<PAGE>
AIM DOLLAR FUND
Fifty California Street, 27th Floor
San Francisco, California 94111
General Telephone No. 415/392-6181
General Fund Information 800/824-1580
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- --------------------------------------------------------------------------------
REPORT FROM THE FUND MANAGER
The Fund's total return for the six months ended June 30, 1998, was 2.30%
for Class A shares and 1.99% for Class B shares. As of June 30, the Fund's SEC
seven-day yield was 4.66% for Class A shares and 3.92% for Class B shares.
Because the Fund invests only in short-term debt obligations with remaining
maturities of 13 months or less, its performance generally reflects the level of
short-term interest rates. Please bear in mind that an investment in the Fund is
neither insured nor guaranteed by the U.S. government, and there can be no
assurance the Fund will be able to maintain a stable net asset value of $1.00
per share.
Fixed income markets continued to be buffeted by overseas turmoil during the
first half of 1998. Early in January, the market was expecting an imminent
reduction in rates by the Federal Reserve Board (the Fed) to counteract negative
effects from the Asian economic crises. However, as it became apparent that the
U.S. economy was going to shrug off the Asian influence and continue its strong
growth, interest rates rose. The one-year Treasury bill, whose yield had dropped
as low as 5.10% in January, backed up to the 5.45% area by late February.
Fueled by low interest rates and strong stock and labor markets, the U.S.
economy continued its solid growth in the first quarter of 1998, rising at a
5.4% annual rate. Despite this rapid growth, inflation remained contained, with
the annualized rate running between 1% and 2%. During the 12 months ended May
31, the Consumer Price Index rose 1.7%. As the second quarter came to a close,
the economy appeared finally to be slowing in response to the Asian influence
and the strike at General Motors.
During this period, the Fed remained on watch for signs of incipient
inflation, which never appeared. As the Asian situation continued to unfold, the
Fed remained hesitant to raise rates. As a result, the Federal funds target
remained at 5.5% throughout the reporting period.
As the third quarter opened, most market participants were expecting the Fed
to remain on the sidelines for the foreseeable future, though opinion remained
divided about its next move. Some were concerned that strong U.S. growth would
generate inflationary pressures, leading to a tighter Fed policy. Others
remained concerned that Asia's dampening effects on the U.S. would eventually
encourage the Fed to lower rates. With the flat yield curve and all the
uncertainty about the future direction of rates and where the stock market is
headed, Fund managers will likely continue to maintain the weighted average
maturity toward the shorter end of the spectrum for the foreseeable future.
<PAGE>
AIM DOLLAR FUND
(FORMERLY GT GLOBAL DOLLAR FUND)
PORTFOLIO OF INVESTMENTS
June 30, 1998 (Unaudited)
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<TABLE>
<CAPTION>
MATURITY PRINCIPAL VALUE % OF NET
SHORT-TERM INVESTMENTS YIELD DATE AMOUNT (NOTE 1) ASSETS
- ----------------------------------------------------------------- --------- --------- ----------- ------------ -------------
<S> <C> <C> <C> <C> <C>
Commercial Paper - Discounted (42.9%)
Shell Oil Co. ................................................. 5.52% 27-Aug-98 15,000,000 $ 14,870,325 3.7
Associates Corp. .............................................. 5.58% 09-Nov-98 15,000,000 14,702,521 3.7
Kingdom of Sweden ............................................. 5.52% 06-Jul-98 12,000,000 11,990,950 3.0
Coca Cola Co. ................................................. 5.51% 14-Jul-98 12,000,000 11,976,470 3.0
International Lease Finance Corp. ............................. 5.53% 17-Jul-98 12,000,000 11,971,040 3.0
Household Finance Corp. ....................................... 5.54% 20-Jul-98 12,000,000 11,965,230 3.0
Walt Disney Co. ............................................... 5.58% 21-Oct-98 12,000,000 11,797,280 2.9
E.I. Dupont de Nemours & Co. .................................. 5.59% 21-Oct-98 12,000,000 11,796,906 2.9
American Express Credit Corp. ................................. 5.58% 23-Oct-98 12,000,000 11,792,900 2.9
Motorola Inc. ................................................. 5.52% 13-Jul-98 10,000,000 9,981,767 2.5
Ford Motor Credit Corp. ....................................... 5.51% 11-Aug-98 10,000,000 9,938,956 2.5
General Electric Co. .......................................... 5.56% 28-Aug-98 10,000,000 9,912,678 2.5
John Deere Capital Corp. ...................................... 5.57% 11-Sep-98 10,000,000 9,891,400 2.5
