<PAGE> 1
SCHEDULE OF INVESTMENTS
April 30, 2000
(Unaudited)
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
DOMESTIC COMMON STOCKS-31.06%
BANKS (MONEY CENTER)-2.23%
Bank of America Corp. 230,000 $ 11,270,000
--------------------------------------------------------------
BEVERAGES (ALCOHOLIC)-3.64%
Anheuser-Busch Cos. Inc. 188,371 13,291,929
--------------------------------------------------------------
Brown-Forman Corp.-Class B 93,600 5,107,050
--------------------------------------------------------------
18,398,979
--------------------------------------------------------------
ELECTRIC COMPANIES-1.48%
Southern Co. (The) 300,000 7,481,250
--------------------------------------------------------------
ELECTRICAL EQUIPMENT-1.79%
Emerson Electric Co. 165,000 9,054,375
--------------------------------------------------------------
ELECTRONICS (SEMICONDUCTORS)-3.11%
Intel Corp. 124,000 15,724,750
--------------------------------------------------------------
FINANCIAL (DIVERSIFIED)-1.00%
American General Corp. 90,000 5,040,000
--------------------------------------------------------------
FOODS-1.99%
Bestfoods 200,000 10,050,000
--------------------------------------------------------------
HOUSEHOLD PRODUCTS
(NON-DURABLES)-0.61%
Procter & Gamble, Co. (The) 52,000 3,100,500
--------------------------------------------------------------
MANUFACTURING (DIVERSIFIED)-1.44%
Tyco International Ltd. 158,000 7,258,125
--------------------------------------------------------------
OIL (INTERNATIONAL
INTEGRATED)-3.26%
Exxon Mobil Corp. 211,884 16,461,094
--------------------------------------------------------------
PUBLISHING-3.36%
McGraw-Hill Cos., Inc. (The) 324,000 17,010,000
--------------------------------------------------------------
REAL ESTATE INVESTMENT
TRUSTS-4.22%
Equity Office Properties Trust 457,000 12,424,687
--------------------------------------------------------------
Equity Residential Properties
Trust 197,000 8,923,738
--------------------------------------------------------------
21,348,425
--------------------------------------------------------------
TELEPHONE-2.93%
Bell Atlantic Corp. 250,000 14,812,500
--------------------------------------------------------------
Total Domestic Common Stocks
(Cost $126,118,140) 157,009,998
--------------------------------------------------------------
FOREIGN STOCKS & OTHER EQUITY
INTERESTS-40.90%
AUSTRALIA-1.75%
Foster's Brewing Group Ltd.
(Beverages- Alcoholic) 1,700,000 4,294,853
--------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
AUSTRALIA--(CONTINUED)
National Australia Bank Ltd.-ADR
(Banks-Major Regional) 329,825 $ 4,518,814
--------------------------------------------------------------
8,813,667
--------------------------------------------------------------
BELGIUM-0.05%
Fortis(B)-CVG
(Financial-Diversified)(a) 34,440 235,001
--------------------------------------------------------------
FINLAND-1.36%
Nokia Oyj (Communications
Equipment) 120,000 6,889,006
--------------------------------------------------------------
FRANCE-1.62%
Compagnie de Saint-Gobain
(Manufacturing- Diversified)(a) 39,000 5,325,878
--------------------------------------------------------------
Societe Television Francaise 1
(Broadcasting- Television, Radio
& Cable) 4,200 2,877,334
--------------------------------------------------------------
8,203,212
--------------------------------------------------------------
HONG KONG-0.91%
Hutchison Whampoa Ltd.
(Retail-Food Chains) 318,000 4,613,311
--------------------------------------------------------------
ITALY-2.04%
Seat Pagine Gialle S.p.A.
(Publishing) 2,350,000 10,326,685
--------------------------------------------------------------
JAPAN-10.93%
Aeon Credit Service Ltd. (Consumer
Finance) 80,000 5,437,792
--------------------------------------------------------------
Fujitsu Ltd. (Electrical
Equipment) 380,000 10,768,162
--------------------------------------------------------------
JAFCO Co., Ltd.
(Financial-Diversified) 40,000 7,038,015
--------------------------------------------------------------
Rohm Co. Ltd.
(Electronics-Component
Distributors) 37,000 12,403,575
--------------------------------------------------------------
Sony Corp. (Electrical Equipment) 26,000 2,988,008
--------------------------------------------------------------
Sony Corp.-Bonus Shares
(Electrical Equipment)(a) 26,000 3,009,677
--------------------------------------------------------------
Toshiba Corp. (Electrical
Equipment) 1,400,000 13,587,072
--------------------------------------------------------------
55,232,301
--------------------------------------------------------------
NETHERLANDS-8.20%
ING Groep N.V. (Insurance Brokers) 146,878 8,020,449
--------------------------------------------------------------
Koninklijke (Royal) Philips
Electronics N.V. (Electrical
Equipment) 372,000 16,607,526
--------------------------------------------------------------
Royal Dutch Petroleum Co.
