<PAGE> 1
SEMIANNUAL REPORT / JUNE 30 2000
AIM GLOBAL UTILITIES FUND
[COVER ARTWORK]
[AIM LOGO APPEARS HERE]
--Registered Trademark--
<PAGE> 2
[ COVER IMAGE ]
-------------------------------------
TULIP FIELDS AND WINDMILL IN HOLLAND
BY CLAUDE MONET
STANDING TALL AGAINST THE HORIZON WITH SAILS WHIRLING IN THE
AIR, WINDMILLS HAVE PLAYED AN IMPORTANT PART IN THE HISTORICAL
AND ECONOMIC DEVELOPMENT OF CIVILIZATION THROUGH THE CENTURIES.
LIKE THEIR PREDECESSORS, TODAY'S NETWORK OF GLOBAL
UTILITIES ENABLES OUR CONTINUING ADVANCEMENT.
-------------------------------------
AIM Global Utilities Fund is for shareholders who seek a high total return.
ABOUT FUND PERFORMANCE AND PORTFOLIO DATA THROUGHOUT THIS REPORT:
o AIM Global Utilities Fund's performance figures are historical, and they
reflect the reinvestment of distributions and changes in net asset value.
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.
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 International investing presents certain risks not associated with investing
solely in the United States. These include risks relating to fluctuations in
the value of the U.S. dollar relative to the value of other currencies, the
custody arrangements made for the fund's foreign holdings, differences in
accounting procedures, political risks and the lesser degree of public
information required to be provided by non-U.S. companies.
o The fund participates in the initial public offering (IPO) market, and a
significant portion of its returns may be attributable to its investment in
IPOs, which may have a magnified impact due to the fund's relatively small
asset base. As the fund's assets grow, it is probable that the effect of its
investment in IPOs on its total return will decline, which may reduce the
fund's total return.
o Investing in a single-sector or single-region mutual fund may involve
greater risk and potential reward than investing in a more diversified fund.
ABOUT INDEXES AND OTHER PERFORMANCE BENCHMARKS CITED IN THIS REPORT:
o The Lipper Utility Fund Index is an average of the 30 largest utility funds
tracked by Lipper, Inc., an independent mutual fund performance monitor.
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 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 of 500 Stocks (the S&P 500)
represents the performance 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.
AVERAGE ANNUAL TOTAL RETURNS
As of 6/30/00, including sales charges
================================================================================
CLASS A SHARES
Inception (1/19/88) 15.00%
10 Years 14.07
5 Years 19.93
1 Year 24.62*
*31.85% excluding sales charges
CLASS B SHARES
Inception (9/1/93) 13.33%
5 Years 20.20
1 Year 25.82*
*30.82% excluding CDSC
CLASS C SHARES
Inception (8/4/97) 21.53%
1 Year 29.84*
*30.84% 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.
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 GLOBAL UTILITIES FUND
<PAGE> 3
SEMIANNUAL REPORT / CHAIRMAN'S LETTER
Dear Fellow Shareholder:
When we started AIM in 1976, we had only a table, two chairs
[PHOTO OF and a telephone. At the time, Bob Graham, Gary Crum and I
Charles T. had the idea of creating a mutual fund company that put
Bauer, people first. Our slogan, "people are the product," means
Chairman of that people--our employees and our investors--are our
the Board of company.
THE FUND Almost a quarter-century later, we've grown to more than
APPEARS HERE] eight million investors, $176 billion in assets under
management and 55 retail funds. Over that time, the industry
[PHOTO OF as a whole has grown from $51 billion in assets to more than
Robert H. $7 trillion today. I never dreamed we would see such
Graham phenomenal growth. You are the main reason for our success,
APPEARS HERE] 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 A I M 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 GLOBAL UTILITIES FUND
<PAGE> 4
SEMIANNUAL REPORT / MANAGERS' OVERVIEW
AIM GLOBAL UTILITIES FUND STANDS UP TO ROCKY TECH MARKET
HOW DID THE FUND PERFORM?
Since today's utilities are highly technological, the fund's holdings were
affected by the technology sector's extreme volatility during the six-month
period ended June 30, 2000. While the turbulence hurt fund performance, the fund
still brought in returns ahead of its peers. Its cumulative total return for the
period, excluding sales charges, was 5.12% for Class A shares. Both Class B and
Class C shares returned 4.74%. This performance exceeded the results of
comparable funds in the Lipper Utility Fund Index, which produced a total return
of 1.64% for the period. It also outperformed the broad stock market, as
represented by the S&P 500, which lost money, producing a negative return of
-0.43%.
WHAT MAJOR TRENDS SHAPED THE MARKET DURING THE PERIOD?
Equity markets reached record highs near the beginning of 2000 in a rally
dominated by technology, media and telecommunications stocks, commonly dubbed
TMTs. This rally lasted until March, when a sharp sell-off in TMT stocks
occurred. In mid-April, the tech-heavy Nasdaq plunged, and other major markets
followed suit. The rest of the period was marked by intense day-to-day
volatility.
Electric utility stocks were one of the best performers during the first
half of the year. The dismantling of former regulatory structures continues to
reshape the industry both on the domestic front and abroad. Overseas, there is a
continuing trend to privatize utilities that were previously government-run. As
both trends feed increasing competition, emerging technologies are snapped up
and put to work as quickly as possible to create any potential competitive
advantage.
WHAT MADE TECHNOLOGY STOCKS SO VOLATILE?
A number of factors combined to shake investor confidence and contribute to
market volatility. In the stock market, a serious correction occurred in March
and April. Technology stocks reached a point at which investors reconsidered
their valuations, especially for companies with big ambitions but no earnings,
and a small sell-off snowballed. As in most market downturns, sound stocks were
abandoned along with the shaky ones as investors fled the whole arena.
Though affected, the fund avoided the worst of the damage, as it was not
heavily involved with the parts of the technology sector that bore the brunt of
the impact. The fund's technology holdings had been selected on the basis of
good earnings, and while some of them experienced drops in value at the time,
their earnings continued to be strong, and their values have already begun to
bounce back.
HOW DID THE FUND DEAL WITH THE UNSETTLED CONDITIONS?
We broadened our holdings in traditional electric companies. Electricity prices
are near all-time highs in some parts of the country, and our electrics
performed very well.
Most of the stocks in the fund's portfolio had earnings growth and solid
company fundamentals, making them good long-term investments, in our view. Many
of our major holdings are in the telephone, long-distance telecommunications and
communications-equipment industries, which are flourishing with the continuing
expansion of wireless communications and the Internet.
