<PAGE> 1
SEMIANNUAL REPORT / JUNE 30 2000
AIM JAPAN GROWTH FUND
[COVER IMAGE]
[AIM LOGO APPEARS HERE]
--Registered Trademark--
<PAGE> 2
[ COVER IMAGE ]
-------------------------------------
THE WAVE, FROM "ONE HUNDRED FAMOUS VIEWS OF EDO"
BY ANDO TOKITARO HIROSHIGE
ONE OF THE LAST GREAT PRINTMAKERS OF THE UKIYO-E SCHOOL,
HIROSHIGE WAS 19TH-CENTURY JAPAN'S MOST POPULAR ARTIST. BEFORE
HIROSHIGE, JAPANESE LANDSCAPES WERE PAINTED IN A FORMAL, ACADEMIC
MANNER. HIROSHIGE INTRODUCED A MORE NATURAL, LYRICAL APPROACH
THAT HAD ENORMOUS POPULAR APPEAL. DURING HIS LIFETIME, HIROSHIGE
PRODUCED MORE THAN 5,000 PRINTS. THE WAVE BELONGS TO A SERIES
DEPICTING WELL-KNOWN VIEWS AROUND EDO (NOW TOKYO).
-------------------------------------
AIM Japan Growth Fund is for shareholders who seek long-term growth of capital.
The fund invests primarily in equity securities of companies located in Japan.
ABOUT FUND PERFORMANCE AND PORTFOLIO DATA THROUGHOUT THIS REPORT:
o AIM Japan 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. companies.
o Investing in a single-region mutual fund may involve greater risk and
potential reward than investing in a more diversified fund.
o Investing in micro-, small and mid-sized companies may involve risks not
associated with more established companies. Additionally, micro and small
companies may have business risk, significant stock-price fluctuations and
illiquidity.
o The fund's investment return and principal value will fluctuate, so an
investor's shares, when redeemed, may be worth more or less than their
original cost.
ABOUT INDEXES AND OTHER PERFORMANCE BENCHMARKS CITED IN THIS REPORT:
o The unmanaged MSCI Japan Index is a market-value-weighted average of the
performance of more than 300 securities on the Japanese stock exchanges
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 reflect sales charges.
AN INVESTMENT IN THE FUND IS NOT A DEPOSIT OF A BANK AND IS NOT INSURED OR
GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY OTHER
GOVERNMENT AGENCY. THERE IS A RISK THAT YOU COULD LOSE SOME OR ALL OF
YOUR MONEY.
This report may be distributed only to current shareholders or to persons
who have received a current prospectus of the fund.
AIM JAPAN 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 JAPAN GROWTH FUND
<PAGE> 4
SEMIANNUAL REPORT / MANAGERS' OVERVIEW
MARKET TURBULENCE HURTS FUND PERFORMANCE
HOW DID AIM JAPAN GROWTH FUND PERFORM DURING THE REPORTING PERIOD?
Intense market volatility and economic uncertainty hurt fund performance during
the six months ended June 30, 2000. The fund's Class A shares reported a -30.87%
return, while Class B and Class C shares returned -31.09%. The fund's benchmark,
the MSCI Japan Index, returned -5.37% over this time frame.
WHAT WERE THE MAJOR TRENDS IN THE JAPANESE MARKET DURING THE FIRST HALF OF 2000?
After a major rally in technology, telecommunications and media stocks at the
end of 1999, the Japanese market suffered a deep correction at the end of March,
mirroring the performance of the U.S. Nasdaq. For the rest of the reporting
period, markets saw intense day-to-day volatility, with technology and other
new-economy stocks giving up much of their earlier gains. The shift in market
sentiment stemmed from investor concerns that tech stocks were overpriced.
After two quarters of declining growth--technically a recession--the
Japanese economy recovered in the first quarter of 2000, reporting a 2.4% rise
in its gross domestic product. But many investors viewed the economic news
cautiously, questioning whether the recovery was sustainable. While an
improvement over previous quarters, the GDP figures fell below the forecasts of
many economists.
WHY DID THE FUND UNDERPERFORM ITS BENCHMARK?
An index such as the MSCI Japan Index includes companies in industries such as
metals, paper, chemicals, oil and real estate, which performed well on news of
improving economic conditions. The fund had no exposure to these domestically
driven, cyclical sectors.
We continued to focus on the leading companies in Japan's new economy, those
that have a global reach in the Internet, telecommunications and
financial-services industries. We expect these to be long-term growth areas
despite the recent correction.
WHAT WAS YOUR STRATEGY IN THIS ENVIRONMENT?
