<PAGE> 1
ANNUAL REPORT / OCTOBER 31 1999
AIM GLOBAL GROWTH & INCOME FUND
[COVER IMAGE]
[AIM LOGO APPEARS HERE]
<PAGE> 2
[COVER IMAGE]
-------------------------------------
HEROES ON WHEELS BY JANE WOOSTER SCOTT
JANE WOOSTER SCOTT'S IMAGINATIVE PAINTING OF A CYCLING CHAMPIONSHIP
CAPTURES THE SPIRIT OF AN INTERNATIONAL CELEBRATION.
LIKE SPORTS, INVESTING BRINGS THE WORLD TOGETHER, UNITING
AND ENRICHING PEOPLE ALL OVER THE GLOBE.
-------------------------------------
AIM Global Growth & Income Fund seeks to provide long-term growth of capital
together with current income. The fund invests in stocks of blue-chip companies
and high-quality government bonds from around the world.
ABOUT FUND PERFORMANCE AND PORTFOLIO DATA THROUGHOUT THIS REPORT:
o AIM Global Growth & Income Fund's performance figures are historical and
reflect the reinvestment of all distributions and changes in net asset
value.
o When sales charges are included in performance figures, Class A share
performance reflects the maximum 5.50% sales charge, and Class B 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, C, and Advisor Class shares will
differ from that of its Class A shares due to differences in sales-charge
structure and 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, -1.83%; five years, 10.71%; inception
(9/25/90), 11.03%. Class B shares, one year, -1.21%; five years, 10.98%;
inception (10/22/92), 11.43%. Class C shares, cumulative since inception
(3/1/99), -5.19%. Advisor Class shares, one year, 4.13%; inception (6/1/95),
12.84%.
o Because C shares have been offered for less than one year (since 3/1/99),
the return provided is the cumulative total return that has not 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's Class A shares paid
distributions of $1.613; Class B shares, $1.553; Class C shares, $.093; and
Advisor Class shares, $1.643.
o International investing presents certain risks not associated with investing
solely in the United States. These include risks relating to fluctuations in
the value of the U.S. dollar relative to the values of other currencies, the
custody arrangements made for the fund's foreign holdings, differences in
accounting, political risks and the lesser degree of public information
required to be provided by non-U.S. companies.
o The fund's investment return and principal value will fluctuate, so an
investor's shares, when redeemed, may be worth more or less than their
original cost.
ABOUT INDEXES AND OTHER PERFORMANCE BENCHMARKS CITED IN THIS REPORT:
o The J.P. Morgan Global Government Bond Index is a market-value-weighted
average of government bonds from 13 major developed bond markets. It is
measured in U.S. dollars, and it includes the effect of reinvested coupons.
o The unmanaged MSCI World Index is a group of global securities listed on
major world stock exchanges and tracked by Morgan Stanley Capital
International.
o The unmanaged MSCI All Country World Index tracks the performance of the
more than 50 countries covered by Morgan Stanley Capital International that
are considered either a developed or emerging market.
o The unmanaged Standard & Poor's Composite Index of 500 Stocks (S&P 500) is
widely regarded by investors as representative of the stock market in
general.
o An investment cannot be made in any index listed. Unless otherwise
indicated, index results include reinvested dividends and do not reflect
sales charges.
AN INVESTMENT IN THE FUND IS NOT A DEPOSIT OF A BANK AND IS NOT INSURED OR
GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY OTHER
GOVERNMENT AGENCY. THERE IS A RISK THAT YOU COULD LOSE SOME OR ALL OF
YOUR MONEY.
This report may be distributed only to current shareholders or to persons
who have received a current prospectus of the fund.
AIM GLOBAL GROWTH & INCOME FUND
<PAGE> 3
ANNUAL REPORT / CHAIRMAN'S LETTER
Dear Fellow Shareholder:
The fiscal year discussed in this report reconfirmed our
[PHOTO OF faith in two long-established principles of investing:
Charles T. portfolio diversification and long-term thinking. We could
Bauer, title this report "What a Difference a Year Makes."
Chairman of An investor surveying conditions when the fiscal year
the Board of opened on October 31, 1998, saw a market dominated by
THE FUND large-capitalization stocks and high-quality bonds,
APPEARS HERE] 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 GROWTH & INCOME FUND
<PAGE> 4
ANNUAL REPORT / MANAGERS' OVERVIEW
BOND MARKET HAMPERS PERFORMANCE
HOW DID AIM GLOBAL GROWTH & INCOME FUND PERFORM?
The fund had a disappointing year, reporting a 1.03% return for Class A shares
and a 0.42% return for Class B shares for the period ending October 31, 1999.
