<PAGE> 1
SEMIANNUAL REPORT / APRIL 30 2000
AIM GLOBAL HEALTH CARE FUND
[COVER IMAGE]
[AIM LOGO APPEARS HERE]
--Registered Trademark--
<PAGE> 2
[ COVER IMAGE ]
-------------------------------------
BASKET OF APPLES BY JOHN S. BUNKER
FRESH FRUIT IS FREQUENTLY ASSOCIATED WITH HEALTH AND
WELL-BEING. USING A DISCIPLINED INVESTMENT APPROACH,
AIM GLOBAL HEALTH CARE FUND SEEKS TO INVEST IN COMPANIES
THAT BRING TO THE MARKETPLACE PRODUCTS AND SERVICES
DESIGNED TO COMBAT DISEASE AND PROMOTE HEALTH.
-------------------------------------
AIM Global Health Care Fund is for shareholders seeking long-term growth of
capital by investing in companies around the world involved in health-care
activities or in the design, manufacture or sale of products and services used
in connection with health care or medicine.
ABOUT FUND PERFORMANCE AND PORTFOLIO DATA THROUGHOUT THIS REPORT:
o AIM Global Health Care 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 The fund participates in the initial public offering (IPO) market, and a
significant portion of its return is attributable to its investment in IPOs,
which have a magnified impact due to the fund's relatively small asset base.
There is no guarantee that as the fund's assets grow, it will continue to
experience substantially similar performance by investing in IPOs.
o Investing in a single-sector mutual fund involves greater risk and potential
reward than investing in a more diversified fund.
o The fund's investment return and principal value will fluctuate, so an
investor's shares, when redeemed, may be worth more or less than their
original cost.
ABOUT INDEXES AND OTHER PERFORMANCE BENCHMARKS CITED IN THIS REPORT:
o The Dow Jones Industrial Average (the Dow) is a price-weighted average of 30
actively traded primarily industrial stocks.
o The unmanaged Lipper Health and Biotechnology Fund Index represents an
average of the 10 largest health and biotechnology funds tracked by Lipper,
Inc., an independent mutual fund performance monitor.
o The unmanaged MSCI All Country (AC) World Index is a group of global
securities traded on more than 50 markets in developed and emerging
countries tracked by Morgan Stanley Capital International.
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
10 years 13.95%
5 years 16.60
1 year -1.23*
*3.70% excluding sales charges
CLASS B SHARES
Inception (4/1/93) 15.84%
5 years 16.94
1 year -1.48*
*3.17% excluding CDSC
CLASS C SHARES
Inception (3/1/99) 8.69%
1 year 2.28
*3.21% 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, -2.30%; five
years, 16.26%; 10 years, 14.08%. Class B shares, one year, -2.57%; five years,
16.59%; inception (4/4/93), 16.22%. Class C shares, one year, 1.15%; inception
(3/1/99), 10.50%.
Past performance cannot guarantee comparable future results.
MARKET VOLATILITY CAN SIGNIFICANTLY IMPACT SHORT-TERM PERFORMANCE. RESULTS OF AN
INVESTMENT MADE TODAY MAY DIFFER SUBSTANTIALLY FROM THE HISTORICAL PERFORMANCE
SHOWN.
AIM GLOBAL HEALTH CARE FUND
<PAGE> 3
SEMIANNUAL REPORT / CHAIRMAN'S LETTER
Dear Fellow Shareholder:
When we started AIM in 1976, we had only a table, two
[PHOTO OF chairs and a telephone. At the time, Bob Graham, Gary Crum
Charles T. and I had the idea of creating a mutual fund company that
Bauer, put people first. Our slogan, "people are the product,"
Chairman of means that people--our employees and our investors--are our
the Board of company.
THE FUND Almost a quarter-century later, we've grown to more than
APPEARS HERE] seven million investors, $176 billion in assets under
management and 53 retail funds. Over that time, the industry
[PHOTO OF as a whole has grown from $51 billion in assets to more than
Robert H. $7 trillion today. I never dreamed we would see such
Graham phenomenal growth. You are the main reason for our success,
APPEARS HERE] and I want you to know how much I appreciate your loyalty
and trust over the past 24 years.
Usually in this letter I review market activity during
the period covered by the report. This time, I'd just like
to say thank you. I am retiring as chairman of the AIM Funds effective September
30, and as chairman of AIM effective December 31, 2000. Bob Graham, whose
picture appears under mine, will succeed me as AIM's chairman and chairman of
the AIM Funds. Gary Crum will remain president of A I M Capital Management,
Inc., leading our investment division. I am enormously proud to leave AIM in
such capable hands.
I'm also very proud of our team of employees, now more than 2,300 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 HEALTH CARE FUND
<PAGE> 4
SEMIANNUAL REPORT / MANAGERS' OVERVIEW
VOLATILITY SPURS MOTION SICKNESS
IN HEALTH-CARE STOCKS
HOW DID AIM GLOBAL HEALTH CARE FUND PERFORM DURING THE REPORTING PERIOD?
For the six-month period ended April 30, 2000, the fund's Class A, Class B and
Class C shares posted returns of 8.23%, 7.93% and 7.98%, respectively. (These
returns are at net asset value, which does not include sales charges.) These
returns were nearly in line with the MSCI AC World Index, which had a return of
8.07% for the reporting period.
Comparatively, the Lipper Health and Biotechnology Fund Index had a return
of 18.66% for the reporting period. This Lipper index contains mutual funds that
invest solely in biotechnology, which was the best-performing industry within
the health-care sector for the reporting period. Because AIM Global Health Care
Fund is a more diversified fund, it underperformed the Lipper index.
WHAT WAS THE MARKET ENVIRONMENT LIKE OVER THE PAST SIX MONTHS?
After an almost uninterrupted rise through the final months of 1999, stocks
began hitting air pockets early in 2000. The large-company-driven Dow hit its
all-time high in mid-January. But a variety of factors converged to shake market
confidence and led to unusual volatility in March and April, including continued
robust U.S. economic growth, fears of rising interest rates and early
indications of increasing inflation pressures. The unpredictability of the
markets proved quite unsettling to many investors.
For all the headline-making one-day dips and dives among various benchmarks,
it's worth noting that the most widely reported stock indexes all gained during
the six months covered by this report. A great deal of the market's volatility
was confined to some very high-flying tech stocks that saw their values plummet
in the tech shakeout late in the reporting period. For the most part, company
earnings reports continued to be positive for the first quarter of 2000 across a
broad array of industries, from banks and health care to energy and certain
technologies.
