<PAGE> 1
SEMIANNUAL REPORT / JUNE 30 2000
AIM SELECT GROWTH FUND
[COVER IMAGE]
[AIM LOGO APPEARS HERE]
--Registered Trademark--
<PAGE> 2
[ 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. AIM SELECT GROWTH FUND
SEEKS TO MEET ITS OBJECTIVE BY INVESTING PRIMARILY IN COMMON
STOCKS WITH PROSPECTS FOR ABOVE-AVERAGE MARKET RETURNS,
WITHOUT REGARD TO MARKET CAPITALIZATION.
-------------------------------------
AIM Select Growth Fund is for shareholders who seek long-term growth of capital.
ABOUT FUND PERFORMANCE AND PORTFOLIO DATA THROUGHOUT THIS REPORT:
o AIM Select Growth Fund's performance figures are historical, and they
reflect the reinvestment of distributions and changes in net asset value.
o When sales charges are included in performance figures, Class A share
performance reflects the maximum 5.50% sales charge, and Class B and Class C
share performance reflects the applicable contingent deferred sales charge
(CDSC) for the period involved. The CDSC on Class B shares declines from 5%
beginning at the time of purchase to 0% at the beginning of the seventh
year. The CDSC on Class C shares is 1% for the first year after purchase.
The performance of the fund's Class B and Class C shares will differ from
that of its Class A shares due to different sales-charge structure and class
expenses.
o Investing in mico-, small- and mid-sized companies may involve risks not
associated with investing in more established companies. Also, micro and
small companies may have business risk, significant stock-price fluctuations
and illiquidity.
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 Lipper Multi-Cap Growth Fund Index represents an average of
the performance of the 30 largest multi-capitalization growth funds tracked
by Lipper, Inc., an independent mutual fund performance monitor.
o The unmanaged Russell 3000 Index represents the performance of the broad
market.
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.
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
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
APPEARS HERE] than eight million investors, $176 billion in assets under
management and 53 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 SELECT GROWTH FUND
<PAGE> 4
SEMIANNUAL REPORT / MANAGERS' OVERVIEW
AIM SELECT GROWTH FUND RISES DESPITE ROCKY MARKETS
HOW DID AIM SELECT GROWTH FUND PERFORM DURING THE FIRST HALF OF 2000?
Given the volatility that characterized the markets during the first half of the
year, the fund performed exceptionally well for shareholders. For the six-month
period ended June 30, 2000, total returns for the fund's Class A, Class B and
Class C shares were 16.16%, 15.71% and 15.68%, respectively. These figures are
at net asset value, which means that they do not include sales charges. The fund
significantly outperformed the Russell 3000 Index, the Lipper Multi-Cap Growth
Fund Index and the S&P 500, which returned 0.95%, 7.40% and -0.43%,
respectively, during the same period.
The fund's total net assets rose from $1.1 billion to $1.3 billion during
the reporting period.
HOW DID THE MARKETS AS A WHOLE PERFORM DURING THE FIRST SIX MONTHS OF THE YEAR?
U.S. equity markets experienced significant volatility during the first half of
2000, and investors shifted their investment strategies to deal with this
volatility, which was most pronounced among formerly high-flying technology
stocks, many of which fell sharply in March and April. But many non-technology
stocks, particularly those that announced potential earnings shortfalls, were
volatile as well during the first half of the year.
While some investors sought safety by shifting from growth stocks to value
stocks following the March/April technology sell-off, others simply moved to
cash--and waited. They waited to see whether the Federal Reserve Board (the Fed)
would continue its year-long series of interest-rate increases, waited to see
where the economy was headed and waited to evaluate mid-year corporate earnings
reports. As they waited, the markets drifted for much of May and June.
HOW DID THE FUND TAKE ADVANTAGE OF THESE MARKET TRENDS?
AIM Select Growth Fund is an all-capitalization fund run by representatives of
each of the investment teams at AIM; representatives meet and propose their
high-conviction ideas for the fund. Team consensus results in an
all-capitalization, all-investment-style stock fund composed of the best ideas
from the growth, growth-at-a-reasonable-price and value teams. In a volatile,
rotational market this kind of mix can be beneficial.
For example, when small-cap stocks began outperforming the rest of the
market, the fund was already exposed to the better stocks in that area. When
value stocks "popped," we already had representation in that area from our
large-cap value team. Such rotations occur rapidly, and they are impossible to
time. Being constantly invested in all investment styles has helped the fund
participate in these rotational rallies.
HOW WAS THE FUND POSITIONED AT THE CLOSE OF THE REPORTING PERIOD?
The fund's sector weightings are a result of individual stock selection, not
sector selection, since fund managers use a bottom-up approach when deciding
whether or not to buy a particular stock. The sector most heavily represented in
the portfolio at the close of the reporting period was technology, which
accounted for 45% of the fund's total net assets, and which con-
FUND PERFORMANCE
TOTAL RETURNS OF CLASS A, B AND C SHARES VS. INDEXES
12/31/99-6/30/00, excluding sales charges
================================================================================
FUND CLASS A SHARES 16.16%
FUND CLASS B SHARES 15.71%
FUND CLASS C SHARES 15.68%
LIPPER MULTI-CAP GROWTH FUND INDEX 7.40%
RUSSELL 3000 INDEX 0.95%
S&P 500 -0.43%
================================================================================
AVERAGE ANNUAL TOTAL RETURNS
As of 6/30/00, including sales charges
================================================================================
CLASS A SHARES
10 Years 16.07%
5 Years 24.98
1 Year 36.49*
*44.42% excluding sales charges
CLASS B SHARES
Inception (9/1/93) 20.34%
5 Years 25.19
1 Year 38.26*
*43.26% excluding CDSC
CLASS C SHARES
Inception (8/4/97) 26.22%
1 Year 42.19*
*43.19% excluding CDSC
================================================================================
Past performance cannot guarantee comparable future results. MARKET VOLATILITY
CAN SIGNIFICANTLY IMPACT SHORT-TERM PERFORMANCE. RESULTS OF AN INVESTMENT TODAY
MAY DIFFER SUBSTANTIALLY FROM THE HISTORICAL PERFORMANCE SHOWN.
See important fund and index disclosures inside front cover.
AIM SELECT GROWTH FUND
2
<PAGE> 5
SEMIANNUAL REPORT / MANAGERS' OVERVIEW
tributed to the fund's performance during the first half of 2000. Other major
sectors included health care (10%), capital goods (8%) and consumer cyclicals
(6%). We decreased the fund's consumer staples and financial holdings during the
reporting period.
In all, we held 114 stocks at the close of the reporting period. Combined,
the fund's top 10 holdings accounted for slightly more than 25% of total net
assets.
WHAT TECHNOLOGY STOCKS PERFORMED WELL FOR THE FUND?
One of the fund's largest holdings at the close of the reporting period was
PMC-Sierra, which designs, develops and markets broadband communications chips
used in a variety of networking devices. Companies including Cisco and Lucent
use PMC-Sierra semiconductors to improve transmission speed and performance on
the Internet and other high-bandwidth networks.
North Carolina-based Cree is another stock that has performed well for the
fund. Cree's blue and green light-emitting diodes (LEDs), which account for
about half of the company's sales, are used to make dashboard lights, market
tickers and other products; its silicon carbide wafers are sold primarily to
research labs. One Cree subsidiary makes full-color LED modules used in
large-area video screens, such as the giant video screen in New York's Times
Square.