United States Automobile Association Capital Corp. ............ 5.58% 25-Sep-98 10,000,000 9,868,611 2.5
Minnesota Mining & Manufacturing Co. .......................... 5.61% 22-Sep-98 9,000,000 8,886,290 2.2
------------ -----
Total Commercial Paper - Discounted (amortized cost
$171,343,324) .................................................. 171,343,324 42.8
------------ -----
<CAPTION>
REPURCHASE AGREEMENTS
- -----------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Dated June 30, 1998, with State Street Bank & Trust Co., due
July 1, 1998, for an effective yield of 5.70%, collateralized
by $54,775,000 U.S. Treasury Notes, 5.375% due 1/31/00 (market
value of collateral is $55,815,232 including accrued interest)
............................................................. 54,720,000 13.7
Dated June 30, 1998, with BancAmerica Robertson Stephens, due
July 1, 1998, for an effective yield of 5.55%, collateralized
by $50,730,000 of U.S. Treasury Notes & Bills, 6.25% and 8.75%
due 6/30/02 & 11/15/08, respectively (market value of
collateral is $51,242,992 including accrued interest) ....... 51,000,000 12.8
------------ -----
TOTAL REPURCHASE AGREEMENTS (cost $105,720,000) ................. 105,720,000 26.5
------------ -----
TOTAL INVESTMENTS (cost $277,063,324) * ........................ 277,063,324 69.3
Other Assets and Liabilities .................................... 122,880,385 30.7
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NET ASSETS ...................................................... $399,943,709 100.0
------------ -----
------------ -----
</TABLE>
- --------------
* For Federal income tax purposes, cost is $277,063,324
The accompanying notes are an integral part of the financial statements.
F1
<PAGE>
AIM DOLLAR FUND
(FORMERLY GT GLOBAL DOLLAR FUND)
STATEMENT OF ASSETS
AND LIABILITIES
June 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
Assets:
Investments in securities, at value (amortized cost $171,343,324) (Note 1)....................... $171,343,324
Repurchase agreements, at value and cost (Note 1)................................................ 105,720,000
U.S. currency.................................................................................... 20,244
Receivable for Fund shares sold.................................................................. 129,613,171
Interest receivable.............................................................................. 16,527
-----------
Total assets................................................................................... 406,713,266
-----------
Liabilities:
Payable for Fund shares repurchased.............................................................. 6,121,295
Distribution payable............................................................................. 219,677
Payable for investment management and administration fees (Note 2)............................... 150,888
Payable for transfer agent fees (Note 2)......................................................... 67,596
Payable for registration and filing fees......................................................... 64,830
Payable for service and distribution expenses (Note 2)........................................... 60,672
Payable for printing and postage expenses........................................................ 48,995
Payable for professional fees.................................................................... 13,679
Payable for custodian fees....................................................................... 9,830
Payable for fund accounting fees (Note 2)........................................................ 6,015
Payable for Directors' fees and expenses (Note 2)................................................ 3,059
Other accrued expenses........................................................................... 3,021
-----------
Total liabilities.............................................................................. 6,769,557
-----------
Net assets......................................................................................... $399,943,709
-----------
-----------
Class A:
Net asset value and redemption price per share ($291,300,510 DIVIDED BY 291,360,629 shares
outstanding)...................................................................................... $ 1.00
-----------
-----------
Class B:+
Net asset value and offering price per share ($101,012,198 DIVIDED BY 100,970,806 shares
outstanding)...................................................................................... $ 1.00
-----------
-----------
Advisor Class:
Net asset value, offering price per share, and redemption price per share ($7,631,001 DIVIDED BY
7,630,975 shares outstanding)..................................................................... $ 1.00
-----------
-----------
Net assets: At June 30, 1998, net assets consisted of paid-in capital of $399,943,709.
