<PAGE> 1
SEMIANNUAL REPORT / JUNE 30 2000
AIM SMALL CAP GROWTH FUND
[COVER IMAGE]
[AIM LOGO APPEARS HERE]
--Registered Trademark--
<PAGE> 2
[ COVER IMAGE ]
-------------------------------------
REALITY BY G.G. KOPILAK
REALITY IS OFTEN NOT WHAT IS SEEN WITH THE EYES, BUT RATHER
WHAT IS PERCEIVED WITH THE SPIRIT. AIM SMALL CAP GROWTH
FUND SEEKS TO OWN THE STOCKS OF SMALL COMPANIES THAT WE
BELIEVE WILL FLOURISH IN THE MONTHS AND YEARS AHEAD --
LIKE ROSES ABOUT TO BLOOM.
-------------------------------------
AIM Small Cap Growth Fund is for shareholders who seek long-term growth of
capital. The fund invests in small companies with the potential for
above-average earnings growth.
ABOUT FUND PERFORMANCE AND PORTFOLIO DATA THROUGHOUT THIS REPORT:
o AIM Small Cap Growth Fund's performance figures are historical, and they
reflect the reinvestment of distributions and changes in net asset value.
o When sales charges are included in performance figures, Class A share
performance reflects the maximum 5.50% sales charge, and Class B share
performance reflects the applicable contingent deferred sales charge (CDSC)
for the period involved. The CDSC on Class B shares declines from 5%
beginning at the time of purchase to 0% at the beginning of the seventh
year. The CDSC on Class C shares is 1% for the first year after purchase.
The performance of the fund's Class B and Class C shares will differ from
that of its Class A shares due to different sales-charge structure and class
expenses.
o Investing in smaller companies may involve greater risk and potential reward
than investing in more established companies. Also, smaller companies may
have business risk, significant stock-price fluctuations and illiquidity
o The fund's investment return and principal value will fluctuate, so an
investor's shares, when redeemed, may be worth more or less than their
original cost.
ABOUT INDEXES AND OTHER PERFORMANCE BENCHMARKS CITED IN THIS REPORT:
o The unmanaged Dow Jones Industrial Average (the Dow) is a price-weighted
average of 30 actively traded primarily industrial stocks.
o The unmanaged Lipper Small Cap Growth Fund Index represents an average of
the performance of the 30 largest small-capitalization growth funds tracked
by Lipper, Inc., an independent mutual fund performance monitor.
o The unmanaged National Association of Securities Dealers Automated Quotation
System Composite Index (the Nasdaq) is a market-value-weighted index
comprising all domestic and non-U.S.-based common stocks listed on the
Nasdaq system. It includes more than 5,000 companies, and it is often
considered representative of the small and medium-sized company stock
universe. While it includes many small and mid-sized company stocks,
large-capitalization technology companies tend to dominate the index.
o The unmanaged Russell 2000 Index represents the performance of the stocks of
small-capitalization companies.
o The unmanaged Standard & Poor's MidCap 400 Index (the S&P 400) comprises the
common stocks of approximately 400 mid-capitalization companies.
o An investment cannot be made in an index. Unless otherwise indicated, index
results include reinvested dividends, and they do not reflect sales charges.
AN INVESTMENT IN THE FUND IS NOT A DEPOSIT OF A BANK AND IS NOT INSURED OR
GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY OTHER
GOVERNMENT AGENCY. THERE IS A RISK THAT YOU COULD LOSE SOME OR ALL OF
YOUR MONEY.
This report may be distributed only to current shareholders or to persons
who have received a current prospectus of the fund.
AIM SMALL CAP GROWTH FUND
<PAGE> 3
SEMIANNUAL REPORT / CHAIRMAN'S LETTER
Dear Fellow Shareholder:
When we started AIM in 1976, we had only a table, two chairs
[PHOTO OF and a telephone. At the time, Bob Graham, Gary Crum and I
Charles T. had the idea of creating a mutual fund company that put
Bauer, people first. Our slogan, "people are the product," means
Chairman of that people -- our employees and our investors -- are our
the Board of company.
THE FUND Almost a quarter-century later, we've grown to more than
APPEARS HERE] eight million investors, $176 billion in assets under
management and 53 retail funds. Over that time, the industry
[PHOTO OF as a whole has grown from $51 billion in assets to more than
Robert H. $7 trillion today. I never dreamed we would see such
Graham phenomenal growth. You are the main reason for our success,
APPEARS HERE] and I want you to know how much I appreciate your loyalty
and trust over the past 24 years.
Usually in this letter I review market activity during
the period covered by the report. This time, I'd just like
to say thank you. I am retiring as chairman of the AIM Funds effective September
30, and as chairman of AIM effective December 31, 2000. Bob Graham, whose
picture appears under mine, will succeed me as AIM's chairman and chairman of
the AIM Funds. Gary Crum will remain president of A I M Capital Management,
Inc., leading our investment division. I am enormously proud to leave AIM in
such capable hands.
I'm also very proud of our team of employees, now more than 2,500 strong.
Because of their collective commitment to excellence and ethical business
practices, AIM has earned the trust of investors and financial advisors alike.
And every employee, from portfolio managers to client services representatives,
is dedicated to serving our shareholders.
Rest assured that nothing at AIM will change because of my retirement. You
can still depend on this company to manage your money responsibly and provide
you with top-notch service. As chairman of AIM and chairman of the AIM Funds,
Bob is committed to preserving the things that have made AIM great in the past
and positioning it to succeed in the future. And Gary is dedicated to
maintaining the quality and long-term performance you've come to expect from
AIM.
In the pages that follow, the managers of your fund comment on recent market
activity, how they have managed your fund over the past six months and their
outlook for the coming months. We trust you will find their comments helpful.
If you have any questions or comments, please contact us through our Web
site, www.aimfunds.com, or call our Client Services department at 800-959-4246
during normal business hours. Information about your account is available at our
Web site and on our automated AIM Investor Line, 800-246-5463.
Thank you again for the support and trust you've shown us. I feel privileged
to have helped you with your financial goals, and I wish you success in all your
endeavors.
Sincerely,
/s/ CHARLES T. BAUER
Charles T. Bauer
Chairman, A I M Advisors, Inc.
AIM SMALL CAP GROWTH FUND
<PAGE> 4
SEMIANNUAL REPORT / MANAGERS' OVERVIEW
FUND POSTS IMPRESSIVE GAINS IN VOLATILE MARKET
SMALL-CAP STOCKS REGISTERED MODEST GAINS FOR THE REPORTING PERIOD. HOW DID AIM
SMALL CAP GROWTH FUND PERFORM?
Despite a steep market decline in April and May, the fund's performance was
excellent. Excluding sales charges, total returns were 27.58%, 27.14% and 27.08%
for Class A, Class B and Class C shares, respectively, for the six months ended
June 30, 2000. The fund significantly outperformed the Russell 2000 Index and
the Lipper Small Cap Growth Fund Index, which posted gains of 3.04% and 11.60%,
respectively, for the same period. Careful stock selection was a significant
factor in the fund's strong performance.
During the reporting period, the fund's net assets grew from $716 million to
$1 billion. The fund was closed to new investors on November 8, 1999, before the
reporting period started. The growth in total net assets can be attributed to
the increase in value of the fund's portfolio and to continued investments by
current shareholders.
WHAT WERE THE KEY TRENDS IN THE STOCK MARKET?
Markets soared, then declined before staging a comeback as the reporting period
drew to a close. During the first three months of 2000, several key market
indexes rose to new heights, with the Dow setting a record in January and the
technology-dominated Nasdaq following suit in March. High-flying technology
stocks helped propel these and other major indexes to new heights. Toward the
end of March, however, investors became concerned that tech stocks might be
overvalued, sparking a sharp sell-off in this sector. In April, a federal court
ruling against software giant Microsoft (not a fund holding) helped perpetuate
the sell-off. The stocks of Internet companies with no earnings were
particularly hard hit.
Investors were also concerned that the Federal Reserve Board (the Fed) might
continue to raise interest rates to slow torrid economic growth and to contain
inflation. On May 16, the Fed, which launched a monetary tightening policy in
June 1999, raised the key federal funds rate -- the rate banks charge one
another for overnight loans -- from 6.0% to 6.5%. Interest-rate concerns before
and after the Fed's action prompted a sell-off that affected nearly every
stock-market sector in April and May, causing markets to be extremely volatile.
Markets rallied in June as key economic data, such as housing starts and
retail sales, indicated that the economy might be slowing, diminishing the
possibility of further Fed rate hikes. At its June 28 meeting, the Fed left
interest rates unchanged. The June rally enabled the Nasdaq, which lost 37.3% of
its value between March 10 and May 23, to end the reporting period down only
2.54%.
While the Dow was down 8.44% for the six months ended June 30, the S&P
400 was up 9.06%, surpassing the gains of the Russell
GROWTH IN ASSETS
================================================================================
12/31/99 $716 million
6/30/00 $1.0 billion
================================================================================
================================================================================
FUND PERFORMANCE
TOTAL RETURNS OF
CLASS A, B AND C SHARES VS. INDEXES
12/31/99-6/30/00, excluding sales charges
================================================================================
FUND CLASS A SHARES 27.58%
FUND CLASS B SHARES 27.14%
FUND CLASS C SHARES 27.08%
RUSSELL 2000 INDEX 3.04%
LIPPER SMALL CAP GROWTH FUND INDEX 11.60%
================================================================================
RESULTS OF A $10,000 INVESTMENT
CLASS A AND B SHARES VS. INDEXES
10/18/95-6/30/00*
================================================================================
FUND CLASS A SHARES $38,638
FUND CLASS B SHARES $39,428
LIPPER SMALL CAP GROWTH FUND INDEX $25,116
RUSSELL 2000 INDEX $18,562
* Index performance is from 10/31/95-6/30/00.
Your fund's total return includes sales charges, expenses and management fees.
The performance of the fund's Class B and Class C shares will differ from that
of its Class A shares due to differing fees and expenses. For fund performance
calculations and descriptions of the indexes cited on this page, please see the
inside front cover. Past performance cannot guarantee comparable future results.
