<PAGE>
[LOGO OF AIM APPEARS HERE]
AIM
SUMMIT
FUND, INC.
SEMIANNUAL REPORT
APRIL 30, 1995
<PAGE>
PORTFOLIO DATA
TOP 10 HOLDINGS
1. International Business Machines Corp.
2. LSI Logic Corp.
3. Hewlett-Packard Co.
4. Computer Associates International, Inc.
5. Telefonaktiebolget L.M. Ericsson - ADR
6. Texas Instruments Inc.
7. Amtel Corp.
8. Archer-Daniels Midland Co.
9. Sun Microsystems, Inc.
10. Columbia/HCA Healthcare Corp.
TOP 10 INDUSTRIES
1. Semiconductors
2. Computer Software/Services
3. Medical (Patient Services)
4. Retail (Stores)
5. Telecommunications
6. Computer Networking
7. Computer MINI/PCS
8. Medical (Drugs)
9. Business Services
10. Electronic Components/Misc.
This table represents a snapshot of the Fund's portfolio as of April 30,
1995. The Fund's portfolio composition may change and there is no assurance
that the Fund will continue to hold these same securities.
AIM SUMMIT FUND, INC.
seeks to achieve capital growth.
<PAGE>
CHAIRMAN'S LETTER
Dear Fellow Shareholder:
As stocks rallied during the last six months ended April 30,
1995, AIM Summit Fund, Inc. kept pace by delivering a solid
total return of 7.61%. The Fund decidedly outperformed the
[PHOTO Lipper Growth Fund Index, an unmanaged composite of the 30
Charles T. Bauer, largest growth funds, which gained 6.99% during the same
Chairman of period. Of course, you cannot make an investment in an index.
the Board of Lipper Analytical Services, Inc., is an mutual fund
the Fund performance monitor.
APPEARS HERE] Total return for AIM Summit Fund, Inc., includes reinvested
distributions of $0.485 per share and excludes the maximum
sales charge of 8.50%. During the six months ended April 30,
1995, the Fund's net assets increased from $765 million to
$847 million, and net asset value per share increased from
$9.78 to $9.97.
We believe the Fund's strong relative performance can be attributed to our
commitment to disciplined stock selection based on positive earnings momentum
and the consistent inflow of assets from our systematic investors. For more
detailed discussion of the market environment and the Fund's investment strategy
during the last six months, see DISCUSSION AND ANALYSIS on the following page.
The Fund benefited from the favorable market environment for stocks during the
last six months. However, it's important to keep recent events in perspective.
Current market activity is only mildly useful to investors who, unlike
speculators, have a long-term view toward investing for their financial futures.
To appreciate the advantages of a longer perspective, consider the historic
total return of AIM Summit Fund, Inc., based on reinvestment of all
distributions. For the periods ended March 31, 1995, the most recent calendar
quarter, the Fund had an average annual total return (excluding the maximum
sales charge) of 12.89% for 10 years, 12.14% for five years, and 8.59% for one
year. With the maximum sales charge included, the Fund had an average annual
total return for the same 10-year, five-year, and one-year periods of 11.89%,
10.17%, and -0.64%, respectively.
While past performance is no guarantee of future results, AIM Summit Fund,
Inc. has historically delivered strong performance for the systematic investor
for many years. Indeed, the Fund has contributed significantly to the consistent
growth of AIM Advisors, Inc. At the end of March, 1995, Lipper reported that AIM
was managing approximately $30 billion in assets and was the 17th largest mutual
fund complex in the U.S.
We are pleased to send you this shareholder report concerning AIM Summit Fund,
Inc. As always, we welcome any questions or comments you may have regarding the
Fund or your account. Call 800-995-4246 to talk to your Summit Investors Plans
representative. Thank you for your continued participation in AIM Summit Fund.
Respectfully submitted,
/s/ Charles T. Bauer
Charles T. Bauer
Chairman
<PAGE>
DISCUSSION & ANALYSIS
ANTICIPATION OF "SOFT LANDING" LAUNCHES STOCKS
- - ---------------------
With rising
interest rates
no longer a threat,
the formula was
finally right
for stocks.
- - ---------------------
Two fundamental elements often affects stock price gain: profits and interest
rates. Following years of cost-cutting and debt restructuring, corporate profits
had begun to emerge with promising strength. Unfortunately, concerns over rising
interest rates kept stock prices compressed for most of last year.
During the last six months, inflation concerns abated as economic reports
indicated that economic growth had slowed to a moderate, sustainable rate. In
the first three months of 1995, the economy grew at a 2.7% annual rate. This
slower level of growth fell nicely within the range targeted by the Federal
Reserve Board in its quest to slow economic growth, but not to the point of
recession - the fabled "soft landing."
With rising interest rates no longer a threat, the formula was finally right
for stocks. Equity indexes surged higher, shattering records almost daily. By
April 30, 1995, the Standard & Poors Composite Index of 500 Stocks (S&P 500),
widely regarded by investors as representative of the stock market in general,
stood at 514.71.
YOUR INVESTMENT PORTFOLIO
AIM Summit Fund, Inc. participated step for step with the rally in stocks. Total
holdings were almost doubled to 264 securities, with investment in virtually all
capitalization sectors of the market. Of course, the number of securities in the
Fund's portfolio will fluctuate, and there can be no assurance that the Fund
will continue to hold any particular security.
Technology stocks, which led the advance in stocks during the last six months,
represented more than 36% of the Fund's portfolio. The Fund's technology
weighting was distributed across a broad range of companies, including such new
additions as Dell Computer Corp., Sun Microsystems, Inc., Cadence Design
Systems, Inc., BMC Software, Inc., and Philips Electronics N.V.
In addition to technology companies, the Fund added stocks in defensive
companies which have demonstrated strong earnings momentum such as Capital
Cities/ABC, Inc., and Midlantic Corp., Inc.
As fundamentals improved for larger-capitalization companies, the Fund
identified growth potential among a few old, familiar names such as Du Pont
(E.I.) de Nemours & Co., Crown Cork & Seal Co., Inc., and Colgate-Palmolive Co.
Strong industries such as telecommunications, 5.13% of net assets, and
chemicals, 3.04% of net assets, continued to contribute to the Fund's
performance.
OUTLOOK FOR THE FUTURE
Many analysts agree that the exceptional earnings growth reported by many U.S.
companies during the first four months of 1995 is unlikely to continue at such a
phenomenal rate. Nevertheless, we believe a projected slowing of the domestic
economy, combined with the declining value of the dollar overseas, represents a
competitive advantage for U.S. companies. As a result, corporate profits in
selected sectors of the U.S. economy should continue to be robust over the near
term.
WHY TECHNOLOGY?
