250
- ---------------------------------------------------------------
DII Group, Inc.(a) 111,000 7,877,531
- ---------------------------------------------------------------
Koninklijke (Royal) Phillips
Electronics N.V.-ADR
(Netherlands) 111,136 15,003,360
- ---------------------------------------------------------------
Sanmina Corp.(a) 87,200 8,709,100
- ---------------------------------------------------------------
Solectron Corp.(a) 98,000 9,322,250
- ---------------------------------------------------------------
49,299,491
- ---------------------------------------------------------------
ELECTRONICS
(INSTRUMENTATION)-1.32%
Tektronix, Inc. 256,000 9,952,000
- ---------------------------------------------------------------
Waters Corp.(a) 82,000 4,346,000
- ---------------------------------------------------------------
14,298,000
- ---------------------------------------------------------------
ELECTRONICS
(SEMICONDUCTORS)-7.50%
Altera Corp.(a) 280,800 13,917,150
- ---------------------------------------------------------------
Celestica Inc. (Canada)(a) 190,000 10,545,000
- ---------------------------------------------------------------
Linear Technology Corp. 88,800 6,354,750
- ---------------------------------------------------------------
Maxim Integrated Products, Inc.(a) 140,000 6,606,250
- ---------------------------------------------------------------
PMC-Sierra, Inc.(a) 271,600 43,540,875
- ---------------------------------------------------------------
80,964,025
- ---------------------------------------------------------------
ENTERTAINMENT-0.83%
SFX Entertainment, Inc.-Class A(a) 246,300 8,912,981
- ---------------------------------------------------------------
EQUIPMENT (SEMICONDUCTOR)-1.34%
Teradyne, Inc.(a) 220,000 14,520,000
- ---------------------------------------------------------------
FINANCIAL (DIVERSIFIED)-4.29%
American Express Co. 40,100 6,666,625
- ---------------------------------------------------------------
Citigroup Inc. 255,375 14,189,273
- ---------------------------------------------------------------
Fannie Mae 81,500 5,088,656
- ---------------------------------------------------------------
Freddie Mac 241,020 11,343,004
- ---------------------------------------------------------------
MGIC Investment Corp. 149,300 8,985,994
- ---------------------------------------------------------------
46,273,552
- ---------------------------------------------------------------
</TABLE>
6
<PAGE> 9
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
FOODS-0.35%
Keebler Foods Co.(a) 135,000 $ 3,796,875
- ---------------------------------------------------------------
HEALTH CARE (DIVERSIFIED)-1.37%
Warner-Lambert Co. 180,000 14,748,750
- ---------------------------------------------------------------
HEALTH CARE (DRUGS-GENERIC &
OTHER)-1.06%
Forest Laboratories, Inc.(a) 105,200 6,463,225
- ---------------------------------------------------------------
Medicis Pharmaceutical
Corp.-Class A(a) 117,000 4,979,813
- ---------------------------------------------------------------
11,443,038
- ---------------------------------------------------------------
HEALTH CARE (DRUGS-MAJOR
PHARMACEUTICALS)-0.72%
Pfizer Inc. 241,200 7,823,925
- ---------------------------------------------------------------
HEALTH CARE (HOSPITAL
MANAGEMENT)-0.63%
Health Management Associates,
Inc.- Class A(a) 510,000 6,821,250
- ---------------------------------------------------------------
HEALTH CARE (LONG TERM CARE)-0.40%
Manor Care, Inc.(a) 270,700 4,331,200
- ---------------------------------------------------------------
HEALTH CARE (MANAGED CARE)-0.99%
Express Scripts, Inc.-Class A(a) 34,600 2,214,400
- ---------------------------------------------------------------
United Healthcare Corp. 159,100 8,452,188
- ---------------------------------------------------------------
10,666,588
- ---------------------------------------------------------------
HEALTH CARE (MEDICAL PRODUCTS &
SUPPLIES)-1.86%
Beckman Coulter, Inc. 68,500 3,484,938
- ---------------------------------------------------------------
Biomet, Inc. 120,600 4,824,000
- ---------------------------------------------------------------
Guidant Corp.(a) 173,100 8,135,700
- ---------------------------------------------------------------
Sybron International Corp.(a) 149,000 3,678,438
- ---------------------------------------------------------------
20,123,076
- ---------------------------------------------------------------
HEALTH CARE (SPECIALIZED
SERVICES)-0.20%
Capital Senior Living Corp.(a) 425,000 2,151,563
- ---------------------------------------------------------------
INSURANCE (LIFE/HEALTH)-0.43%
UnumProvident Corp. 145,000 4,649,063
- ---------------------------------------------------------------
INSURANCE
(PROPERTY-CASUALTY)-0.73%
Radian Group Inc. 57,000 2,721,750
- ---------------------------------------------------------------
XL Capital Ltd.-Class A 100,000 5,187,500
- ---------------------------------------------------------------
7,909,250
- ---------------------------------------------------------------
INVESTMENT MANAGEMENT-2.08%
Affiliated Managers Group, Inc.(a) 54,300 2,195,756
- ---------------------------------------------------------------
Knight/Trimark Group, Inc.-Class A(a) 440,000 20,240,000
- ---------------------------------------------------------------
22,435,756
- ---------------------------------------------------------------
LEISURE TIME (PRODUCTS)-0.47%
Mattel, Inc. 383,800 5,037,375
- ---------------------------------------------------------------
LODGING-HOTELS-0.41%
Carnival Corp. 91,700 $ 4,384,406
- ---------------------------------------------------------------
MANUFACTURING (DIVERSIFIED)-1.34%
Tyco International Ltd. 372,640 14,486,380
- ---------------------------------------------------------------
NATURAL GAS-0.46%
Enron Corp. 112,000 4,970,000
- ---------------------------------------------------------------
OIL & GAS (DRILLING &
EQUIPMENT)-2.05%
Cooper Cameron Corp.(a) 120,000 5,872,500
- ---------------------------------------------------------------
Diamond Offshore Drilling, Inc. 125,000 3,820,313
- ---------------------------------------------------------------
ENSCO International Inc. 344,600 7,882,725
- ---------------------------------------------------------------
