<PAGE> 1
ANNUAL REPORT / DECEMBER 31 1999
AIM NEW PACIFIC GROWTH FUND
[COVER IMAGE]
[AIM LOGO APPEARS HERE]
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[COVER IMAGE]
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MOUNTAIN AND PALM TREE LANDSCAPE BY SHERRI SILVERMAN
BEAUTIFUL AT FIRST GLANCE, SILVERMAN'S VIBRANT PAINTINGS OFFER
EVEN GREATER REWARDS TO THE CONTEMPLATIVE VIEWER. DRAWING
THEIR POWER FROM THE SIMPLEST SHAPES AND PUREST PIGMENTS, HER
WORKS DISCARD REALISTIC REPRESENTATION IN FAVOR OF INTENSE
MOOD AND ATMOSPHERE. IN THE COVER PAINTING, SILVERMAN'S TROPI-
CAL COLORS MELT SEAMLESSLY TOGETHER INTO A DREAMLIKE VISION OF
EXOTIC LANDS.
-------------------------------------
AIM New Pacific Growth Fund is for shareholders who seek long-term growth of
capital. The fund invests primarily in equity securities of companies located in
Pacific-region countries other than Japan. Japan was eliminated from the fund's
Primary Investment Area on January 21, 1994.
ABOUT FUND PERFORMANCE AND PORTFOLIO DATA THROUGHOUT THIS REPORT:
o AIM New Pacific Growth Fund's performance figures are historical and reflect
changes in net asset value and the reinvestment of all distributions.
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, Class C and Advisor Class shares will
differ from that of its Class A shares due to different sales-charge
structure and expenses.
o Because Class C shares have been offered for less than a year (since
5/3/99), total return provided is cumulative total return that has not yet
been annualized.
o Effective 3/1/99, Advisor Class shares were closed to new investors.
Effective 2/11/00, after the close of the fiscal year, Advisor Class shares
converted to Class A shares.
o During the fiscal year ended 12/31/99, the fund paid distributions of
$0.0068 per share.
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 dollar relative to other currencies, the custodial
arrangements made for the fund's foreign holdings, accounting differences,
political risks and the lesser degree of public information required to be
provided by non-U.S. companies.
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 All Country (AC) Pacific Free ex-Japan Index is a group
of securities from all developed and emerging markets in the Pacific Rim
(except Japan) tracked by Morgan Stanley Capital International. MSCI's
"free" indexes account for the actual buyable securities available to
foreign investors by taking into account local market restrictions on share
ownership by foreigners.
o An investment cannot be made in any index listed. 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 NEITHER INSURED NOR
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 for the fund.
AIM NEW PACIFIC GROWTH FUND
<PAGE> 3
ANNUAL REPORT / CHAIRMAN'S LETTER
Dear Fellow Shareholder:
The fiscal year discussed in this report has reconfirmed our
[PHOTO OF faith in two long-established principles of investing:
Charles T. portfolio diversification and long-term thinking. We could
Bauer, title this report "What a Difference a Year Makes."
Chairman of An investor surveying conditions when the fiscal year
the Board of opened on January 1, 1999, would have seen a market
THE FUND dominated by large-capitalization stocks and high-quality
APPEARS HERE] bonds, especially U.S. Treasuries. During 1998, two
well-known indexes of large-capitalization U.S. companies,
the S&P 500 and the Dow Jones Industrial Average, were up
28.60% and 18.15%, respectively. By contrast,
smaller-company stocks in the Russell 2000 had lost 2.55%.
Overseas, many markets were languishing, especially in Asia,
where so many financial difficulties had originated in 1997.
In bond markets as well, name-brand quality was the
place to be. The Lehman Government/Corporate Bond Index,
which follows sovereign issues and investment-grade debt, was up 9.47%, while
the Lehman High Yield Index, which tracks riskier "junk bonds," had risen only
1.60%.
It would be easy for an investor to conclude that blue-chip issues, whether
equity or fixed-income, were the place to be, that it was time to divest himself
of everything else and put all his eggs in the blue-chip basket. The investor,
of course, would be wrong.
MARKETS TURN
While large-capitalization stocks continued to do very well, during 1999 markets
broadened dramatically with many investment sectors performing a complete
turnaround. For example, the small-cap stocks in the Russell 2000 were up 21.26%
for calendar year 1999, and many Asian markets, particularly Japan, had staged a
comeback.
The same holds true of bonds. The higher-quality Lehman index was down 2.15%
during 1999 while the Lehman High Yield index was up 2.39%.
The point, at the risk of sounding repetitive to those of you who have
invested with us for a long time, is that this is why diversification is a
fundamental investing principle. Market sectors and asset classes go in and out
of favor, but over the long run--and the long run is several years--the markets'
overall trend has been upward. Selecting an asset class or a market sector on
the basis of a short-term snapshot of conditions is usually unwise, as is
concentrating your portfolio in one asset class. Staying fully invested in a
diversified portfolio remains a compelling strategy and one of your best
prospects for long-term gain. We also continue to remind you that the past few
years have seen extraordinary gains in some markets, and there is no assurance
that this trend will continue.
LOOKING AHEAD
As we look about at the close of this fiscal year, we are encouraged by multiple
signs of economic health in Europe and Asia, not to mention the prolonged U.S.
economic expansion. However, we are aware of how easily an investor could have
been misled by conditions just 12 months ago. For our shareholders, we therefore
reiterate our commitment to investing through a financial advisor. In addition
to helping you select investments appropriate to your time horizon and risk
tolerance, a financial advisor can keep you informed about how changing market
conditions affect you and your portfolio--and help ensure that when you do alter
your investments, there's a logical reason for doing so. AIM believes every
investor should be guided by a financial professional.
FUND MANAGERS COMMENT
In the pages that follow, your fund's portfolio managers discuss how they
managed your fund during the year ended December 31, how the markets behaved and
what they foresee for the near future. We trust you will find their discussion
informative. If you have any questions or comments, we invite you to contact us,
either at our Web site, aimfunds.com, or through our Client Services department
at 800-959-4246. Information about your account is also available through our
automated AIM Investor Line, 800-246-5463.
Thank you for your continued participation in The AIM Family of
Funds--Registered Trademark--.
Sincerely,
/s/ CHARLES T. BAUER
Charles T. Bauer
Chairman
A I M Advisors, Inc.
-------------------------------------
STAYING FULLY
INVESTED IN A DIVERSIFIED
PORTFOLIO REMAINS
A COMPELLING STRATEGY
AND ONE OF YOUR
BEST PROSPECTS FOR
LONG-TERM GAIN.
-------------------------------------
AIM NEW PACIFIC GROWTH FUND
<PAGE> 4
ANNUAL REPORT / MANAGERS' OVERVIEW
HONG KONG COMEBACK BOOSTS
FUND PERFORMANCE
HOW DID THE FUND PERFORM DURING THE FISCAL YEAR?
AIM New Pacific Growth Fund produced a 45.42% total return for Class A shares,
44.59% for Class B shares and 45.90% for Advisor Class shares. These returns are
at net asset value, without a sales charge. The fund's benchmark, the MSCI All
Country (AC) Pacific Free ex-Japan Index, returned 46.89% for the same period.
Class C shares produced a cumulative total return of 22.51% from their inception
(5/3/99) through the close of the fiscal year. Net assets closed the period at
$139 million, up from $114 million at the close of the last fiscal year.
WHAT WERE MARKETS LIKE DURING THE FISCAL YEAR?
Asian markets enjoyed a record year in 1999 on the back of recovering economic
conditions, strong earnings growth, lower interest rates and the increased
valuations of Internet-related stocks. We saw a great performance divide among
markets and sectors. Korea and Indonesia gained more than 90% during the year,
while the Philippines was almost flat. The returns of the MSCI Malaysia Index
(which is measured in U.S. dollars) were distorted by currency valuation changes
resulting from capital controls imposed by the Malaysian government during the
Asian financial crisis.
