<PAGE> 1
SCHEDULE OF INVESTMENTS
APRIL 30, 2000
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT(a) VALUE
<S> <C> <C>
CORPORATE BONDS & NOTES-10.53%
AUSTRALIA-1.67%
KFW International Finance
(Investment
Banking/Brokerage), Gtd.
Unsec. Unsub. Bonds, 7.25%,
07/16/07(b) AUD 3,100,000 $ 1,831,645
---------------------------------------------------------------
SWITZERLAND-3.06%
UBS Jersey
(Financial-Diversified), Sub.
Bonds, 8.75%, 06/20/05(b) GBP 2,000,000 3,361,561
---------------------------------------------------------------
TUNISIA-3.81%
Banque Cent de Tunisie
(Banks-Money Center), Unsec.
Yankee Bonds, 8.25%, 09/19/27 4,750,000 4,191,875
---------------------------------------------------------------
UNITED STATES-1.99%
Capital One Financial Corp.
(Consumer Finance), Unsec.
Notes, 7.25%, 05/01/06 850,000 778,320
---------------------------------------------------------------
Heller Financial, Inc.
(Financial- Diversified),
Notes, 7.38%, 11/01/09(c) 700,000 658,175
---------------------------------------------------------------
Occidental Petroleum Corp. (Oil-
International Integrated), Sr.
Unsec. Notes, 7.38%, 11/15/08 800,000 755,640
---------------------------------------------------------------
2,192,135
---------------------------------------------------------------
Total Corporate Bonds &
Notes (Cost $12,841,397) 11,577,216
---------------------------------------------------------------
GOVERNMENT BONDS & NOTES-57.18%
CANADA-4.56%
Canadian Government, Bonds,
6.00%, 06/01/08(b) CAD 7,520,000 5,020,394
---------------------------------------------------------------
DENMARK-5.42%
Kingdom of Denmark, Bonds,
7.00%, 11/10/24(b) DKK 42,300,000 5,966,885
---------------------------------------------------------------
GERMANY-9.57%
Bundesrepublik Deutschland,
Bonds,
6.00%, 01/05/06(b) EUR 11,150,000 10,521,038
---------------------------------------------------------------
GREECE-7.73%
Hellenic Republic, Bonds,
6.00%, 05/19/10(b) EUR 2,400,000 2,211,570
---------------------------------------------------------------
9.20%, 03/21/02(b) GRD 2,210,000,000 6,291,182
---------------------------------------------------------------
8,502,752
---------------------------------------------------------------
ITALY-11.32%
Buoni Poliennali del Tesoro,
Bonds, 7.25%, 11/01/26(b) EUR 7,000,000 7,508,388
---------------------------------------------------------------
Deb., 8.50%, 01/01/04(b) EUR 4,890,000 4,945,413
---------------------------------------------------------------
12,453,801
---------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT(a) VALUE
<S> <C> <C>
JAPAN-8.65%
European Investment Bank, Notes,
4.63%, 02/26/03(b) JPY 450,000,000 $ 4,637,657
---------------------------------------------------------------
World Bank, Unsec. Unsub Bonds,
4.75%, 12/20/04(b) JPY 450,000,000 4,877,690
---------------------------------------------------------------
9,515,347
---------------------------------------------------------------
UNITED KINGDOM-7.35%
United Kingdom Treasury, Gtd.
Bonds,
9.00%, 10/13/08(b) GBP 4,190,000 8,079,606
---------------------------------------------------------------
URUGUAY-2.58%
Republica Orient Uruguay, Unsec.
Yankee Bonds, 7.88%, 07/15/27 3,000,000 2,842,500
---------------------------------------------------------------
Total Government Bonds &
Notes (Cost $76,210,986) 62,902,323
---------------------------------------------------------------
ASSET-BACKED SECURITIES-9.17%
BANKS (MONEY CENTER)-3.17%
First USA Credit Card Master
Trust, Sub. Series
1998-3-Class C, Floating Rate
Notes, 6.55%, 02/18/04(d) 3,500,000 3,487,422
---------------------------------------------------------------
REAL ESTATE INVESTMENT
TRUST-1.47%
Contimortgage Home Equity Loan
Trust, Sub. Series
1999-2-Class B, Notes, 8.50%,
04/25/29(d) 2,000,000 1,617,500
---------------------------------------------------------------
RETAIL (HOME SHOPPING)-4.53%
Fingerhut Master Trust, Sub.
Series 1998-1-Class C,
Floating Rate Notes, 6.93%,
02/15/05(d) 5,000,000 4,983,593
---------------------------------------------------------------
Total Asset-Backed
Securities (Cost
$10,260,951) 10,088,515
---------------------------------------------------------------
U.S. GOVERNMENT AGENCY
SECURITIES-10.90%
FEDERAL HOME LOAN MORTGAGE CORP.
