<PAGE> 1
SEMIANNUAL REPORT / JUNE 30, 1999
AIM NEW PACIFIC GROWTH FUND
[COVER IMAGE]
[AIM LOGO APPEARS HERE]
<PAGE> 2
[COVER IMAGE]
--------------------------------------------------------
MOUNTAIN AND PALM TREE LANDSCAPE
BY SHERRI SILVERMAN, (BORN 1951, AMERICAN)
BEAUTIFUL AT FIRST GLANCE, SILVERMAN'S VIBRANT PAINTINGS
OFFER EVEN GREATER REWARDS TO THE CONTEMPLATIVE VIEWER.
DRAWING THEIR POWER FROM THE SIMPLEST SHAPES AND PUREST
PIGMENTS, HER WORKS DISCARD REALISTIC REPRESENTATION IN
FAVOR OF INTENSE MOOD AND ATMOSPHERE. IN THE COVER
PAINTING, SILVERMAN'S TROPICAL COLORS MELT SEAMLESSLY
INTO A DREAMLIKE VISION OF EXOTIC LANDS.
--------------------------------------------------------
AIM New Pacific Growth Fund is for shareholders who seek long-term growth of
capital. The fund invests primarily in equity securities of companies located in
Pacific region countries other than Japan. Japan was eliminated from the fund's
Primary Investment Area on January 21, 1994.
ABOUT FUND PERFORMANCE AND PORTFOLIO DATA THROUGHOUT THIS REPORT:
o AIM New Pacific Growth Fund (formerly GT Global New Pacific Growth Fund)
performance figures are historical and reflect reinvestment of all
distributions and changes in net asset value.
o When sales charges are included in performance figures, Class A share
performance reflects the maximum 5.50% sales charge, and Class B and Class C
share performance reflects the applicable contingent deferred sales charge
(CDSC) for the period involved. The CDSC on Class B shares declines from 5%
beginning at the time of purchase to 0% at the beginning of the seventh
year. The CDSC on Class C shares is 1% for the first year after purchase.
The performance of the fund's Class B, Class C and Advisor Class shares will
differ from that of Class A shares due to differences in sales charge
structure and expenses.
o Because Class C shares have been offered for less than one year, total
return provided is cumulative total return that has not been annualized.
o Advisor Class shares were closed to new investors as of March 1, 1999.
o The fund's investment return and principal value will fluctuate, so an
investor's shares, when redeemed, may be worth more or less than their
original cost.
o International investing presents certain risks not associated with investing
solely in the United States. These include risks relating to fluctuations in
the value of the U.S. dollar relative to the values of other currencies, the
custody arrangements made for the fund's foreign holdings, differences in
accounting, political risks and the lesser degree of public information
required to be provided by non-U.S. companies.
ABOUT INDEXES AND OTHER PERFORMANCE BENCHMARKS CITED IN THIS REPORT:
o The MSCI AC (All-Country) Pacific Free ex-Japan Index is a group of
unmanaged securities from all developed and emerging markets in the Pacific
Rim (except Japan) tracked by Morgan Stanley Capital International. A "free"
index includes only securities available to non-domestic investors.
o An investment cannot be made in any index listed. Unless otherwise
indicated, index results include reinvested dividends and do not reflect
sales charges
AN INVESTMENT IN THE FUND IS NOT A DEPOSIT OF A BANK AND IS NOT INSURED OR
GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY
OTHER GOVERNMENT AGENCY. THERE IS A RISK THAT YOU
COULD LOSE SOME OR ALL OF YOUR MONEY.
This report may be distributed only to current shareholders or to persons
who have received a current prospectus of the fund.
AIM NEW PACIFIC GROWTH FUND
<PAGE> 3
SEMIANNUAL REPORT / CHAIRMAN'S LETTER
Dear Fellow Shareholder:
With only several months remaining in 1999, the question on
[PHOTO OF many of your minds may be, "How will the year 2000 computer
Charles T. issue affect AIM and my investments?" We would like you to
Bauer, feel comfortable. We are pleased to be able to report to you
Chairman of that as of June 1999 we achieved a major milestone toward
the Board of year 2000 compliance status: we have successfully completed
THE FUND the testing of all of our mission-critical systems.
APPEARS HERE] Earlier this year, AIM participated in an industrywide
test that gave us a chance to see how our technology systems
might be affected by the changeover to the year 2000 (Y2K).
Everything went as well as we had hoped; in general, the
industry sailed through the testing process with flying
colors. The financial industry has been seen as a leader in
planning for year 2000 concerns. Thus, it was no surprise to
most participants that the test was an overwhelming success.
The general purpose of the process was to test electronic
interfaces among financial industry members in the United States and to follow
transactions through a typical trading cycle--from order entry to the settlement
process. Investment banks, broker-dealers, custodian banks and mutual fund
companies all worked together to make this possible. Approximately 400 firms
were involved in the testing; AIM was one of 70 asset managers.
During the testing process, thousands of transactions were submitted and
approximately 260,000 steps were tested. Of those, only a handful experienced
minor glitches--just 0.02% of the total number of transactions. All problems
were worked through quickly before the hypothetical trades were settled. Of
course, AIM will keep testing and planning throughout 1999 as a precaution.
AIM'S INTERNAL EFFORTS CONTINUE
As you know from our previous communications to you, AIM has been addressing the
year 2000 issue for several years. Now that we have finished adjusting our
applications and systems, our focus for the rest of 1999 is to continue
monitoring the year 2000 readiness status of outside sources we're linked to
electronically. On the investment side, our portfolio management staff is
continually evaluating the Y2K preparedness of the domestic and foreign
companies in which we invest.
We feel that our preparations for 2000 are very comprehensive, and the
industrywide testing showed that our colleagues in the financial industry are
also working hard to be ready for the new year. We do not think shareholders
need to take any extraordinary measures with their investments to prepare for
2000. However, if you have any lingering concerns, it may reassure you to know
that AIM is finalizing contingency plans that will be ready if necessary. Our
plans will give AIM employees guidelines to follow for a wide variety of
situations.
For a more comprehensive discussion of our Y2K efforts and for periodic
updates, please visit our Web site, www.aimfunds.com.
We are pleased to send you this report covering your fund's performance over
the last six months. If you have any questions or comments, please contact our
Client Services department at 800-959-4246, or e-mail your inquiry to us at
[email protected]. You can access information about your account through our
automated AIM Investor Line at 800-246-5463 or at our Web site.
Thank you for your continued participation in The AIM Family of
Funds--Registered Trademark--. We appreciate your business.
Sincerely,
/s/ CHARLES T. BAUER
Charles T. Bauer
Chairman
A I M Advisors, Inc.
PLEASE NOTE THAT THE INFORMATION ABOUT THE YEAR 2000 IN THIS LETTER IS DEEMED
AIM'S YEAR 2000 READINESS DISCLOSURE.
----------------------
THE FINANCIAL INDUSTRY
HAS BEEN SEEN AS A
LEADER IN PLANNING FOR
YEAR 2000 CONCERNS.
----------------------
AIM NEW PACIFIC GROWTH FUND
<PAGE> 4
SEMIANNUAL REPORT / MANAGERS' OVERVIEW
ASIA-PACIFIC REGION STAGES STRONG COMEBACK
AFTER MONTHS OF TURMOIL, ASIAN MARKETS FINALLY HAVE DELIVERED SOME IMPRESSIVE
GAINS. HOW DID THE FUND PERFORM OVER THE LAST SIX MONTHS?
