<PAGE>
S
/ /
AIM EMERGING
MARKETS FUND
FORMERLY GT GLOBAL
EMERGING
MARKETS FUND
/ /
SEMIANNUAL REPORT
APRIL 30, 1998
INVEST WITH
DISCIPLINE-SM-
<PAGE>
TABLE
OF CONTENTS
<TABLE>
<S> <C>
Message from the
Chairmen............. 1
Report from the Fund
Managers and Key
Portfolio Holdings... 2
Report of Independent
Accountants.......... F1
Financial
Statements........... F2
Views of the Fund's management
described in this report are as
of the date written. Portfolio
holdings and allocations are as
of April 30, 1998, unless
otherwise noted. These views,
portfolio holdings and
allocations may have changed
subsequently.
</TABLE>
<PAGE>
AIM EMERGING MARKETS FUND
MESSAGE FROM THE CHAIRMEN
Dear Fellow Shareholder,
We are pleased to send you this semiannual report. In the time since you
received your last report, there have been a few changes. Your Fund is now a
part of The AIM Family of Funds-Registered Trademark- and has adopted the AIM
name. Thanks to a vote of approval by GT Global shareholders, A I M Advisors,
Inc. became the new investment advisor to GT Global Funds, effective June 1,
1998.
We believe you'll enjoy many advantages as a member of The AIM Family of
Funds-Registered Trademark-. You'll have access to a greater variety of
investment choices, and you'll benefit from AIM's commitment to excellence in
shareholder service. Most of all, you'll be part of an expanded fund family that
is one of the largest and most respected in the industry.
Though the funds are wearing a new name, your investments will continue to seek
their stated objectives and receive expert, professional management. In the
report that follows you'll find commentary from managers you know, with the
depth of coverage you've come to expect.
If you have any questions about your account, you can continue to call
800-223-2138 for information, service and transactions. Fund and account
information can also be found on the GT Global Website (www.gtglobal.com). These
sources will be available to you until September 1998. At that time, GT Global
accounts will be fully integrated into The AIM Family of Funds-Registered
Trademark-, and you will have received additional information from AIM.
Thank you for your past support of GT Global Funds. AIM is looking forward to
continuing a satisfying relationship with you and helping you reach your
financial goals.
Sincerely,
/s/ William J. Guilfoyle /s/ Charles T. Bauer
William J. Guilfoyle Charles T. Bauer
Chairman of the Board and President, Chairman,
GT Global Funds The AIM Family of Funds-Registered
Trademark-
1
- - -
<PAGE>
[Photo]
INVESTMENT OBJECTIVE
The AIM Emerging Markets Fund seeks long-term growth of capital. The Fund
primarily invests in equity securities of companies located in emerging markets,
which generally include every country except the U.S., Canada, Japan, Australia,
New Zealand and most of the countries of western Europe.
<TABLE>
<CAPTION>
AIM EMERGING MARKETS FUND
PERFORMANCE SUMMARY
MONTH AIM EMERGING MARKETS FUND IFC INVESTABLE COMPOSITE
<S> <C> <C>
5/18/92 9525 10000
5/31/92 9550 9832
6/30/92 9358 8823
7/31/92 9333 8804
8/31/92 9100 8432
9/30/92 8942 8257
10/31/92 9258 8626
11/30/92 9075 8569
12/31/92 9034 8855
1/31/93 9269 8816
2/28/93 9529 9040
3/31/93 9630 9334
4/30/93 9915 9669
5/31/93 10159 9880
6/30/93 10176 10160
7/31/93 10386 10476
8/31/93 10956 11326
9/30/93 11150 11782
10/31/93 12107 12774
11/30/93 12736 13584
12/31/93 14857 15905
1/31/94 15556 16015
2/28/94 15053 15599
3/31/94 13739 14025
4/30/94 13270 13759
5/31/94 13526 14083
6/30/94 12945 13579
7/31/94 13858 14554
8/31/94 15787 16425
9/30/94 16197 16833
10/31/94 16051 16279
11/30/94 15522 15666
12/31/94 14299 13997
1/31/95 12809 12126
2/28/95 11988 11969
3/31/95 12139 11938
4/30/95 12711 12439
5/31/95 13130 12904
6/30/95 12934 12982
7/31/95 13344 13395
8/31/95 13077 13036
9/30/95 12898 12937
10/31/95 12354 12449
11/30/95 11791 12387
12/31/95 12318 12818
1/31/96 13282 13892
2/29/96 13237 13583
3/31/96 13318 13782
4/30/96 13612 14337
5/31/96 13630 14211
6/30/96 13371 14380
7/31/96 12675 13435
8/31/96 13014 13852
9/30/96 13112 14056
10/31/96 12728 13754
11/30/96 12773 13958
12/31/96 12970 14020
1/31/97 13792 15009
2/28/97 14265 15744
3/31/97 13685 15355
4/30/97 13604 15094
5/31/97 13926 15607
6/30/97 14471 16281
7/31/97 14846 16438
8/31/97 12693 14340
9/30/97 13051 14806
10/31/97 10889 12376
11/30/97 10630 11788
12/31/97 10889 11930
1/31/98 9835 11166
2/28/98 10514 12304
3/31/98 10951 12786
4/30/98 11193 12829
</TABLE>
The chart above shows the performance of the AIM Emerging Markets Fund Class A
shares since inception, versus the IFC Investable Composite Index. The chart
assumes a hypothetical $10,000 initial investment in the Fund's Class A shares
and reflects all Fund expenses and the maximum 4.75% sales charge. A $10,000
investment in the Fund's Class B shares at inception on April 1, 1993, would
have been valued at $11,233 on April 30, 1998. This figure reflects all Fund
expenses and the applicable contingent deferred sales charge (5% in the first
year, decreasing to 0% after six years), assuming complete redemption at the end
of the period. A $10,000 investment in Advisor Class shares at inception on June
1, 1995, would have been worth $8,570 on April 30, 1998.
AVERAGE ANNUAL TOTAL RETURNS %(1)
APRIL 30, 1998
<TABLE>
<CAPTION>
SHARE CLASS WITHOUT SALES CHARGE(2) WITH SALES CHARGE
1-YEAR 5-YEAR LIFE OF FUND 1-YEAR 5-YEAR LIFE OF FUND
<S> <C> <C> <C> <C> <C> <C>
CLASS A(3) -17.73 2.45 2.75 -21.64 1.46 1.91
CLASS B(3) -18.19 1.94 2.49 -22.28 1.56 2.32
ADVISOR CLASS(4) -17.28 N/A -5.16 N/A N/A N/A
</TABLE>
HISTORICAL PERFORMANCE %(2)
ANNUAL TOTAL RETURNS (PER CALENDAR YEAR)
<TABLE>
<CAPTION>
1992 1993 1994 1995 1996 1997
<S> <C> <C> <C> <C> <C> <C>
CLASS A -5.16(3) 64.46 -3.75 -13.86 5.30 -16.05
CLASS B N/A 53.92(3) -4.28 -14.34 4.77 -16.47
</TABLE>
(1) Figures assume reinvestment of all dividends and capital gain distributions
at net asset value.
(2) Performance data do not reflect the maximum 4.75% sales charge or the
contingent deferred sales charge, which, if included, would have reduced
performance quoted.
(3) The Fund began operations for Class A Shares on May 18, 1992; Class B
shares commenced on April 1, 1993.
(4) The Fund began offering Advisor Class shares on June 1, 1995. Advisor Class
shares are not sold directly to the general public and are only available
through certain employee benefit plans, financial institutions and other
entities that have entered into specific agreements with the Fund's
Distributor. Please see the Fund's prospectus for more complete
information.
The above data represent past performance of the Fund's shares, which does not
guarantee future results. The investment return and principal value of an
investment in the Fund will fluctuate, so that an investor's shares, when
redeemed, may be worth more or less than their original cost.
From time to time, the Fund's investment advisor may waive some fees and/or
reimburse some expenses, without which performance would be lower. Waivers and
reimbursements are subject to change.
2
- - -
<PAGE>
AIM EMERGING MARKETS FUND
INTERVIEW WITH THE EMERGING MARKETS TEAM
Q HOW DID THE FUND PERFORM?
A For the six-month period to April 30, 1998, sentiment toward many emerging
equity markets continued to suffer from the Asian crisis, beginning with the
devaluation of the Thai baht in July 1997. The fall in oil prices in March of
this year also contributed to the softness of several emerging markets,
including Russia, Mexico and Venezuela.
Against this backdrop, the Fund's Class A shares returned a total of 2.79%
(-2.11% including the maximum 4.75% sales charge); total return for the Fund's
Class B shares was 2.51% (-2.49% including the maximum 5% contingent deferred
sales charge). The International Finance Corporation (IFC) Investable Composite
Index(5) returned 3.66% over the same period.
On a country selection basis, the Fund performed well against the IFC Investable
Composite Index, with our underweighted positions in Malaysia and Indonesia
contributing significantly to the Fund's performance. Security selection in
Taiwan was also overwhelmingly positive. Stock selection overall, and in South
Africa in particular, caused the Fund to slightly lag the index.
Q WHAT COMPANIES MOST IMPACTED FUND PERFORMANCE?
A In this difficult environment, a few select companies performed well,
including Asustek Computer of Taiwan, Brazil's Telebras and Telefonos de Mexico.
Asustek benefited from strength in the electronics sector and a strong
competitive position. Telebras and Telefonos de Mexico-two of the most liquid
stocks in Latin America-recovered from their October lows as funds returned to
emerging markets.
Notable disappointments included South Africa's Iscor-a steel producer-and
other resource-based stocks that have been hit by significant downward revisions
in growth and, therefore, forecast commodity prices.
REAL GDP GROWTH
[Graph]
<TABLE>
<CAPTION>
89 98f
<S> <C> <C>
U.S./Germany/Japan 3.7% 1.8%
Latin America 1.8% 3.6%
E. Europe/Mid-East 2.8% 3.7%
Emerging Asia 6.1% 2.4%
</TABLE>
Source: INVESCO (NY), Inc., May 1998
Q HOW IS THE FUND POSITIONED RELATIVE TO THE IFC INVESTABLE COMPOSITE INDEX?
A We remain underweight most Asian emerging markets. We are significantly
overweighted relative to the index in only a few emerging markets--Egypt,
Turkey, Israel and Hungary. We feel some emerging markets are overly exposed to
weakness in the price of oil and other commodities. Others, particularly in
Europe, appear very expensive. Above all, the problems of the newly
industrialized countries in East Asia continue to overshadow most emerging
markets.
At the end of April, the Fund was overweighted in the EMEA region (the emerging
markets of Europe, the Middle East and Africa), underweighted in Asia and in
line with the index weighting in Latin America.
Within EMEA, we added to our positions in Turkey, Egypt, Israel, Greece and
Hungary over the six-month period. At the same time, we reduced exposure in
South Africa, to a considerably underweighted position relative to the index. We
also sold off a significant number of our Asian holdings, including those in
Indonesia, Thailand and Hong Kong.
CONTINUED P.4
(5) The IFC Investable Composite Index is a market value-weighted average of
the performance of the securities listed on the exchanges of 29 countries.
It includes the effect of reinvested dividends and is measured in U.S.
dollars.
Indices are unmanaged, not available for direct investment and do not incur
sales charges and professional management fees.
3
- - -
<PAGE>
INTERVIEW WITH THE MANAGEMENT TEAM CONTINUED
We substantially reduced exposure to Hong Kong-listed red-chip stocks. Among our
Latin American holdings, we supplemented our investments in Argentina, Brazil
and Peru at the expense of Chile. Our position in Mexico remained roughly
static. Relative to the index, we were overweighted in Brazil and Peru at the
end of the period.
The most important underweighted positions include Indonesia, South Korea,
Malaysia, Thailand and Taiwan. We see insufficient progress toward restructuring
and recapitalization of the banking sector, with authorities continuing to
sanction non-market based solutions. In South Korea, major corporations remain
in business even though bankrupt, the Malaysian government has financially
rescued politically well-connected companies, and the political situation in
Indonesia remains volatile. We are underweighted Taiwan despite its relatively
stable economic and political outlook because we feel valuations are too
demanding.
Additionally, we have zero exposure to Venezuela, which is especially vulnerable
to any further weakness in the price of oil; to the Czech Republic, where we
feel political risks are excessive; and to Portugal, which appears very
overvalued.
Q WHAT DO YOU LIKE ABOUT EMEA?
A Although our outlook for many of these markets continues to be overshadowed
by events in Asia, we find some selected opportunities in the region. In
particular, we favor Egypt, Israel and Hungary.
In Egypt, interest rates have continued to edge lower, largely on the back of a
slight fall in inflation. We believe valuations remain attractive and that
economic reform and inflows of foreign capital could boost consumption and
investment.
We believe falling inflation in Israel could prompt authorities to cut interest
rates further. Both economic fundamentals and stock valuations are attractive,
leading us to overweight the Israeli market.
Our outlook for Hungary remains positive. The commitment of Hungarian
authorities to financial stability and economic austerity has resulted in a
significant rerating of the domestic stock market. Its status as a relatively
safe haven subsequent to the global equity market turbulence in October 1997 has
produced substantial capital inflows and driven the market to record levels.
Fundamentally, the market continues to impress, and we are forecasting
significantly higher export-fueled growth this year. While we currently expect
to remain overweighted, we will watch for any signs of overheating.
Q WHAT ARE YOUR EXPECTATIONS OF SOUTH AMERICAN MARKETS?
A Weakness in the price of oil has led to a tightening in Mexico's fiscal
policy, which we believe may serve to dampen domestic demand. Moreover, trade
accounts have deteriorated somewhat and, as a consequence, the peso may soften.
Against these negative factors, inflation has stabilized, interest rates could
decline from here, and we are able to identify a range of attractive stocks. We
remain slightly underweighted.
We are underweighted in Argentina's major oil stocks, which account for about
43% of the stock market's capitalization. However, we are overweighted in banks
and other plays on domestic demand, which remains firm.
We believe Brazil's economic growth is likely to be constrained by the doubling
in interest rates, to around 40%, and by the latest fiscal package. Much of the
good news about the economic reform program has already been discounted by the
market. Further progress may also be difficult following the deaths of two key
political supporters of President Cardoso. Although we are still overweight
relative to the index, we have begun to trim our positions somewhat. In our
stock selection, we are concentrating on privatization plays.