(Oil-International Integrated) 291,840 16,833,716
--------------------------------------------------------------
41,461,691
--------------------------------------------------------------
SOUTH KOREA-1.87%
Samsung Electronics N.V.
(Electronics- Component
Distributors)(a) 35,000 9,461,590
--------------------------------------------------------------
SPAIN-0.90%
Telefonica S.A. (Telephone)(a) 205,000 4,565,740
--------------------------------------------------------------
</TABLE>
5
<PAGE> 2
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
SWEDEN-1.25%
Telefonaktiebolaget LM Ericsson
A.B.-Class B (Communications
Equipment) 71,000 $ 6,316,218
--------------------------------------------------------------
SWITZERLAND-2.36%
Julius Baer Holding Ltd.
(Banks-Major Regional) 3,400 11,902,467
--------------------------------------------------------------
UNITED KINGDOM-7.66%
Abbey National PLC (Savings & Loan
Companies) 340,000 3,874,031
--------------------------------------------------------------
Allied Zurich PLC
(Insurance-Multi-Line) 600,000 5,958,011
--------------------------------------------------------------
CGU PLC (Insurance Brokers) 294,750 4,216,993
--------------------------------------------------------------
Diageo PLC (Beverages-Alcoholic) 659,559 5,337,146
--------------------------------------------------------------
EMI Group PLC (Leisure
Time-Products) 603,500 5,781,257
--------------------------------------------------------------
Lloyds TSB Group PLC (Banks-Major
Regional) 688,428 6,734,232
--------------------------------------------------------------
Reckitt Benckiser PLC (Household
Products/ Non-Durables) 668,093 6,826,697
--------------------------------------------------------------
38,728,367
--------------------------------------------------------------
Total Foreign Stocks & Other
Equity Interests (Cost
$168,562,440) 206,749,256
--------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
<S> <C> <C>
NON-U.S. DOLLAR DENOMINATED
GOVERNMENT BONDS-6.93%
DENMARK-1.46%
Kingdom of Denmark, Bonds,
8.00%, 03/15/06(b) DKK 54,000,000 7,354,435
--------------------------------------------------------------
GERMANY-2.78%
Bundesrepublik Deutschland, Bonds,
8.38%, 05/21/01(b) EUR 10,800,000 10,209,323
--------------------------------------------------------------
6.50%, 07/04/27(b) EUR 3,800,000 3,829,516
--------------------------------------------------------------
14,038,839
--------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
<S> <C> <C>
SPAIN-1.19%
Government of Spain, Bonds,
4.50%, 07/30/04(b) EUR 6,755,000 $ 6,016,055
--------------------------------------------------------------
UNITED KINGDOM-1.50%
United Kingdom Treasury, Gtd.
Bonds,
9.00%, 08/06/12(b) GBP 3,622,000 7,603,804
--------------------------------------------------------------
Total Non-U.S. Dollar
Denominated Government Bonds
(Cost $39,755,816) 35,013,133
--------------------------------------------------------------
U.S. TREASURY SECURITIES-5.79%
U.S. TREASURY BONDS-2.62%
8.75%, 08/15/20(c) $ 8,120,000 10,373,300
--------------------------------------------------------------
6.50%, 11/15/26(c) 2,745,000 2,845,549
--------------------------------------------------------------
13,218,849
--------------------------------------------------------------
U.S. TREASURY NOTES-3.17%
6.63%, 06/30/01(c) 8,050,000 8,050,000
--------------------------------------------------------------
5.63%, 05/15/08(c) 8,415,000 7,998,626
--------------------------------------------------------------
16,048,626
--------------------------------------------------------------
Total U.S. Treasury Securities
(Cost $29,210,882) 29,267,475
--------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
SHARES
<S> <C> <C>
MONEY MARKET FUNDS-13.53%
STIC Liquid Assets Portfolio(d) 34,183,974 34,183,974
--------------------------------------------------------------
STIC Prime Portfolio(d) 34,183,974 34,183,974
--------------------------------------------------------------
Total Money Market Funds (Cost
$68,367,948) 68,367,948
--------------------------------------------------------------
TOTAL INVESTMENTS-98.21% (Cost
$432,015,226) 496,407,810
--------------------------------------------------------------
OTHER ASSETS LESS
LIABILITIES-1.79% 9,048,619
--------------------------------------------------------------
NET ASSETS-100.00% $505,456,429
--------------------------------------------------------------
</TABLE>
Investment Abbreviations:
ADR - American Depositary Receipt
DKK - Danish Krona
EUR - Euro
GBP - British Pound Sterling
Gtd. - Guaranteed
Notes to Schedule of Investments:
(a)Non-income producing security.
