<PAGE> 1
SEMIANNUAL REPORT/APRIL 30, 1999
AIM
GLOBAL GROWTH & INCOME FUND
[COVER IMAGE]
[AIM LOGO APPEARS HERE]
<PAGE> 2
[COVER IMAGE]
-------------------------------------
HEROES ON WHEELS BY JANE WOOSTER SCOTT
JANE WOOSTER SCOTT'S IMAGINATIVE PAINTING OF A CYCLING
CHAMPIONSHIP CAPTURES THE SPIRIT OF AN INTERNATIONAL
CELEBRATION. LIKE SPORTS, INVESTING BRINGS THE WORLD TOGETHER,
UNITING AND ENRICHING PEOPLE OVER THE GLOBE.
-------------------------------------
AIM Global Growth & Income Fund seeks to provide long-term growth of capital
together with current income. The Fund invests in stocks of blue-chip companies
and high-quality government bonds from around the world.
ABOUT FUND PERFORMANCE AND PORTFOLIO DATA THROUGHOUT THIS REPORT:
o AIM Global Growth & Income Fund (formerly GT Global Growth & Income Fund)
performance figures are historical and reflect reinvestment of all
distributions and changes in net asset value.
o When sales charges are included in performance figures, Class A share
performance reflects the maximum 5.50% sales charge. Class B share
performance reflects the applicable contingent deferred sales charge (CDSC)
for the period involved. The CDSC on Class B shares declines from 5%
beginning at the time of purchase to 0% at the beginning of the seventh
year. The CDSC on Class C shares is 1% for the first year after purchase.
The performance of the Fund's Class B, C and Advisor Class shares will
differ from that of Class A shares due to differences in sales charge
structure and expenses.
o Class C shares commenced sales March 1, 1999. Because Class C shares have
been offered for less than one year, all performance reported for Class C
shares is cumulative return that has not been annualized.
o Advisor Class shares were closed to new investors as of March 1, 1999.
o The Fund's investment return and principal value will fluctuate, so an
investor's shares, when redeemed, may be worth more or less than their
original cost.
o International investing presents certain risks not associated with investing
solely in the United States. These include risks relating to fluctuations in
the value of the U.S. dollar relative to the values of other currencies, the
custody arrangements made for the Fund's foreign holdings, differences in
accounting, political risks and the lesser degree of public information
required to be provided by non-U.S. companies.
ABOUT INDEXES AND OTHER PERFORMANCE BENCHMARKS CITED IN THIS REPORT:
o The MSCI World Index is a group of unmanaged global securities tracked by
Morgan Stanley Capital International.
o The J.P. Morgan Global Government Bond Index is a market value-weighted
average of government bonds from 13 major developed bond markets. It
includes the effect of reinvested coupons and is measured in U.S. dollars.
o The unmanaged Standard & Poor's Composite Index of 500 Stocks (S&P 500) is
widely regarded by investors as representative of the stock market in
general.
o The Dow Jones Industrial Average (the Dow) is an unmanaged composite of the
performance of 30 large-company stocks.
o The EAFE--Registered Trademark-- (Europe, Australasia, and the Far East)
Index is a group of unmanaged securities. The index is compiled by Morgan
Stanley Capital International.
o A direct investment cannot be made in any index listed. Unless otherwise
indicated, index results include reinvested dividends and do not reflect
sales charges.
AN INVESTMENT IN THE FUND IS NOT A DEPOSIT OF A BANK AND IS NOT INSURED
OR GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION
OR ANY OTHER GOVERNMENT AGENCY. THERE IS A RISK THAT
YOU COULD LOSE SOME OR ALL OF YOUR MONEY.
This report may be distributed only to current shareholders or to persons
who have received a current prospectus of the fund.
AIM GLOBAL GROWTH & INCOME FUND
<PAGE> 3
SEMIANNUAL REPORT / CHAIRMAN'S LETTER
Dear Fellow Shareholder:
With only several months remaining in 1999, the question on
[PHOTO OF many of your minds may be, "How will the year 2000 computer
Charles T. issue affect AIM and my investments?" We would like you to
Bauer, feel comfortable.
Chairman of During March and April, AIM participated in an
the Board of industrywide test that gave us a chance to see how our
THE FUND technology systems might be affected by the changeover to
APPEARS HERE] the year 2000 (Y2K). Everything went as well as we had
hoped; in general, the industry sailed through the testing
process with flying colors. The financial industry has been
seen as a leader in planning for year 2000 concerns. Thus,
it was no surprise to most participants that the test was an
overwhelming success.
The general purpose of the process was to test
electronic interfaces among financial industry members in
the United States and to follow transactions through a
typical trading cycle--from order entry to the settlement process. Investment
banks, broker-dealers, custodian banks and mutual fund companies all worked
together to make this possible. Approximately 400 firms were involved in the
testing; AIM was one of 70 asset managers.
TEST RESULTS EXCELLENT
During the testing process, thousands of transactions were submitted and
approximately 260,000 steps were tested. Of those, only a handful experienced
minor glitches--just 0.02% of the total number of transactions. All problems
were worked through quickly before the hypothetical trades were settled. Of
course, AIM will keep testing and planning throughout 1999 as a precaution.
AIM'S INTERNAL EFFORTS CONTINUE
As you know from our previous communications to you, AIM has been addressing the
year 2000 issue for several years. During 1998, we made substantial progress on
our preparations. We are now in the final phases of the project, continually
testing internal applications and our interfaces with outside parties. On the
investment side, our portfolio management staff is evaluating the Y2K
preparedness of the companies in which we invest.
We feel that our preparations for 2000 are very comprehensive, and the
industrywide testing showed that our colleagues in the financial industry are
also working hard to be ready for the new year. We do not think shareholders
need to take any extraordinary measures with their investments to prepare for
2000. However, if you have any lingering concerns, it may reassure you to know
that AIM is finalizing contingency plans that will be ready if there are
unexpected problems. Our plans will give AIM employees guidelines to follow for
a wide variety of situations.
For a more comprehensive discussion of our Y2K efforts and for periodic
updates, please visit our Web site, www.aimfunds.com.
We are pleased to send you this report covering your fund's performance over
the last six months. If you have any questions or comments, please contact our
Client Services department at 800-959-4246, or e-mail your inquiry to us at
[email protected]. You can access information about your account through our
AIM Investor Line at 800-246-5463 or at our Web site.
Thank you for your continued participation in The AIM Family of
Funds--Registered Trademark--. We appreciate your business.
Sincerely,
/s/ CHARLES T. BAUER
Charles T. Bauer
Chairman
A I M Advisors, Inc.
PLEASE NOTE THAT THE INFORMATION ABOUT THE YEAR 2000 IN THIS LETTER IS DEEMED
AIM'S YEAR 2000 READINESS DISCLOSURE.
---------------------------------
THE FINANCIAL
INDUSTRY HAS BEEN SEEN
AS A LEADER IN PLANNING
FOR YEAR 2000 CONCERNS.
---------------------------------
AIM GLOBAL GROWTH & INCOME FUND
<PAGE> 4
SEMIANNUAL REPORT / MANAGERS' OVERVIEW
FUND WEATHERS DIFFICULT MARKET FOR BONDS
GLOBAL MARKETS HAVE BEEN VOLATILE SINCE LAST YEAR. HOW DID AIM GLOBAL GROWTH &
INCOME FUND PERFORM?
The Fund had a difficult six months, reporting a 6.78% return for Class A
shares, a 6.54% return for Class B shares and a 6.87% return for Advisor Class
shares for the period ending April 30, 1999. Class C shares had a 3.87%
cumulative return since their inception on March 31, 1999. These figures are at
net asset value, without a sales charge. During the reporting period, the MSCI
World Index rose 19.57%, while the J.P. Morgan Global Government Bond Index
returned -3.22%. These indexes help explain the performance of the Fund, which
invests in both stocks and bonds. Global equity markets did well over the past
six months, but bond markets underperformed.
WHAT WERE MARKET CONDITIONS LIKE DURING THIS TIME?
