<PAGE> 1
SEMIANNUAL REPORT / JUNE 30 2000
AIM BASIC VALUE FUND
[COVER IMAGE]
[AIM LOGO APPEARS HERE]
--Registered Trademark--
<PAGE> 2
[ COVER IMAGE ]
-------------------------------------
STILL LIFE (THE CHEST OF DRAWERS) BY PAUL CEZANNE
A CONTEMPORARY OF THE IMPRESSIONISTS, CEZANNE
CHALLENGED THE CONVENTIONAL IDEAS THEIR WORKS EMBODIED
IN THE 19TH CENTURY. AS A RESULT, HIS ART WAS UNDERVALUED
AND OFTEN MISUNDERSTOOD IN HIS LIFETIME. HOWEVER, HIS WORKS
AND IDEAS INFLUENCED THE DEVELOPMENT OF MANY 20TH-CENTURY
ARTISTS AND MOVEMENTS, SUCH AS CUBISM, AND SOME NOW REGARD HIM
AS THE FATHER OF MODERN PAINTING. THIS PIECE EXHIBITS THE
SIMPLICITY AND DELICATE TONAL HARMONY THAT TYPIFY
CEZANNE'S WORK.
-------------------------------------
AIM Basic Value Fund seeks long-term growth of capital by investing in companies
whose prospects and growth potential are undervalued by investors.
ABOUT FUND PERFORMANCE AND PORTFOLIO DATA THROUGHOUT THIS REPORT:
o AIM Basic Value 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 The fund participates in the initial public offering (IPO) market, and a
significant portion of its returns are attributable to its investments in
IPOs, which have a magnified impact due to the fund's relatively small asset
base. There is no guarantee that as the fund's assets grow, it will continue
to experience substantially similar performance by investing in IPOs.
o Investing in micro, small and mid-sized companies may involve risks not
associated with investing in more established companies. Also, 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 Lipper Multi-Cap Value Fund Index represents an average of the
performance of the 30 largest multi-capitalization value funds tracked by
Lipper, Inc., an independent mutual fund performance monitor.
o The unmanaged Russell 1000 Index represents the performance of the stocks of
large-capitalization companies.
o The unmanaged Standard & Poor's Composite Index of 500 Stocks (the S&P 500)
represents the performance of the stock market.
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.
AVERAGE ANNUAL TOTAL RETURNS
As of 6/30/00, including sales charges
================================================================================
CLASS A SHARES
Inception (10/18/95) 18.83%
1 Year 2.63%*
*8.59% excluding sales charges
CLASS B SHARES
Inception (10/18/95) 19.29%
1 Year 2.93%*
*7.93% excluding CDSC
CLASS C SHARES
Inception (5/3/99) 11.82%
1 Year 6.88%*
*7.88% excluding CDSC
================================================================================
Past performance cannot guarantee comparable future results.
MARKET VOLATILITY CAN SIGNIFICANTLY IMPACT SHORT-TERM PERFORMANCE. RESULTS
OF AN INVESTMENT MADE TODAY MAY DIFFER SUBSTANTIALLY FROM THE HISTORICAL
PERFORMANCE SHOWN.
AIM BASIC VALUE 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 had
Charles T. the idea of creating a mutual fund company that put people
Bauer, first. Our slogan, "people are the product," means that
Chairman of people--our employees and our investors--are our company.
the Board of Almost a quarter-century later, we've grown to more than
THE FUND eight million investors, $176 billion in assets under
APPEARS HERE] management and 53 retail funds. Over that time, the industry
as a whole has grown from $51 billion in assets to more
than $7 trillion today. I never dreamed we would see such
[PHOTO OF phenomenal growth. You are the main reason for our success,
Robert H. and I want you to know how much I appreciate your loyalty and
Graham trust over the past 24 years.
APPEARS HERE] 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 BASIC VALUE FUND
<PAGE> 4
SEMIANNUAL REPORT / MANAGERS' OVERVIEW
AIM BASIC VALUE FUND PERFORMS WELL IN CHALLENGING MARKET
HOW DID AIM BASIC VALUE FUND PERFORM DURING THE FIRST SIX MONTHS OF 2000?
Despite a market environment characterized by volatility and unpredictable
shifts in investor sentiment, AIM Basic Value Fund performed well for its
shareholders. For the six months ended June 30, 2000, the fund's Class A shares
returned 3.10%, while its Class B and Class C shares each returned 2.80%. These
figures are at net asset value, which means they do not include sales charges.
The fund outperformed the Lipper Multi-Cap Value Fund Index, which returned
-0.77%, and the Russell 1000 Index, which returned 0.78%, during the reporting
period.
Total net assets in the fund have grown significantly, increasing from
$136.3 million on December 31, 1999 to $403.7 million on June 30, 2000--an
increase of 196%.
HOW DID THE MARKETS AS A WHOLE PERFORM DURING THE FIRST SIX MONTHS OF THE YEAR?
U.S. equity markets experienced significant volatility during the first half of
2000, and investors shifted their investment strategies to deal with this
volatility, which was most pronounced among formerly high-flying technology
stocks, many of which fell sharply in March and April. But many non-technology
stocks, particularly those that announced potential earnings shortfalls, were
volatile as well during the first half of the year. Indeed, the S&P 500,
considered representative of the stock market as a whole, actually declined by
0.43% during the first six months of 2000.
Except during and immediately after the March/April technology sell-off,
many investors continued to shun value stocks. Out of favor in recent years and
for much of the reporting period, value stocks' appeal increased as market
volatility increased.
While some investors sought safety by shifting from growth stocks to value
stocks, others simply moved to cash--and waited. They waited to see whether the
Federal Reserve Board would continue its year-long series of interest-rate
increases, waited to see where the economy was headed and waited to evaluate
mid-year corporate earnings reports. As they waited, the markets drifted for
much of May and June.
HOW DID YOU MANAGE THE FUND'S PORTFOLIO DURING THE FIRST SIX MONTHS OF 2000?
Beginning in late 1999, we began to reduce our technology holdings because we
considered many tech stocks overvalued, and thus ripe for a correction. While
this strategy prevented shareholders from fully benefiting from the surge in
technology stocks early in 2000, it helped protect them from significant losses
when many tech stocks declined in price in March and April. Despite a strong
semiconductor market, we reduced our semiconductor holdings and took our
profits.
We maintained our investments in oil-service stocks because we believed that
they would benefit from higher oil prices. Oil prices tripled from early 1999 to
early 2000, giving major oil companies a greater incentive to expand production.
Our largest drilling and equipment holding, Transocean Sedco Forex, was up
significantly during the reporting period.
We also increased our holdings in retail food chains and diversified
financial companies. The fact is that regardless of economic conditions or
stock-market performance, people have to eat. Kroger and Albertson's (the
nation's largest and second-largest grocery chains, respectively) have grown by
acquiring regional grocery chains, and each has non-grocery retail interests.
During the reporting period, we began buying stock in Freddie Mac, a
stockholder-owned corporation chartered by Congress to increase the supply of
mortgages available to homebuyers. Freddie Mac purchases
FUND PERFORMANCE
TOTAL RETURNS OF
CLASS A, B & C SHARES VS. INDEXES
For the six months ended 6/30/00,
excluding sales charges
================================================================================
FUND CLASS A SHARES 3.10%
FUND CLASS B SHARES 2.80%
FUND CLASS C SHARES 2.80%
RUSSELL 1000 INDEX 0.78%
LIPPER MULTI-CAP VALUE FUND INDEX -0.77%
================================================================================
GROWTH OF NET ASSETS
In millions
================================================================================
12/31/99 $136.3
6/30/00 $403.7
================================================================================
Past performance cannot guarantee comparable future results. MARKET VOLATILITY
CAN SIGNIFICANTLY IMPACT SHORT-TERM PERFORMANCE. RESULTS OF AN INVESTMENT TODAY
MAY DIFFER SUBSTANTIALLY FROM THE HISTORICAL PERFORMANCE SHOWN.
See important fund and index disclosures inside front cover.
AIM BASIC VALUE FUND
2
<PAGE> 5
SEMIANNUAL REPORT / MANAGERS' OVERVIEW
mortgages from lenders, packages the mortgages into securities and sells those
securities to investors. Private financial institutions are lobbying Congress to
place restrictions on the company and eliminate its line of credit from the U.S.