(b)Foreign denominated security. Par value is denominated in currency indicated.
(c)A portion of the principal balance was pledged as collateral to cover margin
requirements for open futures contracts. See Note 6.
(d)The money market fund has the same investment advisor as the Fund.
See Notes to Financial Statements.
6
<PAGE> 3
STATEMENT OF ASSETS AND LIABILITIES
April 30, 2000
(Unaudited)
<TABLE>
<S> <C>
ASSETS:
Investments, at market value (cost
$432,015,226) $496,407,810
------------------------------------------------------------
Foreign currencies, at value (cost $4,468,639) 4,476,019
------------------------------------------------------------
Receivables for:
Investments sold 3,232,979
------------------------------------------------------------
Forward currency contracts outstanding 63,205
------------------------------------------------------------
Fund shares sold 241,144
------------------------------------------------------------
Dividends and interest 3,802,044
------------------------------------------------------------
Other assets 23,916
------------------------------------------------------------
Total assets 508,247,117
------------------------------------------------------------
LIABILITIES:
Payables for:
Fund shares reacquired 1,663,269
------------------------------------------------------------
Variation margin 127,750
------------------------------------------------------------
Accrued advisory fees 347,303
------------------------------------------------------------
Accrued administrative services fees 9,881
------------------------------------------------------------
Accrued distribution fees 329,963
------------------------------------------------------------
Accrued transfer agent fees 105,230
------------------------------------------------------------
Accrued trustees' fees 1,500
------------------------------------------------------------
Accrued operating expenses 205,792
------------------------------------------------------------
Total liabilities 2,790,688
------------------------------------------------------------
Net assets applicable to shares outstanding $505,456,429
------------------------------------------------------------
NET ASSETS:
Class A $215,722,584
------------------------------------------------------------
Class B $287,373,812
------------------------------------------------------------
Class C $ 2,360,033
------------------------------------------------------------
SHARES OUTSTANDING, $0.01 PAR VALUE PER SHARE:
Class A 29,257,974
------------------------------------------------------------
Class B 38,953,167
------------------------------------------------------------
Class C 319,887
------------------------------------------------------------
Class A:
Net asset value and redemption price per
share $ 7.37
------------------------------------------------------------
Offering price per share:
(Net asset value of $7.37 divided by
94.50%) $ 7.80
------------------------------------------------------------
Class B:
Net asset value and offering price per share $ 7.38
------------------------------------------------------------
Class C:
Net asset value and offering price per share $ 7.38
------------------------------------------------------------
</TABLE>
STATEMENT OF OPERATIONS
For the six months ended April 30, 2000
(Unaudited)
<TABLE>
<S> <C>
INVESTMENT INCOME:
Dividends (net of $182,895 foreign withholding
tax) $ 4,726,160
------------------------------------------------------------
Interest 3,249,573
------------------------------------------------------------
Securities lending 5,628
------------------------------------------------------------
Total investment income 7,981,361
------------------------------------------------------------
EXPENSES:
Advisory and administrative fees 2,763,334
------------------------------------------------------------
Accounting services fees 60,563
------------------------------------------------------------
Custodian fees 136,385
------------------------------------------------------------
Distribution fees -- Class A 410,905
------------------------------------------------------------
Distribution fees -- Class B 1,639,049
------------------------------------------------------------
Distribution fees -- Class C 8,613
------------------------------------------------------------
Transfer agent fees 603,033
------------------------------------------------------------
Trustees' fees 11,911
------------------------------------------------------------
Other 119,020
------------------------------------------------------------
Total expenses 5,752,813
------------------------------------------------------------
Less fees waived by advisor (67,490)
------------------------------------------------------------
Net expenses 5,685,323
------------------------------------------------------------
Net investment income 2,296,038
------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) FROM
INVESTMENT SECURITIES, FOREIGN CURRENCIES,
FUTURES AND FORWARD CURRENCY CONTRACTS:
Net realized gain (loss) from:
Investment securities 81,739,295
------------------------------------------------------------
Foreign currencies (1,504,973)
------------------------------------------------------------
Forward currency contracts 598,591
------------------------------------------------------------
80,832,913
------------------------------------------------------------
Change in net unrealized appreciation
(depreciation) of:
Investment securities (57,735,259)
------------------------------------------------------------
Foreign currencies (317,233)
------------------------------------------------------------
Forward currency contracts 100,364
------------------------------------------------------------
Futures contracts 37,457
------------------------------------------------------------
(57,914,671)
------------------------------------------------------------
