<PAGE> 1
SEMIANNUAL REPORT / JUNE 30 2000
AIM EUROLAND GROWTH FUND
[COVER IMAGE]
[AIM LOGO APPEARS HERE]
--Registered Trademark--
<PAGE> 2
[ COVER IMAGE ]
-------------------------------------
RAIN, STEAM AND SPEED BY J.M.W. TURNER (1844)
J.M.W. TURNER LIKED TO PAINT EPIC SCENES OF CALAMITY IN WHICH
THE FURY OF THE ELEMENTS UNDERLINES HUMANITY'S INSIGNIFICANCE
WITHIN NATURE'S PLAN. SIMILAR TO THE TRAIN FIGHTING THROUGH THE
MIXED ELEMENTS, THIS SAME SPIRIT IS PROPELLING EUROPE INTO
ECONOMIC LEADERSHIP.
-------------------------------------
AIM Euroland Growth Fund is for shareholders seeking long-term growth of
capital. The fund invests primarily in equity securities of issuers from
European countries that are members of the European Economic and Monetary Union
(EMU) and have the euro as their common currency.
ABOUT FUND PERFORMANCE AND PORTFOLIO DATA THROUGHOUT THIS REPORT:
o Effective 9/1/99, AIM Europe Growth Fund changed its name to AIM Euroland
Growth Fund.
o AIM Euroland Growth Fund's performance figures are historical, and they
reflect the reinvestment of distributions and changes in net asset value.
o When sales charges are included in performance figures, Class A share
performance reflects the maximum 5.50% sales charge, and Class B and Class C
share performance reflects the applicable contingent deferred sales charge
(CDSC) for the period involved. The CDSC on Class B shares declines from 5%
beginning at the time of purchase to 0% at the beginning of the seventh
year. The CDSC on Class C shares is 1% for the first year after purchase.
The performance of the fund's Class B and Class C shares will differ from
that of its Class A shares due to different sales-charge structure and class
expenses.
o International investing presents certain risks not associated with investing
solely in the United States. These include risks relating to fluctuations in
the value of the U.S. dollar relative to the values of other currencies, the
custody arrangements made for the fund's foreign holdings, differences in
accounting, political risks and the lesser degree of public information
required to be provided by non-U.S. countries.
o Investing in a single-region mutual fund may involve greater risk and
potential reward than investing in a more diversified fund.
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 MSCI Europe Index is a group of European securities tracked by
Morgan Stanley Capital International.
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 An investment cannot be made in an index. Unless otherwise indicated, index
results include reinvested dividends, and they do not include 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.
AVERAGE ANNUAL TOTAL RETURNS
As of 6/30/00, including sales charges
================================================================================
CLASS A SHARES
Inception (7/19/85) 13.79%
10 Years 7.32
5 Years 16.74
1 Year 37.16*
*45.14%, excluding sales charges
CLASS B SHARES
Inception (4/1/93) 14.07
5 Years 17.09
1 Year 39.16**
**44.16% excluding CDSC
CLASS C SHARES
Inception (5/3/99) 37.35
1 Year 43.06***
***44.06%, excluding CDSC
================================================================================
Past performance cannot guarantee comparable future results. MARKET VOLATILITY
CAN SIGNIFICANTLY IMPACT SHORT-TERM PERFORMANCE. RESULTS OF AN INVESTMENT MADE
TODAY MAY DIFFER SUBSTANTIALLY FROM THE HISTORICAL PERFORMANCE SHOWN.
AIM EUROLAND 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 EUROLAND GROWTH FUND
<PAGE> 4
SEMIANNUAL REPORT / MANAGERS' OVERVIEW
EUROPEAN STOCKS RIDE VOLATILE MARKET ROLLER COASTER
STOCK VOLATILITY ROCKED MARKETS AROUND THE WORLD. HOW DID THE FUND PERFORM IN
THIS ENVIRONMENT?
Despite a challenging six months for European securities, AIM Euroland Growth
Fund performed admirably. The fund's six-month total return was 3.56% for Class
A shares, 3.27% for Class B shares and 3.22% for Class C Shares. These returns
are at net asset value, excluding sales charges.
The fund's performance significantly outpaced the benchmark for its peer
group of diversified European funds, the MSCI Europe Index, which returned
-3.08% for the reporting period.
DESCRIBE THE EUROLAND MARKET ENVIRONMENT DURING THE REPORTING PERIOD.
Euroland probably seemed more like Eurodisney to those invested in European
stocks. The stock market certainly offered investors the ride of a lifetime. For
the first two months of the year, European technology, media and
telecommunications stocks (commonly referred to as TMTs) helped send European
markets to new highs.
Mimicking the moves of the Nasdaq, European markets continued to rally until
late March, when the Nasdaq sold off sharply. The Nasdaq dive caused a ripple
effect worldwide, and Europe was not immune to this trend.
Throughout the spring, European equity markets witnessed one of their most
volatile day-to-day periods ever. Dot-coms quickly became dot-bombs, and as
high-tech stocks took it on the chin for the later half of the reporting period,
old-economy stocks started to find a little favor again.
Case in point: the Milan market's bellwether MIBtel index was up nearly 6%
since the first of the year. This performance is due largely to its scarcity of
TMT stocks.
By the end of the reporting period, most TMT companies around the world were
priced significantly lower than their earlier highs. But some still posted
strong first-quarter earnings, and they continue to show good growth.
Swedish telephone-equipment maker L.M. Ericsson, for instance, reported
large first-quarter pretax profits and high sales expectations for the rest of
the year. Ericsson is a top-10 fund holding.
HAS MARKET VOLATILITY AFFECTED NEW ISSUES?
Although European markets have been extremely volatile this year, that hasn't
stopped the onslaught of IPOs. European IPO issuance, which is up nearly 70%
year-on-year, now outpaces that of the United States. Ironically, the choice of
where to bring your European IPO to market might seem more difficult than when
to take the company public. Why? European stock-exchange mergers. The London and
Frankfurt stock markets are negotiating a merger to form the iX exchange that
(if it happens) will make the new exchange one of the largest in the world.
German's own growth-company market, the Neuer Markt, may or may not join the iX.
And three other markets--the ones in Paris, Brussels and Amsterdam--may create
the Euronext market.