MARKET VOLATILITY CAN SIGNIFICANTLY IMPACT SHORT-TERM PERFORMANCE. RESULTS OF AN
INVESTMENT MADE TODAY MAY DIFFER SUBSTANTIALLY FROM THE HISTORICAL PERFORMANCE
SHOWN.
================================================================================
================================================================================
AVERAGE ANNUAL TOTAL RETURNS
As of 6/30/00, including sales charges
================================================================================
CLASS A SHARES
Inception (10/18/95) 33.31%
1 Year 73.82*
*83.93% excluding sales charges
CLASS B SHARES
Inception (10/18/95) 33.88%
1 Year 77.63*
*82.63% excluding CDSC
CLASS C SHARES
Inception (5/3/99) 90.00%
1 Year 81.57*
*82.57% excluding CDSC
================================================================================
See important fund and index disclosures inside front cover.
AIM SMALL CAP GROWTH FUND
2
<PAGE> 5
SEMIANNUAL REPORT / MANAGERS' OVERVIEW
2000. Investors generally favored the stocks of companies with tangible
earnings. In the small-cap stock universe, value stocks slightly outperformed
growth stocks, while in the large- and mid-cap stock categories, growth stocks
were the better performers.
WAS THE FUND ABLE TO TAKE ADVANTAGE OF THESE MARKET TRENDS?
Yes, because mid-, small- and micro-cap stocks, which recorded positive gains
for the reporting period, made up all the fund's stock portfolio. While small-
and micro-cap stocks made up 61% of the fund's holdings, mid-cap stocks, the
market leaders for the reporting period, made up the remaining 39%. Investors
gravitated to mid- and small-cap stocks because of their favorable valuations
compared to large-cap stocks and the attractive earnings prospects of small and
mid-sized companies. We also took advantage of the market sell-off in the spring
to buy the stocks of quality companies at reduced prices.
HOW WAS THE FUND POSITIONED AS OF JUNE 30?
At the end of the reporting period, the fund had 198 equity holdings. Technology
stocks made up about 47% of the portfolio. The fund's significant exposure to
the technology sector was a result of our stock-selection process, which is
based on earnings-growth prospects, not macroeconomic predictions. We continued
to find many companies with excellent earnings prospects in the technology
sector. Moreover, we generally do not buy the stocks of companies that have no
earnings. The fund also had relatively substantial weightings in the
consumer-goods, health-care and consumer-cyclical sectors.
WHAT WERE A FEW OF THE TECH STOCKS IN THE PORTFOLIO AT THE END OF THE REPORTING
PERIOD?
o Tollgrade Communications, the fund's largest holding, makes devices that
enable telephone and cable-television companies to diagnose problems in their
wireline systems from remote locations.
o Power-One makes power supplies that include AC/DC converters and voltage
power switchers used in communications, medical and other electronic equipment.
o Elantec Semiconductor makes a wide range of analog integrated circuits,
including amplifiers and transceivers.
o GlobeSpan makes integrated circuits that accelerate data transmissions over
copper-wire telephone networks.
o Keithley Instruments produces high-precision electrical measuring
instruments for the semiconductor and other industries to monitor production
quality.
o Art Technology Group makes software for developing Web applications and
provides Web-site design and consulting services.
WHAT OTHER STOCKS PERFORMED WELL FOR THE FUND?
o Anaren Microwave, a capital-goods company, makes microwave signaling devices
for satellite communications, defense electronics and wireless industries.
o Three-Five Systems, another capital-goods firm, makes liquid crystal
displays for cellular telephones and other devices.
o Silicon Valley Bancshares offers credit, currency exchange and other
services to technology and other companies.
WHAT IS YOUR OUTLOOK FOR THE NEAR TERM?
The near-term outlook for stocks could depend to a large extent on the Fed's
ability to bring the economy to a "soft landing." With increasing evidence that
economic growth could be slowing, the Fed may refrain from further interest-rate
increases. If Fed policy ultimately succeeds in slowing economic growth to a
more sustainable rate and in keeping inflation at bay, it could prolong the
current record economic expansion. Such an environment could help sustain
corporate growth and prove favorable for stocks.
However, uncertainty over the Fed's actions and other factors could
perpetuate the volatility that has characterized markets in recent months. In
such an environment, investors would be well advised to take a long-term
perspective on their investment.
PORTFOLIO COMPOSITION
As of 6/30/00, based on total net assets
<TABLE>
<CAPTION>
=============================================================================================
TOP 10 EQUITY HOLDINGS TOP 10 INDUSTRIES
---------------------------------------------------------------------------------------------
<S> <C> <C> <C>
1. Tollgrade Communications, Inc. 2.61% 1. Computers (Software & Services) 10.15%
2. Power-One, Inc. 2.36 2. Electronics (Semiconductors) 9.06
3. Elantec Semiconductor, Inc. 2.20 3. Communications Equipment 7.32
4. Anaren Microwave, Inc. 1.91 4. Electrical Equipment 6.76
5. GlobeSpan, Inc. 1.80 5. Electronics (Instrumentation) 4.86
6. Keithley Instruments, Inc. 1.63 6. Oil & Gas (Drilling & Equipment) 4.69
7. Three-Five Systems, Inc. 1.40 7. Computers (Peripherals) 4.34
8. Art Technology Group, Inc. 1.24 8. Electronics (Component Distributors) 3.53
9. Powerwave Technologies, Inc. 1.19 9. Telecommunications (Cellular/Wireless) 3.04
10. Polycom, Inc. 1.16 10. Equipment (Semiconductor) 2.74
The fund's portfolio composition is subject to change, and there is no assurance
that the fund will continue to hold any particular security.
=============================================================================================
</TABLE>
See important fund and index disclosures inside front cover.
AIM SMALL CAP GROWTH FUND
3
<PAGE> 6
SEMIANNUAL REPORT / FOR CONSIDERATION
CHASING PERFORMANCE MAY HURT MORE THAN IT HELPS
In the wake of some of last year's eye-popping mutual fund returns of more than
100%, it may be hard to look at your own returns and not feel disappointed.
According to Lipper, Inc.(1), the average large-cap core mutual fund finished
1999 up 22.35% -- a return that would be considered terrific in most other years
-- while the average science and technology fund had an astounding return of
134.77% for the year. Industry trends point to the fact that some investors have
looked at such performance and said, "My investments haven't had that kind of
return. I need to change my portfolio." What's an investor to do?
LOOK AT THE BIG PICTURE
It's very tempting to look only at returns when you invest in a mutual fund. But
there are other factors to consider:
o HOW WELL DOES THE FUND MATCH MY FINANCIAL GOALS?
Different kinds of mutual funds are appropriate for different people at
different stages. Are you a young adult early in your work life, or are you
approaching retirement? Are you investing to buy a house, car or other large
item soon, or are you investing for your later years?
If your investment plan has a rather long time horizon, you may be able to
invest more aggressively because you could have time to recoup should you
experience losses. If your needs are more immediate, you should assess how
aggressive you can afford to be -- you may need to be more conservative than you
thought to meet your goal.
o HOW WELL DOES THE FUND MATCH MY TOLERANCE FOR RISK?
Many of the mutual funds that had such high-flying returns for 1999 are pretty
aggressive, investing in smaller, less- established companies, some of which
have not even realized a profit. So while these mutual funds have the potential
to make your money grow, they may also entail more risk than you may be prepared
to take.
Of course, investing in any mutual fund brings with it a certain amount of
risk, but this risk can vary widely depending on the types of holdings in which
a fund invests. It's important that you take a hard look at your risk tolerance
before investing in any fund, particularly if you are ratcheting up to a more
aggressive fund.
o HOW WELL DOES THE FUND FIT INTO MY PORTFOLIO?
When a market sector or mutual fund is doing well, you may be tempted to
overload your portfolio with the "winner of the moment." It seems to make
sense -- you're making money with that investment, so you should allocate more
money to it, right?
Be careful. A narrowly invested portfolio could be especially vulnerable to
market volatility. Spreading your investment over several types of funds or
investing in one diversified fund can help you spread out your risk -- the more
diversified your portfolio, the less overlap it should have. Less overlap can
mean less risk.
PAST PERFORMANCE IS NO GUARANTEE
Last year's phenomenal returns were the result of a number of unique factors --
the strong U.S. economy, the proliferation of new technology companies and
record amounts of cash being poured into the stock market, to name a few. Even
so, it may seem that everyone came out a winner in 1999.
In reality, just a few large companies accounted for many of the markets'
records in 1999. More than half the stocks in the S&P 500(2) declined during the
year. The technology sector was clearly dominant -- the tech component of the
S&P 500 finished 1999 with a return of 75.11%, while the capital-goods component
of the index, which came in second for the year, had a return of 28.76%.(3) So
if you didn't invest in technology in 1999, you probably didn't enjoy the same
performance as people who did.
As we've seen thus far in 2000, financial markets can be quite fickle,
revolving around investors' perceptions as much as hard facts. Because of the
ever-changing nature of the market environment, many high-performing mutual
funds don't repeat their gains from year to year. This doesn't necessarily mean
that a fund had
SEC SPEAKS OUT
In the wake of 1999's extraordinary fund performances, the Securities and
Exchange Commission (the SEC), which regulates the mutual fund industry, says
that investors should temper their expectations and not make investment
decisions based only on past performance. The SEC also suggests that investors
consider the following factors when looking at a mutual fund:
[PIE CHART]
================================================================================
SEC SPEAKS OUT
In the wake of 1999's extraordinary fund performances, the Securities and
Exchange Commission (the SEC), which regulates the mutual fund industry, says
that investors should temper their expectations and not make investment
decisions based only on past performance. The SEC also suggests that investors
consider the following factors when looking at a mutual fund:
Age
Risk
Size
Volatility
Management
Expenses
Tax Efficiency
Source: The Wall Street Journal, 1/25/00
================================================================================
AIM SMALL CAP GROWTH FUND
4
<PAGE> 7
SEMIANNUAL REPORT / FOR CONSIDERATION
a "bad" year or that fund managers chose holdings poorly. It may just mean that
the environment for a particular fund was not as ideal as it had been in the
past. This can be true for any mutual fund.
