<PAGE> 1
ANNUAL REPORT / DECEMBER 31 1999
AIM EUROLAND GROWTH FUND
[COVER IMAGE]
[AIM LOGO APPEARS HERE]
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[COVER IMAGE]
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RAIN, STEAM AND SPEED BY J. M. W. TURNER (1844)
J. M. W. TURNER LIKED TO PAINT EPIC SCENES OF CALAMITY IN
WHICH THE FURY OF THE ELEMENTS UNDERLINES HUMANITY'S
INSIGNIFICANCE WITHIN NATURE'S PLAN. SIMILAR TO THE TRAIN
FIGHTING THROUGH THE MIXED ELEMENTS, THIS SAME SPIRIT IS
PROPELLING EUROPE INTO ECONOMIC LEADERSHIP.
-----------------------------------
AIM Euroland Growth Fund is for shareholders seeking long-term growth of
capital. The fund invests primarily in equity securities of issuers from
European countries that are members of the European Economic and Monetary Union
(EMU) and have the euro as their common currency.
ABOUT FUND PERFORMANCE AND PORTFOLIO DATA THROUGHOUT THIS REPORT:
o Effective 9/1/99, AIM Europe Growth Fund changed its name to AIM
Euroland Growth Fund.
o AIM Euroland Growth Fund's performance figures are historical, and
they reflect changes in net asset value and the reinvestment of
distributions.
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 expenses.
o Because Class C shares have been offered for less than a year (since
5/3/99), all total-return figures for Class C shares reflect cumulative
total return that has not yet been annualized.
o Effective 3/1/99, Advisor Class shares were closed to new investors.
Effective 2/11/00, after the close of the fiscal year, Advisor Class shares
were converted to Class A shares.
o During the fiscal year ended 12/31/99, the fund paid distributions of
$1.3919 per Class A, Class B and Class C share.
o International investing presents certain risks not associated with
investing solely in the United States. These include risks relating to
fluctuations in the value of the 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 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 EAFE--Registered Trademark-- (Europe, Australasia and the
Far East) Index is a group of foreign securities tracked by Morgan Stanley
Capital International.
o The unmanaged MSCI Europe Index is a group of European securities tracked
by Morgan Stanley Capital International.
o An investment cannot be made in an index. Unless otherwise indicated, index
results include reinvested dividends. They do not include sales charges.
AN INVESTMENT IN THE FUND IS NOT A DEPOSIT OF A BANK AND IS NOT INSURED OR
GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY OTHER
GOVERNMENT AGENCY. THERE IS A RISK THAT YOU COULD LOSE SOME OR ALL OF
YOUR MONEY.
This report may be distributed only to current shareholders or to persons
who have received a current prospectus of the fund.
AIM EUROLAND GROWTH FUND
<PAGE> 3
ANNUAL REPORT / CHAIRMAN'S LETTER
Dear Fellow Shareholder:
The fiscal year discussed in this report has reconfirmed our
[PHOTO OF faith in two long-established principles of investing:
Charles T. portfolio diversification and long-term thinking. We could
Bauer, title this report "What a Difference a Year Makes."
Chairman of An investor surveying conditions when the fiscal year
the Board of opened on January 1, 1999, would have seen a market
THE FUND dominated by large-capitalization stocks and high-quality
APPEARS HERE] bonds, especially U.S. Treasuries. During 1998, two
well-known indexes of large-capitalization U.S. companies,
the S&P 500 and the Dow Jones Industrial Average, were up
28.60% and 18.15%, respectively. By contrast,
smaller-company stocks in the Russell 2000 had lost 2.55%.
Overseas, many markets were languishing, especially in Asia,
where so many financial difficulties had originated in 1997.
In bond markets as well, name-brand quality was the
place to be. The Lehman Government/Corporate Bond Index,
which follows sovereign issues and investment-grade debt, was up 9.47%, while
the Lehman High Yield Index, which tracks riskier "junk bonds," had risen only
1.60%.
It would be easy for an investor to conclude that blue-chip issues, whether
equity or fixed-income, were the place to be, that it was time to divest
himself of everything else and put all his eggs in the blue-chip basket. The
investor, of course, would be wrong.
MARKETS TURN
While large-capitalization stocks continued to do very well, during 1999
markets broadened dramatically with many investment sectors performing a
complete turnaround. For example, the small-cap stocks in the Russell 2000 were
up 21.26% for calendar year 1999, and many Asian markets, particularly Japan,
had staged a comeback.
The same holds true of bonds. The higher-quality Lehman index was down
2.15% during 1999 while the Lehman High Yield index was up 2.39%.
The point, at the risk of sounding repetitive to those of you who have
invested with us for a long time, is that this is why diversification is a
fundamental investing principle. Market sectors and asset classes go in and out
of favor, but over the long run--and the long run is several years--the
markets' overall trend has been upward. Selecting an asset class or a market
sector on the basis of a short-term snapshot of conditions is usually unwise,
as is concentrating your portfolio in one asset class. Staying fully invested
in a diversified portfolio remains a compelling strategy and one of your best
prospects for long-term gain. We also continue to remind you that the past few
years have seen extraordinary gains in some markets, and there is no assurance
that this trend will continue.
LOOKING AHEAD
As we look about at the close of this fiscal year, we are encouraged by
multiple signs of economic health in Europe and Asia, not to mention the
prolonged U.S. economic expansion. However, we are aware of how easily an
investor could have been misled by conditions just 12 months ago. For our
shareholders, we therefore reiterate our commitment to investing through a
financial advisor. In addition to helping you select investments appropriate to
your time horizon and risk tolerance, a financial advisor can keep you informed
about how changing market conditions affect you and your portfolio--and help
ensure that when you do alter your investments, there's a logical reason for
doing so. AIM believes every investor should be guided by a financial
professional.
FUND MANAGERS COMMENT
In the pages that follow, your fund's portfolio managers discuss how they
managed your fund during the year ended December 31, how the markets behaved
and what they foresee for the near future. We trust you will find their
discussion informative. If you have any questions or comments, we invite you to
contact us, either at our Web site, aimfunds.com, or through our Client
Services department at 800-959-4246. Information about your account is also
available through our automated AIM Investor Line, 800-246-5463.
Thank you for your continued participation in The AIM Family of Funds
- --Registered Trademark--.
Sincerely,
/s/ CHARLES T. BAUER
Charles T. Bauer
Chairman, A I M Advisors, Inc.
----------------------------------
STAYING FULLY INVESTED
IN A DIVERSIFIED
PORTFOLIO REMAINS
A COMPELLING STRATEGY
AND ONE OF YOUR
BEST PROSPECTS FOR
LONG-TERM GAIN.
----------------------------------
AIM EUROLAND GROWTH FUND
<PAGE> 4
ANNUAL REPORT / MANAGERS' OVERVIEW
ACCELERATING GROWTH IN EUROPE PROPELS FUND
EUROPEAN MARKETS GOT OFF TO A SLOW START LAST YEAR BUT GRADUALLY GAINED
MOMENTUM. HOW DID THE FUND PERFORM IN THIS ENVIRONMENT?
AIM Euroland Growth Fund came on strong in the fourth quarter, reporting
average annual total returns (excluding sales charges) of 35.14% for Class A
shares, 34.19% for Class B shares and 35.58% for Advisor Class shares for the
fiscal year ended December 31, 1999. Class C shares produced a cumulative total
return (excluding sales charges)of 39.95% from their inception on May 3, 1999
through the end of the fiscal year. The fund's performance significantly
outpaced the benchmark for its peer group of diversified European funds, the
MSCI Europe Index, which returned 15.89% for the fiscal year.
WHAT WAS THE EUROPEAN MARKET ENVIRONMENT FOR THE REPORTING PERIOD?
European market fundamentals were good: inflation was low, employment and
exports picked up and consumer confidence was high. Throughout the year
economic growth accelerated, with most economies' growth expectations
experiencing upward revisions. Likewise, earnings growth has been strong the
last few months as European companies have benefited from economic growth, the
recovery in Asia and a strong U.S. dollar, which has helped many companies that
export to the United States.
On a country-by-country basis, France, the Netherlands, Spain, Finland and
Ireland led the region with strong growth, while Italy and Europe's proverbial
economic powerhouse, Germany, lagged the field. Despite Germany's poor overall
economic showing, individual company performance made it one of our top
countries for investment. Telecommunications and engineering leader Mannesmann
A.G. was one of the fund's top holdings.
WHAT IMPACT DID THE DECLINING EURO HAVE ON EUROPEAN MARKETS?
The euro launched with a bang at the beginning of the year but fizzled in the
face of strong U.S. economic growth and weak earnings in Europe. As investors
anticipated rising interest rates in the United States--and not in Europe--they
began moving money into dollars and selling the euro, causing it to weaken.
However, the euro appears to have bottomed out and is beginning to strengthen
based on improved economic growth in Europe.
The currency's lower value has helped boost earnings for Euroland companies
that export to the United States or deal in dollar-denominated goods, such as
computer components. The fund specifically has benefited from such holdings as
Nokia and Ericsson, two of the world's leading suppliers of mobile phones, and
Porsche, the luxury auto maker. The rise in oil prices was leveraged by the
euro's weakness as well, benefiting the fund's holdings in Elf Aquitaine, Total
Fina and Royal Dutch Shell.
HOW DID THE FUND PERFORM IN THIS ENVIRONMENT?
The first quarter was tough for the fund and for European growth investors in
general. The fund suffered as more cyclical stocks rallied and markets obsessed
about potential increases in U.S. interest rates--giving little attention to
earnings growth. After the Federal Reserve's first hike in U.S. interest rates,
however, markets shifted their focus to earnings growth again.