Treasury. While that effort has depressed Freddie Mac's stock price, we believe
that the company is an attractive investment with good long-term potential.
WHAT ARE SOME HOLDINGS THAT CONTRIBUTED POSITIVELY TO FUND PERFORMANCE?
Holdings that contributed positively to fund performance during the period
included:
o Dynegy, a company that markets and trades electricity, natural gas and coal
in the United States, Canada and the United Kingdom. The company has
partnered with utility companies to sell energy in deregulated retail
markets. In April, Dynegy announced that its first-quarter 2000 earnings had
more than tripled from year-ago levels.
o Aon, one of the world's leading insurance brokerage and consulting firms.
The company's earnings grew by almost 150% from the first quarter of 1999 to
the first quarter of 2000, and in April--for the 49th consecutive year--the
company increased its quarterly cash dividend. We consider the stock
attractive.
o UnitedHealth Group, which, through its five operating segments, offers a
variety of health-care plans and services, including HMO, point-of-service
and preferred-provider plans. The company has units providing Medicare and
Medicaid options to enrollees over 50, managing health plans for large
companies and offering specialized care. In the two years we have held the
stock, we have nearly tripled our money.
WHAT'S YOUR OUTLOOK FOR THE SECOND HALF OF THE YEAR--AND BEYOND?
We believe that the outlook for AIM Basic Value Fund is exciting. We continue to
find good values in virtually every economic sector, and we believe that the
appreciation potential of the current portfolio is above average. Recent market
volatility reinforces the need for diversification across investment styles,
geographic regions, market capitalizations and industry groups. Given the
uncertainty that has characterized the markets so far this year, investors would
be well-advised to complement their growth holdings with value holdings.
We believe that eventually the valuations of all companies will be judged on
the cash flow produced by their earnings--even companies that today are judged
on their revenues. We will continue to use market corrections as opportunities
to buy fundamentally sound (but temporarily out-of-favor) companies that we
believe will benefit shareholders going forward.
AIM'S APPROACH TO VALUE
As the name implies, value investing typically means shopping for bargains. Many
value managers simply buy stocks whose prices have dropped--and then hope for a
rebound.
AT AIM, WE TAKE THE PROCESS FURTHER.
Low prices serve as a starting point for researching attractive companies with
proven track records. AIM's portfolio managers compare a company's stock price
to its calculated intrinsic value, and then analyze the stock's appreciation
potential.
With our value discipline, you may benefit from both the growth in earnings
and the temporary discount to fair value. We follow four basic rules for our
value discipline:
o Focusing on individual companies--not industries or sectors
o Buying stocks selling at a discount to their intrinsic value
o Reducing reliance on uncertain forecasts of future events
o Maintaining a strong sell discipline
AIM's value discipline allows us to invest in attractive companies that
aren't priced at a premium. It provides shareholders broad diversification
across different industries and sectors.
Value investing may be appropriate when the broad stock market appears
overvalued. This approach also takes advantage of the natural volatility in
prices and earnings.
PORTFOLIO COMPOSITION
As of 6/30/00, based on total net assets
<TABLE>
<CAPTION>
=========================================================================================================
TOP 10 HOLDINGS TOP 10 INDUSTRIES
---------------------------------------------------------------------------------------------------------
<S> <C>
1. UnitedHealth Group Inc. 3.83% 1. Financial (Diversified) 8.00%
2. Waste Management, Inc. 3.03 2. Oil & Gas (Drilling & Equipment) 7.77
3. Health Management Associates, Inc.- 3. Services (Data Processing) 5.42
Class A 2.94
4. Kroger Co. (The) 2.77 4. Retail (Food Chains) 4.96
5. Freddie Mac 2.73 5. Insurance (Property-Casualty) 4.28
6. Transocean Sedco Forex Inc. 2.71 6. Health Care (Managed Care) 3.83
7. Koninklijke (Royal) Philips Electronics 7. Electrical Equipment 3.07
N.V.-ADR (Netherlands) 2.40
8. Aon Corp. 2.37 8. Manufacturing (Specialized) 3.04
9. McKesson HBOC, Inc. 2.31 9. Waste Management 3.03
10. First Data Corp. 2.30 10. Health Care (Hospital Management) 2.94
The fund's portfolio is subject to change, and there is no assurance that the
fund will continue to hold any particular security.
=========================================================================================================
</TABLE>
See important fund and index disclosures inside front cover.
AIM BASIC VALUE FUND
3
<PAGE> 6
SEMIANNUAL REPORT / FOR CONSIDERATION
TIME FOR A FINANCIAL TUNE-UP?
GET HELP FROM YOUR FINANCIAL ADVISOR
Keeping track of your investment may require more than just glancing at its
total value. If you haven't checked the asset allocation of your portfolio in a
while, you should. It may look different now.
OUT OF BALANCE
Say you invested $50,000 in equity funds and $50,000 in fixed-income funds on
December 31, 1994, and simply reinvested your income and capital-gains
distributions for five years, making no new investments or withdrawals. (For
this example, we're using the S&P 500 Index and the Lehman Aggregate Bond Index
as indicators of stock and bond performance.*) During those five years, stocks
produced an average annual total return of 28.56%, while bonds grew only 7.73%
per year on average. As a result, you'd have $175,570 in stock funds and $72,553
in bond funds (a 71/29 allocation) on December 31, 1999. If you wanted to bring
your allocation back into balance, you'd need to shift $51,508 from stock to
fixed-income funds.
TAX CONSEQUENCES
One way to rebalance is to shift your assets among different funds: selling
equity shares and moving the proceeds into your fixed-income funds. But keep in
mind that this step may trigger tax consequences, since the movement of shares
from one fund to another represents the sale of a security.
Alternatively, you can let your asset allocation change gradually by
altering the proportions of your new investments. Simply raise the amount you
invest in fixed-income funds and lower the amount going into equity funds.
TAX-SHELTERED PLANS
Rebalancing within a tax-sheltered plan, such as a 401(k) or an IRA, makes even
more sense, since there are no tax consequences for selling and buying new
shares.
PERIODIC CHECK-UPS
The key allocation to watch is your overall stock and fixed-income mix. It's
that mix that will have the biggest influence on your risk and return. However,
rebalancing doesn't mean fiddling constantly with your account or attempting to
time the market by moving money around to chase the hottest sectors. It simply
means revisiting your portfolio periodically to make sure it's still right for
you. Your financial advisor should be able to help you determine if your current
portfolio composition is meeting your short- and long-term financial goals.
That's why we recommend regular visits with your advisor as a way to keep an eye
on your nest egg.
YOU AND YOUR FINANCIAL ADVISOR
Once a year, you and your financial advisor should meet to look ahead, review
investments and take another look at your goals, according to the Forum for
Investor Advice, a nonprofit association that educates investors about the role
and value of professional financial advisors.
TIME AND MARKETS SHIFT BALANCE
Market performance can affect the allocation of a portfolio. This example
illustrates an initial investment of $50,000 in equity funds and $50,000 in bond
funds. Five years later, the assets have shifted to $175,570 in stock funds and
$72,553 in bond funds, due to the strong performance of the stock market.
================================================================================
12/31/94 12/31/99
--------------------------------------------------------------------------------
BOND FUNDS 50% 29%
STOCK FUNDS 50% 71%
================================================================================
*The unmanaged Lehman Aggregate Bond Index represents the performance of
corporate debt securities. The unmanaged Standard & Poor's Composite Index of
500 Stocks (the S&P 500) represents the performance of the stock market. An
investment cannot be made in an index. Unless otherwise indicated, index results
include reinvested dividends, and they do not reflect sales charges.
AIM BASIC VALUE FUND
4
<PAGE> 7
SEMIANNUAL REPORT / FOR CONSIDERATION
A financial advisor can help you with every kind of financial goal, whether
that's saving up for a house, eliminating debt or saving for a comfortable
retirement. An advisor who knows you well and understands your needs can make
all the difference in your financial future. He or she can
o evaluate your total financial situation and help you formulate a
comprehensive financial plan;
o explain different types of investments, as well as their potential risks and
benefits;
o suggest an investment portfolio that can handle changing market conditions;
and
o help you make clear-headed decisions during market volatility.