Class C shares had a -1.98% cumulative return since their inception on March 31,
1999. These figures are at net asset value, without a sales charge. Advisor
Class shares returned 1.30%.
During the reporting period, the MSCI World Index rose 24.91%, while the
J.P. Morgan Global Government Bond Index returned -2.95%. These indexes help
explain the performance of the fund--global equity markets did well over the
fiscal year, but bond markets underperformed.
WHAT WERE MARKET CONDITIONS LIKE DURING THIS TIME?
Investor concern over interest rates made the U.S. markets very volatile during
the reporting period. In June and August, the Federal Reserve Board (the Fed)
raised rates in two quarter-point moves. At its October meeting, the Fed chose
to leave rates unchanged but adopted a "tightening bias," indicating that it may
be inclined to raise rates in the near future. Shortly after the close of the
fiscal year, the Fed increased interest rates by another quarter point.
Bond markets suffered a difficult period; in fact, 1999 has been the worst
year for bonds since 1994, and the second worst year on record. For example, the
yield of the benchmark 30-year U.S. Treasury bond rose from 5.15% at the
beginning of the fiscal year to 6.16% at its end.
The domestic equity market changed from an exclusively large-cap growth
environment of the last two years to a much broader market, which included value
and cyclical as well as small- and mid-cap stocks. These stocks had been
undervalued for some time, but they became attractive as many large companies
suffered earnings disappointments.
Across the Atlantic, merger activity continued to dominate. Toward the end
of the reporting period, the European merger market topped the United States for
the first time. Ten European deals were announced in the third quarter of 1999
with values of more than $10 billion each.
For most of the fiscal year Japan led Asia's recovery. Investors flocked to
Japanese securities after Japan posted two consecutive quarters of economic
growth, signaling an end to its extended recession. As Japan struggled to regain
its economic strength and foothold in the world economy, it has done so at a
cost to the United States. The dollar/yen relationship gyrated severely during
the third quarter of 1999, nearly causing the dollar to reach a 44-month low.
HOW DID YOU MANAGE THE FUND IN THIS ENVIRONMENT?
The fund maintained its strict blue-chip investment discipline. We invest in
stocks with a market capitalization of more than $1 billion and a dividend yield
greater than that of the MSCI World Index. We also look for good stocks that are
selling at a discount relative to the market. Because of our investment
criteria, the fund has avoided several areas that have performed well over the
fiscal year.
JAPAN: The universe of Japanese stocks that meet our criteria is very small.
At this time, these stocks have neither the growth nor the dividend yield we
look for.
TECHNOLOGY: The fund has avoided high-flying technology stocks, because we
consider many of these to be overpriced.
WHAT ABOUT THE FUND'S BOND COMPONENT?
The fund weightings are currently 70% stocks and 30% bonds. We invested in
investment-grade U.S. and European government bonds. Sovereign debt made up
15.27% of the fund's total assets. Our bond performance was hurt by rising
-------------------------------------
WE MUST EMPHASIZE THAT WE
ARE INVESTORS FOR THE LONG TERM.
OUR DISCIPLINE HAS MET WITH DIFFICULT
PERIODS IN THE PAST, AND FOR THE SAME
REASONS AS THIS PAST YEAR. BUT, OVER A
PERIOD OF MANY YEARS, OUR INVESTORS
HAVE ENJOYED EXCELLENT TOTAL RETURNS
WITH BELOW AVERAGE RISK.
-------------------------------------
PORTFOLIO COMPOSITION
As of 10/31/99, based on total net assets
================================================================================
TOP 10 EQUITY HOLDINGS
- --------------------------------------------------------------------------------
1. Royal Dutch Petroleum Co. (Netherlands) 3.30
2. Bristol-Myers Squibb Co. (U.S.) 3.19
3. Mobil Corp. (U.S.) 3.04
4. McGraw-Hill Cos., Inc. (The) (U.S.) 3.03
5. Bestfoods (U.S.) 2.77
6. Bell Atlantic Corp. (U.S.) 2.55
7. First Tennessee National Corp. ( U.S.) 2.35
8. Bank of America Corp. (U.S.) 2.32
9. Anheuser-Busch Companies, Inc. (U.S.) 2.12
10. Julius Baer Holding A.G. (Switzerland) 2.08
================================================================================
See important fund and index disclosures inside front cover.
AIM GLOBAL GROWTH & INCOME FUND
2
<PAGE> 5
ANNUAL REPORT / MANAGERS' OVERVIEW
interest rates over the past year. Our holdings for most of the period had a
longer than average maturity, which made the impact of rising interest rates
somewhat worse for the fund than for our benchmark index. Bond returns were
further aggravated by our absence from Japan, where the strong value of the yen
made it one of the best performing bond markets globally.