The prospect of higher growth coupled with strong competition supported our
strategy for the fund. We decreased our exposure to the more stable growth
sectors of health care and food early in the year, because higher interest
rates tend to negatively affect the valuation of these sectors. Cash raised
here was reinvested in more dynamic companies with stronger growth potential in
the telecommunications, technology, broadcasting and financial sectors. Strong
stock selection helped performance all year, but in the final two months,
performance surged as the market followed the fund's core strategy.
-------------------------------------
EUROPEAN COMPANIES HAVE BENEFITED
FROM ECONOMIC GROWTH, THE RECOVERY
IN ASIA AND A STRONG U.S. DOLLAR.
-------------------------------------
FUND OUTPERFORMS BENCHMARK
Total return 12/31/98-12/31/99,
excluding sales charges
===============================================================================
ADVISOR CLASS SHARES 35.58%
CLASS A SHARES 35.14%
CLASS B SHARES 34.19%
MSCI EUROPE INDEX 15.89%
Class C shares produced a cumulative total return excluding sales charges of
39.95% from their inception on May 3, 1999 through the end of the fiscal year.
===============================================================================
See important fund and index disclosures inside front cover.
AIM EUROLAND GROWTH FUND
2
<PAGE> 5
ANNUAL REPORT / MANAGERS' OVERVIEW
EUROPE HAS SEEN A FLURRY OF MERGER AND ACQUISITION ACTIVITY DURING THE
REPORTING PERIOD. HOW HAS THE FUND BENEFITED FROM THIS TREND?
The restructuring story in Europe continues to have tremendous momentum, as
evidenced by this year's merger activity. European merger and acquisition
activity soared to over $1.2 trillion, more than double the 1998 total for
announced European activity, according to Thomson Financial Securities Data.
The fund benefited from this trend primarily through its holdings in the
telecommunications sector. After acquiring U.K.-based Orange, German
telecommunications giant Mannesmann A.G. itself became the target for
acquisition by Vodafone Airtouch PLC, also of the United Kingdom. Not only was
that deal the largest-ever cross-border transaction, it was also the
largest-ever merger-and-acquisition deal. The fund also profited when Germany's
Deutsche Telecom acquired U.K. mobile operator One to One.
It should be noted that the fund is not playing individual stocks for
takeover or merger, but rather focusing on the earnings winners.
WHAT SECTORS HAVE YOU FAVORED?
We continued to focus on growth stocks, with a bias towards the
telecommunications, media and technology sectors. However, our selection
process has led us to expand our horizons to include areas we believe will
experience rapid growth over the next few years. These areas include container
manufacturing (Sidel S.A.), bakeries (Kamps A.G.), vending machines for
recycling (Tomra Systems) and renewable energy sources (Vestas Wind Systems).
We believe the growth rates of these companies will dwarf the average growth
rates available in Europe.
The service sectors have clearly shown stronger growth over the last couple
of years than the industrial sectors. We believe this will continue as European
economies travel the same road the U.S. economy took in the 1990s, turning more
and more to technology and telecommunications for growth.
WHAT IS YOUR OUTLOOK FOR THE EUROPEAN MARKETS?
Expectations for positive economic growth, stronger corporate earnings and
improving consumer demand create a bright forecast for the European market. The
only cloud in Europe's sky may be higher short-term interest rates due to
strong economic growth, rising inflation forecasts and a beleaguered euro.
Our enthusiasm for Europe's best growth companies remains undiminished.
Conditions are changing quickly. The Internet and other forms of new technology
are lowering costs and providing better service. The consumer is becoming more
discerning and increasingly mobile, and companies and customers are demanding
better access to information, both at home and at work. Many companies in
Europe's rapidly growing technology and service sectors are responding to these
changes effectively. It is on those market leaders that we will set our sights.
Our fund begins the new millennium poised to capture the strong growth that
will be enjoyed by businesses embracing change in Europe and delivering
solutions to this fast-changing marketplace.
PORTFOLIO COMPOSITION
As of 12/31/99, based on total net assets TOTAL NUMBER OF HOLDINGS: 70
<TABLE>
<CAPTION>
==================================================================================================================================
TOP 10 EQUITY HOLDINGS TOP 10 INDUSTRIES
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
1. Nokia Oyj (Finland) 4.25% 1. Computers (Software & Services) 11.01%
2. Altran Technologies S.A. (France) 3.39 2. Communications Equipment 8.92
3. Mannesmann A.G. (Germany) 3.31 3. Telephone 8.83
4. Telefonica Publicidad e Informacion S.A. (Spain) 3.14 4. Telecommunications (Cellular & Wireless) 6.36
5. Intershop Communications A.G. (Germany) 3.12 5. Services (Commercial & Consumer) 6.24
6. EM TV Merchandising A.G. (Germany) 2.99 6. Machinery (Diversified) 4.80
7. Telefonaktiebolaget LM Ericsson (Sweden) 2.97 7. Retail (Food Chains) 3.71
8. Telefonica S.A. (Spain) 2.52 8. Broadcasting (Television, Radio & Cable) 3.67
9. ST Microelectronics (Netherlands) 2.41 9. Banks (Major Regional) 3.53
10. Dassault Systemes S.A. (France) 2.14 10. Telecommunications (Long Distance) 2.86
<CAPTION>
TOP 10 COUNTRIES
<S> <C>
1. Germany 21.55%
2. France 20.70
3. Netherlands 13.20
4. Spain 9.44
5. United Kingdom 6.96
6. Finland 6.91
7. Sweden 6.63
8. Italy 4.47
9. Ireland 1.80
10. Switzerland 1.24
The fund's portfolio is subject to change, and there is no assurance the fund
will continue to hold any particular security.
====================================================================================================================================
</TABLE>
See important fund and index disclosures inside front cover.
AIM EUROLAND GROWTH FUND
3
<PAGE> 6
ANNUAL REPORT / PERFORMANCE HISTORY
YOUR FUND'S LONG-TERM PERFORMANCE
RESULTS OF A $10,000 INVESTMENT
AIM EUROLAND GROWTH FUND VS. BENCHMARK INDEXES
7/19/85-12/31/99
in Thousands
===============================================================================
AIM Euroland MSCI MSCI
Growth Fund, EAFE Europe
Class A shares Index Index
- --------------------------------------------------------------------------------
7/19/85 9500
7/31/85 10000 10000
12/31/85 12892 12722.9 13356
12/31/86 18176 21557.7 19212.7
12/31/87 19371 27347.5 19098.8
12/31/88 21522 35070 23901
12/31/89 30282 36676.8 29560.4
12/31/90 25826 30104.5 29459
12/31/91 26943 32000.8 32227.9
12/31/92 23909 28714.9 30770.8
12/31/93 30680 41287.9 41737.1
12/31/94 28900 39454.2 40303.7
12/31/95 31748 45816.3 49727.2
12/31/96 37973 46694.7 59984.5
12/31/97 42225 51500.7 77143.9
12/31/98 49246 58922.1 94577
12/31/99 $66,550 $75,032 $110,319
Source: Lipper, Inc.
Past performance cannot guarantee comparable future results.
================================================================================
MARKET VOLATILITY CAN SIGNIFICANTLY AFFECT SHORT-TERM PERFORMANCE. RESULTS
OF AN INVESTMENT MADE TODAY MAY DIFFER SUBSTANTIALLY FROM THE HISTORICAL
PERFORMANCE SHOWN.
ABOUT THIS CHART
This chart compares the performance of your fund's Class A shares to benchmark
indexes over the period 7/19/85 - 12/31/99. It is intended to give you an idea
of how your fund performed compared to these benchmarks (data for the indexes'
performance figures are for the period 7/31/85-12/31/99). It is important to
understand the differences between your fund and these indexes. An index
measures the performance of a hypothetical portfolio. Market indexes such as
the MSCI Europe Index and the MSCI EAFE--Registered Trademark-- Index are not
managed, incurring no sales charges, expenses or fees. If you could buy all the
securities that make up a market index, you would incur expenses that would
affect your investment's return.
AVERAGE ANNUAL TOTAL RETURNS
As of 12/31/99, including sales charges
================================================================================
CLASS A SHARES
Inception (7/19/85) 14.01%
10 years 7.58
5 years 16.83
1 year 27.72*
* 35.14% excluding sales charges
CLASS B SHARES
Inception (4/1/93) 14.63%
5 years 17.17
1 year 29.19*
* 34.19% excluding CDSC
CLASS C SHARES
Inception (5/3/99) 38.95*
* 39.95% excluding CDSC. Cumulative total return that has not been annualized.
ADVISOR CLASS SHARES*
Inception (6/1/95) 19.65%
3 year 20.94
1 year 35.58
* Effective 3/1/99, Advisor Class shares were closed to new investors.
Effective 2/11/00, after the close of the fiscal year, Advisor Class shares
were converted to Class A shares.
================================================================================
Your fund's total return includes sales charges, expenses and management fees.
The performance of the fund's Class B, Class C and Advisor Class shares will
differ from Class A shares due to differing fees and expenses. For fund
performance calculations and descriptions of indexes cited on this page, please
see the inside front cover.
AIM EUROLAND GROWTH FUND
4
<PAGE> 7
ANNUAL REPORT / FOR CONSIDERATION
CHOOSE YOUR INVESTMENT PALETTE
[ARTWORK]
No two pieces of art are exactly alike. Just as an artist may use different
paints to create a piece, so does an investor use different kinds of
investments to create a portfolio. And as with art, tastes can change over
time--most investors have different goals at different stages in their lives,
as well as varying tolerance for risk. The biggest advantage mutual funds offer
is the potential for diversification. Providing funds with assorted objectives
and goals allows investors to shape their portfolios to their specific needs
and spread their risk over several different funds, rather than painting their
portfolios all one color.