HOW DID THE MARKET ENVIRONMENT AFFECT THE FUND?
The health-care sector has been working its way back from performance that has
been hurt by a number of factors. Pharmaceutical stocks continue to be largely
out of favor. Earnings growth for these companies has been robust during the
past couple of years as many new drugs were brought to market. But these stocks
have suffered from concerns about possible fallout should a Medicare drug
benefit be enacted, as well as the expiration of some major drug patents. We
significantly reduced our weighting in pharmaceuticals to take advantage of
better-performing health-care companies in other industries.
Managed-care companies (HMOs) have seen rising costs squeeze their profit
margins in recent years. Even though some of these companies are beginning to
see a turnaround in their earnings, we reduced our weighting in this industry
because these stocks may continue to see downward pressure from rising
health-care costs and impending litigation.
The most volatile segment of the health-care sector of late has been
biotechnology. Biotech stocks had a major run-up during the first quarter of
2000 that was fueled by speculation over genomics (see below). However, these
stocks have also been quite susceptible to uncertainty about their long-term
prospects, which has had a negative effect on them.
While we increased our biotech weighting from more than 9% to about 16% over
the past six months, we continue to position the fund as a general health-care
fund and not a specialty biotech fund. We have been careful to invest in biotech
companies that sport real earnings and not just the potential for earnings. Our
diversification across health-care industries may help us in times of market
volatility, particularly given the capricious nature of biotech stocks in recent
weeks.
THE POTENTIAL OF BIOTECHNOLOGY
Biotechnology is the use of data and methods of engineering and technology for
the study of and solution to problems relating to living things. Of particular
interest to scientists and investors alike is genomics, which is the decoding of
the human genome. ("Genome" refers to the total number of genes in the human
body--about 100,000.)
An international coalition of scientists called the Human Genome Project has
been trying for the past decade to learn how our genes function and cause
diseases. With this information, scientists hope they will be able to develop
new drugs to prevent and cure hundreds of diseases like Alzheimer's, heart
disease and cancer. Many of today's blockbuster medicines are monoclonal
antibodies, which hunt down diseased cells and disable them. These drugs have
the potential to treat an enormous range of diseases with fewer side effects
than traditional medicines.
While many analysts concede that genomics and other new technologies promise
to revolutionize medicine and the treatment of chronic diseases, they also
caution that the techniques are still largely untested and the payoff could be
many years away. If genomics companies are going to succeed and justify their
sometimes sky-high market valuations, they will need to show that they can
deliver safe, effective drugs.
See important fund and index disclosures inside front cover.
AIM GLOBAL HEALTH CARE FUND
2
<PAGE> 5
SEMIANNUAL REPORT / MANAGERS' OVERVIEW
WHAT ARE SOME COMPANIES YOU HAVE FAVORED?
We have increased our medical products and supplies holdings because these
companies continue to benefit from the needs of aging baby boomers. Baxter
International, a leading medical-technology manufacturer and fund holding, makes
blood and circulatory products like heart-monitor catheters. The company's
product development has focused on such things as devices for minimally invasive
heart surgeries.
Related fund holdings include Guidant and Bausch & Lomb. Guidant, which
manufactures cardiovascular therapeutic devices, has seen gains in its share of
the market for stents, which are used to open blocked arteries. Bausch & Lomb,
probably best known for its contact lenses, also makes ophthalmic surgical
equipment.
Our top biotech holding is Genzyme. The company has developed a strategy of
buying companies that can contribute to its in-house development of specialized
biopharmaceutical products. This has helped Genzyme become a rarity--a biotech
company with real earnings.
HOW IS THE HEALTH-CARE SECTOR TAKING ADVANTAGE OF TECHNOLOGY?
Advances in medical equipment used for research, diagnosis and treatment have
been a boon for companies that make scientific and medical instruments and their
components. Fund holding Varian Semiconductor Equipment Associates manufactures
a system used to make semiconductors, which are a vital component of the
electronic and computer-driven instruments produced by its two sister companies,
fund holdings Varian and Varian Medical Systems. Varian is a leading
manufacturer of medical research instruments, while Varian Medical Systems
produces and markets numerous types of x-ray and oncology products used
primarily for cancer treatment.
Hospitals are starting to turn to e-commerce to help them overhaul their
medical supply chain. In the current system, hospitals have to go through a
convoluted network of catalogs and phone calls to order supplies. Fund holdings
Columbia/HCA Healthcare and Tenet Healthcare, two of the country's largest
publicly traded hospitals, announced plans to back developing electronic
marketplaces for placing orders online. Faced with increasing pressure to cut
costs without sacrificing patient care, hospitals hope such new ventures will
eliminate unnecessary purchases and streamline the supply chain, which could
also save money.
WHAT IS YOUR NEAR-TERM OUTLOOK?
Health-care stocks are driven by relative earnings growth, and the outlook for
earnings growth in health care is fairly stable. Mergers and improving
fundamentals on the health-care services side especially may help the sector as
a whole. If the growth rate of the broader market slows, health-care stocks
could generate strong relative returns. Regardless of market trends, we will
continue to invest in companies that have real earnings and room to grow.
PORTFOLIO COMPOSITION
As of 4/30/00, based on total net assets
[ARTWORK]
<TABLE>
<CAPTION>
=======================================================================================================================
TOP 10 EQUITY HOLDINGS TOP 10 INDUSTRIES
-----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
1. Warner-Lambert Co. 7.42% 1. Health Care (Medical Products & Services) 23.44%
2. AmeriSource Health Corp.-Class A 6.73 2. Biotechnology 16.36
3. Genzyme Corp. 5.30 3. Health Care (Hospital Management) 10.19
4. Amgen, Inc. 4.86 4. Health Care (Diversified) 7.68
5. Pall Corp. 3.90 5. Health Care (Managed Care) 7.11
6. Guidant Corp. 3.74 6. Distributors (Food & Health) 7.05
7. Varian Semiconductor Equipment Associates, Inc. 3.61 7. Electronics (Instrumentation) 5.68
8. Bausch & Lomb, Inc. 3.61 8. Health Care (Drugs-Generic & Other) 5.62
9. Baxter International, Inc. 3.54 9. Manufacturing (Specialized) 3.90
10. Health Management Associates, Inc.-Class A 2.94 10. Insurance (Multi-Line) 2.60
The fund's portfolio is subject to change, and there is no assurance that the
fund will continue to hold any particular security.