("FHLMC")-0.78%
Pass Through Ctfs.,
8.50%, 03/01/10 840,049 858,160
---------------------------------------------------------------
FEDERAL NATIONAL MORTGAGE
ASSOCIATION ("FNMA")-10.12%
Pass Through Ctfs.-TBA
8.00%, 05/01/30(e) 7,000,000 6,994,429
---------------------------------------------------------------
Sr. Unsub. Notes,
6.38%, 08/15/07(b) AUD 7,285,000 4,140,008
---------------------------------------------------------------
11,134,437
---------------------------------------------------------------
Total U.S. Government Agency
Securities (Cost
$12,286,309) 11,992,597
---------------------------------------------------------------
</TABLE>
4
<PAGE> 2
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT(a) VALUE
<S> <C> <C>
U.S. TREASURY SECURITIES-14.08%
U.S. TREASURY NOTES-14.08%
5.63%, 02/28/01(f) 5,400,000 $ 5,368,302
---------------------------------------------------------------
6.50%, 02/28/02 5,000,000 4,984,500
---------------------------------------------------------------
5.63%, 05/15/08 5,400,000 5,132,808
---------------------------------------------------------------
15,485,610
---------------------------------------------------------------
Total U.S. Treasury
Securities (Cost
$15,710,578) 15,485,610
---------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
MONEY MARKET FUNDS-3.04%
STIC Liquid Assets Portfolio(g) 1,673,856 $ 1,673,856
---------------------------------------------------------------
STIC Prime Portfolio(g) 1,673,856 1,673,856
---------------------------------------------------------------
Total Money Market Funds
(Cost $3,347,712) 3,347,712
---------------------------------------------------------------
TOTAL INVESTMENTS-104.90% (Cost
$130,657,933) 115,393,973
---------------------------------------------------------------
LIABILITIES LESS OTHER
ASSETS-(4.90%) (5,395,124)
---------------------------------------------------------------
NET ASSETS-100.00% $109,998,849
---------------------------------------------------------------
</TABLE>
Investment Abbreviations:
AUD - Australian Dollar
CAD - Canadian Dollars
Ctfs. - Certificates
Deb. - Debentures
DKK - Danish Krona
EUR - Euro
GBP - British Pound Sterling
GRD - Greek Drachma
Gtd. - Guaranteed
JPY - Japanese Yen
Sec. - Secured
Sr. - Senior
Sub. - Subordinated
TBA - To Be Announced
Unsec. - Unsecured
Unsub. - Unsubordinated
Notes to Schedule of Investments:
(a) Principal amount is in U.S. dollars except as indicated by note(b).
(b) Foreign denominated security. Par value is denominated in currency
indicated.
(c) Represents a security sold under Rule 144A, which is exempt from
registration and may be resold to qualified institutional buyers in
accordance with the provisions of Rule 144A under the Securities Act of
1933, as amended.
(d) The coupon rate shown on floating rate note represents rate at period end.
(e) Security purchased on a forward commitment basis. These securities are
subject to dollar roll transactions. See Note 1 Section G.
(f) The principal balance was pledged as collateral to cover securities
purchased on a forward commitment basis.
(g) The money market fund has the same investment advisor as the Fund.
See Notes to Financial Statements.
5
<PAGE> 3
STATEMENT OF ASSETS AND LIABILITIES
April 30, 2000
(Unaudited)
<TABLE>
<S> <C>
ASSETS:
Investments, at market value (cost
$130,657,933) $115,393,973
------------------------------------------------------------
Foreign currencies, at value (cost $299,548) 294,158
------------------------------------------------------------
Receivables for:
Fund shares sold 12,919
------------------------------------------------------------
Dividends and interest 1,993,053
------------------------------------------------------------
Other assets 22,156
------------------------------------------------------------
Total assets 117,716,259
------------------------------------------------------------
LIABILITIES:
Payables for:
Investments purchased 7,079,747
------------------------------------------------------------
Fund shares reacquired 311,593
------------------------------------------------------------
Accrued advisory fees 67,099
------------------------------------------------------------
Accrued accounting services fees 4,098
------------------------------------------------------------
Accrued distribution fees 71,174
------------------------------------------------------------
Accrued trustees' fees 761
------------------------------------------------------------
Accrued operating expenses 182,938
------------------------------------------------------------
Total liabilities 7,717,410
------------------------------------------------------------
Net assets applicable to shares outstanding $109,998,849
------------------------------------------------------------
NET ASSETS:
Class A $ 66,291,697
------------------------------------------------------------
Class B $ 43,500,772
------------------------------------------------------------
Class C $ 206,380
------------------------------------------------------------
SHARES OUTSTANDING, $0.01 PAR VALUE PER SHARE:
Class A 8,685,024
------------------------------------------------------------
Class B 5,696,797
------------------------------------------------------------
Class C 27,043
------------------------------------------------------------
Class A:
Net asset value and redemption price per
share $ 7.63
------------------------------------------------------------
Offering price per share:
(Net asset value of $7.63 divided by
95.25%) $ 8.01
------------------------------------------------------------
Class B:
Net asset value and offering price per share $ 7.64
------------------------------------------------------------
Class C:
Net asset value and offering price per share $ 7.63
------------------------------------------------------------
</TABLE>
STATEMENT OF OPERATIONS
For the six months ended April 30, 2000
(Unaudited)
<TABLE>
<S> <C>
INVESTMENT INCOME:
Interest $ 3,873,333