Among the smaller markets, we are overweighted to Peru. Even though El Nino and
falling metal prices have had a severe impact on the important fishing and
mining industries, we believe equity valuations are attractive. However, we are
avoiding Colombia, where the economy remains weak and where political
instability remains a key issue.
CONTINUED P.5
4
<PAGE>
AIM EMERGING MARKETS FUND
INTERVIEW WITH THE MANAGEMENT TEAM CONTINUED
We are also avoiding Venezuela, where we think the fall in the price of oil will
contribute to an economic slowdown and, possibly, to currency weakness. In
Chile, we believe valuations are beginning to appear attractive and that the
stock market may have discounted the impact of problems in East Asia on Chile's
exports, along with the recent rise in interest rates.
Q WHY DID YOU REDUCE THE FUND'S EXPOSURE TO ASIA?
A We believe the recent optimism that produced strong rallies in a number of
these markets over the past three to four months is misplaced. In our opinion,
the environment in Asia remains very challenging, and we continue to believe
regional stock markets will remain volatile.
Thanks in part to Japan's worsening problems, economic conditions throughout the
region continue to deteriorate. While additional renegotiations of foreign
currency debt will take place later in 1998, authorities have not moved
sufficiently to recapitalize failed banks in the countries most affected by
financial crises over the last year. Above all, the economic problems and
political instability of Indonesia are likely to dampen investment sentiment
toward other ASEAN countries, South Korea and Hong Kong for some time.
Q WHAT IS YOUR POSITION ON SOUTH AFRICA?
A We have continued to realize profits in South Africa and are currently
underweighted relative to the index. Short-term inflows of capital have boosted
money supply growth, with the consequence that bond yields have risen. Most
analysts are recognizing weakness in the economy and revising their earnings
forecasts down. We feel valuations are demanding.
Q RUSSIA CONTINUES TO BE A SIGNIFICANT FUND HOLDING AT 4.9%. ARE YOU
CONCERNED ABOUT RECENT MARKET WEAKNESS?
A We continue to believe in Russia's merits as a long-term holding. However,
in recognizing that the recent weakness of Russia's stock market accurately
reflects the country's problems, we retain a position broadly in line with the
index. Should high interest rates persist, we are concerned they could
destabilize the Russian economy.
Even after slashing public spending, the government is forecasting a budget
deficit of about 5% of GDP this year. It has assumed that, on average, interest
rates will be 25% and that interest payments on government debt will amount to
about one-quarter of public spending. If interest rates stay at twice this
level, the government's finances will be in disarray. The recent miners' strike
suggests to us that the public will not tolerate further cuts in spending. We
will continue to monitor developments closely.
GEOGRAPHIC ALLOCATION OF NET ASSETS%
<TABLE>
<CAPTION>
APRIL 30, 1998 APRIL 30, 1997
<S> <C> <C>
ARGENTINA 3.5 0.3
BRAZIL 14.2 9.8
CHILE 4.5 -
CHINA 0.3 -
COLOMBIA - 2.9
CZECH REPUBLIC - 3.2
EGYPT 7.0 -
GREECE 3.3 4.4
HONG KONG 0.3 8.5
HUNGARY 2.6 -
INDIA 5.2 9.8
IRELAND 0.8 -
ISRAEL 3.7 3.2
KAZAKHSTAN 0.3 -
KOREA 0.9 1.4
MALAYSIA 2.2 3.6
MEXICO 11.0 9.9
MOROCCO 0.1 -
PAKISTAN 1.2 0.2
PANAMA - 3.3
PERU 2.3 -
PHILIPPINES 2.0 0.6
POLAND 0.5 -
PORTUGAL - 1.7
ROMANIA 0.3 -
RUSSIA 4.9 6.9
SOUTH AFRICA 10.8 7.3
SRI LANKA 0.6 -
TAIWAN 4.2 -
THAILAND 0.4 0.3
TURKEY 6.9 2.4
UNITED KINGDOM 1.2 -
UNITED STATES & OTHER 4.8 16.0
VENEZUELA - 1.7
ZIMBABWE - 2.6
</TABLE>
5
- - -
<PAGE>
AIM EMERGING MARKETS FUND
ALLOCATION OF NET ASSETS
[Graph]
<TABLE>
<CAPTION>
<S> <C>
Consumer Durables 1.8%
Capital Goods 1.8%
Health Care 2.1%
Technology 2.7%
Other 6.0%
Consumer Non-Durables 8.2%
Multi Industry/Misc. 10.6%
Materials/Basic Ind. 12.7%
Energy 15.2%
Finance 19.1%
Services 19.8%
</TABLE>
Allocations may change as market conditions change. A complete listing may be
found in the Financial Statements section of this report.
<TABLE>
<CAPTION>
AIM EMERGING MARKETS FUND % of
KEY PORTFOLIO HOLDINGS(6) Country Net Assets
<S> <C> <C>
TELEBRAS The holding company of Brazil's local and long-distance services, this currently state- Brazil 4.6
controlled firm is scheduled for privatization in 1998.
PETROBRAS Produces oil and natural gas liquids through approximately 7,258 producing wells. Brazil 1.7
The company continues to benefit from the rapid growth of both reserves and production.
ELETROBRAS Operates as a holding company for the electricity sector in Brazil. The company Brazil 1.5
plans, finances, coordinates and supervises expansion and construction projects for electric
companies.
TELEFONOS DE MEXICO S.A. DE C.V. Provides national and international long-distance and local Mexico 1.4
telephone service to 7,320 communities throughout Mexico. The company also provides voice,
data, image signal and cellular transmission services.
SUEZ CEMENT CO. A manufacturer of cement and other building materials, the company also Egypt 1.4
operates two plants, one in Suez and another in Quattamia.
ASUSTEK COMPUTER INC. Manufactures and markets Pentium Pro, Pentium and 486-based mainboards. Taiwan 1.3
The company also offers other peripherals such as audio, video and network cards.
Asustek sells its products in Taiwan and exports to America, Asia and Europe.
TELEFONICA DEL PERU S.A. This is a full service telecommunications provider, offering fixed local Peru 1.3
and domestic and international long distance telephone services, on an exclusive basis,
throughout Peru.
HELIOPLIS HOUSING A real estate developer. Egypt 1.3
KIMBERLY-CLARK DE MEXICO, S.A. DE C.V. The largest manufacturer of diapers, tissue paper, notebooks Mexico 1.2
and paper in Mexico. The company's conservative management has concentrated on lowering costs every
year to retain its competitive position in the marketplace.
LUKOIL HOLDINGS Russia's largest private oil and gas company, LUKoil holds 18% of Russia's oil Russia 1.2
and gas extracting market and 11% of its refining market. The company's oil reserves are estimated
to be the second largest in the world.
</TABLE>
Source: Bloomberg, April 1998.
(6) There is no assurance the Fund will continue to hold these or any other
securities mentioned in this report.
6
- - -
<PAGE>
AIM EMERGING
MARKETS FUND
(FORMERLY
GT GLOBAL
EMERGING
MARKETS FUND)
FINANCIAL
STATEMENTS
<PAGE>
AIM EMERGING MARKETS FUND
(FORMERLY GT GLOBAL EMERGING MARKETS FUND)
REPORT OF INDEPENDENT ACCOUNTANTS
- --------------------------------------------------------------------------------
To the Shareholders of AIM Emerging Markets Fund
(formerly GT Global Emerging Markets Fund) and
Board of Directors of AIM Investment Funds, Inc.:
We have audited the accompanying statement of assets and liabilities of AIM
Emerging Markets Fund (formerly GT Global Emerging Markets Fund), one of the
funds organized as a series of AIM Investment Funds, Inc., including the
portfolio of investments, as of April 30, 1998, the related statement of
operations for the six months then ended, the statements of changes in net
assets for the six months then ended and for the year ended October 31, 1997,
and the financial highlights for each of the periods indicated therein. These
financial statements and the 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 generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and the 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 April
30, 1998 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 the financial highlights referred
to above present fairly, in all material respects, the financial position of AIM
Emerging Markets Fund as of April 30, 1998, the results of its operations for
the six months then ended, the changes in its net assets for the six months then
ended and for the year ended October 31, 1997, and the financial highlights for
each of the periods indicated therein, in conformity with generally accepted
accounting principles.
COOPERS & LYBRAND L.L.P.
BOSTON, MASSACHUSETTS
JUNE 17, 1998
F1
<PAGE>
AIM EMERGING MARKETS FUND
(FORMERLY GT GLOBAL EMERGING MARKETS FUND)
PORTFOLIO OF INVESTMENTS
April 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Services (19.8%)
Telecomunicacoes Brasileiras S.A. (Telebras): ............. BRZL -- -- 4.6
TELEPHONE NETWORKS
ADR{\/} ................................................. -- 50,962 $ 6,207,802 --
Common .................................................. -- 30,136,813 2,991,280 --
Telefonos de Mexico, S.A. de C.V. "L" - ADR{\/} ........... MEX 51,127 2,895,066 1.4
TELEPHONE NETWORKS
Telefonica del Peru S.A. - ADR{\/} ........................ PERU 119,250 2,638,406 1.3
TELEPHONE NETWORKS
Pick'n Pay Stores Ltd.: ................................... SAFR -- -- 1.1
RETAILERS-OTHER
Common .................................................. -- 1,191,699 2,264,287 --
"N" ..................................................... -- 25,198 45,883 --
Magyar Tavkozlesi Rt. - ADR-/- {\/} ....................... HGRY 67,990 2,005,705 1.0
TELEPHONE NETWORKS
Cifra, S.A. de C.V. "V" ................................... MEX 1,080,730 1,901,166 0.9
RETAILERS-OTHER
Grupo Televisa, S.A. de C.V. - GDR-/- {\/} ................ MEX 41,300 1,693,300 0.8
BROADCASTING & PUBLISHING
Philippine Long Distance Telephone Co.: ................... PHIL -- -- 0.7
TELEPHONE - LONG DISTANCE
ADR{\/} ................................................. -- 30,200 815,400 --
Common .................................................. -- 21,500 577,091 --
Carso Global Telecom "A1" ................................. MEX 339,700 1,303,453 0.6
TELEPHONE NETWORKS
Mahanagar Telephone Nigam Ltd.: ........................... IND -- -- 0.6
TELECOM - OTHER
GDR-/- {\/} ............................................. -- 43,300 694,965 --
Common .................................................. -- 84,400 535,873 --
Companhia de Saneamento Basico do Estado de Sao Paulo -
SABESP ................................................... BRZL 5,368,655 1,220,682 0.6
BUSINESS & PUBLIC SERVICES
Telefonica de Argentina S.A. - ADR{\/} .................... ARG 30,983 1,194,782 0.6
TELEPHONE NETWORKS
Cia de Telecomunicaciones de Chile S.A. - ADR{\/} ......... CHLE 47,107 1,180,619 0.6
TELEPHONE NETWORKS
Telecomunicacoes de Sao Paulo S.A. (TELESP)-/- ............ BRZL 3,945,000 1,029,805 0.5
TELEPHONE NETWORKS
Nortel Inversora S.A. - ADR{\/} ........................... ARG 27,900 830,025 0.4
TELEPHONE NETWORKS
Vimpel-Communications - ADR-/- {\/} ....................... RUS 14,700 793,800 0.4
WIRELESS COMMUNICATIONS
Telecom Argentina S.A. - ADR{\/} .......................... ARG 19,400 698,400 0.3
TELEPHONE NETWORKS
Hellenic Telecommunications Organization S.A. ............. GREC 24,180 692,484 0.3
TELEPHONE NETWORKS
Genting Bhd. .............................................. MAL 183,000 613,297 0.3
LEISURE & TOURISM
Guangshen Railway Co., Ltd. ............................... HK 3,195,000 598,121 0.3
TRANSPORTATION - ROAD & RAIL
Telekom Malaysia Bhd. ..................................... MAL 171,000 517,622 0.3
TELEPHONE NETWORKS
</TABLE>
The accompanying notes are an integral part of the financial statements.
F2
<PAGE>
AIM EMERGING MARKETS FUND
(FORMERLY GT GLOBAL EMERGING MARKETS FUND)
PORTFOLIO OF INVESTMENTS (cont'd)
April 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Services (Continued)
Rostelecom - ADR-/- {\/} .................................. RUS 24,100 $ 516,644 0.3
TELEPHONE - LONG DISTANCE
Danubius Hotel and Spa Rt.-/- ............................. HGRY 19,037 465,275 0.2
LEISURE & TOURISM
Malaysia International Shipping Bhd. - Foreign ............ MAL 240,000 421,622 0.2
TRANSPORTATION - SHIPPING
Telecomunicacoes do Parana (TELPAR) ....................... BRZL 719,000 410,588 0.2
TELECOM - OTHER
Advanced Info. Service - Foreign .......................... THAI 54,600 381,917 0.2
WIRELESS COMMUNICATIONS
Telecomunicacoes de Minas Gerais - Telemig ................ BRZL 2,245,200 346,548 0.2
TELECOM - OTHER
Tanjong PLC ............................................... MAL 142,000 326,216 0.2
LEISURE & TOURISM
Pakistan Telecommunications Co., Ltd. - GDR-/- {\/} ....... PAK 3,700 255,300 0.1
TELEPHONE NETWORKS
Berjaya Sports Toto Bhd. .................................. MAL 98,000 234,405 0.1
LEISURE & TOURISM
Migros Turk T.A.S. ........................................ TRKY 238,400 233,866 0.1
RETAILERS-FOOD
Santa Isabel S.A. - ADR{\/} ............................... CHLE 12,144 200,376 0.1
RETAILERS-FOOD
Trade House GUM - ADR{\/} ................................. RUS 38,320 191,600 0.1
RETAILERS-OTHER
Super Sol Ltd. ............................................ ISRL 56,545 178,328 0.1
RETAILERS-FOOD
Goody's S.A. .............................................. GREC 6,230 166,723 0.1
RESTAURANTS
Siam Makro Public Co., Ltd. - Foreign ..................... THAI 53,400 87,847 --
RETAILERS-OTHER
Indian Hotels Co., Ltd. ................................... IND 2,700 36,037 --
LEISURE & TOURISM
------------
40,392,606
------------
Finance (19.1%)
Alpha Credit Bank ......................................... GREC 21,400 2,257,807 1.1
BANKS-REGIONAL
Uniao de Bancos Brasileiros S.A. (Unibanco): .............. BRZL -- -- 1.0
BANKS-MONEY CENTER
Units{=} ................................................ -- 16,569,429 1,275,274 --
GDR-/- {\/} ............................................. -- 21,670 861,383 --
Turkiye Garanti Bankasi AS-/- ............................. TRKY 37,629,400 1,996,355 1.0
BANKS-REGIONAL
ABSA Group Ltd. ........................................... SAFR 176,757 1,530,553 0.8
BANKS-REGIONAL
Yapi ve Kredi Bankasi AS .................................. TRKY 27,168,347 1,332,582 0.7
BANKS-REGIONAL
Bank Hapoalim Ltd. ........................................ ISRL 494,510 1,328,163 0.7
BANKS-REGIONAL
</TABLE>
The accompanying notes are an integral part of the financial statements.