KEEP EXPECTATIONS REALISTIC
Along with recognizing how quickly the market environment can change, it's
important to keep your expectations realistic. Of course you would like your
investments to do well every year, but chances are they won't. It's the nature
of the beast. So what you should be shooting for is good performance over the
long term. While your investment may not have a stellar year every year, over
time its average returns may prove to be just what you hoped for.
Sometimes it's hard to be patient when it seems like everyone else's
investments are doing better than yours. You may be tempted to chase winning
performance by trying to time the market, switching in and out of funds as
markets or sectors go in and out of favor. But this strategy can greatly
increase your risk and it rarely works -- you may end up with significantly
lower returns than if you'd just stayed put. (There can also be adverse tax
consequences.)
ASSET ALLOCATION: THE OLD STANDBY
The truth is, no one knows for sure what is going to perform well in the market,
which is why mutual fund investors should diversify using asset allocation --
spreading investments over several fund types (e.g., core, growth, international
and income). Unfortunately, some investors seem less interested in asset
allocation these days because they want to chase performance instead. And when
the market is roaring ahead, who can blame them?
But as Isaac Newton proved, what goes up must come down. A diversified
portfolio can offer some protection in a market downturn because when your
assets are spread over several different types of funds, chances are at least
one of them is keeping its head above water. And while a diversified fund
portfolio probably won't perform as well as the flashiest stock fund, it
probably won't do as badly as the worst of them either.
Your financial advisor can help you determine what kinds of mutual funds best
fit your investment goals and risk tolerance. Talk to your financial advisor for
more information.
(1) Lipper, Inc. is an independent mutual fund performance monitor.
(2) The unmanaged Standard & Poor's Composite Index of 500 Stocks (the S&P 500)
represents the performance of the stock market.
(3) Source: Bloomberg.
================================================================================
DOLLAR-COST AVERAGING CAN LOWER THE COST OF INVESTING
One useful way to buy shares of a mutual fund is through dollar-cost averaging.
In such a plan, you invest a certain amount at regular intervals -- say $200 per
month -- which allows you to buy more shares when mutual fund prices go down and
fewer shares when prices go up. This gives you the benefit of your average cost
per share actually being less than the average price per share.
Please keep in mind that this example is hypothetical and is not indicative of
the performance of any investment, IRA or AIM fund. Dollar-cost averaging does
not assure a profit and does not protect against loss in declining markets.
Since dollar-cost averaging involves continuous investing regardless of
fluctuating securities prices, investors should consider their ability to
continue purchases over an extended period of time.
For more complete information about any AIM fund(s), including sales charges and
expenses, ask your financial advisor or securities dealer for a free
prospectus(es). Please read the prospectus(es) carefully before you invest or
send money.
================================================================================
MONTH AMOUNT INVESTED SHARE PRICE SHARES PURCHASED
================================================================================
JANUARY $ 200 $ 24 8.333
FEBRUARY 200 20 10.000
MARCH 200 14 14.286
APRIL 200 18 11.111
MAY 200 22 9.091
JUNE 200 24 8.333
6-MONTH TOTAL $1,200 $122 61.154
================================================================================
Average price per share: $122 divided by 6 equals $20.33
Average cost per share: $1,200 divided by 61.154 equals $19.62
AIM SMALL CAP GROWTH FUND
5
<PAGE> 8
SCHEDULE OF INVESTMENTS
June 30, 2000
(Unaudited)
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
COMMON STOCKS & OTHER EQUITY
INTERESTS-91.38%
AEROSPACE/DEFENSE-0.16%
Primex Technologies, Inc. 75,000 $ 1,650,000
---------------------------------------------------------------
AIRLINES-0.18%
Frontier Airlines, Inc.(a) 125,000 1,789,062
---------------------------------------------------------------
BANKS (REGIONAL)-1.33%
Prosperity Bancshares, Inc. 40,000 645,000
---------------------------------------------------------------
Silicon Valley Bancshares(a) 200,000 8,525,000
---------------------------------------------------------------
Southwest Bancorp. of Texas, Inc.(a) 125,250 2,598,937
---------------------------------------------------------------
Whitney Holding Corp. 50,000 1,709,375
---------------------------------------------------------------
13,478,312
---------------------------------------------------------------
BIOTECHNOLOGY-1.20%
Albany Molecular Research, Inc.(a) 85,000 4,627,187
---------------------------------------------------------------
Aurora Biosciences Corp.(a) 60,000 4,091,250
---------------------------------------------------------------
Caliper Technologies Corp.(a) 75,000 3,450,000
---------------------------------------------------------------
12,168,437
---------------------------------------------------------------
BROADCASTING (TELEVISION, RADIO &
CABLE)-1.28%
Cox Radio, Inc.-Class A(a) 45,000 1,260,000
---------------------------------------------------------------
Entercom Communications Corp.(a) 60,000 2,925,000
---------------------------------------------------------------
Radio One, Inc.-Class A(a) 120,000 3,547,500
---------------------------------------------------------------
Radio One, Inc.-Class D(a) 240,000 5,295,000
---------------------------------------------------------------
13,027,500
---------------------------------------------------------------
BUILDING MATERIALS-0.12%
Simpson Manufacturing Co., Inc.(a) 25,000 1,195,312
---------------------------------------------------------------
CHEMICALS (SPECIALTY)-0.55%
Cambrex Corp. 50,000 2,250,000
---------------------------------------------------------------
OM Group, Inc. 75,000 3,300,000
---------------------------------------------------------------
5,550,000
---------------------------------------------------------------
COMMUNICATIONS EQUIPMENT-7.32%
Aspect Communications Corp.(a) 125,000 4,914,062
---------------------------------------------------------------
Avanex Corp.(a) 21,600 2,062,800
---------------------------------------------------------------
BreezeCom Ltd. (Israel)(a) 100,000 4,350,000
---------------------------------------------------------------
Digital Lightwave, Inc.(a) 100,000 10,050,000
---------------------------------------------------------------
Finisar Corp.(a) 104,700 2,741,831
---------------------------------------------------------------
Polycom, Inc.(a) 125,000 11,761,719
---------------------------------------------------------------
Proxim, Inc.(a) 50,000 4,948,437
---------------------------------------------------------------
REMEC, Inc.(a) 50,000 2,093,750
---------------------------------------------------------------
Tollgrade Communications, Inc.(a) 200,000 26,500,000
---------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
COMMUNICATIONS EQUIPMENT-(CONTINUED)
Tut Systems, Inc.(a) 85,000 $ 4,876,875
---------------------------------------------------------------
74,299,474
---------------------------------------------------------------
COMPUTERS (HARDWARE)-0.12%
Visual Networks, Inc.(a) 43,800 1,248,300
---------------------------------------------------------------
COMPUTERS (NETWORKING)-1.50%
Alteon Websystems, Inc.(a) 60,000 6,003,750
---------------------------------------------------------------
SonicWALL, Inc.(a) 105,000 9,246,610
---------------------------------------------------------------
15,250,360
---------------------------------------------------------------
COMPUTERS (PERIPHERALS)-4.34%
Actel Corp.(a) 175,000 7,984,375
---------------------------------------------------------------
Cybex Computer Products Corp.(a) 97,500 4,192,500
---------------------------------------------------------------
Media 100 Inc.(a) 200,000 5,150,000
---------------------------------------------------------------
M-Systems Flash Disk Pioneers
Ltd. (Israel)(a) 75,000 5,840,625
---------------------------------------------------------------
SanDisk Corp.(a) 160,000 9,790,000
---------------------------------------------------------------
Silicon Storage Technology,
Inc.(a) 125,000 11,039,062
---------------------------------------------------------------
43,996,562
---------------------------------------------------------------
COMPUTERS (SOFTWARE &
SERVICES)-10.15%
Allaire Corp.(a) 50,000 1,837,500
---------------------------------------------------------------
Art Technology Group, Inc.(a) 125,000 12,617,187
---------------------------------------------------------------
Brio Technology, Inc.(a) 40,000 847,500
---------------------------------------------------------------
Broadbase Software, Inc.(a) 120,000 3,675,000
---------------------------------------------------------------
Business Objects S.A.-ADR
(France)(a) 70,000 6,168,750
---------------------------------------------------------------
Commtouch Software Ltd.
