<PAGE>
[LOGO]
/ /
AIM SMALL CAP
EQUITY FUND
/ /
AIM MID CAP
GROWTH FUND
/ /
AIM AMERICA
VALUE FUND
/ /
SEMIANNUAL REPORT
JUNE 30, 1998
INVEST WITH
DISCIPLINE-SM-
<PAGE>
TABLE OF CONTENTS
<TABLE>
<CAPTION>
<S> <C>
Message from the Chairman. . . . . . . . . . . . . . . . . . . . . . . . . . 2
AIM Small Cap Equity Fund. . . . . . . . . . . . . . . . . . . . . . . . . . 3
(FORMERLY GT GLOBAL AMERICA SMALL CAP GROWTH FUND)
AIM Mid Cap Growth Fund. . . . . . . . . . . . . . . . . . . . . . . . . . . .6
(FORMERLY GT GLOBAL AMERICA MID CAP GROWTH FUND)
AIM America Value Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . .9
(FORMERLY GT GLOBAL AMERICA VALUE FUND)
Financials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F1
List of Funds. . . . . . . . . . . . . . . . . . . . . . . . Inside Back Cover
</TABLE>
The views of the Funds' management as described in this report are as of the
date written. Portfolio holdings and allocations are as of June 30, 1998, unless
otherwise noted. Views, portfolio holdings and allocations may have changed
subsequent to these dates.
<PAGE>
MESSAGE FROM THE CHAIRMAN
Dear Fellow Shareholder,
We are pleased to send you this semiannual report. In the time since you
received your last report, there have been a few changes. Your Fund is now a
part of The AIM Family of Funds-Registered Trademark- and has adopted the AIM
name. Thanks to a vote of approval by GT Global shareholders, A I M Advisors,
Inc., became the new investment advisor to GT Global Funds, effective May 29,
1998.
We believe you'll enjoy many advantages as a member of The AIM Family of
Funds-Registered Trademark-. You'll have access to a greater variety of
investment choices, and you'll benefit from AIM's commitment to excellence in
shareholder service. Most of all, you'll be part of an expanded fund family that
is one of the largest and most respected in the industry. A complete list of
Funds included in the AIM family can be found inside the back cover of this
report. If you would like more information on any of these Funds, we suggest you
talk with your financial consultant to discuss their suitability for your
investment objectives, risk tolerance, and asset allocation.
Though the Funds are wearing a new name, your investments will continue to seek
their stated objectives and receive expert, professional management. In the
report that follows, you'll find commentary from managers you know, with the
depth of coverage you've come to expect.
Effective September 8, GT Global accounts will be fully integrated into the AIM
Family of Funds-Registered Trademark-. For account information, service, and
transactions, you will contact AIM's Client Services Department at 800-959-4246.
Account information is also available on the AIM website at www.aimfunds.com or
on our automated AIM Investor Line at 800-246-5463.
Thank you for your past support of GT Global Funds. AIM is looking forward to
continuing a satisfying relationship with you and helping you reach your
financial goals.
Sincerely,
/s/Charles T. Bauer
Charles T. Bauer
Chairman
The AIM Family of Funds-Registered Trademark-
2
<PAGE>
AIM SMALL CAP EQUITY FUND
PERFORMANCE SUMMARY
[CHART]
<TABLE>
<CAPTION>
CLASS A AIM SMALL RUSSELL 2000
SHARES CAP EQUITY FUND STOCK INDEX
<S> <C> <C>
10/18/95 9525 10000
9558.33 9746.34
9741.67 10155.8
9833.33 10423.7
9900 10412.4
10458.3 10737
10866.7 10955.5
11883.3 11541.3
12325 11996.1
11608.3 11503.6
10716.7 10498.8
10875 11108.4
11683.3 11542.5
11300 11364.6
11183.3 11832.9
11190.8 12143
11441.1 12385.7
2/28/97 10457.9 12085.4
9626.61 11515.1
9519.35 11547.3
10752.8 12831.9
11342.8 13381.8
12326 14004.5
12594.1 14324.9
13765.1 15373.4
13157.3 14698.1
13005.3 14602.6
13006.6 14858.1
13143.3 14623.4
14282.7 15704
15221.5 16351
15540.5 16431.2
14683.7 16636.5
6/30/98 15276 15594
</TABLE>
<TABLE>
<CAPTION>
CLASS B AIM SMALL RUSSELL 2000
SHARES CAP EQUITY FUND STOCK INDEX
<S> <C> <C>
10/18/95 10000 10000
10035 9746.34
10218.7 10155.8
10306.2 10423.7
10367.5 10412.4
10953.6 10737
11373.6 10955.5
12440.9 11541.3
12887.1 11996.1
12134.7 11503.6
11198.6 10498.8
11356.1 11108.4
12196 11542.5
11784.8 11364.6
11653.5 11832.9
11660.7 12143.1
11914.2 12385.7
2/28/97 10890.8 12085.4
10008.3 11515.2
9895.65 11547.3
11172.5 12831.9
11782.8 13381.8
12796.7 14004.5
13069 14324.9
14270.8 15373.4
13632.3 14698.1
13463.3 14602.6
13464.7 14858.1
13589.2 14623.4
14767.1 15704
15724.7 16351
16040.8 16431.1
15150.1 16636.5
6/30/98 15588 15594
</TABLE>
The charts above show performance of AIM Small Cap Equity Fund Class A and
Class B shares since inception, vs. the Russell 2000 Index. The top chart
assumes a hypothetical $10,000 initial investment in Class A shares and
reflects all Fund expenses and the maximum 5.50% sales charge. For Class B
shares, results reflect all Fund expenses and the applicable contingent
deferred sales charge (5% in the first year, decreasing to 0% at the
beginning of the seventh year), assuming a complete redemption at the end of
the period. A $10,000 investment in Advisor Class shares at inception on
October 18, 1995, would have been worth $16,308 on June 30, 1998.
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURNS %1
JUNE 30, 1998
WITHOUT SALES CHARGE(2) WITH SALES CHARGE
SHARE CLASS 1-YEAR LIFE OF FUND(3) 1-YEAR LIFE OF FUND(3)
<S> <C> <C> <C> <C>
CLASS A 35.80 19.48 28.32 16.98
CLASS B 34.84 18.69 29.84 17.86
ADVISOR CLASS4 36.13 19.85 N/A N/A
</TABLE>
(1) Figures assume reinvestment of all dividends and capital gains
distributions at net asset value.
(2) Performance data do not reflect the maximum 5.50% sales charge or the
contingent deferred sales charge for Class A and Class B shares,
respectively, which, if included, would have reduced quoted performance.
(3) The Fund began operations on October 18, 1995.
(4) Advisor Class shares are not sold directly to the general public. They are
only available through certain employee benefit plans, financial
institutions and other entities that have entered into specific agreements
with the Fund's distributor. Please see the Fund's prospectus for more
complete information.
The above data represent past performance of Fund shares, which does not
guarantee future results. The investment return and principal value of an
investment in the Fund will fluctuate, so that an investor's shares, when
redeemed, may be worth more or less than their original cost.
From time to time, the Fund's investment advisor may waive some fees and/or
reimburse some expenses, without which performance would be lower. Waivers and
reimbursements are subject to change.
INVESTMENT OBJECTIVE AND STRATEGY
The Fund seeks long-term capital appreciation by investing primarily in equity
securities of small capitalization companies domiciled in the United States. As
of January 2, 1997, the Fund's market capitalization range changed. We now
invest primarily in companies having a market capitalization of up to $1 billion
at the time of purchase. Previously, the Fund invested in companies having a
market capitalization of up to $500 million at the time of purchase.
3
<PAGE>
AIM SMALL CAP EQUITY FUND
INTERVIEW WITH PORTFOLIO
MANAGEMENT TEAM
Q HOW DID THE AIM SMALL CAP EQUITY FUND PERFORM?
A Despite a narrow market favoring large cap stocks, the Fund posted very
attractive returns. For the six months ended June 30, 1998, total return was
18.43% for Class A shares and 17.99% for Class B shares excluding sales charges.
These results handily beat the 4.93% total return for the Russell 2000 Index.(5)
The Russell 2000 is an unmanaged index considered representative of small
capitalization stocks.
TOTAL RETURN
FOR THE SIX MONTHS ENDED JUNE 30, 1998
[CHART]
CLASS A 18.43%
CLASS B 17.99%
RUSSELL 2000 4.93%
Q WHAT WERE SOME MAJOR STOCK MARKET THEMES DURING THE REPORTING PERIOD?
A When the reporting period opened, the stock market was languishing over
concerns about the economic problems in Asia. In the U.S., however, the economy
continued to grow at a brisk pace while inflation and interest rates-two forces
that could potentially undermine corporate profits-remained low. Consequently,
the Dow Jones Industrial Average (DJIA) resumed its upward climb in late January
and set a record in May. The rally lost some of its momentum, however, when
concerns about Asia resurfaced. As a result, the DJIA ended the reporting period
slightly below its record level.
Throughout the period, large cap stocks, particularly equities of the very
largest companies (mega caps) were the undisputed market kings. With the Asian
crisis looming in the background, investors were attracted to the stocks of
large, well-known companies with more predictable earnings.
Q HOW DID SMALL CAP STOCKS FARE?
A During the first four months of the reporting period, small cap stocks
performed quite well, nearly keeping pace with large cap stocks. Investors
gravitated to small cap stocks because of their attractive valuations compared
to large cap stocks. Moreover, earnings projections for smaller companies were
generally better than those for larger companies. However, in May and June,
small caps were hurt by renewed concerns over Asia and significantly
underperformed large caps for the reporting period.
Q GIVEN THE UNFAVORABLE MARKET ENVIRONMENT FOR SMALL CAP STOCKS, WHY WAS THE
FUND'S PERFORMANCE SO STRONG?
A We focused on stocks of companies that had strong earnings growth and were
attractively priced relative to the rest of the market. The Fund benefited from
its exposure to the services and technology sectors, both of which performed
well during the reporting period.
As of June 30, 1998, stocks in the services sector composed 39.7% of the Fund's
holdings while technology stocks made up 16.6%. Since our last report six months
ago, we have maintained about the same exposure in the services sector while
slightly increasing our technology weighting.
Q WHAT WAS BEHIND THE STRONG SHOWING OF SERVICES SECTOR STOCKS?
A More companies continued to outsource, which gave the services sector a big
boost. Once considered a radical idea, outsourcing is now common practice.
Companies have found it cost-effective to outsource a variety of functions,
ranging from administrative and employee-related services to information
technology services. Moreover, companies have found that outsourcing allows them
to concentrate on their core businesses.
Services sector stocks that performed well for the Fund included Lason, which
provides record and document management and business communication services for
its client firms. Lason has grown rapidly through a series of acquisitions and
now serves more than 1,000 clients in 14 states.
(5) The Russell 2000 Index comprises 2,000 U.S.-domiciled common stocks.
Designed to measure small company stock performance, the index represents
roughly 10% of the U.S. stock market, and market capitalization of index
companies ranged from $171.7 million to $1.1 billion as of December 1997.
Its performance includes the effect of reinvested dividends and is measured
in U.S. dollars. Indices are unmanaged, not available for direct investment
and do not incur sales charges and professional management fees.
4
<PAGE>
AIM SMALL CAP EQUITY FUND CONTINUED
Other stocks we liked were Personnel Group of America, which provides staffing
services for business, professional and government organizations in 25 states
and the District of Columbia, and Lamar Advertising, which provides billboard
and other outdoor advertising services.
Q WHY WERE TECHNOLOGY STOCKS SO STRONG?
A Among the contributing factors were the growth of the Internet and the need to
reprogram older computers to recognize the year 2000. Technology companies also
benefited from growing demand for new and more powerful software.
Software AG Systems, our largest technology holding, provides software and
related services to corporations, government agencies, and educational
institutions. The company reported record earnings for the quarter ended June
30, 1998.
The Fund also benefited from owning the stocks of Documentum, a leading
manufacturer of software that enables employees of companies with offices
worldwide to share documents through computer networks and intranets, and Metro
Information Systems, which provides information technology consulting and custom
software development.
Q WHAT OTHER STOCKS DID WELL FOR THE FUND?
A In the consumer non-durables sector, which has benefited from increased
consumer spending, DM Management was one of the top-performing stocks in the
portfolio. The company is a direct marketer of high-quality women's apparel,
accessories, shoes, and gifts.
<TABLE>
<CAPTION>
ALLOCATION OF NET ASSETS %
JUNE 30, 1998
<S> <C>
SERVICES 39.7
TECHNOLOGY 16.6
HEALTH CARE 15.7
FINANCE 7.4
ENERGY 5.5
MATERIALS/BASIC INDUSTRY 4.9
CAPITAL GOODS 4.8
CONSUMER DURABLES 1.4
CONSUMER NON- DURABLES 0.7
SHORT TERM AND OTHER 3.3
</TABLE>
In the materials/basic industry sector, American Disposal Services contributed
to the Fund's strong performance. The company, which has been involved in
numerous acquisitions, provides non-hazardous solid-waste services in 13 states.
Q WHAT IS YOUR OUTLOOK?
A In the U.S., we believe the economic conditions are favorable for stocks. If
inflation remains low, the Federal Reserve Board (the Fed), which has left
monetary policy unchanged for more than a year, should be less likely to raise
interest rates. However, Fed Chairman Alan Greenspan, speaking to Congress in
July, warned that the tight labor market could eventually accelerate inflation.
That could cause the Fed to tighten monetary policy and adversely affect stocks.
Despite the current market preference for large cap equities, we remain
optimistic about small cap stocks. Relative to large cap stocks, the valuations
of small cap stocks are still compelling. And while profits for the largest
companies appear to be gravitating toward the single-digit level, profits
continue to be robust for smaller companies as a group.
We believe if these trends continue, small cap stocks could become more
attractive and even become market leaders. Such a development would be favorable
for the Fund. Please note, investing in small-size companies may involve greater
risk and potential reward than investing in more established companies.
<TABLE>
<CAPTION>
KEY PORTFOLIO HOLDINGS(6) % OF
(AS OF JUNE 30, 1998) NET ASSETS
<S> <C>
GENERAL CABLE CORP. 2.4
INSIGHT ENTERPRISES, INC. 2.2
NEWFIELD EXPLORATION CO. 2.1
DM MANAGEMENT CO. 2.1
SERVICE EXPERTS, INC. 2.0
LASON HOLDINGS, INC. 1.9
IRON MOUNTAIN, INC. 1.9
AMERICAN DISPOSAL SERVICES, INC. 1.9
SOFTWARE AG SYSTEMS, INC. 1.8
HA-LO INDUSTRIES, INC. 1.7
</TABLE>
(6) There is no assurance the Fund will continue to hold these or any other
securities mentioned in this report.
5
<PAGE>
[PHOTO]
INVESTMENT OBJECTIVE AND CURRENT STRATEGY
The AIM Mid Cap Growth Fund seeks long-term growth of capital by investing
primarily in the equity securities of medium-sized companies in the United
States. As of January 2, 1997, the Fund's market capitalization range changed.
We now invest primarily in companies having a market capitalization of $1
billion to $5 billion at the time of purchase. Previously, the Fund normally
initially focused on companies having a market capitalization of $2 billion or
less at the time of purchase.
[GRAPHIC]
AIM MID CAP GROWTH FUND
PERFORMANCE SUMMARY
<TABLE>
<CAPTION>
CLASS A AIM MID CAP RUSSELL MID CAP
SHARES GROWTH FUND INDEX
<S> <C> <C>
6/9/87 9525 10000
9916 10271
10230 10852
10697 11236
10439 11021
7468 8307
7229 7845
8153 8526
8315 8922
9011 9554
8887 9567
9087 9626
8811 9603
9630 10261
9392 10055
9020 9831
9277 10166
9030 10209
8753 9964
9062 10214
9724 10825
9837 10800
10344 10977
11306 11507
12217 12025
11782 11981
12765 12816
13127 13244
13416 13123
13292 12504
13437 12675
14025 12898
12638 11863
13424 12104
14396 12398
14134 11866
16144 12941
16209 12857
15576 12475
13511 11133
12255 10308
11971 9982
12681 10944
12987 11415
13621 12188
14484 13204
15215 13752
14997 13835
15521 14491
14363 13824
15248 14501
15980 14935
15456 14848
15150 15152
14178 14526
15492 16153
17323 16457
17488 16835
16468 16405
15964 16533
16106 16640
15174 16370
16315 17054
8/31/92 15756 16662
16249 17007
17565 17423
19867 18301
20410 18793
20577 19168
19265 19190
19063 19814
17823 19289
19075 19902
18622 20127
18860 20224
19897 21123
19826 21204
20815 21222
20899 20729
22113 21480
22396 22073
23027 21773
23245 20845
23786 20988
24005 21017
23928 20394
23760 21094
25241 22094
25446 21555
25511 21719
25176 20761
25581 21031
25755 21463
27042 22574
28054 23220
29110 23570
29804 24344
31713 25163
33448 26384
33680 26789
33882 27394
32537 26781
33246 28113
31523 28277
31622 28873
32267 29551
32598 29979
34929 30828
35028 31294
33639 30824
31457 28916
33110 30293
35424 31789
35441 32044
36929 33996
36457 33649
37054 34908
34070 34855
30998 33373
31665 34204
34544 36699
35755 37900
38862 41062
38107 40616
41776 42934
39740 41264
40178 42246
41579 43412
40293 42596
44152 45927
47041 48104
45102 48224
42430 48634
6/30/98 46180 47395
</TABLE>
<TABLE>
<CAPTION>
CLASS B AIM MID CAP RUSSELL MID CAP
SHARES GROWTH FUND INDEX
<S> <C> <C>
4/1/93 10000 10000
9402.52 9735
10062.9 10044.1
9817.61 10157.7
9937.11 10206.6
10478 10660.5
10434 10701.4
10956 10710.2
10993.7 10461.9
11607.8 10840.8
11757.2 11139.9
12076.4 10988.4
12185.1 10520.3
12463.6 10592.5
12572.3 10606.9
12524.7 10292.8
12436.4 10646
13197.1 11150.8
13299 10878.2
13326.2 10961.5
13142.8 10477.9
13355.9 10614
13432.2 10832
14096.2 11392.6
14622.8 11718.7
15164.7 11895.4
15515.7 12286.3
16500.3 12699.2
17385.6 13315.8
17500 13519.8
9/30/95 17591.6 13825.3
16889.5 13516.1
17248.2 14188.3
16350.5 14271
16385.3 14571.9
16716.2 14914
16872.9 15129.9
18065.7 15558.5
18117.9 15793.5
17386.6 15556.3
16246 14593.5
17090.5 15288.4
18274.6 16043.4
18274.6 16172
19032.1 17157.3
18774.3 16982.2
19070.5 17617.5
17524.5 17590.8
15941.5 16843.1
16274.8 17262.2
17737.5 18521.7
18348.5 19127.7
19940.7 20723.4
19542.7 20498.5
21412.7 21668.2
20357.3 20825.2
20570.3 21320.9
21280.3 21909.3
20609.7 21497.4
22569 23178.5
24025.4 24277.2
23030 24337.9
21657.5 24544.8
6/30/98 23643 23912
</TABLE>
The charts above show performance of AIM Mid Cap Growth Fund, Class A and Class
B shares since inception, versus the Russell Midcap Index. The top chart assumes
a hypothetical $10,000 initial investment in Class A shares and reflects all
Fund expenses and the maximum 5.50% sales charge. For Class B shares, results
reflect all Fund expenses and the applicable contingent deferred sales charge
(5% in the first year, decreasing to 0% at the beginning of the seventh year),
assuming a complete redemption at the end of the period. A $10,000 investment in
Advisor Class shares at inception on June 1, 1995, would have been worth $15,606
on June 30, 1998.
