<PAGE> 1
ANNUAL REPORT / OCTOBER 31 1999
AIM GLOBAL INFRASTRUCTURE FUND
[Cover Image]
[AIM Logo Appears Here]
<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 changes in net asset value and the reinvestment of distributions.
o Had fees and expenses not been waived in the past, 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 differences in sales-charge structure and fund
expenses.
o The fund's average annual total returns (including sales charges) for the
period ended 9/30/99 (the most recent calendar quarter-end) are as follows:
for Class A shares, one year, 14.08%; five years, 5.84%; inception (5/31/94),
7.08%. For Class B shares, one year, 14.16%; five years, 6.04%; inception
(5/31/94), 7.38%. For Class C shares, inception (3/1/99), 6.01%. For Advisor
Class shares, (which carry no sales charge), one year, 20.33%; inception
(6/1/95), 9.26%.
o Because Class C shares have been offered for less than one year (since
3/1/99), all performance figures reflect cumulative total returns that have
not yet been annualized.
o Advisor Class shares were closed to new investors on 3/1/99.
o During the fiscal year ended 10/31/99, the fund paid distributions of $0.921
per Class A share, $0.851 per Class B share and $1.0092 per Advisor Class
share.
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
custodial arrangements made for the fund's foreign holdings, differences in
accounting, political risks and the lesser degree of public information
required to be provided by non-U.S. companies.
o The fund'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 Lipper, Inc. is an independent mutual fund performance monitor.
o The unmanaged MSCI All Country (AC) World Index is a group of global
securities traded on approximately 50 markets in developed and emerging
countries tracked by Morgan Stanley Capital International.
o The unmanaged MSCI World Index is a group of global securities listed on
major world stock exchanges tracked by Morgan Stanley Capital International.
o An investment cannot be made in any index listed. 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 INSURED NOR
GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY OTHER GOVERNMENT
AGENCY. THERE IS A RISK THAT YOU COULD LOSE SOME OR ALL OF YOUR MONEY.
This report may be distributed only to current shareholders or to persons who
have received a current prospectus for the fund.
AIM GLOBAL INFRASTRUCTURE FUND
<PAGE> 3
ANNUAL REPORT / CHAIRMAN'S LETTER
Dear Fellow Shareholder:
The fiscal year discussed in this report reconfirmed our
faith in two long-established principles of investing:
portfolio diversification and long-term thinking. We could
title this report "What a Difference a Year Makes."
An investor surveying conditions when the fiscal year
[Chairman's opened on October 31, 1998, saw a market dominated by
Photo] large-capitalization stocks and high-quality bonds,
especially U.S. Treasuries. Ten months into 1998, two
well-known indexes of large-capitalization U.S. company
stocks, the S&P 500 and the Dow Jones Industrial Average,
were up by double digits, but the smaller-company stocks in
the Russell 2000 had lost 12.80%. Overseas, many markets were
languishing, especially in Asia, where many financial
difficulties originated in 1997.
In bond markets also, name-brand quality was the place
to be. The Lehman Corporate/Government Bond Index, which
follows intermediate and long-term government and investment-grade debt, was up
8.56%, while the Lehman High Yield Index, which tracks riskier "junk bonds," had
dropped 2.30%.
It would be easy for an investor to conclude that blue chips, whether
equity or fixed-income, were the only place to be. That investor, of course,
would be wrong.
MARKETS TURN
While large-capitalization stocks continue to do very well, during 1999 markets
broadened considerably, with many investment sectors performing a complete
turnaround. Year to date by October 31, 1999, the small-cap stocks in the
Russell 2000 were back in positive territory, and the many Asian markets had
staged a comeback. The same holds true for bonds. The higher-quality Lehman
index is down 1.49% year to date through October 31, 1999, while high-yield
bonds have moved into positive returns.
The point, at the risk of sounding repetitive to those of you who have
invested with us for a long time, is that this is why diversification is a
fundamental investing principle. Market sectors and asset classes go in and out
of favor, but over the long run--and the long run is several years--the markets'
overall trend has been upward. Selecting an asset class or a market sector on
the basis of a short-term snapshot of conditions is usually unwise, as is
concentrating your portfolio in one asset class. Staying fully invested in a
diversified portfolio remains a compelling strategy and one of your best
prospects for long-term gain.
LOOKING AHEAD
As we look about at the close of this fiscal year, we are encouraged by signs of
economic health in Europe and Asia, not to mention the prolonged U.S. economic
expansion. However, we are aware of how easily an investor could have been
misled by conditions just 12 months ago. For our shareholders, we therefore
reiterate our commitment to investing through a financial advisor. In addition
to helping you select investments appropriate to your time horizon and risk
tolerance, a financial advisor can keep you informed about how changing market
conditions affect you and your portfolio and can help assure that when you do
alter your investments, there's a logical reason for doing so. AIM believes
every investor should be guided by a financial professional.
FUND MANAGERS COMMENT
In the pages that follow, your fund's portfolio managers discuss how they
managed your fund during the year ended October 31, 1999, how the markets
behaved and what they foresee for the near future. We trust you will find their
discussion informative. If you have any questions or comments, we invite you to
contact us, either at our Web site, aimfunds.com, or through our Client Services
department at 800-959-4246. Information about your account is also available
through our automated AIM Investor Line, 800-246-5463.
Thank you for your continued participation in The AIM Family of Funds
- --Registered Trademark--.
Sincerely,
/s/ CHARLES T. BAUER
Charles T. Bauer
Chairman, A I M Advisors, Inc.
-------------------------------------
STAYING FULLY
INVESTED IN A DIVERSIFIED PORTFOLIO REMAINS
A COMPELLING STRATEGY AND ONE OF YOUR
BEST PROSPECTS FOR LONG-TERM GAIN.
-------------------------------------
AIM GLOBAL INFRASTRUCTURE FUND
<PAGE> 4
ANNUAL REPORT / MANAGERS' OVERVIEW
FUND POSTS SOLID RETURNS AS
GLOBAL ECONOMIC CONDITIONS BRIGHTEN
HOW DID THE FUND PERFORM DURING THE FISCAL YEAR?
The fund produced an ample 22.72% total return for Class A shares and 22.11% for
Class B shares. Class C shares commenced sales on March 1, 1999, and produced a
total return of 13.94% through the close of the fiscal year. These returns are
at net asset value, without a sales charge. Advisor Class shares returned 23.29%
for the fiscal year.
The fund slightly underperformed the 24.91% total return of the MSCI World
Index during the same period. The MSCI World Index, which represents the
performance of the world's stock markets, does not reflect the fund's
concentration in infrastructure industries.