(Israel)(a) 60,000 1,950,000
---------------------------------------------------------------
Digital Insight Corp.(a) 28,950 984,300
---------------------------------------------------------------
Documentum, Inc.(a) 50,000 4,468,750
---------------------------------------------------------------
Entrust Technologies Inc. 90,000 7,447,500
---------------------------------------------------------------
Geoworks Corp.(a) 75,000 1,181,250
---------------------------------------------------------------
Information Resource Engineering,
Inc.(a) 200,000 5,050,000
---------------------------------------------------------------
Integrated Measurement Systems,
Inc.(a) 175,000 2,756,250
---------------------------------------------------------------
ISS Group, Inc.(a) 35,000 3,455,703
---------------------------------------------------------------
Macromedia, Inc.(a) 10,000 966,875
---------------------------------------------------------------
Macrovision Corp.(a) 90,000 5,752,969
---------------------------------------------------------------
Mercator Software, Inc.(a) 60,000 4,125,000
---------------------------------------------------------------
Micromuse Inc.(a) 20,000 3,309,687
---------------------------------------------------------------
Natural MicroSystems Corp.(a) 50,000 5,621,875
---------------------------------------------------------------
NEON Systems, Inc.(a) 60,000 1,125,000
---------------------------------------------------------------
Netegrity, Inc.(a) 90,000 6,778,125
---------------------------------------------------------------
Radiant Systems, Inc.(a) 232,500 5,580,000
---------------------------------------------------------------
</TABLE>
6
<PAGE> 9
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
COMPUTERS (SOFTWARE & SERVICES)-(CONTINUED)
RadiSys Corp.(a) 75,000 $ 4,256,250
---------------------------------------------------------------
ScanSource, Inc.(a) 85,000 3,304,375
---------------------------------------------------------------
Scientific Learning Corp.(a) 50,000 1,106,250
---------------------------------------------------------------
StorageNetworks, Inc.(a) 3,900 351,975
---------------------------------------------------------------
WatchGuard Technologies, Inc.(a) 150,000 8,240,625
---------------------------------------------------------------
102,958,696
---------------------------------------------------------------
CONSUMER (JEWELRY, NOVELTIES & GIFTS)-0.11%
Fossil, Inc.(a) 60,000 1,166,250
---------------------------------------------------------------
CONSUMER FINANCE-0.29%
AmeriCredit Corp.(a) 125,000 2,125,000
---------------------------------------------------------------
Federal Agricultural Mortgage
Corp.-Class C(a) 57,000 830,062
---------------------------------------------------------------
2,955,062
---------------------------------------------------------------
DISTRIBUTORS (FOOD & HEALTH)-0.60%
Accredo Health, Inc.(a) 175,000 6,048,437
---------------------------------------------------------------
ELECTRICAL EQUIPMENT-6.76%
C & D Technologies, Inc. 100,000 5,650,000
---------------------------------------------------------------
Cohu, Inc. 50,000 1,348,438
---------------------------------------------------------------
CommScope, Inc.(a) 100,000 4,100,000
---------------------------------------------------------------
Cree, Inc.(a) 70,000 9,345,000
---------------------------------------------------------------
Helix Technology Corp. 80,000 3,120,000
---------------------------------------------------------------
KEMET Corp.(a) 170,000 4,260,625
---------------------------------------------------------------
Littelfuse, Inc.(a) 75,000 3,675,000
---------------------------------------------------------------
Merix Corp.(a) 200,000 9,400,000
---------------------------------------------------------------
Nanometrics Inc.(a) 50,000 2,059,375
---------------------------------------------------------------
Optimal Robotics Corp. (Canada)(a) 85,000 3,261,875
---------------------------------------------------------------
Rayovac Corp.(a) 65,000 1,454,375
---------------------------------------------------------------
Three-Five Systems, Inc.(a) 239,999 14,159,941
---------------------------------------------------------------
II-VI Inc.(a) 100,000 4,837,500
---------------------------------------------------------------
Viasystems Group, Inc.(a) 120,000 1,942,500
---------------------------------------------------------------
68,614,629
---------------------------------------------------------------
ELECTRONICS (COMPONENT
DISTRIBUTORS)-3.53%
C-COR.net Corp.(a) 275,000 7,425,000
---------------------------------------------------------------
Kent Electronics Corp.(a) 150,000 4,471,875
---------------------------------------------------------------
Power-One, Inc.(a) 210,000 23,926,875
---------------------------------------------------------------
35,823,750
---------------------------------------------------------------
ELECTRONICS (DEFENSE)-2.74%
Aeroflex Inc.(a) 170,000 8,446,875
---------------------------------------------------------------
Anaren Microwave, Inc.(a) 147,450 19,350,509
---------------------------------------------------------------
27,797,384
---------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
ELECTRONICS (INSTRUMENTATION)-4.86%
Alpha Industries, Inc.(a) 200,000 $ 8,812,500
---------------------------------------------------------------
Keithley Instruments, Inc. 190,000 16,553,750
---------------------------------------------------------------
Methode Electronics, Inc.-Class A 100,000 3,862,500
---------------------------------------------------------------
Photon Dynamics, Inc.(a) 75,000 5,601,563
---------------------------------------------------------------
Tektronix, Inc. 65,000 4,810,000
---------------------------------------------------------------
Varian Inc.(a) 210,000 9,686,250
---------------------------------------------------------------
49,326,563
---------------------------------------------------------------
ELECTRONICS (SEMICONDUCTORS)-9.06%
ANADIGICS, Inc.(a) 187,500 6,386,719
---------------------------------------------------------------
Dense-Pac Microsystems, Inc.(a) 250,000 2,718,750
---------------------------------------------------------------
Elantec Semiconductor, Inc.(a) 320,000 22,280,000
---------------------------------------------------------------
FEI Co.(a) 200,000 6,100,000
---------------------------------------------------------------
GlobeSpan, Inc.(a) 150,000 18,311,719
---------------------------------------------------------------
Metalink Ltd. (Israel)(a) 100,000 2,962,500
---------------------------------------------------------------
MIPS Technologies, Inc.-Class A(a) 85,000 3,612,500
---------------------------------------------------------------
PLX Technology, Inc.(a) 100,000 4,150,000
---------------------------------------------------------------
Power Integrations, Inc.(a) 100,000 2,356,250
---------------------------------------------------------------
QuickLogic Corp.(a) 175,000 3,893,750
---------------------------------------------------------------
S3 Inc.(a) 150,000 2,212,500
---------------------------------------------------------------
TelCom Semiconductor, Inc.(a) 50,000 2,018,750
---------------------------------------------------------------
TranSwitch Corp.(a) 65,075 5,022,977
---------------------------------------------------------------
Zoran Corp.(a) 150,000 9,890,625
---------------------------------------------------------------
91,917,040
---------------------------------------------------------------
EQUIPMENT (SEMICONDUCTOR)-2.74%
Advanced Energy Industries, Inc.(a) 50,000 2,946,875
---------------------------------------------------------------
Asyst Technologies, Inc.(a) 160,000 5,480,000
---------------------------------------------------------------
August Technology Corp.(a) 125,000 2,054,688
---------------------------------------------------------------
Brooks Automation, Inc.(a) 100,000 6,393,750
---------------------------------------------------------------
Credence Systems Corp.(a) 80,000 4,415,000
---------------------------------------------------------------
Kulicke & Soffa Industries, Inc.(a) 75,000 4,453,125
---------------------------------------------------------------
PSi Technologies Holdings,
Inc.-ADR (Philippines)(a) 100,000 2,075,000
---------------------------------------------------------------
27,818,438
---------------------------------------------------------------
FINANCIAL (DIVERSIFIED)-0.08%
Advanta Corp.-Class B 90,000 765,000
---------------------------------------------------------------
FOODS-0.84%
Hain Celestial Group, Inc.(a) 175,000 6,420,313
---------------------------------------------------------------
United Natural Foods, Inc.(a) 150,000 2,062,500
---------------------------------------------------------------
8,482,813
---------------------------------------------------------------
GAMING, LOTTERY & PARIMUTUEL
COMPANIES-0.53%
Pinnacle Entertainment, Inc.(a) 150,000 2,915,625
---------------------------------------------------------------
</TABLE>
7
<PAGE> 10
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
GAMING, LOTTERY & PARIMUTUEL
COMPANIES-(CONTINUED)
Station Casinos, Inc.(a) 100,000 $ 2,500,000
---------------------------------------------------------------
5,415,625
---------------------------------------------------------------
HEALTH CARE (DRUGS-GENERIC & OTHER)-1.34%
Anesta Corp.(a) 275,000 6,840,625
---------------------------------------------------------------
Barr Laboratories, Inc.(a) 17,700 793,181
---------------------------------------------------------------
Jones Pharma Inc. 42,300 1,689,356
---------------------------------------------------------------
Medecis Pharmaceutical
Corp.-Class A(a) 75,000 4,275,000
---------------------------------------------------------------
13,598,162
---------------------------------------------------------------
HEALTH CARE (HOSPITAL MANAGEMENT)-1.49%
LifePoint Hospitals, Inc.(a) 300,000 6,675,000
---------------------------------------------------------------
Province Healthcare Co.(a) 100,000 3,612,500
---------------------------------------------------------------
Triad Hospitals, Inc.(a) 200,000 4,837,500
---------------------------------------------------------------
15,125,000
---------------------------------------------------------------
HEALTH CARE (MEDICAL PRODUCTS &
SUPPLIES)-1.84%
Biosite Diagnostics Inc.(a) 100,000 4,818,750
---------------------------------------------------------------
BioSource International, Inc.(a) 150,000 3,337,500
---------------------------------------------------------------
EndoSonics Corp.(a) 300,000 1,687,500
---------------------------------------------------------------
PolyMedica Corp.(a) 90,000 3,892,500
---------------------------------------------------------------
Zoll Medical Corp.(a) 100,000 4,900,000
---------------------------------------------------------------
18,636,250
---------------------------------------------------------------
HEALTH CARE (SPECIALIZED
SERVICES)-2.27%
Aclara Biosciences Inc.(a) 100,000 5,093,750
---------------------------------------------------------------
Priority Healthcare Corp.-Class B(a) 110,000 8,174,375
---------------------------------------------------------------
Techne Corp.(a) 75,000 9,750,000
---------------------------------------------------------------
23,018,125
---------------------------------------------------------------
HOUSEWARES-0.22%
Salton, Inc.(a) 60,000 2,212,500
---------------------------------------------------------------
INVESTMENTS-0.38%
London Pacific Group Ltd.-ADR
(United Kingdom) 300,000 3,900,000
---------------------------------------------------------------
IRON & STEEL-0.09%
Gibraltar Steel Corp. 65,000 910,000
---------------------------------------------------------------
LEISURE TIME (PRODUCTS)-0.93%
Meade Instruments Corp.(a) 260,000 6,532,500
---------------------------------------------------------------
Zomax Inc.(a) 225,000 2,953,125
---------------------------------------------------------------
9,485,625
---------------------------------------------------------------
MANUFACTURING (DIVERSIFIED)-1.28%
Kopin Corp.(a) 140,000 9,695,000
---------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
MANUFACTURING (DIVERSIFIED)-(CONTINUED)
Spartech Corp. 100,000 $ 2,700,000
---------------------------------------------------------------
Uniroyal Technology Corp.(a) 53,500 591,844
---------------------------------------------------------------
12,986,844
---------------------------------------------------------------
MANUFACTURING (SPECIALIZED)-0.62%
Applied Science and Technology,
Inc.(a) 125,000 3,234,375
---------------------------------------------------------------
Dril-Quip, Inc.(a) 40,000 1,870,000
---------------------------------------------------------------
Summa Industries(a) 100,000 1,187,500
---------------------------------------------------------------
6,291,875
---------------------------------------------------------------
METAL FABRICATORS-0.58%
Shaw Group Inc. (The)(a) 125,000 5,890,625
---------------------------------------------------------------
NATURAL GAS-0.31%
Kinder Morgan, Inc. 90,000 3,110,625
---------------------------------------------------------------
OFFICE EQUIPMENT & SUPPLIES-0.26%
Miami Computer Supply Corp.(a) 100,000 2,587,500
---------------------------------------------------------------
OIL & GAS (DRILLING & EQUIPMENT)-4.69%
Cal Dive International, Inc.(a) 100,000 5,418,750
---------------------------------------------------------------
CARBO Ceramics Inc. 65,000 2,283,125
---------------------------------------------------------------
Core Laboratories N.V.