GETTING THE MOST FROM YOUR PLANNING SESSION
Your advisor needs a complete picture of your financial status to prepare a
workable plan. Come prepared to talk about your financial situation, your goals
and your feelings about risk. And don't be afraid to ask lots of questions. Good
financial advisors take investor education seriously, so take advantage of their
store of knowledge and materials.
The Forum for Investor Advice suggests that you discuss the following with
your financial advisor:
o changes in the financial markets
o changes in your goals and current situation
o retirement plans
o estate planning
o outlook for the markets
Take along our checklist (right) to get you started on the path to good
planning. And don't forget to stay in touch. Maintaining regular contact with
your financial advisor can keep you moving toward your goals, especially when
your life circumstances or financial needs change.
CONSULTATION CHECKLIST
WHAT TO BRING:
o A list of all your assets, including real estate, life insurance, stocks and
bonds, and mutual funds
o A list of all your expenses, including likely future expenses
o A timetable of your financial goals, including an estimate of when you want
to retire
WHAT TO ASK:
o How can I estimate what my goals will cost?
o How much money do I need to invest, and how often?
o How many different kinds of investments do I need?
o How do I determine my risk tolerance?
o What are the possible risks of the investments you've suggested?
o What effect will these investments have on my taxes? What forms will I need
to file?
o How often do I need to revise my plan?
o How will I know how my investments are doing?
o How can I make changes to my plan?
o What kinds of communication will I get from you?
o Where can I get more information on what we've talked about?
o What do I need to do after this meeting?
[PHOTO OF WOMAN AND TWO MEN]
AIM BASIC VALUE FUND
5
<PAGE> 8
SCHEDULE OF INVESTMENTS
JUNE 30, 2000
(UNAUDITED)
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
COMMON STOCKS & OTHER EQUITY
INTERESTS-88.02%
AUTO PARTS & EQUIPMENT-0.02%
Visteon Corp.(a) 5,368 $ 65,090
--------------------------------------------------------------
BANKS (MAJOR REGIONAL)-1.25%
FleetBoston Financial Corp. 148,400 5,045,600
--------------------------------------------------------------
BANKS (MONEY CENTER)-2.22%
Bank of America Corp. 207,899 8,939,657
--------------------------------------------------------------
CHEMICALS-1.64%
Air Products & Chemicals, Inc. 214,500 6,609,281
--------------------------------------------------------------
COMPUTERS (SOFTWARE &
SERVICES)-2.55%
Computer Associates International,
Inc. 176,900 9,055,069
--------------------------------------------------------------
Unisys Corp.(a) 85,800 1,249,462
--------------------------------------------------------------
10,304,531
--------------------------------------------------------------
DISTRIBUTORS (FOOD & HEALTH)-2.31%
McKesson HBOC, Inc. 445,400 9,325,562
--------------------------------------------------------------
ELECTRIC COMPANIES-2.64%
Niagara Mohawk Holdings Inc.(a) 281,100 3,917,831
--------------------------------------------------------------
Northeast Utilities 126,900 2,760,075
--------------------------------------------------------------
TXU Corp. 135,200 3,988,400
--------------------------------------------------------------
10,666,306
--------------------------------------------------------------
ELECTRICAL EQUIPMENT-3.07%
Koninklijke (Royal) Philips
Electronics N.V.-ADR
(Netherlands) 203,916 9,686,010
--------------------------------------------------------------
Sony Corp.-ADR (Japan) 28,600 2,697,337
--------------------------------------------------------------
12,383,347
--------------------------------------------------------------
ELECTRONICS (COMPONENT
DISTRIBUTORS)-0.52%
Kyocera Corp.-ADR (Japan) 12,300 2,113,294
--------------------------------------------------------------
ELECTRONICS (SEMICONDUCTORS)-0.52%
Analog Devices, Inc.(a) 27,600 2,097,600
--------------------------------------------------------------
EQUIPMENT (SEMICONDUCTOR)-0.95%
Novellus Systems, Inc.(a) 67,800 3,834,937
--------------------------------------------------------------
FINANCIAL (DIVERSIFIED)-8.00%
Associates First Capital
Corp.-Class A 167,300 3,732,881
--------------------------------------------------------------
Citigroup Inc. 138,200 8,326,550
--------------------------------------------------------------
Fannie Mae 25,000 1,304,687
--------------------------------------------------------------
Freddie Mac 272,100 11,020,050
--------------------------------------------------------------
MGIC Investment Corp. 174,000 7,917,000
--------------------------------------------------------------
32,301,168
--------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
HEALTH CARE (DIVERSIFIED)-1.17%
Bristol-Myers Squibb Co. 36,600 $ 2,131,950
--------------------------------------------------------------
Johnson & Johnson 25,500 2,597,812
--------------------------------------------------------------
4,729,762
--------------------------------------------------------------
HEALTH CARE (DRUGS-MAJOR
PHARMACEUTICALS)-1.29%
Lilly (Eli) & Co. 21,300 2,127,337
--------------------------------------------------------------
Pharmacia Corp. 59,713 3,086,416
--------------------------------------------------------------
5,213,753
--------------------------------------------------------------
HEALTH CARE (HOSPITAL
MANAGEMENT)-2.94%
Health Management Associates,
Inc.-Class A(a) 908,200 11,863,362
--------------------------------------------------------------
HEALTH CARE (MANAGED CARE)-3.83%
UnitedHealth Group Inc. 180,100 15,443,575
--------------------------------------------------------------
HEALTH CARE (MEDICAL PRODUCTS &
SUPPLIES)-1.99%
Beckman Coulter, Inc. 137,900 8,049,912
--------------------------------------------------------------
HOUSEHOLD PRODUCTS (NON-
DURABLES)-0.31%
Procter & Gamble, Co. (The) 21,900 1,253,775
--------------------------------------------------------------
INSURANCE (LIFE/HEALTH)-0.99%
UnumProvident Corp. 200,000 4,012,500
--------------------------------------------------------------
INSURANCE (MULTI-LINE)-0.49%
American International Group, Inc. 16,700 1,962,250
--------------------------------------------------------------
INSURANCE (PROPERTY-CASUALTY)-4.28%
Radian Group Inc. 167,898 8,688,722
--------------------------------------------------------------
XL Capital Ltd.-Class A (Bermuda) 158,700 8,589,638
--------------------------------------------------------------
17,278,360
--------------------------------------------------------------
INSURANCE BROKERS-2.37%
Aon Corp. 308,100 9,570,356
--------------------------------------------------------------
LEISURE TIME (PRODUCTS)-2.26%
Mattel, Inc. 692,660 9,134,454
--------------------------------------------------------------
MANUFACTURING (DIVERSIFIED)-0.34%
Minnesota Mining and Manufacturing
Co. 16,500 1,361,250
--------------------------------------------------------------
MANUFACTURING (SPECIALIZED)-3.04%
Millipore Corp. 64,700 4,876,763
--------------------------------------------------------------
Parker-Hannifin Corp. 215,600 7,384,300
--------------------------------------------------------------
12,261,063
--------------------------------------------------------------
METAL FABRICATORS-1.02%
Kennametal Inc. 192,700 4,131,006
--------------------------------------------------------------
</TABLE>
6
<PAGE> 9
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
NATURAL GAS-1.90%
Dynegy Inc.-Class A 112,000 $ 7,651,000
--------------------------------------------------------------
OIL & GAS (DRILLING &
EQUIPMENT)-7.77%
Diamond Offshore Drilling, Inc. 183,400 6,441,925
--------------------------------------------------------------
ENSCO International Inc. 195,600 7,004,925
--------------------------------------------------------------
Schlumberger Ltd. 93,600 6,984,900
--------------------------------------------------------------
Transocean Sedco Forex Inc. 204,598 10,933,206
--------------------------------------------------------------
31,364,956
--------------------------------------------------------------
OIL (INTERNATIONAL
INTEGRATED)-0.45%
Exxon Mobil Corp. 23,053 1,809,661
--------------------------------------------------------------
PAPER & FOREST PRODUCTS-1.54%
Georgia-Pacific Group 97,700 2,564,625
--------------------------------------------------------------
International Paper Co. 122,000 3,637,125
--------------------------------------------------------------
6,201,750
--------------------------------------------------------------
PHOTOGRAPHY/IMAGING-0.17%
Eastman Kodak Co. 11,700 696,150
--------------------------------------------------------------
REAL ESTATE INVESTMENT TRUSTS-0.92%
Starwood Hotels & Resorts
Worldwide, Inc. 113,783 3,705,059
--------------------------------------------------------------
RETAIL (BUILDING SUPPLIES)-1.17%
Sherwin-Williams Co. (The) 222,700 4,718,456
--------------------------------------------------------------
RETAIL (DEPARTMENT STORES)-1.20%
Federated Department Stores,
Inc.(a) 144,000 4,860,000
--------------------------------------------------------------
RETAIL (FOOD CHAINS)-4.96%
Albertson's, Inc. 266,200 8,851,150