In late 1998, the Federal Reserve Board lowered interest rates and spurred a
U.S. market rally. That rally continued into 1999, with large-company stocks
dominating. The Dow crossed the 10,000 threshold during the reporting period,
and its performance reflected the strength of major American corporations. The
rest of the U.S. market did not perform as well as leading large-company stocks.
Meanwhile, the U.S. economy remains the strongest in the world, with low
inflation, high employment and low interest rates.
The European economy is slowing, particularly in Germany, and we're seeing
earnings disappointments from some companies. In January, 11 European countries
introduced the euro as their new common currency. While the euro started strong
against the dollar, it weakened as it became clear that the United States was
growing much faster than Europe.
HOW DID THESE FACTORS AFFECT THE FUND?
The last six months have been particularly unfavorable for our investment style,
though we do not expect this underperformance to persist.
Japan and the emerging markets of Asia and Latin America have been some of
the strongest-performing markets in the last six months, and the Fund has no
exposure in these areas. Actually, our investment policy keeps us out of these
regions. Since the Fund is dedicated to high-quality blue-chip stocks, it is not
suited to markets in which volatility and low dividend yields predominate.
With the recovery in global industrial production and the rise in global
interest rates, cyclical stocks have outperformed sharply, and again, this Fund
has little exposure to cyclical sectors. Over the long term, smokestack
industries and resource stocks have not performed well, and we believe that
these industries will continue to underperform over the long term. We prefer to
grow patiently in high-quality stocks purchased at reasonable prices.
HOW DID THE FUND'S BOND INVESTMENTS PERFORM?
Our fixed-income component detracted from the Fund's overall performance for the
last six months, as global interest rates rose over the period. The entire
global bond market was down, represented by the -3.22% return of the J.P. Morgan
Global Government Bond Index. The average maturity of our bond holdings was
somewhat long, which has made these investments more susceptible to rising
interest rates. Our high-quality bond orientation also underperformed compared
to lower-quality bonds, since credit spreads tightened during the period. The
fixed-income weight of the portfolio was about 30% during the last six months, a
period of strong equity market performance.
WHAT INVESTMENTS PERFORMED WELL FOR THE FUND?
Banking stocks have been strong performers due to low inflation and the benefits
of technology and new services. We expect these factors to continue. While we
sold some of our holdings to take profits, we
As of 4/30/99, based on total net assets
================================================================================
Top ten countries
- --------------------------------------------------------------------------------
1. United States 53.18%
2. United Kingdom 13.51
3. Germany 7.93
4. Netherlands 6.14
5. France 6.12
6. Switzerland 4.12
7. Australia 2.96
8. Belgium 2.49
9. New Zealand 1.92
10. Italy 1.21
================================================================================
---------------------------------
WE PREFER TO GROW PATIENTLY IN
HIGH-QUALITY STOCKS PURCHASED AT
REASONABLE PRICES.
---------------------------------
See important Fund and index disclosures inside front cover.
AIM GLOBAL GROWTH & INCOME FUND
2
<PAGE> 5
SEMIANNUAL REPORT / MANAGERS' OVERVIEW
PORTFOLIO COMPOSITION
As of 4/30/99, based on total net assets
TOTAL NUMBER OF HOLDINGS: 60
<TABLE>
<CAPTION>
===============================================================================================================
TOP 10 EQUITY HOLDINGS TOP 10 INDUSTRIES
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
1. Mobil Corp. (U.S.) 3.63% 1. Telephone 7.86%
2. UBS A.G. (Switzerland) 3.15 2. Electric Companies 7.48
3. Royal Dutch Petroleum Co. (Netherlands) 2.89 3. Banks (Major Regional) 7.16
4. First Tennessee National Corp. (U.S.) 2.68 4. Oil (International Integrated) 6.52
5. Texas Utilities Co. (U.S.) 2.37 5. Beverages (Alcoholic) 5.75
6. Cadbury Schweppes PLC (U.K.) 2.34 6. Foods 4.25
7. Bristol-Myers Squibb Co. (U.S.) 2.29 7. Health Care (Diversified) 3.61
8. McGraw-Hill Companies, Inc. (The) (U.S.) 2.27 8. Insurance Brokers 3.48
9. ING Groep N.V. (Netherlands) 2.08 9. Services (Commercial & Consumer) 2.71
10. Avon Products, Inc. (U.S.) 2.06 10. Banks (Regional) 2.68
===============================================================================================================
</TABLE>
PORTFOLIO ALLOCATION
- --------------------------------------------------------------------------------
U.S. Common Stocks 38.47%
International Common Stocks 32.01%
U.S. Government Notes and Bonds 14.65%
International Bonds 14.39%
Other 0.48%
================================================================================
TOP 5 FIXED INCOME HOLDINGS
- --------------------------------------------------------------------------------
Coupon Maturity %
- --------------------------------------------------------------------------------
U.S. Treasury Notes 6.00% 02/2026 6.58%
U.S. Treasury Notes 5.63 02/2001 5.01
Government of France Bonds 5.25 04/2008 3.79
United Kingdom Treasury Bonds 8.75 08/2017 3.35
Bundesrepublic Deutschland Bonds 8.25 09/2001 3.15
================================================================================
The Fund's portfolio is subject to change, and there is no assurance that the
Fund will continue to hold any particular security.
retained the best banking stocks in our portfolio, such as UBS AG, a leading
Swiss bank.
We added to our already large holdings in major oil companies, including
Mobil and Royal Dutch Petroleum. In December, Mobil and Exxon announced a record
$77.2 billion merger, creating the world's largest oil company. Royal Dutch has
a unique joint venture with Shell, and until the Exxon-Mobil merger, it was the
world's leading petroleum company. Oil stocks are benefiting from continued
consolidation in the industry and a recovery in oil prices. Since February, oil
prices have risen 60%.
WHAT'S YOUR OUTLOOK FOR THE NEXT SIX MONTHS?
While domestic economic growth continues to be extraordinarily good with no sign
of slowing down, we expect to enter a period of increased volatility and
uncertainty in global markets. Rising stock valuations combined with volatile
interest rates could exacerbate market volatility. We believe that the Fund's
emphasis on high quality and good value will help it weather market
uncertainties.
================================================================================
AVERAGE ANNUAL TOTAL RETURNS
As of 4/30/99, including sales charges
CLASS A SHARES
Inception (9/25/90) 12.63%
5 Years 12.68
1 Year 1.24*
*7.10% excluding sales charges
CLASS B SHARES
Inception (10/22/92) 13.63%
5 Years 13.01
1 Year 2.03*
*6.50% excluding CDSC
CLASS C SHARES
Inception (3/31/99) 2.87%*
*cumulative return; 3.87% excluding CDSC
ADVISOR CLASS SHARES
Inception (6/1/95) 16.56%
1 Year 7.49
*Advisor Class shares were closed to new investors as of March 1, 1999.
MARKET VOLATILITY CAN SIGNIFICANTLY AFFECT SHORT-TERM PERFORMANCE. RESULTS OF AN
INVESTMENT MADE TODAY MAY DIFFER SUBSTANTIALLY FROM THE HISTORICAL PERFORMANCE
SHOWN.
================================================================================
See important Fund and index disclosures inside front cover.
AIM GLOBAL GROWTH & INCOME FUND
3
<PAGE> 6
SEMIANNUAL REPORT / FOR CONSIDERATION
WHY STAYING FULLY INVESTED
HAS BEEN THE WISEST COURSE
When the stock market turns volatile, many investors feel the impulse to pull
their money out of mutual funds. The question then becomes when to get back in.
Trying to guess the answer could be very costly.
No one, not even expert market watchers, can consistently predict what the
market will do next. That's why AIM funds stay fully invested even in a down
market, and we encourage investors to do the same.
For long-term investing, the stock market historically has offered the
highest returns. For example, the Standard & Poor's Composite Index of 500
Stocks (S&P 500) has reported an annualized total return of 13.66% for the 50
years ending March 31, 1999. Those were five decades of wars, recessions and
political upheaval.
If you pull your money out whenever markets decline, you could miss some of
the market's best days. In August 1998, investors withdrew $11 billion from U.S.
mutual funds. Chances are, many of those investors did not put their money back
into the market in time for the October rally. In fact, October 1998 turned out
to be the strongest month for the Dow Jones Industrial Average in 11 years.