F3
<PAGE>
AIM EMERGING MARKETS FUND
(FORMERLY GT GLOBAL EMERGING MARKETS FUND)
PORTFOLIO OF INVESTMENTS (cont'd)
April 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Finance (Continued)
Commercial International Bank: ............................ EGPT -- -- 0.6
BANKS-MONEY CENTER
144A GDR{.} {\/} ........................................ -- 63,000 $ 1,067,850 --
Common .................................................. -- 14,000 240,705 --
Credicorp Ltd. - ADR{\/} .................................. PERU 77,770 1,302,648 0.6
BANKS-MONEY CENTER
Akbank T.A.S. ............................................. TRKY 15,141,000 1,288,273 0.6
BANKS-REGIONAL
Cathay Life Insurance Co., Ltd. ........................... TWN 319,000 1,277,161 0.6
INSURANCE-BROKER
National Bank of Greece S.A. .............................. GREC 6,700 1,178,992 0.6
BANKS-MONEY CENTER
Grupo Financiero Banamex Accival, S.A. de C.V. "B"-/- ..... MEX 374,300 1,171,068 0.6
BANKS-MONEY CENTER
State Bank of India Ltd. .................................. IND 146,487 1,062,944 0.5
BANKS-MONEY CENTER
Liberty Life Association of Africa Ltd. ................... SAFR 30,100 1,018,723 0.5
INSURANCE-LIFE
China Development Corp.-/- ................................ TWN 353,000 958,250 0.5
BANKS-MONEY CENTER
C.G. Smith Ltd. ........................................... SAFR 189,300 936,665 0.5
INVESTMENT MANAGEMENT
Nedcor Ltd. ............................................... SAFR 30,400 866,423 0.4
BANKS-REGIONAL
Standard Bank Investment Corporation Ltd. ................. SAFR 13,930 824,358 0.4
BANKS-MONEY CENTER
Ergo Bank S.A. ............................................ GREC 8,600 810,030 0.4
BANKS-REGIONAL
Aksigorta AS .............................................. TRKY 10,482,500 776,481 0.4
INSURANCE - MULTI-LINE
Hua Nan Commercial Bank ................................... TWN 318,000 771,611 0.4
BANKS-MONEY CENTER
Banco do Estado de Sao Paulo S.A. - Banespa ............... BRZL 11,550,000 767,643 0.4
BANKS-REGIONAL
National Societe Generale Bank ............................ EGPT 30,000 754,298 0.4
BANKS-MONEY CENTER
MISR International Bank - Reg S GDR-/- {c} {\/} ........... EGPT 57,300 716,250 0.4
BANKS-MONEY CENTER
Banco de Galicia y Buenos Aires, S.A. de C.V. - ADR{\/} ... ARG 28,226 691,537 0.3
BANKS-MONEY CENTER
Banco de A. Edwards - ADR{\/} ............................. CHLE 42,284 679,187 0.3
BANKS-MONEY CENTER
Banco Frances del Rio de la Plata S.A. - ADR{\/} .......... ARG 23,178 673,611 0.3
BANKS-MONEY CENTER
Turkiye Is Bankasi (Isbank) "C" ........................... TRKY 4,775,900 602,366 0.3
BANKS-MONEY CENTER
Bank Leumi Le - Israel .................................... ISRL 298,645 546,046 0.3
BANKS-REGIONAL
Kazkommertsbank Co. - GDR-/- {\/} ......................... KAZ 19,530 512,663 0.3
BANKS-REGIONAL
</TABLE>
The accompanying notes are an integral part of the financial statements.
F4
<PAGE>
AIM EMERGING MARKETS FUND
(FORMERLY GT GLOBAL EMERGING MARKETS FUND)
PORTFOLIO OF INVESTMENTS (cont'd)
April 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Finance (Continued)
Administradora de Fondos de Pensiones Provida S.A. -
ADR{\/} .................................................. CHLE 28,448 $ 508,508 0.3
INVESTMENT MANAGEMENT
Bank Slaski S.A. .......................................... POL 5,773 494,974 0.2
BANKS-MONEY CENTER
Commercial Bank of Greece S.A. ............................ GREC 7,460 469,425 0.2
BANKS-MONEY CENTER
Banco Santander Chile - ADR{\/} ........................... CHLE 33,100 463,400 0.2
BANKS-REGIONAL
National Development Bank-/- .............................. SLNKA 120,200 446,381 0.2
BANKS-REGIONAL
Banco Rio de La Plata S.A. - ADR-/- {\/} .................. ARG 32,100 441,375 0.2
BANKS-MONEY CENTER
Inversiones y Representaciones S.A. (IRSA) - GDR{\/} ...... ARG 10,750 417,906 0.2
REAL ESTATE
Bank of the Philippine Islands ............................ PHIL 145,200 362,547 0.2
BANKS-MONEY CENTER
F.I.B.I. Holdings Ltd. .................................... ISRL 1,851 328,426 0.2
BANKS-REGIONAL
Liberty Investors Ltd. .................................... SAFR 63,600 324,137 0.2
INVESTMENT MANAGEMENT
Muslim Commercial Bank Ltd.-/- ............................ PAK 403,000 320,204 0.2
BANKS-MONEY CENTER
Ayala Land, Inc. .......................................... PHIL 807,600 317,596 0.2
REAL ESTATE
Global Menkul Degerler AS-/- .............................. TRKY 13,011,257 312,583 0.2
SECURITIES BROKER
National Mortgage Bank of Greece .......................... GREC 3,810 289,757 0.1
BANKS-REGIONAL
OTP Bank Rt. .............................................. HGRY 5,370 254,599 0.1
BANKS-MONEY CENTER
Malayan Banking Bhd. ...................................... MAL 83,000 246,757 0.1
BANKS-MONEY CENTER
Egyptian American Bank SAE ................................ EGPT 7,490 191,515 0.1
BANKS-MONEY CENTER
Shinhan Bank-/- ........................................... KOR 26,400 102,831 0.1
BANKS-MONEY CENTER
Samsung Fire & Marine Insurance-/- ........................ KOR 300 88,764 --
INSURANCE - MULTI-LINE
Kookmin Bank - GDR-/- {\/} ................................ KOR 12,100 79,376 --
BANKS-MONEY CENTER
Bangkok Bank Public Co., Ltd. - Foreign ................... THAI 24,110 60,587 --
BANKS-MONEY CENTER
Thai Farmers Bank Public Co., Ltd. - Foreign .............. THAI 19,300 44,250 --
BANKS-MONEY CENTER
Housing Development Finance Corp. ......................... IND 5 407 --
OTHER FINANCIAL
------------
38,644,205
------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F5
<PAGE>
AIM EMERGING MARKETS FUND
(FORMERLY GT GLOBAL EMERGING MARKETS FUND)
PORTFOLIO OF INVESTMENTS (cont'd)
April 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Energy (15.2%)
Petroleo Brasileiro S.A. (Petrobras) Preferred ............ BRZL 13,807,080 $ 3,501,577 1.7
OIL
Centrais Eletricas Brasileiras S.A. (Eletrobras): ......... BRZL -- -- 1.5
ELECTRICAL & GAS UTILITIES
"B" - ADR{\/} ........................................... -- 89,855 2,010,506 --
"B" Preferred ........................................... -- 13,148,000 586,515 --
Common-/- ............................................... -- 10,494,500 431,344 --
LUKoil Holding - ADR{\/} .................................. RUS 36,976 2,403,440 1.2
OIL
Companhia Energetica de Minas Gerais (CEMIG) - ADR{\/} .... BRZL 44,739 2,169,842 1.1
ELECTRICAL & GAS UTILITIES
Sasol Ltd. ................................................ SAFR 214,407 2,164,227 1.1
ENERGY SOURCES
Unified Energy Systems - Reg S GDR-/- {c} {\/} ............ RUS 67,500 2,160,000 1.1
ELECTRICAL & GAS UTILITIES
YPF S.A. - ADR{\/} ........................................ ARG 45,665 1,592,567 0.8
ENERGY SOURCES
Empresa Nacional de Electricidad S.A. - ADR{\/} ........... CHLE 80,362 1,401,312 0.7
ELECTRICAL & GAS UTILITIES
Light - Participacoes S.A. ................................ BRZL 5,481,073 1,342,108 0.7
ELECTRICAL & GAS UTILITIES
Enersis S.A. - ADR{\/} .................................... CHLE 44,268 1,303,139 0.6
ELECTRICAL & GAS UTILITIES
Light - Servicos de Electricidade S.A. .................... BRZL 2,772,561 1,115,328 0.6
ELECTRICAL & GAS UTILITIES
Cukurova Elektrik AS ...................................... TRKY 358,000 1,032,072 0.5
ELECTRICAL & GAS UTILITIES
MOL Magyar Olaj-es Gazipari RT - Reg S GDR{c} {\/} ........ HGRY 32,360 987,789 0.5
ENERGY SOURCES
Gener S.A. - ADR{\/} ...................................... CHLE 37,873 847,408 0.4
ELECTRICAL & GAS UTILITIES
The Hub Power Co., Ltd. - GDR-/- {\/} ..................... PAK 24,750 624,938 0.3
ENERGY SOURCES
Manila Electric Co. "B" ................................... PHIL 201,900 574,697 0.3
ELECTRICAL & GAS UTILITIES
Irkutskenergo - ADR{\/} ................................... RUS 52,000 507,000 0.3
ELECTRICAL & GAS UTILITIES
Perez Companc S.A. "B" .................................... ARG 77,418 465,329 0.2
OIL
Surgutneftegaz - ADR{\/} .................................. RUS 63,555 444,885 0.2
OIL
Petronas Gas Bhd. ......................................... MAL 153,000 372,162 0.2
OIL
Chilectra S.A. - ADR{\/} .................................. CHLE 13,100 361,888 0.2
ELECTRICAL & GAS UTILITIES
Ingwe Coal Corp. .......................................... SAFR 100,200 358,955 0.2
COAL
Pakistan State Oil Co., Ltd. .............................. PAK 65,184 329,102 0.2
OIL
</TABLE>
The accompanying notes are an integral part of the financial statements.
F6
<PAGE>
AIM EMERGING MARKETS FUND
(FORMERLY GT GLOBAL EMERGING MARKETS FUND)
PORTFOLIO OF INVESTMENTS (cont'd)
April 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Energy (Continued)
Companhia Brasileira de Petroleo Ipiranga S.A.
Preferred ................................................ BRZL 23,126,000 $ 301,336 0.1
OIL
BSES Ltd. - Reg. S GDR-/- {c} {\/} ........................ IND 18,330 301,070 0.1
ELECTRICAL & GAS UTILITIES
Electricity Generating Public Co., Ltd. - Foreign ......... THAI 127,400 247,539 0.1
ELECTRICAL & GAS UTILITIES
Tenaga Nasional Bhd. ...................................... MAL 122,000 245,649 0.1
ELECTRICAL & GAS UTILITIES
PTT Exploration and Production Public Co., Ltd. -
Foreign .................................................. THAI 16,600 175,461 0.1
OIL
Korea Electric Power Corp. ................................ KOR 12,500 170,412 0.1
ELECTRICAL & GAS UTILITIES
Companhia Paranaense de Energia - Copel ................... BRZL 8,012,000 92,487 --
ELECTRICAL & GAS UTILITIES
Transportadora de Gas del Sur S.A. (TGS) - ADR{\/} ........ ARG 2,400 27,750 --
GAS
Banpu Public Co., Ltd. - Foreign .......................... THAI 2,600 17,917 --
COAL
------------
30,667,751
------------
Materials/Basic Industry (12.7%)
Suez Cement Co. - Reg S GDR{c} {\/} ....................... EGPT 140,235 2,860,794 1.4
CEMENT
Helioplis Housing ......................................... EGPT 20,165 2,607,671 1.3
BUILDING MATERIALS & COMPONENTS
Kimberly-Clark de Mexico, S.A. de C.V. "A" ................ MEX 492,744 2,422,997 1.2
PAPER/PACKAGING
Companhia Vale do Rio Doce Preferred ...................... BRZL 69,200 1,633,931 0.8
METALS - STEEL
Industrias Penoles S.A. (CP) .............................. MEX 289,887 1,197,880 0.6
METALS - NON-FERROUS
Reliance Industries Ltd. - GDR-/- {\/} .................... IND 121,000 1,104,125 0.5
CHEMICALS
Apasco, S.A. de C.V. ...................................... MEX 159,381 1,083,866 0.5
CEMENT
De Beers Centenary AG - Linked Unit{.:} ................... SAFR 41,800 1,083,780 0.5
MISC. MATERIALS & COMMODITIES
Cemex, S.A. de C.V.: ...................................... MEX -- -- 0.5
CEMENT
"CPO" ................................................... -- 171,700 859,514 --
"A" ..................................................... -- 43,400 217,256 --
SA Iron & Steel Industrial Corporation Ltd. (ISCOR) ....... SAFR 2,970,244 958,238 0.5
METALS - STEEL
Anglo American Platinum Corporation Ltd. .................. SAFR 51,600 825,191 0.4
METALS - NON-FERROUS
Ameriyah Cement Co. ....................................... EGPT 42,386 820,937 0.4
CEMENT
Compania de Minas Buenaventura S.A. - ADR{\/} ............. PERU 50,900 788,950 0.4
METALS - NON-FERROUS
</TABLE>
The accompanying notes are an integral part of the financial statements.
