<PAGE> 1
SEMIANNUAL REPORT / APRIL 30 2000
AIM GLOBAL TELECOMMUNICATIONS
AND TECHNOLOGY FUND
[COVER IMAGE]
[AIM LOGO APPEARS HERE]
--Registered Trademark--
<PAGE> 2
[ COVER IMAGE ]
-------------------------------------
ACCENT IN PINK BY WASSILY KANDINSKY
BOTH AS AN ARTIST AND AS A THEORIST, KANDINSKY PLAYED A PIVOTAL ROLE IN THE
DEVELOPMENT OF ABSTRACT ART. HIS EXPLORATION OF THE POSSIBILITIES OF ABSTRACTION
MADE HIM ONE OF THE MOST IMPORTANT INNOVATORS IN MODERN ART. MANY OF THE
COMPANIES IN WHICH THIS FUND INVESTS ARE ON THE CUTTING EDGE OF
TELECOMMUNICATIONS AND TECHNOLOGY, MAKING THEM INNOVATORS AS WELL.
-------------------------------------
AIM Global Telecommunications and Technology Fund is for shareholders who seek
long-term growth of capital by investing primarily in equity securities of
companies throughout the world engaged in the development, manufacture or sale
of telecommunications and technology services or equipment.
ABOUT FUND PERFORMANCE AND PORTFOLIO DATA THROUGHOUT THIS REPORT:
o AIM Global Telecommunications and Technology Fund's performance figures are
historical, and they reflect the reinvestment of distributions and changes
in net asset value.
o When sales charges are included in performance figures, Class A share
performance reflects the maximum 4.75% sales charge, and Class B and Class C
share performance reflects the applicable contingent deferred sales charge
(CDSC) for the period involved. The CDSC on Class B shares declines from 5%
beginning at the time of purchase to 0% at the beginning of the seventh
year. The CDSC on Class C shares is 1% for the first year after purchase.
The performance of the fund's Class B and Class C shares will differ from
that of its Class A shares due to different sales-charge structure and
class expenses.
o 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.
o Investing in a single-sector mutual fund involves greater risk and potential
return than investing in a more diversified fund.
o The fund's investment return and principal value will fluctuate, so an
investor's shares, when redeemed, may be worth more or less than their
original cost.
ABOUT INDEXES AND OTHER PERFORMANCE BENCHMARKS CITED IN THIS REPORT:
o The National Association of Securities Dealers Automated Quotation System
Composite Index (the Nasdaq) is a market-value-weighted index comprising all
domestic and non-U.S. based common stocks listed on the Nasdaq system. It
includes more than 5,000 companies, and it is often considered
representative of the small and medium-sized company stock universe. While
it includes many small and mid-sized company stocks, large-capitalization
technology companies tend to dominate the index.
o The unmanaged Standard & Poor's Composite Index of 500 Stocks (the S&P 500)
represents the performance of the stock market.
o An investment cannot be made in an index. Unless otherwise indicated, index
results include reinvested dividends, and they do not reflect sales charges.
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.
AVERAGE ANNUAL TOTAL RETURNS
As of 4/30/00, including sales charges
CLASS A SHARES
================================================================================
Inception (1/27/92) 19.37%
5 years 24.80
1 year 56.16*
*63.92% excluding sales charges
================================================================================
CLASS B SHARES
================================================================================
Inception (4/1/93) 21.15%
5 years 25.23
1 year 58.02*
*63.02% excluding CDSC
================================================================================
CLASS C SHARES
================================================================================
Inception (3/1/99) 71.49%
1 year 62.05*
*63.05% excluding CDSC
================================================================================
In addition to the above returns, industry regulations require us to provide
average annual total returns (including sales charges) as of 3/31/00, the most
recent calendar quarter-end,which were: Class A shares, one year, 91.14%; five
years, 29.42%; inception (1/27/92), 21.71%. Class B shares, one year, 94.58%;
five years, 29.89%; inception (4/1/93), 23.96%. Class C shares, one year,
98.53%; inception (3/1/99), 104.21%.
Past performance does not guarantee comparable future results. MARKET VOLATILITY
CAN SIGNIFICANTLY IMPACT SHORT-TERM PERFORMANCE. RESULTS OF AN INVESTMENT MADE
TODAY MAY DIFFER SUBSTANTIALLY FROM THE HISTORICAL PERFORMANCE SHOWN.
AIM GLOBAL TELECOMMUNICATIONS AND TECHNOLOGY FUND
<PAGE> 3
SEMIANNUAL REPORT / CHAIRMAN'S LETTER
Dear Fellow Shareholder:
When we started AIM in 1976, we had only a table, two chairs
[PHOTO OF and a telephone. At the time, Bob Graham, Gary Crum and I had
Charles T. the idea of creating a mutual fund company that put people
Bauer, first. Our slogan, "people are the product," means that
Chairman of people--our employees and our investors-- are our company.
the Board of Almost a quarter-century later, we've grown to more than
THE FUND seven million investors, $176 billion in assets under
APPEARS HERE] management and 53 retail funds. Over that time, the industry
as a whole has grown from $51 billion in assets to more than
[PHOTO OF $7 trillion today. I never dreamed we would see such
Robert H. phenomenal growth. You are the main reason for our success,
Graham, and I want you to know how much I appreciate your loyalty and
APPEARS HERE] trust over the past 24 years.
Usually in this letter I review market activity during
the period covered by the report. This time, I'd just like
to say thank you. I am retiring as chairman of the AIM Funds effective September
30, and as chairman of AIM effective December 31, 2000. Bob Graham, whose
picture appears under mine, will succeed me as AIM's chairman and chairman of
the AIM Funds. Gary Crum will remain president of A I M Capital Management,
Inc., leading our investment division. I am enormously proud to leave AIM in
such capable hands.
I'm also very proud of our team of employees, now more than 2,300 strong.
Because of their collective commitment to excellence and ethical business
practices, AIM has earned the trust of investors and financial advisors alike.
And every employee, from portfolio managers to client services representatives,
is dedicated to serving our shareholders.
Rest assured that nothing at AIM will change because of my retirement. You
can still depend on this company to manage your money responsibly and provide
you with top-notch service. As chairman of AIM and chairman of the AIM Funds,
Bob is committed to preserving the things that have made AIM great in the past
and positioning it to succeed in the future. And Gary is dedicated to
maintaining the quality and long-term performance you've come to expect from
AIM.
In the pages that follow, the managers of your fund comment on recent market
activity, how they have managed your fund over the past six months and their
outlook for the coming months. We trust you will find their comments helpful.
If you have any questions or comments, please contact us through our Web
site, www.aimfunds.com, or call our Client Services department at 800-959-4246
during normal business hours. Information about your account is available at our
Web site and on our automated AIM Investor Line, 800-246-5463.
Thank you again for the support and trust you've shown us. I feel privileged
to have helped you with your financial goals, and I wish you success in all your
endeavors.