------------------------------------------------------------
Dividend 260,212
------------------------------------------------------------
Securities lending 1,147
------------------------------------------------------------
Total investment income 4,134,692
------------------------------------------------------------
EXPENSES:
Advisory and administrative fees 447,635
------------------------------------------------------------
Accounting services fees 24,863
------------------------------------------------------------
Custodian fees 58,280
------------------------------------------------------------
Distribution fees -- Class A 131,926
------------------------------------------------------------
Distribution fees -- Class B 238,755
------------------------------------------------------------
Distribution fees -- Class C 1,205
------------------------------------------------------------
Transfer agent fees 183,688
------------------------------------------------------------
Trustees' fees 4,054
------------------------------------------------------------
Other 38,528
------------------------------------------------------------
Total expenses 1,128,934
------------------------------------------------------------
Less: Expenses paid indirectly (57)
------------------------------------------------------------
Net expenses 1,128,877
------------------------------------------------------------
Net investment income 3,005,815
------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) FROM
INVESTMENT SECURITIES, FOREIGN CURRENCIES AND
FORWARD CURRENCY CONTRACTS:
Net realized gain (loss) from:
Investment securities (3,664,206)
------------------------------------------------------------
Foreign currencies 28,171
------------------------------------------------------------
Forward currency contracts (83,051)
------------------------------------------------------------
(3,719,086)
------------------------------------------------------------
Change in net unrealized appreciation
(depreciation) of:
Investment securities (4,432,722)
------------------------------------------------------------
Foreign currencies (425,956)
------------------------------------------------------------
Forward currency contracts 20,290
------------------------------------------------------------
(4,838,388)
------------------------------------------------------------
Net gain (loss) from investment securities,
foreign currencies and forward currency
contracts (8,557,474)
------------------------------------------------------------
Net increase (decrease) in net assets resulting
from operations $(5,551,659)
------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
6
<PAGE> 4
STATEMENTS OF CHANGES IN NET ASSETS
For the six months ended April 30, 2000 and the year ended October 31, 1999
(Unaudited)
<TABLE>
<CAPTION>
APRIL 30, OCTOBER 31,
2000 1999
------------- -------------
<S> <C> <C>
OPERATIONS:
Net investment income $ 3,005,815 $ 7,833,568
--------------------------------------------------------------------------------------------
Net realized gain (loss) from investment securities,
foreign currencies and forward currency contracts (3,719,086) (3,033,537)
--------------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) of
investment securities, foreign currencies and forward
currency contracts (4,838,388) (12,066,381)
--------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
operations (5,551,659) (7,266,350)
--------------------------------------------------------------------------------------------
Distributions to shareholders from net investment income:
Class A (1,990,061) (5,214,153)
--------------------------------------------------------------------------------------------
Class B (1,084,608) (3,093,713)
--------------------------------------------------------------------------------------------
Class C (5,462) (5,619)
--------------------------------------------------------------------------------------------
Advisor Class* (2,670) (24,763)
--------------------------------------------------------------------------------------------
Share transactions-net:
Class A (14,123,376) (26,367,395)
--------------------------------------------------------------------------------------------
Class B (8,993,103) (29,686,097)
--------------------------------------------------------------------------------------------
Class C (19,980) 255,619
--------------------------------------------------------------------------------------------
Advisor Class* (197,491) (170,615)
--------------------------------------------------------------------------------------------
Net increase (decrease) in net assets (31,968,410) (71,573,086)
--------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 141,967,259 213,540,345
--------------------------------------------------------------------------------------------
End of period $ 109,998,849 $ 141,967,259
--------------------------------------------------------------------------------------------
NET ASSETS CONSIST OF:
Shares of beneficial interest $ 259,317,230 $ 282,651,180
--------------------------------------------------------------------------------------------
Undistributed net investment income 392,708 469,694
--------------------------------------------------------------------------------------------
Undistributed net realized gain (loss) from investment
securities, foreign currencies and forward currency
contracts (134,351,058) (130,631,972)
--------------------------------------------------------------------------------------------
Unrealized appreciation (depreciation) of investment
securities, foreign currencies and forward currency
contracts (15,360,031) (10,521,643)
--------------------------------------------------------------------------------------------
$ 109,998,849 $ 141,967,259
--------------------------------------------------------------------------------------------
</TABLE>
* Advisor Class shares were converted to Class A shares effective as of the
close of business on February 11, 2000.
