<PAGE> 1
SEMIANNUAL REPORT / APRIL 30 2000
AIM GLOBAL INFRASTRUCTURE FUND
[COVER IMAGE]
[AIM LOGO APPEARS HERE]
--Registered Trademark--
<PAGE> 2
[COVER IMAGE]
-------------------------------------
L'ECLUSE DE LA MONNAIE BY PAUL SIGNAC
THROUGHOUT HISTORY, MAJOR INFRASTRUCTURE PROJECTS SUCH AS
BRIDGES, CANALS AND ROADS HAVE BEEN VITAL TO A NATION'S SUCCESS.
NOW, THE DEFINITION OF "INFRASTRUCTURE" HAS EXPANDED TO
INCLUDE TELECOMMUNICATIONS, ELECTRICITY AND HIGH TECHNOLOGY--
THE INTANGIBLE BRICKS AND MORTAR OF THE MODERN ECONOMY.
-------------------------------------
AIM Global Infrastructure Fund seeks to provide long-term growth of capital. The
fund invests in equity securities of companies in established and emerging
economies throughout the world that design, develop or provide products and
services necessary for creating and maintaining a country's infrastructure.
ABOUT FUND PERFORMANCE AND PORTFOLIO DATA THROUGHOUT THIS REPORT:
o AIM Global Infrastructure Fund's performance figures are historical, and
they reflect the reinvestment of distributions and changes in net asset
value.
o Had fees and expenses not been waived, returns would have been lower.
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 The fund's average annual total returns as of the close of the reporting
period are shown in a table in the managers' overview on the pages that
follow. In addition, industry regulations require us to provide average
annual returns (including sales charges) as of 3/31/00, the most recent
calendar quarter end, which were: Class A shares, one year, 60.42%; five
years, 18.88%; inception (5/31/94), 15.15%. Class B shares, one year,
62.53%; five years, 19.24%; inception (5/31/94), 15.45%. Class C shares, one
year, 66.60%; inception (3/1/99), 62.22%.
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 information required to
be provided by non-U.S. companies.
o Investing in a single-sector or single-region mutual fund may involve
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 unmanaged Lipper Global Fund Index represents an average of the
performance of global funds tracked by Lipper, Inc., an independent mutual
fund performance monitor.
o The unmanaged MSCI All Country (AC) World Index tracks the performance of
approximately 50 countries covered by Morgan Stanley Capital International
that are considered developing or emerging markets.
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 NEITHER GUARANTEED
NOR INSURED 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 shareholders or to persons who have
received a current prospectus of the fund.
AIM GLOBAL INFRASTRUCTURE 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
Charles T. had the idea of creating a mutual fund company that put
Bauer, people first. Our slogan, "people are the product," means
Chairman of 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 INFRASTRUCTURE FUND
<PAGE> 4
SEMIANNUAL REPORT / MANAGERS' OVERVIEW
FUND POSTS STRONG RESULTS IN VOLATILE MARKET
MARKETS WERE QUITE VOLATILE DURING THE LAST SIX MONTHS. HOW DID AIM GLOBAL
INFRASTRUCTURE FUND PERFORM?
The fund produced impressive results. Class A shares reported a total return of
31.10%, Class B shares 30.77% and Class C shares 30.69%. These figures are at
net asset value and do not include sales charges. By contrast, the MSCI AC World
Index produced a total return of 8.07%, and the Lipper Global Fund Index
returned 17.81% over the same period.
Net assets in the fund grew from $45.1 million to $57.1 million during the
six months covered by this report.
WHY WERE MARKETS VOLATILE DURING THE REPORTING PERIOD?
After an almost uninterrupted rise during the final months of 1999, U.S. stocks
began hitting air pockets early in 2000. A variety of factors led to unusual
volatility, especially in March and April.
o Economic growth continued to sizzle; an annualized growth rate above 7% for
the fourth quarter of 1999 and above 5% in the first quarter of 2000 led
many to anticipate strong action by the Federal Reserve Board (the Fed) in
May.
o The court ruling that Microsoft (not a fund holding) had exercised illegal
monopoly powers cast a cloud over a tech sector already subject to doubts
about the untested heights to which many tech-stock values had risen.
o Finally, a hint of inflation just before the reporting period closed: the
Employment Cost Index, which tracks wages and benefits, rose 1.4% in the
first quarter of 2000, its highest rate in more than 10 years.
The pattern was similar overseas. In Europe, where the fund is heavily
invested, technology, media and telecommunications stocks, commonly referred to
as TMTs, almost single-handedly catapulted equity markets to new highs. Indeed,
the TMT sector rallied until the end of March, when heavy profit-taking racked
the market. By late April, however, sentiment began to improve with news of
stronger-than-expected earnings in the TMT sector.
ARE THE TMT STOCKS CONSIDERED TRADITIONAL INFRASTRUCTURE STOCKS?
Webster's defines infrastructure as "a substructure or underlying foundation,
esp. the basic installations and facilities on which the continuance and growth
of a community, state, etc. depend, as roads, schools, power plants,
transportation and communications systems, etc." In recent years, the
communications-systems element of that definition has come to provide the best
growth possibilities for investors. While the fund owns more traditional
infrastructure investments such as electricity producers, we expect to focus
more on the new-economy infrastructure companies, and our holdings reflect this.
TYPES OF INFRASTRUCTURE
TRADITIONAL NEW-ECONOMY
Transportation Telephone and
systems wireless services
Construction Telecommunications
equipment
Utilities/energy Networking and
related technology
WHAT TRENDS IN NEW-ECONOMY INFRASTRUCTURE WERE MOST IMPORTANT TO THE FUND'S
INVESTMENT STRATEGY?
We believe 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 can flow through at faster speeds. The fund focused on companies
that are building communications networks to improve Internet bandwidth.
FUND PERFORMANCE
SIX-MONTH TOTAL RETURNS OF CLASS A, B & C SHARES VS. INDEXES
As of 4/30/00, excluding sales charges
[BAR CHART]
============================================================
FUND CLASS A SHARES 31.10%
FUND CLASS B SHARES 30.77%
FUND CLASS C SHARES 30.69%
MSCI ALL COUNTRY WORLD INDEX 8.07%
LIPPER GLOBAL FUND INDEX 17.81%
Past performance cannot guarantee comparable future results.
============================================================
AVERAGE ANNUAL TOTAL RETURNS
As of 4/30/00, including sales charges
CLASS A SHARES
============================================================
Inception (5/31/94) 12.54%
5 years 14.75
1 year 35.24*
* 41.97% excluding sales charges
============================================================
CLASS B SHARES
============================================================
Inception (5/31/94) 12.81%
5 years 15.07
1 year 36.22*
* 41.22% excluding CDSC
============================================================
CLASS C SHARES
============================================================
Inception (3/1/99) 40.77%
1 year 40.14*
* 41.14% excluding CDSC
============================================================
MARKET VOLATILITY CAN SIGNIFICANTLY IMPACT SHORT-TERM PERFORMANCE. RESULTS
OF AN INVESTMENT MADE TODAY MAY DIFFER SUBSTANTIALLY FROM THE HISTORICAL
PERFORMANCE SHOWN.