WHAT CHANGES HAVE YOU MADE TO THE FUND'S PORTFOLIO?
Over the fiscal year, we increased our U.S. holdings from 48.6% to 52.88% of the
fund. Most of our top equity holdings were major U.S. corporations across a wide
spectrum of industries, including pharmaceuticals, oil, publishing, food
products, telecommunications, financials and beverage companies.
New to the fund are Bank of America and Swiss banking firm Julius Baer
Holding AG. We consider financial stocks to be a good buying opportunity, as
interest rate concerns have caused them to experience substantial volatility
this year. The long-term prospects for banks are favorable based on their
earnings strength.
The fund had capital gains of 7.81% over the fiscal year because it sold
long-term holdings that had begun to suffer from deteriorating quality and
declining earnings growth prospects. We also reduced our holdings in countries
where we no longer felt comfortable with market conditions.
WHAT'S YOUR OUTLOOK FOR THE FUND OVER THE NEAR TERM?
Clearly our conservative investment approach--our blue-chip discipline and bond
component--hurt the fund's performance over the past fiscal year. We must
emphasize that we are investors for the long term. Our discipline has met with
difficult periods in the past, and for the same reasons as this past year. But
over a period of many years, our investors have enjoyed excellent total returns
with below average risk.
Although there seems to be a great deal of concern in the fixed-income
markets, we believe this market environment provides a good buying opportunity.
Our large weighting on the bond side may pay off not just in dividends, but in
performance as well. In the United Kingdom, the bond market is benefiting from
low inflation and a Bank of England that has acted vigilantly to keep it in
check. Euroland bonds are showing signs of improvement as well.
================================================================================
PORTFOLIO ALLOCATION
- --------------------------------------------------------------------------------
Cash/Other 2.46%
International
Bonds 15.27%
U.S. Government
Notes and Bonds 13.76%
International
Common Stocks 31.16%
U.S. Common Stocks 37.35%
================================================================================
================================================================================
TOP 10 COUNTRIES
- --------------------------------------------------------------------------------
1. United States 52.88%
2. United Kingdom 15.51
3. Netherlands 6.71
4. France 6.26
5. Germany 6.17
6. Australia 3.10
7. Switzerland 3.07
8. New Zealand 1.62
9. Belgium 1.47
10. Denmark 1.36
================================================================================
================================================================================
TOP 5 FIXED-INCOME HOLDINGS
- --------------------------------------------------------------------------------
COUPON MATURITY %
U.S. Treasury Notes 6.63 06/30/01 5.65
Government of France, Deb. 4.00 10/25/09 3.76
Bundesrepublik Deutschland, Bonds 8.375 05/21/01 3.35
U.S. Treasury Notes 5.63 05/15/08 3.11
U.S. Treasury Bonds 8.75 08/15/20 2.97
================================================================================
See important fund and index disclosures inside front cover.
AIM GLOBAL GROWTH & INCOME FUND
3
<PAGE> 6
ANNUAL REPORT / PERFORMANCE HISTORY
YOUR FUND'S LONG-TERM PERFORMANCE
RESULTS OF A $10,000 INVESTMENT
AIM GLOBAL GROWTH & INCOME FUND VS. BENCHMARK INDEXES
9/25/90-10/31/99
in thousands
AIM Global Growth JP Morgan Global MSCI All
& Income Fund Government Bond MSCI World Country World
Class A Shares Index Index Index
-------------- ----- ----- -----
9/30/90 -- -- -- --
10/31/90 9,464 10,396 10,930 10,927
10/31/91 10,948 11,564 12,651 12,796
10/31/92 11,593 13,018 11,939 12,250
10/31/93 15,503 14,451 15,227 15,674
10/31/94 14,958 14,830 16,392 17,292
10/31/95 15,896 17,107 17,947 18,524
10/31/96 18,567 18,151 20,872 21,414
10/31/97 22,095 18,784 24,373 24,785
10/31/98 26,019 21,222 28,091 27,948
10/31/99 26,286 20,595 35,070 35,328
Source: Lipper, Inc.
Past performance cannot guarantee comparable future results.
ABOUT THIS CHART
The chart compares your fund's Class A shares to benchmark indexes. It is
intended to give you an idea of how your fund performed compared to these
benchmarks over the period 9/25/90-10/31/99. (Please note that the indexes'
performance figures are for the period (9/30/90-10/31/99.) It is important to
understand the differences between your fund and an index. An index measures
performance of a hypothetical portfolio. A market index is not managed,
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 the return on your investment. Since the last reporting period, AIM
Global Growth & Income Fund has elected to use the MSCI All Country World Index
as its benchmark instead of the MSCI World Index. The new index more closely
resembles the securities in which the fund invests. The fund will no longer
measure its performance against the MSCI World Index. 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.