For international investors, here's another way to look at market timing: If
you had invested a hypothetical $10,000 in the EAFE Index tracked by Morgan
Stanley Capital International on March 31, 1979, your money would have grown to
$117,775 by March 31, 1999. That's an average annual total return of 13.12%. But
suppose that during that 20-year period, there were times when you decided to
get out of the market. If you missed the market's two best months, your return
would have fallen to 11.57%, and your investment would be worth $89,351. If you
had missed the market's five best months, your return would have dropped to
9.74%, and your investment would be worth $64,144.
The more you try to time the market, the greater your chances of missing its
biggest single-day gains. Keep focused on your financial goals, and remember
that time, not timing, is key to successful investing. Now may be a good time to
visit your financial advisor to talk about your portfolio. Remember:
o think long-term
o diversify your investments
o avoid market timing
o maintain realistic expectations
PENALTY FOR MISSING THE MARKET
MSCI EAFE INDEX
Average annual total returns, 20 years ended 3/31/99
- --------------------------------------------------------------------------------
Fully invested 240 months 13.12%
Miss the 2 Best Months 11.57%
Miss the 5 Best Months 9.74%
Miss the 7 Best Months 8.61%
Miss the 9 Best Months 7.52%
Miss the 14 Best Months 5.07%
The EAFE--Registered Trademark-- (Europe, Australasia, and the Far East) Index
is a group of unmanaged foreign securities. The index is compiled by Morgan
Stanley Capital International. Source: Lipper Analytical Services, Inc.
================================================================================
AIM GLOBAL GROWTH & INCOME FUND
4
<PAGE> 7
SCHEDULE OF INVESTMENTS
April 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
DOMESTIC COMMON STOCKS-38.47%
AEROSPACE/DEFENSE-1.69%
Lockheed Martin Corp. 310,000 $ 13,349,375
- --------------------------------------------------------------
BANKS (MONEY CENTER)-1.63%
First Union Corp. 232,000 12,847,000
- --------------------------------------------------------------
BANKS (REGIONAL)-2.68%
First Tennessee National Corp. 490,800 21,165,750
- --------------------------------------------------------------
BEVERAGES (ALCOHOLIC)-2.86%
Anheuser-Busch Companies, Inc. 188,371 13,774,629
- --------------------------------------------------------------
Brown-Forman Corp. 118,600 8,739,338
- --------------------------------------------------------------
22,513,967
- --------------------------------------------------------------
ELECTRIC COMPANIES-5.02%
PG&E Corp. 220,000 6,833,750
- --------------------------------------------------------------
Southern Co. 520,000 14,072,500
- --------------------------------------------------------------
Texas Utilities Co. 470,000 18,682,500
- --------------------------------------------------------------
39,588,750
- --------------------------------------------------------------
ELECTRICAL EQUIPMENT-0.94%
Emerson Electric Co. 115,000 7,417,500
- --------------------------------------------------------------
FINANCIAL (DIVERSIFIED)-1.60%
American General Corp. 170,000 12,580,000
- --------------------------------------------------------------
FOODS-1.91%
Bestfoods 300,000 15,056,250
- --------------------------------------------------------------
HEALTH CARE (DIVERSIFIED)-3.61%
American Home Products Corp. 170,000 10,370,000
- --------------------------------------------------------------
Bristol-Myers Squibb Co. 284,800 18,102,600
- --------------------------------------------------------------
28,472,600
- --------------------------------------------------------------
INSURANCE (PROPERTY-CASUALTY)-1.31%
St. Paul Co., Inc. (The) 361,000 10,356,188
- --------------------------------------------------------------
OIL (INTERNATIONAL
INTEGRATED)-3.63%
Mobil Corp. 273,500 28,649,125
- --------------------------------------------------------------
PERSONAL CARE-2.06%
Avon Products, Inc. 299,000 16,239,437
- --------------------------------------------------------------
PUBLISHING-2.27%
McGraw-Hill Companies, Inc. (The) 324,000 17,901,000
- --------------------------------------------------------------
REAL ESTATE INVESTMENT TRUST-1.59%
Equity Office Properties Trust 307,000 8,461,688
- --------------------------------------------------------------
Equity Residential Properties
Trust 89,000 4,116,250
- --------------------------------------------------------------
12,577,938
- --------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
SERVICES (COMMERCIAL &
CONSUMER)-2.71%
Dun & Bradstreet Corp. (The) 309,800 $ 11,385,150
- --------------------------------------------------------------
Service Corp. International 480,000 9,960,000
- --------------------------------------------------------------
21,345,150
- --------------------------------------------------------------
TELEPHONE-1.83%
Bell Atlantic Corp. 250,000 14,406,250
- --------------------------------------------------------------
TOBACCO-1.13%
Philip Morris Companies, Inc. 255,000 8,940,937
- --------------------------------------------------------------
Total Domestic Common Stock
(Cost $213,136,726) 303,407,217
- --------------------------------------------------------------
FOREIGN STOCKS & OTHER EQUITY
INTERESTS-32.01%
AUSTRALIA-2.96%
Foster's Brewing Group Ltd.
(Beverages-Alcoholic) 3,500,000 10,209,479
- --------------------------------------------------------------
National Australia Bank Ltd.
(Banks-Major Regional) 674,825 13,137,955
- --------------------------------------------------------------
23,347,434
- --------------------------------------------------------------
BELGIUM-2.49%
Electrabel S.A. (Electric
Companies) 34,760 11,462,084
- --------------------------------------------------------------
Fortis A.G.-CVG
(Financial-Diversified)(a) 34,440 176,844
- --------------------------------------------------------------
Fortis A.G.-Strip VVPR
(Financial-Diversified)(a) 309,960 3,275
- --------------------------------------------------------------
Societe Generale De
Belgiquie-Warrants- Expiring
11/30/99 (Electric Companies)(a) 11,587 367
- --------------------------------------------------------------
Tractebel (Electric Companies) 57,935 7,963,580
- --------------------------------------------------------------
19,606,150
- --------------------------------------------------------------
FRANCE-2.33%
France Telecom S.A. (Telephone)(a) 95,000 7,673,459
- --------------------------------------------------------------
Pernod Ricard
(Beverages-Non-Alcoholic) 158,720 10,707,365
- --------------------------------------------------------------
18,380,824
- --------------------------------------------------------------
GERMANY-1.89%
Deutsche Telekom A.G. (Telephone) 190,000 7,487,770
- --------------------------------------------------------------
IKB Deutsche Industriebank A.G.
(Banks-Major Regional) 394,000 7,388,982
- --------------------------------------------------------------
14,876,752
- --------------------------------------------------------------
ITALY-1.21%
Telecom Italia S.p.A. (Telephone) 900,000 9,575,513
- --------------------------------------------------------------
NETHERLANDS-6.14%
ING Groep N.V. (Insurance Brokers) 266,878 16,438,848
- --------------------------------------------------------------
Koninklijke KPN N.V.
(Telecommunications-Long
Distance) 220,005 9,181,628
- --------------------------------------------------------------
</TABLE>
5
<PAGE> 8
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
NETHERLANDS-(CONTINUED)
Royal Dutch Petroleum Co.
(Oil-International Integrated) 391,840 $ 22,811,320
- --------------------------------------------------------------
48,431,796
- --------------------------------------------------------------
NEW ZEALAND-1.92%
Telecom Corp. of New Zealand Ltd.