(Netherlands)(a) 60,000 1,740,000
---------------------------------------------------------------
GulfMark Offshore, Inc.(a) 50,000 1,225,000
---------------------------------------------------------------
Hanover Compressor Co.(a) 170,000 6,460,000
---------------------------------------------------------------
Key Energy Services, Inc.(a) 300,000 2,887,500
---------------------------------------------------------------
Marine Drilling Cos., Inc.(a) 200,000 5,600,000
---------------------------------------------------------------
Maverick Tube Corp.(a) 100,000 2,912,500
---------------------------------------------------------------
National-Oilwell, Inc.(a) 50,000 1,643,750
---------------------------------------------------------------
Pride International, Inc.(a) 250,000 6,187,500
---------------------------------------------------------------
Universal Compression Holdings,
Inc.(a) 125,000 4,187,500
---------------------------------------------------------------
UTI Energy Corp.(a) 175,000 7,021,875
---------------------------------------------------------------
47,567,500
---------------------------------------------------------------
OIL & GAS (EXPLORATION & PRODUCTION)-1.48%
Evergreen Resources, Inc.(a) 110,000 3,258,750
---------------------------------------------------------------
Louis Dreyfus Natural Gas Corp.(a) 125,000 3,914,063
---------------------------------------------------------------
Newfield Exploration Co.(a) 125,000 4,890,625
---------------------------------------------------------------
Stone Energy Corp.(a) 50,000 2,987,500
---------------------------------------------------------------
15,050,938
---------------------------------------------------------------
PHOTOGRAPHY/IMAGING-0.73%
Concord Camera Corp.(a) 100,000 2,087,500
---------------------------------------------------------------
Pinnacle Systems, Inc.(a) 235,000 5,283,828
---------------------------------------------------------------
7,371,328
---------------------------------------------------------------
RESTAURANTS-1.37%
P.F. Chang's China Bistro, Inc.(a) 150,000 4,790,625
---------------------------------------------------------------
</TABLE>
8
<PAGE> 11
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
RESTAURANTS-(CONTINUED)
RARE Hospitality International,
Inc.(a) 175,000 $ 4,943,750
---------------------------------------------------------------
Sonic Corp.(a) 115,000 3,378,125
---------------------------------------------------------------
Taco Cabana, Inc.-Class A(a) 125,000 828,125
---------------------------------------------------------------
13,940,625
---------------------------------------------------------------
RETAIL (COMPUTERS & ELECTRONICS)-1.13%
Tweeter Home Entertainment Group,
Inc.(a) 200,000 6,075,000
---------------------------------------------------------------
Ultimate Electronics, Inc.(a) 200,000 5,359,375
---------------------------------------------------------------
11,434,375
---------------------------------------------------------------
RETAIL (DISCOUNTERS)-0.24%
99 Cents Only Stores(a) 60,000 2,392,500
---------------------------------------------------------------
RETAIL (FOOD CHAINS)-0.24%
Whole Foods Market, Inc.(a) 60,000 2,478,750
---------------------------------------------------------------
RETAIL (SPECIALTY)-0.80%
Footstar, Inc.(a) 50,000 1,662,500
---------------------------------------------------------------
Hollywood Entertainment Corp.(a) 250,000 1,968,750
---------------------------------------------------------------
Michaels Stores, Inc.(a) 50,000 2,290,625
---------------------------------------------------------------
Rent-Way, Inc.(a) 75,000 2,189,063
---------------------------------------------------------------
8,110,938
---------------------------------------------------------------
RETAIL (SPECIALTY-APPAREL)-2.21%
Braun's Fashions Corp.(a) 150,000 5,503,125
---------------------------------------------------------------
Chico's FAS, Inc.(a) 175,000 3,500,000
---------------------------------------------------------------
Children's Place Retail Stores,
Inc. (The)(a) 102,000 2,091,000
---------------------------------------------------------------
Factory 2-U Stores Inc.(a) 115,000 4,348,438
---------------------------------------------------------------
Too Inc.(a) 275,000 6,995,313
---------------------------------------------------------------
22,437,876
---------------------------------------------------------------
SERVICES (ADVERTISING/MARKETING)-0.13%
Professional Detailing, Inc.(a) 40,000 1,362,500
---------------------------------------------------------------
SERVICES (COMMERCIAL & CONSUMER)-1.64%
Championship Auto Racing Teams,
Inc.(a) 70,000 1,785,000
---------------------------------------------------------------
Copart, Inc.(a) 160,000 2,560,000
---------------------------------------------------------------
Corporate Executive Board Co.
(The)(a) 50,000 2,993,750
---------------------------------------------------------------
F.Y.I. Inc.(a) 80,000 2,695,000
---------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
SERVICES (COMMERCIAL & CONSUMER)-(CONTINUED)
Iron Mountain Inc.(a) 59,150 $ 2,011,100
---------------------------------------------------------------
viaLink Co. (The)(a) 200,000 2,062,500
---------------------------------------------------------------
Wireless Facilities, Inc.(a) 50,000 2,546,875
---------------------------------------------------------------
16,654,225
---------------------------------------------------------------
SERVICES (EMPLOYMENT)-0.69%
On Assignment, Inc.(a) 100,000 3,050,000
---------------------------------------------------------------
ProBusiness Services, Inc.(a) 150,000 3,984,375
---------------------------------------------------------------
7,034,375
---------------------------------------------------------------
TELECOMMUNICATIONS
(CELLULAR/WIRELESS)-3.04%
AirGate PCS, Inc.(a) 100,000 5,256,250
---------------------------------------------------------------
Powerwave Technologies, Inc.(a) 275,000 12,100,000
---------------------------------------------------------------
Rural Cellular Corp.-Class A(a) 125,000 9,570,313
---------------------------------------------------------------
SBA Communications Corp.(a) 75,000 3,895,313
---------------------------------------------------------------
30,821,876
---------------------------------------------------------------
TELECOMMUNICATIONS (LONG DISTANCE)-0.49%
Primus Telecommunications Group,
Inc.(a) 200,000 4,975,000
---------------------------------------------------------------
TEXTILES (APPAREL)-0.15%
Quicksilver, Inc.(a) 100,000 1,556,250
---------------------------------------------------------------
TRUCKS & PARTS-0.35%
Mobile Mini, Inc.(a) 160,000 3,530,000
---------------------------------------------------------------
Total Common Stocks & Other
Equity Interests (Cost
$528,803,577) 927,215,193
---------------------------------------------------------------
MONEY MARKET FUNDS-8.84%
STIC Liquid Assets Portfolio(b) 44,827,722 44,827,722
---------------------------------------------------------------
STIC Prime Portfolio(b) 44,827,722 44,827,722
---------------------------------------------------------------
Total Money Market Funds
(Cost $89,655,444) 89,655,444
---------------------------------------------------------------
TOTAL INVESTMENTS-100.22%
(Cost $618,459,021) 1,016,870,637
---------------------------------------------------------------
LIABILITIES LESS OTHER
ASSETS-(0.22%) (2,238,422)
---------------------------------------------------------------
NET ASSETS-100.00% $1,014,632,215
===============================================================
</TABLE>
Investment Abbreviations:
ADR - American Depositary Receipt
Notes to Schedule of Investments:
(a) Non-income producing security.
(b) The money market fund has the same investment advisor as the Fund.
See Notes to Financial Statements.
9
<PAGE> 12
STATEMENT OF ASSETS AND LIABILITIES
June 30, 2000
(Unaudited)
<TABLE>
<S> <C>
ASSETS:
Investments, at market value (cost
$618,459,021) $1,016,870,637
----------------------------------------------------------
Receivables for:
Investments sold 844,244
----------------------------------------------------------
Collateral for securities loaned 81,390,748
----------------------------------------------------------
Fund shares sold 1,178,288
----------------------------------------------------------
Dividends 484,014
----------------------------------------------------------
Total assets 1,100,767,931
----------------------------------------------------------
LIABILITIES:
Payables for:
Investments purchased 2,151,300
----------------------------------------------------------
Collateral upon return of securities
loaned 81,390,748
----------------------------------------------------------
Fund shares reacquired 869,403
----------------------------------------------------------
Accrued advisory fees 553,654
----------------------------------------------------------
Accrued administrative services fees 10,928
----------------------------------------------------------
Accrued distribution fees 735,831
----------------------------------------------------------
Accrued transfer agent fees 135,143
----------------------------------------------------------
Accrued operating expenses 288,709
----------------------------------------------------------
Total liabilities 86,135,716
----------------------------------------------------------
Net assets applicable to shares
outstanding $1,014,632,215
==========================================================
NET ASSETS:
Class A $ 652,064,361
==========================================================
Class B $ 308,012,428
==========================================================
Class C $ 54,555,426
==========================================================
SHARES OUTSTANDING, $0.01 PAR VALUE PER
SHARE:
Class A 16,038,178
==========================================================
Class B 7,836,258
==========================================================
Class C 1,388,762
==========================================================
Class A:
Net asset value and redemption price per
share $ 40.66
----------------------------------------------------------
Offering price per share:
(Net asset value of $40.66 divided
by 94.50%) $ 43.03
==========================================================
Class B:
Net asset value and offering price per
share $ 39.31
==========================================================
Class C:
Net asset value and offering price per
share $ 39.28
==========================================================
</TABLE>
STATEMENT OF OPERATIONS
For the six months ended June 30, 2000
(Unaudited)
<TABLE>
<S> <C>
INVESTMENT INCOME:
Dividends $ 2,547,863
---------------------------------------------------------
Interest 7,683
---------------------------------------------------------
Security lending 327,600
---------------------------------------------------------
Total investment income 2,883,146
---------------------------------------------------------
EXPENSES:
Advisory and administrative fees 3,195,633
---------------------------------------------------------
Accounting services fee 65,608
---------------------------------------------------------
Custodian fees 31,750
---------------------------------------------------------
Distribution fees -- Class A 983,353
---------------------------------------------------------
Distribution fees -- Class B 1,412,838
---------------------------------------------------------
Distribution fees -- Class C 245,653
---------------------------------------------------------
Transfer agent fees 594,599
---------------------------------------------------------
Trustee's fees 12,375
---------------------------------------------------------
Other 174,753
---------------------------------------------------------
Total expenses 6,716,562
---------------------------------------------------------
Less: Fees waived and expenses reimbursed
by advisor (280,958)
---------------------------------------------------------
Expenses paid indirectly (17,200)
---------------------------------------------------------
Net expenses 6,418,404
---------------------------------------------------------
Net investment income (loss) (3,535,258)
---------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENT SECURITIES AND FUTURES
CONTRACTS:
Net realized gain from:
Investment securities 40,185,100
---------------------------------------------------------
Futures contracts 2,637,050
---------------------------------------------------------
42,822,150
---------------------------------------------------------
Change in net unrealized appreciation
(depreciation) of:
Investment securities 166,324,455
---------------------------------------------------------
Futures contracts (971,250)
---------------------------------------------------------
165,353,205
---------------------------------------------------------
Net gain on investment securities and
futures contracts 208,175,355
---------------------------------------------------------
Net increase in net assets resulting from
operations $204,640,097
=========================================================
</TABLE>
See Notes to Financial Statements.