WHAT NON-TECH STOCKS HAVE DONE WELL?
Two health-related stocks we like are Pfizer and Guidant. In June, following the
completion of its merger with Warner-Lambert, Pfizer--one of the fund's largest
holdings at the close of the reporting period--became the world's second-largest
drugmaker. Its prescription drugs include such market-leading names as arthritis
pain medicine Celebrex and cholesterol-lowering Lipitor. Its consumer brands are
even better-known, and include Zantac 75, Visine, Sudafed, Benadryl, Dentyne,
Certs, Desitin, Listerine, Schick, Efferdent and Ben Gay.
Guidant is a global manufacturer of cardiovascular therapeutic devices and
related products, such as defibrillators and pacemakers. Its vascular products
open blocked arteries, and the company also develops minimally invasive surgical
devices to speed patients' recovery following surgery. Guidant sells its
products in the United States and more than 100 other countries worldwide.
WHAT IS YOUR OUTLOOK GOING FORWARD?
There are signs that Fed rate hikes are beginning to slow the economy, possibly
obviating the need for additional increases. While a continuing tight labor
market and high oil prices remain concerns, we are cautiously optimistic that
the Fed will succeed in piloting the U.S. economy to a "soft landing." Indeed,
shortly after the close of the reporting period, based on positive
second-quarter earnings reports and the increasing likelihood that the Fed was
approaching the end of its tightening cycle, investor confidence seemed to
increase, and the markets rallied.
While some measure of market volatility will always be a fact of life for
investors, we continue to believe that carefully selected stocks, including
those in the technology sector, are attractive. Technology and
telecommunications companies in the United States and elsewhere are producing
innovative new products and infrastructure that could result in years of
above-average growth. AIM Select Growth Fund will continue to seek out
well-managed, financially strong, industry-leading companies with the potential
to appreciate.
-------------------------------------
THERE ARE SIGNS THAT FED RATE HIKES
ARE BEGINNING TO SLOW THE ECONOMY,
POSSIBLY OBVIATING THE NEED FOR
ADDITIONAL INCREASES.
-------------------------------------
PORTFOLIO COMPOSITION
As of 6/30/00, based on total net assets
<TABLE>
<CAPTION>
==========================================================================================================
TOP 10 HOLDINGS TOP 10 INDUSTRIES
----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
1. EMC Corp. 3.69% 1. Computers (Software & Services) 10.49%
2. Comverse Technology, Inc. 3.01 2. Communications Equipment 10.09
3. Oracle Corp. 2.73 3. Electronics (Semiconductors) 8.54
4. Pfizer Inc. 2.66 4. Computers (Peripherals) 6.48
5. PMC-Sierra, Inc. (Canada) 2.58 5. Electrical Equipment 4.66
6. Quanta Services, Inc. 2.41 6. Computers (Networking) 2.92
7. InfoSpace, Inc. 2.16 7. Health Care (Medical Products & Supplies) 2.78
8. Altera Corp. 2.15 8. Computers (Hardware) 2.68
9. Sun Microsystems, Inc. 2.14 9. Health Care (Drugs--Major Pharmaceuticals) 2.66
10. Nokia Oyj A.B.--ADR (Finland) 1.86 10. Financial (Diversified) 2.64
The fund's portfolio composition is subject to change, and there is no assurance
that the fund will continue to hold any particular security.
==========================================================================================================
</TABLE>
See important fund and index disclosures inside front cover.
AIM SELECT GROWTH FUND
3
<PAGE> 6
SEMIANNUAL REPORT / FOR CONSIDERATION
CHASING PERFORMANCE MAY HURT MORE THAN IT HELPS
In the wake of some of last year's eye-popping mutual fund returns of more than
100%, it may be hard to look at your own returns and not feel disappointed.
According to Lipper, Inc.(1), the average large-cap core mutual fund finished
1999 up 22.35%--a return that would be considered terrific in most other
years--while the average science and technology fund had an astounding return of
134.77% for the year. Industry trends point to the fact that some investors have
looked at such performance and said, "My investments haven't had that kind of
return. I need to change my portfolio." What's an investor to do?
LOOK AT THE BIG PICTURE
It's very tempting to look only at returns when you invest in a mutual fund. But
there are other factors to consider:
o How well does the fund match my financial goals?
Different kinds of mutual funds are appropriate for different people at
different stages. Are you a young adult early in your work life, or are you
approaching retirement? Are you investing to buy a house, car or other large
item soon, or are you investing for your later years?
If your investment plan has a rather long time horizon, you may be able to
invest more aggressively because you could have time to recoup should you
experience losses. If your needs are more immediate, you should assess how
aggressive you can afford to be--you may need to be more conservative than you
thought to meet your goal.
o How well does the fund match my tolerance for risk?
Many of the mutual funds that had such high-flying returns for 1999 are pretty
aggressive, investing in smaller, less-established companies, some of which
have not even realized a profit. So while these mutual funds have the potential
to make your money grow, they may also entail more risk than you may be prepared
to take.
Of course, investing in any mutual fund brings with it a certain amount of
risk, but this risk can vary widely depending on the types of holdings in which
a fund invests. It's important that you take a hard look at your risk tolerance
before investing in any fund, particularly if you are ratcheting up to a more
aggressive fund.
o How well does the fund fit into my portfolio?
When a market sector or mutual fund is doing well, you may be tempted to
overload your portfolio with the "winner of the moment." It seems to make
sense--you're making money with that investment so you should allocate more
money to it, right?
Be careful. A narrowly invested portfolio could be especially vulnerable to
market volatility. Spreading your investment over several types of funds or
investing in one diversified fund can help you spread out your risk--the more
diversified your portfolio, the less overlap it should have. Less overlap can
mean less risk.
PAST PERFORMANCE IS NO GUARANTEE
Last year's phenomenal returns were the result of a number of unique factors--
the strong U.S. economy, the proliferation of new technology companies and
record amounts of cash being poured into the stock market, to name a few. Even
so, it may seem that everyone came out a winner in 1999.
In reality, just a few large companies accounted for many of the markets'
records in 1999. More than half the stocks in the S&P 500(2) declined during the
year. The technology sector was clearly dominant--the tech component of the S&P
500 finished 1999 with a return of 75.11%, while the capital goods component of
the index, which came in second for the year, had a return of 28.76%.(3) So if
you didn't invest in technology in 1999, you probably didn't enjoy the same
performance as people who did.
As we've seen thus far in 2000, financial markets can be quite fickle,
revolving around investors' perceptions as much as hard facts. Because of the
ever-changing nature of the market environment, many high-performing mutual
funds don't repeat their gains from year to year. This doesn't necessarily mean
a fund had a "bad" year or that fund managers chose
--------------------------------------------------------------------------------
SEC SPEAKS OUT
In the wake of 1999's extraordinary fund performances, the Securities and
Exchange Commission (SEC), which regulates the mutual fund industry, says that
investors should temper their expectations and not make investment decisions
based only on past performance. The SEC also suggests that investors consider
the following factors when looking at a mutual fund:
-------------------------------------
Tax Efficiency
Age
Risk
Size
Volatility
Management
Expenses
-------------------------------------
Source: The Wall Street Journal, 1/25/00
AIM SELECT GROWTH FUND
4
<PAGE> 7
SEMIANNUAL REPORT / FOR CONSIDERATION
holdings poorly. It may just mean that the environment for a particular fund was
not as ideal as it had been in the past. This can be true for any mutual fund.