AVERAGE ANNUAL TOTAL RETURNS%(1)
JUNE 30, 1998
<TABLE>
<CAPTION>
SHARE CLASS WITHOUT SALES CHARGE(2) WITH SALES CHARGE
1-YEAR 5-YEAR 10-YEAR LIFE OF FUND 1-YEAR 5-YEAR 10-YEAR LIFE OF FUND
<S> <C> <C> <C> <C> <C> <C> <C> <C>
CLASS A(3) 30.18 20.11 17.07 15.43 23.02 18.76 16.40 14.84
CLASS B(3) 29.40 19.32 N/A 17.92 24.40 19.12 N/A 17.82
ADVISOR CLASS(4) 30.59 N/A N/A 15.55 N/A N/A N/A N/A
</TABLE>
<TABLE>
<CAPTION>
HISTORICAL PERFORMANCE(2)
ANNUAL TOTAL RETURNS % (PER CALENDAR YEAR)
1988 1989 1990 1991 1992 1993 1994 1995 1996 1997
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
CLASS A 11.14 54.77 -7.40 19.29 31.74 8.34 15.69 23.23 15.65 14.05
CLASS B N/A N/A N/A N/A N/A 16.08(3) 15.06 22.42 14.82 13.35
</TABLE>
(1) Figures assume reinvestment of all dividends and capital gains
distributions at net asset value.
(2) Performance data do not reflect the maximum 5.50% sales charge or the
contingent deferred sales charge for Class A and Class B shares,
respectively, which, if included, would have reduced quoted performance.
(3) The Fund began operations (Class A shares) on June 9, 1987; Class B shares
commenced on April 1, 1993.
(4) The Fund began offering Advisor Class shares on June 1, 1995. Advisor Class
shares are not sold directly to the general public. They are only available
through certain employee benefit plans, financial institutions and other
entities that have entered into specific agreements with the Fund's
distributor. Please see the Fund's prospectus for more complete
information.
The above data represent past performance of Fund shares, which does not
guarantee future results. The investment return and principal value of an
investment in the Fund will fluctuate, so that an investor's shares, when
redeemed, may be worth more or less than their original cost.
From time to time, the Fund's investment advisor may waive some fees and/or
reimburse some expenses, without which performance would be lower. Waivers and
reimbursements are subject to change.
6
<PAGE>
AIM MID CAP GROWTH FUND
INTERVIEW WITH PORTFOLIO
MANAGEMENT TEAM
Q HOW DID THE FUND PERFORM DURING THE SIX MONTHS ENDED JUNE 30, 1998?
A The Fund did very well. Its total return for the six months covered by this
report was 11.95% for Class A shares and 11.57% for Class B shares excluding
sales charges, outpacing the performance of its benchmark index. Over the same
period, the Russell Midcap Index gained 9.13%.(5)
The Fund's long-term performance has generated excellent Lipper rankings, as
shown below.
LIPPER RANKINGS
AS OF 6/30/98
<TABLE>
<CAPTION>
CLASS A SHARES
AIM FUND FUNDS IN
PERIOD RANK MID-CAP CATEGORY TOP %
<S> <C> <C> <C>
1 Year 38 284 14%
5 Years 13 87 15%
10 Years 9 37 25%
<CAPTION>
CLASS B SHARES
INCEPTION 4/1/93
<S> <C> <C> <C>
1 Year 43 284 16%
5 Years 20 87 23%
</TABLE>
FUND PERCENTAGE RANKINGS ARE BASED ON TOTAL RETURN AND ARE VERSUS ALL MID-
CAPITALIZATION MUTUAL FUNDS TRACKED BY LIPPER ANALYTICAL SERVICES, INC.,
EXCLUDING SALES CHARGES AND INCLUDING FEES AND EXPENSES.
Q WHAT WERE MARKET CONDITIONS LIKE DURING THIS REPORTING PERIOD?
A Though there were some uncertain moments, on balance it was a good period for
investors. Early on, market participants were pessimistic about the worldwide
impact of Asia's currency and market crises. This dampened stock performance and
increased volatility. But as the new year unfolded, the markets shrugged off
these difficulties for a while, and markets proceeded to record heights.
As the reporting period drew to a close, a more cautious climate returned as it
became obvious that economies in Asia were not going to recover quickly and that
the slowdown in Japan, Asia's major economy, could be prolonged. Markets
worldwide became more volatile and uncertain. They also continued to favor well-
known, widely traded stocks-a phenomenon known as flight to quality. Large-
capitalization stocks outperformed both mid-caps and small caps, creating an
unfriendly market for the Fund.
Q YET IT DID OUTPERFORM ITS MID-CAP BENCHMARK. WHAT HOLDINGS OR INDUSTRIES DID
PARTICULARLY WELL FOR YOU?
A We benefited most from our substantial holdings in the broadcasting and
publishing industry, which amounted to 12.4% of net assets as of June 30. Two
segments of that industry have been doing very well: outdoor advertising such as
billboards and bus stops, and the radio side of broadcasting.
Q WHY IS OUTDOOR ADVERTISING DOING WELL?
A Recently, both this industry and radio have experienced excellent pricing
power, which has been hard to find in the current low-inflation environment-few
companies have been able to increase prices.
In the outdoor advertising industry, pricing power is mainly a matter of supply
and demand-since almost no new billboards are being built in the U.S.,
billboard owners can raise their prices. In an industry of relatively fixed
costs, the incremental revenue from a price rise can go directly to the bottom
line.
This also is an industry undergoing a fair amount of consolidation, which is
creating national vendors of outdoor advertising platforms for the first time.
Outdoor advertising is also substantially cheaper than television, lowering
advertisers' costs for reaching their target audiences.
As of June 30, our largest holding as a percent of net assets was the largest
outdoor advertising firm in the U.S., Outdoor Systems, Inc., which recently
signed an innovative agreement with Ford Motor Company for a multi-year ad
campaign using Outdoor Systems' most in-demand billboards in major markets.
It is the first-ever nationwide product launch with a billboard campaign. Our
holdings of Outdoor Systems appreciated from 3.6% of net assets to 7.0% and
were a major contributor to our good performance.
(5) The Russell Midcap Index comprises the capitalization-weighted average
price of 800 selected common stocks of medium-size domestic companies. Its
performance includes the effect of reinvested dividends and is measured in U.S.
dollars. Indices are unmanaged, not available for direct investment and do not
incur sales charges and professional management fees.
7
<PAGE>
AIM MID CAP GROWTH FUND CONTINUED
Q WHAT FACTORS ARE FUELING GROWTH IN THE
RADIO INDUSTRY?
A The Telecommunications Deregulation Act of 1996 relaxed restrictions on
ownership of radio stations, which has helped fuel a wave of consolidation in
this industry also. Portfolio holdings such as Chancellor Media Corp. and Jacor
Communications, Inc. have been taking advantage of industry deregulation.
Weaker stations are being purchased by companies with stronger management, and
consolidation means fewer operators may capture a much larger share of an
advertiser's target audience, giving a station more pricing leverage.
The radio sector is also enjoying incremental advertising revenue. Two
significant sources of this new revenue are publicity for the host of new
telecommunications services, especially wireless services, being introduced by
many firms, and the move by large pharmaceutical companies to advertise
prescription drugs directly to potential patients rather than just to
physicians.
Q WHAT TRENDS DO YOU EXPECT IN THE NEXT FEW MONTHS?
A We are cautiously optimistic. It is hard to imagine, given the current
economic background, that interest rates will move sharply. Inflation seems
likely to remain contained as global competition and lower energy costs offset
the inflationary potential of tight labor markets. The Federal Reserve Board has
left rates unchanged for more than a year. Without a rate move, we do not expect
a significant correction to occur in the stock market.
<TABLE>
<CAPTION>
ALLOCATION OF NET ASSETS %
JUNE 30, 1998
<S> <C>
SERVICES 49.2
TECHNOLOGY 14.6
FINANCE 13.0
HEALTH CARE 8.0
CONSUMER NON-DURABLES 6.7
MATERIALS/BASIC INDUSTRY 5.4
ENERGY 3.1
CAPITAL GOODS 2.5
SHORT TERM & OTHER (2.5)
</TABLE>
Earnings growth has slowed overall, but earnings disappointments have tended to
be company-specific rather than across the board. The worst storm clouds looming
at the end of the reporting period were in Asia, especially the seemingly
intractable economic slump in Japan. Concern was increasing that contraction of
Asian economies could become a significant drag on economic activity worldwide,
and markets lost much of their upward momentum late in the reporting period.
Q WHAT IS YOUR OUTLOOK FOR THE FUND?
A We remain confident about our investment
criteria, which search for:
- - companies where management has significant incentive to enhance shareholder
value;
- - companies enjoying a tailwind from a prosperous industry-as media companies
now are; and
- - most importantly, companies whose return on investment and earnings are
growing.
Valuations in the mid cap sector remain more attractive than in the large cap
sector. Earnings of mid cap and smaller companies are growing in the double
digits, whereas second-quarter year-over-year earnings growth for large
companies in the S&P 500 was in the low single digits.(6) You can simply get
more earnings for your investment in smaller and mid cap stocks, especially
in view of the extremely high price/earnings ratios of many blue-chip stocks.
We think this comparative valuation should, ultimately, translate into
stronger performance for mid-size stocks.
<TABLE>
<CAPTION>
KEY PORTFOLIO HOLDINGS(7) % OF
(AS OF JUNE 30, 1998) NET ASSETS
<S> <C>
OUTDOOR SYSTEMS, INC. 7.0
CLEAR CHANNEL COMMUNICATIONS, INC. 6.1
SNYDER COMMUNICATIONS, INC. 5.6
HILTON HOTELS CORP. 4.2
U.S. FOODSERVICE 4.0
CHANCELLOR MEDIA CORP. 3.5
STERLING COMMERCE, INC. 3.3
PREMIER PARKS, INC. 3.1
INTERNATIONAL SPECIALITY PRODUCTS, INC. 2.6
SERVICEMASTER CO. 2.5
</TABLE>
Allocations will change based on current market conditions.
A complete listing may be found in the Financial Statements section of this
report.
(6) The S&P 500 (Standard & Poor's Composite Index of 500 stocks) is a group of
unmanaged securities widely regarded as representative of the stock market in
general.
(7) There is no assurance the Fund will continue to hold these or any other
securities mentioned in this report.
8
<PAGE>
AIM AMERICA VALUE FUND
PERFORMANCE SUMMARY
<TABLE>
<CAPTION>
CLASS A SHARES AIM AMERICA VALUE FUND S&P 500 INDEX
<S> <C> <C>
10/18/95 9525 10000
9541.67 9904.95
10358.3 10339.8
10633.3 10538.9
10966.7 10897.6
10941.7 10998.7
11183.3 11104.5
11658.3 11268.3
12241.7 11558.9
11983.3 11603
11266.7 11090.3
11483.3 11324.3
12116.7 11961.6
12233.3 12291.6
12425 13220.6
12241.3 12958.7
12809.5 13768.3
13010 13876.2
12433.5 13306
12725.9 14100.4
13469.6 14958.9
13970.9 15629.1
15383.1 16872.6
14923.5 15927.4
15750.7 16799.7
14940.2 16238.6
15182.5 16990.3
15575.2 17282
15268.2 17473.1
16405.8 17666.4
16992.7 18940.5
17236.5 19131
16604.5 19323.5
6/30/98 16449 20328
</TABLE>
<TABLE>
<CAPTION>
CLASS B SHARES AIM AMERICA VALUE FUND S&P 500 INDEX
<S> <C> <C>
10/18/95 10000 10000
10008.7 9904.95
10866.1 10339.8
11154.9 10538.9
11487.3 10897.6
11461.1 10998.7
11706 11104.5
12196 11268.3
12808.4 11558.9
12528.4 11603
11776 11090.3
11986 11324.3
12642.2 11961.6
12764.7 12291.6
12957.1 13220.6
12755.5 12958.7
13343.3 13768.3
2/28/98 13545 13876.2
12939.7 13306
13238 14100.4
13992.4 14958.9
14510 15629.1
15966.3 16872.6
15492.6 15927.4
16334.8 16799.7
15483.8 16238.6
15720.7 16990.3
12/31/97 16128.2 17282
15806.4 17473.1
16980 17666.4
17576.3 18940.5
17813 19131
17150.4 19323.5
6/30/98 16822 20328
</TABLE>
The charts above show performance of AIM America Value Fund Class A and Class B
shares since inception, versus the S&P 500. The top chart assumes a hypothetical
$10,000 initial investment in Class A shares and reflects all Fund expenses and
the maximum 5.50% sales charge. For Class B shares, results reflect all Fund
expenses and the applicable contingent deferred sales charge (5% in the first
year, decreasing to 0% at the beginning of the seventh year), assuming a
complete redemption at the end of the period. A $10,000 investment in Advisor
Class shares at inception on October 18, 1995, would have been worth $17,602 on
June 30, 1998.
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURNS %(1)
JUNE 30, 1998
WITHOUT SALES CHARGE(2) WITH SALES CHARGE
SHARE CLASS 1-YEAR LIFE OF FUND(3)1-YEAR LIFE OF FUND(3)
<S> <C> <C> <C> <C>
CLASS A 18.72 22.79 12.21 20.23
CLASS B 18.00 22.03 13.00 21.23
ADVISOR CLASS(4) 19.22 23.28 N/A N/A
</TABLE>
INVESTMENT OBJECTIVE
AND CURRENT STRATEGY
The Fund seeks long-term capital appreciation by investing primarily in equity
securities of issuers domiciled in the United States, that have a market
capitalization greater than $500 million at the time of purchase. We look for
companies we believe are undervalued and therefore offer above-average potential
for capital appreciation.
(1) Figures assume reinvestment of all dividends and capital gains
distributions at net asset value.
(2) Performance data do not reflect the maximum 5.50% sales charge or the
contingent deferred sales charge for Class A and Class B shares,
respectively, which, if included, would have reduced quoted performance.
(3) The Fund began operations on October 18, 1995.
(4) Advisor Class shares are not sold directly to the general public. They are
only available through certain employee benefit plans, financial
institutions and other entities that have entered into specific agreements
with the Fund's distributor. Please see the Fund's prospectus for more
complete information.
The above data represent past performance of Fund shares, which does not
guarantee future results. The investment return and principal value of an
investment in the Fund will fluctuate, so that an investor's shares, when
redeemed, may be worth more or less than their original cost.
From time to time, the Fund's investment advisor may waive some fees and/or
reimburse some expenses, without which performance would be lower. Waivers
and reimbursements are subject to change.
9
<PAGE>
AIM AMERICA VALUE FUND
INTERVIEW WITH PORTFOLIO
MANAGEMENT TEAM
Q AFTER A STRONG FIRST QUARTER, THE "ASIAN FLU" RETURNED AND DRASTICALLY
CHANGED THE DYNAMIC OF THE MARKET. HOW DID THE FUND PERFORM IN THIS ENVIRONMENT?
A The Fund underperformed the Standard &Poor's Composite Index of 500 stocks
(S&P 500)(5) during the reporting period, producing a return of 6.49% for
Class A shares and 6.16% for Class B shares excluding sales charges. Over the
same period, the S&P 500 returned 17.72%, but value stocks as a whole
underperformed with the S&P Barra Value Index6 up only 12.1%. The Fund was
also impacted by being underweighted in health care and technology, where our
valuation discipline precludes us from fully participating in these sectors.
The Fund still maintains a strong long-term track record as shown on the
pages nearby.
To provide some insight into the divergence of market sectors, the Russell
Midcap Index was up 9.13% for the period, while the Russell Mid Cap Value and
Russell 2000 benchmarks rose 7.17% and 4.93%, respectively.(7) It is worth
keeping in mind that much of the S&P 500's performance can be accounted for
by a few very large, so-called "mega-cap" stocks favored by markets in the
past few years.
Q WHAT FACTORS INFLUENCED THE MARKET DURING THE REPORTING PERIOD?
A At the beginning of the reporting period, many investors were concerned about
events of the previous months, resulting from economic difficulties in Asia,
would affect the investing environment. However, as the new year unfolded, U.S.
markets appeared to shrug off these complications and moved ahead.
A much-anticipated slowdown in the U.S. economy never materialized and the gross
domestic product (GDP) rose at a rapid 5.4% annual rate during the first quarter
of 1998. Despite this strong economic growth, inflation remained low. The
Commerce Department's overall price index rose at its slowest rate in 34 years.
Concerns about Asia receded, and the Dow Jones Industrial Average closed above
the 9,200 mark for the first time ever in May.
- --------------------------------------------------------------------------------
WE BELIEVE THE FUND IS INVESTED IN
FUNDAMENTALLY STRONG COMPANIES WITH
EXCELLENT LONG-TERM VALUE.
- --------------------------------------------------------------------------------
The story was much different in the second quarter of the year. Renewed
uncertainty about the long-term effects of the Asian currency crises drove
investors to the relative safety and liquidity of a handful of large-cap stocks.
Mid- and small-cap stocks, which had been performing well, took the brunt of
this turn in market sentiment. The market, which had made promising strides in
the first quarter, became volatile and generally moved sideways throughout the
second quarter. By the end of the reporting period, growth in the GDP, which had
taken off during the early months of the year, showed signs of slowing to 2%-3%.
Q HOW DID THE RETURN OF CONCERNS ABOUT ASIA AFFECT THE FUND'S PERFORMANCE?
A As we mentioned, the re-emergence of concerns about Asia caused investors
to readjust their focus and seek refuge in the perceived safety and liquidity
of large-cap growth stocks. As a value fund we do not typically target the
mega-cap companies that came into favor during the second quarter.
PORTFOLIO CHARACTERISTICS
JUNE 30, 1998
<TABLE>
<CAPTION>
AIM AMERICA
VALUE FUND HOLDINGS S&P 500
<S> <C> <C>
# OF HOLDINGS 55 500
P/E (1997) 14.7x 19.3x
RELATIVE P/E 76% 100%
DIVIDEND YIELD 2.3% 1.6%
RELATIVE YIELD 143% 100%
PRICE TO BOOK RATIO 2.6x 3.9x
RELATIVE PRICE TO BOOK RATIO 67% 100%
AVERAGE MARKET CAP $26.4 $55.1
($ BILLION)
</TABLE>
The data presented here may change based on current market conditions and Fund
holdings.
(5) The S&P 500 Index comprises the capitalization-weighted average price of
the 500 largest publicly traded U.S. companies. It includes the effect of
reinvested dividends and is measured in U.S. dollars.
(6) The S&P Barra Value Index is a subset of the S&P 500 Index that contains
firms with lower price/book ratios. It comprises the
capitalization-weighted average price of 333 companies, includes the effect
of reinvested dividends and is measured in U.S. dollars.
