<PAGE> 1
SEMIANNUAL REPORT / APRIL 30 2000
AIM SUMMIT FUND, INC.
[COVER IMAGE]
[AIM LOGO APPEARS HERE]
--Registered Trademark--
<PAGE> 2
[ COVER IMAGE ]
-------------------------------------
THE PIONEER CABIN OF THE YOSEMITE VALLEY
BY CURRIER AND IVES
THE LITHOGRAPHY FIRM OF CURRIER AND IVES IMMORTALIZED LIFE IN
19TH-CENTURY AMERICA THROUGH ITS SERIES OF POPULAR PRINTS.
THESE NATIONAL TREASURES SHAPED A WHOLE ERA'S UNDERSTANDING OF
WHAT IT MEANS TO BE "AMERICAN." THIS CLASSIC PIECE PAYS TRIBUTE
TO THE PERSEVERANCE AND DEDICATION OF PIONEERS IN THE AMERICAN
WEST--QUALITIES THAT CHARACTERIZE TODAY'S DISCIPLINED INVESTOR.
-------------------------------------
AIM Summit Fund is for shareholders who seek capital growth through systematic
investments.
ABOUT FUND PERFORMANCE AND PORTFOLIO DATA THROUGHOUT THIS REPORT:
o AIM Summit Fund's performance figures are historical, and they reflect the
reinvestment of distributions and changes in net asset value.
o When sales charges are included in performance figures of Class I shares,
performance reflects the maximum 8.50% sales charge. The 8.50% sales charge
is attributable to the 15-year investment plan. Maximum sales and creation
charges total 8.50% for the smallest plan size, $50 per month. Larger plans
carry lower sales charges as outlined in the prospectus. When sales charges
are included in performance figures of Class II shares, performance reflects
the maximum 3.33% sales charge. The 3.33% sales charge is attributable to
the 15-year investment plan. Maximum sales and creation charges total 3.33%
for the smallest plan size, $50 per month. Larger plans carry lower sales
charges as outlined in the prospectus.
o The fund's average annual total returns as of the close of the reporting
period are shown in the accompanying table. In addition, industry
regulations require us to provide average annual total returns (including
sales charges) as of 3/31/00, the most recent calendar quarter-end, which
were: Class I Shares, one year, 38.71%; five years, 30.32%; 10 years,
20.89%. Class II shares, inception (7/19/99), 32.15% (cumulative total
return).
o Because Class II shares have been offered for less than a year (since
7/19/99), all total return figures for Class II shares reflect cumulative
total returns that have not yet been annualized.
o Dollar-cost averaging does not assure a profit and does not protect against
loss in declining markets. 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.
o The fund's investment return and principal value will fluctuate, so an
investor's shares, when redeemed, may be worth more or less than their
original cost.
ABOUT INDEXES AND OTHER PERFORMANCE BENCHMARKS CITED IN THIS REPORT:
o The unmanaged Dow Jones Industrial Average (the Dow) is a price-weighted
average of 30 actively traded, primarily industrial stocks.
o The National Association of Securities Dealers Automated Quotation System
Composite Index (the Nasdaq) is a market-value-weighted index comprising all
domestic and non-U.S.-based common stocks listed on the Nasdaq system. It
includes more than 5,000 companies, and it is often considered
representative of the small and medium-sized company universe. While it
includes many small and mid-sized company stocks, large-capitalization
technology companies tend to dominate the index.
o The unmanaged Standard & Poor's Composite Index of 500 Stocks (the S&P 500)
represents the performance of the stock market.
o An investment cannot be made in an index. Unless otherwise indicated, index
results include reinvested dividends, and they do not reflect sales charges.
AVERAGE ANNUAL TOTAL RETURNS
As of 4/30/00, including sales charges
CLASS I SHARES
================================================================================
10 Years 20.04%
5 Years 27.22%
1 Year 23.71%*
*35.20%, excluding sales charges
CLASS II SHARES
================================================================================
Inception (7/19/99) 20.65%*
*24.81%, excluding sales charges (cumulative total return)
Past performance cannot guarantee comparable future results. MARKET VOLATILITY
CAN SIGNIFICANTLY IMPACT SHORT-TERM PERFORMANCE. RESULTS OF AN INVESTMENT MADE
TODAY MAY DIFFER SUBSTANTIALLY FROM THE HISTORICAL PERFORMANCE SHOWN.
AN INVESTMENT IN THE FUND IS NOT A DEPOSIT OF A BANK AND IS NOT INSURED OR
GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY OTHER GOVERNMENT
AGENCY. THERE IS A RISK THAT YOU COULD LOSE SOME OR ALL OF YOUR MONEY.
This report may be distributed only to current shareholders or to persons who
have received a current prospectus of the fund.
AIM SUMMIT FUND, INC.
<PAGE> 3
SEMIANNUAL REPORT / CHAIRMAN'S LETTER
Dear Fellow Shareholder:
When we started AIM in 1976, we had only a table, two chairs
[PHOTO OF and a telephone. At the time, Bob Graham, Gary Crum and I
Charles T. had the idea of creating a mutual fund company that put
Bauer, people first. Our slogan, "people are the product," means
Chairman of that people--our employees and our investors-- are our
the Board of company.
THE FUND Almost a quarter-century later, we've grown to more than
APPEARS HERE] seven million investors, $176 billion in assets under
management and 53 retail funds. Over that time, the industry
[PHOTO OF as a whole has grown from $51 billion in assets to more than
Robert H. $7 trillion today. I never dreamed we would see such
Graham, phenomenal growth. You are the main reason for our success,
APPEARS HERE] and I want you to know how much I appreciate your loyalty
and trust over the past 24 years.
Usually in this letter I review market activity during
the period covered by the report. This time, I'd just like
to say thank you. I am retiring as chairman of the AIM Funds
effective September 30, and as chairman of AIM effective December 31, 2000. Bob
Graham, whose picture appears under mine, will succeed me as AIM's chairman and
chairman of the AIM Funds. Gary Crum will remain president of A I M Capital
Management, Inc., leading our investment division. I am enormously proud to
leave AIM in such capable hands.
I'm also very proud of our team of employees, now more than 2,300 strong.
Because of their collective commitment to excellence and ethical business
practices, AIM has earned the trust of investors and financial advisors alike.
And every employee, from portfolio managers to client services representatives,
is dedicated to serving our shareholders.
Rest assured that nothing at AIM will change because of my retirement. You
can still depend on this company to manage your money responsibly and provide
you with top-notch service. As chairman of AIM and chairman of the AIM Funds,
Bob is committed to preserving the things that have made AIM great in the past
and positioning it to succeed in the future. And Gary is dedicated to
maintaining the quality and long-term performance you've come to expect from
AIM.
In the pages that follow, the managers of your fund comment on recent market
activity, how they have managed your fund over the past six months and their
outlook for the coming months. We trust you will find their comments helpful.
If you have any questions or comments, please contact us through our Web
site, www.aimfunds.com, or call our Client Services department at 800-959-4246
during normal business hours. Information about your account is available at our
Web site and on our automated AIM Investor Line, 800-246-5463.
Thank you again for the support and trust you've shown us. I feel privileged
to have helped you with your financial goals, and I wish you success in all your
endeavors.
Sincerely,
/s/ CHARLES T. BAUER
Charles T. Bauer
Chairman, A I M Advisors, Inc.
AIM SUMMIT FUND, INC.
<PAGE> 4
SEMIANNUAL REPORT / MANAGERS' OVERVIEW
FUND OUTPERFORMS DESPITE MARKET VOLATILITY
HOW DID AIM SUMMIT FUND PERFORM OVER THE LAST SIX MONTHS?