(Telephone) 2,614,200 13,617,185
- --------------------------------------------------------------
Telecom Corp. of New Zealand
Ltd.-ADR (Telephone) 38,000 1,565,125
- --------------------------------------------------------------
15,182,310
- --------------------------------------------------------------
SWITZERLAND-4.12%
Swisscom A. G. (Telephone)(a) 20,820 7,641,869
- --------------------------------------------------------------
UBS A.G. (Banks-Major Regional) 73,259 24,872,624
- --------------------------------------------------------------
32,514,493
- --------------------------------------------------------------
UNITED KINGDOM-8.95%
Cadbury Schweppes PLC (Foods) 1,381,800 18,437,823
- --------------------------------------------------------------
CGU PLC (Insurance Brokers) 694,750 10,968,997
- --------------------------------------------------------------
Diageo PLC (Beverages-Alcoholic) 1,094,559 12,633,077
- --------------------------------------------------------------
EMI Group PLC (Leisure
Time-Products) 887,600 7,560,166
- --------------------------------------------------------------
Lloyds TSB Group PLC (Banks-Major
Regional) 688,428 11,079,590
- --------------------------------------------------------------
Reckitt & Colman PLC (Household
Products/ Non-Durables) 833,094 9,903,452
- --------------------------------------------------------------
70,583,105
- --------------------------------------------------------------
Total Foreign Stocks & Other
Equity Interests (Cost
$162,533,594) 252,498,377
- --------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
<S> <C> <C>
NON-U.S. DOLLAR DENOMINATED
GOVERNMENT BONDS &
NOTES(B)-14.39%
FRANCE-3.79%
Government of France, 5.25%,
04/25/08 EUR 25,670,000 29,859,378
- --------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<S> <C> <C>
GERMANY-6.04%
Bundesrepublic Deutschland,
Bonds, 8.25%, 09/20/01 EUR 20,950,000 $ 24,838,390
- --------------------------------------------------------------
Bonds, 6.25%, 04/26/06 12,490,000 15,347,915
- --------------------------------------------------------------
Bonds, 5.625%, 01/04/28 6,320,000 7,453,937
- --------------------------------------------------------------
47,640,242
- --------------------------------------------------------------
UNITED KINGDOM-4.56%
United Kingdom Treasury,
Bonds, 9.00%, 10/13/08 GBP 5,948,329 9,568,483
- --------------------------------------------------------------
Bonds, 8.75%, 08/25/17 16,417,671 26,409,466
- --------------------------------------------------------------
35,977,949
- --------------------------------------------------------------
Total Non-U.S. Dollar
Denominated Government Bonds
& Notes (Cost $121,730,394) 113,477,569
- --------------------------------------------------------------
U.S. TREASURY NOTES-14.65%
5.625%, 02/28/01 $39,140,000 39,514,570
- --------------------------------------------------------------
5.50%, 02/15/08 24,000,000 24,158,640
- --------------------------------------------------------------
6.00%, 02/15/26 51,200,000 51,856,384
- --------------------------------------------------------------
Total U.S. Treasury Notes
(Cost $120,099,608) 115,529,594
- --------------------------------------------------------------
REPURCHASE AGREEMENT(C)-0.06%
State Street Bank & Trust Co.,
4.85%, 05/03/99(d) (Cost
$457,000) 457,000 457,000
- --------------------------------------------------------------
TOTAL INVESTMENTS-99.58% 785,369,757
- --------------------------------------------------------------
OTHER ASSETS LESS
LIABILITIES-0.42% 3,310,688
- --------------------------------------------------------------
NET ASSETS-100.00% $788,680,445
==============================================================
</TABLE>
Abbreviations:
ADR - American Depositary Receipt
EURO - Euro
GBP - British Pound
Notes to Schedule of Investments
(a)Non-income producing security.
(b)Foreign denominated security. Par value and coupon are denominated in
currency indicated.
(c)Collateral on repurchase agreements, including the Fund's pro-rata interest
in joint repurchase agreements, is taken into possession by the Fund upon
entering into the repurchase agreement. The collateral is marked to market
daily to ensure its market value is at least 102% of the sales price of the
repurchase agreement. The investments in some repurchase agreements are
through participation in joint accounts, and certain non-registered
investment companies managed by the investment advisor or its affiliates.
(d)Repurchase agreement entered into 4/30/99 with a maturing value of $457,000.
Collateralized by $460,000 U.S. Treasury Note, 5,75% due 04/30/03 with a
market value at 04/30/99 of $468,769.
See Notes to Financial Statements.
6
<PAGE> 9
STATEMENT OF ASSETS AND LIABILITIES
April 30, 1999
(Unaudited)
<TABLE>
<S> <C>
ASSETS:
Investments, at value (cost $617,957,322) $785,369,757
- ------------------------------------------------------------
Cash 749
- ------------------------------------------------------------
Receivables for:
Investments sold 15,945,315
- ------------------------------------------------------------
Fund shares sold 571,986
- ------------------------------------------------------------
Dividends and interest 5,373,939
- ------------------------------------------------------------
Forward contracts 318,502
- ------------------------------------------------------------
Other assets 29,694
- ------------------------------------------------------------
Total assets 807,609,942
- ------------------------------------------------------------
LIABILITIES:
Payables for:
Investments purchased 15,432,233
- ------------------------------------------------------------
Fund shares reacquired 2,263,481
- ------------------------------------------------------------
Accrued administrative services fees 18,522
- ------------------------------------------------------------
Accrued advisory fees 622,939
- ------------------------------------------------------------
Accrued distribution fees 505,244
- ------------------------------------------------------------
Accrued transfer agent fees 82,078
- ------------------------------------------------------------
Accrued trustees' fees 5,000
- ------------------------------------------------------------
Total liabilities 18,929,497
- ------------------------------------------------------------
Net assets applicable to shares outstanding $788,680,445
- ------------------------------------------------------------
NET ASSETS:
Class A $310,304,818
============================================================
Class B $471,598,743
============================================================
Class C $ 850,196
============================================================
Advisor Class $ 5,926,688
============================================================
SHARES OUTSTANDING, $0.01 PAR VALUE PER SHARE:
Class A 37,190,513
- ------------------------------------------------------------
Class B 56,561,395
- ------------------------------------------------------------
Class C 102,023
- ------------------------------------------------------------
Advisor Class 711,363
============================================================
Class A:
Net asset value and redemption price per
share $ 8.34
- ------------------------------------------------------------
Offering price per share:
(Net asset value of $8.34 / 94.50%) $ 8.83
============================================================
Class B:
Net asset value and offering price per share $ 8.34
============================================================
Class C:
Net asset value and offering price per share $ 8.33
============================================================
Advisor Class:
Net asset value, redemption and offering
price per share $ 8.33
============================================================
</TABLE>
STATEMENT OF OPERATIONS
For the six months ended April 30, 1999
(Unaudited)
<TABLE>
<S> <C>
INVESTMENT INCOME:
Dividends (net of $344,443 foreign withholding
tax) $ 8,308,237
- ------------------------------------------------------------
Interest 7,211,582
- ------------------------------------------------------------
Securities lending 141,237
- ------------------------------------------------------------
Total investment income 15,661,056
- ------------------------------------------------------------
EXPENSES:
Advisory fees 3,857,172
- ------------------------------------------------------------
Administrative services fees 124,161
- ------------------------------------------------------------
Custodian fees 117,861
- ------------------------------------------------------------
Distribution fees -- Class A 543,720
- ------------------------------------------------------------
Distribution fees -- Class B 2,409,629
- ------------------------------------------------------------
Distribution fees -- Class C 756
- ------------------------------------------------------------
Trustees' fees 6,909
- ------------------------------------------------------------
Transfer agent fees -- Class A 280,990
- ------------------------------------------------------------
Transfer agent fees -- Class B 435,847
- ------------------------------------------------------------
Transfer agent fees -- Class C 137
- ------------------------------------------------------------
Transfer agent fees -- Advisor Class 5,618
- ------------------------------------------------------------
Other 249,730
- ------------------------------------------------------------
Total expenses 8,032,530
- ------------------------------------------------------------
Less: Expenses paid indirectly (3,236)
- ------------------------------------------------------------
Net expenses 8,029,294
- ------------------------------------------------------------
Net investment income 7,631,762
============================================================
REALIZED AND UNREALIZED GAIN (LOSS) FROM
INVESTMENT SECURITIES, FOREIGN CURRENCIES,
AND FORWARD CURRENCY CONTRACTS:
Net realized gain from:
Investment securities 58,986,332
- ------------------------------------------------------------
Foreign currencies 3,854,290
- ------------------------------------------------------------
Forward currency contracts 1,268,131
- ------------------------------------------------------------
64,108,753
- ------------------------------------------------------------
Net unrealized appreciation (depreciation) of:
Investment securities (19,406,770)
- ------------------------------------------------------------
Foreign currencies (283,705)
- ------------------------------------------------------------
Forward currency contracts 93,746
- ------------------------------------------------------------
(19,596,729)
- ------------------------------------------------------------
Net gain from investment securities, foreign
currencies and forward currency contracts 44,512,024
- ------------------------------------------------------------
Net increase in net assets resulting from
operations $ 52,143,786
============================================================
</TABLE>
See Notes to Financial Statements.