GROWTH VS. INCOME
If you look at the list of AIM's retail mutual funds on the back of your fund
report, you'll notice that they are divided into different types. Two that
frequently appear are growth and income. Common stock is normally the growth
component of a mutual fund with growth as a primary or secondary objective.
Bonds are typically the income components of a mutual fund with income as a
primary or secondary objective.
Let's take a closer look at the categories into which AIM's retail mutual
funds are divided. Keep in mind that funds listed under the same category don't
necessarily have the same kind of investment strategy or portfolio, even if
they have the same objective.
DOMESTIC MUTUAL FUNDS
GROWTH FUNDS
Growth funds typically invest in common stocks of companies whose businesses
are growing. Growth companies tend to reinvest their profits toward expansion
of their potential to produce greater returns instead of paying dividends. So
growth mutual funds focus on generating capital gains--increasing the value of
the stocks they hold--rather than current income, which means they generally
don't pay regular income dividends. Growth funds usually do, however, make one
capital-gains distribution per year, when there are gains.
An increase over time in the value of a growth fund's portfolio means the
fund's value, or share price, increases over time also. Shareholders in a
growth fund, then, make money by selling their shares for more than they paid
for them. Of course, the opposite is also true--shareholders can lose money by
selling their shares for less than they paid for them. Growth funds usually
range from moderate to very aggressive, depending on the size and types of
companies in which they invest.
GROWTH AND INCOME FUNDS
A growth and income fund generally invests in common and preferred stocks and
bonds of older, more established companies that have a longer track record of
growth and paying dividends.
A typical growth and income mutual fund will pay quarterly or annual income
dividends to its shareholders. (Monthly dividends are not common.) In this way,
growth and income funds can potentially provide long-term growth of investments
and also current income. These funds tend to be more conservative than growth
funds.
INCOME FUNDS
Income funds are generally designed to provide high current income rather than
long-term growth. To that end, income funds usually invest chiefly in
interest-paying corporate and government bonds. They may also own stocks of
companies that pay regular dividends. Some income funds are more aggressive
than others. The aggressiveness of a particular fund depends not only on the
kinds of securities in which it invests, but also on the fund's sector
allocation and maturity structure.
[ARTWORK]
AIM EUROLAND GROWTH FUND
5
<PAGE> 8
ANNUAL REPORT / FOR CONSIDERATION
For example, Treasury securities are considered a relatively safe
investment because they are guaranteed by the U.S. government. However, lower
risk also means lower return potential. On the other hand, lower-rated
corporate bonds, often called junk bonds, involve more risk because they are
not guaranteed--they are only as good as the companies that issue them. But the
added risk also means higher return potential.
Income funds are considered more conservative and are suited for investors
seeking income rather than growth.
TAX-FREE INCOME OR MUNICIPAL FUNDS
These funds provide shareholders with current income that is tax-exempt at some
level, depending on the securities in which they invest. So municipal mutual
funds appeal to investors who are looking to reduce income that would otherwise
be subject to tax. Municipal bonds or notes, which are issued by state or local
governments, are generally exempt from federal taxes. Federal securities, like
Treasury bonds, are usually exempt from state taxes. And then there are some
securities that are exempt from both federal and state taxes.(1)
MONEY MARKET FUNDS
A money market fund is one of the safest types of mutual funds available
because its main goal is preserving your investment while paying current income
in the form of interest. As a result, these funds tend to appeal to investors
looking for safety, liquidity and some income from their investment. Money
market funds invest in high-quality, short-term securities such as commercial
paper and U.S. government agency securities. Although money market funds are
not guaranteed or insured by the U.S. government, the securities they hold are
less risky than other types of fixed-income securities. The trade-off for
safety of principal investment is a lower rate of return.(2)
INTERNATIONAL AND GLOBAL MUTUAL FUNDS
INTERNATIONAL GROWTH FUNDS
An international growth fund has the same objective as a domestic growth fund,
except it invests in stocks of companies located outside the United States.
Like their domestic counterparts, international growth funds tend to pay
distributions in the form of capital gains rather than dividends. An
international growth mutual fund might invest in a particular country, region
or continent depending on the investment strategy shown in its prospectus.
International funds carry different risks than domestic funds because most
foreign markets are not as established as the markets in the United States.
Other risks include changes in the value of the U.S. dollar compared to foreign
currencies, accounting differences, political risks and foreign regulatory
differences.
GLOBAL GROWTH, GLOBAL GROWTH AND INCOME, AND GLOBAL INCOME FUNDS
These funds are similar to their domestic equivalents in terms of their goals
and the income distributions they pay. Global funds are comparable to
international funds in that they can invest in stocks of companies outside the
United States. But global funds can also invest substantially in U.S. stocks;
international funds generally do not. The amount of a global fund's portfolio
that can be invested in the United States varies greatly from fund to fund,
according to a fund's prospectus. Global funds carry the same risks as
international funds.
SPECIALIZED FUNDS
THEME FUNDS
Theme or sector funds invest primarily in a particular industry or sector of
the economy, either domestically or globally. Theme funds are required by
prospectus to invest a certain percentage of their assets in their industry or
sector of choice under normal market conditions. As a result, theme funds
present greater risk and potential reward than more diversified funds. The
types of securities held by a theme fund determine its goal of growth and/or
income.
TYPES OF FUND DISTRIBUTIONS
INCOME DIVIDENDS are paid from dividends and/or interest from securities in a
fund's portfolio. For example, if a company in which a mutual fund owns stock
distributes some of its earnings to its shareholders as a dividend, the fund
passes on those earnings to its own shareholders. Income dividends are usually
taxed as ordinary income.
CAPITAL GAINS represent the net profit realized from the growth in value of the
holdings in a fund's portfolio. These distributions are usually made once per
year. There are two types of capital gains:
o Short-term capital gains are paid from net profits gained when a mutual fund
sells stocks or bonds it has held for less than a year. Short-term capital
gains are taxed as ordinary income.
o Long-term capital gains are paid from net profits gained when a mutual fund
sells stocks or bonds it has held for more than a year. Long-term capital gains
are usually taxed at the capital-gains rate, which is typically lower than
ordinary income-tax rates.
(1) Investors in tax-free income funds still have a risk of incurring taxes on
capital-gains distributions, for example, so it's wise to see your tax advisor
before investing in such funds.
(2) There is no guarantee that a money market fund will be able to maintain a
stable net asset value of $1.00 per share.
See the back cover for a complete list of AIM's retail mutual funds. For more
information about your fund's objective, read your fund prospectus. For more
complete information about any AIM fund(s), including sales charges and
expenses, ask your financial advisor or securities dealer for a free
prospectus(es). Please read the prospectus(es) carefully before you invest or
send money.
AIM EUROLAND GROWTH FUND
6
<PAGE> 9
SCHEDULE OF INVESTMENTS
December 31, 1999
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
FOREIGN STOCKS & OTHER EQUITY
INTERESTS-95.56%
BELGIUM-0.71%
Mobistar S.A.
(Telecommunications-Cellular/
Wireless)(a) 66,688 $ 3,815,666
- --------------------------------------------------------------
DENMARK-0.69%
Vestas Wind Systems A/S
(Manufacturing- Specialized)(a) 21,000 3,719,830
- --------------------------------------------------------------
FINLAND-6.91%
Helsingin Puhelin Oyj (Helsinki
Telephone Corp.-HPY)
(Telecommunications-Cellular/
Wireless) 132,600 11,036,751
- --------------------------------------------------------------
Nokia Oyj (Communications Equipment) 127,064 23,019,041
- --------------------------------------------------------------
Tietoenator Oyj (Computers-Software
& Services) 53,328 3,327,662
- --------------------------------------------------------------
37,383,454
- --------------------------------------------------------------
FRANCE-20.70%
Altran Technologies S.A.
(Services-Commercial & Consumer) 30,384 18,347,986
- --------------------------------------------------------------
AXA (Insurance-Multi-Line) 47,862 6,666,826
- --------------------------------------------------------------
Banque Nationale de Paris
(Banks-Major Regional) 75,000 6,914,311
- --------------------------------------------------------------
Canal Plus (Broadcasting-Television,
Radio & Cable) 25,000 3,635,801
- --------------------------------------------------------------
Cap Gemini S.A. (Computers-Software
& Services) 35,000 8,876,889
- --------------------------------------------------------------
Carrefour S.A. (Retail-Food Chains) 62,000 11,425,422
- --------------------------------------------------------------
Compagnie de Saint-Gobain
(Manufacturing- Diversified)(a) 22,000 4,133,893
- --------------------------------------------------------------
Dassault Systemes S.A.
(Computers-Software & Services) 177,694 11,570,956
- --------------------------------------------------------------
France Telecom S.A. (Telephone) 45,000 5,946,610
- --------------------------------------------------------------
L'Oreal S.A. (Personal Care) 6,500 5,210,643
- --------------------------------------------------------------
Lagardere S.C.A.
(Manufacturing-Diversified) 50,000 2,717,415
- --------------------------------------------------------------
Pinault-Printemps-Redoute S.A.
(Retail-General Merchandise) 17,100 4,509,097
- --------------------------------------------------------------
Sanofi-Synthelabo S.A. (Health
Care-Drugs- Generic & Other) 70,000 2,912,465
- --------------------------------------------------------------
Sidel S.A. (Machinery-Diversified) 78,500 8,098,148
- --------------------------------------------------------------
Total Fina S.A.-Class B (Oil &
Gas-Refining & Marketing) 83,074 11,078,302
- --------------------------------------------------------------
112,044,764
- --------------------------------------------------------------
GERMANY-21.55%
Aixtron A.G.