For the six months ended April 30, 2000, AIM Summit Fund delivered outstanding
returns. The fund's Class I shares returned 28.76%, and its Class II shares
returned 28.29%. Both significantly outperformed the S&P 500, which returned
7.18% over the same period. These performance figures were calculated at net
asset value, that is, without the effect of sales charges.
The fund's assets continue to grow. Net assets stood at $3.35 billion on
April 30, 2000, an increase of $720 million over the reporting period.
WHAT WERE THE MAJOR TRENDS IN THE FINANCIAL MARKETS DURING THE REPORTING PERIOD?
U.S. equity markets experienced significant volatility during the last six
months. Many technology stocks that soared in 1999 came crashing back to earth
in early 2000 as investors questioned those stocks' valuations. Many investors
abandoned dot-com stocks, concerned that they were overvalued, lacked a clear
business model and might never make a profit.
But even the stocks of large, historically profitable old-economy companies
were not immune to price declines if it appeared they might not meet earnings
expectations. Investors increasingly focused on corporate profits, and many
companies that failed to deliver profits to their shareholders were punished.
There were many reasons for the markets' heightened volatility, including
continued interest-rate hikes by the Federal Reserve Board (the Fed) and
sometimes contradictory economic indicators. The Fed raised short-term interest
rates five times during the last year for a total increase of 125 basis points
(1.25%) in a preemptive effort to contain inflation. (On May 16, shortly after
the close of the reporting period, the Fed raised short-term interest rates by
an additional 50 basis points and signaled it may raise rates further.)
For all the headline-making one-day dips and dives in one market benchmark
or another, it is worth noting that the most widely followed market indexes all
produced positive returns for the six months covered by this report. The S&P 500
rose 7.18%; the Dow eked out a 0.79% gain; and even the Nasdaq, which provoked
the most hand-wringing, was up an impressive 30.14%.
HOW DID YOU REACT TO MARKET VOLATILITY?
We used this market volatility as a buying opportunity. In managing the fund, we
take a long-term investment perspective and look beyond momentary market
weakness. Also, because shareholders make regular monthly contributions, fund
managers have a relatively predictable cash flow that enables them to purchase
quality stocks on a regular basis.
Additionally, AIM Summit Fund's managers maintain a strict buy and sell
discipline regardless of volatility, using fundamental analysis--not emotion--to
decide when to buy and sell individual holdings. Finally, market unrest can
result when investor sentiment switches from growth investing to value investing
or vice versa. Because the fund has both a growth and a value component, fund
managers have identified desirable stocks no matter which segment of the market
is in fashion.
HAS MARKET VOLATILITY AFFECTED ALL STOCKS EQUALLY?
No. Much of the volatility has been concentrated among relatively new Internet
stocks with high valuations and no earnings. The stocks of larger, more
established companies have been comparatively stable. While the technology-laden
Nasdaq was down 5.13% for the first four months of 2000, the S&P 500 Index was
down only 0.79%.
HOW DID YOU MANAGE THE FUND'S PORTFOLIO DURING THE REPORTING PERIOD?
The fund reduced the number of its holdings from 138 to 110 during the period.
Major sectors represented in the portfolio on April 30, 2000 were technology
(49.63%), health care (8.58%), financials (8.39%), consumer cyclicals (5.72%)
and energy (5.19%). Within the technology sector, the fund held stock in
well-established
CUMULATIVE TOTAL RETURNS
For the six months ended 4/30/00,
excluding sales charges
================================================================================
Bar Chart
Summit FUND CLASS I SHARES 28.76%
SUMMIT FUND CLASS II SHARES 28.29%
S&P 500 INDEX 7.18%
================================================================================
GROWTH OF NET ASSETS
In billions
================================================================================
Bar Chart
10/31/99 $2.62
4/30/00 $3.35
================================================================================
See important fund and index disclosures inside front cover.
AIM SUMMIT FUND, INC.
2
<PAGE> 5
SEMIANNUAL REPORT / MANAGERS' OVERVIEW
companies in the computer software and services, communications equipment,
semiconductor electronics and computer networking industries.
We reduced our holdings in the consumer-cyclical sector from about 9.25% to
5.72% of the fund's portfolio, but we continued to hold several retail stocks
with good growth prospects. At the same time, we increased our energy holdings,
particularly in the oil and gas drilling and equipment industry. From early 1999
to early 2000, oil prices more than tripled from $11 per barrel to $34. OPEC's
recent increase in production levels appears to have stabilized oil prices in
the range of $21 to $25, giving large oil producers a greater incentive to
develop new reserves--and improving the profitability of drilling and equipment
companies.
WHAT WERE SOME OF THE FUND'S MAJOR HOLDINGS?
Among the technology firms dominating the portfolio's top 10 holdings was
Oracle, the leading developer of database-management systems software that
allows multiple users and applications access to the same data simultaneously.
Two and a half years ago, Oracle's database sales were increasing at 3% to 5%
per quarter; the company reported that in its most recent quarter, database
sales were up 32%, to $778 million.
The fund's retail holdings included Target, the former Dayton Hudson.
Target, which operates more than 1,200 stores nationwide, is a dominant force in
the discount, mid-range and upscale formats.
A major value holding was Health Management Associates, which operates more
than 30 hospitals in rural areas of 12 states. Each year the company identifies
and buys a handful of financially ailing hospitals with good turnaround
potential located in growing markets; it improves the facilities and recruits
medical specialists to attract patients who previously would have had to travel
to major cities for medical treatment.
WHAT IS YOUR OUTLOOK FOR THE FUTURE?
U.S. and foreign markets may remain volatile for some time because of rising
interest rates and because some investors have yet to figure out the proper way
to value high-growth technology companies. While the Fed traditionally refrains
from raising interest rates during presidential elections, it has made clear its
intention to continue raising rates as necessary to ensure inflation remains in
check.
The pace of technological change continues to accelerate--as does the speed
at which information travels around the globe. The fact is that nothing moves
faster than the speed of light, and that is why information increasingly will be
carried around the world by photons, not neutrons. Expanded bandwidth and the
accelerated transition from copper wire to fiber optics will, we believe, be the
technology story of the next several years--and will benefit industry leaders
such as JDS Uniphase, the fund's top holding at the close of the reporting
period.
Technology and telecommunications companies in the United States and
elsewhere are producing innovative new products and infrastructure that could
result in many years of above-average growth. While further Fed rate hikes could
put pressure on more traditional sectors of the economy, many industry-leading
technology companies have little debt, making them somewhat immune to the
effects of rising interest rates. AIM Summit Fund will continue to strive to own
well-managed, financially strong, industry-leading companies with the potential
to appreciate in the years ahead.
PORTFOLIO COMPOSITION
As of 4/30/00, based on total net assets
<TABLE>
<CAPTION>
==============================================================================================================
TOP 10 HOLDINGS TOP 10 INDUSTRIES
--------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C
1. JDS Uniphase Corp. 5.73% 1. Computers (Software & Services) 15.38%
2. Cisco Systems, Inc. 3.93 2. Communications Equipment 13.28
3. Oracle Corp. 2.79 3. Electronics (Semiconductors) 6.82
4. EMC Corp. 2.66 4. Computers (Networking) 6.32
5. Kansas City Southern Industries, Inc. 2.36 5. Oil & Gas (Drilling & Equipment) 4.71
6. PMC-Sierra, Inc. (Canada) 2.29 6. Biotechnology 3.40
7. Nokia Oyj - ADR (Finland) 2.04 7. Computers (Peripherals) 3.10
8. BEA Systems, Inc. 2.02 8. Financial (Diversified) 2.73
9. Health Management Associates, Inc. - Class A 1.70 9. Railroads 2.36
10. VERITAS Software Corp. 1.68 10. Electrical Equipment 2.32
The fund's portfolio is subject to change, and there is no assurance that the
fund will continue to hold any particular security.