Internet stocks were the clear winners in 1999. Technology and
Internet-related sectors such as telecommunications, software and telecom and
communications products massively outperformed the broad markets. The optimism
about technology stocks led to the heightened valuations of these sectors.
On the economic front, the statistics continue to confirm our view that the
Asian recovery is sustained. Reported gross domestic product growth throughout
the year was higher than expected. Rising economic activity in Asian countries
and Organization for Economic Cooperation and Development nations have
translated into greater demand for Asian products, which has led to rising
industrial production and export growth in Asia.
DID YOU FAVOR ANY COUNTRIES?
Over the year, we significantly increased our weightings in Korea and Taiwan.
Korea has led the region's economic recovery. The market valuation is also very
undemanding, as corporate earnings benefit from restructuring, deleveraging and
falling interest rates, as well as increased demand translating into improving
capacity utilization. Taiwan is also benefiting from stronger external demand,
since its economy is highly correlated to GDP statistics of other nations.
Consequently, stocks such as Taiwan Semiconductor Manufacturing and the
Korean-based Samsung Electronics have performed strongly for the fund.
Our weighting in Hong Kong has also been raised. Hong Kong's economic
recovery has lagged those of other countries because its economy is
service-based; it is set to benefit from the region's economic lift.
The liquidity environment has remained benign. The improving outlook for
the Chinese economy has prompted us to buy China-related stocks such as China
Everbright Holdings and Cosco Pacific.
WERE THERE COUNTRIES IN WHICH YOU REDUCED YOUR HOLDINGS?
We continued to decrease our Australian weightings as the rest of the Asian
economies sustained their comeback. The fund's Australian exposure has been
GROWTH OF NET ASSETS
In millions
================================================================================
12/31/98 $114
12/31/99 $139
================================================================================
-------------------------------------
WHEN YOU MARRY A STRONG, RELA-
TIVELY LONG EARNINGS CYCLE WITH
IMPROVING ECONOMIC GROWTH AND
MARKETS THAT ARE STILL REASONABLY
VALUED, YOU HAVE A GOOD RECIPE
FOR EQUITY PERFORMANCE.
-------------------------------------
See important fund and index disclosures inside front cover.
AIM NEW PACIFIC GROWTH FUND
2
<PAGE> 5
ANNUAL REPORT / MANAGERS' OVERVIEW
PORTFOLIO COMPOSITION
As of 12/31/99, based on total net assets
<TABLE>
<CAPTION>
=============================================================================================================
TOP 10 EQUITY HOLDINGS TOP 10 INDUSTRIES
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
1. Hutchison Whampoa Ltd. (Hong Kong) 8.67% 1. Banks (Major Regional) 15.30%
2. Cheung Kong (Holdings) Ltd. (Hong Kong) 8.18 2. Land Development 11.30
3. Samsung Electronics Co. (South Korea) 4.46 3. Retail (Food Chains) 8.67
4. LG Information and Communication (South Korea) 3.42 4. Telephone 6.88
5. Broken Hill Proprietary Company Ltd. (Australia) 3.40 5. Computer Hardware 6.78
6. Taiwan Semiconductor Manufacturing Co. (Taiwan) 3.33 6. Electronics (Component Distributors) 6.71
7. Cable & Wireless HKT (Hong Kong) 3.32 7. Investment Banking/Brokerage 5.45
8. HSBC Holdings PLC (United Kingdom) 3.13 8. Metals Mining 4.93
9. DBS Group Holdings Ltd. (Singapore) 2.77 9. Communications Equipment 4.21
10. Kookmin Bank (South Korea) 2.59 10. Banks (Regional) 3.56
<CAPTION>
TOP 10 COUNTRIES
<S> <C>
1. Hong Kong 27.03%
2. South Korea 19.69
3. Taiwan 14.67
4. Singapore 9.98
5. Australia 7.32
6. Thailand 4.64
7. Philippines 3.88
8. United Kingdom 3.13
9. Indonesia 2.66
10. Malaysia 2.53
The fund's portfolio is subject to change, and there is no assurance that the fund will continue to hold any
particular security.
=============================================================================================================
</TABLE>
to stocks of basic industries and commodities, such as iron and steel, which
underperformed last year. One Australian holding that did perform well for us is
Broken Hill Proprietary, Australia's largest company; its mineral assets include
copper, iron ore, manganese, gold and coal. We saw better investment
opportunities elsewhere in the region, given the much faster gross domestic
product (GDP) growth and the lesser threat of inflation. Moreover, corporate
earnings growth has accelerated in other regions in which the fund invests.
WHICH HOLDINGS CONTRIBUTED MOST TO THE FUND'S STELLAR PERFORMANCE?
The fund's largest holding, Hutchison Whampoa (a Hong Kong-based company), was
our best performer over the year. The company is truly diversified; it has
extensive interests in ports and shipping, telecommunications, food processing
and distribution, retailing, manufacturing and real estate, and its business
reaches through Hong Kong to China, the United Kingdom, and around the globe.
A South Korean company that is a household name in the United States,
Samsung Electronics, also contributed significantly to the fund's performance
during the year. Samsung is one of the world's largest makers of computer-memory
chips. Strong demand for DRAM semiconductors, the company's move into the
manufacturing of mobile phones and an undemanding valuation all make Samsung a
star performer for the portfolio.
WHAT IS YOUR OUTLOOK FOR 2000?
Overall we're fairly positive on Asia right now. When you marry a strong,
relatively long earnings cycle with improving economic growth and markets that
are still reasonably valued, you have a good recipe for equity performance.
For the moment, attractive investment fundamentals are being overshadowed by
several issues: investor concerns about demand in the United States (a major
export destination for Asian-produced goods), U.S. interest rates and a nascent
Japanese recovery. These issues are worthy of consideration since Asia's
recovery is geared to global economic growth. However, it's important to
remember that a major element of Asia's economic potential is in its large
population, and domestic personal consumption bears heavily on continued
recovery. Asian consumers have enormous savings; once they begin to feel secure
about their jobs, they will exert their buying power.
-------------------------------------
. . . A MAJOR ELEMENT OF ASIA'S
ECONOMIC POTENTIAL IS IN ITS LARGE
POPULATION, AND DOMESTIC PERSON-
AL CONSUMPTION BEARS HEAVILY ON
CONTINUED RECOVERY.
-------------------------------------
See important fund and index disclosures inside front cover.
AIM NEW PACIFIC GROWTH FUND
3
<PAGE> 6
ANNUAL REPORT / PERFORMANCE HISTORY
YOUR FUND'S LONG-TERM PERFORMANCE
RESULTS OF A $10,000 INVESTMENT
AIM NEW PACIFIC GROWTH FUND VS. BENCHMARK INDEX
12/31/89-12/31/99
In thousands
================================================================================
AIM New Pacific MSCI AC
Growth Fund, Pacific Free
Class A shares ex-Japan Index
- --------------------------------------------------------------------------------
12/31/89 9453 10000
12/31/90 8417 8813.76
12/31/91 9517 11669.2
12/31/92 8759 12822.6
12/31/93 14068 23714.7
12/31/94 11292 20727.9
12/31/95 12133 22801.1
12/31/96 14565 24643.3
12/31/97 8121 16214.1
12/31/98 6571 15498
12/31/99 9555 23273
Past performance cannot guarantee comparable future results.
================================================================================
MARKET VOLATILITY CAN SIGNIFICANTLY IMPACT SHORT-TERM PERFORMANCE. THE RESULTS
OF AN INVESTMENT MADE TODAY MAY DIFFER SUBSTANTIALLY FROM THE HISTORICAL
PERFORMANCE SHOWN.