Net assets closed the period at $45.1 million.
YOUR FUND'S PERFORMANCE
FUND REBOUNDS STRONGLY
Total return excluding sales charges
(Bar Chart)
FUND CLASS A FUND CLASS B
SHARES SHARES
Year ended 10/31/99 22.72% 22.11%
Year ended 10/31/98 -4.82% -5.31%
-------------------------------------
WE EXPECT POSITIVE
ECONOMIC GROWTH, STRONGER CORPORATE EARNINGS AND IMPROVING CONSUMER DEMAND
IN EUROPE.
-------------------------------------
WHAT WERE MARKETS LIKE DURING THE FISCAL YEAR?
Early in the fiscal year, the Federal Reserve Board (the Fed) reduced short-term
interest rates, not to stimulate the U.S. economy, but as part of a strenuous
effort to stabilize markets worldwide. The U.S. economy continued to grow at a
brisk pace, and as 1999 developed, many overseas markets staged a welcome
recovery from the global crises of 1998.
Several emerging economies, including South Korea, rebounded dramatically,
and even the Japanese economy, moribund for several years, produced two
back-to-back quarters of positive economic growth. The major trend in Europe has
been the feverish pace of merger activity. In fact, toward the end of the
reporting period, the European merger market topped the United States for the
first time, according to Thomson Financial Securities Data. Ten European deals
were announced in the third quarter with values of more than $10 billion each.
So despite continued volatility in almost all markets, the overall environment
was positive for the fund, and that is reflected in the fund's substantial
returns.
WHAT AREAS CONTRIBUTED TO THE FUND'S PERFORMANCE?
The stocks of communications companies, which composed just over 10% of the
portfolio, did quite well for us over the fiscal year. These holdings include
two now-household names: Nokia (our largest holding), the world's number-one
mobile-telephone maker, and Lucent Technologies, North America's leading maker
of telecommunications equipment and software.
The diversified-machinery industry also helped the fund perform well.
Mannesmann AG (another of our largest holdings), a German corporation formerly
known worldwide for its steel pipes, has branched out into providing pipelines
for telecommunications. Its wireless service is used by more German consumers
than any other company's, and it plans to split into separate telecommunications
and industrial companies within the next year or two. It also owns interests in
telecommunications providers in Austria, France and Italy.
The stocks of natural-gas companies also added to the fund's performance. Our
two natural-gas holdings, which make up just under 5% of the portfolio, are
domestic: El Paso Energy and Enron Corporation.
WHAT CHANGES HAVE YOU MADE TO THE FUND'S HOLDINGS?
Six of our top 10 holdings from our April report remain in this report's top-10
list, shifting rankings slightly. Since the last report, we eliminated small
positions in airlines, auto parts, building materials and shipping. We added the
stocks of some telecommunications companies (such as Western Wireless, which
provides cellular services under the Cellular One brand),
communications-equipment companies (such as Williams Communications, which
supplies telecom equipment to businesses) and networking companies (such as
Juniper Networks, whose powerful M40 router handles high-speed Internet traffic
smoothly).
See important fund and index disclosures inside front cover.
AIM GLOBAL INFRASTRUCTURE FUND
2
<PAGE> 5
ANNUAL REPORT / MANAGERS' OVERVIEW
PORTFOLIO COMPOSITION
As of 10/31/99, based on total net assets
<TABLE>
<CAPTION>
==========================================================================================================================
TOP 10 HOLDINGS TOP 10 COUNTRIES TOP 10 INDUSTRIES
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1. Nokia Oyj-ADR (Finland) 5.12% 1. United States 46.84% 1. Electric Companies 13.65%
2. Mannesmann A.G. (Germany) 4.46 2. United Kingdom 11.90 2. Telecommunications 10.80
(Cellular/Wireless)
3. Enron Corp. 4.05 3. Finland 5.61
3. Communications Equipment 10.76
4. MCI WorldCom, Inc. 3.80 4. Germany 5.31
4. Telecommunications 10.46
5. SBC Communications, Inc. 3.27 5. France 4.23 (Long Distance)
6. General Dynamics Corp. 3.25 6. Japan 3.67 5. Telephone 7.48
7. Vivendi (France) 2.92 7. Spain 3.34 6. Manufacturing (Diversified) 6.83
8. Cisco Systems, Inc. 2.90 8. South Korea 3.34 7. Machinery (Diversified) 6.28
9. Bell Atlantic Corp. 2.83 9. Italy 3.17 8. Natural Gas 4.79
10. NTT Mobile Communications 2.65 10. Netherlands 3.07 9. Computers (Networking) 3.66
Network, Inc. (Japan)
10. Aerospace/Defense 3.26
The fund's portfolio is subject to change, and there is no assurance that the
fund will continue to hold any particular security.
==========================================================================================================================
</TABLE>
MORE THAN A QUARTER OF THE FUND'S ASSETS ARE INVESTED IN EUROPE. WHY ARE YOU
BULLISH ON EUROPE?
We expect positive economic growth, stronger corporate earnings and improving
consumer demand. Several trends contribute to this outlook:
o Europe is becoming more entrepreneurial due to more accessible funding
through four specialized exchanges. The largest--Germany's Neuer Markt--has
provided capital for start-up companies, which create more opportunities for
growth investorS and broaden the European stock market.
o Signs of a unified trading system are emerging. In May, eight European
exchanges affirmed their intention to create a single trading system; this
unification would reduce costs, increase liquidity, standardize accounting
rules and ease cross-border comparisons, making equity investing more
attractive.
o Corporate tax-reform proposals could boost European stock performance,
especially in Germany (which accounts for just over 5% of the fund's assets)
o Finally, if in 2000 interest rates remain steady or rise just a bit, those
who invest in Europe may benefit the most. If European growth continues,
Europe's economic growth stands to surpass that of the United States next
year, and for the first time in decades, the United States may yield its
long-held role as global economic leader to Europe.
WHAT IS YOUR OUTLOOK IN GENERAL?
In the United States, the climate appears favorable for stocks. The economy is
growing at a healthy pace, and corporate profits are solid. Although there is
still some question about the Fed's future actions to keep inflation in check,
we don't expect the Fed to adopt an aggressive tightening policy. On November
16, the central bank raised the federal funds rate to 5.50% because of continued
strong economic expansion, and adopted a neutral position on further rate hikes.
Moreover, while interest rates increased over the fiscal year, they remain
relatively low.