See important fund and index disclosures inside front cover
AIM GLOBAL INFRASTRUCTURE FUND
2
<PAGE> 5
SEMIANNUAL REPORT / MANAGERS' OVERVIEW
Two holdings in this area are Juniper Networks and Cisco Systems, rival
makers of routers and other equipment that direct data across the Internet.
Together the two companies virtually control the world market for routers.
Another important trend is wireless communications. While wireless is
growing 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. Now people are using their phones for more than talking. The
next-generation communications devices allow users to download information, use
the Internet and conduct e-commerce transactions over a wireless phone or a
hand-held computer.
We have invested in companies on the leading edge of this exciting trend.
These include Nokia, our largest holding. This 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 its market, is touting the prospects of
its next generation of mobile phones, which allow handsets to receive data and
offer Internet access. Vodafone AirTouch, another of our largest holdings,
became Europe's largest company with its acquisition of Germany's Mannesmann.
Vodafone is the world's largest wireless service, with more than 40 million
subscribers in 25 countries.
WHAT ABOUT THE TRADITIONAL INFRASTRUCTURE SEGMENT? WHICH OF THOSE HOLDINGS WERE
SIGNIFICANT?
Among the traditional utilities companies we own are the Italian electric
utility ACEA and U.S.-based AES, which owns and operates power plants around the
globe in both developed and developing nations.
One rather interesting company in this area is the French firm Vivendi, one
of our top 10 holdings. Formerly the Cie General des Eaux, a water utility,
Vivendi has in the past few years become a media giant as well. It owns Canal
Plus, Europe's leading pay-TV group, and it plans an Internet access portal in
conjunction with Vodafone AirTouch. Thus, the company straddles the traditional
and new infrastructure sectors. U.S.-based Enron is a similar old/new story.
Through its communications subsidiary, Enron Broadband Services, this
gas-pipeline operator is building a nationwide fiber-optic network.
WHAT'S YOUR OUTLOOK FOR THE REST OF THE YEAR?
On May 16, after the close of the reporting period, the Fed raised the federal
funds rate by a hefty 0.5% to cool U.S. growth enough to slow inflation.
Domestic markets could prove volatile for the near term if the Fed continues to
raise interest rates and if the fundamentals of the U.S. economy remain strong.
Overseas, the outlook for Europe appears bright, especially in view of tax cuts
proposed by socialist parties in Germany and elsewhere. Most developing nations
have recovered nicely from the crisis of a couple of years ago. Many are using
the term "global synchronicity" to describe the current worldwide upswing in
commerce.
Worldwide, we believe that technology and telecommunications will continue
to be a driving force, as wireless communications and Internet usage expand.
Simultaneously, the demand for clean water, reliable electricity and improved
transportation should rise with global living standards. All in all, we think
the prospects are good for a fund investing in both the old-fashioned and the
more up-to-date infrastructure sectors.
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. Nokia Oyj - ADR (Finland) 7.97% 1. Communications Equipment 17.96% 1. United States 46.06%
2. Vodafone AirTouch PLC 7.35 2. Telephone 17.87 2. United Kingdom 13.49
(United Kingdom)
3. Telecommunications 10.04 3. Finland 8.68
3. Enron Corp. 5.59 (Long Distance)
4. France 4.02
4. Cisco Systems, Inc. 4.30 4. Telecommunications 8.02
(Cellular/Wireless) 5. Spain 4.00
5. Vivendi (France) 3.02
5. Electric Companies 7.63 6. Italy 3.47
6. NTT DoCoMo, Inc. (Japan) 2.64
6. Natural Gas 6.20 7. Netherlands 3.32
7. SBC Communications, Inc. 2.37
7. Computers (Networking) 4.84 8. Japan 3.29
8. AES Corp. (The) 2.36
8. Manufacturing (Diversified) 4.72 9. Ireland 1.75
9. ACEA S.p.A. (Italy) 2.08
9. Computers (Software & Services) 3.58 10. South Korea 1.15
10. Bell Atlantic Corp. 2.05
10. Power Producers (Independent) 3.28
The fund's portfolio composition 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 INFRASTRUCTURE FUND
3
<PAGE> 6
SEMIANNUAL REPORT / FOR CONSIDERATION
TEST YOUR GLOBAL INVESTING IQ
How much do you know about international investing? Take this quiz and find out.
(Suggestion: Fold back the opposite page before you begin).
Some of the answers may surprise you. They may even change your opinion
about the potential benefits of investing overseas.
For more information about international investing, please see your
financial advisor. We think you'll come to the same conclusion as many other
investors: International opportunities are too attractive to ignore, especially
when you're saving for long-term goals.
[ARTWORK]
QUESTIONS
1. WHAT PERCENTAGE OF THE WORLD'S SECURITIES ARE TRADED OUTSIDE THE UNITED
STATES?
a. 40%
b. 60%
c. 80%
2. HOW MANY OF THE WORLD'S LARGEST 100 COMPANIES ARE FOREIGN-OWNED?
A. FEWER THAN 20
b. 20 to 50
c. More than 50
3. WHICH OF THESE PRODUCTS OR BRANDS IS FOREIGN-OWNED?
a. Dr. Pepper
b. Lean Cuisine
c. Panasonic
d. All of the above
4. FOREIGN INVESTING INVOLVES GREATER POLITICAL, ECONOMIC AND CURRENCY RISKS
THAN INVESTING IN THE UNITED STATES.
a. True
b. False
5. WHAT MARKET HAD THE HIGHEST RETURNS OVER THE PAST 20 YEARS?
a. United States
b. Netherlands
c. Sweden
d. Hong Kong
6. HOW MANY TIMES HAS THE U.S. STOCK MARKET RANKED NO. 1 AMONG THE WORLD'S
TOP-PERFORMING MARKETS OVER THE PAST 18 YEARS?
a. 0
b. 3
c. 5
7. A GLOBAL MUTUAL FUND CONTAINS:
a. U.S. securities as well as foreign securities
b. A broad spectrum of non-U.S. securities
c. A greater number of securities than any other type of fund
8. THE ADVANTAGES OF MUTUAL FUND INVESTING CAN BE EVEN GREATER WITH
INTERNATIONAL INVESTING THAN WITH DOMESTIC.
a. True
b. False
9. INVESTING YOUR RETIREMENT SAVINGS IN SOMETHING AS RISKY AS FOREIGN
SECURITIES IS UNWISE.
a. True
b. False
10. HOW MUCH OF YOUR PORTFOLIO SHOULD YOU INVEST OVERSEAS?
a. Less than 5%
b. 5% to 15%
c. 20% to 40%
AIM GLOBAL INFRASTRUCTURE FUND
4
<PAGE> 7
SEMIANNUAL REPORT / FOR CONSIDERATION
[ARTWORK]
ANSWERS
1. ANSWER: C. Approximately 83% of the world's securities are traded in markets
outside the United States. Source: Morgan Stanley Capital International
2. ANSWER: B. 42 of the world's largest 100 companies (in terms of market
capitalization) are located outside the United States, as of December 31,
1999.