=======================================================================================================================
</TABLE>
See important fund and index disclosures inside front cover.
AIM GLOBAL HEALTH CARE FUND
3
<PAGE> 6
SEMIANNUAL REPORT / FOR CONSIDERATION
PROTECT YOUR NEST EGG WITH
FOUR TAX-TRIMMING STRATEGIES
Are taxes pecking away at your nest egg? There are ways to protect the funds
you've carefully set aside for your life's goals--retirement, college for your
children and grandchildren, a house or a dream vacation.
IRAS: DEFER, DEDUCT TAXES
One of the best ways to protect your income (and maybe even receive a tax
deduction) is to contribute to a Traditional or Roth IRA. Setting up and
managing an IRA is simple. For more information, please ask your financial
consultant or visit AIM's Web site at www.aimfunds.com.
To be eligible to make a Traditional IRA contribution, you must be under
70 1/2 and have earned income, or be a non-working spouse.
If you don't have a pension plan at work, you can deduct up to $2,000 for
the maximum allowable yearly IRA contribution. If you're covered by a plan at
work, you may still qualify for a full or partial deduction. A married couple
with one wage-earner can contribute up to $4,000 (up to $2,000 each) in two IRA
accounts. This can help cut your tax bill significantly. For example, if you're
in the 15% tax bracket, putting that $4,000 into IRAs can save you $600 in
taxes. Even if your contribution is not tax-deductible, it still may be
worthwhile to invest in an IRA. Contributions to Traditional IRAs grow
tax-deferred until withdrawn.
The Roth IRA provides another option for individuals with earned income
below $110,000 for single filers ($160,000 for couples filing jointly). With a
Roth IRA, you make after-tax contributions to your account. Withdrawals from the
account are tax-free if the account has been open five years and one of the
following conditions applies:
o The account holder is at least 59 1/2;
o The account holder is buying a home for the first time ($10,000 lifetime
maximum);
o The account holder has become disabled; or
o The account holder has died. AIM's Website (www.aimfunds.com) offers a Roth
IRA Analyzer and a Roth Rollover Calculator.
Another IRA option allows you to save for a child's college education. The
Education IRA allows you to contribute $500 after-tax dollars each year to a
special account set up in a child's name.
EMPLOYER PLANS OFFER TAX HELP
Other ways of reducing your tax bill include putting some of your earnings in
retirement plans that may be offered by your employer. These include the popular
401(k) plans and 403(b) plans. The 403(b) plans are specifically for employees
of public educational institutions such as school systems, universities and
medical schools, plus members of 501(c)3 organizations, such as museums,
research foundations and religious institutions.
THE EARLY BIRD MAY HATCH THE BIGGEST EGG
Whether you're contributing to an IRA or any other investment, the earlier you
start, the better. The reason is simple: compounding. Reinvesting your
distributions allows your earnings to grow over time. Here are some examples:
o STARTING AT 25, SUSAN CONTRIBUTED $2,000 A YEAR to her IRA for 10 years--a
total of $20,000--and then allowed the investment to accrue until she turned
65. She ended up with $611,815 for her retirement.
o BILL STARTED INVESTING AT 35. He contributed $2,000 a year to his IRA for 15
years--a total of $30,000--and then allowed the investment to accrue until
he turned 65. He had $291,987 for retirement.
o KATE WAITED UNTIL SHE WAS 45 TO START INVESTING FOR RETIREMENT. She
contributed $2,000 a year to her IRA for 20 years--a total of $40,000--and
ended up with only $126,005.
Even though Susan initially contributed the least amount of money to her IRA
for the shortest period of time, she ended up with more money at retirement than
Bill or Kate because of the power of compounding over time.
Please keep in mind that this is a hypothetical example and not indicative of
the performance of any investment, IRA or AIM fund. Results are based on an
average annual total return of 10%. Your actual return is not likely to be
constant from year to year, and there is no guarantee that a specific rate of
return will be achieved. Towers Data Systems HYPO--Registered Trademark--.
[GRAPHIC]
[ARTWORK]
AIM GLOBAL HEALTH CARE FUND
4
<PAGE> 7
SEMIANNUAL REPORT / FOR CONSIDERATION
Contributing to one of these plans can reduce the portion of your income
that is subject to federal taxes. For example, if you make $55,000 annually and
contribute $5,000 of that to your employer-sponsored retirement plan, you will
reduce your taxable income by $5,000. In addition, your employer may match part
of your contributions, adding extra impact.
ANNUITIES: ANOTHER OPTION
Have you contributed the maximum amount to your retirement plan? If so,
annuities offer another way to grow assets tax-deferred. Offered by
life-insurance companies, annuities allow you to contribute as much and as often
as you like. The larger your annual investments, the more you benefit from
tax-deferred compounding. And an annuity includes a guaranteed benefit in case
of your death.
NOTE: With Traditional IRAs, annuities, employer-sponsored plans and payment
of taxes on the growth of your investment is deferred until you with draw it
after retirement. At that point income taxes become due, but you could be in a
lower tax bracket. There may be tax penalties for withdrawals made before
59 1/2.
MUNI BONDS: DELETING TAXES
Municipal-bond funds generally are exempt from federal income taxes. If you
think they're just for the very wealthy, you may want to reconsider. If you are
in the 28% tax bracket or above, municipal-bond funds may have a place in your
portfolio. They can provide you with a steady stream of current income.
When you take into consideration the federal tax-exempt status of municipal
bonds--and the mutual funds that invest in them--their yields are compelling.
The chart below shows how tax-exempt yields compare with taxable-equivalent
yields.
To find out whether tax-exempt investing would work for you, discuss the
issue with your financial advisor and your tax advisor. They can help you choose
investments that suit your risk tolerance, financial goals and current
circumstances.
IS TAX-EXEMPT INVESTING
FOR YOU?
Tax-exempt investing isn't just for the wealthy. Ask yourself these questions:
o Has your federal income-tax bill gone up in the past few years?
o Do your investments provide a significant amount of your income?
o Do you depend on income from investments to cover current expenses?
o Are you reinvesting your distributions for long-term growth and paying taxes
on those distributions?
o Do you contribute the maximum possible to retirement plans offered by your
employer?
If you answered yes to any of these questions, ask your financial consultant
about tax-exempt investing.
COMPARING YIELDS SHOWS
APPEAL OF TAX-EXEMPT INVESTING
Depending on your income bracket, a tax-exempt bond fund may be more
advantageous than a taxable fund. The table shows how the yield on a tax-exempt
investment can be as attractive as a higher yielding taxable investment.
