<PAGE> 1
ANNUAL REPORT / JULY 31 2000
AIM ADVISOR REAL ESTATE FUND
[COVER IMAGE]
[AIM LOGO APPEARS HERE]
--Registered Trademark--
<PAGE> 2
[ COVER IMAGE ]
------------------------------------
NEW YORK, NEW YORK BY DIANA ONG
EVOLVING FROM BROWNSTONES TO SKYSCRAPERS, FROM EMPTY FIELDS
TO INDUSTRIAL PARKS, THE REAL ESTATE SECTOR HAS TRANSFORMED
ITSELF THROUGH THE DECADES. LIKE NEW YORK CITY, THE FUND IS
WELL POSITIONED TO TAKE ADVANTAGE OF FUTURE EXPANSIONS.
------------------------------------
AIM Advisor Real Estate Fund is for shareholders who seek high total return on
investment through capital appreciation and current income through a portfolio
invested primarily in publicly traded securities of companies related to the
real estate industry.
ABOUT FUND PERFORMANCE AND PORTFOLIO DATA THROUGHOUT THIS REPORT:
o AIM Advisor Real Estate Fund's performance figures are historical, and they
reflect the reinvestment of distributions and changes in net asset value.
o Had fees and expenses not been waived, returns would have been lower.
o When sales charges are included in performance figures, Class A share
performance reflects the maximum 4.75% sales charge, and Class B and Class C
share performance reflects the applicable contingent deferred sales charge
(CDSC) for the period involved. The CDSC on Class B shares declines from 5%
beginning at the time of purchase to 0% at the beginning of the seventh
year. The CDSC on Class C shares is 1% for the first year after purchase.
The performance of the fund's Class B and Class C shares will differ from
that of its Class A shares due to different sales-charge structure and class
expenses.
o Since our last report to you, the fund's fiscal year end was changed from
December 31 to July 31. Certain information in the financial pages of this
report and information concerning fund distributions, if any, are for the
period 12/31/99-7/31/00. The portfolio managers' discussion and the
performance information presented are for the period 7/31/99-7/31/00.
o The fund's cumulative total returns at net asset value for the seven-month
period ended 7/31/00 were as follows: Class A shares, 25.70%; Class B
shares, 25.18%; Class C shares, 25.22%.
o The fund's average annual total returns as of the close of the reporting
period are shown in a table on the performance history page that follows. In
addition, industry regulations require us to provide average annual total
returns (including sales charges) as of 6/30/00, the most recent calendar
quarter-end, which were: Class A shares, one year, 2.44%; inception
(12/31/96), -0.01%. Class B shares, one year, 1.77%; inception (3/3/98),
-6.25%. Class C shares, one year, 5.78%; five years, 8.36%; inception
(5/1/95), 8.49%.
o Investing in a single-sector mutual fund may involve greater risk and
potential reward than investing in a more diversified fund.
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 NAREIT (National Association of Real Estate Investment Trusts) Equity
Index tracks the performance of all tax-qualified REITs listed on the New
York Stock Exchange, the American Stock Exchange and the Nasdaq National
Market System. Equity REITs are defined as REITs with 75% or more of their
gross invested book assets invested directly or indirectly in the equity
ownership of real estate.
o The unmanaged Standard & Poor's Composite Index of 500 Stocks (the S&P 500)
is widely regarded as representative of the performance of the U.S. 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.
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 ADVISOR REAL ESTATE FUND
<PAGE> 3
ANNUAL 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
APPEARS HERE] than eight million investors, with $176 billion in assets
under management. Over that time, the industry as a whole
[PHOTO OF has grown from $51 billion in assets to more than $7
Robert H. trillion today. I never dreamed we would see such phenomenal
Graham growth. You are the main reason for our success, and I want
APPEARS HERE] 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 2,500 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 year 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 ADVISOR REAL ESTATE FUND
<PAGE> 4
ANNUAL REPORT / MANAGERS' OVERVIEW
VOLATILE MARKETS HELP REITS RETURN TO FAVOR
HOW DID AIM ADVISOR REAL ESTATE FUND PERFORM DURING THE FISCAL YEAR?
In a year that saw many investors chase performance and then backpedal when the
broader equity market got bumpy, the fund was able to capitalize on both the
capital flight of investors and the continued strength of the real estate
market.
For the year ended July 31, 2000, the fund posted total returns of 20.56%
for Class A shares, 19.71% for Class B shares and 19.75% for Class C shares.
(These returns are at net asset value, which does not include sales charges.)
The fund outperformed the NAREIT Equity Index, which had a total return of
15.72% for the reporting period.
As a testament to the shift in market sentiment, the fund also outperformed
the broader equity market, as represented by the S&P 500, which had a total
return of 8.97% for the fiscal year. Net assets in the fund grew to $56 million
as of the end of the reporting period.
WHAT WERE MARKET CONDITIONS LIKE OVER THE PAST YEAR?
During much of 1999, technology dominated markets overall, even though the
sector's eye-popping returns did not translate into extraordinary performance
across the broader market. Indeed, REITs languished in 1999, which also proved
to be one of the worst years on record for fixed-income markets.
But the new year brought with it unprecedented volatility and a major shift
in market sentiment when some growth companies fell out of favor after their
sky-high valuations came into question. Uncertainty drove many investors to flee
the stock market into what were perceived as safe havens from the rampant
volatility, such as REITs and some fixed-income securities.
Also shaking market confidence were interest-rate hikes implemented by the
Federal Reserve Board (the Fed) and investors' concerns regarding potential
inflation. Since June 1999, the Fed has raised interest rates six times--a total
of 175 basis points (1.75%)--in an effort to cool what it feared was a too-hot
growth rate for the U.S. economy. Mixed signals from leading economic indicators
made it difficult to determine when the Fed would finish its tightening cycle.
HOW WERE REITS AFFECTED BY THE MARKET ENVIRONMENT?
While REITs spent 1999 in the shadow of technology, the tech sector's
roller-coaster performance thus far in 2000 has convinced some investors to
re-evaluate their portfolios and to add securities with stable earnings that
traditionally experience less volatility. REITs have steady cash flows with
income distributions in dividends, which can be attractive to anyone seeking
stability. And when stocks plummeted on several occasions during 2000, REITs
held steady. In fact, REITs were one of only four market sectors that ended
April in the black after the market downturn.
While a broadened investor base has certainly been a factor in the REIT
market's comeback, REITs also offer two things that high-flying companies may
not--real earnings growth with increasing dividends--factors that also
contributed to REIT performance. REITs, which own real properties, are posting
increased earnings at a time when earnings are coming back in style after 1999's
dot-com frenzy. The average REIT dividend yield, as represented by the NAREIT
Equity Index, continued to be quite attractive at 7.02% as of the end of the
reporting period.
HOW DID YOU MANAGE THE FUND IN THIS ENVIRONMENT?
We maintained the fund's broad property-sector and geographic diversification,
and we continued to focus on large, high-quality REITs with strong balance
sheets. We concentrated the portfolio a bit by focusing on blue-chip REITs that
we believe could provide the best returns in a REIT rebound. This has proved to
be a beneficial strategy for the fund in the past year, as evidenced by its
strong performance.
The apartment and office-building property sectors of the REIT market have
done particularly well over the past year, and the fund is overweighted in both
sectors, which has boosted performance. Likewise, we have generally avoided
poorly performing REIT sectors such as health care and spe-
------------------------------------
REITS HAVE STEADY CASH
FLOWS WITH INCOME
DISTRIBUTIONS IN DIVIDENDS,
WHICH CAN BE ATTRACTIVE TO
ANYONE SEEKING STABILITY.
------------------------------------
FUND OUTPERFORMS INDEXES
ONE-YEAR TOTAL RETURNS
As of 7/31/00, excluding sales charges
================================================================================
FUND CLASS A SHARES 20.56%
FUND CLASS B SHARES 19.71%
FUND CLASS C SHARES 19.75%
NAREIT EQUITY INDEX 15.72%
S&P 500 INDEX 8.97%
Past performance cannot guarantee comparable future results
================================================================================
See important fund and index disclosures inside front cover.
AIM ADVISOR REAL ESTATE FUND
2
<PAGE> 5
ANNUAL REPORT / MANAGERS' OVERVIEW
cialty property. Most of the REITs we own are focused on major metropolitan
areas, especially the West Coast and the northeastern region of the United
States, where real estate markets continue to be very tight due to limited
building opportunities, and rents have increased significantly in tandem with
tenant demand.