Sincerely,
/s/ CHARLES T. BAUER
Charles T. Bauer
Chairman, A I M Advisors, Inc.
AIM GLOBAL TELECOMMUNICATIONS AND TECHNOLOGY FUND
<PAGE> 4
SEMIANNUAL REPORT / MANAGERS' OVERVIEW
FUND POSTS STRONG RESULTS
IN VOLATILE MARKET
TECHNOLOGY STOCKS HAVE BEEN EXTREMELY VOLATILE OVER THE PAST SIX MONTHS. HOW DID
AIM GLOBAL TELECOMMUNICATIONS AND TECHNOLOGY FUND PERFORM?
The fund produced excellent results during the six-month period ended April 30,
2000, despite intense market volatility. Class A shares reported a total return
of 42.10%, Class B shares 41.74% and Class C shares 41.70%. These figures are at
net asset value and do not include sales charges. The fund outperformed its
benchmark, the S&P 500, which produced a total annual return of 7.18% during the
same time frame.
Net assets in the fund almost doubled, from $1.7 billion a year ago to $3.3
billion as of April 30, 2000.
WHAT WERE THE MAJOR TRENDS IN EQUITY MARKETS OVER THE REPORTING PERIOD?
Equity markets reached record highs near the end of 1999 in a rally dominated by
technology, media and telecommunications stocks, commonly dubbed TMTs. This
rally lasted for most of the reporting period, ending in March with a sharp
sell-off in TMT stocks.
In mid-April, the tech-heavy Nasdaq plunged, and other major markets
followed suit. The rest of the period was marked by intense day-to-day
volatility. Sentiment began to improve in late April as some TMT companies
announced stronger-than-expected earnings.
WHY WERE TECHNOLOGY STOCKS SO VOLATILE OVER THE PAST SIX MONTHS?
With the Nasdaq up almost 70% since the fourth quarter of 1999, the markets were
due for a correction. In April, a number of events converged to cause a change
in public sentiment:
o The Federal Reserve Board (the Fed), concerned that labor shortages may
fuel inflation, raised interest rates a fifth time in an effort to slow the
booming U.S. economy.
o The Consumer Price Index spiked for the first time in 11 months, signaling
inflation.
o A federal judge ruled that software giant Microsoft is a monopoly, and the
Justice Department asked the court to split Microsoft into two companies.
(The fund does not hold Microsoft stock.)
Many investors suddenly considered the valuations of tech stocks to be too
high, especially for companies with no earnings, and initiated a sell-off. As in
most market downturns, good stocks were punished along with the bad.
HOW DID YOU MANAGE THE PORTFOLIO DURING THIS ENVIRONMENT?
Recent volatility has not dampened our enthusiasm for telecommunications and
technology stocks. In fact, we found this market to be a major buying
opportunity. We added to holdings that were down quite a bit but still met our
investment discipline. At the same time, we trimmed positions from those
holdings that showed fundamental weakness.
The majority of stocks in the fund's portfolio had earnings growth and solid
company fundamentals, making them good long-term investments. First-quarter
earnings were strong for many of our holdings, supporting our investment
strategy. Meanwhile, long-term trends remain positive, including global
expansion, mergers and acquisitions, the growth of wireless communications and
the build-out of the Internet.
WHAT TECHNOLOGY TRENDS WERE MOST IMPORTANT TO THE FUND'S INVESTMENT STRATEGY?
We believe that the most important word for technology investing is bandwidth.
Think of phone wires and television cables as pipes through which information
flows. Bandwidth measures the size of the pipe--the higher the bandwidth, the
more information that can flow through at faster speeds. The
-----------------------------------
WE BELIEVE THAT THE MOST
IMPORTANT WORD FOR TECHNOLOGY
INVESTING IS BANDWIDTH.
-----------------------------------
AIM GLOBAL TELECOMMUNICATIONS AND TECHNOLOGY FUND VS. BENCHMARK INDEX
Six-month total returns, excluding sales charges
As of 4/30/2000
BAR CHART
================================================================================
CLASS A SHARES 42.10
CLASS B SHARES 41.74
CLASS C SHARES 41.70
S&P 500 7.18
================================================================================
GROWTH OF NET ASSETS
In billions
BAR CHART
================================================================================
4/30/99 $1.7
4/30/00 $3.3
================================================================================
See important fund and index disclosures inside front cover.
AIM GLOBAL TELECOMMUNICATIONS AND TECHNOLOGY FUND
2
<PAGE> 5
SEMIANNUAL REPORT / MANAGERS' OVERVIEW
PORTFOLIO COMPOSITION
As of 4/30/00, based on total net assets
<TABLE>
<CAPTION>
=========================================================================================================================
TOP 10 HOLDINGS TOP 10 INDUSTRIES TOP 10 COUNTRIES
-------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1. JDS Uniphase Corp. 6.27% 1. Communications Equipment 21.05% 1. United States 72.43%
2. Cisco Systems, Inc. 4.03 2. Computers (Software & Services) 19.74 2. United Kingdom 5.40
3. Oracle Corp. 3.63 3. Electronics (Semiconductors) 12.90 3. Canada 4.79
4. Nokia Oyj (Finland) 3.47 4. Telephone 10.58 4. Japan 3.96
5. Vodafone AirTouch PLC (U.K.) 3.12 5. Telecommunications 5. Finland 3.47
(Cellular/Wireless) 6.49
6. Brocade Communications Systems, 6. Computers (Networking) 6.45 6. Sweden 1.74
Inc. 3.00
7. Corning, Inc. 2.39 7. Computers (Peripherals) 3.72 7. Hong Kong 1.23
8. SDL, Inc. 2.36 8. Services (Computer Systems) 3.00 8. Germany 1.06
9. PMC-Sierra, Inc. (Canada) 2.32 9. Telecommunications 9. Netherlands 0.91
(Long Distance) 2.07
10. InfoSpace.com, Inc. 2.28 10. Electrical Equipment 1.94 10. Spain 0.71
The fund's portfolio is subject to change, and there is no assurance that the
fund will continue to hold any particular security.
=========================================================================================================================
</TABLE>
fund focused on companies that are building communications networks to improve
Internet bandwidth, including fiber optics, networking, Internet, equipment
makers and chip manufacturers.
Another major trend is wireless communications. While wireless is growing
steadily in the United States, it has exploded in Europe and Asia. In Japan, for
instance, the number of mobile phones recently surpassed the number of
fixed-line phones. Soon people will use their phones for more than talking. The
next generation of communications devices will allow users to download
information, access the Internet and conduct e-commerce transactions over a
wireless phone or a hand-held computer. We invested in companies on the leading
edge of this exciting trend.