Schlumberger Ltd. 73,400 4,128,750
- ---------------------------------------------------------------
Transocean Sedco Forex Inc. 14,240 479,697
- ---------------------------------------------------------------
22,183,985
- ---------------------------------------------------------------
OIL (DOMESTIC INTEGRATED)-0.42%
Atlantic Richfield Co. 52,900 4,575,850
- ---------------------------------------------------------------
PAPER & FOREST PRODUCTS-0.51%
International Paper Co. 96,700 5,457,506
- ---------------------------------------------------------------
RAILROADS-0.71%
Kansas City Southern Industries, Inc. 103,000 7,686,375
- ---------------------------------------------------------------
RETAIL (BUILDING SUPPLIES)-1.20%
Home Depot, Inc. (The) 106,800 7,322,475
- ---------------------------------------------------------------
Lowe's Cos., Inc. 93,600 5,592,600
- ---------------------------------------------------------------
12,915,075
- ---------------------------------------------------------------
RETAIL (COMPUTERS & ELECTRONICS)-1.11%
CDW Computer Centers, Inc.(a) 152,100 11,958,863
- ---------------------------------------------------------------
RETAIL (DEPARTMENT STORES)-0.41%
Saks Inc.(a) 284,500 4,427,531
- ---------------------------------------------------------------
RETAIL (DISCOUNTERS)-0.38%
Dollar Tree Stores, Inc.(a) 84,025 4,069,961
- ---------------------------------------------------------------
RETAIL (FOOD CHAINS)-1.40%
Albertson's, Inc. 172,000 5,547,000
- ---------------------------------------------------------------
Kroger Co. (The)(a) 229,800 4,337,475
- ---------------------------------------------------------------
Safeway Inc.(a) 146,000 5,192,125
- ---------------------------------------------------------------
15,076,600
- ---------------------------------------------------------------
RETAIL (GENERAL MERCHANDISE)-1.80%
Costco Wholesale Corp.(a) 76,000 6,935,000
- ---------------------------------------------------------------
Dayton Hudson Corp. 170,000 12,484,375
- ---------------------------------------------------------------
19,419,375
- ---------------------------------------------------------------
RETAIL (SPECIALTY)-0.29%
Linens 'n Things, Inc.(a) 105,000 3,110,625
- ---------------------------------------------------------------
</TABLE>
7
<PAGE> 10
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
RETAIL (SPECIALTY-APPAREL)-2.08%
Men's Wearhouse, Inc. (The)(a) 596,000 $ 17,507,500
- ---------------------------------------------------------------
Too Inc.(a) 290,000 5,002,500
- ---------------------------------------------------------------
22,510,000
- ---------------------------------------------------------------
SERVICES
(ADVERTISING/MARKETING)-0.78%
Media Metrix, Inc.(a) 33,000 1,179,750
- ---------------------------------------------------------------
Snyder Communications, Inc.(a) 74,000 1,424,500
- ---------------------------------------------------------------
Young & Rubicam Inc. 82,600 5,843,950
- ---------------------------------------------------------------
8,448,200
- ---------------------------------------------------------------
SERVICES (COMMERCIAL & CONSUMER)-2.04%
Convergys Corp.(a) 98,000 3,013,500
- ---------------------------------------------------------------
Iron Mountain Inc.(a) 161,000 6,329,313
- ---------------------------------------------------------------
Quanta Services, Inc.(a) 295,000 8,333,750
- ---------------------------------------------------------------
Regis Corp. 230,000 4,341,250
- ---------------------------------------------------------------
22,017,813
- ---------------------------------------------------------------
SERVICES (COMPUTER SYSTEMS)-1.23%
Brocade Communications Systems,Inc.(a) 29,000 5,133,000
- ---------------------------------------------------------------
Critical Path, Inc.(a) 32,000 3,020,000
- ---------------------------------------------------------------
Insight Enterprises, Inc.(a) 126,000 5,118,750
- ---------------------------------------------------------------
13,271,750
- ---------------------------------------------------------------
SERVICES (DATA PROCESSING)-2.68%
Affiliated Computer Services,
Inc.-Class A(a) 22,600 1,039,600
- ---------------------------------------------------------------
Concord EFS, Inc.(a) 174,825 4,501,744
- ---------------------------------------------------------------
CSG Systems International, Inc.(a) 180,000 7,177,500
- ---------------------------------------------------------------
DST Systems, Inc.(a) 58,100 4,433,756
- ---------------------------------------------------------------
Fiserv, Inc.(a) 85,275 3,267,098
- ---------------------------------------------------------------
NOVA Corp.(a) 102,232 3,226,698
- ---------------------------------------------------------------
Paychex, Inc. 133,500 $ 5,340,000
- ---------------------------------------------------------------
28,986,396
- ---------------------------------------------------------------
TELECOMMUNICATIONS (LONG
DISTANCE)-3.47%
Global Crossing Ltd. (Bermuda)(a) 98,842 4,942,100
- ---------------------------------------------------------------
MCI WorldCom, Inc.(a) 491,945 26,103,805
- ---------------------------------------------------------------
Viatel, Inc.(a) 120,000 6,435,000
- ---------------------------------------------------------------
37,480,905
- ---------------------------------------------------------------
WASTE MANAGEMENT-0.43%
Waste Management, Inc. 271,600 4,668,125
- ---------------------------------------------------------------
Total Common Stocks & Other
Equity Interests (Cost
$482,564,675) 1,013,958,083
- ---------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
<S> <C> <C>
U.S. DOLLAR DENOMINATED
CONVERTIBLE NOTES-0.45%
COMPUTERS (PERIPHERALS)-0.45%
EMC Corp., Conv. Sub. Notes,
3.25%, 03/15/02 (Cost $677,145) $ 500,000 4,828,750
- ---------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
SHARES
<S> <C> <C>
MONEY MARKET FUNDS-5.69%
STIC Liquid Assets Portfolio(b) 30,735,705 30,735,705
- ---------------------------------------------------------------
STIC Prime Portfolio(b) 30,735,705 30,735,705
- ---------------------------------------------------------------
Total Money Market Funds