WHAT WERE SOME HOLDINGS THAT BENEFITED THE FUND?
Fund holdings that were strong performers included Avalonbay Communities and
Reckson Associates Realty. With more than 120 communities in 11 states and
Washington, D.C., Avalonbay develops, constructs, acquires, refurbishes, leases
and manages apartment complexes. Nearly half of its 35,000 apartments are in
California, and most include such amenities as swimming pools, tennis courts and
fitness centers.
Reckson Associates Realty is the general partner of a limited partnership
that owns and leases about 190 office and industrial properties in the New York
metropolitan area--mainly on Long Island, but also in New Jersey and
Connecticut. Reckson also invests in or has joint ventures with companies that
specialize in government offices and student housing, and the company recently
acquired Tower Realty Trust as a gateway into the Manhattan real estate market.
WHAT IS YOUR OUTLOOK FOR THE FUTURE?
We believe that the REIT market should continue to improve over the next year,
on top of the recovery we have seen thus far in 2000. However, we do look for
total returns to approach more normal levels going forward. As a result of fewer
construction starts, caused by rising interest rates and tighter credit
conditions, we believe that supply and demand will remain generally healthy for
most real estate markets around the United States. Solid fundamentals such as
positive earnings should also continue in the REIT sector, which should help
REITs retain much of the investor interest they have recently garnered.
================================================================================
NEW FISCAL YEAR-END
Since our last report to you, AIM Advisor Real Estate Fund's fiscal year-end was
changed from December 31 to July 31. Going forward, you will receive an annual
report dated July 31 and a semiannual report dated January 31 each year.
REITS AND TECHNOLOGY
Some of the country's largest real estate owners have formed an alliance, known
as Project Constellation, that will seek out, establish and incubate Web-based
and e-commerce businesses targeting the millions of people who walk through
their properties. We believe that such initiatives may enhance REIT performance
over the long term, although it will probably be several years before the
revenue impact may become meaningful. However, we will not invest in a REIT
simply because of technology initiatives that may or may not enhance current
cash flows. We will continue to focus on REITs that offer strong business
prospects, attractive yields, and stable and increasing cash flow.
================================================================================
[IMAGE]
PORTFOLIO COMPOSITION
As of 7/31/00, based on total net assets
<TABLE>
<CAPTION>
========================================================================================
TOP 10 EQUITY HOLDINGS PROPERTY-TYPE DIVERSIFICATION
----------------------------------------------------------------------------------------
[PIE CHART]
<S> <C> <C> <C>
1. Equity Office Properties Trust 4.58% Industrial/Office 11.02%
2. Avalonbay Communities, Inc. 4.51 Regional Malls 10.96%
3. Boston Properties, Inc. 4.47 Diversified 6.09%
4. Equity Residential Properties Trust 4.44 Lodging-Hotels 5.05%
5. Apartment Investment & Management Co. 4.25 Shopping Centers 4.98%
6. ProLogis Trust 4.08 Industrial 4.08%
7. Reckson Associates Realty Corp. 4.06 Manufacturing (Specialized) 3.37%
8. Arden Realty, Inc. 3.71 Self-Storage 2.33%
9. Duke-Weeks Realty Corp. 3.57 Cash/Cash Equivalents & Others 6.73%
10. Simon Property Group, Inc. 3.56 Apartments 21.05%
Office 24.34%
The fund's portfolio composition is subject to change, and there is no assurance
that the fund will continue to hold any particular security.
========================================================================================
</TABLE>
------------------------------------
WE BELIEVE THAT THE REIT MARKET
SHOULD CONTINUE TO IMPROVE
OVER THE NEXT YEAR . . .
------------------------------------
See important fund and index disclosures inside front cover.
AIM ADVISOR REAL ESTATE FUND
3
<PAGE> 6
ANNUAL REPORT / PERFORMANCE HISTORY
YOUR FUND'S LONG-TERM PERFORMANCE
RESULTS OF A $10,000 INVESTMENT
AIM ADVISOR REAL ESTATE FUND VS. BENCHMARK INDEXES
5/1/95-7/31/00
in thousands
================================================================================
AIM Advisor Real Estate Fund, Class C Shares $16,428
NAREIT Equity Index $18,194
S&P 500 Index $30,455
================================================================================
================================================================================
AIM Advisor
Real Estate Fund,
Class C Shares NAREIT S&P 500
--------------------------------------------------------------------------------
5/1/95 10,000 10,000 10,000
7/95 10,313 10,773 10,993
7/96 11,472 12,430 12,813
7/97 16,325 17,023 19,489
7/98 15,432 16,684 23,252
7/99 13,719 15,723 27,949
7/00 16,428 18,194 30,455
Sources: Lipper, Inc.; NAREIT
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.
================================================================================
AVERAGE ANNUAL TOTAL RETURNS
As of 7/31/00, including sales charges
================================================================================
CLASS A SHARES
Inception (12/31/96) 2.14%
1 year 14.87*
*20.56% excluding sales charges
CLASS B SHARES
Inception (3/3/98) (3.05)%
1 year 14.71*
*19.71% excluding CDSC
CLASS C SHARES
Inception (5/1/95) 9.92%
5 years 9.76
1 year 18.75*
*19.75% excluding CDSC
================================================================================
The fund's total return includes sales charges, expenses and management fees.
The performance of the fund's Class B and Class C shares will differ from that
of its Class A shares due to differing fees and expenses. For fund performance
calculations and descriptions of the indexes cited on this page, please see the
inside front cover.
================================================================================
ABOUT THIS CHART
This chart compares your fund's Class C shares to benchmark indexes. It is
intended to give you a general idea of how your fund performed compared to these
benchmarks over the period 5/1/95 to 7/31/00. (Index returns are for the period
4/30/95 to 7/31/00.) It is important to understand the differences between your
fund and these indexes. An index measures the performance of a hypothetical
portfolio. A market index such as the S&P 500 is not managed, incurring no sales
charges, expenses or fees. If you could buy all the securities that make up a
market index, you would incur expenses that would affect your investment's
return. In addition, it is worth noting that the S&P 500 represents stocks only,
whereas your fund invests primarily in real estate investment trust (REIT)
securities that produce much of their returns through current income in the form
of yields. An index of REITs, such as the National Association of Real Estate
Investment Trusts (NAREIT) Equity Index, includes all tax-qualified REITs listed
on the New York Stock Exchange, the American Stock Exchange and the Nasdaq
National Market System, regardless of management style and investment strategy.
AIM ADVISOR REAL ESTATE FUND
4
<PAGE> 7
SCHEDULE OF INVESTMENTS
July 31, 2000
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
REAL ESTATE INVESTMENT TRUSTS &
COMMON STOCKS-93.47%
APARTMENTS-21.05%
Apartment Investment & Management
Co. 49,400 $ 2,389,725
--------------------------------------------------------------
Avalonbay Communities, Inc. 53,800 2,535,325
--------------------------------------------------------------
Charles E. Smith Residential Realty,
Inc. 43,700 1,930,994
--------------------------------------------------------------
Equity Residential Properties Trust 50,000 2,493,750
--------------------------------------------------------------
Essex Property Trust, Inc. 23,300 1,147,525
--------------------------------------------------------------
Home Properties of New York, Inc. 43,500 1,334,906
--------------------------------------------------------------
11,832,225
--------------------------------------------------------------
COMPUTER SOFTWARE/SERVICES-0.14%
Internap Voting Trust (Acquired 03/22/00;
Cost $18,480)(a)(b)(c) 12,351 77,375
--------------------------------------------------------------
DIVERSIFIED-6.09%
Beacon Capital Partners, Inc.