(7) Russell Midcap Index is a subset of the large-capitalization Russell 1000
Index. It measures the performance of the 800 smallest securities in the
Russell 1000 Index. The Russell Midcap Value Index measures the performance
of those Russell Midcap companies with lower price-to-book rations and
lower forecasted growth values. The Russell 2000 Stock Index is an
unmanaged index generally considered representative of small-capitalization
stocks.
10
<PAGE>
AIM AMERICA VALUE FUND CONTINUED
While many of these large company stocks performed well in the short-term, we
believe many of them are now fairly valued. In the last year, price/earnings
ratios have risen substantially, and we think that by any measure, the market
overall is very fully valued. While the Asian crisis benefited these companies
in the short term, we believe the market cannot survive on the momentum of 10 or
20 names alone.
Over time, we believe concerns about Asia's currency woes and the attraction of
a very narrow group of stocks could yield to investors' needs for the
fundamental value and profit potential inherent in the Fund's portfolio.
Q THE FUND IS MOST HEAVILY WEIGHTED IN FINANCIAL ISSUES. HOW DID THE FUND'S
WEIGHTING IN THIS SECTOR AFFECT PERFORMANCE?
A Financial services issues received some long overdue recognition from
investors and consequently, performed very well for the Fund. Portfolio holdings
like the Chase Manhattan Corp., and Mellon Bank Corp. were up 12% and 10%,
respectively, in the second quarter alone.
In addition, earnings growth projections for banks and insurance companies
remain stable at 13%-15% for the next year. Yet they are not nearly as expensive
as the broad market, which makes them a good value for the Fund. In addition,
the trend toward declining interest rates bodes well for our holdings.
Emblematic of what is going on in this field is the merger, announced in April,
of insurance giant Traveler's Group, Inc., and major money-center banker
Citicorp-two stocks in the Fund's portfolio. This largest corporate merger to
date aims to meld two financial-services leaders with histories of solid
earnings. We expect further industry consolidation.
Q ENERGY STOCKS MADE UP ANOTHER SIGNIFICANT PORTION OF THE PORTFOLIO. HOW DID
THEY PERFORM?
A In contrast to the financial services industry, the energy sector suffered
some setbacks during the reporting period. Prices of energy stocks experienced
dramatic price drops as a result of the troubled economies in Asia. Portfolio
holdings like Anadarko and Mobil Corp. fell in price despite attractive cash
flows and internal restructuring that make them attractive long-term value
investments.
While energy holdings have currently fallen out of favor, we believe the setback
is temporary. Long term, we consider the trend for energy to be positive.
Portfolio holdings like McDermott International, Inc., and Unocal are in the
process of restructuring, and other holdings within the Fund are taking positive
steps such as cutting costs, buying back stock, and selling assets, actions that
could benefit the Fund going forward.
Q WHAT HOLDINGS WERE YOU ESPECIALLY PLEASED WITH?
A While hardly a glamorous stock, Ford Motor Co. performed exceptionally well
during the reporting period, increasing approximately 82% in value. Despite
concerns about Asia and the resulting deceleration in the global economy, Ford
did not struggle through the second quarter the way many other companies with
similar international exposure did.
We attribute this to Ford's fundamental strength, a quality we look for in all
our value investments. Though the stock was out of favor for some time, Ford
Motor Co. has developed stronger profits and steady growth. In recent years,
Ford has experienced a successful restructuring, bought back stock, and seen an
increase in dividends. Ford is a prime example of how patience, anchored by
confidence in a company's strong fundamentals, can eventually create benefits
for shareholders.
Q WHAT IS YOUR OUTLOOK IN THE NEAR TERM?
A Despite some setbacks in the second quarter of this year, we believe
discouragement based on these short-term results is premature. With the Asian
crisis creating volatility in the marketplace, we believe the Fund's short-term
performance is not a reasonable indicator of the value of its investments.
Inflation continues to be low in the U.S. and other developed countries. If
inflation remains contained, we expect the Federal Reserve Board to leave
monetary policy unchanged, as it has for over a year now. However, with the
return of concerns about Asia and the resulting market volatility, it would be
imprudent not to approach the coming months without some degree of caution.
11
<PAGE>
AIM AMERICA VALUE FUND CONTINUED
This volatility could indeed create some value opportunities in sectors such as
commodities and technology. Although the outlook for commodity prices remains
weak, it is interesting to note that the market's punishment of the stocks is
creating several situations that may actually benefit from industry pressures.
ALLOCATION OF NET ASSETS %
<TABLE>
<CAPTION>
JUNE 30, 1998
<S> <C>
FINANCE 33.1
ENERGY 17.1
SERVICES 12.9
MATERIALS/BASIC INDUSTRY 12.4
CONSUMER DURABLES 7.1
TECHNOLOGY 5.2
CONSUMER NON-DURABLES 4.0
CAPITAL GOODS 3.7
HEALTH CARE 1.6
SHORT TERM AND OTHER 2.9
</TABLE>
We believe the Fund is invested in fundamentally strong companies with excellent
long-term value. Though the Fund did not outperform these large-company stocks
in the short term, we hope investors will ultimately be pleased with the Fund's
long-term results.
<TABLE>
<CAPTION>
Key Portfolio Holdings(8) % of
(as of June 30, 1998) Net Assets
<S> <C>
INTERNATIONAL BUSINESS MACHINES CORP. 2.9
EXEL LTD. 2.9
BELL ATLANTIC CORP. 2.8
CHASE MANHATTAN CORP. 2.6
TEXAS UTILITIES CO. 2.5
FORD MOTOR CO. 2.5
TRAVELERS GROUP, INC. 2.5
ALLSTATE CORP. 2.4
FLEET FINANCIAL GROUP, INC. 2.4
SLM HOLDING CORP. 2.4
</TABLE>
Allocations will change based on current market conditions.
(8) A complete listing may be found in the Financial Statements section of this
report.
12
<PAGE>
<PAGE>
AIM SMALL CAP
EQUITY FUND
AIM MID CAP
GROWTH FUND
AIM AMERICA
VALUE FUND
FINANCIAL
STATEMENTS
<PAGE>
AIM SMALL CAP EQUITY - CONSOLIDATED
(FORMERLY GT GLOBAL AMERICA SMALL CAP GROWTH FUND)
PORTFOLIO OF INVESTMENTS
June 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- -------------------------------------------------------------- -------- ----------- ----------- -------------
<S> <C> <C> <C> <C>
Services (39.7%)
Insight Enterprises, Inc.-/- ............................... US 19,800 $ 792,000 2.2
RETAILERS-OTHER
DM Management Co.-/- ....................................... US 20,500 735,437 2.1
RETAILERS-APPAREL
Service Experts, Inc.-/- ................................... US 20,100 693,450 2.0
CONSUMER SERVICES
Lason Holdings, Inc.-/- .................................... US 12,500 681,250 1.9
CONSUMER SERVICES
Iron Mountain, Inc.-/- ..................................... US 14,700 657,825 1.9
BUSINESS & PUBLIC SERVICES
American Disposal Services, Inc.-/- ........................ US 14,000 656,250 1.9
BUSINESS & PUBLIC SERVICES
HA-LO Industries, Inc.-/- .................................. US 18,900 588,263 1.7
CONSUMER SERVICES
Personnel Group of America, Inc.-/- ........................ US 27,300 546,000 1.5
BUSINESS & PUBLIC SERVICES
Eastern Environmental Services, Inc.-/- .................... US 15,400 523,600 1.5
CONSUMER SERVICES
Central Parking Corp. ...................................... US 10,400 473,200 1.3
CONSUMER SERVICES
Comfort Systems USA, Inc.-/- ............................... US 20,200 472,175 1.3
BUSINESS & PUBLIC SERVICES
99 Cents Only Stores-/- .................................... US 11,100 460,650 1.3
RETAILERS-OTHER
ITT Educational Services, Inc.-/- .......................... US 12,400 399,900 1.1
CONSUMER SERVICES
United Rentals, Inc.-/- .................................... US 9,300 390,600 1.1
BUSINESS & PUBLIC SERVICES
Hagler Bailly, Inc.-/- ..................................... US 14,900 385,538 1.1
BUSINESS & PUBLIC SERVICES
Expeditors International of Washington, Inc. ............... US 8,400 369,600 1.0
TRANSPORTATION - SHIPPING
Superior Services, Inc.-/- ................................. US 12,100 363,756 1.0
CONSUMER SERVICES
Cornell Corrections, Inc.-/- ............................... US 16,300 342,300 1.0
BUSINESS & PUBLIC SERVICES
Fairfield Communities, Inc.-/- ............................. US 17,800 341,537 1.0
LEISURE & TOURISM
ResortQuest International, Inc.-/- ......................... US 20,400 332,775 0.9
LEISURE & TOURISM
United Road Services, Inc.-/- .............................. US 15,800 302,175 0.9
CONSUMER SERVICES
Execustay Corp.-/- ......................................... US 21,900 257,325 0.7
LEISURE & TOURISM
Championship Auto Racing Teams, Inc.-/- .................... US 13,900 253,675 0.7
LEISURE & TOURISM
Cox Radio, Inc.-/- ......................................... US 5,700 246,525 0.7
BUSINESS & PUBLIC SERVICES
</TABLE>
The accompanying notes are an integral part of the financial statements.
F1
<PAGE>
AIM SMALL CAP EQUITY - CONSOLIDATED
(FORMERLY GT GLOBAL AMERICA SMALL CAP GROWTH FUND)
PORTFOLIO OF INVESTMENTS (cont'd)
June 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- -------------------------------------------------------------- -------- ----------- ----------- -------------
<S> <C> <C> <C> <C>
Services (Continued)
Duane Reade, Inc.-/- ....................................... US 8,100 $ 243,000 0.7
RETAILERS-OTHER
Lamar Advertising Co.-/- ................................... US 6,500 233,188 0.7
BROADCASTING & PUBLISHING
Ambassadors International, Inc.-/- ......................... US 7,300 221,281 0.6
LEISURE & TOURISM
CompX International, Inc.-/- ............................... US 10,200 220,575 0.6
BUSINESS & PUBLIC SERVICES
Industrial Distribution Group, Inc.-/- ..................... US 13,200 204,600 0.6
WHOLESALE & INTERNATIONAL TRADE
e.spire Communications, Inc.-/- ............................ US 8,700 196,294 0.6
TELEPHONE NETWORKS
CORT Business Services Corp.-/- ............................ US 5,900 185,850 0.5
BUSINESS & PUBLIC SERVICES
Vistana, Inc.-/- ........................................... US 9,500 174,563 0.5
LEISURE & TOURISM
Jevic Transportation, Inc.-/- .............................. US 15,200 172,900 0.5
TRANSPORTATION - SHIPPING
Metzler Group, Inc.-/- ..................................... US 4,500 164,813 0.5
BUSINESS & PUBLIC SERVICES
Restoration Hardware, Inc.-/- .............................. US 6,100 153,263 0.4
RETAILERS-OTHER
Blue Rhino Corp.-/- ........................................ US 8,200 143,500 0.4
RETAILERS-OTHER
Sunglass Hut International, Inc.-/- ........................ US 12,700 140,494 0.4
RETAILERS-APPAREL
Cavanaughs Hospitality Corp.-/- ............................ US 9,700 126,706 0.4
LEISURE & TOURISM
Waste Connections, Inc.-/- ................................. US 6,200 123,225 0.3
CONSUMER SERVICES
ACSYS, Inc.-/- ............................................. US 6,400 88,000 0.2
BUSINESS & PUBLIC SERVICES
-----------
14,058,058
-----------
Technology (16.6%)
Software AG Systems, Inc.-/- ............................... US 21,200 620,100 1.8
SOFTWARE
Metro Information Services, Inc.-/- ........................ US 12,400 485,150 1.4
COMPUTERS & PERIPHERALS
Atlantic Data Services, Inc.-/- ............................ US 24,000 460,500 1.3
COMPUTERS & PERIPHERALS
Computer Management Sciences, Inc.-/- ...................... US 16,200 384,750 1.1
COMPUTERS & PERIPHERALS
Roper Industries, Inc. ..................................... US 13,900 363,138 1.0
INSTRUMENTATION & TEST
Data Processing Resources Corp.-/- ......................... US 11,000 341,687 1.0
COMPUTERS & PERIPHERALS
AnswerThink Consulting Group, Inc.-/- ...................... US 15,800 339,700 1.0
COMPUTERS & PERIPHERALS
</TABLE>
The accompanying notes are an integral part of the financial statements.
F2
<PAGE>
AIM SMALL CAP EQUITY - CONSOLIDATED
(FORMERLY GT GLOBAL AMERICA SMALL CAP GROWTH FUND)
PORTFOLIO OF INVESTMENTS (cont'd)
June 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- -------------------------------------------------------------- -------- ----------- ----------- -------------
<S> <C> <C> <C> <C>
Technology (Continued)
Platinum Technology, Inc.-/- ............................... US 9,800 $ 279,913 0.8
SOFTWARE
MAPICS, Inc.-/- ............................................ US 13,300 261,844 0.7
SOFTWARE
Platinum Software Corp.-/- ................................. US 10,100 246,188 0.7
SOFTWARE
Excel Switching Corp.-/- ................................... US 9,400 233,825 0.7
TELECOM TECHNOLOGY
Cotelligent Group, Inc.-/- ................................. US 9,700 226,737 0.6
COMPUTERS & PERIPHERALS
Concord Communications, Inc.-/- ............................ US 8,200 209,612 0.6
SOFTWARE
Analysts International Corp. ............................... US 6,850 194,369 0.6
COMPUTERS & PERIPHERALS
SPR, Inc.-/- ............................................... US 6,000 186,750 0.5
COMPUTERS & PERIPHERALS
Fundtech Ltd.-/- {\/} ...................................... ISRL 8,525 160,909 0.5
SOFTWARE
JDA Software Group, Inc.-/- ................................ US 3,300 144,375 0.4
SOFTWARE
Documentum, Inc.-/- ........................................ US 2,900 139,200 0.4
SOFTWARE
BrightStar Information Technology Group, Inc.-/- ........... US 9,500 131,812 0.4
COMPUTERS & PERIPHERALS
Aspen Technology, Inc.-/- .................................. US 2,300 116,150 0.3
SOFTWARE
Pericom Semiconductor Corp.-/- ............................. US 15,400 105,875 0.3
SEMICONDUCTORS
Amkor Technology, Inc.-/- .................................. US 10,800 100,912 0.3
SEMICONDUCTORS
Walker Interactive Systems, Inc.-/- ........................ US 3,700 54,575 0.2
SOFTWARE
-----------
5,788,071
-----------
Health Care (15.7%)
ESC Medical Systems Ltd.-/- {\/} ........................... ISRL 15,000 506,250 1.4
MEDICAL TECHNOLOGY & SUPPLIES
ADAC Laboratories-/- ....................................... US 19,200 432,000 1.2
HEALTH CARE SERVICES
SEQUUS Pharmaceuticals, Inc.-/- ............................ US 36,300 412,913 1.2
PHARMACEUTICALS
PhyCor, Inc.-/- ............................................ US 24,800 410,750 1.2
HEALTH CARE SERVICES
Vertex Pharmaceuticals, Inc.-/- ............................ US 16,300 366,750 1.0
PHARMACEUTICALS
AmeriPath, Inc.-/- ......................................... US 30,900 365,006 1.0
HEALTH CARE SERVICES
Assisted Living Concepts, Inc.-/- .......................... US 19,600 338,100 1.0
HEALTH CARE SERVICES
</TABLE>
The accompanying notes are an integral part of the financial statements.
F3
<PAGE>
AIM SMALL CAP EQUITY - CONSOLIDATED
(FORMERLY GT GLOBAL AMERICA SMALL CAP GROWTH FUND)
PORTFOLIO OF INVESTMENTS (cont'd)
June 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- -------------------------------------------------------------- -------- ----------- ----------- -------------
<S> <C> <C> <C> <C>
Health Care (Continued)
CryoLife, Inc.-/- .......................................... US 21,400 $ 337,050 1.0
BIOTECHNOLOGY
Gilead Sciences, Inc.-/- ................................... US 10,200 327,037 0.9
BIOTECHNOLOGY
AXYS Pharmaceuticals, Inc.-/- .............................. US 44,100 314,212 0.9
PHARMACEUTICALS
Scios, Inc.-/- ............................................. US 35,200 312,400 0.9
HEALTH CARE SERVICES
COR Therapeutics, Inc.-/- .................................. US 22,500 312,188 0.9
BIOTECHNOLOGY
Total Renal Care Holdings, Inc.-/- ......................... US 8,300 286,350 0.8
HEALTH CARE SERVICES
American Dental Partners, Inc.-/- .......................... US 16,800 235,200 0.7
HEALTH CARE SERVICES
Barr Laboratories, Inc.-/- ................................. US 5,900 234,525 0.7
PHARMACEUTICALS
Symphonix Devices, Inc.-/- ................................. US 15,200 174,800 0.5
HEALTH CARE SERVICES
Physician Reliance Network, Inc.-/- ........................ US 6,200 70,913 0.2
MEDICAL TECHNOLOGY & SUPPLIES
Depotech Corp.-/- .......................................... US 42,200 65,937 0.2
PHARMACEUTICALS
-----------
5,502,381
-----------
Finance (7.4%)
Metris Cos., Inc.-/- ....................................... US 6,700 427,125 1.2
CONSUMER FINANCE
Affiliated Managers Group, Inc.-/- ......................... US 10,600 393,525 1.1
INVESTMENT MANAGEMENT
Reinsurance Group of America, Inc. Non-voting-/- ........... US 7,300 374,581 1.1
INSURANCE-LIFE
LaSalle Partners, Inc.-/- .................................. US 7,300 324,850 0.9
REAL ESTATE
Correctional Properties Trust-/- ........................... US 15,800 319,950 0.9
REAL ESTATE INVESTMENT TRUST
Annuity and Life Re (Holdings) Ltd.-/- ..................... US 11,000 243,375 0.7
INSURANCE-LIFE
Stirling Cooke Brown Holdings Ltd. ......................... US 8,000 225,000 0.6
INSURANCE - PROPERTY-CASUALTY
AmeriCredit Corp.-/- ....................................... US 5,200 185,575 0.5
CONSUMER FINANCE
American Capital Strategies Ltd. ........................... US 6,600 150,975 0.4
CONSUMER FINANCE
-----------
2,644,956
-----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F4
<PAGE>
AIM SMALL CAP EQUITY - CONSOLIDATED
(FORMERLY GT GLOBAL AMERICA SMALL CAP GROWTH FUND)
PORTFOLIO OF INVESTMENTS (cont'd)
June 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- -------------------------------------------------------------- -------- ----------- ----------- -------------
<S> <C> <C> <C> <C>
Energy (5.5%)
Newfield Exploration Co.-/- ................................ US 29,600 $ 736,300 2.1
OIL
Petsec Energy Ltd. - ADR-/- {\/} ........................... AUSL 14,600 236,337 0.7
OIL
Cross Timbers Oil Co. ...................................... US 10,800 205,875 0.6
OIL
Dril-Quip, Inc.-/- ......................................... US 7,800 204,750 0.6
ENERGY EQUIPMENT & SERVICES
Mallon Resources Corp.-/- .................................. US 16,800 201,600 0.6
OIL
Varco International, Inc.-/- ............................... US 9,600 190,200 0.5
ENERGY EQUIPMENT & SERVICES
Hanover Compressor Co.-/- .................................. US 5,000 135,313 0.4
ENERGY EQUIPMENT & SERVICES
-----------
1,910,375
-----------
Materials/Basic Industry (4.9%)
OM Group, Inc. ............................................. US 12,600 519,750 1.5
METALS - NON-FERROUS
Hawk Corp. "A"-/- .......................................... US 21,100 371,888 1.1
METALS - NON-FERROUS
Gibraltar Steel Corp.-/- ................................... US 16,100 330,050 0.9
METALS - STEEL
Cambrex Corp. .............................................. US 10,400 273,000 0.8
CHEMICALS
CombiChem, Inc.-/- ......................................... US 33,000 228,937 0.6
CHEMICALS
-----------
1,723,625
-----------
Capital Goods (4.8%)
General Cable Corp. ........................................ US 28,700 828,712 2.4
INDUSTRIAL COMPONENTS
Knoll, Inc.-/- ............................................. US 14,800 436,600 1.2
OFFICE EQUIPMENT
LMI Aerospace, Inc.-/- ..................................... US 14,500 150,438 0.4
AEROSPACE/DEFENSE
Gradall Industries, Inc.-/- ................................ US 10,200 149,175 0.4
MACHINERY & ENGINEERING
Global Industries Ltd.-/- .................................. US 8,100 136,687 0.4
CONSTRUCTION
-----------
1,701,612
-----------
Consumer Durables (1.4%)
Tower Automotive, Inc.-/- .................................. US 7,800 334,425 0.9
AUTO PARTS
U.S. Home Corp.-/- ......................................... US 4,100 169,125 0.5
HOUSING
-----------
503,550
-----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F5
<PAGE>
AIM SMALL CAP EQUITY - CONSOLIDATED
(FORMERLY GT GLOBAL AMERICA SMALL CAP GROWTH FUND)
PORTFOLIO OF INVESTMENTS (cont'd)
June 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- -------------------------------------------------------------- -------- ----------- ----------- -------------
<S> <C> <C> <C> <C>
Consumer Non-Durables (0.7%)
Mail-Well, Inc.-/- ......................................... US 11,600 $ 251,575 0.7
OTHER CONSUMER GOODS
Racing Champions Corp.-/- .................................. US 700 8,181 --
TOYS
-----------
259,756
----------- -----
TOTAL EQUITY INVESTMENTS (cost $31,159,540) .................. 34,092,384 96.7
----------- -----
<CAPTION>
VALUE % OF NET
REPURCHASE AGREEMENT (NOTE 1) ASSETS
- -------------------------------------------------------------- ----------- -------------
<S> <C> <C> <C> <C>
Dated June 30, 1998, with State Street Bank & Trust Co., due
July 1, 1998, for an effective yield of 5.70%,
collateralized by $2,560,000 U.S. Treasury Bills, 5.875%
due 1/31/99 (market value of collateral is $2,627,200,
including accrued interest). (cost $2,573,000) ........... 2,573,000 7.3
----------- -----
TOTAL INVESTMENTS (cost $33,732,540) * ...................... 36,665,384 104.0
Other Assets and Liabilities ................................. (1,410,524) (4.0)
----------- -----
NET ASSETS ................................................... $35,254,860 100.0
----------- -----
----------- -----
</TABLE>
- --------------
-/- Non-income producing security.