See Notes to Financial Statements.
7
<PAGE> 5
NOTES TO FINANCIAL STATEMENTS
April 30, 2000
(Unaudited)
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES
AIM Global Government 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
(the "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 three different classes of
shares: Class A shares, Class B shares and Class C shares. The Fund formerly
offered Advisor Class shares; however, as of the close of business on February
11, 2000 the Advisor Class shares were converted to Class A 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 were 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 high current income, and its secondary
investment objective is growth of capital and protection of principal.
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenses during
the reporting period. Actual results could differ from those estimates. The
following is a summary of the significant accounting policies followed by the
Fund in the preparation of its financial statements.
A. Security Valuations -- A security listed or traded on an exchange (except
convertible bonds) is valued at its last sales price as of the close of the
customary trading session on the exchange where the security is principally
traded, or lacking any sales on a particular day, the security is valued at
the closing bid price on that day. Each security reported on the NASDAQ
National Market System is valued at the last sales price on the valuation
date or absent a last sales price, at the closing bid price. Debt obligations
(including convertible bonds) are valued on the basis of prices provided by
an independent pricing service. Prices provided by the pricing service may be
determined without exclusive reliance on quoted prices, and may reflect
appropriate factors such as yield, type of issue, coupon rate and maturity
date. Securities for which market prices are not provided by any of the above
methods are valued based upon quotes furnished by independent sources and are
valued at the last bid price in the case of equity securities and in the case
of debt obligations, the mean between the last bid and asked prices.
Securities for which market quotations are not readily available or are
questionable are valued at fair value as determined in good faith by or under
the supervision of the 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 at amortized cost which approximates market value. For
purposes of determining net asset value per share, futures and option
contracts generally will be valued 15 minutes after the close of the
customary trading session of the New York Stock Exchange ("NYSE").
Generally, trading in foreign securities is substantially completed each day
at various times prior to the close of the NYSE. The values of such securities
used in computing the net asset value of the Fund's shares are determined as
of such times. Foreign currency exchange rates are also generally determined
prior to the close of the NYSE. Occasionally, events affecting the values of
such securities and such exchange rates may occur between the times at which
they are determined and the close of the customary trading session of the NYSE
which would not be reflected in the computation of the Fund's net asset value.
If events materially affecting the value of such securities occur during such
period, then these securities will be valued at their fair value as determined
in good faith by or under the supervision of the Board of Trustees.
B. Securities Transactions and Investment Income -- Securities transactions are
accounted for on a trade date basis. Realized gains or losses on sales are
computed on the basis of specific identification of the securities sold.
Interest income is recorded as earned from settlement date and is recorded on
the accrual basis. Dividend income is recorded on the ex-dividend date. The
Fund is projected to incur a tax return of capital during its current fiscal
year.
C. Distributions -- Distributions from income are recorded on ex-dividend date,
and are declared and paid monthly. Distributions from net realized capital
gains, if any, are generally paid annually and recorded on ex-dividend date.
The Fund may elect to use a portion of the proceeds of capital stock
redemptions as distributions for federal income tax purposes.
D. Federal Income Taxes -- The Fund intends to comply with the requirements of
the Internal Revenue Code necessary to qualify as a regulated investment
company and, as such, will not be subject to federal income taxes on
otherwise taxable income (including net realized capital gains) which is
distributed to shareholders. Therefore, no provision for federal income taxes
is recorded in the financial statements. The Fund has a capital loss
carryforward of $130,001,314 which may be carried forward to offset future
taxable gains, if any, which expires, if not previously utilized, in the year
2007.
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
8
<PAGE> 6
transactions. The Fund does not separately account for that portion of the
results of operations resulting from changes in foreign exchange rates on
investments and the fluctuations arising from changes in market prices of
securities held. Such fluctuations are included with the net realized and
unrealized gain or loss from investments.
F. Foreign Currency Contracts -- A foreign currency contract is an obligation to
purchase or sell a specific currency for an agreed-upon price at a future
date. The Fund may enter into a foreign currency contract to attempt to
minimize the risk to the Fund from adverse changes in the relationship
between currencies. The Fund may also enter into a foreign currency contract
for the purchase or sale of a security denominated in a foreign currency in
order to "lock in" the U.S. dollar price of that security. The Fund could be
exposed to risk if counterparties to the contracts are unable to meet the
terms of their contracts or if the value of the foreign currency changes
unfavorably.