Market volatility has not dampened our enthusiasm for telecommunications and
technology stocks. In fact, we found this market to be a major buying
opportunity. We maintained our high weighting in technology stocks, about 34% of
the fund's holdings. Top industries remained electronics components
distributors, electrical equipment and wireless telecommunications.
-------------------------------------
THE MAJORITY OF STOCKS IN THE FUND'S
PORTFOLIO HAD EARNINGS GROWTH AND
SOLID COMPANY FUNDAMENTALS,
MAKING THEM GOOD LONG-TERM
INVESTMENTS IN OUR VIEW.
-------------------------------------
[DETAIL OF COVER IMAGE]
FUND PERFORMANCE
AVERAGE ANNUAL TOTAL RETURNS
As of 6/30/00, including sales charges
================================================================================
CLASS A SHARES
Inception (7/19/85) 12.74%
10 Years 0.31
5 Years 8.03
1 Year 7.90*
*14.15% excluding sales charges
CLASS B SHARES
Inception (4/1/93) 7.19%
5 Years 8.29
1 Year 8.33*
*13.33% excluding CDSC
CLASS C SHARES
Inception (5/3/99) 26.14%
1 Year 12.42*
*13.42% 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.
See important fund and index disclosures inside front cover.
AIM JAPAN GROWTH FUND
2
<PAGE> 5
SEMIANNUAL REPORT / MANAGERS' OVERVIEW
The majority of stocks in the fund's portfolio had earnings growth and solid
company fundamentals, making them good long-term investments in our view.
Quarterly earnings were strong for many of our holdings, and long-term trends
remain positive, including global expansion, mergers and acquisitions, the
growth of wireless communications and the build-out of the Internet.
To concentrate on our best-performing companies, we kept the number of
holdings at about 40 throughout the reporting period.
WHAT STOCKS DID YOU LIKE?
Portfolio holdings included major players in the computer and
electronic-products industries:
o Fujitsu makes everything from PCs and software to telecommunications
equipment, consumer electronics and semiconductors. The company is also becoming
Japan's leading Internet service provider. Computer operations and IT services
make up about 75% of its sales.
o Toshiba manufactures portable computers, consumer appliances, liquid-crystal
displays and semiconductors. Information and communication products account for
about 40% of sales.
o Sony, a consumer-electronics giant, makes the popular PlayStation home video
game console system, which accounts for about 11% of its sales. Its other
products include semiconductors, DVD players, batteries, cameras, the Walkman,
computer monitors and flat-screen TVs.
After the close of the reporting period, Toshiba and Sony announced two
important alliances. Working with Matsushita, the companies will develop a
standard for the next generation of digital TV receivers. Digital broadcasting
in Japan begins in December, so a unified standard will help the market grow.
Digital television offers more channels and sharper pictures.
In addition, Toshiba, Sony and 21 other Japanese firms have agreed to
develop jointly a Linux-based operating system for digital electronic products.
This could cut development costs by creating an industry standard for such
products as mobile phones and car navigation systems.
WHAT'S YOUR OUTLOOK FOR THE NEAR TERM?
While it remains questionable whether japan will sustain its economic recovery,
a number of factors give us cause for optimism:
o Merger-and-acquisition activity surged during the first half of 2000, a sign
of corporate restructuring. This trend is likely to continue as Japanese
companies cut costs to make themselves more competitive.
o More than $1 trillion in 10-year postal savings accounts will mature over
the next two years. With the low interest rates now offered by banks and post
offices (around 0.2% to 0.3%), Japanese investors may choose to move their
savings into equity markets instead.
o Increased global competition and foreign investment continue to put pressure
on the Japanese government and corporations, forcing them to restructure by
cutting costs and focusing on shareholder value.
Overall, we continue to believe that the best investment strategy is to
find individual stocks and sectors that perform well regardless of the
country's economic situation.
-------------------------------------
MERGER-AND-ACQUISITION ACTIVITY
SURGED DURING THE FIRST HALF OF
2000, A SIGN OF CORPORATE
RESTRUCTURING.