KEEP EXPECTATIONS REALISTIC
Along with recognizing how quickly the market environment can change, it's
important to keep your expectations realistic. Of course you would like your
investments to do well every year, but chances are they won't. It's the nature
of the beast. So what you should be shooting for is good performance over the
long term. While your investment may not have a stellar year every year, over
time its average returns may prove to be just what you hoped for.
Sometimes it's hard to be patient when it seems like everyone else's
investments are doing better than yours. You may be tempted to chase winning
performance by trying to time the market, switching in and out of funds as
markets or sectors go in and out of favor. But this strategy can greatly
increase your risk and it rarely works--you may end up with significantly lower
returns than if you'd just stayed put. (There can also be adverse tax
consequences.)
ASSET ALLOCATION: THE OLD STANDBY
The truth is, no one knows for sure what is going to perform well in the market,
which is why mutual fund investors should diversify using asset
allocation--spreading investments over several fund types (e.g., core, growth,
international and income). Unfortunately, some investors seem less interested in
asset allocation these days because they want to chase performance instead. And
when the market is roaring ahead, who can blame them?
But as Isaac Newton proved, what goes up must come down. A diversified
portfolio can offer some protection in a market downturn because when your
assets are spread over several different types of funds, chances are at least
one of them is keeping its head above water. And while a diversified fund
portfolio probably won't perform as well as the flashiest stock fund, it
probably won't do as badly as the worst of them either.
--------------------------------------------------------------------------------
Your financial advisor can help you determine what kinds of mutual funds best
fit your investment goals and risk tolerance. Talk to your financial advisor for
more information.
(1) Lipper, Inc. is an independent mutual fund performance monitor.
(2) The unmanaged Standard & Poor's Composite Index of 500 Stocks (the S&P 500)
is generally considered representative of the stock market.
(3) Source: Bloomberg.
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
DOLLAR-COST AVERAGING CAN LOWER THE COST OF INVESTING
One useful way to buy shares of a mutual fund is through dollar-cost averaging.
In such a plan, you invest a certain amount at regular intervals--say $200 per
month--which allows you to buy more shares when mutual fund prices go down and
fewer shares when prices go up. This gives you the benefit of your average cost
per share actually being less than the average price per share.
Please keep in mind that this example is hypothetical and is not indicative of
the performance of any investment, IRA or AIM fund. Dollar-cost averaging does
not assure a profit and does not protect against loss in declining markets.
Since dollar-cost averaging involves continuous investing regardless of
fluctuating securities prices, investors should consider their ability to
continue purchases over an extended period of time.
For more complete information about any AIM Fund(s), including sales charges and
expenses, ask your financial advisor or securities dealer for a free
prospectus(es). Please read the prospectus(es) carefully before you invest or
send money.
<TABLE>
<CAPTION>
=================================================================
MONTH AMOUNT INVESTED SHARE PRICE SHARES PURCHASED
-----------------------------------------------------------------
<S> <C> <C> <C>
JANUARY $ 200 $ 24 8.333
FEBRUARY 200 20 10.000
MARCH 200 14 14.286
APRIL 200 18 11.111
MAY 200 22 9.091
JUNE 200 24 8.333
6-MONTH TOTAL $1200 $122 61.154
=================================================================
</TABLE>
Average price per share: $122 divided by 6 = $20.33
Average cost per share: $1200 divided by 61.154 = $19.62
--------------------------------------------------------------------------------
AIM SELECT GROWTH FUND
5
<PAGE> 8
SCHEDULE OF INVESTMENTS
JUNE 30, 2000
(UNAUDITED)
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
DOMESTIC COMMON STOCKS-77.04%
BIOTECHNOLOGY-0.63%
Amgen Inc.(a) 120,000 $ 8,430,000
---------------------------------------------------------------
BROADCASTING (TELEVISION, RADIO &
CABLE)-0.87%
AT&T Corp.-Liberty Media
Group-Class A(a) 250,000 6,062,500
---------------------------------------------------------------
Radio One, Inc.-Class A(a) 74,000 2,187,625
---------------------------------------------------------------
Radio One, Inc.-Class D(a) 148,000 3,265,250
---------------------------------------------------------------
11,515,375
---------------------------------------------------------------
COMMUNICATIONS EQUIPMENT-5.96%
Avanex Corp.(a) 30,700 2,931,850
---------------------------------------------------------------
Comverse Technology, Inc.(a) 429,900 39,980,700
---------------------------------------------------------------
Finisar Corp.(a) 49,200 1,288,425
---------------------------------------------------------------
JDS Uniphase Corp.(a) 62,800 7,528,150
---------------------------------------------------------------
Juniper Networks, Inc.(a) 129,600 18,864,900
---------------------------------------------------------------
ONI Systems Corp.(a) 24,500 2,871,477
---------------------------------------------------------------
Sycamore Networks, Inc.(a) 52,200 5,761,575
---------------------------------------------------------------
79,227,077
---------------------------------------------------------------
COMPUTERS (HARDWARE)-2.68%
National Instruments Corp.(a) 165,000 7,198,125
---------------------------------------------------------------
Sun Microsystems, Inc.(a) 312,000 28,372,500
---------------------------------------------------------------
35,570,625
---------------------------------------------------------------
COMPUTERS (NETWORKING)-2.92%
Cisco Systems, Inc.(a) 288,000 18,306,000
---------------------------------------------------------------
Extreme Networks, Inc.(a) 131,000 13,820,500
---------------------------------------------------------------
VeriSign, Inc.(a) 38,000 6,707,000
---------------------------------------------------------------
38,833,500
---------------------------------------------------------------
COMPUTERS (PERIPHERALS)-6.48%
Brocade Communications Systems,
Inc.(a) 102,000 18,715,406
---------------------------------------------------------------
EMC Corp.(a) 636,280 48,953,792
---------------------------------------------------------------
Network Appliance, Inc.(a) 144,800 11,656,400
---------------------------------------------------------------
QLogic Corp.(a) 103,000 6,804,437
---------------------------------------------------------------
86,130,035
---------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
COMPUTERS (SOFTWARE &
SERVICES)-10.49%
Affiliated Computer Services,
Inc.-Class A(a) 22,600 $ 747,212
---------------------------------------------------------------
America Online, Inc.(a) 92,000 4,853,000
---------------------------------------------------------------