Just as the 1970s was an "oil" decade, and the 1980s was the "consumer" decade,
we believe the 1990s will be known as the "technology" decade. The underlying
force propelling technology is the quest for efficient productivity. The answer
in today's world is the computer.
Computers are not just found in the office anymore - they live at home, in
your beeper, in your car, and in your children's toys. They run your bank and
your grocery store. The many advantages of computers encourage new ideas for the
next generation of computers - the cycle almost drives itself. A new computer
calls for more powerful software, which drives chipmakers to create more
powerful engines for tomorrow's computers.
We believe technology will be a driving force in our economy for years to
come. And today, since our economy has effectively become a global economy,
technology's destiny may shape the world.
2
<PAGE>
FOR CONSIDERATION
A LOOK AT GROWTH AND VALUE INVESTMENT STYLES
We are usually encouraged to take a long-term perspective when it comes to
investing, but it has been difficult to be patient with growth stocks. Over the
last couple of years, growth stocks have been generally out of favor while value
stocks lead the market. Fortunately for growth stock investors, that trend may
be changing.
The relative performance of growth and value investment styles follows the
economic cycle. In recent years, the value style has outperformed primarily
because it includes many cyclical and industrial companies that have benefited
from economic expansion. As the economy gains momentum after a recession,
cyclical groups such as autos, manufacturing, steel, and producers of basic
materials experience rapid earnings growth from depressed levels and higher
stock prices.
As the economy continues to strengthen, growth stocks gain appeal. Economists
are already looking ahead to the time when higher interest rates will slow the
current pace of economic growth, making it more difficult for many companies to
maintain their profits. When that happens, investors will begin to focus on
firms that have shown their ability to generate earnings growth even in a slow
economy.
Investors may also find that growth stocks are relatively inexpensive compared
to value stocks. Growth stocks usually sell at a premium to the market. But
after the performance trends of the past couple of years, growth stocks are
selling at valuations comparable to those of value stocks.
Growth stocks also appear attractive from a global perspective. Rising
interest rates and the resulting higher prices are products of synchronized
growth of the world's seven major industrialized economies. This global
synchronicity could prove very beneficial for growth stocks, particularly for
domestic large-capitalization stocks because they generate almost half their
profits through foreign subsidiaries.
Of course, both growth and value investment styles have performed well over
the long run, and there is no way to forecast when the market will favor large
stocks over small, or growth stocks over value. Therefore, AIM Summit Fund,
Inc., prefers a flexible approach which combines both growth and value
investment styles to take best advantage of available opportunities.
GROWTH investors favor companies with high returns on equity and above-average
gains in sales and earnings. Growth companies are expected to increase earnings
at a 10% to 12% annual rate (or more). Typically, such stocks sell at higher
price/earnings multiples than value stocks, but investors are willing to pay a
premium since they expect higher growth to be reflected in rising stock prices
over time. Growth companies provide low or no dividends since management
reinvests a high portion of earnings in their businesses.
VALUE investors look for securities that are out of favor and appear
underpriced relative to the company's intrinsic worth, assets, projected
earnings, or some other measure of fundamental value. Such stocks typically have
relatively low price/earnings ratios (meaning the stock price is low relative to
the company's projected earnings), low price/book ratios (meaning the stock
price is low relative to the company's assets), and above-average dividend
yields.
- - ------------------------
As the economy slows,
investors will focus
on firms with a proven
ability to generate
earnings growth
even in lean times.
------------------------
3
<PAGE>
FINANCIALS
SCHEDULE OF INVESTMENTS
April 30, 1995
(Unaudited)
<TABLE>
<CAPTION>
SHARES MARKET VALUE
<C> <S> <C>
COMMON STOCKS - 97.21%
ADVERTISING/BROADCASTING - 1.34%
39,500 British Sky Broadcasting-ADR(a) $ 948,000
- - ------------------------------------------------------------------
90,000 Capital Cities/ABC, Inc. 7,605,000
- - ------------------------------------------------------------------
35,000 Infinity Broadcasting Corp.(a) 1,491,875
- - ------------------------------------------------------------------
35,000 Interpublic Group of Companies, Inc. 1,330,000
- - ------------------------------------------------------------------
11,374,875
- - ------------------------------------------------------------------
AEROSPACE/DEFENSE - 0.97%
25,000 Boeing Co. (The) 1,375,000
- - ------------------------------------------------------------------
110,000 McDonnell Douglas Corp. 6,820,000
- - ------------------------------------------------------------------
8,195,000
- - ------------------------------------------------------------------
APPLIANCES - 0.32%
60,000 Newell Co. 1,417,500
- - ------------------------------------------------------------------
58,000 Sunbeam-Oster Co., Inc. 1,254,250
- - ------------------------------------------------------------------
2,671,750
- - ------------------------------------------------------------------
AUTOMOBILE/TRUCKS PARTS & TIRES - 1.79%
150,000 Cummins Engine Co., Inc. 6,712,500
- - ------------------------------------------------------------------
120,000 Eaton Corp. 6,885,000
- - ------------------------------------------------------------------
30,000 Goodyear Tire & Rubber Co. 1,140,000
- - ------------------------------------------------------------------
36,000 Strattec Security Corp.(a) 418,500
- - ------------------------------------------------------------------
15,156,000
- - ------------------------------------------------------------------
BANKING - 0.78%
180,000 Midlantic Corp., Inc. 6,570,000
- - ------------------------------------------------------------------
BEVERAGES - 0.66%
100,000 Coca-Cola Enterprises Inc. 2,237,500
- - ------------------------------------------------------------------
80,000 PepsiCo Inc. 3,330,000
- - ------------------------------------------------------------------
5,567,500
- - ------------------------------------------------------------------
BIOTECHNOLOGY - 0.34%
40,000 Amgen Inc.(a) 2,907,500
- - ------------------------------------------------------------------
BUILDING MATERIALS - 0.40%
110,000 Black & Decker Corp. 3,300,000
- - ------------------------------------------------------------------
4,800 USG Corp.(a) 113,400
- - ------------------------------------------------------------------
3,413,400
- - ------------------------------------------------------------------
</TABLE>
4
<PAGE>
FINANCIALS
<TABLE>
<CAPTION>
SHARES MARKET VALUE
<C> <S> <C>
BUSINESS SERVICES - 3.09%
170,000 Diebold, Inc. $ 7,055,000
- - ----------------------------------------------------------------
80,000 Equifax, Inc. 2,590,000
- - ----------------------------------------------------------------
119,900 Healthcare Compare Corp.(a) 3,604,494
- - ----------------------------------------------------------------
72,300 Manpower Inc. 2,413,013
- - ----------------------------------------------------------------
116,800 Olsten Corp. 3,985,800
- - ----------------------------------------------------------------