(Acquired 03/17/98; Cost
$784,979)(b)(c) 55,000 453,750
--------------------------------------------------------------
Vornado Realty Trust 50,500 1,975,812
--------------------------------------------------------------
Washington Real Estate Investment
Trust 50,300 993,425
--------------------------------------------------------------
3,422,987
--------------------------------------------------------------
INDUSTRIAL PROPERTIES-4.08%
ProLogis Trust 98,500 2,296,281
--------------------------------------------------------------
INDUSTRIAL/OFFICE PROPERTIES-11.02%
Duke-Weeks Realty Corp. 82,000 2,009,000
--------------------------------------------------------------
Liberty Property Trust 65,950 1,896,062
--------------------------------------------------------------
PS Business Parks, Inc. 300 7,650
--------------------------------------------------------------
Reckson Associates Realty Corp. 87,000 2,283,750
--------------------------------------------------------------
6,196,462
--------------------------------------------------------------
LODGING-HOTELS-5.05%
Hospitality Properties Trust 41,400 1,024,650
--------------------------------------------------------------
Innkeepers USA Trust 55,000 570,625
--------------------------------------------------------------
MeriStar Hospitality Corp. 18,900 419,344
--------------------------------------------------------------
Starwood Hotels & Resorts Worldwide,
Inc. 24,100 822,413
--------------------------------------------------------------
2,837,032
--------------------------------------------------------------
MANUFACTURING (SPECIALIZED)-3.37%
Manufactured Home Communities, Inc. 31,000 744,000
--------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
MANUFACTURING (SPECIALIZED)-(CONTINUED)
Sun Communities, Inc. 36,400 $ 1,151,150
--------------------------------------------------------------
1,895,150
--------------------------------------------------------------
OFFICE PROPERTIES-24.34%
Arden Realty, Inc. 78,800 2,088,200
--------------------------------------------------------------
Boston Properties, Inc. 60,500 2,510,750
--------------------------------------------------------------
Brandywine Realty Trust 24,000 526,500
--------------------------------------------------------------
Equity Office Properties Trust 84,500 2,577,250
--------------------------------------------------------------
Highwoods Properties, Inc. 18,800 507,600
--------------------------------------------------------------
Kilroy Realty Corp. 62,100 1,645,650
--------------------------------------------------------------
Prentiss Properties Trust 79,400 1,994,925
--------------------------------------------------------------
SL Green Realty Corp. 61,700 1,831,719
--------------------------------------------------------------
13,682,594
--------------------------------------------------------------
REGIONAL MALLS-10.96%
CBL & Associates Properties, Inc. 33,000 825,000
--------------------------------------------------------------
General Growth Properties, Inc. 49,400 1,673,425
--------------------------------------------------------------
Macerich Co. (The) 47,900 1,146,606
--------------------------------------------------------------
Simon Property Group, Inc. 76,600 2,001,175
--------------------------------------------------------------
Taubman Centers, Inc. 46,000 517,500
--------------------------------------------------------------
6,163,706
--------------------------------------------------------------
SELF-STORAGE-2.33%
Public Storage, Inc. 51,200 1,312,000
--------------------------------------------------------------
SHOPPING CENTERS-4.98%
Federal Realty Investment Trust 23,000 491,625
--------------------------------------------------------------
Kimco Realty Corp. 39,300 1,621,125
--------------------------------------------------------------
Realty Income Corp. 11,000 266,750
--------------------------------------------------------------
Weingarten Realty Investors 10,000 413,750
--------------------------------------------------------------
2,793,250
--------------------------------------------------------------
TELECOMMUNICATIONS (LONG
DISTANCE)-0.06%
Cypress Communications, Inc.
(Acquired 01/05/00;
Cost $41,415)(a)(b)(c) 9,809 35,864
--------------------------------------------------------------
Total Real Estate Investment
Trusts & Common Stocks (Cost
$45,056,137) 52,544,926
--------------------------------------------------------------
</TABLE>
5
<PAGE> 8
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
<S> <C> <C>
U.S. GOVERNMENT AGENCY
SECURITIES-7.67%
FEDERAL HOME LOAN BANK-7.67%
Disc. Notes, 6.43%, 08/01/00 (Cost
$4,311,000)(d) $4,311,000 $ 4,311,000
--------------------------------------------------------------
TOTAL INVESTMENTS-101.14% (Cost
$49,367,137) 56,855,926
--------------------------------------------------------------
LIABILITIES LESS OTHER
ASSETS-(1.14%) (641,026)
--------------------------------------------------------------
NET ASSETS-100.00% $56,214,900
==============================================================
</TABLE>
Investment Abbreviations:
Disc. - Discounted
Notes to Schedule of Investments:
(a)Non-income producing security.
(b)Security fair valued in accordance with the procedures established by the
Board of Directors.
(c)Restricted security. May be resold to qualified institutional buyers in
accordance with the provisions of Rule 144A under the Securities Act of 1933,
as amended. The valuation of these securities has been determined in
accordance with procedures established by the Board of Directors. The
aggregate market value of these securities at 07/31/00 was $566,989 which
represented 1.01% of the Fund's net assets.
(d)Interest rate shown represents the rate of discount paid or received at the
time of purchase by the Fund.
See Notes to Financial Statements.
6
<PAGE> 9
SCHEDULE OF INVESTMENTS
June 30, 2000
(Unaudited)
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
REAL ESTATE INVESTMENT TRUSTS,
COMMON STOCKS & OTHER EQUITY
INTERESTS-95.82%
APARTMENTS-22.34%
Apartment Investment & Management
Co. 49,400 $ 2,136,550
--------------------------------------------------------------
Avalonbay Communities, Inc. 53,800 2,246,150
--------------------------------------------------------------
Charles E. Smith Residential Realty,
Inc. 43,700 1,660,600
--------------------------------------------------------------
Equity Residential Properties Trust 50,000 2,300,000
--------------------------------------------------------------
Essex Property Trust, Inc. 31,600 1,327,200
--------------------------------------------------------------
Home Properties of New York, Inc. 43,500 1,305,000
--------------------------------------------------------------
Post Properties, Inc. 7,600 334,400
--------------------------------------------------------------
11,309,900
--------------------------------------------------------------
COMPUTER SOFTWARE/SERVICES-0.25%
Internap Voting Trust (Acquired
03/22/00; Cost $18,480)(a)(b)(c) 12,351 125,567
--------------------------------------------------------------
DIVERSIFIED-6.33%
Beacon Capital Partners, Inc. (Acquired
03/17/98;
Cost $784,979)(b)(c) 55,000 605,000
--------------------------------------------------------------
Crescent Real Estate Equities, Co. 23,000 471,500
--------------------------------------------------------------
Vornado Realty Trust 45,500 1,581,125
--------------------------------------------------------------
Washington Real Estate Investment
Trust 30,800 550,550
--------------------------------------------------------------
3,208,175
--------------------------------------------------------------
HEALTHCARE-OTHER-1.82%
Health Care Property Investors, Inc. 9,500 258,875
--------------------------------------------------------------
Healthcare Realty Trust, Inc. 38,700 660,319
--------------------------------------------------------------
919,194
--------------------------------------------------------------
INDUSTRIAL PROPERTIES-3.77%
ProLogis Trust 89,500 1,907,469
--------------------------------------------------------------
INDUSTRIAL/OFFICE PROPERTIES-12.33%
Duke-Weeks Realty Corp. 82,000 1,834,750
--------------------------------------------------------------
Liberty Property Trust 65,950 1,710,578
--------------------------------------------------------------
PS Business Parks, Inc. 300 7,200
--------------------------------------------------------------
Reckson Associates Realty Corp. 87,000 2,066,250
--------------------------------------------------------------
Trizec Hahn Corp. (Canada) 35,000 625,625
--------------------------------------------------------------
6,244,403
--------------------------------------------------------------
LODGING-HOTELS-4.83%
Hospitality Properties Trust 41,400 934,087
--------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
LODGING-HOTELS-(CONTINUED)
Innkeepers USA Trust 36,000 $ 328,500
--------------------------------------------------------------
MeriStar Hospitality Corp. 18,900 396,900
--------------------------------------------------------------
Starwood Hotels & Resorts Worldwide,
Inc. 24,100 784,756
--------------------------------------------------------------
2,444,243
--------------------------------------------------------------
MANUFACTURING (SPECIALIZED)-3.86%
Manufactured Home Communities, Inc. 31,000 742,062
--------------------------------------------------------------
Sun Communities, Inc. 36,400 1,217,125
--------------------------------------------------------------
1,959,187
--------------------------------------------------------------
OFFICE PROPERTIES-24.70%
Arden Realty, Inc. 78,800 1,851,800
--------------------------------------------------------------
Boston Properties, Inc. 60,500 2,336,813
--------------------------------------------------------------
Brandywine Realty Trust 14,000 267,750
--------------------------------------------------------------
Equity Office Properties Trust 84,500 2,329,031
--------------------------------------------------------------
Highwoods Properties, Inc. 18,800 451,200
--------------------------------------------------------------
Kilroy Realty Corp. 62,100 1,610,719
--------------------------------------------------------------
Parkway Properties, Inc. 3,400 103,700
--------------------------------------------------------------
Prentiss Properties Trust 79,400 1,905,600
--------------------------------------------------------------
SL Green Realty Corp. 61,700 1,650,475
--------------------------------------------------------------
12,507,088
--------------------------------------------------------------
REGIONAL MALLS-8.60%
General Growth Properties, Inc. 39,200 1,244,600
--------------------------------------------------------------
Macerich Co. (The) 40,900 902,356
--------------------------------------------------------------
Simon Property Group, Inc. 76,600 1,699,563
--------------------------------------------------------------
Taubman Centers, Inc. 46,000 506,000
--------------------------------------------------------------
4,352,519
--------------------------------------------------------------
SELF-STORAGE-2.37%
Public Storage, Inc. 51,200 1,200,000
--------------------------------------------------------------
SHOPPING CENTERS-4.48%
Federal Realty Investment Trust 23,000 460,000
--------------------------------------------------------------
Kimco Realty Corp. 35,800 1,467,800
--------------------------------------------------------------
Realty Income Corp. 11,000 259,188
--------------------------------------------------------------
Weingarten Realty Investors 2,000 80,750
--------------------------------------------------------------
2,267,738
--------------------------------------------------------------
</TABLE>
7
<PAGE> 10
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
TELECOMMUNICATIONS (LONG
DISTANCE)-0.14%
Cypress Communications, Inc.