Net gain from investment securities, foreign
currencies, futures and forward currency
contracts 22,918,242
------------------------------------------------------------
Net increase in net assets resulting from
operations $ 25,214,280
------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
7
<PAGE> 4
STATEMENTS OF CHANGES IN NET ASSETS
For the six months ended April 30, 2000 and the year ended October 31, 1999
(Unaudited)
<TABLE>
<CAPTION>
APRIL 30, OCTOBER 31,
2000 1999
------------- -------------
<S> <C> <C>
OPERATIONS:
Net investment income $ 2,296,038 $ 14,782,839
--------------------------------------------------------------------------------------------
Net realized gain from investment securities, foreign
currencies and forward currency contracts 80,832,913 59,623,918
--------------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) of
investment securities, foreign currencies, futures and
forward currency contracts (57,914,671) (65,153,662)
--------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 25,214,280 9,253,095
--------------------------------------------------------------------------------------------
Distributions to shareholders from net investment income:
Class A (1,178,226) (3,856,782)
--------------------------------------------------------------------------------------------
Class B (1,104,096) (2,710,473)
--------------------------------------------------------------------------------------------
Class C (5,686) (654)
--------------------------------------------------------------------------------------------
Advisor Class* (8,030) (96,889)
--------------------------------------------------------------------------------------------
Distributions in excess of net investment income:
Class A (1,652,275) --
--------------------------------------------------------------------------------------------
Class B (1,548,321) --
--------------------------------------------------------------------------------------------
Class C (7,974) --
--------------------------------------------------------------------------------------------
Advisor Class* (11,260) --
--------------------------------------------------------------------------------------------
Distributions to shareholders from net realized gains:
Class A (20,759,626) (50,854,509)
--------------------------------------------------------------------------------------------
Class B (29,790,131) (78,557,367)
--------------------------------------------------------------------------------------------
Class C (132,495) (9,250)
--------------------------------------------------------------------------------------------
Advisor Class* (252,794) (1,015,481)
--------------------------------------------------------------------------------------------
Share transactions-net:
Class A (25,559,744) (1,923,750)
--------------------------------------------------------------------------------------------
Class B (70,561,400) (30,585,595)
--------------------------------------------------------------------------------------------
Class C 1,111,749 1,396,141
--------------------------------------------------------------------------------------------
Advisor Class* (5,287,530) (873,736)
--------------------------------------------------------------------------------------------
Net increase (decrease) in net assets (131,533,559) (159,835,250)
--------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 636,989,988 796,825,238
--------------------------------------------------------------------------------------------
End of period $ 505,456,429 $ 636,989,988
--------------------------------------------------------------------------------------------
NET ASSETS CONSIST OF:
Shares of beneficial interest $ 355,289,975 $ 455,586,900
--------------------------------------------------------------------------------------------
Undistributed investment income (3,219,830) --
--------------------------------------------------------------------------------------------
Undistributed net realized gain from investment
securities, foreign currencies, futures and forward
currency contracts 89,264,226 59,366,359
--------------------------------------------------------------------------------------------
Unrealized appreciation of investment securities, foreign
currencies, futures and forward currency contracts 64,122,058 122,036,729
--------------------------------------------------------------------------------------------
$ 505,456,429 $ 636,989,988
--------------------------------------------------------------------------------------------
</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.
8
<PAGE> 5
NOTES TO FINANCIAL STATEMENTS
April 30, 2000
(Unaudited)
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES
AIM Global Growth & Income Fund (the "Fund") is a separate series of AIM
Investment Funds (the "Trust"). The Trust is organized as a Delaware business
trust and is registered under the Investment Company Act of 1940, as amended
(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 together with
current income.
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities 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 are recorded on ex-dividend date,
and are declared and paid quarterly. Distributions from net realized capital
gains, if any, are generally paid annually and recorded on ex-dividend date.
The Fund may elect to use a portion of the proceeds of capital stock
redemptions as distributions for federal income tax purposes.
D. Federal Income Taxes -- The Fund intends to comply with the requirements of
the Internal Revenue Code necessary to qualify as a regulated investment
company and, as such, will not be subject to federal income taxes on
otherwise taxable income (including net realized capital gains) which is
distributed to shareholders. Therefore, no provision for federal income taxes
is recorded in the financial statements.