165,000 Sensormatic Electronics Corp. 4,908,750
- - ----------------------------------------------------------------
47,900 Value Health, Inc.(a) 1,652,550
- - ----------------------------------------------------------------
26,209,607
- - ----------------------------------------------------------------
CHEMICALS - 2.16%
23,000 Dow Chemical Co. 1,598,500
- - ----------------------------------------------------------------
130,000 Eastman Chemical Co. 7,377,500
- - ----------------------------------------------------------------
15,000 Hanna (M.A.) Co. 373,125
- - ----------------------------------------------------------------
55,000 PPG Industries, Inc. 2,165,625
- - ----------------------------------------------------------------
250,000 Wellman Inc. 6,750,000
- - ----------------------------------------------------------------
18,264,750
- - ----------------------------------------------------------------
CHEMICALS (SPECIALTY) - 0.88%
46,500 Airgas Inc.(a) 1,040,438
- - ----------------------------------------------------------------
51,600 Engelhard Corp. 1,980,150
- - ----------------------------------------------------------------
39,800 IMC Global Inc. 1,955,175
- - ----------------------------------------------------------------
25,000 Loctite Corp. 1,243,750
- - ----------------------------------------------------------------
39,000 Morton International, Inc. 1,209,000
- - ----------------------------------------------------------------
7,428,513
- - ----------------------------------------------------------------
COMPUTER MAINFRAMES - 1.57%
140,000 International Business Machines Corp. 13,265,000
- - ----------------------------------------------------------------
COMPUTER MINI/PCS - 3.37%
118,100 Dell Computer Corp.(a) 6,465,975
- - ----------------------------------------------------------------
31,000 Digital Equipment Corp.(a) 1,429,875
- - ----------------------------------------------------------------
110,000 Gateway 2000, Inc.(a) 2,083,125
- - ----------------------------------------------------------------
160,000 Hewlett-Packard Co. 10,580,000
- - ----------------------------------------------------------------
200,000 Sun Microsystems, Inc.(a) 7,975,000
- - ----------------------------------------------------------------
28,533,975
- - ----------------------------------------------------------------
</TABLE>
5
<PAGE>
FINANCIALS
<TABLE>
<CAPTION>
SHARES MARKET VALUE
<C> <S> <C>
COMPUTER NETWORKING - 3.87%
130,000 Bay Networks, Inc.(a) $ 4,728,750
- - ------------------------------------------------------------------
139,000 Cabletron Systems, Inc.(a) 6,602,500
- - ------------------------------------------------------------------
54,300 Chipcom Corp.(a) 1,778,325
- - ------------------------------------------------------------------
152,800 Cisco Systems, Inc.(a) 6,092,900
- - ------------------------------------------------------------------
45,300 Lannet Data Communications, Ltd.(a) 894,675
- - ------------------------------------------------------------------
49,700 Madge, N.V.(a) 1,366,750
- - ------------------------------------------------------------------
41,000 Network Equipment Technologies, Inc.(a) 896,875
- - ------------------------------------------------------------------
122,000 Novell, Inc.(a) 2,653,500
- - ------------------------------------------------------------------
18,900 Optical Data Systems, Inc.(a) 765,450
- - ------------------------------------------------------------------
125,000 3Com Corp.(a) 7,000,000
- - ------------------------------------------------------------------
32,779,725
- - ------------------------------------------------------------------
COMPUTER PERIPHERALS - 2.98%
157,700 Adaptec Inc.(a) 5,046,400
- - ------------------------------------------------------------------
48,000 Alliance Semiconductor Corp.(a) 1,956,000
- - ------------------------------------------------------------------
99,400 American Power Conversion Corp.(a) 1,689,800
- - ------------------------------------------------------------------
58,000 Digi International, Inc.(a) 1,290,500
- - ------------------------------------------------------------------
360,000 EMC Corp.(a) 7,110,000
- - ------------------------------------------------------------------
76,400 Microchip Technology, Inc.(a) 2,158,300
- - ------------------------------------------------------------------
112,300 Quantum Corp.(a) 2,077,550
- - ------------------------------------------------------------------
70,000 Read-Rite Corp.(a) 1,487,500
- - ------------------------------------------------------------------
150,000 Western Digital Corp.(a) 2,400,000
- - ------------------------------------------------------------------
25,216,050
- - ------------------------------------------------------------------
COMPUTER SOFTWARE/SERVICES - 7.71%
78,000 Adobe Systems, Inc. 4,543,500
- - ------------------------------------------------------------------
91,300 Autodesk Inc. 3,109,907
- - ------------------------------------------------------------------
66,000 BMC Software, Inc.(a) 4,108,500
- - ------------------------------------------------------------------
150,000 Cadence Design Systems, Inc.(a) 4,837,500
- - ------------------------------------------------------------------
140,000 Computer Associates International, Inc. 9,012,500
- - ------------------------------------------------------------------
18,000 Computer Sciences Corp.(a) 888,750
- - ------------------------------------------------------------------
69,100 Corel Corp.(a) 958,763
- - ------------------------------------------------------------------
45,000 Fiserv, Inc.(a) 1,192,500
- - ------------------------------------------------------------------
</TABLE>
6
<PAGE>
FINANCIALS
<TABLE>
<CAPTION>
SHARES MARKET VALUE
<C> <S> <C>
Computer Software/Services - continued
60,000 HBO & Co. $ 2,745,000
- - -----------------------------------------------------------------
50,300 Informix Corp.(a) 1,980,563
- - -----------------------------------------------------------------
16,600 Mentor Graphics Corp.(a) 280,125
- - -----------------------------------------------------------------
32,000 Microsoft Corp.(a) 2,616,000
- - -----------------------------------------------------------------
180,000 Oracle Systems Corp.(a) 5,490,000
- - -----------------------------------------------------------------
122,800 Parametric Technology Corp.(a) 5,833,000
- - -----------------------------------------------------------------
90,000 Policy Management Systems Corp.(a) 4,533,750
- - -----------------------------------------------------------------
163,000 Silicon Graphics, Inc.(a) 6,112,500
- - -----------------------------------------------------------------
54,400 Sterling Software Inc.(a) 1,849,600
- - -----------------------------------------------------------------
85,100 Symantec Corp.(a) 1,978,575
- - -----------------------------------------------------------------
60,000 Synopsys, Inc.(a) 3,255,000
- - -----------------------------------------------------------------
65,326,033
- - -----------------------------------------------------------------
CONGLOMERATES - 1.40%
110,000 Du Pont (E.I.) de Nemours & Co. 7,246,250
- - -----------------------------------------------------------------
60,000 Federal Signal Corp. 1,357,500
- - -----------------------------------------------------------------
12,000 ITT Corp. 1,254,000
- - -----------------------------------------------------------------
39,000 Tyco International Ltd. 2,047,500
- - -----------------------------------------------------------------
11,905,250
- - -----------------------------------------------------------------
CONTAINERS - 0.34%
35,000 Ball Corp. 1,198,750
- - -----------------------------------------------------------------
8,700 Bemis Co., Inc. 241,425
- - -----------------------------------------------------------------