WHAT SHAPED MARKET CONDITIONS OVER THE REPORTING PERIOD?
Euroland continued to show great economic improvement. In fact, the Organization
for Economic Cooperation and Development (the OECD) expects the euro area to
grow by 3.5% this year--its best rate for more than a decade. Year-on-year gross
domestic product continued to strengthen in the first quarter of 2000 to 3.3%
for France, 4.2% for the Netherlands and nearly 4% for Spain. Even Euroland's
two economic laggards, Germany and Italy, are picking up. West German firms
reported in May that business conditions were at their best levels in nine
years, while during the first quarter of 2000, Italy's economy expanded at its
fastest quarterly pace in nearly three years. Beyond accelerating growth, there
has also been a decline in unemployment across the entire euro region.
Tax-cut momentum is also building. In France, for instance, the government
has
FUND BEATS INDEX
TOTAL RETURNS OF
CLASS A, B & C SHARES VS. INDEX
Six-month returns as of 6/30/00, excluding sales charges.
================================================================================
FUND CLASS A SHARES 3.56%
FUND CLASS B SHARES 3.27%
FUND CLASS C SHARES 3.22%
MSCI EUROPE INDEX -3.08%
================================================================================
See important fund and index disclosures inside front cover.
AIM EUROLAND GROWTH FUND
2
<PAGE> 5
SEMIANNUAL REPORT / MANAGERS' OVERVIEW
already sliced one percentage point off the 20.6% value-added tax. In Germany, a
new tax law will reduce the top marginal income-tax rate (now 51%) to 45% by
2005, and will reduce the corporate tax rate (currently at 40%) to 25% on
retained earnings or 30% on distributed profits. One of the most potent elements
of the German tax change is the elimination, effective in 2002, of an
approximately 50% capital-gains tax levied on companies that sell shares in
other companies.
HOW HAS THE EURO PERFORMED?
While Euroland growth and tax reform were on the rise, the euro--the single
currency for the 11-country euro zone--was not. This year the euro fell below
parity (level with the dollar) and continued to set new lows. Many thought that
the ailing currency would find support at parity, or that European Central Bank
rate hikes would prop it up. While the euro fell below the U.S. $0.90 mark in
the spring, it has rebounded a bit. The euro's weakness, however, has helped
boost earnings for Euroland companies that export to the United States or that
deal in dollar-denominated goods. For instance, three Euroland tire makers
(Germany's Continental, France's Michelin and Italy's Pirelli) all reap the
benefits of a weak euro when they export their tires to the United States.
WHAT IS YOUR OUTLOOK FOR EUROLAND?
Despite recent market volatility, Euroland still provides a bright investment
environment. Enthusiasm for technology should remain strong, as Europe's
Internet-usage growth rate is now higher than that in the United States. And
despite the uneasiness some investors feel toward the euro, government policies
are changing. This is evidenced by tax-reform momentum. In another plus for the
region, mergers and acquisitions show no signs of slowing down.
While broad European benchmarks have lagged many U.S. equity indexes lately,
European stocks could close in on their overseas counterparts if the euro starts
to recover significantly or if U.S. growths slows while Europe's remains strong.
MERGER MANIA RAGES IN EUROPE; CROSS-BORDER DEALS ON THE RISE
Once the domain of the United States, the dollar volume of European merger deals
has quintupled from $200 billion annually in the early 1990s to almost $1
trillion in 1999. And it doesn't appear to be slowing down; 40% of all global
deals announced year-to-date involve a European company as an acquirer.
One of the largest cross-country acquisitions was Vodafone AirTouch's
hostile takeover of Germany's Mannesmann. This acquisition makes Britain's
Vodafone--a top fund holding--the largest company in Europe. It is also the
world's largest wireless service, with more than 40 million subscribers in 25
countries. What makes the Vodafone/Mannesmann merger so compelling is that this
means that Europe is becoming more open to cross-border consolidation.
Indeed, two of the latest mergers bear this out. France Telecom recently
acquired U.K. mobile-phone operator Orange, while the world's number-one water
distributor, France's Vivendi, bought out Canadian entertainment company
Seagram.
PORTFOLIO COMPOSITION
As of 6/30/00, based on total net assets
<TABLE>
<CAPTION>
===================================================================================================================================
TOP 10 EQUITY HOLDINGS TOP 10 INDUSTRIES TOP 10 COUNTRIES
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1. Nokia Oyj (Finland) 4.98% 1. Computers (Software & Services) 11.44% 1. Germany 25.53%
2. Vodafone AirTouch PLC 2. Communications Equipment 11.18 2. France 22.81
(United Kingdom) 4.37 3. Telecommunications 3. Sweden 8.90
3. Intershop Communications AG (Germany) 3.61 (Cellular & Wireless) 8.49
4. Telefonaktiebolaget LM Ericsson A.B. 4. Services (Commercial & Consumer) 5.81 4. Netherlands 8.31
Shares (Sweden) 3.52
5. Skandia Forsakrings AB (Sweden) 2.95 5. Telephone 5.71 5. Finland 7.61
6. Koninklijke (Royal) Philips 6. Insurance Brokers 4.11 6. United
Electronics N.V. (Netherlands) 2.85 Kingdom 7.10
7. Alcatel (France) 2.68 7. Electronics (Component Distributors) 3.82 7. Spain 5.68
8. EM.TV & Merchandising AG (Germany) 2.63 8. Broadcasting (Television, Radio & Cable) 3.68 8. Italy 5.20
9. Altran Technologies S.A. (France) 2.49 9. Manufacturing (Diversified) 3.39 9. Denmark 1.37
10. Helsingin Puhelin Oyj 2.31 10. Retail (Food Chains) 2.95 10. Switzerland 0.98
(Helsinki Telephone Corp. - HPY)
(Finland)
The fund's portfolio 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 EUROLAND GROWTH FUND
3
<PAGE> 6
SCHEDULE OF INVESTMENTS
June 30, 2000
(Unaudited)
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
FOREIGN STOCKS & OTHER EQUITY
INTERESTS-94.80%
DENMARK-1.37%
Vestas Wind Systems A/S
(Manufacturing-Specialized) 210,000 $ 7,696,728
--------------------------------------------------------------
FINLAND-7.61%
Helsingin Puhelin Oyj (Helsinki
Telephone Corp.-HPY)
(Telecommunications-
Cellular/Wireless) 132,600 12,963,296
--------------------------------------------------------------
Nokia Oyj (Communications
Equipment) 550,000 28,011,408
--------------------------------------------------------------
Tietoenator Oyj (Computers-Software
& Services) 53,328 1,775,935
--------------------------------------------------------------
42,750,639
--------------------------------------------------------------
FRANCE-22.81%
Alcatel (Communications Equipment) 230,000 15,055,983
--------------------------------------------------------------
Altran Technologies S.A. (Services-
Commercial & Consumer) 71,700 14,012,298
--------------------------------------------------------------
AXA (Insurance-Multi-Line) 51,850 8,151,870
--------------------------------------------------------------
BNP Paribas (Banks-Major Regional) 75,000 7,203,546
--------------------------------------------------------------
Canal Plus (Broadcasting-
Television, Radio & Cable) 35,000 5,869,556
--------------------------------------------------------------
Cap Gemini S.A. (Computers-Software
& Services) 35,000 6,153,029
--------------------------------------------------------------
Carrefour S.A. (Retail-Food Chains) 124,000 8,459,783
--------------------------------------------------------------
Dassault Systemes S.A.