Suppose, for example, you are in the 28% tax bracket and you invest in a
municipal bond fund with a 5% yield. A fund that is subject to federal income
taxes would have to have a yield of at least 6.9% to be competitive, as
demonstrated in this chart.
TAX-EXEMPT VS. TAXABLE-EQUIVALENT YIELD
at 1999 Federal Income Tax Rates*
================================================================================
MARGINAL TAX EXEMPT YIELD
TAXABLE INCOME INCOME 5% 6% 7%
(JOINT RETURN) TAX RATE TAXABLE-EQUIVALENT YIELD
--------------------------------------------------------------------------------
$0-$43,050 15% 5.9% 7.1% 8.2%
$43,051-$104,050 28 6.9 8.3 9.7
$104,051-$158,550 31 7.2 8.7 10.1
$158,551-$283,150 36 7.8 9.4 10.9
MORE THAN $283,150 39.6 8.3 9.9 11.6
Chart is for illustrative purposes only and is not intended to project
performance of any AIM fund.
*A portion of distributions from a federally tax-exempt investment may be
subject to state income taxes or the alternative minimum tax.
================================================================================
AIM GLOBAL HEALTH CARE FUND
5
<PAGE> 8
SCHEDULE OF INVESTMENTS
April 30, 2000
(Unaudited)
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
DOMESTIC COMMON STOCKS-91.72%
BIOTECHNOLOGY-16.36%
Amgen Inc.(a) 400,000 $ 22,400,000
--------------------------------------------------------------
Enzon, Inc.(a) 16,000 1,352,920
--------------------------------------------------------------
Genzyme Corp.(a) 500,000 24,406,250
--------------------------------------------------------------
Guilford Pharmaceuticals, Inc.(a) 460,000 7,992,500
--------------------------------------------------------------
Lexicon Genetics Inc.(a) 142,400 1,388,400
--------------------------------------------------------------
PathoGenesis Corp.(a) 80,000 1,700,000
--------------------------------------------------------------
SuperGen, Inc.(a) 227,200 7,526,000
--------------------------------------------------------------
Texas Biotechnology Corp.(a) 700,000 8,575,000
--------------------------------------------------------------
75,341,070
--------------------------------------------------------------
COMPUTERS (SOFTWARE & SERVICES)-1.43%
HealthStream, Inc.(a) 650,000 6,581,250
--------------------------------------------------------------
DISTRIBUTORS (FOOD & HEALTH)-7.05%
AmeriSource Health Corp.-Class A(a) 1,550,000 31,000,000
--------------------------------------------------------------
Owens & Minor, Inc. Holding Co. 120,000 1,440,000
--------------------------------------------------------------
32,440,000
--------------------------------------------------------------
ELECTRONICS (INSTRUMENTATION)-5.68%
Varian Inc.(a) 263,000 9,566,625
--------------------------------------------------------------
Varian Semiconductor Equipment
Associates, Inc.(a) 247,000 16,610,750
--------------------------------------------------------------
26,177,375
--------------------------------------------------------------
HEALTH CARE (DIVERSIFIED)-7.68%
IVAX Corp.(a) 45,000 1,231,875
--------------------------------------------------------------
Warner-Lambert Co. 300,000 34,143,750
--------------------------------------------------------------
35,375,625
--------------------------------------------------------------
HEALTH CARE (DRUGS-GENERIC & OTHER)-3.27%
Alpharma, Inc.-Class A 18,000 695,250
--------------------------------------------------------------
Aradigm Corp.(a) 550,000 8,834,375
--------------------------------------------------------------
Barr Laboratories, Inc.(a) 20,000 863,750
--------------------------------------------------------------
Biopure Corp.(a) 33,200 709,650
--------------------------------------------------------------
King Pharmaceuticals, Inc.(a) 20,271 1,000,881
--------------------------------------------------------------
OraPharma, Inc.(a) 290,000 2,954,375
--------------------------------------------------------------
15,058,281
--------------------------------------------------------------
HEALTH CARE (DRUGS-MAJOR
PHARMACEUTICALS)-0.65%
Pharmacia Corp. 59,750 2,983,766
--------------------------------------------------------------
HEALTH CARE (HOSPITAL MANAGEMENT)-10.19%
Columbia/HCA Healthcare Corp. 243,500 6,924,531
--------------------------------------------------------------
Health Management Associates,
Inc.-Class A(a) 850,000 13,546,875
--------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
HEALTH CARE (HOSPITAL MANAGEMENT)-(CONTINUED)
Quorum Health Group, Inc.(a) 1,240,000 $ 13,175,000
--------------------------------------------------------------
Tenet Healthcare Corp.(a) 520,000 13,260,000
--------------------------------------------------------------
46,906,406
--------------------------------------------------------------
HEALTH CARE (MANAGED CARE)-7.11%
Coventry Health Care, Inc.(a) 82,500 876,562
--------------------------------------------------------------
Trigon Healthcare, Inc.(a) 205,100 7,370,781
--------------------------------------------------------------
UnitedHealth Group Inc. 190,000 12,670,625
--------------------------------------------------------------
Wellpoint Health Networks, Inc.(a) 160,000 11,800,000
--------------------------------------------------------------
32,717,968
--------------------------------------------------------------
HEALTH CARE (MEDICAL PRODUCTS &
SUPPLIES)-23.44%
Bausch & Lomb Inc. 275,000 16,603,125
--------------------------------------------------------------
Baxter International, Inc. 250,000 16,281,250
--------------------------------------------------------------
Biosource International, Inc.(a) 100,000 981,250
--------------------------------------------------------------
EndoSonics Corp.(a)(b) 1,125,000 5,132,812
--------------------------------------------------------------
Guidant Corp.(a) 300,000 17,212,500
--------------------------------------------------------------
Mentor Corp. 130,000 2,299,375
--------------------------------------------------------------
Minntech Corp. 205,000 1,742,500
--------------------------------------------------------------
Molecular Biosystems, Inc.(a) 376,900 329,787
--------------------------------------------------------------
ORATEC Interventions, Inc.(a) 50,000 1,703,125
--------------------------------------------------------------
Orthofix International N.V.(a) 20,000 370,000
--------------------------------------------------------------
St. Jude Medical, Inc.(a) 400,000 12,475,000
--------------------------------------------------------------
Sybron International Corp.(a) 390,000 12,138,750
--------------------------------------------------------------
Syncor International Corp.(a) 249,300 10,283,625
--------------------------------------------------------------
Varian Medical Systems, Inc.(a) 260,000 10,400,000
--------------------------------------------------------------
107,953,099
--------------------------------------------------------------
INSURANCE (LIFE/HEALTH)-2.01%
Aetna, Inc. 160,000 9,260,000
--------------------------------------------------------------
INSURANCE (MULTI-LINE)-2.60%
CIGNA Corp. 150,000 11,962,500
--------------------------------------------------------------
MANUFACTURING (SPECIALIZED)-3.90%
Pall Corp. 805,000 17,961,563
--------------------------------------------------------------
SERVICES (COMPUTER SYSTEMS)-0.35%
Shared Medical Systems Corp. 39,000 1,616,063
--------------------------------------------------------------
Total Domestic Common Stocks
(Cost $350,273,585) 422,334,966
--------------------------------------------------------------
FOREIGN STOCKS & OTHER EQUITY INTERESTS-3.16%
FRANCE-0.02%
Sanofi-Synthelabo S.A. (Health
Care-Drugs-Generic & Other) 3,000 112,042
--------------------------------------------------------------
</TABLE>
6
<PAGE> 9
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
GERMANY-0.39%
Altana A.G. (Health
Care-Drugs-Generic & Other) 25,000 $ 1,795,718
--------------------------------------------------------------
ISRAEL-1.72%
Teva Pharmaceutical Industries
Ltd.-ADR (Health
Care-Drugs-Generic & Other) 180,000 7,920,000
--------------------------------------------------------------
JAPAN-0.17%
Banyu Pharmaceutical Co., Ltd.