AVERAGE ANNUAL TOTAL RETURNS
As of 10/31/99, including sales charges
================================================================================
CLASS A SHARES
- --------------------------------------------------------------------------------
Inception (9/25/90) 11.21%
5 years 10.68
1 year -4.54*
*1.03% excluding sales charges
CLASS B SHARES
- --------------------------------------------------------------------------------
Inception (10/22/92) 11.65%
5 years 10.96
1 year -3.80*
*0.42% excluding sales charges
CLASS C SHARES
- --------------------------------------------------------------------------------
Inception (3/01/99) -2.95%*
*Cumulative return; -1.98 excluding sales charges
ADVISOR CLASS SHARES
- --------------------------------------------------------------------------------
Inception (6/1/95) 13.17%
1 year 1.30*
*Advisor Class Shares were closed to new investors as of March 1, 1999
================================================================================
Your fund's total return includes sales charges, expenses and management fees.
The performance of the fund's Class B, Class C and Advisor Class shares will
differ from Class A shares due to differing fees and expenses. For fund
performance calculations and descriptions of the indexes cited on this page,
please refer to the inside front cover.
MARKET VOLATILITY CAN SIGNIFICANTLY IMPACT SHORT-TERM PERFORMANCE. RESULTS OF AN
INVESTMENT MADE TODAY MAY DIFFER SUBSTANTIALLY FROM THE HISTORICAL PERFORMANCE
SHOWN.
AIM GLOBAL GROWTH & INCOME FUND
4
<PAGE> 7
SCHEDULE OF INVESTMENTS
October 31, 1999
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
DOMESTIC COMMON STOCKS-37.35%
BANKS (MONEY CENTER)-2.32%
Bank of America Corp. 230,000 $ 14,806,250
- --------------------------------------------------------------
BANKS (REGIONAL)-2.35%
First Tennessee National Corp. 440,800 14,987,200
- --------------------------------------------------------------
BEVERAGES (ALCOHOLIC)-3.12%
Anheuser-Busch Companies, Inc. 188,371 13,527,392
- --------------------------------------------------------------
Brown-Forman Corp.-Class B 93,600 6,318,000
- --------------------------------------------------------------
19,845,392
- --------------------------------------------------------------
ELECTRIC COMPANIES-3.72%
Southern Co. 420,000 11,156,250
- --------------------------------------------------------------
Texas Utilities Co. 323,000 12,516,250
- --------------------------------------------------------------
23,672,500
- --------------------------------------------------------------
ELECTRICAL EQUIPMENT-1.56%
Emerson Electric Co. 165,000 9,910,312
- --------------------------------------------------------------
FINANCIAL (DIVERSIFIED)-1.98%
American General Corp. 170,000 12,611,875
- --------------------------------------------------------------
FOODS-2.77%
Bestfoods 300,000 17,625,000
- --------------------------------------------------------------
HEALTH CARE (DIVERSIFIED)-3.19%
Bristol-Myers Squibb Co. 264,800 20,339,950
- --------------------------------------------------------------
INVESTMENT MANAGEMENT-1.22%
PIMCO Advisors Holdings L.P. 225,000 7,804,688
- --------------------------------------------------------------
OIL (INTERNATIONAL
INTEGRATED)-3.04%
Mobil Corp. 200,500 19,348,250
- --------------------------------------------------------------
PERSONAL CARE-1.18%
Avon Products, Inc. 234,000 7,546,500
- --------------------------------------------------------------
PUBLISHING-3.03%
McGraw-Hill Cos., Inc. (The) 324,000 19,318,500
- --------------------------------------------------------------
REAL ESTATE INVESTMENT
TRUSTS-2.88%
Equity Office Properties Trust 457,000 10,111,125
- --------------------------------------------------------------
Equity Residential Properties
Trust 197,000 8,237,063
- --------------------------------------------------------------
18,348,188
- --------------------------------------------------------------
SERVICES (COMMERCIAL &
CONSUMER)-1.43%
Dun & Bradstreet Corp. (The) 309,800 9,100,375
- --------------------------------------------------------------
TELEPHONE-2.55%
Bell Atlantic Corp. 250,000 16,234,375
- --------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
TOBACCO-1.01%
Philip Morris Companies, Inc. 255,000 $ 6,422,813
- --------------------------------------------------------------
Total Domestic Common Stocks
(Cost $165,685,250) 237,922,168
- --------------------------------------------------------------
FOREIGN STOCKS & OTHER EQUITY
INTERESTS-31.16%
AUSTRALIA-3.10%
Foster's Brewing Group Ltd.
(Beverages-Alcoholic) 3,500,000 9,305,685
- --------------------------------------------------------------
National Australia Bank Ltd.