Economic trends are generally good worldwide: low inflation, good economic
growth and the prospect of stable interest rates. In fact, many are now
foreseeing a "Millennium Meltup" once Y2K concerns are put to rest early in
2000. We believe we may have reached a period of synchronized global expansion.
The United States drove the markets for the past two years, but with the
increased strength of Europe and Asia, we believe growth in the future will be
more balanced. Prospects seem good for a fund investing globally in
infrastructure-related industries.
-------------------------------------
ECONOMIC TRENDS ARE
GENERALLY GOOD WORLDWIDE:
LOW INFLATION,
GOOD ECONOMIC GROWTH
AND THE PROSPECT OF
STABLE INTEREST RATES.
-------------------------------------
See important fund and index disclosures inside front cover.
AIM GLOBAL INFRASTRUCTURE FUND
3
<PAGE> 6
ANNUAL REPORT / PERFORMANCE HISTORY
YOUR FUND'S LONG-TERM PERFORMANCE
RESULTS OF A $10,000 INVESTMENT
AIM GLOBAL INFRASTRUCTURE FUND VS. BENCHMARK INDEXES
5/31/94-10/31/99
in thousands
($10,000 Hypo Chart)
<TABLE>
<CAPTION>
===============================================================================
AIM GLOBAL AIM GLOBAL
INFRASTRUCTURE INFRASTRUCTURE
FUND FUND MSCI MSCI AC
CLASS A SHARES CLASS B SHARES WORLD INDEX WORLD INDEX
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
5/3/94 10,000 9,525 10,000 10,000
7/94 10,481 9,992 10,187 10,157
10/94 10,892 10,392 10,575 10,471
1/95 10,018 9,567 9,926 9,995
4/95 10,061 9,625 10,843 10,948
7/95 11,225 10,750 11,466 11,583
10/95 10,525 10,092 11,328 11,464
1/96 11,164 10,725 12,259 12,422
4/96 12,213 11,742 12,854 12,996
7/96 12,100 11,650 12,436 12,604
10/96 12,458 12,008 13,095 13,332
1/97 13,724 13,248 13,815 14,013
4/97 13,182 12,732 14,177 14,340
7/97 15,130 14,639 16,497 16,712
10/97 13,559 13,134 15,157 15,568
1/98 13,292 12,890 15,920 16,476
4/98 14,913 14,485 17,895 18,504
7/98 14,441 14,004 17,859 18,667
10/98 12,838 12,502 17,091 17,943
1/99 14,537 14,177 19,347 20,367
4/99 14,517 14,167 20,596 21,456
7/99 15,235 14,891 20,795 21,562
10/99 15,578 15,342 21,604 22,414
Past performance cannot guarantee comparable future results.
===============================================================================
</TABLE>
MARKET VOLATILITY CAN SIGNIFICANTLY IMPACT SHORT-TERM PERFORMANCE. RESULTS OF AN
INVESTMENT MADE TODAY MAY DIFFER SUBSTANTIALLY FROM THE HISTORICAL PERFORMANCE
SHOWN.
Source: Lipper, Inc.
AVERAGE ANNUAL TOTAL RETURNS
As of 10/31/99, including sales charges
CLASS A SHARES
Inception (5/31/94) 8.22%
5 years 7.06%
1 year 16.87%*
* 22.72% excluding sales charges
CLASS B SHARES
Inception (5/31/94) 8.52%
5 years 7.25%
1 year 17.11%*
* 22.11% excluding CDSC
CLASS C SHARES
Inception (3/1/99) 12.94%*
* 13.94% excluding CDSC
ADVISOR CLASS SHARES
Inception (6/1/95) 10.67%
1 year 23.29%
Your fund's total return includes sales charges, expenses and management fees.
For fund performance calculations and descriptions of the indexes cited on this
page, please see the inside front cover. The performance of Class C shares will
differ from that of Class A and Class B shares due to differing fees and
expenses.
ABOUT THIS CHART
This chart compares your fund's Class A and Class B shares to benchmark indexes.
It is intended to give you an idea of how your fund performed compared to these
indexes over the period 5/31/94-10/31/99. It is important to understand the
difference between your fund and an index. An index measures the performance of
a hypothetical portfolio. A market index like the MSCI World Index is unmanaged,
incurring no sales charges, expenses or fees. If you could buy all the
securities that make up a market index, you would incur expenses that would
affect your investment's return. Please keep in mind that the MSCI World Index
tracks the performance of all markets, not merely infrastructure stocks in which
the fund invests. There is no true benchmark that measures infrastructure stock
performance. Fund performance shown in the chart includes fund expenses and
management fees. Class A share performance reflects the deduction of the maximum
sales charge; Class B share performance reflects the deduction of the applicable
contingent deferred sales charge.
Since the last reporting period, AIM Global Infrastructure Fund has elected
to use the MSCI All Country World Index (which more closely resembles the
securities in which the fund invests) as its benchmark instead of the MSCI World
Index. We will no longer measure its performance against the MSCI World Index,
the index published in previous reports to shareholders. Because this is the
first reporting period since we have adopted the new index, SEC guidelines
require that we compare the fund's performance to both the old and the new
index.