(Health Care-Drugs-Generic &
Other) 3,000 66,120
--------------------------------------------------------------
Chugai Pharmaceutical Co., Ltd.
(Health Care-Drugs-Generic &
Other) 4,000 77,048
--------------------------------------------------------------
Daiichi Pharmaceutical Co., Ltd.
(Health Care-Drugs-Generic &
Other) 3,000 51,618
--------------------------------------------------------------
Eisai Co., Ltd. (Health
Care-Drugs-Generic & Other) 5,000 145,854
--------------------------------------------------------------
Kissei Pharmaceutical Co., Ltd.
(Health Care-Drugs-Generic &
Other) 2,000 32,801
--------------------------------------------------------------
Kyowa Hakko Kogyo (Health
Care-Drugs-Generic & Other) 5,000 47,923
--------------------------------------------------------------
Rohto Pharmaceutical Co., Ltd.
(Health Care-Drugs-Generic &
Other) 8,000 55,045
--------------------------------------------------------------
Shionogi & Co., Ltd. (Health
Care-Drugs-Generic & Other) 3,000 46,395
--------------------------------------------------------------
Taisho Pharmaceutical Co., Ltd.
(Health Care-Drugs-Generic &
Other) 2,000 67,046
--------------------------------------------------------------
Takeda Chemical Industries, Ltd.
(Health Care-Drugs-Generic &
Other) 1,000 65,843
--------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
JAPAN-(CONTINUED)
Yamanouchi Pharmaceutical Co., Ltd.
(Health Care-Drugs-Generic &
Other) 2,000 $ 105,755
--------------------------------------------------------------
761,448
--------------------------------------------------------------
NETHERLANDS-0.81%
Akzo Nobel N.V.
(Chemicals-Diversified) 10,000 409,683
--------------------------------------------------------------
Akzo Nobel N.V.-ADR
(Chemicals-Diversified) 80,000 3,321,250
--------------------------------------------------------------
3,730,933
--------------------------------------------------------------
SWITZERLAND-0.05%
Roche Holding A.G. (Health
Care-Drugs-Generic & Other) 20 209,115
--------------------------------------------------------------
Total Foreign Stocks & Other
Equity Interests (Cost
$10,382,417) 14,529,256
--------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
MONEY MARKET FUNDS-1.86%
STIC Liquid Assets Portfolio(c) $4,280,930 4,280,930
--------------------------------------------------------------
STIC Prime Portfolio(c) 4,280,930 4,280,930
--------------------------------------------------------------
Total Money Market Funds (Cost
$8,561,860) 8,561,860
--------------------------------------------------------------
TOTAL INVESTMENTS-96.74% (Cost
$369,217,862) 445,426,082
--------------------------------------------------------------
OTHER ASSETS LESS LIABILITIES-3.26% 15,028,655
--------------------------------------------------------------
NET ASSETS-100.00% $460,454,737
==============================================================
</TABLE>
Investment Abbreviations:
ADR - American Depositary Receipt
Notes to Schedule of Investments:
(a) Non-income producing security.
(b) Affiliated issuers are those in which the Fund's holdings of an issuer
represent 5% or more of the outstanding voting securities of the issuer. The
Fund has not owned enough of the outstanding voting securities of the issuer
to have control (as defined in the Investment Company Act of 1940) of that
issuer. The market value as of 04/30/00 represented 1.11% of the Fund's net
assets.
(c) The money market fund has the same investment advisor as the Fund.
See Notes to Financial Statements.