WHAT STOCKS PERFORMED WELL?
o JDS Uniphase--The world's largest supplier of fiber-optic parts to
communications-equipment companies, JDS Uniphase reported
better-than-expected earnings in the most recent quarter, and sales more
than doubled over the past year.
o Cisco Systems--In March 2000, Cisco became the world's most valuable company
in terms of market capitalization, overtaking Microsoft. Cisco is the
world's biggest manufacturer of computer networking equipment--the switches
and routers that direct data across the Internet. It controls three-fourths
of the global market for these products.
o Oracle--The leading maker of database software beat analysts' earnings
estimates in the most recent quarter. The company's software gives multiple
users access to the same data simultaneously.
o Nokia--The Finnish mobile-phone leader posted a 55% increase in net income
for the first quarter of 2000. The company, which controls more than a
quarter of the worldwide market, is touting the prospects of its next
generation of mobile phones, which allow handsets to receive data and offer
Internet access. Nokia will be a major beneficiary of the European
development of third-generation wireless systems.
WHAT'S YOUR OUTLOOK FOR THE REST OF THE YEAR?
Markets could be volatile for the near term because of rising interest rates.
But while Fed rate hikes could put pressure on more traditional sectors of the
economy, many technology and telecommunications companies have little debt,
making them largely immune to the effects of rising interest rates.
Historically, weak markets are the ideal time to invest and prepare for the next
move up as companies innovate and grow in new areas.
Over the long range, we anticipate that technology and telecommunications
will continue to drive the world economy as wireless communications and Internet
usage expand throughout the globe. The fund will maintain its focus on investing
in companies that are leading the global information technology revolution.
See important fund and index disclosures inside front cover.
AIM GLOBAL TELECOMMUNICATIONS AND TECHNOLOGY FUND
3
<PAGE> 6
SCHEDULE OF INVESTMENTS
April 30, 2000
(Unaudited)
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
DOMESTIC COMMON STOCKS-72.43%
BIOTECHNOLOGY-0.88%
Invitrogen Corp.(a) 200,000 $ 12,475,000
---------------------------------------------------------------
PE Corp.-Celera Genomics Group(a) 200,000 16,500,000
---------------------------------------------------------------
28,975,000
---------------------------------------------------------------
BROADCASTING (TELEVISION, RADIO &
CABLE)-1.24%
UnitedGlobalCom Inc.-Class A(a) 770,000 40,906,250
---------------------------------------------------------------
COMMUNICATIONS EQUIPMENT-15.25%
CIENA Corp.(a) 440,000 54,395,000
---------------------------------------------------------------
Copper Mountain Networks, Inc.(a) 150,000 12,506,250
---------------------------------------------------------------
Corning Inc. 400,000 79,000,000
---------------------------------------------------------------
Harmonic, Inc.(a) 400,000 29,525,000
---------------------------------------------------------------
JDS Uniphase Corp.(a) 2,000,000 207,375,000
---------------------------------------------------------------
Juniper Networks, Inc.(a) 300,000 63,806,250
---------------------------------------------------------------
Motorola, Inc. 300,000 35,718,750
---------------------------------------------------------------
Scientific-Atlanta, Inc. 336,500 21,893,531
---------------------------------------------------------------
504,219,781
---------------------------------------------------------------
COMPUTERS (HARDWARE)-0.53%
Dell Computer Corp.(a) 350,000 17,543,750
---------------------------------------------------------------
COMPUTERS (NETWORKING)-6.45%
Cisco Systems, Inc.(a) 1,920,000 133,110,000
---------------------------------------------------------------
Exodus Communications, Inc.(a) 400,000 35,375,000
---------------------------------------------------------------
VeriSign, Inc.(a) 320,000 44,600,000
---------------------------------------------------------------
213,085,000
---------------------------------------------------------------
COMPUTERS (PERIPHERALS)-3.72%
EMC Corp.(a) 300,000 41,681,250
---------------------------------------------------------------
Network Appliance, Inc.(a) 620,000 45,841,250
---------------------------------------------------------------
SanDisk Corp.(a) 388,000 35,550,500
---------------------------------------------------------------
123,073,000
---------------------------------------------------------------
COMPUTERS (SOFTWARE & SERVICES)-18.31%
724 Solutions Inc.(a) 70,000 3,535,000
---------------------------------------------------------------
Allaire Corp.(a) 150,000 8,259,375
---------------------------------------------------------------
America Online, Inc.(a) 400,000 23,925,000
---------------------------------------------------------------
BEA Systems, Inc.(a) 1,400,000 67,550,000
---------------------------------------------------------------
BroadVision, Inc.(a) 400,000 17,575,000
---------------------------------------------------------------
Clarus Corp.(a) 340,000 13,663,750
---------------------------------------------------------------
eBay, Inc.(a) 150,000 23,878,125
---------------------------------------------------------------
InfoSpace.com, Inc.(a) 1,050,000 75,403,125
---------------------------------------------------------------
Inktomi Corp.(a) 340,000 52,338,750
---------------------------------------------------------------
Oracle Corp.(a) 1,500,000 119,906,250
---------------------------------------------------------------
Siebel Systems, Inc.(a) 150,000 18,431,250
---------------------------------------------------------------
VERITAS Software Corp.(a) 630,000 67,577,344
---------------------------------------------------------------
VerticalNet, Inc.(a) 540,000 29,160,000
---------------------------------------------------------------
WatchGuard Technologies, Inc.(a) 500,000 24,093,750
---------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
COMPUTERS (SOFTWARE & SERVICES)-(CONTINUED)
Yahoo! Inc.(a) 460,000 $ 59,915,000
---------------------------------------------------------------
605,211,719
---------------------------------------------------------------
ELECTRICAL EQUIPMENT-1.94%
Cree Research, Inc.(a) 100,000 14,550,000
---------------------------------------------------------------
EchoStar Communications Corp.(a) 485,000 30,888,437
---------------------------------------------------------------
Sawtek, Inc.(a) 390,000 18,646,875
---------------------------------------------------------------
64,085,312
---------------------------------------------------------------
ELECTRONICS (DEFENSE)-1.16%
General Motors Corp.-Class H(a) 400,000 38,525,000
---------------------------------------------------------------
ELECTRONICS
(INSTRUMENTATION)-0.92%
Alpha Industries, Inc.(a) 440,000 22,880,000
---------------------------------------------------------------
PE Corp-PE Biosystems Group 125,000 7,500,000
---------------------------------------------------------------
30,380,000
---------------------------------------------------------------
ELECTRONICS
(SEMICONDUCTORS)-9.84%
Advanced Micro Devices, Inc.(a) 400,000 35,100,000
---------------------------------------------------------------
Applied Micro Circuits Corp.(a) 400,000 51,550,000
---------------------------------------------------------------
Broadcom Corp.-Class A(a) 220,000 37,922,500
---------------------------------------------------------------
