<PAGE>
[AIM LOGO APPEARS HERE]
AIM
SUMMIT
FUND, INC.
ANNUAL REPORT
OCTOBER 31, 1995
<PAGE>
AIM SUMMIT FUND, INC.
For shareholders who seek capital growth through systematic investments.
ABOUT FUND PERFORMANCE AND PORTFOLIO DATA THROUGHOUT THIS REPORT:
* Unless otherwise indicated, Fund results were computed without a sales charge.
When sales charges are included in performance figures, those figures reflect
deduction of the Fund's 8.50% maximum sales charge. The 8.50% sales charge is
attributable to the 15-year investment plan.
* One-year performance results include reinvested distributions of $0.485 per
share.
* AIM Summit Fund's performance figures are historical and reflect reinvestment
of all distributions, and changes in net asset value.
* The Fund's investment return and principal value will fluctuate so that an
investor's shares, when redeemed, may be worth more or less than their
original cost.
* The Fund's portfolio is subject to change, and there is no guarantee it will
continue to hold these same securities.
* Dollar-cost averaging does not assure a profit and does not protect against
loss in declining markets. And since dollar-cost averaging involves continuous
investing regardless of fluctuating securities prices, investors should
consider their ability to continue purchases over an extended period of time.
* Past performance cannot guarantee comparable future results.
ABOUT INDEXES AND OTHER PERFORMANCE BENCHMARKS CITED IN THIS REPORT:
* The Dow Jones Industrial Average is a price-weighted average of 30 actively
traded primarily industrial stocks.
* The unmanaged Lipper Growth Fund Index represents an average of the
performance of the 30 largest growth funds charted by Lipper Analytical
Services, Inc., an independent mutual funds performance monitor.
* The NASDAQ (National Association of Securities Dealers Automated Quotation
System) Composite Index is a group of more than 4,500 unmanaged
over-the-counter securities widely regarded by investors to be
representative of the small- and medium-sized company stock universe.
* The Standard & Poor's 500 (S&P 500) is a group of unmanaged securities widely
regarded by investors to be representative of the stock market in general.
* An investment cannot be made in any indexes listed. Unless otherwise
indicated, index results include reinvested dividends and do not reflect sales
charges.
<PAGE>
A Message from
the Chairman
Dear Shareholder:
AIM Summit Fund, Inc. provided its shareholders with
noteworthy total return of 31.03%, including reinvested
[PHOTO OF distributions of $0.485 per share, during the fiscal year
CHARLES T. BAUER ended October 31. The Fund outperformed not only the
CHAIRMAN OF THE 26.36% gain of the Standard & Poor's Composite Index
BOARD OF THE FUND of 500 Stocks, but also the 23.98% return posted by the
APPEARS HERE] unmanaged Lipper Growth Fund Index, which tracks mutual
funds sharing your Fund's investment objectives.
Your Fund's successful performance accounts, in part,
for the AIM Summit Fund's growth in assets managed, from $765 million as the
fiscal year opened to $1.05 billion as the fiscal year closed. Fund management
recounts the decisions behind the year's performance in the discussion that
begins on the following page.
Indeed, the fiscal year ended October 31 was a remarkable period in the equity
markets. Yet we feel compelled to remind shareholders that market cycles come
and go, and such performance as we have enjoyed in the past year is unlikely to
continue uninterrupted. At any time, equity markets are subject to downward
fluctuations and to shifts in the market sectors that are performing best.
In an effort to take advantage of the growth opportunities offered by stocks,
a long-term commitment such as a Summit Investors Plan employs consistent,
uninterrupted investing, instead of attempts to time the market. Historically,
equities have provided the best available long-term return on investment, and
investors who have maintained a long-range perspective have the greatest
potential to reap significant rewards over time. Of course, dollar-cost
averaging does not assure a profit and does not protect against loss in
declining markets. And since dollar-cost averaging involves continuous investing
regardless of fluctuating securities prices, investors should consider their
ability to continue purchases over an extended period of time.
Therefore, even as we relish the success of a good year, our focus is on the
year ahead. AIM's disciplined earnings-driven strategy is an ongoing evaluation
of market opportunity, and as the market continues to climb, our job becomes
even more challenging.
And, on a personal level, we all have good reason to look ahead. Clouds on the
horizon in the form of the budget debate over retirement benefits such as
Medicare and Social Security programs only accentuate the need to build your own
retirement nest egg, independent of any benefits that may--or may not--be
available to you when the time comes. For many in the baby boomer generation,
that's just 10 years away.
It is our hope that you continue to rely on AIM Summit Fund, Inc. to help you
build your financial future. As always, we are ready to respond to
your questions or comments about this report. Please call 800-995-4246 during
normal business hours.
Respectfully submitted,
/s/ CHARLES T. BAUER
Charles T. Bauer
Chairman
<PAGE>
Management's
Discussion & Analysis
CORPORATE EARNINGS PROPEL MARKETS TO
RECORD LEVELS
---------
The Fund's
technology
holdings migrated
from makers of
generic computer
chips to
companies that
produce more
sophisticated
capital equipment
---------
The cover of Money magazine's November 1994 Forecast Issue read, "Make 12% or
more in 1995". After the dismal stock market returns in 1994, 12% may have
sounded like euphoria to some. Little did we know.
Healthy corporate profits exceeded analysts' expectations and propelled stocks
through record highs in 1995. The strength was broad-based, resuscitating
large-capitalization stocks, which had been out of favor for three years. The
popular Dow Jones Industrial Average sailed past 4000 on February 23, 1995, and
then topped 5000 on November 21.
Spearheaded by the powerful technology stock advance, the broader NASDAQ
overtook its large-cap cousins in June of 1995 to finish the reporting period
well ahead of the pack.
The stars of the technology group were inarguably the semiconductor stocks. As
of June 30, 1995, semiconductor stocks were up an astonishing 94% in just six
months, according to Barron's. Other technology sectors were also strong, such
as aerospace and defense, software, and industrial technology companies. Also
strong were beneficiaries of stable interest rates such as banks and thrifts,
and consumer cyclical stocks in airlines, leisure and recreation companies, and
restaurants.
In September and October, the market took a well-deserved respite as concern
surfaced that third-quarter 1995 earnings reports, particularly in the
technology group, would fall below expectations. Some earnings disappointment
in big names such as Intel, Microsoft, Nokia, and IBM initiated profit-taking,
which temporarily suspended the market's advance. Of the companies reporting
earnings in the third quarter of 1995, I/B/E/S International Inc. reported in
The Wall Street Journal that 55% were higher than analysts' expectations, with
14% on target, and 31% below expectations. These results compared favorably with
second-quarter reports, of which 57% exceeded expectations and 30% were below
target.
With investor confidence renewed, at least for the near term, the market
gathered strength for its next advance. Focus turned from corporate earnings to
the growing gridlock in Congress over the proposals to balance the burgeoning
budget. The Federal Reserve Board declined to implement its much anticipated
interest rate cut pending some positive resolution to the budget debate.
YOUR INVESTMENT PORTFOLIO
One quick glance at the Fund's top 10 holdings confirms a successful theme for
AIM Summit Fund, Inc. during the reporting period. Certain technology companies,
which make up roughly 35% of the Fund's holdings, continue to offer outstanding
value as expanding market penetration and product innovations have propelled
many technology stocks to unprecedented levels.
Near the end of the fiscal year, however, a reduced weighting in the
technology sector was accomplished through the Fund's usual discipline of
choosing equities to purchase or sell one stock at a time on the basis of
reported earnings information. Because of lower-than-expected earnings reports
from several technology companies, including Motorola and Silicon Graphics, Fund
management reduced or eliminated holdings of those stocks.