{\/} U.S. currency denominated.
* For Federal income tax purposes, cost is $33,817,496 and
appreciation (depreciation) is as follows:
<TABLE>
<S> <C>
Unrealized appreciation: $ 4,542,875
Unrealized depreciation: (1,694,987)
-------------
Net unrealized appreciation: $ 2,847,888
-------------
-------------
</TABLE>
Abbreviation:
ADR--American Depositary Receipt
The accompanying notes are an integral part of the financial statements.
F6
<PAGE>
AIM MID CAP GROWTH FUND
(FORMERLY GT GLOBAL AMERICA MID CAP GROWTH FUND)
PORTFOLIO OF INVESTMENTS
June 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Services (49.2%)
Outdoor Systems, Inc.-/- .................................. US 1,203,780 $ 33,705,837 7.0
BUSINESS & PUBLIC SERVICES
Clear Channel Communications, Inc.-/- ..................... US 268,443 29,293,842 6.1
BROADCASTING & PUBLISHING
Snyder Communications, Inc.-/- ............................ US 614,600 27,042,400 5.6
BUSINESS & PUBLIC SERVICES
Hilton Hotels Corp. ....................................... US 709,800 20,229,300 4.2
LEISURE & TOURISM
Chancellor Media Corp.-/- ................................. US 340,500 16,907,953 3.5
BROADCASTING & PUBLISHING
Premier Parks, Inc.-/- .................................... US 221,800 14,777,425 3.1
LEISURE & TOURISM
ServiceMaster Co. ......................................... US 320,200 12,187,613 2.5
CONSUMER SERVICES
Cablevision Systems Corp. "A"-/- .......................... US 125,000 10,437,500 2.2
CABLE TELEVISION
Keane, Inc.-/- ............................................ US 182,100 10,197,600 2.1
BUSINESS & PUBLIC SERVICES
Central Parking Corp. ..................................... US 221,800 10,091,900 2.1
CONSUMER SERVICES
Young & Rubicam, Inc.-/- .................................. US 308,200 9,862,400 2.0
BUSINESS & PUBLIC SERVICES
Cambridge Technology Partners, Inc.-/- .................... US 164,500 8,985,813 1.9
BUSINESS & PUBLIC SERVICES
Univision Communications, Inc.-/- ......................... US 239,600 8,925,100 1.9
BROADCASTING & PUBLISHING
Lamar Advertising Co.-/- .................................. US 217,100 7,788,463 1.6
BUSINESS & PUBLIC SERVICES
Personnel Group of America, Inc.-/- ....................... US 366,700 7,334,000 1.5
BUSINESS & PUBLIC SERVICES
Jacor Communications, Inc.-/- ............................. US 96,300 5,681,700 1.2
BROADCASTING & PUBLISHING
Paychex, Inc. ............................................. US 86,400 3,515,400 0.7
BUSINESS & PUBLIC SERVICES
------------
236,964,246
------------
Technology (14.6%)
Sterling Commerce, Inc.-/- ................................ US 327,700 15,893,450 3.3
SOFTWARE
Software AG Systems, Inc.-/- .............................. US 400,000 11,700,000 2.4
SOFTWARE
Aspen Technology, Inc.-/- ................................. US 190,500 9,620,250 2.0
SOFTWARE
Platinum Technology, Inc.-/- .............................. US 314,000 8,968,625 1.9
SOFTWARE
SunGard Data Systems, Inc.-/- ............................. US 229,000 8,787,875 1.8
SOFTWARE
Peoplesoft, Inc.-/- ....................................... US 177,500 8,342,500 1.7
SOFTWARE
</TABLE>
The accompanying notes are an integral part of the financial statements.
F7
<PAGE>
AIM MID CAP GROWTH FUND
(FORMERLY GT GLOBAL AMERICA MID CAP GROWTH FUND)
PORTFOLIO OF INVESTMENTS (cont'd)
June 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Technology (Continued)
Ciena Corp.-/- ............................................ US 104,000 $ 7,241,000 1.5
TELECOM TECHNOLOGY
------------
70,553,700
------------
Finance (13.0%)
Golden State Bancorp, Inc.-/- ............................. US 381,300 11,343,675 2.4
SAVINGS & LOANS
C.I.T. Group, Inc. "A"-/- ................................. US 266,800 10,005,000 2.1
OTHER FINANCIAL
Exel Ltd. ................................................. US 120,500 9,376,406 1.9
INSURANCE - PROPERTY-CASUALTY
GreenPoint Financial Corp. ................................ US 249,200 9,376,150 1.9
SAVINGS & LOANS
Capital One Financial Corp. ............................... US 68,200 8,469,588 1.8
CONSUMER FINANCE
Ace Ltd. .................................................. US 183,100 7,140,900 1.5
INSURANCE - PROPERTY-CASUALTY
Heller Financial, Inc.-/- ................................. US 226,600 6,798,000 1.4
OTHER FINANCIAL
------------
62,509,719
------------
Health Care (8.0%)
Forest Laboratories, Inc. "A"-/- .......................... US 268,000 9,581,000 2.0
PHARMACEUTICALS
Wellpoint Health Networks-/- .............................. US 118,000 8,732,000 1.8
HEALTH CARE SERVICES
ALZA Corp.-/- ............................................. US 176,300 7,624,975 1.6
PHARMACEUTICALS
HBO & Co. ................................................. US 206,200 7,268,550 1.5
HEALTH CARE SERVICES
McKesson Corp. ............................................ US 68,100 5,533,125 1.1
HEALTH CARE SERVICES
------------
38,739,650
------------
Consumer Non-Durables (6.7%)
U.S. Foodservice-/- ....................................... US 553,400 19,403,588 4.0
FOOD
Suiza Foods Corp.-/- ...................................... US 170,500 10,176,719 2.1
FOOD
International Home Foods, Inc.-/- ......................... US 135,400 3,080,350 0.6
FOOD
------------
32,660,657
------------
Materials/Basic Industry (5.4%)
International Specialty Products, Inc.-/- ................. US 668,200 12,445,225 2.6
CHEMICALS
Millenium Chemicals, Inc. ................................. US 215,600 7,303,450 1.5
CHEMICALS
</TABLE>
The accompanying notes are an integral part of the financial statements.
F8
<PAGE>
AIM MID CAP GROWTH FUND
(FORMERLY GT GLOBAL AMERICA MID CAP GROWTH FUND)
PORTFOLIO OF INVESTMENTS (cont'd)
June 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Materials/Basic Industry (Continued)
Crompton & Knowles Corp. .................................. US 250,700 $ 6,314,506 1.3
CHEMICALS
------------
26,063,181
------------
Energy (3.1%)
J. Ray McDermott S.A.-/- .................................. US 239,900 9,955,850 2.1
ENERGY EQUIPMENT & SERVICES
Anadarko Petroleum Corp. .................................. US 75,300 5,059,219 1.0
ENERGY SOURCES
------------
15,015,069
------------
Capital Goods (2.5%)
U.S. Filter Corp.-/- ...................................... US 422,250 11,849,391 2.5
ENVIRONMENTAL
------------ -----
TOTAL EQUITY INVESTMENTS (cost $397,646,938) ................ 494,355,613 102.5
------------ -----
<CAPTION>
NO. OF VALUE % OF NET
WARRANTS COUNTRY WARRANTS (NOTE 1) ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Golden State Bancorp. Litigation Warrants-/- (cost
$2,296,744) .............................................. US 381,300 2,025,656 0.4
SAVINGS & LOANS
------------ -----
TOTAL INVESTMENTS (cost $399,943,682) * .................... 496,381,269 102.9
Other Assets and Liabilities ................................ (14,212,467) (2.9)
------------ -----
NET ASSETS .................................................. $482,168,802 100.0
------------ -----
------------ -----
</TABLE>
- --------------
-/- Non-income producing security.
* For Federal income tax purposes, cost is $401,270,613 and
appreciation (depreciation) is as follows:
<TABLE>
<S> <C>
Unrealized appreciation: $ 99,557,388
Unrealized depreciation: (4,446,732)
-------------
Net unrealized appreciation: $ 95,110,656
-------------
-------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F9
<PAGE>
AIM AMERICA VALUE FUND - CONSOLIDATED
(FORMERLY GT GLOBAL AMERICA VALUE FUND)
PORTFOLIO OF INVESTMENTS
June 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Finance (33.1%)
Exel Ltd. ................................................. US 10,900 $ 848,156 2.9
INSURANCE - PROPERTY-CASUALTY
Chase Manhattan Corp. ..................................... US 10,150 766,325 2.6
BANKS-MONEY CENTER
Travelers Group, Inc. ..................................... US 12,150 736,594 2.5
INSURANCE - MULTI-LINE
Allstate Corp. ............................................ US 7,875 721,055 2.4
INSURANCE - MULTI-LINE
Fleet Financial Group, Inc. ............................... US 8,600 718,100 2.4
BANKS-SUPER REGIONAL
SLM Holding Corp. ......................................... US 14,612 715,988 2.4
OTHER FINANCIAL
First Chicago NBD Corp. ................................... US 8,000 709,000 2.4
BANKS-REGIONAL
Mellon Bank Corp. ......................................... US 9,700 675,363 2.3
BANKS-REGIONAL
Household International, Inc. ............................. US 13,500 671,625 2.3
CONSUMER FINANCE
BankAmerica Corp. ......................................... US 7,550 652,603 2.2
BANKS-MONEY CENTER
GreenPoint Financial Corp. ................................ US 16,000 602,000 2.0
SAVINGS & LOANS
NationsBank Corp. ......................................... US 7,700 589,050 2.0
BANKS-REGIONAL
Starwood Hotels & Resorts ................................. US 8,583 414,666 1.4
REAL ESTATE INVESTMENT TRUST
Citicorp .................................................. US 2,400 358,200 1.2
BANKS-MONEY CENTER
Crescent Real Estate Equities Co. ......................... US 10,000 336,250 1.1
REAL ESTATE INVESTMENT TRUST
Felcor Suite Hotels, Inc. ................................. US 9,025 283,159 1.0
REAL ESTATE INVESTMENT TRUST
------------
9,798,134
------------
Energy (17.1%)
Texas Utilities Co. ....................................... US 17,900 745,088 2.5
ELECTRICAL & GAS UTILITIES
Mobil Corp. ............................................... US 9,200 704,950 2.4
OIL
Unocal Corp. .............................................. US 19,300 689,975 2.3
OIL
Atlantic Richfield Co. (ARCO) ............................. US 8,100 632,813 2.1
OIL
Anadarko Petroleum Corp. .................................. US 9,200 618,125 2.1
ENERGY SOURCES
McDermott International, Inc. ............................. US 16,600 571,663 1.9
ENERGY EQUIPMENT & SERVICES
Pinnacle West Capital Corp. ............................... US 9,625 433,125 1.5
ELECTRICAL & GAS UTILITIES
</TABLE>
The accompanying notes are an integral part of the financial statements.
F10
<PAGE>
AIM AMERICA VALUE FUND - CONSOLIDATED
(FORMERLY GT GLOBAL AMERICA VALUE FUND)
PORTFOLIO OF INVESTMENTS (cont'd)
June 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Energy (Continued)
Carolina Power & Light Co. ................................ US 9,000 $ 390,375 1.3
ELECTRICAL & GAS UTILITIES
GPU, Inc. ................................................. US 7,825 295,883 1.0
ELECTRICAL & GAS UTILITIES
------------
5,081,997
------------
Services (12.9%)
Bell Atlantic Corp. ....................................... US 18,400 839,500 2.8
TELEPHONE - REGIONAL/LOCAL
Comcast Corp. 'A' ......................................... US 17,500 710,391 2.4
CABLE TELEVISION
Time Warner, Inc. ......................................... US 8,000 683,500 2.3
BROADCASTING & PUBLISHING
Federated Department Stores, Inc.-/- ...................... US 11,500 618,844 2.1
RETAILERS-APPAREL
The Limited, Inc. ......................................... US 14,825 491,078 1.7
RETAILERS-APPAREL
U.S. West, Inc. ........................................... US 10,000 470,000 1.6
TELEPHONE - REGIONAL/LOCAL
------------
3,813,313
------------
Materials/Basic Industry (12.4%)
E.I. du Pont de Nemours & Company ......................... US 9,200 686,550 2.3
CHEMICALS
Owens Corning ............................................. US 16,200 661,163 2.2
BUILDING MATERIALS & COMPONENTS
Millenium Chemicals, Inc. ................................. US 18,500 626,688 2.1
CHEMICALS
Stone Container Corp. ..................................... US 38,600 603,125 2.0
PAPER/PACKAGING
Imperial Chemical Industries PLC - ADR{\/} ................ US 7,700 496,650 1.7
CHEMICALS
Crompton & Knowles Corp. .................................. US 13,500 340,031 1.2
CHEMICALS
International Paper Co. ................................... US 6,000 258,000 0.9
PAPER/PACKAGING
------------
3,672,207
------------
Consumer Durables (7.1%)
Ford Motor Co. ............................................ US 12,500 737,500 2.5
AUTOMOBILES
Lennar Corp. .............................................. US 18,500 545,750 1.9
HOUSING
General Motors Corp. ...................................... US 6,600 440,963 1.5
AUTOMOBILES
Meritor Automotive, Inc. .................................. US 15,000 360,000 1.2
AUTO PARTS
------------
2,084,213
------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F11
<PAGE>
AIM AMERICA VALUE FUND - CONSOLIDATED
(FORMERLY GT GLOBAL AMERICA VALUE FUND)
PORTFOLIO OF INVESTMENTS (cont'd)
June 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Technology (5.2%)
International Business Machines Corp. ..................... US 7,500 $ 861,094 2.9
COMPUTERS & PERIPHERALS
Compaq Computer Corp. ..................................... US 24,200 686,675 2.3
COMPUTERS & PERIPHERALS
------------
1,547,769
------------
Consumer Non-Durables (4.0%)
Philip Morris Cos., Inc. .................................. US 17,050 671,344 2.3
TOBACCO
RJR Nabisco Holdings Corp. ................................ US 21,275 505,281 1.7
TOBACCO
------------
1,176,625
------------
Capital Goods (3.7%)
U.S. Filter Corp.-/- ...................................... US 20,625 578,789 2.0
ENVIRONMENTAL
U.S.A.Waste Services, Inc. ................................ US 14,300 500,500 1.7
ENVIRONMENTAL
------------
1,079,289
------------
Health Care (1.6%)
Pharmacia & Upjohn, Inc. .................................. US 10,500 484,309 1.6
PHARMACEUTICALS
------------ -----
TOTAL EQUITY INVESTMENTS (cost $26,403,641) ................. 28,737,856 97.1
------------ -----
<CAPTION>
VALUE % OF NET
REPURCHASE AGREEMENT (NOTE 1) ASSETS
- ------------------------------------------------------------- ------------ -------------
<S> <C> <C> <C> <C>
Dated June 30, 1998, with State Street Bank & Trust Co.,
due July 1, 1998, for an effective yield of 5.70%
collateralized by $460,000 U.S. Treasury Bills, 5.875% due
1/31/99 (market value of collateral is $472,075, including
accrued interest). (cost $459,000) ....................... 459,000 1.5
------------ -----
TOTAL INVESTMENTS (cost $26,862,641) * ..................... 29,196,856 98.6
Other Assets and Liabilities ................................ 400,530 1.4
------------ -----
NET ASSETS .................................................. $ 29,597,386 100.0
------------ -----
------------ -----
</TABLE>
- --------------
-/- Non-income producing security.
{\/} U.S. currency denominated.
* For Federal income tax purposes, cost is $26,900,718 and
appreciation (depreciation) is as follows:
<TABLE>
<S> <C>
Unrealized appreciation: $ 2,898,607
Unrealized depreciation: (602,469)
-------------
Net unrealized appreciation: $ 2,296,138
-------------
-------------
</TABLE>
Abbreviations:
ADR--American Depositary Receipt
The accompanying notes are an integral part of the financial statements.