(Computers-Software & Services) 80,000 7,447,476
--------------------------------------------------------------
France Telecom S.A. (Telephone) 75,000 10,462,293
--------------------------------------------------------------
Lagardere S.C.A.
(Manufacturing-Diversified) 100,000 7,622,800
--------------------------------------------------------------
Pinault-Printemps-Redoute S.A.
(Retail-General Merchandise) 17,100 3,791,552
--------------------------------------------------------------
Sanofi-Synthelabo S.A. (Health
Care-Drugs-Generic & Other) 70,000 3,328,305
--------------------------------------------------------------
Sidel S.A. (Machinery-Diversified) 78,500 6,354,152
--------------------------------------------------------------
STMicroelectronics N.V.
(Electronics-Semiconductors) 90,000 5,659,929
--------------------------------------------------------------
Thomson CSF (Aerospace-Defense) 150,000 5,897,189
--------------------------------------------------------------
Total Fina Elf S.A.
(Oil-International Integrated) 83,074 12,712,624
--------------------------------------------------------------
128,182,385
--------------------------------------------------------------
GERMANY-25.53%
Aixtron A.G.
(Equipment-Semiconductor) 90,000 12,348,936
--------------------------------------------------------------
Consors Discount Broker A.G.
(Investment Banking &
Brokerage)(a) 30,000 2,672,744
--------------------------------------------------------------
D. Logistics A.G. (Services-
Commercial & Consumer)(a) 175,000 10,838,669
--------------------------------------------------------------
EM.TV & Merchandising A.G.
(Broadcasting-Television, Radio
& Cable) 251,575 14,790,307
--------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
GERMANY-(CONTINUED)
Epcos A.G. (Electronics-Component
Distributors)(a) 60,000 $ 6,025,823
--------------------------------------------------------------
Fresenius A.G.-Pfd.
(Machinery-Diversified) 30,000 6,831,934
--------------------------------------------------------------
Intershop Communications A.G.
(Computers-Software &
Services)(a) 45,000 20,281,412
--------------------------------------------------------------
Kamps A.G. (Retail-Food Chains) 254,400 8,120,569
--------------------------------------------------------------
Marschollek, Lautenschlaeger und
Partner A.G. (Services-Commercial
& Consumer) 25,000 12,482,335
--------------------------------------------------------------
Medion A.G. (Electronics-Component
Distributors) 92,000 9,379,855
--------------------------------------------------------------
Openshop Holding A.G. (Computers-
Software & Services)(a) 27,293 910,215
--------------------------------------------------------------
Porsche A.G.-Pfd. (Automobiles) 2,841 7,715,084
--------------------------------------------------------------
SAP A.G.-Pfd. (Computers-Software &
Services) 69,000 12,721,977
--------------------------------------------------------------
Siemens A.G.
(Manufacturing-Diversified) 76,000 11,405,614
--------------------------------------------------------------
Singulus Technologies A.G.
(Machinery-Specialized)(a) 78,400 4,631,613
--------------------------------------------------------------
Software A.G. (Computers-Software &
Services) 25,000 2,298,751
--------------------------------------------------------------
143,455,838
--------------------------------------------------------------
ITALY-5.20%
Banca Fideuram S.p.A. (Investment
Management) 300,000 4,516,509
--------------------------------------------------------------
Finmatica S.p.A.
(Computers-Software &
Services)(a) 45,000 2,727,057
--------------------------------------------------------------
Mediolanum S.p.A.
(Insurance-Life/Health) 725,230 11,775,243
--------------------------------------------------------------
Telecom Italia Mobile S.p.A.
(Telecommunications-
Cellular/Wireless) 1,000,000 10,195,495
--------------------------------------------------------------
29,214,304
--------------------------------------------------------------
NETHERLANDS-8.31%
ABN AMRO Holding N.V. (Banks-Major
Regional) 300,000 7,335,039
--------------------------------------------------------------
Equant N.V. (Computers-Software &
Services)(a) 98,138 3,979,819
--------------------------------------------------------------
ING Groep N.V. (Insurance Brokers) 96,578 6,515,324
--------------------------------------------------------------
Koninklijke (Royal) Philips
Electronics N.V. (Electrical
Equipment) 340,000 16,004,069
--------------------------------------------------------------
Royal Dutch Petroleum Co.
(Oil-International Integrated) 110,000 6,823,359
--------------------------------------------------------------
Teleplan International N.V.
(Electronics-Component
Distributors)(a) 40,000 6,060,126
--------------------------------------------------------------
46,717,736
--------------------------------------------------------------
NORWAY-0.64%
Tomra Systems A.S.A.