(Banks-Major Regional) 674,825 10,417,395
- --------------------------------------------------------------
19,723,080
- --------------------------------------------------------------
BELGIUM-1.47%
Electrabel S.A. (Electric
Companies) 27,760 9,158,659
- --------------------------------------------------------------
Fortis A.G.-CVG
(Financial-Diversified)(a) 34,440 185,149
- --------------------------------------------------------------
9,343,808
- --------------------------------------------------------------
FRANCE-2.50%
Compagnie de Saint Gobain
(Manufacturing-Diversified)(a) 51,000 8,853,001
- --------------------------------------------------------------
Pernod Ricard
(Beverages-Non-alcoholic) 104,720 7,072,957
- --------------------------------------------------------------
15,925,958
- --------------------------------------------------------------
GERMANY-0.98%
MobilCom A.G.
(Telecommunications-Cellular/
Wireless) 120,000 6,223,928
- --------------------------------------------------------------
ITALY-1.16%
Seat Pagine Gialle S.p.A.
(Publishing)(a) 5,200,000 7,412,744
- --------------------------------------------------------------
NETHERLANDS-6.71%
ING Groep N.V. (Insurance Brokers) 176,878 10,435,619
- --------------------------------------------------------------
Koninklijke KPN N.V.
(Telecommunications-Long
Distance) 220,005 11,292,751
- --------------------------------------------------------------
Royal Dutch Petroleum Co.
(Oil-International Integrated) 351,840 21,035,811
- --------------------------------------------------------------
42,764,181
- --------------------------------------------------------------
NEW ZEALAND-1.62%
Telecom Corp. of New Zealand Ltd.
(Telephone) 2,264,200 9,120,112
- --------------------------------------------------------------
Telecom Corp. of New Zealand
Ltd.-ADR (Telephone) 38,000 1,235,000
- --------------------------------------------------------------
10,355,112
- --------------------------------------------------------------
SWITZERLAND-3.07%
Julius Baer Holding A.G.
(Banks-Major Regional) 4,400 13,231,455
- --------------------------------------------------------------
Swisscom A.G. (Telephone) 20,820 6,342,815
- --------------------------------------------------------------
19,574,270
- --------------------------------------------------------------
</TABLE>
5
<PAGE> 8
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
UNITED KINGDOM-10.55%
Abbey National PLC (Savings & Loan
Companies) 170,000 $ 3,326,014
- --------------------------------------------------------------
Allied Zurich PLC
(Insurance-Mulit-Line) 600,000 7,250,481
- --------------------------------------------------------------
Cadbury Schweppes PLC (Foods) 1,863,600 12,217,480
- --------------------------------------------------------------
CGU PLC (Insurance Brokers) 694,750 10,125,944
- --------------------------------------------------------------
Diageo PLC (Beverages-Alcoholic) 659,559 6,668,943
- --------------------------------------------------------------
EMAP PLC (Publishing) 250,000 3,247,098
- --------------------------------------------------------------
EMI Group PLC (Leisure
Time-Products) 853,500 6,707,484
- --------------------------------------------------------------
Lloyds TSB Group PLC (Banks-Major
Regional) 688,428 9,524,471
- --------------------------------------------------------------
Reckitt & Colman PLC (Household
Products/ Non-durables) 668,093 8,111,770
- --------------------------------------------------------------
67,179,685
- --------------------------------------------------------------
Total Foreign Stocks & Other
Equity Interests (Cost
$147,527,140) 198,502,766
- --------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
<S> <C> <C>
NON-U.S. DOLLAR DENOMINATED
GOVERNMENT BONDS & NOTES-15.27%
DENMARK-1.36%
Kingdom of Denmark, Bonds, 8.00%,
03/15/06 DKK 54,000,000 8,647,572
- --------------------------------------------------------------
FRANCE-3.76%
Government of France, Deb., 4.00%,
10/25/09 EUR 25,200,000 23,913,664
- --------------------------------------------------------------
GERMANY-5.19%
Bundesrepublik Deutschland, Bonds,
8.375%, 05/21/01 EUR 19,000,000 21,336,865
- --------------------------------------------------------------
6.00%, 01/04/07 4,600,000 5,085,825
- --------------------------------------------------------------
6.50%, 07/04/27 5,800,000 6,651,676
- --------------------------------------------------------------
33,074,366
- --------------------------------------------------------------
UNITED KINGDOM-4.96%
United Kingdom Treasury, Bond,
7.00%, 06/07/02 GBP 5,500,000 9,225,047
- --------------------------------------------------------------
Gtd. Note, 9.00%, 10/13/08 4,500,000 9,048,837
- --------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
<S> <C> <C>
UNITED KINGDOM-(CONTINUED)
Gtd. Bond, 9.00%, 08/06/12 GBP 6,022,000 $ 13,324,001
- --------------------------------------------------------------
31,597,885
- --------------------------------------------------------------
Total Non-U.S. Dollar
Denominated Government Bonds
& Notes (Cost $98,119,358) 97,233,487
- --------------------------------------------------------------
U.S. TREASURY SECURITIES-13.76%
U.S. TREASURY NOTES-8.76%
6.63%, 06/30/01 $35,550,000 36,012,505
- --------------------------------------------------------------
5.63%, 05/15/08 20,500,000 19,787,227
- --------------------------------------------------------------
55,799,732
- --------------------------------------------------------------
U.S. TREASURY BONDS-5.00%
8.75%, 08/15/20 15,120,000 18,950,350
- --------------------------------------------------------------
6.50%, 11/15/26 12,745,000 12,898,832
- --------------------------------------------------------------
31,849,182
- --------------------------------------------------------------
Total U.S. Treasury Securities
(Cost $87,847,744) 87,648,914
- --------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