(Cost $61,471,410) 61,471,410
- ---------------------------------------------------------------
TOTAL INVESTMENTS-100.07% (Cost
$544,713,230) 1,080,258,243
- ---------------------------------------------------------------
LIABILITIES LESS OTHER
ASSETS-(0.07%) (799,909)
- ---------------------------------------------------------------
NET ASSETS-100.00% $1,079,458,334
===============================================================
</TABLE>
Investment Abbreviations:
ADR - American Depositary Receipt
Conv. - Convertible
Sub. - Subordinated
Notes to Schedule of Investments:
(a) Non-income producing security.
(b) This money market fund has the same investment advisor as the fund.
See Notes to Financial Statements.
8
<PAGE> 11
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1999
<TABLE>
<S> <C>
ASSETS:
Investments, at market value (cost
$544,713,230) $1,080,258,243
- ----------------------------------------------------------
Receivables for:
Fund shares sold 2,382,050
- ----------------------------------------------------------
Dividends and interest 477,981
- ----------------------------------------------------------
Investment for deferred compensation plan 71,413
- ----------------------------------------------------------
Other assets 31,284
- ----------------------------------------------------------
Total assets 1,083,220,971
- ----------------------------------------------------------
LIABILITIES:
Payables for:
Fund shares reacquired 1,950,932
- ----------------------------------------------------------
Deferred compensation plan 71,413
- ----------------------------------------------------------
Accrued advisory fees 560,995
- ----------------------------------------------------------
Accrued administrative services fees 11,504
- ----------------------------------------------------------
Accrued distribution fees 945,546
- ----------------------------------------------------------
Accrued transfer agent fees 125,614
- ----------------------------------------------------------
Accrued operating expenses 96,633
- ----------------------------------------------------------
Total liabilities 3,762,637
- ----------------------------------------------------------
Net assets applicable to shares
outstanding $1,079,458,334
==========================================================
NET ASSETS:
Class A $ 461,628,075
==========================================================
Class B $ 592,554,822
==========================================================
Class C $ 25,275,437
==========================================================
SHARES OUTSTANDING, $0.01 PAR VALUE PER SHARE:
Class A 17,601,889
==========================================================
Class B 24,115,512
==========================================================
Class C 1,029,659
==========================================================
Class A:
Net asset value and redemption price per
share $ 26.23
- ----------------------------------------------------------
Offering price per share:
(Net asset value of $26.23 divided
by 94.50%) $ 27.76
==========================================================
Class B:
Net asset value and offering price per
share $ 24.57
==========================================================
Class C:
Net asset value and offering price per
share $ 24.55
==========================================================
</TABLE>
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1999
<TABLE>
<S> <C>
INVESTMENT INCOME:
Dividends (net of $40,337 foreign
withholding tax) $ 3,941,209
- ---------------------------------------------------------
Interest 2,584,817
- ---------------------------------------------------------
Total investment income 6,526,026
- ---------------------------------------------------------
EXPENSES:
Advisory fees 5,507,389
- ---------------------------------------------------------
Administrative services fees 110,205
- ---------------------------------------------------------
Custodian fees 79,919
- ---------------------------------------------------------
Transfer agent fees-Class A 444,403
- ---------------------------------------------------------
Transfer agent fees-Class B 871,807
- ---------------------------------------------------------
Transfer agent fees-Class C 25,522
- ---------------------------------------------------------
Trustees' fees 13,787
- ---------------------------------------------------------
Distribution fees-Class A 896,196
- ---------------------------------------------------------
Distribution fees-Class B 4,672,685
- ---------------------------------------------------------
Distribution fees-Class C 134,325
- ---------------------------------------------------------
Other 281,205
- ---------------------------------------------------------
Total expenses 13,037,443
- ---------------------------------------------------------
Less: Expenses paid indirectly (11,204)
- ---------------------------------------------------------
Net expenses 13,026,239
- ---------------------------------------------------------
Net investment income (loss) (6,500,213)
- ---------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENT
SECURITIES, FOREIGN CURRENCIES AND FUTURES CONTRACTS:
Net realized gain from:
Investment securities 45,120,492
- ---------------------------------------------------------
Foreign currencies 84
- ---------------------------------------------------------
Futures contracts 1,493,262
- ---------------------------------------------------------
46,613,838
- ---------------------------------------------------------
Change in net unrealized appreciation
(depreciation) of:
Investment securities 269,570,221
- ---------------------------------------------------------
Foreign currencies (153)
- ---------------------------------------------------------
Futures contracts (1,127,100)
- ---------------------------------------------------------
268,442,968
- ---------------------------------------------------------
Net gain from investment securities,
foreign currencies and futures
contracts 315,056,806
- ---------------------------------------------------------
Net increase in net assets resulting from
operations $308,556,593
=========================================================
</TABLE>
See Notes to Financial Statements.