Intel Corp. 300,000 38,043,750
---------------------------------------------------------------
Rambus Inc.(a) 50,000 11,500,000
---------------------------------------------------------------
SDL, Inc.(a) 400,000 78,000,000
---------------------------------------------------------------
Texas Instruments Inc. 300,000 48,862,500
---------------------------------------------------------------
Triquint Semiconductor, Inc.(a) 170,000 17,478,125
---------------------------------------------------------------
Vitesse Semiconductor Corp.(a) 100,000 6,806,250
---------------------------------------------------------------
325,263,125
---------------------------------------------------------------
EQUIPMENT (SEMICONDUCTOR)-1.74%
Applied Materials, Inc.(a) 100,000 10,181,250
---------------------------------------------------------------
Novellus Systems, Inc.(a) 250,000 16,671,875
---------------------------------------------------------------
Teradyne, Inc.(a) 280,000 30,800,000
---------------------------------------------------------------
57,653,125
---------------------------------------------------------------
SERVICES (COMMERCIAL & CONSUMER)-1.26%
Ariba, Inc.(a) 560,000 41,545,000
---------------------------------------------------------------
SERVICES (COMPUTER SYSTEMS)-3.00%
Brocade Communications Systems,
Inc.(a) 800,000 99,200,000
---------------------------------------------------------------
TELECOMMUNICATIONS (CELLULAR/
WIRELESS)-3.28%
Nextel Communications, Inc.-Class
A(a) 140,000 15,321,250
---------------------------------------------------------------
Phone.com, Inc.(a) 325,000 27,300,000
---------------------------------------------------------------
Rural Cellular Corp.-Class A(a) 240,000 17,745,000
---------------------------------------------------------------
Triton PCS Holdings, Inc.-Class
A(a) 259,200 10,886,400
---------------------------------------------------------------
Western Wireless Corp.-Class A(a) 750,000 37,265,626
---------------------------------------------------------------
108,518,276
---------------------------------------------------------------
TELECOMMUNICATIONS (LONG DISTANCE)-0.41%
WinStar Communications, Inc.(a) 337,500 13,457,813
---------------------------------------------------------------
</TABLE>
4
<PAGE> 7
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
TELEPHONE-2.50%
Allegiance Telecom, Inc.(a) 306,000 $ 21,649,500
---------------------------------------------------------------
Qwest Communications
International, Inc.(a) 1,000,000 43,375,000
---------------------------------------------------------------
US West, Inc. 250,000 17,796,875
---------------------------------------------------------------
82,821,375
---------------------------------------------------------------
Total Domestic Common Stocks
(Cost $1,688,384,663) 2,394,463,526
---------------------------------------------------------------
FOREIGN STOCKS & OTHER EQUITY
INTERESTS-24.09%
AUSTRALIA-0.23%
Telstra Corp. Ltd.-Installment
Receipts (Telephone) 2,972,900 7,604,440
---------------------------------------------------------------
CANADA-4.79%
BCE Inc. (Telephone) 495,425 57,389,657
---------------------------------------------------------------
Microcell Telecommunications,
Inc.
(Telecommunications-Cellular/Wireless)(a) 137,200 4,784,850
---------------------------------------------------------------
Nortel Networks Corp.
(Communications Equipment) 171,000 19,365,750
---------------------------------------------------------------
PMC Sierra, Inc. (Electronics-
Semiconductors)(a) 400,000 76,750,000
---------------------------------------------------------------
158,290,257
---------------------------------------------------------------
FINLAND-3.47%
Nokia Oyj (Communications
Equipment) 2,000,000 114,816,760
---------------------------------------------------------------
FRANCE-0.54%
STMicroelectronics N.V.
(Electronics- Semiconductors) 93,600 17,874,513
---------------------------------------------------------------
GERMANY-1.06%
Epcos A.G. (Electronics-Component
Distributors)(a) 200,000 28,294,780
---------------------------------------------------------------
Infineon Technologies A.G.
(Electronics-
Semiconductors)(a) 95,400 6,574,715
---------------------------------------------------------------
34,869,495
---------------------------------------------------------------
HONG KONG-1.23%
China Telecom Ltd.
(Telecommunications-
Cellular/Wireless)(a) 5,700,000 40,796,873
---------------------------------------------------------------
JAPAN-3.96%
Nippon Telegraph & Telephone
Corp. (Telecommunications-Long
Distance) 2,001 24,830,671
---------------------------------------------------------------
NTT DoCoMo, Inc.
(Telecommunications-
Cellular/Wireless) 1,760 58,837,801
---------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
JAPAN-(CONTINUED)
Softbank Corp.
(Computers-Software & Services) 30,000 $ 7,389,915
---------------------------------------------------------------
Softbank Corp.-Bonus Shares
(Computers- Software &
Services) 60,000 14,835,394
---------------------------------------------------------------
Yahoo Japan Corp.
(Computers-Software &
Services)(a) 50 25,003,473
---------------------------------------------------------------
130,897,254
---------------------------------------------------------------
NETHERLANDS-0.91%
KPNQwest N.V.
(Telecommunications-Long
Distance)(a) 727,300 30,239,578
---------------------------------------------------------------
RUSSIA-0.05%
Russian Telecommunications
Development Corp.-Non-Voting
(Telecommunications-
Cellular-Wireless)(a)(b) 453,000 906,000
---------------------------------------------------------------
Russian Telecommunications
Development Corp.-Voting
(Telecommunications-
Cellular-Wireless)(a)(b) 331,000 662,000
---------------------------------------------------------------
1,568,000
---------------------------------------------------------------
SPAIN-0.71%
Telefonica S.A. (Telephone)(a) 1,058,409 23,572,784
---------------------------------------------------------------
SWEDEN-1.74%
Telefonaktiebolaget LM Ericsson
A.B.-ADR (Communications
Equipment) 650,000 57,484,375
---------------------------------------------------------------
UNITED KINGDOM-5.40%
COLT Telecom Group PLC
(Telephone)(a) 360,000 15,302,977
---------------------------------------------------------------
NTL Inc.-ADR (Telephone)(a) 783,463 59,934,919
---------------------------------------------------------------
Vodafone AirTouch PLC (Telephone) 22,504,003 103,232,146
---------------------------------------------------------------
178,470,042
---------------------------------------------------------------
Total Foreign Stocks & Other
Equity Interests (Cost
$275,059,369) 796,484,371
---------------------------------------------------------------
MONEY MARKET FUNDS-3.83%
STIC Liquid Assets Portfolio(d) 63,321,186 63,321,186
---------------------------------------------------------------
STIC Prime Portfolio(d) 63,321,186 63,321,186
---------------------------------------------------------------
Total Money Market Funds
(Cost $126,642,372) 126,642,372
---------------------------------------------------------------
TOTAL INVESTMENTS-100.35% (Cost
$2,090,086,404) 3,317,590,269
---------------------------------------------------------------
LIABILITIES LESS OTHER
ASSETS-(0.35%) (11,613,203)
---------------------------------------------------------------
NET ASSETS-100.00% $3,305,977,066
===============================================================
</TABLE>
Investment Abbreviations:
ADR - American Depositary Receipt
Notes to Schedule of Investments:
(a) Non-income producing security.