E. Foreign Currency Translations -- Portfolio securities and other assets and
liabilities denominated in foreign currencies are translated into U.S. dollar
amounts at date of valuation. Purchases and sales of portfolio securities and
income items denominated in foreign currencies are translated into U.S.
dollar amounts on the respective dates of such transactions. The Fund does
not separately account for that portion of the results of operations
resulting from changes in foreign exchange rates on investments and the
fluctuations arising from changes in market prices of securities held. Such
fluctuations are included with the net realized and unrealized gain or loss
from investments.
9
<PAGE> 6
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.
Outstanding forward currency contracts at April 30, 2000 were as follows:
<TABLE>
<CAPTION>
CONTRACT TO
---------------------- UNREALIZED
SETTLEMENT DATE DELIVER RECEIVE VALUE APPRECIATION
--------------- --------- ---------- ------------ ------------
<S> <C> <C> <C> <C> <C>
05/09/2000 GBP 1,800,000 $2,867,166 $(2,803,961) $63,205
----------------------------------------------------------------------------------
</TABLE>
G. Futures Contracts -- The Fund may purchase or sell futures contracts as a
hedge against changes in market conditions. Initial margin deposits required
upon entering into futures contracts are satisfied by the segregation of
specific securities as collateral for the account of the broker (the Fund's
agent in acquiring the futures position). During the period the futures
contracts are open, changes in the value of the contracts are recognized as
unrealized gains or losses by "marking to market" on a daily basis to
reflect the market value of the contracts at the end of each day's trading.
Variation margin payments are made or received depending upon whether
unrealized gains or losses are incurred. When the contracts are closed, the
Fund recognizes a realized gain or loss equal to the difference between the
proceeds from, or cost of, the closing transaction and the Fund's basis in
the contract. Risks include the possibility of an illiquid market and that a
change in value of the contracts may not correlate with changes in the value
of the securities being hedged.
H. Expenses -- Distribution expenses directly attributable to a class of shares
are charged to that class' operations. All other expenses which are
attributable to more than one class are allocated among the classes.
I. Foreign Securities -- There are certain additional considerations and risks
associated with investing in foreign securities and currency transactions
that are not inherent in investments of domestic origin. The Fund's
investment in emerging market countries may involve greater risks than
investments in more developed markets and the price of such investments may
be volatile. These risks of investing in foreign and emerging markets may
include foreign currency exchange fluctuations, perceived credit risk,
adverse political and economic developments and possible adverse foreign
government intervention.
J. Indexed Securities -- The Fund may invest in indexed securities whose value
is linked either directly or indirectly to changes in foreign currencies,
interest rates, equities, indices, or other reference instruments. Indexed
securities may be more volatile than the reference instrument itself, but
any loss is limited to the amount of the original investment.
NOTE 2-ADVISORY FEES AND OTHER TRANSACTIONS WITH AFFILIATES
A I M Advisors, Inc. ("AIM") is the Fund's investment manager and administrator.
The Fund pays AIM investment management and administration fees at an annual
rate of 0.975% on the first $500 million of the Fund's average daily net assets,
plus 0.95% on the next $500 million of the Fund's average daily net assets, plus
0.925% on the next $500 million of the Fund's average daily net assets, plus
0.90% on the Fund's average daily net assets exceeding $1.5 billion. AIM has
contractually agreed to limit the Fund's expenses (excluding interest, taxes,
dividends on short sales, extraordinary items and increases in expenses due to
offset arrangements, if any) to the maximum annual rate of 1.75%, 2.40% and
2.40% of the average daily net assets of the Fund's Class A, Class B and Class C
shares, respectively. During the six months ended April 30, 2000, AIM waived
fees of $67,490.
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 $60,563 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 $340,716 for such services.
The Trust has entered into master distribution agreements with A I M
Distributors, Inc. ("AIM Distributors") to serve as the distributor for the
Class A, Class B and Class C shares of the Fund. The Trust has adopted plans
pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund's Class A
shares, Class B shares and Class C shares (collectively the "Plans"). The Fund,
pursuant to the Plans, pays AIM Distributors compensation at the annual rate of
0.35% of the Fund's average daily net assets of Class A shares and 1.00% of the
average daily net assets of Class B and C shares. Of these amounts, the Fund may
pay a service fee of 0.25% of the average daily net assets of the Class A, Class
B or Class C shares to selected dealers and financial institutions who furnish
continuing personal shareholder services to their customers who purchase and own
the appropriate class of shares of the Fund. Any amounts not paid as a service
fee under the Plans would constitute an asset-based sales charge. The Plans also
impose a cap on the total sales charges, including asset-based sales charges
that may be paid by the respective classes. For the six months ended April 30,
2000, the Class A, Class B and Class C shares paid AIM Distributors $410,905,
$1,639,049 and $8,613, respectively, as compensation under the Plans.