We're very pleased to say that AIM New Pacific Growth Fund's performance has
shown a marked improvement since our last report to you. For the six months
ended June 30, 1999, total returns (without sales charges) were 26.40% for Class
A shares, 25.99% for Class B shares and 26.45% for Advisor Class shares.
Class C shares, offered since May 3, 1999, produced a cumulative total
return (without sales charges) of 6.90% as of June 30, 1999.
WHAT'S BEHIND THE IMPROVED PERFORMANCE OF ASIAN MARKETS?
There is definitely a renewed optimism about Asian markets. Investors and
analysts feel that the region finally has hit bottom and started to bounce back.
Interest rates and inflation are down, economies are growing and corporations
are starting to restructure and project good earnings. Korea, for instance, has
made some bold efforts to restructure its financial industry. Smarter and
stronger Korean banks are now doing very well in the markets, as are reformed
Thai banks.
With the U.S. economy showing robust growth in the first half of 1999, the
outlook for Asian exports has become more promising. Trade surpluses have
accumulated and inflation has eased, so the interest-rate environment has
remained benign. Throughout Asia (with the exception of Hong Kong), gross
domestic product (GDP) numbers have been stronger than expected. We feel that
Asia is in an early stage of recovery, and the recent strong performance of
cyclical stocks is evidence of a new beginning.
DID YOU MAKE ANY CHANGES TO YOUR COUNTRY OR INDUSTRY WEIGHTINGS OVER THE LAST
SIX MONTHS?
In Australia, stronger-than-expected economic growth sparked fears of inflation
and higher interest rates. Moreover, because investors had seen the country as a
safe haven during the Asian crisis, the market was "over-owned" and valuations
had gotten rather high. Consequently, we lowered our Australia weighting, mainly
by selling industrial stocks that had been a drag on performance earlier in the
year. For instance, Australia's Brambles Industries was one of the more
disappointing holdings of the first half of 1999.
We increased our exposure to the Australian resources sector, however, which
has done very well. An example would be WMC Limited, one of Australia's major
mineral producers. The company started in the 1930s as a gold-exploration
company. Now it is one of Australia's top exporters, shipping out such products
as nickel, copper and uranium.
In Hong Kong, our weighting has not changed very much, but we've moved away
from defensive utilities stocks and made some more aggressive selections among
Hong Kong's China-related stocks. One example would be Yizheng Chemical Fibre,
China's largest supplier of polyester. The Chinese economy has become much more
liquid, which we think will benefit such stocks.
We increased our exposure to Korea and Taiwan by buying stocks in the
computer and electronics industries. Healthier global growth should help boost
their performance.
WHICH HOLDINGS CONTRIBUTED MOST TO PERFORMANCE?
Singapore was one of the countries where GDP numbers came in much stronger than
expected. One of the beneficiaries of this news was Singapore Press Holdings
MARKET GAINS BY COUNTRY
Average total returns, based on MSCI country indexes 12/31/98 - 6/30/99
================================================================================
Indonesia 110.94%
South Korea 77.88
Malaysia 68.51
Thailand 49.94
Taiwan 42.26
Singapore 33.55
Hong Kong 31.46*
Philippines 29.15
Australia 14.35*
New Zealand 7.18*
* Starred numbers were calculated using net dividends. All others were
calculated using gross dividends.
================================================================================
WHERE THE FUND INVESTED
As of 6/30/99, based on total net assets
================================================================================
1. Hong Kong 23.35%
2. South Korea 16.51
3. Australia 14.66
4. Singapore 11.64
5. Taiwan 10.88
6. Philippines 3.37
7. Indonesia 2.51
8. Malaysia 1.59
9. New Zealand 1.51
10. Thailand 0.71
The fund's portfolio is subject to change.
================================================================================
--------------------------------------
WE FEEL THAT ASIA IS IN AN EARLY STAGE
OF RECOVERY, AND THE RECENT STRONG
PERFORMANCE OF CYCLICAL STOCKS IS
EVIDENCE OF A NEW BEGINNING.
--------------------------------------
See important fund and index disclosures inside front cover.
AIM NEW PACIFIC GROWTH FUND
2
<PAGE> 5
SEMIANNUAL REPORT / MANAGERS' OVERVIEW
(SPH). The company publishes a variety of magazines and newspapers, including
one of Singapore's oldest English-language dailies, and it also hosts a popular
online news service called AsiaOne. In addition, SPH has business interests in
multimedia and cable companies. These all contributed to the stock's strong
performance, as did a share buy back plan that was well received by investors.
Another good holding was Korean company LG Information & Communication, a
maker of switching systems, transmission equipment, cellular systems and other
communications equipment. The stock, which had been undervalued, finally caught
up with the market. In local currency terms, the stock's value increased more
than 175%.
WHAT IS YOUR OUTLOOK FOR THE REMAINDER OF 1999?
We expect global demand for Asian exports to remain strong from both the United
States and Europe. Nevertheless, the trade surpluses that have helped Asia's
liquidity are likely to shrink a bit later in the year. Now that the region is
beginning to recover, imports will probably increase. So as the liquidity that
has spurred the latest market rally dries up somewhat, we may see a correction
in the region while investors wait for earnings to pick up.
Asia's trade surplus made possible a decrease in interest rates, and that's
gone a long way in helping the region recover. But we're at the point where
rates have probably gone as low as they're going to go in some countries. Still,
there's no pressing need to alter the interest-rate environment yet, since there
is no immediate threat of inflation.
Our strategy in AIM New Pacific Growth fund is to focus on companies that
are likely to deliver structural improvement. We think Asian domestic demand
will probably remain weak, so we are being very cautious about lower-quality
companies. Of course, while high-quality companies are the best place to be,
they are also commanding a higher premium.
PORTFOLIO COMPOSITION
As of 6/30/99, based on total net assets
<TABLE>
<CAPTION>
=========================================================================================================
TOP 10 EQUITY HOLDINGS TOP 10 INDUSTRIES
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
1. Cheung Kong Holdings Ltd. (Hong Kong) 5.31% 1. Banks (Major Regional) 17.19%
2. Hutchison Whampoa Ltd. (Hong Kong) 4.98 2. Telephone 9.81
3. Merrill Lynch International & Co. 3.80 3. Land Development 9.65
KOSPI 200-Warrants, expiring 12/9/99 (South Korea) 4. Investment Management 5.03
4. National Australian Bank Ltd. (Australia) 2.71 5. Retail (Food Chains) 4.98
5. Samsung Electronics Co. Ltd. (South Korea) 2.66 6. Manufacturing (Diversified) 4.47
6. Singapore Press Holdings, Ltd. (Singapore) 2.61 7. Chemicals (Specialty) 4.45
7. Hong Kong Telecommunications Ltd. (Hong Kong) 2.57 8. Electronics (Component 4.28
8. HSBC Holdings PLC (Hong Kong) 2.50 Distribution)
9. LG Information & Communication (South Korea) 2.48 9. Computers (Hardware) 3.51
10. Telstra Corp. Ltd. (Australia) 2.35 10. Publishing (Newspapers) 2.61
The fund's portfolio is subject to change. There is no assurance that the fund will continue to hold any
particular security.