==============================================================================================================
</TABLE>
See important fund and index disclosures inside front cover.
AIM SUMMIT FUND, INC.
3
<PAGE> 6
SCHEDULE OF INVESTMENTS
April 30, 2000
(Unaudited)
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
COMMON STOCKS & OTHER EQUITY
INTERESTS-97.27%
BANKS (MAJOR REGIONAL)-0.42%
FleetBoston Financial Corp. 400,000 $ 14,175,000
---------------------------------------------------------------
BANKS (MONEY CENTER)-0.86%
Bank of America Corp. 590,000 28,910,000
---------------------------------------------------------------
BIOTECHNOLOGY-3.40%
Amgen Inc.(a) 440,000 24,640,000
---------------------------------------------------------------
Chiron Corp.(a) 400,000 18,100,000
---------------------------------------------------------------
Genzyme Corp.(a) 500,000 24,406,250
---------------------------------------------------------------
Immunex Corp.(a) 400,000 15,750,000
---------------------------------------------------------------
Invitrogen Corp.(a) 100,000 6,237,500
---------------------------------------------------------------
PE Corp.-Celera Genomics Group(a) 300,000 24,750,000
---------------------------------------------------------------
113,883,750
---------------------------------------------------------------
COMMUNICATIONS EQUIPMENT-13.28%
CIENA Corp.(a) 230,000 28,433,750
---------------------------------------------------------------
COLT Telecom Group PLC (United
Kingdom)(a) 214,200 9,105,271
---------------------------------------------------------------
Corning Inc. 200,000 39,500,000
---------------------------------------------------------------
JDS Uniphase Corp.(a) 1,850,000 191,821,875
---------------------------------------------------------------
Juniper Networks, Inc.(a) 100,000 21,268,750
---------------------------------------------------------------
Motorola, Inc. 200,000 23,812,500
---------------------------------------------------------------
Nokia Oyj-ADR (Finland) 1,200,000 68,250,000
---------------------------------------------------------------
Scientific-Atlanta, Inc. 350,000 22,771,875
---------------------------------------------------------------
Telefonaktiebolaget LM
Ericsson-ADR (Sweden) 450,000 39,796,875
---------------------------------------------------------------
444,760,896
---------------------------------------------------------------
COMPUTERS (HARDWARE)-1.19%
Dell Computer Corp.(a) 350,000 17,543,750
---------------------------------------------------------------
Sun Microsystems, Inc.(a) 243,000 22,340,812
---------------------------------------------------------------
39,884,562
---------------------------------------------------------------
COMPUTERS (NETWORKING)-6.32%
Cisco Systems, Inc.(a) 1,900,000 131,723,437
---------------------------------------------------------------
Exodus Communications, Inc.(a) 430,000 38,028,125
---------------------------------------------------------------
VeriSign, Inc.(a) 300,000 41,812,500
---------------------------------------------------------------
211,564,062
---------------------------------------------------------------
COMPUTERS (PERIPHERALS)-3.10%
EMC Corp.(a) 640,000 88,920,000
---------------------------------------------------------------
Network Appliance, Inc.(a) 200,000 14,787,500
---------------------------------------------------------------
103,707,500
---------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
COMPUTERS (SOFTWARE &
SERVICES)-15.38%
Adobe Systems, Inc. 200,000 $ 24,187,500
---------------------------------------------------------------
Allaire Corp.(a) 150,000 8,259,375
---------------------------------------------------------------
BEA Systems, Inc.(a) 1,400,000 67,550,000
---------------------------------------------------------------
BroadVision, Inc.(a) 300,000 13,181,250
---------------------------------------------------------------
Computer Associates International,
Inc. 690,000 38,510,625
---------------------------------------------------------------
eBay, Inc.(a) 140,000 22,286,250
---------------------------------------------------------------
InfoSpace.com, Inc.(a) 400,000 28,725,000
---------------------------------------------------------------
Inktomi Corp.(a) 300,000 46,181,250
---------------------------------------------------------------
Intuit Inc.(a) 450,000 16,171,875
---------------------------------------------------------------
Microsoft Corp.(a) 670,000 46,732,500
---------------------------------------------------------------
Oracle Corp.(a) 1,170,000 93,526,875
---------------------------------------------------------------
Siebel Systems, Inc.(a) 110,000 13,516,250
---------------------------------------------------------------
VERITAS Software Corp.(a) 525,000 56,314,453
---------------------------------------------------------------
WatchGuard Technologies, Inc.(a) 100,000 4,818,750
---------------------------------------------------------------
Yahoo! Inc.(a) 270,000 35,167,500
---------------------------------------------------------------
515,129,453
---------------------------------------------------------------
DISTRIBUTORS (FOOD & HEALTH)-0.86%
McKesson HBOC, Inc. 1,710,000 28,856,250
---------------------------------------------------------------
ELECTRIC COMPANIES-1.16%
Niagara Mohawk Holdings Inc.(a) 1,435,000 19,910,625
---------------------------------------------------------------
Texas Utilities Co. 560,000 18,865,000
---------------------------------------------------------------
38,775,625
---------------------------------------------------------------
ELECTRICAL EQUIPMENT-2.32%
EchoStar Communications Corp.(a) 285,000 18,150,937
---------------------------------------------------------------
General Electric Co. 150,000 23,587,500
---------------------------------------------------------------
Koninklijke (Royal) Philips
Electronics N.V.-ADR
(Netherlands) 804,000 35,878,500
---------------------------------------------------------------
77,616,937
---------------------------------------------------------------
ELECTRONICS (COMPONENT
DISTRIBUTORS)-0.64%
Kycocera Corp.-ADR (Japan) 130,000 21,588,125
---------------------------------------------------------------
ELECTRONICS (DEFENSE)-1.29%
General Motors Corp.-Class H(a) 450,000 43,340,625
---------------------------------------------------------------
</TABLE>
4
<PAGE> 7
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
ELECTRONICS
(INSTRUMENTATION)-1.61%
Alpha Industries, Inc.(a) 460,000 $ 23,920,000
---------------------------------------------------------------
PE Corp-PE Biosystems Group 500,000 30,000,000
---------------------------------------------------------------
53,920,000
---------------------------------------------------------------
ELECTRONICS (SEMICONDUCTORS)-6.82%
Advanced Micro Devices, Inc.(a) 200,000 17,550,000
---------------------------------------------------------------
Analog Devices, Inc.(a) 200,000 15,362,500
---------------------------------------------------------------
Broadcom Corp.-Class A(a) 200,000 34,475,000
---------------------------------------------------------------
Maxim Integrated Products, Inc.(a) 200,000 12,962,500
---------------------------------------------------------------
Microchip Technology, Inc.(a) 180,000 11,171,250
---------------------------------------------------------------
PMC-Sierra, Inc. (Canada)(a) 400,000 76,750,000
---------------------------------------------------------------
SDL, Inc.(a) 100,000 19,500,000
---------------------------------------------------------------
Texas Instruments Inc. 250,000 40,718,750
---------------------------------------------------------------
228,490,000
---------------------------------------------------------------
ENTERTAINMENT-0.65%
Walt Disney Co. (The) 500,000 21,656,250
---------------------------------------------------------------
FINANCIAL (DIVERSIFIED)-2.73%
American Express Co. 44,000 6,602,750
---------------------------------------------------------------
Citigroup Inc. 575,000 34,176,562
---------------------------------------------------------------
Freddie Mac 480,000 22,050,000
---------------------------------------------------------------
MGIC Investment Corp. 600,000 28,687,500