-------------------------------------
PORTFOLIO COMPOSITION
As of 6/30/00, based on total net assets
<TABLE>
<CAPTION>
==========================================================================================================
TOP 10 EQUITY HOLDINGS TOP 10 INDUSTRIES
----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
1. Fujitsu Ltd. 7.48% 1. Electronics (Component Distributors) 21.04%
2. NTT DoCoMo, Inc. 7.05 2. Electrical Equipment 15.25
3. Rohm Co., Ltd. 4.96 3. Telecommunications (Cellular/Wireless) 7.05
4. Toshiba Corp. 4.55 4. Computers (Software & Services) 6.70
5. Nippon Telegraph & Telephone Corp. 4.48 5. Consumer Finance 5.69
6. Murata Manufacturing Co., Ltd. 4.44 6. Telecommunications (Long Distance) 4.48
7. Sony Corp. 4.01 7. Retail (Specialty-Apparel) 4.36
8. Minebea Co., Ltd. 3.52 8. Personal Care 4.07
9. JAFCO Co., Ltd. 3.31 9. Financial (Diversified) 3.31
10. Secom Co., Ltd. 3.28 10. Services (Commercial & Consumer) 3.28
The fund's portfolio composition is subject to change, and there is no assurance
that the fund will continue to hold any particular security.
==========================================================================================================
</TABLE>
See important fund and index disclosures inside front cover.
AIM JAPAN GROWTH FUND
3
<PAGE> 6
SCHEDULE OF INVESTMENTS
JUNE 30, 2000
(UNAUDITED)
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
FOREIGN STOCKS (JAPAN)-98.82%
AUTO PARTS & EQUIPMENT-1.47%
Bridgestone Corp. 130,000 $ 2,749,023
-------------------------------------------------------------
COMPUTERS (HARDWARE)-1.06%
NEC Corp. 63,000 1,976,075
-------------------------------------------------------------
COMPUTERS (NETWORKING)-2.10%
Fujitsu Support and Service, Inc. 22,500 2,225,310
-------------------------------------------------------------
Net One Systems Co., Ltd. 74 1,700,749
-------------------------------------------------------------
3,926,059
-------------------------------------------------------------
COMPUTERS (SOFTWARE & SERVICES)-6.70%
Internet Research Institute, Inc.(a) 9 847,737
-------------------------------------------------------------
Itochu Techno-Science Corp. 3,200 513,917
-------------------------------------------------------------
Itochu Techno-Science Corp.-Bonus 6,400 949,465
Shares(a)
-------------------------------------------------------------
Softbank Corp. 34,400 4,665,944
-------------------------------------------------------------
Trend Micro Inc.(a) 17,000 2,802,242
-------------------------------------------------------------
Yahoo Japan Corp.(a) 7 2,772,571
-------------------------------------------------------------
12,551,876
-------------------------------------------------------------
CONSUMER FINANCE-5.69%
Aeon Credit Service Co., Ltd. 55,400 3,287,524
-------------------------------------------------------------
Aiful Corp. 58,150 5,356,822
-------------------------------------------------------------
Mycal Card, Inc. 53,800 2,011,831
-------------------------------------------------------------
10,656,177
-------------------------------------------------------------
ELECTRICAL EQUIPMENT-15.25%
Fujitsu Ltd. 405,000 14,000,377
-------------------------------------------------------------
TDK Corp. 42,000 6,029,106
-------------------------------------------------------------
Toshiba Corp. 755,000 8,512,551
-------------------------------------------------------------
28,542,034
-------------------------------------------------------------
ELECTRONICS (COMPONENT DISTRIBUTORS)-21.04%
Kyocera Corp. 12,500 2,118,165
-------------------------------------------------------------
Minebea Co., Ltd. 526,000 6,589,554
-------------------------------------------------------------
Murata Manufacturing Co., Ltd. 58,000 8,314,981
-------------------------------------------------------------
Omron Corp. 206,000 5,588,282
-------------------------------------------------------------
Rohm Co., Ltd. 31,800 9,285,546
-------------------------------------------------------------
Sony Corp. 80,400 7,497,386
-------------------------------------------------------------
39,393,914
-------------------------------------------------------------
ELECTRONICS (SEMICONDUCTORS)-2.63%
Tokyo Electron Ltd. 36,000 4,923,657
-------------------------------------------------------------
FINANCIAL (DIVERSIFIED)-3.31%
JAFCO Co., Ltd. 38,000 6,192,248
-------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
HEALTH CARE (DRUGS-GENERIC &
OTHER)-2.94%
Takeda Chemical Industries, Ltd. 84,000 $ 5,506,900
-------------------------------------------------------------
HEALTH CARE (MEDICAL PRODUCTS & SUPPLIES)-1.71%
Paramount Bed Co., Ltd. 47,300 3,194,471
-------------------------------------------------------------
INVESTMENT BANKING/BROKERAGE-2.44%
Nikko Securities Co., Ltd. (The) 255,000 2,522,018
-------------------------------------------------------------
Nomura Securities Co., Ltd. (The) 84,000 2,053,219
-------------------------------------------------------------
4,575,237
-------------------------------------------------------------
OFFICE EQUIPMENT & SUPPLIES-3.08%
Canon, Inc. 116,000 5,769,133
-------------------------------------------------------------
PERSONAL CARE-4.07%
Kao Corp. 165,000 5,035,558
-------------------------------------------------------------
Shiseido Co., Ltd. 167,000 2,579,758
-------------------------------------------------------------
7,615,316
-------------------------------------------------------------
RETAIL (DEPARTMENT STORES)-1.40%
Marui Co., Ltd. 137,000 2,619,602
-------------------------------------------------------------
RETAIL (GENERAL MERCHANDISE)-3.01%