BEA Systems, Inc.(a) 294,000 14,534,625
---------------------------------------------------------------
Citrix Systems, Inc.(a) 219,000 4,147,312
---------------------------------------------------------------
InfoSpace, Inc.(a) 519,000 28,674,750
---------------------------------------------------------------
ISS Group, Inc.(a) 16,400 1,619,244
---------------------------------------------------------------
Marimba, Inc.(a) 17,000 236,937
---------------------------------------------------------------
Oracle Corp.(a) 432,000 36,315,000
---------------------------------------------------------------
Secure Computing Corp.(a) 630,000 11,851,875
---------------------------------------------------------------
Siebel Systems, Inc.(a) 74,000 12,103,625
---------------------------------------------------------------
StorageNetworks, Inc.(a) 5,100 460,275
---------------------------------------------------------------
VERITAS Software Corp.(a) 168,750 19,071,387
---------------------------------------------------------------
WatchGuard Technologies, Inc.(a) 85,000 4,669,687
---------------------------------------------------------------
139,284,929
---------------------------------------------------------------
DISTRIBUTORS (FOOD & HEALTH)-0.41%
McKesson HBOC, Inc. 260,000 5,443,750
---------------------------------------------------------------
ELECTRIC COMPANIES-0.82%
Niagara Mohawk Holdings Inc.(a) 214,300 2,986,806
---------------------------------------------------------------
Northeast Utilities 218,600 4,754,550
---------------------------------------------------------------
TXU Corp. 107,000 3,156,500
---------------------------------------------------------------
10,897,856
---------------------------------------------------------------
ELECTRICAL EQUIPMENT-3.07%
American Power Conversion Corp.(a) 318,000 12,978,375
---------------------------------------------------------------
Cohu, Inc. 134,000 3,613,812
---------------------------------------------------------------
Cree, Inc.(a) 70,000 9,345,000
---------------------------------------------------------------
Sanmina Corp.(a) 174,400 14,911,200
---------------------------------------------------------------
40,848,387
---------------------------------------------------------------
ELECTRONICS
(INSTRUMENTATION)-2.20%
Tektronix, Inc. 256,000 18,944,000
---------------------------------------------------------------
Waters Corp.(a) 82,000 10,234,625
---------------------------------------------------------------
29,178,625
---------------------------------------------------------------
ELECTRONICS (SEMICONDUCTORS)-5.25%
Altera Corp.(a) 280,800 28,624,050
---------------------------------------------------------------
Amkor Technology, Inc.(a) 150,000 5,296,875
---------------------------------------------------------------
Broadcom Corp.-Class A(a) 33,000 7,224,937
---------------------------------------------------------------
Linear Technology Corp. 177,600 11,355,300
---------------------------------------------------------------
Maxim Integrated Products, Inc.(a) 140,000 9,511,250
---------------------------------------------------------------
Zoran Corp.(a) 117,000 7,714,687
---------------------------------------------------------------
69,727,099
---------------------------------------------------------------
</TABLE>
6
<PAGE> 9
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
ENGINEERING & CONSTRUCTION-2.41%
Quanta Services, Inc.(a) 582,500 $ 32,037,500
---------------------------------------------------------------
ENTERTAINMENT-0.84%
SFX Entertainment, Inc.-Class A(a) 246,300 11,160,469
---------------------------------------------------------------
EQUIPMENT (SEMICONDUCTOR)-1.22%
Teradyne, Inc.(a) 220,000 16,170,000
---------------------------------------------------------------
FINANCIAL (DIVERSIFIED)-2.64%
American Express Co. 120,300 6,270,637
---------------------------------------------------------------
Citigroup Inc. 255,375 15,386,344
---------------------------------------------------------------
Freddie Mac 161,860 6,555,330
---------------------------------------------------------------
MGIC Investment Corp. 149,300 6,793,150
---------------------------------------------------------------
35,005,461
---------------------------------------------------------------
HEALTH CARE (DRUGS-GENERIC &
OTHER)-1.96%
Forest Laboratories, Inc.(a) 105,200 10,625,200
---------------------------------------------------------------
Jones Pharma Inc. 220,000 8,786,250
---------------------------------------------------------------
Medicis Pharmaceutical Corp.-Class
A(a) 117,000 6,669,000
---------------------------------------------------------------
26,080,450
---------------------------------------------------------------
HEALTH CARE (DRUGS-MAJOR
PHARMACEUTICALS)-2.66%
Pfizer Inc. 736,200 35,337,600
---------------------------------------------------------------
HEALTH CARE (HOSPITAL
MANAGEMENT)-1.38%
Health Management Associates,
Inc.-Class A(a) 790,000 10,319,375
---------------------------------------------------------------
LifePoint Hospitals, Inc.(a) 360,000 8,010,000
---------------------------------------------------------------
18,329,375
---------------------------------------------------------------
HEALTH CARE (MANAGED CARE)-1.03%
UnitedHealth Group Inc. 159,100 13,642,825
---------------------------------------------------------------
HEALTH CARE (MEDICAL PRODUCTS &
SUPPLIES)-2.78%
Beckman Coulter, Inc. 68,500 3,998,687
---------------------------------------------------------------
Biomet, Inc. 120,600 4,635,563
---------------------------------------------------------------
Edwards Lifesciences Corp.(a) 440,000 8,140,000
---------------------------------------------------------------
Guidant Corp.(a) 105,000 5,197,500
---------------------------------------------------------------
Medtronic, Inc. 300,000 14,943,750
---------------------------------------------------------------
36,915,500
---------------------------------------------------------------
INSURANCE
(PROPERTY-CASUALTY)-0.63%
Radian Group Inc. 57,000 2,949,750
---------------------------------------------------------------
XL Capital Ltd.-Class A 100,000 5,412,500
---------------------------------------------------------------
8,362,250
---------------------------------------------------------------
LEISURE TIME (PRODUCTS)-0.38%
Mattel, Inc. 383,800 5,061,363
---------------------------------------------------------------
NATURAL GAS-0.95%
Enron Corp. 195,000 12,577,500
---------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
OIL & GAS (DRILLING &
EQUIPMENT)-2.33%
Cooper Cameron Corp.(a) 120,000 $ 7,920,000
---------------------------------------------------------------
Diamond Offshore Drilling, Inc. 125,000 4,390,625
---------------------------------------------------------------
ENSCO International Inc. 344,600 12,340,988
---------------------------------------------------------------
Schlumberger Ltd. 73,400 5,477,475
---------------------------------------------------------------
Transocean Sedco Forex Inc. 14,210 759,347
---------------------------------------------------------------
30,888,435
---------------------------------------------------------------
PAPER & FOREST PRODUCTS-0.22%