7
<PAGE> 10
STATEMENTS OF CHANGES IN NET ASSETS
For the six months ended April 30, 1999 and the year ended October 31, 1998
(Unaudited)
<TABLE>
<CAPTION>
APRIL 30, OCTOBER 31,
1999 1998
------------ ------------
<S> <C> <C>
OPERATIONS:
Net investment income $ 7,631,762 $ 12,068,853
- ------------------------------------------------------------------------------------------
Net realized gain from investment securities, foreign
currencies and forward currency contracts 64,108,753 146,741,450
- ------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) of investment
securities, foreign currencies and forward currency
contracts (19,596,729) (29,909,686)
- ------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 52,143,786 128,900,617
- ------------------------------------------------------------------------------------------
Distributions to shareholders from net investment income:
Class A (3,286,753) (4,583,653)
- ------------------------------------------------------------------------------------------
Class B (3,405,451) (4,410,176)
- ------------------------------------------------------------------------------------------
Class C (1,067) --
- ------------------------------------------------------------------------------------------
Advisor Class (75,633) (100,933)
- ------------------------------------------------------------------------------------------
Distributions to shareholders from net realized gains:
Class A (48,206,717) (8,368,465)
- ------------------------------------------------------------------------------------------
Class B (74,595,441) (13,388,382)
- ------------------------------------------------------------------------------------------
Advisor Class (965,129) (131,267)
- ------------------------------------------------------------------------------------------
Share transactions-net:
Class A 34,709,208 (24,946,235)
- ------------------------------------------------------------------------------------------
Class B 35,434,054 (31,695,480)
- ------------------------------------------------------------------------------------------
Class C 834,488 --
- ------------------------------------------------------------------------------------------
Advisor Class (730,138) 3,071,389
- ------------------------------------------------------------------------------------------
Net increase (decrease) in net assets (8,144,793) 44,347,415
- ------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 796,825,238 752,477,823
- ------------------------------------------------------------------------------------------
End of period $788,680,445 $796,825,238
==========================================================================================
NET ASSETS CONSIST OF:
Shares of beneficial interest $537,821,173 $467,573,561
- ------------------------------------------------------------------------------------------
Undistributed net investment income 862,858 --
- ------------------------------------------------------------------------------------------
Undistributed net realized gain from investment
securities, foreign currencies, futures, forward and
option contracts 82,402,752 142,061,286
- ------------------------------------------------------------------------------------------
Unrealized appreciation of investment securities, foreign
currencies, forward contracts and option contracts 167,593,662 187,190,391
- ------------------------------------------------------------------------------------------
$788,680,445 $796,825,238
==========================================================================================
</TABLE>
See Notes to Financial Statements.
8
<PAGE> 11
NOTES TO FINANCIAL STATEMENTS
April 30, 1999
(Unaudited)
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES
AIM Global Growth & Income Fund (the "Fund") is a separate series of AIM
Investment Funds (the "Trust"). The Trust is organized as a Delaware business
trust and is registered under the Investment Company Act of 1940, as amended
("1940 Act"), as an open-end series management investment company consisting of
twelve separate series portfolios, each having an unlimited number of shares of
beneficial interest. The Fund currently offers four different classes of shares:
Class A shares, Class B shares, Class C shares and Advisor Class shares. Class A
shares are sold with a front-end sales charge. Class B shares and Class C shares
are sold with a contingent deferred sales charge. Advisor Class shares are sold
without a sales charge. Matters affecting each portfolio or class will be voted
on exclusively by the shareholders of such portfolio or class. The assets,
liabilities and operations of each portfolio are accounted for separately.
Information presented in these financial statements pertains only to the Fund.
The Fund's investment objective is long-term growth of capital together with
current income.
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. Security Valuations-Each equity security is valued at its last sales price on
the exchange where the security is principally traded or, lacking any sales
on a particular day, the security is valued at the last available bid. Each
security traded in the over-the-counter market (but not including securities
reported on the NASDAQ National Market System) is valued at the mean between
the last bid and asked prices based upon quotes furnished by market makers
for such securities. Each security reported on the NASDAQ National Market
System is valued at the last sales price on the valuation date or absent a
last sales price, at the closing bid price on that day. Debt securities are
valued on the basis of prices provided by an independent pricing service.
Prices provided by the pricing service may be determined without exclusive
reliance on quoted prices, and may reflect appropriate factors such as
institution-size trading in similar groups of securities, developments
related to special securities, yield, quality, coupon rate, maturity, type of
issue, individual trading characteristics and other market data. Securities
for which market quotations are not readily available or are questionable are
valued at fair value as determined in good faith by or under the supervision
of the Trust's officers in a manner specifically authorized by the Board of
Trustees. Short-term obligations having 60 days or less to maturity are
valued on the basis of amortized cost. For purposes of determining net asset
value per share, futures and options contracts generally will be valued 15
minutes after the close of trading of the New York Stock Exchange ("NYSE").
Generally, trading in foreign securities, corporate bonds, U.S. Government
securities and money market instruments is substantially completed each day
at various times prior to the close of the NYSE. The values of such
securities used in computing the net asset value of the Fund's shares are
determined at such times. Foreign currency exchange rates are also generally
determined prior to the close of the NYSE. Occasionally, events affecting the
values of such securities and such exchange rates may occur between the times
at which such values are determined and the close of the NYSE, which will not
be reflected in the computation of the Fund's net asset value. If events
materially affecting the value of such securities occur during such period,
then these securities will be valued at their fair value as determined in
good faith by or under the supervision of the Board of Trustees of the Trust.
B. Securities Transactions, Investment Income and Distributions-Securities
transactions are accounted for on a trade date basis. Realized gains or
losses on sales are computed on the basis of specific identification of the
securities sold. Interest income is recorded as earned from settlement date
and is recorded on the accrual basis. Dividend income and distributions to
shareholders are recorded on the ex-dividend date. Such distributions are
declared and paid quarterly.
C. Federal Income Taxes-The Fund intends to comply with the requirements of the
Internal Revenue Code necessary to qualify as a regulated investment company
and, as such, will not be subject to federal income taxes on otherwise
taxable income (including net realized capital gains) which is distributed to
shareholders. Therefore, no provision for federal income taxes is recorded in
the financial statements.
D. Expenses-Distribution and transfer agency expenses directly attributable to a
class of shares are charged to that class' operations. All other expenses are
allocated among the classes.
E. Foreign Currency Translations-Portfolio securities and other assets and
liabilities denominated in foreign currencies are translated into U.S. dollar
amounts at date of valuation. Purchases and sales of portfolio securities and
income items denominated in foreign currencies are translated into U.S.
dollar amounts on the respective dates of such transactions. The Fund does
not separately account for that portion of the results of operations
resulting from changes in foreign exchange rates on investments and the
fluctuations arising from changes in market prices of securities held. Such
fluctuations are included with the net realized and unrealized gain or loss
from investments.
9
<PAGE> 12
F. Forward Foreign Currency Contracts-A forward foreign currency contract is an
obligation to purchase or sell a specific currency for an agreed-upon price
at a future date. The Fund may enter into a forward foreign currency contract
to attempt to minimize the risk to the Fund from adverse changes in the
relationship between currencies. The Fund may also enter into a forward
foreign currency contract for the purchase or sale of a security denominated
in a foreign currency in order to "lock in" the U.S. dollar price of that
security. The Fund could be exposed to risk if counterparties to the
contracts are unable to meet the terms of their contracts or if the value of
the foreign currency changes unfavorably. Outstanding forward foreign
currency contracts at April 30, 1999 were as follows:
<TABLE>
<CAPTION>
CONTRACT TO
SETTLEMENT ------------------------ UNREALIZED
DATE DELIVER RECEIVE VALUE APPRECIATION
---------- ---------- ----------- ----------- ------------
<S> <C> <C> <C> <C> <C>
07/30/99 GBP 33,700,000 $54,489,530 $54,171,028 $318,502
</TABLE>
G. 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.
H. 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
investment in emerging market countries may involve greater risks than
investments in more developed markets and the price 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.