AVERAGE ANNUAL TOTAL RETURNS
As of 12/31/99, including sales charges
================================================================================
CLASS A SHARES
Inception (1/19/77) 9.55%
10 Years -0.45%
5 Years -4.37%
1 Year 37.48%*
*45.42% excluding sales charges
CLASS B SHARES
Inception (4/1/93) -0.70%
5 Years -4.22%
1 Year 39.59%*
*44.59% excluding CDSC
ADVISOR CLASS SHARES*
Inception (6/1/95) -4.90%
3 Years -12.82%
1 Year 45.90%
*Sales charges do not apply.
CLASS C SHARES
Inception (5/3/99) 21.51%*
*22.51% excluding CDSC
Source: Lipper, Inc.
================================================================================
Your fund's total return includes sales charges, expenses and management fees.
The performance of the fund's Class B, Class C and Advisor Class shares will
differ from that of its Class A shares due to different sales-charge structure
and expenses. For fund performance calculations and descriptions of the index
cited on this page, please see the inside front cover.
ABOUT THIS CHART
This chart compares your fund's Class A shares to its benchmark index. It is
intended to give you an idea of how your fund performed compared to this index
over the period 12/31/89-12/31/99. It is important to understand the difference
between your fund and an index. An index measures the performance of a
hypothetical portfolio. A market index like the MSCI All Country (AC) Pacific
Free ex-Japan Index is unmanaged, incurring no sales charges, expenses or fees.
If you could buy all the securities that make up a market index, you would incur
expenses that would affect your investment's return.
AIM NEW PACIFIC GROWTH FUND
4
<PAGE> 7
ANNUAL REPORT / FOR CONSIDERATION
[COVER IMAGE]
CHOOSE YOUR INVESTMENT PALETTE
No two pieces of art are exactly alike. Just as an artist may use different
paints to create a piece, so does an investor use different kinds of investments
to create a portfolio. And as with art, tastes can change over time--most
investors have different goals at different stages in their lives, as well as
varying tolerance for risk. The biggest advantage mutual funds offer is the
potential for diversification. Providing funds with assorted objectives and
goals allows investors to shape their portfolios to their specific needs and
spread their risk over several different funds, rather than painting their
portfolios all one color.
GROWTH VS. INCOME
If you look at the list of AIM's retail mutual funds on the back of your fund
report, you'll notice that they are divided into different types. Two that
frequently appear are growth and income. Common stock is normally the growth
component of a mutual fund with growth as a primary or secondary objective.
Bonds are typically the income components of a mutual fund with income as a
primary or secondary objective.
Let's take a closer look at the categories into which AIM's retail mutual
funds are divided. Keep in mind that funds listed under the same category don't
necessarily have the same kind of investment strategy or portfolio, even if they
have the same objective.
DOMESTIC MUTUAL FUNDS
GROWTH FUNDS
Growth funds typically invest in common stocks of companies whose businesses are
growing. Growth companies tend to reinvest their profits toward expansion of
their potential to produce greater returns instead of paying dividends. So
growth mutual funds focus on generating capital gains--increasing the value of
the stocks they hold--rather than current income, which means they
generally don't pay regular income dividends. Growth funds usually do, however,
make one capital-gains distribution per year, when there are gains.
An increase over time in the value of a growth fund's portfolio means the
fund's value, or share price, increases over time also. Shareholders in a growth
fund, then, make money by selling their shares for more than they paid for them.
Of course, the opposite is also true--shareholders can lose money by selling
their shares for less than they paid for them. Growth funds usually range from
moderate to very aggressive, depending on the size and types of companies in
which they invest.
GROWTH AND INCOME FUNDS
A growth and income fund generally invests in common and preferred stocks and
bonds of older, more established companies that have a longer track record of
growth and paying dividends.
A typical growth and income mutual fund will pay quarterly or annual income
dividends to its shareholders. (Monthly dividends are not common.) In this way,
growth and income funds can potentially provide long-term growth of investments
and also current income. These funds tend to be more conservative than growth
funds.
INCOME FUNDS
Income funds are generally designed to provide high current income rather than
long-term growth. To that end, income funds usually invest chiefly in
interest-paying corporate and government bonds. They may also own stocks of
companies that pay regular dividends. Some income funds are more aggressive than
others. The aggressiveness of a particular fund depends not only on the kinds of
securities in which it invests, but also on the fund's sector allocation and
maturity structure.
AIM NEW PACIFIC GROWTH FUND
5
<PAGE> 8
ANNUAL REPORT / FOR CONSIDERATION
For example, Treasury securities are considered a relatively safe investment
because they are guaranteed by the U.S. government. However, lower risk also
means lower return potential. On the other hand, lower-rated corporate bonds,
often called junk bonds, involve more risk because they are not guaranteed--they
are only as good as the companies that issue them. But the added risk also means
higher return potential.
Income funds are considered more conservative and are suited for investors
seeking income rather than growth.
TAX-FREE INCOME OR MUNICIPAL FUNDS
These funds provide shareholders with current income that is tax-exempt at some
level, depending on the securities in which they invest. So municipal mutual
funds appeal to investors who are looking to reduce income that would otherwise
be subject to tax. Municipal bonds or notes, which are issued by state or local
governments, are generally exempt from federal taxes. Federal securities, like
Treasury bonds, are usually exempt from state taxes. And then there are some
securities that are exempt from both federal and state taxes.(1)
MONEY MARKET FUNDS
A money market fund is one of the safest types of mutual funds available because
its main goal is preserving your investment while paying current income in the
form of interest. As a result, these funds tend to appeal to investors looking
for safety, liquidity and some income from their investment. Money market funds
invest in high-quality, short-term securities such as commercial paper and U.S.
government agency securities. Although money market funds are not guaranteed or
insured by the U.S. government, the securities they hold are less risky than
other types of fixed-income securities. The trade-off for safety of principal
investment is a lower rate of return.(2)
INTERNATIONAL AND GLOBAL MUTUAL FUNDS
INTERNATIONAL GROWTH FUNDS
An international growth fund has the same objective as a domestic growth fund,
except it invests in stocks of companies located outside the United States. Like
their domestic counterparts, international growth funds tend to pay
distributions in the form of capital gains rather than dividends. An
international growth mutual fund might invest in a particular country, region or
continent depending on the investment strategy shown in its prospectus.
International funds carry different risks than domestic funds because most
foreign markets are not as established as the markets in the United States.
Other risks include changes in the value of the U.S. dollar compared to foreign
currencies, accounting differences, political risks and foreign regulatory
differences.
GLOBAL GROWTH, GLOBAL GROWTH AND INCOME, AND GLOBAL INCOME FUNDS
These funds are similar to their domestic equivalents in terms of their goals
and the income distributions they pay. Global funds are comparable to
international funds in that they can invest in stocks of companies outside the
United States. But global funds can also invest substantially in U.S. stocks;
international funds generally do not. The amount of a global fund's portfolio
that can be invested in the United States varies greatly from fund to fund,
according to a fund's prospectus. Global funds carry the same risks as
international funds.
SPECIALIZED FUNDS
THEME FUNDS
Theme or sector funds invest primarily in a particular industry or sector of the
economy, either domestically or globally. Theme funds are required by prospectus
to invest a certain percentage of their assets in their industry or sector of
choice under normal market conditions. As a result, theme funds present greater
risk and potential reward than more diversified funds. The types of securities
held by a theme fund determine its goal of growth and/or income.
TYPES OF FUND DISTRIBUTIONS
INCOME DIVIDENDS are paid from dividends and/or interest from securities in a
fund's portfolio. For example, if a company in which a mutual fund owns stock
distributes some of its earnings to its shareholders as a dividend, the fund
passes on those earnings to its own shareholders. Income dividends are usually
taxed as ordinary income.