International Paper Co. 96,700 2,882,869
---------------------------------------------------------------
PHOTOGRAPHY/IMAGING-0.37%
Pinnacle Systems, Inc.(a) 220,000 4,946,563
---------------------------------------------------------------
RAILROADS-0.69%
Kansas City Southern Industries,
Inc. 103,000 9,134,813
---------------------------------------------------------------
RESTAURANTS-0.63%
CEC Entertainment Inc.(a) 328,000 8,405,000
---------------------------------------------------------------
RETAIL (BUILDING SUPPLIES)-0.81%
Home Depot, Inc. (The) 106,800 5,333,325
---------------------------------------------------------------
Sherwin-Williams Co. (The) 255,000 5,402,813
---------------------------------------------------------------
10,736,138
---------------------------------------------------------------
RETAIL (COMPUTERS &
ELECTRONICS)-0.75%
CDW Computer Centers, Inc.(a) 160,000 10,000,000
---------------------------------------------------------------
RETAIL (FOOD CHAINS)-0.43%
Albertson's, Inc. 172,000 5,719,000
---------------------------------------------------------------
RETAIL (GENERAL MERCHANDISE)-1.12%
Costco Wholesale Corp.(a) 152,000 5,016,000
---------------------------------------------------------------
Target Corp. 170,000 9,860,000
---------------------------------------------------------------
14,876,000
---------------------------------------------------------------
RETAIL (SPECIALTY)-0.83%
Zale Corp.(a) 304,000 11,096,000
---------------------------------------------------------------
RETAIL (SPECIALTY-APPAREL)-1.56%
Men's Wearhouse, Inc. (The)(a) 596,000 13,298,250
---------------------------------------------------------------
Too Inc.(a) 290,000 7,376,875
---------------------------------------------------------------
20,675,125
---------------------------------------------------------------
SERVICES (COMMERCIAL &
CONSUMER)-1.33%
Convergys Corp.(a) 98,000 5,083,750
---------------------------------------------------------------
H&R Block, Inc. 220,000 7,122,500
---------------------------------------------------------------
Iron Mountain Inc.(a) 161,000 5,474,000
---------------------------------------------------------------
17,680,250
---------------------------------------------------------------
SERVICES (COMPUTER SYSTEMS)-0.14%
Critical Path, Inc.(a) 32,000 1,866,000
---------------------------------------------------------------
</TABLE>
7
<PAGE> 10
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
SERVICES (DATA PROCESSING)-2.56%
Concord EFS, Inc.(a) 174,825 $ 4,545,450
---------------------------------------------------------------
CSG Systems International, Inc.(a) 180,000 10,091,250
---------------------------------------------------------------
DST Systems, Inc.(a) 58,100 4,422,863
---------------------------------------------------------------
Fiserv, Inc.(a) 85,275 3,688,144
---------------------------------------------------------------
NOVA Corp.(a) 102,232 2,856,107
---------------------------------------------------------------
Paychex, Inc. 200,250 8,410,500
---------------------------------------------------------------
34,014,314
---------------------------------------------------------------
TELECOMMUNICATIONS (CELLULAR/
WIRELESS)-1.45%
Nextel Communications, Inc.-Class
A(a) 200,000 12,237,500
---------------------------------------------------------------
Powerwave Technologies, Inc.(a) 159,000 6,996,000
---------------------------------------------------------------
19,233,500
---------------------------------------------------------------
TELECOMMUNICATIONS (LONG
DISTANCE)-0.54%
Primus Telecommunications Group,
Inc.(a) 150,000 3,731,250
---------------------------------------------------------------
Viatel, Inc.(a) 120,000 3,427,500
---------------------------------------------------------------
7,158,750
---------------------------------------------------------------
WASTE MANAGEMENT-0.62%
Waste Management, Inc. 431,600 8,200,400
---------------------------------------------------------------
Total Domestic Common Stocks
(Cost $551,567,087) 1,023,280,708
---------------------------------------------------------------
FOREIGN STOCKS & OTHER EQUITY
INTERESTS-10.13%
BERMUDA-0.19%
Global Crossing Ltd.
(Telecommunications-Long
Distance)(a) 98,842 2,600,780
---------------------------------------------------------------
CANADA-4.53%
Celestica Inc.
(Electronics-Semiconductors)(a) 190,000 9,428,750
---------------------------------------------------------------
Nortel Networks Corp.
(Communications Equipment) 240,000 16,380,000
---------------------------------------------------------------
PMC-Sierra, Inc.
(Electronics-Semiconductors)(a) 193,200 34,329,225
---------------------------------------------------------------
60,137,975
---------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
FINLAND-1.86%
Nokia Oyj A.B.-ADR (Communications
Equipment) 494,400 $ 24,689,100
---------------------------------------------------------------
HONG KONG-0.23%
UTStarcom, Inc. (Communications
Equipment)(a) 100,000 3,037,500
---------------------------------------------------------------
NETHERLANDS-1.59%
Koninklijke (Royal) Phillips
Electronics N.V.-ADR (Electrical
Equipment) 444,544 21,115,840
---------------------------------------------------------------
SINGAPORE-0.92%
Flextronics International Ltd.
(Manufacturing-Specialized)(a) 178,710 12,275,144
---------------------------------------------------------------
SWEDEN-0.81%
Telefonaktiebolaget LM Ericsson
A.B.-ADR (Communications
Equipment) 536,000 10,720,000
---------------------------------------------------------------
Total Foreign Stocks & Other
Equity Interests (Cost
$56,543,017) 134,576,339
---------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
<S> <C> <C>
U.S. TREASURY SECURITIES-0.11%
U.S. TREASURY BILLS-0.11%
5.66%, 09/21/00(b) $1,460,000(c) 1,441,044
---------------------------------------------------------------
Total U.S. Treasury
Securities
(Cost $1,441,044) 1,441,044
---------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
SHARES
<S> <C> <C>
MONEY MARKET FUNDS-12.60%
STIC Liquid Assets Portfolio(d) 83,705,878 83,705,878
---------------------------------------------------------------
STIC Prime Portfolio(d) 83,705,878 83,705,878
---------------------------------------------------------------
Total Money Market Funds
(Cost $167,411,756) 167,411,756
---------------------------------------------------------------
TOTAL INVESTMENTS-99.88%
(Cost $776,962,904) 1,326,709,847
---------------------------------------------------------------
OTHER ASSETS LESS
LIABILITIES-0.12% 1,564,689
---------------------------------------------------------------
NET ASSETS-100.00% $1,328,274,536
===============================================================
</TABLE>
Investment Abbreviations:
ADR - American Depositary Receipt
Notes to Schedule of Investments:
(a) Non-income producing security.
(b) Interest rate shown represents the rate of discount paid or received at the
time of purchase by the Fund.
(c) A portion of the principal balance was pledged as collateral to cover margin
requirements for open futures contracts. See Note 7.
(d) The money market fund has the same investment advisor as the Fund.
See Notes to Financial Statements.