=========================================================================================================
</TABLE>
================================================================================
AVERAGE ANNUAL TOTAL RETURNS
As of 6/30/99, including sales charges
CLASS A SHARES
Inception (1/19/77) 9.10%
10 years 0.58
5 years -7.52
1 year 25.04*
CLASS B SHARES
Inception (4/1/93) -2.92%
5 years -7.39
1 year 26.24**
CLASS C SHARES
Inception (5/3/99) 5.90%***
ADVISOR CLASS SHARES
(do not include sales charges)
Inception (6/1/95) -8.74%
3 years -13.72
1 year 32.39
* 32.28%, excluding sales charges
** 31.24%, excluding CDSC
*** cumulative total return
================================================================================
See important fund and index disclosures inside front cover.
AIM NEW PACIFIC GROWTH FUND
3
<PAGE> 6
SCHEDULE OF INVESTMENTS
June 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
FOREIGN STOCKS & OTHER EQUITY
INTERESTS-86.73%
AUSTRALIA-14.66%
AMP Ltd. (Insurance-Life/Health) 216,800 $ 2,367,001
- --------------------------------------------------------------
Brambles Industries Ltd. (Air
Freight) 92,900 2,444,179
- --------------------------------------------------------------
Broken Hill Proprietary Co. Ltd.
(Iron & Steel) 247,700 2,865,486
- --------------------------------------------------------------
Lend Lease Corp. Ltd. (Real Estate) 87,500 1,199,814
- --------------------------------------------------------------
National Australia Bank Ltd.
(Banks-Major Regional) 247,700 4,093,552
- --------------------------------------------------------------
Smorgon Steel Group Ltd.
(Manufacturing- Diversified)(a) 1,238,500 1,874,847
- --------------------------------------------------------------
Southcorp Ltd.
(Manufacturing-Diversified)(a) 266,200 1,073,602
- --------------------------------------------------------------
Telstra Corp. Ltd. (Telephone) 619,300 3,544,074
- --------------------------------------------------------------
WMC Ltd. (Metals-Mining) 619,300 2,656,930
- --------------------------------------------------------------
22,119,485
- --------------------------------------------------------------
HONG KONG-23.35%
Bank of East Asia, Ltd.
(Banks-Major Regional)(a) 1,000,000 2,526,229
- --------------------------------------------------------------
Cheung Kong Holdings Ltd. (Land
Development) 900,000 8,004,021
- --------------------------------------------------------------
China Everbright Ltd. (Land
Development)(a) 2,000,000 1,997,783
- --------------------------------------------------------------
Cosco Pacific Ltd.
(Financial-Diversified) 2,500,000 2,062,228
- --------------------------------------------------------------
Hang Seng Bank Ltd. (Banks-Major
Regional) 180,000 2,012,605
- --------------------------------------------------------------
Hong Kong Telecommunications Ltd.
(Telephone) 1,500,200 3,876,861
- --------------------------------------------------------------
HSBC Holdings PLC (Banks-Major
Regional) 103,421 3,772,348
- --------------------------------------------------------------
Hutchison Whampoa Ltd. (Retail-Food
Chains) 830,000 7,515,209
- --------------------------------------------------------------
Shanghai Industrial Holdings Ltd.
(Manufacturing-Diversified) 800,000 1,907,561
- --------------------------------------------------------------
Yizheng Chemical Fibre Co., Ltd.
(Chemicals- Specialty)(a) 6,000,000 1,546,671
- --------------------------------------------------------------
35,221,516
- --------------------------------------------------------------
INDONESIA-2.51%
PT Indofood Sukses Makmur Tbk
(Foods) 1,000,000 1,357,401
- --------------------------------------------------------------
PT Lippo Bank Tbk (Banks-Major
Regional)(a) 16,000,000 866,426
- --------------------------------------------------------------
PT Telekomunikasi Indonesia
(Telephone) 2,700,000 1,559,567
- --------------------------------------------------------------
3,783,394
- --------------------------------------------------------------
MALAYSIA-1.59%
Berjaya Sports Toto Berhad (Leisure
Time- Products)(b) 600,000 1,181,208
- --------------------------------------------------------------
Telekom Malaysia Berhad
(Telephone)(b) 381,750 1,212,718
- --------------------------------------------------------------
2,393,926
- --------------------------------------------------------------
NEW ZEALAND-1.51%
Telecom Corp. of New Zealand Ltd.
(Telephone) 531,100 2,277,646
- --------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
PHILIPPINES-3.37%
Benpres Holdings Corp.
(Manufacturing- Diversified)(a) 8,000,000 $ 1,892,247
- --------------------------------------------------------------
Equitable Banking Corp.
(Banks-Major Regional) 520,000 1,352,957
- --------------------------------------------------------------
Philippine Long Distance Telephone
Co. (Telephone) 60,290 1,838,013
- --------------------------------------------------------------
5,083,217
- --------------------------------------------------------------
SINGAPORE-11.64%
City Developments Ltd. (Land
Development) 400,000 2,561,692
- --------------------------------------------------------------
DBS Land Ltd. (Land Development) 1,000,000 1,997,650
- --------------------------------------------------------------
Development Bank of Singapore Ltd.
(Banks- Major Regional) 270,000 3,299,647
- --------------------------------------------------------------
Overseas-Chinese Banking Corp.,
Ltd.(Banks- Major Regional) 420,000 3,504,113
- --------------------------------------------------------------
Singapore Press Holdings Ltd.
(Publishing- Newspapers) 230,816 3,932,823
- --------------------------------------------------------------
Singapore Technologies Engineering
Ltd. (Engineering & Construction) 2,000,000 2,267,920
- --------------------------------------------------------------
17,563,845
- --------------------------------------------------------------
SOUTH KOREA-16.51%
Kookmin Bank (Banks-Major
Regional)(a) 100,000 2,030,238
- --------------------------------------------------------------
Korea Electric Power Corp.
(Electric Companies) 70,000 2,908,855
- --------------------------------------------------------------
Korea Telecom Corp.-ADR
(Telephone)(a) 12,380 495,200
- --------------------------------------------------------------
L.G. Chemical Ltd.
(Chemicals-Specialty) 90,000 2,449,244
- --------------------------------------------------------------
LG Information & Communication
(Communications Equipment) 50,562 3,739,185
- --------------------------------------------------------------
Merrill Lynch International & Co.
KOSPI 200-Wts., expiring 12/09/99
(Investment Banking/Brokerage)(a) 632,101 5,726,393
- --------------------------------------------------------------
Samsung Display Devices Co.
(Electronics- Component
Distributors) 45,000 2,449,244
- --------------------------------------------------------------
Samsung Electronics
(Electronics-Component
Distributors) 36,514 4,006,288
- --------------------------------------------------------------
Shinhan Bank GDR (Banks-Major
Regional)(a) 49,300 1,096,925
- --------------------------------------------------------------
24,901,572
- --------------------------------------------------------------
TAIWAN-10.88%
Asustek Computer, Inc.
(Computers-Hardware) 168,000 1,893,251
- --------------------------------------------------------------
Cathay Life Insurance Co., Ltd.
(Insurance Brokers) 700,000 2,513,932
- --------------------------------------------------------------
China Development Industrial Bank
(Investment Management)(a) 744,500 1,855,488
- --------------------------------------------------------------
China Steel Corp. (Metals Mining) 1,473,000 1,112,731
- --------------------------------------------------------------
Chinatrust Commercial Bank (Banks-
Regional)(a) 1,277,000 1,533,981
- --------------------------------------------------------------
</TABLE>
4
<PAGE> 7
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
TAIWAN-(CONTINUED)
Compal Electronics, Inc.
(Computers- Hardware) 87,675 $ 344,728
- --------------------------------------------------------------
First Commercial Bank (Banks-Major
Regional) 724,500 1,379,466
- --------------------------------------------------------------
Formosa Plastics Corp.