F7
<PAGE>
AIM EMERGING MARKETS FUND
(FORMERLY GT GLOBAL EMERGING MARKETS FUND)
PORTFOLIO OF INVESTMENTS (cont'd)
April 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Materials/Basic Industry (Continued)
Hindalco Industries Ltd.: ................................. IND -- -- 0.3
METALS - NON-FERROUS
"GDR"{\/} ............................................... -- 34,200 $ 666,900 --
Common .................................................. -- 1,802 34,278 --
Sociedad Quimica y Minera de Chile S.A. - ADR{\/} ......... CHLE 14,670 637,228 0.3
CHEMICALS
Larsen & Toubro Ltd. - Reg S GDR{c} {\/} .................. IND 37,100 488,793 0.2
CEMENT
Grupo Mexico S.A. "L" ..................................... MEX 147,100 468,914 0.2
METALS - NON-FERROUS
Siderca S.A. "A" .......................................... ARG 187,600 452,161 0.2
METALS - STEEL
Nan Ya Plastics Corp. ..................................... TWN 255,000 421,520 0.2
PLASTICS & RUBBER
Kuala Lumpur Kepong Bhd. .................................. MAL 153,000 357,689 0.2
FOREST PRODUCTS
Titan Cement Co., S.A. .................................... GREC 4,000 342,392 0.2
BUILDING MATERIALS & COMPONENTS
AECI Ltd. ................................................. SAFR 66,900 331,024 0.2
CHEMICALS
Makhteshim Chemical Works Ltd.-/- ......................... ISRL 37,330 317,040 0.2
CHEMICALS
Pannonplast Rt. ........................................... HGRY 7,188 305,009 0.2
MISC. MATERIALS & COMMODITIES
Torah Portland Cement Co. ................................. EGPT 14,100 298,990 0.1
CEMENT
Dhan Fibres Ltd.-/- ....................................... PAK 4,273,000 291,010 0.1
CHEMICALS
Turk Sise ve Cam Fabrikalari AS-/- ........................ TRKY 5,880,600 288,438 0.1
GLASS
Golden Hope Plantations Bhd. .............................. MAL 227,000 283,443 0.1
FOREST PRODUCTS
Grupo Cementos de Chihuahua, S.A. de C.V. "B" ............. MEX 241,000 257,218 0.1
CEMENT
Formosa Plastics Corp. .................................... TWN 127,000 217,637 0.1
CHEMICALS
HI Cement Corp. ........................................... PHIL 1,623,000 194,517 0.1
CEMENT
Agros Holding S.A. "C"-/- ................................. POL 8,726 192,826 0.1
MISC. MATERIALS & COMMODITIES
Malakoff Bhd. ............................................. MAL 66,000 174,811 0.1
FOREST PRODUCTS
Engro Chemicals Pakistan Ltd. ............................. PAK 77,924 173,714 0.1
CHEMICALS
Israel Chemicals Ltd. ..................................... ISRL 130,676 157,637 0.1
CHEMICALS
Fauji Fertilizer Co., Ltd. ................................ PAK 71,900 141,841 0.1
CHEMICALS
Pohang Iron & Steel Co., Ltd. ............................. KOR 2,310 125,269 0.1
METALS - STEEL
</TABLE>
The accompanying notes are an integral part of the financial statements.
F8
<PAGE>
AIM EMERGING MARKETS FUND
(FORMERLY GT GLOBAL EMERGING MARKETS FUND)
PORTFOLIO OF INVESTMENTS (cont'd)
April 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Materials/Basic Industry (Continued)
Maderas y Sinteticos S.A. - ADR{\/} ....................... CHLE 8,400 $ 80,325 --
MISC. MATERIALS & COMMODITIES
Associated Cement Cos., Ltd. .............................. IND 51 2,009 --
CEMENT
Dewan Salman Fibre Ltd.-/- ................................ PAK 4 2 --
CHEMICALS
------------
26,167,765
------------
Multi-Industry/Miscellaneous (10.6%)
Haci Omer Sabanci Holding AS: ............................. TRKY -- -- 1.1
CONGLOMERATE
Common .................................................. -- 27,128,500 1,982,363 --
Reg S ADR-/- {c} {\/} ................................... -- 10,700 193,938 --
Barlow Ltd. ............................................... SAFR 220,377 2,130,711 1.0
CONGLOMERATE
The Saudi Arabian Investment Fund Ltd.-/- {\/} ............ UK 263,400 2,075,592 1.0
COUNTRY FUNDS
Rembrandt Group Ltd. ...................................... SAFR 213,660 1,945,247 1.0
CONGLOMERATE
NASR (El) City Company For Housing & Construction ......... EGPT 27,170 1,668,849 0.8
MISCELLANEOUS
Central Asia Regional Growth Fund-/- {\/} (::) ............ IRE 156,000 1,659,840 0.8
COUNTRY FUNDS
Koc Holding AS ............................................ TRKY 7,734,450 1,641,345 0.8
CONGLOMERATE
Grupo Carso, S.A. de C.V. "A1" ............................ MEX 251,000 1,582,456 0.8
MULTI-INDUSTRY
Dogan Sirketler Grubu Holding AS-/- ....................... TRKY 15,917,000 908,177 0.4
MULTI-INDUSTRY
Sanluis Corporacion, S.A. de C.V. ......................... MEX 160,832 854,479 0.4
CONGLOMERATE
Koor Industries Ltd. - ADR{\/} ............................ ISRL 31,615 802,231 0.4
CONGLOMERATE
John Keells Holdings Ltd.-/- .............................. SLNKA 143,750 761,003 0.4
MULTI-INDUSTRY
Anglo American Corporation of South Africa Ltd. ........... SAFR 12,207 722,393 0.4
CONGLOMERATE
Romanian Growth Fund-/- ................................... ROM 75,800 526,810 0.3
COUNTRY FUNDS
Empresas La Moderna, S.A. de C.V. "A"-/- .................. MEX 97,800 490,155 0.2
MULTI-INDUSTRY
Ayala Corp. ............................................... PHIL 803,400 356,064 0.2
CONGLOMERATE
Alfa, S.A. de C.V. "A" .................................... MEX 64,000 349,847 0.2
CONGLOMERATE
Antofagasta Holdings PLC .................................. UK 56,300 307,390 0.2
CONGLOMERATE
Quinenco S.A. - ADR-/- {\/} ............................... CHLE 27,900 287,719 0.1
CONGLOMERATE
</TABLE>
The accompanying notes are an integral part of the financial statements.
F9
<PAGE>
AIM EMERGING MARKETS FUND
(FORMERLY GT GLOBAL EMERGING MARKETS FUND)
PORTFOLIO OF INVESTMENTS (cont'd)
April 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Multi-Industry/Miscellaneous (Continued)
ONA (Omnium Nord Africain) S.A. "A" ....................... MOR 1,590 $ 168,505 0.1
CONGLOMERATE
KEC International Ltd. .................................... IND 300 287 --
MISCELLANEOUS
------------
21,415,401
------------
Consumer Non-Durables (8.2%)
Fomento Economico Mexicano, S.A. de C.V. "B" .............. MEX 277,610 2,058,313 1.0
BEVERAGES - ALCOHOLIC
Hindustan Lever Ltd. ...................................... IND 51,000 2,026,379 1.0
PERSONAL CARE/COSMETICS
ITC Ltd. .................................................. IND 92,128 1,829,677 0.9
TOBACCO
South African Breweries Ltd. .............................. SAFR 53,912 1,809,693 0.9
BEVERAGES - ALCOHOLIC
Gruma S.A. "B"-/- ......................................... MEX 495,083 1,138,632 0.6
FOOD
A-Ahram Beverages Co. S.A.E. - 144A GDR{.} {\/} ........... EGPT 33,135 1,053,693 0.5
BEVERAGES - ALCOHOLIC
Eastern Tobacco Co. ....................................... EGPT 43,845 998,674 0.5
TOBACCO
Embotelladora Andina S.A. "B" - ADR{\/} ................... CHLE 42,247 855,502 0.4
BEVERAGES - NON-ALCOHOLIC
Compania Cervecerias Unidas S.A. - ADR{\/} ................ CHLE 21,346 589,683 0.3
BEVERAGES - ALCOHOLIC
Hellenic Bottling Co. S.A. ................................ GREC 15,140 563,667 0.3
BEVERAGES - NON-ALCOHOLIC
C.G. Smith Foods Ltd. ..................................... SAFR 33,000 515,982 0.3
FOOD
San Miguel Corp. "B" ...................................... PHIL 309,000 509,213 0.3
BEVERAGES - ALCOHOLIC
Companhia Cervejaria Brahma Preferred ..................... BRZL 663,129 432,034 0.2
BEVERAGES - ALCOHOLIC
SUN Brewing Ltd. - GDR-/- {\/} ............................ RUS 22,600 403,122 0.2
BEVERAGES - ALCOHOLIC
Far Eastern Textile Ltd. .................................. TWN 428,000 389,445 0.2
TEXTILES & APPAREL
Rothmans of Pall Mall Bhd. ................................ MAL 45,900 381,466 0.2
TOBACCO
Pepsi-Gemex S.A. - GDR-/- {\/} ............................ MEX 26,300 356,694 0.2
BEVERAGES - NON-ALCOHOLIC
Zaklady Piwowarskie w Zywcu S.A. (Zywiec) ................. POL 2,018 200,968 0.1
BEVERAGES - ALCOHOLIC
Carlsberg Brewery Malaysia Bhd. ........................... MAL 44,500 155,149 0.1
BEVERAGES - ALCOHOLIC
Nong Shim Co., Ltd. ....................................... KOR 2,000 87,191 --
FOOD
Oriental Weavers "C"-/- ................................... EGPT 3,400 70,948 --
TEXTILES & APPAREL
</TABLE>
The accompanying notes are an integral part of the financial statements.
F10
<PAGE>
AIM EMERGING MARKETS FUND
(FORMERLY GT GLOBAL EMERGING MARKETS FUND)
PORTFOLIO OF INVESTMENTS (cont'd)
April 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Consumer Non-Durables (Continued)
Erciyas Biracilik ve Malt Sanayii AS ...................... TRKY 136,000 $ 22,054 --
BEVERAGES - ALCOHOLIC
------------
16,448,179
------------
Technology (2.7%)
Asustek Computer Inc. - Reg. S GDR-/- {c} {\/} ............ TWN 128,164 2,643,383 1.3
COMPUTERS & PERIPHERALS
Formula Systems Ltd.-/- ................................... ISRL 16,415 634,454 0.3
SOFTWARE
Alcatel Teletas Telekomunikasyon Endustri ve Ticaret AS ... TRKY 3,198,100 505,806 0.3
TELECOM TECHNOLOGY
Delta Electronics, Inc. ................................... TWN 120,000 440,400 0.2
COMPUTERS & PERIPHERALS
Clal Electronics Industries Ltd. .......................... ISRL 2,459 351,172 0.2
SEMICONDUCTORS
Samsung Electronics (1/2 of Common Share) - GDR{\/} ....... KOR 11,300 316,400 0.2
SEMICONDUCTORS
United Microelectronics Corporation Ltd.-/- ............... TWN 158,000 297,119 0.1
SEMICONDUCTORS
Tadiran Ltd. .............................................. ISRL 7,000 272,639 0.1
TELECOM TECHNOLOGY
------------
5,461,373
------------
Health Care (2.1%)
Teva Pharmaceutical Industries Ltd. ....................... ISRL 29,600 1,255,350 0.6
PHARMACEUTICALS
Ranbaxy Laboratories Ltd. ................................. IND 75,000 1,253,779 0.6
MEDICAL TECHNOLOGY & SUPPLIES
Richter Gedeon Rt. - Reg S GDR{c} {\/} .................... HGRY 7,266 775,646 0.4
PHARMACEUTICALS
Egypt International Pharmaceutical Industries Co.
(EIPICO) ................................................. EGPT 9,000 642,763 0.3
PHARMACEUTICALS
EGIS Rt. .................................................. HGRY 5,920 308,743 0.2
PHARMACEUTICALS
Medison Co., Ltd. ......................................... KOR 10,200 83,559 --
MEDICAL TECHNOLOGY & SUPPLIES
------------
4,319,840
------------
Consumer Durables (1.8%)
Imperial Holdings Ltd. .................................... SAFR 58,161 794,282 0.4
AUTOMOBILES
Hon Hai Precision Industry-/- ............................. TWN 120,400 701,146 0.3
CONSUMER ELECTRONICS
Qingling Motors Co., Ltd.{*} .............................. CHNA 1,475,000 637,951 0.3
AUTOMOBILES
Tata Engineering and Locomotive Co., Ltd.: ................ IND -- -- 0.3
AUTOMOBILES
GDR{\/} ................................................. -- 84,000 611,100 --
Common .................................................. -- 980 6,859 --
</TABLE>
The accompanying notes are an integral part of the financial statements.