The fund has sought to capitalize on consolidation, which has been a major
theme in the utilities industry in the United States and Europe (see sidebar).
Fund holding JDS Uniphase completed a $15 billion acquisition of E-Tek Dynamics
on June 30. On July 11, after the reporting period closed, JDS bid $41 billion
for fiber-optics firm SDL (also a fund holding). We believe that this aggressive
acquisition strategy will continue to make JDS a leader in fiber optics.
WHAT HOLDINGS HAVE DONE NOTABLY WELL?
FPL Group produces more than 18,000 megawatts of electricity, principally from
oil, gas and nuclear power. In addition to distributing electricity to customers
from Maine to California, the company wholesales electric power, oil and natural
gas, and sells fiber-optic capacity to telecommunications, cable and Internet
providers. Its earnings rose 165% in the second quarter.
FUND OUTPERFORMS INDEXES
Six-month return as of 6/30/00,
excluding sales charges
================================================================================
CLASS A SHARES 5.12%
CLASS B SHARES 4.74%
CLASS C SHARES 4.74%
LIPPER UTILITY FUND INDEX 1.64%
S&P 500 -0.43%
================================================================================
See important fund and index disclosures inside front cover.
AIM GLOBAL UTILITIES FUND
2
<PAGE> 5
SEMIANNUAL REPORT / MANAGERS' OVERVIEW
PORTFOLIO COMPOSITION
As of 6/30/00, based on total net assets
<TABLE>
<CAPTION>
===================================================================================================================================
TOP 10 EQUITY HOLDINGS TOP 10 INDUSTRIES TOP 10 COUNTRIES
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1. Redback Networks, Inc. 3.65% 1. Telephone 21.85% 1. United States 64.01%
2. SBC Communications, Inc. 3.13 2. Electric Companies 18.97 2. United Kingdom 4.93
3. Williams Companies, Inc. (The) 2.10 3. Communications Equipment 11.23 3. Canada 3.35
4. Broadwing Inc. 1.94 4. Telecommunications (Long Distance) 8.98 4. Netherlands 2.74
5. WorldCom, Inc. 1.70 5. Natural Gas 6.33 5. Spain 2.48
6. Qwest Communications International Inc. 1.65 6. Telecommunications (Cellular/Wireless) 5.28 6. France 2.40
7. SDL, Inc. (Finland) 1.61 7. Power Producers (Independent) 2.50 7. Italy 2.19
8. Nokia Oyj--ADR 1.60 8. Water Utilities 2.26 8. Finland 2.15
9. Telefonica S.A. (Spain) 1.51 9. Broadcasting (Television, Radio & Cable) 2.24 9. Japan 1.19
10. VersaTel Telecom International N.V. 1.45 10. Electronics (Semiconductors) 1.97 10. Belgium 1.13
(Netherlands)
The fund's portfolio is subject to change, and there is no assurance that the
fund will continue to hold any particular security.
====================================================================================================================================
</TABLE>
Another of our stalwarts is SBC Communications, which started out in local
telephone service and has expanded into seemingly every aspect of communication
touched by a telephone: long distance, wireless, Internet access (through a
partnership with Prodigy), cable TV, directories, paging and security
monitoring.
The Williams Companies has expanded far beyond operating natural-gas
pipelines, and even beyond the related gas exploration, production, refining and
marketing businesses. It now also operates a national fiber-optic network that
offers telecom providers voice, data and video transmission services.
WHAT IS YOUR OUTLOOK FOR THE COMING SIX MONTHS?
The prospects for the utilities sector are very positive, both in the short term
and over the long haul. The world's need for electrical power and natural gas
shows no signs of slackening, and demand for computer and communications
equipment and services of all kinds continues to skyrocket. Now that the market
correction in technology-oriented stocks is behind us, we believe that this
continued brisk growth is likely to translate into vigorous stock performance.
Markets could be volatile for the near term because of interest-rate
concerns. But while rate increases could put pressure on more traditional
sectors of the economy, many technology and telecommunications companies have
moderate debt, making them less sensitive to the effects of rising interest
rates. Historically, weak markets are the ideal time to invest and prepare for
the next move up as companies innovate and grow in new areas. The fund will
maintain its focus on investing in sound companies with strong prospects for
earnings growth.
[COVER IMAGE]
UTILITIES ARE NO LONGER LOCAL
Utilities are expanding across national boundaries at an increasing pace. The
dollar volume of European merger deals has quintupled, from $200 billion
annually in the early 1990s to almost $1 trillion in 1999. In addition, 40% of
all global deals announced this year involve a European company as an acquirer.
One of the largest cross-border acquisitions was Vodafone AirTouch's hostile
takeover of Germany's Mannesmann. This acquisition made Britain's Vodafone (a
fund holding) the largest company in Europe. It is also the world's largest
wireless service, with more than 40 million subscribers in 25 countries.
See important fund and index disclosures inside front cover.