(Manufacturing-Specialized) 135,400 3,582,427
--------------------------------------------------------------
PORTUGAL-0.67%
BPI-SGPS, S.A. (Banks-Regional) 1,072,810 3,782,240
--------------------------------------------------------------
</TABLE>
4
<PAGE> 7
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
SPAIN-5.68%
Banco Santander Central Hispano
S.A. (Banks-Regional) 400,000 $ 4,211,597
--------------------------------------------------------------
Cortefiel S.A. (Retail-Department
Stores) 75,000 1,623,656
--------------------------------------------------------------
Telefonica Publicidad e
Informacion, S.A. (Telephone) 1,050,000 9,894,871
--------------------------------------------------------------
Telefonica S.A. (Telephone)(a) 546,743 11,721,692
--------------------------------------------------------------
TelePizza, S.A. (Restaurants)(a) 800,000 4,497,452
--------------------------------------------------------------
31,949,268
--------------------------------------------------------------
SWEDEN-8.90%
Assa Abloy A.B.-Class B (Metal
Fabricators) 374,400 7,504,280
--------------------------------------------------------------
Securitas A.B.-Class B
(Services-Commercial & Consumer) 290,000 6,141,006
--------------------------------------------------------------
Skandia Forsakrings A.B. (Insurance
Brokers) 628,988 16,595,802
--------------------------------------------------------------
Telefonaktiebolaget LM Ericsson
A.B.-B Shares (Communications
Equipment) 1,000,000 19,760,384
--------------------------------------------------------------
50,001,472
--------------------------------------------------------------
SWITZERLAND-0.98%
Roche Holding A.G. (Health
Care-Drugs-Generic & Other) 565 5,486,913
--------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
UNITED KINGDOM-7.10%
Autonomy Corp. PLC
(Computers-Software &
Services)(a) 50,000 $ 6,000,000
--------------------------------------------------------------
Glaxo Wellcome PLC (Health
Care-Drugs-Major Pharmaceuticals) 171,436 4,997,974
--------------------------------------------------------------
SmithKline Beecham PLC (Health
Care-Drugs-Major
Pharmaceuticals) 333,272 4,361,392
--------------------------------------------------------------
Vodafone AirTouch PLC
(Telecommunications-
Cellular/Wireless) 6,078,121 24,552,223
--------------------------------------------------------------
39,911,589
--------------------------------------------------------------
Total Foreign Stocks & Other
Equity Interests (Cost
$342,551,175) 532,731,539
--------------------------------------------------------------
MONEY MARKET FUNDS-2.12%
STIC Liquid Assets Portfolio(b) 5,971,328 5,971,328
--------------------------------------------------------------
STIC Prime Portfolio(b) 5,971,328 5,971,328
--------------------------------------------------------------
Total Money Market Funds
(Cost $11,942,656) 11,942,656
--------------------------------------------------------------
TOTAL INVESTMENTS-96.92%
(Cost $354,493,831) 544,674,195
--------------------------------------------------------------
OTHER ASSETS LESS LIABILITIES-3.08% 17,302,561
--------------------------------------------------------------
NET ASSETS-100.00% $561,976,756
==============================================================
</TABLE>
Investment Abbreviations:
Pfd. - Preferred
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.
5
<PAGE> 8
STATEMENT OF ASSETS AND LIABILITIES
June 30, 2000
(Unaudited)
<TABLE>
<S> <C>
ASSETS:
Investments, at market value (cost
$354,493,831) $544,674,195
---------------------------------------------------------
Foreign currencies, at value (cost
$30,208,909) 31,380,504
---------------------------------------------------------
Receivables for:
Investments sold 4,376,400
---------------------------------------------------------
Fund shares sold 1,867,234
---------------------------------------------------------
Dividends 924,033
---------------------------------------------------------
Other assets 4,036
---------------------------------------------------------
Total assets 583,226,402
---------------------------------------------------------
LIABILITIES:
Payables for:
Investments purchased 17,795,169
---------------------------------------------------------
Fund shares reacquired 2,064,672
---------------------------------------------------------
Accrued advisory fees 468,051
---------------------------------------------------------
Accrued administrative services fees 10,048
---------------------------------------------------------
Accrued distribution fees 536,178
---------------------------------------------------------
Accrued transfer agent fees 134,620
---------------------------------------------------------
Accrued trustees' fees 5,110
---------------------------------------------------------
Accrued operating expenses 235,798
---------------------------------------------------------
Total liabilities 21,249,646
---------------------------------------------------------
Net assets applicable to shares outstanding $561,976,756
=========================================================
NET ASSETS:
Class A $458,348,273
=========================================================
Class B $100,503,667
=========================================================
Class C $ 3,124,816
=========================================================
SHARES OUTSTANDING, $0.01 PAR VALUE PER
SHARE:
Class A 22,534,135
=========================================================
Class B 5,141,425
=========================================================
Class C 159,809
=========================================================
Class A:
Net asset value and redemption price per
share $ 20.34
---------------------------------------------------------
Offering price per share:
(Net asset value of $20.34 divided
by 94.50%) $ 21.52
=========================================================
Class B:
Net asset value and offering price per
share $ 19.55
=========================================================
Class C:
Net asset value and offering price per
share $ 19.55
=========================================================
</TABLE>
STATEMENT OF OPERATIONS
For the six months ended June 30, 2000
(Unaudited)
<TABLE>
<S> <C>
INVESTMENT INCOME:
Dividends (net of foreign withholding tax
$470,896) $ 2,761,683
---------------------------------------------------------
Interest 24,052
---------------------------------------------------------
Total investment income 2,785,735
---------------------------------------------------------
EXPENSES:
Advisory and administrative fees 2,852,556
---------------------------------------------------------
Accounting services fee 62,433
---------------------------------------------------------
Custodian fees 270,969
---------------------------------------------------------
Distribution fees -- Class A 840,451
---------------------------------------------------------
Distribution fees -- Class B 518,315
---------------------------------------------------------
Distribution fees -- Class C 9,610
---------------------------------------------------------
Transfer agent fees 550,998
---------------------------------------------------------
Trustees' fees 6,383
---------------------------------------------------------
Other 204,192
---------------------------------------------------------
Total expenses 5,315,907
---------------------------------------------------------
Less: Expenses paid indirectly (7,114)
---------------------------------------------------------
Net expenses 5,308,793
---------------------------------------------------------
Net investment income (loss) (2,523,058)
---------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENT SECURITIES AND FOREIGN
CURRENCIES:
Net realized gain (loss) from:
Investment securities 28,610,335
---------------------------------------------------------
Foreign currencies (182,401)
---------------------------------------------------------
28,427,934
---------------------------------------------------------
Change in net unrealized appreciation
(depreciation) of:
Investment securities (5,876,222)
---------------------------------------------------------
Foreign currencies 877,508
---------------------------------------------------------
(4,998,714)
---------------------------------------------------------
Net gain on investment securities and
foreign currencies 23,429,220
---------------------------------------------------------
Net increase in net assets resulting from
operations $20,906,162
=========================================================
</TABLE>
See Notes to Financial Statements.