(Acquired 01/05/00; Cost
$41,415)(a)(b)(c) 9,809 $ 71,115
--------------------------------------------------------------
Total Real Estate Investment
Trusts, Common Stocks & Other
Equity Interests (Cost
$44,664,819) 48,516,598
--------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
<S> <C> <C>
U.S. GOVERNMENT AGENCY
SECURITIES-3.23%
FEDERAL NATIONAL MORTGAGE
ASSOCIATION ("FNMA")-3.23%
Disc. Notes, 6.57%, 07/03/00 (Cost
$1,637,402)(d) $1,638,000 $ 1,637,402
--------------------------------------------------------------
TOTAL INVESTMENTS-99.05% (Cost
$46,302,221) 50,154,000
--------------------------------------------------------------
OTHER ASSETS LESS LIABILITIES-0.95% 479,230
--------------------------------------------------------------
NET ASSETS-100.00% $50,633,230
==============================================================
</TABLE>
Investment Abbreviations:
Disc. - Discounted
Notes to Schedule of Investments:
(a)Non-income producing security.
(b)Security fair valued in accordance with the procedures established by the
Board of Directors.
(c)Restricted security. May be resold to qualified institutional buyers in
accordance with the provisions of Rule 144A under the Securities Act of 1933,
as amended. The valuation of these securities has been determined in
accordance with procedures established by the Board of Directors. The
aggregate market value of these securities at 06/30/00 was $801,682 which
represented 1.58% of the Fund's net assets.
(d)Interest rate shown represents the rate of discount paid or received at the
time of purchase by the Fund.
See Notes to Financial Statements.
8
<PAGE> 11
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
JUNE 30,
JULY 31, 2000
2000 (UNAUDITED)
------------ ------------
<S> <C> <C>
ASSETS:
Investments, at market value (cost $49,367,137 and
$46,302,221, respectively) $ 56,855,926 $ 50,154,000
-----------------------------------------------------------------------------------------
Cash 961 1,503
-----------------------------------------------------------------------------------------
Receivables for:
Investments sold 1,307,745 198,041
-----------------------------------------------------------------------------------------
Capital stock sold 319,835 158,963
-----------------------------------------------------------------------------------------
Dividends 30,574 367,064
-----------------------------------------------------------------------------------------
Investment for deferred compensation plan 14,251 13,033
-----------------------------------------------------------------------------------------
Other assets 1,200 1,200
-----------------------------------------------------------------------------------------
Total assets 58,530,492 50,893,804
-----------------------------------------------------------------------------------------
LIABILITIES:
Payables for:
Investments purchased 2,115,044 --
-----------------------------------------------------------------------------------------
Capital stock reacquired 86,089 125,697
-----------------------------------------------------------------------------------------
Deferred compensation plan 14,251 13,033
-----------------------------------------------------------------------------------------
Accrued advisory fees 14,014 27,819
-----------------------------------------------------------------------------------------
Accrued administrative services fees 4,235 4,098
-----------------------------------------------------------------------------------------
Accrued distribution fees 35,546 69,583
-----------------------------------------------------------------------------------------
Accrued transfer agent fees 8,910 8,612
-----------------------------------------------------------------------------------------
Accrued directors' fees 633 1,900
-----------------------------------------------------------------------------------------
Accrued operating expenses 36,870 9,832
-----------------------------------------------------------------------------------------
Total liabilities 2,315,592 260,574
-----------------------------------------------------------------------------------------
Net assets applicable to shares outstanding $ 56,214,900 $ 50,633,230
=========================================================================================
NET ASSETS:
Class A $ 23,186,566 $ 20,108,781
=========================================================================================
Class B $ 12,722,496 $ 11,343,506
=========================================================================================
Class C $ 20,305,838 $ 19,180,943
=========================================================================================
CAPITAL STOCK, $0.001 PAR VALUE PER SHARE:
Class A:
Authorized 100,000,000 100,000,000
-----------------------------------------------------------------------------------------
Outstanding 1,778,447 1,665,935
=========================================================================================
Class B:
Authorized 100,000,000 100,000,000
-----------------------------------------------------------------------------------------
Outstanding 973,737 937,161
=========================================================================================
Class C:
Authorized 100,000,000 100,000,000
-----------------------------------------------------------------------------------------
Outstanding 1,556,432 1,586,987
=========================================================================================
Class A:
Net asset value and redemption price per share $ 13.04 $ 12.07
-----------------------------------------------------------------------------------------
Offering price per share:
(Net asset value divided by 95.25%) $ 13.69 $ 12.67
=========================================================================================
Class B:
Net asset value and offering price per share $ 13.07 $ 12.10
=========================================================================================
Class C:
Net asset value and offering price per share $ 13.05 $ 12.09
=========================================================================================
</TABLE>
See Notes to Financial Statements.