8
<PAGE> 11
STATEMENT OF ASSETS AND LIABILITIES
June 30, 2000
(Unaudited)
<TABLE>
<S> <C>
ASSETS:
Investments, at market value (cost
$776,962,904) $1,326,709,847
----------------------------------------------------------
Receivables for:
Investments sold 749,164
----------------------------------------------------------
Fund shares sold 4,703,673
----------------------------------------------------------
Dividends 1,048,169
----------------------------------------------------------
Variation margin 176,750
----------------------------------------------------------
Investment for deferred compensation plan 66,712
----------------------------------------------------------
Other assets 13,594
----------------------------------------------------------
Total assets 1,333,467,909
----------------------------------------------------------
LIABILITIES:
Payables for:
Investments purchased 137,700
----------------------------------------------------------
Fund shares reacquired 2,892,445
----------------------------------------------------------
Deferred compensation plan 66,712
----------------------------------------------------------
Accrued advisory fees 687,468
----------------------------------------------------------
Accrued administrative services fees 11,794
----------------------------------------------------------
Accrued distribution fees 1,234,629
----------------------------------------------------------
Accrued transfer agent fees 159,994
----------------------------------------------------------
Accrued trustees' fees 2,631
----------------------------------------------------------
Total liabilities 5,193,373
----------------------------------------------------------
Net assets applicable to shares
outstanding $1,328,274,536
==========================================================
NET ASSETS:
Class A $ 555,800,496
==========================================================
Class B $ 717,858,759
==========================================================
Class C $ 54,615,281
==========================================================
SHARES OUTSTANDING, $0.01 PAR VALUE PER
SHARE:
Class A 18,242,911
==========================================================
Class B 25,248,915
==========================================================
Class C 1,923,142
==========================================================
Class A:
Net asset value and redemption price per
share $ 30.47
----------------------------------------------------------
Offering price per share:
(Net asset value of $30.47 divided by
94.50%) $ 32.24
==========================================================
Class B:
Net asset value and offering price per
share $ 28.43
==========================================================
Class C:
Net asset value and offering price per
share $ 28.40
==========================================================
</TABLE>
STATEMENT OF OPERATIONS
For the six months ended June 30, 2000
(Unaudited)
<TABLE>
<S> <C>
INVESTMENT INCOME:
Dividends (net of foreign withholding tax
$53,469) $ 4,554,512
---------------------------------------------------------
Interest 8,176
---------------------------------------------------------
Total investment income 4,562,688
---------------------------------------------------------
EXPENSES:
Advisory fees 3,936,407
---------------------------------------------------------
Administrative services fee 70,430
---------------------------------------------------------
Custodian fees 53,424
---------------------------------------------------------
Distribution fees -- Class A 640,707
---------------------------------------------------------
Distribution fees -- Class B 3,314,037
---------------------------------------------------------
Distribution fees -- Class C 202,873
---------------------------------------------------------
Transfer agent fees -- Class A 275,683
---------------------------------------------------------
Transfer agent fees -- Class B 508,155
---------------------------------------------------------
Transfer agent fees -- Class C 31,139
---------------------------------------------------------
Trustees' fees 3,983
---------------------------------------------------------
Other 176,265
---------------------------------------------------------
Total expenses 9,213,103
---------------------------------------------------------
Less: Expenses paid indirectly (18,930)
---------------------------------------------------------
Net expenses 9,194,173
---------------------------------------------------------
Net investment income (loss) (4,631,485)
---------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENT SECURITIES AND FUTURES
CONTRACTS
Net realized gain from investment
securities 162,938,533
---------------------------------------------------------
Change in net unrealized appreciation
(depreciation) of:
Investment securities 14,201,930
---------------------------------------------------------
Futures contracts (435,750)
---------------------------------------------------------
13,766,180
---------------------------------------------------------
Net gain on investment securities and
futures contracts 176,704,713
---------------------------------------------------------
Net increase in net assets resulting from
operations $172,073,228
=========================================================
</TABLE>
See Notes to Financial Statements.
9
<PAGE> 12
STATEMENT OF CHANGES IN NET ASSETS
For the six months ended June 30, 2000 and the year ended December 31, 1999
(Unaudited)
<TABLE>
<CAPTION>
JUNE 30, DECEMBER 31,
2000 1999
-------------- --------------
<S> <C> <C>
OPERATIONS:
Net investment income (loss) $ (4,631,485) $ (6,500,213)
------------------------------------------------------------------------------------------------
Net realized gain from investment securities 162,938,533 46,613,838
------------------------------------------------------------------------------------------------
Change in net unrealized appreciation of investment
securities and futures contracts 13,766,180 268,442,968
------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 172,073,228 308,556,593
------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM NET REALIZED GAINS:
Class A -- (17,929,351)
------------------------------------------------------------------------------------------------
Class B -- (24,484,976)
------------------------------------------------------------------------------------------------
Class C -- (997,756)
------------------------------------------------------------------------------------------------
SHARE TRANSACTIONS-NET:
Class A 19,218,667 25,912,665
------------------------------------------------------------------------------------------------
Class B 32,576,653 19,950,492
------------------------------------------------------------------------------------------------
Class C 24,947,654 11,803,897
------------------------------------------------------------------------------------------------
Net increase in net assets 248,816,202 322,811,564
------------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 1,079,458,334 756,646,770
------------------------------------------------------------------------------------------------
End of period $1,328,274,536 $1,079,458,334
================================================================================================
NET ASSETS CONSIST OF:
Shares of beneficial interest $ 624,913,082 $ 548,170,108
------------------------------------------------------------------------------------------------
Undistributed net investment income (loss) (4,720,303) (88,818)
------------------------------------------------------------------------------------------------
Undistributed net realized gain (loss) from investment
securities 158,770,564 (4,167,969)
------------------------------------------------------------------------------------------------
Unrealized appreciation of investment securities 549,311,193 535,545,013
------------------------------------------------------------------------------------------------
$1,328,274,536 $1,079,458,334
================================================================================================
</TABLE>
See Notes to Financial Statements.
10
<PAGE> 13
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2000
(UNAUDITED)
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 four separate portfolios,
each having an unlimited number of shares of beneficial interest. The Fund
currently offers three different classes of shares: Class A shares, Class B
shares and Class C shares. Class A shares are sold with a front-end sales
charge. Class B shares and Class C shares are sold with a contingent deferred
sales charge. Matters affecting each portfolio or class will be voted on
exclusively by the shareholders of such portfolio or class. The assets,
liabilities and operations of each portfolio are accounted for separately.
Information presented in these financial statements pertains only to the Fund.
The Fund's investment objective is to achieve long-term growth of capital.
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenses during
the reporting period. Actual results could differ from those estimates. The
following is a summary of the significant accounting policies followed by the
Fund in the preparation of its financial statements.
A. Security Valuations -- A security listed or traded on an exchange (except
convertible bonds) is valued at its last sales price as of the close of the
customary trading session on the exchange where the security is principally
traded, or lacking any sales on a particular day, the security is valued at
the closing bid price on that day. Each security reported on the NASDAQ
National Market System is valued at the last sales price as of the close of
the customary trading session on the valuation date or absent a last sales
price, at the closing bid price. Debt obligations (including convertible
bonds) are valued on the basis of prices provided by an independent pricing
service. Prices provided by the pricing service may be determined without
exclusive reliance on quoted prices, and may reflect appropriate factors such
as yield, type of issue, coupon rate and maturity date. Securities for which
market prices are not provided by any of the above methods are valued based
upon quotes furnished by independent sources and are valued at the last bid
price in the case of equity securities and in the case of debt obligations,
the mean between the last bid and asked prices. Securities for which market
quotations are not readily available or are questionable are valued at fair
value as determined in good faith by or under the supervision of the Trust's
officers in a manner specifically authorized by the Board of Trustees.
Short-term obligations having 60 days or less to maturity are valued at
amortized cost which approximates market value. For purposes of determining
net asset value per share, futures and option contracts generally will be
valued 15 minutes after the close of the customary trading session of the New
York Stock Exchange ("NYSE").
Generally, trading in foreign securities is substantially completed each day
at various times prior to the close of the NYSE. The values of such
securities used in computing the net asset value of the Fund's shares are
determined as of such times. Foreign currency exchange rates are also
generally determined prior to the close of the NYSE. Occasionally, events
affecting the values of such securities and such exchange rates may occur
between the times at which they are determined and the close of the customary
trading session of the NYSE which would not be reflected in the computation
of the Fund's net asset value. If events materially affecting the value of
such securities occur during such period, then these securities will be
valued at their fair value as determined in good faith by or under the
supervision of the Board of Trustees.
B. Securities Transactions and Investment Income -- Securities transactions are
accounted for on a trade date basis. Realized gains or losses on sales are
computed on the basis of specific identification of the securities sold.
Interest income is recorded on the accrual basis from settlement date.
Dividend income is recorded on the ex-dividend date.