SHARES
<S> <C> <C>
MONEY MARKET FUNDS-1.77%
STIC Liquid Assets Portfolio(c) 5,642,621 5,642,621
- --------------------------------------------------------------
STIC Prime Portfolio(c) 5,642,621 5,642,621
- --------------------------------------------------------------
Total Money Market Funds (Cost
$11,285,242) 11,285,242
- --------------------------------------------------------------
TOTAL INVESTMENTS-99.31% 632,592,577
- --------------------------------------------------------------
OTHER ASSETS LESS
LIABILITIES-0.69% 4,397,411
- --------------------------------------------------------------
NET ASSETS-100.00% $636,989,988
==============================================================
</TABLE>
Investment Abbreviations:
ADR - American Depositary Receipt
Deb. - Debentures
Gtd. - Guaranteed
Notes to Schedule of Investments:
(a)Non-income producing security.
(b)Foreign denominated security. Par value and coupon are denominated in
currency indicated.
(c)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 value (cost $510,464,734) $632,592,577
- ------------------------------------------------------------
Cash 1,245,276
- ------------------------------------------------------------
Receivables for:
Investments sold 1,922,211
- ------------------------------------------------------------
Fund shares sold 986,563
- ------------------------------------------------------------
Dividends and interest 5,456,781
- ------------------------------------------------------------
Other assets 651
- ------------------------------------------------------------
Total assets 642,204,059
- ------------------------------------------------------------
LIABILITIES:
Payables for:
Forward contracts closed 1,618,625
- ------------------------------------------------------------
Fund shares reacquired 2,270,985
- ------------------------------------------------------------
Forward contracts 32,908
- ------------------------------------------------------------
Accrued administrative services fees 11,447
- ------------------------------------------------------------
Accrued advisory fees 526,363
- ------------------------------------------------------------
Accrued distribution fees 423,592
- ------------------------------------------------------------
Accrued transfer agent fees 84,253
- ------------------------------------------------------------
Accrued trustees' fees 1,500
- ------------------------------------------------------------
Accrued operating expenses 244,398
- ------------------------------------------------------------
Total liabilities 5,214,071
- ------------------------------------------------------------
Net assets applicable to shares outstanding $636,989,988
============================================================
NET ASSETS:
Class A $254,060,449
============================================================
Class B $376,180,588
============================================================
Class C $ 1,344,034
============================================================
Advisor Class $ 5,404,917
============================================================
SHARES OUTSTANDING, $0.01 PAR VALUE PER SHARE:
Class A 32,565,310
============================================================
Class B 48,228,206
============================================================
Class C 172,358
============================================================
Advisor Class 693,765
============================================================
Class A:
Net asset value and redemption price per
share $ 7.80
- ------------------------------------------------------------
Offering price per share:
(Net asset value of $7.80 / 94.50%) $ 8.25
============================================================
Class B:
Net asset value and offering price per share $ 7.80
============================================================
Class C:
Net asset value and offering price per share $ 7.80
============================================================
Advisor Class:
Net asset value, redemption and offering
price per share $ 7.79
============================================================
</TABLE>
STATEMENT OF OPERATIONS
For the year ended October 31, 1999
<TABLE>
<S> <C>
INVESTMENT INCOME:
Dividends (net of $815,230 foreign withholding
tax) $ 16,045,328
- ------------------------------------------------------------
Interest 13,957,993
- ------------------------------------------------------------
Securities lending 193,458
- ------------------------------------------------------------
Total investment income 30,196,779
- ------------------------------------------------------------
EXPENSES:
Advisory and administrative fees 7,315,050
- ------------------------------------------------------------
Accounting services fees 207,383
- ------------------------------------------------------------
Custodian fees 358,452
- ------------------------------------------------------------
Distribution fees -- Class A 1,039,956
- ------------------------------------------------------------
Distribution fees -- Class B 4,535,906
- ------------------------------------------------------------
Distribution fees -- Class C 6,314
- ------------------------------------------------------------
Trustees' fees 35,961
- ------------------------------------------------------------
Transfer agent fees -- Class A 508,709
- ------------------------------------------------------------
Transfer agent fees -- Class B 776,580
- ------------------------------------------------------------
Transfer agent fees -- Class C 1,110
- ------------------------------------------------------------
Transfer agent fees -- Advisor Class 9,861
- ------------------------------------------------------------
Interest expense 15,102
- ------------------------------------------------------------
Other 608,387
- ------------------------------------------------------------
Total expenses 15,418,771
- ------------------------------------------------------------