--------------------------------------------------------------
Kroger Co. (The)(a) 506,700 11,179,069
--------------------------------------------------------------
20,030,219
--------------------------------------------------------------
SERVICES (COMMERCIAL &
CONSUMER)-2.71%
H&R Block, Inc. 205,000 6,636,875
--------------------------------------------------------------
IMS Health Inc. 238,400 4,291,200
--------------------------------------------------------------
10,928,075
--------------------------------------------------------------
SERVICES (COMPUTER SYSTEMS)-1.36%
SunGard Data Systems Inc.(a) 176,800 5,480,800
--------------------------------------------------------------
SERVICES (DATA PROCESSING)-5.42%
Ceridian Corp.(a) 291,900 7,023,844
--------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
SERVICES (DATA PROCESSING)-(CONTINUED)
Equifax, Inc. 212,900 $ 5,588,625
--------------------------------------------------------------
First Data Corp. 186,900 9,274,913
--------------------------------------------------------------
21,887,382
--------------------------------------------------------------
SERVICES (EMPLOYMENT)-0.64%
Robert Half International Inc.(a) 91,200 2,599,200
--------------------------------------------------------------
TELECOMMUNICATIONS (LONG
DISTANCE)-1.38%
AT&T Corp. 29,100 920,288
--------------------------------------------------------------
Sprint Corp. (PCS Group) 27,400 1,397,400
--------------------------------------------------------------
WorldCom, Inc.(a) 71,250 3,268,594
--------------------------------------------------------------
5,586,282
--------------------------------------------------------------
TELEPHONE-1.39%
Bell Atlantic Corp. 79,500 4,039,594
--------------------------------------------------------------
SBC Communications Inc. 36,087 1,560,763
--------------------------------------------------------------
5,600,357
--------------------------------------------------------------
WASTE MANAGEMENT-3.03%
Waste Management, Inc. 644,267 12,241,073
--------------------------------------------------------------
Total Common Stocks & Other
Equity Interests (Cost
$327,609,242) 355,312,171
--------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
<S> <C> <C>
U.S. TREASURY SECURITIES-0.28%
U.S. TREASURY BILLS-0.28%
5.66%, 09/21/00 (Cost
$1,140,196)(b) $1,155,000(c) 1,140,771
--------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
</TABLE>
<TABLE>
<CAPTION>
SHARES
<S> <C> <C>
MONEY MARKET FUNDS-10.78%
STIC Liquid Assets Portfolio(d) 21,747,580 21,747,580
--------------------------------------------------------------
STIC Prime Portfolio(d) 21,747,580 21,747,580
--------------------------------------------------------------
Total Money Market Funds
(Cost $43,495,160) 43,495,160
--------------------------------------------------------------
TOTAL INVESTMENTS-99.08% (Cost
$372,244,598) 399,948,102
--------------------------------------------------------------
OTHER ASSETS LESS
LIABILITIES-0.92% 3,710,209
--------------------------------------------------------------
NET ASSETS-100.00% $403,658,311
==============================================================
</TABLE>
Investment Abbreviations:
ADR - American Depositary Receipt
Notes to Schedule of Investments:
(a)Non-income producing security.
(b)Interest rate shown represents the rate of discount paid or received at the
time of purchase by the Fund.
(c)Principal balance was pledged as collateral to cover margin requirements for
open futures contracts. See Note 6.
(d)The money market fund has the same investment advisor as the Fund.
See Notes to Financial Statements.
7
<PAGE> 10
STATEMENT OF ASSETS AND LIABILITIES
June 30, 2000
(Unaudited)
<TABLE>
<S> <C>
ASSETS:
Investments, at market value (cost
$372,244,598) $399,948,102
---------------------------------------------------------
Receivables for:
Investments sold 2,494,673
---------------------------------------------------------
Collateral for securities loaned 1,074,604
---------------------------------------------------------
Fund shares sold 3,386,436
---------------------------------------------------------
Dividends 519,074
---------------------------------------------------------
Variation margin 138,875
---------------------------------------------------------
Investment for deferred compensation plan 13,868
---------------------------------------------------------
Total assets 407,575,632
---------------------------------------------------------
LIABILITIES:
Payables for:
Investments purchased 505,260
---------------------------------------------------------
Collateral upon return of securities
loaned 1,074,604
---------------------------------------------------------
Fund shares reacquired 1,330,987
---------------------------------------------------------
Deferred compensation plan 13,868
---------------------------------------------------------
Accrued advisory fees 191,261
---------------------------------------------------------
Accrued administrative services fees 4,099
---------------------------------------------------------
Accrued distribution fees 298,995
---------------------------------------------------------
Accrued transfer agent fees 55,104
---------------------------------------------------------
Accrued trustees' fees 3,308
---------------------------------------------------------
Accrued operating expenses 439,835
---------------------------------------------------------
Total liabilities 3,917,321
---------------------------------------------------------
Net assets applicable to shares outstanding $403,658,311
=========================================================
NET ASSETS:
Class A $170,276,667
=========================================================
Class B $ 99,303,234
=========================================================
Class C $134,078,410
=========================================================
SHARES OUTSTANDING, $0.01 PAR VALUE PER
SHARE:
Class A 6,927,524
=========================================================
Class B 4,158,702
=========================================================
Class C 5,614,447
=========================================================
Class A:
Net asset value and redemption price per
share $ 24.58
---------------------------------------------------------
Offering price per share:
(Net asset value of $24.58 divided
by 94.50%) $ 26.01
=========================================================
Class B:
Net asset value and offering price per
share $ 23.88
=========================================================
Class C:
Net asset value and offering price per
share $ 23.88
=========================================================
</TABLE>
STATEMENT OF OPERATIONS
For the six months ended June 30, 2000
(Unaudited)
<TABLE>
<S> <C>
INVESTMENT INCOME:
Dividends (net of foreign withholding tax
$10,774) $1,807,762
---------------------------------------------------------
Interest 11,573
---------------------------------------------------------
Security lending 2,736
---------------------------------------------------------
Total investment income 1,822,071
---------------------------------------------------------
EXPENSES:
Advisory and administrative fees 743,365
---------------------------------------------------------
Accounting services fee 24,863
---------------------------------------------------------
Custodian fees 11,386
---------------------------------------------------------
Distribution fees -- Class A 194,506
---------------------------------------------------------
Distribution fees -- Class B 355,704
---------------------------------------------------------
Distribution fees -- Class C 122,062
---------------------------------------------------------
Transfer agent fees 191,860
---------------------------------------------------------
Trustees' fees 5,319
---------------------------------------------------------
Other 112,718
---------------------------------------------------------
Total expenses 1,761,783
---------------------------------------------------------
Less: Expenses paid indirectly (1,506)
---------------------------------------------------------
Net expenses 1,760,277
---------------------------------------------------------
Net investment income 61,794
---------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENT SECURITIES, FOREIGN CURRENCIES
AND FUTURES CONTRACTS
Net realized gain (loss) from:
Investment securities (4,332,695)
---------------------------------------------------------
Foreign currencies (4,508)
---------------------------------------------------------
Futures contracts (245,548)
---------------------------------------------------------
(4,582,751)
---------------------------------------------------------
Change in net unrealized appreciation
(depreciation) of:
Investment securities 5,498,923
---------------------------------------------------------
Futures contracts (432,997)
---------------------------------------------------------
5,065,926
---------------------------------------------------------
Net gain on investment securities, foreign
currencies and futures contracts 483,175
---------------------------------------------------------
Net increase in net assets resulting from
operations $ 544,969
=========================================================
</TABLE>
See Notes to Financial Statements.