34,000 Crown Cork & Seal Co., Inc.(a) 1,453,500
- - -----------------------------------------------------------------
2,893,675
- - -----------------------------------------------------------------
COSMETICS & TOILETRIES - 0.40%
18,000 Colgate-Palmolive Co. 1,264,500
- - -----------------------------------------------------------------
53,000 General Nutrition, Inc.(a) 1,318,375
- - -----------------------------------------------------------------
10,000 Gillette Co. (The) 820,000
- - -----------------------------------------------------------------
3,402,875
- - -----------------------------------------------------------------
ELECTRIC POWER - 0.87%
440,000 SCE Corp. 7,370,000
- - -----------------------------------------------------------------
</TABLE>
7
<PAGE>
FINANCIALS
<TABLE>
<CAPTION>
SHARES MARKET VALUE
<C> <S> <C>
ELECTRONIC COMPONENTS/MISCELLANEOUS - 2.98%
38,000 General Electric Co. $ 2,128,000
- - -------------------------------------------------------------------------
18,000 Molex, Inc. 679,500
- - -------------------------------------------------------------------------
110,000 Parker-Hannifin Corp. 5,720,000
- - -------------------------------------------------------------------------
120,000 Philips Electronics N.V. - New York Shares-ADR 4,620,000
- - -------------------------------------------------------------------------
34,500 Symbol Technologies, Inc.(a) 1,142,813
- - -------------------------------------------------------------------------
80,100 Tektronix, Inc. 3,644,550
- - -------------------------------------------------------------------------
145,000 Teradyne, Inc.(a) 7,340,625
- - -------------------------------------------------------------------------
25,275,488
- - -------------------------------------------------------------------------
ELECTRONIC/PC DISTRIBUTORS - 0.81%
100,000 Arrow Electronics, Inc(a) 4,650,000
- - -------------------------------------------------------------------------
50,000 Avnet, Inc. 2,225,000
- - -------------------------------------------------------------------------
6,875,000
- - -------------------------------------------------------------------------
FINANCE (CONSUMER CREDIT) - 1.65%
80,000 First USA, Inc. 3,400,000
- - -------------------------------------------------------------------------
110,000 Green Tree Acceptance, Inc. 4,496,250
- - -------------------------------------------------------------------------
120,000 MBNA Corp. 3,630,000
- - -------------------------------------------------------------------------
8,500 Medaphis Corp.(a) 484,500
- - -------------------------------------------------------------------------
130,000 Mercury Finance Co. 1,966,250
- - -------------------------------------------------------------------------
13,977,000
- - -------------------------------------------------------------------------
FINANCE (SAVINGS & LOAN) - 0.05%
18,700 Ahmanson (H.F.) & Co. 392,700
- - -------------------------------------------------------------------------
FOOD PROCESSING - 2.11%
445,000 Archer-Daniels Midland Co. 8,121,250
- - -------------------------------------------------------------------------
25,000 ConAgra, Inc. 831,250
- - -------------------------------------------------------------------------
180,000 IBP, Inc. 6,660,000
- - -------------------------------------------------------------------------
66,300 Lancaster Colony Corp. 2,303,925
- - -------------------------------------------------------------------------
17,916,425
- - -------------------------------------------------------------------------
FUNERAL SERVICES - 0.47%
28,400 Loewen Group, Inc. 800,970
- - -------------------------------------------------------------------------
113,000 Service Corp. International 3,192,250
- - -------------------------------------------------------------------------
3,993,220
- - -------------------------------------------------------------------------
</TABLE>
8
<PAGE>
FINANCIALS
<TABLE>
<CAPTION>
SHARES MARKET VALUE
<C> <S> <C>
HOMEBUILDING - 0.08%
30,400 Fleetwood Enterprises, Inc. $ 699,200
- - ------------------------------------------------------------------
HOTELS/MOTELS - 0.95%
112,300 Hospitality Franchise Systems, Inc.(a) 3,411,113
- - ------------------------------------------------------------------
119,000 La Quinta Motor Inns, Inc. 3,555,125
- - ------------------------------------------------------------------
30,100 Marriott International, Inc. 1,083,600
- - ------------------------------------------------------------------
8,049,838
- - ------------------------------------------------------------------
INSURANCE (MULTI-LINE PROPERTY) - 0.69%
80,000 CIGNA Corp. 5,810,000
- - ------------------------------------------------------------------
LEISURE & RECREATION - 1.39%
34,400 Avid Technology, Inc.(a) 1,386,750
- - ------------------------------------------------------------------
100,000 Brunswick Corp. 2,137,500
- - ------------------------------------------------------------------
86,700 Callaway Golf Co. 1,072,913
- - ------------------------------------------------------------------
114,000 Carnival Cruise Lines, Inc. 2,835,750
- - ------------------------------------------------------------------
145,000 Mattel, Inc. 3,443,750
- - ------------------------------------------------------------------
16,000 Walt Disney Co. (The) 886,000
- - ------------------------------------------------------------------
11,762,663
- - ------------------------------------------------------------------
MACHINE TOOLS - 0.14%
35,000 Kennametal Inc. 1,172,500
- - ------------------------------------------------------------------
MACHINERY (HEAVY) - 1.93%
55,200 Case Corp. 1,400,700
- - ------------------------------------------------------------------
120,000 Caterpillar Inc. 7,020,000
- - ------------------------------------------------------------------
17,000 Deere & Co. 1,394,000
- - ------------------------------------------------------------------
100,000 Dover Corp. 6,500,000
- - ------------------------------------------------------------------
16,314,700
- - ------------------------------------------------------------------
MACHINERY (MISCELLANEOUS) - 0.54%
85,000 Thermo Electron Corp.(a) 4,579,375
- - ------------------------------------------------------------------
MEDICAL (DRUGS) - 3.23%
34,000 American Home Products Corp. 2,622,250
- - ------------------------------------------------------------------
43,050 Bergen Brunswig Corp. 1,022,437
- - ------------------------------------------------------------------
80,000 Cardinal Health, Inc. 3,690,000
- - ------------------------------------------------------------------
52,000 Elan Corp., PLC - ADR(a) 1,839,500
- - ------------------------------------------------------------------
110,500 Forest Laboratories, Inc.(a) 4,972,500
- - ------------------------------------------------------------------
</TABLE>
9
<PAGE>
FINANCIALS
<TABLE>
<CAPTION>
SHARES MARKET VALUE
<C> <S> <C>
Medical (Drugs) - continued
35,000 Johnson & Johnson $ 2,275,000
- - -----------------------------------------------------------------------
30,000 Merck & Co., Inc. 1,286,250
- - -----------------------------------------------------------------------
70,000 Mylan Laboratories, Inc. 2,152,500
- - -----------------------------------------------------------------------
36,500 Pfizer Inc. 3,161,812
- - -----------------------------------------------------------------------
30,000 Schering-Plough Corp. 2,261,250
- - -----------------------------------------------------------------------
50,000 SmithKline Beecham PLC - ADR 1,943,750
- - -----------------------------------------------------------------------
4,300 Teva Pharmaceuticals Industries Ltd. - ADR 147,275
- - -----------------------------------------------------------------------
27,374,524