(Equipment-Semiconductor)(a) 45,000 6,331,577
- --------------------------------------------------------------
Bayerisch Motoren Werke A.G.
(Automobiles) 200,000 6,099,087
- --------------------------------------------------------------
Consors Discount Broker A.G.
(Investment Banking & Brokerage)(a) 30,000 2,506,060
- --------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
GERMANY-(CONTINUED)
D. Logistics A.G.
(Services-Commercial & Consumer)(a) 25,000 $ 2,629,351
- --------------------------------------------------------------
Deutsche Telekom A.G. (Telephone)(a) 95,000 6,759,821
- --------------------------------------------------------------
EM.TV & Merchandising A.G.
(Broadcasting- Television, Radio &
Cable) 251,575 16,204,650
- --------------------------------------------------------------
Epcos A.G. (Electronics-Component
Distributors)(a) 20,800 1,559,595
- --------------------------------------------------------------
Intershop Communications A.G.
(Computers- Software & Services)(a) 60,000 16,908,360
- --------------------------------------------------------------
Kamps A.G. (Retail-Food Chains) 127,200 8,648,163
- --------------------------------------------------------------
Mannesmann A.G.
(Machinery-Diversified) 74,250 17,897,575
- --------------------------------------------------------------
Marschollek, Lautenschlaegerund
Partner A.G. (Services-Commercial
& Consumer) 25,000 7,548,375
- --------------------------------------------------------------
Medion A.G. (Electronics-Component
Distributors) 92,000 8,240,813
- --------------------------------------------------------------
Porsche A.G.-Pfd. (Automobiles) 2,841 7,777,363
- --------------------------------------------------------------
SAP A.G.-Pfd. (Computers-Software &
Services) 10,000 6,018,571
- --------------------------------------------------------------
Software A.G. (Computers-Software &
Services)(a) 25,000 1,522,256
- --------------------------------------------------------------
116,651,617
- --------------------------------------------------------------
IRELAND-1.80%
Esat Telecom Group PLC-ADR
(Telecommunications-Long
Distance)(a) 106,600 9,753,900
- --------------------------------------------------------------
ITALY-4.47%
Banca Fideuram S.p.A. (Investment
Management) 300,000 3,550,756
- --------------------------------------------------------------
Mediolanum S.p.A.
(Insurance-Life/Health) 725,230 9,488,800
- --------------------------------------------------------------
Telecom Italia Mobile S.p.A.
(Telecommunications-Cellular/Wireless) 1,000,000 11,161,530
- --------------------------------------------------------------
24,201,086
- --------------------------------------------------------------
NETHERLANDS-13.20%
ABN AMRO Holding N.V. (Banks-Major
Regional) 300,000 7,487,988
- --------------------------------------------------------------
Equant N.V. (Computers-Software &
Services)(a) 98,138 11,131,491
- --------------------------------------------------------------
ING Groep N.V.-ADR (Insurance
Brokers) 96,578 5,826,224
- --------------------------------------------------------------
Koninklijke Numico N.V. (Foods) 129,000 4,808,979
- --------------------------------------------------------------
Koninklijke (Royal) Philips
Electronics N.V. (Electrical
Equipment) 85,000 11,549,014
- --------------------------------------------------------------
KPNQWest N.V.
(Telecommunications-Long
Distance)(a) 85,813 5,708,825
- --------------------------------------------------------------
Royal Dutch Petroleum Co.-New York
Shares (Oil-International
Integrated) 110,000 6,736,673
- --------------------------------------------------------------
STMicroelectronics (Electronics-
Semiconductors)(a) 85,000 13,071,773
- --------------------------------------------------------------
</TABLE>
7
<PAGE> 10
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
NETHERLANDS-(CONTINUED)
Teleplan International N.V.
(Electronics- Component
Distributors)(a) 25,000 $ 5,132,895
- --------------------------------------------------------------
71,453,862
- --------------------------------------------------------------
NORWAY-0.42%
Tomra Systems A.S.A. (Manufacturing-
Specialized) 135,400 2,297,779
- --------------------------------------------------------------
PORTUGAL-0.84%
BPI-SGPS, S.A. (Banks-Regional) 1,072,810 4,567,256
- --------------------------------------------------------------
SPAIN-9.44%
Banco Santander Central Hispano S.A.
(Banks- Regional) 400,000 4,524,999
- --------------------------------------------------------------
Cortefiel S.A. (Retail-Department
Stores) 75,000 1,962,577
- --------------------------------------------------------------
Sogecable, S.A. (Electric
Companies)(a) 162,650 10,378,522
- --------------------------------------------------------------
Telefonica Publicidad e Informacion
S.A. (Telephone)(a) 350,000 16,996,424
- --------------------------------------------------------------
Telefonica S.A. (Telephone)(a) 546,743 13,646,683
- --------------------------------------------------------------
TelePizza, S.A. (Restaurants)(a) 800,000 3,381,672
- --------------------------------------------------------------
Terra Networks, S.A.
(Computers-Software & Services)(a) 4,259 232,541
- --------------------------------------------------------------
51,123,418
- --------------------------------------------------------------
SWEDEN-6.63%
Assa Abloy A.B.-Class B (Metal
Fabricators) 360,000 5,055,407
- --------------------------------------------------------------
Securitas A.B.-Class B
(Services-Commercial &
Consumer)(a) 290,000 5,248,129
- --------------------------------------------------------------
Skandia Forsakrings A.B. (Insurance
Brokers) 314,494 9,497,980
- --------------------------------------------------------------
Telefonaktiebolaget LM
Ericsson-Class B (Communications
Equipment) 250,000 16,069,897
- --------------------------------------------------------------
35,871,413
- --------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
SWITZERLAND-1.24%
Roche Holding A.G. (Health
Care-Drugs-Generic & Other) 565 $ 6,706,337
- --------------------------------------------------------------
UNITED KINGDOM-6.96%
COLT Telecom Group PLC
(Communications Equipment)(a) 180,000 9,210,572
- --------------------------------------------------------------
Energis PLC (Telephone)(a) 92,600 4,446,761
- --------------------------------------------------------------
Glaxo Wellcome PLC (Health
Care-Drugs- Generic & Other) 171,436 4,844,310
- --------------------------------------------------------------
Lloyds TSB Group PLC (Banks-Major
Regional) 375,860 4,700,449
- --------------------------------------------------------------
SmithKline Beecham PLC (Health Care-
Diversified) 333,272 4,251,261
- --------------------------------------------------------------
Unilever PLC (Foods) 246,428 1,812,468
- --------------------------------------------------------------
Vodafone AirTouch PLC
(Telecommunications-
Cellular/Wireless) 1,700,000 8,420,257
- --------------------------------------------------------------
37,686,078
- --------------------------------------------------------------
Total Foreign Stocks & Other
Equity Interests (Cost
$321,219,874) 517,276,460
- --------------------------------------------------------------
MONEY MARKET FUNDS-2.14%
STIC Liquid Assets Portfolio(b) 5,782,086 5,782,086
- --------------------------------------------------------------
STIC Prime Portfolio(b) 5,782,086 5,782,086
- --------------------------------------------------------------
Total Money Market Funds (Cost
$11,564,172) 11,564,172
- --------------------------------------------------------------
TOTAL INVESTMENTS-97.70% (Cost
$332,784,046) 528,840,632
- --------------------------------------------------------------
OTHER ASSETS LESS LIABILITIES-2.30% 12,467,560
- --------------------------------------------------------------
NET ASSETS-100.00% $541,308,192
==============================================================
</TABLE>
Investment Abbreviations:
ADR - American Depositary Receipt
Pfd. - Preferred
NOTES TO SCHEDULE OF INVESTMENTS:
(a) Non-income producing security.
(b) The money market fund has the same investment advisor as the Fund.
See Notes to Financial Statements.