9
<PAGE> 12
STATEMENT OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1999 AND 1998
<TABLE>
<CAPTION>
1999 1998
-------------- ------------
<S> <C> <C>
OPERATIONS:
Net investment income (loss) $ (6,500,213) $ (4,533,684)
- ---------------------------------------------------------------------------------------------
Net realized gain from investment securities, foreign
currencies, future and option contracts 46,613,838 17,616,351
- ---------------------------------------------------------------------------------------------
Change in net unrealized appreciation of investment
securities, foreign currencies and future contracts 268,442,968 148,755,001
- ---------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 308,556,593 161,837,668
- ---------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM NET REALIZED GAINS:
Class A (17,929,351) (8,360,767)
- ---------------------------------------------------------------------------------------------
Class B (24,484,976) (11,756,791)
- ---------------------------------------------------------------------------------------------
Class C (997,756) (234,011)
- ---------------------------------------------------------------------------------------------
SHARE TRANSACTIONS-NET:
Class A 25,912,665 (7,618,676)
- ---------------------------------------------------------------------------------------------
Class B 19,950,492 (6,948,989)
- ---------------------------------------------------------------------------------------------
Class C 11,803,897 6,185,419
- ---------------------------------------------------------------------------------------------
Net increase in net assets 322,811,564 133,103,853
- ---------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 756,646,770 623,542,917
- ---------------------------------------------------------------------------------------------
End of period $1,079,458,334 $756,646,770
=============================================================================================
NET ASSETS CONSIST OF:
Shares of beneficial interest $ 548,170,108 $494,529,257
- ---------------------------------------------------------------------------------------------
Undistributed net investment income (loss) (88,818) (71,168)
- ---------------------------------------------------------------------------------------------
Undistributed net realized gain (loss) from investment
securities, future and option contracts (4,167,969) (4,913,364)
- ---------------------------------------------------------------------------------------------
Unrealized appreciation of investment securities, foreign
currencies and future contracts 535,545,013 267,102,045
- ---------------------------------------------------------------------------------------------
$1,079,458,334 $756,646,770
=============================================================================================
</TABLE>
See Notes to Financial Statements.
10
<PAGE> 13
NOTES TO FINANCIAL STATEMENTS
December 31, 1999
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES
AIM Select 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 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 by
investing primarily in the common stocks of established medium to large size
companies with prospects for above average, long term earnings growth.
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 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 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 trading of the New York Stock Exchange
("NYSE").
Generally, trading in foreign securities is substantially completed each
day at various times prior to the close of the NYSE. The values of such
securities used in computing the net asset value of the Fund's shares are
determined as of such times. Foreign currency exchange rates are also
generally determined prior to the close of the NYSE. Occasionally, events
affecting the values of such securities and such exchange rates may occur
between the times at which they are determined and the close of the NYSE
which would not be reflected in the computation of the Fund's net asset
value. If events materially affecting the value of such securities occur
during such period, then these securities will be valued at their fair value
as determined in good faith by or under the supervision of the Board of
Trustees.
B. Securities Transactions and Investment Income -- Securities transactions are
accounted for on a trade date basis. Realized gains or losses on sales are
computed on the basis of specific identification of the securities sold.
Interest income is recorded as earned from settlement date and is recorded
on the accrual basis. Dividend income is recorded on the ex-dividend date.
On December 31, 1999, undistributed net investment income was increased by
$6,482,563, undistributed net realized gains decreased by $2,456,360 and
paid-in capital decreased by $4,026,203 as a result of differing book/tax
treatment of equalization credits and other reclassifications. Net assets of
the Fund were unaffected by the reclassifications.