AIM GLOBAL UTILITIES FUND
3
<PAGE> 6
SCHEDULE OF INVESTMENTS
JUNE 30, 2000
(UNAUDITED)
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
DOMESTIC COMMON STOCKS-54.91%
BROADCASTING (TELEVISION, RADIO &
CABLE)-2.24%
Comcast Corp.-Class A(a) 64,700 $ 2,620,350
--------------------------------------------------------------
UnitedGlobalCom Inc.-Class A(a) 92,000 4,301,000
--------------------------------------------------------------
Univision Communications, Inc.-Class
A(a) 32,000 3,312,000
--------------------------------------------------------------
10,233,350
--------------------------------------------------------------
COMMUNICATIONS EQUIPMENT-9.11%
Aether Systems, Inc.(a) 19,000 3,895,000
--------------------------------------------------------------
Copper Mountain Networks, Inc.(a) 42,300 3,727,687
--------------------------------------------------------------
Corning Inc. 7,800 2,105,025
--------------------------------------------------------------
Efficient Networks, Inc.(a) 31,100 2,287,794
--------------------------------------------------------------
JDS Uniphase Corp.(a) 16,300 1,953,962
--------------------------------------------------------------
Juniper Networks, Inc.(a) 20,200 2,940,362
--------------------------------------------------------------
Lucent Technologies Inc. 87,200 5,166,600
--------------------------------------------------------------
Redback Networks Inc.(a) 93,800 16,696,400
--------------------------------------------------------------
Sycamore Networks, Inc.(a) 26,000 2,869,750
--------------------------------------------------------------
41,642,580
--------------------------------------------------------------
COMPUTERS (NETWORKING)-0.91%
Cisco Systems, Inc.(a) 50,800 3,228,975
--------------------------------------------------------------
Foundry Networks, Inc.(a) 8,600 950,300
--------------------------------------------------------------
4,179,275
--------------------------------------------------------------
COMPUTERS (PERIPHERALS)-0.45%
Net2000 Communications, Inc.(a) 124,100 2,032,137
--------------------------------------------------------------
COMPUTERS (SOFTWARE & SERVICES)-0.21%
Caminus Corp.(a) 38,800 950,600
--------------------------------------------------------------
ELECTRIC COMPANIES-12.11%
Allegheny Energy, Inc. 210,600 5,765,175
--------------------------------------------------------------
Constellation Energy Group 171,000 5,568,187
--------------------------------------------------------------
Duke Power Co. 99,000 5,581,125
--------------------------------------------------------------
Energy East Corp. 262,400 5,002,000
--------------------------------------------------------------
FPL Group, Inc. 121,300 6,004,350
--------------------------------------------------------------
Montana Power Co. (The) 95,500 3,372,344
--------------------------------------------------------------
Niagara Mohawk Holdings Inc.(a) 459,600 6,405,675
--------------------------------------------------------------
NiSource, Inc. 340,100 6,334,362
--------------------------------------------------------------
Peco Energy Co. 117,500 4,736,719
--------------------------------------------------------------
Pinnacle West Capital Corp. 194,800 6,598,850
--------------------------------------------------------------
55,368,787
--------------------------------------------------------------
ELECTRICAL EQUIPMENT-0.51%
Capstone Turbine Corp.(a) 51,900 2,338,744
--------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
ELECTRONICS (DEFENSE)-0.37%
General Motors Corp.-Class H(a) 19,500 $ 1,711,125
--------------------------------------------------------------
ELECTRONICS (SEMICONDUCTORS)-1.97%
SDL, Inc.(a) 25,800 7,357,837
--------------------------------------------------------------
Vitesse Semiconductor Corp.(a) 22,200 1,633,088
--------------------------------------------------------------
8,990,925
--------------------------------------------------------------
ENGINEERING & CONSTRUCTION-1.34%
Quanta Services, Inc.(a) 111,000 6,105,000
--------------------------------------------------------------
NATURAL GAS-4.50%
Dynegy Inc.-Class A 89,400 6,107,138
--------------------------------------------------------------
Enron Corp. 75,000 4,837,500
--------------------------------------------------------------
Williams Cos., Inc. (The) 230,800 9,621,475
--------------------------------------------------------------
20,566,113
--------------------------------------------------------------
POWER PRODUCERS (INDEPENDENT)-1.03%
AES Corp. (The)(a) 102,800 4,690,250
--------------------------------------------------------------
SERVICES (COMMERCIAL &
CONSUMER)-0.74%
Convergys Corp.(a) 65,000 3,371,875
--------------------------------------------------------------
SERVICES (COMPUTER SYSTEMS)-0.58%
Clarent Corp.(a) 36,900 2,638,350
--------------------------------------------------------------
TELECOMMUNICATIONS-0.48%
Williams Communications Group,
Inc.(a) 66,100 2,193,694
--------------------------------------------------------------
TELECOMMUNICATIONS (CELLULAR/
WIRELESS)-2.41%
Level 3 Communications, Inc.(a) 14,000 1,232,000
--------------------------------------------------------------
Phone.com, Inc.(a) 60,900 3,966,113
--------------------------------------------------------------
TeleCorp PCS, Inc.(a) 40,300 1,624,594
--------------------------------------------------------------
Tritel, Inc.(a) 69,000 2,048,438
--------------------------------------------------------------
Western Wireless Corp.-Class A(a) 39,700 2,163,650
--------------------------------------------------------------
11,034,795
--------------------------------------------------------------
TELECOMMUNICATIONS (LONG
DISTANCE)-2.03%
Universal Access, Inc.(a) 58,500 1,433,250
--------------------------------------------------------------
Winstar Communications, Inc.(a) 2,392 81,029
--------------------------------------------------------------
WorldCom, Inc.(a) 169,589 7,779,895
--------------------------------------------------------------
9,294,174
--------------------------------------------------------------
TELEPHONE-13.92%
Bell Atlantic Corp. 122,300 6,214,369
--------------------------------------------------------------
BellSouth Corp. 66,800 2,847,350
--------------------------------------------------------------
Broadwing Inc.(a) 342,344 8,879,548
--------------------------------------------------------------
CenturyTel, Inc. 146,000 4,197,500
--------------------------------------------------------------
GTE Corp. 62,100 3,865,725
--------------------------------------------------------------
McLeodUSA, Inc.-Class A(a) 284,400 5,883,525
--------------------------------------------------------------
</TABLE>
4
<PAGE> 7
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
TELEPHONE-(CONTINUED)
NEXTLINK Communications, Inc.-Class
A(a) 86,800 $ 3,292,975
--------------------------------------------------------------
Qwest Communications International
Inc.(a) 152,100 7,557,469
--------------------------------------------------------------
SBC Communications Inc. 331,093 14,319,772
--------------------------------------------------------------
Time Warner Telecom, Inc.-Class A(a) 102,000 6,566,250
--------------------------------------------------------------
63,624,483
--------------------------------------------------------------
Total Domestic Common Stocks
(Cost $127,519,609) 250,966,257
--------------------------------------------------------------
FOREIGN STOCKS & OTHER EQUITY INTERESTS-24.10%
AUSTRALIA-0.55%
Telstra Corp. Ltd. (Telephone) 581,000 2,352,872
--------------------------------------------------------------
Telstra Corp. Ltd.-Installment
Receipts (Telephone) 72,000 163,421
--------------------------------------------------------------
2,516,293
--------------------------------------------------------------
BELGIUM-1.13%
Electrabel S.A. (Electric Companies) 21,000 5,180,550
--------------------------------------------------------------
BERMUDA-0.19%
Global Crossing Ltd.
(Telecommunications-Long
Distance)(a) 32,523 855,761
--------------------------------------------------------------
CANADA-2.42%
360networks Inc.
(Telecommunications-Long
Distance)(a) 120,000 1,830,000
--------------------------------------------------------------
AT&T Canada Inc. (Telephone)(a) 86,900 2,883,994
--------------------------------------------------------------
BCT.Telus Communications, Inc.