10
<PAGE> 13
STATEMENT OF CHANGES IN NET ASSETS
For the six months ended June 30, 2000 and the year ended December 31, 1999
(Unaudited)
<TABLE>
<CAPTION>
JUNE 30, DECEMBER 31,
2000 1999
-------------- ------------
<S> <C> <C>
OPERATIONS:
Net investment income (loss) $ (3,535,258) $ (1,642,461)
----------------------------------------------------------------------------------------------
Net realized gain from investment securities and futures
contracts 42,822,150 13,123,263
----------------------------------------------------------------------------------------------
Change in net unrealized appreciation of investment
securities and futures contracts 165,353,205 223,271,546
----------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 204,640,097 234,752,348
----------------------------------------------------------------------------------------------
Distributions to shareholders from net realized gains:
Class A -- (6,938,952)
----------------------------------------------------------------------------------------------
Class B -- (4,091,568)
----------------------------------------------------------------------------------------------
Class C -- (691,265)
----------------------------------------------------------------------------------------------
Advisor Class -- (114,504)
----------------------------------------------------------------------------------------------
Share transactions-net:
Class A 97,006,167 270,390,201
----------------------------------------------------------------------------------------------
Class B 2,484,192 136,647,909
----------------------------------------------------------------------------------------------
Class C 2,689,577 30,105,480
----------------------------------------------------------------------------------------------
Advisor Class* (8,248,641) 3,770,311
----------------------------------------------------------------------------------------------
Net increase in net assets 298,571,392 663,829,960
==============================================================================================
NET ASSETS:
Beginning of period 716,060,823 52,230,863
----------------------------------------------------------------------------------------------
End of period $1,014,632,215 $716,060,823
==============================================================================================
NET ASSETS CONSIST OF:
Shares of beneficial interest $ 577,740,536 $483,809,241
----------------------------------------------------------------------------------------------
Undistributed net investment income (loss) (3,536,582) (1,324)
----------------------------------------------------------------------------------------------
Undistributed net realized gain (loss) from investment
securities and futures contracts 42,016,645 (805,505)
----------------------------------------------------------------------------------------------
Unrealized appreciation of investment securities and
futures contracts 398,411,616 233,058,411
----------------------------------------------------------------------------------------------
$1,014,632,215 $716,060,823
==============================================================================================
</TABLE>
* Advisor Class shares were converted to Class A shares effective as of the
close of business on February 11, 2000.
See Notes to Financial Statements.
11
<PAGE> 14
NOTES TO FINANCIAL STATEMENTS
June 30, 2000
(Unaudited)
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES
AIM Small Cap 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 (the "1940
Act"), as an open-end series management investment company consisting of five
separate series portfolios, each having an unlimited number of shares of
beneficial interest. The Fund consists of three different classes of shares:
Class A shares, Class B shares and Class C shares. The Fund formerly offered
Advisor Class shares; however, as of the close of business on February 11, 2000,
the Advisor Class shares were converted to Class A 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. Effective November 8, 1999, the Fund
discontinued sales of its 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 Fund
invests substantially all of its investable assets in Small Cap Portfolio (the
"Portfolio"). The Portfolio is organized as a Delaware business trust which is
registered under the 1940 Act as an open-end management investment company.
The Portfolio has investment objectives, policies and limitations
substantially identical to those of the Fund. Therefore, the financial
statements of the Fund and Portfolio have been presented on a consolidated
basis, and represent all activities of both the Fund and Portfolio. Through June
30, 2000, all of the shares of beneficial interest of the Portfolio were owned
by either the Fund or INVESCO (NY) Asset Management, Inc., which has a nominal
($100) investment in the Portfolio.
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenses during
the reporting period. Actual results could differ from those estimates. The
following is a summary of the significant accounting policies followed by the
Fund and the Portfolio in the preparation of its financial statements.
A. Security Valuations -- A security listed or traded on an exchange (except
convertible bonds) is valued at its last sales price as of the close of the
customary trading session on the exchange where the security is principally
traded, or lacking any sales on a particular day, the security is valued at
the closing bid price on that day. Each security reported on the NASDAQ
National Market System is valued at the last sales price as of the close of
the customary trading session on the valuation date or absent a last sales
price, at the closing bid price. Debt obligations (including convertible
bonds) are valued on the basis of prices provided by an independent pricing
service. Prices provided by the pricing service may be determined without
exclusive reliance on quoted prices, and may reflect appropriate factors such
as yield, type of issue, coupon rate and maturity date. Securities for which
market prices are not provided by any of the above methods are valued based
upon quotes furnished by independent sources and are valued at the last bid
price in the case of equity securities and in the case of debt obligations,
the mean between the last bid and asked prices. Securities for which market
quotations are not readily available or are questionable are valued at fair
value as determined in good faith by or under the supervision of the Trust's
officers in a manner specifically authorized by the Board of Trustees.
Short-term obligations having 60 days or less to maturity are valued at
amortized cost which approximates market value. For purposes of determining
net asset value per share, futures and option contracts generally will be
valued 15 minutes after the close of the customary trading session of the New
York Stock Exchange ("NYSE").
Generally, trading in foreign securities is substantially completed each
day at various times prior to the close of the NYSE. The values of such
securities used in computing the net asset value of the Fund's shares are
determined as of such times. Foreign currency exchange rates are also
generally determined prior to the close of the NYSE. Occasionally, events
affecting the values of such securities and such exchange rates may occur
between the times at which they are determined and the close of the customary
trading session of the NYSE which would not be reflected in the computation
of the Fund's net asset value. If events materially affecting the value of
such securities occur during such period, then these securities will be
valued at their fair value as determined in good faith by or under the
supervision of the Board of Trustees.
B. Securities Transactions and Investment Income -- Securities transactions are
accounted for on a trade date basis. Realized gains or losses on sales are
computed on the basis of specific identification of the securities sold.
Interest income is recorded on the accrual basis from settlement date.
Dividend income is recorded on the ex-dividend date.
C. Distributions -- Distributions from income and net realized capital gains, if
any, are generally paid annually and recorded on ex-dividend date. The Fund
may elect to use a portion of the proceeds from redemptions as distributions
for federal income tax purposes.
D. Federal Income Taxes -- The Fund intends to comply with the requirements of
the Internal Revenue Code necessary to qualify as a regulated investment
company and, as such, will not be subject to federal income taxes on
otherwise taxable income (including net realized capital gains) which is
distributed to
12
<PAGE> 15
shareholders. Therefore, no provision for federal income taxes is recorded in
the financial statements.
E. Futures Contracts -- The Portfolio may purchase or sell futures contracts as
a hedge against changes in market conditions. Initial margin deposits
required upon entering into futures contracts are satisfied by the
segregation of specific securities as collateral for the account of the
broker (the Portfolio's agent in acquiring the futures position). During the
period the futures contracts are open, changes in the value of the contracts
are recognized as unrealized gains or losses by "marking to market" on a
daily basis to reflect the market value of the contracts at the end of each
day's trading. Variation margin payments are made or received depending upon
whether unrealized gains or losses are incurred. When the contracts are
closed, the Portfolio recognizes a realized gain or loss equal to the
difference between the proceeds from, or cost of, the closing transaction and
the Portfolio's basis in the contract. Risks include the possibility of an
illiquid market and that a change in value of the contracts may not correlate
with changes in the value of the securities being hedged.
F. Expenses -- Distribution expenses directly attributable to a class of shares
are charged to that class' operations. All other expenses which are
attributable to more than one class are allocated among the classes.
NOTE 2-ADVISORY FEES AND OTHER TRANSACTIONS WITH AFFILIATES
A I M Advisors, Inc. ("AIM") is the Fund's and the Portfolio's investment
manager and administrator. The Fund pays AIM administration fees at an
annualized rate of 0.25% of the Fund's average daily net assets. The Portfolio
pays AIM investment management and administration fees at an annual rate of
0.475% on the first $500 million of the Portfolio's average daily net assets,
plus 0.45% on the next $500 million of the Portfolio's average daily net assets,
plus 0.425% on the next $500 million of the Portfolio's average daily net
assets, plus 0.40% on the Portfolio'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, extraordinary items and increases in
expenses due to expense offset arrangements, if any) to the maximum annual rate
of 1.75%, 2.40% and 2.40% of the average daily net assets of the Fund's Class A,
Class B and Class C shares, respectively.
The Fund, pursuant to a master administrative services agreement with AIM, has
agreed to pay AIM for certain administrative costs incurred in providing
accounting services to the Fund. For the six months ended June 30, 2000, AIM was
paid $65,608 for such services.