C. Distributions -- Distributions from income and net realized capital gains,
if any, are generally paid annually and recorded on ex-dividend date. The
Fund may elect to use a portion of the proceeds of fund share redemptions as
distributions for federal income tax purposes.
D. Federal Income Taxes -- The Fund intends to comply with the requirements of
the Internal Revenue Code necessary to qualify as a regulated investment
company and, as such, will not be subject to federal income taxes on
otherwise taxable income (including net realized capital gains) which is
distributed to shareholders. Therefore, no provision for federal income
taxes is recorded in the financial statements.
E. 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 that 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
11
<PAGE> 14
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 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.
G. Futures Contracts -- The Fund may purchase or sell 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 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 that a
change in value of the contracts may not correlate with changes in the value
of the securities being hedged.
H. Expenses -- Distribution expenses and transfer agency expenses directly
attributable to a class of shares are charged to that class' operations. All
other expenses which are attributable to more than one class are allocated
among the classes.
NOTE 2-ADVISORY FEES AND OTHER TRANSACTIONS WITH AFFILIATES
The Trust has entered into a master investment advisory agreement with A I M
Advisors, Inc. ("AIM"). Under the terms of the master investment advisory
agreement, the Fund pays 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.
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 year ended December 31, 1999, AIM was
paid $110,205 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 year ended December 31, 1999, AFS was
paid $776,902 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 year ended December 31,
1999, the Class A, Class B and Class C shares paid AIM Distributors $896,196,
$4,672,685 and $134,325, respectively, as compensation under the Plans.
AIM Distributors received commissions of $176,131 from sales of the Class A
shares of the Fund during the year ended December 31, 1999. 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 year ended December 31, 1999,
AIM Distributors received $75,951 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 year ended December 31, 1999, the Fund paid legal fees of $4,890
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
During the year ended December 31, 1999, the Fund received reductions in
transfer agency fees from AFS (an affiliate of AIM) and reductions in custodian
fees of $9,190 and $2,014, respectively, under expense offset arrangements. The
effect of the above arrangements resulted in a reduction of the Fund's total
expenses of $11,204 during the year ended December 31, 1999.
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 The Chase Manhattan Bank. 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
12
<PAGE> 15
borrow on a first come, first served basis. During the year ended December 31,
1999, 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. Prior to May 28, 1999, the commitment
fee rate was 0.05%. The commitment fee is allocated among the funds based on
their respective average net assets for the period.
NOTE 6-INVESTMENT SECURITIES
The aggregate amount of investment securities (other than short-term securities)
purchased and sold by the Fund during the year ended December 31, 1999 was
$250,121,433 and $239,081,137, respectively.
The amount of unrealized appreciation (depreciation) of investment
securities, for tax purposes, as of December 31, 1999 was as follows:
<TABLE>
<S> <C>
Aggregate unrealized appreciation of investment securities $553,509,579
- --------------------------------------------------------------------------
Aggregate unrealized (depreciation) of investment securities (18,117,424)
- --------------------------------------------------------------------------
Net unrealized appreciation of investment securities $535,392,155
==========================================================================
</TABLE>
Cost of investments for tax purposes is $544,866,088.
NOTE 7-SHARE INFORMATION
Changes in shares outstanding during the years ended December 31, 1999 and 1998
were as follows:
<TABLE>
<CAPTION>
1999 1998
-------------------------- ---------------------------
SHARES AMOUNT SHARES AMOUNT
---------- ------------- ----------- -------------
<S> <C> <C> <C> <C>
Sold:
Class A 8,174,582 $ 169,122,203 31,005,519 $ 526,456,274
- ----------------------------------------------------------------------------------------------------------------------
Class B 5,441,024 110,096,224 5,430,217 86,111,821
- ----------------------------------------------------------------------------------------------------------------------
Class C 820,566 16,761,504 569,912 9,220,769
- ----------------------------------------------------------------------------------------------------------------------
Issued as reinvestment of dividends:
Class A 702,598 17,072,219 444,090 7,953,651
- ----------------------------------------------------------------------------------------------------------------------
Class B 996,161 22,682,713 649,261 11,017,972
- ----------------------------------------------------------------------------------------------------------------------
Class C 41,870 952,496 13,022 220,846
- ----------------------------------------------------------------------------------------------------------------------
Reacquired:
Class A (7,818,939) (160,281,757) (31,896,692) (542,028,601)
- ----------------------------------------------------------------------------------------------------------------------
Class B (5,672,316) (112,828,445) (6,508,718) (104,078,782)
- ----------------------------------------------------------------------------------------------------------------------
Class C (296,926) (5,910,103) (198,182) (3,256,196)
- ----------------------------------------------------------------------------------------------------------------------
2,388,620 $ 57,667,054 (491,571) $ (8,382,246)
======================================================================================================================
</TABLE>
13
<PAGE> 16
NOTE 8-FINANCIAL HIGHLIGHTS
Shown below are the financial highlights for a share of Class A and a share of
Class B outstanding during each of the years in the five-year period ended
December 31, 1999, and for a share of Class C outstanding during each of the
years in the two-year period ended December 31, 1999 and the period August 4,
1997 (date sales commenced) through December 31, 1997.