In addition, the Fund's technology holdings migrated from makers of generic
computer chips to companies that produce more sophisticated capital equipment
such as Ultratech Stepper, Inc. A stepper is a machine that imprints circuits on
silicon wafers, and Ultratech's stepper is about half as expensive as rival
machines.
- --------------------------------------------------------------------------------
TOP 10 EQUITIES (as of 10/31/95) TOP 10 INDUSTRIES (as of 10/31/95)
- -------------------------------- ----------------------------------
1. APPLIED MATERIALS, INC. 1. SEMICONDUCTORS
2. COMPUTER ASSOCIATES INTERNATIONAL, INC. 2. COMPUTER SOFTWARE/SERVICES
3. TEXAS INSTRUMENTS INC. 3. MEDICAL (PATIENT SERVICES)
4. MICRON TECHNOLOGY INC. 4. MEDICAL (DRUGS)
5. DELL COMPUTER CORP. 5. RETAIL (STORES)
6. HEWLETT-PACKARD CO. 6. COMPUTER NETWORKING
7. CISCO SYSTEMS, INC. 7. TELECOMMUNICATIONS
8. 3COM CORP. 8. FINANCE (CONSUMER CREDIT)
9. NIKE, INC. 9. COMPUTER MINI/PCS
10. IBP, INC. 10. OIL & GAS SERVICES
- --------------------------------------------------------------------------------
See important Fund disclosure inside front cover.
2
<PAGE>
Financials
The Fund did not invest exclusively in technology companies, an advantage
which improved the Fund's resilience to market pressures when the sector was
periodically subject to profit-taking. The Fund's earnings-driven strategy
uncovered value in two other key areas: health care and financial stocks.
Three continuing profit drivers for the health-care sector seem to be: an
aging baby-boomer population, improving cost containment, and anticipation of
universal coverage for all. The Fund chose to address these themes by
emphasizing those companies most likely to benefit from these trends. Nursing
homes should service an increasing number of patients over time; and makers of
medical instruments and devices help improve overall efficiencies for
caregivers. Health maintenance organizations, hospitals; and medical services
distributors are beginning to reap benefits from ongoing cost-containment
campaigns.
Firms that enhance productivity in this industry have produced especially
attractive returns. For example, pharmaceutical advances and improved devices
can lower the intrusiveness of medical procedures, thereby shortening the length
of hospital stays. The Fund holds several significant pharmaceutical firms,
including Merck & Co., and Pfizer Inc.
The financial sector has been enjoying the declining interest rates that have
existed since the Federal Reserve Board completed its year-long run-up of
short-term rates early in 1995. Non-bank financial companies have been
especially attractive, including such brokerage/financial services firms as
American Express and Dean Witter.
The Fund also profited from certain special situations that arose during the
fiscal year. As an owner of Chase Manhattan stock, your Fund benefited from the
Chase-Chemical Bank merger, while a position in Cordis Corp. allowed the Fund to
benefit from that firm's takeover by Johnson & Johnson late in 1995.
As of October 31, 1995, the Fund's diversified portfolio was composed of 233
holdings. Of course, the portfolio's composition is subject to change, and there
is no guarantee the Fund will continue to hold any individual security.
OUTLOOK FOR THE FUTURE
At this writing, the market has surpassed the Dow 5000 level. Yet many analysts
maintain that this aging bull market--the Dow has gone a record 61 months
without experiencing a 10% correction--may have plenty of steam left. Barron's
recently reported analysts' estimates that projected the Dow well past 5500
during the coming year.
Of course, a significant complement of market strategists also believe a
correction is due.
Rather than make any projections of future market performance, AIM remains
committed to its disciplined investment strategy, which helps us determine, on a
company-by-company basis, which stocks to own and which to sell--without the
guesswork of market timing.
- --------------------------------------------------------------------------------
FUND STRATEGY STRESSES DIVERSIFICATION
With 233 securities at the end of the fiscal year, AIM Summit Fund, Inc.'s
portfolio suits AIM's model for a diversified equity portfolio. This
diversification seeks to reduce investment risk. With many securities in a
portfolio, if the performance of one holding lags, it has less impact on the
performance of the portfolio as a whole.
This diversification strategy enables Planholders to participate in all
sectors of the stock market. AIM Summit Fund, Inc. invests primarily in:
* stocks of companies with a long-term record of growth; these tend to be large,
well-established firms.
* stocks of small, emerging companies that show promise of future growth.
* stocks that are currently underpriced in the market and therefore have the
potential to realize significant capital appreciation.
In addition, up to 20% of AIM Summit Fund's holdings may be foreign
securities. This further diversifies the Fund into equity markets that sometimes
move in the opposite direction to the American stock market.
- --------------------------------------------------------------------------------
See important Fund disclosure inside front cover.
3
<PAGE>
Long-Term
Performance
GROWTH OF A $10,000 INVESTMENT
AVERAGE ANNUAL TOTAL RETURNS
for periods ended October 31, 1995
10 Years 14.13%
5 Years 16.63
1 Year 19.90
<TABLE>
<CAPTION>
AIM Summit Lipper Growth
Date Fund, Inc. S&P 500 & Income
- ---- ---------- ------- -------------
<S> <C> <C> <C>
10/85 $10,000 $10,000 $10,000
10/86 13,053 13,315 12,931
10/87 12,412 14,159 13,034
10/88 14,490 16,259 15,024
10/89 18,109 20,531 18,821
10/90 17,374 18,988 16,405
10/91 24,631 25,350 23,082
10/92 26,727 27,866 24,884
10/93 31,076 32,015 29,607
10/94 31,266 33,253 30,211
10/95 40,970 42,108 37,456
Past performance cannot guarantee comparable future results.
</TABLE>
This graph is for illustrative purposes only. Since shares of AIM Summit Fund,
Inc. are offered to and may be purchased by the general public only through
Summit Investors Plans, a unit investment trust, a $10,000 lump-sum investment
cannot be made. One-, five-, and 10-year average total returns reflect deduction
of the maximum 8.50% sales charge, which is attributable to the 15-year
investment plan.
The unmanaged Lipper Growth Fund Index represents an average of the
performance of the 30 largest growth funds charted by Lipper Analytical
Services, Inc., an independent mutual funds performance monitor.
The Standard & Poor's 500 (S&P 500) is a group of unmanaged securities widely
regarded by investors to be representative of the stock market in general.
An investment cannot be made in any indexes listed. Unless otherwise
indicated, index results include reinvested dividends and do not reflect sales
charges.