9
<PAGE> 12
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
SEVEN SIX MONTHS
MONTHS ENDED YEAR
ENDED JUNE 30, ENDED
JULY 31, 2000 DECEMBER 31,
2000 (UNAUDITED) 1999
----------- ----------- ------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Dividends (net of $0, $0 and $7,786, respectively, foreign
withholding tax) $ 1,615,927 $1,480,168 $ 2,693,620
------------------------------------------------------------------------------------------------------
Interest 79,373 66,125 101,227
------------------------------------------------------------------------------------------------------
Total investment income 1,695,300 1,546,293 2,794,847
------------------------------------------------------------------------------------------------------
EXPENSES:
Advisory fees 249,957 210,070 473,702
------------------------------------------------------------------------------------------------------
Administrative services fee 29,098 24,863 25,205
------------------------------------------------------------------------------------------------------
Custodian fees 16,084 11,325 7,249
------------------------------------------------------------------------------------------------------
Operating services fees -- -- 124,989
------------------------------------------------------------------------------------------------------
Distribution fees-Class A 36,985 30,709 66,167
------------------------------------------------------------------------------------------------------
Distribution fees-Class B 61,419 51,283 73,791
------------------------------------------------------------------------------------------------------
Distribution fees-Class C 110,641 93,893 263,496
------------------------------------------------------------------------------------------------------
Transfer agent fees-Class A 31,210 27,223 21,664
------------------------------------------------------------------------------------------------------
Transfer agent fees-Class B 18,263 15,917 8,293
------------------------------------------------------------------------------------------------------
Transfer agent fees-Class C 32,901 29,133 29,612
------------------------------------------------------------------------------------------------------
Professional fees 47,851 31,337 --
------------------------------------------------------------------------------------------------------
Directors' fees 4,047 3,826 10,020
------------------------------------------------------------------------------------------------------
Other 42,444 31,549 21,903
------------------------------------------------------------------------------------------------------
Total expenses 680,900 561,128 1,126,091
------------------------------------------------------------------------------------------------------
Less: Fees waived by advisor (103,301) (75,634) (29,338)
------------------------------------------------------------------------------------------------------
Expenses paid indirectly (314) (246) (268)
------------------------------------------------------------------------------------------------------
Net expenses 577,285 485,248 1,096,485
------------------------------------------------------------------------------------------------------
Net investment income 1,118,015 1,061,045 1,698,362
------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENT
SECURITIES AND FOREIGN CURRENCIES:
Net realized gain (loss) from:
Investment securities (226) (334,996) (8,493,728)
------------------------------------------------------------------------------------------------------
Foreign currencies -- -- 461
------------------------------------------------------------------------------------------------------
(226) (334,996) (8,493,267)
------------------------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) of:
Investment securities 9,785,935 6,148,924 4,697,040
------------------------------------------------------------------------------------------------------
Foreign currencies -- -- (56)
------------------------------------------------------------------------------------------------------
9,785,935 6,148,924 4,696,984
------------------------------------------------------------------------------------------------------
Net gain (loss) from investment securities and foreign
currencies 9,785,709 5,813,928 (3,796,283)
------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
operations $10,903,724 $6,874,973 $(2,097,921)
======================================================================================================
</TABLE>
See Notes to Financial Statements
10
<PAGE> 13
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
SEVEN SIX MONTHS
MONTHS ENDED
ENDED JUNE 30, YEAR ENDED YEAR ENDED
JULY 31, 2000 DECEMBER 31, DECEMBER 31,
2000 (UNAUDITED) 1999 1998
-------------- ------------ --------------- ---------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income $ 1,118,015 $ 1,061,045 $ 1,698,362 $ 2,687,688
------------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) from investment securities and
foreign currencies (226) (334,996) (8,493,267) (7,868,208)
------------------------------------------------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) of
investment securities and foreign currencies 9,785,935 6,148,924 4,696,984 (13,364,502)
------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
operations 10,903,724 6,874,973 (2,097,921) (18,545,022)
------------------------------------------------------------------------------------------------------------------------------
Distributions to shareholders from net investment income:
Class A (407,821) (407,821) (880,747) (879,078)
------------------------------------------------------------------------------------------------------------------------------
Class B (198,721) (198,721) (292,274) (195,557)
------------------------------------------------------------------------------------------------------------------------------
Class C (340,716) (340,716) (1,010,658) (1,184,516)
------------------------------------------------------------------------------------------------------------------------------
Distributions to shareholders from net realized gains on
investment securities:
Class A -- -- -- (434,776)
------------------------------------------------------------------------------------------------------------------------------
Class B -- -- -- (143,531)
------------------------------------------------------------------------------------------------------------------------------
Class C -- -- -- (703,226)
------------------------------------------------------------------------------------------------------------------------------
Share transactions-net:
Class A 3,016,298 1,551,735 (2,285,404) 11,098,948
------------------------------------------------------------------------------------------------------------------------------
Class B 669,804 199,877 3,517,105 8,539,414
------------------------------------------------------------------------------------------------------------------------------
Class C (3,537,708) (3,156,137) (10,749,346) 1,916,228
------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets 10,104,860 4,523,190 (13,799,245) (531,116)
------------------------------------------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 46,110,040 46,110,040 59,909,285 60,440,401
------------------------------------------------------------------------------------------------------------------------------
End of period $ 56,214,900 $ 50,633,230 $ 46,110,040 $ 59,909,285
==============================================================================================================================
NET ASSETS CONSIST OF:
Capital (par value and additional paid-in) $ 64,892,984 $ 63,340,065 $ 64,744,590 $ 74,263,053
------------------------------------------------------------------------------------------------------------------------------
Undistributed net investment income 168,822 111,852 (1,935) 490,850
------------------------------------------------------------------------------------------------------------------------------
Undistributed net realized gain (loss) from investment
securities and foreign currencies (16,335,696) (16,670,466) (16,335,470) (7,850,489)
------------------------------------------------------------------------------------------------------------------------------
Unrealized appreciation (depreciation) of investment
securities and foreign currencies 7,488,790 3,851,779 (2,297,145) (6,994,129)
------------------------------------------------------------------------------------------------------------------------------
$ 56,214,900 $ 50,633,230 $ 46,110,040 $ 59,909,285
==============================================================================================================================
</TABLE>
NOTES TO FINANCIAL STATEMENTS
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES
AIM Advisor Real Estate Fund (the "Fund") is a series portfolio of AIM Advisor
Funds, Inc. (the "Company"). The Company is a Maryland corporation registered
under the Investment Company Act of 1940, as amended (the "1940 Act"), as an
open-end series management investment company consisting of three separate
portfolios. The Board of Directors of the Company approved a change in the
Fund's fiscal year-end from December 31 to July 31. As a result, this report
includes financial information for the period ended July 31, 2000 (seven
months), the six months ended June 30, 2000 and the year ended December 31,
1999. Financial information for the six months ended June 30, 2000 is unaudited.
The Fund currently offers three different classes of shares: Class A shares,
Class B shares and Class C shares. Class A shares are sold with a front-end
sales charge. Class B shares and Class C shares are sold with a contingent
deferred sales charge. Matters affecting each portfolio or class will be voted
on exclusively by the shareholders of such portfolio or class. The assets,
liabilities and operations of each portfolio are accounted for separately.
Information presented in these financial statements pertains only to the Fund.
The Fund's investment objective is to achieve high total return.
The preparation of financial statements in conformity with accounting
principles generally accepted in the United States of
11
<PAGE> 14
America 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 as of the close of
the customary trading session 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 on the accrual basis from settlement date.
Dividend income is recorded on the ex-dividend date.
C. Distributions -- Distributions from income are recorded on ex-dividend date,
and are declared and paid quarterly. Distributions from 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. The Fund has a capital loss
carryforward of $15,973,818 which may be carried forward to offset future
taxable gains, if any, which expires in varying increments, if not previously
utilized, in the year 2008.
E. 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 Company has entered into a master investment advisory agreement with A I M
Advisors, Inc. ("AIM"). Under the terms of the investment advisory agreement,
the Fund pays an advisory fee to AIM at the annual rate of 0.90% of the Fund's
average daily net assets. AIM has entered into a sub-advisory agreement with
INVESCO, Inc. ("INVESCO") whereby AIM pays INVESCO an annual rate of 0.35% of
the first $100 million of the Fund's average daily net assets, plus 0.25% of the
Fund's average daily net assets in excess of $100 million. AIM has contractually
agreed to limit total annual operating expenses (exclusive of advisory fees,
Rule 12b-1 distribution fees, directors' fees, brokerage commissions, taxes,
interest, extraordinary items and increases in expenses due to expense offset
arrangements, if any) to 0.45%. During the seven-month period ended July 31,
2000 and the six months ended June 30, 2000, AIM waived fees of $92,734 and
$66,860, respectively.
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 seven-month period ended July 31, 2000,
the six months ended June 30, 2000 and for the period July 1, 1999 through
December 31, 1999, AIM was paid $29,098, $24,863 and $25,205, respectively, for
such services.
The Fund, pursuant to a transfer agency and service agreement, has agreed to
pay A I M Fund Services, Inc. ("AFS") a fee for providing transfer agency and
shareholder services to the Fund. For the seven-month period ended July 31,
2000, the six months ended June 30, 2000 and for the period July 1, 1999 through
December 31, 1999, AFS was paid $45,642, $39,332 and $44,655, respectively, for
such services.
The Fund, pursuant to an operating services agreement, paid AIM $114,566 for
operating services fees during the period January 1, 1999 through July 31, 1999.
AIM waived operating
12
<PAGE> 15
services fees of $10,433 during the period January 1, 1999 through July 31,
1999.