(Chemicals-Specialty) 700,000 1,473,684
- --------------------------------------------------------------
Taiwan Semiconductor Manufacturing
Co. (Computers-Hardware)(a) 799,500 3,056,912
- --------------------------------------------------------------
Taiwan Styrene Monomer Corp.
(Chemicals- Specialty) 1,273,000 1,249,353
- --------------------------------------------------------------
16,413,526
- --------------------------------------------------------------
THAILAND-0.71%
PTT Exploration and Production
Public Co. Ltd. (Oil &
Gas-Exploration & Production)(a) 140,600 1,075,233
- --------------------------------------------------------------
Total Foreign Stocks & Other
Equity Interests (Cost
$100,479,547) 130,833,360
- --------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
<S> <C> <C>
REPURCHASE AGREEMENT-5.48%(C)
State Street Bank & Trust Co.,
4.70%, 07/01/99 (Cost
$8,263,000)(d) $8,263,000 $ 8,263,000
- --------------------------------------------------------------
TOTAL INVESTMENTS-92.21% 139,096,360
- --------------------------------------------------------------
OTHER ASSETS LESS LIABILITIES-7.79% 11,744,478
- --------------------------------------------------------------
NET ASSETS-100.00% $150,840,838
==============================================================
</TABLE>
Investment Abbreviations:
ADR - American Depositary Receipt
GDR - Global Depositary Receipt
Wts. - Warrants
Notes to Schedule of Investments:
(a) Non-income producing security.
(b) Security fair valued in accordance with procedures established by the Board
of Trustees.
(c) Collateral on repurchase agreements, including the Fund's pro-rata interest
in joint repurchase agreements, is taken into possession by the Fund upon
entering into the repurchase agreement. The collateral is marked to market
daily to ensure its market value is at least 102% of the sales price of the
repurchase agreement. The investments in some repurchase agreements are
through participation in joint accounts with other mutual funds, private
accounts and certain non-registered investment companies managed by the
investment advisor or its affiliates.
(d) Repurchase agreement entered into 06/30/99 with maturing value $8,264,079.
Collateralized by U.S. Government agency obligations.
See Notes to Financial Statements.
5
<PAGE> 8
STATEMENT OF ASSETS AND LIABILITIES
June 30, 1999
(Unaudited)
<TABLE>
<S> <C>
ASSETS:
Investments, at market value (cost
$108,742,547) $139,096,360
- ---------------------------------------------------------
Foreign currencies, at value (cost
$3,987,596) 3,959,796
- ---------------------------------------------------------
Receivables for:
Fund shares sold 9,262,324
- ---------------------------------------------------------
Dividends and interest 290,000
- ---------------------------------------------------------
Other assets 37,520
- ---------------------------------------------------------
Total assets 152,646,000
- ---------------------------------------------------------
LIABILITIES:
Payable for fund shares reacquired 1,306,893
- ---------------------------------------------------------
Accrued management fees 299,294
- ---------------------------------------------------------
Accrued distribution fees 122,808
- ---------------------------------------------------------
Accrued trustees' fees 1,500
- ---------------------------------------------------------
Accrued transfer agent fees 56,804
- ---------------------------------------------------------
Accrued operating expenses 17,863
- ---------------------------------------------------------
Total liabilities 1,805,162
- ---------------------------------------------------------
Net assets applicable to shares outstanding $150,840,838
- ---------------------------------------------------------
NET ASSETS:
Class A $110,296,100
=========================================================
Class B $ 39,292,562
=========================================================
Class C $ 32,145
=========================================================
Advisor Class $ 1,220,031
=========================================================
SHARES OUTSTANDING, $0.01 PAR VALUE PER
SHARE:
Class A 16,818,267
=========================================================
Class B 6,190,749
=========================================================
Class C 5,064
- ---------------------------------------------------------
Advisor Class 186,176
=========================================================
Class A:
Net asset value and redemption price per
share $ 6.56
- ---------------------------------------------------------
Offering price per share:
(Net asset value of $6.56
divided by 94.50%) $ 6.94
=========================================================
Class B:
Net asset value and offering price per
share $ 6.35
=========================================================
Class C:
Net asset value and offering price per
share $ 6.35
=========================================================
Advisor Class:
Net asset value, redemption and offering
price per share $ 6.55
=========================================================
</TABLE>
STATEMENT OF OPERATIONS
For the six months ended June 30, 1999
(Unaudited)
<TABLE>
<S> <C>
INVESTMENT INCOME:
Dividends (net of $170,012 foreign
withholding tax) $ 1,433,529
- ---------------------------------------------------------
Interest 146,039
- ---------------------------------------------------------
Security lending 49,771
- ---------------------------------------------------------
Total investment income 1,629,339
- ---------------------------------------------------------
EXPENSES:
Management fees 592,948
- ---------------------------------------------------------
Administrative services fees 17,719
- ---------------------------------------------------------
Custodian fees 36,007
- ---------------------------------------------------------
Distribution fees -- Class A 153,095
- ---------------------------------------------------------
Distribution fees -- Class B 165,646
- ---------------------------------------------------------
Distribution fees -- Class C 117
- ---------------------------------------------------------
Interest 51,371
- ---------------------------------------------------------
Trustees fees 4,043
- ---------------------------------------------------------
Transfer agent fees -- Class A 264,342
- ---------------------------------------------------------
Transfer agent fees -- Class B 100,104
- ---------------------------------------------------------
Transfer agent fees -- Class C 71
- ---------------------------------------------------------
Transfer agent fees -- Advisor Class 3,366
- ---------------------------------------------------------
Other 78,178
- ---------------------------------------------------------
Total expenses 1,467,007
- ---------------------------------------------------------
Less: Expenses waived by advisors (98,257)
- ---------------------------------------------------------
Expenses paid indirectly and expense
reductions (55,674)
- ---------------------------------------------------------
Net expenses 1,313,076
- ---------------------------------------------------------
Net investment income 316,263
- ---------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) FROM
INVESTMENT SECURITIES AND FOREIGN
CURRENCIES:
Net realized gain (loss) from:
Investment securities 9,575,982
- ---------------------------------------------------------
Foreign currencies (387,774)
- ---------------------------------------------------------
9,188,208
- ---------------------------------------------------------
Change in net unrealized appreciation
(depreciation) of:
Investment securities 25,523,659
- ---------------------------------------------------------
Foreign currencies (34,752)
- ---------------------------------------------------------
25,488,907
- ---------------------------------------------------------
Net gain from investment securities and
foreign currencies 34,677,115
- ---------------------------------------------------------
Net increase in net assets resulting from
operations $ 34,993,378
=========================================================
</TABLE>
See Notes to Financial Statements.