4
<PAGE>
Financials
SCHEDULE OF INVESTMENTS
October 31, 1995
<TABLE>
<C> <S> <C>
SHARES MARKET VALUE
COMMON STOCKS - 95.57%
ADVERTISING/BROADCASTING - 0.16%
52,500 Infinity Broadcasting Corp.(a) $ 1,706,250
- ------------------------------------------------------------------
AEROSPACE/DEFENSE - 1.26%
40,000 Boeing Co. (The) 2,625,000
- ------------------------------------------------------------------
110,000 McDonnell Douglas Corp. 8,992,500
- ------------------------------------------------------------------
18,000 United Technologies Corp. 1,597,500
- ------------------------------------------------------------------
13,215,000
- ------------------------------------------------------------------
AIRLINES - 1.00%
60,000 United Airlines Corp. 10,552,500
- ------------------------------------------------------------------
APPLIANCES - 0.50%
120,000 Newell Co. 2,895,000
- ------------------------------------------------------------------
50,000 Premark International Inc. 2,312,500
- ------------------------------------------------------------------
5,207,500
- ------------------------------------------------------------------
AUTOMOBILE/TRUCKS PARTS & TIRES - 0.34%
100,000 Echlin Inc. 3,575,000
- ------------------------------------------------------------------
BANKING - 2.78%
180,000 Bank of New York Co., Inc. 7,560,000
- ------------------------------------------------------------------
83,800 Chase Manhattan Corp. 4,776,600
- ------------------------------------------------------------------
220,000 Corestates Financial Corp. 8,002,500
- ------------------------------------------------------------------
100,000 Southern National Corp. 2,575,000
- ------------------------------------------------------------------
30,000 Wells Fargo & Co. 6,303,750
- ------------------------------------------------------------------
29,217,850
- ------------------------------------------------------------------
BEVERAGES - 0.63%
125,000 PepsiCo Inc. 6,593,750
- ------------------------------------------------------------------
BUILDING MATERIALS - 0.59%
110,000 Black & Decker Corp. 3,726,250
- ------------------------------------------------------------------
30,000 Georgia-Pacific Corp. 2,475,000
- ------------------------------------------------------------------
6,201,250
- ------------------------------------------------------------------
BUSINESS SERVICES - 1.92%
80,000 Equifax, Inc. 3,120,000
- ------------------------------------------------------------------
125,100 Healthcare COMPARE Corp.(a) 4,628,700
- ------------------------------------------------------------------
200,000 Manpower Inc. 5,425,000
- ------------------------------------------------------------------
116,800 Olsten Corp. 4,496,800
- ------------------------------------------------------------------
107,750 Value Health, Inc.(a) 2,464,782
- ------------------------------------------------------------------
20,135,282
- ------------------------------------------------------------------
</TABLE>
5
<PAGE>
Financials
<TABLE>
<C> <S> <C>
SHARES MARKET VALUE
CHEMICALS - 0.74%
130,000 Eastman Chemical Co. $ 7,735,000
- ------------------------------------------------------------------
CHEMICALS (SPECIALTY) - 0.36%
55,100 Airgas Inc.(a) 1,467,037
- ------------------------------------------------------------------
41,000 W.R. Grace & Co. 2,285,750
- ------------------------------------------------------------------
3,752,787
- ------------------------------------------------------------------
COMPUTER MINI/PCS - 3.77%
163,000 COMPAQ Computer Corp.(a) 9,087,250
- ------------------------------------------------------------------
262,000 Dell Computer Corp.(a) 12,215,750
- ------------------------------------------------------------------
130,000 Hewlett-Packard Co. 12,041,250
- ------------------------------------------------------------------
80,000 Sun Microsystems, Inc.(a) 6,240,000
- ------------------------------------------------------------------
39,584,250
- ------------------------------------------------------------------
COMPUTER NETWORKING - 4.16%
148,000 Bay Networks, Inc.(a) 9,805,000
- ------------------------------------------------------------------
80,000 Cabletron Systems, Inc.(a) 6,290,000
- ------------------------------------------------------------------
152,800 Cisco Systems, Inc.(a) 11,842,000
- ------------------------------------------------------------------
35,800 Madge, N.V.(a) 1,499,125
- ------------------------------------------------------------------
41,000 Network Equipment Technologies, Inc.(a) 1,337,625
- ------------------------------------------------------------------
37,800 Optical Data Systems, Inc.(a) 1,129,275
- ------------------------------------------------------------------
250,000 3Com Corp.(a) 11,750,000
- ------------------------------------------------------------------
43,653,025
- ------------------------------------------------------------------
COMPUTER PERIPHERALS - 2.51%
129,000 Adaptec Inc.(a) 5,740,500
- ------------------------------------------------------------------
82,800 Alliance Semiconductor Corp.(a) 2,546,100
- ------------------------------------------------------------------
58,000 Digi International, Inc.(a) 1,551,500
- ------------------------------------------------------------------
76,400 Microchip Technology, Inc.(a) 3,032,125
- ------------------------------------------------------------------
35,000 Oak Technology, Inc.(a) 1,916,250
- ------------------------------------------------------------------
125,000 Oracle Systems Corp.(a) 5,453,125
- ------------------------------------------------------------------
70,000 Read-Rite Corp.(a) 2,441,250
- ------------------------------------------------------------------
40,000 U.S. Robotics, Inc.(a) 3,700,000
- ------------------------------------------------------------------
26,380,850
- ------------------------------------------------------------------
</TABLE>
6
<PAGE>
Financials
<TABLE>
<C> <S> <C>
SHARES MARKET VALUE
COMPUTER SOFTWARE/SERVICES - 7.35%
75,000 Acclaim Entertainment, Inc.(a) $ 1,771,875
- ------------------------------------------------------------------
74,800 Adobe Systems, Inc. 4,263,600
- ------------------------------------------------------------------
132,000 BMC Software, Inc.(a) 4,702,500
- ------------------------------------------------------------------
22,300 Broderbund Software, Inc.(a) 1,547,062
- ------------------------------------------------------------------
196,350 Cadence Design Systems, Inc.(a) 6,332,288
- ------------------------------------------------------------------
250,000 Computer Associates International, Inc. 13,750,000
- ------------------------------------------------------------------
150,000 Computervision Corp.(a) 1,762,500
- ------------------------------------------------------------------
85,000 Electronic Arts, Inc.(a) 3,113,125
- ------------------------------------------------------------------
45,000 Fiserv, Inc.(a) 1,158,750
- ------------------------------------------------------------------
54,600 FTP Software, Inc. 1,474,200
- ------------------------------------------------------------------
60,000 HBO & Co. 4,245,000
- ------------------------------------------------------------------
100,600 Informix Corp.(a) 2,929,975
- ------------------------------------------------------------------
40,000 Intuit(a) 2,880,000
- ------------------------------------------------------------------
72,000 Mentor Graphics Corp.(a) 1,512,000
- ------------------------------------------------------------------
37,000 Microsoft Corp.(a) 3,700,000
- ------------------------------------------------------------------
50,000 PairGain Technologies, Inc.(a) 2,137,500
- ------------------------------------------------------------------
70,000 Parametric Technology Corp.(a) 4,681,250
- ------------------------------------------------------------------
88,600 Policy Management Systems Corp.(a) 4,175,275
- ------------------------------------------------------------------
25,000 Rational Software Corp.(a) 390,625
- ------------------------------------------------------------------
51,400 SoftKey International Inc.(a) 1,619,100
- ------------------------------------------------------------------
54,400 Sterling Software, Inc.(a) 2,509,200
- ------------------------------------------------------------------
85,100 Symantec Corp.(a) 2,068,993
- ------------------------------------------------------------------
120,000 Synopsys, Inc.(a) 4,500,000
- ------------------------------------------------------------------
77,224,818
- ------------------------------------------------------------------
CONGLOMERATES - 1.48%
110,000 Du Pont (E.I.) de Nemours & Co. 6,861,250
- ------------------------------------------------------------------
90,000 TRW Inc. 5,917,500
- ------------------------------------------------------------------
45,300 Tyco International Ltd. 2,751,975
- ------------------------------------------------------------------
15,530,725
- ------------------------------------------------------------------
CONTAINERS - 0.18%
69,200 Ball Corp. 1,911,650
- ------------------------------------------------------------------
COSMETICS & TOILETRIES - 0.52%
106,000 General Nutrition, Inc.(a) 2,636,750
- ------------------------------------------------------------------
22,000 Gillette Co. (The) 1,064,250
- ------------------------------------------------------------------
22,000 Procter & Gamble Co. 1,782,000
- ------------------------------------------------------------------