The Fund, pursuant to a transfer agency and service agreement, has agreed to
pay A I M Fund Services, Inc. ("AFS") a fee for providing transfer agency and
shareholder services to the Fund. For the six months ended June 30, 2000, AFS
was paid $343,660 for such services.
The Trust has entered into master distribution agreements with A I M
Distributors, Inc. ("AIM Distributors") to serve as the distributor for the
Class A, Class B and Class C shares of the Fund. The Trust has adopted plans
pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund's Class A
shares, Class B shares and Class C shares (collectively the "Plans"). The Fund,
pursuant to the Plans, pays AIM Distributors compensation at the annual rate of
0.35% of the Fund's average daily net assets of Class A shares and 1.00% of the
average daily net assets of Class B and C shares. Of these amounts, the Fund may
pay a service fee of 0.25% of the average daily net assets of the Class A, Class
B or Class C shares to selected dealers and financial institutions who furnish
continuing personal shareholder services to their customers who purchase and own
the appropriate class of shares of the Fund. Any amounts not paid as a service
fee under the Plans would constitute an asset-based sales charge. The Plans also
impose a cap on the total sales charges, including asset-based sales charges
that may be paid by the respective classes. AIM Distributors has agreed to limit
the Class A shares plan payments to 0.25%. For the six months ended June 30,
2000, the Class A, Class B and Class C shares paid AIM Distributors $702,395,
$1,412,838 and $245,653, respectively, as compensation under the Plans. AIM
Distributors waived distribution fees of $280,958 for Class A shares during the
period.
AIM Distributors received commissions of $86,019 from sales of the Class A
shares of the Fund during the six months ended June 30, 2000. Such commissions
are not an expense of the Fund. They are deducted from, and are not included in,
the proceeds from sales of Class A shares. During the six months ended June 30,
2000, AIM Distributors received $6,383 in contingent deferred sales charges
imposed on redemptions of Fund shares.
Certain officers and trustees of the Trust are officers and directors of AIM,
AFS and AIM Distributors.
NOTE 3-INDIRECT EXPENSES
For the six months ended June 30, 2000, the Fund received reductions in transfer
agency fees from AFS (an affiliate of AIM) and reductions in custodian fees of
$4,880 and $12,320, respectively, under expense offset arrangements which
resulted in a reduction of the Fund's total expenses of $17,200.
NOTE 4-BANK BORROWINGS
The Fund is a participant in a committed line of credit facility with a
syndicate administered by Citibank, N.A. The Fund may borrow up to the lesser of
(i) $1,000,000,000 or (ii) the limits set by its prospectus for borrowings. The
Fund and other funds advised by AIM which are parties to the line of credit may
borrow on a first come, first served basis. During the six months ended June 30,
2000, the Fund did not borrow under the line of credit agreement. The funds
which are party to the line of credit are charged a commitment fee of 0.09% on
the unused balance of the committed line. The commitment fee is allocated among
the funds based on their respective average net assets for the period.
NOTE 5-PORTFOLIO SECURITIES LOANED
The Fund may lend portfolio securities to the extent of one-third of the Fund's
total assets. Such loans are secured by collateral equal to no less than the
market value, determined daily, of the loaned securities. Such collateral will
be cash or debt securities issued or guaranteed by the U.S. Government or any of
its agencies. Cash collateral pursuant to these loans is invested in short-term
money
13
<PAGE> 16
market instruments or affiliated money market funds. Lending securities entails
a risk of loss to the Fund if and to the extent that the market value of the
securities loaned were to increase and the lender did not increase the
collateral accordingly.
At June 30, 2000, securities with an aggregate value of $79,811,269 were on
loan to brokers. The loans were secured by cash collateral of $81,390,748
received by the Portfolio. For the six months ended June 30, 2000, the Portfolio
received fees of $327,600 for securities lending.
NOTE 6-INVESTMENT SECURITIES
The aggregate amount of investment securities (other than short-term securities)
purchased and sold by the Portfolio during the six months ended June 30, 2000
was $337,707,770 and $241,843,786, respectively.
The amount of unrealized appreciation (depreciation) of investment securities,
for tax purposes, as of June 30, 2000 is as follows:
<TABLE>
<S> <C>
Aggregate unrealized appreciation of
investment securities $420,874,889
---------------------------------------------------------
Aggregate unrealized (depreciation) of
investment securities (22,713,636)
---------------------------------------------------------
Net unrealized appreciation of investment
securities $398,161,253
=========================================================
Cost of investments for tax purposes is $618,709,384.
</TABLE>
NOTE 7-SHARE INFORMATION
Changes in shares outstanding during the six months ended June 30, 2000 and the
year ended December 31, 1999 were as follows:
<TABLE>
<CAPTION>
JUNE 30, 2000 DECEMBER 31, 1999
---------------------------- -------------------------
SHARES AMOUNT SHARES AMOUNT
------------- ------------ ---------- ------------
<S> <C> <C> <C> <C>
Sold:
Class A 4,096,672 $153,477,484 15,474,167 $344,003,621
----------------------------------------------------------------------------------------------------------------------
Class B 711,507 25,427,862 7,141,182 155,840,300
----------------------------------------------------------------------------------------------------------------------
Class C* 147,374 5,242,454 1,410,849 32,179,389
----------------------------------------------------------------------------------------------------------------------
Advisor Class** 12,644 422,564 212,227 5,059,330
----------------------------------------------------------------------------------------------------------------------
Issued as reinvestment of dividends:
Class A -- -- 228,165 6,579,456
----------------------------------------------------------------------------------------------------------------------
Class B -- -- 140,437 3,930,835
----------------------------------------------------------------------------------------------------------------------
Class C* -- -- 22,964 642,307
----------------------------------------------------------------------------------------------------------------------
Advisor Class** -- -- 3,551 103,864
----------------------------------------------------------------------------------------------------------------------
Conversion of Advisor Class shares to Class A shares ***:
Class A 224,326 8,401,016 -- --
----------------------------------------------------------------------------------------------------------------------
Advisor Class (221,021) (8,401,016) -- --
----------------------------------------------------------------------------------------------------------------------
Reacquired:
Class A (1,723,278) (64,872,333) (3,714,103) (80,192,876)
----------------------------------------------------------------------------------------------------------------------
Class B (641,699) (22,943,670) (1,104,856) (23,123,226)
----------------------------------------------------------------------------------------------------------------------
Class C* (70,034) (2,552,877) (122,391) (2,716,216)
----------------------------------------------------------------------------------------------------------------------
Advisor Class** (8,211) (270,189) (59,938) (1,392,883)
----------------------------------------------------------------------------------------------------------------------
2,528,280 $ 93,931,295 19,632,254 $440,913,901
======================================================================================================================
</TABLE>
* Class C shares commenced sales on May 3, 1999.
** Advisor Class share activity for the period January 1, 2000 through February
11, 2000.
*** Effective as of the close of business February 11, 2000, pursuant to
approval by the Board of Trustees on November 3, 1999, all outstanding
shares of Advisor Class shares were converted to Class A shares of the fund.
14
<PAGE> 17
NOTE 8-FINANCIAL HIGHLIGHTS
The following schedule presents financial highlights for one share of the Fund
outstanding throughout the periods indicated.
<TABLE>
<CAPTION>
Class A
----------------------------------------------------------------------
October 18, 1995
Six months (date operations
ended Year ended December 31, commenced) to
June 30, -------------------------------------- December 31,
2000(a) 1999(a) 1998(a) 1997(a) 1996(a) 1995(a)
---------- -------- ------- ------- ------- ----------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 31.87 $ 17.03 $ 14.27 $ 12.52 $ 11.80 $ 11.43
-------------------------------------------------- -------- -------- ------- ------- ------- -------
Income from investment operations:
Net investment income (loss) (0.09) (0.09) (0.19) (0.18) (0.05) 0.04
-------------------------------------------------- -------- -------- ------- ------- ------- -------
Net gains on securities (both realized and
unrealized) 8.88 15.47 3.45 2.20 1.69 0.33
-------------------------------------------------- -------- -------- ------- ------- ------- -------
Total from investment operations 8.79 15.38 3.26 2.02 1.64 0.37
-------------------------------------------------- -------- -------- ------- ------- ------- -------
Less distributions from net realized gains -- (0.54) (0.50) (0.27) (0.92) --
-------------------------------------------------- -------- -------- ------- ------- ------- -------
Net asset value, end of period $ 40.66 $ 31.87 $ 17.03 $ 14.27 $ 12.52 $ 11.80
================================================== ======== ======== ======= ======= ======= =======
Total return(b) 27.58% 90.64% 23.15% 16.23% 13.81% 3.24%
================================================== ======== ======== ======= ======= ======= =======
Ratios/supplemental data:
Net assets, end of period (000s omitted) $652,064 $428,378 $24,737 $10,896 $ 8,448 $ 1,931
================================================== ======== ======== ======= ======= ======= =======
Ratio of expenses to average net assets:
With fee waivers and/or expense reimbursements 1.15%(c) 1.54% 1.76% 1.92% 2.00% 2.00%(d)
-------------------------------------------------- -------- -------- ------- ------- ------- -------
Without fee waivers and/or expense
reimbursements 1.25%(c) 1.54% 2.20% 2.52% 3.09% 24.20%(d)
================================================== ======== ======== ======= ======= ======= =======
Ratio of net investment income (loss) to average
net assets (0.50)(c) (0.38)% (1.29)% (1.40)% (0.38)% 1.68%(d)
================================================== ======== ======== ======= ======= ======= =======
Portfolio turnover rate 30% 56% 190% 233% 150% --
================================================== ======== ======== ======= ======= ======= =======
</TABLE>
(a) Calculated using average shares outstanding.
(b) Does not deduct sales charges and is not annualized for periods less than
one year.
(c) Ratios are annualized and based on average net assets of $565,003,340.
(d) Annualized.