F12
<PAGE>
STATEMENTS OF ASSETS
AND LIABILITIES
June 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
AIM
------------------------------------------------------
SMALL CAP EQUITY MID CAP AMERICA VALUE
FUND-CONSOLIDATED GROWTH FUND FUND-CONSOLIDATED
----------------- -------------- -----------------
<S> <C> <C> <C>
Assets:
Investments in securities, at value (cost $33,732,540; $399,943,682;
and $26,862,641, respectively) (Note 1)............................ $36,665,384 $ 496,381,269 $29,196,856
U.S. currency....................................................... 86 644 240
Dividends receivable................................................ 588 80,604 42,424
Interest receivable................................................. 407 -- 73
Receivable for Fund shares sold..................................... 522,566 442,351 70,096
Receivable for securities sold...................................... 447,737 1,391,606 857,174
Receivable from A I M Advisors, Inc. (Note 2)....................... 75,985 -- 68,265
Unamortized organizational costs (Note 1)........................... 40,679 -- 40,679
----------------- -------------- -----------------
Total assets...................................................... 37,753,432 498,296,474 30,275,807
----------------- -------------- -----------------
Liabilities:
Payable for custodian fees.......................................... 778 84,299 5,455
Payable for Directors' and Trustees' fees and expenses (Note 2)..... 6,703 4,385 6,602
Payable for fund accounting fees (Note 2)........................... 1,532 10,018 658
Payable for Fund shares repurchased (Note 2)........................ 938,102 6,431,497 83,620
Payable for investment management and administration fees (Note
2)................................................................. 80,799 273,092 75,127
Payable for loan outstanding (Note 1)............................... -- 6,652,000 --
Payable for printing and postage expenses........................... 37,978 13,626 37,498
Payable for professional fees....................................... 19,013 13,728 17,735
Payable for registration and filing fees............................ 22,587 13,414 17,486
Payable for securities purchased.................................... 1,355,332 2,006,275 399,574
Payable for service and distribution expenses (Note 2).............. 18,805 254,651 18,640
Payable for transfer agent fees (Note 2)............................ 13,369 339,800 11,132
Other accrued expenses.............................................. 3,474 30,887 4,794
----------------- -------------- -----------------
Total liabilities................................................. 2,498,472 16,127,672 678,321
Minority interest (Notes 1 & 2)..................................... 100 -- 100
----------------- -------------- -----------------
Net assets............................................................ $35,254,860 $ 482,168,802 $29,597,386
----------------- -------------- -----------------
----------------- -------------- -----------------
Class A:
Net asset value and redemption price per share ($12,620,070 DIVIDED BY
746,689; $238,023,863 DIVIDED BY 10,119,708; and $8,669,479 DIVIDED
BY 471,856 shares outstanding, respectively)......................... $ 16.90 $ 23.52 $ 18.37
----------------- -------------- -----------------
----------------- -------------- -----------------
Maximum offering price per share (100/94.5 of $16.90; 100/94.5 of
$23.52; and 100/94.5 of $18.37, respectively) *...................... $ 17.88 $ 24.89 $ 19.44
----------------- -------------- -----------------
----------------- -------------- -----------------
Class B:+
Net asset value and offering price per share $20,177,075 DIVIDED BY
1,216,622; $243,093,084 DIVIDED BY 10,727,676; and $20,174,796
DIVIDED BY 1,114,911 shares outstanding, respectively)............... $ 16.58 $ 22.66 $ 18.10
----------------- -------------- -----------------
----------------- -------------- -----------------
Advisor Class:
Net asset value and offering price per share, and redemption price per
share $2,457,715 DIVIDED BY 144,152; $1,051,855 DIVIDED BY 44,488;
and $753,111 DIVIDED BY 40,640 shares outstanding, respectively)..... $ 17.05 $ 23.64 $ 18.53
----------------- -------------- -----------------
----------------- -------------- -----------------
Net assets consist of:
Paid in capital (Note 4)............................................ $27,650,613 $ 345,007,969 $25,439,934
Accumulated net investment loss..................................... (310,132) (3,756,379) (21,933)
Accumulated net realized gain on investments........................ 4,981,535 44,479,625 1,845,170
Net unrealized appreciation of investments.......................... 2,932,844 96,437,587 2,334,215
----------------- -------------- -----------------
Total -- representing net assets applicable to capital shares
outstanding.......................................................... $35,254,860 $ 482,168,802 $29,597,386
----------------- -------------- -----------------
----------------- -------------- -----------------
<FN>
- ----------------
* On sales of $25,000 or more, the offering price is reduced.
+ Redemption price per share is equal to the net asset value per share less
any applicable contingent deferred sales charge.
</TABLE>
The accompanying notes are an integral part of the financial statements.
F13
<PAGE>
STATEMENTS OF OPERATIONS
Six months ended June 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
AIM
--------------------------------------------------
SMALL CAP EQUITY MID CAP AMERICA VALUE
FUND-CONSOLIDATED GROWTH FUND FUND-CONSOLIDATED
----------------- ----------- -----------------
<S> <C> <C> <C>
Investment income: (Note 1)
Dividend income............................................................... $ 23,964 $ 687,891 $ 266,753
Interest income............................................................... 16,300 113,913 22,266
Securities lending income..................................................... 8,274 154,690 484
----------------- ----------- -----------------
Total investment income..................................................... 48,538 956,494 289,503
----------------- ----------- -----------------
Expenses:
Investment management and administration fees (Note 2)........................ 122,481 1,788,752 104,395
Amortization of organization costs (Note 1)................................... 8,779 -- 8,779
Custodian Fees................................................................ 13,190 59,368 5,430
Directors' and Trustees' fees and expenses (Note 2)........................... 9,576 7,964 9,050
Fund accounting fees (Note 2)................................................. 4,564 66,756 3,698
Printing and postage expenses................................................. 27,925 100,124 25,340
Professional fees............................................................. 34,443 65,372 28,236
Registration and filing fees (Note 1)......................................... 26,130 61,087 27,150
Service and distribution expenses: (Note 2)
Class A..................................................................... 20,616 432,588 15,364
Class B..................................................................... 99,273 1,226,897 96,391
Transfer agent fees (Note 2).................................................. 62,450 728,344 55,400
Other expenses................................................................ 6,244 204,822 2,014
----------------- ----------- -----------------
Total expenses before reductions and reimbursements......................... 435,671 4,742,074 381,247
----------------- ----------- -----------------
Expenses reimbursed by A I M Advisors, Inc. (Note 2)...................... (75,985) -- (68,265)
Expense reductions (Note 5)............................................... (1,016) (29,201) (1,546)
----------------- ----------- -----------------
Total net expenses.......................................................... 358,670 4,712,873 311,436
----------------- ----------- -----------------
Net investment loss............................................................. (310,132) (3,756,379) (21,933)
----------------- ----------- -----------------
Net realized and unrealized gain on investments: (Note 1)
Net realized gain on investments.............................................. 3,724,962 28,358,903 1,443,280
Net change in unrealized appreciation of investments.......................... 2,036,645 30,955,839 333,471
----------------- ----------- -----------------
Net realized and unrealized gain on investments................................. 5,761,607 59,314,742 1,776,751
----------------- ----------- -----------------
Net increase in net assets resulting from operations............................ $5,451,475 $55,558,363 $1,754,818
----------------- ----------- -----------------
----------------- ----------- -----------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F14
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
AIM
-------------------------------------------------------------------------------------
SMALL CAP EQUITY MID CAP AMERICA VALUE
FUND-CONSOLIDATED GROWTH FUND FUND-CONSOLIDATED
--------------------------- ---------------------------- --------------------------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED ENDED ENDED
JUNE 30, YEAR ENDED JUNE 30, YEAR ENDED JUNE 30, YEAR ENDED
1998 DECEMBER 31, 1998 DECEMBER 31, 1998 DECEMBER 31,
(UNAUDITED) 1997 (UNAUDITED) 1997 (UNAUDITED) 1997
------------ ------------- ------------- ------------- ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
Increase (decrease) in
net assets
Operations:
Net investment income
(loss)................ $ (310,132 ) $ (449,560 ) $ (3,756,379 ) $ (6,767,300 ) $ (21,933 ) $ 22,242
Net realized gain on
investments and
foreign currency
transactions.......... 3,724,962 2,524,251 28,358,903 91,288,360 1,443,280 1,352,859
Net change in
unrealized
appreciation
(depreciation) of
investments........... 2,036,645 1,674,235 30,955,839 (23,043,968 ) 333,471 2,016,032
------------ ------------- ------------- ------------- ------------ ------------
Net increase in net
assets resulting
from operations..... 5,451,475 3,748,926 55,558,363 61,477,092 1,754,818 3,391,133
------------ ------------- ------------- ------------- ------------ ------------
Class A:
Distributions to
shareholders: (Note 1)
From net investment
income................ -- -- -- -- -- (12,256 )
From net realized gain
on investments........ -- (213,287 ) -- (27,861,047 ) -- (482,262 )
Class B:
Distributions to
shareholders: (Note 1)
From net investment
income................ -- -- -- -- -- --
From net realized gain
on investments........ -- (410,555 ) -- (29,550,073 ) -- (1,128,861 )
Advisor Class:
Distributions to
shareholders: (Note 1)
From net investment
income................ -- -- -- -- -- (1,610 )
From net realized gain
on investments........ -- (32,021 ) -- (120,835 ) -- (30,657 )
------------ ------------- ------------- ------------- ------------ ------------
Total
distributions....... -- (655,863 ) -- (57,531,955 ) -- (1,655,646 )
------------ ------------- ------------- ------------- ------------ ------------
Capital share
transactions: (Note 4)
Increase from capital
shares sold and
reinvested............ 23,061,481 60,411,522 380,523,601 783,255,935 11,647,193 33,884,259
Decrease from capital
shares repurchased.... (26,968,839 ) (49,371,158 ) (466,195,324 ) (954,921,988 ) (8,629,240 ) (19,018,130 )
------------ ------------- ------------- ------------- ------------ ------------
Net increase
(decrease) from
capital share
transactions........ (3,907,358 ) 11,040,364 (85,671,723 ) (171,666,053 ) 3,017,953 14,866,129
------------ ------------- ------------- ------------- ------------ ------------
Total increase (decrease)
in net assets........... 1,544,117 14,133,427 (30,113,360 ) (167,720,916 ) 4,772,771 16,601,616
Net assets:
Beginning of period.... 33,710,743 19,577,316 512,282,162 680,003,078 24,824,615 8,222,999
------------ ------------- ------------- ------------- ------------ ------------
End of period *....... $35,254,860 $ 33,710,743 $482,168,802 $512,282,162 $29,597,386 $24,824,615
------------ ------------- ------------- ------------- ------------ ------------
------------ ------------- ------------- ------------- ------------ ------------
* Includes
undistributed/accumulated
net investment
income (loss) of........ $ (310,132 ) $ -- $ (3,756,379 ) $ -- $ (21,933 ) $ --
------------ ------------- ------------- ------------- ------------ ------------
------------ ------------- ------------- ------------- ------------ ------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F15
<PAGE>
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Contained below is per share operating performance data for a share outstanding
throughout the period, total investment return, ratios and supplemental data.
This information has been derived from information provided in the financial
statements.
<TABLE>
<CAPTION>
AIM SMALL CAP EQUITY FUND
---------------------------------------------------------
CLASS A
---------------------------------------------------------
SIX MONTHS OCTOBER 18, 1995
ENDED YEAR ENDED (COMMENCEMENT
JUNE 30, DECEMBER 31, OF OPERATIONS)
1998 -------------------- TO DECEMBER 31,
(UNAUDITED) 1997 (D) 1996 (D) 1995 (D)
----------- -------- ------- ----------------
<S> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period.... $ 14.27 $ 12.52 $11.80 $11.43
----------- -------- ------- --------
Income from investment operations:
Net investment income (loss).......... (0.11) * * * * (0.18) * * * (0.05) ** 0.04*
Net realized and unrealized gain on
investments.......................... 2.74 2.20 1.69 0.33
----------- -------- ------- --------
Net increase from investment
operations......................... 2.63 2.02 1.64 0.37
----------- -------- ------- --------
Distributions to shareholders:
From net realized gain on
investments.......................... -- (0.27) (0.92) --
----------- -------- ------- --------
Total distributions................. -- (0.27) (0.92) --
----------- -------- ------- --------
Net asset value, end of period.......... $ 16.90 $ 14.27 $12.52 $11.80
----------- -------- ------- --------
----------- -------- ------- --------
Total investment return (c)............. 18.43% (b) 16.23% 13.81% 3.24% (b)
Ratios and supplemental data:
Net assets, end of period (in 000's).... $12,620 $10,896 $8,448 $1,931
Ratio of net investment income (loss) to
average net assets:
With expense reductions and/or
reimbursement (Notes 2 & 5).......... (1.47)% (a) (1.40)% (0.38)% 1.68% (a)
Without expense reductions and/or
reimbursement........................ (1.93)% (a) (2.00)% (1.47)% (20.52)% (a)
Ratio of operating expenses to average
net assets:
With expense reductions and/or
reimbursement (Notes 2 & 5).......... 1.74% (a) 1.92% 2.00% 2.00% (a)
Without expense reductions and/or
reimbursement........................ 2.20% (a) 2.52% 3.09% 24.20% (a)
Ratio of interest expense to average net
assets+................................ 0.02% (a) N/A N/A N/A
Portfolio turnover rate+................ 208% (a) 233% 150% N/A
</TABLE>
- ----------------
(a) Annualized
(b) Not Annualized
(c) Total investment return does not include sales charges.
(d) Calculated based upon average shares outstanding during the period.
* Before reimbursement the net investment loss per share would have been
$(0.47), $(0.49), and $(0.46) for Class A, Class B, and Advisor Class,
respectively, from October 18, 1995 to December 31, 1995.
** Before reimbursement the net investment loss per share would have been
$(0.19), $(0.28), and $(0.14) for Class A, Class B, and Advisor Class,
respectively, for the year ended December 31, 1996.
* * * Before reimbursement the net investment loss per share would have been
$(0.25), $(0.33), and $(0.21) for Class A, Class B, and Advisor Class,
respectively, for the year ended December 31, 1997.
* * * * Before reimbursement the net investment loss per share would have been
$(0.15), $(0.21), and $(0.12) for Class A, Class B, and Advisor Class,
respectively, for the six months ended June 30, 1998.
+ Portfolio turnover rates and ratio of interest expense to average net
assets are calculated on the basis of the Portfolio as a whole without
distinguishing between the classes of shares issued.
N/A Not applicable.
The accompanying notes are an integral part of the financial statements.
F16
<PAGE>
FINANCIAL HIGHLIGHTS (cont'd)
- --------------------------------------------------------------------------------
Contained below is per share operating performance data for a share outstanding
throughout the period, total investment return, ratios and supplemental data.
This information has been derived from information provided in the financial
statements.
<TABLE>
<CAPTION>
AIM SMALL CAP EQUITY FUND
-----------------------------------------------------------
CLASS B
-----------------------------------------------------------
SIX MONTHS OCTOBER 18, 1995
ENDED YEAR ENDED (COMMENCEMENT
JUNE 30, DECEMBER 31, OF OPERATIONS)
1998 --------------------- TO DECEMBER 31,
(UNAUDITED) 1997 (D) 1996 (D) 1995 (D)
----------- -------- -------- -----------------
<S> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period.... $ 14.06 $ 12.42 $ 11.78 $ 11.43
----------- -------- -------- -----------------
Income from investment operations:
Net investment income (loss).......... (0.17) * * * * (0.26) * * * (0.14) ** 0.02*
Net realized and unrealized gain on
investments.......................... 2.69 2.17 1.70 0.33
----------- -------- -------- -----------------
Net increase from investment
operations......................... 2.52 1.91 1.56 0.35
----------- -------- -------- -----------------
Distributions to shareholders:
From net realized gain on
investments.......................... -- (0.27) (0.92) --
----------- -------- -------- -----------------
Total distributions................. -- (0.27) (0.92) --
----------- -------- -------- -----------------
Net asset value, end of period.......... $ 16.58 $ 14.06 $ 12.42 $ 11.78
----------- -------- -------- -----------------
----------- -------- -------- -----------------
Total investment return (c)............. 17.99% (b) 15.47% 13.14% 3.06% (b)
Ratios and supplemental data:
Net assets, end of period (in 000's).... $20,177 $21,222 $10,694 $ 2,024
Ratio of net investment income (loss) to
average net assets:
With expense reductions and/or
reimbursement (Notes 2 & 5).......... (2.12)% (a) (2.05)% (1.03)% 1.03% (a)
Without expense reductions and/or
reimbursement........................ (2.58)% (a) (2.65)% (2.12)% (21.17)% (a)
Ratio of operating expenses to average
net assets:
With expense reductions and/or
reimbursement (Notes 2 & 5).......... 2.39% (a) 2.57% 2.65% 2.65% (a)
Without expense reductions and/or
reimbursement........................ 2.85% (a) 3.17% 3.74% 24.85% (a)
Ratio of interest expense to average net
assets+................................ 0.02% (a) N/A N/A N/A
Portfolio turnover rate+................ 208% (a) 233% 150% N/A
</TABLE>
- ----------------
(a) Annualized
(b) Not Annualized
(c) Total investment return does not include sales charges.
(d) Calculated based upon average shares outstanding during the period.
* Before reimbursement the net investment loss per share would have been
$(0.47), $(0.49), and $(0.46) for Class A, Class B, and Advisor Class,
respectively, from October 18, 1995 to December 31, 1995.
** Before reimbursement the net investment loss per share would have been
$(0.19), $(0.28), and $(0.14) for Class A, Class B, and Advisor Class,
respectively, for the year ended December 31, 1996.
* * * Before reimbursement the net investment loss per share would have been
$(0.25), $(0.33), and $(0.21) for Class A, Class B, and Advisor Class,
respectively, for the year ended December 31, 1997.
* * * * Before reimbursement the net investment loss per share would have been
$(0.15), $(0.21), and $(0.12) for Class A, Class B, and Advisor Class,
respectively, for the six months ended June 30, 1998.
+ Portfolio turnover rates and ratio of interest expense to average net
assets are calculated on the basis of the Portfolio as a whole without
distinguishing between the classes of shares issued.
N/A Not applicable.
The accompanying notes are an integral part of the financial statements.
F17
<PAGE>
FINANCIAL HIGHLIGHTS (cont'd)
- --------------------------------------------------------------------------------
Contained below is per share operating performance data for a share outstanding
throughout the period, total investment return, ratios and supplemental data.
This information has been derived from information provided in the financial
statements.