3. ANSWER: D. Dr. Pepper--Cadbury Schweppes (England); Lean Cuisine--Nestle
(Switzerland); Panasonic--Matsushita (Japan). These names are presented as
examples and are not necessarily holdings of any AIM fund.
4. ANSWER: A. TRUE. International investing can pose greater risks, as well as
greater rewards, compared to U.S. investments. These include, for instance,
risks relating to fluctuations in the value of the U.S. dollar relative to
the value of other currencies, the custody arrangements made for the funds'
foreign holdings, differences in accounting, political risks and the lesser
degree of public information required to be provided by non-U.S. companies.
5. ANSWER: C. Over the 20 years ended December 31, 1999, the markets ranked as
follows in terms of average annual total return: 1. Sweden, 23.20% 2.
Netherlands, 18.20% 3. Hong Kong, 17.01% 4. United States, 16.85%. Source:
Lipper, Inc.
6. ANSWER: A. The U.S. stock market never ranked No. 1 among foreign stock
markets over the past 18 years ending December 31, 1999. It was in the top
five only four times. Source: Morgan Stanley Capital International.
7. Answer: A. Global funds include U.S. securities as well as foreign
securities. International funds contain few or no U.S. securities in their
portfolios.
8. ANSWER: A. TRUE. Finding information on foreign stocks can be difficult,
trading can be more complicated, and buying a diversified foreign portfolio
can be expensive. So the advantages of mutual fund diversification and
professional management can be even greater when you invest overseas.
9. ANSWER: B. FALSE. It's important to include growth in your retirement
investment program to gain the potential to outpace inflation. Foreign
stocks have historically been an effective way to add growth to your
portfolio. Source: Morgan Stanley Capital International.
10. ANSWER: C. Some asset allocation experts recommend that 20% to 40% of your
portfolio should be in foreign investments. Of course, your investment
decisions should be based on your goals and risk tolerance. Your financial
advisor can help you find the allocation that's right for you.
HOW DID YOU DO?
8-10 CORRECT: Excellent. You have a keen understanding of global investing. Are
you putting that knowledge to work?
5-7 CORRECT: Not bad. Time to build on what you know. Knowledge is power!
FEWER THAN 5 CORRECT: Don't be discouraged. Your financial advisor can help you
learn more.
TALK TO YOUR PERSONAL ASSET ALLOCATION EXPERT--YOUR FINANCIAL ADVISOR. THIS QUIZ
IS ONLY A BRIEF INTRODUCTION TO A COMPLEX SUBJECT. THE CORRECT ANSWERS MAY
DEPEND ON YOUR OVERALL INVESTMENT STRATEGY, GOALS, RISK TOLERANCE AND AVAILABLE
RESOURCES. ASK YOUR FINANCIAL ADVISOR ABOUT THE POTENTIAL ROLE THAT FOREIGN
SECURITIES COULD PLAY WITHIN YOUR INVESTMENT PORTFOLIO, BASED ON YOUR PARTICULAR
SITUATION.
AIM GLOBAL INFRASTRUCTURE FUND
5
<PAGE> 8
SCHEDULE OF INVESTMENTS
April 30, 2000
(Unaudited)
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
DOMESTIC COMMON STOCKS & OTHER
EQUITY INTERESTS-45.40%
BROADCASTING (TELEVISION, RADIO &
CABLE)-0.74%
Comcast Corp.-Class A(a) 8,800 $ 352,550
--------------------------------------------------------------
UnitedGlobalCom Inc.-Class A(a) 1,300 69,062
--------------------------------------------------------------
421,612
--------------------------------------------------------------
COMMUNICATIONS EQUIPMENT-7.89%
Aether Systems, Inc.(a) 5,200 865,719
--------------------------------------------------------------
Copper Mountain Networks, Inc.(a) 5,700 475,237
--------------------------------------------------------------
Corning Inc. 1,500 296,250
--------------------------------------------------------------
JDS Uniphase Corp.(a) 2,000 207,375
--------------------------------------------------------------
Juniper Networks, Inc.(a) 4,500 957,094
--------------------------------------------------------------
Lucent Technologies Inc. 9,700 603,219
--------------------------------------------------------------
Sycamore Networks, Inc.(a) 6,100 478,850
--------------------------------------------------------------
Tellabs, Inc.(a) 11,270 617,737
--------------------------------------------------------------
4,501,481
--------------------------------------------------------------
COMPUTERS (NETWORKING)-4.84%
Cisco Systems, Inc.(a) 35,368 2,451,997
--------------------------------------------------------------
Foundry Networks, Inc.(a) 1,900 172,900
--------------------------------------------------------------
VeriSign, Inc.(a) 1,000 139,375
--------------------------------------------------------------
2,764,272
--------------------------------------------------------------
COMPUTERS (PERIPHERALS)-0.68%
EMC Corp.(a) 1,000 138,937
--------------------------------------------------------------
Net2000 Communications, Inc.(a) 16,700 246,325
--------------------------------------------------------------
385,262
--------------------------------------------------------------
COMPUTERS (SOFTWARE &
SERVICES)-2.72%
America Online, Inc.(a) 1,800 107,662
--------------------------------------------------------------
Caminus Corp.(a) 13,700 204,644
--------------------------------------------------------------
i2 Technologies, Inc.(a) 4,500 581,625
--------------------------------------------------------------
Oracle Corp.(a) 1,600 127,900
--------------------------------------------------------------
SkillSoft Corp.(a) 40,000 532,500
--------------------------------------------------------------
1,554,331
--------------------------------------------------------------
ELECTRIC COMPANIES-3.35%
FPL Group, Inc. 12,700 573,881
--------------------------------------------------------------
Montana Power Co. (The) 19,400 854,812
--------------------------------------------------------------
Pinnacle West Capital Corp. 13,700 481,212
--------------------------------------------------------------
1,909,905
--------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
ELECTRICAL EQUIPMENT-0.25%
Conexant Systems, Inc.(a) 2,400 $ 143,700
--------------------------------------------------------------
ELECTRONICS (SEMICONDUCTORS)-0.36%
Vitesse Semiconductor Corp.(a) 3,000 204,187
--------------------------------------------------------------
NATURAL GAS-6.20%
El Paso Energy Corp. 8,100 344,250
--------------------------------------------------------------
Enron Corp. 45,800 3,191,688
--------------------------------------------------------------
3,535,938
--------------------------------------------------------------
POWER PRODUCERS (INDEPENDENT)-3.28%
AES Corp. (The)(a) 14,988 1,347,983
--------------------------------------------------------------
Calpine Capital Trust-$2.88 Conv.