5,483,000
- ------------------------------------------------------------------
</TABLE>
7
<PAGE>
Financials
<TABLE>
<C> <S> <C>
SHARES MARKET VALUE
ELECTRONIC COMPONENTS/MISCELLANEOUS - 2.73%
76,000 Anixter International, Inc.(a) $ 1,453,500
- -------------------------------------------------------------------------
11,100 AVX Corp. 345,488
- -------------------------------------------------------------------------
255,000 Parker-Hannifin Corp. 8,606,250
- -------------------------------------------------------------------------
49,800 Philips Electronics N.V. - New York Shares-ADR 1,923,525
- -------------------------------------------------------------------------
39,200 Symbol Technologies, Inc.(a) 1,367,100
- -------------------------------------------------------------------------
80,100 Tektronix, Inc. 4,745,925
- -------------------------------------------------------------------------
305,800 Teradyne, Inc.(a) 10,206,075
- -------------------------------------------------------------------------
28,647,863
- -------------------------------------------------------------------------
ELECTRONIC/PC DISTRIBUTORS - 0.96%
125,000 Arrow Electronics, Inc(a) 6,343,750
- -------------------------------------------------------------------------
75,000 Avnet, Inc. 3,778,125
- -------------------------------------------------------------------------
10,121,875
- -------------------------------------------------------------------------
FINANCE (CONSUMER CREDIT) - 3.80%
50,000 American Express Co. 2,031,250
- -------------------------------------------------------------------------
125,000 Countrywide Credit Industries, Inc. 2,765,625
- -------------------------------------------------------------------------
80,200 Credit Acceptance Corp. 1,884,700
- -------------------------------------------------------------------------
52,000 Dean Witter Discover & Co. 2,587,000
- -------------------------------------------------------------------------
65,000 Federal Home Loan Mortgage Corp. 4,501,250
- -------------------------------------------------------------------------
3,600 Federal National Mortgage Association 377,550
- -------------------------------------------------------------------------
120,000 First USA, Inc. 5,520,000
- -------------------------------------------------------------------------
233,800 Green Tree Acceptance, Inc. 6,224,925
- -------------------------------------------------------------------------
183,800 MBNA Corp. 6,777,625
- -------------------------------------------------------------------------
92,000 Medaphis Corp.(a) 2,921,000
- -------------------------------------------------------------------------
130,000 Mercury Finance Co. 2,502,500
- -------------------------------------------------------------------------
30,000 Student Loan Marketing Association 1,766,250
- -------------------------------------------------------------------------
39,859,675
- -------------------------------------------------------------------------
FOOD PROCESSING - 1.32%
40,000 ConAgra, Inc. 1,545,000
- -------------------------------------------------------------------------
180,000 IBP, Inc. 10,777,500
- -------------------------------------------------------------------------
47,600 Lancaster Colony Corp. 1,582,700
- -------------------------------------------------------------------------
13,905,200
- -------------------------------------------------------------------------
FUNERAL SERVICES - 0.91%
88,700 Loewen Group, Inc. 3,552,160
- -------------------------------------------------------------------------
150,000 Service Corp. International 6,018,750
- -------------------------------------------------------------------------
9,570,910
- -------------------------------------------------------------------------
</TABLE>
8
<PAGE>
Financials
<TABLE>
<C> <S> <C>
SHARES MARKET VALUE
HOTELS/MOTELS - 0.82%
90,000 Hospitality Franchise Systems, Inc.(a) $ 5,512,500
- ------------------------------------------------------------------
119,000 La Quinta Motor Inns, Inc. 3,064,250
- ------------------------------------------------------------------
8,576,750
- ------------------------------------------------------------------
INSURANCE (MULTI-LINE PROPERTY) - 1.13%
85,000 ACE, Ltd. 2,890,000
- ------------------------------------------------------------------
90,000 CIGNA Corp. 8,921,250
- ------------------------------------------------------------------
11,811,250
- ------------------------------------------------------------------
LEISURE & RECREATION - 1.47%
39,800 Avid Technology, Inc.(a) 1,741,250
- ------------------------------------------------------------------
113,900 Carnival Cruise Lines, Inc. 2,648,175
- ------------------------------------------------------------------
130,000 Eastman Kodak Co. 8,141,250
- ------------------------------------------------------------------
100,000 Mattel, Inc. 2,875,000
- ------------------------------------------------------------------
15,405,675
- ------------------------------------------------------------------
MACHINE TOOLS - 0.10%
35,000 Kennametal Inc. 1,089,375
- ------------------------------------------------------------------
MACHINERY (HEAVY) - 0.95%
55,200 Case Corp. 2,104,500
- ------------------------------------------------------------------
200,000 Dover Corp. 7,900,000
- ------------------------------------------------------------------
10,004,500
- ------------------------------------------------------------------
MACHINERY (MISCELLANEOUS) - 1.02%
180,000 American Standard, Inc.(a) 4,815,000
- ------------------------------------------------------------------
127,500 Thermo Electron Corp.(a) 5,865,000
- ------------------------------------------------------------------
10,680,000
- ------------------------------------------------------------------
MEDICAL (DRUGS) - 5.32%
65,000 Abbott Laboratories 2,583,750
- ------------------------------------------------------------------
50,000 American Home Products Corp. 4,431,250
- ------------------------------------------------------------------
53,000 Amerisource Healthcorp(a) 1,444,250
- ------------------------------------------------------------------
141,000 Bristol-Meyers Squibb Co. 10,751,250
- ------------------------------------------------------------------
113,000 Cardinal Health, Inc. 5,805,375
- ------------------------------------------------------------------
32,300 Elan Corp., PLC - ADR(a) 1,296,038
- ------------------------------------------------------------------
15,600 Forest Laboratories, Inc.(a) 645,450
- ------------------------------------------------------------------
35,000 Johnson & Johnson 2,852,500
- ------------------------------------------------------------------
83,700 Mallinckrodt Group, Inc. 2,908,575
- ------------------------------------------------------------------
27,000 Merck & Co., Inc. 1,552,500
- ------------------------------------------------------------------
230,900 Mylan Laboratories, Inc. 4,387,100
- ------------------------------------------------------------------
50,000 Pfizer Inc. 2,868,750
- ------------------------------------------------------------------
125,000 Schering-Plough Corp. 6,703,125
- ------------------------------------------------------------------
150,000 Upjohn Co. 7,612,500
- ------------------------------------------------------------------
55,842,413
- ------------------------------------------------------------------
</TABLE>
9
<PAGE>
Financials
<TABLE>
<C> <S> <C>
SHARES MARKET VALUE
MEDICAL (INSTRUMENTS/PRODUCTS) - 2.92%
27,500 Becton, Dickinson and Co. $ 1,787,500
- -----------------------------------------------------------------------
156,700 Biomet Inc.(a) 2,605,138
- -----------------------------------------------------------------------
140,300 Boston Scientific Corp.(a) 5,910,138
- -----------------------------------------------------------------------
30,000 Cordis Corp.(a) 3,315,000
- -----------------------------------------------------------------------
50,000 Medtronic, Inc. 2,887,500
- -----------------------------------------------------------------------
45,500 Nellcor Puritan Bennett, Inc.(a) 2,616,250
- -----------------------------------------------------------------------
65,100 St. Jude Medical, Inc.(a) 3,466,575
- -----------------------------------------------------------------------
330,000 United States Surgical Corp. 8,085,000
- -----------------------------------------------------------------------
30,673,101
- -----------------------------------------------------------------------
MEDICAL (PATIENT SERVICES) - 6.29%
126,000 Apria Healthcare Group, Inc.(a) 2,724,750
- -----------------------------------------------------------------------
182,800 Columbia/HCA Healthcare Corp. 8,980,050
- -----------------------------------------------------------------------
42,400 Community Health Systems, Inc.(a) 1,346,200
- -----------------------------------------------------------------------
90,000 Health Care & Retirement Corp.(a) 2,643,750
- -----------------------------------------------------------------------
180,000 Health Management Associates, Inc.(a) 3,870,000
- -----------------------------------------------------------------------
116,200 Healthsource, Inc.(a) 6,158,600
- -----------------------------------------------------------------------
381,100 Healthsouth Rehabilitation Corp.(a) 9,956,238
- -----------------------------------------------------------------------
74,300 Horizon Healthcare Corp.(a) 1,504,575