<TABLE>
<CAPTION>
AIM SMALL CAP EQUITY FUND
---------------------------------------------------------
ADVISOR CLASS
---------------------------------------------------------
SIX MONTHS OCTOBER 18, 1995
ENDED YEAR ENDED (COMMENCEMENT
JUNE 30, DECEMBER 31, OF OPERATIONS)
1998 -------------------- TO DECEMBER 31,
(UNAUDITED) 1997 (D) 1996 (D) 1995 (D)
---------- ------- -------- -----------------
<S> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period.... $14.39 $12.58 $ 11.81 $ 11.43
---------- ------- -------- --------
Income from investment operations:
Net investment income (loss).......... (0.08) * * * * (0.14) * * * --* * 0.05*
Net realized and unrealized gain on
investments.......................... 2.74 2.22 1.69 0.33
---------- ------- -------- --------
Net increase from investment
operations......................... 2.66 2.08 1.69 0.38
---------- ------- -------- --------
Distributions to shareholders:
From net realized gain on
investments.......................... -- (0.27) (0.92) --
---------- ------- -------- --------
Total distributions................. -- (0.27) (0.92) --
---------- ------- -------- --------
Net asset value, end of period.......... $17.05 $14.39 $ 12.58 $ 11.81
---------- ------- -------- --------
---------- ------- -------- --------
Total investment return (c)............. 18.49% (b) 16.63% 14.22% 3.32% (b)
Ratios and supplemental data:
Net assets, end of period (in 000's).... $2,458 $1,592 $ 435 $ 52
Ratio of net investment income (loss) to
average net assets:
With expense reductions and/or
reimbursement (Notes 2 & 5).......... (1.12)% (a) (1.05)% (0.03)% 2.03% (a)
Without expense reductions and/or
reimbursement........................ (1.58)% (a) (1.65)% (1.12)% (20.17)% (a)
Ratio of operating expenses to average
net assets:
With expense reductions and/or
reimbursement (Notes 2 & 5).......... 1.39% (a) 1.57% 1.65% 1.65% (a)
Without expense reductions and/or
reimbursement........................ 1.85% (a) 2.17% 2.74% 23.85% (a)
Ratio of interest expense to average net
assets+................................ 0.02% (a) N/A N/A N/A
Portfolio turnover rate+................ 208% (a) 233% 150% N/A
</TABLE>
- ----------------
(a) Annualized
(b) Not Annualized
(c) Total investment return does not include sales charges.
(d) Calculated based upon average shares outstanding during the period.
* Before reimbursement the net investment loss per share would have been
$(0.47), $(0.49), and $(0.46) for Class A, Class B, and Advisor Class,
respectively, from October 18, 1995 to December 31, 1995.
** Before reimbursement the net investment loss per share would have been
$(0.19), $(0.28), and $(0.14) for Class A, Class B, and Advisor Class,
respectively, for the year ended December 31, 1996.
* * * Before reimbursement the net investment loss per share would have been
$(0.25), $(0.33), and $(0.21) for Class A, Class B, and Advisor Class,
respectively, for the year ended December 31, 1997.
* * * * Before reimbursement the net investment loss per share would have been
$(0.15), $(0.21), and $(0.12) for Class A, Class B, and Advisor Class,
respectively, for the six months ended June 30, 1998.
+ Portfolio turnover rates and ratio of interest expense to average net
assets are calculated on the basis of the Portfolio as a whole without
distinguishing between the classes of shares issued.
N/A Not applicable.
The accompanying notes are an integral part of the financial statements.
F18
<PAGE>
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Contained below is per share operating performance data for a share outstanding
throughout each period, total investment return, ratios and supplemental data.
This information has been derived from information provided in the financial
statements.
<TABLE>
<CAPTION>
AIM MID CAP GROWTH FUND
--------------------------------------------------------------------------------------
CLASS A+
--------------------------------------------------------------------------------------
SIX MONTHS
ENDED
JUNE 30, YEAR ENDED DECEMBER 31,
1998 ---------------------------------------------------------------------
(UNAUDITED) (D) 1997 1996 1995 1994 (D) 1993
----------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period.... $ 21.01 $ 20.77 $ 19.07 $ 17.69 $ 17.17 $ 17.12
----------- --------- --------- --------- --------- ---------
Income from investment operations:
Net investment income (loss).......... (0.14) (0.20) 0.03 0.24 0.04 (0.21)
Net realized and unrealized gain on
investments.......................... 2.65 3.00 2.96 3.93 2.55 1.56
----------- --------- --------- --------- --------- ---------
Net increase from investment
operations......................... 2.51 2.80 2.99 4.17 2.59 1.35
----------- --------- --------- --------- --------- ---------
Distributions to shareholders:
From net investment income............ -- -- -- (0.21) (0.02) --
From net realized gain on
investments.......................... -- (2.56) (1.29) (2.58) (2.05) (1.30)
----------- --------- --------- --------- --------- ---------
Total distributions................. -- (2.56) (1.29) (2.79) (2.07) (1.30)
----------- --------- --------- --------- --------- ---------
Net asset value, end of period.......... $ 23.52 $ 21.01 $ 20.77 $ 19.07 $ 17.69 $ 17.17
----------- --------- --------- --------- --------- ---------
----------- --------- --------- --------- --------- ---------
Total investment return (c)............. 11.95%(b) 14.05% 15.65% 23.23% 15.69% 8.3%
Ratios and supplemental data:
Net assets, end of period (in 000's).... $238,024 $255,674 $343,427 $396,291 $196,937 $116,468
Ratio of net investment income (loss) to
average net assets:
With expense reductions (Note 5)...... (1.20)%(a) (0.90)% 0.12% 1.24% 0.17% (0.7)%
Without expense reductions............ (1.21)%(a) (1.01)% 0.07% N/A N/A N/A
Ratio of operating expenses to average
net assets:
With expense reductions (Note 5)...... 1.59%(a) 1.37% 1.36% 1.46% 1.58% 1.6%
Without expense reductions............ 1.60%(a) 1.48% 1.41% N/A N/A N/A
Portfolio turnover rate++++............. 171%(a) 190% 253% 71% 102% 92%
</TABLE>
- ----------------
(a) Annualized
(b) Not annualized
(c) Total investment return does not include sales charges.
(d) Calculated based upon average shares outstanding during the period.
+ All capital shares issued and outstanding as of March 31, 1993, were
reclassified as Class A shares.
++ Commencing April 1, 1993, the Fund began offering Class B shares.
+++ Commencing June 1, 1995, the Fund began offering Advisor Class shares.
++++ Portfolio turnover rates are calculated on the basis of the Fund as a
whole without distinguishing between the classes of shares issued.
N/A Not Applicable.
The accompanying notes are an integral part of the financial statements.
F19
<PAGE>
FINANCIAL HIGHLIGHTS (cont'd)
- --------------------------------------------------------------------------------
Contained below is per share operating performance data for a share outstanding
throughout each period, total investment return, ratios and supplemental data.
This information has been derived from information provided in the financial
statements.
<TABLE>
<CAPTION>
AIM MID CAP GROWTH FUND
------------------------------------------------------------------------------
CLASS B++
------------------------------------------------------------------------------
SIX MONTHS APRIL 1,
ENDED 1993
JUNE 30, YEAR ENDED DECEMBER 31, TO
1998 ----------------------------------------------- DECEMBER 31,
(UNAUDITED) (D) 1997 1996 1995 1994 (D) 1993
----------- --------- --------- --------- -------- ------------
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period.... $ 20.31 $ 20.28 $ 18.77 $ 17.50 $ 17.09 $15.90
----------- --------- --------- --------- -------- ------------
Income from investment operations:
Net investment income (loss).......... (0.21) (0.34) (0.11) 0.10 (0.09) (0.29)
Net realized and unrealized gain on
investments.......................... 2.56 2.93 2.91 3.87 2.55 2.78
----------- --------- --------- --------- -------- ------------
Net increase from investment
operations......................... 2.35 2.59 2.80 3.97 2.46 2.49
----------- --------- --------- --------- -------- ------------
Distributions to shareholders:
From net investment income............ -- -- -- (0.12) -- --
From net realized gain on
investments.......................... -- (2.56) (1.29) (2.58) (2.05) (1.30)
----------- --------- --------- --------- -------- ------------
Total distributions................. -- (2.56) (1.29) (2.70) (2.05) (1.30)
----------- --------- --------- --------- -------- ------------
Net asset value, end of period.......... $ 22.66 $ 20.31 $ 20.28 $ 18.77 $ 17.50 $17.09
----------- --------- --------- --------- -------- ------------
----------- --------- --------- --------- -------- ------------
Total investment return (c)............. 11.57%(b) 13.35% 14.82% 22.42% 15.06% 16.1% (b)
Ratios and supplemental data:
Net assets, end of period (in 000's).... $243,093 $255,468 $334,590 $348,435 $80,060 $1,982
Ratio of net investment income (loss) to
average net assets:
With expense reductions (Note 5)...... (1.85)%(a) (1.55)% (0.53)% 0.59% (0.48)% (1.3)% (a)
Without expense reductions............ (1.86)%(a) (1.66)% (0.58)% N/A N/A N/A
Ratio of operating expenses to average
net assets:
With expense reductions (Note 5)...... 2.24%(a) 2.02% 2.01% 2.11% 2.23% 2.2% (a)
Without expense reductions............ 2.25%(a) 2.13% 2.06% N/A N/A N/A
Portfolio turnover rate++++............. 171%(a) 190% 253% 71% 102% 92%
</TABLE>
- ----------------
(a) Annualized
(b) Not annualized
(c) Total investment return does not include sales charges.
(d) Calculated based upon average shares outstanding during the period.
+ All capital shares issued and outstanding as of March 31, 1993, were
reclassified as Class A shares.
++ Commencing April 1, 1993, the Fund began offering Class B shares.
+++ Commencing June 1, 1995, the Fund began offering Advisor Class shares.
++++ Portfolio turnover rates are calculated on the basis of the Fund as a
whole without distinguishing between the classes of shares issued.
N/A Not Applicable.
The accompanying notes are an integral part of the financial statements.
F20
<PAGE>
FINANCIAL HIGHLIGHTS (cont'd)
- --------------------------------------------------------------------------------
Contained below is per share operating performance data for a share outstanding
throughout each period, total investment return, ratios and supplemental data.
This information has been derived from information provided in the financial
statements.
<TABLE>
<CAPTION>
AIM MID CAP GROWTH FUND
--------------------------------------------------
ADVISOR CLASS+++
--------------------------------------------------
JUNE 1,
SIX MONTHS 1995
ENDED YEAR ENDED DECEMBER TO
JUNE 30, 31, DECEMBER
1998 -------------------- 31,
(UNAUDITED) (D) 1997 1996 1995
----------- ------- ------- -------
<S> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period.... $ 21.10 $20.76 $19.05 $20.61
----------- ------- ------- -------
Income from investment operations:
Net investment income (loss).......... (0.10) (0.15) 0.09 0.21
Net realized and unrealized gain on
investments.......................... 2.64 3.05 2.91 1.09
----------- ------- ------- -------
Net increase from investment
operations......................... 2.54 2.90 3.00 1.30
----------- ------- ------- -------
Distributions to shareholders:
From net investment income............ -- -- -- (0.28)
From net realized gain on
investments.......................... -- (2.56) (1.29) (2.58)
----------- ------- ------- -------
Total distributions................. -- (2.56) (1.29) (2.86)
----------- ------- ------- -------
Net asset value, end of period.......... $ 23.64 $21.10 $20.76 $19.05
----------- ------- ------- -------
----------- ------- ------- -------
Total investment return (c)............. 12.04% (b) 14.54% 15.72% 6.01%(b)
Ratios and supplemental data:
Net assets, end of period (in 000's).... $ 1,052 $1,140 $1,986 $1,394
Ratio of net investment income (loss) to
average net assets:
With expense reductions (Note 5)...... (0.85)% (a) 0.55% 0.47% 1.59%(a)
Without expense reductions............ (0.86)% (a) (0.66)% 0.42% N/A
Ratio of operating expenses to average
net assets:
With expense reductions (Note 5)...... 1.24% (a) 1.02% 1.01% 1.11%(a)
Without expense reductions............ 1.25% (a) 1.13% 1.06% N/A
Portfolio turnover rate++++............. 171% (a) 190% 253% 71%
</TABLE>
- ----------------
(a) Annualized
(b) Not annualized
(c) Total investment return does not include sales charges.
(d) Calculated based upon average shares outstanding during the period.
+ All capital shares issued and outstanding as of March 31, 1993, were
reclassified as Class A shares.
++ Commencing April 1, 1993, the Fund began offering Class B shares.
+++ Commencing June 1, 1995, the Fund began offering Advisor Class shares.
++++ Portfolio turnover rates are calculated on the basis of the Fund as a
whole without distinguishing between the classes of shares issued.
N/A Not Applicable.
The accompanying notes are an integral part of the financial statements.
F21
<PAGE>
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Contained below is per share operating performance data for a share outstanding
throughout the period, total investment return, ratios and supplemental data.
This information has been derived from information provided in the financial
statements.
<TABLE>
<CAPTION>
AIM AMERICA VALUE FUND
-----------------------------------------------------------
CLASS A
-----------------------------------------------------------
SIX MONTHS OCTOBER 18, 1995
ENDED YEAR ENDED DECEMBER (COMMENCEMENT
JUNE 30, 31, OF OPERATIONS)
1998 -------------------- TO DECEMBER 31,
(UNAUDITED) 1997 (D) 1996 (D) 1995 (D)
----------- ------- ------- ----------------
<S> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period.... $17.25 $14.65 $12.76 $ 11.43
----------- ------- ------- ----------------
Income from investment operations:
Net investment income (loss).......... 0.03* * * * 0.09* * * (0.01) * * 0.03*
Net realized and unrealized gain on
investments.......................... 1.09 3.87 1.94 1.30
----------- ------- ------- ----------------
Net increase from investment
operations......................... 1.12 3.96 1.93 1.33
----------- ------- ------- ----------------
Distributions to shareholders:
From net investment income............ -- (0.03) -- --
From net realized gain on
investments.......................... -- (1.33) (0.04) --
----------- ------- ------- ----------------
Total distributions................. -- (1.36) (0.04) --
----------- ------- ------- ----------------
Net asset value, end of period.......... $18.37 $17.25 $14.65 $ 12.76
----------- ------- ------- ----------------
----------- ------- ------- ----------------
Total investment return (c)............. 6.49% (b) 27.23% 15.12% 11.64% (b)
Ratios and supplemental data:
Net assets, end of period (in 000's).... $8,669 $7,668 $2,529 $ 870
Ratio of net investment income (loss) to
average net assets:
With expense reductions and/or
reimbursement (Notes 2 & 5).......... 0.28% (a) 0.56% (0.10)% 1.10% (a)
Without expense reductions and/or
reimbursement........................ (0.21)% (a) (0.42)% (3.61)% (47.44)% (a)
Ratio of operating expenses to average
net assets:
With expense reductions and/or
reimbursement (Notes 2 & 5).......... 1.73% (a) 1.99% 2.00% 2.00% (a)
Without expense reductions and/or
reimbursement........................ 2.22% (a) 2.97% 5.51% 50.54% (a)
Ratio of interest expense to average net
assets+................................ N/A 0.03% N/A N/A
Portfolio turnover rate+................ 132% (a) 93% 256% N/A
</TABLE>
- ----------------
(a) Annualized
(b) Not Annualized
(c) Total investment return does not include sales charges.
(d) Calculated based upon average shares outstanding during the period.
* Before reimbursement the net investment loss per share would have been
$(1.11), $(1.13), and $(1.10) for Class A, Class B, and Advisor Class,
respectively, from October 18, 1995 to December 31, 1995.
* * Before reimbursement the net investment loss per share would have been
$(.50), $(.59), and $(.46) for Class A, Class B, and Advisor Class,
respectively, for the period ended December 31, 1996.
* * * Before reimbursement the net investment loss per share would have been
$(.07), $(.17), and $(.01) for Class A, Class B, and Advisor Class,
respectively, for the period ended December 31, 1997.
* * * * Before reimbursement the net investment income (loss) per share would
have been $(.01), $(.07) and $.01 for Class A, Class B, and Advisor
Class, respectively, for the six months ended June 30, 1998.
+ Portfolio turnover rates and ratio of interest expense to average net
assets are calculated on the basis of the Portfolio as a whole without
distinguishing between the classes of shares issued.
N/A Not Applicable.
The accompanying notes are an integral part of the financial statements.
F22
<PAGE>
FINANCIAL HIGHLIGHTS (cont'd)
- --------------------------------------------------------------------------------
Contained below is per share operating performance data for a share outstanding
throughout the period, total investment return, ratios and supplemental data.
This information has been derived from information provided in the financial
statements.
<TABLE>
<CAPTION>
AIM AMERICA VALUE FUND
------------------------------------------------------------
CLASS B
------------------------------------------------------------
SIX MONTHS OCTOBER 18, 1995
ENDED YEAR ENDED DECEMBER (COMMENCEMENT
JUNE 30, 31, OF OPERATIONS)
1998 --------------------- TO DECEMBER 31,
(UNAUDITED) 1997 (D) 1996 (D) 1995 (D)
----------- -------- ------- ----------------
<S> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period.... $ 17.04 $ 14.54 $12.75 $ 11.43
----------- -------- ------- ----------------
Income from investment operations:
Net investment income (loss).......... (0.03) * * * * (0.01) * * * (0.10) * * 0.01*
Net realized and unrealized gain on
investments.......................... 1.09 3.83 1.93 1.31
----------- -------- ------- ----------------
Net increase from investment
operations......................... 1.06 3.82 1.83 1.32
----------- -------- ------- ----------------
Distributions to shareholders:
From net investment income............ -- -- -- --
From net realized gain on
investments.......................... -- (1.32) (0.04) --
----------- -------- ------- ----------------
Total distributions................. -- (1.32) (0.04) --
----------- -------- ------- ----------------
Net asset value, end of period.......... $ 18.10 $ 17.04 $14.54 $ 12.75
----------- -------- ------- ----------------
----------- -------- ------- ----------------
Total investment return (c)............. 6.16% (b) 26.44% 14.35% 11.55% (b)
Ratios and supplemental data:
Net assets, end of period (in 000's).... $20,175 $16,717 $5,503 $ 1,254
Ratio of net investment income (loss) to
average net assets:
With expense reductions and/or
reimbursement (Notes 2 & 5).......... (0.37)% (a) (0.09)% (0.75)% 0.45% (a)
Without expense reductions and/or
reimbursement........................ (0.86)% (a) (1.07)% (4.26)% (48.09)% (a)
Ratio of operating expenses to average
net assets:
With expense reductions and/or
reimbursement (Notes 2 & 5).......... 2.38% (a) 2.64% 2.65%(a) 2.65% (a)
Without expense reductions and/or
reimbursement........................ 2.87% (a) 3.62% 6.16% 51.19% (a)
Ratio of interest expense to average net
assets+................................ N/A 0.03% N/A N/A
Portfolio turnover rate+................ 132% (a) 93% 256% N/A
</TABLE>
- ----------------
(a) Annualized
(b) Not Annualized
(c) Total investment return does not include sales charges.
(d) Calculated based upon average shares outstanding during the period.
* Before reimbursement the net investment loss per share would have been
$(1.11), $(1.13), and $(1.10) for Class A, Class B, and Advisor Class,
respectively, from October 18, 1995 to December 31, 1995.
* * Before reimbursement the net investment loss per share would have been
$(.50), $(.59), and $(.46) for Class A, Class B, and Advisor Class,
respectively, for the period ended December 31, 1996.
* * * Before reimbursement the net investment loss per share would have been
$(.07), $(.17), and $(.01) for Class A, Class B, and Advisor Class,
respectively, for the period ended December 31, 1997.