(Telephone) 55,382 1,478,900
--------------------------------------------------------------
BCT.Telus Communications, Inc.-Class
A (Telephone) 18,460 492,325
--------------------------------------------------------------
Nortel Networks Corp. (Communications
Equipment) 34,500 2,354,625
--------------------------------------------------------------
Rogers Cantel Mobile Communications
Inc.-Class B
(Telecommunications-
Cellular/Wireless)(a) 34,400 1,145,349
--------------------------------------------------------------
Westcoast Energy, Inc. (Natural Gas) 57,400 889,700
--------------------------------------------------------------
11,074,893
--------------------------------------------------------------
DENMARK-0.48%
Tele Danmark A.S.-ADR (Telephone) 65,000 2,210,000
--------------------------------------------------------------
FINLAND-2.15%
Nokia Oyj-ADR (Communications
Equipment) 146,600 7,320,838
--------------------------------------------------------------
Sonera Group Oyj
(Telecommunications-Cellular/
Wireless) 54,900 2,497,873
--------------------------------------------------------------
9,818,711
--------------------------------------------------------------
FRANCE-2.02%
France Telecom S.A.-ADR (Telephone) 39,000 5,557,500
--------------------------------------------------------------
Suez Lyonnaise des Eaux S.A.
(Manufacturing-Diversified) 20,900 3,654,323
--------------------------------------------------------------
9,211,823
--------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
GERMANY-0.54%
E.On A.G.
(Manufacturing-Diversified)(a) 50,560 $ 2,476,251
--------------------------------------------------------------
HUNGARY-0.32%
Magyar Tavkozlesi Rt-ADR
(Telecommunications-Long Distance) 42,700 1,470,481
--------------------------------------------------------------
IRELAND-0.88%
eircom PLC (Telecommunications-Long
Distance) 1,499,100 3,999,569
--------------------------------------------------------------
ITALY-2.19%
ACEA S.p.A. (Water Utilities) 388,800 6,183,112
--------------------------------------------------------------
AEM S.p.A. (Electric Companies) 645,000 2,550,541
--------------------------------------------------------------
Enel S.p.A. (Electric Companies) 293,100 1,295,861
--------------------------------------------------------------
10,029,514
--------------------------------------------------------------
JAPAN-1.19%
Nippon Telegraph & Telephone Corp.
(Telecommunications-Long Distance) 125 1,660,152
--------------------------------------------------------------
Nippon Telegraph & Telephone
Corp.-ADR
(Telecommunications-Long Distance) 30,000 2,051,250
--------------------------------------------------------------
NTT DoCoMo, Inc.
(Telecommunications-Cellular/
Wireless) 63 1,703,104
--------------------------------------------------------------
5,414,506
--------------------------------------------------------------
MEXICO-0.18%
Grupo Iusacell S.A.-ADR
(Telecommunications-
Cellular/Wireless)(a) 51,600 806,250
--------------------------------------------------------------
NETHERLANDS-2.74%
Completel Europe N.V.
(Telecommunications-Long
Distance)(a) 121,000 1,498,833
--------------------------------------------------------------
KPNQwest N.V.
(Telecommunications-Long
Distance)(a) 65,700 2,579,213
--------------------------------------------------------------
Libertel N.V.
(Telecommunications-Cellular/
Wireless)(a) 121,000 1,838,953
--------------------------------------------------------------
Versatel Telecom International N.V.
(Telecommunications-Long
Distance)(a) 158,000 6,624,213
--------------------------------------------------------------
12,541,212
--------------------------------------------------------------
SOUTH KOREA-0.82%
Korea Telecom Corp.-ADR (Telephone) 77,800 3,763,575
--------------------------------------------------------------
SPAIN-2.48%
Endesa S.A. (Electric Companies) 227,000 4,388,665
--------------------------------------------------------------
Telefonica S.A. (Telephone)(a) 322,838 6,921,364
--------------------------------------------------------------
11,310,029
--------------------------------------------------------------
SWEDEN-0.38%
Telia A.B. (Telephone)(a) 185,800 1,746,320
--------------------------------------------------------------
UNITED KINGDOM-3.44%
COLT Telecom Group PLC (Telephone) 51,800 1,724,101
--------------------------------------------------------------
Kelda Group PLC (Water Utilities) 538,407 2,631,016
--------------------------------------------------------------
National Grid Group PLC (Electric
Companies) 131,526 1,036,715
--------------------------------------------------------------
Scottish Power PLC (Electric
Companies) 711,850 6,030,964
--------------------------------------------------------------
</TABLE>
5
<PAGE> 8
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
UNITED KINGDOM-(CONTINUED)
United Utilities PLC (Water
Utilities) 151,936 $ 1,503,310
--------------------------------------------------------------
Vodafone AirTouch PLC
(Telecommunications-Cellular/Wireless) 693,665 2,802,020
--------------------------------------------------------------
15,728,126
--------------------------------------------------------------
Total Foreign Stocks & Other
Equity Interests (Cost
$79,500,719) 110,153,864
--------------------------------------------------------------
DOMESTIC CONVERTIBLE PREFERRED STOCKS-4.71%
COMPUTERS (SOFTWARE & SERVICES)-0.64%
PSINet, Inc.-Series C, $3.38 Conv.
Pfd. 60,000 2,932,500
--------------------------------------------------------------
NATURAL GAS-1.05%
El Paso Energy Cap Trust, Inc.- $2.38
Conv. Pfd. 74,500 4,795,937
--------------------------------------------------------------
POWER PRODUCERS (INDEPENDENT)-1.19%
Calpine Capital Trust-$2.88 Conv.
Pfd. 46,100 5,451,325
--------------------------------------------------------------
TELECOMMUNICATIONS (CELLULAR/
WIRELESS)-0.26%
MediaOne Group, Inc.-$3.04 Conv. Pfd. 29,200 1,182,600
--------------------------------------------------------------
TELECOMMUNICATIONS (LONG
DISTANCE)-1.23%
Viatel, Inc., $3.88 Conv. Pfd.
(Acquired 04/07/00; Cost
$4,025,000)(b) 80,500 3,079,125
--------------------------------------------------------------
Winstar Communications, Inc.-Series
F, $72.50 Conv. Pfd. 2,600 2,572,700
--------------------------------------------------------------
5,651,825
--------------------------------------------------------------
TELEPHONE-0.34%
Broadwing Inc.-Series B, $3.38 Conv.