F11
<PAGE>
AIM EMERGING MARKETS FUND
(FORMERLY GT GLOBAL EMERGING MARKETS FUND)
PORTFOLIO OF INVESTMENTS (cont'd)
April 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Consumer Durables (Continued)
Mahindra & Mahindra Ltd. - GDR{\/} ........................ IND 42,600 $ 317,370 0.2
AUTOMOBILES
Ford Otomotiv Sanayi AS ................................... TRKY 377,000 271,712 0.1
AUTOMOBILES
Tofas Turk Otomobil Fabrikasi AS .......................... TRKY 4,909,000 255,524 0.1
AUTOMOBILES
Arcelik AS ................................................ TRKY 2,024,800 227,005 0.1
APPLIANCES & HOUSEHOLD DURABLES
BEC World Public Co., Ltd. ................................ THAI 6,100 32,238 --
CONSUMER ELECTRONICS
------------
3,855,187
------------
Capital Goods (1.8%)
NICE-Systems Ltd.-/- ...................................... ISRL 15,910 663,132 0.3
TELECOM EQUIPMENT
Taiwan Semiconductor Manufacturing Co.-/- ................. TWN 145,000 626,706 0.3
MACHINERY & ENGINEERING
Corporacion GEO, S.A. de C.V. "B"-/- ...................... MEX 63,800 441,403 0.2
CONSTRUCTION
ECI Telecommunications Ltd.{\/} ........................... ISRL 13,100 399,550 0.2
TELECOM EQUIPMENT
Arabian International Construction-/- ..................... EGPT 7,319 344,170 0.2
CONSTRUCTION
Netas Telekomunik-/- ...................................... TRKY 724,500 269,784 0.1
TELECOM EQUIPMENT
Elektrim Spolka Akcyjna S.A. .............................. POL 15,630 223,352 0.1
ELECTRICAL PLANT/EQUIPMENT
Samsung Display Devices Co. ............................... KOR 3,690 183,809 0.1
ELECTRICAL PLANT/EQUIPMENT
Daewoo Heavy Industries ................................... KOR 36,240 179,436 0.1
INDUSTRIAL COMPONENTS
Samsung Electro-Mechanics Co. ............................. KOR 6,200 130,037 0.1
ELECTRICAL PLANT/EQUIPMENT
Sindo Ricoh Co. ........................................... KOR 3,100 109,139 0.1
OFFICE EQUIPMENT
Delta Electronics (Thailand) Public Co., Ltd. - Foreign ... THAI 8,000 82,487 --
ELECTRICAL PLANT/EQUIPMENT
LG Electronics ............................................ KOR 5,225 62,230 --
ELECTRICAL PLANT/EQUIPMENT
Madeco S.A. - ADR{\/} ..................................... CHLE 2,400 38,400 --
INDUSTRIAL COMPONENTS
------------
3,753,635
------------ -----
TOTAL EQUITY INVESTMENTS (cost $185,429,876) ................ 191,125,942 94.0
------------ -----
</TABLE>
The accompanying notes are an integral part of the financial statements.
F12
<PAGE>
AIM EMERGING MARKETS FUND
(FORMERLY GT GLOBAL EMERGING MARKETS FUND)
PORTFOLIO OF INVESTMENTS (cont'd)
April 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL VALUE % OF NET
FIXED INCOME INVESTMENTS CURRENCY AMOUNT (NOTE 1) ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Government & Government Agency Obligations (1.2%)
Pakistan (0.1%)
Republic of Pakistan, 6% due 2/26/02 - Reg S{c} ......... USD 250,000 $ 235,625 0.1
Russia (1.1%)
Bank for Foreign Economic Affairs (Venesheconombank)
Interest Notes, 6.72% due 12/15/15+ .................... USD 3,000,000 2,163,750 1.1
------------
Total Government & Government Agency Obligations (cost
$2,264,540) ................................................ 2,399,375
------------ -----
TOTAL FIXED INCOME INVESTMENTS (cost $2,264,540) ............ 2,399,375 1.2
------------ -----
<CAPTION>
NO. OF VALUE % OF NET
RIGHTS COUNTRY RIGHTS (NOTE 1) ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Delta Electronics (Thailand) Public Co., Ltd. (UNAV NP
RTS), due 5/15/98 - Foreign .............................. THAI 4,000 40,207 --
ELECTRICAL PLANT/EQUIPMENT
Samsung Development Rights, due 5/13/98 ................... KOR 530 9,210 --
ELECTRICAL PLANT/EQUIPMENT
Samsung Electronics Rights, due 5/27/98 - GDR 144A{.}
{\/} ..................................................... KOR 899 8,943 --
SEMICONDUCTORS
------------ -----
TOTAL RIGHTS (cost $34,933) ................................. 58,360 --
------------ -----
<CAPTION>
NO. OF VALUE % OF NET
WARRANTS COUNTRY WARRANTS (NOTE 1) ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Belle Corp. Warrants, expire 2002 (cost $0) ............... PHIL 708,400 2,034 --
------------ -----
OIL
TOTAL INVESTMENTS (cost $187,729,349) * .................... 193,585,711 95.2
Other Assets and Liabilities ................................ 9,695,248 4.8
------------ -----
NET ASSETS .................................................. $203,280,959 100.0
------------ -----
------------ -----
</TABLE>
- --------------
-/- Non-income producing security.
(::) Valued in good faith at fair value using procedures approved by the
Board of Directors (See Note 1 of Notes to Financial Statements).
{\/} U.S. currency denominated.
{*} Security denominated in Hong Kong Dollars.
{.} Security exempt from registration under Rule 144A of the Securities
Act of 1933. These securities may be resold in transactions exempt
from registration, normally to qualified institutional buyers.
{c} Security issued under Regulation S. Rule 144A and additional
restrictions may apply in the resale of such securities.
{.:} Each Centenary Linked Unit consists of 1 registered deferred share
of De Beers Consolidated Mine + 1 Centenary Depositary Receipt.
+ The coupon rate shown on floating rate note represents the rate at
period end.
{=} Each unit represents one preferred share of Unibanco and one
preferred "B" share of Unibanco Holdings.
* For Federal income tax purposes, cost is $189,023,855 and
appreciation (depreciation) is as follows:
<TABLE>
<S> <C>
Unrealized appreciation: $ 21,939,088
Unrealized depreciation: (17,377,232)
-------------
Net unrealized appreciation: $ 4,561,856
-------------
-------------
</TABLE>
Abbreviations:
ADR--American Depositary Receipt
GDR--Global Depositary Receipt
The accompanying notes are an integral part of the financial statements.
F13
<PAGE>
AIM EMERGING MARKETS FUND
(FORMERLY GT GLOBAL EMERGING MARKETS FUND)
PORTFOLIO OF INVESTMENTS (cont'd)
April 30, 1998
- --------------------------------------------------------------------------------
The Fund's Portfolio of Investments at April 30, 1998, was concentrated in the
following countries:
<TABLE>
<CAPTION>
PERCENTAGE OF NET ASSETS {d}
-------------------------------------------
FIXED INCOME,
RIGHTS &
COUNTRY (COUNTRY CODE/CURRENCY CODE) EQUITY WARRANTS OTHER TOTAL
- -------------------------------------- ------ ------------- ---------- -----
<S> <C> <C> <C> <C>
Argentina (ARG/ARS) .................. 3.5 3.5
Brazil (BRZL/BRL) .................... 14.2 14.2
Chile (CHLE/CLP) ..................... 4.5 4.5
China (CHNA/RMB) ..................... 0.3 0.3
Egypt (EGPT/EGP) ..................... 7.0 7.0
Greece (GREC/GRD) .................... 3.3 3.3
Hong Kong (HK/HKD) ................... 0.3 0.3
Hungary (HGRY/HUF) ................... 2.6 2.6
India (IND/INR) ...................... 5.2 5.2
Ireland (IRE/IEP) .................... 0.8 0.8
Israel (ISRL/ILS) .................... 3.7 3.7
Kazakhstan (KAZ/KTS) ................. 0.3 0.3
Korea (KOR/KRW) ...................... 0.9 0.9
Malaysia (MAL/MYR) ................... 2.2 2.2
Mexico (MEX/MXN) ..................... 11.0 11.0
Morocco (MOR/MAD) .................... 0.1 0.1
Pakistan (PAK/PKR) ................... 1.1 0.1 1.2
Peru (PERU/PES) ...................... 2.3 2.3
Philippines (PHIL/PHP) ............... 2.0 2.0
Poland (POL/PLZ) ..................... 0.5 0.5
Romania (ROM/ROL) .................... 0.3 0.3
Russia (RUS/SUR) ..................... 3.8 1.1 4.9
South Africa (SAFR/ZAR) .............. 10.8 10.8
Sri Lanka (SLNKA/LKR) ................ 0.6 0.6
Taiwan (TWN/TWD) ..................... 4.2 4.2
Thailand (THAI/THB) .................. 0.4 0.4
Turkey (TRKY/TRL) .................... 6.9 6.9
United Kingdom (UK/GBP) .............. 1.2 1.2
United States (US/USD) ............... 4.8 4.8
------ --- --- -----
Total ............................... 94.0 1.2 4.8 100.0
------ --- --- -----
------ --- --- -----
</TABLE>
- --------------
{d} Percentages indicated are based on net assets of $203,280,959.
The accompanying notes are an integral part of the financial statements.
F14
<PAGE>
AIM EMERGING MARKETS FUND
(FORMERLY GT GLOBAL EMERGING MARKETS FUND)
STATEMENT OF ASSETS
AND LIABILITIES
April 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
Assets:
Investments in securities, at value (cost $187,729,349) (Note 1)...... $193,585,711
U.S. currency............................................. $ 738
Foreign currencies (cost $8,611,907)...................... 8,665,582 8,666,320
----------
Receivable for Fund shares sold....................................... 3,696,199
Receivable for securities sold........................................ 3,162,673
Dividends receivable.................................................. 805,918
Receivable from Chancellor LGT Asset Management, Inc. (Note 2)........ 459,815
Interest receivable................................................... 90,413
------------
Total assets........................................................ 210,467,049
------------
Liabilities:
Payable for loan outstanding (Note 1)................................. 3,353,000
Payable for securities purchased...................................... 1,872,212
Payable for Fund shares repurchased................................... 788,130
Payable for investment management and administration fees (Note 2).... 479,744
Payable for transfer agent fees (Note 2).............................. 243,519
Payable for printing and postage expenses............................. 131,413
Payable for service and distribution expenses (Note 2)................ 123,207
Payable for custodian fees............................................ 57,525
Payable for professional fees......................................... 33,130
Payable for registration and filing fees.............................. 22,556
Payable for fund accounting fees (Note 2)............................. 4,139
Payable for Directors' fees and expenses (Note 2)..................... 1,115
Other accrued expenses................................................ 76,400
------------
Total liabilities................................................... 7,186,090
------------
Net assets.............................................................. $203,280,959
------------
------------
Class A:
Net asset value and redemption price per share ($100,647,556 DIVIDED BY
8,035,606 shares outstanding).......................................... $ 12.53
------------
------------
Maximum offering price per share (100/95.25 of $12.53) *................ $ 13.15
------------
------------
Class B:+
Net asset value and offering price per share ($100,831,448 DIVIDED BY
8,244,890 shares outstanding).......................................... $ 12.23
------------
------------
Advisor Class:
Net asset value, offering price per share, and redemption price per
share ($1,801,955 DIVIDED BY 142,562 shares outstanding)............... $ 12.64
------------
------------
Net assets consist of:
Paid in capital (Note 4).............................................. $246,288,977
Undistributed net investment income................................... 73,763
Accumulated net realized loss on investments and foreign currency
transactions......................................................... (48,990,457)
Net unrealized appreciation on translation of assets and liabilities
in foreign currencies................................................ 52,314
Net unrealized appreciation of investments............................ 5,856,362
------------
Total -- representing net assets applicable to capital shares
outstanding............................................................ $203,280,959
------------
------------
<FN>
- --------------
* On sales of $50,000 or more, the offering price is reduced.
+ Redemption price per share is equal to the net asset value per share less
any applicable contingent deferred sales charge.
</TABLE>
The accompanying notes are an integral part of the financial statements.
F15
<PAGE>
AIM EMERGING MARKETS FUND
(FORMERLY GT GLOBAL EMERGING MARKETS FUND)
STATEMENT OF OPERATIONS
Six months ended April 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
Investment income: (Note 1)
Dividend income (net of foreign withholding tax of $111,452).............................. $ 2,595,058
Securities lending income................................................................. 85,994
Interest income........................................................................... 73,454
-----------
Total investment income................................................................. 2,754,506
-----------
Expenses:
Investment management and administration fees (Note 2).................................... 1,027,785
Service and distribution expenses: (Note 2)
Class A.................................................................... $ 249,648
Class B.................................................................... 540,658 790,306
-----------
Transfer agent fees (Note 2).............................................................. 778,300
Interest expense (Note 1)................................................................. 347,489
Custodian fees............................................................................ 121,000
Printing and postage expenses............................................................. 108,600
Professional fees......................................................................... 68,214
Registration and filing fees.............................................................. 47,060
Fund accounting fees (Note 2)............................................................. 27,756
Directors' fees and expenses (Note 2)..................................................... 6,878
Other expenses (Note 1)................................................................... 5,429
-----------
Total expenses before reductions........................................................ 3,328,817
-----------
Expenses reimbursed by Chancellor LGT Asset Management, Inc........................... (609,815)
Expense reductions (Note 5)........................................................... (38,259)
-----------
Total net expenses...................................................................... 2,680,743
-----------
Net investment income....................................................................... 73,763
-----------
Net realized and unrealized gain (loss) on investments and foreign currencies:
(Note 1)
Net realized loss on investments............................................. (35,414,012)
Net realized loss on foreign currency transactions........................... (2,083,497)
-----------
Net realized loss during the period..................................................... (37,497,509)
Net change in unrealized appreciation on translation of assets and
liabilities in foreign currencies........................................... 672,976
Net change in unrealized appreciation of investments......................... 40,080,042
-----------
Net unrealized appreciation during the period........................................... 40,753,018
-----------
Net realized and unrealized gain on investments and foreign currencies...................... 3,255,509
-----------
Net increase in net assets resulting from operations........................................ $ 3,329,272
-----------
-----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F16
<PAGE>
AIM EMERGING MARKETS FUND
(FORMERLY GT GLOBAL EMERGING MARKETS FUND)
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
APRIL 30, 1998 OCTOBER 31, 1997
---------------- ----------------
<S> <C> <C>
Decrease in net assets
Operations:
Net investment income (loss)........................................ $ 73,763 $ (1,050,632)
Net realized gain (loss) on investments and foreign currency
transactions....................................................... (37,497,509) 26,113,895
Net change in unrealized appreciation (depreciation) on translation
of assets and liabilities in foreign currencies.................... 672,976 (282,179)
Net change in unrealized appreciation (depreciation) of
investments........................................................ 40,080,042 (52,070,476)
---------------- ----------------
Net increase (decrease) in net assets resulting from operations... 3,329,272 (27,289,392)
---------------- ----------------
Class A:
Distributions to shareholders: (Note 1)
From net investment income.......................................... -- (37,319)
In excess of net investment income.................................. -- (104,807)
Advisor Class: (Note 1)
Distributions to shareholders:
From net investment income.......................................... -- (4,161)
In excess of net investment income.................................. -- (11,686)
---------------- ----------------
Total distributions............................................... -- (157,973)
---------------- ----------------
Capital share transactions: (Note 4)
Increase from capital shares sold and reinvested.................... 296,466,663 1,140,272,411
Decrease from capital shares repurchased............................ (339,416,025) (1,314,030,266)
---------------- ----------------
Net decrease from capital share transactions...................... (42,949,362) (173,757,855)
---------------- ----------------
Total decrease in net assets.......................................... (39,620,090) (201,205,220)
Net assets:
Beginning of period................................................. 242,901,049 444,106,269
---------------- ----------------
End of period....................................................... $ 203,280,959* $ 242,901,049*
---------------- ----------------
---------------- ----------------
* Includes undistributed net investment income of.................... $ 73,763 $ --
---------------- ----------------
---------------- ----------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F17
<PAGE>
AIM EMERGING MARKETS FUND
(FORMERLY GT GLOBAL EMERGING MARKETS FUND)
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Contained below is per share operating performance data for a share outstanding
throughout each period, total investment return, ratios and supplemental data.