Paris Miki, Inc. 86,800 5,641,407
-------------------------------------------------------------
RETAIL (SPECIALTY)-0.75%
Tsutsumi Jewelry Co., Ltd. 60,000 1,410,069
-------------------------------------------------------------
RETAIL (SPECIALTY-APPAREL)-4.36%
Fast Retailing Co., Ltd. 10,000 4,182,169
-------------------------------------------------------------
Ryohin Keikaku Co., Ltd. 31,300 3,980,125
-------------------------------------------------------------
8,162,294
-------------------------------------------------------------
SERVICES (COMMERCIAL &
CONSUMER)-3.28%
Secom Co., Ltd. 84,000 6,131,964
-------------------------------------------------------------
TELECOMMUNICATIONS (CELLULAR/WIRELESS)-7.05%
NTT DoCoMo, Inc. 488 13,192,295
-------------------------------------------------------------
TELECOMMUNICATIONS (LONG
DISTANCE)-4.48%
Nippon Telegraph & Telephone Corp. 632 8,393,727
-------------------------------------------------------------
TELEPHONE-1.00%
DDI Corp. 194 1,863,891
-------------------------------------------------------------
Total Foreign Stocks (Japan)
(Cost $130,899,292) 184,987,369
-------------------------------------------------------------
</TABLE>
4
<PAGE> 7
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
MONEY MARKET FUNDS-1.51%
STIC Liquid Assets Portfolio(b) 1,408,282 $ 1,408,282
-------------------------------------------------------------
STIC Prime Portfolio(b) 1,408,282 1,408,282
-------------------------------------------------------------
Total Money Market Funds
(Cost $2,816,564) 2,816,564
-------------------------------------------------------------
TOTAL INVESTMENTS-100.33%
(Cost $133,715,856) 187,803,933
-------------------------------------------------------------
LIABILITIES IN EXCESS OF OTHER
ASSETS-(0.33%) (615,130)
-------------------------------------------------------------
NET ASSETS-100.00% $187,188,803
=============================================================
</TABLE>
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
$133,715,856) $187,803,933
---------------------------------------------------------
Foreign currencies, at value (cost
$48,037) 47,663
---------------------------------------------------------
Receivables for:
---------------------------------------------------------
Fund shares sold 541,877
---------------------------------------------------------
Dividends 262,809
---------------------------------------------------------
Total assets 188,656,282
---------------------------------------------------------
LIABILITIES:
Payables for fund shares reacquired 1,027,615
---------------------------------------------------------
Accrued advisory fees 156,238
---------------------------------------------------------
Accrued distribution fees 201,463
---------------------------------------------------------
Accrued trustees' fees 2,835
---------------------------------------------------------
Accrued transfer agent fees 36,228
---------------------------------------------------------
Accrued operating expenses 43,100
---------------------------------------------------------
Total liabilities 1,467,479
---------------------------------------------------------
Net assets applicable to shares
outstanding $187,188,803
=========================================================
NET ASSETS:
Class A $102,840,908
=========================================================
Class B $ 73,193,561
=========================================================
Class C $ 11,154,334
=========================================================
SHARES OUTSTANDING, $0.01 PAR VALUE PER
SHARE:
Class A 7,242,221
=========================================================
Class B 5,413,253
=========================================================
Class C 824,901
=========================================================
Class A:
Net asset value and redemption price per
share $ 14.20
---------------------------------------------------------
Offering price per share:
(Net asset value of $14.20 divided by
94.50%) $ 15.03
=========================================================
Class B:
Net asset value and offering price per
share $ 13.52
=========================================================
Class C:
Net asset value and offering price per
share $ 13.52
=========================================================
</TABLE>
STATEMENT OF OPERATIONS
For the six months ended June 30, 2000
(Unaudited)
<TABLE>
<S> <C>
INVESTMENT INCOME:
Dividends (net of foreign withholding tax $ 546,869
$51,961)
---------------------------------------------------------
Total investment income 546,869
---------------------------------------------------------
EXPENSES:
Advisory and administrative fees 1,186,421
---------------------------------------------------------
Accounting services fee 24,863
---------------------------------------------------------
Custodian fees 105,216
---------------------------------------------------------
Distribution fees -- Class A 233,755
---------------------------------------------------------
Distribution fees -- Class B 468,649
---------------------------------------------------------
Distribution fees -- Class C 67,486
---------------------------------------------------------
Transfer agent fees 251,721
---------------------------------------------------------
Trustees' fees 6,885
---------------------------------------------------------
Other 83,045
---------------------------------------------------------
Total expenses 2,428,041
---------------------------------------------------------
Less expenses paid indirectly (9,831)
---------------------------------------------------------