- - -----------------------------------------------------------------------
MEDICAL (INSTRUMENTS/PRODUCTS) - 1.88%
27,500 Becton, Dickinson and Co. 1,533,125
- - -----------------------------------------------------------------------
120,000 Biomet Inc.(a) 2,100,000
- - -----------------------------------------------------------------------
75,600 Cordis Corp.(a) 5,424,300
- - -----------------------------------------------------------------------
25,000 Medtronic, Inc. 1,859,375
- - -----------------------------------------------------------------------
55,700 St. Jude Medical, Inc. 2,395,100
- - -----------------------------------------------------------------------
32,000 Stryker Corp. 1,444,000
- - -----------------------------------------------------------------------
38,400 Sunrise Medical, Inc.(a) 1,161,600
- - -----------------------------------------------------------------------
15,917,500
- - -----------------------------------------------------------------------
MEDICAL (PATIENT SERVICES) - 6.92%
182,800 Columbia/HCA Healthcare Corp. 7,677,600
- - -----------------------------------------------------------------------
42,400 Community Health Systems, Inc.(a) 1,473,400
- - -----------------------------------------------------------------------
100,000 Diagnostek, Inc.(a) 1,850,000
- - -----------------------------------------------------------------------
62,000 Health Care & Retirement Corp.(a) 1,751,500
- - -----------------------------------------------------------------------
120,000 Health Management Associates, Inc.(a) 3,480,000
- - -----------------------------------------------------------------------
47,000 Healthsource, Inc.(a) 1,686,125
- - -----------------------------------------------------------------------
240,000 Healthsouth Rehabilitation Corp.(a) 4,740,000
- - -----------------------------------------------------------------------
63,000 Homedco Group, Inc.(a) 3,606,750
- - -----------------------------------------------------------------------
74,300 Horizon Healthcare Corp.(a) 1,551,012
- - -----------------------------------------------------------------------
200,000 Humana Inc.(a) 3,900,000
- - -----------------------------------------------------------------------
76,600 Integrated Health Service, Inc. 2,652,275
- - -----------------------------------------------------------------------
67,200 Lincare Holdings Inc.(a) 2,074,800
- - -----------------------------------------------------------------------
43,300 Manor Care, Inc 1,271,937
- - -----------------------------------------------------------------------
166,800 Mid-Atlantic Medical Services, Inc.(a) 2,877,300
- - -----------------------------------------------------------------------
130,000 OrNda HealthCorp(a) 2,275,000
- - -----------------------------------------------------------------------
40,000 Oxford Health Plans, Inc.(a) 1,665,000
- - -----------------------------------------------------------------------
17,000 Pacificare Health Systems, Inc. - Class A(a) 1,045,500
- - -----------------------------------------------------------------------
15,000 Pacificare Health Systems, Inc. - Class B(a) 930,000
- - -----------------------------------------------------------------------
43,500 Quorum Health Group, Inc.(a) 897,187
- - -----------------------------------------------------------------------
</TABLE>
10
<PAGE>
FINANCIALS
<TABLE>
<CAPTION>
SHARES MARKET VALUE
<C> <S> <C>
Medical (Patient Services) - continued
71,700 Sun Healthcare Group, Inc.(a) $ 1,729,762
- - ----------------------------------------------------------------
115,000 Sybron International Corp.(a) 4,269,375
- - ----------------------------------------------------------------
32,300 Theratx Inc.(a) 468,350
- - ----------------------------------------------------------------
78,700 United Healthcare Corp. 2,852,875
- - ----------------------------------------------------------------
60,000 Vencor, Inc.(a) 1,860,000
- - ----------------------------------------------------------------
58,585,748
- - ----------------------------------------------------------------
METALS - 1.63%
35,800 Alumax, Inc.(a) 1,011,350
- - ----------------------------------------------------------------
160,000 Aluminum Co. of America 7,180,000
- - ----------------------------------------------------------------
100,000 Phelps-Dodge Corp. 5,662,500
- - ----------------------------------------------------------------
13,853,850
- - ----------------------------------------------------------------
OFFICE AUTOMATION - 0.70%
94,000 Danka Business Systems PLC - ADR 2,573,250
- - ----------------------------------------------------------------
27,000 Xerox Corp. 3,324,375
- - ----------------------------------------------------------------
5,897,625
- - ----------------------------------------------------------------
OFFICE PRODUCTS - 0.68%
83,000 Avery-Dennison Corp. 3,371,875
- - ----------------------------------------------------------------
89,300 Reynolds & Reynolds Co. - Class A 2,366,450
- - ----------------------------------------------------------------
5,738,325
- - ----------------------------------------------------------------
OIL & GAS (SERVICES) - 1.31%
60,000 British Petroleum Co. PLC - ADR 5,167,500
- - ----------------------------------------------------------------
240,000 Lyondell Petrochemical Co. 5,970,000
- - ----------------------------------------------------------------
11,137,500
- - ----------------------------------------------------------------
PAPER & FOREST PRODUCTS - 1.50%
180,000 Chesapeake Corp. 5,580,000
- - ----------------------------------------------------------------
30,700 Federal Paper Board Co., Inc. 909,487
- - ----------------------------------------------------------------
70,000 Scott Paper Co. 6,238,750
- - ----------------------------------------------------------------
12,728,237
- - ----------------------------------------------------------------
POLLUTION CONTROL - 0.25%
35,000 Browning-Ferris Industries, Inc. 1,155,000
- - ----------------------------------------------------------------
35,000 WMX Technologies Inc. 953,750
- - ----------------------------------------------------------------
2,108,750
- - ----------------------------------------------------------------
PUBLISHING - 0.21%
44,000 Harcourt General, Inc. 1,798,500
- - ----------------------------------------------------------------
</TABLE>
11
<PAGE>
FINANCIALS
<TABLE>
<CAPTION>
SHARES MARKET VALUE
<C> <S> <C>
RESTAURANTS - 0.51%
48,000 Cracker Barrel Old Country Store, Inc. $ 1,020,000
- - -----------------------------------------------------------------
47,400 McDonald's Corp. 1,659,000
- - -----------------------------------------------------------------
43,500 Morrison Restaurants Inc. 984,188
- - -----------------------------------------------------------------
27,000 Outback Steakhouse, Inc.(a) 681,750
- - -----------------------------------------------------------------
4,344,938
- - -----------------------------------------------------------------
RETAIL (FOOD & DRUG) - 2.90%
63,000 Albertson's, Inc. 1,992,375
- - -----------------------------------------------------------------
140,000 Eckerd Corp.(a) 4,077,500
- - -----------------------------------------------------------------
78,000 Hannaford Bros. Co. 2,057,250
- - -----------------------------------------------------------------
104,200 Kroger Co.(a) 2,657,100
- - -----------------------------------------------------------------
57,000 Revco D. S., Inc.(a) 1,225,500
- - -----------------------------------------------------------------
83,400 Rite Aid Corp. 1,939,050
- - -----------------------------------------------------------------
200,000 Safeway Inc.(a) 7,500,000
- - -----------------------------------------------------------------
40,000 Smith's Food & Drug Centers, Inc. 865,000
- - -----------------------------------------------------------------