Pfd. 6,200 526,225
--------------------------------------------------------------
1,874,208
--------------------------------------------------------------
SERVICES (COMMERCIAL &
CONSUMER)-0.09%
Official Payments Corp.(a) 10,000 50,313
--------------------------------------------------------------
SERVICES (COMPUTER SYSTEMS)-1.45%
Brocade Communications Systems,
Inc.(a) 2,900 359,600
--------------------------------------------------------------
Clarent Corp.(a) 6,900 469,200
--------------------------------------------------------------
828,800
--------------------------------------------------------------
TELECOMMUNICATIONS (CELLULAR/
WIRELESS)-4.38%
Alamosa PCS Holdings, Inc.(a) 13,400 381,900
--------------------------------------------------------------
Global Crossing Ltd., 7.00%, Conv.
Pfd. (Acquired 12/09/99; Cost
$100,000)(b) 400 81,450
--------------------------------------------------------------
Infonet Services Corp.-Class B(a) 10,000 168,750
--------------------------------------------------------------
Phone.com, Inc.(a) 9,600 806,400
--------------------------------------------------------------
TeleCorp PCS, Inc.(a) 6,500 290,063
--------------------------------------------------------------
Tritel, Inc.(a) 8,900 290,363
--------------------------------------------------------------
Triton PCS Holdings, Inc.-Class A(a) 5,000 210,000
--------------------------------------------------------------
Western Wireless Corp.-Class A(a) 5,400 268,313
--------------------------------------------------------------
2,497,239
--------------------------------------------------------------
TELECOMMUNICATIONS (LONG
DISTANCE)-4.33%
AT&T Corp. 14,242 664,923
--------------------------------------------------------------
MCI WorldCom, Inc.(a) 21,200 963,275
--------------------------------------------------------------
Viatel, Inc., $3.88 Conv. Pfd.
(Acquired 04/07/00, Cost
$550,000)(b) 11,000 537,625
--------------------------------------------------------------
Williams Communications Group,
Inc.(a) 8,200 303,400
--------------------------------------------------------------
2,469,223
--------------------------------------------------------------
</TABLE>
6
<PAGE> 9
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
TELEPHONE-4.84%
Bell Atlantic Corp. 19,700 $ 1,167,225
--------------------------------------------------------------
Broadwing Inc.(a) 3,800 107,588
--------------------------------------------------------------
Broadwing Inc.-Series B, $3.375
Conv. Pfd. 1,000 47,938
--------------------------------------------------------------
Qwest Communications International,
Inc.(a) 2,000 86,750
--------------------------------------------------------------
SBC Communications Inc. 30,900 1,353,806
--------------------------------------------------------------
2,763,307
--------------------------------------------------------------
Total Domestic Common Stocks &
Other Equity Interests (Cost
$14,939,942) 25,903,778
--------------------------------------------------------------
FOREIGN STOCKS & OTHER EQUITY
INTERESTS-44.81%
CANADA-1.03%
360networks Inc. (Communications
Equipment)(a) 11,800 179,212
--------------------------------------------------------------
AT&T Canada Inc. (Telephone)(a) 2,200 93,775
--------------------------------------------------------------
Nortel Networks Corp.
(Communications Equipment) 2,800 317,100
--------------------------------------------------------------
590,087
--------------------------------------------------------------
FINLAND-8.68%
Nokia Oyj-ADR (Communications
Equipment) 80,000 4,550,000
--------------------------------------------------------------
Sonera Oyj
(Telecommunications-Cellular/
Wireless) 7,350 404,565
--------------------------------------------------------------
4,954,565
--------------------------------------------------------------
FRANCE-4.02%
Suez Lyonnaise des Eaux S.A.
(Manufacturing- Diversified) 3,650 572,833
--------------------------------------------------------------
Vivendi (Manufacturing-Diversified) 17,400 1,722,360
--------------------------------------------------------------
2,295,193
--------------------------------------------------------------
GERMANY-0.70%
Viag A.G.
(Manufacturing-Diversified) 20,800 401,185
--------------------------------------------------------------
IRELAND-1.75%
eircom PLC (Telecommunications-Long
Distance) 282,900 997,357
--------------------------------------------------------------
ITALY-3.47%
ACEA S.p.A. (Water Utilities)(a) 72,800 1,185,578
--------------------------------------------------------------
Telecom Italia S.p.A. (Telephone) 126,300 796,311
--------------------------------------------------------------
1,981,889
--------------------------------------------------------------
JAPAN-3.29%
Nippon Telegraph & Telephone Corp.
(Telecommunications-Long Distance) 30 372,274
--------------------------------------------------------------
NTT DoCoMo, Inc.
(Telecommunications-
Cellular/Wireless) 45 1,504,376
--------------------------------------------------------------
1,876,650
--------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
NETHERLANDS-3.32%
Completel Europe N.V.
(Telecommunications- Long
Distance)(a) 16,600 $ 291,482
--------------------------------------------------------------
KPNQwest N.V.
(Telecommunications-Long
Distance)(a) 8,900 370,043
--------------------------------------------------------------
Libertel N.V.
(Telecommunications-Cellular/
Wireless)(a) 9,750 171,202
--------------------------------------------------------------
Versatel Telecom International N.V.
(Telecommunications-Long
Distance)(a) 26,500 1,063,238
--------------------------------------------------------------
1,895,965
--------------------------------------------------------------
SINGAPORE-0.26%
Flextronics International Ltd.
(Manufacturing-Specialized)(a) 2,100 147,525
--------------------------------------------------------------
SOUTH KOREA-1.15%
Pohang Iron & Steel Co. Ltd.-ADR
(Iron & Steel) 31,200 655,200
--------------------------------------------------------------
SPAIN-4.00%
Endesa S.A. (Electric Companies) 11,600 251,811
--------------------------------------------------------------
Endesa S.A.-ADR (Electric Companies) 39,600 836,550
--------------------------------------------------------------
Telefonica S.A. (Telephone)(a) 5,700 126,950
--------------------------------------------------------------
Terra Networks, S.A.
(Computers-Software & Services)(a) 7,900 489,104
--------------------------------------------------------------
Union Electrica Fenosa, S.A.