The Company has entered into master distribution agreements with A I M
Distributors, Inc. ("AIM Distributors") to serve as the distributor for the
Class A, Class B and Class C shares of the Fund. The Company has adopted plans
pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund's Class A
shares, Class B shares and Class C shares (collectively the "Plans"). The Fund,
pursuant to the Plans, pays AIM Distributors compensation at the annual rate of
0.35% of the Fund's average daily net assets of Class A shares and 1.00% of the
average daily net assets of Class B and C shares. AIM Distributors has
contractually agreed to limit the Class A shares plan payments to 0.25%. Of
these amounts, the Fund may pay a service fee of 0.25% of the average daily net
assets of the Class A, Class B or Class C shares to selected dealers and
financial institutions who furnish continuing personal shareholder services to
their customers who purchase and own the appropriate class of shares of the
Fund. Any amounts not paid as a service fee under the Plans would constitute an
asset-based sales charge. The Plans also impose a cap on the total sales
charges, including asset-based sales charges that may be paid by the respective
classes. For the seven-month period ended July 31, 2000, the Class A, Class B
and Class C shares paid AIM Distributors $36,985, $61,419 and $110,641,
respectively, as compensation under the Plans. For the six months ended June 30,
2000, the Class A, Class B and Class C shares paid AIM Distributors $30,709,
$51,283 and $93,893, respectively, as compensation under the Plans. For the year
ended December 31, 1999, the Class A, Class B and Class C shares paid AIM
Distributors $47,262, $73,791 and $263,496, respectively, as compensation under
the Plans. During the seven-month period ended July 31, 2000 and the six months
ended June 30, 2000 and the year ended December 31, 1999, AIM Distributors
waived fees of $10,567, $8,774 and $18,905, respectively, for Class A shares.
AIM Distributors received commissions of $7,817, $6,962 and $13,906 from sales
of the Class A shares of the Fund during the seven-month period ended July 31,
2000, the six months ended June 30, 2000 and the year ended December 31, 1999,
respectively. Such commissions are not an expense of the Fund. They are deducted
from, and are not included in, the proceeds from sales of Class A shares. During
the seven-month period ended July 31, 2000, the six months ended June 30, 2000
and the year ended December 31, 1999, AIM Distributors received $4,010, $3,663
and $9,617, respectively, in contingent deferred sales charges imposed on
redemptions of Fund shares.
Certain officers and directors of the Company are officers and directors of
AIM, AFS and AIM Distributors.
During the seven-month period ended July 31, 2000, the six months ended June
30, 2000 and the year ended December 31, 1999, the Fund paid legal fees of
$2,267, $1,740 and $1,198, respectively, 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.
NOTE 3-INDIRECT EXPENSES
For the seven-month period ended July 31, 2000, the six months ended June 30,
2000 and the year ended December 31, 1999, the Fund received reductions in
transfer agency fees from AFS (an affiliate of AIM) of $314, $246 and $268,
respectively, under expense offset arrangements which resulted in a reduction of
the Fund's total expenses of $314, $246 and $268 for the seven-month period
ended July 31, 2000, the six months ended June 30, 2000 and the year ended
December 31, 1999, respectively.
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.
NOTE 5-BANK BORROWINGS
The Fund is a participant in a committed line of credit facility with a
syndicate administered by Citibank, N.A. 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 seven-month period ended
July 31, 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 seven-month period ended July 31, 2000
was $19,115,865 and $17,556,704, respectively, and during the six months ended
June 30, 2000 was $16,466,619 and $14,663,588, respectively. The amount of
unrealized appreciation (depreciation) of investment securities, for tax
purposes, is as follows:
<TABLE>
<CAPTION>
JUNE 30,
JULY 31, 2000
2000 (UNAUDITED)
---------- ------------
<S> <C> <C>
Aggregate unrealized appreciation of investment securities $7,487,554 $4,468,526
----------------------------------------------------------------------------------------
Aggregate unrealized (depreciation) of investment securities (360,643) (808,421)
----------------------------------------------------------------------------------------
Net unrealized appreciation of investment securities $7,126,911 $3,660,105
========================================================================================
Cost of investments for tax purposes for the seven months ended July 31, 2000 and the
six months ended June 30, 2000 are $49,729,015 and $46,493,895, respectively.
</TABLE>
13
<PAGE> 16
NOTE 7-CAPITAL STOCK
Changes in capital stock outstanding during the seven-month period ended July
31, 2000, the six months ended June 30, 2000 and the years ended December 31,
1999 and 1998 were as follows:
<TABLE>
<CAPTION>
JUNE 30, 2000
JULY 31, 2000 (UNAUDITED) DECEMBER 31, 1999
------------------------ ------------------------ -------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
---------- ----------- ---------- ----------- ---------- ------------
<S> <C> <C> <C> <C> <C> <C>
Sold:
Class A 759,953 $ 8,885,425 604,867 $ 6,885,657 805,892 $ 9,057,241
---------------------------------------------------------------------------------------------------------------
Class B 627,434 7,322,643 569,079 6,575,786 554,129 6,045,844
---------------------------------------------------------------------------------------------------------------
Class C 175,530 2,024,139 161,373 1,844,837 301,049 3,371,676
---------------------------------------------------------------------------------------------------------------
Issued as reinvestment of
dividends:
Class A 30,565 356,440 30,565 356,440 73,515 798,302
---------------------------------------------------------------------------------------------------------------
Class B 13,756 161,995 13,756 161,995 24,076 261,703
---------------------------------------------------------------------------------------------------------------
Class C 25,544 298,128 25,544 298,128 81,508 887,308
---------------------------------------------------------------------------------------------------------------
Reacquired:
Class A (546,405) (6,225,567) (503,831) (5,690,362) (1,098,601) (12,140,947)
---------------------------------------------------------------------------------------------------------------
Class B (592,222) (6,814,834) (570,443) (6,537,904) (254,623) (2,790,442)
---------------------------------------------------------------------------------------------------------------
Class C (526,918) (5,859,975) (482,206) (5,299,102) (1,372,447) (15,008,330)
---------------------------------------------------------------------------------------------------------------
(32,763) $ 148,394 (151,296) $(1,404,525) (885,502) $ (9,517,645)
===============================================================================================================
<CAPTION>
DECEMBER 31, 1998
-------------------------
SHARES AMOUNT
---------- ------------
<S> <C> <C>
Sold:
Class A 1,866,966 $ 26,220,226
---------------------------------------------------------
Class B 965,596 13,668,547
---------------------------------------------------------
Class C 867,066 12,416,738
---------------------------------------------------------
Issued as reinvestment of
dividends:
Class A 103,931 1,234,506
---------------------------------------------------------
Class B 26,797 312,988
---------------------------------------------------------
Class C 146,264 1,732,251
---------------------------------------------------------
Reacquired:
Class A (1,266,277) (16,355,784)
---------------------------------------------------------
Class B (391,207) (5,442,121)
---------------------------------------------------------
Class C (933,062) (12,232,761)
---------------------------------------------------------
1,386,074 $ 21,554,590
=========================================================
</TABLE>
NOTE 8-FINANCIAL HIGHLIGHTS
The following schedule presents financial highlights for a share of the Fund
outstanding throughout the periods indicated.
<TABLE>
<CAPTION>
CLASS A(a)
-----------------------------------------------------------
SIX MONTHS
SEVEN MONTHS ENDED
ENDED JUNE 30, YEAR ENDED DECEMBER 31,
JULY 31, 2000 ---------------------------
2000(b) (UNAUDITED)(b) 1999 1998(b) 1997(b)
------------ -------------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 10.61 $ 10.61 $ 11.46 $15.74 $ 14.19
------------------------------------------------------------ ------- ------- ------- ------- -------
Income from investment operations:
Net investment income 0.30 0.28 0.42 0.58 0.34
------------------------------------------------------------ ------- ------- ------- ------- -------
Net gains (losses) on securities (both realized and
unrealized) 2.38 1.43 (0.75) (4.11) 2.39
------------------------------------------------------------ ------- ------- ------- ------- -------
Total from investment operations 2.68 1.71 (0.33) (3.53) 2.73
------------------------------------------------------------ ------- ------- ------- ------- -------
Less distributions:
Dividends from net investment income (0.25) (0.25) (0.52) (0.50) (0.44)
------------------------------------------------------------ ------- ------- ------- ------- -------
Distributions from net realized gains -- -- -- (0.25) (0.74)
------------------------------------------------------------ ------- ------- ------- ------- -------
Total distributions (0.25) (0.25) (0.52) (0.75) (1.18)
------------------------------------------------------------ ------- ------- ------- ------- -------
Net asset value, end of period $ 13.04 $ 12.07 $ 10.61 $11.46 $ 15.74
============================================================ ======= ======= ======= ======= =======
Total return(c) 25.61% 16.26% (2.88)% (22.54)% 19.78%
============================================================ ======= ======= ======= ======= =======
Ratios/supplemental data:
Net assets, end of period (000s omitted) $23,187 $20,109 $16,279 $20,087 $16,507
============================================================ ======= ======= ======= ======= =======
Ratio of expenses to average net assets:
With fee waivers 1.61%(d) 1.62%(d) 1.61% 1.55% 1.60%
------------------------------------------------------------ ------- ------- ------- ------- -------
Without fee waivers 2.05%(d) 2.00%(d) 1.73% 1.71% 1.70%
------------------------------------------------------------ ------- ------- ------- ------- -------
Ratio of net investment income to average net assets 4.49%(d) 5.02%(d) 3.70% 4.37% 3.26%
============================================================ ======= ======= ======= ======= =======
Portfolio turnover rate 39% 33% 52% 69% 57%
============================================================ ======= ======= ======= ======= =======
</TABLE>
(a) Per share information and shares have been restated to reflect a 4 for 1
stock split, effected in the form of a 300% stock dividend, on November 7,
1997.