* * * * Before reimbursement the net investment income (loss) per share would
have been $(.01), $(.07) and $.01 for Class A, Class B, and Advisor
Class, respectively, for the six months ended June 30, 1998.
+ Portfolio turnover rates and ratio of interest expense to average net
assets are calculated on the basis of the Portfolio as a whole without
distinguishing between the classes of shares issued.
N/A Not Applicable.
The accompanying notes are an integral part of the financial statements.
F23
<PAGE>
FINANCIAL HIGHLIGHTS (cont'd)
- --------------------------------------------------------------------------------
Contained below is per share operating performance data for a share outstanding
throughout the period, total investment return, ratios and supplemental data.
This information has been derived from information provided in the financial
statements.
<TABLE>
<CAPTION>
AIM AMERICA VALUE FUND
-----------------------------------------------------------
ADVISOR CLASS
-----------------------------------------------------------
SIX MONTHS OCTOBER 18, 1995
ENDED YEAR ENDED DECEMBER (COMMENCEMENT
JUNE 30, 31, OF OPERATIONS)
1998 -------------------- TO DECEMBER 31,
(UNAUDITED) 1997 (D) 1996 (D) 1995 (D)
----------- ------- ------- ----------------
<S> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period.... $17.37 $14.72 $12.77 $ 11.43
----------- ------- ------- ----------------
Income from investment operations:
Net investment income (loss).......... 0.05* * * * 0.15* * * 0.03* * 0.04*
Net realized and unrealized gain on
investments.......................... 1.11 3.91 1.96 1.30
----------- ------- ------- ----------------
Net increase from investment
operations......................... 1.16 4.06 1.99 1.34
----------- ------- ------- ----------------
Distributions to shareholders:
From net investment income............ -- (0.07) -- --
From net realized gain on
investments.......................... -- (1.34) (0.04) --
----------- ------- ------- ----------------
Total distributions................. -- (1.41) (0.04) --
----------- ------- ------- ----------------
Net asset value, end of period.......... $18.53 $17.37 $14.72 $ 12.77
----------- ------- ------- ----------------
----------- ------- ------- ----------------
Total investment return (c)............. 6.68% (b) 27.78% 15.58% 11.72% (a)
Ratios and supplemental data:
Net assets, end of period (in 000's).... $ 753 $ 439 $ 191 $ 81
Ratio of net investment income (loss) to
average net assets:
With expense reductions and/or
reimbursement (Notes 2 & 5).......... 0.63% (a) 0.91% 0.25% 1.45% (a)
Without expense reductions and/or
reimbursement........................ 0.14% (a) (0.07)% (3.26)% (47.09)% (a)
Ratio of operating expenses to average
net assets:
With expense reductions and/or
reimbursement (Notes 2 & 5).......... 1.38% (a) 1.64% 1.65% 1.65% (a)
Without expense reductions and/or
reimbursement........................ 1.87% (a) 2.62% 5.16% 50.19% (a)
Ratio of interest expense to average net
assets+................................ N/A 0.03% N/A N/A
Portfolio turnover rate+................ 132% (a) 93% 256% N/A
</TABLE>
- ----------------
(a) Annualized
(b) Not Annualized
(c) Total investment return does not include sales charges.
(d) Calculated based upon average shares outstanding during the period.
* Before reimbursement the net investment loss per share would have been
$(1.11), $(1.13), and $(1.10) for Class A, Class B, and Advisor Class,
respectively, from October 18, 1995 to December 31, 1995.
* * Before reimbursement the net investment loss per share would have been
$(.50), $(.59), and $(.46) for Class A, Class B, and Advisor Class,
respectively, for the period ended December 31, 1996.
* * * Before reimbursement the net investment loss per share would have been
$(.07), $(.17), and $(.01) for Class A, Class B, and Advisor Class,
respectively, for the period ended December 31, 1997.
* * * * Before reimbursement the net investment income (loss) per share would
have been $(.01), $(.07) and $.01 for Class A, Class B, and Advisor
Class, respectively, for the six months ended June 30, 1998.
+ Portfolio turnover rates and ratio of interest expense to average net
assets are calculated on the basis of the Portfolio as a whole without
distinguishing between the classes of shares issued.
N/A Not Applicable.
The accompanying notes are an integral part of the financial statements.
F24
<PAGE>
NOTES TO
FINANCIAL STATEMENTS
June 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES (SEE ALSO NOTE 2)
AIM Small Cap Equity Fund, AIM Mid Cap Growth Fund, and AIM America Value Fund
(the "Funds" formerly, GT Global America Small Cap Growth Fund, GT Global
America Mid Cap Growth Fund, and GT Global America Value Fund, respectively),
are separate series of AIM Growth Series (the "Trust", formerly G.T. Global
Growth Series). The Trust is a Delaware business trust and is registered under
the Investment Company Act of 1940, as amended ("1940 Act"), as an open-end
management investment company. The Trust has eight diversified series of shares
in operation, each series corresponding to a distinct portfolio of investments.
The AIM Small Cap Equity Fund and AIM America Value Fund invest substantially
all of their investable assets in Small Cap Portfolio and Value Portfolio
("Portfolios"), respectively. Each Portfolio is organized as a Delaware business
trust and is registered under the 1940 Act as a diversified, open-end management
investment company.
The Portfolios have investment objectives, policies, and limitations
substantially identical to those of their corresponding Funds. Therefore, the
financial statements of the AIM Small Cap Equity Fund, the AIM America Value
Fund, and their respective Portfolios have been presented on a consolidated
basis, and represent all activities of both the respective Funds and Portfolios.
At June 30, 1998, all of the shares of beneficial interest of each Portfolio
were owned either by its respective fund or INVESCO (NY), Inc. (the
"Sub-adviser"), which has a nominal ($100) investment in each Portfolio.
The Funds offer Class A, Class B, and Advisor Class shares, each of which has
equal rights as to assets and voting privileges. Class A and Class B each has
exclusive voting rights with respect to its distribution plan. Investment
income, realized and unrealized capital gains and losses, and the common
expenses of the Funds are allocated on a pro rata basis to each class based on
the relative net assets of each class to the total net assets of the Funds. Each
class of shares differs in its respective distribution expenses, and may differ
in its transfer agent, registration, and certain other class-specific fees and
expenses.
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 and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of income and expenses during the reporting period. Actual
results could differ from those estimates. The following is a summary of
significant accounting policies in conformity with generally accepted accounting
principles consistently followed by the Funds in the preparation of the
financial statements.
(A) PORTFOLIO VALUATION
The Funds calculate the net asset value of and complete orders to purchase,
exchange or repurchase Fund shares on each business day, with the exception of
those days on which the New York Stock Exchange is closed.
Equity securities are valued at the last sale price on the exchange on which
such securities are traded or on the principal over-the-counter market on which
such securities are traded, as of the close of business on the day the
securities are being valued or, lacking any sales, at the last available bid
price. In cases where securities are traded on more than one exchange, the
securities are valued on the exchange determined by the Sub-adviser to be the
primary market.
Fixed income investments are valued at the mean of representative quoted bid and
ask prices for such investments or, if such prices are not available, at prices
for investments of comparative maturity, quality and type; however, when the
Sub-adviser deems it appropriate, prices obtained for the day of valuation from
a bond pricing service will be used. Short-term investments with a maturity of
60 days or less are valued at amortized cost, adjusted for market fluctuation,
if any.
Investments for which market quotations are not readily available (including
restricted securities which are subject to limitations on their sale) are valued
at fair value as determined in good faith by or under the direction of the
Trust's Board of Trustees.
(B) REPURCHASE AGREEMENTS
With respect to repurchase agreements entered into by a Fund or Portfolio (the
phrase "Fund or Portfolio" herein after includes the AIM Mid Cap Growth Fund and
each of the two Portfolios), it is the Fund's or Portfolio's policy to always
receive, as collateral, United States government securities or other high
quality debt securities of which the value, including accrued interest, is at
least equal to the amount to be repaid to the Fund or Portfolio under each
agreement at its maturity.
(C) OPTION ACCOUNTING PRINCIPLES
When a Fund or Portfolio writes a call or put option, an amount equal to the
premium received is included in the Fund's or Portfolio's "Statement of Assets
and Liabilities" as an asset and an equivalent liability. The amount of the
liability is subsequently marked-to-market to reflect the current market value
of the option. The current market value of an option listed on a traded exchange
is valued at its last bid price, or, in the case of an over-the-counter option,
is valued at the average of the last bid prices obtained from brokers, unless a
quotation from only one broker is available, in which case only that broker's
price will be used. If an option expires on its stipulated expiration date or if
the Fund or Portfolio enters into a closing purchase transaction, a gain or loss
is realized without regard to any unrealized gain or loss on the underlying
security, and the liability related to such option is extinguished. If a written
call option is exercised, a gain or loss is realized from the sale of the
underlying security and the proceeds of the sale are increased by the premium
originally received. If a written put option is exercised, the cost of the
F25
<PAGE>
underlying security purchased would be decreased by the premium originally
received. The Fund or Portfolio can write options only on a covered basis,
which, for a call, requires that the Fund or Portfolio hold the underlying
security, and, for a put, requires the Fund or Portfolio to set aside cash, U.S.
government securities or other liquid securities in an amount not less than the
exercise price or otherwise provide adequate cover at all times while the put
option is outstanding. The Fund or Portfolio may use options to manage its
exposure to the stock market and to fluctuations in interest rates.
The premium paid by the Fund or Portfolio for the purchase of a call or put
option is included in the Fund's or Portfolio's "Statement of Assets and
Liabilities" as an investment and subsequently "marked-to-market" to reflect the
current market value of the option. If an option which the Fund or Portfolio has
purchased expires on the stipulated expiration date, the Fund or Portfolio
realizes a loss in the amount of the cost of the option. If the Fund or
Portfolio enters into a closing sale transaction, the Fund or Portfolio realizes
a gain or loss, depending on whether proceeds from the closing sale transaction
are greater or less than the cost of the option. If the Fund or Portfolio
exercises a call option, the cost of the securities acquired by exercising the
call is increased by the premium paid to buy the call. If the Fund or Portfolio
exercises a put option, it realizes a gain or loss from the sale of the
underlying security, and the proceeds from such sale are decreased by the
premium originally paid.
The risk associated with purchasing options is limited to the premium originally
paid. The risk in writing a call option is that the Fund or Portfolio may forego
the opportunity of profit if the market value of the underlying security or
index increases and the option is exercised. The risk in writing a put option is
that the Fund or Portfolio may incur a loss if the market value of the
underlying security or index decreases and the option is exercised. In addition,
there is the risk the Fund or Portfolio may not be able to enter into a closing
transaction because of an illiquid secondary market.
(D) FUTURES CONTRACTS
A futures contract is an agreement between two parties to buy and sell a
security at a set price on a future date. Upon entering into such a contract the
Fund or Portfolio is required to pledge to the broker an amount of cash or
securities equal to the minimum "initial margin" requirements of the exchange on
which the contract is traded. Pursuant to the contract, the Fund or Portfolio
agrees to receive from or pay to the broker an amount of cash equal to the daily
fluctuation in value of the contract. Such receipts or payments are known as
"variation margin" and are recorded by the Fund or Portfolio as unrealized gains
or losses. When the contract is closed, the Fund or Portfolio records a realized
gain or loss equal to the difference between the value of the contract at the
time it was opened and the value at the time it was closed. The potential risk
to the Fund or Portfolio is that the change in value of the underlying
securities may not correlate to the change in value of the contracts. The Fund
or Portfolio may use futures contracts to manage its exposure to the stock
market and to fluctuations in interest rates.
(E) SECURITY TRANSACTIONS AND RELATED INVESTMENT INCOME
Security transactions are accounted for on the trade date (date the order to buy
or sell is executed). The cost of securities sold is determined on a first-in,
first-out basis, unless otherwise specified. Dividends are recorded on the
ex-dividend date. Interest income is recorded on the accrual basis. Where a high
level of uncertainty exists as to its collection, income is recorded net of all
withholding tax with any rebate recorded when received. The Fund or Portfolio
may trade securities on other than normal settlement terms. This may increase
the risk if the other party to the transaction fails to deliver and causes the
Fund or Portfolio to subsequently invest at less advantageous prices.
(F) PORTFOLIO SECURITIES LOANED
At June 30, 1998, stocks with an aggregate value listed below were on loan to
brokers. The loans were secured by cash collateral received by the funds:
<TABLE>
<CAPTION>
JUNE 30, 1998 PERIOD ENDED JUNE
-------------------------------- 30, 1998
AGGREGATE VALUE CASH -----------------
AIM ON LOANS COLLATERAL FEES RECEIVED
- ---------------------------------------- --------------- -------------- -----------------
<S> <C> <C> <C>
Small Cap Equity Fund................... $ 1,441,406 $ 1,470,234 $ 8,274
Mid Cap Growth Fund..................... 42,313,661 42,984,542 154,690
America Value Fund...................... -- -- 484
</TABLE>
Cash collateral is received by the Fund or Portfolio against loaned securities
in the amount at least equal to 102% of the market value of the loaned
securities at the inception of each loan. This collateral must be maintained at
not less than 100% of the market value of the loaned securities during the
period of the loan. The cash collateral is invested in a securities lending
trust which consists of a portfolio of high quality short duration securities
whose average effective duration is restricted to 120 days or less.
(G) DEFERRED ORGANIZATIONAL EXPENSES
Expenses incurred by the AIM Small Cap Equity Fund, the AIM America Value Fund,
and their respective Portfolios in connection with their organization, their
initial registration with the Securities and Exchange Commission and with
various states and the initial public offering of their shares aggregated
$63,500 for each Fund and $25,000 for each Portfolio. These expenses are being
amortized on a straight-line basis over a five-year period.
(H) TAXES
It is the policy of the Funds and Portfolios to meet the requirements for
qualification as a "regulated investment company" under the Internal Revenue
Code of 1986, as amended ("Code"). It is also the
F26
<PAGE>
intention of the Funds to make distributions sufficient to avoid imposition of
any excise tax under Section 4982 of the Code. Therefore, no provision has been
made for Federal taxes on income, capital gains, or unrealized appreciation of
securities held, and excise tax on income and capital gains.
(I) DISTRIBUTIONS TO SHAREHOLDERS
Distributions to shareholders are recorded by each Fund on the ex-date. Income
and capital gain distributions are determined in accordance with Federal income
tax regulations which may differ from generally accepted accounting principles.
These differences are primarily due to differing treatments of income and gains
on various investment securities held by the Fund or Portfolios and timing
differences.
(J) RESTRICTED SECURITIES
A Fund or Portfolio is permitted to invest in privately placed restricted
securities. These securities may be resold in transactions exempt from
registration or to the public if the securities are registered. Disposal of
these securities may involve time-consuming negotiations and expense, and prompt
sale at an acceptable price may be difficult.
(K) INDEXED SECURITIES
A Fund or Portfolio may invest in indexed securities whose value is linked
either directly or indirectly to changes in foreign currencies, interest rates,
equities, indices, or other reference instruments. Indexed securities may be
more volatile than the reference instrument itself, but any loss is limited to
the amount of the original investment.
(L) LINE OF CREDIT
Each of the Funds, along with certain other funds advised and/or administered by
the Manager, has a line of credit with BankBoston and State Street Bank & Trust
Company. The arrangements with the banks allow the Funds and certain other Funds
to borrow, on a first come, first serve basis, an aggregate maximum amount of
$250,000,000. Each of these three funds is limited to borrowing up to 33 1/3% of
the value of each Fund's total assets. On June 30, 1998, AIM Mid Cap Growth Fund
had $6,652,000 in loans outstanding.
For the period ended June 30, 1998, the average outstanding daily balance of
bank loans (based on the number of days the loans were outstanding) for AIM
Small Cap Equity Fund, AIM Mid Cap Growth Fund, and AIM America Value Fund was
$513,375, $11,735,546 and $87,889 with a weighted average interest rate of
6.36%, 6.28%, and 6.24%, respectively. Interest expense for AIM Small Cap Equity
Fund, AIM Mid Cap Growth Fund, and AIM America Value Fund for the period ended
June 30, 1998 was $3,627, $198,306, and $137, respectively, and is included in
"Other Expenses" on the Statement of Operations.
2. RELATED PARTIES
A I M Advisors, Inc. ("AIM" or the "Manager") is the Funds' and Portfolios'
investment manager and administrator, and INVESCO (NY), Inc., (formerly,
Chancellor LGT Asset Management, Inc.) is the Funds' and Portfolios' investment
sub-adviser and/or sub-administrator. As of the close of business on May 29,
1998, Liechtenstein Global Trust AG ("LGT"), the former indirect parent
organization of Chancellor LGT Asset Management, Inc. ("Chancellor LGT"),
consummated a purchase agreement with AMVESCAP PLC pursuant to which AMVESCAP
PLC acquired LGT's Asset Management Division, which included Chancellor LGT and
certain other affiliates. As a result of this transaction, Chancellor LGT was
renamed INVESCO (NY), Inc., and is now an indirect wholly-owned subsidiary of
AMVESCAP PLC. In connection with this transaction, A I M Advisors, Inc., an
indirect wholly-owned subsidiary of AMVESCAP PLC, became the investment manager
and administrator of the Funds and Portfolios and INVESCO (NY), Inc. became the
sub-adviser and sub-administrator of the Funds and Portfolios. A I M
Distributors, Inc. ("AIM Distributors") became the Funds' distributor. Finally,
the Trust was reorganized from a Massachusetts business trust into a Delaware
business trust, and each Portfolio was reorganized from a New York Trust into a
Delaware business trust. All of the changes became effective as of the close of
business on May 29, 1998.
AIM Small Cap Equity Fund and AIM America Value Fund each pays the Manager
administration fees at the annualized rate of 0.25% of such Fund's average daily
net assets. Each Portfolio pays investment management and administration fees to
the Manager at the annualized rate of 0.475% on the first $500 million of
average daily net assets of the Portfolio; 0.45% on the next $500 million;
0.425% on the next $500 million; and 0.40% on amounts thereafter. AIM Mid Cap
Growth Fund pays investment management and administration fees to the Manager at
the annualized rate of 0.725% on the first $500 million of average daily net
assets on the Fund; 0.70% on the next $500 million; 0.675% on the next $500
million and 0.65% on amounts thereafter. These fees are computed daily and paid
monthly, and are subject to reduction in any year to the extent that the Fund's
or Portfolio's expenses (exclusive of brokerage commissions, taxes, interest,
distribution-related expenses and extraordinary expenses) exceed the most
stringent limits prescribed by the laws or regulations of any state in which the
Fund's shares are offered for sale, based on the average total net asset value
of the Fund.
AIM Distributors, an affiliate of the Manager, serves as the Funds' distributor.
For the period ended May 29, 1998, GT Global, Inc. ("GT Global"), an affiliate
of the investment sub-advisor, served as the Funds' distributor. The Funds offer
Class A, Class B, and Advisor Class shares for purchase.