(Electric Companies) 30,000 575,085
--------------------------------------------------------------
2,279,500
--------------------------------------------------------------
UNITED KINGDOM-13.14%
Bookham Technology PLC
(Communications Equipment)(a) 15,400 701,643
--------------------------------------------------------------
COLT Telecom Group PLC
(Telephone)(a) 4,800 204,040
--------------------------------------------------------------
Jazztel PLC-ADR (Telephone)(a) 11,800 613,600
--------------------------------------------------------------
National Grid Group PLC (Electric
Companies) 95,060 781,070
--------------------------------------------------------------
Thus PLC (Telecommunications-Long
Distance)(a) 29,400 168,754
--------------------------------------------------------------
Vodafone AirTouch PLC (Telephone) 913,891 4,192,273
--------------------------------------------------------------
Vodafone AirTouch PLC-ADR
(Telephone) 17,750 834,250
--------------------------------------------------------------
7,495,630
--------------------------------------------------------------
Total Foreign Stocks & Other
Equity Interests (Cost
$11,660,764) 25,570,746
--------------------------------------------------------------
</TABLE>
7
<PAGE> 10
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
<S> <C> <C>
CORPORATE BONDS & NOTES-1.01%
OIL & GAS (REFINING &
MARKETING)-0.00%
BG Transco Holdings PLC (United
Kingdom),
Unsec. Floating Rate Notes, 7.06%,
12/14/09(c)(d) GBP 325 $ 509
--------------------------------------------------------------
Unsec. Notes,
4.19%, 12/14/22(c) GBP 325 499
--------------------------------------------------------------
7.00%, 12/16/24(c) GBP 325 506
--------------------------------------------------------------
1,514
--------------------------------------------------------------
TELEPHONE-1.01%
COLT Telecom Group PLC (United
Kingdom), Conv. Bonds, 2.00%,
12/16/06 (Acquired 12/09/99, Cost
$210,371)(b)(c) EUR 205,000 198,632
--------------------------------------------------------------
NTL Inc., Conv. Sub. Notes, 5.75%,
12/15/09 (Acquired
12/17/99-03/01/00; Cost
$424,134)(b) USD 420,000 374,325
--------------------------------------------------------------
572,957
--------------------------------------------------------------
Total Corporate Bonds & Notes
(Cost $636,084) 574,471
--------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
MONEY MARKET FUNDS-7.54%
STIC Liquid Assets Portfolio(e) 2,150,253 $ 2,150,253
--------------------------------------------------------------
STIC Prime Portfolio(e) 2,150,253 2,150,253
--------------------------------------------------------------
Total Money Market Funds (Cost
$4,300,506) 4,300,506
--------------------------------------------------------------
TOTAL INVESTMENTS-98.76% (Cost
$31,537,296) 56,349,501
--------------------------------------------------------------
OTHER ASSETS LESS LIABILITIES-1.24% 709,495
--------------------------------------------------------------
NET ASSETS-100.00% $57,058,996
==============================================================
</TABLE>
Investment Abbreviations:
ADR - American Depositary Receipt
Conv. - Convertible
EUR - Euro
GBP - British Pound Sterling
Pfd. - Preferred
Sub. - Subordinated
Unsec. - Unsecured
USD - U.S. Dollars
Notes to Schedule of Investments:
(a) Non-income producing security.
(b) Restricted securities. May be resold to qualified institutional buyers in
accordance with the provisions of Rule 144A under the Securities Act of
1933, as amended. The valuation of these securities has been determined in
accordance with procedures established by the Board of Trustees. The
aggregate market value at 04/30/00 was $1,192,032 which represented 2.09% of
the Fund's net assets.
(c) Foreign denominated security. Par value is denominated in currency
indicated.
(d) The coupon rate shown on floating rate notes represents the rate at period
end.
(e) The money market fund has the same investment advisor as the Fund.
See Notes to Financial Statements.
8
<PAGE> 11
STATEMENT OF ASSETS AND LIABILITIES
April 30, 2000
(Unaudited)
<TABLE>
<S> <C>
ASSETS:
Investments, at market value (cost $31,537,296) $56,349,501
------------------------------------------------------------
Foreign currencies, at value (cost $559,772) 552,313
------------------------------------------------------------
Receivables for:
Collateral for securities loaned 2,756,916
------------------------------------------------------------
Investments sold 248,433
------------------------------------------------------------
Fund shares sold 141,108
------------------------------------------------------------
Dividends and interest 105,703
------------------------------------------------------------
Other assets 23,469
------------------------------------------------------------
Total assets $60,177,443
------------------------------------------------------------
LIABILITIES:
Payables for:
Fund shares reacquired 102,174
------------------------------------------------------------
Return of collateral for securities loaned 2,756,916
------------------------------------------------------------
Accrued advisory fees 102,416
------------------------------------------------------------
Accrued administrative services fees 4,098
------------------------------------------------------------
Accrued distribution fees 39,927
------------------------------------------------------------
Accrued transfer agent fees 13,293
------------------------------------------------------------
Accrued trustees' fees 1,000
------------------------------------------------------------
Accrued operating expenses 98,623
------------------------------------------------------------
Total liabilities 3,118,447
------------------------------------------------------------
Net assets applicable to shares outstanding $57,058,996
============================================================
NET ASSETS:
Class A $25,694,785
============================================================
Class B $31,172,276
============================================================
Class C $ 191,935
============================================================
SHARES OUTSTANDING, $0.01 PAR VALUE PER SHARE:
Class A 1,337,922
------------------------------------------------------------
Class B 1,671,884
------------------------------------------------------------
Class C 10,300
------------------------------------------------------------
Class A:
Net asset value and redemption price per
share $ 19.20
------------------------------------------------------------
Offering price per share:
(Net asset value of $19.20
divided by 95.25%) $ 20.16
============================================================
Class B:
Net asset value and offering price per share $ 18.64
============================================================
Class C:
Net asset value and offering price per share $ 18.63
============================================================
</TABLE>
STATEMENT OF OPERATIONS
For the six months ended April 30, 2000
(Unaudited)
<TABLE>
<S> <C>
INVESTMENT INCOME:
Dividends (net of $10,339 foreign withholding
tax) $ 263,343
------------------------------------------------------------
Interest 11,282
------------------------------------------------------------
Securities lending 15,052
------------------------------------------------------------
Total investment income 289,677
------------------------------------------------------------
EXPENSES:
Advisory and administrative fees 274,209
------------------------------------------------------------
Accounting services fees 25,000
------------------------------------------------------------
Custodian fees 12,884
------------------------------------------------------------
Distribution fees -- Class A 63,016
------------------------------------------------------------
Distribution fees -- Class B 154,574
------------------------------------------------------------
Distribution fees -- Class C 329
------------------------------------------------------------
Transfer agent fees 78,032
------------------------------------------------------------
Printing fees 63,600
------------------------------------------------------------
Trustees' fees 3,683
------------------------------------------------------------
Other 54,189
------------------------------------------------------------
Total expenses 729,516
------------------------------------------------------------
Less: Expenses paid indirectly (456)
------------------------------------------------------------
Fees waived by advisor (89,781)
------------------------------------------------------------
Net expenses 639,279
------------------------------------------------------------
Net investment income (loss) (349,602)
------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) FROM
INVESTMENT SECURITIES AND FOREIGN CURRENCIES:
Net realized gain (loss) from:
Investment securities 5,399,552
------------------------------------------------------------
Foreign currencies (27,889)
------------------------------------------------------------
5,371,663
------------------------------------------------------------
Change in net unrealized appreciation
(depreciation) of:
Investment securities 8,340,427
------------------------------------------------------------
Foreign currencies (13,588)
------------------------------------------------------------
8,326,839
------------------------------------------------------------
Net gain from investment securities and foreign
currencies 13,698,502
------------------------------------------------------------
Net increase in net assets resulting from
operations $13,348,900
============================================================
</TABLE>
See Notes to Financial Statements.