C. Distributions -- Distributions from income and net realized capital gains, if
any, are generally paid annually and recorded on ex-dividend date. The Fund
may elect to use a portion of the proceeds from redemptions as distributions
for federal income tax purposes.
D. Federal Income Taxes -- The Fund intends to comply with the requirements of
the Internal Revenue Code necessary to qualify as a regulated investment
company and, as such, will not be subject to federal income taxes on
otherwise taxable income (including net realized capital gains) which is
distributed to shareholders. Therefore, no provision for federal income taxes
is recorded in the financial statements.
E. 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.
11
<PAGE> 14
F. 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.
G. Expenses -- Distribution expenses and certain transfer agency expenses
directly attributable to a class of shares are charged to those classes'
operations. All other expenses which are attributable to more than one class
are allocated among the classes.
NOTE 2-ADVISORY FEES AND OTHER TRANSACTIONS WITH AFFILIATES
The Trust has entered into a master investment advisory agreement with A I M
Advisors, Inc. ("AIM"). Under the terms of the investment advisory agreement,
the Fund pays an advisory fee to AIM at the annual rate of 0.80% of the first
$150 million of the Fund's average daily net assets, plus 0.625% of the Fund's
average daily net assets in excess of $150 million.
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 $70,430 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 $461,653 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 $640,707,
$3,314,037 and $202,873, respectively, as compensation under the Plans.
AIM Distributors received commissions of $195,466 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 $10,324 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
$2,537 for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel
to the Board of Trustees. A member of that firm is a trustee of the Trust.
NOTE 3-INDIRECT EXPENSES
For the six months ended June 30, 2000, the Fund received reductions in transfer
agency fees from AFS (an affiliate of AIM) and reductions in custodian fees of
$6,566 and $12,364, respectively, under expense offset arrangements which
resulted in a reduction of the Fund's total expenses of $18,930.
NOTE 4-TRUSTEES' FEES
Trustees' fees represent remuneration paid to trustees who are not an
"interested person" of AIM. The Trust invests trustees' fees, if so elected by a
trustee, in mutual fund shares in accordance with a deferred compensation plan.
NOTE 5-BANK BORROWINGS
The Fund is a participant in a committed line of credit facility with a
syndicate administered by Citibank, N.A. The Fund may borrow up to the lesser of
(i) $1,000,000,000 or (ii) the limits set by its prospectus for borrowings. The
Fund and other funds advised by AIM which are parties to the line of credit may
borrow on a first come, first served basis. During the six months ended June 30,
2000, the Fund did not borrow under the line of credit agreement. The funds
which are party to the line of credit are charged a commitment fee of 0.09% on
the unused balance of the committed line. The commitment fee is allocated among
the funds based on their respective average net assets for the period.
NOTE 6-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
$303,886,854 and $341,954,108, 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 $589,528,643
---------------------------------------------------------
Aggregate unrealized (depreciation) of
investment securities (39,934,558)
---------------------------------------------------------
Net unrealized appreciation of investment
securities $549,594,085
=========================================================
Cost of investments for tax purposes is
$777,115,762.
</TABLE>
12
<PAGE> 15
NOTE 7-FUTURES CONTRACTS
On June 30, 2000, $1,460,000 principal amount of U.S. Treasury obligations were
pledged as collateral to cover margin requirements for open futures contracts.
Open futures contracts were as follows:
<TABLE>
<CAPTION>
UNREALIZED
NO. OF MONTH/ MARKET APPRECIATION
CONTRACT CONTRACTS COMMITMENT VALUE (DEPRECIATION)
-------- --------- ---------- ----------- --------------
<S> <C> <C> <C> <C>
S&P 500 Index 70 Sep-00/Buy $25,691,750 $(435,750)
===================================================================================================================
</TABLE>
NOTE 8-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 2,572,113 $ 75,421,293 8,174,582 $ 169,122,203
--------------------------------------------------------------------------------------------------------------------
Class B 3,478,565 95,416,373 5,441,024 110,096,224
--------------------------------------------------------------------------------------------------------------------
Class C 1,039,602 28,794,250 820,566 16,761,504
--------------------------------------------------------------------------------------------------------------------
Issued as reinvestment of dividends:
Class A -- -- 702,598 17,072,219
--------------------------------------------------------------------------------------------------------------------
Class B -- -- 996,161 22,682,713
--------------------------------------------------------------------------------------------------------------------
Class C -- -- 41,870 952,496
--------------------------------------------------------------------------------------------------------------------
Reacquired:
Class A (1,931,091) (56,202,626) (7,818,939) (160,281,757)
--------------------------------------------------------------------------------------------------------------------
Class B (2,345,162) (62,839,720) (5,672,316) (112,828,445)
--------------------------------------------------------------------------------------------------------------------
Class C (146,119) (3,846,596) (296,926) (5,910,103)
--------------------------------------------------------------------------------------------------------------------
2,667,908 $ 76,742,974 2,388,620 $ 57,667,054
====================================================================================================================
</TABLE>
13
<PAGE> 16
NOTE 9-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(a) 1999 1998 1997(a) 1996 1995(a)
---------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 26.23 $ 19.35 $ 15.67 $ 14.78 $ 13.05 $ 10.32
-------------------------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income (loss) (0.04) (0.06) (0.04) 0.01 0.07 0.02
-------------------------------------------------------------------------------------------------------------------------------
Net gains on securities (both realized and unrealized) 4.28 8.00 4.24 2.82 2.34 3.50
-------------------------------------------------------------------------------------------------------------------------------
Total from investment operations 4.24 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 $ 30.47 $ 26.23 $ 19.35 $ 15.67 $ 14.78 $ 13.05
===============================================================================================================================
Total return(b) 16.16% 41.48% 27.09% 19.54% 18.61% 34.31%
===============================================================================================================================
Ratios/supplemental data:
Net assets, end of period (000s omitted) $555,800 $461,628 $320,143 $266,168 $227,882 $168,217
===============================================================================================================================
Ratio of expenses to average net assets 1.06%(c) 1.09% 1.11% 1.13% 1.18% 1.28%
===============================================================================================================================
Ratio of net investment income (loss) to average net assets (0.30)%(c) (0.31)% (0.22)% 0.04% 0.46% 0.20%
===============================================================================================================================
Portfolio turnover rate 27% 31% 68% 110% 97% 87%
===============================================================================================================================
</TABLE>
(a) Calculated using average shares outstanding.
(b) Does not deduct sales charges and is not annualized for periods less than
one year.
(c) Ratios are annualized and based on average net assets of $515,381,818.