---------------------------------------------------------------
91,516,812
---------------------------------------------------------------
HEALTH CARE (DIVERSIFIED)-0.43%
Warner-Lambert Co. 125,000 14,226,562
---------------------------------------------------------------
HEALTH CARE (DRUGS-GENERIC &
OTHER)-0.38%
Genetech, Inc.(a) 110,000 12,870,000
---------------------------------------------------------------
HEALTH CARE (HOSPITAL
MANAGEMENT)-1.70%
Health Management Associates,
Inc.-Class A(a) 3,564,000 56,801,250
---------------------------------------------------------------
HEALTH CARE (LONG TERM CARE)-0.41%
Manor Care, Inc.(a) 1,146,300 13,683,956
---------------------------------------------------------------
HEALTH CARE (MANAGED CARE)-1.62%
Oxford Health Plans, Inc.(a) 470,000 8,930,000
---------------------------------------------------------------
UnitedHealth Group Inc. 680,000 45,347,500
---------------------------------------------------------------
54,277,500
---------------------------------------------------------------
HEALTH CARE (MEDICAL PRODUCTS &
SUPPLIES)-0.64%
Beckman Coulter, Inc. 330,000 21,388,125
---------------------------------------------------------------
INSURANCE (LIFE/HEALTH)-0.50%
AXA Financial, Inc. 508,000 16,573,500
---------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
INSURANCE (MULTI-LINE)-0.86%
American International Group, Inc. 261,937 $ 28,731,215
---------------------------------------------------------------
INSURANCE
(PROPERTY-CASUALTY)-0.78%
XL Capital Ltd.-Class A 550,000 26,193,750
---------------------------------------------------------------
INSURANCE BROKERS-1.04%
Aon Corp. 1,285,000 34,775,312
---------------------------------------------------------------
INVESTMENT BANKING/BROKERAGE-0.71%
Morgan Stanley Dean Witter & Co. 308,000 23,639,000
---------------------------------------------------------------
LEISURE TIME (PRODUCTS)-0.95%
Mattel, Inc. 2,590,000 31,727,500
---------------------------------------------------------------
MANUFACTURING (SPECIALIZED)-0.94%
Parker-Hannifin Corp. 678,000 31,527,000
---------------------------------------------------------------
NATURAL GAS-0.81%
Dynegy Inc.-Class A 415,000 27,156,563
---------------------------------------------------------------
OIL & GAS (DRILLING &
EQUIPMENT)-4.71%
BJ Services Co.(a) 400,000 28,100,000
---------------------------------------------------------------
Diamond Offshore Drilling, Inc. 470,000 18,946,875
---------------------------------------------------------------
ENSCO International Inc. 730,000 24,226,875
---------------------------------------------------------------
Schlumberger Ltd. 439,000 33,610,938
---------------------------------------------------------------
Transocean Sedco Forex Inc. 1,125,336 52,890,792
---------------------------------------------------------------
157,775,480
---------------------------------------------------------------
OIL (DOMESTIC INTEGRATED)-0.48%
BP Amoco PLC-ADR (United Kingdom) 232,880 11,876,880
---------------------------------------------------------------
USX-Marathon Group 175,500 4,091,344
---------------------------------------------------------------
15,968,224
---------------------------------------------------------------
PAPER & FOREST PRODUCTS-0.75%
Georgia-Pacific Group 380,000 13,965,000
---------------------------------------------------------------
International Paper Co. 305,000 11,208,750
---------------------------------------------------------------
25,173,750
---------------------------------------------------------------
RAILROADS-2.36%
Kansas City Southern Industries,
Inc. 1,100,000 79,062,500
---------------------------------------------------------------
REAL ESTATE INVESTMENT
TRUSTS-0.49%
Starwood Hotels & Resorts
Worldwide, Inc. 575,000 16,351,563
---------------------------------------------------------------
RETAIL (COMPUTERS & ELECTRONICS)-1.21%
Best Buy Co., Inc.(a) 500,000 40,375,000
---------------------------------------------------------------
RETAIL (DEPARTMENT STORES)-0.60%
Federated Department Stores,
Inc.(a) 590,000 20,060,000
---------------------------------------------------------------
RETAIL (FOOD CHAINS)-2.07%
Albertson's, Inc. 1,070,000 34,841,875
---------------------------------------------------------------
</TABLE>
5
<PAGE> 8
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
RETAIL (FOOD CHAINS)-(CONTINUED)
Kroger Co. (The)(a) 1,856,000 $ 34,452,000
---------------------------------------------------------------
69,293,875
---------------------------------------------------------------
RETAIL (GENERAL MERCHANDISE)-0.89%
Target Corp. 200,000 13,312,500
---------------------------------------------------------------
Wal-Mart Stores, Inc. 300,000 16,612,500
---------------------------------------------------------------
29,925,000
---------------------------------------------------------------
SERVICES
(ADVERTISING/MARKETING)-0.41%
Omnicom Group, Inc. 150,000 13,659,375
---------------------------------------------------------------
SERVICES (COMMERCIAL &
CONSUMER)-1.51%
Ariba, Inc.(a) 440,000 32,642,500
---------------------------------------------------------------
IMS Health, Inc. 1,040,000 17,745,000
---------------------------------------------------------------
50,387,500
---------------------------------------------------------------
SERVICES (COMPUTER SYSTEMS)-2.13%
Brocade Communications Systems,
Inc.(a) 450,000 55,800,000
---------------------------------------------------------------
SunGard Data Systems, Inc.(a) 450,000 15,553,125
---------------------------------------------------------------
71,353,125
---------------------------------------------------------------
SERVICES (DATA PROCESSING)-1.40%
Equifax, Inc. 500,000 12,218,750
---------------------------------------------------------------
First Data Corp. 712,000 34,665,500
---------------------------------------------------------------
46,884,250
---------------------------------------------------------------
TELECOMMUNICATIONS (CELLULAR/
WIRELESS)-1.30%
Phone.com, Inc.(a) 150,000 12,600,000
---------------------------------------------------------------
Western Wireless Corp.-Class A(a) 625,000 31,054,688
---------------------------------------------------------------
43,654,688
---------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
TELECOMMUNICATIONS (LONG
DISTANCE)-0.54%
KPNQwest N.V. (Netherlands)(a) 150,000 $ 6,037,500
---------------------------------------------------------------
WinStar Communications, Inc.(a) 300,000 11,962,500
---------------------------------------------------------------
18,000,000
---------------------------------------------------------------
TELEPHONE-1.74%
Allegiance Telecom, Inc.(a) 32,700 2,313,525
---------------------------------------------------------------
Bell Atlantic Corp. 200,000 11,850,000
---------------------------------------------------------------
Qwest Communications
International, Inc.(a) 650,000 28,193,750
---------------------------------------------------------------
US West, Inc. 225,000 16,017,188
---------------------------------------------------------------
58,374,463
---------------------------------------------------------------
WASTE MANAGEMENT-0.88%
Waste Management, Inc. 1,861,000 29,543,375
---------------------------------------------------------------
Total Common Stocks & Other
Equity Interests (Cost
$2,182,133,942) 3,257,189,248
---------------------------------------------------------------
MONEY MARKET FUNDS-2.76%
STIC Liquid Assets Portfolio(b) 46,251,612 46,251,612
---------------------------------------------------------------
STIC Prime Portfolio(b) 46,251,612 46,251,612
---------------------------------------------------------------
Total Money Market Funds (Cost
$92,503,224) 92,503,224
---------------------------------------------------------------
TOTAL INVESTMENTS-100.03% (Cost
$2,274,637,166) 3,349,692,472
---------------------------------------------------------------
LIABILITIES LESS OTHER
ASSETS-(0.03%) (997,083)
---------------------------------------------------------------
NET ASSETS-100.00% $3,348,695,389
---------------------------------------------------------------
</TABLE>
Investment Abbreviations:
ADR - American Depositary Receipt
Notes to Schedule of Investments:
(a) Non-income producing security.