6
<PAGE> 9
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) $ (2,523,058) $ (3,036,174)
--------------------------------------------------------------------------------------------
Net realized gain from investment securities and foreign
currencies 28,427,934 18,841,364
--------------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) of
investment securities and foreign currencies (4,998,714) 130,391,532
--------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 20,906,162 146,196,722
--------------------------------------------------------------------------------------------
Distributions to shareholders from net realized gains:
Class A -- (29,255,944)
--------------------------------------------------------------------------------------------
Class B -- (6,401,190)
--------------------------------------------------------------------------------------------
Class C -- (19,795)
--------------------------------------------------------------------------------------------
Advisor Class* -- (98,058)
--------------------------------------------------------------------------------------------
Share transactions-net:
Class A (5,818,042) (61,483,581)
--------------------------------------------------------------------------------------------
Class B 4,575,852 (23,714,961)
--------------------------------------------------------------------------------------------
Class C 2,862,169 236,516
--------------------------------------------------------------------------------------------
Advisor Class* (1,857,577) (803,689)
--------------------------------------------------------------------------------------------
Net increase in net assets 20,668,564 24,656,020
--------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 541,308,192 516,652,172
--------------------------------------------------------------------------------------------
End of period $561,976,756 $541,308,192
============================================================================================
NET ASSETS CONSIST OF:
Shares of beneficial interest $333,463,210 $333,700,808
--------------------------------------------------------------------------------------------
Undistributed net investment income (loss) (2,523,058) --
--------------------------------------------------------------------------------------------
Undistributed net realized gain from investment securities
and foreign currencies 40,098,953 11,671,019
--------------------------------------------------------------------------------------------
Unrealized appreciation of investment securities and
foreign currencies 190,937,651 195,936,365
--------------------------------------------------------------------------------------------
$561,976,756 $541,308,192
============================================================================================
</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.
7
<PAGE> 10
NOTES TO FINANCIAL STATEMENTS
June 30, 2000
(Unaudited)
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES
AIM Euroland 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. Matters affecting each portfolio or
class will be voted on exclusively by the shareholders of such portfolio or
class. The assets, liabilities and operations of each portfolio are accounted
for separately. Information presented in these financial statements pertains
only to the Fund. The Fund's investment objective is long-term growth of
capital.
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenses during
the reporting period. Actual results could differ from those estimates. The
following is a summary of the significant accounting policies followed by the
Fund in the preparation of its financial statements.
A. Security Valuations -- A security listed or traded on an exchange (except
convertible bonds) is valued at its last sales price as of the close of the
customary trading session on the exchange where the security is principally
traded, or lacking any sales on a particular day, the security is valued at
the closing bid price on that day. Each security reported on the NASDAQ
National Market System is valued at the last sales price as of the close of
the customary trading session on the valuation date or absent a last sales
price, at the closing bid price. Debt obligations (including convertible
bonds) are valued on the basis of prices provided by an independent pricing
service. Prices provided by the pricing service may be determined without
exclusive reliance on quoted prices, and may reflect appropriate factors such
as yield, type of issue, coupon rate and maturity date. Securities for which
market prices are not provided by any of the above methods are valued based
upon quotes furnished by independent sources and are valued at the last bid
price in the case of equity securities and in the case of debt obligations,
the mean between the last bid and asked prices. Securities for which market
quotations are not readily available or are questionable are valued at fair
value as determined in good faith by or under the supervision of the Trust's
officers in a manner specifically authorized by the Board of Trustees.
Short-term obligations having 60 days or less to maturity are valued at
amortized cost which approximates market value. For purposes of determining
net asset value per share, futures and option contracts generally will be
valued 15 minutes after the close of the customary trading session of the New
York Stock Exchange ("NYSE").
Generally, trading in foreign securities is substantially completed each
day at various times prior to the close of the NYSE. The values of such
securities used in computing the net asset value of the Fund's shares are
determined as of such times. Foreign currency exchange rates are also
generally determined prior to the close of the NYSE. Occasionally, events
affecting the values of such securities and such exchange rates may occur
between the times at which they are determined and the close of the customary
trading session of the NYSE which would not be reflected in the computation
of the Fund's net asset value. If events materially affecting the value of
such securities occur during such period, then these securities will be
valued at their fair value as determined in good faith by or under the
supervision of the Board of Trustees.
B. Securities Transactions and Investment Income -- Securities transactions are
accounted for on a trade date basis. Realized gains or losses on sales are
computed on the basis of specific identification of the securities sold.
Interest income is recorded on the accrual basis from settlement date.
Dividend income is recorded on the ex-dividend date.
C. Distributions -- Distributions from income and net realized capital gains, if
any, are generally paid annually and recorded on ex-dividend date. The Fund
may elect to use a portion of the proceeds from redemptions as distributions
for federal income tax purposes.
D. Federal Income Taxes -- The Fund intends to comply with the requirements of
the Internal Revenue Code necessary to qualify as a regulated investment
company and, as such, will not be subject to federal income taxes on
otherwise taxable income (including net realized capital gains) which is
distributed to shareholders. Therefore, no provision for federal income taxes
is recorded in the financial statements.
E. Foreign Currency Translations -- Portfolio securities and other assets and
liabilities denominated in foreign currencies are translated into U.S. dollar
amounts at date of valuation. Purchases and sales of portfolio securities and
income items denominated in foreign currencies are translated into U.S.
dollar amounts on the respective dates of such transactions. The Fund does
not separately account for the portion of the results of operations resulting
from changes in foreign exchange rates on investments and the fluctuations
arising from changes in market prices of securities held. Such fluctuations
are included with the net realized and unrealized gain or loss from
investments.