Pfd. 8,000 376,000
--------------------------------------------------------------
NEXTLINK Communications, Inc.-$3.25
Conv. Pfd. 3,000 529,500
--------------------------------------------------------------
NEXTLINK Communications, Inc.-$3.25
Conv. Pfd. (Acquired 03/26/98; Cost
$180,000)(b) 3,600 635,400
--------------------------------------------------------------
1,540,900
--------------------------------------------------------------
Total Domestic Convertible
Preferred Stocks
(Cost $18,844,973) 21,555,087
--------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
<S> <C> <C>
U.S. DOLLAR DENOMINATED BONDS & NOTES-4.39%
COMPUTERS (HARDWARE)-0.73%
Candescent Technology Corp., Sr.
Conv. Sub. Deb., 8.00%,
05/01/03 (Acquired
04/17/98-11/30/98; Cost
$4,509,350)(b) $ 4,605,000 3,338,625
---------------------------------------------------------------
ELECTRIC COMPANIES-1.16%
Indiana Michigan Power Co.-Series
F, Sec. Lease Obligation Bonds,
9.82%, 12/07/22 3,020,393 3,267,642
---------------------------------------------------------------
Western Resources, Inc., Sr.
Unsec. Notes, 6.25%, 08/15/03 1,500,000 1,312,110
---------------------------------------------------------------
7.13%, 08/01/09 900,000 737,316
---------------------------------------------------------------
5,317,068
---------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
<S> <C> <C>
FINANCIAL (DIVERSIFIED)-1.01%
Limestone Electron Trust, Sr.
Notes, 8.63%, 03/15/03,
(Acquired 03/15/00; Cost
$4,550,000)(b) $ 4,550,000 $ 4,593,043
---------------------------------------------------------------
NATURAL GAS-0.27%
Dynegy Inc., Sr. Unsec. Deb.,
7.13%, 05/15/18 1,400,000 1,231,118
---------------------------------------------------------------
POWER PRODUCERS
(INDEPENDENT)-0.28%
AES Corp. (The),
Sr. Notes, 8.00%, 12/31/08 330,000 285,450
---------------------------------------------------------------
Sr. Unsec. Sub. Notes, 10.25%,
07/15/06 1,000,000 1,002,500
---------------------------------------------------------------
1,287,950
---------------------------------------------------------------
TELECOMMUNICATIONS (LONG
DISTANCE)-0.41%
AT&T Corp., Sr. Notes, 7.75%,
03/01/07 1,850,000 1,883,929
---------------------------------------------------------------
TELEPHONE-0.53%
NTL Inc., Conv. Sub. Notes,
5.75%, 12/15/09
(Acquired 12/17/99-03/01/00;
(Cost $3,029,184)(b) 3,000,000 2,396,250
---------------------------------------------------------------
Total U.S. Dollar Denominated
Bonds & Notes (Cost
$22,955,559) 20,047,983
---------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT(c)
<S> <C> <C>
NON-U.S. DOLLAR DENOMINATED BONDS &
NOTES-2.80%
CANADA-0.93%
Clearnet Communications Inc.
(Telecommunications-Cellular/Wireless),
Sr. Unsec. Disc. Notes, 10.75%,
02/15/09(d) CAD 3,000,000 1,135,749
---------------------------------------------------------------
Teleglobe Canada Inc.
(Telecommunications-Long
Distance) Unsec. Deb., 8.34%,
06/20/03 CAD 2,400,000 1,668,253
---------------------------------------------------------------
TransCanada Pipelines-Series Q
(Natural Gas), Deb., 10.63%,
10/20/09 CAD 1,750,000 1,458,077
---------------------------------------------------------------
4,262,079
---------------------------------------------------------------
FRANCE-0.38%
France Telecom (Telephone), Conv.
Bonds, 2.00%, 01/01/04 FRF 6,455,040 1,758,786
---------------------------------------------------------------
UNITED KINGDOM-1.49%
COLT Telecom Group PLC
(Telephone), Conv. Bonds,
2.00%, 12/16/06
(Acquired 12/09/99; Cost
$1,513,645)(b) EUR 1,475,000 1,261,395
---------------------------------------------------------------
</TABLE>
6
<PAGE> 9
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
<S> <C> <C>
UNITED KINGDOM-(CONTINUED)
National Grid Co. PLC (Electric
Companies) Conv. Bond 4.25%,
02/17/08 (Acquired 02/05/98;
Cost $4,574,700)(b) GBP 2,760,000 $ 5,527,456
---------------------------------------------------------------
6,788,851
---------------------------------------------------------------
Total Non-U.S. Dollar
Denominated Bonds & Notes
(Cost $11,882,331) 12,809,716
---------------------------------------------------------------
<CAPTION>
SHARES
<S> <C> <C>
MONEY MARKET FUNDS-8.33%
STIC Liquid Assets Portfolio(e) 19,047,372 19,047,372
---------------------------------------------------------------
STIC Prime Portfolio(e) 19,047,372 19,047,372
---------------------------------------------------------------
Total Money Market Funds
(Cost $38,094,744) 38,094,744
---------------------------------------------------------------
TOTAL INVESTMENTS-99.24%
(Cost $298,797,935) 453,627,651
---------------------------------------------------------------
OTHER ASSETS LESS
LIABILITIES-0.76% 3,453,203
---------------------------------------------------------------
NET ASSETS-100.00% $ 457,080,854
===============================================================
</TABLE>
Investment Abbreviations:
ADR - American Depositary Receipt
CAD - Canadian Dollars
Conv. - Convertible
Deb. - Debentures
Disc. - Discounted
EUR - Euro
FRF - French Franc
GBP - British Pound Sterling
Gtd. - Guaranteed
Pfd. - Preferred
Sec. - Secured
Sr. - Senior
Sub. - Subordinated
Unsec. - Unsecured
Notes to Schedule of Investments:
(a) Non-income producing security.
(b) Restricted security. May be resold to qualified institutional buyers in
accordance with the provisions of Rule 144A under the Securities Act of
1933, as amended. The valuation of these securities has been determined in
accordance with procedures established by the Board of Trustees. The
aggregate market value of these securities at 06/30/00 was $20,831,294 which
represented 4.56% of the Fund's net assets.
(c) Foreign denominated security. Par value is denominated in currency
indicated.
(d) Discounted bond at purchase. The interest rate represents the coupon rate at
which the bond will accrue at a specified future date.