G. Mortgage Dollar Rolls -- The Fund may engage in dollar roll transactions with
respect to mortgage backed securities issued by GNMA, FNMA and FHLMC. In a
dollar roll transaction, the Fund sells a mortgage backed security held in
the Fund to a financial institution such as a bank or broker-dealer, and
simultaneously agrees to repurchase a substantially similar security (same
type, coupon and maturity) from the institution at a later date at an agreed
upon price. The mortgage backed securities that are repurchased will bear the
same interest rate as those sold, but generally will be collateralized by
different pools of mortgages with prepayment histories. During the period
between the sale and repurchase, the Fund will not be entitled to receive
interest and principal payments on securities sold. Proceeds of the sale will
be invested in short-term instruments, and the income from these investments,
together with any additional fee income received on the sale, could generate
income for the Fund exceeding the yield on the security sold.
Dollar roll transactions involve the risk that the market value of the
securities retained by the Fund may decline below the price of the securities
that the Fund has sold but is obligated to repurchase under the agreement. In
the event the buyer of securities in a dollar roll transaction files for
bankruptcy or becomes insolvent, the Fund's use of the proceeds from the sale
of the securities may be restricted pending a determination by the other
party, or its trustee or receiver, whether to enforce the Fund's obligation
to repurchase the securities.
H. Expenses -- Distribution expenses directly attributable to a class of shares
are charged to that class' operations. All other expenses which are
attributable to more than one class are allocated among the classes.
I. 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 fluctuations, perceived credit risk,
adverse political and economic developments and possible adverse foreign
government intervention.
J. 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.
The Fund pays AIM investment management and administration fees at an annual
rate of 0.725% on the first $500 million of the Fund's average daily net assets,
plus 0.70% on the next $1 billion of the Fund's average daily net assets, plus
0.675% on the next $1 billion of the Fund's average daily net assets, plus 0.65%
on the Fund's average daily net assets exceeding $2.5 billion. AIM has
contractually agreed to limit the Fund's expenses (excluding interest, taxes,
dividends on short sales, extraordinary items and increases in expenses due to
offset arrangements, if any) to the maximum annual rate of 1.75%, 2.40% and
2.40% of the average daily net assets of the Fund's Class A, Class B and Class C
shares, respectively.
The Fund, pursuant to a master administrative services agreement with AIM, has
agreed to pay AIM for certain administrative costs incurred in providing
accounting services to the Fund. For the six months ended April 30, 2000, AIM
was paid $24,863 for such services.
The Fund, pursuant to a transfer agency and service agreement, has agreed to
pay A I M Fund Services, Inc. ("AFS") a fee for providing transfer agency and
shareholder services to the Fund. For the six months ended April 30, 2000, AFS
was paid $95,488 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 and Class C shares of the Fund. The Trust has adopted plans
pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund's Class A
shares, Class B shares and Class C shares (collectively the "Plans"). The Fund,
pursuant to the Plans, pays AIM Distributors compensation at the annual rate of
0.35% of the Fund's average daily net assets of Class A shares and 1.00% of the
average daily net assets of Class B and C shares. Of these amounts, the Fund may
pay a service fee of 0.25% of the average daily net assets of the Class A, Class
B or Class C shares to selected dealers and financial institutions who furnish
continuing personal shareholder services to their customers who purchase and own
the appropriate class of shares of the Fund. Any amounts not paid as a service
fee under the Plans would constitute an asset-based sales charge. The Plans also
impose a cap on the total sales charges, including asset-based sales charges
that may be paid by the respective classes. For the six months ended April 30,
2000, the Class A, Class B and Class C shares paid AIM Distributors $131,926,
$238,755 and $1,205, respectively, as compensation under the Plans.
9
<PAGE> 7
AIM Distributors received commissions of $3,679 from sales of the Class A
shares of the Fund during the six months ended April 30, 2000. 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,
2000, AIM Distributors received $15,010 in contingent deferred sales charges
imposed on redemptions of Fund shares.
Certain officers and trustees of the Trust are officers and directors of AIM,
AFS and AIM Distributors.
NOTE 3-INDIRECT EXPENSES
During the six months ended April 30, 2000, the Fund received reductions in
custodian fees of $57 under an expense offset arrangement. The effect of the
above arrangement resulted in a reduction of the Fund's total expenses of $57
during the six months ended April 30, 2000.
NOTE 4-BANK BORROWINGS
The Fund is a participant in a committed line of credit facility with a
syndicate administered by The Chase Manhattan Bank. The Fund may borrow up to
the lesser of (i) $1,000,000,000 or (ii) the limits set by its prospectus for
borrowings. The Fund and other funds advised by AIM which are parties to the
line of credit may borrow on a first come, first served basis. During the six
months ended April 30, 2000, the Fund did not borrow under the line of credit
agreement. The funds which are party to the line of credit are charged a
commitment fee of 0.09% on the unused balance of the committed line. The
commitment fee is allocated among the funds based on their respective average
net assets for the period.