<TABLE>
<CAPTION>
CLASS A
-----------------------------------------------------------
1999 1998 1997(a) 1996 1995(a)
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 19.35 $ 15.67 $ 14.78 $ 13.05 $ 10.32
- ------------------------------------------------------------ -------- -------- -------- -------- --------
Income from investment operations:
Net investment income (loss) (0.06) (0.04) 0.01 0.07 0.02
- ------------------------------------------------------------ -------- -------- -------- -------- --------
Net gains (losses) on securities (both realized and
unrealized) 8.00 4.24 2.82 2.34 3.50
- ------------------------------------------------------------ -------- -------- -------- -------- --------
Total from investment operations 7.94 4.20 2.83 2.41 3.52
- ------------------------------------------------------------ -------- -------- -------- -------- --------
Less distributions:
Dividends from net investment income -- -- (0.01) -- --
- ------------------------------------------------------------ -------- -------- -------- -------- --------
Distributions from net realized gains (1.06) (0.52) (1.93) (0.68) (0.79)
- ------------------------------------------------------------ -------- -------- -------- -------- --------
Total distributions (1.06) (0.52) (1.94) (0.68) (0.79)
- ------------------------------------------------------------ -------- -------- -------- -------- --------
Net asset value, end of period $ 26.23 $ 19.35 $ 15.67 $ 14.78 $ 13.05
============================================================ ======== ======== ======== ======== ========
Total return(b) 41.48% 27.09% 19.54% 18.61% 34.31%
============================================================ ======== ======== ======== ======== ========
Ratios/supplemental data:
Net assets, end of period (000s omitted) $461,628 $320,143 $266,168 $227,882 $168,217
============================================================ ======== ======== ======== ======== ========
Ratio of expenses to average net assets 1.09%(c) 1.11% 1.13% 1.18% 1.28%
============================================================ ======== ======== ======== ======== ========
Ratio of net investment income (loss) to average net assets (0.31)%(c) (0.22)% 0.04% 0.46% 0.20%
============================================================ ======== ======== ======== ======== ========
Portfolio turnover rate 31% 68% 110% 97% 87%
============================================================ ======== ======== ======== ======== ========
</TABLE>
(a) Calculated using average shares outstanding.
(b) Does not deduct sales charges.
(c) Ratios are based on average net assets of $358,478,474.
<TABLE>
<CAPTION>
CLASS B CLASS C
-------------------------------------------------------- --------------------------------
1999(a) 1998 1997(a) 1996 1995(a) 1999(a) 1998(a) 1997(a)
-------- -------- ------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period $ 18.33 $ 14.98 $ 14.32 $ 12.77 $ 10.21 $ 18.32 $ 14.98 $ 17.65
- --------------------------------- -------- -------- -------- -------- -------- -------- -------- --------
Income from investment
operations:
Net investment income (loss) (0.23) (0.17) (0.13) (0.05) (0.08) (0.23) (0.17) (0.04)
- --------------------------------- -------- -------- -------- -------- -------- -------- -------- --------
Net gains (losses) on securities
(both realized and unrealized) 7.53 4.04 2.72 2.28 3.43 7.52 4.03 (0.70)
- --------------------------------- -------- -------- -------- -------- -------- -------- -------- --------
Total from investment
operations 7.30 3.87 2.59 2.23 3.35 7.29 3.86 (0.74)
- --------------------------------- -------- -------- -------- -------- -------- -------- -------- --------
Less distributions:
Distributions from net realized
gains (1.06) (0.52) (1.93) (0.68) (0.79) (1.06) (0.52) (1.93)
- --------------------------------- -------- -------- -------- -------- -------- -------- -------- --------
Total distributions (1.06) (0.52) (1.93) (0.68) (0.79) (1.06) (0.52) (1.93)
- --------------------------------- -------- -------- -------- -------- -------- -------- -------- --------
Net asset value, end of period $ 24.57 $ 18.33 $ 14.98 $ 14.32 $ 12.77 $ 24.55 $ 18.32 $ 14.98
================================= ======== ======== ======== ======== ======== ======== ======== ========
Total return(b) 40.29% 26.13% 18.50% 17.60% 33.00% 40.26% 26.07% (3.86)%
================================= ======== ======== ======== ======== ======== ======== ======== ========
Ratios/supplemental data:
Net assets, end of period (000s
omitted) $592,555 $428,002 $356,186 $280,807 $138,034 $ 25,275 $ 8,501 $ 1,189
================================= ======== ======== ======== ======== ======== ======== ======== ========
Ratio of expenses to average net
assets 1.90%(c) 1.93% 1.99% 2.03% 2.13% 1.90%(c) 1.93% 1.95%(d)
================================= ======== ======== ======== ======== ======== ======== ======== ========
Ratio of net investment income
(loss) to average net assets (1.12)%(c) (1.04)% (0.82)% (0.39)% (0.65)% (1.12)%(c) (1.04)% (0.77)%(d)
================================= ======== ======== ======== ======== ======== ======== ======== ========
Portfolio turnover rate 31% 68% 110% 97% 87% 31% 68% 110%
================================= ======== ======== ======== ======== ======== ======== ======== ========
</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 based on average net assets of $467,268,589 and $13,432,524 for
Class B and Class C, respectively.