<TABLE>
<CAPTION>
Class B
-----------------------------------------------------------------------
October 18, 1995
Six months (date operations
ended Year ended December 31, commenced) to
June 30, --------------------------------------- December 31,
2000(a) 1999(a) 1998(a) 1997(a) 1996(a) 1995(a)
---------- -------- ------- ------- -------- ----------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 30.92 $ 16.64 $ 14.06 $ 12.42 $ 11.78 $11.43
--------------------------------------------------- -------- -------- ------- ------- -------- ------
Income from investment operations:
Net investment income (loss) (0.23) (0.24) (0.29) (0.26) (0.14) 0.02
--------------------------------------------------- -------- -------- ------- ------- -------- ------
Net gains on securities (both realized and
unrealized) 8.62 15.06 3.37 2.17 1.70 0.33
--------------------------------------------------- -------- -------- ------- ------- -------- ------
Total from investment operations 8.39 14.82 3.08 1.91 1.56 0.35
--------------------------------------------------- -------- -------- ------- ------- -------- ------
Less distributions from net realized gains -- (0.54) (0.50) (0.27) (0.92) --
--------------------------------------------------- -------- -------- ------- ------- -------- ------
Net asset value, end of period $ 39.31 $ 30.92 $ 16.64 $ 14.06 $ 12.42 $11.78
=================================================== ======== ======== ======= ======= ======== ======
Total return(b) 27.14% 89.40% 22.22% 15.47% 13.14% 3.06%
=================================================== ======== ======== ======= ======= ======== ======
Ratios/supplemental data:
Net assets, end of period (000s omitted) $308,012 $240,150 $26,448 $21,222 $10,694 $2,024
=================================================== ======== ======== ======= ======= ======== ======
Ratio of expenses to average net assets:
With fee waivers and/or expense reimbursements 1.92%(c) 2.19% 2.40% 2.57% 2.65% 2.65%(d)
--------------------------------------------------- -------- -------- ------- ------- -------- ------
Without fee waivers and/or expense reimbursements 1.92%(c) 2.19% 2.85% 3.17% 3.74% 24.85%(d)
=================================================== ======== ======== ======= ======= ======== ======
Ratio of net investment income (loss) to average
net assets (1.28)(c) (1.03)% (1.96)% (2.05)% (1.03)% 1.03%(d)
=================================================== ======== ======== ======= ======= ======== ======
Portfolio turnover rate 30% 56% 190% 233% 150% --
=================================================== ======== ======== ======= ======= ======== ======
</TABLE>
(a) Calculated using average shares outstanding.
(b) Does not deduct sales charges and is not annualized for periods less than
one year.
(c) Ratios are annualized and based on average net assets of $284,120,061.
(d) Annualized.
15
<PAGE> 18
NOTE 8-FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
Class C
-------------------------
May 3, 1999
Six months (date sales
ended commenced)
June 30, December 31,
2000(a) 1999(a)
---------- ------------
<S> <C> <C>
Net asset value, beginning of period $ 30.91 $ 19.03
------------------------------------------------------------ ------- -------
Income from investment operations:
Net investment income (loss) (0.23) (0.17)
------------------------------------------------------------ ------- -------
Net gains on securities (both realized and unrealized) 8.60 12.59
------------------------------------------------------------ ------- -------
Total from investment operations 8.37 12.42
------------------------------------------------------------ ------- -------
Less distributions from net realized gains -- (0.54)
------------------------------------------------------------ ------- -------
Net asset value, end of period $ 39.28 $ 30.91
============================================================ ======= =======
Total return(b) 27.08% 65.56%
============================================================ ======= =======
Ratios/supplemental data:
Net assets, end of period (000s omitted) $54,555 $40,530
============================================================ ======= =======
Ratio of expenses to average net assets 1.92%(c) 2.19%(d)
============================================================ ======= =======
Ratio of net investment income (loss) to average net assets (1.28)%(c) (1.03)%(d)
============================================================ ======= =======
Portfolio turnover rate 30% 56%
============================================================ ======= =======
</TABLE>
(a) Calculated using average shares outstanding.
(b) Does not deduct sales charges and is not annualized for periods less than
one year.
(c) Ratios are annualized and based on average net assets of $49,400,534.
(d) Annualized.
16
<PAGE> 19
<TABLE>
<CAPTION>
BOARD OF TRUSTEES OFFICERS OFFICE OF THE FUND
<S> <C> <C>
C. Derek Anderson Robert H. Graham 11 Greenway Plaza
Senior Managing Partner, 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 TRANSFER AGENT
Director, President and Chief Executive Officer, Gary T. Crum
A I M Management Group Inc. Vice President A I M Fund Services, Inc.
P.O. Box 4739
Ruth H. Quigley Carol F. Relihan Houston, TX 77210-4739
Private Investor Vice President
CUSTODIAN
Mary J. Benson
Assistant Vice President and State Street Bank and Trust Company
Assistant Treasurer 225 Franklin Street
Boston, MA 02110
Sheri Morris
Assistant Vice President and COUNSEL TO THE FUND
Assistant Treasurer
Kirkpatrick & Lockhart LLP
Nancy L. Martin 1800 Massachusetts Avenue, N.W.
Assistant Secretary Washington, D.C. 20036-1800
Ofelia M. Mayo COUNSEL TO THE TRUSTEES
Assistant Secretary
Paul, Hastings, Janofsky & Walker LLP
Kathleen J. Pflueger Twenty Third Floor
Assistant Secretary 555 South Flower Street
Los Angeles, CA 90071
DISTRIBUTOR
A I M Distributors, Inc.
11 Greenway Plaza
Suite 100
Houston, TX 77046
</TABLE>
<PAGE> 20
THE AIM FAMILY OF FUNDS--Registered Trademark--
<TABLE>
<S> <C> <C>
EQUITY FUNDS
DOMESTIC EQUITY FUNDS INTERNATIONAL/GLOBAL EQUITY FUNDS
MORE AGGRESSIVE MORE AGGRESSIVE
AIM Small Cap Opportunities(1) AIM Latin American Growth A I M Management Group Inc. has
AIM Mid Cap Opportunities(2) AIM Developing Markets provided leadership in the mutual
AIM Large Cap Opportunities AIM Asian Growth fund industry since 1976 and
AIM Emerging Growth AIM Japan Growth managed approximately $176 billion
AIM Small Cap Growth(3) AIM European Development in assets for more than 8 million
AIM Aggressive Growth AIM Euroland Growth(5) shareholders, including individual
AIM Mid Cap Growth AIM Global Aggressive Growth investors, corporate clients and
AIM Capital Development AIM International Equity financial institutions, as of June
AIM Constellation(4) AIM Advisor International Value 30, 2000.
AIM Dent Demographic Trends AIM Global Trends(6) The AIM Family of
AIM Select Growth AIM Global Growth Funds--Registered Trademark-- is
AIM Large Cap Growth distributed nationwide, and AIM
AIM Weingarten MORE CONSERVATIVE today is the eighth-largest mutual
AIM Mid Cap Equity fund complex in the United States
AIM Charter SECTOR EQUITY FUNDS in assets under management,
AIM Value according to Strategic Insight, an
AIM Blue Chip MORE AGGRESSIVE independent mutual fund monitor.
AIM Basic Value AIM is a subsidiary of AMVESCAP
AIM Large Cap Basic Value AIM Global Telecommunications and Technology PLC, one of the world's largest
AIM Balanced AIM Global Resources independent financial services
AIM Advisor Flex AIM Global Financial Services companies with $389 billion in
AIM Global Health Care assets under management as of June
MORE CONSERVATIVE AIM Global Consumer Products and Services 30, 2000.
AIM Global Infrastructure
AIM Advisor Real Estate
AIM Global Utilities
MORE CONSERVATIVE
FIXED-INCOME FUNDS
TAXABLE FIXED-INCOME FUNDS TAX-FREE FIXED-INCOME FUNDS
MORE AGGRESSIVE MORE AGGRESSIVE
AIM Strategic Income AIM High Income Municipal
AIM High Yield II AIM Tax-Exempt Bond of Connecticut
AIM High Yield AIM Municipal Bond
AIM Income AIM Tax-Free Intermediate
AIM Global Income AIM Tax-Exempt Cash
AIM Floating Rate(7)
AIM Intermediate Government MORE CONSERVATIVE
AIM Limited Maturity Treasury
AIM Money Market
MORE CONSERVATIVE
</TABLE>
The AIM Risk Spectrum illustrates equity and fixed-income funds from more
aggressive to more conservative. When assessing the degree of risk, three
factors were considered: the funds' portfolio holdings, volatility patterns over
time and diversification permitted within the fund. Fund rankings are relative
to one another within The AIM Family of Funds--Registered Trademark-- and
should not be compared with other investments. There is no guarantee that any
one AIM fund will be less volatile than any other. (1) AIM Small Cap
Opportunities Fund closed to new investors Nov. 4, 1999. (2) AIM Mid Cap
Opportunities Fund closed to new investors March 21, 2000. (3) AIM Small Cap
Growth Fund closed to new investors Nov. 8, 1999. (4) AIM Constellation Fund's
investment strategy broadened to allow investments across all market
capitalizations Dec. 1, 1999. (5) AIM Europe Growth Fund was renamed AIM
Euroland Growth Fund Sept. 1, 1999. (6) AIM Global Trends Fund was restructured
to operate as a traditional mutual fund Aug. 27, 1999. Previously, the fund
operated as a fund of funds. (7) AIM Floating Rate Fund was restructured to
offer multiple share classes April 3, 2000. Existing shares were converted to
Class B shares, and Class C shares commenced offering.
FOR MORE COMPLETE INFORMATION ABOUT ANY AIM FUND, INCLUDING SALES CHARGES
AND EXPENSES, OBTAIN THE APPROPRIATE PROSPECTUS(ES) FROM YOUR FINANCIAL ADVISOR.
PLEASE READ THE PROSPECTUS(ES) CAREFULLY BEFORE YOU INVEST OR SEND MONEY. This
report is not authorized for distribution to prospective investors unless
preceded or accompanied by a currently effective fund prospectus. If used as
sales material after Oct. 20, 2000, this report must be accompanied by a fund
Performance & Commentary or by an AIM Quarterly Review of Performance for the
most recent quarter end.
[DALBAR LOGO APPEARS HERE] [AIM LOGO APPEARS HERE]
--Registered Trademark--
INVEST WITH DISCIPLINE
--Registered Trademark--
A I M Distributors, Inc. SCO-SAR-1