<FN>
- --------------
+ Redemption price per share is equal to the net asset value per share less
any applicable contingent deferred sales charge.
</TABLE>
The accompanying notes are an integral part of the financial statements.
F2
<PAGE>
AIM DOLLAR FUND
(FORMERLY GT GLOBAL DOLLAR FUND)
STATEMENT OF OPERATIONS
Six months ended June 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
Investment income: (Note 1)
Interest income............................................................................... $8,298,701
Expenses:
Service and distribution expenses:(Note 2)
Class A.......................................................................... $ 251,824
Class B.......................................................................... 456,424 708,248
---------
Investment management and administration fees (Note 2)........................................ 747,972
Transfer agent fees (Note 2).................................................................. 345,900
Registration and filing fees.................................................................. 139,200
Professional fees............................................................................. 52,074
Printing and postage expenses................................................................. 49,775
Fund accounting fees.......................................................................... 40,604
Custodian fees................................................................................ 10,000
Directors' fees and expenses (Note 2)......................................................... 8,465
Other expenses................................................................................ 4,196
---------
Total expenses before reductions............................................................ 2,106,434
---------
Expenses waived by A I M Advisors, Inc. (Note 2).......................................... (365,930)
---------
Total net expenses.......................................................................... 1,740,504
---------
Net investment income........................................................................... 6,558,197
---------
Net increase in net assets resulting from operations............................................ $6,558,197
---------
---------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F3
<PAGE>
AIM DOLLAR FUND
(FORMERLY GT GLOBAL DOLLAR FUND)
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS ENDED
JUNE 30, 1998 YEAR ENDED
(UNAUDITED) DECEMBER 31, 1997
---------------- -----------------
<S> <C> <C>
Increase (Decrease) in net assets
Operations:
Net investment income............................................... $ 6,558,197 $ 11,700,779
---------------- -----------------
Net increase in net assets resulting from operations.............. 6,558,197 11,700,779
---------------- -----------------
Class A:
Distributions to shareholders: (Note 1)
From net investment income.......................................... (4,644,385) (7,587,680)
Class B:
Distributions to shareholders: (Note 1)
From net investment income.......................................... (1,765,418) (3,720,785)
Advisor Class:
Distributions to shareholders: (Note 1)
From net investment income.......................................... (148,394) (392,314)
---------------- -----------------
Total distributions............................................... (6,558,197) (11,700,779)
---------------- -----------------
Capital share transactions: (Note 3)
Increase from capital shares sold and reinvested.................... 5,510,183,410 8,215,928,197
Decrease from capital shares repurchased............................ (5,387,128,456) (8,474,948,990)
---------------- -----------------
Net increase (decrease) from capital share transactions........... 123,054,954 (259,020,793)
---------------- -----------------
Total increase (decrease) in net assets............................... 123,054,954 (259,020,793)
Net assets:
Beginning of period................................................. 276,888,755 535,909,548
---------------- -----------------
End of period *..................................................... $ 399,943,709 $ 276,888,755
---------------- -----------------
---------------- -----------------
<FN>
- --------------
* Includes undistributed net investment income of $0.
</TABLE>
The accompanying notes are an integral part of the financial statements.
F4
<PAGE>
AIM DOLLAR FUND
(FORMERLY GT GLOBAL DOLLAR FUND)
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Contained below is per share operating performance data for a share outstanding
throughout each period, total investment return, ratios and supplemental data.