6
<PAGE> 9
STATEMENT OF CHANGES IN NET ASSETS
For the six months ended June 30, 1999 and the year ended December 31, 1998
(Unaudited)
<TABLE>
<CAPTION>
JUNE 30, DECEMBER 31,
1999 1998
------------ ------------
<S> <C> <C>
OPERATIONS:
Net investment income $ 316,263 $ 1,671,771
- --------------------------------------------------------------------------------------------
Net realized gain (loss) from investment securities and
foreign currencies 9,188,208 (40,073,782)
- --------------------------------------------------------------------------------------------
Change in net unrealized appreciation of investment
securities and foreign currencies 25,488,907 22,911,376
- --------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
operations 34,993,378 (15,490,635)
- --------------------------------------------------------------------------------------------
Distributions to shareholders from net investment income:
Class A -- (876,799)
- --------------------------------------------------------------------------------------------
Class B -- (89,061)
- --------------------------------------------------------------------------------------------
Advisor Class -- (19,770)
- --------------------------------------------------------------------------------------------
Share transactions-net:
Class A 3,100,304 (46,870,786)
- --------------------------------------------------------------------------------------------
Class B (832,744) (15,289,487)
- --------------------------------------------------------------------------------------------
Class C 11,079 --
- --------------------------------------------------------------------------------------------
Advisor Class (494,764) (415,164)
- --------------------------------------------------------------------------------------------
Net increase (decrease) in net assets 36,777,253 (79,051,702)
- --------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 114,063,585 193,115,287
- --------------------------------------------------------------------------------------------
End of period $150,840,838 $114,063,585
============================================================================================
NET ASSETS CONSIST OF:
Shares of beneficial interest $198,628,933 $196,845,058
- --------------------------------------------------------------------------------------------
Undistributed net investment income 293,877 (22,386)
- --------------------------------------------------------------------------------------------
Undistributed net realized gain (loss) from investment
securities, foreign currencies and option contracts (78,409,995) (87,598,203)
- --------------------------------------------------------------------------------------------
Unrealized appreciation of investment securities, foreign
currencies and option contracts 30,328,023 4,839,116
- --------------------------------------------------------------------------------------------
$150,840,838 $114,063,585
============================================================================================
</TABLE>
See Notes to Financial Statements.
7
<PAGE> 10
NOTES TO FINANCIAL STATEMENTS
June 30, 1999
(Unaudited)
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES
AIM New Pacific Growth Fund (the "Fund") is a separate series of AIM Growth
Series (the "Trust"). The Trust is organized as a Delaware business trust and is
registered under the Investment Company Act of 1940, as amended ("1940 Act"), as
an open-end series management investment company consisting of six separate
series portfolios, each having an unlimited number of shares of beneficial
interest. The Fund currently offers four different classes of shares: Class A
shares, Class B shares, Class C shares and Advisor Class shares. Class A shares
are sold with a front-end sales charge. Class B shares and Class C shares are
sold with a contingent deferred sales charge. Advisor Class shares are sold
without a sales charge. Effective March 1, 1999, the Fund has discontinued sales
of the Advisor Class shares to new investors. Matters affecting each portfolio
or class will be voted on exclusively by the shareholders of such portfolio or
class. The assets, liabilities and operations of each portfolio are accounted
for separately. Information presented in these financial statements pertains
only to the Fund. The Fund's investment objective is long-term growth of
capital.
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities 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 Fund in the preparation of the financial
statements.
A. Security Valuations-Each equity security is valued at its last sales price
on the exchange where the security is principally traded or, lacking any
sales on a particular day, the security is valued at the last available bid
price on that day. Each security reported on the NASDAQ National Market
System is valued at the last sales price on the valuation date or absent a
last sales price, at the last available bid price on that day. Debt
securities are valued on the basis of prices provided by an independent
pricing service. Prices provided by the pricing service may be determined
without exclusive reliance on quoted prices, and may reflect appropriate
factors such as institution-size trading in similar groups of securities,
developments related to special securities, yield, quality, coupon rate,
maturity, type of issue, individual trading characteristics and other market
data. Securities for which market prices are not provided by any of the
above methods are valued based upon quotes furnished by independent sources
and are valued at the last bid price in the case of equity securities and in
the case of debt obligations, the mean between the last bid and asked
prices. Securities for which market quotations are not readily available or
are questionable are valued at fair value as determined in good faith by or
under the supervision of the Trust's officers in a manner specifically
authorized by the Board of Trustees. Short-term obligations having 60 days
or less to maturity are valued on the basis of amortized cost. For purposes
of determining net asset value per share, futures and options contracts
generally will be valued 15 minutes after the close of trading of the New
York Stock Exchange ("NYSE").
Generally, trading in foreign securities, corporate bonds, U.S. Government
securities and money market instruments is substantially completed each day
at various times prior to the close of the NYSE. The values of such
securities used in computing the net asset value of the Fund's shares are
determined at such times. Foreign currency exchange rates are also generally
determined prior to the close of the NYSE. Occasionally, events affecting
the values of such securities and such exchange rates may occur between the
times at which such values are determined and the close of the NYSE, which
will not be reflected in the computation of the Fund's net asset value. If
events materially affecting the value of such securities occur during such
period, then these securities will be valued at their fair value as
determined in good faith by or under the supervision of the Board of
Trustees of the Trust.
B. Securities Transactions, Investment Income and Distributions-Securities
transactions are accounted for on a trade date basis. Realized gains or
losses on sales are computed on the basis of specific identification of the
securities sold. Interest income is recorded as earned from settlement date
and is recorded on the accrual basis. Dividend income and distributions to
shareholders are recorded on the ex-dividend date. Such, if any,
distributions are declared and paid annually.
C. Federal Income Taxes-The Fund intends to comply with the requirements of the
Internal Revenue Code necessary to qualify as a regulated investment company
and, as such, will not be subject to federal income taxes on otherwise
taxable income (including net realized capital gains) which is distributed
to shareholders. Therefore, no provision for federal income taxes is
recorded in the financial statements. The Fund has a capital loss
carryforward of $81,520,585 as of December 31, 1998 (which may be carried
forward to offset future taxable gains, if any) which expires, if not
previously utilized, in the year 2006.
D. Expenses-Distribution and transfer agency expenses directly attributable to
a class of shares are charged to that class' operations. All other expenses
are allocated among the classes.
NOTE 2-ADVISORY FEES AND OTHER TRANSACTIONS WITH AFFILIATES
A I M Advisors, Inc. ("AIM") is the Fund's investment manager and administrator.
The Fund pays AIM fees at an annual rate of 0.975% on the first $500 million of
the Fund's average daily net assets, plus 0.95% on the next $500 million of the
Fund's average daily net assets, plus 0.925% on the next $500 million of the
Fund's average daily net assets, plus 0.90% on the Fund's average daily net
assets exceeding $1.5 billion. AIM has contractually agreed to limit the Fund's
expenses (exclusive of brokerage commissions, taxes, interest, and extraordinary
expense) to the
8
<PAGE> 11
maximum annual rate of 2.00%, 2.65%, 2.65%, and 1.65% of the average daily net
assets of the Fund's Class A, Class B, Class C, and Advisor Class shares,
respectively. During the six months ended June 30, 1999, AIM waived fees of
$98,257.
A I M Fund Services, Inc. ("AFS") is the transfer agent of the Fund. The Fund,
pursuant to a transfer agency and service agreement, has agreed to pay AFS a fee
for providing transfer agency and shareholder services to the Fund. During the
six months ended June 30, 1999, AFS was paid $364,237 for such services.
The Trust has entered into master distribution agreements with A I M
Distributors, Inc. ("AIM Distributors") to serve as the distributor for the
Class A, Class B, Class C and Advisor Class shares of the Fund. The Trust has
adopted distribution plans pursuant to Rule 12b-1 under the 1940 Act with
respect to the Fund's Class A shares and Class C shares (the "Class A and C
Plan"), and the Fund's Class B shares (the "Class B Plan") (collectively, the
"Plans"). The Fund, pursuant to the Class A and C Plan, pays AIM Distributors
compensation at an annual rate of 0.35% of the average daily net assets of the
Class A shares and 1.00% of the average daily net assets of the Class C shares.