AIM GLOBAL INFRASTRUCTURE FUND
4
<PAGE> 7
SCHEDULE OF INVESTMENTS
October 31, 1999
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
DOMESTIC COMMON STOCKS & OTHER EQUITY
INTERESTS-46.84%
AEROSPACE/DEFENSE-3.25%
General Dynamics Corp. 26,494 $ 1,468,761
- -------------------------------------------------------------
COMMUNICATIONS EQUIPMENT-5.64%
Aether Systems, Inc.(a) 5,200 361,725
- -------------------------------------------------------------
Juniper Networks, Inc.(a) 1,500 413,437
- -------------------------------------------------------------
Lucent Technologies Inc. 9,700 623,225
- -------------------------------------------------------------
Sycamore Networks, Inc.(a) 800 172,000
- -------------------------------------------------------------
Tellabs, Inc.(a) 11,270 712,827
- -------------------------------------------------------------
Williams Communications Group, Inc.(a) 8,200 261,375
- -------------------------------------------------------------
2,544,589
- -------------------------------------------------------------
COMPUTERS (NETWORKING)-3.66%
Cisco Systems, Inc.(a) 17,684 1,308,616
- -------------------------------------------------------------
Foundry Networks, Inc.(a) 1,800 341,100
- -------------------------------------------------------------
1,649,716
- -------------------------------------------------------------
ELECTRIC COMPANIES-7.71%
Calpine Capital Trust-$2.88 Conv. Pfd. 6,200 365,800
- -------------------------------------------------------------
Dominion Resources, Inc. 18,700 899,937
- -------------------------------------------------------------
FPL Group, Inc. 12,700 638,969
- -------------------------------------------------------------
Montana Power Co. 19,400 551,687
- -------------------------------------------------------------
Pinnacle West Capital Corp. 13,700 505,187
- -------------------------------------------------------------
Texas Utilities Co. 13,400 519,250
- -------------------------------------------------------------
3,480,830
- -------------------------------------------------------------
MACHINERY (DIVERSIFIED)-1.82%
Ingersoll-Rand Co. 15,700 820,325
- -------------------------------------------------------------
MANUFACTURING (DIVERSIFIED)-1.77%
United Technologies Corp. 13,200 798,600
- -------------------------------------------------------------
NATURAL GAS-4.79%
El Paso Energy Corp. 8,100 332,100
- -------------------------------------------------------------
Enron Corp. 45,800 1,829,138
- -------------------------------------------------------------
2,161,238
- -------------------------------------------------------------
POWER PRODUCERS (INDEPENDENT)-1.87%
AES Corp.(a) 14,988 845,885
- -------------------------------------------------------------
SERVICES (COMMERCIAL & CONSUMER)-0.32%
Navigant Consulting, Inc.(a) 5,000 142,813
- -------------------------------------------------------------
SERVICES (COMPUTER SYSTEMS)-1.45%
Clarent Corp.(a) 6,900 654,638
- -------------------------------------------------------------
TELECOMMUNICATIONS
(CELLULAR/WIRELESS)-3.17%
Phone.com, Inc.(a) 4,800 986,400
- -------------------------------------------------------------
Triton PCS Holdings, Inc.-Class A(a) 9,600 338,400
- -------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
TELECOMMUNICATIONS
(CELLULAR/WIRELESS)-(CONTINUED)
Western Wireless Corp.-Class A(a) 2,000 $ 105,750
- -------------------------------------------------------------
1,430,550
- -------------------------------------------------------------
TELECOMMUNICATIONS (LONG
DISTANCE)-5.28%
AT&T Corp. 14,242 665,814
- -------------------------------------------------------------
MCI WorldCom, Inc.(a) 20,000 1,716,250
- -------------------------------------------------------------
2,382,064
- -------------------------------------------------------------
TELEPHONE-6.11%
Bell Atlantic Corp. 19,700 1,279,269
- -------------------------------------------------------------
SBC Communications, Inc. 29,000 1,477,188
- -------------------------------------------------------------
2,756,457
- -------------------------------------------------------------
Total Domestic Common Stocks &
Other Equity Interests (Cost
$13,486,635) 21,136,466
- -------------------------------------------------------------
FOREIGN STOCKS-49.10%
CANADA-1.72%
Canadian National Railway Co.
(Railroads) 25,600 776,364
- -------------------------------------------------------------
FINLAND-5.61%
Nokia Oyj-ADR (Communications
Equipment) 20,000 2,311,250
- -------------------------------------------------------------
Sonera Oyj
(Telecommunications-Cellular/Wireless) 7,350 220,765
- -------------------------------------------------------------
2,532,015
- -------------------------------------------------------------
FRANCE-4.23%
Suez Lyonnaise des Eaux S.A.
(Manufacturing- Diversified) 3,650 589,437
- -------------------------------------------------------------
Vivendi (Consumer Services) 17,400 1,318,924
- -------------------------------------------------------------
1,908,361
- -------------------------------------------------------------
GERMANY-5.31%
Mannesmann A.G.
(Machinery-Diversified) 12,800 2,013,203
- -------------------------------------------------------------
Viag A.G. (Manufacturing-Diversified) 20,800 384,040
- -------------------------------------------------------------
2,397,243
- -------------------------------------------------------------
IRELAND-2.40%
CRH PLC (Construction-Cement &
Aggregates) 38,000 717,603
- -------------------------------------------------------------
Esat Telecom Group PLC-ADR
(Telecommunications-Long
Distance)(a) 8,200 366,950
- -------------------------------------------------------------
1,084,553
- -------------------------------------------------------------
ISRAEL-0.44%
Partner Communications Co. Ltd.-ADR
(Telecommunications-Cellular/
Wireless)(a) 12,700 200,025
- -------------------------------------------------------------
ITALY-3.17%
ACEA S.p.A. (Water Utilities)(a) 72,800 810,314
- -------------------------------------------------------------
Telecom Italia S.p.A. (Telephone) 126,300 620,521
- -------------------------------------------------------------
1,430,835
- -------------------------------------------------------------
</TABLE>
5
<PAGE> 8
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
JAPAN-3.67%
Nippon Telegraph & Telephone Corp.
(Telecommunications-Long Distance) 30 $ 460,410
- -------------------------------------------------------------
NTT Mobile Communications Network,
Inc.
(Telecommunications-Cellular/Wireless) 45 1,195,626
- -------------------------------------------------------------
1,656,036
- -------------------------------------------------------------
MEXICO-0.11%
Nuevo Grupo Iusacell S.A. de C.V.-ADR
(Telecommunications-Cellular/Wireless) 4,300 51,062
- -------------------------------------------------------------
NETHERLANDS-3.07%
Equant N.V. (Computers-Networking)(a) 8,980 871,060
- -------------------------------------------------------------
Libertel N.V.
(Telecommunications-Cellular/
Wireless)(a) 9,750 184,635
- -------------------------------------------------------------
Versatel Telecom International N.V.
(Telecommunications-Long
Distance)(a) 26,500 328,976
- -------------------------------------------------------------
1,384,671
- -------------------------------------------------------------
PORTUGAL-0.78%
Brisa-Auto Estradas de Portugal, S.A.