I. 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.
NOTE 2-ADVISORY FEES AND OTHER TRANSACTIONS WITH AFFILIATES
A I M Advisors, Inc. ("AIM") is the Fund's investment manager and administrator.
INVESCO Asset Management Limited is the Fund's sub-advisor and
sub-administrator. The Fund pays AIM investment management and administration
fees at an annual rate of 0.975% on the first $500 million of the Fund's average
daily net assets, plus 0.95% on the next $500 million of the Fund's average
daily net assets, plus 0.925% on the next $500 million of the Fund's average
daily net assets, plus 0.90% on the Fund's average daily net assets exceeding
$1.5 billion. AIM has contractually agreed to limit the Fund's expenses
(exclusive of brokerage commissions, taxes, interest, and extraordinary expense)
to the maximum annual rate of 1.75%, 2.40%, 2.40%, and 1.40% of the average
daily net assets of the Fund's Class A, Class B, Class C, and Advisor Class
shares, respectively.
A I M Fund Services, Inc. ("AFS") is the transfer agent of the Fund. The Fund,
pursuant to a transfer agency and service agreement, has agreed to pay AFS a fee
for providing transfer agency and shareholder services to the Fund. During the
six months ended April 30, 1999, AFS was paid $675,980 for such services.
The Trust has entered into master distribution agreements with A I M
Distributors, Inc. ("AIM Distributors") to serve as the distributor for the
Class A, Class B, Class C and Advisor Class shares of the Fund. The Trust has
adopted distribution plans pursuant to Rule 12b-1 under the 1940 Act with
respect to the Fund's Class A shares and Class C shares (the "Class A and C
Plan"), and the Fund's Class B shares (the "Class B Plan") (collectively, the
"Plans"). The Fund, pursuant to the Class A and C Plan, pays AIM Distributors
compensation at an annual rate of 0.35% of the average daily net assets of the
Class A shares and 1.00% of the average daily net assets of the Class C shares.
The Fund pursuant to the Class B Plan, pays AIM Distributors compensation at an
annual rate of 1.00% of the average daily net assets of the Class B shares. Of
these amounts, the Fund may pay a service fee of 0.25% of the average daily net
assets of the Class A, Class B or Class C shares to selected dealers and
financial institutions who furnish continuing personal shareholder services to
their customers who purchase and own the appropriate class of shares of the
Fund. Any amounts not paid as a service fee under the Plans would constitute an
asset-based sales charge. The Plans also impose a cap on the total sales
charges, including asset-based sales charges that may be paid by the respective
classes. During the six months ended April 30, 1999, the Class A, Class B and
Class C shares paid AIM Distributors $543,720, $2,409,629 and $756,
respectively, as compensation under the Plans.
AIM Distributors received commissions of $48,636 from sales of the Class A
shares of the Fund during the six months ended April 30, 1999. Such commissions
are not an expense of the Fund. They are deducted from, and are not included in,
the proceeds from sales of Class A shares. During the six months ended April 30,
1999, AIM Distributors received $1,171 in contingent deferred sales charges
imposed on redemptions of Fund shares. Certain officers and trustees of the
Trust are officers and directors of AIM, AIM Distributors and AFS.
AIM is the pricing and accounting agent for the Fund. The monthly fee for
these services paid to AIM is a percentage, not to exceed 0.03% annually, of a
Fund's average daily net assets. The annual fee rate is derived based on the
aggregate net assets of the funds which comprise the following investment
companies: AIM Growth Series, AIM Investment Funds, AIM Series Trust, G.T.
Global Variable Investment Series and G.T. Global Variable
10
<PAGE> 13
Investment Trust. The fee is calculated at the rate of 0.03% of the first $5
billion of assets and 0.02% to the assets in excess of $5 billion. An amount is
allocated to and paid by each such fund based on its relative average daily net
assets.
NOTE 3-INDIRECT EXPENSES
During the six months ended April 30, 1999, the Fund received reductions in
custodian fees of $3,236 under expense offset arrangements. The effect of the
above arrangement resulted in a reduction of the Fund's total expenses of $3,236
during the six months ended April 30, 1999.
NOTE 4-TRUSTEES' FEES
Trustees' fees represent remuneration paid or accrued to each trustee who is not
an "interested person" of AIM. The Trust may invest trustees' fees, if so
elected by a trustee, in mutual fund shares in accordance with a deferred
compensation plan.
NOTE 5-BANK BORROWINGS
The Fund, along with certain other funds advised and/or administered by AIM, has
a line of credit with BankBoston and State Street Bank & Trust Company. The
arrangements with the banks allow the Fund and certain other funds to borrow, on
a first come, first served basis, an aggregate maximum amount of $250,000,000.
The Fund is limited to borrowing up to 33 1/3% of the Fund's total assets.
For the six months ended April 30, 1999, the average outstanding daily balance
of bank loans for the Fund was $541,177 with a weighted average interest rate of
5.42%. Interest expense for the Fund for the six months ended April 30, 1999 was
$14,514.
Effective May 28, 1999, the above line of credit was superseded by the Fund's
participation in a committed line of credit facility with a syndicate
administered by The Chase Manhattan Bank. The Fund may borrow up to the lesser
of (i) $975,000,000 or (ii) the limits set by its prospectus for borrowings. The
Fund and other funds advised by AIM which are parties to the line of credit may
borrow on a first come, first served basis. The funds which are party to the
line of credit are charged a commitment fee of 0.09% on the unused balance of
the committed line. The commitment fee is allocated among the funds based on
their respective average net assets for the period.
NOTE 6-PORTFOLIO SECURITIES LOANED
At April 30, 1999, securities with an aggregate value of $62,740,486 were on
loan to brokers. The loans were secured by cash collateral of $65,774,235
received by the Fund. For the six months ended April 30, 1999, the Fund received
fees of $141,237 for securities lending.
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 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 the 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.
NOTE 7-INVESTMENT SECURITIES
The aggregate amount of investment securities (other than short-term securities)
purchased and sold by the Fund during the six months ended April 30, 1999 was
$302,249,701 and $328,843,611, respectively.
The amount of unrealized appreciation (depreciation) of investment securities,
on a tax basis, as of April 30, 1999 is as follows:
<TABLE>
<S> <C>
Aggregate unrealized appreciation of investment
securities $189,318,927
- ----------------------------------------------------------------
Aggregate unrealized (depreciation) of investment
securities (21,906,492)
- ----------------------------------------------------------------
Net unrealized appreciation of investment
securities $167,412,435
================================================================
</TABLE>
Investments have the same cost for tax and financial statement purposes.
NOTE 8-SHARE INFORMATION
Changes in shares outstanding during the six months ended April 30, 1999 and the
year ended October 31, 1998 were as follows:
<TABLE>
<CAPTION>
APRIL 30, 1999 OCTOBER 31, 1998
-------------------------- ---------------------------
SHARES AMOUNT SHARES AMOUNT
----------- ------------ ----------- -------------
<S> <C> <C> <C> <C>
Sold:
Class A 6,575,947 $ 56,089,453 40,631,419 $ 363,947,180
- -------------------------------------------------------------------------------
Class B 3,752,689 32,366,841 12,852,707 115,998,695
- -------------------------------------------------------------------------------
Class C* 105,386 861,814 -- --
- -------------------------------------------------------------------------------
Advisor 182,981 1,561,945 4,670,023 41,740,705
- -------------------------------------------------------------------------------
Issued as
reinvestment of
dividends:
Class A 5,657,146 46,609,222 1,294,169 11,189,344
- -------------------------------------------------------------------------------
Class B 8,329,586 68,620,381 1,736,739 14,930,372
- -------------------------------------------------------------------------------
Class C* 122 1,004 -- --
- -------------------------------------------------------------------------------
Advisor 126,247 1,037,660 25,259 222,124
- -------------------------------------------------------------------------------
Reacquired:
Class A (8,124,224) (67,989,467) (44,464,914) (400,082,759)
- -------------------------------------------------------------------------------
Class B (7,769,316) (65,553,168) (17,992,943) (162,624,547)
- -------------------------------------------------------------------------------
Class C* (3,485) (28,330) -- --
- -------------------------------------------------------------------------------
Advisor (379,986) (3,329,743) (4,285,866) (38,891,440)
- -------------------------------------------------------------------------------
8,453,093 $ 70,247,612 (5,533,407) $ (53,570,326)
===============================================================================
</TABLE>
* Class C shares commenced sales March 1, 1999.