(b) Calculated using average shares outstanding.
(c) Does not deduct sales charges and is not annualized for periods less than
one year.
(d) Ratios are annualized and based on average net assets of $18,157,465 and
$17,644,479 for July 31, 2000 and June 30, 2000, respectively.
14
<PAGE> 17
NOTE 8-FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
CLASS B
--------------------------------------------------------------
SIX MONTHS MAY 3, 1998
SEVEN MONTHS ENDED (DATE SALES
ENDED JUNE 30, YEAR ENDED COMMENCED) TO
JULY 31, 2000 DECEMBER 31, DECEMBER 31,
2000(a) (UNAUDITED)(a) 1999 1998(a)
------------ -------------- ------------ ---------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 10.64 $ 10.64 $11.48 $ 15.34
------------------------------------------------------------ ------- ------- ------ -------
Income from investment operations:
Net investment income 0.25 0.24 0.32 0.37
------------------------------------------------------------ ------- ------- ------ -------
Net gains (losses) on securities (both realized and
unrealized) 2.39 1.43 (0.72) (3.58)
------------------------------------------------------------ ------- ------- ------ -------
Total from investment operations 2.64 1.67 (0.40) (3.21)
------------------------------------------------------------ ------- ------- ------ -------
Less distributions:
Dividends from net investment income (0.21) (0.21) (0.44) (0.40)
------------------------------------------------------------ ------- ------- ------ -------
Distributions from net realized gains -- -- -- (0.25)
------------------------------------------------------------ ------- ------- ------ -------
Total distributions (0.21) (0.21) (0.44) (0.65)
------------------------------------------------------------ ------- ------- ------ -------
Net asset value, end of period $ 13.07 $ 12.10 $10.64 $ 11.48
============================================================ ======= ======= ======= =======
Total return(b) 25.08% 15.80% (3.53)% (21.02)%
============================================================ ======= ======= ======= =======
Ratios/supplemental data:
Net assets, end of period (000s omitted) $12,722 $11,344 $9,839 $ 6,901
============================================================ ======= ======= ======= =======
Ratio of expenses to average net assets:
With fee waivers 2.37%(c) 2.37%(c) 2.35% 2.31%(d)
------------------------------------------------------------ ------- ------- ------ -------
Without fee waivers 2.70%(c) 2.65%(c) 2.37% 2.35%(d)
============================================================ ======= ======= ======= =======
Ratio of net investment income to average net assets 3.73%(c) 4.27%(c) 2.96% 3.62%(d)
============================================================ ======= ======= ======= =======
Portfolio turnover rate 39% 33% 52% 69%
============================================================ ======= ======= ======= =======
</TABLE>
(a) Calculated using average shares outstanding.
(b) Does not deduct contingent deferred sales charges and is not annualized for
periods less than one year.
(c) Ratios are annualized and based on average net assets of $10,553,634 and
$10,312,894 for July 31, 2000 and June 30, 2000, respectively.
(d) Annualized.
<TABLE>
<CAPTION>
CLASS C(a)
----------------------------------------------------------------------------------
SIX MONTHS MAY 1, 1995
SEVEN MONTHS ENDED (DATE SALES
ENDED JUNE 30, YEAR ENDED DECEMBER 31, COMMENCED) TO
JULY 31, 2000(b) ------------------------------------- DECEMBER 31,
2000(b) (UNAUDITED) 1999(b) 1998(b) 1997(b) 1996 1995
------------ ----------- ------- ------- ------- ------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 10.62 $ 10.62 $ 11.46 $ 15.74 $ 14.19 $ 10.76 $10.00
--------------------------------------------- ------- ------- ------- ------- ------- ------- ------
Income from investment operations:
Net investment income 0.25 0.24 0.33 0.50 0.36 0.33 0.16
--------------------------------------------- ------- ------- ------- ------- ------- ------- ------
Net gains (losses) on securities (both
realized and unrealized) 2.39 1.44 (0.73) (4.13) 2.26 3.51 0.75
--------------------------------------------- ------- ------- ------- ------- ------- ------- ------
Total from investment operations 2.64 1.68 (0.40) (3.63) 2.62 3.84 0.91
--------------------------------------------- ------- ------- ------- ------- ------- ------- ------
Less distributions:
Dividends from net investment income (0.21) (0.21) (0.44) (0.40) (0.33) (0.31) (0.15)
--------------------------------------------- ------- ------- ------- ------- ------- ------- ------
Distributions from net realized gains -- -- -- (0.25) (0.74) (0.10) --
--------------------------------------------- ------- ------- ------- ------- ------- ------- ------
Total distributions (0.21) (0.21) (0.44) (0.65) (1.07) (0.41) (0.15)
--------------------------------------------- ------- ------- ------- ------- ------- ------- ------
Net asset value, end of period $ 13.05 $ 12.09 $ 10.62 $ 11.46 $ 15.74 $ 14.19 $10.76
============================================= ======= ======= ======= ======= ======= ======= ======
Total return(c) 25.13% 15.92% (3.54)% (23.16)% 18.88% 36.43% 9.12%
============================================= ======= ======= ======= ======= ======= ======= ======
Ratios/supplemental data:
Net assets, end of period (000s omitted) $20,306 $19,181 $19,992 $32,921 $43,934 $20,566 $5,565
============================================= ======= ======= ======= ======= ======= ======= ======
Ratio of expenses to average net assets:
With fee waivers 2.37%(d) 2.37%(d) 2.35% 2.31% 2.35% 2.40% 2.40%(e)
--------------------------------------------- ------- ------- ------- ------- ------- ------- ------
Without fee waivers 2.70%(d) 2.65%(d) 2.37% 2.37% 2.35% 2.40% 2.40%(e)
============================================= ======= ======= ======= ======= ======= ======= ======
Ratio of net investment income to average net
assets 3.73%(d) 4.27%(d) 2.96% 3.62% 2.54% 3.21% 4.68%(e)
============================================= ======= ======= ======= ======= ======= ======= ======
Portfolio turnover rate 39% 33% 52% 69% 57% 25% 7%
============================================= ======= ======= ======= ======= ======= ======= ======
</TABLE>
(a) Per share information and shares have been restated to reflect a 4 for 1
stock split, effected in the form of a 300% stock dividend, on November 7,
1997.
(b) Calculated using average shares outstanding.
(c) Does not deduct contingent deferred sales charges and is not annualized for
periods less than one year.
(d) Ratios are annualized and based on average net assets of $19,011,605 and
$18,881,816 for July 31, 2000 and June 30, 2000, respectively.
(e) Annualized.
15
<PAGE> 18
INDEPENDENT AUDITORS' REPORT
The Board of Directors and Shareholders of
AIM Advisor Real Estate Fund:
We have audited the accompanying statement of assets and liabilities of AIM
Advisor Real Estate Fund (a portfolio of AIM Advisor Funds, Inc.) including the
schedule of investments, as of July 31, 2000, and the related statement of
operations for the seven months ended July 31, 2000 and the year ended December
31, 1999, the statement of changes in net assets for the seven months ended July
31, 2000 and the two-years ended December 31, 1999, and the financial highlights
for the seven months ended July 31, 2000 and for each of the years in the
two-year period ended December 31, 1999. These financial statements and
financial highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and the
financial highlights based on our audits.
We conducted our audits in accordance with auditing standards generally
accepted in the United States of America. Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. Our procedures included confirmation of
securities owned as of July 31, 2000, by correspondence with the custodian and
brokers. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of AIM
Advisor Real Estate Fund as of July 31, 2000, the results of its operations for
the seven months ended July 31, 2000 and the year ended December 31, 1999, the
changes in its net assets for the seven months ended July 31, 2000 and the
two-years ended December 31, 1999, and the financial highlights for the seven
months ended July 31, 2000 and for each of the years in the two-year period
ended December 31, 1999, in conformity with accounting principles generally
accepted in the United States of America.