<TABLE>
<CAPTION>
CLASS B
-----------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED DECEMBER 31,
JUNE 30, ----------------------------------------------------
2000(a) 1999(a) 1998 1997(a) 1996 1995(a)
---------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 24.57 $ 18.33 $ 14.98 $ 14.32 $ 12.77 $ 10.21
-------------------------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income (loss) (0.15) (0.23) (0.17) (0.13) (0.05) (0.08)
-------------------------------------------------------------------------------------------------------------------------------
Net gains on securities (both realized and unrealized) 4.01 7.53 4.04 2.72 2.28 3.43
-------------------------------------------------------------------------------------------------------------------------------
Total from investment operations 3.86 7.30 3.87 2.59 2.23 3.35
-------------------------------------------------------------------------------------------------------------------------------
Less distributions:
Distributions from net realized gains -- (1.06) (0.52) (1.93) (0.68) (0.79)
-------------------------------------------------------------------------------------------------------------------------------
Total distributions -- (1.06) (0.52) (1.93) (0.68) (0.79)
-------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 28.43 $ 24.57 $ 18.33 $ 14.98 $ 14.32 $ 12.77
===============================================================================================================================
Total return(b) 15.71% 40.29% 26.13% 18.50% 17.60% 33.00%
===============================================================================================================================
Ratios/supplemental data:
Net assets, end of period (000s omitted) $717,859 $592,555 $428,002 $356,186 $280,807 $138,034
===============================================================================================================================
Ratio of expenses to average net assets 1.85%(c) 1.90% 1.93% 1.99% 2.03% 2.13%
===============================================================================================================================
Ratio of net investment income (loss) to average net assets (1.10)%(c) (1.12)% (1.04)% (0.82)% (0.39)% (0.65)%
===============================================================================================================================
Portfolio turnover rate 27% 31% 68% 110% 97% 87%
===============================================================================================================================
</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 $666,449,287.
14
<PAGE> 17
NOTE 9-FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
CLASS C
-----------------------------------------------
AUGUST 4,
1997
(DATE SALES
SIX MONTHS YEAR ENDED COMMENCED
ENDED DECEMBER 31, TO
JUNE 30, ------------------ DECEMBER 31,
2000(a) 1999(a) 1998(a) 1997(a)
---------- ------- ------- ------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 24.55 $ 18.32 $14.98 $17.65
-------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income (loss) (0.15) (0.23) (0.17) (0.04)
-------------------------------------------------------------------------------------------------------------
Net gains (losses) on securities (both realized and
unrealized) 4.00 7.52 4.03 (0.70)
-------------------------------------------------------------------------------------------------------------
Total from investment operations 3.85 7.29 3.86 (0.74)
-------------------------------------------------------------------------------------------------------------
Less distributions:
Distributions from net realized gains -- (1.06) (0.52) (1.93)
-------------------------------------------------------------------------------------------------------------
Total distributions -- (1.06) (0.52) (1.93)
-------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 28.40 $ 24.55 $18.32 $14.98
=============================================================================================================
Total return(b) 15.68% 40.26% 26.07% (3.86)%
=============================================================================================================
Ratios/supplemental data:
Ratio of expenses to average net assets 1.85%(c) 1.90% 1.93% 1.95%(d)
=============================================================================================================
Ratio of net investment income (loss) to average net assets (1.10)%(c) (1.12)% (1.04)% (0.77)%(d)
=============================================================================================================
Portfolio turnover rate 27% 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 annualized and based on average net assets of $40,797,439.
(d) Annualized.
15
<PAGE> 18
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 Select Growth
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............. 18,162,974 407,664 5,398,751*
(3)(a) Change to Fundamental Restriction on Issuer
Diversification............................................. 17,793,323 585,554 5,590,512*
(3)(b) Change to Fundamental Restriction on Borrowing Money and
Issuing Senior Securities................................... 17,643,057 707,140 5,619,192*
(3)(c) Change to or Addition of Fundamental Restriction on
Underwriting Securities..................................... 17,735,470 633,715 5,600,204*
(3)(d) Change to or Addition of Fundamental Restriction on Industry
Concentration............................................... 17,759,968 590,848 5,618,573*
(3)(e) Change to Fundamental Restriction on Purchasing or Selling
Real Estate................................................. 17,644,028 719,740 5,605,621*
(3)(f) Change to Fundamental Restriction on Purchasing or Selling
Commodities and Elimination of Fundamental Restriction on
Puts and Calls.............................................. 17,532,142 794,076 5,643,171*
(3)(g) Change to Fundamental Restriction on Making Loans........... 17,497,192 788,242 5,683,955*
(3)(h) Approval of a new Fundamental Investment Restriction on
Investing all of the Fund's assets in an Open-End Fund...... 17,607,939 712,143 5,649,307*
(3)(i) Elimination of Fundamental Restriction on Margin
Transactions................................................ 17,270,430 1,018,370 5,680,589*
(3)(j) Elimination of Fundamental Restriction on Short Sales of
Securities.................................................. 17,425,580 867,238 5,676,571*
(4) Approval of changing the Investment Objective and Making it
Non-Fundamental............................................. 17,458,745 805,507 5,705,137*
(5) Ratification of the selection of KPMG LLP as Independent
Accountants of the Fund..................................... 22,780,259 180,753 1,008,377
</TABLE>
* Includes Broker Non-Votes
16
<PAGE> 19
<TABLE>
<CAPTION>
BOARD OF TRUSTEES OFFICERS OFFICE OF THE FUND
<S> <C> <C>
Charles T. Bauer Charles T. Bauer 11 Greenway Plaza
Director and Chairman Chairman Suite 100
A I M Management Group Inc. Houston, TX 77046
Robert H. Graham
Bruce L. Crockett President INVESTMENT ADVISOR
Director
ACE Limited; Carol F. Relihan A I M Advisors, Inc.
Formerly Director, President, and Senior Vice President and Secretary 11 Greenway Plaza
Chief Executive Officer Suite 100
COMSAT Corporation Gary T. Crum Houston, TX 77046
Senior Vice President
Owen Daly II TRANSFER AGENT
Formerly, 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>
<PAGE> 20
AIM FAMILY OF FUNDS --Registered Trademark--
EQUITY FUNDS
<TABLE>
<CAPTION>
<S> <C> <C>
DOMESTIC EQUITY FUNDS INTERNATIONAL/GLOBAL EQUITY FUNDS
MORE AGGRESSIVE MORE AGGRESSIVE A I M Management Group Inc. has
provided leadership in the mutual
AIM Small Cap Opportunities(1) AIM Latin American Growth fund industry since 1976 and
AIM Mid Cap Opportunities(2) AIM Developing Markets managed approximately $176 billion
AIM Large Cap Opportunities AIM Asian Growth in assets for more than 8 million
AIM Emerging Growth AIM Japan Growth shareholders, including individual
AIM Small Cap Growth(3) AIM European Development investors, corporate clients and
AIM Aggressive Growth AIM Euroland Growth(5) financial institutions, as of June
AIM Mid Cap Growth AIM Global Aggressive Growth 30, 2000.
AIM Capital Development AIM International Equity The AIM Family of
AIM Constellation(4) AIM Advisor International Value Funds--Registered Trademark-- is
AIM Dent Demographic Trends AIM Global Trends(6) distributed nationwide, and AIM
AIM Select Growth AIM Global Growth today is the eighth-largest mutual
AIM Large Cap Growth fund complex in the United States
AIM Weingarten MORE CONSERVATIVE in assets under management,
AIM Mid Cap Growth according to Strategic Insight, an
AIM Charter SECTOR EQUITY FUNDS independent mutual fund monitor.
AIM Value AIM is a subsidiary of
AIM Blue Chip MORE AGGRESSIVE AMVESCAP PLC, one of the world's
AIM Basic Value largest independent financial
AIM Large Cap Basic Value AIM Global Telecommunications and Technology services companies with $389
AIM Balanced AIM Global Resources billion in assets under management
AIM Advisor Flex AIM Global Financial Services as of June 30, 2000.
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. GRO-SAR-1