Class A shares are subject to initial sales charges imposed at the time of
purchase, in accordance with the schedule included in the Fund's current
prospectus. AIM Distributors collects the sales charges imposed on sales of
Class A shares, and reallows a portion of such charges to dealers through which
the sales are made. For the period ended June 30, 1998, AIM Distributors and GT
Global retained the following sales charges: $287 and $1,833, respectively, for
the AIM Small Cap Equity Fund, $1,705 and $12,353, respectively, for the AIM Mid
Cap Growth Fund, and $162 and $1,487, respectively, for the AIM America Value
Fund. Purchases of Class A shares exceeding $500,000 may be subject to a
contingent deferred sales charge ("CDSC") upon redemption, in accordance with
the Fund's current prospectus. No
F27
<PAGE>
CDSC's for Class A were collected for the period ended June 30, 1998. AIM
Distributors also makes ongoing shareholder servicing and trail commission
payments to dealers whose clients hold Class A shares.
Class B shares are not subject to initial sales charges. When Class B shares are
sold, AIM Distributors from its own resources pays commissions to dealers
through which the sales are made. Certain redemptions of Class B shares made
within six years of purchase are subject to CDSCs, in accordance with the Fund's
current prospectus. For the period ended June 30, 1998, AIM Distributors and GT
Global collected such CDSCs in the amount of: $5,915 and $65,285, respectively,
for the AIM Small Cap Equity Fund, $79,877 and $589,554, respectively, for the
AIM Mid Cap Growth Fund, and $6,047 and $32,112, respectively, for the AIM
America Value Fund. In addition, AIM Distributors makes ongoing shareholder
servicing and trail commission payments to dealers whose clients hold Class B
shares.
For the period ended May 29, 1998, pursuant to the then effective separate
distribution plans adopted under the 1940 Act Rule 12b-1 by the Trust's Board of
Trustees with respect to the Funds' Class A shares ("Class A Plan") and Class B
shares ("Class B Plan"), the Funds' reimbursed GT Global for a portion of its
shareholder servicing and distribution expenses. Under the Class A Plan, the
Fund's were permitted to pay GT Global a service fee at the annualized rate of
up to 0.25% of the average daily net assets of the Funds' Class A shares for GT
Global's expenditures incurred in servicing and maintaining shareholder
accounts, and were permitted to pay GT Global a distribution fee at the
annualized rate of up to 0.35% of the average daily net assets of the Funds'
Class A shares, less any amounts paid by the Funds as the aforementioned service
fee, for GT Global's expenditures incurred in providing services as distributor.
All expenses for which GT Global was reimbursed under the Class A Plan would
have been incurred within one year of such reimbursement.
For the period ended May 29, 1998, pursuant to the Class B Plan, the Funds were
permitted to pay GT Global a service fee at the annualized rate of up to 0.25%
of the average daily net assets of the Fund's Class B shares for GT Global's
expenditures incurred in servicing and maintaining shareholder accounts, and
were permitted to pay GT Global a distribution fee at the annualized rate of up
to 0.75% of the average daily net assets of the Fund's Class B shares for GT
Global's expenditures incurred in providing services as distributor. Expenses
incurred under the Class B Plan in excess of 1.00% annually were permitted to be
carried forward for reimbursement in subsequent years as long as that Plan
continued in effect.
Effective as of the close of business May 29, 1998, pursuant to Rule 12b-1 under
the 1940 Act, the Trust's Board of Trustees adopted a Master Distribution Plan
applicable to the Funds' Class A shares ("Class A Plan") and Class B shares
("Class B Plan"), pursuant to which the Funds compensates AIM Distributors for
the purpose of financing any activity that is intended to result in the sale of
Class A or Class B shares of the Funds. Under the Class A Plan, the funds
compensates AIM Distributors at the annualized rate of 0.35% of the average
daily net assets of each of the Fund's Class A shares.
Pursuant to the Funds' Class B Plan, the Funds compensate AIM Distributors at an
annualized rate of 1.00% of the average daily net assets of the Fund's Class B
shares.
The Class A Plan and the Class B Plan (together, the "Plans") are designed to
compensate AIM Distributors for certain promotional and other sales-related
costs, and to implement a dealer incentive program that provides for periodic
payments to selected dealers who furnish continuing personal shareholder
services to their customers who purchase and own Class A and Class B shares of a
Fund. Payments also can be directed by AIM Distributors to Financial
Institutions who have entered into service agreements with respect to Class A
and Class B shares of a Fund and who provide continuing personal services to
their customers who own Class A and Class B shares of a Fund. The service fees
payable to selected Financial Institutions are calculated at the annual rate of
0.25% of the average daily net asset value of those Fund shares that are held in
such Institution's customers' accounts that were purchased on or after a
prescribed date set forth in the Plans.
The Manager and AIM Distributors have undertaken to limit the Fund's expenses
(exclusive of brokerage commissions, taxes, interest, and extraordinary
expenses) to the annual rate of 1.75%, 2.40%, and 1.40% of the average daily net
assets of the Fund's Class A, Class B, and Advisor Class Shares, respectively.
This undertaking may be changed or eliminated in the future. If necessary, this
limitation will be effected by waivers by the Manager of investment management
and administration fees, waivers by AIM Distributors of payments under the Class
A Plan and/or Class B Plan and/or reimbursements by the Manager or AIM
Distributors of portions of the Fund's other operating expenses.
GT Global Investor Services, Inc. ("GT Services"), an affiliate of the Manager
and AIM Distributors, is the transfer agent of the Funds. For performing
shareholder servicing, reporting, and general transfer agent services, GT
Services receives an annual maintenance fee of $17.50 per account, a new account
fee of $4.00 per account, a per transaction fee of $1.75 for all transactions
other than exchanges and a per exchange fee of $2.25. GT Services also is
reimbursed by the Funds for its out-of-pocket expenses for such items as
postage, forms, telephone charges, stationery and office supplies.
The Manager is the pricing and accounting agent for the Funds. The monthly fee
for these services to the Manager is a percentage, not to exceed 0.03% annually,
of a Fund's average daily net assets. The annual fee rate is derived by applying
0.03% to the first $5 billion of assets of all registered mutual funds advised
by the Manager and 0.02% to the assets in excess of $5 billion and allocating
the result according to a Fund's average daily net assets.
The Trust pays each of its Trustees who is not an employee, officer or director
of the Manager, AIM Distributors or GT Services $5,000 per year plus $300 for
each meeting of the board or any committee thereof attended by the Trustee. Each
Portfolio pays each of its
F28
<PAGE>
Trustees who is not an employee, officer or director of the Manager, AIM
Distributors or GT Services $500 per year plus $150 for each meeting of the
board or any committee thereof attended by the Trustee.
At June 30, 1998, all of the shares of beneficial interest of each Portfolio
were owned either by its Fund or the Manager.
3. PURCHASES AND SALES OF SECURITIES
For the period ended June 30, 1998, purchases of investment securities by the
AIM Small Cap Equity Portfolio, AIM Mid Cap Growth Fund, and AIM America Value
Portfolio, other than U.S. government obligations and short-term investments,
aggregated $34,489,676, $425,421,321 and $21,307,726, respectively. Sales of
investment securities by the AIM Small Cap Equity Portfolio, AIM Mid Cap Growth
Fund, and AIM America Value Portfolio, other than U.S. government obligations
and short-term investments, aggregated $38,854,404, $503,976,639 and
$18,275,286, respectively. There were no purchases or sales of U.S. government
obligations by a Fund or Portfolio during the year.
4. CAPITAL SHARES
At June 30, 1998, there were an unlimited number of shares of beneficial
interest authorized, at no par value. Transactions in capital shares of the
Funds were as follows:
CAPITAL SHARE TRANSACTIONS
CAPITAL SHARES-AIM SMALL CAP EQUITY FUND
<TABLE>
<CAPTION>
SIX MONTHS ENDED
JUNE 30, 1998 YEAR ENDED
(UNAUDITED) DECEMBER 31, 1997
---------------------------- -----------------------------
CLASS A SHARES AMOUNT SHARES AMOUNT
- ---------------------------------------- ------------ -------------- ------------ ---------------
<S> <C> <C> <C> <C>
Shares sold............................. 766,677 $ 12,379,784 2,067,494 $ 28,341,345
Shares issued in connection with
reinvestment of distributions......... -- -- 14,194 195,720
------------ -------------- ------------ ---------------
766,677 12,379,784 2,081,688 28,537,065
Shares repurchased...................... (783,355) (12,602,269) (1,992,960) (27,546,271)
------------ -------------- ------------ ---------------
Net increase (decrease)................. (16,678) $ (222,485) 88,728 $ 990,794
------------ -------------- ------------ ---------------
------------ -------------- ------------ ---------------
<CAPTION>
CLASS B SHARES AMOUNT SHARES AMOUNT
- ---------------------------------------- ------------ -------------- ------------ ---------------
<S> <C> <C> <C> <C>
Shares sold............................. 649,669 $ 10,068,580 2,192,656 $ 29,216,057
Shares issued in connection with
reinvestment of distributions......... -- -- 26,438 359,234
------------ -------------- ------------ ---------------
649,669 10,068,580 2,219,094 29,575,291
Shares repurchased...................... (942,259) (14,277,803) (1,570,899) (20,624,826)
------------ -------------- ------------ ---------------
Net increase (decrease)................. (292,590) $ (4,209,223) 648,195 $ 8,950,465
------------ -------------- ------------ ---------------
------------ -------------- ------------ ---------------
<CAPTION>
ADVISOR CLASS SHARES AMOUNT SHARES AMOUNT
- ---------------------------------------- ------------ -------------- ------------ ---------------
<S> <C> <C> <C> <C>
Shares sold............................. 39,133 $ 613,117 156,123 $ 2,292,127
Shares issued in connection with
reinvestment of distributions......... -- -- 507 7,039
------------ -------------- ------------ ---------------
39,133 613,117 156,630 2,299,166
Shares repurchased...................... (5,668) (88,767) (80,540) (1,200,061)
------------ -------------- ------------ ---------------
Net increase............................ 33,465 $ 524,350 76,090 $ 1,099,105
------------ -------------- ------------ ---------------
------------ -------------- ------------ ---------------
</TABLE>
F29
<PAGE>
CAPITAL SHARES-AIM MID CAP GROWTH FUND
<TABLE>
<CAPTION>
SIX MONTHS ENDED
JUNE 30, 1998 YEAR ENDED
(UNAUDITED) DECEMBER 31, 1997
---------------------------- -----------------------------
CLASS A SHARES AMOUNT SHARES AMOUNT
- ---------------------------------------- ------------ -------------- ------------ ---------------
<S> <C> <C> <C> <C>
Shares sold............................. 13,237,471 $ 293,037,123 24,801,099 $ 522,081,212
Shares issued in connection with
reinvestment of distributions......... -- -- 1,170,749 23,490,213
------------ -------------- ------------ ---------------
13,237,471 293,037,123 25,971,848 545,571,425
Shares repurchased...................... (15,286,842) (338,921,081) (30,338,852) (637,412,658)
------------ -------------- ------------ ---------------
Net decrease............................ (2,049,371) $ (45,883,958) (4,367,004) $ (91,841,233)
------------ -------------- ------------ ---------------
------------ -------------- ------------ ---------------
<CAPTION>
CLASS B SHARES AMOUNT SHARES AMOUNT
- ---------------------------------------- ------------ -------------- ------------ ---------------
<S> <C> <C> <C> <C>
Shares sold............................. 3,361,394 $ 70,538,881 9,218,434 $ 190,231,954
Shares issued in connection with
reinvestment of distributions......... -- -- 1,240,395 24,063,873
------------ -------------- ------------ ---------------
3,361,394 70,538,881 10,458,829 214,295,827
Shares repurchased...................... (5,214,434) (110,304,526) (14,376,532) (293,260,545)
------------ -------------- ------------ ---------------
Net decrease............................ (1,853,040) $ (39,765,645) (3,917,703) $ (78,964,718)
------------ -------------- ------------ ---------------
------------ -------------- ------------ ---------------
<CAPTION>
ADVISOR CLASS SHARES AMOUNT SHARES AMOUNT
- ---------------------------------------- ------------ -------------- ------------ ---------------
<S> <C> <C> <C> <C>
Shares sold............................. 796,165 $ 16,947,597 1,056,271 $ 23,267,932
Shares issued in connection with
reinvestment of distributions......... -- -- 5,993 120,751
------------ -------------- ------------ ---------------
796,165 16,947,597 1,062,264 23,388,683
Shares repurchased...................... (805,702) (16,969,717) (1,103,923) (24,248,785)
------------ -------------- ------------ ---------------
Net decrease............................ (9,537) $ (22,120) (41,659) $ (860,102)
------------ -------------- ------------ ---------------
------------ -------------- ------------ ---------------
</TABLE>
CAPITAL SHARES-AIM AMERICA VALUE FUND
<TABLE>
<CAPTION>
SIX MONTHS ENDED
JUNE 30, 1998 YEAR ENDED
(UNAUDITED) DECEMBER 31, 1997
---------------------------- -----------------------------
CLASS A SHARES AMOUNT SHARES AMOUNT
- ---------------------------------------- ------------ -------------- ------------ ---------------
<S> <C> <C> <C> <C>
Shares sold............................. 233,708 $ 4,201,126 781,797 $ 13,117,280
Shares issued in connection with
reinvestment of distributions......... -- -- 26,859 454,725
------------ -------------- ------------ ---------------
233,708 4,201,126 808,656 13,572,005
Shares repurchased...................... (206,495) (3,733,422) (536,657) (9,148,725)
------------ -------------- ------------ ---------------
Net increase............................ 27,213 $ 467,704 271,999 $ 4,423,280
------------ -------------- ------------ ---------------
------------ -------------- ------------ ---------------
<CAPTION>
CLASS B SHARES AMOUNT SHARES AMOUNT
- ---------------------------------------- ------------ -------------- ------------ ---------------
<S> <C> <C> <C> <C>
Shares sold............................. 402,934 $ 7,126,394 1,148,582 $ 19,043,834
Shares issued in connection with
reinvestment of distributions......... -- -- 60,093 1,004,744
------------ -------------- ------------ ---------------
402,934 7,126,394 1,208,675 20,048,578
Shares repurchased...................... (269,058) (4,850,260) (606,167) (9,803,021)
------------ -------------- ------------ ---------------
Net increase............................ 133,876 $ 2,276,134 602,508 $ 10,245,557
------------ -------------- ------------ ---------------
------------ -------------- ------------ ---------------
<CAPTION>
ADVISOR CLASS SHARES AMOUNT SHARES AMOUNT
- ---------------------------------------- ------------ -------------- ------------ ---------------
<S> <C> <C> <C> <C>
Shares sold............................. 17,744 $ 319,673 14,203 $ 230,962
Shares issued in connection with
reinvestment of distributions......... -- -- 1,920 32,714
------------ -------------- ------------ ---------------
17,744 319,673 16,123 263,676
Shares repurchased...................... (2,387) (45,558) (3,834) (66,384)
------------ -------------- ------------ ---------------
Net increase............................ 15,357 $ 274,115 12,289 $ 197,292
------------ -------------- ------------ ---------------
------------ -------------- ------------ ---------------
</TABLE>
5. EXPENSE REDUCTIONS
The Manager has directed certain portfolio trades to brokers who then paid a
portion of a Fund's or Portfolio's expenses. For the period ended June 30, 1998,
the expenses of AIM Small Cap Equity Portfolio, AIM Mid Cap Growth Fund and AIM
America Value Portfolio were reduced by $1,016, $29,201 and $1,546 respectively,
under these arrangements.
6. SUBSEQUENT EVENT
Effective September 8, 1998, INVESCO (NY), Inc. (the "Sub-adviser") will resign
as (i) sub-advisor and sub-administrator to the Value Portfolio, the Small Cap
Portfolio (together the "Portfolios") and AIM Mid Cap Growth Fund; and (ii)
sub-administrator to AIM America Value Fund and AIM Small Cap Equity Fund. A I M
Advisors, Inc. will continue to serve as the manager and administrator for the
above-named funds and portfolios.
F30
<PAGE>
NOTES
- --------------------------------------------------------------------------------
<PAGE>
THE AIM FAMILY OF FUNDS-REGISTERED TRADEMARK-
GROWTH FUNDS
- --------------------------------------------------------------------------------
AIM Aggressive Growth Fund(1)
AIM Blue Chip Fund
AIM Capital Development Fund
AIM Constellation Fund
AIM Mid Cap Growth Fund(2)
AIM Select Growth Fund(3)
AIM Small Cap Equity Fund(2)
AIM Small Cap Opportunities Fund
AIM Value Fund
AIM Weingarten Fund
GROWTH & INCOME FUNDS
- --------------------------------------------------------------------------------
AIM Advisor Flex Fund
AIM Advisor Large Cap Value Fund
AIM Advisor MultiFlex Fund
AIM Advisor Real Estate Fund
AIM America Value Fund(2)
AIM Balanced Fund
AIM Charter Fund
INCOME FUNDS
- --------------------------------------------------------------------------------
AIM Floating Rate Fund(2)
AIM High Yield Fund
AIM Income Fund
AIM Intermediate Government Fund
AIM Limited Maturity Treasury Fund
TAX-FREE INCOME FUNDS
- --------------------------------------------------------------------------------
AIM High Income Municipal Fund
AIM Municipal Bond Fund
AIM Tax-Exempt Bond Fund of Connecticut
AIM Tax-Free Intermediate Fund
MONEY MARKET FUNDS
- --------------------------------------------------------------------------------
AIM Dollar Fund(2)
AIM Money Market Fund
AIM Tax-Exempt Cash Fund
INTERNATIONAL GROWTH FUNDS
- --------------------------------------------------------------------------------
AIM Advisor International Value Fund
AIM Asian Growth Fund
AIM Developing Markets Fund(2)
AIM Emerging Markets Fund(2)
AIM Europe Growth Fund(2)
AIM European Development Fund
AIM International Equity Fund
AIM International Growth Fund(2)
AIM Japan Growth Fund(2)
AIM Latin American Growth Fund(2)
AIM New Pacific Growth Fund(2)
GLOBAL GROWTH FUNDS
- --------------------------------------------------------------------------------
AIM Global Aggressive Growth Fund
AIM Global Growth Fund
AIM Worldwide Growth Fund(2)
GLOBAL GROWTH & INCOME FUNDS
- --------------------------------------------------------------------------------
AIM Global Growth & Income Fund(2)
AIM Global Utilities Fund
GLOBAL INCOME FUNDS
- --------------------------------------------------------------------------------
AIM Global Government Income Fund(2)
AIM Global High Income Fund(2)
AIM Global Income Fund
AIM Strategic Income Fund(2)
THEME FUNDS
- --------------------------------------------------------------------------------
AIM Global Consumer Products and Services Fund(2)
AIM Global Financial Services Fund(2)
AIM Global Health Care Fund(2)
AIM Global Infrastructure Fund(2)
AIM Global Resources Fund(2)
AIM Global Telecommunications Fund(2)
AIM New Dimension Fund(2)
(1) AIM Aggressive Growth Fund closed to new investors on June 5, 1997.(2)
Effective May 29, 1998, A I M Advisors, Inc. became advisor to the former GT
Global Funds. 3On May 1, 1998, AIM Growth Fund was renamed AIMSelect Growth
Fund. For more complete information about any AIM Fund, including sales
charges and expenses, obtain the appropriate prospectus(es) from your
financial consultant. Please read the prospectus(es) carefully before you
invest or send money.
www.aimfunds.com AIM Distributors, Inc. INVEST WITH DISCIPLINE SM