The Fund pursuant to the Class B Plan, pays AIM Distributors compensation at an
annual rate of 1.00% of the average daily net assets of the Class B shares. Of
these amounts, the Fund may pay a service fee of 0.25% of the average daily net
assets of the Class A, Class B or Class C shares to selected dealers and
financial institutions who furnish continuing personal shareholder services to
their customers who purchase and own the appropriate class of shares of the
Fund. Any amounts not paid as a service fee under the Plans would constitute an
asset-based sales charge. The Plans also impose a cap on the total sales
charges, including asset-based sales charges that may be paid by the respective
classes. During the six months ended June 30, 1999, the Class A, Class B and
Class C shares paid AIM Distributors $153,095, $165,646 and $117, respectively,
as compensation under the Plans.
AIM is the pricing and accounting agent for the Fund. The monthly fee for
these services paid to AIM is a percentage, not to exceed 0.03% annually, of a
Fund's average daily net assets. The annual fee rate is derived based on the
aggregate net assets of the funds which comprise the following investment
companies: AIM Growth Series, AIM Investment Funds, AIM Series Trust, G.T.
Global Variable Investment Series and G.T. Global Variable Investment Trust. The
fee is calculated at the rate of 0.03% of the first $5 billion of assets and
0.02% to the assets in excess of $5 billion. An amount is allocated to and paid
by each such fund based on its relative average daily net assets. Effective July
1, 1999, the Trust entered into a master administrative services agreement with
AIM, replacing the above pricing and accounting agreement. The Fund has agreed
to pay AIM for certain administrative costs incurred in providing accounting
services to the Fund.
AIM Distributors received commissions of $18,722 from sales of the Class A
shares of the Fund during the six months ended June 30, 1999. Such commissions
are not an expense of the Fund. They are deducted from, and are not included in,
the proceeds from sales of Class A shares. During the six months ended June 30,
1999, AIM Distributors received $1,287 in contingent deferred sales charges
imposed on redemptions of Fund shares. Certain officers and trustees of the
Trust are officers and directors of AIM, AIM Distributors and AFS.
NOTE 3-EXPENSE REDUCTIONS
During the six months ended June 30, 1999, the Fund received reductions in
custodian fees of $2,952 under an expense offset arrangement and AIM directed
certain portfolio trades to brokers who then paid $52,722 of the Fund's
expenses. The effect of the above arrangements resulted in reductions of the
Fund's total expenses of $55,674 during the six months ended June 30, 1999.
NOTE 4-TRUSTEES' FEES
Trustees' fees represent remuneration accrued to trustees who are not an
"interested person" of AIM.
NOTE 5-BANK BORROWINGS
The Fund, along with certain other funds advised and/or administered by AIM, has
lines of credit with BankBoston and State Street Bank & Trust Company. The
arrangements with the banks allow the Fund and certain other funds to borrow, on
a first come, first served basis, an aggregate maximum amount of $250,000,000.
The Fund is limited to borrowing up to 33 1/3% of the Fund's total assets.
Effective May 28, 1999, the above lines of credit were replaced by the Fund's
participation in a committed line of credit facility with a syndicate
administered by The Chase Manhattan Bank. The Fund may borrow up to the lesser
of (i) $975,000,000 or (ii) the limits set by its prospectus for borrowings. The
Fund and other funds advised by AIM which are parties to the line of credit may
borrow on a first come, first served basis. The funds which are party to the
line of credit are charged a commitment fee of 0.09% on the unused balance of
the committed line. The commitment fee is allocated among the funds based on
their respective average net assets for the period.
For the six months ended June 30, 1999, the average outstanding daily balance
of bank loans for the Fund was $1,858,210 with a weighted average interest rate
of 5.57%. Interest expense for the Fund for the six months ended June 30, 1999
was $51,371.
NOTE 6-PORTFOLIO SECURITIES LOANED
At June 30, 1999, securities with an aggregate value of $3,520,640 were on loan
to brokers. The loans were secured by cash collateral of $3,314,706 received by
the Fund. For the six months ended June 30, 1999, the Fund received fees of
$49,771 for securities lending.
For international securities, cash collateral is received by the Fund against
loaned securities in an amount at least equal to 105% of the market value of the
loaned securities at the inception of each loan. This collateral must be
maintained at not less than 103% of the market value of the loaned securities
during the period of the loan. For domestic securities, cash collateral is
received by the Fund 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 portion of high
quality short
9
<PAGE> 12
duration securities whose average effective duration is restricted to 120 days
or less.
NOTE 7-INVESTMENT SECURITIES
The aggregate amount of investment securities (other than short-term securities)
purchased and sold by the Fund during the six months ended June 30, 1999 was
$65,652,503 and $88,637,061, respectively.
The amount of unrealized appreciation (depreciation) of investment securities,
on a tax basis, as of June 30, 1999 is as follows:
<TABLE>
<S> <C>
Aggregate unrealized appreciation of investment
securities $31,077,262
- ---------------------------------------------------------------
Aggregate unrealized (depreciation) of investment
securities (1,096,532)
- ---------------------------------------------------------------
Net unrealized appreciation of investment
securities $29,980,730
===============================================================
</TABLE>
Cost of investments for tax purposes is $109,115,630.
NOTE 8-SHARE INFORMATION
Changes in the Fund's shares outstanding during six months ended June 30, 1999
and the year ended December 31, 1998 were as follows:
<TABLE>
<CAPTION>
JUNE 30, DECEMBER 31,
1999 1998
--------------------------- ------------------------------
SHARES AMOUNT SHARES AMOUNT
----------- ------------- ------------ ---------------
<S> <C> <C> <C> <C>
Sold:
Class A 92,221,458 $ 503,908,864 220,054,764 $ 1,179,166,766
- -----------------------------------------------------------------------------------
Class B 13,835,369 73,703,820 29,096,684 151,336,461
- -----------------------------------------------------------------------------------
Class C* 96,753 571,742 -- --
- -----------------------------------------------------------------------------------
Advisor Class 163,601 874,833 5,119,563 27,073,240
- -----------------------------------------------------------------------------------
Issued as
reinvestment of
dividends:
Class A -- -- 151,132 760,569
- -----------------------------------------------------------------------------------
Class B -- -- 15,481 77,283
- -----------------------------------------------------------------------------------
Advisor Class -- -- 3,439 17,402
- -----------------------------------------------------------------------------------
Reacquired:
Class A (90,979,824) (500,808,559) (225,597,779) (1,226,798,121)
- -----------------------------------------------------------------------------------
Class B (13,963,110) (74,536,564) (31,689,112) (166,703,231)
- -----------------------------------------------------------------------------------
Class C* (91,689) (560,664) -- --
- -----------------------------------------------------------------------------------
Advisor Class (248,294) (1,369,597) (5,082,992) (27,505,806)
- -----------------------------------------------------------------------------------
1,034,264 $ 1,783,875 (7,928,820) $ (62,575,437)
===================================================================================
</TABLE>
* Class C shares commenced sales May 3, 1999.
10
<PAGE> 13
NOTE 9-FINANCIAL HIGHLIGHTS
Shown below are the financial highlights for a share of Class A and Class B
outstanding during the six months ended June 30, 1999 and each of the years in
the five-year period ended December 31, 1998 for a share of Class C capital
stock outstanding during May 3, 1999 (date sales commenced) through June 30,
1999 and for a share of Advisor Class capital stock outstanding during the six
months ended June 30, 1999, each of the years in three-year period ended
December 31, 1998 and the period June 1, 1995 (date operations commenced)
through December 31, 1995.