11
<PAGE> 14
NOTE 9-FINANCIAL HIGHLIGHTS
Contained below is per share operating performance data for a share outstanding
throughout each period, total investment return, ratios and supplemental data.
This information has been derived from information provided in the financial
statements.
<TABLE>
<CAPTION>
CLASS A
---------------------------------------------------------------------
YEAR ENDED OCTOBER 31,
APRIL 30, --------------------------------------------------------
1999(a) 1998(a) 1997(a) 1996 1995 1994
--------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 9.26 $ 8.21 $ 7.11 $ 6.35 $ 6.21 $ 6.29
- ---------------------------------------------------------- -------- -------- -------- -------- -------- --------
Income from investment operations:
Net investment income 0.10 0.17 0.21 0.22 0.24 0.22
- ---------------------------------------------------------- -------- -------- -------- -------- -------- --------
Net realized and unrealized gain (loss) on investments 0.50 1.25 1.12 0.82 0.13 (0.03)
- ---------------------------------------------------------- -------- -------- -------- -------- -------- --------
Net increase from investment operations 0.60 1.42 1.33 1.04 0.37 0.19
- ---------------------------------------------------------- -------- -------- -------- -------- -------- --------
Distributions to shareholders:
From net investment income (0.09) (0.13) (0.21) (0.24) (0.22) (0.21)
- ---------------------------------------------------------- -------- -------- -------- -------- -------- --------
From net realized gain on investments (1.43) (0.24) (0.02) (0.04) (0.01) (0.06)
- ---------------------------------------------------------- -------- -------- -------- -------- -------- --------
Total distributions (1.52) (0.37) (0.23) (0.28) (0.23) (0.27)
- ---------------------------------------------------------- -------- -------- -------- -------- -------- --------
Net asset value, end of period $ 8.34 $ 9.26 $ 8.21 $ 7.11 $ 6.35 $ 6.21
========================================================== ======== ======== ======== ======== ======== ========
Total return(b) 6.78% 17.76% 19.01% 16.80% 6.27% 3.14%
========================================================== ======== ======== ======== ======== ======== ========
Ratios and supplemental data:
Net assets, end of period (in 000's) $310,305 $306,279 $292,528 $286,203 $284,069 $317,847
========================================================== ======== ======== ======== ======== ======== ========
Ratio of net investment income to average net assets: 2.30%(c) 1.87% 2.74% 3.17% 3.85% 3.30%
========================================================== ======== ======== ======== ======== ======== ========
Ratio of expenses to average net assets: 1.62%(c) 1.65% 1.64% 1.66% 1.74% N/A
========================================================== ======== ======== ======== ======== ======== ========
Portfolio turnover rate 39% 92% 50% 39% 83% 117%
========================================================== ======== ======== ======== ======== ======== ========
</TABLE>
(a) These selected per share data were calculated based upon the average shares
outstanding during the period.
(b) Total return does not include sales charges and is not annualized for
periods less than one year.
(c) Ratios are annualized and based on average net assets of $313,272,006.
N/A Not Applicable.
12
<PAGE> 15
NOTE 9-FINANCIAL HIGHLIGHTS (CONTINUED)
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
---------------------------------------------------------------------
YEAR ENDED OCTOBER 31,
APRIL 30, --------------------------------------------------------
1999(a) 1998(a) 1997(a) 1996 1995 1994
--------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 9.25 $ 8.21 $ 7.11 $ 6.35 $ 6.21 $ 6.29
- --------------------------------------------------------- -------- -------- -------- -------- -------- --------
Income from investment operations:
Net investment income 0.07 0.11 0.16 0.17 0.20 0.18
- --------------------------------------------------------- -------- -------- -------- -------- -------- --------
Net realized and unrealized gain (loss) on investments 0.51 1.25 1.13 0.82 0.13 (0.03)
- --------------------------------------------------------- -------- -------- -------- -------- -------- --------
Net increase from investment operations 0.58 1.36 1.29 0.99 0.33 0.15
- --------------------------------------------------------- -------- -------- -------- -------- -------- --------
Distributions to shareholders:
From net investment income (0.06) (0.08) (0.17) (0.20) (0.18) (0.17)
- --------------------------------------------------------- -------- -------- -------- -------- -------- --------
From net realized gain on investments (1.43) (0.24) (0.02) (0.03) (0.01) (0.06)
- --------------------------------------------------------- -------- -------- -------- -------- -------- --------
Total distributions (1.49) (0.32) (0.19) (0.23) (0.19) (0.23)
- --------------------------------------------------------- -------- -------- -------- -------- -------- --------
Net asset value, end of period $ 8.34 $ 9.25 $ 8.21 $ 7.11 $ 6.35 $ 6.21
========================================================= ======== ======== ======== ======== ======== ========
Total return(b) 6.54% 16.93% 18.28% 16.06% 5.57% 2.48%
========================================================= ======== ======== ======== ======== ======== ========
Ratios and supplemental data:
Net assets, end of period (in 000's) $471,599 $483,307 $456,893 $383,966 $356,796 $359,242
========================================================= ======== ======== ======== ======== ======== ========
Ratio of net investment income to average net assets: 1.65%(c) 1.22% 2.09% 2.52% 3.20% 2.65%
========================================================= ======== ======== ======== ======== ======== ========
Ratio of expenses to average net assets: 2.27%(c) 2.30% 2.29% 2.31% 2.39% N/A
========================================================= ======== ======== ======== ======== ======== ========
Portfolio turnover rate 39% 92% 50% 39% 83% 117%
========================================================= ======== ======== ======== ======== ======== ========
</TABLE>
(a) These selected per share data were calculated based upon the average shares
outstanding during the period.
(b) Total return does not include sales charges and is not annualized for
periods less than one year.
(c) Ratios are annualized and based on average net assets of $485,919,748.
N/A Not Applicable.