(Engineering & Construction) 8,900 350,654
- -------------------------------------------------------------
SOUTH KOREA-3.34%
Korea Electric Power Corp.-ADR
(Electric Companies) 29,500 464,625
- -------------------------------------------------------------
Pohang Iron & Steel Co. Ltd.-ADR (Iron
& Steel) 31,200 1,041,300
- -------------------------------------------------------------
1,505,925
- -------------------------------------------------------------
SPAIN-3.34%
Endesa S.A.-ADR (Electric Companies) 39,600 789,525
- -------------------------------------------------------------
Sogciable S.A. (Electric Companies)(a) 10,100 277,968
- -------------------------------------------------------------
Union Electrica Fenosa, S.A. (Electric
Companies) 30,000 439,020
- -------------------------------------------------------------
1,506,513
- -------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
UNITED KINGDOM-11.91%
BG PLC (Oil & Gas-Exploration &
Production) 104,100 $ 578,062
- -------------------------------------------------------------
eircom PLC (Telecommunication-Long
Distance)(a) 282,900 1,180,083
- -------------------------------------------------------------
General Electric Co. PLC
(Manufacturing- Diversified) 63,700 692,783
- -------------------------------------------------------------
Hanson PLC-ADR
(Manufacturing-Diversified) 16,000 619,000
- -------------------------------------------------------------
National Grid Group PLC (Electric
Companies) 95,060 710,330
- -------------------------------------------------------------
Vodafone AirTouch PLC
(Telecommunications-Cellular/Wireless) 159,145 740,470
- -------------------------------------------------------------
Vodafone AirTouch PLC-ADR
(Telecommunications-
Cellular/Wireless) 17,750 850,891
- -------------------------------------------------------------
5,371,619
- -------------------------------------------------------------
Total Foreign Stocks (Cost
$13,333,929) 22,155,876
- -------------------------------------------------------------
MONEY MARKET FUNDS-3.99%
STIC Liquid Assets Portfolio(b) 899,465 899,465
- -------------------------------------------------------------
STIC Prime Portfolio(b) 899,465 899,465
- -------------------------------------------------------------
Total Money Market Funds (Cost
$1,798,930) 1,798,930
- -------------------------------------------------------------
TOTAL INVESTMENTS-99.93% 45,091,272
- -------------------------------------------------------------
OTHER ASSETS LESS LIABILITIES-0.07% 33,185
- -------------------------------------------------------------
NET ASSETS-100.00% $45,124,457
=============================================================
</TABLE>
Investment Abbreviations:
ADR - American Depositary Receipt
Conv. - Convertible
Pfd. - Preferred
Notes to Schedule of Investments:
(a)Non-income producing security.
(b)The security shares the same investment advisor as the Fund.
See Notes to Financial Statements.
6
<PAGE> 9
STATEMENT OF ASSETS AND LIABILITIES
October 31, 1999
<TABLE>
<S> <C>
ASSETS:
Investments, at market value (cost $28,619,494) $45,091,272
- ------------------------------------------------------------
Foreign currencies, at value (cost $147) 149
- ------------------------------------------------------------
Receivables for:
Investments sold 782,960
- ------------------------------------------------------------
Fund shares sold 46,900
- ------------------------------------------------------------
Dividends and interest 97,266
- ------------------------------------------------------------
Other assets 17,376
- ------------------------------------------------------------
Total assets $46,035,923
- ------------------------------------------------------------
LIABILITIES:
Payables for:
Investments purchased 654,250
- ------------------------------------------------------------
Fund shares reacquired 62,156
- ------------------------------------------------------------
Accrued advisory fees 35,467
- ------------------------------------------------------------
Accrued administrative services fees 4,110
- ------------------------------------------------------------
Accrued distribution fees 31,525
- ------------------------------------------------------------
Accrued transfer agent fees 17,285
- ------------------------------------------------------------
Accrued trustees' fees 1,923
- ------------------------------------------------------------
Accrued operating expenses 104,750
- ------------------------------------------------------------
Total liabilities 911,466
- ------------------------------------------------------------
Net assets applicable to shares outstanding $45,124,457
============================================================
NET ASSETS:
Class A $19,957,501
============================================================
Class B $25,134,053
============================================================
Class C $ 15,553
============================================================
Advisor Class $ 17,350
============================================================
SHARES OUTSTANDING, $0.01 PAR VALUE PER SHARE:
Class A 1,222,309
============================================================
Class B 1,576,927
============================================================
Class C 976
============================================================
Advisor Class 1,042
============================================================
Class A:
Net asset value and redemption price per
share $ 16.33
- ------------------------------------------------------------
Offering price per share:
(Net asset value of $16.33 / 95.25%) $ 17.14
============================================================
Class B:
Net asset value and offering price per share $ 15.94
============================================================
Class C:
Net asset value and offering price per share $ 15.94
============================================================
Advisor Class:
Net asset value, redemption and offering
price per share $ 16.65
============================================================
</TABLE>
STATEMENT OF OPERATIONS
For the year ended October 31, 1999
<TABLE>
<S> <C>
INVESTMENT INCOME:
Dividends (net of $56,941 foreign withholding
tax) $ 945,552
- ------------------------------------------------------------
Interest 189,760
- ------------------------------------------------------------
Securities lending 24,031
- ------------------------------------------------------------
Total investment income 1,159,343
============================================================
EXPENSES:
Advisory and administrative fees 542,222
- ------------------------------------------------------------
Accounting services fees 25,171
- ------------------------------------------------------------
Custodian fees 23,054
- ------------------------------------------------------------
Distribution fees -- Class A 108,405
- ------------------------------------------------------------
Distribution fees -- Class B 283,904
- ------------------------------------------------------------
Distribution fees -- Class C 70
- ------------------------------------------------------------
Printing fees 85,468
- ------------------------------------------------------------
Professional fees 89,512
- ------------------------------------------------------------
Trustees' fees 10,382
- ------------------------------------------------------------
Transfer agent fees -- Class A 59,181
- ------------------------------------------------------------
Transfer agent fees -- Class B 80,806
- ------------------------------------------------------------
Transfer agent fees -- Class C 20
- ------------------------------------------------------------
Transfer agent fees -- Advisor 2,504
- ------------------------------------------------------------
Other 38,488
- ------------------------------------------------------------
Total expenses 1,349,187
- ------------------------------------------------------------
Less: Expenses paid indirectly (559)
- ------------------------------------------------------------
Fees waived by advisor (123,428)
- ------------------------------------------------------------
Net expenses 1,225,200
- ------------------------------------------------------------
Net investment income (loss) (65,857)
- ------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) FROM
INVESTMENT SECURITIES, FOREIGN CURRENCIES,
AND FORWARD CONTRACTS:
Net realized gain (loss) from:
Investment securities 5,973,179
- ------------------------------------------------------------
Foreign currencies (57,640)
- ------------------------------------------------------------
Forward contracts (354,572)
- ------------------------------------------------------------
5,560,967
- ------------------------------------------------------------
Change in net unrealized appreciation of:
Investment securities 5,616,936
- ------------------------------------------------------------
Foreign currencies 21,529
- ------------------------------------------------------------
Forward contracts 354,572
- ------------------------------------------------------------
5,993,037
- ------------------------------------------------------------
Net gain from investment securities, foreign
currencies, and forward contracts 11,554,004
- ------------------------------------------------------------
Net increase in net assets resulting from
operations $11,488,147
============================================================
</TABLE>
See Notes to Financial Statements.