8
<PAGE> 11
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) $ 61,794 $ (60,267)
--------------------------------------------------------------------------------------------
Net realized gain (loss) from investment securities,
foreign currencies and futures contracts (4,582,751) 4,676,639
--------------------------------------------------------------------------------------------
Change in net unrealized appreciation of investment
securities and futures contracts 5,065,926 12,454,526
--------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 544,969 17,070,898
--------------------------------------------------------------------------------------------
Distributions to shareholders from net realized gains:
Class A -- (256,018)
--------------------------------------------------------------------------------------------
Class B -- (210,328)
--------------------------------------------------------------------------------------------
Class C -- (27,898)
--------------------------------------------------------------------------------------------
Advisor Class* -- (7,898)
--------------------------------------------------------------------------------------------
Share transactions-net:
Class A 97,396,700 53,925,709
--------------------------------------------------------------------------------------------
Class B 42,219,835 30,620,885
--------------------------------------------------------------------------------------------
Class C 129,125,652 7,050,778
--------------------------------------------------------------------------------------------
Advisor Class* (1,905,460) 591,949
--------------------------------------------------------------------------------------------
Net increase in net assets 267,381,696 108,758,077
--------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 136,276,615 27,518,538
--------------------------------------------------------------------------------------------
End of period $403,658,311 $136,276,615
============================================================================================
NET ASSETS CONSIST OF:
Shares of beneficial interest $376,697,240 $116,220,386
--------------------------------------------------------------------------------------------
Undistributed net investment income (loss) 59,283 (2,511)
--------------------------------------------------------------------------------------------
Undistributed net realized gain (loss) from investment
securities, foreign currencies and futures contracts (496,241) 4,086,510
--------------------------------------------------------------------------------------------
Unrealized appreciation of investment securities and
futures contracts 27,398,029 15,972,230
--------------------------------------------------------------------------------------------
$403,658,311 $136,276,615
============================================================================================
</TABLE>
* Advisor Class shares were converted to Class A shares effective as of the
close of business on February 11, 2000.
See Notes to Financial Statements.
9
<PAGE> 12
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2000
(UNAUDITED)
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES
AIM Basic Value 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. Advisor Class shares were sold without a 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. At a meeting
held on March 14, 2000, the Board of Trustees approved a restructuring of the
Fund to eliminate the master-feeder structure. The Fund, which had invested
substantially all of its investable assets in Value Portfolio (the "Portfolio"),
a Delaware business trust, would now invest directly in the securities in which
the Portfolio had invested. The restructuring of the Fund was approved by the
Shareholders of the Fund at a meeting held on May 31, 2000 and was completed on
June 5, 2000.
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities at the
date of the financial statements and the reported amounts of revenues and
expenses during the reporting period. Actual results could differ from those
estimates. The following is a summary of the significant accounting policies
followed by the Fund in the preparation of its financial statements.
A. Security Valuations -- A security listed or traded on an exchange (except
convertible bonds) is valued at its last sales price as of the close of the
customary trading session on the exchange where the security is principally
traded, or lacking any sales on a particular day, the security is valued at
the closing bid price on that day. Each security reported on the NASDAQ
National Market System is valued at the last sales price as of the close of
the customary trading session on the valuation date or absent a last sales
price, at the closing bid price. Debt obligations (including convertible
bonds) are valued on the basis of prices provided by an independent pricing
service. Prices provided by the pricing service may be determined without
exclusive reliance on quoted prices, and may reflect appropriate factors
such as yield, type of issue, coupon rate and maturity date. Securities for
which market prices are not provided by any of the above methods are valued
based upon quotes furnished by independent sources and are valued at the
last bid price in the case of equity securities and in the case of debt
obligations, the mean between the last bid and asked prices. Securities for
which market quotations are not readily available or are questionable are
valued at fair value as determined in good faith by or under the supervision
of the Trust's officers in a manner specifically authorized by the Board of
Trustees. Short-term obligations having 60 days or less to maturity are
valued at amortized cost which approximates market value. For purposes of
determining net asset value per share, futures and option contracts
generally will be valued 15 minutes after the close of the customary trading
session of the New York Stock Exchange ("NYSE").
Generally, trading in foreign securities is substantially completed each
day at various times prior to the close of the NYSE. The values of such
securities used in computing the net asset value of the Fund's shares are
determined as of such times. Foreign currency exchange rates are also
generally determined prior to the close of the NYSE. Occasionally, events
affecting the values of such securities and such exchange rates may occur
between the times at which they are determined and the close of the
customary trading session of the NYSE which would not be reflected in the
computation of the Fund's net asset value. If events materially affecting
the value of such securities occur during such period, then these securities
will be valued at their fair value as determined in good faith by or under
the supervision of the Board of Trustees.
B. Securities Transactions and Investment Income -- Securities transactions are
accounted for on a trade date basis. Realized gains or losses on sales are
computed on the basis of specific identification of the securities sold.
Interest income is recorded on the accrual basis from settlement date.
Dividend income is recorded on the ex-dividend date.
C. Distributions -- Distributions from income and net realized capital gains,
if any, are generally paid annually and recorded on ex-dividend date. The
Fund may elect to use a portion of the proceeds from redemptions as
distributions for federal income tax purposes.
D. Federal Income Taxes -- The Fund intends to comply with the requirements of
the Internal Revenue Code necessary to qualify as a regulated investment
company and, as such, will not be subject to federal income taxes on
otherwise taxable income (including net realized capital gains) which is
distributed to shareholders. Therefore, no provision for federal income
taxes is recorded in the financial statements.
E. Futures Contracts -- The Fund may purchase or sell futures contracts as a
hedge against changes in market conditions. Initial margin deposits required
upon entering into futures contracts are satisfied by the segregation of
specific securities
10
<PAGE> 13
as collateral for the account of the broker (the Fund's agent in acquiring
the futures position). During the period the futures contracts are open,
changes in the value of the contracts are recognized as unrealized gains or
losses by "marking to market" on a daily basis to reflect the market value
of the contracts at the end of each day's trading. Variation margin payments
are made or received depending upon whether unrealized gains or losses are
incurred. When the contracts are closed, the Fund recognizes a realized gain
or loss equal to the difference between the proceeds from, or cost of, the
closing transaction and the Fund's basis in the contract. Risks include the
possibility of an illiquid market and that a change in value of the
contracts may not correlate with changes in the value of the securities
being hedged.
F. Expenses -- Distribution expenses directly attributable to a class of shares
are charged to that class' operations. All other expenses which are
attributable to more than one class are allocated among the classes.
NOTE 2-ADVISORY FEES AND OTHER TRANSACTIONS WITH AFFILIATES
A I M Advisors, Inc. ("AIM") is the Fund's investment manager and administrator.
The Fund pays AIM investment management and administration fees at an annual
rate of 0.725% on the first $500 million of the Fund's average daily net assets,
plus 0.70% on the next $500 million of the Fund's average daily net assets, plus
0.675% on the next $500 million of the Fund's average daily net assets, plus
0.65% on the Fund's average daily net assets exceeding $1.5 billion. AIM has
contractually agreed to waive fees and reimburse expenses (excluding interest,
taxes, dividends on short sales, extraordinary items and increases in expenses
due to offset arrangements, if any) on Class A, Class B and Class C to the
extent necessary to limit total operating expenses of Class A shares to 1.32%.
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 $88,642 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 $194,506,
$355,704 and $122,062, respectively, as compensation under the Plans.
AIM Distributors received commissions of $146,866 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 $13,240 in contingent deferred sales charges
imposed on redemptions of Fund shares.
Certain officers and trustees of the Trust are officers and directors of
AIM, AFS and AIM Distributors.