(b) The money market fund has the same investment advisor as the Fund.
See Notes to Financial Statements.
6
<PAGE> 9
STATEMENT OF ASSETS AND LIABILITIES
April 30, 2000
(Unaudited)
<TABLE>
<S> <C>
ASSETS:
Investments, at market value (cost
$2,274,637,166) $3,349,692,472
-------------------------------------------------------------
Receivables for:
Investments sold 5,643,231
-------------------------------------------------------------
Capital stock sold 125,523
-------------------------------------------------------------
Dividends and interest 1,457,367
-------------------------------------------------------------
Investment for deferred compensation plan 57,806
-------------------------------------------------------------
Other assets 24,851
-------------------------------------------------------------
Total assets 3,357,001,250
-------------------------------------------------------------
LIABILITIES:
Payables for:
Investments purchased 5,909,647
-------------------------------------------------------------
Capital stock reacquired 466,879
-------------------------------------------------------------
Deferred compensation 57,806
-------------------------------------------------------------
Accrued advisory fees 1,713,684
-------------------------------------------------------------
Accrued administrative services fees 15,907
-------------------------------------------------------------
Accrued distribution fees-Class II 1,400
-------------------------------------------------------------
Accrued transfer agent fees 73,830
-------------------------------------------------------------
Accrued operating expenses 66,708
-------------------------------------------------------------
Total liabilities 8,305,861
-------------------------------------------------------------
Net assets applicable to shares outstanding $3,348,695,389
=============================================================
NET ASSETS:
Class I $3,342,378,937
=============================================================
Class II $ 6,316,452
=============================================================
Capital stock, $0.01 par value per share:
Class I:
Authorized 1,000,000,000
-------------------------------------------------------------
Outstanding 149,175,952
-------------------------------------------------------------
Class II:
Authorized 1,000,000,000
-------------------------------------------------------------
Outstanding 283,803
-------------------------------------------------------------
Class I
Net asset value price per share $ 22.41
=============================================================
Class II
Net asset value price per share $ 22.26
=============================================================
</TABLE>
STATEMENT OF OPERATIONS
For the six months ended April 30, 2000
(Unaudited)
<TABLE>
<S> <C>
INVESTMENT INCOME:
Dividends (net of $126,974 foreign withholding
tax) $ 9,983,272
------------------------------------------------------------
Interest 40,611
------------------------------------------------------------
Total investment income 10,023,883
------------------------------------------------------------
EXPENSES:
Advisory fees 10,443,626
------------------------------------------------------------
Administrative services fees 100,896
------------------------------------------------------------
Custodian fees 87,506
------------------------------------------------------------
Distribution fees-Class II 1,813
------------------------------------------------------------
Transfer agent fees 152,256
------------------------------------------------------------
Directors' fees 8,380
------------------------------------------------------------
Other 180,477
------------------------------------------------------------
Total expenses 10,974,954
------------------------------------------------------------
Less: Expenses paid indirectly (12,043)
------------------------------------------------------------
Expenses reimbursed (49,427)
------------------------------------------------------------
Net expenses 10,913,484
------------------------------------------------------------
Net investment income (loss) (889,601)
------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) FROM
INVESTMENT SECURITIES, FOREIGN CURRENCIES
AND OPTION CONTRACTS:
Net realized gain (loss) from:
Investment securities 597,483,047
------------------------------------------------------------
Foreign currencies 69,511
------------------------------------------------------------
Option contracts written 262,376
------------------------------------------------------------
597,814,934
------------------------------------------------------------
Change in net unrealized appreciation (depreciation) of:
Investment securities 157,740,161
------------------------------------------------------------
Foreign currencies (780)
------------------------------------------------------------
157,739,381
------------------------------------------------------------
Net gain from investment securities and
foreign currencies 755,554,315
------------------------------------------------------------
Net increase in net assets resulting from
operations $754,664,714
=============================================================
</TABLE>
See Notes to Financial Statements.
7
<PAGE> 10
STATEMENT OF CHANGES IN NET ASSETS
For the six months ended April 30, 2000 and the year ended October 31, 1999
(Unaudited)
<TABLE>
<CAPTION>
APRIL 30, OCTOBER 31,
2000 1999
-------------- --------------
<S> <C> <C>
OPERATIONS:
Net investment income (loss) $ (889,601) $ (139,035)
----------------------------------------------------------- -------------- --------------
Net realized gain from investment securities foreign
currencies and options contracts 597,814,934 418,534,180
----------------------------------------------------------- -------------- --------------
Change in net unrealized appreciation of investment
securities and foreign currencies 157,739,381 367,176,021
----------------------------------------------------------- -------------- --------------
Net increase in net assets resulting from operations 754,664,714 785,571,166
----------------------------------------------------------- -------------- --------------
Distributions to shareholders from net investment
income-Class I -- (4,242,441)
----------------------------------------------------------- -------------- --------------
Distributions to shareholders from net realized gains:
----------------------------------------------------------- -------------- --------------
Class I (413,691,755) (112,082,098)
----------------------------------------------------------- -------------- --------------
Class II (242,396) --
----------------------------------------------------------- -------------- --------------
Share transactions-net:
----------------------------------------------------------- -------------- --------------
Class I 377,748,329 124,655,784
----------------------------------------------------------- -------------- --------------
Class II 5,601,488 680,370
----------------------------------------------------------- -------------- --------------
Net increase in net assets 724,080,380 794,582,781
----------------------------------------------------------- -------------- --------------
NET ASSETS:
Beginning of period 2,624,615,009 1,830,032,228
----------------------------------------------------------- -------------- --------------
End of period $3,348,695,389 $2,624,615,009
=========================================================== ============== ==============
NET ASSETS CONSIST OF:
Capital (par value and additional paid-in) $1,673,670,573 $1,290,320,756
----------------------------------------------------------- -------------- --------------
Undistributed net investment income (loss) (983,895) (94,294)
----------------------------------------------------------- -------------- --------------
Undistributed net realized gain from investment
securities, foreign currencies and option contracts 600,954,185 417,073,402
----------------------------------------------------------- -------------- --------------
Net unrealized appreciation of investment securities and
foreign currencies 1,075,054,526 917,315,145
----------------------------------------------------------- -------------- --------------
$3,348,695,389 $2,624,615,009
=========================================================== ============== ==============
</TABLE>
See Notes to Financial Statements.
8
<PAGE> 11
NOTES TO FINANCIAL STATEMENTS
April 30, 2000
(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 (the "1940 Act"), as a
diversified, open-end management investment company. The Fund consists of two
classes of shares: Class I shares and Class II shares. Class II shares commenced
sales on July 19, 1999. The Fund's investment objective is growth of capital.
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenses during
the reporting period. Actual results could differ from those estimates. The
following is a summary of the significant accounting policies followed by the
Fund in the preparation of its financial statements.
A. Security Valuations -- A security listed or traded on an exchange (except
convertible bonds) is valued at its last sales price as of the close of the
customary trading session on the exchange where the security is principally
traded, or lacking any sales on a particular day, the security is valued at
the closing bid price on that day. Each security reported on the NASDAQ
National Market System is valued at the last sales price on the valuation
date or absent a last sales price, at the closing bid price. Debt
obligations (including convertible bonds) are valued on the basis of prices
provided by an independent pricing service. Prices provided by the pricing
service may be determined without exclusive reliance on quoted prices, and
may reflect appropriate factors such as yield, type of issue, coupon rate
and maturity date. Securities for which market prices are not provided by
any of the above methods are valued based upon quotes furnished by
independent sources and are valued at the last bid price in the case of
equity securities and in the case of debt obligations, the mean between the
last bid and asked prices. Securities for which market quotations are not
readily available or are questionable are valued at fair value as
determined in good faith by or under the supervision of the Company's
officers in a manner specifically authorized by the Board of Directors of
the Company. Short-term obligations having 60 days or less to maturity are
valued at amortized cost which approximates market value. For purposes of
determining net asset value per share, futures and option contracts
generally will be valued 15 minutes after the close of the customary
trading session of the New York Stock Exchange ("NYSE").