CAPITAL GAINS represent the net profit realized from the growth in value of the
holdings in a fund's portfolio. These distributions are usually made once per
year. There are two types of capital gains:
o Short-term capital gains are paid from net profits gained when a mutual fund
sells stocks or bonds it has held for less than a year. Short-term capital gains
are taxed as ordinary income.
o Long-term capital gains are paid from net profits gained when a mutual fund
sells stocks or bonds it has held for more than a year. Long-term capital gains
are usually taxed at the capital-gains rate, which is typically lower than
ordinary income-tax rates.
(1) Investors in tax-free income funds still have a risk of incurring taxes on
capital-gains distributions, for example, so it's wise to see your tax advisor
before investing in such funds.
(2) There is no guarantee that a money market fund will be able to maintain a
stable net asset value of $1.00 per share.
See the back cover for a complete list of AIM's retail mutual funds. For more
information about your fund's objective, read your fund prospectus. 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.
AIM NEW PACIFIC GROWTH FUND
6
<PAGE> 9
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1999
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
FOREIGN STOCKS & OTHER EQUITY
INTERESTS-96.49%
AUSTRALIA-7.32%
Broken Hill Proprietary Co. Ltd.
(Iron & Steel) 360,350 $ 4,735,236
- --------------------------------------------------------------
North Ltd. (Metals Mining) 893,050 2,106,374
- --------------------------------------------------------------
WMC Ltd. (Metals Mining) 607,000 3,349,912
- --------------------------------------------------------------
10,191,522
- --------------------------------------------------------------
CHINA-0.96%
Angang New Steel Co. Ltd. (Metal
Fabricators)(a) 6,000,000 478,549
- --------------------------------------------------------------
Beijing Yanhua Petrochemical Co.
Ltd. (Chemicals-Diversified) 7,364,000 852,589
- --------------------------------------------------------------
1,331,138
- --------------------------------------------------------------
HONG KONG-27.03%
Bank of East Asia, Ltd.
(Banks-Major Regional) 1,000,000 2,778,671
- --------------------------------------------------------------
Cable & Wireless HKT Ltd.
(Telephone) 1,600,200 4,621,405
- --------------------------------------------------------------
Celestial Asia Securities Holdings
Ltd. (Investment
Banking/Brokerage)(a) 8,000,000 1,018,846
- --------------------------------------------------------------
Cheung Kong Holdings Ltd. (Land
Development) 900,000 11,375,185
- --------------------------------------------------------------
Cosco Pacific Ltd.
(Financial-Diversified) 2,700,000 2,240,304
- --------------------------------------------------------------
Great Wall Technology Co.
(Electronics- Component
Distributors)(a) 1,300,000 1,262,623
- --------------------------------------------------------------
Hutchison Whampoa Ltd. (Retail-Food
Chains) 830,000 12,065,350
- --------------------------------------------------------------
Pacific Century CyberWorks Ltd.
(Communications-Equipment)(a) 472,000 1,099,016
- --------------------------------------------------------------
Yizheng Chemical Fibre Co., Ltd.
(Chemicals- Specialty)(a) 4,088,000 1,143,809
- --------------------------------------------------------------
37,605,209
- --------------------------------------------------------------
INDONESIA-2.66%
PT Indah Kiat Pulp & Paper Corp.
Tbk (Paper & Forest Products)(a) 2,700,000 1,062,612
- --------------------------------------------------------------
PT Lippo Bank Tbk (Banks-Major
Regional)(a) 73,600,000 2,633,274
- --------------------------------------------------------------
3,695,886
- --------------------------------------------------------------
MALAYSIA-2.53%
Berjaya Sports Toto Berhad (Leisure
Time- Products) 600,000 1,294,839
- --------------------------------------------------------------
Malayan Banking Berhad (Banks-Major
Regional) 210,000 746,111
- --------------------------------------------------------------
Telekom Malaysia Berhad (Telephone) 381,750 1,476,886
- --------------------------------------------------------------
3,517,836
- --------------------------------------------------------------
PHILIPPINES-3.88%
Equitable PCI Bank (Banks-Major
Regional) 520,000 1,154,839
- --------------------------------------------------------------
Philippine Long Distance Telephone
Co. (Telephone) 100,290 2,550,800
- --------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
PHILIPPINES-(CONTINUED)
San Miguel Corp.-Class B
(Beverages- Alcoholic) 1,200,000 $ 1,697,270
- --------------------------------------------------------------
5,402,909
- --------------------------------------------------------------
SINGAPORE-9.98%
DBS Group Holdings Ltd.
(Banks-Money Center) 235,010 3,852,160
- --------------------------------------------------------------
DBS Land Ltd. (Land Development) 1,000,000 1,969,379
- --------------------------------------------------------------
Keppel Land Ltd. (Land Development) 1,450,000 2,376,764
- --------------------------------------------------------------
Neptune Orient Lines Ltd.
(Shipping)(a) 1,850,000 2,477,034
- --------------------------------------------------------------
Oversea-Chinese Banking Corp. Ltd.
(Banks- Major Regional) 350,000 3,215,251
- --------------------------------------------------------------
13,890,588
- --------------------------------------------------------------
SOUTH KOREA-19.69%
Kookmin Bank (Banks-Major Regional) 230,044 3,606,150
- --------------------------------------------------------------
Korea Electric Power Corp.
(Electric Companies) 50,000 1,549,978
- --------------------------------------------------------------
Korea Telecom Corp.-ADR (Telephone) 12,380 925,405
- --------------------------------------------------------------
L.G. Chemical Ltd.
(Chemicals-Diversified) 90,000 2,845,442
- --------------------------------------------------------------
L.G. Information & Communication
(Communications Equipment) 28,747 4,759,521
- --------------------------------------------------------------
Merrill Lynch International & Co.
KOSPI 200- Wts., expiring
12/14/00 573,354 6,565,477
- --------------------------------------------------------------
Samsung Electronics
(Electronics-Component
Distributors) 26,514 6,211,118
- --------------------------------------------------------------
Shinhan Bank-GDR (Banks-Major
Regional)(a) 49,300 934,235
- --------------------------------------------------------------
27,397,326
- --------------------------------------------------------------
TAIWAN-14.67%
Acer Peripherals Inc.
(Computers--Hardware) 730,000 3,023,737
- --------------------------------------------------------------
Asustek Computer, Inc.
(Computers-Hardware) 168,176 1,773,658
- --------------------------------------------------------------
Cathay Life Insurance Co., Ltd.
(Insurance Brokers) 805,000 1,936,514
- --------------------------------------------------------------
China Steel Corp. (Metals Mining) 1,893,000 1,399,318
- --------------------------------------------------------------
Chinatrust Commercial Bank (Banks-
Regional)(a) 2,476,320 2,879,901
- --------------------------------------------------------------
Formosa Plastics Corp.
(Chemicals-Specialty) 749,000 1,491,556
- --------------------------------------------------------------
Hon Hai Precision Industry Co.,
Ltd. (Electronics-Component
Distributors)(a) 250,000 1,863,948
- --------------------------------------------------------------
Shinkong Synthetic Fibers Corp.
(Chemicals- Specialty)(a) 5,000,000 1,401,944
- --------------------------------------------------------------
Taiwan Semiconductor Manufacturing
Co. Ltd. (Computers-Hardware)(a) 871,500 4,637,263
- --------------------------------------------------------------
20,407,839
- --------------------------------------------------------------
</TABLE>
7
<PAGE> 10
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
THAILAND-4.64%
Industrial Finance Corp. of
Thailand (Banks- Regional)(a) 1,934,400 $ 950,123
- --------------------------------------------------------------
Shin Corporations Public Co. Ltd.
(Computers- Software &
Services)(a) 266,800 2,521,726
- --------------------------------------------------------------
Siam Commercial Bank Public Co.
Ltd.-$1.365 Conv. Pfd.