(e) 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
$298,797,935) $453,627,651
---------------------------------------------------------
Foreign currencies, at value (cost
$1,119,675) 1,121,147
---------------------------------------------------------
Receivables for:
---------------------------------------------------------
Investments sold 3,472,112
---------------------------------------------------------
Fund shares sold 1,803,007
---------------------------------------------------------
Dividends and interest 1,050,798
---------------------------------------------------------
Investment for deferred compensation plan 34,503
---------------------------------------------------------
Total assets 461,109,218
---------------------------------------------------------
LIABILITIES:
Payables for:
---------------------------------------------------------
Investments purchased 2,189,839
---------------------------------------------------------
Fund shares reacquired 1,067,015
---------------------------------------------------------
Deferred compensation plan 34,503
---------------------------------------------------------
Accrued advisory fees 203,519
---------------------------------------------------------
Accrued administrative services fees 9,102
---------------------------------------------------------
Accrued distribution fees 381,988
---------------------------------------------------------
Accrued trustees' fees 1,835
---------------------------------------------------------
Accrued transfer agent fees 66,330
---------------------------------------------------------
Accrued operating expenses 74,233
---------------------------------------------------------
Total liabilities 4,028,364
---------------------------------------------------------
Net assets applicable to shares outstanding $457,080,854
=========================================================
NET ASSETS:
Class A $276,171,324
=========================================================
Class B $166,457,343
=========================================================
Class C $ 14,452,187
=========================================================
SHARES OUTSTANDING, $0.01 PAR VALUE PER
SHARE:
Class A 10,115,231
=========================================================
Class B 6,113,681
=========================================================
Class C 531,005
=========================================================
Class A:
Net asset value and redemption price per
share $ 27.30
---------------------------------------------------------
Offering price per share:
(Net asset value of $27.30 divided by
94.50%) $ 28.89
=========================================================
Class B:
Net asset value and offering price per
share $ 27.23
=========================================================
Class C:
Net asset value and offering price per
share $ 27.22
=========================================================
</TABLE>
STATEMENT OF OPERATIONS
For the six months ended June 30, 2000
(Unaudited)
<TABLE>
<S> <C>
INVESTMENT INCOME:
Dividends (net of foreign withholding tax
$146,812) $ 3,533,165
---------------------------------------------------------
Interest 1,138,376
---------------------------------------------------------
Total investment income 4,671,541
---------------------------------------------------------
EXPENSES:
Advisory fees 1,199,544
---------------------------------------------------------
Administrative services fee 54,716
---------------------------------------------------------
Custodian fees 88,002
---------------------------------------------------------
Distribution fees -- Class A 335,673
---------------------------------------------------------
Distribution fees -- Class B 798,790
---------------------------------------------------------
Distribution fees -- Class C 54,807
---------------------------------------------------------
Transfer agent fees -- Class A 162,464
---------------------------------------------------------
Transfer agent fees -- Class B 124,965
---------------------------------------------------------
Transfer agent fees -- Class C 8,582
---------------------------------------------------------
Trustee's fees 4,196
---------------------------------------------------------
Other 109,221
---------------------------------------------------------
Total expenses 2,940,960
---------------------------------------------------------
Less: Expenses paid indirectly (2,396)
---------------------------------------------------------
Net expenses 2,938,564
---------------------------------------------------------
Net investment income 1,732,977
---------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENT SECURITIES AND FOREIGN
CURRENCIES
Net realized gain from:
Investment securities 37,292,462
---------------------------------------------------------
Foreign currencies 4,060
---------------------------------------------------------
37,296,522
---------------------------------------------------------
Change in net unrealized appreciation
(depreciation) of:
Investment securities (21,987,676)
---------------------------------------------------------
Foreign currencies 2,587
---------------------------------------------------------
(21,985,089)
---------------------------------------------------------
Net gain on investment securities and
foreign currencies 15,311,433
---------------------------------------------------------
Net increase in net assets resulting from
operations $17,044,410
=========================================================
</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 $ 1,732,977 $ 4,536,854
--------------------------------------------------------------------------------------------
Net realized gain from investment securities and foreign
currencies 37,296,522 30,572,537
--------------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) of
investment securities and foreign currencies (21,985,089) 64,063,548
--------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 17,044,410 99,172,939
--------------------------------------------------------------------------------------------
Distributions to shareholders from net investment income:
Class A (1,235,944) (3,130,474)
--------------------------------------------------------------------------------------------
Class B (206,587) (980,604)
--------------------------------------------------------------------------------------------
Class C (17,534) (28,383)
--------------------------------------------------------------------------------------------
Distributions to shareholders from net realized gains:
Class A -- (13,462,484)
--------------------------------------------------------------------------------------------
Class B -- (8,054,908)
--------------------------------------------------------------------------------------------
Class C -- (355,717)
--------------------------------------------------------------------------------------------
Share transactions-net:
Class A 28,412,342 (3,558,143)
--------------------------------------------------------------------------------------------
Class B 17,692,322 3,957,825
--------------------------------------------------------------------------------------------
Class C 7,626,471 2,679,799
--------------------------------------------------------------------------------------------
Net increase in net assets 69,315,480 76,239,850
--------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 387,765,374 311,525,524
--------------------------------------------------------------------------------------------
End of period $457,080,854 $387,765,374
============================================================================================
NET ASSETS CONSIST OF:
Shares of beneficial interest $257,007,401 $203,276,266
--------------------------------------------------------------------------------------------
Undistributed net investment income 231,600 (41,312)
--------------------------------------------------------------------------------------------
Undistributed net realized gain from investment securities
and foreign currencies 45,011,822 7,715,300
--------------------------------------------------------------------------------------------
Unrealized appreciation of investment securities and
foreign currencies 154,830,031 176,815,120
--------------------------------------------------------------------------------------------
$457,080,854 $387,765,374
============================================================================================
</TABLE>
See Notes to Financial Statements.
9
<PAGE> 12
NOTES TO FINANCIAL STATEMENTS
June 30, 2000
(Unaudited)
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES
AIM Global Utilities 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 a high total return.
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 are recorded on ex-dividend date,
and are declared and paid quarterly. Distributions from 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.
G. Bond Premiums -- It is the policy of the Fund not to amortize market premiums
on bonds for financial reporting purposes.
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 an annual rate of 0.60% on the first
$200 million of the Fund's average daily net assets, plus 0.50% on the next $300
million of the Fund's average daily net assets, plus 0.40% on the next $500
million of the Fund's average daily net assets, plus 0.30% on the Fund's average
daily net assets in excess of $1 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 $54,716 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 $170,188 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 $335,673,
$798,790 and $54,807, respectively, as compensation under the Plans.