9
<PAGE> 12
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) $ (349,602) $ (65,857)
-----------------------------------------------------------------------------------------
Net realized gain from investment securities, foreign
currencies, and forward contracts 5,371,663 5,560,967
-----------------------------------------------------------------------------------------
Change in net unrealized appreciation of investment
securities, foreign currencies and forward contracts 8,326,839 5,993,037
-----------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 13,348,900 11,488,147
-----------------------------------------------------------------------------------------
Distributions to shareholders from net investment income:
Class A -- (90,183)
-----------------------------------------------------------------------------------------
Advisor Class* -- (56,937)
-----------------------------------------------------------------------------------------
Distributions to shareholders from net realized gains:
Class A (2,272,849) (1,403,586)
-----------------------------------------------------------------------------------------
Class B (2,931,493) (1,925,203)
-----------------------------------------------------------------------------------------
Class C (1,316)
-----------------------------------------------------------------------------------------
Advisor Class* (2,002) (392,100)
-----------------------------------------------------------------------------------------
Share transactions-net:
Class A 2,061,078 (6,581,799)
-----------------------------------------------------------------------------------------
Class B 1,556,306 (11,163,548)
-----------------------------------------------------------------------------------------
Class C 198,888 14,334
-----------------------------------------------------------------------------------------
Advisor Class* (22,973) (7,642,305)
-----------------------------------------------------------------------------------------
Net increase (decrease) in net assets 11,934,539 (17,753,180)
-----------------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 45,124,457 62,877,637
-----------------------------------------------------------------------------------------
End of period $57,058,996 $ 45,124,457
=========================================================================================
NET ASSETS CONSIST OF:
Shares of beneficial interest $26,641,811 $ 22,848,512
-----------------------------------------------------------------------------------------
Undistributed net investment income (loss) (349,602) --
-----------------------------------------------------------------------------------------
Undistributed net realized gain from investment
securities, foreign currencies and forward contracts 5,970,744 5,806,741
-----------------------------------------------------------------------------------------
Unrealized appreciation of investment securities, foreign
currencies and forward contracts 24,796,043 16,469,204
-----------------------------------------------------------------------------------------
$57,058,996 $ 45,124,457
=========================================================================================
</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.
10
<PAGE> 13
NOTES TO FINANCIAL STATEMENTS
April 30, 2000
(Unaudited)
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES
AIM Global Infrastructure 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 Fund
invests substantially all of its investable assets in Global Infrastructure
Portfolio (the "Portfolio"). The Portfolio is organized as a Delaware business
trust which is registered under the 1940 Act as an open-end management
investment company.
The Portfolio has investment objectives, policies and limitations
substantially identical to those of the Fund. Therefore, the financial
statements of the Fund and Portfolio have been presented on a consolidated
basis, and represent all activities of both the Fund and Portfolio. Through
April 30, 2000, all of the shares of beneficial interest of the Portfolio were
owned by either the Fund or INVESCO (NY) Asset Management, Inc., which has a
nominal ($100) investment in the Portfolio.
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 and the Portfolio 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.
11
<PAGE> 14
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.
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 Portfolio may enter into a foreign currency contract to attempt to
minimize the risk to the Portfolio from adverse changes in the relationship
between currencies. The Portfolio 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
Portfolio 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. 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.
H. Foreign Securities -- There are certain additional considerations and risks
associated with investing in foreign securities and currency transactions
that are not inherent in investments of domestic origin. The Portfolio'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 Portfolio's policy of concentrating its investments in
companies in the infrastructure industry subjects the Portfolio to greater
risk than a fund that is more diversified.
I. Indexed Securities -- The Portfolio 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 and the Portfolio's investment
manager and administrator. The Fund pays AIM administration fees at an
annualized rate of 0.25% of the Fund's average daily net assets. The Portfolio
pays AIM investment management and administration fees at an annual rate of
0.725% on the first $500 million of the Portfolio's average daily net assets,
plus 0.70% on the next $500 million of the Portfolio's average daily net assets,
plus 0.675% on the next $500 million of the Portfolio's average daily net
assets, plus 0.65% on the Portfolio'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. During the six months ended April 30,
2000, AIM waived fees of $89,781.
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 and the Portfolio. For the six months ended
April 30, 2000, AIM was paid $25,000 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 $49,030 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 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 $63,016,
$154,574 and $329, respectively, as compensation under the Plans.
AIM Distributors received commissions of $4,948 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 $6,825 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.
12
<PAGE> 15
NOTE 3-INDIRECT EXPENSES
During the six months ended April 30, 2000, the Fund received reductions in
custodian fees of $456 under an expense offset arrangement. The effect of the
above arrangement resulted in a reduction of the Fund's total expenses of $456
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 $2,702,859 were on
loan to brokers. The loans were secured by cash collateral of $2,756,916
received by the Portfolio. For the six months ended April 30, 2000, the
Portfolio received fees of $15,052 for securities lending.
NOTE 6-INVESTMENT SECURITIES
The aggregate amount of investment securities (other than short-term securities)
purchased and sold by the Portfolio during the six months ended April 30, 2000
was $12,504,174 and $17,486,469, 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 $26,013,186
---------------------------------------------------------
Aggregate unrealized (depreciation) of
investment securities (1,200,981)
---------------------------------------------------------
Net unrealized appreciation of investment
securities $24,812,205
---------------------------------------------------------
Investments have the same cost for tax and financial
statement purposes.