(d) Annualized.
14
<PAGE> 17
INDEPENDENT AUDITORS' REPORT
The Board of Trustees and Shareholders of
AIM Select Growth Fund:
We have audited the accompanying statement of assets and
liabilities of the AIM Select Growth Fund (a portfolio of
AIM Funds Group), including the schedule of investments,
as of December 31, 1999, and the related statement of
operations for the year then ended, the statement of
changes in net assets for each of the years in the
two-year period then ended and the financial highlights
for each of the years in the five-year period then ended.
These financial statements and financial highlights are
the responsibility of the Fund's management. Our
responsibility is to express an opinion on these
financial statements and financial highlights based on
our audits.
We conducted our audits in accordance with generally
accepted auditing standards. Those standards require that
we plan and perform the audit to obtain reasonable
assurance about whether the financial statements and
financial highlights are free of material misstatements.
An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial
statement. Our procedures included confirmation of
securities owned as of December 31, 1999, by
correspondence with the custodian. An audit also includes
assessing the accounting principles used and significant
estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that
our audits provide a reasonable basis for our opinion
In our opinion, the financial statements and financial
highlights referred to above presently fairly, in all
material respects, the financial position of AIM Select
Growth Fund as of December 31, 1999, the results of its
operations for the year then ended, the changes in its
net assets for each of the years in the two-year period
then ended and the financial highlights for each of the
years in the five-year period then ended, in conformity
with generally accepted accounting principles.
KPMG LLP
February 4, 2000
Houston, Texas
15
<PAGE> 18
<TABLE>
<CAPTION>
BOARD OF TRUSTEES OFFICERS OFFICE OF THE FUND
<S> <C> <C>
Charles T. Bauer Charles T. Bauer 11 Greenway Plaza
Chairman Chairman Suite 100
A I M Management Group Inc. Houston, TX 77046
Robert H. Graham
Bruce L. Crockett President INVESTMENT ADVISOR
Director
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
Formerly Member Vice President Ballard Spahr
of the U.S. House of Representatives Andrews & Ingersoll, LLP
Edgar M. Larsen 1735 Market Street
Carl Frischling Vice President Philadelphia, PA 19103
Partner
Kramer, Levin, Naftalis & Frankel LLP Mary J. Benson COUNSEL TO THE TRUSTEES
Assistant Vice President and
Robert H. Graham Assistant Treasurer Kramer, Levin, Naftalis & Frankel LLP
President and Chief Executive Officer 919 Third Avenue
A I M Management Group Inc. Sheri Morris New York, NY 10022
Assistant Vice President and
Prema Mathai-Davis Assistant Treasurer DISTRIBUTOR
Chief Executive Officer, YWCA of the U.S.A.
Renee A. Friedli A I M Distributors, Inc.
Lewis F. Pennock Assistant Secretary 11 Greenway Plaza
Attorney Suite 100
P. Michelle Grace Houston, TX 77046
Louis S. Sklar Assistant Secretary
Executive Vice President AUDITORS
Hines Interests Nancy L. Martin
Limited Partnership Assistant Secretary KPMG LLP
700 Louisiana
Ofelia M. Mayo Houston, TX 77002
Assistant Secretary
Lisa A. Moss
Assistant Secretary
Kathleen J. Pflueger
Assistant Secretary
Samuel D. Sirko
Assistant Secretary
Stephen I. Winer
Assistant Secretary
</TABLE>
REQUIRED FEDERAL INCOME TAX INFORMATION (UNAUDITED)
AIM Select Growth Fund distributed long-term capital gains of $45,877,168 for
the Fund's tax year ended December 31, 1999. Of long-term capital gains
distributed, 100% is 20% rate gain.
16
<PAGE> 19
AIM FUNDS(SM) KEEPS YOU POSTED ON YOUR INVESTMENT
We inform our shareholders about their investments with regular mailings
throughout the year. Here is a description of the documents you will receive
concerning your account and fund.
o DAILY CONFIRMATION STATEMENTS. A record of the transactions you initiate.
For example, if you transfer part or all of your investment from one AIM
fund to another, you will receive a statement confirming that the
transaction took place.
o QUARTERLY STATEMENTS. These show you how your account has performed over the
fiscal quarter and provide information on any applicable dividend payments.
Statement inserts that sometimes accompany these mailings may give specific
information about your fund or may contain educational information of
general interest.
o PROXY. As a shareholder of an AIM fund, you have the right to vote on any
change to a fund's published bylaws or objectives. If the fund's board of
directors proposes such a change, AIM will send a proxy to the shareholders.