This information has been derived from information provided in the financial
statements.
<TABLE>
<CAPTION>
CLASS A+
-----------------------------------------------------------------------
SIX MONTHS
ENDED
JUNE 30, YEAR ENDED DECEMBER 31,
1998 ----------------------------------------------------------
(UNAUDITED) 1997 1996 1995 1994 1993
----------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Net investment income................... 0.023 0.045 0.044 0.050 0.032 0.022
Distributions from net investment
income................................. (0.023) (0.045) (0.044) (0.050) (0.032) (0.022)
----------- ---------- ---------- ---------- ---------- ----------
Net asset value (unchanged during the
period)................................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
----------- ---------- ---------- ---------- ---------- ----------
----------- ---------- ---------- ---------- ---------- ----------
Total investment return (b)............. 2.30% 4.62% 4.50% 5.08% 3.3% 2.2%
Ratios and supplemental data:
Net assets, end of period (in 000's).... $ 291,301 $ 186,611 $ 392,623 $ 183,761 $ 320,858 $ 87,822
Ratio of net investment income to
average net assets:
With expense reductions, waivers,
and/or reimbursement (a) (Note 2).... 4.61% 4.50% 4.39% 4.94% 3.40% 2.17%
Without expense reductions, waivers,
and/or reimbursement (a)............. 4.36% 4.20% 4.08% 4.66% 3.15% 1.46%
Ratio of operating expenses to average
net assets: (a)
With expense reductions, waivers,
and/or reimbursement (a) (Note 2).... 0.93% 0.98% 0.99% 0.97% 0.92% 1.00%
Without expense reductions, waivers,
and/or reimbursement (a)............. 1.18% 1.28% 1.30% 1.25% 1.17% 1.72%
</TABLE>
- ----------------
(a) Annualized for periods of less than one year.
(b) Not annualized for periods of less than one year.
+ All capital shares issued and outstanding as of March 31, 1993 were
reclassified as Class A shares.
++ Commencing April 1, 1993, the Fund began offering Class B shares.
+++ Commencing June 1, 1995, the Fund began offering Advisor Class shares.
The accompanying notes are an integral part of the financial statements.
F5
<PAGE>
AIM DOLLAR FUND
(FORMERLY GT GLOBAL DOLLAR FUND)
FINANCIAL HIGHLIGHTS (cont'd)
- --------------------------------------------------------------------------------
Contained below is per share operating performance data for a share outstanding
throughout each period, total investment return, ratios and supplemental data.
This information has been derived from information provided in the financial
statements.
<TABLE>
<CAPTION>
CLASS B++
--------------------------------------------------------------------------
SIX MONTHS
ENDED APRIL 1, 1993
JUNE 30, YEAR ENDED DECEMBER 31, TO
1998 ---------------------------------------------- DECEMBER 31,
(UNAUDITED) 1997 1996 1995 1994 1993
----------- ---------- ---------- ---------- ---------- -------------
<S> <C> <C> <C> <C> <C> <C>
Net investment income................... 0.019 0.038 0.037 0.040 0.025 0.010
Distributions from net investment
income................................. (0.019) (0.038) (0.037) (0.040) (0.025) (0.010)
----------- ---------- ---------- ---------- ---------- -------------
Net asset value (unchanged during the
period)................................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
----------- ---------- ---------- ---------- ---------- -------------
----------- ---------- ---------- ---------- ---------- -------------
Total investment return (b)............. 1.99% 3.84% 3.73% 4.29% 2.53% 1.4%
Ratios and supplemental data:
Net assets, end of period (in 000's).... $ 101,012 $ 83,498 $ 128,308 $ 99,151 $ 109,936 $ 3,478
Ratio of net investment income to
average net assets:
With expense reductions, waivers,
and/or reimbursement (a) (Note 2).... 3.86% 3.75% 3.64% 4.19% 2.65% 1.42%
Without expense reductions, waivers,
and/or reimbursement (a)............. 3.61% 3.45% 3.33% 3.91% 2.40% 0.86%
Ratio of operating expenses to average
net assets: (a)
With expense reductions, waivers,
and/or reimbursement (a) (Note 2).... 1.68% 1.73% 1.74% 1.72% 1.67% 1.75%
Without expense reductions, waivers,
and/or reimbursement (a)............. 1.93% 2.03% 2.05% 2.00% 1.92% 2.31%
</TABLE>
- ----------------
(a) Annualized for periods of less than one year.