Less: Expenses paid indirectly (4,831)
- ------------------------------------------------------------
Net expenses 15,413,940
- ------------------------------------------------------------
Net investment income 14,782,839
- ------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) FROM
INVESTMENT SECURITIES, FOREIGN CURRENCIES,
AND FORWARD CURRENCY CONTRACTS:
Net realized gain (loss) from:
Investment securities 59,608,133
- ------------------------------------------------------------
Foreign currencies (573,951)
- ------------------------------------------------------------
Forward currency contracts 589,736
- ------------------------------------------------------------
59,623,918
- ------------------------------------------------------------
Change in net unrealized appreciation
(depreciation) of:
Investment securities (64,691,362)
- ------------------------------------------------------------
Foreign currencies (204,635)
- ------------------------------------------------------------
Forward currency contracts (257,665)
- ------------------------------------------------------------
(65,153,662)
- ------------------------------------------------------------
Net gain (loss) from investment securities,
foreign currencies and forward currency
contracts (5,529,744)
- ------------------------------------------------------------
Net increase in net assets resulting from
operations $ 9,253,095
============================================================
</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 $ 14,782,839 $ 12,068,853
- -------------------------------------------------------------------------------------------
Net realized gain from investment securities, foreign
currencies and forward currency contracts 59,623,918 146,741,450
- -------------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) of
investment securities, foreign currencies and forward
currency contracts (65,153,662) (29,909,686)
- -------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 9,253,095 128,900,617
- -------------------------------------------------------------------------------------------
Distributions to shareholders from net investment income:
Class A (3,856,782) (4,583,653)
- -------------------------------------------------------------------------------------------
Class B (2,710,473) (4,410,176)
- -------------------------------------------------------------------------------------------
Class C (654) --
- -------------------------------------------------------------------------------------------
Advisor Class (96,889) (100,933)
- -------------------------------------------------------------------------------------------
Distributions to shareholders from net realized gains:
Class A (50,854,509) (8,368,465)
- -------------------------------------------------------------------------------------------
Class B (78,557,367) (13,388,382)
- -------------------------------------------------------------------------------------------
Class C (9,250) --
- -------------------------------------------------------------------------------------------
Advisor Class (1,015,481) (131,267)
- -------------------------------------------------------------------------------------------
Share transactions-net:
Class A (1,923,750) (24,946,235)
- -------------------------------------------------------------------------------------------
Class B (30,585,595) (31,695,480)
- -------------------------------------------------------------------------------------------
Class C 1,396,141 --
- -------------------------------------------------------------------------------------------
Advisor Class (873,736) 3,071,389
- -------------------------------------------------------------------------------------------
Net increase (decrease) in net assets (159,835,250) 44,347,415
- -------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 796,825,238 752,477,823
- -------------------------------------------------------------------------------------------
End of period $ 636,989,988 $796,825,238
===========================================================================================
NET ASSETS CONSIST OF:
Shares of beneficial interest $ 455,586,900 $467,573,561
- -------------------------------------------------------------------------------------------
Undistributed net realized gain from investment
securities, foreign currencies, and forward currency
contracts 59,366,359 142,061,286
- -------------------------------------------------------------------------------------------
Unrealized appreciation of investment securities, foreign
currencies and forward currency contracts 122,036,729 187,190,391
- -------------------------------------------------------------------------------------------
$ 636,989,988 $796,825,238
===========================================================================================
</TABLE>
See Notes to Financial Statements.
8
<PAGE> 11
NOTES TO FINANCIAL STATEMENTS
October 31, 1999
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 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 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 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 and distributions to
shareholders are recorded on the ex-dividend date. Such distributions are
declared and paid quarterly. The Fund may elect to use a portion of the
proceeds of fund share redemptions as distributions for Federal income tax
purposes. Distributions from 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 decreased by
$8,118,041, undistributed net realized gains decreased by $11,882,238 and
paid-in capital increased by $20,000,279 as a result of differing book/tax
treatment of foreign currency transactions and equalization credits 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 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. 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
9
<PAGE> 12
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.