<TABLE>
<CAPTION>
Class A
---------------------------------------------------------------
December 31,
June 30, ----------------------------------------------------
1999 1998(a) 1997(a) 1996(a) 1995(a) 1994
-------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 5.19 $ 6.48 $ 13.12 $ 12.47 $ 12.10 $ 15.86
- ------------------------------------------------------------ -------- -------- -------- -------- -------- --------
Income from investment operations:
Net investment income (loss) 0.02 0.06(b) 0.05 0.02 0.11 0.02
- ------------------------------------------------------------ -------- -------- -------- -------- -------- --------
Net realized and unrealized gain (loss) on investments 1.35 (1.30) (5.84) 2.44 0.79 (3.15)
- ------------------------------------------------------------ -------- -------- -------- -------- -------- --------
Net increase (decrease) from investment operations 1.37 (1.24) (5.79) 2.46 0.90 (3.13)
- ------------------------------------------------------------ -------- -------- -------- -------- -------- --------
Distributions to shareholders:
From net investment income -- (0.05) (0.03) -- (0.10) (0.01)
- ------------------------------------------------------------ -------- -------- -------- -------- -------- --------
From net realized gains -- -- (0.82) (1.81) (0.43) (0.62)
- ------------------------------------------------------------ -------- -------- -------- -------- -------- --------
Total distributions -- (0.05) (0.85) (1.81) (0.53) (0.63)
- ------------------------------------------------------------ -------- -------- -------- -------- -------- --------
Net asset value, end of period $ 6.56 $ 5.19 $ 6.48 $ 13.12 $ 12.47 $ 12.10
============================================================ ======== ======== ======== ======== ======== ========
Total return(c) 26.40% (19.09)% (44.24)% 20.04% 7.45% (19.73)%
============================================================ ======== ======== ======== ======== ======== ========
Ratios and supplemental data:
Net assets, end of period (in 000s) $110,296 $80,824 $135,807 $361,244 $383,722 $404,680
============================================================ ======== ======== ======== ======== ======== ========
Ratio of net investment income to average net assets 0.69%(d) 1.30% 0.41% 0.17% 0.91% 0.11%
============================================================ ======== ======== ======== ======== ======== ========
Ratio of expenses to average net assets, excluding interest
expense:
With fee waiver 2.00%(d) 2.00% 1.66% 1.86% 1.89% 1.81%
============================================================ ======== ======== ======== ======== ======== ========
Without fee waiver 2.16%(d) 2.40% 1.93% 1.99% 1.94% n/a
============================================================ ======== ======== ======== ======== ======== ========
Portfolio turnover rate 57% 96% 80% 93% 63% 87%
============================================================ ======== ======== ======== ======== ======== ========
</TABLE>
(a) These selected per share data were calculated based upon average shares
outstanding during the period.
(b) Includes reimbursement of Fund operating expenses per share of $0.02.
(c) Does not deduct sales charges and is not annualized for periods less than
one year.
(d) Ratios are annualized and based on average net assets of $88,207,996.
11
<PAGE> 14
NOTE 9-FINANCIAL HIGHLIGHTS (continued)
<TABLE>
<CAPTION>
Class C
--------
Class B May 3,
------------------------------------------------------------- 1999
December 31, through
June 30, -------------------------------------------------- June 30,
1999 1998(a) 1997(a) 1996(a) 1995(a) 1994 1999
-------- ------- ------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period $ 5.04 $ 6.28 $ 12.80 $ 12.29 $ 11.96 $ 15.79 $5.94
- ------------------------------- -------- ------- ------- -------- -------- -------- -----
Income from investment
operations:
Net investment income (loss) -- 0.03(b) (0.03) (0.06) 0.03 (0.06) --
- ------------------------------- -------- ------- ------- -------- -------- -------- -----
Net realized and unrealized
gain (loss) on investments 1.31 (1.26) (5.67) 2.38 0.75 (3.15) 0.41
- ------------------------------- -------- ------- ------- -------- -------- -------- -----
Net increase (decrease)
from investment
operations 1.31 (1.23) (5.70) 2.32 0.78 (3.21) 0.41
- ------------------------------- -------- ------- ------- -------- -------- -------- -----
Distributions to shareholders:
From net investment income -- (0.01) -- -- (0.02) -- --
- ------------------------------- -------- ------- ------- -------- -------- -------- -----
From net realized gains -- -- (0.82) (1.81) (0.43) (0.55) --
- ------------------------------- -------- ------- ------- -------- -------- -------- -----
Returns of capital -- -- -- -- -- (0.07) --
- ------------------------------- -------- ------- ------- -------- -------- -------- -----
Total distributions -- (0.01) (0.82) (1.81) (0.45) (0.62) --
- ------------------------------- -------- ------- ------- -------- -------- -------- -----
Net asset value, end of period $ 6.35 $ 5.04 $ 6.28 $ 12.80 $ 12.29 $ 11.96 $6.35
=============================== ======== ======= ======= ======== ======== ======== =====
Total return(c) 25.99% (19.55)% (44.65)% 19.28% 6.54% (20.30)% 6.90%
=============================== ======== ======= ======= ======== ======== ======== =====
Ratios and supplemental data:
Net assets, end of period (is
000s) $ 39,293 $31,837 $55,820 $151,805 $130,887 $120,171 $ 32
=============================== ======== ======= ======= ======== ======== ======== =====
Ratio of net investment income
(loss) to average net assets: 0.03%(d) 0.65% (0.24)% (0.48)% 0.26% (0.54)% 0.03%(d)
=============================== ======== ======= ======= ======== ======== ======== =====
Ratio of expenses to average
net assets, excluding
interest expense:
With fee waiver 2.65%(d) 2.65% 2.31% 2.51% 2.54% 2.46% 2.65%(d)
=============================== ======== ======= ======= ======== ======== ======== =====
Without fee waiver 2.81%(d) 3.05% 2.58% 2.64% 2.59% n/a 2.81%(d)
=============================== ======== ======= ======= ======== ======== ======== =====
Portfolio turnover rate 57% 96% 80% 93% 63% 87% 57%
=============================== ======== ======= ======= ======== ======== ======== =====
<CAPTION>
Advisor Class
------------------------------------------------
December 31,
June 30, -------------------------------------
1999(a) 1998(a) 1997(a) 1996(a) 1995(a)
-------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of
period $ 5.18 $ 6.45 $ 13.16 $12.45 $12.89
- ------------------------------- ------- ------- ------- ------ ------
Income from investment
operations:
Net investment income (loss) 0.03 0.08(b) 0.08 0.07 0.09
- ------------------------------- ------- ------- ------- ------ ------
Net realized and unrealized
gain (loss) on investments 1.34 (1.28) (5.89) 2.45 0.05
- ------------------------------- ------- ------- ------- ------ ------
Net increase (decrease)
from investment
operations 1.37 (1.20) (5.81) 2.52 0.14
- ------------------------------- ------- ------- ------- ------ ------
Distributions to shareholders:
From net investment income -- (0.07) (0.08) -- (0.15)
- ------------------------------- ------- ------- ------- ------ ------
From net realized gains -- -- (0.82) (1.81) (0.43)
- ------------------------------- ------- ------- ------- ------ ------
Returns of capital -- -- -- -- --
- ------------------------------- ------- ------- ------- ------ ------
Total distributions -- (0.07) (0.90) (1.81) (0.58)
- ------------------------------- ------- ------- ------- ------ ------
Net asset value, end of period $ 6.55 $ 5.18 $ 6.45 $13.16 $12.45
=============================== ======= ======= ======= ====== ======
Total return(c) 26.45% (18.51)% (44.26)% 20.56% 1.07%
=============================== ======= ======= ======= ====== ======
Ratios and supplemental data:
Net assets, end of period (is
000s) $ 1,220 $ 1,402 $ 1,488 $1,575 $ 935
=============================== ======= ======= ======= ====== ======
Ratio of net investment income
(loss) to average net assets: 1.03%(d) 1.65% 0.76% 0.52% 1.26%(e)
=============================== ======= ======= ======= ====== ======
Ratio of expenses to average
net assets, excluding
interest expense:
With fee waiver 1.65%(d) 1.65% 1.31% 1.51% 1.54%(e)
=============================== ======= ======= ======= ====== ======
Without fee waiver 1.81%(d) 2.05% 1.58% 1.64% 1.59%(e)
=============================== ======= ======= ======= ====== ======
Portfolio turnover rate 57% 96% 80% 93% 63%(e)
=============================== ======= ======= ======= ====== ======
</TABLE>
(a) These selected per share data were calculated based upon average shares
outstanding during the period.