AIM Distributors received commissions of $16,151 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 $5,765 in contingent deferred sales charges
imposed on redemptions of Fund shares.
10
<PAGE> 7
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.
For the six months ended April 30, 2000, the Fund received fees of $5,628 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
$195,004,614 and $412,334,181, 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 $ 89,029,037
---------------------------------------------------------
Aggregate unrealized (depreciation) of
investment securities (25,722,385)
---------------------------------------------------------
Net unrealized appreciation of investment
securities $ 63,306,652
---------------------------------------------------------
Cost of investments for tax purposes is
$433,101,158.
</TABLE>
NOTE 6-FUTURES CONTRACTS
On April 30, 2000, $24,054,125 principal amount of U.S. Treasury obligations
were pledged as collateral to cover margin requirements for open futures
contracts. Open futures contracts were as follows:
<TABLE>
<CAPTION>
NO. OF MONTH/ UNREALIZED
CONTRACT CONTRACTS COMMITMENT APPRECIATION
-------- --------- ---------- ------------
<S> <C> <C> <C>
S&P 500 Index 70 Jun.00/Buy $37,457
------------------------------------------------------------
</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 1,574,702 $ 11,986,994 8,613,668 $ 72,437,015
-----------------------------------------------------------------------------------------------------------------------
Class B 800,681 6,005,307 5,303,281 44,812,675
-----------------------------------------------------------------------------------------------------------------------
Class C* 189,933 1,433,121 195,189 1,576,712
-----------------------------------------------------------------------------------------------------------------------
Advisor Class** 761,831 5,697,835 328,566 2,706,042
-----------------------------------------------------------------------------------------------------------------------
Issued as reinvestment of dividends:
Class A 3,032,902 21,657,659 6,015,569 49,459,293
-----------------------------------------------------------------------------------------------------------------------
Class B 4,001,355 28,584,508 8,680,071 71,410,220
-----------------------------------------------------------------------------------------------------------------------
Class C* 19,264 137,713 1,149 9,140
-----------------------------------------------------------------------------------------------------------------------
Advisor Class** 38,186 272,898 135,251 1,109,119
-----------------------------------------------------------------------------------------------------------------------
Conversion of Advisor Class shares to Class A shares***:
Class A 501,373 3,715,177 -- --
-----------------------------------------------------------------------------------------------------------------------
Advisor Class (502,051) (3,715,177) -- --
-----------------------------------------------------------------------------------------------------------------------
Reacquired:
Class A (8,416,313) (62,919,574) (15,145,571) (123,820,058)
-----------------------------------------------------------------------------------------------------------------------
Class B (14,077,075) (105,151,215) (18,003,582) (146,808,490)
-----------------------------------------------------------------------------------------------------------------------
Class C* (61,668) (459,085) (23,980) (189,711)
-----------------------------------------------------------------------------------------------------------------------
Advisor Class** (991,731) (7,543,086) (552,173) (4,688,897)
-----------------------------------------------------------------------------------------------------------------------
(13,128,611) $(100,296,925) (4,452,562) $ (31,986,940)
-----------------------------------------------------------------------------------------------------------------------
</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.
11
<PAGE> 8
NOTE 8-FINANCIAL HIGHLIGHTS
Contained below is per share operating performance data for a share outstanding
throughout each period, total investment return, ratios and supplemental data.
This information has been derived from information provided in the financial
statements.
<TABLE>
<CAPTION>
CLASS A
-----------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED OCTOBER 31,
APRIL 30, --------------------------------------------------------
2000(a) 1999(a) 1998(a) 1997(a) 1996 1995
---------------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 7.80 $ 9.26 $ 8.21 $ 7.11 $ 6.35 $ 6.21
---------------------------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income 0.04 0.20 0.17 0.21 0.22 0.24
---------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on
investments 0.28 (0.05) 1.25 1.12 0.82 0.13
---------------------------------------------------------------------------------------------------------------------------------
Net increase from investment operations 0.32 0.15 1.42 1.33 1.04 0.37
---------------------------------------------------------------------------------------------------------------------------------
Distributions to shareholders:
From net investment income (0.04) (0.11) (0.13) (0.21) (0.24) (0.22)
---------------------------------------------------------------------------------------------------------------------------------
In excess of net investment income (0.05) -- -- -- -- --
---------------------------------------------------------------------------------------------------------------------------------
From net realized gain on investments (0.66) (1.50) (0.24) (0.02) (0.04) (0.01)
---------------------------------------------------------------------------------------------------------------------------------
Total distributions (0.75) (1.61) (0.37) (0.23) (0.28) (0.23)
---------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 7.37 $ 7.80 $ 9.26 $ 8.21 $ 7.11 $ 6.35
---------------------------------------------------------------------------------------------------------------------------------
Total return(b) 4.54% 1.03% 17.76% 19.01% 16.80% 6.27%
---------------------------------------------------------------------------------------------------------------------------------
Ratios and supplemental data:
Net assets, end of period (000s omitted) $215,723 $254,060 $306,279 $292,528 $286,203 $284,069
---------------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets 1.63%(c)(d) 1.65% 1.65% 1.64% 1.66% 1.74%
---------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income to average net
assets 1.19%(c) 2.34% 1.87% 2.74% 3.17% 3.85%
---------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 36% 89% 92% 50% 39% 83%
---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(a) These selected per share data were calculated based upon the average shares
outstanding during the period.