7
<PAGE> 10
STATEMENTS OF CHANGES IN NET ASSETS
For the years ended October 31, 1999 and 1998
<TABLE>
<CAPTION>
1999 1998
------------ ------------
<S> <C> <C>
OPERATIONS:
Net investment income (loss) $ (65,857) $ 244,486
- ------------------------------------------------------------------------------------------
Net realized gain from investment securities, foreign
currencies, and forward contracts 5,560,967 4,856,101
- ------------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) of
investment securities, foreign currencies, and forward
contracts 5,993,037 (8,253,926)
- ------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
operations 11,488,147 (3,153,339)
- ------------------------------------------------------------------------------------------
Distributions to shareholders from net investment income:
Class A (90,183) --
- ------------------------------------------------------------------------------------------
Advisor Class (56,937) --
- ------------------------------------------------------------------------------------------
Distributions to shareholders from net realized gains:
Class A (1,403,586) (275,162)
- ------------------------------------------------------------------------------------------
Class B (1,925,203) (454,982)
- ------------------------------------------------------------------------------------------
Advisor Class (392,100) (39,917)
- ------------------------------------------------------------------------------------------
Share transactions-net:
Class A (6,581,799) (13,535,979)
- ------------------------------------------------------------------------------------------
Class B (11,163,548) (22,658,418)
- ------------------------------------------------------------------------------------------
Class C 14,334 --
- ------------------------------------------------------------------------------------------
Advisor Class (7,642,305) 4,976,375
- ------------------------------------------------------------------------------------------
Net increase (decrease) in net assets (17,753,180) (35,141,422)
- ------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 62,877,637 98,019,059
- ------------------------------------------------------------------------------------------
End of period $ 45,124,457 $ 62,877,637
==========================================================================================
NET ASSETS CONSIST OF:
Shares of beneficial interest $ 22,848,512 $ 47,321,830
- ------------------------------------------------------------------------------------------
Undistributed net investment income (loss) -- 147,120
- ------------------------------------------------------------------------------------------
Undistributed net realized gain from investment
securities, foreign currencies, and forward contracts 5,806,741 4,932,520
- ------------------------------------------------------------------------------------------
Unrealized appreciation of investment securities, foreign
currencies, and forward contracts 16,469,204 10,476,167
- ------------------------------------------------------------------------------------------
$ 45,124,457 $ 62,877,637
==========================================================================================
</TABLE>
See Notes to Financial Statements.
8
<PAGE> 11
NOTES TO FINANCIAL STATEMENTS
October 31, 1999
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 consists of four different classes of shares:
Class A shares, Class B shares, Class C shares and Advisor Class 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
October 31, 1999, 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 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 options contracts generally will be valued 15 minutes
after the close of trading 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 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, Investment Income and Distributions--Securities
transactions are accounted for on a trade date basis. Realized gains or
losses on sales are computed on the basis of specific identification of the
securities sold. Interest income is recorded as earned from settlement date
and is recorded on the accrual basis. Dividend income is recorded on the
ex-dividend date. The Fund may elect to use a portion of the proceeds of fund
share redemptions as distributions for Federal income tax purposes.
Distributions from income and net realized capital gains, if any, are
generally paid annually and recorded on ex-dividend date.
On October 31, 1999, undistributed net investment income was increased by
$65,857, undistributed net realized gains decreased by $965,857 and paid-in
capital increased by $900,000 as a result of differing book/tax treatment of
foreign currency transactions, equalization credits and net operating loss
reclassifications in order to comply with the requirements of the American
Institute of Certified Public Accountants Statement of Position 93-2. Net
assets of the Fund were unaffected by the reclassification discussed above.
C. Federal Income Taxes--The Fund intends to comply with the requirements of
the Internal Revenue Code necessary to qualify
9
<PAGE> 12
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.
D. Futures Contracts--The Portfolio 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 Portfolio'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 Portfolio recognizes a realized gain or loss equal to the
difference between the proceeds from, or cost of, the closing transaction and
the Portfolio'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.
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 (exclusive of
brokerage commissions, taxes, interest and extraordinary expenses) to the
maximum annual rate of 2.00%, 2.50%, 2.50% and 1.50% of the average daily net
assets of the Fund's Class A, Class B, Class C and Advisor Class shares,
respectively. During the year ended October 31, 1999, AIM waived fees of
$123,428.
Effective July 1, 1999, the Trust entered into a master administrative
services agreement with AIM, replacing the prior pricing and accounting
agreement. The Fund, pursuant to the 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. Prior to July 1,
1999, AIM was the pricing and accounting agent for the Fund and the Portfolio.
The monthly fee for these services paid to AIM was a percentage, not to exceed
0.03% annually, of a Fund's average daily net assets. The annual fee rate was
derived based on the aggregate net assets of the funds which comprised the
following investment companies: AIM Growth Series, AIM Investment Funds, AIM
Series Trust, G.T. Global Variable Investment Series and G.T. Global Variable
Investment Trust. The fee was calculated at the rate of 0.03% of the first $5
billion of assets and 0.02% to the assets in excess of $5 billion. An amount is
allocated to and paid by each
10
<PAGE> 13
such fund based on its relative average daily net assets. For the year ended
October 31, 1999, AIM was paid $25,171 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 year ended October 31, 1999, AFS was
paid $112,334 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, Class C and Advisor Class shares of the Fund. The Trust has
adopted a plan 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 year ended October 31, 1999, the Class A, Class B and Class C
shares paid AIM Distributors $108,405, 283,904 and $70, respectively, as
compensation under the Plans.
AIM Distributors received commissions of $3,065 from sales of the Class A
shares of the Fund during the year ended October 31, 1999. 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 year ended October 31, 1999,
AIM Distributors received $0 in contingent deferred sales charges imposed on
redemptions of Fund shares. Certain officers and trustees of the Trust are
officers and directors of AIM, AFS and AIM Distributors.
NOTE 3-INDIRECT EXPENSES
During the year ended October 31, 1999, the Fund received reductions in
custodian fees of $559 under expense offset arrangements. The effect of the
above arrangements resulted in a reduction of the Fund's total expenses of $559
during the year ended October 31, 1999.
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 year
ended October 31, 1999, 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. Prior to May 28, 1999, the Fund, along with certain
other funds advised and/or administered by AIM, had a line of credit with
BankBoston and State Street Bank & Trust Company. The arrangements with the
banks allowed the Fund and certain other funds to borrow, on a first come, first
served basis, an aggregate maximum amount of $250,000,000.
NOTE 5-PORTFOLIO SECURITIES LOANED
At October 31, 1999, securities with an aggregate value of $1,699,825 were on
loan to brokers. The loans were secured by cash collateral of $1,733,821
received by the Portfolio. For the year ended October 31, 1999, the Portfolio
received fees of $24,031 for securities lending.