(b) Includes reimbursement of Fund operating expenses per share of $0.02.
(c) Does not deduct sales charges and is not annualized for periods less than
one year.
(d) Ratios are annualized and based on average net assets of $33,403,816,
$72,468 and $1,123,394 for Class B, Class C and Advisor Class, respectively.
(e) Annualized.
12
<PAGE> 15
<TABLE>
<CAPTION>
BOARD OF TRUSTEES OFFICERS OFFICE OF THE FUND
<S> <C> <C>
C. Derek Anderson Robert H. Graham 11 Greenway Plaza
President, Plantagenet Capital Chairman and President Suite 100
Management, LLC (an investment Houston, TX 77046
partnership); Chief Executive Officer, Dana R. Sutton
Plantagenet Holdings, Ltd. Vice President and Treasurer INVESTMENT MANAGER
(an investment banking firm)
Samuel D. Sirko A I M Advisors, Inc.
Frank S. Bayley Vice President and Secretary 11 Greenway Plaza
Partner, law firm of Suite 100
Baker & McKenzie Melville B. Cox Houston, TX 77046
Vice President
Robert H. Graham SUB-ADVISOR
President and Chief Executive Officer, Gary T. Crum
A I M Management Group Inc. Vice President INVESCO Asia Limited
12/F, Three Exchange Square,
Arthur C. Patterson Carol F. Relihan 8 Connaught Place, Hong Kong
Managing Partner, Accel Partners Vice President
(a venture capital firm) TRANSFER AGENT
Mary J. Benson
Ruth H. Quigley Assistant Vice President and A I M Fund Services, Inc.
Private Investor Assistant Treasurer P.O. Box 4739
Houston, TX 77210-4739
Sheri Morris
Assistant Vice President and CUSTODIAN
Assistant Treasurer
State Street Bank and Trust Company
Nancy L. Martin 225 Franklin Street
Assistant Secretary Boston, MA 02110
Ofelia M. Mayo COUNSEL TO THE FUND
Assistant Secretary
Kirkpatrick & Lockhart LLP
Kathleen J. Pflueger 1800 Massachusetts Avenue, N.W.
Assistant Secretary Washington, D.C. 20036-1800
COUNSEL TO THE TRUSTEES
Paul, Hastings, Janofsky & Walker LLP
Twenty Third Floor
555 South Flower Street
Los Angeles, CA 90071
DISTRIBUTOR
A I M Distributors, Inc.
11 Greenway Plaza
Suite 100
Houston, TX 77046
</TABLE>
<PAGE> 16
THE AIM FAMILY OF FUNDS--Registered Trademark--
<TABLE>
<S> <C> <C>
GROWTH FUNDS MONEY MARKET FUNDS A I M Management Group Inc. has provided
AIM Aggressive Growth Fund(1) AIM Money Market Fund leadership in the mutual-fund industry
AIM Blue Chip Fund AIM Tax-Exempt Cash Fund since 1976 and managed approximately
AIM Capital Development Fund $121 billion in assets for more than 6.3
AIM Constellation Fund INTERNATIONAL GROWTH FUNDS million shareholders, including
AIM Dent Demographic Trends Fund AIM Advisor International Value Fund individual investors, corporate clients
AIM Large Cap Growth Fund AIM Asian Growth Fund and financial institutions, as of June
AIM Mid Cap Equity Fund(A) AIM Developing Markets Fund 30, 1999.
AIM Select Growth Fund AIM Europe Growth Fund The AIM Family of Funds--Registered
AIM Small Cap Growth Fund(B) AIM European Development Fund Trademark-- is distributed nationwide, and
AIM Small Cap Opportunities Fund AIM International Equity Fund AIM today is the 10th-largest mutual-fund
AIM Value Fund AIM Japan Growth Fund complex in the United States in assets
AIM Weingarten Fund AIM Latin American Growth Fund under management, according to Strategic
AIM New Pacific Growth Fund Insight, an independent mutual-fund
GROWTH & INCOME FUNDS monitor.
AIM Advisor Flex Fund GLOBAL GROWTH FUNDS
AIM Advisor Large Cap Value Fund AIM Global Aggressive Growth Fund
AIM Advisor Real Estate Fund AIM Global Growth Fund
AIM Balanced Fund
AIM Basic Value Fund(C) GLOBAL GROWTH & INCOME FUNDS
AIM Charter Fund AIM Global Growth & Income Fund
AIM Global Utilities Fund
INCOME FUNDS
AIM Floating Rate Fund GLOBAL INCOME FUNDS
AIM High Yield Fund AIM Emerging Markets Debt Fund(D)
AIM High Yield Fund II AIM Global Government Income Fund
AIM Income Fund AIM Global Income Fund
AIM Intermediate Government Fund AIM Strategic Income Fund
AIM Limited Maturity Treasury Fund
THEME FUNDS
TAX-FREE INCOME FUNDS AIM Global Consumer Products and Services Fund
AIM High Income Municipal Fund AIM Global Financial Services Fund
AIM Municipal Bond Fund AIM Global Health Care Fund
AIM Tax-Exempt Bond Fund of Connecticut AIM Global Infrastructure Fund
AIM Tax-Free Intermediate Fund AIM Global Resources Fund
AIM Global Telecommunications and Technology Fund(E)
AIM Global Trends Fund(F)
</TABLE>
(1) AIM Aggressive Growth Fund reopened to new investors November 16, 1998. (A)
On September 8, 1998, AIM Mid Cap Growth Fund was renamed AIM Mid Cap Equity
Fund. (B) On September 8, 1998, AIM Small Cap Equity Fund was renamed AIM Small
Cap Growth Fund. (C) On September 8, 1998, AIM America Value Fund was renamed
AIM Basic Value Fund. (D) On September 8, 1998, AIM Global High Income Fund was
renamed AIM Emerging Markets Debt Fund. (E) On June 1, 1999, AIM Global
Telecommunications Fund was renamed AIM Global Telecommunications and Technology
Fund. (F) On September 8, 1998, AIM New Dimension Fund was renamed AIM Global
Trends Fund. For more complete information about any AIM Fund(s), including
sales charges and expenses, ask your financial consultant or securities dealer
for a free prospectus(es). Please read the prospectus(es) carefully before you
invest or send money.
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