(Banks-Regional) (Acquired
10/22/99-11/03/99; Cost
$998,418)(b) 914,300 1,116,628
- --------------------------------------------------------------
Thai Farmers Bank Public Co. Ltd.
(Banks- Major Regional)(a) 1,114,300 1,863,823
- --------------------------------------------------------------
6,452,300
- --------------------------------------------------------------
UNITED KINGDOM-3.13%
HSBC Holdings PLC (Banks-Major
Regional) 310,263 4,350,507
- --------------------------------------------------------------
Total Foreign Stocks & Other
Equity Interests (Cost
$92,650,873) 134,243,060
- --------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
MONEY MARKET FUNDS-2.83%
STIC Liquid Assets Portfolio(c) 1,969,173 $ 1,969,173
- --------------------------------------------------------------
STIC Prime Portfolio(c) 1,969,173 1,969,173
- --------------------------------------------------------------
Total Money Market Funds (Cost
$3,938,346) 3,938,346
- --------------------------------------------------------------
TOTAL INVESTMENTS-99.32% (Cost
$96,589,219) 138,181,406
- --------------------------------------------------------------
OTHER ASSETS LESS LIABILITIES-0.68% 940,001
- --------------------------------------------------------------
NET ASSETS-100.00% $139,121,407
==============================================================
</TABLE>
Investment Abbreviations:
ADR - American Depositary Receipt
Conv. - Convertible
GDR - Global Depositary Receipt
KOSPI - Korea Stock Price Index
Pfd. - Preferred
Wts. - Warrants
Notes to Schedule of Investments:
(a) Non-income producing security.
(b) Restricted security. May be resold to qualified institutional buyers in
accordance with the provisions of Rule 144A under the Securities Act of
1933, as amended. The valuation of this security has been determined in
accordance with procedures established by the Board of Trustees. The market
value of this security at 12/31/99 was $1,116,628 which represented 0.80% of
the Fund's net assets.
(c) The money market fund has the same investment advisor as the Fund.
See Notes to Financial Statements.
8
<PAGE> 11
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1999
<TABLE>
<S> <C>
ASSETS:
Investments, at market value (cost
$96,589,219) $138,181,406
- ---------------------------------------------------------
Foreign currencies, at value (cost $55,304) 55,527
- ---------------------------------------------------------
Receivables for:
Fund shares sold 1,448,414
- ---------------------------------------------------------
Dividends and interest 47,700
- ---------------------------------------------------------
Due from Advisor 45,000
- ---------------------------------------------------------
Other assets 46,280
- ---------------------------------------------------------
Total assets 139,824,327
- ---------------------------------------------------------
LIABILITIES:
Payable for fund shares reacquired 390,853
- ---------------------------------------------------------
Accrued distribution fees 178,398
- ---------------------------------------------------------
Accrued transfer agent fees 37,755
- ---------------------------------------------------------
Accrued operating expenses 95,914
- ---------------------------------------------------------
Total liabilities 702,920
- ---------------------------------------------------------
Net assets applicable to shares outstanding $139,121,407
- ---------------------------------------------------------
NET ASSETS:
Class A $ 99,154,776
=========================================================
Class B $ 38,583,585
=========================================================
Class C $ 496,168
=========================================================
Advisor Class $ 886,878
=========================================================
SHARES OUTSTANDING, $0.01 PAR VALUE PER
SHARE:
Class A 13,151,088
=========================================================
Class B 5,302,769
=========================================================
Class C 68,211
=========================================================
Advisor Class 117,537
=========================================================
Class A:
Net asset value price per share $ 7.54
- ---------------------------------------------------------
Offering price per share:
(Net asset value of $7.54 divided
by 94.50%) $ 7.98
=========================================================
Class B:
Net asset value and offering price per
share $ 7.28
=========================================================
Class C:
Net asset value and offering price per
share $ 7.27
=========================================================
Advisor Class:
Net asset value and offering price per
share $ 7.55
=========================================================
</TABLE>
STATEMENT OF OPERATIONS
For the year ended December 31, 1999
<TABLE>
<S> <C>
INVESTMENT INCOME:
Dividend (net of $229,220 foreign
withholding tax) $ 2,128,846
- ---------------------------------------------------------
Interest 195,186
- ---------------------------------------------------------
Security lending income 57,724
- ---------------------------------------------------------
Total investment income 2,381,756
- ---------------------------------------------------------
EXPENSES:
Advisory and administrative fees 1,208,295
- ---------------------------------------------------------
Accounting service fees 42,925
- ---------------------------------------------------------
Custodian fees 107,038
- ---------------------------------------------------------
Distribution fees -- Class A 308,929
- ---------------------------------------------------------
Distribution fees -- Class B 343,884
- ---------------------------------------------------------
Distribution fees -- Class C 1,868
- ---------------------------------------------------------
Trustees' fees 9,739
- ---------------------------------------------------------
Transfer agent fees 704,578
- ---------------------------------------------------------
Interest 70,042
- ---------------------------------------------------------
Other 247,448
- ---------------------------------------------------------
Total expenses 3,044,746
- ---------------------------------------------------------
Less: Expenses waived by advisors (278,210)
- ---------------------------------------------------------
Expenses paid indirectly and expense
reductions (57,023)
- ---------------------------------------------------------
Net expenses 2,709,513
- ---------------------------------------------------------
Net investment income (loss) (327,757)
- ---------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) FROM
INVESTMENT SECURITIES AND FOREIGN
CURRENCIES:
Net realized gain (loss) from:
Investment securities 18,882,190
- ---------------------------------------------------------
Foreign currencies (466,840)
- ---------------------------------------------------------
18,415,350
- ---------------------------------------------------------
Change in net unrealized appreciation
(depreciation) of:
Investment securities 36,762,028
- ---------------------------------------------------------
Foreign currencies (8,070)
- ---------------------------------------------------------
36,753,958
- ---------------------------------------------------------
Net gain from investment securities and
foreign currencies 55,169,308
- ---------------------------------------------------------
Net increase in net assets resulting from
operations $ 54,841,551
=========================================================
</TABLE>
See Notes to Financial Statements.
9
<PAGE> 12
STATEMENT OF CHANGES IN NET ASSETS
For the years ended December 31, 1999 and 1998
<TABLE>
<CAPTION>
1999 1998
------------ ------------
<S> <C> <C>
OPERATIONS:
Net investment income (loss) $ (327,757) $ 1,671,771
- --------------------------------------------------------------------------------------------
Net realized gain (loss) from investment securities and
foreign currencies 18,415,350 (40,073,782)
- --------------------------------------------------------------------------------------------
Change in net unrealized appreciation of investment
securities and foreign currencies 36,753,958 22,911,376
- --------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
operations 54,841,551 (15,490,635)
- --------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS IN EXCESS OF NET INVESTMENT INCOME:
Class A (87,958) (876,799)
- --------------------------------------------------------------------------------------------
Class B (36,209) (89,061)
- --------------------------------------------------------------------------------------------
Class C (254) --
- --------------------------------------------------------------------------------------------
Advisor Class (786) (19,770)
- --------------------------------------------------------------------------------------------
SHARE TRANSACTIONS-NET:
Class A (22,320,127) (46,870,786)
- --------------------------------------------------------------------------------------------
Class B (6,726,132) (15,289,487)
- --------------------------------------------------------------------------------------------
Class C 356,060 --
- --------------------------------------------------------------------------------------------
Advisor Class (968,323) (415,164)
- --------------------------------------------------------------------------------------------
Net increase (decrease) in net assets 25,057,822 (79,051,702)
- --------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 114,063,585 193,115,287
- --------------------------------------------------------------------------------------------
End of period $139,121,407 $114,063,585
============================================================================================
NET ASSETS CONSIST OF:
Shares of beneficial interest $166,689,561 $196,845,058
- --------------------------------------------------------------------------------------------
Undistributed net investment income (loss) (287,071) (22,386)
- --------------------------------------------------------------------------------------------
Undistributed net realized gain (loss) from investment
securities and foreign currencies (68,874,157) (87,598,203)
- --------------------------------------------------------------------------------------------
Unrealized appreciation of investment securities and
foreign currencies 41,593,074 4,839,116
- --------------------------------------------------------------------------------------------
$139,121,407 $114,063,585
============================================================================================
</TABLE>
See Notes to Financial Statements.