(b) Security fair valued in accordance with the procedures established by the
Board of Trustees.
(c) The money market fund has the same investment advisor as the Fund.
See Notes to Financial Statements.
5
<PAGE> 8
STATEMENT OF ASSETS AND LIABILITIES
April 30, 2000
(Unaudited)
<TABLE>
<S> <C>
ASSETS:
Investments, at market value (cost
$2,090,086,404) $3,317,590,269
-------------------------------------------------------------
Foreign currencies, at value (cost
$10,955,197) 10,824,790
-------------------------------------------------------------
Receivables for:
Investments sold 2,070,229
-------------------------------------------------------------
Collateral for securities loaned 153,924,153
-------------------------------------------------------------
Fund shares sold 10,050,299
-------------------------------------------------------------
Dividends and interest 1,028,285
-------------------------------------------------------------
Other assets 105,938
-------------------------------------------------------------
Total assets 3,495,593,963
-------------------------------------------------------------
LIABILITIES:
Payables for:
Investments purchased 25,285,807
-------------------------------------------------------------
Return of collateral for securities loaned 153,924,153
-------------------------------------------------------------
Fund shares reacquired 4,576,786
-------------------------------------------------------------
Accrued advisory fees 2,422,820
-------------------------------------------------------------
Accrued administrative services fees 16,456
-------------------------------------------------------------
Accrued distribution fees 2,249,360
-------------------------------------------------------------
Accrued transfer agent fees 491,544
-------------------------------------------------------------
Accrued trustees' fees 5,185
-------------------------------------------------------------
Accrued operating expenses 644,786
-------------------------------------------------------------
Total liabilities 189,616,897
-------------------------------------------------------------
Net assets applicable to shares outstanding $3,305,977,066
=============================================================
NET ASSETS:
Class A $1,658,983,515
=============================================================
Class B $1,543,970,263
=============================================================
Class C $ 103,023,288
=============================================================
SHARES OUTSTANDING, $0.01 PAR VALUE PER
SHARE:
Class A 48,637,636
=============================================================
Class B 47,381,429
=============================================================
Class C 3,162,798
=============================================================
Class A:
Net asset value and redemption price per
share $ 34.11
-------------------------------------------------------------
Offering price per share:
(Net asset value of $34.11 divided by
95.25%) $ 35.81
=============================================================
Class B:
Net asset value and offering price per
share $ 32.59
=============================================================
Class C:
Net asset value and offering price per
share $ 32.57
=============================================================
</TABLE>
STATEMENT OF OPERATIONS
For the six months ended April 30, 2000
(Unaudited)
<TABLE>
<S> <C>
INVESTMENT INCOME:
Dividends (net of $177,842 foreign withholding
tax) $ 5,354,540
------------------------------------------------------------
Interest 44,230
------------------------------------------------------------
Securities lending 899,647
------------------------------------------------------------
Total investment income 6,298,417
------------------------------------------------------------
EXPENSES:
Advisory and administrative fees 14,146,963
------------------------------------------------------------
Accounting services fees 98,208
------------------------------------------------------------
Custodian fees 418,706
------------------------------------------------------------
Distribution fees -- Class A 3,949,744
------------------------------------------------------------
Distribution fees -- Class B 7,113,982
------------------------------------------------------------
Distribution fees -- Class C 284,278
------------------------------------------------------------
Transfer agent fees 2,284,285
------------------------------------------------------------
Trustees' fees 22,942
------------------------------------------------------------
Other 141,767
------------------------------------------------------------
Total expenses 28,460,875
------------------------------------------------------------
Less: Expenses paid indirectly (19,796)
------------------------------------------------------------
Net expenses 28,441,079
------------------------------------------------------------
Net investment income (loss) (22,142,662)
------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) FROM
INVESTMENT SECURITIES, FOREIGN CURRENCIES,
AND OPTION CONTRACTS:
Net realized gain (loss) from:
Investment securities 344,955,803
------------------------------------------------------------
Foreign currencies (1,389,008)
------------------------------------------------------------
Option contracts written 469,187
------------------------------------------------------------
344,035,982
------------------------------------------------------------
Change in net unrealized appreciation
(depreciation) of:
Investment securities 432,147,935
------------------------------------------------------------
Foreign currencies (366,520)
------------------------------------------------------------
431,781,415
------------------------------------------------------------
Net gain from investment securities, foreign
currencies and option contracts 775,817,397
------------------------------------------------------------
Net increase in net assets resulting from
operations $753,674,735
============================================================
</TABLE>
See Notes to Financial Statements.
6
<PAGE> 9
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 (loss) $ (22,142,662) $ (21,958,347)
----------------------------------------------------------------------------------------------
Net realized gain from investment securities, foreign
currencies and option contracts 344,035,982 299,698,355
----------------------------------------------------------------------------------------------
Change in net unrealized appreciation of investment
securities, foreign currencies and option contracts 431,781,415 537,434,434
----------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 753,674,735 815,174,442
----------------------------------------------------------------------------------------------
Distributions to shareholders from net realized gains:
Class A (122,943,824) (23,149,236)
----------------------------------------------------------------------------------------------
Class B (112,291,100) (21,143,550)
----------------------------------------------------------------------------------------------
Class C (2,428,890) --
----------------------------------------------------------------------------------------------
Advisor Class* (257,983) (150,968)
----------------------------------------------------------------------------------------------
Share transactions-net:
Class A 349,175,726 (101,952,900)
----------------------------------------------------------------------------------------------
Class B 411,794,756 (72,208,921)
----------------------------------------------------------------------------------------------
Class C 96,645,723 11,141,603
----------------------------------------------------------------------------------------------
Advisor Class* (2,868,709) (5,609,698)
----------------------------------------------------------------------------------------------
Net increase in net assets 1,370,500,434 602,100,772
----------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 1,935,476,632 1,333,375,860
----------------------------------------------------------------------------------------------
End of period $3,305,977,066 $1,935,476,632
==============================================================================================
NET ASSETS CONSIST OF:
Shares of beneficial interest $1,718,720,708 $ 863,973,212
----------------------------------------------------------------------------------------------
Undistributed net investment income (loss) (22,137,128) 5,534
----------------------------------------------------------------------------------------------
Undistributed net realized gain from investment
securities, foreign currencies and option contracts 382,069,144 275,954,959
----------------------------------------------------------------------------------------------
Unrealized appreciation of investment securities, foreign
currencies and option contracts 1,227,324,342 795,542,927
----------------------------------------------------------------------------------------------
$3,305,977,066 $1,935,476,632
==============================================================================================
</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> 10
NOTES TO FINANCIAL STATEMENTS
April 30, 2000
(Unaudited)
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES
AIM Global Telecommunications and Technology 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 long-term growth
of capital.