NOTE 3-INDIRECT EXPENSES
For the six months ended June 30, 2000, the Fund received reductions in
custodian fees and in transfer agency fees from AFS (an affiliate of AIM) of
$728 and $778, respectively, under expense offset arrangements which resulted in
a reduction of the Fund's total expenses of $1,506.
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, securities with an aggregate value of $1,053,750 were on
loan to brokers. The loans were secured by cash collateral of $1,074,604
received by the Fund. For the six months ended June 30, 2000, the Fund received
fees of $2,736 for securities lending.
11
<PAGE> 14
NOTE 6-FUTURES CONTRACTS
On June 30, 2000, $1,155,000 principal amount of U.S. Treasury obligations were
pledged as collateral to cover margin requirements for open futures contracts.
Open futures contracts were as follows:
<TABLE>
<CAPTION>
UNREALIZED
NO. OF MONTH/ MARKET APPRECIATION
CONTRACT CONTRACTS COMMITMENT VALUE (DEPRECIATION)
-------- --------- ----------- ----------- --------------
<S> <C> <C> <C> <C>
S&P 500 Index 55 Sep. 00/Buy $20,186,375 $(305,475)
-----------------------------------------------------------------------------------------------------------------------
</TABLE>
NOTE 7-INVESTMENT SECURITIES
The aggregate amount of investment securities (other than short-term securities)
purchased and sold by the Fund during the six months ended June 30, 2000 was
$291,104,619 and $67,195,763, respectively.
The amount of unrealized appreciation (depreciation) of investment securities,
for tax purposes, as of June 30, 2000 is as follows:
<TABLE>
<S> <C>
Aggregate unrealized appreciation of
investment securities $ 46,873,612
--------------------------------------------------------------------------
Aggregate unrealized (depreciation) of
investment securities (19,632,476)
--------------------------------------------------------------------------
Net unrealized appreciation of investment
securities $ 27,241,136
==========================================================================
Cost of investments for tax purposes is
$372,706,966.
</TABLE>
NOTE 8-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, DECEMBER 31,
2000 1999
------------------------- ------------------------
SHARES AMOUNT SHARES AMOUNT
---------- ------------ --------- ------------
<S> <C> <C> <C> <C>
Sold:
Class A 4,757,297 $115,472,062 3,261,169 $ 70,510,993
------------------------------------------------------------------------------------------------------------------
Class B 2,137,452 50,556,330 2,206,406 46,519,183
------------------------------------------------------------------------------------------------------------------
Class C* 1,174,216 27,864,660 373,145 7,969,386
------------------------------------------------------------------------------------------------------------------
Advisor Class** 594 14,010 55,252 1,198,665
------------------------------------------------------------------------------------------------------------------
Issued as reinvestment of dividends:
Class A -- -- 10,995 241,403
------------------------------------------------------------------------------------------------------------------
Class B -- -- 9,168 196,233
------------------------------------------------------------------------------------------------------------------
Class C* -- -- 1,007 21,568
------------------------------------------------------------------------------------------------------------------
Advisor Class** -- -- 355 7,898
------------------------------------------------------------------------------------------------------------------
Issued in connection with acquisitions***:
Class A 574,087 14,532,847 -- --
------------------------------------------------------------------------------------------------------------------
Class B 334,747 8,236,922 -- --
------------------------------------------------------------------------------------------------------------------
Class C 4,239,045 104,299,371 -- --
------------------------------------------------------------------------------------------------------------------
Conversion of Advisor Class shares to Class A shares****:
Class A 84,298 1,882,374 -- --
------------------------------------------------------------------------------------------------------------------
Advisor Class (83,070) (1,882,374) -- --
------------------------------------------------------------------------------------------------------------------
Reacquired:
Class A (1,457,251) (34,490,583) (803,521) (16,826,687)
------------------------------------------------------------------------------------------------------------------
Class B (714,499) (16,573,417) (792,971) (16,094,531)
------------------------------------------------------------------------------------------------------------------
Class C* (128,884) (3,038,379) (44,082) (940,176)
------------------------------------------------------------------------------------------------------------------
Advisor Class** (1,561) (37,096) (28,204) (614,614)
------------------------------------------------------------------------------------------------------------------
10,916,471 $266,836,727 4,248,719 $ 92,189,321
==================================================================================================================
</TABLE>
* Class C shares commenced sales on May 3, 1999.
** Advisor Class share activity for the period January 1, 2000 through February
11, 2000.
*** AIM Advisor Large Cap Value Fund ("Advisor Large Cap Value Fund")
transferred all of its assets to the Fund at the open of business June 19,
2000, pursuant to an Agreement and Plan of Reorganization. The Fund assumed
all of the liabilities of the Advisor Large Cap Value Fund. Shareholders of
the Advisor Large Cap Value Fund were issued full and fractional shares of
the applicable class of the Fund. The reorganization, which was approved by
the shareholders of Advisor Large Cap Value Fund on May 31, 2000, was
accomplished by an exchange of 5,147,879 shares of the Fund for the
8,552,846 shares then outstanding of the Advisor Large Cap Value Fund. Based
on the opinion of the Fund's counsel, the reorganization qualified as a
tax-free reorganization for federal income tax purposes with no gain or loss
recognized to the Fund or its shareholders. Advisor Large Cap Value Fund's
net assets, including $6,359,873 of unrealized appreciation were combined
with the Fund for total net assets after the reorganization of $402,079,642.
****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.
12
<PAGE> 15
NOTE 9-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 OCTOBER 18, 1995
ENDED YEAR ENDED DECEMBER 31, (DATE OPERATIONS
JUNE 30, ----------------------------------- COMMENCED) TO
2000(a) 1999(a) 1998 1997(a) 1996(a) DECEMBER 31, 1995(a)
---------- ------- ------ ------- ------- --------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 23.84 $ 18.13 $17.25 $14.65 $12.76 $11.43
---------------------------------------------------- -------- ------- ------ ------ ------ ------
Income from investment operations:
Net investment income (loss) 0.04 0.05 0.04 0.09 (0.01) 0.03
---------------------------------------------------- -------- ------- ------ ------ ------ ------
Net gains on securities (both realized and
unrealized) 0.70 5.75 1.16 3.87 1.94 1.30
---------------------------------------------------- -------- ------- ------ ------ ------ ------
Total from investment operations 0.74 5.80 1.20 3.96 1.93 1.33
---------------------------------------------------- -------- ------- ------ ------ ------ ------
Less distributions:
Dividends from net investment income -- -- -- (0.03) -- --
---------------------------------------------------- -------- ------- ------ ------ ------ ------
Distributions from net realized gains -- (0.09) (0.32) (1.33) (0.04) --
---------------------------------------------------- -------- ------- ------ ------ ------ ------
Total distributions -- (0.09) (0.32) (1.36) (0.04) --
---------------------------------------------------- -------- ------- ------ ------ ------ ------
Net asset value, end of period $ 24.58 $ 23.84 $18.13 $17.25 $14.65 $12.76
==================================================== ======== ======= ====== ====== ====== ======
Total return(b) 3.10% 32.04% 7.02% 27.23% 15.12% 11.64%
==================================================== ======== ======= ====== ====== ====== ======
Ratios/supplemental data:
Net assets, end of period (000s omitted) $170,277 $70,791 $9,074 $7,688 $2,529 $ 870
==================================================== ======== ======= ====== ====== ====== ======
Ratio of expenses to average net assets:
With fee waivers 1.40%(c) 1.69% 1.74% 2.02%(d) 2.00% 2.00%(d)
---------------------------------------------------- -------- ------- ------ ------ ------ ------
Without fee waivers 1.40%(c) 1.71% 2.11% 3.00%(d) 5.51% 50.54%(d)
==================================================== ======== ======= ====== ====== ====== ======
Ratio of net investment income (loss) to average net
assets 0.36%(c) 0.23% 0.25% 0.56% (0.10)% 1.10%(d)
==================================================== ======== ======= ====== ====== ====== ======
Portfolio turnover rate 34% 63% 148% 93% 256% --
==================================================== ======== ======= ====== ====== ====== ======
</TABLE>
(a) Calculated using average shares outstanding during the period.
(b) Does not deduct sales charges and is not annualized for periods less than
one year.
(c) Ratios are annualized and based on average net assets of $111,757,032.