</TABLE>
NOTE 7-SHARE INFORMATION
Changes in shares outstanding during the six months ended April 30, 2000 and the
year ended October 31, 1999 were as follows:
<TABLE>
<CAPTION>
APRIL 30, 2000 OCTOBER 31, 1999
----------------------------- ------------------------------
SHARES AMOUNT SHARES AMOUNT
----------- -------------- ----------- ---------------
<S> <C> <C> <C> <C>
Sold:
Class A 179,547 $ 3,640,045 162,299 $ 2,474,900
-----------------------------------------------------------------------------------------------------------------------------
Class B 140,754 2,818,706 80,398 1,180,744
-----------------------------------------------------------------------------------------------------------------------------
Class C * 9,723 206,321 976 14,334
-----------------------------------------------------------------------------------------------------------------------------
Advisor Class ** 1 15 29,602 453,399
-----------------------------------------------------------------------------------------------------------------------------
Issued as reinvestment of dividends:
Class A 128,271 2,153,369 102,312 1,428,280
-----------------------------------------------------------------------------------------------------------------------------
Class B 164,254 2,682,268 126,907 1,737,353
-----------------------------------------------------------------------------------------------------------------------------
Class C * 81 1,316 -- --
-----------------------------------------------------------------------------------------------------------------------------
Advisor Class ** 51 875 32,402 459,131
-----------------------------------------------------------------------------------------------------------------------------
Conversion of Advisor Class shares to Class A shares***:
Class A 1,119 23,863 -- --
-----------------------------------------------------------------------------------------------------------------------------
Advisor Class (1,094) (23,863) -- --
-----------------------------------------------------------------------------------------------------------------------------
Reacquired:
Class A (193,324) (3,756,199) (701,304) (10,484,979)
-----------------------------------------------------------------------------------------------------------------------------
Class B (210,051) (3,944,668) (963,484) (14,081,645)
-----------------------------------------------------------------------------------------------------------------------------
Class C * (480) (8,749) -- --
-----------------------------------------------------------------------------------------------------------------------------
Advisor Class ** -- -- (544,836) (8,554,835)
-----------------------------------------------------------------------------------------------------------------------------
218,852 $ 3,793,299 (1,674,728) $ (25,373,318)
-----------------------------------------------------------------------------------------------------------------------------
</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.
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
-----------------------------------------------------------------------
YEAR ENDED OCTOBER 31,
SIX MONTHS ENDED ----------------------------------------------------
APRIL 30,
2000 1999 1998(a) 1997(a) 1996(a) 1995
---------------- ------- ------- ------- ------- ------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 16.33 $ 14.18 $ 15.01 $ 14.42 $ 12.11 $ 12.47
-------------------------------------------------------- ------- ------- ------- ------- ------- -------
Income from investment operations:
Net investment income (loss) (0.09) -- 0.07 (0.01) (0.03) (0.03)
-------------------------------------------------------- ------- ------- ------- ------- ------- -------
Net realized and unrealized gain (loss) on investments 4.88 3.07 (0.79) 1.32 2.34 (0.33)
-------------------------------------------------------- ------- ------- ------- ------- ------- -------
Net increase (decrease) from investment operations 4.79 3.07 (0.72) 1.31 2.31 (0.36)
-------------------------------------------------------- ------- ------- ------- ------- ------- -------
Distributions to shareholders:
From net investment income -- (0.07) -- -- -- --
-------------------------------------------------------- ------- ------- ------- ------- ------- -------
From net realized gain on investments (1.92) (0.85) (0.11) (0.72) -- --
-------------------------------------------------------- ------- ------- ------- ------- ------- -------
Total distributions (1.92) (0.92) (0.11) (0.72) -- --
-------------------------------------------------------- ------- ------- ------- ------- ------- -------
Net asset value, end of period $ 19.20 $ 16.33 $ 14.18 $ 15.01 $ 14.42 $ 12.11
======================================================== ======= ======= ======= ======= ======= =======
Total return(b) 31.03% 22.72% (4.82)% 9.38% 19.08% (2.89)%
======================================================== ======= ======= ======= ======= ======= =======
Ratios and supplemental data:
Net assets, end of period (000s omitted) $25,695 $19,958 $23,531 $38,281 $38,397 $36,241
======================================================== ======= ======= ======= ======= ======= =======
Ratio of expenses to average net assets:
With fee waivers 2.00%(c) 2.00%(e) 1.99% 2.00% 2.14% 2.36%
======================================================== ======= ======= ======= ======= ======= =======
Without fee waivers 2.32%(c) 2.22%(e) 2.23% 2.08% 2.25% 2.62%
======================================================== ======= ======= ======= ======= ======= =======
Ratio of net investment income (loss) to average net
assets (0.97)%(c) 0.09% 0.52% (0.09)% (0.19)% (0.32)%
======================================================== ======= ======= ======= ======= ======= =======
Portfolio turnover rate 24% 49% 96% 41% 41% 45%
======================================================== ======= ======= ======= ======= ======= =======
</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 $25,345,082.
<TABLE>
<CAPTION>
CLASS B
----------------------------------------------------------------------------
YEAR ENDED OCTOBER 31,
SIX MONTHS ENDED -------------------------------------------------------
APRIL 30,
2000 1999(a) 1998(a) 1997(a) 1996(a) 1995
---------------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 15.94 $ 13.87 $ 14.75 $ 14.24 $ 12.03 $ 12.45
--------------------------------------------------- ------- ------- ------- ------- ------- -------
Income from investment operations:
Net investment income (loss) (0.14) (0.06) -- (0.09) (0.09) (0.09)
--------------------------------------------------- ------- ------- ------- ------- ------- -------
Net realized and unrealized gain (loss) on
investments 4.76 2.98 (0.77) 1.32 2.30 (0.33)
--------------------------------------------------- ------- ------- ------- ------- ------- -------
Net increase (decrease) from investment
operations 4.62 2.92 (0.77) 1.23 2.21 (0.42)
--------------------------------------------------- ------- ------- ------- ------- ------- -------
Distributions to shareholders from net realized
gain on investments (1.92) (0.85) (0.11) (0.72) -- --
--------------------------------------------------- ------- ------- ------- ------- ------- -------
Net asset value, end of period $ 18.64 $ 15.94 $ 13.87 $ 14.75 $ 14.24 $ 12.03
=================================================== ======= ======= ======= ======= ======= =======
Total return(b) 30.70% 22.03% (5.31)% 8.83% 18.37% (3.37)%
=================================================== ======= ======= ======= ======= ======= =======
Ratios and supplemental data:
Net assets, end of period (000s omitted) $31,172 $25,134 $32,349 $57,199 $53,678 $50,181
=================================================== ======= ======= ======= ======= ======= =======
Ratio of expenses to average net assets:
With fee waivers 2.50%(c) 2.50% 2.49% 2.50% 2.64% 2.86%
=================================================== ======= ======= ======= ======= ======= =======
Without fee waivers 2.82%(c) 2.72% 2.73% 2.58% 2.75% 3.12%
=================================================== ======= ======= ======= ======= ======= =======
Ratio of net investment income (loss) to average
net assets (1.47)%(c) (0.41)% 0.02% (0.59)% (0.69)% (0.82)%
=================================================== ======= ======= ======= ======= ======= =======
Portfolio turnover rate 24% 49% 96% 41% 41% 45%
=================================================== ======= ======= ======= ======= ======= =======
</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 $31,084,684.