85,000 Stop and Shop Companies, Inc. (The)(a) 2,263,125
- - -----------------------------------------------------------------
24,576,900
- - -----------------------------------------------------------------
RETAIL (STORES) - 5.24%
19,400 Ann Taylor Stores Corp.(a) 487,425
- - -----------------------------------------------------------------
52,400 AutoZone, Inc(a) 1,211,750
- - -----------------------------------------------------------------
36,000 Bed Bath & Beyond, Inc.(a) 751,500
- - -----------------------------------------------------------------
115,000 Circuit City Stores, Inc. 2,975,625
- - -----------------------------------------------------------------
169,000 Consolidated Stores Corp.(a) 2,894,125
- - -----------------------------------------------------------------
80,000 Dollar General Corp. 1,860,000
- - -----------------------------------------------------------------
160,000 Heilig Meyers Co. 3,360,000
- - -----------------------------------------------------------------
60,000 Home Depot, Inc. 2,505,000
- - -----------------------------------------------------------------
147,000 Lowe's Companies, Inc. 4,244,625
- - -----------------------------------------------------------------
27,600 Men's Wearhouse, Inc. (The)(a) 696,900
- - -----------------------------------------------------------------
103,500 Michaels Stores, Inc.(a) 2,949,750
- - -----------------------------------------------------------------
50,000 Micro Warehouse, Inc.(a) 1,750,000
- - -----------------------------------------------------------------
123,800 Office Depot, Inc.(a) 2,816,450
- - -----------------------------------------------------------------
104,000 Pep Boys - Manny, Moe & Jack 2,678,000
- - -----------------------------------------------------------------
68,250 Pier 1 Imports, Inc. 614,250
- - -----------------------------------------------------------------
25,000 Sears, Roebuck & Co. 1,356,250
- - -----------------------------------------------------------------
45,000 Sports Authority, Inc (The)(a) 798,750
- - -----------------------------------------------------------------
100,000 Staples, Inc.(a) 2,412,500
- - -----------------------------------------------------------------
110,000 Sysco Corp. 3,080,000
- - -----------------------------------------------------------------
</TABLE>
12
<PAGE>
FINANCIALS
<TABLE>
<CAPTION>
SHARES MARKET VALUE
<C> <S> <C>
Retail (Stores) - continued
25,000 Tandy Corp. $ 1,237,500
- - ----------------------------------------------------------------
79,300 Viking Office Products Inc.(a) 2,180,750
- - ----------------------------------------------------------------
90,000 Waban Inc.(a) 1,496,250
- - ----------------------------------------------------------------
44,357,400
- - ----------------------------------------------------------------
SCIENTIFIC INSTRUMENTS - 0.60%
110,000 Varian Associates, Inc. 5,060,000
- - ----------------------------------------------------------------
SECURITY & SAFETY SERVICES - 0.67%
240,000 Pittston Services Group 5,700,000
- - ----------------------------------------------------------------
SEMICONDUCTORS - 12.90%
86,000 Altera Corp.(a) 6,955,250
- - ----------------------------------------------------------------
240,000 Analog Devices Inc.(a) 6,450,000
- - ----------------------------------------------------------------
110,000 Applied Materials, Inc.(a) 6,778,750
- - ----------------------------------------------------------------
33,300 ASM Lithography Holding(a) 911,587
- - ----------------------------------------------------------------
185,900 Atmel Corp.(a) 8,179,600
- - ----------------------------------------------------------------
30,700 Cirrus Logic, Inc.(a) 1,529,243
- - ----------------------------------------------------------------
160,000 Cypress Semiconductor Corp.(a) 4,840,000
- - ----------------------------------------------------------------
100,000 Integrated Device Technology, Inc.(a) 3,812,500
- - ----------------------------------------------------------------
70,000 Intel Corp. 7,166,250
- - ----------------------------------------------------------------
80,000 KLA Instruments Corp.(a) 4,960,000
- - ----------------------------------------------------------------
146,000 LAM Research Corp.(a) 7,373,000
- - ----------------------------------------------------------------
80,100 Linear Technology Corp. 4,785,975
- - ----------------------------------------------------------------
160,000 LSI Logic Corp.(a) 10,660,000
- - ----------------------------------------------------------------
25,900 Maxim Integrated Product, Inc.(a) 938,875
- - ----------------------------------------------------------------
80,500 Micron Technology Inc. 6,621,125
- - ----------------------------------------------------------------
115,000 National Semiconductor Corp.(a) 2,630,625
- - ----------------------------------------------------------------
80,000 Novellus Systems, Inc.(a) 4,860,000
- - ----------------------------------------------------------------
45,700 Solectron Corp.(a) 1,342,437
- - ----------------------------------------------------------------
16,900 Tencor Instruments(a) 1,144,975
- - ----------------------------------------------------------------
81,500 Texas Instruments Inc. 8,639,000
- - ----------------------------------------------------------------
52,000 Vishay Intertechnology, Inc.(a) 3,074,500
- - ----------------------------------------------------------------
35,000 VLSI Technology Inc.(a) 745,938
- - ----------------------------------------------------------------
63,000 Xilinx, Inc.(a) 4,835,250
- - ----------------------------------------------------------------
109,234,880
- - ----------------------------------------------------------------
SHOES & RELATED APPAREL - 0.52%
135,000 Nine West Group, Inc.(a) 4,387,500
- - ----------------------------------------------------------------
STEEL - 0.68%
120,000 Nucor Corp. 5,760,000
- - ----------------------------------------------------------------
</TABLE>
13
<PAGE>
FINANCIALS
<TABLE>
<CAPTION>
SHARES MARKET VALUE
<C> <S> <C>
TELECOMMUNICATIONS - 5.13%
46,000 ADC Telecommunications, Inc.(a) $ 1,518,000
- - --------------------------------------------------------------------
43,200 Allen Group, Inc. 977,400
- - --------------------------------------------------------------------
178,000 DSC Communications Corp.(a) 6,586,000
- - --------------------------------------------------------------------
65,000 General Instrument Corp.(a) 2,218,125
- - --------------------------------------------------------------------
53,800 Glenayre Technologies, Inc.(a) 3,308,700
- - --------------------------------------------------------------------
165,000 LDDS Communications, Inc.(a) 3,960,000
- - --------------------------------------------------------------------
100,000 Nokia Corp - ADR 4,100,000
- - --------------------------------------------------------------------
27,900 Northern Telecom Ltd. 1,014,863
- - --------------------------------------------------------------------
194,300 Scientific-Atlanta Inc. 4,420,325
- - --------------------------------------------------------------------
130,000 Telefonaktiebolget L.M. Ericsson - ADR 8,718,125
- - --------------------------------------------------------------------
88,000 Tellabs, Inc.(a) 6,072,000
- - --------------------------------------------------------------------
38,200 U.S. Long Distance Corp.(a) 592,100
- - --------------------------------------------------------------------
43,485,638
- - --------------------------------------------------------------------
TELEPHONE - 0.47%
60,000 Century Telephone Enterprises, Inc. 1,785,000
- - --------------------------------------------------------------------
91,600 Cincinnati Bell, Inc. 2,198,400
- - --------------------------------------------------------------------