NOTE 5-PORTFOLIO SECURITIES LOANED
The Fund may lend portfolio securities to the extent of one-third of the Fund's
total assets. Such loans would be secured by collateral equal to no less than
the market value, determined daily, of the loaned securities. Such collateral
will be cash or debt securities issued or guaranteed by the U.S. Government or
any of its agencies. Cash collateral pursuant to these loans would be invested
in short-term money market instruments or affiliated money market funds. Lending
securities entails a risk of loss to the Fund if and to the extent that the
market value of the securities loaned were to increase and the lender did not
increase the collateral accordingly.
At April 30, 2000, there were no securities on loan to brokers. For the six
months ended April 30, 2000, the Fund received fees of $1,147 for securities
lending.
NOTE 6-INVESTMENT SECURITIES
The aggregate amount of investment securities (other than short-term securities)
purchased and sold by the Fund during the six months ended April 30, 2000 was
$89,169,128 and $99,382,818, respectively.
The amount of unrealized appreciation (depreciation) of investment securities,
for tax purposes, as of April 30, 2000 is as follows:
<TABLE>
<S> <C>
Aggregate unrealized appreciation of
investment securities $ 101,260
------------------------------------------------------------
Aggregate unrealized (depreciation) of
investment securities (15,648,065)
------------------------------------------------------------
Net unrealized appreciation (depreciation) of
investment securities $(15,546,805)
------------------------------------------------------------
Cost of investments for tax purposes is
$130,940,778.
</TABLE>
NOTE 7-SHARE INFORMATION
Changes in shares outstanding during the six months ended April 30, 2000 and the
year ended October 31, 1999 were as follows:
<TABLE>
<CAPTION>
APRIL 30, 2000 OCTOBER 31, 1999
-------------------------- ----------------------------
SHARES AMOUNT SHARES AMOUNT
---------- ------------ ----------- -------------
<S> <C> <C> <C> <C>
Sold:
Class A 150,125 $ 1,203,282 10,753,759 $ 95,017,270
------------------------------------------------------------------------------------------------------------------------
Class B 728,653 5,771,650 1,683,644 14,905,906
------------------------------------------------------------------------------------------------------------------------
Class C* 11,639 91,818 28,983 250,000
------------------------------------------------------------------------------------------------------------------------
Advisor Class** 2,524 20,007 56,528 507,460
------------------------------------------------------------------------------------------------------------------------
Issued as reinvestment of dividends:
Class A 163,455 1,296,086 385,899 3,327,811
------------------------------------------------------------------------------------------------------------------------
Class B 83,309 660,787 217,787 1,880,996
------------------------------------------------------------------------------------------------------------------------
Class C* 671 5,315 677 5,619
------------------------------------------------------------------------------------------------------------------------
Advisor Class** 264 2,129 2,482 21,819
------------------------------------------------------------------------------------------------------------------------
Conversion of Advisor Class shares to Class A shares***:
Class A 23,484 183,877 -- --
------------------------------------------------------------------------------------------------------------------------
Advisor Class (23,394) (183,877) -- --
------------------------------------------------------------------------------------------------------------------------
Reacquired:
Class A (2,114,327) (16,806,621) (14,190,581) (124,712,476)
------------------------------------------------------------------------------------------------------------------------
Class B (1,936,310) (15,425,540) (5,321,253) (46,472,999)
------------------------------------------------------------------------------------------------------------------------
Class C* (14,927) (117,113) -- --
------------------------------------------------------------------------------------------------------------------------
Advisor Class** (4,464) (35,750) (80,666) (699,894)
------------------------------------------------------------------------------------------------------------------------
(2,929,298) $(23,333,950) (6,462,741) $ (55,968,488)
------------------------------------------------------------------------------------------------------------------------
</TABLE>
* Class C shares commenced sales on March 1, 1999.
** Advisor Class share activity for the period November 1, 1999 through
February 11, 2000 (date of conversion).
*** Effective as of the close of business February 11, 2000, pursuant to
approval by the Board of Trustees on November 3, 1999, all outstanding
shares of Advisor Class shares were converted to Class A shares of the
fund.