14
<PAGE> 17
NOTE 8-FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
CLASS C ADVISOR CLASS
-------------------------- -----------------------------------------------------------------------
MARCH 1, 1999 JUNE 1, 1995
(DATE SALES (DATE SALES
SIX MONTHS COMMENCED) NOVEMBER 1, 1999 COMMENCED)
ENDED TO TO YEAR ENDED OCTOBER 31, TO
APRIL 30, OCTOBER 31, FEBRUARY 11, ------------------------------------- OCTOBER 31,
2000(a) 1999(a) 2000 1999(a) 1998(a) 1997(a) 1996(a) 1995
---------- ------------- ---------------- ------- ------- ------- ------- ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning
of period $15.94 $13.99 $16.65 $14.46 $15.23 $14.52 $12.14 $12.00
---------------------------------------------------------------------------------------------------------------------------------
Income from investment
operations:
Net investment income
(loss) (0.14) (0.03) (0.04) 0.05 0.16 0.05 0.04 0.02
---------------------------------------------------------------------------------------------------------------------------------
Net realized and
unrealized gain (loss)
on investments 4.75 1.98 7.13 3.15 (0.82) 1.38 2.34 0.12
---------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
from investment
operations 4.61 1.95 7.09 3.20 (0.66) 1.43 2.38 0.14
---------------------------------------------------------------------------------------------------------------------------------
Distributions to
shareholders:
From net investment
income -- -- -- (0.16) -- -- -- --
---------------------------------------------------------------------------------------------------------------------------------
From net realized gain on
investments (1.92) -- (1.92) (0.85) (0.11) (0.72) -- --
---------------------------------------------------------------------------------------------------------------------------------
Total distributions (1.92) -- (1.92) (1.01) (0.11) (0.72) -- --
---------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of
period $18.63 $15.94 $21.82 $16.65 $14.46 $15.23 $14.52 $12.14
---------------------------------------------------------------------------------------------------------------------------------
Total return(b) 30.62% 13.94% 45.72% 23.29% (4.35)% 10.10% 19.60% 1.17%
---------------------------------------------------------------------------------------------------------------------------------
Ratios and supplemental
data:
Net assets, end of period
(000s omitted) $ 192 $ 16 $ -- $ 17 $6,997 $2,539 $ 344 $ 216
---------------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to
average net assets:
With fee waivers 2.50%(c) 2.50%(d) 1.50%(c) 1.50% 1.49% 1.50% 1.64% 1.86%(d)
---------------------------------------------------------------------------------------------------------------------------------
Without fee waivers 2.82%(c) 2.72%(d) 1.82%(c) 1.72% 1.73% 1.58% 1.75% 2.12%(d)
---------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment
income (loss) to average
net assets (1.47)%(c) (0.41)%(d) (0.47)%(c) 0.59% 1.02% 0.41% 0.31% 0.18%(d)
---------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 24% 49% 24% 49% 96% 41% 41% 45%
---------------------------------------------------------------------------------------------------------------------------------
</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 $66,091 and
$19,960 for Class C and Advisor Class, respectively.
(d) Annualized.
NOTE 9-SUBSEQUENT EVENT
The Board of Trustees of AIM Investment Funds unanimously approved on May 23 and
May 24, 2000, a restructuring of the Fund, (the "Restructuring), and recommended
that it be submitted to the Fund's shareholders for their approval. The
Restructuring would include eliminating the "master/feeder" investment
structure. It is anticipated that the Restructuring proposal will be submitted
to Fund shareholders in September 2000, and if approved, that the Restructuring
would be completed by September 2000.
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
Arthur C. Patterson Carol F. Relihan Houston, TX 77210-4739
Managing Partner, Accel Partners Vice President
(a venture capital firm) CUSTODIAN
Mary J. Benson
Ruth H. Quigley Assistant Vice President and State Street Bank and Trust Company
Private Investor 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
THE AIM FAMILY OF FUNDS--Registered Trademark--
<TABLE>
<S> <C> <C>
GROWTH FUNDS INTERNATIONAL GROWTH FUNDS A I M Management Group Inc. has provided
AIM Aggressive Growth Fund AIM Advisor International Value Fund leadership in the mutual fund industry
AIM Blue Chip Fund AIM Asian Growth Fund since 1976 and managed approximately
AIM Capital Development Fund AIM Developing Markets Fund $176 billion in assets for more than 7.4
AIM Constellation Fund(1) AIM Euroland Growth Fund(5) million shareholders, including
AIM Dent Demographic Trends Fund AIM European Development Fund individual investors, corporate clients
AIM Emerging Growth Fund AIM International Equity Fund and financial institutions, as of March
AIM Large Cap Growth Fund AIM Japan Growth Fund 31, 2000.
AIM Large Cap Opportunities Fund AIM Latin American Growth Fund The AIM Family of Funds--Registered
AIM Mid Cap Equity Fund Trademark-- is distributed nationwide, and
AIM Mid Cap Growth Fund GLOBAL GROWTH FUNDS AIM today is the eighth-largest mutual fund
AIM Mid Cap Opportunities Fund(2) AIM Global Aggressive Growth Fund complex in the United States in assets under
AIM Select Growth Fund AIM Global Growth Fund management, according to Strategic
AIM Small Cap Growth Fund(3) AIM Global Trends Fund(6) Insight, an independent mutual fund
AIM Small Cap Opportunities Fund(4) monitor.
AIM Value Fund GLOBAL GROWTH & INCOME FUNDS
AIM Weingarten Fund AIM Global Utilities Fund
GROWTH & INCOME FUNDS GLOBAL INCOME FUNDS
AIM Advisor Flex Fund AIM Global Income Fund
AIM Advisor Real Estate Fund AIM Strategic Income Fund
AIM Balanced Fund
AIM Basic Value Fund THEME FUNDS
AIM Charter Fund AIM Global Consumer Products and Services Fund
AIM Global Financial Services Fund
INCOME FUNDS AIM Global Health Care Fund
AIM Floating Rate Fund AIM Global Infrastructure Fund
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AIM Income Fund
AIM Intermediate Government Fund
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TAX-FREE INCOME FUNDS
AIM High Income Municipal Fund
AIM Municipal Bond Fund
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AIM Tax-Free Intermediate Fund
MONEY MARKET FUNDS
AIM Money Market Fund
AIM Tax-Exempt Cash 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
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accompanied by a current Quarterly Review of Performance for AIM Funds.
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