8
<PAGE> 11
F. Foreign Currency Contracts -- A foreign currency contract is an obligation to
purchase or sell a specific currency for an agreed-upon price at a future
date. The Fund may enter into a foreign currency contract to attempt to
minimize the risk to the Fund from adverse changes in the relationship
between currencies. The Fund may also enter into a foreign currency contract
for the purchase or sale of a security denominated in a foreign currency in
order to "lock in" the U.S. dollar price of that security. The Fund could be
exposed to risk if counterparties to the contracts are unable to meet the
terms of their contracts or if the value of the foreign currency changes
unfavorably.
G. 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 investment manager and administrator.
INVESCO Asset Management Limited ("IAML") is the Fund's sub-advisor and
sub-administrator. The Fund pays AIM investment management and administration
fees at an annual rate of 0.975% on the first $500 million of the Fund's average
daily net assets, plus 0.95% on the next $500 million of the Fund's average
daily net assets, plus 0.925% on the next $500 million of the Fund's average
daily net assets, plus 0.90% on the Fund's average daily net assets exceeding
$1.5 billion. Under the terms of a master sub-advisory agreement between AIM and
IAML, AIM pays IAML 40% of the amount paid by the Fund to AIM. AIM has
contractually agreed to limit the Fund's expenses (exclusive of brokerage
commissions, taxes, interest, extraordinary items and increases in expenses due
to offset arrangements, if any) to the maximum annual rate of 2.00%, 2.65% and
2.65% 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 $62,433 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 $324,765 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. For the six months ended June 30,
2000, the Class A, Class B and Class C shares paid AIM Distributors $840,451,
$518,315 and $9,610, respectively, as compensation under the Plans.
AIM Distributors received commissions of $43,054 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 $16,951 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
$3,223 and $3,891, respectively, under expense offset arrangements which
resulted in a reduction of the Fund's total expenses of $7,114.
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 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, there were no securities on loans to brokers.
9
<PAGE> 12
NOTE 6-INVESTMENT SECURITIES
The aggregate amount of investment securities (other than short-term securities)
purchased and sold by the Fund during the six months ended June 30, 2000 was
$100,508,975 and $107,786,088, 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 $202,015,482
---------------------------------------------------------------------------
Aggregate unrealized (depreciation) of investment securities (14,102,111)
---------------------------------------------------------------------------
Net unrealized appreciation of investment securities $187,913,371
===========================================================================
Cost of investments for tax purposes is $356,760,824.
</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 7,793,320 $ 168,260,480 56,134,804 $ 892,147,655
----------------------------------------------------------------------------------------------------------------------
Class B 1,180,903 24,490,374 4,085,662 62,498,150
----------------------------------------------------------------------------------------------------------------------
Class C* 232,772 4,797,899 185,264 2,804,901
----------------------------------------------------------------------------------------------------------------------
Advisor Class** 162,642 3,281,626 741,800 12,185,965
----------------------------------------------------------------------------------------------------------------------
Issued as reinvestment of dividends:
Class A 1,493,014 26,287,494
----------------------------------------------------------------------------------------------------------------------
Class B 336,013 5,718,720
----------------------------------------------------------------------------------------------------------------------
Class C* -- -- 947 16,127
----------------------------------------------------------------------------------------------------------------------
Advisor Class** -- -- 5,368 95,985
----------------------------------------------------------------------------------------------------------------------
Conversion of Advisor Class shares to Class A shares***:
Class A 98,573 2,277,044 -- --
----------------------------------------------------------------------------------------------------------------------
Advisor Class (97,267) (2,277,044) -- --
----------------------------------------------------------------------------------------------------------------------
Reacquired:
Class A (8,075,079) (176,355,566) (61,395,542) (979,918,730)
----------------------------------------------------------------------------------------------------------------------
Class B (973,001) (19,914,522) (6,039,505) (91,931,831)
----------------------------------------------------------------------------------------------------------------------
Class C* (91,370) (1,935,730) (167,804) (2,584,512)
----------------------------------------------------------------------------------------------------------------------
Advisor Class** (140,266) (2,862,159) (776,145) (13,085,639)
----------------------------------------------------------------------------------------------------------------------
91,227 $ (237,598) (5,396,124) $ (85,765,715)
======================================================================================================================
</TABLE>
* Class C shares commenced sales on May 3, 1999.
** Advisor Class share activity for the period January 1, 2000 through February
11, 2000 (date of conversion).
*** 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.
10
<PAGE> 13
NOTE 8-FINANCIAL HIGHLIGHTS
The following schedule presents financial highlights for one share of the Fund
outstanding throughout the periods indicated.
<TABLE>
<CAPTION>
Class A
-------------------------------------------------------------------
Six months
ended Year ended December 31,
June 30, ----------------------------------------------------
2000(a) 1999(a) 1998(a) 1997(a) 1996(a) 1995(a)
---------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 19.64 $ 15.67 $ 14.32 $ 12.89 $ 10.88 $ 10.03
------------------------------------------------------------ -------- -------- -------- -------- -------- --------
Income from investment operations:
Net investment income (loss) (0.08) (0.09) (0.03) (0.04) (0.03) 0.04
------------------------------------------------------------ -------- -------- -------- -------- -------- --------
Net gains on securities (both realized and unrealized) 0.78 5.45 2.35 1.48 2.16 0.95
------------------------------------------------------------ -------- -------- -------- -------- -------- --------
Total from investment operations 0.70 5.36 2.32 1.44 2.13 0.99
------------------------------------------------------------ -------- -------- -------- -------- -------- --------
Less distributions:
Dividends from net investment income -- -- -- -- -- (0.10)
------------------------------------------------------------ -------- -------- -------- -------- -------- --------
Distributions from net realized gains -- (1.39) (0.97) (0.01) (0.12) (0.04)
------------------------------------------------------------ -------- -------- -------- -------- -------- --------
Total distributions -- (1.39) (0.97) (0.01) (0.12) (0.14)
------------------------------------------------------------ -------- -------- -------- -------- -------- --------
Net asset value, end of period $ 20.34 $ 19.64 $ 15.67 $ 14.32 $ 12.89 $ 10.88
============================================================ ======== ======== ======== ======== ======== ========
Total return(b) 3.56% 35.22% 16.63% 11.20% 19.61% 9.86%
============================================================ ======== ======== ======== ======== ======== ========
Ratios/supplemental data:
Net assets, end of period (000s omitted) $458,348 $446,065 $415,066 $407,004 $453,792 $483,375
============================================================ ======== ======== ======== ======== ======== ========
Ratio of expenses to average net assets (including interest
expense):
With fee waivers 1.70%(d) 1.83% 2.02% 1.75% 1.82% 1.83%
------------------------------------------------------------ -------- -------- -------- -------- -------- --------
Without fee waivers 1.70%(d) 1.83% 2.02% 1.89% 1.88% 1.89%
============================================================ ======== ======== ======== ======== ======== ========
Ratio of expenses to average net assets (excluding interest
expense):
With fee waivers(c) 1.70%(d) 1.82% 1.75% 1.75% 1.82% 1.83%
------------------------------------------------------------ -------- -------- -------- -------- -------- --------
Without fee waivers 1.70%(d) 1.82% 1.75% 1.89% 1.88% 1.89%
============================================================ ======== ======== ======== ======== ======== ========
Ratio of interest expense to average net assets -- 0.01% 0.27% -- -- --
============================================================ ======== ======== ======== ======== ======== ========
Ratio of net investment income (loss) to average net assets (0.74)%(d) (0.55)% (0.20)% (0.29)% (0.26)% 0.38%
============================================================ ======== ======== ======== ======== ======== ========
Portfolio turnover rate 18% 71% 97% 107% 123% 108%
============================================================ ======== ======== ======== ======== ======== ========
</TABLE>
(a) Calculated using average shares outstanding.