10
<PAGE> 8
NOTE 8-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, -------------------------------------------------------
2000 1999(a) 1998(a) 1997(a) 1996(a) 1995(a)
---------------- ------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 8.19 $ 8.97 $ 8.62 $ 8.74 $ 8.81 $ 8.63
---------------------------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income 0.21 0.41 0.54 0.52 0.57 0.62
---------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on
investments (0.56) (0.76) 0.32 (0.13) 0.03 0.15
---------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations (0.35) (0.35) 0.86 0.39 0.60 0.77
---------------------------------------------------------------------------------------------------------------------------------
Distributions to shareholders:
From net investment income (0.21) (0.43) (0.16) (0.31) (0.57) (0.59)
---------------------------------------------------------------------------------------------------------------------------------
From net realized gain on investments -- -- -- -- (0.10) --
---------------------------------------------------------------------------------------------------------------------------------
In excess of net investment income -- -- (0.35) (0.20) -- --
---------------------------------------------------------------------------------------------------------------------------------
Total distributions (0.21) (0.43) (0.51) (0.51) (0.67) (0.59)
---------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 7.63 $ 8.19 $ 8.97 $ 8.62 $ 8.74 $ 8.81
---------------------------------------------------------------------------------------------------------------------------------
Total return(b) (4.34)% (3.97)% 10.20% 4.78% 7.11% 9.22%
---------------------------------------------------------------------------------------------------------------------------------
Ratios and supplemental data:
Net assets, end of period (000s omitted) $66,292 $85,669 $121,268 $154,272 $240,945 $385,404
---------------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets including
interest expense 1.58%(c) 1.53% 1.81% 1.51% 1.39% 1.38%
---------------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets excluding
interest expense 1.58%(c) 1.49% 1.52% 1.51% 1.39% 1.38
---------------------------------------------------------------------------------------------------------------------------------
Ratio of interest expense to average net assets -- 0.04% 0.29% -- -- --
---------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income to average net assets 5.12%(c) 4.72% 6.06% 6.04% 6.52% 6.98%
---------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 74% 110% 305% 241% 268% 385%
---------------------------------------------------------------------------------------------------------------------------------
</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 $75,800,672.
<TABLE>
<CAPTION>
CLASS B
--------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED OCTOBER 31,
APRIL 30, ------------------------------------------------------
2000 1999(a) 1998(a) 1997(a) 1996(a) 1995(a)
---------------- ------- ------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 8.19 $ 8.97 $ 8.62 $ 8.74 $ 8.80 $ 8.64
---------------------------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income 0.18 0.35 0.47 0.46 0.51 0.55
---------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on
investments (0.55) (0.75) 0.34 (0.12) 0.04 0.14
---------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations (0.37) (0.40) 0.81 0.34 0.55 0.69
---------------------------------------------------------------------------------------------------------------------------------
Distributions to shareholders:
From net investment income (0.18) (0.38) (0.11) (0.28) (0.51) (0.53)
---------------------------------------------------------------------------------------------------------------------------------
From net realized gain on investments -- -- -- -- (0.10) --
---------------------------------------------------------------------------------------------------------------------------------
In excess of net investment income -- -- (0.35) (0.18) -- --
---------------------------------------------------------------------------------------------------------------------------------
Total distributions (0.18) (0.38) (0.46) (0.46) (0.61) (0.53)
---------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 7.64 $ 8.19 $ 8.97 $ 8.62 $ 8.74 $ 8.80
---------------------------------------------------------------------------------------------------------------------------------
Total return(b) (4.70)% (4.62)% 9.65% 4.00% 6.54% 8.22%
---------------------------------------------------------------------------------------------------------------------------------
Ratios and supplemental data:
Net assets, end of period (000s omitted) $43,501 $55,849 $91,852 $127,722 $166,577 $235,481
---------------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets including
interest expense 2.23%(c) 2.18% 2.46% 2.16% 2.04% 2.03%
---------------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets excluding
interest expense 2.23%(c) 2.14% 2.17% 2.16% 2.04% 2.03%
---------------------------------------------------------------------------------------------------------------------------------
Ratio of interest expense to average net assets -- 0.04% 0.29% -- -- --
---------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income to average net assets 4.47%(c) 4.07% 5.41% 5.39% 5.87% 6.33%
---------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 74% 110% 305% 241% 268% 385%
---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(a) These selected per share data were calculated based upon average shares
outstanding during the period.
(b) Total return does not deduct contingent deferred sales charges and is not
annualized for periods less than one year.
(c) Ratios are annualized and based on average net assets of $48,013,435.