10
<PAGE> 13
NOTES TO FINANCIAL STATEMENTS
December 31, 1999
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES
AIM New Pacific Growth Fund (the "Fund") is a separate series of AIM Growth
Series (the "Trust"). The Trust is organized as a Delaware business trust and is
registered under the Investment Company Act of 1940, as amended (the "1940
Act"), as an open-end series management investment company consisting of six
separate series portfolios, each having an unlimited number of shares of
beneficial interest. The Fund consists of four different classes of shares:
Class A shares, Class B shares, Class C shares and Advisor Class shares. Class A
shares are sold with a front-end sales charge. Class B shares and Class C shares
are sold with a contingent deferred sales charge. Advisor Class shares are sold
without a sales charge. Effective March 1, 1999, the Fund discontinued sales of
the Advisor Class 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 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 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 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 trading 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 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 as earned from settlement date and is
recorded on the accrual basis. Dividend income is recorded on the
ex-dividend date. On December 31, 1999, undistributed net investment income
was increased by $188,279, undistributed net realized gains increased by
$308,696 and paid-in capital decreased by $496,975 as a result of differing
book/tax treatment of foreign currency transactions and other
reclassifications. Net assets of the Fund were unaffected by the
reclassifications.
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 of fund share 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. The Fund has a capital loss
carryforward of $67,710,923 as of December 31, 1999 which may be carried
forward to offset future taxable gains, if any, which expires in varying
increments, if not previously utilized, in the year 2006.
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 that
11
<PAGE> 14
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.
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 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. AIM has contractually agreed to limit the Fund's expenses
(exclusive of brokerage commissions, taxes, interest and extraordinary expenses)
to the maximum annual rate of 2.00%, 2.65%, 2.65% and 1.65% of the average daily
net assets of the Fund's Class A, Class B, Class C and Advisor Class shares,
respectively. During the year ended December 31, 1999, AIM waived fees of
$278,210.
Effective July 1, 1999, the Trust entered into a master administrative
services agreement with AIM, replacing the prior pricing and accounting
agreement. The Fund, pursuant to the master administrative services agreement
with AIM, has agreed to pay AIM for certain administrative costs incurred in
providing accounting services to the Fund. Prior to July 1, 1999, AIM was the
pricing and accounting agent for the Fund. The monthly fee for these services
paid to AIM was a percentage, not to exceed 0.03% annually, of a Fund's average
daily net assets. The annual fee rate was derived based on the aggregate net
assets of the funds which comprised the following investment companies: AIM
Growth Series, AIM Investment Funds, AIM Series Trust, G.T. Global Variable
Investment Series and G.T. Global Variable Investment Trust. The fee was
calculated at the rate of 0.03% of the first $5 billion of assets and 0.02% to
the assets in excess of $5 billion. An amount is allocated to and paid by each
such fund based on its relative average daily net assets. For the year ended
December 31, 1999, AIM was paid $42,925 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 year ended December 31, 1999, AFS was
paid $558,462 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
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 year ended December 31, 1999, the Class A,
Class B and Class C shares paid AIM Distributors $308,929, $343,884 and $1,868,
respectively, as compensation under the Plans.
AIM Distributors received commissions of $41,906 from sales of the Class A
shares of the Fund during the year ended December 31, 1999. Such commissions are
not an expense of the Fund. They are deducted from, and are not included in, the
proceeds from sales of Class A shares. During the year ended December 31, 1999,
AIM Distributors received $1,977 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-EXPENSE REDUCTIONS
During the year ended December 31, 1999, the Fund received reductions in
custodian fees of $4,301 under an expense offset arrangement and AIM directed
certain portfolio trades to brokers who then paid $52,722 of the Fund's
expenses. The effect of the above arrangements resulted in a reduction of the
Fund's total expenses of $57,023 during the year ended December 31, 1999.
NOTE 4-BANK BORROWINGS
The Fund is a participant in a committed line of credit facility with a
syndicate administered by The Chase Manhattan Bank. The Fund may borrow up to
the lesser of (i) $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. 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. Prior to May
28, 1999, the Fund, along with certain other funds advised and/or administered
by AIM, had a line
12
<PAGE> 15
of credit with BankBoston and State Street Bank & Trust Company. The
arrangements with the banks allowed the Fund and certain other funds to borrow,
on a first come, first served basis, an aggregate maximum amount of
$250,000,000.
During the year ended December 31, 1999, the average outstanding daily balance
of bank loans for the Fund was $1,268,718 with a weighted average interest rate
of 5.52%. Interest expense for the Fund for the year ended December 31, 1999 was
$70,042.
NOTE 5-PORTFOLIO SECURITIES LOANED
At December 31, 1999, there were no securities on loans to brokers. For the year
ended December 31, 1999, the Fund received fees of $57,724 for securities
lending.
For international securities, cash collateral is received by the fund against
loaned securities in an amount at least equal to 105% of the market value of the
loaned securities at the inception of each loan. The collateral must be
maintained at not less than 103% of the market value of the loaned securities
during the period of the loan. For domestic securities, cash collateral is
received by the Fund against loaned securities in the amount at least equal to
102% of the market value of the loaned securities at the inception of each loan.
This collateral must be maintained at not less than 100% of the market value of
the loaned securities during the period of the loan. The cash collateral is
invested in a securities lending trust which consists of a portfolio of high
quality short duration securities whose average effective duration is restricted
to 120 days or less.
NOTE 6-INVESTMENT SECURITIES
The aggregate amount of investment securities (other than short-term securities)
purchased and sold by the Fund during the year ended December 31, 1999 was
$115,517,581 and $155,632,699, respectively.
The amount of unrealized appreciation (depreciation) of investment securities,
for tax purposes, as of December 31, 1999 was as follows:
<TABLE>
<S> <C>
Aggregate unrealized appreciation of
investment securities $43,173,298
- ---------------------------------------------------------
Aggregate unrealized (depreciation) of
investment securities (3,031,416)
- ---------------------------------------------------------
Net unrealized appreciation of investment
securities $40,141,882
=========================================================
</TABLE>
Cost of investments for tax purposes is $98,039,524.
NOTE 7-SHARE INFORMATION
Changes in shares outstanding during the years ended December 31, 1999 and 1998
were as follows:
<TABLE>
<CAPTION>
1999 1998
---------------------------- ------------------------------
SHARES AMOUNT SHARES AMOUNT
------------ ------------- ------------ ---------------
<S> <C> <C> <C> <C>
Sold:
Class A 113,808,832 $ 643,233,897 220,054,764 $ 1,179,166,766
- ---------------------------------------------------------------------------------------------------------------------------
Class B 17,687,564 97,412,284 29,096,684 151,336,461
- ---------------------------------------------------------------------------------------------------------------------------
Class C* 768,672 4,718,277 -- --
- ---------------------------------------------------------------------------------------------------------------------------
Advisor Class 314,081 1,824,518 5,119,563 27,073,240
- ---------------------------------------------------------------------------------------------------------------------------
Issued as reinvestment of dividends:
Class A 13,533 90,093 151,132 760,569
- ---------------------------------------------------------------------------------------------------------------------------
Class B 4,886 32,636 15,481 77,283
- ---------------------------------------------------------------------------------------------------------------------------
Class C* 21 140 -- --
- ---------------------------------------------------------------------------------------------------------------------------
Advisor Class 109 757 3,439 17,402
- ---------------------------------------------------------------------------------------------------------------------------
Reacquired:
Class A (116,247,910) (665,644,117) (225,597,779) (1,226,798,121)
- ---------------------------------------------------------------------------------------------------------------------------
Class B (18,708,171) (104,171,052) (31,689,112) (166,703,231)
- ---------------------------------------------------------------------------------------------------------------------------
Class C* (700,482) (4,362,357) -- --
- ---------------------------------------------------------------------------------------------------------------------------
Advisor Class (467,522) (2,793,598) (5,082,992) (27,505,806)
- ---------------------------------------------------------------------------------------------------------------------------
(3,526,387) $ (29,658,522) (7,928,820) $ (62,575,437)
===========================================================================================================================
</TABLE>
* Class C Shares commenced sales on May 3, 1999.