- -----------------------------------------------------------------------
76,600 Integrated Health Services, Inc. 1,752,225
- -----------------------------------------------------------------------
158,000 Lincare Holdings Inc.(a) 3,930,250
- -----------------------------------------------------------------------
43,200 Living Centers of America, Inc.(a) 1,117,800
- -----------------------------------------------------------------------
88,000 Manor Care, Inc. 2,882,000
- -----------------------------------------------------------------------
42,600 Omnicare Inc. 1,544,250
- -----------------------------------------------------------------------
130,000 OrNda HealthCorp(a) 2,291,250
- -----------------------------------------------------------------------
40,000 Oxford Health Plans, Inc.(a) 3,130,000
- -----------------------------------------------------------------------
17,000 Pacificare Health Systems, Inc. - Class A(a) 1,198,500
- -----------------------------------------------------------------------
129,000 Sybron International Corp.(a) 5,482,500
- -----------------------------------------------------------------------
200,000 Vencor, Inc.(a) 5,550,000
- -----------------------------------------------------------------------
66,062,938
- -----------------------------------------------------------------------
METALS - 2.30%
160,000 Aluminum Co. of America 8,160,000
- -----------------------------------------------------------------------
133,400 Illinois Tool Works, Inc. 7,753,875
- -----------------------------------------------------------------------
130,000 Phelps-Dodge Corp. 8,238,750
- -----------------------------------------------------------------------
24,152,625
- -----------------------------------------------------------------------
NATURAL GAS PIPELINE - 0.74%
200,000 Williams Companies, Inc. (The) 7,725,000
- -----------------------------------------------------------------------
</TABLE>
10
<PAGE>
Financials
<TABLE>
<C> <S> <C>
SHARES MARKET VALUE
OFFICE AUTOMATION - 0.97%
147,600 Danka Business Systems PLC - ADR $ 4,944,600
- ------------------------------------------------------------
40,000 Xerox Corp. 5,190,000
- ------------------------------------------------------------
10,134,600
- ------------------------------------------------------------
OFFICE PRODUCTS - 0.52%
51,500 Avery-Dennison Corp. 2,304,625
- ------------------------------------------------------------
89,300 Reynolds & Reynolds Co. - Class A 3,181,312
- ------------------------------------------------------------
5,485,937
- ------------------------------------------------------------
OIL & GAS (SERVICES) - 2.99%
70,000 Atlantic Richfield Co. 7,472,500
- ------------------------------------------------------------
80,000 British Petroleum Co. PLC - ADR 7,060,000
- ------------------------------------------------------------
120,000 Exxon Corp. 9,165,000
- ------------------------------------------------------------
360,000 Occidental Petroleum Corp. 7,740,000
- ------------------------------------------------------------
31,437,500
- ------------------------------------------------------------
OIL EQUIPMENT & SUPPLIES - 0.75%
190,000 Halliburton Co. 7,885,000
- ------------------------------------------------------------
PAPER & FOREST PRODUCTS - 0.76%
150,000 Bowater, Inc. 6,637,500
- ------------------------------------------------------------
25,000 Champion International Corp. 1,337,500
- ------------------------------------------------------------
7,975,000
- ------------------------------------------------------------
PUBLISHING - 0.13%
35,300 Harcourt General, Inc. 1,398,763
- ------------------------------------------------------------
RESTAURANTS - 0.26%
88,500 Outback Steakhouse, Inc.(a) 2,776,687
- ------------------------------------------------------------
RETAIL (FOOD & DRUG) - 1.90%
70,800 Eckerd Corp.(a) 2,805,450
- ------------------------------------------------------------
78,000 Hannaford Bros. Co. 2,037,750
- ------------------------------------------------------------
169,200 Kroger Co.(a) 5,647,050
- ------------------------------------------------------------
200,000 Safeway Inc.(a) 9,450,000
- ------------------------------------------------------------
19,940,250
- ------------------------------------------------------------
RETAIL (STORES) - 4.57%
125,000 AutoZone, Inc.(a) 3,093,750
- ------------------------------------------------------------
29,400 Baby Superstore, Inc.(a) 1,389,150
- ------------------------------------------------------------
49,700 Bed, Bath & Beyond, Inc.(a) 1,553,125
- ------------------------------------------------------------
154,000 Circuit City Stores, Inc. 5,139,750
- ------------------------------------------------------------
182,000 Consolidated Stores Corp.(a) 4,208,750
- ------------------------------------------------------------
106,100 Dollar General Corp. 2,599,450
- ------------------------------------------------------------
103,000 Gap, Inc. (The) 4,055,625
- ------------------------------------------------------------
</TABLE>
11
<PAGE>
Financials
<TABLE>
<C> <S> <C>
SHARES MARKET VALUE
Retail (Stores) - continued
109,800 Gymboree Corp.(a) $ 2,484,225
- ---------------------------------------------------------------
60,000 Heilig Meyers Co. 1,102,500
- ---------------------------------------------------------------
25,000 Kohl's Corp.(a) 1,134,375
- ---------------------------------------------------------------
57,200 Micro Warehouse, Inc.(a) 2,545,400
- ---------------------------------------------------------------
123,800 Office Depot, Inc.(a) 3,543,775
- ---------------------------------------------------------------
97,100 Sports Authority, Inc. (The)(a) 2,111,925
- ---------------------------------------------------------------
150,000 Staples, Inc.(a) 3,993,750
- ---------------------------------------------------------------
62,000 Talbots, Inc. 1,503,500
- ---------------------------------------------------------------
35,100 Tandy Corp. 1,733,062
- ---------------------------------------------------------------
129,900 Viking Office Products Inc.(a) 5,780,550
- ---------------------------------------------------------------
47,972,662
- ---------------------------------------------------------------
SCIENTIFIC INSTRUMENTS - 0.66%
135,000 Varian Associates, Inc. 6,935,625
- ---------------------------------------------------------------
SEMICONDUCTORS - 13.71%
147,000 Altera Corp.(a) 8,893,500
- ---------------------------------------------------------------
240,000 Analog Devices Inc.(a) 8,670,000
- ---------------------------------------------------------------
300,000 Applied Materials, Inc.(a) 15,037,500
- ---------------------------------------------------------------
35,600 ASM Lithography Holding(a) 1,766,650
- ---------------------------------------------------------------
221,200 Atmel Corp.(a) 6,912,500
- ---------------------------------------------------------------
85,300 Cirrus Logic, Inc.(a) 3,593,262
- ---------------------------------------------------------------
150,000 Cypress Semiconductor Corp.(a) 5,287,500
- ---------------------------------------------------------------
200,000 Integrated Device Technology, Inc.(a) 3,800,000
- ---------------------------------------------------------------
50,000 Intel Corp. 3,493,750
- ---------------------------------------------------------------
138,000 KLA Instruments Corp.(a) 5,899,500
- ---------------------------------------------------------------
146,000 LAM Research Corp.(a) 8,887,750
- ---------------------------------------------------------------
133,000 Linear Technology Corp. 5,818,750
- ---------------------------------------------------------------
200,000 LSI Logic Corp.(a) 9,425,000
- ---------------------------------------------------------------
27,900 Maxim Integrated Products, Inc.(a) 2,085,525
- ---------------------------------------------------------------
185,000 Micron Technology Inc. 13,065,625
- ---------------------------------------------------------------
25,000 Motorola, Inc. 1,640,625
- ---------------------------------------------------------------
60,000 National Semiconductor Corp.(a) 1,462,500
- ---------------------------------------------------------------
65,000 Novellus Systems, Inc.(a) 4,476,875
- ---------------------------------------------------------------
105,000 Solectron Corp.(a) 4,226,250
- ---------------------------------------------------------------
33,800 Tencor Instruments(a) 1,440,725
- ---------------------------------------------------------------
200,000 Texas Instruments Inc. 13,650,000
- ---------------------------------------------------------------
2,200 Ultratech Stepper, Inc.(a) 88,000
- ---------------------------------------------------------------
74,000 Vishay Intertechnology, Inc.(a) 2,608,500
- ---------------------------------------------------------------
170,000 VLSI Technology Inc.(a) 3,995,000
- ---------------------------------------------------------------
168,000 Xilinx, Inc.(a) 7,728,000
- ---------------------------------------------------------------
143,953,287
- ---------------------------------------------------------------
</TABLE>
12
<PAGE>
Financials
<TABLE>
<C> <S> <C>
SHARES MARKET VALUE
SHOES & RELATED APPAREL - 1.24%
194,000 NIKE Inc. - Class B $ 11,009,500
- -----------------------------------------------------------------
45,000 Nine West Group, Inc.(a) 2,002,500
- -----------------------------------------------------------------
13,012,000