Net expenses 2,418,210
---------------------------------------------------------
Net investment income (loss) (1,871,341)
---------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENT SECURITIES AND FOREIGN
CURRENCIES
Net realized gain (loss) from:
Investment securities 14,444,099
---------------------------------------------------------
Foreign currencies (159,680)
---------------------------------------------------------
14,284,419
---------------------------------------------------------
Change in net unrealized appreciation
(depreciation) of:
Investment securities (98,509,336)
---------------------------------------------------------
Foreign currencies 7,406
---------------------------------------------------------
(98,501,930)
---------------------------------------------------------
Net gain (loss) on investment
securities and
foreign currencies (84,217,511)
---------------------------------------------------------
Net increase (decrease) in net assets
resulting from
operations $(86,088,852)
=========================================================
</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) $ (1,871,341) $ (1,792,021)
---------------------------------------------------------------------------------------------
Net realized gain (loss) from investment securities and
foreign currencies 14,284,419 (11,813,497)
---------------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) of
investment securities and foreign currencies (98,501,930) 155,213,033
---------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
operations (86,088,852) 141,607,515
---------------------------------------------------------------------------------------------
Share transactions-net:
Class A (13,381,412) 44,477,119
---------------------------------------------------------------------------------------------
Class B (9,127,084) 41,640,397
---------------------------------------------------------------------------------------------
Class C 972,604 10,758,430
---------------------------------------------------------------------------------------------
Advisor Class* (9,719,700) 3,653,432
---------------------------------------------------------------------------------------------
Net increase (decrease) in net assets (117,344,444) 242,136,893
---------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 304,533,247 62,396,354
---------------------------------------------------------------------------------------------
End of period $ 187,188,803 $304,533,247
=============================================================================================
NET ASSETS CONSIST OF:
Shares of beneficial interest $ 154,338,419 $185,594,011
---------------------------------------------------------------------------------------------
Undistributed net investment income (loss) (16,171,318) (14,299,977)
---------------------------------------------------------------------------------------------
Undistributed net realized gain (loss) from investment
securities and foreign currencies (5,074,323) (19,358,742)
---------------------------------------------------------------------------------------------
Unrealized appreciation of investment securities and
foreign currencies 54,096,025 152,597,955
---------------------------------------------------------------------------------------------
$ 187,188,803 $304,533,247
=============================================================================================
* Advisor Class shares were converted to Class A shares
effective as of the close of business on February 11,
2000.
</TABLE>
See Notes to Financial Statements.
7
<PAGE> 10
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2000
(UNAUDITED)
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES
AIM Japan 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. The Fund has a capital loss
carryforward of $18,648,328 which may be carried forward to offset future
taxable gains, if any, which expires in varying increments, if not previously
utilized, in the year 2007.
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
8
<PAGE> 11
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 Japan 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 INVESCO Japan, AIM pays INVESCO
Japan 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 $24,863 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 $146,095 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 $233,755,
$468,649 and $67,486, respectively, as compensation under the Plans.
AIM Distributors received commissions of $100,809 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 $34,465 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
For the six months ended June 30, 2000, the Fund received reductions in
custodian fees and in transfer agency fees from AFS (an affiliate of AIM) of
$8,449 and $1,382, respectively, under expense offset arrangements which
resulted in a reduction of the Fund's total expenses of $9,831.
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
$55,037,218 and $69,584,564, respectively.
The amount of unrealized appreciation of investment securities, for tax
purposes, as of June 30, 2000 is as follows:
<TABLE>
<S> <C>
Aggregate unrealized appreciation of investment securities $57,950,926
-------------------------------------------------------------------------
Aggregate unrealized (depreciation) of investment securities (10,313,027)
-------------------------------------------------------------------------
Net unrealized appreciation of investment securities $47,637,899
=========================================================================
Cost of investments for tax purposes is $140,166,034.