8
<PAGE> 11
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1999
<TABLE>
<S> <C>
ASSETS:
Investments, at market value (cost
$332,784,046) $528,840,632
- ---------------------------------------------------------
Foreign currencies, at value (cost
$13,935,899) 13,840,250
- ---------------------------------------------------------
Receivables for:
Fund shares sold 199,135
- ---------------------------------------------------------
Dividends and interest 164,422
- ---------------------------------------------------------
Tax reclaims 463,935
- ---------------------------------------------------------
Other assets 58,576
- ---------------------------------------------------------
Total assets 543,566,950
- ---------------------------------------------------------
LIABILITIES:
Payable for fund shares reacquired 1,037,528
- ---------------------------------------------------------
Accrued advisory fees 425,660
- ---------------------------------------------------------
Accrued distribution fees 437,305
- ---------------------------------------------------------
Accrued accounting service fees 9,805
- ---------------------------------------------------------
Accrued trustee fees 4,646
- ---------------------------------------------------------
Accrued transfer agent fees 121,792
- ---------------------------------------------------------
Accrued operating expenses 222,022
- ---------------------------------------------------------
Total liabilities 2,258,758
- ---------------------------------------------------------
Net assets applicable to shares outstanding $541,308,192
=========================================================
NET ASSETS:
Class A $446,064,530
=========================================================
Class B $ 93,404,422
=========================================================
Class C $ 348,704
=========================================================
Advisor Class $ 1,490,536
=========================================================
SHARES OUTSTANDING, $0.01 PAR VALUE PER
SHARE:
Class A 22,717,321
=========================================================
Class B 4,933,523
=========================================================
Class C 18,407
=========================================================
Advisor Class 74,891
=========================================================
Class A:
Net asset value price per share $ 19.64
- ---------------------------------------------------------
Offering price per share:
(Net asset value of $19.64 divided by
94.50%) $ 20.78
=========================================================
Class B:
Net asset value and offering price per
share $ 18.93
=========================================================
Class C:
Net asset value and offering price per
share $ 18.94
=========================================================
Advisor Class:
Net asset value and offering price per
share $ 19.90
=========================================================
</TABLE>
STATEMENT OF OPERATIONS
For the year ended December 31, 1999
<TABLE>
<S> <C>
INVESTMENT INCOME:
Dividends (net of $655,833 foreign
withholding tax) $ 5,046,150
- ---------------------------------------------------------
Interest 657,197
- ---------------------------------------------------------
Security lending income 237,633
- ---------------------------------------------------------
Total investment income 5,940,980
- ---------------------------------------------------------
EXPENSES:
Advisory and administrative fees 4,507,101
- ---------------------------------------------------------
Accounting service fees 128,346
- ---------------------------------------------------------
Custodian fees 412,031
- ---------------------------------------------------------
Interest expense 26,850
- ---------------------------------------------------------
Trustees fees 28,882
- ---------------------------------------------------------
Distribution fees -- Class A 1,321,561
- ---------------------------------------------------------
Distribution fees -- Class B 830,901
- ---------------------------------------------------------
Distribution fees -- Class C 1,122
- ---------------------------------------------------------
Transfer agent fees 1,267,517
- ---------------------------------------------------------
Other 481,593
- ---------------------------------------------------------
Total expenses 9,005,904
- ---------------------------------------------------------
Less: Expenses paid indirectly and expense
reductions (28,750)
- ---------------------------------------------------------
Net expenses 8,977,154
- ---------------------------------------------------------
Net investment income (loss) (3,036,174)
- ---------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) FROM
INVESTMENT SECURITIES AND FOREIGN
CURRENCIES:
Net realized gain (loss) from:
Investment securities 20,314,072
- ---------------------------------------------------------
Foreign currencies (1,472,708)
- ---------------------------------------------------------
18,841,364
- ---------------------------------------------------------
Change in net unrealized appreciation
(depreciation) of:
Investment securities 130,523,281
- ---------------------------------------------------------
Foreign currencies (131,749)
- ---------------------------------------------------------
130,391,532
- ---------------------------------------------------------
Net gain from investment securities and
foreign currencies 149,232,896
- ---------------------------------------------------------
Net increase in net assets resulting from
operations $146,196,722
=========================================================
</TABLE>
See Notes to Financial Statements.
9
<PAGE> 12
STATEMENT OF CHANGES IN NET ASSETS
For the years ended December 31, 1999 and 1998
<TABLE>
<CAPTION>
1999 1998
------------ ------------
<S> <C> <C>
OPERATIONS:
Net investment income (loss) $ (3,036,174) $ (1,850,722)
- --------------------------------------------------------------------------------------------
Net realized gain from investment securities and foreign
currencies 18,841,364 119,057,197
- --------------------------------------------------------------------------------------------
Change in net unrealized appreciation of investment
securities and foreign currencies 130,391,532 6,407,261
- --------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 146,196,722 123,613,736
- --------------------------------------------------------------------------------------------
Distributions to shareholders from net realized gains on
investment securities:
Class A (29,255,944) (28,578,354)
- --------------------------------------------------------------------------------------------
Class B (6,401,190) (6,161,419)
- --------------------------------------------------------------------------------------------
Class C (19,795) --
- --------------------------------------------------------------------------------------------
Advisor Class (98,058) (89,449)
- --------------------------------------------------------------------------------------------
Share transactions-net:
Class A (61,483,581) (70,039,206)
- --------------------------------------------------------------------------------------------
Class B (23,714,961) 9,973,443
- --------------------------------------------------------------------------------------------
Class C 236,516 --
- --------------------------------------------------------------------------------------------
Advisor Class (803,689) (3,320,390)
- --------------------------------------------------------------------------------------------
Net increase in net assets 24,656,020 25,398,361
- --------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 516,652,172 491,253,811
- --------------------------------------------------------------------------------------------
End of period $541,308,192 $516,652,172
============================================================================================
NET ASSETS CONSIST OF:
Shares of beneficial interest $333,700,808 $364,202,132
- --------------------------------------------------------------------------------------------
Undistributed net realized gain from investment securities
and foreign currencies 11,671,019 86,905,207
- --------------------------------------------------------------------------------------------
Unrealized appreciation of investment securities and
foreign currencies 195,936,365 65,544,833
- --------------------------------------------------------------------------------------------
$541,308,192 $516,652,172
============================================================================================
</TABLE>
See Notes to Financial Statements.
10
<PAGE> 13
NOTES TO FINANCIAL STATEMENTS
December 31, 1999
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES
AIM Euroland Growth Fund (the "Fund"), formerly named AIM Europe Growth Fund, is
a separate series of AIM Growth Series (the "Trust"). The Trust is organized as
a Delaware business trust and is registered under the Investment Company Act of
1940, as amended (the "1940 Act"), as an open-end series management investment
company consisting of six separate series portfolios, each having an unlimited
number of shares of beneficial interest. The Fund consists of four different
classes of shares: Class A shares, Class B shares, Class C shares and Advisor
Class shares. Class A shares are sold with a front-end sales charge. Class B
shares and Class C shares are sold with a contingent deferred sales charge.
Advisor Class shares are sold without a sales charge. Effective March 1, 1999,
the Fund discontinued sales of the Advisor Class to new investors. Matters
affecting each portfolio or class will be voted on exclusively by the
shareholders of such portfolio or class. The assets, liabilities and operations
of each portfolio are accounted for separately. Information presented in these
financial statements pertains only to the Fund. The Fund's investment objective
is growth of capital.
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenses during
the reporting period. Actual results could differ from those estimates. The
following is a summary of the significant accounting policies followed by the
Fund in the preparation of its financial statements.
A. Security Valuations -- A security listed or traded on an exchange (except
convertible bonds) is valued at its last sales price on the exchange where
the security is principally traded, or lacking any sales on a particular day,
the security is valued at the closing bid price on that day. Each security
reported on the NASDAQ National Market System is valued at the last sales
price on the valuation date or absent a last sales price, at the closing bid
price. Debt obligations (including convertible bonds) are valued on the basis
of prices provided by an independent pricing service. Prices provided by the
pricing service may be determined without exclusive reliance on quoted
prices, and may reflect appropriate factors such as yield, type of issue,
coupon rate and maturity date. Securities for which market prices are not
provided by any of the above methods are valued based upon quotes furnished
by independent sources and are valued at the last bid price in the case of
equity securities and in the case of debt obligations, the mean between the
last bid and asked prices. Securities for which market quotations are not
readily available or are questionable are valued at fair value as determined
in good faith by or under the supervision of the Trust's officers in a manner
specifically authorized by the Board of Trustees. Short-term obligations
having 60 days or less to maturity are valued at amortized cost which
approximates market value. For purposes of determining net asset value per
share, futures and option contracts generally will be valued 15 minutes after
the close of trading of the New York Stock Exchange ("NYSE").
Generally, trading in foreign securities is substantially completed each day
at various times prior to the close of the NYSE. The values of such
securities used in computing the net asset value of the Fund's shares are
determined as of such times. Foreign currency exchange rates are also
generally determined prior to the close of the NYSE. Occasionally, events
affecting the values of such securities and such exchange rates may occur
between the times at which they are determined and the close of the NYSE
which would not be reflected in the computation of the Fund's net asset
value. If events materially affecting the value of such securities occur
during such period, then these securities will be valued at their fair value
as determined in good faith by or under the supervision of the Board of
Trustees.
B. Securities Transactions and Investment Income -- Securities transactions are
accounted for on a trade date basis. Realized gains or losses on sales are
computed on the basis of specific identification of the securities sold.
Interest income is recorded as earned from settlement date and is recorded on
the accrual basis. Dividend income is recorded on the ex-dividend date. On
December 31, 1999, undistributed net investment income was increased by
$3,036,174, undistributed net realized gains decreased by $58,300,565 and
paid-in capital increased by $55,264,391 as a result of differing book/tax
treatment of foreign currency transactions and other reclassifications. Net
assets of the Fund were unaffected by the reclassifications.
C. Distributions -- Distributions from income and net realized capital gains, if
any, are generally paid annually and recorded on ex-dividend date. The Fund
may elect to use a portion of the proceeds of fund share redemptions as
distributions for federal income tax purposes.
D. Federal Income Taxes -- The Fund intends to comply with the requirements of
the Internal Revenue Code necessary to qualify as a regulated investment
company and, as such, will not be subject to federal income taxes on
otherwise taxable income (including net realized capital gains) which is
distributed to shareholders. Therefore, no provision for federal income taxes
is recorded in the financial statements.
E. Foreign Currency Translations -- Portfolio securities and other assets and
liabilities denominated in foreign currencies are translated into U.S. dollar
amounts at date of valuation. Purchases and sales of portfolio securities and
income items denominated in foreign currencies are translated into U.S.
dollar amounts on the respective dates of such transactions. The Fund does
not separately account for that portion of the results of operations
resulting from changes in foreign exchange rates on investments and the
fluctuations arising from changes in market prices of securities held. Such
11
<PAGE> 14
fluctuations are included with the net realized and unrealized gain or loss
from investments.
F. Foreign Currency Contracts -- A foreign currency contract is an obligation to
purchase or sell a specific currency for an agreed-upon price at a future
date. The Fund may enter into a foreign currency contract to attempt to
minimize the risk to the Fund from adverse changes in the relationship
between currencies. The Fund may also enter into a foreign currency contract
for the purchase or sale of a security denominated in a foreign currency in
order to "lock in" the U.S. dollar price of that security. The Fund could be
exposed to risk if counterparties to the contracts are unable to meet the
terms of their contracts or if the value of the foreign currency changes
unfavorably.