- -----------------------------------------------------------------
TELECOMMUNICATIONS - 3.82%
46,000 ADC Telecommunications, Inc.(a) 1,840,000
- -----------------------------------------------------------------
43,200 Allen Group, Inc. 1,058,400
- -----------------------------------------------------------------
100,000 A T & T Corp. 6,400,000
- -----------------------------------------------------------------
38,600 DSC Communications Corp.(a) 1,428,200
- -----------------------------------------------------------------
39,400 Glenayre Technologies, Inc.(a) 2,531,450
- -----------------------------------------------------------------
77,800 Nokia Corp - ADR 4,337,350
- -----------------------------------------------------------------
74,100 Northern Telecom Ltd. 2,667,600
- -----------------------------------------------------------------
39,000 Octel Communications Corp.(a) 1,330,875
- -----------------------------------------------------------------
100,000 Scientific-Atlanta Inc. 1,237,500
- -----------------------------------------------------------------
28,200 StrataCom, Inc.(a) 1,734,300
- -----------------------------------------------------------------
440,000 Telefonaktiebolaget L.M. Ericsson - ADR 9,398,136
- -----------------------------------------------------------------
104,000 Tellabs, Inc.(a) 3,536,000
- -----------------------------------------------------------------
10,800 Transpro, Inc.(a) 118,800
- -----------------------------------------------------------------
75,000 WorldCom, Inc.(a) 2,446,875
- -----------------------------------------------------------------
40,065,486
- -----------------------------------------------------------------
TELEPHONE - 0.26%
91,600 Cincinnati Bell, Inc. 2,690,750
- -----------------------------------------------------------------
Total Common Stocks 1,003,453,184
- -----------------------------------------------------------------
PRINCIPAL
AMOUNT
REPURCHASE AGREEMENT - 4.51%(b)
$47,390,469 Daiwa Securities America Inc.,
5.90%, 11/01/95(c) 47,390,469
- -----------------------------------------------------------------
TOTAL INVESTMENTS - 100.08% 1,050,843,653
- -----------------------------------------------------------------
OTHER ASSETS LESS
LIABILITIES - (0.08)% (833,028)
- -----------------------------------------------------------------
NET ASSETS - 100.00% $1,050,010,625
=================================================================
</TABLE>
NOTES TO SCHEDULE OF INVESTMENTS:
(a) Non-income producing security.
(b) Collateral on repurchase agreements, including the Fund's pro-rata interest
in joint repurchase agreements, is taken into possession by the Fund upon
entering into the repurchase agreement. The collateral is marked to market
daily to ensure its market value as being 102 percent of the sales price of
the repurchase agreement. The investments in some repurchase agreements are
through participation in joint accounts with other mutual funds managed by
the investment advisor.
(c) Joint repurchase agreement entered into 10/31/95 with a maturing value of
$401,494,601. Collateralized by $353,853,000 U.S. Treasury obligations,
8.375% due 08/15/08.
See Notes to Financial Statements.
13
<PAGE>
Financials
STATEMENT OF ASSETS AND LIABILITIES
October 31, 1995
<TABLE>
<S> <C>
ASSETS:
Investments, at market value (cost $793,642,038) $1,050,843,653
- ----------------------------------------------------------------
Receivables for:
Investments sold 5,166,766
- ----------------------------------------------------------------
Capital stock sold 22,658
- ----------------------------------------------------------------
Dividends and interest 529,136
- ----------------------------------------------------------------
Investment for deferred compensation plan 12,412
- ----------------------------------------------------------------
Other assets 6,626
- ----------------------------------------------------------------
Total assets 1,056,581,251
- ----------------------------------------------------------------
LIABILITIES:
Payables for:
Investments purchased 5,596,600
- ----------------------------------------------------------------
Capital stock reacquired 154,167
- ----------------------------------------------------------------
Deferred compensation 12,412
- ----------------------------------------------------------------
Accrued advisory fees 571,703
- ----------------------------------------------------------------
Accrued accounting service fees 4,900
- ----------------------------------------------------------------
Accrued directors' fees 967
- ----------------------------------------------------------------
Accrued operating expenses 229,877
- ----------------------------------------------------------------
Total liabilities 6,570,626
- ----------------------------------------------------------------
Net assets applicable to shares outstanding $1,050,010,625
================================================================
CAPITAL SHARES, $.01 PAR VALUE PER SHARE:
Authorized 1,000,000,000
- ----------------------------------------------------------------
Outstanding 86,480,005
================================================================
Net asset value and redemption price per share $ 12.14
================================================================
</TABLE>
See Notes to Financial Statements.
14
<PAGE>
Financials
STATEMENT OF OPERATIONS
For the year ended October 31, 1995
<TABLE>
<S> <C>
INVESTMENT INCOME:
Dividends $ 8,058,735
- --------------------------------------------------------------------
Interest 1,150,005
- --------------------------------------------------------------------
Total investment income 9,208,740
- --------------------------------------------------------------------
EXPENSES:
Advisory fees 5,719,169
- --------------------------------------------------------------------
Custodian fees 126,109
- --------------------------------------------------------------------
Transfer agent fees 23,419
- --------------------------------------------------------------------
Accounting service fees 60,994
- --------------------------------------------------------------------
Directors' fees 12,048
- --------------------------------------------------------------------
Other 337,963
- --------------------------------------------------------------------
Total expenses 6,279,702
- --------------------------------------------------------------------
Net investment income 2,929,038
- --------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN ON INVESTMENT SECURITIES:
Net realized gain on sales of investment securities 74,322,239
- --------------------------------------------------------------------
Net unrealized appreciation of investment securities 169,626,929
- --------------------------------------------------------------------
Net gain on investment securities 243,949,168
- --------------------------------------------------------------------
Net increase in net assets resulting from operations $246,878,206
====================================================================
</TABLE>
See Notes to Financial Statements.
15
<PAGE>
Financials
STATEMENT OF CHANGES IN NET ASSETS
For the years ended October 31, 1995 and 1994
<TABLE>
<CAPTION>
1995 1994
<S> <C> <C>
OPERATIONS:
Net investment income $ 2,929,038 $ 7,489,641
- ------------------------------------------------------------------------------
Net realized gain on sales of investment
securities 74,322,239 30,323,385
- ------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) of
investment securities 169,626,929 (31,641,947)
- ------------------------------------------------------------------------------
Net increase in net assets resulting from
operations 246,878,206 6,171,079
- ------------------------------------------------------------------------------
Dividends to shareholders from net investment
income (7,935,485) (6,514,217)
- ------------------------------------------------------------------------------
Distributions to shareholders from net realized
gains (30,550,717) (43,881,387)
- ------------------------------------------------------------------------------
Net equalization credits 1,739,780 2,423,169
- ------------------------------------------------------------------------------
Net increase from capital stock transactions 74,806,153 101,293,556
- ------------------------------------------------------------------------------
Net increase in net assets 284,937,937 59,492,200
- ------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 765,072,688 705,580,488
- ------------------------------------------------------------------------------
End of period $1,050,010,625 $765,072,688
==============================================================================
NET ASSETS CONSIST OF:
Capital (par value and additional paid-in) $ 700,176,586 $625,370,433
- ------------------------------------------------------------------------------
Undistributed net investment income 19,000,287 22,266,954
- ------------------------------------------------------------------------------
Undistributed net realized gain on sales of
investment securities 73,632,137 29,860,615
- ------------------------------------------------------------------------------
Net unrealized appreciation of investment
securities 257,201,615 87,574,686
- ------------------------------------------------------------------------------
$1,050,010,625 $765,072,688
==============================================================================
</TABLE>
See Notes to Financial Statements.