</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 10,210,745 $ 170,331,889 19,428,484 $ 241,844,051
-----------------------------------------------------------------------------------------------------------------------
Class B 1,892,387 32,253,694 7,771,106 96,657,608
-----------------------------------------------------------------------------------------------------------------------
Class C* 812,392 13,157,073 1,505,640 20,997,654
-----------------------------------------------------------------------------------------------------------------------
Advisor Class** 153,964 2,847,769 1,449,716 19,444,530
-----------------------------------------------------------------------------------------------------------------------
Conversion of Advisor Class Shares to Class A Shares***:
Class A 421,633 8,116,431 -- --
-----------------------------------------------------------------------------------------------------------------------
Advisor Class (414,104) (8,116,431) -- --
-----------------------------------------------------------------------------------------------------------------------
Reacquired:
Class A (11,254,981) (191,829,732) (15,790,359) (197,366,932)
-----------------------------------------------------------------------------------------------------------------------
Class B (2,490,111) (41,380,778) (4,429,756) (55,017,211)
-----------------------------------------------------------------------------------------------------------------------
Class C* (746,625) (12,184,469) (746,506) (10,239,224)
-----------------------------------------------------------------------------------------------------------------------
Advisor Class** (226,080) (4,451,038) (1,182,546) (15,791,098)
-----------------------------------------------------------------------------------------------------------------------
(1,640,780) $ (31,255,592) 8,005,779 $ 100,529,378
=======================================================================================================================
</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 Year ended December 31,
ended 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 $ 20.54 $ 8.90 $ 8.96 $ 9.76 $ 11.00 $ 12.15
------------------------------------------------------- -------- -------- ------- ------- ------- --------
Income from investment operations:
Net investment income (loss) (0.11) (0.14) (0.02)(b) (0.08) (0.04) (0.04)
------------------------------------------------------- -------- -------- ------- ------- ------- --------
Net gains (losses) on securities (both realized and (6.23) 11.78 (0.03) (0.70) (0.77) 0.26
unrealized)
------------------------------------------------------- -------- -------- ------- ------- ------- --------
Total from investment operations (6.34) 11.64 (0.05) (0.78) (0.81) 0.22
------------------------------------------------------- -------- -------- ------- ------- ------- --------
Less distributions from net realized gains -- -- (0.01) (0.02) (0.43) (1.37)
------------------------------------------------------- -------- -------- ------- ------- ------- --------
Net asset value, end of period $ 14.20 $ 20.54 $ 8.90 $ 8.96 $ 9.76 $ 11.00
======================================================= ======== ======== ======= ======= ======= ========
Total return(c) (30.87)% 130.79% (0.54)% (7.99)% (7.43)% 1.94%
======================================================= ======== ======== ======= ======= ======= ========
Ratios/supplemental data:
Net assets, end of period (000s omitted) $102,841 $161,527 $37,608 $44,583 $63,585 $111,105
======================================================= ======== ======== ======= ======= ======= ========
Ratio of expenses to average net assets:
With fee waivers(d) 1.72%(e) 1.87% 1.96% 1.99% 1.84% 1.99%
------------------------------------------------------- -------- -------- ------- ------- ------- --------
Without fee waivers 1.72%(e) 1.87% 2.33% 2.06% 1.94% 2.14%
======================================================= ======== ======== ======= ======= ======= ========
Ratio of net investment income (loss) to average net (1.26)%(e) (1.03)% (0.19)% (0.61)% (0.40)% (0.40)%
assets
======================================================= ======== ======== ======= ======= ======= ========
Portfolio turnover rate 23% 43% 67% 58% 31% 67%
======================================================= ======== ======== ======= ======= ======= ========
</TABLE>
(a) Calculated using average shares outstanding.
(b) Includes reimbursement of Fund operating expenses per share of $0.03.
(c) Does not deduct sales charges and is not annualized for periods less than
one year.
(d) Prior to the period ended December 31, 1999, ratios include expense
reductions.
(e) Ratios are annualized and based on average net assets of $134,308,011.