This information has been derived from information provided in the financial
statements.
<TABLE>
<CAPTION>
CLASS A+
------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED OCTOBER 31,
APRIL 30, ---------------------------------------------------------
1998 (d) 1997 (d) 1996 (d) 1995 (d) 1994 1993
---------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period.... $ 12.20 $ 14.26 $ 13.85 $ 18.81 $ 14.42 $ 11.10
---------- --------- --------- --------- --------- ---------
Income from investment operations:
Net investment income (loss).......... 0.02* -- 0.11 0.13 (0.02) 0.02**
Net realized and unrealized gain
(loss) on investments................ 0.31 (2.05) 0.30 (4.32) 4.68 3.38
---------- --------- --------- --------- --------- ---------
Net increase (decrease) from
investment operations.............. 0.33 (2.05) 0.41 (4.19) 4.66 3.40
---------- --------- --------- --------- --------- ---------
Distributions to shareholders:
From net investment income............ -- -- -- -- (0.01) (0.08)
From net realized gain on
investments.......................... -- -- -- (0.77) (0.26) --
In excess of net investment income.... -- (0.01) -- -- -- --
---------- --------- --------- --------- --------- ---------
Total distributions................. -- (0.01) -- (0.77) (0.27) (0.08)
---------- --------- --------- --------- --------- ---------
Net asset value, end of period.......... $ 12.53 $ 12.20 $ 14.26 $ 13.85 $ 18.81 $ 14.42
---------- --------- --------- --------- --------- ---------
---------- --------- --------- --------- --------- ---------
Total investment return (c)............. 2.79%(b) (14.45)% 2.96% (23.04)% 32.58% 30.90%
Ratios and supplemental data:
Net assets, end of period (in 000's).... $100,648 $113,319 $224,964 $252,457 $417,322 $187,808
Ratio of net investment income (loss) to
average net assets:
With expense reductions and
reimbursement by Chancellor LGT Asset
Management, Inc. (Notes 1 & 5)....... 0.31%(a) (0.01)% 0.76% 0.89% (0.11)% 0.1%
Without expense reductions and
reimbursement by Chancellor LGT Asset
Management, Inc...................... (0.30)%(a) (0.09)% 0.64% 0.87% N/A (0.11)%
Ratio of operating expenses to average
net assets:
With expense reductions and
reimbursement by Chancellor LGT Asset
Management, Inc. (Notes 1 & 5)....... 1.96%(a) 2.10% 1.96% 2.12% 2.06% 2.4%
Without expense reductions and
reimbursement by Chancellor LGT Asset
Management, Inc...................... 2.57%(a) 2.18% 2.08% 2.14% N/A 2.61%
Ratio of interest expense to average net
assets (Note 1)++++.................... 0.33%(a) N/A N/A N/A N/A N/A
Portfolio turnover rate++++............. 117%(a) 150% 104% 114% 100% 99%
Average commission rate per share paid
on portfolio transactions++++.......... $ 0.0016 $ 0.0015 $ 0.0040 N/A N/A N/A
</TABLE>
- ----------------
(a) Annualized
(b) Not annualized
(c) Total investment return does not include sales charges.
(d) These selected per share data were calculated based upon average
shares outstanding during the period.
* Before reimbursement by Chancellor LGT Asset Management, Inc., the net
investment income per share would have been reduced by $0.03.
** Before reimbursement by Chancellor LGT Asset Management, Inc., the net
investment income per share would have been reduced by $0.02.
*** Before reimbursement by Chancellor LGT Asset Management, Inc., the net
investment income per share would have been reduced by $0.02.
+ All capital shares issued and outstanding as of March 31, 1993, were
reclassified as Class A shares.
++ Commencing April 1, 1993, the Fund began offering Class B shares.
+++ Commencing June 1, 1995, the Fund began offering Advisor Class shares.
++++ Portfolio turnover rate, average commission rate, and ratio of
interest expense to average net assets are calculated on the basis of
the Fund as a whole without distinguishing between the classes of
shares issued.
N/A Not Applicable.
The accompanying notes are an integral part of the financial statements.
F18
<PAGE>
AIM EMERGING MARKETS FUND
(FORMERLY GT GLOBAL EMERGING MARKETS FUND)
FINANCIAL HIGHLIGHTS (cont'd)
- --------------------------------------------------------------------------------
Contained below is per share operating performance data for a share outstanding
throughout each period, total investment return, ratios and supplemental data.
This information has been derived from information provided in the financial
statements.
<TABLE>
<CAPTION>
CLASS B++
---------------------------------------------------------------------------
APRIL 1,
SIX MONTHS 1993
ENDED YEAR ENDED OCTOBER 31, TO
APRIL 30, --------------------------------------------- OCTOBER 31,
1998 (d) 1997 (d) 1996 (d) 1995 (d) 1994 1993
---------- --------- --------- --------- --------- -----------
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period.... $ 11.94 $ 14.02 $ 13.68 $ 18.68 $ 14.39 $ 11.47
---------- --------- --------- --------- --------- -----------
Income from investment operations:
Net investment income (loss).......... (0.01) * (0.08) 0.04 0.06 (0.12) 0.00***
Net realized and unrealized gain
(loss) on investments................ 0.30 (2.00) 0.30 (4.29) 4.67 2.92
---------- --------- --------- --------- --------- -----------
Net increase (decrease) from
investment operations.............. 0.29 (2.08) 0.34 (4.23) 4.55 2.92
---------- --------- --------- --------- --------- -----------
Distributions to shareholders:
From net investment income............ -- -- -- -- -- --
From net realized gain on
investments.......................... -- -- -- (0.77) (0.26) --
In excess of net investment income.... -- -- -- -- -- --
---------- --------- --------- --------- --------- -----------
Total distributions................. -- -- -- (0.77) (0.26) --
---------- --------- --------- --------- --------- -----------
Net asset value, end of period.......... $ 12.23 $ 11.94 $ 14.02 $ 13.68 $ 18.68 $ 14.39
---------- --------- --------- --------- --------- -----------
---------- --------- --------- --------- --------- -----------
Total investment return (c)............. 2.51%(b) (14.91)% 2.49% (23.37)% 31.77% 25.5% (b)
Ratios and supplemental data:
Net assets, end of period (in 000's).... $100,831 $127,658 $216,004 $225,861 $291,289 $32,318
Ratio of net investment income (loss) to
average net assets:
With expense reductions and
reimbursement by Chancellor LGT Asset
Management, Inc. (Notes 1 & 5)....... (0.19)%(a) (0.51)% 0.26% 0.39% (0.61)% (0.4)% (a)
Without expense reductions and
reimbursement by Chancellor LGT Asset
Management, Inc...................... (0.80)%(a) (0.59)% 0.14% 0.37% N/A (0.61)% (a)
Ratio of operating expenses to average
net assets:
With expense reductions and
reimbursement by Chancellor LGT Asset
Management, Inc. (Notes 1 & 5)....... 2.46%(a) 2.60% 2.46% 2.62% 2.56% 2.9% (a)
Without expense reductions and
reimbursement by Chancellor LGT Asset
Management, Inc...................... 3.07%(a) 2.68% 2.58% 2.64% N/A 3.11% (a)
Ratio of interest expense to average net
assets (Note 1)++++.................... 0.33%(a) N/A N/A N/A N/A N/A
Portfolio turnover rate++++............. 117%(a) 150% 104% 114% 100% 99%
Average commission rate per share paid
on portfolio transactions++++.......... $ 0.0016 $ 0.0015 $ 0.0040 N/A N/A N/A
</TABLE>
- ----------------
(a) Annualized
(b) Not annualized
(c) Total investment return does not include sales charges.
(d) These selected per share data were calculated based upon average
shares outstanding during the period.
* Before reimbursement by Chancellor LGT Asset Management, Inc., the net
investment income per share would have been reduced by $0.03.
** Before reimbursement by Chancellor LGT Asset Management, Inc., the net
investment income per share would have been reduced by $0.02.
*** Before reimbursement by Chancellor LGT Asset Management, Inc., the net
investment income per share would have been reduced by $0.02.
+ All capital shares issued and outstanding as of March 31, 1993, were
reclassified as Class A shares.
++ Commencing April 1, 1993, the Fund began offering Class B shares.
+++ Commencing June 1, 1995, the Fund began offering Advisor Class shares.
++++ Portfolio turnover rate, average commission rate, and ratio of
interest expense to average net assets are calculated on the basis of
the Fund as a whole without distinguishing between the classes of
shares issued.
N/A Not Applicable.
The accompanying notes are an integral part of the financial statements.
F19
<PAGE>
AIM EMERGING MARKETS FUND
(FORMERLY GT GLOBAL EMERGING MARKETS FUND)
FINANCIAL HIGHLIGHTS (cont'd)
- --------------------------------------------------------------------------------
Contained below is per share operating performance data for a share outstanding
throughout each period, total investment return, ratios and supplemental data.
This information has been derived from information provided in the financial
statements.
<TABLE>
<CAPTION>
ADVISOR CLASS+++
-----------------------------------------------
SIX MONTHS YEAR ENDED OCTOBER JUNE 1, 1995
ENDED 31, TO
APRIL 30, ------------------- OCTOBER 31,
1998 (d) 1997 (d) 1996 (d) 1995
---------- -------- -------- ------------
<S> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period.... $ 12.27 $ 14.38 $ 13.88 $14.71
---------- -------- -------- ------------
Income from investment operations:
Net investment income (loss).......... 0.05* 0.05 0.18 0.08
Net realized and unrealized gain
(loss) on investments................ 0.32 (2.05) 0.32 (0.91)
---------- -------- -------- ------------
Net increase (decrease) from
investment operations.............. 0.37 (2.00) 0.50 (0.83)
---------- -------- -------- ------------
Distributions to shareholders:
From net investment income............ -- (0.03) -- --
From net realized gain on
investments.......................... -- -- -- --
In excess of net investment income.... -- (0.08) -- --
---------- -------- -------- ------------
Total distributions................. -- (0.11) -- --
---------- -------- -------- ------------
Net asset value, end of period.......... $ 12.64 $ 12.27 $ 14.38 $13.88
---------- -------- -------- ------------
---------- -------- -------- ------------
Total investment return (c)............. 3.10%(b) (14.05)% 3.60% (5.71)% (b)
Ratios and supplemental data:
Net assets, end of period (in 000's).... $ 1,802 $ 1,924 $ 3,139 $1,675
Ratio of net investment income (loss) to
average net assets:
With expense reductions and
reimbursement by Chancellor LGT Asset
Management, Inc. (Notes 1 & 5)....... 0.81%(a) 0.49% 1.26% 1.39% (a)
Without expense reductions and
reimbursement by Chancellor LGT Asset
Management, Inc...................... 0.20%(a) 0.41% 1.14% 1.37% (a)
Ratio of operating expenses to average
net assets:
With expense reductions and
reimbursement by Chancellor LGT Asset
Management, Inc. (Notes 1 & 5)....... 1.46%(a) 1.60% 1.46% 1.62% (a)
Without expense reductions and
reimbursement by Chancellor LGT Asset
Management, Inc...................... 2.07%(a) 1.68% 1.58% 1.64% (a)
Ratio of interest expense to average net
assets (Note 1)++++.................... 0.33%(a) N/A N/A N/A
Portfolio turnover rate++++............. 117%(a) 150% 104% 114%
Average commission rate per share paid
on portfolio transactions++++.......... $0.0016 $0.0015 $0.0040 N/A
</TABLE>
- ----------------
(a) Annualized
(b) Not annualized
(c) Total investment return does not include sales charges.
(d) These selected per share data were calculated based upon average
shares outstanding during the period.
* Before reimbursement by Chancellor LGT Asset Management, Inc., the net
investment income per share would have been reduced by $0.03.
** Before reimbursement by Chancellor LGT Asset Management, Inc., the net
investment income per share would have been reduced by $0.02.
*** Before reimbursement by Chancellor LGT Asset Management, Inc., the net
investment income per share would have been reduced by $0.02.
+ All capital shares issued and outstanding as of March 31, 1993, were
reclassified as Class A shares.
++ Commencing April 1, 1993, the Fund began offering Class B shares.
+++ Commencing June 1, 1995, the Fund began offering Advisor Class shares.
++++ Portfolio turnover rate, average commission rate, and ratio of
interest expense to average net assets are calculated on the basis of
the Fund as a whole without distinguishing between the classes of
shares issued.
N/A Not Applicable.
The accompanying notes are an integral part of the financial statements.
F20
<PAGE>
AIM EMERGING MARKETS FUND
(FORMERLY GT GLOBAL EMERGING MARKETS FUND)
NOTES TO
FINANCIAL STATEMENTS
April 30, 1998
- --------------------------------------------------------------------------------
The following Notes to Financial Statements are for the period ending April 30,
1998, and unless otherwise indicated reflect facts as of that date. Please see
"Note 6 -- Subsequent Events" for a discussion of certain changes which took
place after April 30, 1998.