/s/ KPMG LLP
September 1, 2000
Houston, Texas
16
<PAGE> 19
<TABLE>
<S> <C> <C>
BOARD OF DIRECTORS OFFICERS OFFICE OF THE FUND
Charles T. Bauer Charles T. Bauer 11 Greenway Plaza
Director and 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, Senior Vice President and 11 Greenway Plaza
and Chief Executive Officer Secretary Suite 100
COMSAT Corporation Houston, TX 77046
Gary T. Crum
Owen Daly II Senior Vice President SUB-ADVISOR
Formerly Director
Cortland Trust Inc. Dana R. Sutton INVESCO, Inc.
Vice President and Treasurer One Lincoln Centre, Suite 700
Edward K. Dunn Jr. 5400 LBJ Freeway/LB-2
Chairman, Mercantile Mortgage Corp.; Robert G. Alley Dallas, TX 75240
Formerly Vice Chairman, President Vice President
and Chief Operating Officer, TRANSFER AGENT
Mercantile-Safe Deposit & Stuart W. Coco
Trust Co.; and President, Vice President A I M Fund Services, Inc.
Mercantile Bankshares P.O. Box 4739
Melville B. Cox Houston, TX 77210-4739
Jack Fields Vice President
Chief Executive Officer CUSTODIAN
Texana Global, Inc. and Karen Dunn Kelley
Twenty First Century Group, Inc.; Vice President State Street Bank and
Formerly Member Trust Company
of the U.S. House of Representatives Edgar M. Larsen 225 Franklin Street
Vice President Boston, MA 02110
Carl Frischling
Partner Mary J. Benson COUNSEL TO THE FUND
Kramer, Levin, Naftalis & Frankel LLP Assistant Vice President and
Assistant Treasurer Ballard Spahr
Robert H. Graham Andrews & Ingersoll, LLP
Director, President and Chief Sheri Morris 1735 Market Street
Executive Officer Assistant Vice President and Philadelphia, PA 19103
A I M Management Group Inc. Assistant Treasurer
COUNSEL TO THE DIRECTORS
Prema Mathai-Davis Renee A. Friedli
Formerly, Chief Executive Officer, Assistant Secretary Kramer, Levin, Naftalis
YWCA of the U.S.A. & Frankel LLP
P. Michelle Grace 919 Third Avenue
Lewis F. Pennock Assistant Secretary New York, NY 10022
Attorney
Nancy L. Martin DISTRIBUTOR
Louis S. Sklar Assistant Secretary
Executive Vice President, A I M Distributors, Inc.
Development and Operations, Ofelia M. Mayo 11 Greenway Plaza
Hines Interests Assistant Secretary Suite 100
Limited Partnership Houston, TX 77046
Lisa A. Moss
Assistant Secretary AUDITORS
Kathleen J. Pflueger KPMG LLP
Assistant Secretary 700 Louisiana
Houston, TX 77002
</TABLE>
REQUIRED FEDERAL INCOME TAX INFORMATION (UNAUDITED)
AIM Advisor Real Estate Fund Class A, Class B and Class C shares paid ordinary
dividends in the amount of $0.255, $0.213 and $0.213 per share, respectively, to
shareholders during the Fund's tax year ended July 31, 2000. Of these amounts,
0.01% is eligible for the dividends received deduction for corporations.
<PAGE> 20
THE AIM FAMILY OF FUNDS--Registered Trademark--
<TABLE>
<S> <C> <C>
EQUITY FUNDS
DOMESTIC EQUITY FUNDS INTERNATIONAL/GLOBAL EQUITY FUNDS A I M Management Group Inc. has provided
leadership in the mutual fund industry since 1976
MORE AGGRESSIVE MORE AGGRESSIVE and managed approximately $176 billion in assets
for more than 8 million shareholders, including
AIM Small Cap Opportunities(1) AIM Latin American Growth individual investors, corporate clients and
AIM Mid Cap Opportunities(2) AIM Developing Markets financial institutions, as of June 30, 2000.
AIM Large Cap Opportunities(6) AIM European Small Company The AIM Family of Funds--Registered
AIM Emerging Growth AIM Asian Growth Trademark-- is distributed nationwide, and AIM
AIM Small Cap Growth(3) AIM Japan Growth today is the eighth-largest mutual fund complex in
AIM Aggressive Growth AIM International Emerging Growth the United States in assets under management,
AIM Mid Cap Growth AIM European Development according to Strategic Insight, an independent
AIM Small Cap Equity AIM Euroland Growth mutual fund monitor.
AIM Capital Development AIM Global Aggressive Growth AIM is a subsidiary of AMVESCAP PLC, one of
AIM Constellation(4) AIM International Equity the world's largest independent financial services
AIM Dent Demographic Trends AIM Advisor International Value companies with $389 billion in assets under
AIM Select Growth AIM Global Trends management as of June 30, 2000.
AIM Large Cap Growth AIM Global Growth
AIM Weingarten
AIM Mid Cap Equity MORE CONSERVATIVE
AIM Value II
AIM Charter SECTOR EQUITY FUNDS
AIM Value
AIM Blue Chip MORE AGGRESSIVE
AIM Basic Value
AIM Large Cap Basic Value AIM New Technology
AIM Balanced AIM Global Telecommunications and Technology
AIM Advisor Flex AIM Global Resources
AIM Global Financial Services
MORE CONSERVATIVE AIM Global Health Care
AIM Global Consumer Products and Services
AIM Global Infrastructure
AIM Advisor Real Estate
AIM Global Utilities
MORE CONSERVATIVE
FIXED-INCOME FUNDS
TAXABLE FIXED-INCOME FUNDS TAX-FREE FIXED-INCOME FUNDS
MORE AGGRESSIVE MORE AGGRESSIVE
AIM Strategic Income AIM High Income Municipal
AIM High Yield II AIM Tax-Exempt Bond of Connecticut
AIM High Yield AIM Municipal Bond
AIM Income AIM Tax-Free Intermediate
AIM Global Income AIM Tax-Exempt Cash
AIM Floating Rate(5)
AIM Intermediate Government MORE CONSERVATIVE
AIM Limited Maturity Treasury
AIM Money Market
MORE CONSERVATIVE
</TABLE>
The AIM Risk Spectrum illustrates equity and fixed-income funds from more
aggressive to more conservative. When assessing the degree of risk, three
factors were considered: the funds' portfolio holdings, volatility patterns over
time and diversification permitted within the fund. Fund rankings are relative
to one another within The AIM Family of Funds--Registered Trademark-- and should
not be compared with other investments. There is no guarantee that any one AIM
fund will be less volatile than any other. (1) AIM Small Cap Opportunities Fund
closed to new investors Nov. 4, 1999. (2) AIM Mid Cap Opportunities Fund closed
to new investors March 21, 2000. (3) AIM Small Cap Growth Fund closed to new
investors Nov. 8, 1999. (4) AIM Constellation Fund's investment strategy
broadened to allow investments across all market capitalizations Dec. 1, 1999.
(5) AIM Floating Rate Fund was restructured to offer multiple share classes
April 3, 2000. Existing shares were converted to Class B shares, and Class C
shares commenced offering. (6) AIM Large Cap Opportunities Fund will close to
new investors Sept. 29, 2000, or when the fund reaches a total net asset value
of $750 million, whichever occurs first.
FOR MORE COMPLETE INFORMATION ABOUT ANY AIM FUND, INCLUDING SALES CHARGES
AND EXPENSES, OBTAIN THE APPROPRIATE PROSPECTUS(ES) FROM YOUR FINANCIAL ADVISOR.
PLEASE READ THE PROSPECTUS(ES) CAREFULLY BEFORE YOU INVEST OR SEND MONEY. This
report is not authorized for distribution to prospective investors unless
preceded or accompanied by a currently effective fund prospectus. If used as
sales material after Oct. 20, 2000, this report must be accompanied by a fund
Performance & Commentary or by an AIM Quarterly Review of Performance for the
most recent quarter end.
[DALBAR LOGO APPEARS HERE] [AIM LOGO APPEARS HERE]
--Registered Trademark--
INVEST WITH DISCIPLINE
--Registered Trademark--
A I M Distributors, Inc. REA-AR-1