3,983,400
- - --------------------------------------------------------------------
TEXTILES - 0.14%
48,500 Unifi, Inc. 1,218,563
- - --------------------------------------------------------------------
TRUCKING - 0.11%
40,000 TNT Freightways Corp. 940,000
- - --------------------------------------------------------------------
Total Common Stocks 823,459,365
- - --------------------------------------------------------------------
PRINCIPAL
AMOUNT
REPURCHASE AGREEMENT - 2.62%(b)
$22,227,753 Goldman, Sachs & Co., 5.92%, 05/01/95(c) 22,227,753
- - --------------------------------------------------------------------
Total Repurchase Agreement 22,227,753
- - --------------------------------------------------------------------
TOTAL INVESTMENTS - 99.83% 845,687,118
- - --------------------------------------------------------------------
OTHER ASSETS LESS LIABILITIES - 0.17% 1,398,198
- - --------------------------------------------------------------------
NET ASSETS - 100.00% $847,085,316
====================================================================
</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 04/28/95 with a maturing value of
$403,984,662. Collateralized by $400,123,000 U.S. Treasury obligations,
0.00% to 8.875% due 05/15/95 to 02/15/21.
See Notes to Financial Statements.
14
<PAGE>
FINANCIALS
STATEMENT OF ASSETS AND LIABILITIES
April 30, 1995
(Unaudited)
<TABLE>
<S> <C>
ASSETS:
Investments, at market value (cost $708,629,196) $ 845,687,118
- - ---------------------------------------------------------------
Receivables for:
Investments sold 15,824,099
- - ---------------------------------------------------------------
Capital stock sold 52,012
- - ---------------------------------------------------------------
Dividends and interest 357,775
- - ---------------------------------------------------------------
Investment for deferred compensation plan 8,034
- - ---------------------------------------------------------------
Other assets 19,424
- - ---------------------------------------------------------------
Total assets 861,948,462
- - ---------------------------------------------------------------
LIABILITIES:
Payables for:
Investments purchased 13,959,879
- - ---------------------------------------------------------------
Capital stock reacquired 289,739
- - ---------------------------------------------------------------
Deferred compensation 8,034
- - ---------------------------------------------------------------
Accrued advisory fees 445,144
- - ---------------------------------------------------------------
Accrued accounting service fees 5,150
- - ---------------------------------------------------------------
Accrued directors' fees 3,267
- - ---------------------------------------------------------------
Accrued operating expenses 151,933
- - ---------------------------------------------------------------
Total liabilities 14,863,146
- - ---------------------------------------------------------------
Net assets applicable to shares outstanding $ 847,085,316
===============================================================
CAPITAL SHARES, $.01 PAR VALUE PER SHARE:
Authorized 1,000,000,000
- - ---------------------------------------------------------------
Outstanding 84,965,762
===============================================================
Net asset value and redemption price per share $ 9.97
===============================================================
</TABLE>
See Notes to Financial Statements.
15
<PAGE>
FINANCIALS
STATEMENT OF OPERATIONS
For the six months ended April 30, 1995
(Unaudited)
<TABLE>
<S> <C>
INVESTMENT INCOME:
Dividends $ 3,950,162
- - -------------------------------------------------------------------
Interest 801,095
- - -------------------------------------------------------------------
Total investment income 4,751,257
- - -------------------------------------------------------------------
EXPENSES:
Advisory fees 2,506,680
- - -------------------------------------------------------------------
Custodian fees 56,044
- - -------------------------------------------------------------------
Transfer agent fees 9,650
- - -------------------------------------------------------------------
Accounting service fees 30,754
- - -------------------------------------------------------------------
Directors' fees 5,706
- - -------------------------------------------------------------------
Other 157,167
- - -------------------------------------------------------------------
Total expenses 2,766,001
- - -------------------------------------------------------------------
Net investment income 1,985,256
- - -------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN ON INVESTMENT SECURITIES:
Net realized gain on sales of investment securities 9,152,209
- - -------------------------------------------------------------------
Net unrealized appreciation of investment securities 49,483,236
- - -------------------------------------------------------------------
Net gain on investment securities 58,635,445
- - -------------------------------------------------------------------
Net increase in net assets resulting from operations $60,620,701
===================================================================
</TABLE>
See Notes to Financial Statements.
16
<PAGE>
FINANCIALS
STATEMENT OF CHANGES IN NET ASSETS
For the six months ended April 30, 1995
and the year ended October 31, 1994
(Unaudited)
<TABLE>
<CAPTION>
APRIL 30, OCTOBER 31,
1995 1994
<S> <C> <C>
OPERATIONS:
Net investment income $ 1,985,256 $ 7,489,641
- - ---------------------------------------------------------------------------------
Net realized gain on sales of investment securities 9,152,209 30,323,385
- - ---------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) of
investment securities 49,483,236 (31,641,947)
- - ---------------------------------------------------------------------------------
Net increase in net assets resulting from
operations 60,620,701 6,171,079
- - ---------------------------------------------------------------------------------
Dividends to shareholders from net investment income (7,935,451) (6,514,217)
- - ---------------------------------------------------------------------------------
Distributions to shareholders from net realized
gains (30,550,717) (43,881,387)
- - ---------------------------------------------------------------------------------
Net equalization credits 1,400,072 2,423,169
- - ---------------------------------------------------------------------------------
Net increase from capital stock transactions 58,478,023 101,293,556
- - ---------------------------------------------------------------------------------
Net increase in net asses 82,012,628 59,492,200
- - ---------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 765,072,688 705,580,488
- - ---------------------------------------------------------------------------------
End of period $847,085,316 $765,072,688
=================================================================================
NET ASSETS CONSIST OF:
Capital (par value and additional paid-in) $683,848,456 $625,370,433
- - ---------------------------------------------------------------------------------
Undistributed net investment income 17,716,831 22,266,954
- - ---------------------------------------------------------------------------------
Undistributed net realized gain on sales of
investment securities 8,462,107 29,860,615
- - ---------------------------------------------------------------------------------
Net unrealized appreciation of investment
securities 137,057,922 87,574,686
- - ---------------------------------------------------------------------------------
$847,085,316 $765,072,688
=================================================================================
</TABLE>
See Notes to Financial Statements.