(d) Annualized.
<TABLE>
<CAPTION>
CLASS B
-------------------------------------------------------------------------
SIX MONTHS OCTOBER 18, 1995
ENDED YEAR ENDED DECEMBER 31, (DATE OPERATIONS
JUNE 30, -------------------------------------- COMMENCED) TO
2000(a) 1999(a) 1998 1997(a) 1996(a) DECEMBER 31, 1995(a)
---------- ------- ------- ------- ------- --------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 23.23 $ 17.79 $ 17.04 $ 14.54 $12.75 $11.43
---------------------------------------------------- ------- ------- ------- ------- ------ ------
Income from investment operations:
Net investment income (loss) (0.03) (0.09) (0.08) (0.01) (0.10) 0.01
---------------------------------------------------- ------- ------- ------- ------- ------ ------
Net gains on securities (both realized and
unrealized) 0.68 5.62 1.15 3.83 1.93 1.31
---------------------------------------------------- ------- ------- ------- ------- ------ ------
Total from investment operations 0.65 5.53 1.07 3.82 1.83 1.32
---------------------------------------------------- ------- ------- ------- ------- ------ ------
Less distributions from net realized gains -- (0.09) (0.32) (1.32) (0.04) --
---------------------------------------------------- ------- ------- ------- ------- ------ ------
Net asset value, end of period $ 23.88 $ 23.23 $ 17.79 $ 17.04 $14.54 $12.75
==================================================== ======= ======= ======= ======= ====== ======
Total return(b) 2.80% 31.13% 6.34% 26.44% 14.35% 11.55%
==================================================== ======= ======= ======= ======= ====== ======
Ratios/supplemental data:
Net assets, end of period (000s omitted) $99,303 $55,785 $17,406 $16,717 $5,503 $1,254
==================================================== ======= ======= ======= ======= ====== ======
Ratio of expenses to average net assets:
With fee waivers 2.05%(c) 2.34% 2.39% 2.67%(d) 2.65% 2.65%(d)
---------------------------------------------------- ------- ------- ------- ------- ------ ------
Without fee waivers 2.05%(c) 2.36% 2.76% 3.65%(d) 6.16% 51.19%(d)
==================================================== ======= ======= ======= ======= ====== ======
Ratio of net investment income (loss) to average net
assets (0.29)%(c) (0.42)% (0.40)% (0.09)% (0.75)% 0.45%(d)
==================================================== ======= ======= ======= ======= ====== ======
Portfolio turnover rate 34% 63% 148% 93% 256% --
==================================================== ======= ======= ======= ======= ====== ======
</TABLE>
(a) Calculated using average shares outstanding during the period.
(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 $71,531,564.
(d) Annualized.
13
<PAGE> 16
NOTE 9-FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
CLASS C
---------------------------------
SIX MONTHS MAY 3, 1999
ENDED (DATE SALES
JUNE 30, COMMENCED) TO
2000(a) DECEMBER 31, 1999(a)
---------- --------------------
<S> <C> <C>
Net asset value, beginning of period $ 23.23 $21.07
----------------------------------------------------------- -------- ------
Income from investment operations:
Net investment income (loss) (0.03) (0.06)
----------------------------------------------------------- -------- ------
Net gains on securities (both realized and unrealized) 0.68 2.31
----------------------------------------------------------- -------- ------
Total from investment operations 0.65 2.25
----------------------------------------------------------- -------- ------
Less distributions from net realized gains -- (0.09)
----------------------------------------------------------- -------- ------
Net asset value, end of period $ 23.88 $23.23
=========================================================== ======== ======
Total return(b) 2.80% 10.72%
=========================================================== ======== ======
Ratios/supplemental data:
Net assets, end of period (000s omitted) $134,078 $7,669
=========================================================== ======== ======
Ratio of expenses to average net assets:
With fee waivers 2.05%(c) 2.34%(d)
----------------------------------------------------------- -------- ------
Without fee waivers 2.05%(c) 2.36%(d)
=========================================================== ======== ======
Ratio of net investment income (loss) to average net assets (0.29)(c) (0.42)(d)
=========================================================== ======== ======
Portfolio turnover rate 34% 63%
=========================================================== ======== ======
</TABLE>
(a) Calculated using average shares outstanding during the period.
(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 $24,546,590.
(d) Annualized.
<TABLE>
<CAPTION>
ADVISOR CLASS
--------------------------------------------------------------------------
JANUARY 1,
2000 OCTOBER 18, 1995
TO YEAR ENDED DECEMBER 31, (DATE OPERATIONS
FEBRUARY 11, ------------------------------------- COMMENCED) TO
2000(a) 1999(a) 1998 1997(a) 1996(a) DECEMBER 31, 1995(a)
------------ ------- ------ ------- ------- --------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $24.18 $18.33 $17.37 $14.72 $12.77 $11.43
---------------------------------------------------- ------ ------ ------ ------ ------ ------
Income from investment operations:
Net investment income 0.03 0.12 0.07 0.15 0.03 0.04
---------------------------------------------------- ------ ------ ------ ------ ------ ------
Net gains (losses) on securities (both realized and
unrealized) (1.55) 5.82 1.21 3.91 1.96 1.30
---------------------------------------------------- ------ ------ ------ ------ ------ ------
Total from investment operations (1.52) 5.94 1.28 4.06 1.99 1.34
---------------------------------------------------- ------ ------ ------ ------ ------ ------
Less distributions:
Dividends from net investment income -- -- -- (0.07) -- --
---------------------------------------------------- ------ ------ ------ ------ ------ ------
Distributions from net realized gains -- (0.09) (0.32) (1.34) (0.04) --
---------------------------------------------------- ------ ------ ------ ------ ------ ------
Total distributions -- (0.09) (0.32) (1.41) (0.04) --
---------------------------------------------------- ------ ------ ------ ------ ------ ------
Net asset value, end of period $22.66 $24.18 $18.33 $17.37 $14.72 $12.77
==================================================== ====== ====== ====== ====== ====== ======
Total return(b) (6.29)% 32.45% 7.43% 27.78% 15.58% 11.72%
==================================================== ====== ====== ====== ====== ====== ======
Ratios/supplemental data:
Net assets, end of period (000s omitted) -- $2,032 $1,038 $ 439 $ 191 $ 81
==================================================== ====== ====== ====== ====== ====== ======
Ratio of expenses to average net assets:
With fee waivers 1.05%(c) 1.34% 1.39% 1.67%(d) 1.65% 1.65%(d)
---------------------------------------------------- ------ ------ ------ ------ ------ ------
Without fee waivers 1.05%(c) 1.36% 1.76% 2.65%(d) 5.16% 50.19%(d)
==================================================== ====== ====== ====== ====== ====== ======
Ratio of net investment income to average net assets 0.71%(c) 0.58% 0.60% 0.91% 0.25% 1.45%(d)
==================================================== ====== ====== ====== ====== ====== ======
Portfolio turnover rate 34% 63% 148% 93% 256% --
==================================================== ====== ====== ====== ====== ====== ======
</TABLE>
(a) Calculated using average shares outstanding during the period.
(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 $2,007,009.
(d) Annualized.
14
<PAGE> 17
PROXY RESULTS (UNAUDITED)
A Special Meeting of Shareholders of AIM Basic Value Fund (the "Fund"), an
investment portfolio of AIM Growth Series, a Delaware business trust (the
"Trust"), was held on May 31, 2000. The meeting was held for the following
purposes:
(1) To approve a new Investment Advisory Agreement for the Fund.
(2) To approve changing the fundamental investment restrictions of the Fund.
(3) To approve changing the investment objective of the Fund so that it is
non-fundamental.
(4) To ratify the selection of PricewaterhouseCoopers LLP as independent public
accountants of the Fund for the fiscal year ending in 2000.