(b) Not annualized for periods of less than one year.
+ All capital shares issued and outstanding as of March 31, 1993 were
reclassified as Class A shares.
++ Commencing April 1, 1993, the Fund began offering Class B shares.
+++ Commencing June 1, 1995, the Fund began offering Advisor Class shares.
The accompanying notes are an integral part of the financial statements.
F6
<PAGE>
AIM DOLLAR FUND
(FORMERLY GT GLOBAL DOLLAR FUND)
FINANCIAL HIGHLIGHTS (cont'd)
- --------------------------------------------------------------------------------
Contained below is per share operating performance data for a share outstanding
throughout each period, total investment return, ratios and supplemental data.
This information has been derived from information provided in the financial
statements.
<TABLE>
<CAPTION>
ADVISOR CLASS+++
---------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED DECEMBER JUNE 1, 1995
JUNE 30, 31, TO
1998 ---------------------- DECEMBER 31,
(UNAUDITED) 1997 1996 1995
------------ ---------- ---------- -------------
<S> <C> <C> <C> <C>
Net investment income................... 0.023 0.045 0.044 0.030
Distributions from net investment
income................................. (0.023) (0.045) (0.044) (0.030)
------------ ---------- ---------- -------------
Net asset value (unchanged during the
period)................................ $ 1.00 $ 1.00 $ 1.00 $ 1.00
------------ ---------- ---------- -------------
------------ ---------- ---------- -------------
Total investment return (b)............. 2.25 % 4.61% 4.50% 2.92%
Ratios and supplemental data:
Net assets, end of period (in 000's).... $ 7,631 $ 6,780 $ 14,978 $ 2,096
Ratio of net investment income to
average net assets:
With expense reductions, waivers,
and/or reimbursement (a) (Note 2).... 4.61 % 4.50% 4.39% 4.94%
Without expense reductions, waivers,
and/or reimbursement (a)............. 4.61 % 4.45% 4.33% 4.91%
Ratio of operating expenses to average
net assets: (a)
With expense reductions, waivers,
and/or reimbursement (a) (Note 2).... 0.93 % 0.98% 0.99% 0.97%
Without expense reductions, waivers,
and/or reimbursement (a)............. 0.93 % 1.03% 1.05% 1.00%
</TABLE>
- ----------------
(a) Annualized for periods of less than one year.
(b) Not annualized for periods of less than one year.
+ All capital shares issued and outstanding as of March 31, 1993 were
reclassified as Class A shares.
++ Commencing April 1, 1993, the Fund began offering Class B shares.
+++ Commencing June 1, 1995, the Fund began offering Advisor Class shares.
The accompanying notes are an integral part of the financial statements.
F7
<PAGE>
AIM DOLLAR FUND
(FORMERLY GT GLOBAL DOLLAR FUND)
NOTES TO FINANCIAL STATEMENTS
June 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES (SEE ALSO NOTE 2)
AIM Dollar Fund (the "Fund", formerly GT Global Dollar Fund) is a diversified
series of AIM Investment Portfolios, Inc. (the "Company"). The Company is
registered under the Investment Company Act of 1940, as amended ("1940 Act"), as
an open-end management investment company.