17
<PAGE>
FINANCIALS
NOTES TO FINANCIAL STATEMENTS
April 30, 1995
(Unaudited)
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. 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 six months ended April 30, 1995, the Fund
reimbursed AIM $30,754 for such services.
During the six months ended April 30, 1995, the Fund paid legal fees of $1,396
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 the Fund. The Fund may invest directors' fees, if
so elected by a director, in mutual fund shares in accordance with a deferred
compensation plan.
18
<PAGE>
FINANCIALS
NOTE 4 - INVESTMENT SECURITIES
The aggregate amount of investment securities (other than short-term
securities) purchased and sold by the Fund during the six months ended April
30, 1995, was $644,597,330 and $624,102,866, respectively.
The amount of unrealized appreciation (depreciation) of investment securities
as of April 30, 1995, on a tax basis, is as follows:
<TABLE>
<S> <C>
Aggregate unrealized appreciation of investment securities $147,623,363
- - ---------------------------------------------------------------------------
Aggregate unrealized (depreciation) of investment securities (10,614,441)
- - ---------------------------------------------------------------------------
Net unrealized appreciation of investment securities $137,008,922
===========================================================================
</TABLE>
Cost of investments for tax purposes is $708,678,196.
NOTE 5 - CAPITAL STOCK
Changes in capital stock outstanding for the six months ended April 30, 1995,
and the year ended October 31, 1994 were as follows:
<TABLE>
<CAPTION>
APRIL 30, 1995 OCTOBER 31, 1994
------------------------ ------------------------
SHARES AMOUNT SHARES AMOUNT
---------- ------------ ---------- ------------
<S> <C> <C> <C> <C>
Sold 5,711,983 $ 51,641,835 11,078,117 $104,089,393
- - ------------------------------------------------------------------------------
Issued as reinvestment of
dividends 4,324,777 36,847,100 5,136,785 48,593,992
- - ------------------------------------------------------------------------------
Reacquired (3,293,579) (30,010,912) (5,457,028) (51,389,829)
- - ------------------------------------------------------------------------------
6,743,181 $ 58,478,023 10,757,874 $101,293,556
==============================================================================
</TABLE>
19
<PAGE>
FINANCIALS
NOTE 6 - FINANCIAL HIGHLIGHTS
Shown below are the condensed financial highlights for a share of the Fund
outstanding during the six months ended April 30, 1995, the year ended October
31, 1994, the ten months ended October 31, 1993 and each of the years in the
seven-year period ended December 31, 1992.
<TABLE>
<CAPTION>
APRIL 30, 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 0.02 0.10 0.09
- - ----------------------- -------- -------- --------
Net gains (losses) on
securities (both
realized and
unrealized) 0.66 (0.04) 0.73
- - ----------------------- -------- -------- --------
Total from investment
operations 0.68 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 $ 9.97 $ 9.78 $ 10.46
======================= ======== ======== ========
Total return(b) 7.61% 0.61% 8.51%
======================= ======== ======== ========
Ratios/supplemental
data:
Net assets, end of
period (000s omitted) $847,085 $765,073 $705,580
======================= ======== ======== ========
Ratio of expenses to
average net assets 0.72%(c) 0.72% 0.79%(d)
======================= ======== ======== ========
Ratio of net investment
income to average net
assets 0.52%(c) 1.04% 1.13%(d)
======================= ======== ======== ========
Portfolio turnover rate 83.17% 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 annualized and based on average net assets of $774,785,009.
(d) Annualized.
<PAGE>
DIRECTORS & OFFICERS
<TABLE>
<CAPTION>
BOARD OF DIRECTORS OFFICERS OFFICE OF THE FUND
<S> <C> <C>
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 800-995-4246
Bruce L. Crockett President
Director, President, and Chief INVESTMENT ADVISOR
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. TRANSFER AGENT
Carol F. Relihan Boston Financial Data Services, Inc.
Carl Frischling Vice President and Secretary P.O. Box 8300
Partner Boston, MA 02266-8300
Kramer, Levin, Naftalis, Nessen, Dana R. Sutton
Kamin & Frankel Vice President CUSTODIAN
and Assistant Treasurer State Street Bank & Trust Company
Robert H. Graham 225 Franklin Street
President Melville B. Cox Boston, MA 02110
A I M Management Group Inc. Vice President
COUNSEL TO THE FUND
John F. Kroeger Jonathan C. Schoolar Ballard Spahr Andrews & Ingersoll
Formerly, Consultant Vice President 1735 Market Street
Wendell & Stockel Associates, Inc. Philadelphia, PA 19103
P. Michelle Grace
Lewis F. Pennock Assistant Secretary COUNSEL TO THE DIRECTORS
Attorney Kramer, Levin, Naftalis,
Nancy L. Martin Nessen, Kamin & Frankel
Ian W. Robinson Assistant Secretary 919 Third Avenue
Consultant; Former Executive New York, NY 10022
Vice President and Ofelia M. Mayo
Chief Financial Officer Assistant Secretary DISTRIBUTOR
Bell Atlantic Management A I M Distributors, Inc.
Services, Inc. Kathleen J. Pflueger 11 Greenway Plaza
Assistant Secretary Suite 1919
Louis S. Sklar Houston, TX 77046
Executive Vice President Samuel D. Sirko
Hines Interests Assistant Secretary
Limited Partnership
Stephen I. Winer
Assistant Secretary
Mary J. Benson
Assistant Treasurer
</TABLE>
21
<PAGE>
[LOGO OF AIM APPEARS HERE]
A I M Distributors, Inc. BULK RATE
11 Greenway Plaza, Suite 1919 U.S. POSTAGE
Houston, Texas 77046 PAID
Houston, TX
Permit No. 2332
This report may be distributed only to current shareholders or to persons who
have received a current prospectus of the Fund.