13
<PAGE> 16
NOTE 8-FINANCIAL HIGHLIGHTS
Shown below are the financial highlights for a share of Class A and Class B
outstanding during each of the years in the five-year period ended December 31,
1999, for a share of Class C outstanding during May 3, 1999 (date sales
commenced) through December 31, 1999 and for a share of Advisor Class
outstanding during each of the years in four-year period ended December 31, 1999
and the period June 1, 1995 (date operations commenced) through December 31,
1995.
<TABLE>
<CAPTION>
CLASS A
----------------------------------------------------
1999(a) 1998(a) 1997(a) 1996(a) 1995(a)
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 5.19 $ 6.48 $ 13.12 $ 12.47 $ 12.10
- ------------------------------------------------------------ ------- -------- -------- -------- --------
Income from investment operations:
Net investment income (loss) (0.01) 0.06 0.05 0.02 0.11
- ------------------------------------------------------------ ------- -------- -------- -------- --------
Net realized and unrealized gain (loss) on investments 2.37 (1.30) (5.84) 2.44 0.79
- ------------------------------------------------------------ ------- -------- -------- -------- --------
Net increase (decrease) from investment operations 2.36 (1.24) (5.79) 2.46 0.90
- ------------------------------------------------------------ ------- -------- -------- -------- --------
Distributions to shareholders:
In excess of net investment income (0.01) (0.05) (0.03) -- (0.10)
- ------------------------------------------------------------ ------- -------- -------- -------- --------
From net realized gains -- -- (0.82) (1.81) (0.43)
- ------------------------------------------------------------ ------- -------- -------- -------- --------
Total distributions (0.01) (0.05) (0.85) (1.81) (0.53)
- ------------------------------------------------------------ ------- -------- -------- -------- --------
Net asset value, end of period $ 7.54 $ 5.19 $ 6.48 $ 13.12 $ 12.47
============================================================ ======= ======== ======== ======== ========
Total return(b) 45.42% (19.09)% (44.24)% 20.04% 7.45%
============================================================ ======= ======== ======== ======== ========
Ratios and supplemental data:
Net assets, end of period (in 000s) $99,155 $80,824 $135,807 $361,244 $383,722
============================================================ ======= ======== ======== ======== ========
Ratio of net investment income (loss) to average net assets (0.08)%(c) 1.30% 0.41% 0.17% 0.91%
============================================================ ======= ======== ======== ======== ========
Ratio of expense to average net assets including interest:
With fee waivers 2.06%(c) 2.00% 1.66% 1.86% 1.89%
============================================================ ======= ======== ======== ======== ========
Without fee waivers 2.29%(c) 2.40% 1.93% 1.99% 1.94%
============================================================ ======= ======== ======== ======== ========
Ratio of expenses to average net assets, excluding interest
expense:
With fee waivers 2.00%(c) 2.00% 1.66% 1.86% 1.89%
============================================================ ======= ======== ======== ======== ========
Without fee waivers 2.23%(c) 2.40% 1.93% 1.99% 1.94%
============================================================ ======= ======== ======== ======== ========
Ratio of interest expense to average net assets 0.06%(c) -- -- -- --
============================================================ ======= ======== ======== ======== ========
Portfolio turnover rate 98% 96% 80% 93% 63%
============================================================ ======= ======== ======== ======== ========
</TABLE>
(a) Calculated using average shares outstanding.
(b) Does not deduct sales charges.
(c) Ratios are based on average net assets of $88,265,497.
<TABLE>
<CAPTION>
CLASS C
-----------
MAY 3, 1999
CLASS B THROUGH ADVISOR CLASS
-------------------------------------------------- DEC. 31, ------------------
1999(a) 1998(a) 1997(a) 1996(a) 1995(a) 1999(a) 1999(a) 1998(a)
------- ------- ------- -------- -------- ----------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 5.04 $ 6.28 $ 12.80 $ 12.29 $ 11.96 $ 5.94 $ 5.18 $ 6.45
- ------------------------------------------- ------- ------- ------- -------- -------- ------ ------- -------
Income from investment operations:
Net investment income (loss) (0.04) 0.03 (0.03) (0.06) 0.03 (0.03) 0.02 0.08(b)
- ------------------------------------------- ------- ------- ------- -------- -------- ------ ------- -------
Net realized and unrealized gain (loss) on
investments 2.29 (1.26) (5.67) 2.38 0.75 1.37 2.36 (1.28)
- ------------------------------------------- ------- ------- ------- -------- -------- ------ ------- -------
Net increase (decrease) from investment
operations 2.25 (1.23) (5.70) 2.32 0.78 1.34 2.38 (1.20)
- ------------------------------------------- ------- ------- ------- -------- -------- ------ ------- -------
Distributions to shareholders:
In excess of net investment income (0.01) (0.01) -- -- (0.02) (0.01) (0.01) (0.07)
- ------------------------------------------- ------- ------- ------- -------- -------- ------ ------- -------
From net realized gains -- -- (0.82) (1.81) (0.43) -- -- --
- ------------------------------------------- ------- ------- ------- -------- -------- ------ ------- -------
Total distributions (0.01) (0.01) (0.82) (1.81) (0.45) (0.01) (0.01) (0.07)
- ------------------------------------------- ------- ------- ------- -------- -------- ------ ------- -------
Net asset value, end of period $ 7.28 $ 5.04 $ 6.28 $ 12.80 $ 12.29 $ 7.27 $ 7.55 $ 5.18
=========================================== ======= ======= ======= ======== ======== ====== ======= =======
Total return(b) 44.59% (19.55)% (44.65)% 19.28% 6.54% 22.51% 45.90% (18.51)%
=========================================== ======= ======= ======= ======== ======== ====== ======= =======
Ratios and supplemental data:
Net assets, end of period (in 000s) $38,584 $31,837 $55,820 $151,805 $130,887 $ 496 $ 887 $ 1,402
=========================================== ======= ======= ======= ======== ======== ====== ======= =======
Ratio of net investment income (loss) to
average net assets: (0.73)%(c) 0.65% (0.24)% (0.48)% 0.26% (0.73)%(d) 0.27%(c) 1.65%
=========================================== ======= ======= ======= ======== ======== ====== ======= =======
Ratio of expense to average net assets
including interest:
With fee waivers 2.71%(c) 2.65% 2.31% 2.51% 2.54% 2.71%(d) 1.71%(c) 1.65%
=========================================== ======= ======= ======= ======== ======== ====== ======= =======
Without fee waivers 2.94%(c) 3.05% 2.58% 2.64% 2.59% 2.94%(d) 1.94%(c) 2.05%
=========================================== ======= ======= ======= ======== ======== ====== ======= =======
Ratio of expenses to average net assets,
excluding interest expense:
With fee waivers 2.65%(c) 2.65% 2.31% 2.51% 2.54% 2.65%(d) 1.65%(c) 1.65%
=========================================== ======= ======= ======= ======== ======== ====== ======= =======
Without fee waivers 2.88%(c) 3.05% 2.58% 2.64% 2.59% 2.88%(d) 1.88%(c) 2.05%
=========================================== ======= ======= ======= ======== ======== ====== ======= =======
Ratio of interest expense to average net
assets 0.06%(c) -- -- -- -- 0.06%(d) 0.06%(c) --
=========================================== ======= ======= ======= ======== ======== ====== ======= =======
Portfolio turnover rate 98% 96% 80% 93% 63% 98% 98% 96%
=========================================== ======= ======= ======= ======== ======== ====== ======= =======
</TABLE>
<TABLE>
<CAPTION>
ADVISOR CLASS
---------------------------
1997(a) 1996(a) 1995(a)