(b) Does not deduct sales charges and is not annualized for periods less than
one year.
(c) Prior to the period ended December 31, 1999, ratios include expense
reductions.
(d) Ratios are annualized and based on average net assets of $482,896,724.
<TABLE>
<CAPTION>
Class B
--------------------------------------------------------------
Six months
ended Year ended December 31,
June 30, -----------------------------------------------
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 $ 18.93 $ 15.26 $ 14.06 $ 12.73 $ 10.81 $ 9.97
------------------------------------------------------------ -------- ------- ------- ------- ------- -------
Income from investment operations:
Net investment income (loss) (0.14) (0.18) (0.14) (0.13) (0.11) (0.03)
------------------------------------------------------------ -------- ------- ------- ------- ------- -------
Net gains on securities (both realized and unrealized) 0.76 5.24 2.31 1.47 2.15 0.94
------------------------------------------------------------ -------- ------- ------- ------- ------- -------
Total from investment operations 0.62 5.06 2.17 1.34 2.04 0.91
------------------------------------------------------------ -------- ------- ------- ------- ------- -------
Less distributions:
Dividends from net investment income -- -- -- -- -- (0.03)
------------------------------------------------------------ -------- ------- ------- ------- ------- -------
Distributions from net realized gains -- (1.39) (0.97) (0.01) (0.12) (0.04)
------------------------------------------------------------ -------- ------- ------- ------- ------- -------
Total distributions -- (1.39) (0.97) (0.01) (0.12) (0.07)
------------------------------------------------------------ -------- ------- ------- ------- ------- -------
Net asset value, end of period $ 19.55 $ 18.93 $ 15.26 $ 14.06 $ 12.73 $ 10.81
============================================================ ======== ======= ======= ======= ======= =======
Total return(b) 3.27% 34.19% 15.80% 10.55% 18.79% 9.20%
============================================================ ======== ======= ======= ======= ======= =======
Ratios/supplemental data:
Net assets, end of period (000s omitted) $100,504 $93,404 $99,943 $81,011 $87,092 $73,025
============================================================ ======== ======= ======= ======= ======= =======
Ratio of expenses to average net assets (including interest
expense):
With fee waivers 2.35%(d) 2.48% 2.67% 2.40% 2.47% 2.48%
------------------------------------------------------------ -------- ------- ------- ------- ------- -------
Without fee waivers 2.35%(d) 2.48% 2.67% 2.54% 2.58% 2.54%
============================================================ ======== ======= ======= ======= ======= =======
Ratio of expenses to average net assets (excluding interest
expense):
With fee waivers(c) 2.35%(d) 2.47% 2.40% 2.40% 2.47% 2.48%
------------------------------------------------------------ -------- ------- ------- ------- ------- -------
Without fee waivers 2.35%(d) 2.47% 2.40% 2.54% 2.53% 2.54%
============================================================ ======== ======= ======= ======= ======= =======
Ratio of interest expense to average net assets -- 0.01% 0.27% -- -- --
============================================================ ======== ======= ======= ======= ======= =======
Ratio of net investment income (loss) to average net assets (1.39)%(d) (1.19)% (0.85)% (0.94)% (0.91)% (0.27)%
============================================================ ======== ======= ======= ======= ======= =======
Portfolio turnover rate 18% 71% 97% 107% 123% 108%
============================================================ ======== ======= ======= ======= ======= =======
</TABLE>
(a) Calculated using average shares outstanding.
(b) Does not deduct contingent deferred sales charges and is not annualized for
periods less than one year.
(c) Prior to the period ended December 31, 1999, ratios include expense
reductions.
(d) Ratios are annualized and based on average net assets of $104,232,488.
11
<PAGE> 14
NOTE 8-FINANCIAL HIGHLIGHTS-(CONTINUED)
<TABLE>
<CAPTION>
Class C
----------------------------
May 3, 1999
Six months (Date sales
ended commenced) to
June 30, December 31,
2000(a) 1999(a)
--------- -------------
<S> <C> <C>
Net asset value, beginning of period $ 18.94 $ 14.64
------------------------------------------------------------ --------- ------------
Income from investment operations:
Net investment income (loss) (0.14) (0.19)
------------------------------------------------------------ --------- ------------
Net gains on securities (both realized and unrealized) 0.75 5.88
------------------------------------------------------------ --------- ------------
Total from investment operations 0.61 5.69
------------------------------------------------------------ --------- ------------
Less distributions:
Distributions from net realized gains -- (1.39)
------------------------------------------------------------ --------- ------------
Total distributions -- (1.39)
------------------------------------------------------------ --------- ------------
Net asset value, end of period $ 19.55 $ 18.94
============================================================ ========= ============
Total return(b) 3.22% 39.95%
============================================================ ========= ============
Ratios/supplemental data:
Net assets, end of period (000s omitted) $ 3,125 $ 349
============================================================ ======== ============
Ratio of expenses to average net assets (including interest
expense):
With fee waivers 2.35%(d) 2.48%(e)
------------------------------------------------------------ --------- ------------
Without fee waivers 2.35%(d) 2.48%(e)
============================================================ ========= ============
Ratio of expenses to average net assets (excluding interest
expense):
With fee waivers(c) 2.35%(d) 2.47%(e)
------------------------------------------------------------ --------- ------------
Without fee waivers 2.35%(d) 2.47%(e)
============================================================ ========= ============
Ratio of interest expense to average net assets -- 0.01%(e)
============================================================ ========= ============
Ratio of net investment income (loss) to average net assets (1.39)%(d) (1.19)%(e)
============================================================ ========= ============
Portfolio turnover rate 18% 71%
============================================================ ========== ============
</TABLE>
(a) Calculated using average shares outstanding.