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities at the
date of the financial statements and the reported amounts of revenues and
expenses during the reporting period. Actual results could differ from those
estimates. The following is a summary of the significant accounting policies
followed by the Fund in the preparation of its financial statements.
A. Security Valuations -- A security listed or traded on an exchange (except
convertible bonds) is valued at its last sales price as of the close of the
customary trading session on the exchange where the security is principally
traded, or lacking any sales on a particular day, the security is valued at
the closing bid price on that day. Each security reported on the NASDAQ
National Market System is valued at the last sales price on the valuation
date or absent a last sales price, at the closing bid price. Debt
obligations (including convertible bonds) are valued on the basis of prices
provided by an independent pricing service. Prices provided by the pricing
service may be determined without exclusive reliance on quoted prices, and
may reflect appropriate factors such as yield, type of issue, coupon rate
and maturity date. Securities for which market prices are not provided by
any of the above methods are valued based upon quotes furnished by
independent sources and are valued at the last bid price in the case of
equity securities and in the case of debt obligations, the mean between the
last bid and asked prices. Securities for which market quotations are not
readily available or are questionable are valued at fair value as determined
in good faith by or under the supervision of the 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.
C. Distributions -- Distributions from income and net realized capital gains,
if any, are generally paid annually and recorded on ex-dividend date. The
Fund may elect to use a portion of the proceeds from redemptions as
distributions for federal income tax purposes.
D. Federal Income Taxes -- The Fund intends to comply with the requirements of
the Internal Revenue Code necessary to qualify as a regulated investment
company and, as such, will not be subject to federal income taxes on
otherwise taxable income (including net realized capital gains) which is
distributed to shareholders. Therefore, no provision for federal income
taxes is recorded in the financial statements.
E. Foreign Currency Translations -- Portfolio securities and other assets and
liabilities denominated in foreign currencies are translated into U.S.
dollar amounts at date of valuation. Purchases and sales of portfolio
securities and income items denominated in foreign currencies are translated
into U.S. dollar amounts on the respective dates of such transactions. The
Fund does not separately account for that portion of the results of
operations resulting from changes in foreign exchange rates on investments
and the fluctuations arising from changes in market prices of securities
held. Such fluctuations are included with the net realized and unrealized
gain or loss from investments.
8
<PAGE> 11
F. Foreign Currency Contracts -- A foreign currency contract is an obligation
to purchase or sell a specific currency for an agreed-upon price at a future
date. The Fund may enter into a foreign currency contract to attempt to
minimize the risk to the Fund from adverse changes in the relationship
between currencies. The Fund may also enter into a foreign currency contract
for the purchase or sale of a security denominated in a foreign currency in
order to "lock in" the U.S. dollar price of that security. The Fund could be
exposed to risk if counterparties to the contracts are unable to meet the
terms of their contracts or if the value of the foreign currency changes
unfavorably.
G. Covered Call Options -- The Fund may write call options, on a covered basis;
that is, the Fund will own the underlying security. Options written by the
Fund normally will have expiration dates between three and nine months from
the date written. The exercise price of a call option may be below, equal
to, or above the current market value of the underlying security at the time
the option is written. When the Fund writes a covered call option, an amount
equal to the premium received by the Fund is recorded as an asset and an
equivalent liability. The amount of the liability is subsequently
"marked-to-market" to reflect the current market value of the option
written. The current market value of a written option is the mean between
the last bid and asked prices on that day. If a written call option expires
on the stipulated expiration date, or if the Fund enters into a closing
purchase transaction, the Fund realizes a gain (or a loss if the closing
purchase transaction exceeds the premium received when the option was
written) without regard to any unrealized gain or loss on the underlying
security, and the liability related to such option is extinguished. If a
written option is exercised, the Fund realizes a gain or a loss from the
sale of the underlying security and the proceeds of the sale are increased
by the premium originally received.
A call option gives the purchaser of such option the right to buy, and
the writer (the Fund) the obligation to sell, the underlying security at the
stated exercise price during the option period. The purchaser of a call
option has the right to acquire the security which is the subject of the
call option at any time during the option period. During the option period,
in return for the premium paid by the purchaser of the option, the Fund has
given up the opportunity for capital appreciation above the exercise price
should the market price of the underlying security increase, but has
retained the risk of loss should the price of the underlying security
decline. During the option period, the Fund may be required at any time to
deliver the underlying security against payment of the exercise price. This
obligation is terminated upon the expiration of the option period or at such
earlier time at which the Fund effects a closing purchase transaction by
purchasing (at a price which may be higher than that received when the call
option was written) a call option identical to the one originally written.
H. 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 0.975% 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 (excluding interest, taxes,
dividends on short sales, extraordinary items and increases due to offset
arrangements, if any) to the maximum annual rate of 2.00%, 2.50% and 2.50% 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 $98,208 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 $1,171,436 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
0.50% 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
9
<PAGE> 12
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 $3,949,744, $7,113,982 and $284,278, respectively, as
compensation under the Plans.
AIM Distributors received commissions of $1,083,845 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 $46,971 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 $19,796 under an expense offset arrangement. The effect of the
above arrangement resulted in a reduction of the Fund's total expenses of
$19,796 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, securities with an aggregate value of $150,906,047 were
on loan to brokers. The loans were secured by cash collateral of $153,924,153
received by the Fund. For the six months ended April 30, 2000, the Fund received
fees of $899,647 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
$2,108,663,721 and $1,571,157,935, 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 $1,341,255,972
----------------------------------------------------------
Aggregate unrealized (depreciation) of
investment securities (115,047,594)
----------------------------------------------------------
Net unrealized appreciation of investment
securities $1,226,208,378
==========================================================
</TABLE>
Cost of investments for tax purposes is $2,091,381,891
NOTE 7-CALL OPTION CONTRACTS
Transactions in call options written during the six month period ended April 30,
2000 are summarized as follows:
<TABLE>
<CAPTION>
CALL OPTION CONTRACTS
------------------------
NUMBER
OF PREMIUMS
CONTRACTS RECEIVED
---------- ----------
<S> <C> <C>
Beginning of year -- --
-----------------------------------------------------------
Written 3,250 3,068,513
-----------------------------------------------------------
Closed (2,250) (1,814,027)
-----------------------------------------------------------
Exercised -- --
-----------------------------------------------------------
Expired (1,000) (1,254,486)
-----------------------------------------------------------
End of year -- --
===========================================================
</TABLE>
10
<PAGE> 13
NOTE 8-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 10,861,811 $ 401,552,794 42,637,825 $ 826,757,794
-------------------------------------------------------------------------------------------------------------------------
Class B 12,463,497 441,978,914 6,195,698 131,627,637
-------------------------------------------------------------------------------------------------------------------------
Class C* 2,920,392 104,901,610 544,069 12,490,317
-------------------------------------------------------------------------------------------------------------------------
Advisor Class** 92,071 3,241,706 664,975 14,200,299
-------------------------------------------------------------------------------------------------------------------------
Issued as reinvestment of dividends:
Class A 3,700,544 113,714,772 1,233,567 21,142,757
-------------------------------------------------------------------------------------------------------------------------
Class B 3,497,857 102,891,971 1,176,293 19,479,129
-------------------------------------------------------------------------------------------------------------------------
Class C* 70,052 2,060,345 -- --
-------------------------------------------------------------------------------------------------------------------------
Advisor Class** 7,925 250,992 8,588 150,375
-------------------------------------------------------------------------------------------------------------------------
Conversion of Advisor Class shares to Class A shares***:
Class A 157,592 6,147,658 -- --
-------------------------------------------------------------------------------------------------------------------------
Advisor Class (152,813) (6,147,658) -- --
-------------------------------------------------------------------------------------------------------------------------
Reacquired:
Class A (4,783,152) (172,239,498) (49,011,051) (949,853,451)
-------------------------------------------------------------------------------------------------------------------------
Class B (3,907,818) (133,076,129) (11,052,108) (223,315,687)
-------------------------------------------------------------------------------------------------------------------------
Class C* (313,466) (10,316,232) (58,249) (1,348,714)
-------------------------------------------------------------------------------------------------------------------------
Advisor Class** (6,114) (213,749) (900,945) (19,960,372)
-------------------------------------------------------------------------------------------------------------------------
24,608,378 $ 854,747,496 (8,561,338) $(168,629,916)
=========================================================================================================================
</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.