13
<PAGE> 16
NOTE 9-FINANCIAL HIGHLIGHTS (CONTINUED)
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 C ADVISOR CLASS
----------------- ------------------------------------------------------------
YEAR ENDED OCTOBER 31, JUNE 1, 1995
MARCH 1, 1999 -------------------------------------------- TO
TO APRIL 30, OCTOBER 31,
APRIL 30, 1999(a) 1999(a) 1998(a) 1997(a) 1996 1995
----------------- --------- ------- ------- ------ -------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 8.05 $ 9.26 $ 8.20 $ 7.10 $ 6.35 $ 6.24
- ------------------------------------------------ ------ ------ ------ ------ ------ ------
Income from investment operations:
Net investment income (loss) 0.03 0.12 0.21 0.23 0.23 0.11
- ------------------------------------------------ ------ ------ ------ ------ ------ ------
Net realized and unrealized gain (loss) on
investments 0.28 0.49 1.25 1.13 0.82 0.13
- ------------------------------------------------ ------ ------ ------ ------ ------ ------
Net increase (decrease) from investment
operations 0.31 0.61 1.46 1.36 1.05 0.24
- ------------------------------------------------ ------ ------ ------ ------ ------ ------
Distributions to shareholders:
From net investment income (0.03) (0.11) (0.16) (0.24) (0.26) (0.13)
- ------------------------------------------------ ------ ------ ------ ------ ------ ------
From net realized gain on investments -- (1.43) (0.24) (0.02) (0.04) --
- ------------------------------------------------ ------ ------ ------ ------ ------ ------
Total distributions (0.03) (1.54) (0.40) (0.26) (0.30) (0.13)
- ------------------------------------------------ ------ ------ ------ ------ ------ ------
Net asset value, end of period $ 8.33 $ 8.33 $ 9.26 $ 8.20 $ 7.10 $ 6.35
================================================ ====== ====== ====== ====== ====== ======
Total return(b) 3.87% 6.87% 18.27% 19.23% 17.19% 3.83%
================================================ ====== ====== ====== ====== ====== ======
Ratios and supplemental data:
Net assets, end of period (in 000's) $ 850 $5,927 $7,239 $3,057 $3,085 $ 944
================================================ ====== ====== ====== ====== ====== ======
Ratio of net investment income to average net
assets: 1.65%(c) 2.65%(c) 2.22% 3.09% 3.52% 4.20%(d)
================================================ ====== ====== ====== ====== ====== ======
Ratio of expenses to average net assets: 2.27%(c) 1.28%(c) 1.30% 1.29% 1.31% 1.39%(d)
================================================ ====== ====== ====== ====== ====== ======
Portfolio turnover rate 39% 39% 92% 50% 39% 83%
================================================ ====== ====== ====== ====== ====== ======
</TABLE>
(a) These selected per share data were calculated based upon the average shares
outstanding during the period.
(b) Total return does not include sales charges and is not annualized for
periods less than one year.
(c) Ratios are annualized and based on average net assets of $459,635 and
$6,263,835 for Class C and Advisor Class, respectively.
(d) Annualized.
N/A Not Applicable.
14
<PAGE> 17
<TABLE>
<CAPTION>
BOARD OF TRUSTEES OFFICERS OFFICE OF THE FUND
<S> <C> <C>
C. Derek Anderson Robert H. Graham 11 Greenway Plaza
President, Plantagenet Capital Chairman and President Suite 100
Management, LLC (an investment Houston, TX 77046
partnership); Chief Executive Officer, Dana R. Sutton
Plantagenet Holdings, Ltd. Vice President and Treasurer INVESTMENT MANAGER
(an investment banking firm)
Samuel D. Sirko A I M Advisors, Inc.
Frank S. Bayley Vice President and Secretary 11 Greenway Plaza
Partner, law firm of Suite 100
Baker & McKenzie Melville B. Cox Houston, TX 77046
Vice President
Robert H. Graham SUB-ADVISOR
President and Chief Executive Officer, Gary T. Crum
A I M Management Group Inc. Vice President INVESCO Asset Management Ltd.
11 Devonshire Square
Arthur C. Patterson Carol F. Relihan London EC2M 4YR
Managing Partner, Accel Partners Vice President England
(a venture capital firm)
Mary J. Benson TRANSFER AGENT
Ruth H. Quigley Assistant Vice President and
Private Investor Assistant Treasurer A I M Fund Services, Inc.
P.O. Box 4739
Sheri Morris Houston, TX 77210-4739
Assistant Vice President and
Assistant Treasurer CUSTODIAN
Nancy L. Martin State Street Bank and Trust Company
Assistant Secretary 225 Franklin Street
Boston, MA 02110
Ofelia M. Mayo
Assistant Secretary COUNSEL TO THE FUND
Kathleen J. Pflueger Kirkpatrick & Lockhart LLP
Assistant Secretary 1800 Massachusetts Avenue, N.W.
Washington, D.C. 20036-1800
COUNSEL TO THE TRUSTEES
Paul, Hastings, Janofsky & Walker LLP
Twenty Third Floor
555 South Flower Street
Los Angeles, CA 90071
DISTRIBUTOR
A I M Distributors, Inc.
11 Greenway Plaza
Suite 100
Houston, TX 77046
</TABLE>
15
<PAGE> 18
[THIS PAGE INTENTIONALLY LEFT BLANK]
16
<PAGE> 19
SEMIANNUAL REPORT / MANAGERS' OVERVIEW
HOW AIM MAKES INVESTING
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-----------------------------
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-----------------------------
AIM GLOBAL GROWTH & INCOME FUND
<PAGE> 20
THE AIM FAMILY OF FUNDS--Registered Trademark--
<TABLE>
<S> <C> <C>
GROWTH FUNDS MONEY MARKET FUNDS A I M Management Group Inc. has provided
AIM Aggressive Growth Fund(1) AIM Money Market Fund leadership in the mutual-fund industry
AIM Blue Chip Fund AIM Tax-Exempt Cash Fund since 1976 and managed approximately
AIM Capital Development Fund $112 billion in assets for more than 6.3
AIM Constellation Fund INTERNATIONAL GROWTH FUNDS million shareholders, including
AIM Dent Demographic Trends Fund AIM Advisor International Value Fund individual investors, corporate clients
AIM Large Cap Growth Fund AIM Asian Growth Fund and financial institutions as of March
AIM Mid Cap Equity Fund(2),(A) AIM Developing Markets Fund(2) 31, 1999.
AIM Select Growth Fund(3) AIM Europe Growth Fund(2) The AIM Family of Funds--Registered
AIM Small Cap Growth Fund(2),(B) AIM European Development Fund Trademark-- is distributed nationwide,
AIM Small Cap Opportunities Fund AIM International Equity Fund and AIM today is the 10th-largest
AIM Value Fund AIM Japan Growth Fund(2) mutual-fund complex in the United States
AIM Weingarten Fund AIM Latin American Growth Fund(2) in assets under management, according to
AIM New Pacific Growth Fund(2) Strategic Insight, an independent
GROWTH & INCOME FUNDS mutual-fund monitor.
AIM Advisor Flex Fund GLOBAL GROWTH FUNDS
AIM Advisor Large Cap Value Fund AIM Global Aggressive Growth Fund
AIM Advisor Real Estate Fund AIM Global Growth Fund
AIM Balanced Fund
AIM Basic Value Fund(2),(C) GLOBAL GROWTH & INCOME FUNDS
AIM Charter Fund AIM Global Growth & Income Fund(2)
AIM Global Utilities Fund
INCOME FUNDS
AIM Floating Rate Fund(2) GLOBAL INCOME FUNDS
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AIM High Yield Fund II AIM Global Government Income Fund(2)
AIM Income Fund AIM Global Income Fund
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AIM Limited Maturity Treasury Fund
THEME FUNDS
TAX-FREE INCOME FUNDS AIM Global Consumer Products and Services Fund(2)
AIM High Income Municipal Fund AIM Global Financial Services Fund(2)
AIM Municipal Bond Fund AIM Global Health Care Fund(2)
AIM Tax-Exempt Bond Fund of Connecticut AIM Global Infrastructure Fund(2)
AIM Tax-Free Intermediate Fund AIM Global Resources Fund(2)
AIM Global Telecommunications and Technology Fund(2),(E)
AIM Global Trends Fund(2),(F)
</TABLE>
(1) AIM Aggressive Growth Fund reopened to new investors November 16, 1998.
(2) Effective May 29, 1998, A I M Advisors, Inc. became advisor to the former GT
Global Funds. (3) On May 1, 1998, AIM Growth Fund was renamed AIM Select Growth
Fund. (A) On September 8, 1998, AIM Mid Cap Growth Fund was renamed AIM Mid Cap
Equity Fund. (B) On September 8, 1998, AIM Small Cap Equity Fund was renamed AIM
Small Cap Growth Fund. (C) On September 8, 1998, AIM America Value Fund was
renamed AIM Basic Value Fund. (D) On September 8, 1998, AIM Global High Income
Fund was renamed AIM Emerging Markets Debt Fund. (E) On June 1, 1999, AIM Global
Telecommunications Fund was renamed AIM Global Telecommunications and Technology
Fund. (F) On September 8, 1998, AIM New Dimension Fund was renamed AIM Global
Trends Fund. For more complete information about any AIM Fund(s), including
sales charges and expenses, ask your financial consultant or securities dealer
for a free prospectus(es). Please read the prospectus(es) carefully before you
invest or send money.
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