(b) Total return does not include sales charges and is not annualized for
periods less than one year.
(c) Ratios are annualized and based on average net assets of $236,092,882.
(d) After fee waivers and/or expense reimbursements. Ratio of expenses to
average net assets prior to fee waivers was 1.65% (annualized).
<TABLE>
<CAPTION>
CLASS B
-----------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED OCTOBER 31,
APRIL 30, --------------------------------------------------------
2000(a) 1999(a) 1998(a) 1997(a) 1996 1995
---------------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 7.80 $ 9.25 $ 8.21 $ 7.11 $ 6.35 $ 6.21
---------------------------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income 0.02 0.14 0.11 0.16 0.17 0.20
---------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on
investments 0.28 (0.04) 1.25 1.13 0.82 0.13
---------------------------------------------------------------------------------------------------------------------------------
Net increase from investment operations 0.30 0.10 1.36 1.29 0.99 0.33
---------------------------------------------------------------------------------------------------------------------------------
Distributions to shareholders:
From net investment income (0.02) (0.05) (0.08) (0.17) (0.20) (0.18)
---------------------------------------------------------------------------------------------------------------------------------
In excess of net investment income (0.04) -- -- -- -- --
---------------------------------------------------------------------------------------------------------------------------------
From net realized gain on investments (0.66) (1.50) (0.24) (0.02) (0.03) (0.01)
---------------------------------------------------------------------------------------------------------------------------------
Total distributions (0.72) (1.55) (0.32) (0.19) (0.23) (0.19)
---------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 7.38 $ 7.80 $ 9.25 $ 8.21 $ 7.11 $ 6.35
---------------------------------------------------------------------------------------------------------------------------------
Total return(b) 4.26% 0.42% 16.93% 18.28% 16.06% 5.57%
---------------------------------------------------------------------------------------------------------------------------------
Ratios and supplemental data:
Net assets, end of period (000s omitted) $287,374 $376,181 $483,307 $456,893 $383,966 $356,796
---------------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets 2.28%(c)(d) 2.30% 2.30% 2.29% 2.31% 2.39%
---------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income to average net
assets 0.55%(c) 1.69% 1.22% 2.09% 2.52% 3.20%
---------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 36% 89% 92% 50% 39% 83%
---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(a) These selected per share data were calculated based upon the average shares
outstanding during the period.
(b) Total return does not 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 $329,610,984.
(d) After fee waivers and/or expense reimbursements. Ratio of expenses to
average net assets prior to fee waivers was 2.30% (annualized).