The Fund offers Class A, Class B, and Advisor Class shares, each of which has
equal rights as to assets and voting privileges. Each class has exclusive voting
rights with respect to its distribution plan. Investment income, realized and
unrealized capital gains and losses, and the common expenses of the Fund are
allocated on a pro rata basis to each class based on the relative net assets of
each class to the total net assets of the Fund. Each class of shares differs in
its respective distribution expenses, and may differ in its transfer agent,
registration, and certain other class-specific fees and expenses.
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 and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of income and expenses during the reporting period. Actual
results could differ from those estimates. The following is a summary of
significant accounting policies in conformity with generally accepted accounting
principles consistently followed by the Fund in the preparation of the financial
statements.
(A) PORTFOLIO VALUATION
Securities in the Fund are valued utilizing the amortized cost valuation method
permitted in accordance with Rule 2a-7 under the 1940 Act. This method involves
valuing a portfolio security initially at its cost and thereafter assuming a
constant amortization to maturity of any discount or premium.
(B) FEDERAL INCOME TAXES
It is the policy of the Fund to meet the requirements for qualification as a
"regulated investment company" under the Internal Revenue Code of 1986, as
amended ("Code"). It is also the intention of the Fund to make distributions
sufficient to avoid imposition of any excise tax under Section 4982 of the Code.
Therefore, no provision has been made for Federal taxes on income, capital
gains, and unrealized appreciation of securities held, or for excise tax on
income and capital gains. The Fund currently has a capital loss carryforward of
$3,382 which expires in 2005.
(C) REPURCHASE AGREEMENTS
With respect to repurchase agreements entered into by the Fund, it is the Fund's
policy to always receive, as collateral, U.S. government securities or other
high quality debt securities of which the value, including accrued interest, is
at least equal to the amount to be repaid to the Fund under each agreement at
its maturity. A I M Advisors, Inc. is responsible for determining that the value
of these underlying securities remains at least equal to the resale price.
(D) OTHER
Security transactions are recorded on the trade date (date the order to buy or
sell is executed). Interest income is recorded on an accrual basis. Dividends to
shareholders from net investment income are declared daily and paid or
reinvested monthly.
2. RELATED PARTIES
A I M Advisors, Inc. ("AIM" or the "Manager") is the Fund's investment manager
and administrator, and INVESCO (NY), Inc., (formerly, Chancellor LGT Asset
Management, Inc.) is the Fund's investment sub-adviser and/or sub-administrator.
As of the close of business on May 29, 1998, Liechtenstein Global Trust AG
("LGT"), the former indirect parent organization of Chancellor LGT Asset
Management, Inc. ("Chancellor LGT"), consummated a purchase agreement with
AMVESCAP PLC pursuant to which AMVESCAP PLC acquired LGT's Asset Management
Division, which included Chancellor LGT and certain other affiliates. As a
result of this transaction, Chancellor LGT was renamed INVESCO (NY), Inc., and
is now an indirect wholly-owned subsidiary of AMVESCAP PLC. In connection with
this transaction, AIM, an indirect wholly-owned subsidiary of AMVESCAP PLC,
became the investment manager and administrator of the Funds and INVESCO (NY),
Inc. became the sub-adviser and sub-administrator of the Funds. All of the
changes became effective as of the close of business on May 29, 1998.
The Fund pays the Manager investment management and administration fees at the
annualized rate of 0.50% of the Fund's average daily net assets. These fees are
computed daily and paid monthly, and are subject to reduction in any year to the
extent that the Fund's expenses (exclusive of brokerage commissions, taxes,
interest, distribution-related expenses and extraordinary expenses) exceed the
most stringent limits prescribed by the laws or regulations of any state in
which the Fund's shares are sold.