For international securities, cash collateral is received by the Fund against
loaned securities in an amount at least equal to 105% of the market value of the
loaned securities at the inception of each loan. This collateral must be
maintained at not less than 103% of the market value of the loaned securities
during the period of the loan. For domestic securities, cash collateral is
received by the Fund against loaned securities in the amount at least equal to
102% of the market value of the loaned securities at the inception of each loan.
This collateral must be maintained at not less than 100% of the market value of
the loaned securities during the period of the loan. The cash collateral is
invested in a securities lending trust which consists of a portfolio of high
quality short duration securities whose average effective duration is restricted
to 120 days or less.
NOTE 6-INVESTMENT SECURITIES
The aggregate amount of investment securities (other than short-term
securities) purchased and sold by the Portfolio during the year ended October
31, 1999 was $25,277,982 and $50,642,469, respectively. The amount of unrealized
appreciation (depreciation) of investment securities, for tax purposes, as of
October 31, 1999 is as follows:
<TABLE>
<S> <C>
Aggregate unrealized appreciation of
investment securities $ 17,098,924
- ---------------------------------------------------------
Aggregate unrealized appreciation
(depreciation) of investment securities (627,146)
- ---------------------------------------------------------
Net unrealized appreciation of investment
securities $ 16,471,778
=========================================================
Investments have the same cost for the tax and financial
statement purposes.
</TABLE>
11
<PAGE> 14
NOTE 7-SHARE INFORMATION
Changes in shares outstanding during the years ended October 31, 1999 and 1998
were as follows:
<TABLE>
<CAPTION>
OCTOBER 31, 1999 OCTOBER 31, 1998
------------------------------ ------------------------------
SHARES AMOUNT SHARES AMOUNT
------------ --------------- ------------ ---------------
<S> <C> <C> <C> <C>
Sold:
Class A 162,299 $ 2,474,900 127,344 $ 1,959,159
- -----------------------------------------------------------------------------------------------------------------------------
Class B 80,398 1,180,744 378,526 5,629,835
- -----------------------------------------------------------------------------------------------------------------------------
Class C * 976 14,334 -- --
- -----------------------------------------------------------------------------------------------------------------------------
Advisor Class 29,602 453,399 454,559 7,054,949
- -----------------------------------------------------------------------------------------------------------------------------
Issued as reinvestment of dividends:
Class A 102,312 1,428,280 16,842 254,490
- -----------------------------------------------------------------------------------------------------------------------------
Class B 126,907 1,737,353 24,629 365,775
- -----------------------------------------------------------------------------------------------------------------------------
Advisor Class 32,402 459,131 2,594 39,803
- -----------------------------------------------------------------------------------------------------------------------------
Reacquired:
Class A (701,304) (10,484,979) (1,036,046) (15,749,628)
- -----------------------------------------------------------------------------------------------------------------------------
Class B (963,484) (14,081,645) (1,949,017) (28,654,028)
- -----------------------------------------------------------------------------------------------------------------------------
Advisor Class (544,836) (8,554,835) (139,981) (2,118,377)
- -----------------------------------------------------------------------------------------------------------------------------
(1,674,728) $ (25,373,318) (2,120,550) $ (31,218,022)
=============================================================================================================================
</TABLE>
* Class C shares commenced sales on March 1, 1999.
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,
---------------------------------------------------
1999 1998(a) 1997(a) 1996(a) 1995
------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $14.18 $15.01 $14.42 $12.11 $ 12.47
- -------------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income (loss) -- 0.07(b) (0.01) (0.03) (0.03)(c)
- -------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments 3.07 (0.79) 1.32 2.34 (0.33)
- -------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations 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 (0.85) (0.11) (0.72) -- --
- -------------------------------------------------------------------------------------------------------------------
Total distributions (0.92) (0.11) (0.72) -- --
- -------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $16.33 $14.18 $15.01 $14.42 $ 12.11
===================================================================================================================
Total return(d) 22.72% (4.82)% 9.38% 19.08% (2.89)%
===================================================================================================================
Ratios and supplemental data:
Net assets, end of period (in 000's) $19,958 $23,531 $38,281 $38,397 $36,241
===================================================================================================================
Ratio of net investment income (loss) to average net assets:
With fee waivers 0.09%(e) 0.52% (0.09)% (0.19)% (0.32)%
- -------------------------------------------------------------------------------------------------------------------
Without fee waivers (0.13)%(e) 0.28% (0.17)% (0.30)% (0.58)%
- -------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets:
With fee waivers 2.00%(e) 1.99% 2.00% 2.14% 2.36%
- -------------------------------------------------------------------------------------------------------------------
Without fee waivers 2.22%(e) 2.23% 2.08% 2.25% 2.62%
===================================================================================================================
Portfolio turnover rate 49% 96% 41% 41% 45%
===================================================================================================================
</TABLE>
(a) These selected per share data were calculated based upon the average shares
outstanding during the period.
(b) Before reimbursement the net investment income per share would have been
reduced by $0.03.
(c) Before reimbursement the net investment income per share would have been
reduced by $0.03.
(d) Total return does not include sales charges and is not annualized for
periods less than one year.
(e) Ratios are based on average net assets of $21,681,105.
12
<PAGE> 15
NOTE 8-FINANCIAL HIGHLIGHTS (CONTINUED)
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 B
-------------------------------------------------------------
YEAR ENDED OCTOBER 31,
-------------------------------------------------------------
1999(a) 1998(a) 1997(a) 1996(a) 1995
--------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 13.87 $14.75 $14.24 $12.03 $ 12.45
- ---------------------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income (loss) (0.06) --(b) (0.09) (0.09) (0.09)(c)
- ---------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments 2.98 (0.77) 1.32 2.30 (0.33)
- ---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations 2.92 (0.77) 1.23 2.21 (0.42)
- ---------------------------------------------------------------------------------------------------------------------------
Distributions to shareholders:
From net realized gain on investments (0.85) (0.11) (0.72) -- --
- ---------------------------------------------------------------------------------------------------------------------------
Total distributions (0.85) (0.11) (0.72) -- --
- ---------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 15.94 $13.87 $14.75 $14.24 $ 12.03
===========================================================================================================================
Total return(d) 22.03% (5.31)% 8.83% 18.37% (3.37)%
===========================================================================================================================
Ratios and supplemental data:
Net assets, end of period (in 000's) $25,134 $32,349 $57,199 $53,678 $50,181
===========================================================================================================================
Ratio of net investment income (loss) to average net assets:
With fee waivers (0.41)%(e) 0.02% (0.59)% (0.69)% (0.82)%
- ---------------------------------------------------------------------------------------------------------------------------
Without fee waivers (0.63)%(e) (0.22)% (0.67)% (0.80)% (1.08)%
- ---------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets:
With fee waivers 2.50%(e) 2.49% 2.50% 2.64% 2.86%
- ---------------------------------------------------------------------------------------------------------------------------
Without fee waivers 2.72%(e) 2.73% 2.58% 2.75% 3.12%
===========================================================================================================================
Portfolio turnover rate 49% 96% 41% 41% 45%
===========================================================================================================================
</TABLE>
(a) These selected per share data were calculated based upon the average shares
outstanding during the period.