(b) Does not deduct contingent deferred sales charges and is not annualized for
periods less than one year.
(c) Prior to the period ended December 31, 1999, ratios include expense
reductions.
(d) Ratios are annualized and based on average net assets of $1,932,591.
(e) Annualized.
12
<PAGE> 15
<TABLE>
<CAPTION>
BOARD OF TRUSTEES OFFICERS OFFICE OF THE FUND
<S> <C> <C>
C. Derek Anderson Robert H. Graham 11 Greenway Plaza
Senior Managing Partner, Chairman and President Suite 100
Plantagenet Capital Management, LLC Houston, TX 77046
(an investment partnership); Dana R. Sutton
Chief Executive Officer, Vice President and Treasurer INVESTMENT MANAGER
Plantagenet Holdings, Ltd.
(an investment banking firm) Samuel D. Sirko A I M Advisors, Inc.
Vice President and Secretary 11 Greenway Plaza
Frank S. Bayley Suite 100
Partner, law firm of Melville B. Cox Houston, TX 77046
Baker & McKenzie Vice President
SUB-ADVISOR
Robert H. Graham Gary T. Crum
Director, President and Vice President INVESCO Asset Management Limited
Chief Executive Officer, 11 Devonshire Square
A I M Management Group Inc. Carol F. Relihan London EC2M 4YR
Vice President England
Ruth H. Quigley
Private Investor Mary J. Benson TRANSFER AGENT
Assistant Vice President and
Assistant Treasurer A I M Fund Services, Inc.
P.O. Box 4739
Sheri Morris Houston, TX 77210-4739
Assistant Vice President and
Assistant Treasurer CUSTODIAN
Nancy L. Martin State Street Bank and Trust Company
Assistant Secretary 225 Franklin Street
Boston, MA 02110
Ofelia M. Mayo
Assistant Secretary COUNSEL TO THE FUND
Kathleen J. Pflueger Kirkpatrick & Lockhart LLP
Assistant Secretary 1800 Massachusetts Avenue, N.W.
Washington, D.C. 20036-1800
COUNSEL TO THE TRUSTEES
Paul, Hastings, Janofsky & Walker LLP
Twenty Third Floor
555 South Flower Street
Los Angeles, CA 90071
DISTRIBUTOR
A I M Distributors, Inc.
11 Greenway Plaza
Suite 100
Houston, TX 77046
</TABLE>
13
<PAGE> 16
THE AIM FAMILY OF FUNDS--Registered Trademark--
<TABLE>
<CAPTION>
EQUITY FUNDS
<S> <C> <C>
DOMESTIC EQUITY FUNDS INTERNATIONAL/GLOBAL EQUITY FUNDS
MORE AGGRESSIVE MORE AGGRESSIVE A I M Management Group Inc. has provided
leadership in the mutual fund industry since
AIM Small Cap Opportunities(1) AIM Latin American Growth 1976 and managed approximately $176 billion
AIM Mid Cap Opportunities(2) AIM Developing Markets in assets for more than 8 million
AIM Large Cap Opportunities AIM Asian Growth shareholders, including individual investors,
AIM Emerging Growth AIM Japan Growth corporate clients and financial institutions,
AIM Small Cap Growth(3) AIM European Development as of June 30, 2000.
AIM Aggressive Growth AIM Euroland Growth(5) The AIM Family of Funds--Registered
AIM Mid Cap Growth AIM Global Aggressive Growth Trademark-- is distributed nationwide, and
AIM Capital Development AIM International Equity AIM today is the eighth-largest mutual fund
AIM Constellation(4) AIM Advisor International Value complex in the United States in assets under
AIM Dent Demographic Trends AIM Global Trends(6) management, according to Strategic Insight,
AIM Select Growth AIM Global Growth an independent mutual fund monitor.
AIM Large Cap Growth AIM is a subsidiary of AMVESCAP PLC, one
AIM Weingarten MORE CONSERVATIVE of the world's largest independent financial
AIM Mid Cap Equity services companies with $389 billion in
AIM Charter assets under management as of June 30, 2000.
AIM Value
AIM Blue Chip SECTOR EQUITY FUNDS
AIM Basic Value
AIM Large Cap Basic Value MORE AGGRESSIVE
AIM Balanced
AIM Advisor Flex AIM Global Telecommunications and Technology
AIM Global Resources
MORE CONSERVATIVE AIM Global Financial Services
AIM Global Health Care
AIM Global Consumer Products and Services
AIM Global Infrastructure
AIM Advisor Real Estate
AIM Global Utilities
MORE CONSERVATIVE
FIXED-INCOME FUNDS
TAXABLE FIXED-INCOME FUNDS TAX-FREE FIXED-INCOME FUNDS
MORE AGGRESSIVE MORE AGGRESSIVE
AIM Strategic Income AIM High Income Municipal
AIM High Yield II AIM Tax-Exempt Bond of Connecticut [AIM FUNDS LOGO HERE]
AIM High Yield AIM Municipal Bond --Registered Trademark--
AIM Income AIM Tax-Free Intermediate
AIM Global Income AIM Tax-Exempt Cash [INVEST WITH DISCIPLINE LOGO]
AIM Floating Rate(7) --Registered Trademark--
AIM Intermediate Government
AIM Limited Maturity Treasury MORE CONSERVATIVE
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 MFS AWARD LOGO APPEARS HERE]
A I M Distributors, Inc. ERG-SAR-1