AIM Distributors received commissions of $98,419 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 $7,794 in contingent deferred sales charges
imposed on redemptions of Fund shares.
Certain officers and trustees of the Trust are officers and directors of AIM,
AFS and AIM Distributors.
During the six months ended June 30, 2000, the Fund paid legal fees of $2,028
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) $2,396 under expense offset
arrangements which resulted in a reduction of the Fund's total expenses of
$2,396.
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.
11
<PAGE> 14
NOTE 6-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
$139,923,811 and $109,442,371, 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 $167,951,847
---------------------------------------------------------------------------
Aggregate unrealized (depreciation) of investment securities (13,122,131)
---------------------------------------------------------------------------
Net unrealized appreciation of investment securities $154,829,716
===========================================================================
Investments have the same cost for tax and financial
statement purposes.
</TABLE>
NOTE 7-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, 2000 DECEMBER 31, 1999
------------------------- -------------------------
SHARES AMOUNT SHARES AMOUNT
---------- ------------ ---------- ------------
<S> <C> <C> <C> <C>
Sold:
Class A 2,325,401 $ 67,388,696 1,548,711 $ 34,438,387
-------------------------------------------------------------------------------------------------------------------
Class B 1,095,314 30,639,781 884,404 19,574,340
-------------------------------------------------------------------------------------------------------------------
Class C 307,327 8,575,491 183,463 4,121,099
-------------------------------------------------------------------------------------------------------------------
Issued as reinvestment of dividends:
Class A 37,756 1,091,836 636,523 15,200,629
-------------------------------------------------------------------------------------------------------------------
Class B 6,415 178,790 332,374 7,978,341
-------------------------------------------------------------------------------------------------------------------
Class C 571 15,901 14,370 346,523
-------------------------------------------------------------------------------------------------------------------
Reacquired:
Class A (1,389,230) (40,068,190) (2,406,262) (53,197,159)
-------------------------------------------------------------------------------------------------------------------
Class B (466,854) (13,126,249) (1,070,971) (23,594,856)
-------------------------------------------------------------------------------------------------------------------
Class C (34,418) (964,921) (83,100) (1,787,823)
-------------------------------------------------------------------------------------------------------------------
1,882,282 $ 53,731,135 39,512 $ 3,079,481
===================================================================================================================
</TABLE>
12
<PAGE> 15
NOTE 8-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 1995
---------------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 26.08 $ 21.01 $ 19.26 $ 16.01 $ 14.59 $ 11.85
---------------------------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income 0.15 0.38 0.48 0.47 0.55 0.55
---------------------------------------------------------------------------------------------------------------------------------
Net gains on securities (both realized and unrealized) 1.19 6.60 2.53 3.26 1.43 2.71
---------------------------------------------------------------------------------------------------------------------------------
Total from investment operations 1.34 6.98 3.01 3.73 1.98 3.26
---------------------------------------------------------------------------------------------------------------------------------
Less distributions:
Dividends from net investment income (0.12) (0.35) (0.46) (0.47) (0.56) (0.52)
---------------------------------------------------------------------------------------------------------------------------------
Distributions from net realized gains -- (1.56) (0.80) (0.01) -- --
---------------------------------------------------------------------------------------------------------------------------------
Total distributions (0.12) (1.91) (1.26) (0.48) (0.56) (0.52)
---------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 27.30 $ 26.08 $ 21.01 $ 19.26 $ 16.01 $ 14.59
=================================================================================================================================
Total return(a) 5.12% 34.15% 16.01% 23.70% 13.88% 28.07%
=================================================================================================================================
Ratios/supplemental data:
Net assets, end of period (000s omitted) $276,171 $238,432 $196,665 $179,456 $164,001 $170,624
=================================================================================================================================
Ratio of expenses to average net assets 1.03%(b) 1.10% 1.06% 1.13% 1.17% 1.21%
=================================================================================================================================
Ratio of net investment income to average net assets 1.10%(b) 1.69% 2.39% 2.79% 3.62% 4.20%
=================================================================================================================================
Portfolio turnover rate 27% 37% 38% 26% 48% 88%
=================================================================================================================================
</TABLE>
(a) Total returns are not annualized for periods less than one year.
(b) Ratios are annualized and based on average net assets of $270,013,609.
<TABLE>
<CAPTION>
Class B
-----------------------------------------------------------------------
Six months ended Year Ended December 31,
June 30, ----------------------------------------------------
2000 1999 1998 1997 1996 1995
---------------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 26.03 $ 20.98 $ 19.24 $ 16.01 $ 14.60 $ 11.84
---------------------------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income 0.04 0.21 0.33 0.34 0.42 0.44
---------------------------------------------------------------------------------------------------------------------------------
Net gains on securities (both realized and unrealized) 1.19 6.59 2.53 3.25 1.44 2.73
---------------------------------------------------------------------------------------------------------------------------------
Total from investment operations 1.23 6.80 2.86 3.59 1.86 3.17
---------------------------------------------------------------------------------------------------------------------------------
Less distributions:
Dividends from net investment income (0.03) (0.19) (0.32) (0.35) (0.45) (0.41)
---------------------------------------------------------------------------------------------------------------------------------
Distributions from net realized gains -- (1.56) (0.80) (0.01) -- --
---------------------------------------------------------------------------------------------------------------------------------
Total distributions (0.03) (1.75) (1.12) (0.36) (0.45) (0.41)
---------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 27.23 $ 26.03 $ 20.98 $ 19.24 $ 16.01 $ 14.60
=================================================================================================================================
Total return(a) 4.74% 33.16% 15.14% 22.74% 12.98% 27.16%
=================================================================================================================================
Ratios/supplemental data:
Net assets, end of period (000s omitted) $166,457 $142,632 $111,866 $ 94,227 $ 79,530 $ 70,693
=================================================================================================================================
Ratio of expenses to average net assets 1.82%(b) 1.84% 1.81% 1.91% 1.96% 1.97%
=================================================================================================================================
Ratio of net investment income to average net assets 0.31%(b) 0.95% 1.64% 2.01% 2.83% 3.44%
=================================================================================================================================
Portfolio turnover rate 27% 37% 38% 26% 48% 88%
=================================================================================================================================
</TABLE>
(a) Does not deduct contingent deferred sales charges and is not annualized for
periods less than one year.
(b) Ratios are annualized and based on average net assets of $160,635,719.