7
<PAGE> 10
STATEMENT OF ASSETS AND LIABILITIES
April 30, 2000
(Unaudited)
<TABLE>
<S> <C>
ASSETS:
Investments, at market value (cost
$369,217,862) $ 445,426,082
-------------------------------------------------------------
Receivables for:
Investments sold 22,295,261
-------------------------------------------------------------
Collateral for securities loaned 7,732,071
-------------------------------------------------------------
Fund shares sold 316,879
-------------------------------------------------------------
Dividends and interest 272,623
-------------------------------------------------------------
Other assets 26,439
-------------------------------------------------------------
Total assets 476,069,355
-------------------------------------------------------------
LIABILITIES:
Payables for:
Investments purchased 6,078,110
-------------------------------------------------------------
Return of collateral for securities loaned 7,732,071
-------------------------------------------------------------
Fund shares reacquired 867,489
-------------------------------------------------------------
Accrued advisory fees 361,824
-------------------------------------------------------------
Accrued administrative services fees 9,041
-------------------------------------------------------------
Accrued distribution fees 284,919
-------------------------------------------------------------
Accrued transfer agent fees 87,756
-------------------------------------------------------------
Accrued trustees' fees 1,264
-------------------------------------------------------------
Accrued operating expenses 192,144
-------------------------------------------------------------
Total liabilities 15,614,618
-------------------------------------------------------------
Net assets applicable to shares
outstanding $ 460,454,737
=============================================================
NET ASSETS:
Class A $ 354,574,398
=============================================================
Class B $ 101,498,833
=============================================================
Class C $ 4,381,506
=============================================================
SHARES OUTSTANDING, $0.01 PAR VALUE PER
SHARE:
Class A 15,062,006
=============================================================
Class B 4,541,015
=============================================================
Class C 195,977
=============================================================
Class A:
Net asset value and redemption price per
share $ 23.54
-------------------------------------------------------------
Offering price per share:
(Net asset value of $23.54 divided by
95.25%) $ 24.71
=============================================================
Class B:
Net asset value and offering price per
share $ 22.35
=============================================================
Class C:
Net asset value and offering price per
share $ 22.36
=============================================================
</TABLE>
STATEMENT OF OPERATIONS
For the six months ended April 30, 2000
(Unaudited)
<TABLE>
<S> <C>
INVESTMENT INCOME:
Dividends (net of $16,279 foreign withholding
tax) $ 1,675,282
------------------------------------------------------------
Interest 568
------------------------------------------------------------
Securities lending 12,369
------------------------------------------------------------
Total investment income 1,688,219
------------------------------------------------------------
EXPENSES:
Advisory and administrative fees 2,299,138
------------------------------------------------------------
Accounting services fees 53,994
------------------------------------------------------------
Custodian fees 42,406
------------------------------------------------------------
Distribution fees -- Class A 909,514
------------------------------------------------------------
Distribution fees -- Class B 517,544
------------------------------------------------------------
Distribution fees -- Class C 13,151
------------------------------------------------------------
Trustees' fees 9,790
------------------------------------------------------------
Transfer agent fees 471,773
------------------------------------------------------------
Other 127,594
------------------------------------------------------------
Total expenses 4,444,904
------------------------------------------------------------
Net investment income (loss) (2,756,685)
------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) FROM
INVESTMENT SECURITIES, FOREIGN CURRENCIES,
AND OPTION CONTRACTS:
Net realized gain (loss) from:
Investment securities 61,695,739
------------------------------------------------------------
Foreign currencies (807,149)
------------------------------------------------------------
Option contracts written (7,366,327)
------------------------------------------------------------
53,522,263
------------------------------------------------------------
Change in net unrealized appreciation
(depreciation) of:
Investment securities (13,455,315)
------------------------------------------------------------
Foreign currencies (4,776)
------------------------------------------------------------
Option contracts written (870,781)
------------------------------------------------------------
(14,330,872)
------------------------------------------------------------
Net gain from investment securities, foreign
currencies, and option contracts 39,191,391
------------------------------------------------------------
Net increase in net assets resulting from
operations $ 36,434,706
============================================================
</TABLE>
See Notes to Financial Statements.
8
<PAGE> 11
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) $ (2,756,685) $ (4,551,421)
------------------------------------------------------------------------------------------
Net realized gain from investment securities, foreign
currencies and option contracts 53,522,263 44,733,785
------------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) of
investment securities, foreign currencies and option
contracts (14,330,872) 45,885,756
------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 36,434,706 86,068,120
------------------------------------------------------------------------------------------
Distributions to shareholders from net realized gains:
Class A (33,323,546) --
------------------------------------------------------------------------------------------
Class B (9,919,266) --
------------------------------------------------------------------------------------------
Class C (162,378) --
------------------------------------------------------------------------------------------
Advisor Class* (84,147) --
------------------------------------------------------------------------------------------
Share transactions-net:
Class A 1,898,500 (66,396,665)
------------------------------------------------------------------------------------------
Class B 516,138 (15,601,954)
------------------------------------------------------------------------------------------
Class C 3,135,733 1,345,583
------------------------------------------------------------------------------------------
Advisor Class* (710,294) (6,483,138)
------------------------------------------------------------------------------------------
Net increase (decrease) in net assets (2,214,554) (1,068,054)
------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 462,669,291 463,737,345
------------------------------------------------------------------------------------------
End of period $460,454,737 $462,669,291
==========================================================================================
NET ASSETS CONSIST OF:
Shares of beneficial interest $333,929,454 $329,089,377
------------------------------------------------------------------------------------------
Undistributed net investment income (2,756,685) --
------------------------------------------------------------------------------------------
Undistributed net realized gain from investment
securities, foreign currencies and option contracts 53,079,190 43,046,264
------------------------------------------------------------------------------------------
Unrealized appreciation of investment securities, foreign
currencies and option contracts 76,202,778 90,533,650
------------------------------------------------------------------------------------------
$460,454,737 $462,669,291
==========================================================================================
</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.
9
<PAGE> 12
NOTES TO FINANCIAL STATEMENTS
April 30, 2000
(Unaudited)
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES
AIM Global Health Care 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.
10
<PAGE> 13
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.
In addition, the Fund's policy of concentrating its investments in
companies in the health care industry subjects the Fund to greater risk than
a fund that is more diversified.
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 in expenses 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 $53,994 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 $273,325 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
11
<PAGE> 14
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 $909,514, $517,544 and $13,151,
respectively, as compensation under the Plans.
AIM Distributors received commissions of $27,929 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 $2,221 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-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 4-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 $7,580,463 were on
loan to brokers. The loans were secured by cash collateral of $7,732,071
received by the Fund. For the six months ended April 30, 2000, the Fund received
fees of $12,369 for securities lending.
NOTE 5-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
$688,310,679 and $730,838,427, respectively.
The amount of unrealized appreciation of investment securities, for tax
purposes, as of April 30, 2000 is as follows:
<TABLE>
<S> <C>
Aggregate unrealized appreciation of
investment securities $ 99,039,354
---------------------------------------------------------
Aggregate unrealized (depreciation) of
investment securities (22,831,134)
---------------------------------------------------------
Net unrealized appreciation of investment
securities $ 76,208,220
=========================================================
Investments have the same cost for tax and financial
statement purposes.