16
<PAGE>
Financials
NOTES TO FINANCIAL STATEMENTS
Octrober 31, 1995
NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES
AIM Summit Fund, Inc. (the "Fund") is a Maryland corporation registered under
the Investment Company Act of 1940, as amended, as a diversified, open-end
management investment company. The following is a summary of 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 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 mean between the closing bid and asked prices on that day. Each security
traded in the over-the-counter market (but not including securities reported
on the NASDAQ National Market System) is valued at the mean between the last
bid and asked prices based upon quotes furnished by market makers for such
securities. 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 mean of the closing bid and asked prices. Securities for which
market quotations are not readily available are valued at fair value as
determined in good faith by or under the supervision of the Fund's officers
in a manner specifically authorized by the Board of Directors of the Fund.
Short-term obligations having 60 days or less to maturity are valued at
amortized cost which approximates market value.
B. Securities Transactions, Investment Income and Distributions - 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 and distributions to
shareholders are recorded on the ex-dividend date.
C. 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.
D. Equalization - The Fund follows the accounting practice known as
equalization by which a portion of the proceeds from sales and costs of
repurchases of Fund shares, equivalent on a per share basis to the amount of
undistributed net investment income, is credited or charged to undistributed
income when the transaction is recorded so that the undistributed net
investment income per share is unaffected by sales or redemptions of Fund
shares.
NOTE 2 - ADVISORY FEES AND OTHER TRANSACTIONS WITH AFFILIATES
The Fund has entered into an investment advisory agreement with A I M Advisors,
Inc. ("AIM"). Under the terms of the advisory agreement, the Fund pays AIM a
fee at an annual rate of 1.0% of the first $10 million of the Fund's average
daily net assets, 0.75% of the next $140 million of the Fund's average daily
net assets and 0.625% of the Fund's average daily net assets in excess of $150
million. Under the terms of a sub-advisory agreement between AIM and
NationsBank of Texas, N.A. ("NationsBank"), AIM pays NationsBank a fee at an
annual rate of 0.50% of the first $10 million of the Fund's average daily net
assets, 0.35% of the next $140 million of the Fund's average daily net assets,
0.225% of the next $550 million of the Fund's average daily net assets and
0.15% of the Fund's average daily net assets in excess of $700 million. These
agreements require AIM to reduce its fees or, if necessary, make payments to
the Fund to the extent required to satisfy any expense limitations imposed by
the securities laws or regulations thereunder of any state in which the Fund's
shares are qualified for sale.
The Fund, pursuant to an administrative services agreement with AIM, has
agreed to reimburse AIM for certain costs incurred in providing accounting
services to the Fund. During the year ended October 31, 1995, the Fund
reimbursed AIM $60,994 for such services.
During the year ended October 31, 1995, the Fund paid legal fees of $4,569 for
services rendered by Kramer, Levin, Naftalis, Nessen, Kamin & Frankel as
counsel to the Board of Directors. A member of that firm is a director of the
Fund.
Substantially all shares of the Fund are held of record by State Street Bank &
Trust Company as custodian for Summit Investors Plans, a unit investment trust
that is sponsored by A I M Distributors, Inc. (an affiliated company of AIM).
Certain officers and directors of the Fund are officers of AIM and A I M
Distributors, Inc.
NOTE 3 - DIRECTORS' FEES
Directors' fees represent remuneration paid or accrued to each director who is
not an "interested person" of AIM. The Fund may invest directors' fees, if so
elected by a director, in mutual fund shares in accordance with a deferred
compensation plan.
17
<PAGE>
Financials
NOTE 4 - BANK BORROWINGS
The Fund has a $14,700,000 committed line of credit with a financial
institution syndicate with Chemical Bank of New York as the administrative
agent. Interest on borrowings under the line of credit is payable on maturity
or prepayment date. During the period July 20, 1995 (effective date of Credit
Agreement) through October 31, 1995, the Fund did not borrow under the line of
credit agreement. The Fund is charged a commitment fee, payable quarterly, at
the rate of 1/10 of 1% per annum on the unused balance of the Fund's
commitment.
NOTE 5 - INVESTMENT SECURITIES
The aggregate amount of investment securities (other than short-term
securities) purchased and sold by the Fund during the year ended October 31,
1995, was $1,096,638,136 and $1,081,422,456, respectively.
The amount of unrealized appreciation (depreciation) of investment securities
as of October 31, 1995, on a tax basis, is as follows:
<TABLE>
<S> <C>
Aggregate unrealized appreciation of investment securities $270,162,529
- ---------------------------------------------------------------------------
Aggregate unrealized (depreciation) of investment securities (13,025,219)
- ---------------------------------------------------------------------------
Net unrealized appreciation of investment securities $257,137,310
===========================================================================
</TABLE>
Cost of investments for tax purposes is $793,706,343.
NOTE 6 - CAPITAL STOCK
Changes in capital stock outstanding for the years ended October 31, 1995 and
1994 were as follows:
<TABLE>
<CAPTION>
1995 1994
------------------------ ------------------------
SHARES AMOUNT SHARES AMOUNT
---------- ------------ ---------- ------------
<S> <C> <C> <C> <C>
Sold 10,287,176 $101,899,889 11,078,117 $104,089,393
- ------------------------------------------------------------------------------
Issued as reinvestment of
dividends 4,324,777 36,847,100 5,136,785 48,593,992
- ------------------------------------------------------------------------------
Reacquired (6,354,529) (63,940,836) (5,457,028) (51,389,829)
- ------------------------------------------------------------------------------
8,257,424 $ 74,806,153 10,757,874 $101,293,556
==============================================================================
</TABLE>
18
<PAGE>
Financials
NOTE 7 - FINANCIAL HIGHLIGHTS
Shown below are the condensed financial highlights for a Fund share outstanding
during each of the years in the two-year period ended October 31, 1995, the ten
months ended October 31, 1993 and each of the years in the seven-year period
ended December 31, 1992.