11
<PAGE> 9
NOTE 8-FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
CLASS C ADVISOR CLASS
---------------------------------- ----------------------------------------------------
MARCH 1,
1999
(DATE SALES NOVEMBER 1,
SIX MONTHS COMMENCED) 1999
ENDED TO TO YEAR ENDED OCTOBER 31,
APRIL 30, OCTOBER 31, FEBRUARY 11, -------------------------------------
2000 1999(a) 2000 1999(a) 1998(a) 1997(a) 1996(a)
----------------- -------------- ------------ ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 8.18 $ 8.63 $ 8.22 $ 9.00 $ 8.61 $ 8.73 $ 8.80
-----------------------------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income 0.18 0.20 0.12 0.45 0.56 0.55 0.60
-----------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain
(loss) on investments (0.55) (0.44) (0.37) (0.77) 0.37 (0.13) 0.03
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from
investment operations (0.37) (0.24) (0.25) (0.32) 0.93 0.42 0.63
-----------------------------------------------------------------------------------------------------------------------------------
Distributions to shareholders:
From net investment income (0.18) (0.21) (0.11) (0.46) (0.19) (0.33) (0.60)
-----------------------------------------------------------------------------------------------------------------------------------
From net realized gain on investments -- -- -- -- -- -- (0.10)
-----------------------------------------------------------------------------------------------------------------------------------
In excess of net investment income -- -- -- -- (0.35) (0.21) --
-----------------------------------------------------------------------------------------------------------------------------------
Total distributions (0.18) (0.21) (0.11) (0.46) (0.54) (0.54) (0.70)
-----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 7.63 $ 8.18 $ 7.86 $ 8.22 $ 9.00 $ 8.61 $ 8.73
-----------------------------------------------------------------------------------------------------------------------------------
Total return(b) (4.58)% (2.80)% (3.04)% (3.73)% 11.18% 5.15% 7.49%
-----------------------------------------------------------------------------------------------------------------------------------
Ratios and supplemental data:
Net assets, end of period (in 000's) $ 206 $ 243 $ -- $ 206 $ 421 $ 116 $ 86
-----------------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets
including interest expense 2.23%(c) 2.18%(d) 1.23%(c) 1.18% 1.46% 1.16% 1.04%
-----------------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets
excluding interest expense 2.23%(c) 2.14%(d) 1.23%(c) 1.14% 1.17% 1.16% 1.04%
-----------------------------------------------------------------------------------------------------------------------------------
Ratio of interest expense to average net
assets -- 0.04%(d) -- 0.04% 0.29% -- --
-----------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income to
average net assets 4.47%(c) 4.07%(d) 5.47%(c) 5.07% 6.41% 6.39% 6.87%
-----------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 74% 110% 74% 110% 305% 241% 268%
-----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
ADVISOR CLASS
--------------
JUNE 1,
1995
(DATE SALES
COMMENCED)
TO
OCTOBER 31,
1995(a)
--------------
<S> <C>
Net asset value, beginning of period $ 8.98
----------------------------------------
Income from investment operations:
Net investment income 0.26
----------------------------------------
Net realized and unrealized gain
(loss) on investments (0.19)
----------------------------------------
Net increase (decrease) from
investment operations 0.07
----------------------------------------
Distributions to shareholders:
From net investment income (0.25)
----------------------------------------
From net realized gain on investments --
----------------------------------------
In excess of net investment income --
----------------------------------------
Total distributions (0.25)
----------------------------------------
Net asset value, end of period $ 8.80
----------------------------------------
Total return(b) 0.83%
----------------------------------------
Ratios and supplemental data:
Net assets, end of period (in 000's) $ 131
----------------------------------------
Ratio of expenses to average net assets
including interest expense 1.03%(d)
----------------------------------------
Ratio of expenses to average net assets
excluding interest expense 1.03%(d)
----------------------------------------
Ratio of interest expense to average net
assets --
----------------------------------------
Ratio of net investment income to
average net assets 7.33%(d)
----------------------------------------
Portfolio turnover rate 385%
----------------------------------------
</TABLE>
(a) These selected per share data were calculated based upon the average shares
outstanding during the period.
(b) Total return does not deduct contingent deferred sales charges and is not
annualized for periods less than one year.
(c) Ratios are annualized and based on average net assets of $242,411 and
$190,114 for Class C and Advisor Class, respectively.
(d) Annualized.
NOTE 9-SUBSEQUENT EVENT
The Board of Trustees of AIM Investment Funds unanimously approved on March 14,
2000, an Agreement and Plan of Reorganization (the "Reorganization") pursuant to
which the Fund would transfer substantially all of its assets to AIM Global
Income Fund. The Reorganization has been structured as a tax-free transaction.
In a Special Meeting of shareholders on May 31, 2000, the Reorganization was
approved to be effective prior to the open of business on June 12, 2000.
12
<PAGE> 10
<TABLE>
<S> <C> <C>
BOARD OF TRUSTEES OFFICERS OFFICE OF THE FUND
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 TRANSFER AGENT
President and Chief Executive Officer, Gary T. Crum
A I M Management Group Inc. Vice President A I M Fund Services, Inc.
P.O. Box 4739
Ruth H. Quigley Carol F. Relihan Houston, TX 77210-4739
Private Investor Vice President
CUSTODIAN
Mary J. Benson
Assistant Vice President and State Street Bank and Trust Company
Assistant Treasurer 225 Franklin Street
Boston, MA 02110
Sheri Morris
Assistant Vice President and COUNSEL TO THE FUND
Assistant Treasurer
Kirkpatrick & Lockhart LLP
Nancy L. Martin 1800 Massachusetts Avenue, N.W.
Assistant Secretary Washington, D.C. 20036-1800
Ofelia M. Mayo COUNSEL TO THE TRUSTEES
Assistant Secretary
Paul, Hastings, Janofsky & Walker LLP
Kathleen J. Pflueger Twenty Third Floor
Assistant Secretary 555 South Flower Street
Los Angeles, CA 90071
DISTRIBUTOR
A I M Distributors, Inc.
11 Greenway Plaza
Suite 100
Houston, TX 77046
</TABLE>