G. Expenses -- Distribution expenses directly attributable to a class of shares
are charged to that class' operations. All other expenses which are
attributable to more than one class are allocated among the classes.
NOTE 2-ADVISORY FEES AND OTHER TRANSACTIONS WITH AFFILIATES
A I M Advisors, Inc. ("AIM") is the Fund's investment manager and administrator.
INVESCO Asset Management Limited is the Fund's sub-advisor and
sub-administrator. The Fund pays AIM investment management and administration
fees at an annual rate of 0.975% on the first $500 million of the Fund's average
daily net assets, plus 0.95% on the next $500 million of the Fund's average
daily net assets, plus 0.925% on the next $500 million of the Fund's average
daily net assets, plus 0.90% on the Fund's average daily net assets exceeding
$1.5 billion. AIM has contractually agreed to limit the Fund's expenses
(exclusive of brokerage commissions, taxes, interest and extraordinary expenses)
to the maximum annual rate of 2.00%, 2.65%, 2.65% and 1.65% of the average daily
net assets of the Fund's Class A, Class B, Class C and Advisor Class shares,
respectively.
Effective July 1, 1999, the Trust entered into a master administrative
services agreement with AIM, replacing the prior pricing and accounting
agreement. The Fund, pursuant to the master administrative services agreement
with AIM, has agreed to pay AIM for certain administrative costs incurred in
providing accounting services to the Fund. Prior to July 1, 1999, AIM was the
pricing and accounting agent for the Fund. The monthly fee for these services
paid to AIM was a percentage, not to exceed 0.03% annually, of a Fund's average
daily net assets. The annual fee rate was derived based on the aggregate net
assets of the funds which comprised the following investment companies: AIM
Growth Series, AIM Investment Funds, AIM Series Trust, G.T. Global Variable
Investment Series and G.T. Global Variable Investment Trust. The fee was
calculated at the rate of 0.03% of the first $5 billion of assets and 0.02% to
the assets in excess of $5 billion. An amount is allocated to and paid by each
such fund based on its relative average daily net assets. For the year ended
December 31, 1999, AIM was paid $128,346 for such services.
The Fund, pursuant to a transfer agency and service agreement, has agreed to
pay A I M Fund Services, Inc. ("AFS") a fee for providing transfer agency and
shareholder services to the Fund. For the year ended December 31, 1999, AFS was
paid $1,017,499 for such services.
The Trust has entered into master distribution agreements with A I M
Distributors, Inc. ("AIM Distributors") to serve as the distributor for the
shares of the Fund. The Trust has adopted plans pursuant to Rule 12b-1 under the
1940 Act with respect to the Fund's Class A shares, Class B shares and Class C
shares (collectively, the "Plans"). The Fund, pursuant to the Plans, pays AIM
Distributors compensation at the annual rate of 0.35% of the Fund's average
daily net assets of Class A shares and 1.00% of the average daily net assets of
Class B and C shares. Of these amounts, the Fund may pay a service fee of 0.25%
of the average daily net assets of the Class A, Class B or Class C shares to
selected dealers and financial institutions who furnish continuing personal
shareholder services to their customers who purchase and own the appropriate
class of shares of the Fund. Any amounts not paid as a service fee under the
Plans would constitute an asset-based sales charge. The Plans also impose a cap
on the total sales charges, including asset-based sales charges that may be paid
by the respective classes. For the year ended December 31, 1999, the Class A,
Class B and Class C shares paid AIM Distributors $1,321,561, $830,901 and
$1,122, respectively, as compensation under the Plans.
AIM Distributors received commissions of $32,554 from sales of the Class A
shares of the Fund during the year ended December 31, 1999. Such commissions are
not an expense of the Fund. They are deducted from, and are not included in, the
proceeds from sales of Class A shares. During the year ended December 31, 1999,
AIM Distributors received $7,813 in contingent deferred sales charges imposed on
redemptions of Fund shares.
Certain officers and trustees of the Trust are officers and directors of AIM,
AFS and AIM Distributors.
NOTE 3-EXPENSE REDUCTIONS
During the year ended December 31, 1999, the Fund received reductions in
custodian fees of $3,766 under an expense offset arrangement and AIM directed
certain portfolio trades to brokers who then paid $24,984 of the Fund's
expenses. The effect of the above arrangements resulted in a reduction of the
Fund's total expenses of $28,750 during the year ended December 31, 1999.
NOTE 4-BANK BORROWINGS
The Fund is a participant in a committed line of credit facility with a
syndicate administered by The Chase Manhattan Bank. The Fund may borrow up to
the lesser of (i) $1,000,000,000 or (ii) the limits set by its prospectus for
borrowings. The Fund and other funds advised by AIM which are parties to the
line of credit may borrow on a first come, first served basis. The funds which
are party to the line of credit are charged a commitment fee of 0.09% on the
unused balance of the committed line. The commitment fee is allocated among the
funds based on their respective average net assets for the period. Prior to May
28, 1999, the Fund, along with certain other funds advised and/or administered
by AIM, had a line of credit with BankBoston and State Street Bank & Trust
Company. The arrangements with the banks allowed the Fund and certain
12
<PAGE> 15
other funds to borrow, on a first come, first served basis, an aggregate maximum
amount of $250,000,000.
During the year ended December 31, 1999, the average outstanding daily balance
of bank loans for the Fund was $475,310 with a weighted average interest rate of
5.65%. Interest expense for the Fund for the year ended December 31, 1999 was
$26,850.
NOTE 5-PORTFOLIO SECURITIES LOANED
At December 31, 1999, there were no securities on loans to brokers. For the year
ended December 31, 1999, the Fund received fees of $237,633 for securities
lending.
For international securities, cash collateral is received by the fund against
loaned securities in an amount at least equal to 105% of the market value of the
loaned securities at the inception of each loan. The collateral must be
maintained at not less than 103% of the market value of the loaned securities
during the period of the loan. For domestic securities, cash collateral is
received by the Fund against loaned securities in the amount at least equal to
102% of the market value of the loaned securities at the inception of each loan.
This collateral must be maintained at not less than 100% of the market value of
the loaned securities during the period of the loan. The cash collateral is
invested in a securities lending trust which consists of a portfolio of high
quality short duration securities whose average effective duration is restricted
to 120 days or less.
NOTE 6-INVESTMENT SECURITIES
The aggregate amount of investment securities (other than short-term securities)
purchased and sold by the Fund during the year ended December 31, 1999 was
$321,428,205 and $462,423,448, respectively.
The amount of unrealized appreciation (depreciation) of investment securities,
for tax purposes, as of December 31, 1999 was as follows:
<TABLE>
<S> <C>
Aggregate unrealized appreciation of
investment securities $201,600,088
- ---------------------------------------------------------
Aggregate unrealized (depreciation) of
investment securities (7,834,850)
- ---------------------------------------------------------
Net unrealized appreciation of investment
securities $193,765,238
=========================================================
</TABLE>
Cost of investments for tax purposes is $335,075,394.
NOTE 7-SHARE INFORMATION
Changes in shares outstanding during the years ended December 31, 1999 and 1998
were as follows:
<TABLE>
<CAPTION>
1999 1998
--------------------------- ------------------------------
SHARES AMOUNT SHARES AMOUNT
----------- ------------- ------------ ---------------
<S> <C> <C> <C> <C>
Sold:
Class A 56,134,804 $ 892,147,655 284,179,353 $ 4,678,178,730
- --------------------------------------------------------------------------------------------------------------------------
Class B 4,085,662 62,498,150 29,683,015 488,430,227
- --------------------------------------------------------------------------------------------------------------------------
Class C* 185,264 2,804,901 -- --
- --------------------------------------------------------------------------------------------------------------------------
Advisor Class 741,800 12,185,965 6,484,352 109,346,851
- --------------------------------------------------------------------------------------------------------------------------
Issued as reinvestment of dividends:
Class A 1,493,014 26,287,494 1,565,424 23,371,501
- --------------------------------------------------------------------------------------------------------------------------
Class B 336,013 5,718,720 370,423 5,382,231
- --------------------------------------------------------------------------------------------------------------------------
Class C* 947 16,127 -- --
- --------------------------------------------------------------------------------------------------------------------------
Advisor Class 5,368 95,985 5,605 84,332
- --------------------------------------------------------------------------------------------------------------------------
Reacquired:
Class A (61,395,542) (979,918,730) (287,680,343) (4,771,589,437)
- --------------------------------------------------------------------------------------------------------------------------
Class B (6,039,505) (91,931,831) (29,265,734) (483,839,015)
- --------------------------------------------------------------------------------------------------------------------------
Class C* (167,804) (2,584,512) -- --
- --------------------------------------------------------------------------------------------------------------------------
Advisor Class (776,145) (13,085,639) (6,610,936) (112,751,573)
- --------------------------------------------------------------------------------------------------------------------------
(5,396,124) $ (85,765,715) (1,268,841) $ (63,386,153)
==========================================================================================================================
</TABLE>
* Class C shares commenced sales on May 3, 1999.
13
<PAGE> 16
NOTE 8-FINANCIAL HIGHLIGHTS
Shown below are the financial highlights for a share of Class A and Class B
outstanding during each of the years in the five-year period ended December 31,
1999, for a share of Class C outstanding during May 3, 1999 (date sales
commenced) through December 31, 1999 and for a share of Advisor Class
outstanding during each of the years in the four-year period ended December 31,
1999 and the period June 1, 1995 (date operations commenced) through December
31, 1995.