(b) Before reimbursement the net investment income per share would have been
reduced by $0.03.
(c) Before reimbursement the net investment income per share would have been
reduced by $0.03.
(d) Total return does not include sales charges and is not annualized for
periods less than one year.
(e) Ratios are based on average net assets of $28,390,371.
13
<PAGE> 16
NOTE 8-FINANCIAL HIGHLIGHTS (CONTINUED)
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 C ADVISOR CLASS
------------- --------------------------------------------
MARCH 1, 1999 JUNE 1, 1995
TO YEAR ENDED OCTOBER 31, TO
OCTOBER 31, -------------------------------------------- OCTOBER 31,
1999(a) 1999(a) 1998(a) 1997(a) 1996(a) 1995
------------- ----------- ------- ------- ------- ------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $13.99 $14.46 $15.23 $14.52 $12.14 $12.00
- --------------------------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income (loss) (0.03) 0.05 0.16(b) 0.05 0.04 0.02(c)
- --------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on
investments 1.98 3.15 (0.82) 1.38 2.34 0.12
- --------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment
operations 1.95 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 -- (0.85) (0.11) (0.72) -- --
- --------------------------------------------------------------------------------------------------------------------------------
Total distributions -- (1.01) (0.11) (0.72) -- --
- --------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $15.94 $16.65 $14.46 $15.23 $14.52 $12.14
================================================================================================================================
Total return(d) 13.94% 23.29% (4.35)% 10.10% 19.60% 1.17%
================================================================================================================================
Ratios and supplemental data:
Net assets, end of period (in 000's) $ 16 $ 17 $6,997 $2,539 $ 344 $ 216
================================================================================================================================
Ratio of net investment income (loss) to average
net assets:
With fee waivers (0.41)%(e) 0.59%(f) 1.02% 0.41% 0.31% 0.18%(g)
- --------------------------------------------------------------------------------------------------------------------------------
Without fee waivers (0.63)%(e) 0.37%(f) 0.78% 0.33% 0.20% (0.08)%(g)
- --------------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets:
With fee waivers 2.50%(e) 1.50%(f) 1.49% 1.50% 1.64% 1.86%(g)
- --------------------------------------------------------------------------------------------------------------------------------
Without fee waivers 2.72%(e) 1.72%(f) 1.73% 1.58% 1.75% 2.12%(g)
================================================================================================================================
Portfolio turnover rate 49% 49% 96% 41% 41% 45%
================================================================================================================================
</TABLE>
(a) These selected per share data were calculated based upon the average shares
outstanding during the period.
(b) Before reimbursement the net investment income per share would have been
reduced by $0.04.
(c) Before reimbursement the net investment income per share would have been
reduced by $0.02.
(d) Total return does not include sales charges and is not annualized for
periods less than one year.
(e) Ratios are annualized and based on average net assets of $10,439.
(f) Ratios are based on average net assets of $5,431,028.
(g) Annualized.
NOTE 9-SUBSEQUENT EVENT
On November 3, 1999, the Board of Trustees approved the conversion of Advisor
Class Shares into Class A Shares. The proposed effective date of this conversion
is February 11, 2000.
14
<PAGE> 17
REPORT OF INDEPENDENT ACCOUNTANTS
To the Shareholders of AIM Global Infrastructure Fund
and Board of Trustees of AIM Investment Funds
In our opinion, the accompanying statement of assets and
liabilities, including the schedule of investments, and
the related statements of operations and of changes in
net assets and the financial highlights present fairly,
in all material respects, the financial position of the
AIM Global Infrastructure Fund at October 31, 1999, and
the results of its operations, the changes in its net
assets and the financial highlights for the periods
indicated, in conformity with generally accepted
accounting principles. These financial statements and
financial highlights (hereafter referred to as "financial
statements") are the responsibility of the Fund's
management; our responsibility is to express an opinion
on these financial statements based on our audits. We
conducted our audits of these financial statements in
accordance with generally accepted auditing standards
which require that we plan and perform the audit to
obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements,
assessing the accounting principles used and significant
estimates made by management, and evaluating the overall
financial statement presentation. We believe that our
audits, which included confirmation of securities at
October 31, 1999 by correspondence with the custodian and
brokers, provide a reasonable basis for the opinion
expressed above.
PRICEWATERHOUSECOOPERS LLP
Boston, Massachusetts
December 23, 1999
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
AUDITORS
PricewaterhouseCoopers LLP
160 Federal St.
Boston, MA 02110
</TABLE>
REQUIRED FEDERAL INCOME TAX INFORMATION -- UNAUDITED
AIM Global Infrastructure Fund paid ordinary dividends in the amount of $0.0700
and $0.1582 per share to Class A, and Advisor Class shareholders, respectively
during its tax year ended October 31, 1999. Of this amount, 85.08% is eligible
for the dividends received deduction for corporations. The Fund also distributed
long-term capital gains of $3,681,650 during the Fund's tax year ended October
31, 1999.
STATE TAX INFORMATION
Of the total ordinary dividends paid, 4.96% for Class A, and Advisor shares were
derived from U.S. Treasury obligations.
16
<PAGE> 19
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<PAGE> 20
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<TABLE>
<S> <C> <C>
GROWTH FUNDS MONEY MARKET FUNDS A I M Management Group Inc. has provided
AIM Aggressive Growth Fund(1) AIM Money Market Fund leadership in the mutual fund industry since
AIM Blue Chip Fund AIM Tax-Exempt Cash Fund 1976 and managed approximately $120 billion
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AIM Dent Demographic Trends Fund AIM Advisor International Value Fund investors, corporate clients and financial
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</TABLE>
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Previously the fund invested in all size companies in most areas of Europe. The
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June 1, 1999, AIM Global Telecommunications Fund was renamed AIM Global
Telecommunications and Technology Fund. (6)Effective August 27, 1999, AIM Global
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