Generally, trading in foreign securities is substantially completed
each day at various times prior to the close of the NYSE. The values of
such securities used in computing the net asset value of the Fund's shares
are determined as of such times. Foreign currency exchange rates are also
generally determined prior to the close of the NYSE. Occasionally, events
affecting the values of such securities and such exchange rates may occur
between the times at which they are determined and the close of the
customary trading session of the NYSE which would not be reflected in the
computation of the Fund's net asset value. If events materially affecting
the value of such securities occur during such period, then these
securities will be valued at their fair value as determined in good faith
by or under the supervision of the Board of Directors.
B. Securities Transactions and Investment Income -- Securities transactions
are accounted for on a trade date basis. Realized gains or losses on sales
are computed on the basis of specific identification of the securities
sold. Interest income is recorded as earned from settlement date and is
recorded on the accrual basis. Dividend income is recorded on the
ex-dividend date.
C. Distributions -Distributions from income and net realized capital gains,
if any, are generally paid annually and recorded on ex-dividend date. The
Fund may elect to use a portion of the proceeds from redemptions as
distributions for federal income tax purposes.
D. Federal Income Taxes -- The Fund intends to comply with the requirements of
the Internal Revenue Code necessary to qualify as a regulated investment
company and, as such, will not be subject to federal income taxes on
otherwise taxable income (including net realized capital gains) which is
distributed to shareholders. Therefore, no provision for federal income
taxes is recorded in the financial statements.
E. Foreign Currency Translations -- Portfolio securities and other assets and
liabilities denominated in foreign currencies are translated into U.S.
dollar amounts at date of valuation. Purchases and sales of portfolio
securities and income items denominated in foreign currencies are
translated into U.S. dollar amounts on the respective dates of such
transactions. The Fund does not separately account for that portion of the
results of operations resulting from changes in foreign exchange rates on
investments and the fluctuations arising from changes in market prices of
securities held. Such fluctuations are included with the net realized and
unrealized gain or loss from investments.
F. Foreign Currency Contracts -- A foreign currency contract is an obligation
to purchase or sell a specific currency for an agreed-upon price at a
future date. The Fund may enter into a foreign currency contract to attempt
to minimize the risk to the Fund from adverse changes in the relationship
between currencies. The Fund may also enter into a foreign currency
contract for the purchase or sale of a security denominated in a foreign
currency in order to "lock in" the U.S. dollar price of that security. The
Fund could be exposed to risk if counterparties to the contracts are unable
to meet the terms of their contracts or if the value of the foreign
currency changes unfavorably.
G. Covered Call Options -- The Fund may write call options, on a covered
basis; that is, the Fund will own the underlying
9
<PAGE> 12
security. Options written by the Fund normally will have expiration dates
between three and nine months from the date written. The exercise price of
a call option may be below, equal to, or above the current market value of
the underlying security at the time the option is written. When the Fund
writes a covered call option, an amount equal to the premium received by
the Fund is recorded as an asset and an equivalent liability. The amount of
the liability is subsequently "marked-to-market" to reflect the current
market value of the option written. The current market value of a written
option is the mean between the last bid and asked prices on that day. If a
written call option expires on the stipulated expiration date, or if the
Fund enters into a closing purchase transaction, the Fund realizes a gain
(or a loss if the closing purchase transaction exceeds the premium received
when the option was written) without regard to any unrealized gain or loss
on the underlying security, and the liability related to such option is
extinguished. If a written option is exercised, the Fund realizes a gain or
a loss from the sale of the underlying security and the proceeds of the
sale are increased by the premium originally received.
A call option gives the purchaser of such option the right to buy, and the
writer (the Fund) the obligation to sell, the underlying security at the stated
exercise price during the option period. The purchaser of a call option has the
right to acquire the security which is the subject of the call option at any
time during the option period. During the option period, in return for the
premium paid by the purchaser of the option, the Fund has given up the
opportunity for capital appreciation above the exercise price should the market
price of the underlying security increase, but has retained the risk of loss
should the price of the underlying security decline. During the option period,
the Fund may be required at any time to deliver the underlying security against
payment of the exercise price. This obligation is terminated upon the expiration
of the option period or at such earlier time at which the Fund effects a closing
purchase transaction by purchasing (at a price which may be higher than that
received when the call option was written) a call option identical to the one
originally written.
H. Bond Premiums -- It is the policy of the Fund not to amortize market
premiums on bonds for financial reporting purposes.
I. Expenses -- Distribution expenses and certain transfer agency expenses
directly attributable to a class of shares are charged to those classes'
operations. All other expenses which are attributable to more than one
class are allocated among the classes.
NOTE 2-ADVISORY FEES AND OTHER TRANSACTIONS WITH AFFILIATES
The Fund has entered into a master investment advisory agreement with A I M
Advisors, Inc. ("AIM"). Under the terms of the master investment advisory
agreement, the Fund pays an advisory fee to AIM at the annual rate of 1.00% of
the first $10 million of the Fund's average daily net assets, plus 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. AIM has contractually
agreed to limit the Class II expenses (excluding interest, taxes, dividends on
short sales, extraordinary items and increases in expenses due to offset
arrangements, if any) to the maximum annual rate of 1.50% of the average daily
net assets of the Fund's Class II shares. During the six months ended April 30,
2000, AIM reimbursed expenses of $49,427.
The Fund, pursuant to a master administrative services agreement with AIM, has
agreed to pay AIM for certain administrative costs incurred in providing
accounting services to the Fund. For the six months ended April 30, 2000, AIM
was paid $100,896 for such services.
Effective March 13, 2000, the Fund, pursuant to a transfer agency and service
agreement, has agreed to pay A I M Fund Services, Inc. ("AFS") a fee for
providing transfer agency and shareholder services to the Fund.
The Fund has entered into a Distribution Agreement with A I M Distributors,
Inc. ("AIM Distributors") to serve as the distributor for the Fund. The Fund has
adopted a plan pursuant to Rule 12b-1 under the 1940 Act with respect to the
Fund's Class II shares (the "Distribution Plan"). The Fund, pursuant to the
Distribution Plan, pays AIM Distributors compensation at the annual rate of
0.30% of the Fund's average daily net assets of Class II shares. Of this amount,
the Fund may pay a service fee of 0.25% of the average daily net assets of Class
II shares to selected dealers and financial institutions who furnish continuing
personal shareholder services to their customers who purchase and own Class II
shares of the Fund. Any amounts not paid as a service fee under the Distribution
Plan would constitute an asset-based sales charge. The Distribution Plan also
imposes a cap on the total sales charges, including asset-based sales charges
that may be paid by the Class II shares. During the six months ended April 30,
2000, the Class II shares paid AIM Distributors $1,813 as compensation under the
Plan.
During the six months ended April 30, 2000, the Fund paid legal fees of $3,049
for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the
Company's directors. A member of that firm is a director of the Company.
Substantially all shares of the Fund are held of record by State Street Bank
and Trust Company as custodian for AIM Summit Investors Plans I and II, unit
investments trusts that are sponsored by AIM Distributors.
Certain officers and directors of the Fund are officers of AIM and AIM
Distributors.
NOTE 3-INDIRECT EXPENSES
During the six months ended April 30, 2000, the Fund received reductions in
custodian fees of $12,043 under an expense offset arrangement. The effect of the
above arrangement resulted in a reduction of the Fund's total expenses of
$12,043 during the six months ended April 30, 2000.