</TABLE>
NOTE 6-CALL OPTION CONTRACTS
Transactions in call options written during the six months ended April 30, 2000
are summarized as follows:
<TABLE>
<CAPTION>
CALL OPTION CONTRACTS
------------------------
NUMBER OF PREMIUMS
CONTRACTS RECEIVED
--------- ------------
<S> <C> <C>
Beginning of period 19,050 $ 7,216,094
-------------------------- -------- ------------
Written 23,700 10,019,498
-------------------------- -------- ------------
Closed (34,050) (13,110,405)
-------------------------- -------- ------------
Exercised (3,500) (1,533,199)
-------------------------- -------- ------------
Expired (5,200) (2,591,988)
-------------------------- -------- ------------
End of period -- --
========================== ======== ============
</TABLE>
12
<PAGE> 15
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 1,084,361 $ 25,847,513 6,319,231 $ 143,915,406
-----------------------------------------------------------------------------------------------------------------------
Class B 590,898 13,286,592 691,366 16,088,681
-----------------------------------------------------------------------------------------------------------------------
Class C* 165,746 3,715,817 58,588 1,413,024
-----------------------------------------------------------------------------------------------------------------------
Advisor Class** 12,143 310,037 18,009 438,450
-----------------------------------------------------------------------------------------------------------------------
Issued as reinvestment of dividends:
Class A 1,402,486 30,938,841 -- --
-----------------------------------------------------------------------------------------------------------------------
Class B 437,922 9,187,612 -- --
-----------------------------------------------------------------------------------------------------------------------
Class C* 6,991 146,741 -- --
-----------------------------------------------------------------------------------------------------------------------
Advisor Class** 3,706 84,344 -- --
-----------------------------------------------------------------------------------------------------------------------
Conversion of Advisor Class shares to Class A shares***:
Class A 44,266 1,041,571 -- --
-----------------------------------------------------------------------------------------------------------------------
Advisor Class (42,881) (1,041,571) -- --
-----------------------------------------------------------------------------------------------------------------------
Reacquired:
Class A (2,374,176) (55,929,425) (9,158,822) (210,312,070)
-----------------------------------------------------------------------------------------------------------------------
Class B (970,910) (21,958,066) (1,386,892) (31,690,636)
-----------------------------------------------------------------------------------------------------------------------
Class C* (32,435) (726,825) (2,913) (67,441)
-----------------------------------------------------------------------------------------------------------------------
Advisor Class** (2,513) (63,104) (274,593) (6,921,588)
-----------------------------------------------------------------------------------------------------------------------
325,604 $ 4,840,077 (3,736,026) $ (87,136,174)
=======================================================================================================================
</TABLE>
* Class C shares commenced sales on March 1, 1999.
** Advisor Class share activity for the period November 1, 1999 through
February 11, 2000.
*** 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.
13
<PAGE> 16
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(a) 1999(a) 1998(a) 1997(a) 1996(a) 1995
---------------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 24.00 $ 20.15 $ 27.98 $ 23.60 $ 21.84 $ 19.60
------------------------------------------------- -------- -------- -------- -------- -------- --------
Income from investment operations:
Net investment income (loss) (0.13) (0.19) (0.21) (0.25) (0.17) (0.15)
------------------------------------------------- -------- -------- -------- -------- -------- --------
Net realized and unrealized gain (loss) on
investments 1.95 4.04 (0.91) 6.48 4.79 3.73
------------------------------------------------- -------- -------- -------- -------- -------- --------
Net increase (decrease) from investment
operations 1.82 3.85 (1.12) 6.23 4.62 3.58
------------------------------------------------- -------- -------- -------- -------- -------- --------
Distributions to shareholders:
From net realized gain on investments (2.28) -- (6.70) (1.85) (2.86) (1.34)
------------------------------------------------- -------- -------- -------- -------- -------- --------
In excess of net realized gain on investments -- -- (0.01) -- -- --
------------------------------------------------- -------- -------- -------- -------- -------- --------
Total distributions (2.28) -- (6.71) (1.85) (2.86) (1.34)
------------------------------------------------- -------- -------- -------- -------- -------- --------
Net asset value, end of period $ 23.54 $ 24.00 $ 20.15 $ 27.98 $ 23.60 $ 21.84
================================================= ======== ======== ======== ======== ======== ========
Total return(b) 8.23% 19.11% (4.71)% 28.36% 23.14% 19.79%
================================================= ======== ======== ======== ======== ======== ========
Ratios and supplemental data:
Net assets, end of period (000s omitted) $354,574 $357,747 $357,534 $472,083 $467,861 $426,380
================================================= ======== ======== ======== ======== ======== ========
Ratio of expenses to average net assets 1.77%(c) 1.82% 1.84% 1.80% 1.84% 1.91%
================================================= ======== ======== ======== ======== ======== ========
Ratio of net investment income (loss) to average
net assets (1.05)%(c) (0.81)% (0.98)% (1.03)% (0.75)% (0.78)%
================================================= ======== ======== ======== ======== ======== ========
Portfolio turnover rate 153% 123% 187% 149% 157% 99%
================================================= ======== ======== ======== ======== ======== ========
</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 charge and is not annualized for
periods less than one year.
(c) Ratios are annualized and based on average net assets of $365,804,746.
<TABLE>
<CAPTION>
CLASS B
-----------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED OCTOBER 31,
APRIL 30, --------------------------------------------------------
2000(a) 1999(a) 1998(a) 1997(a) 1996(a) 1995
---------------- -------- -------- -------- -------- -------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 22.96 $ 19.37 $ 27.27 $ 23.15 $ 21.56 $ 19.46
------------------------------------------------- -------- -------- -------- -------- -------- -------
Income from investment operations:
Net investment income (loss) (0.18) (0.30) (0.30) (0.37) (0.27) (0.25)
------------------------------------------------- -------- -------- -------- -------- -------- -------
Net realized and unrealized gain (loss) on
investments 1.85 3.89 (0.89) 6.34 4.72 3.69
------------------------------------------------- -------- -------- -------- -------- -------- -------
Net increase (decrease) from investment
operations 1.67 3.59 (1.19) 5.97 4.45 3.44
------------------------------------------------- -------- -------- -------- -------- -------- -------
Distributions to shareholders:
From net realized gain on investments (2.28) -- (6.70) (1.85) (2.86) (1.34)
------------------------------------------------- -------- -------- -------- -------- -------- -------
In excess of net realized gain on investments -- -- (0.01) -- -- --
------------------------------------------------- -------- -------- -------- -------- -------- -------
Total distributions (2.28) -- (6.71) (1.85) (2.86) (1.34)
------------------------------------------------- -------- -------- -------- -------- -------- -------
Net asset value, end of period $ 22.35 $ 22.96 $ 19.37 $ 27.27 $ 23.15 $ 21.56
================================================= ======== ======== ======== ======== ======== =======
Total return(b) 7.93% 18.53% (5.20)% 27.75% 22.59% 19.17%
================================================= ======== ======== ======== ======== ======== =======
Ratios and supplemental data:
Net assets, end of period (000s omitted) $101,499 $102,916 $100,311 $147,440 $107,622 $70,740
================================================= ======== ======== ======== ======== ======== =======
Ratio of expenses to average net assets 2.27%(c) 2.33% 2.34% 2.30% 2.34% 2.41%
================================================= ======== ======== ======== ======== ======== =======
Ratio of net investment income (loss) to average
net assets (1.55)%(c) (1.32)% (1.48)% (1.53)% (1.25)% (1.28)%
================================================= ======== ======== ======== ======== ======== =======
Portfolio turnover rate 153% 123% 187% 149% 157% 99%
================================================= ======== ======== ======== ======== ======== =======
</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 $104,077,441.