<TABLE>
<CAPTION>
Class A
-------------------------------------------------------
1999(a) 1998(a) 1997(a) 1996(a) 1995(a)
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 15.67 $ 14.32 $ 12.89 $ 10.88 $ 10.03
- ------------------------------------------------------------ -------- -------- -------- -------- --------
Income from investment operations:
Net investment income (loss) (0.09) (0.03) (0.04) (0.03) 0.04
- ------------------------------------------------------------ -------- -------- -------- -------- --------
Net realized and unrealized gain on investments 5.45 2.35 1.48 2.16 0.95
- ------------------------------------------------------------ -------- -------- -------- -------- --------
Net increase from investment operations 5.36 2.32 1.44 2.13 0.99
- ------------------------------------------------------------ -------- -------- -------- -------- --------
Distributions to shareholders:
From net investment income -- -- -- -- (0.10)
- ------------------------------------------------------------ -------- -------- -------- -------- --------
From net realized gains (1.39) (0.97) (0.01) (0.12) (0.04)
- ------------------------------------------------------------ -------- -------- -------- -------- --------
Total distributions (1.39) (0.97) (0.01) (0.12) (0.14)
- ------------------------------------------------------------ -------- -------- -------- -------- --------
Net asset value, end of period $ 19.64 $ 15.67 $ 14.32 $ 12.89 $ 10.88
============================================================ ======== ======== ======== ======== ========
Total return(b) 35.22% 16.63% 11.20% 19.61% 9.86%
============================================================ ======== ======== ======== ======== ========
Ratios and supplemental data:
Net assets, end of period (000s omitted) $446,065 $415,066 $407,004 $453,792 $483,375
============================================================ ======== ======== ======== ======== ========
Ratio of expenses to average net assets, including interest
expense:
With fee waivers 1.83%(d) 2.02% 1.75% 1.82% 1.83%
============================================================ ======== ======== ======== ======== ========
Without fee waivers 1.83%(d) 2.02% 1.89% 1.88% 1.89%
============================================================ ======== ======== ======== ======== ========
Ratio of expenses to average net assets, excluding interest
expense:
With fee waivers(c) 1.82%(d) 1.75% 1.75% 1.82% 1.83%
============================================================ ======== ======== ======== ======== ========
Without fee waivers 1.82%(d) 1.75% 1.89% 1.88% 1.89%
============================================================ ======== ======== ======== ======== ========
Ratio of net investment income (loss) to average net assets (0.55)%(d) (0.20)% (0.29)% (0.26)% 0.38%
============================================================ ======== ======== ======== ======== ========
Ratio of interest expense to average net assets 0.01%(d) 0.27% n/a n/a n/a
============================================================ ======== ======== ======== ======== ========
Portfolio turnover rate 71% 97% 107% 123% 108%
============================================================ ======== ======== ======== ======== ========
</TABLE>
(a) Calculated using average shares outstanding.
(b) Does not deduct sales charges.
(c) Prior to the period ended December 31, 1999, ratios include expense
reductions.
(d) Ratios are based on average net assets of $377,588,984.
<TABLE>
<CAPTION>
Class B
---------------------------------------------------
1999(a) 1998(a) 1997(a) 1996(a) 1995(a)
-------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 15.26 $ 14.06 $ 12.73 $ 10.81 $ 9.97
- ------------------------------------------------------------ ------- ------- ------- ------- -------
Income from investment operations:
Net investment income (loss) (0.18) (0.14) (0.13) (0.11) (0.03)
- ------------------------------------------------------------ ------- ------- ------- ------- -------
Net realized and unrealized gain on investments 5.24 2.31 1.47 2.15 0.94
- ------------------------------------------------------------ ------- ------- ------- ------- -------
Net increase from investment operations 5.06 2.17 1.34 2.04 0.91
- ------------------------------------------------------------ ------- ------- ------- ------- -------
Distributions to shareholders:
From net investment income -- -- -- -- (0.03)
- ------------------------------------------------------------ ------- ------- ------- ------- -------
From net realized gains (1.39) (0.97) (0.01) (0.12) (0.04)
- ------------------------------------------------------------ ------- ------- ------- ------- -------
Total distributions (1.39) (0.97) (0.01) (0.12) (0.07)
- ------------------------------------------------------------ ------- ------- ------- ------- -------
Net asset value, end of period $ 18.93 $ 15.26 $ 14.06 $ 12.73 $ 10.81
============================================================ ======= ======= ======= ======= =======
Total return(b) 34.19% 15.80% 10.55% 18.79% 9.20%
============================================================ ======= ======= ======= ======= =======
Ratios and supplemental data
Net assets, end of period (in 000s) $93,404 $99,943 $81,011 $87,092 $73,025
============================================================ ======= ======= ======= ======= =======
Ratio of expenses to average net assets, including interest
expense:
With fee waivers 2.48%(d) 2.67% 2.40% 2.47% 2.48%
============================================================ ======= ======= ======= ======= =======
Without fee waivers 2.48%(d) 2.67% 2.54% 2.58% 2.54%
============================================================ ======= ======= ======= ======= =======
Ratio of expenses to average net assets, excluding interest
expense:
With fee waivers(c) 2.47%(d) 2.40% 2.40% 2.47% 2.48%
============================================================ ======= ======= ======= ======= =======
Without fee waivers() 2.47%(d) 2.40% 2.54% 2.53% 2.54%
============================================================ ======= ======= ======= ======= =======
Ratio of net investment income (loss) to average net assets (1.19)%(d) (0.85%) (0.94%) (0.91%) (0.27%)
============================================================ ======= ======= ======= ======= =======
Ratio of interest expense to average net assets 0.01%(d) 0.27% n/a n/a n/a
============================================================ ======= ======= ======= ======= =======
Portfolio turnover rate 71% 97% 107% 123% 108%
============================================================ ======= ======= ======= ======= =======
</TABLE>
(a) Calculated using average shares outstanding.
(b) Does not deduct sales charges.
(c) Prior to the period ended December 31, 1999, ratios include expense
reductions.
(d) Ratios are based on average net assets of $83,090,114.
14
<PAGE> 17
NOTE 8-FINANCIAL HIGHLIGHTS-(CONTINUED)
<TABLE>
<CAPTION>
Class C
------------
May 3,
1999
through Advisor Class
December 31, -----------------------------------------------
1999(a) 1999(a) 1998(a) 1997(a) 1996(a) 1995(a)
------------ ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $14.64 $15.82 $14.41 $12.92 $10.85 $10.24
- ------------------------------------------------------------ ------ ------ ------ ------ ------ ------
Income from investment operations:
Net investment income (loss) (0.19) (0.03) 0.02 0.01 0.01 0.08
- ------------------------------------------------------------ ------ ------ ------ ------ ------ ------
Net realized and unrealized gain on investments 5.88 5.50 2.36 1.49 2.18 0.71
- ------------------------------------------------------------ ------ ------ ------ ------ ------ ------
Net increase from investment operations 5.69 5.47 2.38 1.50 2.19 0.79
- ------------------------------------------------------------ ------ ------ ------ ------ ------ ------
Distributions to shareholders:
From net investment income -- -- -- -- -- (0.14)
- ------------------------------------------------------------ ------ ------ ------ ------ ------ ------
From net realized gains (1.39) (1.39) (0.97) (0.01) (0.12) (0.04)
- ------------------------------------------------------------ ------ ------ ------ ------ ------ ------
Total distributions (1.39) (1.39) (0.97) (0.01) (0.12) (0.18)
- ------------------------------------------------------------ ------ ------ ------ ------ ------ ------
Net asset value, end of period $18.94 $19.90 $15.82 $14.41 $12.92 $10.85
============================================================ ====== ====== ====== ====== ====== ======
Total return(b) 39.95% 35.58% 16.88% 11.64% 20.21% 7.75%
============================================================ ====== ====== ====== ====== ====== ======
Ratios and supplemental data:
Net assets, end of period (in 000s) $349 $1,491 $1,643 $3,239 $1,416 $718
============================================================ ====== ====== ====== ====== ====== ======
Ratio of expenses to average net assets, excluding interest
expense:
With fee waivers 2.48%(d) 1.48%(e) 1.67% 1.40% 1.47% 1.48%(f)
============================================================ ====== ====== ====== ====== ====== ======
Without fee waivers 2.48%(d) 1.48%(e) 1.67% 1.54% 1.53% 1.54%(f)
============================================================ ====== ====== ====== ====== ====== ======
Ratio of expenses to average net assets, excluding interest
expense:
With fee waivers(c) 2.47%(d) 1.47%(e) 1.40% 1.40% 1.47% 1.48%(f)
============================================================ ====== ====== ====== ====== ====== ======
Without fee waivers() 2.47%(d) 1.47%(e) 1.40% 1.54% 1.53% 1.54%(f)
============================================================ ====== ====== ====== ====== ====== ======
Ratio of net investment income (loss) to average net assets (1.19)%(d) (0.19)%(e) 0.15% 0.06% 0.09% 0.73%(f)
============================================================ ====== ====== ====== ====== ====== ======
Ratio of interest expense to average net assets 0.01%(d) 0.01%(e) 0.27% n/a n/a n/a
============================================================ ====== ====== ====== ====== ====== ======
Portfolio turnover rate 71% 71% 97% 107% 123% 108%
============================================================ ====== ====== ====== ====== ====== ======
</TABLE>
(a) Calculated using average shares outstanding.
(b) Does not deduct sales charges and is not annualized for periods less than
one year.
(c) Prior to the period ended December 31, 1999, ratios include expense
reductions.
(d) Ratios are annualized and based on average net assets of $179,556.
(e) Ratios are based on average net assets of $1,475,527.
(f) Annualized.
NOTE 9-SUBSEQUENT EVENT
On November 3, 1999, the Board of Trustees approved the conversion of Advisor
Class Shares into Class A Shares. The effective date of this conversion was
February 11, 2000.