1. SIGNIFICANT ACCOUNTING POLICIES (SEE ALSO NOTE 6)
GT Global Emerging Markets Fund ("Fund") is a separate series of G.T. Investment
Funds, Inc. ("Company"). Effective June 1, 1998, the Company was renamed AIM
Investment Funds, Inc. and the Fund was renamed AIM Emerging Markets Fund. The
Company is organized as a Maryland corporation and is registered under the
Investment Company Act of 1940, as amended ("1940 Act"), as a diversified,
open-end management investment company. The Company has thirteen series of
shares in operation, each series corresponding to a distinct portfolio of
investments.
The Fund offers Class A, Class B, and Advisor Class shares, each of which has
equal rights as to assets and voting privileges. Class A and Class B each has
exclusive voting rights with respect to its distribution plan. Investment
income, realized and unrealized capital gains and losses, and the common
expenses of the Fund are allocated on a pro rata basis to each class based on
the relative net assets of each class to the total net assets of the Fund. Each
class of shares differs in its respective service and distribution expenses, and
may differ in its transfer agent, registration, and certain other class-specific
fees and expenses.
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of income and expenses during the reporting period. Actual
results could differ from those estimates. The following is a summary of
significant accounting policies in conformity with generally accepted accounting
principles consistently followed by the Fund in the preparation of the financial
statements.
(A) PORTFOLIO VALUATION
The Fund calculates the net asset value of and completes orders to purchase,
exchange or repurchase Fund shares on each business day, with the exception of
those days on which the New York Stock Exchange is closed.
Equity securities are valued at the last sale price on the exchange on which
such securities are traded, or in the principal over-the-counter market in which
such securities are traded, as of the close of business on the day the
securities are being valued , or, lacking any sales, at the last available bid
price. In cases where securities are traded on more than one exchange, the
securities are valued on the exchange determined by Chancellor LGT Asset
Management, Inc. (the "Manager") to be the primary market.
Fixed income investments are valued at the mean of representative quoted bid and
ask prices for such investments or, if such prices are not available, at prices
for investments of comparative maturity, quality and type; however, when GT
Capital deems it appropriate, prices obtained for the day of valuation from a
bond pricing service will be used. Short-term investments with a maturity of 60
days or less are valued at amortized cost adjusted for foreign exchange
translation and market fluctuation, if any.
Investments for which market quotations are not readily available (including
restricted securities which are subject to limitations on their sale) are valued
at fair value as determined in good faith by or under the direction of the
Company's Board of Directors.
Portfolio securities which are primarily traded on foreign exchanges are
generally valued at the preceding closing values of such securities on their
respective exchanges, and those values are then translated into U.S. dollars at
the current exchange rates, except that when an occurrence subsequent to the
time a value was so established is likely to have materially changed such value,
then the fair value of those securities will be determined by consideration of
other factors by or under the direction of the Company's Board of Directors.
(B) FOREIGN CURRENCY TRANSLATION
The accounting records are maintained in U.S. dollars. The market values of
foreign securities, currency holdings, and other assets and liabilities are
recorded in the books and records of the Fund after translation to U.S. dollars
based on the exchange rates on that day. The cost of each security is determined
using historical exchange rates. Income and withholding taxes are translated at
prevailing exchange rates when earned or incurred.
The Fund does not isolate that portion of the results of operations resulting
from changes in foreign exchange rates on investments from 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.
Reported net realized foreign exchange gains or losses arise from sales and
maturities of short-term securities, forward foreign currency contracts, sales
of foreign currencies, currency gains or losses realized between the trade and
settlement dates on securities transactions, and the difference between the
amounts of dividends, interest, and foreign withholding taxes recorded on the
Fund's books and the U.S. dollar equivalent of the amounts actually received or
paid. Net unrealized foreign exchange gains or losses arise from changes in the
value of assets and liabilities other than investments in securities at year
end, resulting from changes in exchange rates.
(C) REPURCHASE AGREEMENTS
With respect to repurchase agreements entered into by the Fund, it is the Fund's
policy to always receive, as collateral, U.S. government securities or other
high quality debt securities of which the value,
F21
<PAGE>
AIM EMERGING MARKETS FUND
(FORMERLY GT GLOBAL EMERGING MARKETS FUND)
including accrued interest, is at least equal to the amount to be repaid to the
Fund under each agreement at its maturity.
(D) FORWARD FOREIGN CURRENCY CONTRACTS
A forward foreign currency contract ("Forward Contract") is an agreement between
two parties to buy and sell a currency at a set price on a future date. The
market value of the Forward Contract fluctuates with changes in currency
exchange rates. The Forward Contract is marked-to-market daily and the change in
market value is recorded by the Fund as an unrealized gain or loss. When the
Forward Contract is closed, the Fund records a realized gain or loss equal to
the difference between the value at the time it was opened and the value at the
time it was closed. The Fund could be exposed to risk if a counterparty is
unable to meet the terms of the contract or if the value of the currency changes
unfavorably. The Fund may enter into Forwards Contracts in connection with
planned purchases or sales of securities, or to hedge against adverse
fluctuations in exchange rates between currencies.
(E) OPTION ACCOUNTING PRINCIPLES
When the Fund writes a call or put option, an amount equal to the premium
received is included in the Fund's "Statement of Assets and Liabilities" 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. The current
market value of an option listed on an exchange is valued at its last bid price,
or, in the case of an over-the-counter option, is valued at the average of the
last bid prices obtained from brokers. If an option expires on its stipulated
expiration date or if the Fund enters into a closing purchase transaction, a
gain or loss is realized without regard to any unrealized gain or loss on the
underlying security, and the liability related to such option is extinguished.
If a written call option is exercised, a gain or loss is realized from the sale
of the underlying security and the proceeds of the sale are increased by the
premium originally received. If a written put option is exercised, the cost of
the underlying security purchased would be decreased by the premium originally
received. The Fund can write options only on a covered basis, which, for a call,
requires that the Fund hold the underlying securities and, for a put, requires
the Fund to set aside cash, U.S. government securities, or other liquid
securities in an amount not less than the exercise price or otherwise provide
adequate cover at all times while the put option is outstanding. The Fund may
use options to manage its exposure to the stock market and to fluctuations in
currency values or interest rates.
The premium paid by the Fund for the purchase of a call or put option is
included in the Fund's "Statement of Assets and Liabilities" as an investment
and subsequently "marked-to-market" to reflect the current market value of the
option. If an option which the Fund has purchased expires on the stipulated
expiration date, the Fund would realize a loss in the amount of the cost of the
option. If the Fund enters into a closing sale transaction, the Fund would
realize a gain or loss, depending on whether proceeds from the closing sale
transaction are greater or less than the cost of the option. If the Fund
exercises a call option, the cost of the securities acquired by exercising the
call is increased by the premium paid to buy the call. If the Fund exercises a
put option, it realizes a gain or loss from the sale of the underlying security,
and the proceeds from such sale are decreased by the premium originally paid.
The risk associated with purchasing options is limited to the premium originally
paid. The risk in writing a call option is that the Fund may forego the
opportunity of profit if the market value of the underlying security or index
increases and the option is exercised. The risk in writing a put option is that
the fund may incur a loss if the market value of the underlying security or
index decreases and the option is exercised. In addition, there is the risk the
Fund may not be able to enter into a closing transaction because of an illiquid
secondary market.
(F) FUTURES CONTRACTS
A futures contract is an agreement between two parties to buy and sell a
security at a set price on a future date. Upon entering into such a contract the
Fund is required to pledge to the broker an amount of cash or securities equal
to the minimum "initial margin" requirements of the exchange on which the
contract is traded. Pursuant to the contract, the Fund agrees to receive from or
pay to the broker an amount of cash equal to the daily fluctuation in value of
the contract. Such receipts or payments are known as "variation margin" and are
recorded by the Fund as unrealized gains or losses. When the contract is closed,
the Fund records a realized gain or loss equal to the difference between the
value of the contract at the time it was opened and the value at the time it was
closed. The potential risk to the Fund is that the change in value of the
underlying securities may not correlate to the change in value of the contracts.
The Fund may use futures contracts to manage its exposure to the stock market
and to fluctuations in currency values or interest rates.
(G) SECURITY TRANSACTIONS AND RELATED INVESTMENT INCOME
Security transactions are accounted for on the trade date (date the order to buy
or sell is executed). The cost of securities sold is determined on a first-in,
first-out basis, unless otherwise specified. Dividends are recorded on the
ex-dividend date. Interest income is recorded on the accrual basis. Where a high
level of uncertainty exists as to its collection, income is recorded net of all
withholding tax with any rebate recorded when received. The Fund may trade
securities on other than normal settlement terms. This may increase the risk if
the other party to the transaction fails to deliver and causes the Fund to
subsequently invest at less advantageous prices.
(H) PORTFOLIO SECURITIES LOANED
At April 30, 1998, stocks with an aggregate value of approximately $16,035,409
were on loan to brokers. The loans were secured by cash collateral of
$16,583,830 received by the Fund. For international securities, cash collateral
is received by the Fund against loaned securities in an amount at least equal to
105% of the market value of the loaned securities at the inception of each loan.
This collateral must be maintained at not less than 103% of the market value of
the loaned securities during the period of the loan. For domestic
F22
<PAGE>
AIM EMERGING MARKETS FUND
(FORMERLY GT GLOBAL EMERGING MARKETS FUND)
securities, cash collateral is received by the Fund against loaned securities in
the amount at least equal to 102% of the market value of the loaned securities
at the inception of each loan. This collateral must be maintained at not less
than 100% of the market value of the loaned securities during the period of each
loan. The cash collateral is invested in a securities lending trust which
consists of a portfolio of high quality short duration securities whose average
effective duration is restricted to 120 days or less. For the six months ended
April 30, 1998, the Fund received securities lending fees of $85,994.
(I) TAXES
It is the policy of the Fund to meet the requirements for qualification as a
"regulated investment company" under the Internal Revenue Code of 1986, as
amended ("Code"). It is also the intention of the Fund to make distributions
sufficient to avoid imposition of any excise tax under Section 4982 of the Code.
Therefore, no provision has been made for Federal taxes on income, capital
gains, or unrealized appreciation of securities held, and excise tax on income
and capital gains. The Fund currently has a capital loss carryforward of
$10,198,442, of which $5,776,568 expires in 2003 and $4,421,874 expires in 2004.
(J) DISTRIBUTIONS TO SHAREHOLDERS
Distributions to shareholders are recorded by the Fund on the ex-date. Income
and capital gain distributions are determined in accordance with Federal income
tax regulations which may differ from generally accepted accounting principles.
These differences are primarily due to differing treatments of income and gains
on various investment securities held by the Fund and timing differences.
(K) FOREIGN SECURITIES
There are certain additional considerations and risks associated with investing
in foreign securities and currency transactions that are not inherent in
investments of domestic origin. The Fund's investments in emerging market
countries may involve greater risks than investments in more developed markets
and the prices of such investments may be volatile. These risks of investing in
foreign and emerging markets may include foreign currency exchange rate
fluctuations, perceived credit risk, adverse political and economic developments
and possible adverse foreign government intervention.
(L) INDEXED SECURITIES
The Fund may invest in indexed securities whose value is linked either directly
or indirectly to changes in foreign currencies, interest rates, equities,
indices, or other reference instruments. Indexed securities may be more volatile
than the reference instrument itself, but any loss is limited to the amount of
the original investment.
(M) RESTRICTED SECURITIES
The Fund is permitted to invest in privately placed restricted securities. These
securities may be resold in transactions exempt from registration or to the
public if the securities are registered. Disposal of these securities may
involve time-consuming negotiations and expense, and prompt sale at an
acceptable price may be difficult.
(N) LINE OF CREDIT
The Fund, along with certain other funds ("GT Funds") advised and/or
administered by the Manager, has a line of credit with each of BankBoston and
State Street Bank & Trust Company. The arrangements with the banks allow the
Fund and the GT Funds to borrow an aggregate maximum amount of $250,000,000. The
Fund is limited to borrowing up to 33 1/3% of the value of its total assets. On
April 30, 1998, the Fund had $3,353,000 in loans outstanding.
For the six months ended April 30, 1998, the weighted average outstanding daily
balance of bank loans (based on the number of days the loans were outstanding)
for the Fund was $10,572,144, with a weighted average interest rate of 6.29%.
Interest expense for the Fund for the six months ended April 30, 1998 was
$334,748. Other interest expense charges amounted to $12,741.
2. RELATED PARTIES (SEE ALSO NOTE 6)
For the period ended April 30, 1998, Chancellor LGT Asset Management, Inc. was
the Fund's investment manager and administrator. The Fund pays investment
management and administration fees to the Manager at the annualized rate of
0.975% on the first $500 million of average daily net assets of the Fund; 0.95%
on the next $500 million; 0.925% on the next $500 million and 0.90% on amounts
thereafter. These fees are computed daily and paid monthly.
For the period ended April 30, 1998, GT Global, Inc. ("GT Global"), an affiliate
of the Manager, serves as the Fund's distributor. The Fund offers Class A, Class
B, and Advisor Class shares for purchase.
Class A shares are subject to initial sales charges imposed at the time of
purchase, in accordance with the schedule included in the Fund's current
prospectus. GT Global collects the sales charges imposed on sales of Class A
shares, and reallows a portion of such charges to dealers through which the
sales are made. For the six months ended April 30, 1998, GT Global retained
$8,591 of such sales charges. Purchases of Class A shares exceeding $500,000 may
be subject to a contingent deferred sales charge ("CDSC") upon redemption, in
accordance with the Fund's current prospectus. GT Global collected CDSCs in the
amount of $1,590 for the six months ended April 30, 1998. GT Global also makes
ongoing shareholder servicing and trail commission payments to dealers whose
clients hold Class A shares.
Class B shares are not subject to initial sales charges. When Class B shares are
sold, GT Global, from its own resources, pays commissions to dealers through
which the sales are made. Certain redemptions of Class B shares made within six
years of purchase are subject to CDSCs, in accordance with the Fund's current
prospectus. For the six months ended April 30, 1998, GT Global collected CDSCs
in the amount of $565,010. In addition, GT Global makes ongoing shareholder
servicing and trail commission payments to dealers whose clients hold Class B
shares.