NOTE 4-DIRECTORS' FEES
Directors' fees represent remuneration paid to directors who are not an
"interested person" of AIM. The Company invests directors' fees, if so elected
by a director, in mutual fund shares in accordance with a deferred compensation
plan.
10
<PAGE> 13
NOTE 5-BANK BORROWINGS
The Fund is a participant in a committed line of credit facility with a
syndicate administered by The Chase Manhattan Bank. The Fund may borrow up to
the lesser of (i) $1,000,000,000 or (ii) the limits set by its prospectus for
borrowings. The Fund and other funds advised by AIM which are parties to the
line of credit may borrow on a first come, first served basis. During the six
months ended April 30, 2000, the Fund did not borrow under the line of credit
agreement. The funds which are party to the line of credit are charged a
commitment fee of 0.09% on the unused balance of the committed line. The
commitment fee is allocated among the funds based on their respective average
net assets for the period.
NOTE 6-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, 2000 was
$1,874,305,552 and $1,917,740,975, respectively.
The amount of unrealized appreciation of investment securities, for tax
purposes, as of April 30, 2000 is as follows:
<TABLE>
<S> <C>
Aggregate unrealized appreciation of investment securities $1,079,423,416
------------------------------------------------------------ --------------
Aggregate unrealized (depreciation) of investment securities (9,176,181)
------------------------------------------------------------ --------------
Net unrealized appreciation of investment securities $1,070,247,235
============================================================ ==============
</TABLE>
Cost of investments for tax purposes is $2,279,445,237.
NOTE 7-CALL OPTION CONTRACTS
Transactions in call options written during the six months ended April 30, 2000
are summarized as follows:
<TABLE>
<CAPTION>
CALL OPTION CONTRACTS
---------------------
NUMBER OF PREMIUMS
CONTRACTS RECEIVED
--------- ---------
<S> <C> <C>
Beginning of period -- $ --
---------------------------------------------------- ------- ---------
Written 1,300 577,573
---------------------------------------------------- ------- ---------
Closed (1,300) (577,573)
---------------------------------------------------- ------- ---------
End of period -- --
==================================================== ======= =========
</TABLE>
NOTE 8-CAPITAL STOCK
Changes in capital stock outstanding during the six months ended April 30, 2000
and the year ended October 31, 1999 were as follows:
<TABLE>
<CAPTION>
APRIL 30, 2000 OCTOBER 31, 1999
-------------------------- --------------------------
SHARES AMOUNT SHARES AMOUNT
----------- ------------ ----------- ------------
<S> <C> <C> <C> <C>
Sold:
Class I 12,595,886 $272,947,905 13,483,892 $237,827,156
------------------------------------------------------- ----------- ------------ ----------- ------------
Class II* 255,089 5,773,271 36,977 708,414
------------------------------------------------------- ----------- ------------ ----------- ------------
Issued as reinvestment of dividends:
Class I 19,231,825 383,484,063 7,006,133 112,308,495
------------------------------------------------------- ----------- ------------ ----------- ------------
Class II* 12,205 242,395 -- --
------------------------------------------------------- ----------- ------------ ----------- ------------
Reacquired:
Class I (12,770,259) (278,683,639) (12,707,834) (225,479,867)
------------------------------------------------------- ----------- ------------ ----------- ------------
Class II* (18,995) (414,178) (1,473) (28,044)
------------------------------------------------------- ----------- ------------ ----------- ------------
19,305,751 $383,349,817 7,817,695 $125,336,154
======================================================= =========== ============ =========== ============
</TABLE>
* Class II shares commenced sales on July 19, 1999.
11
<PAGE> 14
NOTE 9-FINANCIAL HIGHLIGHTS
Contained below is per share operating performance data for a share outstanding
throughout each period, total investment return, ratios and supplemental data.
This information has been derived from information provided in the financial
statements.
<TABLE>
<CAPTION>
CLASS I CLASS II
-------------------------------------------------------------------------- ----------
SIX MONTHS SIX MONTHS
ENDED YEAR ENDED OCTOBER 31, ENDED
APRIL 30, ----------------------------------------------------------- APRIL 30,
2000 1999 1998 1997 1996 1995 2000
----------- ---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 20.17 $ 14.96 $ 15.15 $ 12.99 $ 12.14 $ 9.78 $ 20.12
-------------------------------------- ---------- ---------- ---------- ---------- ---------- ---------- ---------
Income from investment operations:
Net investment income (loss) (0.01) -- 0.03 0.02 0.04 0.04 (0.05)
-------------------------------------- ---------- ---------- ---------- ---------- ---------- ---------- ---------
Net gains (losses) on securities
(both realized and unrealized) 5.42 6.16 1.23 3.34 1.69 2.81 5.36
-------------------------------------- ---------- ---------- ---------- ---------- ---------- ---------- ---------
Total from investment operations 5.41 6.16 1.26 3.36 1.73 2.85 5.31
-------------------------------------- ---------- ---------- ---------- ---------- ---------- ---------- ---------
Less distributions:
Dividends from net investment income -- (0.04) (0.02) (0.03) (0.03) (0.10) --
-------------------------------------- ---------- ---------- ---------- ---------- ---------- ---------- ---------
Distributions from net realized
gains (3.17) (0.91) (1.43) (1.17) (0.85) (0.39) (3.17)
-------------------------------------- ---------- ---------- ---------- ---------- ---------- ---------- ---------
Total distributions (3.17) (0.95) (1.45) (1.20) (0.88) (0.49) (3.17)
-------------------------------------- ---------- ---------- ---------- ---------- ---------- ---------- ---------
Net asset value, end of period $ 22.41 $ 20.17 $ 14.96 $ 15.15 $ 12.99 $ 12.14 $ 22.26
-------------------------------------- ---------- ---------- ---------- ---------- ---------- ---------- ---------
Total return(a) 28.76% 42.79% 9.49% 28.53% 15.61% 31.03% 28.29%
-------------------------------------- ---------- ---------- ---------- ---------- ---------- ---------- ---------
Ratios/supplemental data:
Net assets, end of period (000s
omitted) $3,342,379 $2,623,901 $1,830,032 $1,650,234 $1,261,008 $1,050,011 $ 6,316
-------------------------------------- ---------- ---------- ---------- ---------- ---------- ---------- ---------
Ratio of expenses to average net
assets: 0.66%(b) 0.67% 0.67% 0.68% 0.70% 0.71% 1.50%(b)(c)
-------------------------------------- ---------- ---------- ---------- ---------- ---------- ---------- ---------
Ratio of net investment income (loss)
to average net assets (0.05)%(b) (0.01)% 0.23% 0.11% 0.29% 0.33% (0.89)%(b)
-------------------------------------- ---------- ---------- ---------- ---------- ---------- ---------- ---------
Portfolio turnover rate 60% 92% 83% 88% 118% 126% 60%
====================================== ========== ========== ========== ========== ========== ========== =========
<CAPTION>
CLASS II
-------------
JULY 19, 1999
(DATE SALES
COMMENCED) TO
OCTOBER 31,
1999
-------------
<S> <C>
Net asset value, beginning of period $20.68
-------------------------------------- ------
Income from investment operations:
Net investment income (loss) --
-------------------------------------- ------
Net gains (losses) on securities
(both realized and unrealized) (0.56)
-------------------------------------- ------
Total from investment operations (0.56)
-------------------------------------- ------
Less distributions:
Dividends from net investment income --
-------------------------------------- ------
Distributions from net realized
gains --
-------------------------------------- ------
Total distributions --
-------------------------------------- ------
Net asset value, end of period $20.12
-------------------------------------- ------
Total return(a) (2.71)%
-------------------------------------- ------
Ratios/supplemental data:
Net assets, end of period (000s
omitted) $ 714
-------------------------------------- ------
Ratio of expenses to average net
assets: 1.46%(d)
-------------------------------------- ------
Ratio of net investment income (loss)
to average net assets (0.80)%(d)
-------------------------------------- ------
Portfolio turnover rate 92%
====================================== ======
</TABLE>
(a) Does not deduct sales charges and is not annualized for periods less than
one year.