13
<PAGE> 16
NOTE 8-FINANCIAL HIGHLIGHTS-(CONTINUED)
<TABLE>
<CAPTION>
Class C
----------------------------------------------------
August 4, 1997
(Date sales
Year Ended commenced)
Six months ended December 31, through
June 30, ---------------- December 31,
2000 1999(a) 1998 1997
---------------- ------- ------ --------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 26.02 $20.97 $19.24 $17.67
---------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income 0.04 0.21 0.33 0.13
---------------------------------------------------------------------------------------------------------------
Net gains on securities (both realized and unrealized) 1.19 6.59 2.52 1.58
---------------------------------------------------------------------------------------------------------------
Total from investment operations 1.23 6.80 2.85 1.71
---------------------------------------------------------------------------------------------------------------
Less distributions:
Dividends from net investment income (0.03) (0.19) (0.32) (0.13)
---------------------------------------------------------------------------------------------------------------
Distributions from net realized gains -- (1.56) (0.80) (0.01)
---------------------------------------------------------------------------------------------------------------
Total distributions (0.03) (1.75) (1.12) (0.14)
---------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 27.22 $26.02 $20.97 $19.24
===============================================================================================================
Total return(b) 4.74% 33.18% 15.09% 9.74%
===============================================================================================================
Ratios/supplemental data:
Net assets, end of period (000s omitted) $14,452 $6,702 $2,994 $1,183
===============================================================================================================
Ratio of expenses to average net assets 1.82%(c) 1.84% 1.81% 1.90%(d)
===============================================================================================================
Ratio of net investment income to average net assets 0.31%(c) 0.95% 1.64% 2.02%(d)
===============================================================================================================
Portfolio turnover rate 27% 37% 38% 26%
===============================================================================================================
</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 $11,021,649.
(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 Global
Utilities 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) Approval of a new Investment Advisory Agreement............. 7,098,827 164,859 2,230,187*
(3)(a) Change to Fundamental Restriction on Issuer
Diversification............................................. 7,007,256 211,907 2,274,710*
(3)(b) Change to Fundamental Restriction on Borrowing Money and
Issuing Senior Securities................................... 6,972,175 243,425 2,278,273*
(3)(c) Change to or Addition of Fundamental Restriction on
Underwriting Securities..................................... 7,000,255 212,165 2,281,453*
(3)(d) Change to or Addition of Fundamental Restriction on Industry
Concentration............................................... 7,004,582 221,930 2,267,361*
(3)(e) Change to Fundamental Restriction on Purchasing or Selling
Real Estate................................................. 6,977,645 239,916 2,276,312*
(3)(f) Change to Fundamental Restriction on Purchasing or Selling
Commodities and Elimination of Fundamental Restriction on
Puts and Calls.............................................. 6,929,042 278,574 2,286,257*
(3)(g) Change to Fundamental Restriction on Making Loans........... 6,921,097 271,552 2,301,224*
(3)(h) Approval of a new Fundamental Investment Restriction on
Investing all of the Fund's assets in an Open-End Fund...... 6,956,037 236,412 2,301,424*
(3)(i) Elimination of Fundamental Restriction on Margin
Transactions................................................ 6,821,021 359,241 2,313,611*
(3)(j) Elimination of Fundamental Restriction on Short Sales of
Securities.................................................. 6,861,377 322,438 2,310,058*
(4) Approval of Changing the Investment Objective and Making it
Non-Fundamental............................................. 6,837,392 332,712 2,323,769*
(5) Ratification of the selection of KPMG LLP as Independent
Accountants of the Fund..................................... 9,002,666 55,703 435,504
</TABLE>
---------------
* Includes Broker Non-Votes
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
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. and Karen Dunn Kelley
Twenty First Century Group, Inc. Vice President Ballard Spahr
Formerly Member Andrews & Ingersoll, LLP
of the U.S. House of Representatives Edgar M. Larsen 1735 Market Street
Vice President Philadelphia, PA 19103
Carl Frischling
Partner Mary J. Benson COUNSEL TO THE TRUSTEES
Kramer, Levin, Naftalis & Frankel LLP Assistant Vice President and
Assistant Treasurer Kramer, Levin, Naftalis & Frankel LLP
Robert H. Graham 919 Third Avenue
Director, President and Chief Executive Officer Sheri Morris New York, NY 10022
A I M Management Group Inc. Assistant Vice President and
Assistant Treasurer DISTRIBUTOR
Prema Mathai-Davis
Formerly, Chief Executive Officer, Renee A. Friedli A I M Distributors, Inc.
YWCA of the U.S.A. Assistant Secretary 11 Greenway Plaza
Suite 100
Lewis F. Pennock P. Michelle Grace Houston, TX 77046
Attorney Assistant Secretary
Louis S. Sklar Nancy L. Martin
Executive Vice President, Assistant Secretary
Development and Operations,
Hines Interests Ofelia M. Mayo
Limited Partnership Assistant Secretary
Lisa A. Moss
Assistant Secretary
Kathleen J. Pflueger
Assistant Secretary
Samuel D. Sirko
Assistant Secretary
</TABLE>
16
<PAGE> 19
-------------------------------------
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or exchange shares of AIM funds in your AIM account simply by visiting our
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<PAGE> 20
THE AIM FAMILY OF FUNDS--Registered Trademark--
EQUITY FUNDS
<TABLE>
<CAPTION>
<S> <C> <C>
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 million
AIM Small Cap Opportunities(1) AIM Latin American Growth shareholders, including individual
AIM Mid Cap Opportunities(2) AIM Developing Markets investors, corporate clients and
AIM Large Cap Opportunities AIM Asian Growth financial institutions, as of June 30,
AIM Emerging Growth AIM Japan Growth 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, and
AIM Mid Cap Growth AIM Global Aggressive Growth AIM today is the eighth-largest mutual fund
AIM Capital Development AIM International Equity complex in the United States in assets
AIM Constellation(4) AIM Advisor International Value under management, according to Strategic
AIM Dent Demographic Trends AIM Global Trends(6) Insight, an independent mutual fund
AIM Select Growth AIM Global Growth 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 Global Telecommunications and Technology
AIM Balanced AIM Global Resources
AIM Advisor Flex AIM Global Financial Services
AIM Global Health Care
MORE CONSERVATIVE 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 MORE CONSERVATIVE
AIM Limited Maturity Treasury
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 LOGO APPEARS HERE] [AIM LOGO APPEARS HERE]
--Registered Trademark--
[INVEST WITH DISCIPLINE]
--Registered Trademark--
A I M Distributors, Inc. GLU-SAR-1