The results of the proxy solicitation on the above matters were as follows:
<TABLE>
<CAPTION>
VOTES VOTES WITHHELD/
MATTER FOR AGAINST ABSTENTIONS
------ --------- ------- -----------
<S> <C> <C> <C> <C>
(1) Approval of Investment Advisory Agreement................... 2,931,856 50,840 1,183,065*
(2)(a) Modification of Fundamental Restriction on Portfolio
Diversification............................................. 2,888,388 74,888 1,202,485*
(2)(b) Modification of Fundamental Restriction on Issuing Senior
Securities and Borrowing Money.............................. 2,866,773 90,052 1,208,936*
(2)(c) Modification of Fundamental Restriction on Underwriting
Securities.................................................. 2,875,545 82,015 1,208,201*
(2)(d) Modification of Fundamental Restriction on Industry
Concentration............................................... 2,886,428 77,216 1,202,117*
(2)(e) Modification of Fundamental Restriction on Real Estate
Investments................................................. 2,874,891 90,444 1,200,426*
(2)(f) Modification of Fundamental Restriction on Purchasing or
Selling Commodities......................................... 2,875,271 89,049 1,201,441*
(2)(g) Modification of Fundamental Restriction on Making Loans..... 2,867,523 92,264 1,205,974*
(2)(h) Modification of Fundamental Restriction on Investment in
Investment Companies........................................ 2,879,328 80,618 1,205,815*
(3) Approval of Changing the Investment Objective of the Fund so
that it is Non-Fundamental.................................. 2,868,856 93,713 1,203,192*
(4) Ratification of the selection of PricewaterhouseCoopers LLP
as Independent Public Accountants of the Fund............... 3,992,547 26,776 146,438
</TABLE>
----------
* Includes Broker Non-Votes
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, Chairman and President Suite 100
Plantagenet Capital Houston, TX 77046
Management, LLC (an investment Dana R. Sutton
partnership); Chief Executive Officer, Vice President and Treasurer INVESTMENT MANAGER
Plantagenet Holdings, Ltd.
(an investment banking firm) Samuel D. Sirko A I M Advisors, Inc.
Vice President and Secretary 11 Greenway Plaza
Frank S. Bayley Suite 100
Partner, law firm of Melville B. Cox Houston, TX 77046
Baker & McKenzie Vice President
TRANSFER AGENT
Robert H. Graham Gary T. Crum
Director, President and Vice President A I M Fund Services, Inc.
Chief Executive Officer, P.O. Box 4739
A I M Management Group Inc. Carol F. Relihan Houston, TX 77210-4739
Vice President
Ruth H. Quigley CUSTODIAN
Private Investor Mary J. Benson
Assistant Vice President and State Street Bank and Trust Company
Assistant Treasurer 225 Franklin Street
Boston, MA 02110
Sheri Morris
Assistant Vice President and COUNSEL TO THE FUND
Assistant Treasurer
Kirkpatrick & Lockhart LLP
Nancy L. Martin 1800 Massachusetts Avenue, N.W.
Assistant Secretary Washington, D.C. 20036-1800
Ofelia M. Mayo COUNSEL TO THE TRUSTEES
Assistant Secretary
Paul, Hastings, Janofsky & Walker LLP
Kathleen J. Pflueger Twenty Third Floor
Assistant Secretary 555 South Flower Street
Los Angeles, CA 90071
DISTRIBUTOR
A I M Distributors, Inc.
11 Greenway Plaza
Suite 100
Houston, TX 77046
</TABLE>
REQUIRED FEDERAL INCOME TAX INFORMATION FOR FORMER SHAREHOLDERS OF AIM ADVISOR
LARGE CAP VALUE FUND (UNAUDITED)
The former shareholders of AIM Advisor Large Cap Value Fund Class A, B and C
shares received ordinary dividends in the amount of $0.5395, $0.5395 and $0.5395
per share, respectively, during the Fund's tax year ended June 18, 2000. Of this
amount, 30.11% is eligible for the dividends received deduction for
corporations.
AIM Advisor Large Cap Value Fund also distributed long-term capital gains of
$42,291,310 for the Fund's tax year ended June 18, 2000 of which 100% is 20%
rate gain.
16
<PAGE> 19
-------------------------------------
OUR AUTOMATED
AIM INVESTOR LINE,
800-246-5463,
PROVIDES CURRENT ACCOUNT
INFORMATION AND THE PRICE,
YIELD AND TOTAL RETURN ON
ALL AIM FUNDS 24 HOURS A
DAY. YOU CAN ALSO ORDER A
YEAR-TO-DATE STATEMENT OF
YOUR ACCOUNT.
-------------------------------------
AIM FUNDS --Registered Trademark-- MAKES INVESTING EASY
o AIM BANK CONNECTION(SM). You can invest in your AIM account in amounts from
$50 to $100,000 without writing a check. Once you set up this ~convenient
feature, AIM will draw the funds from your pre-authorized checking account
at your request.
o AIM INTERNET CONNECT(SM). Sign up for this service and you can buy, redeem
or exchange shares of AIM funds in your AIM account simply by visiting our
Web site at www.aimfunds.com. For a retirement account, such as an IRA or
403(b), only exchanges are allowed over the Internet because of the
tax-reporting and record-keeping requirements these accounts involve.
o AUTOMATIC REINVESTMENT OF DIVIDENDS AND/OR CAPITAL GAINS. You can receive
distributions in cash, or you can reinvest them in your account without
paying a sales charge. Over time, the power of compounding can significantly
increase the value of your account.
o AUTOMATIC INVESTMENT PLAN. You can add to your account by authorizing your
AIM fund to withdraw a specified amount, minimum $50, from your bank account
on a regular schedule.
o EASY ACCESS TO YOUR MONEY. You can redeem shares of your AIM fund any day
the New York Stock Exchange is open. The value of the shares may be more or
less than their original cost depending on market conditions.
o EXCHANGE PRIVILEGE. As your investment goals change, you may exchange part
or all of your shares of one fund for shares of a different AIM fund within
the same share class. You may make up to 10 such exchanges per calendar
year.
o TAX-ADVANTAGED RETIREMENT PLANS. You can enjoy the tax advantages offered by
a variety of investment plans, including Traditional IRAs, Roth IRAs and
education IRAs, among others.
o E-MAIL ACCESS. You can contact us at [email protected] for general
information. For account information, contact us at
[email protected].
o WWW.AIMFUNDS.COM. Our award-winning Web site provides account information,
shareholder education and fund-performance information.
<PAGE> 20
THE AIM FAMILY OF FUNDS--Registered Trademark--
EQUITY FUNDS
<TABLE>
<S> <C> <C>
INTERNATIONAL/GLOBAL EQUITY FUNDS A I M Management Group Inc. has provided
MORE AGGRESSIVE MORE AGGRESSIVE leadership in the mutual fund industry
AIM Small Cap Opportunities(1) AIM Latin American Growth since 1976 and managed approximately
AIM Mid Cap Opportunities(2) AIM Developing Markets $176 billion in assets for more than 8
AIM Large Cap Opportunities AIM Asian Growth million shareholders, including
AIM Emerging Growth AIM Japan Growth individual investors, corporate clients
AIM Small Cap Growth(3) AIM European Development and financial institutions, as of
AIM Aggressive Growth AIM Euroland Growth(5) June 30, 2000.
AIM Mid Cap Growth AIM Global Aggressive Growth The AIM Family of Funds--Registered
AIM Capital Development AIM International Equity Trademark-- is distributed nationwide,
AIM Constellation(4) AIM Advisor International Value and AIM today is the eighth-largest
AIM Dent Demographic Trends AIM Global Trends(6) mutual fund complex in the United States
AIM Select Growth AIM Global Growth in assets under management, according to
AIM Mid Cap Equity Strategic Insight, an independent mutual
AIM Large Cap Growth MORE CONSERVATIVE fund monitor.
AIM Weingarten AIM is a subsidiary of AMVESCAP PLC,
AIM Charter SECTOR EQUITY FUNDS one of the world's largest independent
AIM Value MORE AGGRESSIVE financial services companies with $389
AIM Blue Chip AIM Global Telecommunications and Technology billion in assets under management as of
AIM Basic Value AIM Global Resources June 30, 2000.
AIM Large Cap Basic Value AIM Global Financial Services
AIM Balanced AIM Global Health Care
AIM Advisor Flex AIM Global Consumer Products and Services
AIM Global Infrastructure
MORE CONSERVATIVE 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 March 31,
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--
BVA-SAR-1
A I M Distributors, Inc.