12
<PAGE> 9
NOTE 8-FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
CLASS C ADVISOR CLASS
-------------------------------- -------------------------------------------------------
SIX MONTHS MARCH 1, 1999 NOVEMBER 1, 1999
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
---------- ------------------- ---------------- ------- ------- ------- ------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 7.80 $ 8.05 $ 7.79 $ 9.26 $ 8.20 $ 7.10 $ 6.35
--------------------------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income (loss) 0.02 0.10 0.03 0.22 0.21 0.23 0.23
--------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain
(loss) on investments 0.28 (0.26) 0.29 (0.05) 1.25 1.13 0.82
--------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from
investment operations 0.30 (0.16) 0.32 0.17 1.46 1.36 1.05
--------------------------------------------------------------------------------------------------------------------------------
Distributions to shareholders:
From net investment income (0.02) (0.02) (0.02) (0.14) (0.16) (0.24) (0.26)
--------------------------------------------------------------------------------------------------------------------------------
In excess of net investment income (0.04) -- (0.03) -- -- -- --
--------------------------------------------------------------------------------------------------------------------------------
From net realized gain on
investments (0.66) (0.07) (0.66) (1.50) (0.24) (0.02) (0.04)
--------------------------------------------------------------------------------------------------------------------------------
Total distributions (0.72) (0.09) (0.71) (1.64) (0.40) (0.26) (0.30)
--------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 7.38 $ 7.80 $ 7.40 $ 7.79 $ 9.26 $ 8.20 $ 7.10
--------------------------------------------------------------------------------------------------------------------------------
Total return(b) 4.26% (1.98)% 4.57% 1.30% 18.27% 19.23% 17.19%
--------------------------------------------------------------------------------------------------------------------------------
Ratios and supplemental data:
Net assets, end of period (000s
omitted) $2,360 $1,344 $ -- $5,405 $7,239 $3,057 $3,085
--------------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net
assets 2.28%(c)(d) 2.30%(e) 1.26%(c)(d) 1.30% 1.30% 1.29% 1.31%
--------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income to
average net assets 0.55%(c) 1.69%(e) 1.56%(c) 2.69% 2.22% 3.09% 3.52%
--------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 36% 89% 36% 89% 92% 50% 39%
--------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
ADVISOR CLASS
----------------
JUNE 1, 1995
(DATE SALES
COMMENCED) TO
OCTOBER 31, 1995
----------------
<S> <C>
Net asset value, beginning of period $ 6.24
------------------------------------------------------
Income from investment operations:
Net investment income (loss) 0.11
------------------------------------------------------
Net realized and unrealized gain
(loss) on investments 0.13
------------------------------------------------------
Net increase (decrease) from
investment operations 0.24
------------------------------------------------------
Distributions to shareholders:
From net investment income (0.13)
------------------------------------------------------
In excess of net investment income --
------------------------------------------------------
From net realized gain on
investments --
------------------------------------------------------
Total distributions (0.13)
------------------------------------------------------
Net asset value, end of period $ 6.35
------------------------------------------------------
Total return(b) 3.83%
------------------------------------------------------
Ratios and supplemental data:
Net assets, end of period (000s
omitted) $ 944
------------------------------------------------------
Ratio of expenses to average net
assets 1.39%(e)
------------------------------------------------------
Ratio of net investment income to
average net assets 4.20%(e)
------------------------------------------------------
Portfolio turnover rate 83%
------------------------------------------------------
</TABLE>
(a) These selected per share data were calculated based upon the average shares
outstanding during the period.
(b) Total return does not deduct contingent deferred sales charges and is not
annualized for periods less than one year.
(c) Ratios are annualized and based on average net assets of $1,732,025 and
$4,009,507 for Class C and Advisor Class, respectively.
(d) After fee waivers and/or expense reimbursements. Ratios of expenses to
average net assets prior to fee waivers were 2.30% (annualized) and 1.30%
(annualized) for Class C and Advisor Class, respectively.
(e) Annualized.
NOTE 9-SUBSEQUENT EVENT
The Board of Trustees of AIM Investment Funds unanimously approved on March 14,
2000, an Agreement and Plan of Reorganization (the "Reorganization") pursuant to
which the Fund would transfer substantially all of its assets to AIM Global
Growth Fund. The Reorganization has been structured as a tax-free transaction.
In a Special Meeting of shareholders on May 31, 2000, the Reorganization was
approved to be effective prior to the open of business on June 12, 2000.
13
<PAGE> 10
<TABLE>
<S> <C> <C>
BOARD OF TRUSTEES OFFICERS OFFICE OF THE FUND
C. Derek Anderson Robert H. Graham 11 Greenway Plaza
President, Plantagenet Capital Chairman and President Suite 100
Management, LLC (an investment Houston, TX 77046
partnership); Chief Executive Officer, Dana R. Sutton
Plantagenet Holdings, Ltd. Vice President and Treasurer INVESTMENT MANAGER
(an investment banking firm)
Samuel D. Sirko A I M Advisors, Inc.
Frank S. Bayley Vice President and Secretary 11 Greenway Plaza
Partner, law firm of Suite 100
Baker & McKenzie Melville B. Cox Houston, TX 77046
Vice President
Robert H. Graham TRANSFER AGENT
President and Chief Executive Officer, Gary T. Crum
A I M Management Group Inc. Vice President A I M Fund Services, Inc.
P.O. Box 4739
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>
REQUIRED FEDERAL INCOME TAX INFORMATION (UNAUDITED)
AIM Global Growth & Income Fund Class A, B and C shares paid ordinary dividends
in the amount of $0.3927, $0.3627 and $0.3627 per share, respectively, during
the Fund's tax year ended June 12, 2000. Of this amount, 7.94% is eligible for
the dividends received deduction for corporations.
The Fund also distributed long-term capital gains of $106,937,148 for the Fund's
tax year ended June 12, 2000. Of the long-term capital gains distributed, 100%
is 20% rate gain.