The proxy allows you to direct an authorized person to cast your vote
according to your instructions. You can vote your proxy by mail, phone or
e-mail.
o PROSPECTUS. AIM sends you an updated version of your fund's prospectus every
year. Your prospectus contains valuable information about your fund's
objectives, risks, management and fees. Because this information is
important, you should keep your prospectus with your other fund records.
o ANNUAL AND SEMIANNUAL REPORTS. AIM fund reports are sent to you twice a
year, the semiannual covering the first six months of the fiscal year for a
fund and the annual covering the entire fiscal year. These reports give you
an idea of how your fund performed compared to the market in general. The
reports also give you information about the holdings in your fund's
portfolio and how market conditions and management decisions have affected
your fund.
o YEAR-END TAX INFORMATION. This includes your year-end account statement,
cost-basis statement and any tax forms pertinent to your AIM account. The
tax forms report distributions you have received from your AIM funds,
redemptions or exchanges you have made and any contributions you have made
to tax-advantaged retirement accounts. It is important to retain the latter,
IRS Form 5498, if you need to track deductible vs. nondeductible IRA
contributions. The cost-basis statements are also important to retain
because they can be very useful for calculating capital gains or losses if
you use the "average basis single category" method of calculating cost
basis. Year-end tax information will be accompanied by tax communications
from AIM to help you fill out your tax forms. Your tax advisor can assist
you in sorting through your year-end statements and other tax
communications.
------------------------------
WE INFORM
OUR SHAREHOLDERS ABOUT
THEIR INVESTMENTS
WITH REGULAR MAILINGS
THROUGHOUT THE YEAR.
------------------------------
AIM SELECT GROWTH FUND
<PAGE> 20
THE AIM FAMILY OF FUNDS--Registered Trademark--
<TABLE>
<S> <C> <C>
GROWTH FUNDS MONEY MARKET FUNDS A I M Management Group Inc. has provided
AIM Aggressive Growth Fund AIM Money Market Fund leadership in the mutual fund industry
AIM Blue Chip Fund AIM Tax-Exempt Cash Fund since 1976 and managed approximately $160
AIM Capital Development Fund billion in assets for more than 6.6 million
AIM Constellation Fund(1) INTERNATIONAL GROWTH FUNDS shareholders, including individual investors,
AIM Dent Demographic Trends Fund AIM Advisor International Value Fund corporate clients and financial institutions,
AIM Large Cap Growth Fund AIM Asian Growth Fund as of December 31, 1999.
AIM Mid Cap Equity Fund AIM Developing Markets Fund The AIM Family of Funds--Registered Trademark--
AIM Mid Cap Growth Fund AIM Euroland Growth Fund(4) is distributed nationwide, and AIM today is the
AIM Mid Cap Opportunities Fund AIM European Development Fund eighth-largest mutual fund complex in the United
AIM Select Growth Fund AIM International Equity Fund States in assets under management, according to
AIM Small Cap Growth Fund(2) AIM Japan Growth Fund Strategic Insight, an independent mutual fund
AIM Small Cap Opportunities Fund(3) AIM Latin American Growth Fund monitor.
AIM Value Fund AIM Weingarten Fund AIM New Pacific Growth Fund
GROWTH & INCOME FUNDS GLOBAL GROWTH FUNDS
AIM Advisor Flex Fund AIM Global Aggressive Growth Fund
AIM Advisor Large Cap Value Fund AIM Global Growth Fund
AIM Advisor Real Estate Fund
AIM Balanced Fund GLOBAL GROWTH & INCOME FUNDS
AIM Basic Value Fund AIM Global Growth & Income Fund
AIM Charter Fund AIM Global Utilities Fund
INCOME FUNDS GLOBAL INCOME FUNDS
AIM Floating Rate Fund AIM Emerging Markets Debt Fund
AIM High Yield Fund AIM Global Government Income Fund
AIM High Yield Fund II AIM Global Income Fund
AIM Income Fund AIM Strategic Income Fund
AIM Intermediate Government Fund
AIM Limited Maturity Treasury Fund THEME FUNDS
AIM Global Consumer Products and Services Fund
TAX-FREE INCOME FUNDS AIM Global Financial Services Fund
AIM High Income Municipal Fund AIM Global Health Care Fund
AIM Municipal Bond Fund AIM Global Infrastructure Fund
AIM Tax-Exempt Bond Fund of Connecticut AIM Global Resources Fund
AIM Tax-Free Intermediate Fund AIM Global Telecommunications and Technology Fund(5)
AIM Global Trends Fund(6)
</TABLE>
(1) Effective December 1, 1999, AIM Constellation Fund's investment strategy
broadened to allow investments across all market capitalizations. (2) AIM Small
Cap Growth Fund closed to new investors on November 8, 1999. (3) AIM Small Cap
Opportunities Fund closed to new investors on November 4, 1999. (4) On September
1, 1999, AIM Europe Growth Fund was renamed AIM Euroland Growth Fund. Previously
the fund invested in all size companies in most areas of Europe. The fund now
seeks to invest at least 65% of its assets in large-cap companies within
countries using the euro as their currency (EMU-member countries). (5) On June
1, 1999, AIM Global Telecommunications Fund was renamed AIM Global
Telecommunications and Technology Fund. (6) Effective August 27, 1999, AIM
Global Trends Fund was restructured to operate as a traditional mutual fund.
Before that date, the fund operated as a fund of funds. For more complete
information about any AIM fund(s), including sales charges and expenses, ask
your financial advisor or securities dealer for a free prospectus(es). Please
read the prospectus(es) carefully before you invest or send money. If used as
sales material after April 20, 2000, this report must be accompanied by a
current Quarterly Review of Performance for AIM Funds.
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--Registered Trademark--
A I M Distributors, Inc. GRO-AR-1