(b) Ratios are annualized and based on average net assets of $3,318,470,172 and
$3,300,653 for Class I and Class II, respectively.
(c) After fee waivers and/or expense reimbursements. Ratio of expenses to
average net assets prior to fee waivers and/or expense reimbursement was
4.51% (annualized).
(d) Annualized.
NOTE 10-SUBSEQUENT EVENTS
At a Special Meeting of shareholders on Wednesday, May 3, 2000, the following
proposals were passed to be effective at the end of July 2000 or soon
thereafter.
(a) Approval of the adoption of a Distribution Plan for the Class I shares of
the fund pursuant to Rule 12b-1 under the Investment Company Act of 1940.
(b) Approval of a Plan of Recapitalization pursuant to which the Charter of the
fund will be amended to reclassify the Class II shares of the fund as Class
I shares of the fund.
12
<PAGE> 15
<TABLE>
<CAPTION>
BOARD OF DIRECTORS OFFICERS OFFICE OF THE FUND
<S> <C> <C>
Charles T. Bauer Charles T. Bauer 11 Greenway Plaza
Chairman Chairman Suite 100
A I M Management Group Inc. Houston, TX 77046
Robert H. Graham
Bruce L. Crockett President INVESTMENT ADVISOR
Director
ACE Limited; Carol F. Relihan A I M Advisors, Inc.
Formerly Director, President, and Senior Vice President and Secretary 11 Greenway Plaza
Chief Executive Officer Suite 100
COMSAT Corporation Gary T. Crum Houston, TX 77046
Senior Vice President
Owen Daly II TRANSFER AGENT
Director Dana R. Sutton
Cortland Trust Inc. Vice President and Treasurer AIM Fund Services, Inc.
P.O. Box 4739
Edward K. Dunn Jr. Melville B. Cox Houston, Tx 77210-4739
Chairman, Mercantile Mortgage Corp.; Vice President
Formerly Vice Chairman and President, CUSTODIAN
Mercantile-Safe Deposit & Trust Co.; and Edgar M. Larsen
President, Mercantile Bankshares Vice President State Street Bank and Trust Company
225 Franklin Street
Jack Fields Mary J. Benson Boston, MA 02110
Chief Executive Officer Assistant Vice President and
Texana Global, Inc.; Assistant Treasurer COUNSEL TO THE FUND
Formerly Member
of the U.S. House of Representatives Sheri Morris Ballard Spahr
Assistant Vice President and Andrews & Ingersoll, LLP
Carl Frischling Assistant Treasurer 1735 Market Street
Partner Philadelphia, PA 19103
Kramer, Levin, Naftalis & Frankel LLP Renee A. Friedli
Assistant Secretary COUNSEL TO THE DIRECTORS
Robert H. Graham
President and Chief Executive Officer P. Michelle Grace Kramer, Levin, Naftalis & Frankel LLP
A I M Management Group Inc. Assistant Secretary 919 Third Avenue
New York, NY 10022
Prema Mathai-Davis Nancy L. Martin
Chief Executive Officer, YWCA of the U.S.A. Assistant Secretary DISTRIBUTOR
Lewis F. Pennock Ofelia M. Mayo A I M Distributors, Inc.
Attorney Assistant Secretary 11 Greenway Plaza
Suite 100
Louis S. Sklar Lisa A. Moss Houston, TX 77046
Executive Vice President Assistant Secretary
Hines Interests
Limited Partnership Kathleen J. Pflueger
Assistant Secretary
Samuel D. Sirko
Assistant Secretary
</TABLE>
<PAGE> 16
THE AIM FAMILY OF FUNDS--Registered Trademark--
<TABLE>
<S> <C> <C>
GROWTH FUNDS INTERNATIONAL GROWTH FUNDS A I M Management Group Inc. has provided
AIM Aggressive Growth Fund AIM Advisor International Value Fund leadership in the mutual fund industry
AIM Blue Chip Fund AIM Asian Growth Fund since 1976 and managed approximately $176
AIM Capital Development Fund AIM Developing Markets Fund billion in assets for more than 7.4 million
AIM Constellation Fund(1) AIM Euroland Growth Fund(5) shareholders, including individual
AIM Dent Demographic Trends Fund AIM European Development Fund investors, corporate clients and Financial
AIM Emerging Growth Fund AIM International Equity Fund institutions, as of March 31, 2000.
AIM Large Cap Growth Fund AIM Japan Growth Fund The AIM Family of Funds--Registered
AIM Large Cap Opportunities Fund AIM Latin American Growth Fund Trademark-- is distributed nationwide, and
AIM Mid Cap Equity Fund AIM today is the eighth-largest mutual fund
AIM Mid Cap Growth Fund GLOBAL GROWTH FUNDS complex in the United States in assets
AIM Mid Cap Opportunities Fund(2) AIM Global Aggressive Growth Fund under management, according to Strategic
AIM Select Growth Fund AIM Global Growth Fund Insight, an independent mutual fund monitor.
AIM Small Cap Growth Fund(3) AIM Global Trends Fund(6)
AIM Small Cap Opportunities Fund(4)
AIM Value Fund GLOBAL GROWTH & INCOME FUNDS
AIM Weingarten Fund AIM Global Utilities Fund
GROWTH & INCOME FUNDS GLOBAL INCOME FUNDS
AIM Advisor Flex Fund AIM Global Income Fund
AIM Advisor Real Estate Fund AIM Strategic Income Fund
AIM Balanced Fund
AIM Basic Value Fund THEME FUNDS
AIM Charter Fund AIM Global Consumer Products and Services Fund
AIM Global Financial Services Fund
INCOME FUNDS AIM Global Health Care Fund
AIM Floating Rate Fund AIM Global Infrastructure Fund
AIM High Yield Fund AIM Global Resources Fund
AIM High Yield Fund II AIM Global Telecommunications and Technology Fund
AIM Income Fund
AIM Intermediate Government Fund
AIM Limited Maturity Treasury Fund
TAX-FREE INCOME FUNDS
AIM High Income Municipal Fund
AIM Municipal Bond Fund
AIM Tax-Exempt Bond Fund of Connecticut
AIM Tax-Free Intermediate Fund
MONEY MARKET FUNDS
AIM Money Market Fund
AIM Tax-Exempt Cash Fund
</TABLE>
(1) Effective December 1, 1999, AIM Constellation Fund's investment strategy
broadened to allow investments across all market capitalizations. (2) AIM Mid
Cap Opportunities Fund closed to new investors on March 21, 2000. (3) AIM Small
Cap Growth Fund closed to new investors on November 8, 1999. (4) AIM Small Cap
Opportunities Fund closed to new investors on November 4, 1999. (5) On September
1, 1999, AIM Europe Growth Fund was renamed AIM Euroland Growth Fund. Previously
the fund invested in all size companies in most areas of Europe. The fund now
seeks to invest at least 65% of its assets in large-cap companies within
countries using the euro as their currency (EMU-member countries). (6) Effective
August 27, 1999, AIM Global Trends Fund was restructured to operate as a
traditional mutual fund. Before that date, the fund operated as a fund of funds.
For more complete information about any AIM fund(s), including sales charges and
expenses, ask your Financial advisor or securities dealer for a free
prospectus(es). Please read the prospectus(es) carefully before you invest or
send money. If used as sales material after July 20, 2000, this report must be
accompanied by a current Quarterly Review of Performance for AIM Funds.
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