<TABLE>
<CAPTION>
Class B
------------------------------------------------------------------
Six months Year ended December 31,
ended 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 $ 19.62 $ 8.55 $ 8.67 $ 9.49 $ 10.78 $ 12.02
------------------------------------------------------- ------- -------- -------- ------- ------- -------
Income from investment operations:
Net investment income (loss) (0.15) (0.21) (0.07)(b) (0.14) (0.11) (0.12)
------------------------------------------------------- ------- -------- -------- ------- ------- -------
Net gains (losses) on securities (both realized and (5.95) 11.28 (0.04) (0.66) (0.75) 0.25
unrealized)
------------------------------------------------------- ------- -------- -------- ------- ------- -------
Total from investment operations (6.10) 11.07 (0.11) (0.80) (0.86) 0.13
------------------------------------------------------- ------- -------- -------- ------- ------- -------
Less distributions from net realized gains -- -- (0.01) (0.02) (0.43) (1.37)
------------------------------------------------------- ------- -------- -------- ------- ------- -------
Net asset value, end of period $ 13.52 $ 19.62 $ 8.55 $ 8.67 $ 9.49 $ 10.78
======================================================= ======= ======== ======== ======= ======= =======
Total return(c) (31.09)% 129.47% (1.25)% (8.42)% (8.05)% 1.20%
======================================================= ======= ======== ======== ======= ======= =======
Ratios/supplemental data:
Net assets, end of period (000s omitted) $73,194 $117,953 $ 22,815 $24,250 $32,116 $41,274
======================================================= ======= ======== ======== ======= ======= =======
Ratio of expenses to average net assets:
With fee waivers(d) 2.37%(e) 2.52% 2.61% 2.64% 2.49% 2.64%
------------------------------------------------------- -------- -------- ------- ------- ------- --------
Without fee waivers 2.37%(e) 2.52% 2.98% 2.71% 2.59% 2.79%
======================================================= ======= ======== ======== ======= ======= =======
Ratio of net investment income (loss) to average net (1.91)%(e) (1.68)% (0.84)% (1.26)% (1.05)% (1.05)%
assets
======================================================= ======= ======== ======== ======= ======= =======
Portfolio turnover rate 23% 43% 67% 58% 31% 67%
======================================================= ======= ======== ======== ======= ======= =======
</TABLE>
(a) Calculated using average shares outstanding.
(b) Includes reimbursement of Fund operating expenses per share of $0.03.
(c) Does not deduct contingent deferred sales charges and is not annualized for
periods less than one year.
(d) Prior to the period ended December 31, 1999, ratios include expense
reductions.
(e) Ratios are annualized and based on average net assets of $94,244,774.
11
<PAGE> 14
NOTE 8-FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
Class C
--------------------------------
Six months May 3, 1999 (Date
ended sales commenced) to
June 30, December 31,
2000(a) 1999(a)
---------- -------------------
<S> <C> <C>
Net asset value, beginning of period $ 19.62 $ 10.33
------------------------------------------------------------ ------- -------
Income from investment operations:
Net investment income (loss) (0.15) (0.17)
------------------------------------------------------------ ------- -------
Net gains (losses) on securities (both realized and (5.95) 9.46
unrealized)
------------------------------------------------------------ ------- -------
Total from investment operations (6.10) 9.29
------------------------------------------------------------ ------- -------
Net asset value, end of period $ 13.52 $ 19.62
============================================================ ======= =======
Total return(b) (31.09)% 89.93%
============================================================ ======= =======
Ratios/supplemental data:
Net assets, end of period (000s omitted) $11,154 $14,891
============================================================ ======= =======
Ratio of expenses to average net assets 2.37%(c) 2.52%(d)
============================================================ ======= =======
Ratio of net investment income (loss) to average net assets (1.91)%(c) (1.68)%(d)
============================================================ ======= =======
Portfolio turnover rate 23% 43%
============================================================ ======= =======
</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) Ratios are annualized and based on average net assets of $13,571,322.
(d) 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, 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
Director, President and Gary T. Crum
Chief Executive Officer, Vice President INVESCO Asset Management
A I M Management Group Inc. (Japan) Limited
Carol F. Relihan Imperial Tower
Ruth H. Quigley Vice President 1-1-1 Uchisaiwai-cho,
Private Investor Chiyoda-Ku, Tokyo, 100-0011
Mary J. Benson
Assistant Vice President and TRANSFER AGENT
Assistant Treasurer
A I M Fund Services, Inc.