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,
SIX MONTHS ENDED --------------------------------------------------------------
APRIL 30,
2000(a) 1999 1998(a) 1997(a) 1996(a) 1995
----------------- ---------- -------- -------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 26.44 $ 16.28 $ 18.04 $ 16.69 $ 16.42 $ 17.80
--------------------------------------------- ---------- ---------- -------- -------- ---------- ----------
Income from investment operations:
Net investment income (loss) (0.22) (0.25) (0.17) (0.17) (0.13) (0.09)
--------------------------------------------- ---------- ---------- -------- -------- ---------- ----------
Net realized and unrealized gain (loss) on
investments 11.01 10.97 (0.39) 2.93 1.22 (0.43)
--------------------------------------------- ---------- ---------- -------- -------- ---------- ----------
Net increase (decrease) from investment
operations 10.79 10.72 (0.56) 2.76 1.09 (0.52)
--------------------------------------------- ---------- ---------- -------- -------- ---------- ----------
Distributions to shareholders from net
realized gain on investments (3.12) (0.56) (1.20) (1.41) (0.82) (0.86)
--------------------------------------------- ---------- ---------- -------- -------- ---------- ----------
Net asset value, end of period $ 34.11 $ 26.44 $ 16.28 $ 18.04 $ 16.69 $ 16.42
============================================= ========== ========== ========== ======== ========== ==========
Total return(b) 42.10% 67.63% (3.16)% 17.70% 7.00% (2.88)%
============================================= ========== ========== ======== ======== ========== ==========
Ratios and supplemental data:
Net assets, end of period (000s omitted) $1,658,984 $1,023,124 $713,904 $910,801 $1,204,428 $1,353,722
============================================= ========== ========== ======== ======== ========== ==========
Ratio of expenses to average net assets 1.62%(c) 1.77% 1.88% 1.84% 1.79% 1.83%
============================================= ========== ========== ======== ======== ========== ==========
Ratio of net investment income (loss) to
average net assets (1.21)%(c) (1.11)% (0.93)% (1.06)% (0.89)% (0.55)%
============================================= ========== ========== ======== ======== ========== ==========
Portfolio turnover rate 54% 122% 75% 35% 37% 62%
============================================= ========== ============ ======== ======== ========== ==========
</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 $1,588,578,227.
11
<PAGE> 14
NOTE 9-FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
CLASS B
--------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED OCTOBER 31,
APRIL 30, ------------------------------------------------------------
2000(a) 1999 1998(a) 1997(a) 1996(a) 1995
---------------- -------- -------- -------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 25.43 $ 15.76 $ 17.58 $ 16.37 $ 16.20 $ 17.66
----------------------------------------------- ---------- -------- -------- -------- ---------- ----------
Income from investment operations:
Net investment income (loss) (0.29) (0.35) (0.25) (0.25) (0.23) (0.17)
----------------------------------------------- ---------- -------- -------- -------- ---------- ----------
Net realized and unrealized gain (loss) on
investments 10.57 10.58 (0.37) 2.87 1.22 (0.43)
----------------------------------------------- ---------- -------- -------- -------- ---------- ----------
Net increase (decrease) from investment
operations 10.28 10.23 (0.62) 2.62 0.99 (0.60)
----------------------------------------------- ---------- -------- -------- -------- ---------- ----------
Distributions to shareholders from net realized
gain on investments (3.12) (0.56) (1.20) (1.41) (0.82) (0.86)
----------------------------------------------- ---------- -------- -------- -------- ---------- ----------
Net asset value, end of period $ 32.59 $ 25.43 $ 15.76 $ 17.58 $ 16.37 $ 16.20
=============================================== ========== ======== ======== ======== ========== ==========
Total return(b) 41.74% 66.84% (3.67)% 17.15% 6.46% (3.37)%
=============================================== ========== ======== ======== ======== ========== ==========
Ratios and supplemental data:
Net assets, end of period (000s omitted) $1,543,970 $898,400 $614,715 $805,535 $1,007,654 $1,111,520
=============================================== ========== ======== ======== ======== ========== ==========
Ratio of expenses to average net assets 2.12%(c) 2.28% 2.38% 2.34% 2.29% 2.33%
----------------------------------------------- ---------- -------- -------- -------- ---------- ----------
Ratio of net investment income (loss) to
average net assets (1.70)%(c) (1.62)% (1.43)% (1.56)% (1.39)% (1.05)%
=============================================== ========== ======== ======== ======== ========== ==========
Portfolio turnover rate 54% 122% 75% 35% 37% 62%
=============================================== ========== ======== ======== ======== ========== ==========
</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 $1,430,614,054.