A I M Distributors, Inc. ("AIM Distributors"), an affiliate of the Manager,
serves as the Fund's distributor. For the period ended May 29, 1998, GT Global,
Inc. ("GT Global") served as the Fund's distributor. The Fund offers Class A,
Class B, and Advisor Class shares for purchase. Certain redemptions of Class A
shares made within two years of purchase are subject to contingent deferred
sales charges ("CDSCs"), in accordance with the Fund's current prospectus. Class
B shares of the Fund are available only through an exchange of Class B shares of
other AIM Mutual Funds. Certain redemptions of Class B shares made within six
years of purchase are also subject to CDSCs, in accordance with the Fund's
current prospectus. For the period ended June 30, 1998, AIM Distributors and GT
Global collected CDSCs in the amount of $53,658 and $384,193, respectively. In
addition, AIM Distributors may, from time to time, make ongoing payments to
brokerage firms, financial institutions (including banks)
F8
<PAGE>
AIM DOLLAR FUND
(FORMERLY GT GLOBAL DOLLAR FUND)
and others that facilitate the administration and servicing of shareholder
accounts.
For the period ended May 29, 1998, pursuant to the then effective separate
distribution plans adopted under the 1940 Act Rule 12b-1 by the Company's Board
of Directors with respect to the Fund's Class A shares ("Class A Plan") and
Class B shares ("Class B Plan"), the Fund reimbursed GT Global for a portion of
its shareholder servicing and distribution expenses. Under the Class A Plan, the
Fund was permitted to pay GT Global a service fee at the annualized rate of up
to 0.25% of the average daily net assets of the Fund's Class A shares for GT
Global's expenditures incurred in servicing and maintaining shareholder
accounts, and was permitted to pay GT Global a distribution fee at the
annualized rate of up to 0.25% of the average daily net assets of the Fund's
Class A shares less any amounts paid by the Fund as the aforementioned service
fee for GT Global's expenditures incurred in providing services as distributor.
GT Global does not currently intend to seek reimbursement of any amounts under
the Class A Plan. All expenses for which GT Global is reimbursed under the Class
A Plan will have been incurred within one year of such reimbursement.
For the period ended May 29, 1998, pursuant to the Fund's Class B Plan, the Fund
was permitted to pay GT Global a service fee at the annualized rate of up to
0.25% of the average daily net assets of the Fund's Class B shares for GT
Global's expenditures incurred in servicing and maintaining shareholder
accounts, and was permitted to pay GT Global a distribution fee at the
annualized rate of up to 0.75% of the average daily net assets of the Fund's
Class B shares for GT Global's expenditures incurred in providing services as
distributor. GT Global does not currently intend to seek reimbursement of any
amounts in excess of 0.75% of average daily net assets under the Class B Plan.
Expenses incurred under the Class B Plan in excess of 1.00% annually were
permitted to be carried forward for reimbursement in subsequent years as long as
that Plan continues in effect.
Effective as of the close of business May 29, 1998, pursuant to Rule 12b-1 under
the 1940 Act, the Company's Board of Directors adopted a Master Distribution
Plan applicable to the Fund's Class A shares ("Class A Plan") and Class B shares
("Class B Plan"), pursuant to which a Fund compensates AIM Distributors for the
purpose of financing any activity that is intended to result in the sale of
Class A or Class B shares of the Funds. Under the Class A Plan, the Fund
compensates AIM Distributors at the annualized rate of 0.25% of the average
daily net assets of the Fund's Class A shares.
Pursuant to the Fund's Class B Plan, the Fund compensates AIM Distributors at an
annualized rate of 1.00% of the average daily net assets of the Fund's Class B
shares.
The Manager and AIM Distributors have voluntarily undertaken to limit the Fund's
expenses (exclusive of brokerage commissions, taxes, interest, and extraordinary
items) to the maximum annual level of 1.00%, 1.75%, and 1.00% of the average
daily net assets of the Fund's Class A, Class B, and Advisor Class shares,
respectively. If necessary, this limitation will be effected by waivers by the
Manager of investment management and administration fees, waivers by AIM
Distributors of payments under the Class A Plan and/or Class B Plan and/or
reimbursements by the Manager or AIM Distributors of portions of the Fund's
other operating expenses.