15
<PAGE> 18
REPORT OF INDEPENDENT ACCOUNTANTS
To the Trustees of AIM Growth Series and Shareholders
of AIM Euroland Growth Fund
(formerly AIM Europe Growth Fund):
In our opinion, the accompanying statement of assets and
liabilities, including the schedule of investments, and
the related statements of operations and of changes in
net assets and the financial highlights present fairly,
in all material respects, the financial position of AIM
Euroland Growth Fund (hereafter referred to as the
"Fund") at December 31, 1999, the results of its
operations, the changes in its net assets and the
financial highlights for each of the periods indicated
therein, in conformity with accounting principles
generally accepted in the United States. These financial
statements and financial highlights (hereafter referred
to as "financial statements") are the responsibility of
the Fund's management; our responsibility is to express
an opinion on these financial statements based on our
audits. We conducted our audits of these financial
statements in accordance with auditing standards
generally accepted in the United States which require
that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free
of material misstatement. An audit includes examining, on
a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the
accounting principles used and significant estimates made
by management, and evaluating the overall financial
statement presentation. We believe that our audits, which
included confirmation of securities at December 31, 1999
by correspondence with the custodian, provide a
reasonable basis for the opinion expressed above.
PRICEWATERHOUSECOOPERS LLP
Boston, Massachusetts
February 16, 2000
16
<PAGE> 19
<TABLE>
<CAPTION>
BOARD OF TRUSTEES OFFICERS OFFICE OF THE FUND
<S> <C> <C>
C. Derek Anderson Robert H. Graham 11 Greenway Plaza
Senior Managing Partner, Chairman and President Suite 100
Plantagenet Capital Management, LLC Houston, TX 77046
(an investment partnership); Dana R. Sutton
Chief Executive Officer, Vice President and Treasurer INVESTMENT MANAGER
Plantagenet Holdings, Ltd.
(an investment banking firm) Samuel D. Sirko A I M Advisors, Inc.
Vice President and Secretary 11 Greenway Plaza
Frank S. Bayley Suite 100
Partner, law firm of Melville B. Cox Houston, TX 77046
Baker & McKenzie Vice President
SUB-ADVISOR
Robert H. Graham Gary T. Crum
President and Chief Executive Officer, Vice President INVESCO Asset Management Limited
A I M Management Group Inc. 11 Devonshire Square
Carol F. Relihan London EC2M 4YR
Ruth H. Quigley Vice President England
Private Investor
Mary J. Benson TRANSFER AGENT
Assistant Vice President and
Assistant Treasurer A I M Fund Services, Inc.
P.O. Box 4739
Sheri Morris Houston, TX 77210-4739
Assistant Vice President and
Assistant Treasurer CUSTODIAN
Nancy L. Martin State Street Bank and Trust Company
Assistant Secretary 225 Franklin Street
Boston, MA 02110
Ofelia M. Mayo
Assistant Secretary COUNSEL TO THE FUND
Kathleen J. Pflueger Kirkpatrick & Lockhart LLP
Assistant Secretary 1800 Massachusetts Avenue, N.W.
Washington, D.C. 20036-1800
COUNSEL TO THE TRUSTEES
Paul, Hastings, Janofsky & Walker LLP
Twenty Third Floor
555 South Flower Street
Los Angeles, CA 90071
DISTRIBUTOR
A I M Distributors, Inc.
11 Greenway Plaza
Suite 100
Houston, TX 77046
AUDITORS
PricewaterhouseCoopers LLP
160 Federal St.
Boston, MA 02110
</TABLE>
REQUIRED FEDERAL INCOME TAX INFORMATION (UNAUDITED)
AIM Euroland Growth Fund paid ordinary dividends in the amount of $0.7551 per
share to shareholders during its tax year ended December 31, 1999. Of these
amounts 0.00% is eligible for the dividends received deduction for corporations.
The Fund also distributed long-term capital gains of $16,483,925 for the Fund's
tax year ended December 31, 1999. Of long-term capital gains distributed, 100%
is 20% rate gain.
For the fiscal year ended December 31, 1999, the amount of income received by
the Fund from sources within foreign countries and possessions of the United
States was $0.2122 per share (representing a total of $5,552,519). The amount of
taxes paid by the Fund to such countries for the fiscal year ended December 31,
1999 was $0.0250 per share (representing a total of $654,820). The following
table provides a breakdown by country of ordinary income dividends and foreign
taxes paid by the Fund during the fiscal year ended December 31, 1999:
<TABLE>
<CAPTION>
GROSS FOREIGN
INCOME TAX PAID
COUNTRY % %
- ------------------------------------------------------------ ------- --------
<S> <C> <C>
Finland..................................................... 1.36% 8.13%
France...................................................... 3.61% 18.66%
Germany..................................................... 1.96% 9.19%
Italy....................................................... 0.74% 4.42%
Netherlands................................................. 1.82% 12.30%
Norway...................................................... 0.01% 0.20%
Portugal.................................................... 0.33% 2.31%
Spain....................................................... 0.67% 4.01%
Sweden...................................................... 0.88% 5.23%
Switzerland................................................. 1.56% 10.39%
United Kingdom.............................................. 7.64% 25.16%
Luxembourg.................................................. 0.03% 0.00%
Various..................................................... 0.71% 0.00%
- ------------------------------------------------------------ ------ -------
Subtotal.................................................... 21.32% 100.00%
- ------------------------------------------------------------ ------ -------
United States............................................... 78.68% N/A
- ------------------------------------------------------------ ------ -------
Total....................................................... 100.00% 100.00%
- ------------------------------------------------------------ ------ -------
</TABLE>
<PAGE> 20
THE AIM FAMILY OF FUNDS--Registered Trademark--
<TABLE>
<S> <C> <C>
GROWTH FUNDS MONEY MARKET FUNDS A I M Management Group Inc. has provided
AIM Aggressive Growth Fund AIM Money Market Fund leadership in the mutual fund industry since 1976
AIM Blue Chip Fund AIM Tax-Exempt Cash Fund and managed approximately $160 billion in assets
AIM Capital Development Fund for more than 6.6 million shareholders, including
AIM Constellation Fund(1) INTERNATIONAL GROWTH FUNDS individual investors, corporate clients and
AIM Dent Demographic Trends Fund AIM Advisor International Value Fund financial institutions, as of December 31, 1999.
AIM Large Cap Growth Fund AIM Asian Growth Fund The AIM Family of Funds--Registered Trademark--
AIM Mid Cap Equity Fund AIM Developing Markets Fund is distributed nationwide, and AIM today is the
AIM Mid Cap Growth Fund AIM Euroland Growth Fund(4) eighth-largest mutual fund complex in the United
AIM Mid Cap Opportunities Fund AIM European Development Fund States in assets under management, according to
AIM Select Growth Fund AIM International Equity Fund Strategic Insight, an independent mutual fund
AIM Small Cap Growth Fund(2) AIM Japan Growth Fund monitor.
AIM Small Cap Opportunities Fund(3) AIM Latin American Growth Fund
AIM Value Fund AIM New Pacific Growth Fund
AIM Weingarten Fund
GLOBAL GROWTH FUNDS
GROWTH & INCOME FUNDS AIM Global Aggressive Growth Fund
AIM Advisor Flex Fund AIM Global Growth Fund
AIM Advisor Large Cap Value Fund
AIM Advisor Real Estate Fund GLOBAL GROWTH & INCOME FUNDS
AIM Balanced Fund AIM Global Growth & Income Fund
AIM Basic Value Fund AIM Global Utilities Fund
AIM Charter Fund
GLOBAL INCOME FUNDS
INCOME FUNDS AIM Emerging Markets Debt Fund
AIM Floating Rate Fund AIM Global Government Income Fund
AIM High Yield Fund AIM Global Income Fund
AIM High Yield Fund II AIM Strategic Income Fund
AIM Income Fund
AIM Intermediate Government Fund THEME FUNDS
AIM Limited Maturity Treasury Fund AIM Global Consumer Products and Services Fund
AIM Global Financial Services Fund
TAX-FREE INCOME FUNDS AIM Global Health Care Fund
AIM High Income Municipal Fund AIM Global Infrastructure Fund
AIM Municipal Bond Fund AIM Global Resources Fund
AIM Tax-Exempt Bond Fund of Connecticut AIM Global Telecommunications and Technology Fund(5)
AIM Tax-Free Intermediate Fund AIM Global Trends Fund(6)
</TABLE>
(1) Effective December 1, 1999, AIM Constellation Fund's investment strategy
broadened to allow investments across all market capitalizations. (2) AIM Small
Cap Growth Fund closed to new investors on November 8, 1999. (3) AIM Small Cap
Opportunities Fund closed to new investors on November 4, 1999. (4) On September
1, 1999, AIM Europe Growth Fund was renamed AIM Euroland Growth Fund. Previously
the fund invested in all size companies in most areas of Europe. The fund now
seeks to invest at least 65% of its assets in large-cap companies within
countries using the euro as their currency (EMU-member countries). (5) On June
1, 1999, AIM Global Telecommunications Fund was renamed AIM Global
Telecommunications and Technology Fund. (6) Effective August 27, 1999, AIM
Global Trends Fund was restructured to operate as a traditional mutual fund.
Before that date, the fund operated as a fund of funds. For more complete
information about any AIM fund(s), including sales charges and expenses, ask
your financial advisor or securities dealer for a free prospectus(es). Please
read the prospectus(es) carefully before you invest or send money. If used as
sales material after April 20, 2000, this report must be accompanied by a
current Quarterly Review of Performance for AIM Funds.
[DALBAR LOGO APPEARS HERE] [AIM LOGO APPEARS HERE]
INVEST WITH DISCIPLINE
--Registered Trademark--
A I M Distributors, Inc. ERG-AR-1