<TABLE>
<CAPTION>
CLASS C ADVISOR CLASS
--------------------------------- --------------------------------------------------------
MARCH 1, 1999
(DATE SALES
SIX MONTHS ENDED COMMENCED) NOVEMBER 1, 1999 YEAR ENDED OCTOBER 31,
APRIL 30, TO OCTOBER 31, TO FEBRUARY 11, -------------------------------------
2000(a) 1999 2000(a) 1999 1998(a) 1997(a) 1996(a)
---------------- -------------- ---------------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period $ 25.43 $ 19.23 $27.16 $ 16.61 $18.28 $16.81 $16.46
------------------------------- -------- ------- ------ ------- ------ ------ ------
Income from investment
operations:
Net investment income (loss) (0.30) (0.11) (0.08) (0.11) (0.08) (0.09) (0.05)
------------------------------- -------- ------- ------ ------- ------ ------ ------
Net realized and unrealized
gain (loss) on investments 10.56 6.31 16.27 11.22 (0.39) 2.97 1.22
------------------------------- -------- ------- ------ ------- ------ ------ ------
Net increase (decrease)
from investment
operations 10.26 6.20 16.19 11.11 (0.47) 2.88 1.17
------------------------------- -------- ------- ------ ------- ------ ------ ------
Distributions to shareholders:
From net realized gain on
investments (3.12) -- (3.12) (0.56) (1.20) (1.41) (0.82)
------------------------------- -------- ------- ------ ------- ------ ------ ------
Net asset value, end of period $ 32.57 $ 25.43 $40.23 $ 27.16 $16.61 $18.28 $16.81
=============================== ======== ======= ====== ======= ====== ====== ======
Total return(b) 41.66% 32.24% 62.71% 68.67% (2.59)% 18.33% 7.49%
=============================== ======== ======= ====== ======= ====== ====== ======
Ratios and supplemental data:
Net assets, end of period (000s
omitted) $103,023 $12,352 $ -- $ 1,600 $4,757 $4,783 $ 945
=============================== ======== ======= ====== ======= ====== ====== ======
Ratio of expenses to average
net assets 2.12%(c) 2.28%(d) 1.24%(c) 1.22% 1.38% 1.34% 1.29%
=============================== ======== ======= ====== ======= ====== ====== ======
Ratio of net investment income
(loss) to average net assets (1.70)%(c) (1.62)%(d) (0.83)%(c) (0.56)% (0.43)% (0.56)% (0.39)%
=============================== ======== ======= ====== ======= ====== ====== ======
Portfolio turnover rate 54% 122% 54% 122% 75% 35% 37%
=============================== ======== ======= ====== ======= ====== ====== ======
<CAPTION>
ADVISOR CLASS
--------------
JUNE 1, 1995
(DATE SALES
COMMENCED)
TO OCTOBER 31,
1995
--------------
<S> <C>
Net asset value, beginning of
period $15.24
-------------------------------
Income from investment
operations:
Net investment income (loss) --
-------------------------------
Net realized and unrealized
gain (loss) on investments 1.22
-------------------------------
Net increase (decrease)
from investment
operations 1.22
-------------------------------
Distributions to shareholders:
From net realized gain on
investments --
-------------------------------
Net asset value, end of period $16.46
=============================== ======
Total return(b) 7.94%
=============================== ======
Ratios and supplemental data:
Net assets, end of period (000s
omitted) $ 681
=============================== ======
Ratio of expenses to average
net assets 1.33%(d)
=============================== ======
Ratio of net investment income
(loss) to average net assets (0.05)%(d)
=============================== ======
Portfolio turnover rate 62%
=============================== ======
</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 $57,167,991 and
$3,477,703 for Class C and Advisor Class, respectively.
(d) Annualized.
12
<PAGE> 15
<TABLE>
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 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>
<PAGE> 16
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 AIM Money Market Fund leadership in the mutual fund industry since 1976
AIM Blue Chip Fund AIM Tax-Exempt Cash Fund and managed approximately $176 billion in assets
AIM Capital Development Fund for more than 7.4 million shareholders, including
AIM Constellation Fund(1) INTERNATIONAL GROWTH FUNDS individual investors, corporate clients and
AIM Dent Demographic Trends Fund AIM Advisor International Value Fund financial institutions, as of March 31, 2000.
AIM Emerging Growth Fund AIM Asian Growth Fund The AIM Family of Funds--Registered Trademark--
AIM Large Cap Growth Fund AIM Developing Markets Fund distributed nationwide, and AIM today is the
AIM Large Cap Opportunities Fund AIM Euroland Growth Fund(5) eighth-largest mutual fund complex in the United
AIM Mid Cap Equity Fund AIM European Development Fund States in assets under management, according to
AIM Mid Cap Growth Fund AIM International Equity Fund Strategic Insight, an independent mutual fund
AIM Mid Cap Opportunities Fund(2) AIM Japan Growth Fund monitor.
AIM Select Growth Fund AIM Latin American Growth Fund
AIM Small Cap Growth Fund(3)
AIM Small Cap Opportunities Fund(4) GLOBAL GROWTH FUNDS
AIM Value Fund AIM Global Aggressive Growth Fund
AIM Weingarten Fund AIM Global Growth Fund
AIM Global Trends Fund(6)
GROWTH & INCOME FUNDS
AIM Advisor Flex Fund GLOBAL GROWTH & INCOME FUNDS
AIM Advisor Real Estate Fund AIM Global Utilities Fund
AIM Balanced Fund
AIM Basic Value Fund GLOBAL INCOME FUNDS
AIM Charter Fund AIM Global Income Fund
AIM Strategic Income Fund
INCOME FUNDS
AIM Floating Rate Fund THEME FUNDS
AIM High Yield Fund AIM Global Consumer Products and Services Fund
AIM High Yield Fund II AIM Global Financial Services Fund
AIM Income Fund AIM Global Health Care Fund
AIM Intermediate Government Fund AIM Global Infrastructure Fund
AIM Limited Maturity Treasury Fund AIM Global Resources Fund
AIM Global Telecommunications and Technology Fund
TAX-FREE INCOME FUNDS
AIM High Income Municipal Fund
AIM Municipal Bond Fund
AIM Tax-Exempt Bond Fund of Connecticut
AIM Tax-Free Intermediate Fund
</TABLE>
(1) Effective December 1, 1999, AIM Constellation Fund's investment strategy
broadened to allow investments across all market capitalizations. (2) AIM Mid
Cap Opportunities Fund closed to new investors on March 21, 2000. (3) AIM Small
Cap Growth Fund closed to new investors on November 8, 1999. (4) AIM Small Cap
Opportunities Fund closed to new investors on November 4, 1999. (5) On September
1, 1999, AIM Europe Growth Fund was renamed AIM Euroland Growth Fund. Previously
the fund invested in all size companies in most areas of Europe. The fund now
seeks to invest at least 65% of its assets in large-cap companies within
countries using the euro as their currency (EMU-member countries). (6) Effective
August 27, 1999, AIM Global Trends Fund was restructured to operate as a
traditional mutual fund. Before that date, the fund operated as a fund of funds.
For more complete information about any AIM fund(s), including sales charges and
expenses, ask your financial advisor or securities dealer for a free
prospectus(es). Please read the prospectus(es) carefully before you invest or
send money. If used as sales material after July 20, 2000, this report must be
accompanied by a current Quarterly Review of Performance for AIM Funds.
[AIM LOGO APPEARS HERE]
[DALBAR LOGO APPEARS HERE] --Registered Trademark--
invest WITH DISCIPLINE
--Registered Trademark--
A I M Distributors, Inc.
GTL-SAR-1