GT Global Investor Services, Inc. ("GT Services"), an affiliate of the Manager
and AIM Distributors, is the transfer agent of the Fund. For performing
shareholder servicing, reporting, and general transfer agent services, GT
Services receives an annual maintenance fee of $17.50 per account, a new account
fee of $4.00 per account, a per transaction fee of $1.75 for all transactions
other than exchanges and a per exchange fee of $2.25. GT Services is also
reimbursed by the Funds for its out-of-pocket expenses for such items as
postage, forms, telephone charges, stationery and office supplies.
The Manager is the pricing and accounting agent for the Fund. The monthly fee
for these services to the Manager is a percentage, not to exceed 0.03% annually,
of the Fund's average daily net assets. The annual fee rate is derived by
applying 0.03% to the first $5 billion of assets of all registered mutual funds
advised by the Manager and 0.02% to the assets in excess of $5 billion and
allocating the result according to the Fund's average daily net assets.
The Company pays each of its Directors who is not an employee, officer or
director of the Manager, GT Global or GT Services $1,000 per year plus $300 for
each meeting of the board or any committee thereof attended by the Director.
F9
<PAGE>
AIM DOLLAR FUND
(FORMERLY GT GLOBAL DOLLAR FUND)
3. CAPITAL SHARES
At June 30, 1998, there were 2,000,000,000 shares of the Company's common stock
authorized, at $0.001 per share. Of this number, 1,500,000,000 shares have been
classified as shares of the Fund; 500 million shares have been classified as
Class A shares, 500 million have been classified as Class B shares, and 500
million have been classified as Advisor Class shares. These amounts may be
increased from time to time at the discretion of the Board of Directors.
Transactions in capital shares of the Fund were as follows:
CAPITAL SHARE TRANSACTIONS
<TABLE>
<CAPTION>
SIX MONTHS ENDED
JUNE 30, 1998 YEAR ENDED
(UNAUDITED) DECEMBER 31, 1997
--------------------- ----------------------
CLASS A SHARES & AMOUNT SHARES & AMOUNT
- ---------------------------------------- --------------------- ----------------------
<S> <C> <C>
Shares sold............................. $ 4,604,406,284 $ 6,222,351,251
Shares issued in connection with
reinvestment of distributions......... 2,445,437 4,193,093
--------------------- ----------------------
4,606,851,721 6,226,544,344
Shares repurchased...................... (4,502,161,868) (6,432,557,179)
--------------------- ----------------------
Net increase (decrease)................. $ 104,689,853 $ (206,012,835)
--------------------- ----------------------
--------------------- ----------------------
<CAPTION>
CLASS B SHARES & AMOUNT SHARES & AMOUNT
- ---------------------------------------- --------------------- ----------------------
<S> <C> <C>
Shares sold............................. $ 747,831,959 $ 1,763,392,144
Shares issued in connection with
reinvestment of distributions......... 1,327,518 2,479,264
--------------------- ----------------------
749,159,477 1,765,871,408
Shares repurchased...................... (731,645,373) (1,810,681,116)
--------------------- ----------------------
Net increase (decrease)................. $ 17,514,104 $ (44,809,708)
--------------------- ----------------------
--------------------- ----------------------
<CAPTION>
ADVISOR CLASS SHARES & AMOUNT SHARES & AMOUNT
- ---------------------------------------- --------------------- ----------------------
<S> <C> <C>
Shares sold............................. $ 154,115,624 $ 223,289,952
Shares issued in connection with
reinvestment of distributions......... 56,588 222,493
--------------------- ----------------------
154,172,212 223,512,445
Shares repurchased...................... (153,321,215) (231,710,695)
--------------------- ----------------------
Net increase (decrease)................. $ 850,997 $ (8,198,250)
--------------------- ----------------------
--------------------- ----------------------
</TABLE>
F10
<PAGE>
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AIM DOLLAR FUND
NOTES
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