14
<PAGE> 17
NOTE 8-FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
ADVISOR CLASS
CLASS C ---------------------------------------------------------
--------------------------------------- NOVEMBER 1,
MARCH 1, 1999 1999
SIX MONTHS ENDED (DATE SALES TO YEAR ENDED OCTOBER 31,
APRIL 30, COMMENCED) TO FEBRUARY 11, -----------------------------------------
2000(a) OCTOBER 31, 1999(a) 2000(a) 1999(a) 1998(a) 1997(a) 1996(a)
---------------- ------------------- ------------ ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period $22.96 $22.50 $24.68 $20.59 $28.34 $23.77 $21.88
------------------------- ------ ------ ------ ------ ------ ------ ------
Income from investment
operations:
Net investment income
(loss) (0.17) (0.21) (0.05) (0.08) (0.10) (0.12) (0.05)
------------------------- ------ ------ ------ ------ ------ ------ ------
Net realized and
unrealized gain
(loss) on investments 1.85 0.67 1.94 4.17 (0.94) 6.54 4.80
------------------------- ------ ------ ------ ------ ------ ------ ------
Net increase
(decrease) from
investment
operations 1.68 0.46 1.89 4.09 (1.04) 6.42 4.75
------------------------- ------ ------ ------ ------ ------ ------ ------
Distributions to
shareholders:
From net realized gain
on investments (2.28) -- (2.28) -- (6.70) (1.85) (2.86)
------------------------- ------ ------ ------ ------ ------ ------ ------
In excess of net
realized gain on
investments -- -- -- -- (0.01) -- --
------------------------- ------ ------ ------ ------ ------ ------ ------
Total distributions (2.28) -- (2.28) -- (6.71) (1.85) (2.86)
------------------------- ------ ------ ------ ------ ------ ------ ------
Net asset value, end of
period $22.36 $22.96 $24.29 $24.68 $20.59 $28.34 $23.77
========================= ====== ====== ====== ====== ====== ====== ======
Total return(b) 7.98% 2.04% 8.29% 19.86% (4.28)% 29.00% 23.82%
========================= ====== ====== ====== ====== ====== ====== ======
Ratios and supplemental
data:
Net assets, end of period
(000s omitted) $4,381 $1,278 $ -- $ 729 $5,892 $6,819 $1,152
========================= ====== ====== ====== ====== ====== ====== ======
Ratio of expenses to
average net assets 2.27%(c) 2.33%(d) 1.37%(c) 1.34% 1.34% 1.30% 1.34%
========================= ====== ====== ====== ====== ====== ====== ======
Ratio of net investment
income (loss) to
average net assets (1.55)%(c) (1.32)%(d) (0.65)%(c) (0.33)% (0.48)% (0.53)% (0.25)%
========================= ====== ====== ====== ====== ====== ====== ======
Portfolio turnover rate 153% 123% 153% 123% 187% 149% 157%
========================= ====== ====== ====== ====== ====== ====== ======
<CAPTION>
ADVISOR CLASS
----------------
JUNE 1, 1995
(DATE SALES
COMMENCED) TO
OCTOBER 31, 1995
----------------
<S> <C>
Net asset value,
beginning of period $18.66
------------------------- ------
Income from investment
operations:
Net investment income
(loss) (0.02)
------------------------- ------
Net realized and
unrealized gain
(loss) on investments 3.24
------------------------- ------
Net increase
(decrease) from
investment
operations 3.22
------------------------- ------
Distributions to
shareholders:
From net realized gain
on investments --
------------------------- ------
In excess of net
realized gain on
investments --
------------------------- ------
Total distributions --
------------------------- ------
Net asset value, end of
period $21.88
========================= ======
Total return(b) 17.10%
========================= ======
Ratios and supplemental
data:
Net assets, end of period
(000s omitted) $ 539
========================= ======
Ratio of expenses to
average net assets 1.41%(d)
========================= ======
Ratio of net investment
income (loss) to
average net assets (0.28)%(d)
========================= ======
Portfolio turnover rate 99%
========================= ======
</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 $2,644,576 and
$925,927 for Class C and Advisor Class, respectively.
(d) Annualized.
15
<PAGE> 18
<TABLE>
<CAPTION>
BOARD OF TRUSTEES OFFICERS OFFICE OF THE FUND
<S> <C> <C>
C. Derek Anderson Robert H. Graham 11 Greenway Plaza
President, Plantagenet Capital Chairman and President Suite 100
Management, LLC (an investment Houston, TX 77046
partnership); Chief Executive Officer, Dana R. Sutton
Plantagenet Holdings, Ltd. Vice President and Treasurer INVESTMENT MANAGER
(an investment banking firm)
Samuel D. Sirko A I M Advisors, Inc.
Frank S. Bayley Vice President and Secretary 11 Greenway Plaza
Partner, law firm of Suite 100
Baker & McKenzie Melville B. Cox Houston, TX 77046
Vice President
Robert H. Graham 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>
16
<PAGE> 19
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<PAGE> 20
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<TABLE>
<S> <C> <C>
GROWTH FUNDS MONEY MARKET FUNDS A I M Management Group Inc. has provided
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AIM Constellation Fund(1) INTERNATIONAL GROWTH FUNDS shareholders, including individual investors,
AIM Dent Demographic Trends Fund AIM Advisor International Value Fund corporate clients and financial institutions,
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AIM Large Cap Opportunities Fund AIM Euroland Growth Fund(5) is distributed nationwide, and AIM today is the
AIM Mid Cap Equity Fund AIM European Development Fund eighth-largest mutual fund complex in the United
AIM Mid Cap Growth Fund AIM International Equity Fund States in assets under management, according to
AIM Mid Cap Opportunities Fund(2) AIM Japan Growth Fund Strategic Insight, an independent mutual fund
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</TABLE>
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countries using the euro as their currency (EMU-member countries). (6) Effective
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