------- ------- -------
<S> <C> <C> <C>
Net asset value, beginning of period $ 13.16 $12.45 $12.89
- ------------------------------------------- ------- ------ ------
Income from investment operations:
Net investment income (loss) 0.08 0.07 0.09
- ------------------------------------------- ------- ------ ------
Net realized and unrealized gain (loss) on
investments (5.89) 2.45 0.05
- ------------------------------------------- ------- ------ ------
Net increase (decrease) from investment
operations (5.81) 2.52 0.14
- ------------------------------------------- ------- ------ ------
Distributions to shareholders:
In excess of net investment income (0.08) -- (0.15)
- ------------------------------------------- ------- ------ ------
From net realized gains (0.82) (1.81) (0.43)
- ------------------------------------------- ------- ------ ------
Total distributions (0.90) (1.81) (0.58)
- ------------------------------------------- ------- ------ ------
Net asset value, end of period $ 6.45 $13.16 $12.45
=========================================== ======= ====== ======
Total return(b) (44.26)% 20.56% 1.07%
=========================================== ======= ====== ======
Ratios and supplemental data:
Net assets, end of period (in 000s) $ 1,488 $1,575 $ 935
=========================================== ======= ====== ======
Ratio of net investment income (loss) to
average net assets: 0.76% 0.52% 1.26%(e)
=========================================== ======= ====== ======
Ratio of expense to average net assets
including interest:
With fee waivers 1.31% 1.51% 1.54%(e)
=========================================== ======= ====== ======
Without fee waivers 1.58% 1.64% 1.59%(e)
=========================================== ======= ====== ======
Ratio of expenses to average net assets,
excluding interest expense:
With fee waivers 1.31% 1.51% 1.54%(e)
=========================================== ======= ====== ======
Without fee waivers 1.58% 1.64% 1.59%(e)
=========================================== ======= ====== ======
Ratio of interest expense to average net
assets -- -- --
=========================================== ======= ====== ======
Portfolio turnover rate 80% 93% 63%()
=========================================== ======= ====== ======
</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 based on average net assets of $34,388,350 and $1,087,061, for
Class B and Advisor Class, respectively.
(d) Ratios are annualized and based on average net assets of $280,562.
(e) Annualized.
NOTE 9-SUBSEQUENT EVENT
On November 3, 1999, the Board of Trustees approved the conversion of Advisor
Class Shares into Class A Shares. The effective date of this conversion was
February 11, 2000.
14
<PAGE> 17
REPORT OF INDEPENDENT ACCOUNTANTS
To the Trustees of AIM Growth Series
and Shareholders of AIM New Pacific Growth Fund:
In our opinion, the accompanying statement of assets and
liabilities, including the schedule of investments, and
the related statements of operations and of changes in
net assets and the financial highlights present fairly,
in all material respects, the financial position of AIM
New Pacific Growth Fund (hereafter referred to as the
"Fund") at December 31, 1999, the results of its
operations, the changes in its net assets and the
financial highlights for each of the periods indicated
therein, in conformity with accounting principles
generally accepted in the United States. These financial
statements and financial highlights (hereafter referred
to as "financial statements") are the responsibility of
the Fund's management; our responsibility is to express
an opinion on these financial statements based on our
audits. We conducted our audits of these financial
statements in accordance with auditing standards
generally accepted in the United States which require
that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free
of material misstatement. An audit includes examining, on
a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the
accounting principles used and significant estimates made
by management, and evaluating the overall financial
statement presentation. We believe that our audits, which
included confirmation of securities at December 31, 1999
by correspondence with the custodian, provide a
reasonable basis for the opinion expressed above.
PRICEWATERHOUSECOOPERS LLP
Boston, Massachusetts
February 16, 2000
15
<PAGE> 18
<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 SUB-ADVISOR
President and Chief Executive Officer, Gary T. Crum
A I M Management Group Inc. Vice President INVESCO Asia Limited
12/F, Three Exchange Square,
Ruth H. Quigley Carol F. Relihan 8 Connaught Place, Hong Kong
Private Investor Vice President
TRANSFER AGENT
Mary J. Benson
Assistant Vice President and A I M Fund Services, Inc.
Assistant Treasurer P.O. Box 4739
Houston, TX 77210-4739
Sheri Morris
Assistant Vice President and CUSTODIAN
Assistant Treasurer
State Street Bank and Trust Company
Nancy L. Martin 225 Franklin Street
Assistant Secretary Boston, MA 02110
Ofelia M. Mayo COUNSEL TO THE FUND
Assistant Secretary
Kirkpatrick & Lockhart LLP
Kathleen J. Pflueger 1800 Massachusetts Avenue, N.W.
Assistant Secretary Washington, D.C. 20036-1800
COUNSEL TO THE TRUSTEES
Paul, Hastings, Janofsky & Walker LLP
Twenty Third Floor
555 South Flower Street
Los Angeles, CA 90071
DISTRIBUTOR
A I M Distributors, Inc.
11 Greenway Plaza
Suite 100
Houston, TX 77046
AUDITORS
PricewaterhouseCoopers LLP
160 Federal Street
Boston, MA 02110
</TABLE>
REQUIRED FEDERAL INCOME TAX INFORMATION (UNAUDITED)
AIM New Pacific Growth Fund paid ordinary dividends in the amount of $0.0068 per
share to shareholders during its tax year ended December 31, 1999. Of these
amounts 0.00% is eligible for the dividends received deduction for corporations.
16
<PAGE> 19
-------------------------------------
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<PAGE> 20
THE AIM FAMILY OF FUNDS--Registered Trademark--
<TABLE>
<S> <C> <C>
GROWTH FUNDS MONEY MARKET FUNDS A I M Management Group Inc. has provided
AIM Aggressive Growth Fund AIM Money Market Fund leadership in the mutual fund industry
AIM Blue Chip Fund AIM Tax-Exempt Cash Fund since 1976 and managed approximately
AIM Capital Development Fund $160 billion in assets for more than 6.6
AIM Constellation Fund(1) INTERNATIONAL GROWTH FUNDS million shareholders, including individual
AIM Dent Demographic Trends Fund AIM Advisor International Value Fund investors, corporate clients and financial
AIM Large Cap Growth Fund AIM Asian Growth Fund institutions, as of December 31, 1999.
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AIM Mid Cap Opportunities Fund AIM European Development Fund AIM today is the eighth-largest mutual fund
AIM Select Growth Fund AIM International Equity Fund complex in the United States in assets under
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</TABLE>
(1) Effective December 1, 1999, AIM Constellation Fund's investment strategy
broadened to allow investments across all market capitalizations. (2) AIM Small
Cap Growth Fund closed to new investors on November 8, 1999. (3) AIM Small Cap
Opportunities Fund closed to new investors on November 4, 1999. (4) On September
1, 1999, AIM Europe Growth Fund was renamed AIM Euroland Growth Fund. Previously
the fund invested in all size companies in most areas of Europe. The fund now
seeks to invest at least 65% of its assets in large-cap companies within
countries using the euro as their currency (EMU-member countries). (5) On June
1, 1999, AIM Global Telecommunications Fund was renamed AIM Global
Telecommunications and Technology Fund. (6) Effective August 27, 1999, AIM
Global Trends Fund was restructured to operate as a traditional mutual fund.
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