Sheri Morris P.O. Box 4739
Assistant Vice President and Houston, TX 77210-4739
Assistant Treasurer
CUSTODIAN
Nancy L. Martin
Assistant Secretary State Street Bank and Trust Company
225 Franklin Street
Ofelia M. Mayo Boston, MA 02110
Assistant Secretary
COUNSEL TO THE FUND
Kathleen J. Pflueger
Assistant Secretary Kirkpatrick & Lockhart LLP
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>
<PAGE> 16
THE AIM FAMILY OF FUNDS--Registered Trademark--
<TABLE>
<CAPTION>
EQUITY FUNDS
DOMESTIC EQUITY FUNDS INTERNATIONAL/GLOBAL EQUITY FUNDS
MORE AGGRESSIVE MORE AGGRESSIVE
<S> <C> <C>
AIM Small Cap Opportunities(1) AIM Latin American Growth A I M Management Group Inc. has provided
AIM Mid Cap Opportunities(2) AIM Developing Markets leadership in the mutual fund industry
AIM Large Cap Opportunities AIM Asian Growth since 1976 and managed approximately
AIM Emerging Growth AIM Japan Growth $176 billion in assets for more than 8
AIM Small Cap Growth(3) AIM European Development million shareholders, including
AIM Aggressive Growth AIM Euroland Growth(5) individual investors, corporate clients
AIM Mid Cap Growth AIM Global Aggressive Growth and financial institutions, as of
AIM Capital Development AIM International Equity June 30, 2000.
AIM Constellation(4) AIM Advisor International Value The AIM Family of Funds--Registered
AIM Dent Demographic Trends AIM Global Trends(6) Trademark-- is distributed nationwide,
AIM Select Growth AIM Global Growth and AIM today is the eighth-largest
AIM Large Cap Growth mutual fund complex in the United States
AIM Weingarten MORE CONSERVATIVE in assets under management, according to
AIM Mid Cap Equity Strategic Insight, an independent mutual
AIM Charter SECTOR EQUITY FUNDS fund monitor.
AIM Value AIM is a subsidiary of AMVESCAP PLC,
AIM Blue Chip MORE AGGRESSIVE one of the world's largest independent
AIM Basic Value financial services companies with $389
AIM Large Cap Basic Value AIM Global Telecommunications and Technology billion in assets under management as of
AIM Balanced AIM Global Resources June 30, 2000.
AIM Advisor Flex AIM Global Financial Services
AIM Global Health Care
MORE CONSERVATIVE 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 High Yield AIM Municipal Bond
AIM Income AIM Tax-Free Intermediate
AIM Global Income AIM Tax-Exempt Cash
AIM Floating Rate(7)
AIM Intermediate Government MORE CONSERVATIVE
AIM Limited Maturity Treasury
AIM Money Market
MORE CONSERVATIVE
</TABLE>
The AIM Risk Spectrum illustrates equity and fixed-income funds from more
aggressive to more conservative. When assessing the degree of risk, three
factors were considered: the funds' portfolio holdings, volatility patterns over
time and diversification permitted within the fund. Fund rankings are relative
to one another within The AIM Family of Funds--Registered Trademark-- and should
not be compared with other investments. There is no guarantee that any one AIM
fund will be less volatile than any other. (1) AIM Small Cap Opportunities Fund
closed to new investors Nov. 4, 1999. (2) AIM Mid Cap Opportunities Fund closed
to new investors March 21, 2000. (3) AIM Small Cap Growth Fund closed to new
investors Nov. 8, 1999. (4) AIM Constellation Fund's investment strategy
broadened to allow investments across all market capitalizations Dec. 1, 1999.
(5) AIM Europe Growth Fund was renamed AIM Euroland Growth Fund Sept. 1, 1999.
(6) AIM Global Trends Fund was restructured to operate as a traditional mutual
fund Aug. 27, 1999. Previously, the fund operated as a fund of funds. (7) AIM
Floating Rate Fund was restructured to offer multiple share classes April 3,
2000. Existing shares were converted to Class B shares, and Class C shares
commenced offering.
FOR MORE COMPLETE INFORMATION ABOUT ANY AIM FUND, INCLUDING SALES CHARGES
AND EXPENSES, OBTAIN THE APPROPRIATE PROSPECTUS(ES) FROM YOUR FINANCIAL ADVISOR.
PLEASE READ THE PROSPECTUS(ES) CAREFULLY BEFORE YOU INVEST OR SEND MONEY. This
report is not authorized for distribution to prospective investors unless
preceded or accompanied by a currently effective fund prospectus. If used as
sales material after Oct. 20, 2000, this report must be accompanied by a fund
Performance & Commentary or by an AIM Quarterly Review of Performance for the
most recent quarter end.
[DALBAR LOGO APPEARS HERE] [AIM LOGO APPEARS HERE]
--Registered Trademark--
INVEST WITH DISCIPLINE
--Registered Trademark--
A I M Distributors, Inc. JPG-SAR-1