<TABLE>
<CAPTION>
OCTOBER 31,
---------------------------------
1995 1994 1993
---------- -------- --------
<S> <C> <C> <C>
Net asset value,
beginning of period $ 9.78 $ 10.46 $ 9.64
- ----------------------- ---------- -------- --------
Income from investment
operations:
Net investment income 0.04 0.10 0.09
- ----------------------- ---------- -------- --------
Net gains (losses) on
securities (both
realized and
unrealized) 2.81 (0.04) 0.73
- ----------------------- ---------- -------- --------
Total from investment
operations 2.85 0.06 0.82
- ----------------------- ---------- -------- --------
Less distributions:
Dividends from net
investment income (0.10) (0.10) --
- ----------------------- ---------- -------- --------
Distributions from
capital gains (0.39) (0.64) --
- ----------------------- ---------- -------- --------
Total distributions (0.49) (0.74) --
- ----------------------- ---------- -------- --------
Net asset value, end of
period $ 12.14 $ 9.78 $ 10.46
======================= ========== ======== ========
Total return(b) 31.03% 0.61% 8.51%
======================= ========== ======== ========
Ratios/supplemental
data:
Net assets, end of
period (000s omitted) $1,050,011 $765,073 $705,580
======================= ========== ======== ========
Ratio of expenses to
average net assets 0.71%(c) 0.72% 0.79%(d)
======================= ========== ======== ========
Ratio of net investment
income to average net
assets 0.33%(c) 1.04% 1.13%(d)
======================= ========== ======== ========
Portfolio turnover rate 126.00% 121.69% 115.76%
======================= ========== ======== ========
<CAPTION>
DECEMBER 31,
---------------------------------------------------------------------
1992 1991 1990 1989 1988(a) 1987 1986
--------- --------- --------- --------- --------- ---------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period $ 10.09 $ 7.56 $ 7.79 $ 6.57 $ 5.70 $ 6.68 $ 6.49
- ------------------------ --------- --------- --------- --------- --------- ---------- --------
Income from investment
operations:
Net investment income 0.11 0.14 0.15 0.16 0.16 0.09 0.08
- ------------------------ --------- --------- --------- --------- --------- ---------- --------
Net gains (losses) on
securities (both
realized and
unrealized) 0.35 3.16 (0.08) 1.86 0.84 (0.40) 0.82
- ------------------------ --------- --------- --------- --------- --------- ---------- --------
Total from investment
operations 0.46 3.30 0.07 2.02 1.00 (0.31) 0.90
- ------------------------ --------- --------- --------- --------- --------- ---------- --------
Less distributions:
Dividends from net
investment income (0.11) (0.13) (0.16) (0.16) (0.13) (0.10) (0.05)
- ------------------------ --------- --------- --------- --------- --------- ---------- --------
Distributions from
capital gains (0.80) (0.64) (0.14) (0.64) -- (0.57) (0.66)
- ------------------------ --------- --------- --------- --------- --------- ---------- --------
Total distributions (0.91) (0.77) (0.30) (0.80) (0.13) (0.67) (0.71)
- ------------------------ --------- --------- --------- --------- --------- ---------- --------
Net asset value, end of
period $ 9.64 $ 10.09 $ 7.56 $ 7.79 $ 6.57 $ 5.70 $ 6.68
======================== ========= ========= ========= ========= ========= ========== ========
Total return(b) 4.50% 43.64% 0.93% 30.92% 17.65% (4.66)% 14.05%
======================== ========= ========= ========= ========= ========= ========== ========
Ratios/supplemental
data:
Net assets, end of
period (000s omitted) $604,329 $517,835 $316,043 $262,655 $164,996 $101,541 $72,458
======================== ========= ========= ========= ========= ========= ========== ========
Ratio of expenses to
average net assets 0.76% 0.75% 0.80% 0.82% 1.04% 0.98% 1.16%
======================== ========= ========= ========= ========= ========= ========== ========
Ratio of net investment
income to average net
assets 1.09% 1.48% 2.02% 2.14% 2.57% 1.06% 1.15%
======================== ========= ========= ========= ========= ========= ========== ========
Portfolio turnover rate 97.41% 109.04% 142.60% 97.26% 114.94% 81.99% 118.23%
======================== ========= ========= ========= ========= ========= ========== ========
</TABLE>
(a) The Fund changed investment advisers on October 5, 1988.
(b) For periods less than one year, total return is not annualized.
(c) Ratios are based on average net assets of $881,067,069.
(d) Annualized.
19
<PAGE>
INDEPENDENT AUDITORS' REPORT
To the Shareholders and Board of Directors
AIM Summit Fund, Inc.:
We have audited the accompanying statement of assets and liabilities of the AIM
Summit Fund, Inc., including the schedule of investments, as of October 31,
1995, and the related statement of operations for the year then ended, the
statement of changes in net assets for each of the years in the two-year period
then ended, and the financial highlights for each of the years in the two-year
period then ended, the ten months ended October 31, 1993 and each of the years
in the seven-year period ended December 31, 1992. These financial statements
and financial highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
October 31, 1995, by correspondence with the custodian and brokers. An audit
also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of AIM
Summit Fund, Inc. as of October 31, 1995, the results of its operations for the
year then ended, the changes in its net assets for each of the years in the
two-year period then ended, and the financial highlights for each of the years
in the two-year period then ended, the ten month period ended October 31, 1993
and each of the years in the seven-year period ended December 31, 1992, in
conformity with generally accepted accounting principles.
KPMG Peat Marwick LLP
Houston, Texas
December 8, 1995
20
<PAGE>
<TABLE>
<S> <C> <C>
Directors & Officers
BOARD OF DIRECTORS OFFICERS OFFICE OF THE FUND
Charles T. Bauer Charles T. Bauer 11 Greenway Plaza
Chairman and Chief Executive Officer Chairman Suite 1919
A I M Management Group Inc. Houston, TX 77046
Robert H. Graham
Bruce L. Crockett President INVESTMENT ADVISOR
Director, President and Chief
Executive Officer John J. Arthur A I M Advisors, Inc.
COMSAT Corporation Senior Vice President and Treasurer 11 Greenway Plaza
Suite 1919
Owen Daly II Gary T. Crum Houston, TX 77046
Director Senior Vice President
Cortland Trust Inc. SUB-ADVISOR
Carol F. Relihan
Carl Frischling Vice President and Secretary NationsBank Texas
Partner 901 Main Street
Kramer, Levin, Naftalis, Nessen, Melville B. Cox Dallas, TX 75202
Kamin & Frankel Vice President
TRANSFER AGENT
Robert H. Graham Jonathan C. Schoolar
President and Chief Operating Officer Vice President Boston Financial Data Services, Inc.
A I M Management Group Inc. P.O. Box 8300
Dana R. Sutton Boston, MA 02266-8300
John F. Kroeger Vice President and Assistant Treasurer
Formerly, Consultant CUSTODIAN
Wendell & Stockel Associates, Inc. P. Michelle Grace
Assistant Secretary State Street Bank and Trust Company
Lewis F. Pennock 225 Franklin Street
Attorney Nancy L. Martin Boston, MA 02110
Assistant Secretary
Ian W. Robinson COUNSEL TO THE FUND
Consultant; Former Executive Ofelia M. Mayo
Vice President and Assistant Secretary Ballard Spahr
Chief Financial Officer Andrews & Ingersoll
Bell Atlantic Management Kathleen J. Pflueger 1735 Market Street, 51st Floor
Services, Inc. Assistant Secretary Philadelphia, PA 19103
Louis S. Sklar Samuel D. Sirko COUNSEL TO THE DIRECTORS
Executive Vice President Assistant Secretary
Hines Interests Kramer, Levin, Naftalis,
Limited Partnership Stephen I. Winer Nessen, Kamin & Frankel
Assistant Secretary 919 Third Avenue
New York, NY 10022
Mary J. Benson
Assistant Treasurer DISTRIBUTOR
A I M Distributors, Inc.
11 Greenway Plaza
Suite 1919
Houston, TX 77046
AUDITORS
KPMG Peat Marwick LLP
700 Louisiana
NationsBank Bldg.
Houston, TX 77002
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REQUIRED FEDERAL INCOME TAX INFORMATION
AIM Summit Fund, Inc. paid ordinary dividends in the amount of $0.10 per share
to shareholders during its tax year ended October 31, 1995. Of this amount, 92%
is eligible for the dividends received deduction for corporations. The Fund also
distributed long-term capital gains of $0.385 per share during its tax year
ended October 31, 1995.
<PAGE>
[AIM LOGO APPEARS HERE]
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A I M Distributors, Inc. BULK RATE
11 Greenway Plaza, Suite 1919 U.S. POSTAGE
Houston, Texas 77046 PAID
Houston, TX
Permit No. 1919
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This report may be distributed only to current shareholders or to persons who
have received a current prospectus of the Fund.