Pursuant to the then effective separate distribution plans adopted under 1940
Act Rule 12b-1 by the Company's Board of Directors with respect to the Fund's
Class A shares ("Class A Plan") and Class B
F23
<PAGE>
AIM EMERGING MARKETS FUND
(FORMERLY GT GLOBAL EMERGING MARKETS FUND)
shares ("Class B Plan"), the Fund reimbursed GT Global for a portion of its
shareholder servicing and distribution expenses. Under that Class A Plan, the
Fund was permitted to pay GT Global a service fee at the annualized rate of up
to 0.25% of the average daily net assets of the Fund's Class A shares for GT
Global's expenditures incurred in servicing and maintaining shareholder
accounts, and was permitted to pay GT Global a distribution fee at the
annualized rate of up to 0.50% of the average daily net assets of the Fund's
Class A shares, less any amounts paid by the Fund as the aforementioned service
fee, for GT Global's expenditures incurred in providing services as distributor.
All expenses for which GT Global was reimbursed under the Class A Plan would
have been incurred within one year of such reimbursement.
For the period ended April 30, 1998, pursuant to that Class B Plan, the Fund was
permitted to pay GT Global a service fee at the annualized rate of up to 0.25%
of the average daily net assets of the Fund's Class B shares for GT Global's
expenditures incurred in servicing and maintaining shareholder accounts, and was
permitted to pay GT Global a distribution fee at the annualized rate of up to
0.75% of the average daily net assets of the Fund's Class B shares for GT
Global's expenditures incurred in providing services as distributor. Expenses
incurred under the Class B Plan in excess of 1.00% annually were permitted to be
carried forward for reimbursement in subsequent years as long as that Plan
continued in effect.
The Manager and GT Global voluntarily undertook to limit the Fund's expenses
(exclusive of brokerage commissions, taxes, interest, and extraordinary
expenses) to the maximum annual rate of 2.00%, 2.50%, and 1.50% of the average
daily net assets of the Fund's Class A, Class B and Advisor Class shares,
respectively. If necessary, this limitation will be effected by waivers by the
Manager of investment management and administration fees, waivers by GT Global
of payments under the Class A Plan and/or Class B Plan and/or reimbursements by
the Manager or GT Global of portions of the Fund's other operating expenses.
GT Global Investor Services, Inc. ("GT Services"), an affiliate of the Manager
and GT Global, is the transfer agent of the Fund. For performing shareholder
servicing, reporting, and general transfer agent services, GT Services receives
an annual maintenance fee of $17.50 per account, a new account fee of $4.00 per
account, a per transaction fee of $1.75 for all transactions other than
exchanges and per exchange fee of $2.25. GT Services also is reimbursed by the
Fund for its out-of-pocket expenses for such items as postage, forms, telephone
charges, stationery and office supplies.
The Manager is the pricing and accounting agent for the Fund. The monthly fee
for these services to the Manager is a percentage, not to exceed 0.03% annually,
of the Fund's average daily net assets. The annual fee rate is derived by
applying 0.03% to the first $5 billion of assets of all registered mutual funds
advised by the Manager and 0.02% to the assets in excess of $5 billion and
allocating the result according to the Fund's average daily net assets.
The Company pays each of its Directors who is not an employee, officer or
director of the Manager, GT Global or GT Services $5,000 per year plus $300 for
each meeting of the board or any committee thereof attended by the Director.
3. PURCHASES AND SALES OF SECURITIES
For the six months ended April 30, 1998, purchases and sales of investment
securities by the Fund, other than short-term investments, aggregated
$123,495,635 and $178,354,580 respectively. There were no purchases or sales of
U.S. government obligations by the Fund for the six months ended April 30, 1998.
4. CAPITAL SHARES
At April 30, 1998, there were 6,000,000,000 shares of the Company's common stock
authorized, at $0.0001 par value. Of this amount, 200,000,000 were classified as
shares of the Fund; 400,000,000 were classified as shares of GT Global
Government Income Fund; 200,000,000 were classified as shares of GT Global
Developing Markets Fund; 200,000,000 were classified as shares of GT Global
Health Care Fund; 200,000,000 were classified as shares of GT Global Strategic
Income Fund; 200,000,000 were classified as shares of GT Global Currency Fund
(inactive); 200,000,000 were classified as shares of GT Global Growth & Income
Fund; 200,000,000 were classified as shares of GT Global Small Companies Fund
(inactive); 200,000,000 were classified as shares of GT Global Latin America
Growth Fund; 400,000,000 were classified as shares of GT Global
Telecommunications Fund; 200,000,000 were classified as shares of GT Global High
Income Fund; 200,000,000 were classified as shares of GT Global Financial
Services Fund; 200,000,000 were classified as shares of GT Global Natural
Resources Fund; 200,000,000 were classified as shares of GT Global
Infrastructure Fund; and 200,000,000 were classified as shares of GT Global
Consumer Products and Services Fund. The shares of each of the foregoing series
of the Company were divided equally into two classes, designated Class A and
Class B common stock. With respect to the issuance of Advisor Class shares,
100,000,000 shares were classified as shares of each of the fifteen series of
the Company and designated as Advisor Class common stock. 1,100,000,000 shares
remain unclassified. Transactions in capital shares of the Fund were as follows:
F24
<PAGE>
AIM EMERGING MARKETS FUND
(FORMERLY GT GLOBAL EMERGING MARKETS FUND)
CAPITAL SHARE TRANSACTIONS
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
APRIL 30, 1998 OCTOBER 31, 1997
-------------------------- --------------------------
CLASS A SHARES AMOUNT SHARES AMOUNT
- ---------------------------------------- ----------- ------------- ----------- -------------
<S> <C> <C> <C> <C>
Shares sold............................. 17,134,342 $ 200,989,101 57,294,454 $ 859,844,827
Shares issued in connection with
reinvestment of distributions......... -- -- 8,654 123,333
----------- ------------- ----------- -------------
17,134,342 200,989,101 57,303,108 859,968,160
Shares repurchased...................... (18,390,591) (216,637,505) (63,783,507) (962,241,730)
----------- ------------- ----------- -------------
Net decrease............................ (1,256,249) $ (15,648,404) (6,480,399) $(102,273,570)
----------- ------------- ----------- -------------
----------- ------------- ----------- -------------
</TABLE>
<TABLE>
<CAPTION>
CLASS B
- ----------------------------------------
<S> <C> <C> <C> <C>
Shares sold............................. 4,798,521 $ 55,553,088 16,394,355 $ 245,887,976
Shares repurchased...................... (7,248,568) (83,530,468) (21,109,926) (316,251,415)
----------- ------------- ----------- -------------
Net decrease............................ (2,450,047) $ (27,977,380) (4,715,571) $ (70,363,439)
----------- ------------- ----------- -------------
----------- ------------- ----------- -------------
</TABLE>
<TABLE>
<CAPTION>
ADVISOR CLASS
- ----------------------------------------
<S> <C> <C> <C> <C>
Shares sold............................. 3,375,138 $ 39,924,474 2,213,447 $ 34,400,471
Shares issued in connection with
reinvestment of distributions......... -- -- 1,106 15,804
----------- ------------- ----------- -------------
3,375,138 39,924,474 2,214,553 34,416,275
Shares repurchased...................... (3,389,407) (39,248,052) (2,275,943) (35,537,121)
----------- ------------- ----------- -------------
Net increase (decrease)................. (14,269) $ 676,422 (61,390) $ (1,120,846)
----------- ------------- ----------- -------------
----------- ------------- ----------- -------------
</TABLE>
5. EXPENSE REDUCTIONS
The Manager has directed certain portfolio trades to brokers who paid a portion
of the Fund's expenses. For the six months ended April 30, 1998, the Fund's
expenses were reduced by $38,259 under these arrangements.
6. SUBSEQUENT EVENTS
On May 29, 1998, Liechtenstein Global Trust ("LGT"), the former indirect parent
organization of Chancellor LGT Asset Management, Inc. ("Chancellor LGT"),
consummated a purchase agreement with AMVESCAP PLC pursuant to which AMVESCAP
PLC acquired LGT's Asset Management Division, which included Chancellor LGT and
certain other affiliates. As a result of this transaction, Chancellor LGT was
renamed INVESCO (NY), Inc. and is now an indirect wholly-owned subsidiary of
AMVESCAP PLC. In connection with this transaction, A I M Advisors, Inc. ("AIM"),
an indirect wholly-owned subsidiary of AMVESCAP PLC, became the investment
adviser and administrator of the Fund and INVESCO (NY), Inc. became the
sub-adviser and sub-administrator of the Fund. In addition, A I M Distributors,
Inc. replaced GT Global, Inc. as the Fund's principal underwriter, and the Fund
became subject to compensation-type Rule 12b-1 plans of distribution, which
replaced the Fund's former reimbursement-type Rule 12b-1 plans of distribution.
All of the changes became effective as of the close of business on May 29, 1998.
F25
<PAGE>
AIM EMERGING MARKETS FUND
AIM/GT FUNDS
AIM Distributors offers a broad range of funds to complement many investors'
portfolios. For more information and a prospectus on any of the funds listed
below, please contact your Financial Adviser or call 1-800-824-1580. The
prospectus contains more complete information, including charges, expenses and
risks. Investors should read the prospectus carefully before investing.
EQUITY FUNDS
AIM NEW DIMENSION FUND
(FORMERLY GT GLOBAL NEW DIMENSION FUND)
Captures global growth opportunities by investing directly in the six global
theme funds
AIM WORLDWIDE GROWTH FUND
(FORMERLY GT GLOBAL WORLDWIDE GROWTH FUND)
Invests around the world, including the U.S.
AIM INTERNATIONAL GROWTH FUND
(FORMERLY GT GLOBAL INTERNATIONAL GROWTH FUND)
Offers portfolio diversity by investing outside the U.S.
AIM EMERGING MARKETS FUND
(FORMERLY GT GLOBAL EMERGING MARKETS FUND)
Provides access to the growth potential of developing economies
AIM DEVELOPING MARKETS FUND
(FORMERLY GT GLOBAL DEVELOPING MARKETS FUND)
Invests in debt and equity securities of developing market issuers
AIM NEW PACIFIC GROWTH FUND
(FORMERLY GT GLOBAL NEW PACIFIC GROWTH FUND)
Offers access to emerging and established markets of the Pacific Rim, excluding
Japan
AIM JAPAN GROWTH FUND
(FORMERLY GT GLOBAL JAPAN GROWTH FUND)
Provides U.S. investors with access to the Japanese market
AIM EUROPE GROWTH FUND
(FORMERLY GT GLOBAL EUROPE GROWTH FUND)
Focuses on investment opportunities in Europe
AIM LATIN AMERICAN GROWTH FUND
(FORMERLY GT GLOBAL LATIN AMERICA GROWTH FUND)
Invests in the emerging markets of Latin America
AIM SMALL CAP EQUITY FUND
(FORMERLY GT GLOBAL AMERICA SMALL CAP GROWTH FUND)
Invests in equity securities of small U.S. companies
AIM MID CAP GROWTH FUND
(FORMERLY GT GLOBAL MID CAP GROWTH FUND)
Concentrates on medium-sized companies in the U.S.
AIM AMERICA VALUE FUND
(FORMERLY GT GLOBAL AMERICA VALUE FUND)
Looks for equity securities of large cap U.S. companies believed to be
undervalued
GROWTH AND INCOME FUND
AIM GLOBAL GROWTH & INCOME FUND
(FORMERLY GT GLOBAL GROWTH & INCOME FUND)
Invests in blue-chip stocks and government securities from around the world
INCOME FUNDS
AIM GLOBAL GOVERNMENT INCOME FUND
(FORMERLY GT GLOBAL GOVERNMENT INCOME FUND)
Seeks to earn monthly income from global government securities
AIM STRATEGIC INCOME FUND
(FORMERLY GT GLOBAL STRATEGIC INCOME FUND)
Allocates its assets among debt securities from the U.S., developed foreign
countries and emerging markets
AIM GLOBAL HIGH INCOME FUND
(FORMERLY GT GLOBAL HIGH INCOME FUND)
Invests in debt securities of emerging markets
AIM FLOATING RATE FUND
(FORMERLY GT GLOBAL FLOATING RATE FUND)
Invests primarily in senior secured floating rate loans with the potential to
achieve a high level of current income
AIM DOLLAR FUND
(FORMERLY GT GLOBAL DOLLAR FUND)
Invests in high quality, U.S. dollar-denominated money market securities
worldwide for stability and preservation of capital
THEME FUNDS
AIM GLOBAL CONSUMER PRODUCTS AND SERVICES FUND
(FORMERLY GT GLOBAL CONSUMER PRODUCTS AND SERVICES FUND)
Focuses on worldwide opportunities resulting from the demand for consumer
products and services
AIM GLOBAL FINANCIAL SERVICES FUND
(FORMERLY GT GLOBAL FINANCIAL SERVICES FUND)
Focuses on the worldwide opportunities stemming from the demand for financial
services and products
AIM GLOBAL HEALTH CARE FUND
(FORMERLY GT GLOBAL HEALTH CARE FUND)
Invests in growing health care industries worldwide
AIM GLOBAL INFRASTRUCTURE FUND
(FORMERLY GT GLOBAL INFRASTRUCTURE FUND)
Invests in companies that build, improve or maintain a country's infrastructure
AIM GLOBAL RESOURCES FUND
(FORMERLY GT GLOBAL NATURAL RESOURCES FUND)
Concentrates on companies that own, explore or develop natural resources
AIM GLOBAL TELECOMMUNICATIONS FUND
(FORMERLY GT GLOBAL TELECOMMUNICATIONS FUND)
Invests in companies worldwide that develop, manufacture or sell
telecommunications services or equipment
This report must be accompanied or preceded by a current prospectus.
<PAGE>
[LOGO]
A I M Distributors, Inc.
Fifty California Street
27th Floor
San Francisco, California
94111-4624
DATED MATERIAL
PLEASE EXPEDITE
AIM Emerging Markets Fund
EMM-SAR-1