E. 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 October 31, 1999 were as follows:
<TABLE>
<CAPTION>
UNREALIZED
SETTLEMENT CONTRACT TO CONTRACT TO APPRECIATION
DATE DELIVER RECEIVE VALUE (DEPRECIATION)
---------- ---------------- ----------- ----------- --------------
<S> <C> <C> <C> <C> <C>
02/09/00 GBP 19,600,000 $32,208,288 $32,241,196 $(32,908)
====================================================================================
</TABLE>
F. 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.
G. 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.
H. 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.
INVESCO Asset Management Limited is the Fund's subadvisor. 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 (exclusive of brokerage commissions, taxes,
interest and extraordinary expenses) to the maximum annual rate of 1.75%, 2.40%,
2.40% and 1.40% of the average daily net assets of the Fund's Class A, Class B,
Class C and Advisor Class shares, respectively.
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. Prior to July 1, 1999, AIM was the
pricing and accounting agent for the Fund. 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
such fund based on its relative average daily net assets. For the year ended
October 31, 1999, AIM was paid $207,383 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 $1,226,855 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 0.35% 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 year ended October 31, 1999, the Class A, Class B and Class C
shares paid AIM Distributors $1,039,956, $4,535,906 and $6,314, respectively, as
compensation under the Plans.
AIM Distributors received commissions of $80,124 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 $3,994 in contingent deferred sales charges
10
<PAGE> 13
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 $4,831 under expense offset arrangements. The effect of the
above arrangements resulted in a reduction of the Fund's total expenses of
$4,831 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. 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.
During the year ended October 31, 1999, the average outstanding daily balance
of bank loans for the Fund was $268,364 with a weighted average interest rate of
5.63%. Interest expense for the Fund for the year ended October 31, 1999 was
$15,102.
NOTE 5-PORTFOLIO SECURITIES LOANED
At October 31, 1999, securities with an aggregate value of $926,250 were on loan
to brokers. The loans were secured by cash collateral of $944,775 received by
the Fund. For the year ended October 31, 1999, the Fund received fees of
$193,458 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 Fund during the year ended October 31, 1999 was
$654,207,941 and $785,726,810, respectively.
The amount of unrealized appreciation of investment securities, for tax
purposes, as of October 31, 1999 is as follows:
<TABLE>
<S> <C>
Aggregate unrealized appreciation of
investment securities $131,225,983
- ---------------------------------------------------------
Aggregate unrealized appreciation
(depreciation) of investment securities (10,184,073)
- ---------------------------------------------------------
Net unrealized appreciation of investment
securities $121,041,910
=========================================================
Cost of investments for tax purposes is
$511,550,667.
</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>
1999 1998
--------------------------- ---------------------------
SHARES AMOUNT SHARES AMOUNT
----------- ------------- ----------- -------------
<S> <C> <C> <C> <C>
Sold:
Class A 8,613,668 $ 72,437,015 40,631,419 $ 363,947,180
- -----------------------------------------------------------------------------------------------------------------------
Class B 5,303,281 44,812,675 12,852,707 115,998,695
- -----------------------------------------------------------------------------------------------------------------------
Class C* 195,189 1,576,712 -- --
- -----------------------------------------------------------------------------------------------------------------------
Advisor Class 328,566 2,706,042 4,670,023 41,740,705
- -----------------------------------------------------------------------------------------------------------------------
Issued as reinvestment of dividends:
Class A 6,015,569 49,459,293 1,294,169 11,189,344
- -----------------------------------------------------------------------------------------------------------------------
Class B 8,680,071 71,410,220 1,736,739 14,930,372
- -----------------------------------------------------------------------------------------------------------------------
Class C* 1,149 9,140 -- --
- -----------------------------------------------------------------------------------------------------------------------
Advisor Class 135,251 1,109,119 25,259 222,124
- -----------------------------------------------------------------------------------------------------------------------
Reacquired:
Class A (15,145,571) (123,820,058) (44,464,914) (400,082,759)
- -----------------------------------------------------------------------------------------------------------------------
Class B (18,003,582) (146,808,490) (17,992,943) (162,624,547)
- -----------------------------------------------------------------------------------------------------------------------
Class C* (23,980) (189,711) -- --
- -----------------------------------------------------------------------------------------------------------------------
Advisor Class (552,173) (4,688,897) (4,285,866) (38,891,440)
- -----------------------------------------------------------------------------------------------------------------------
(4,452,562) $ (31,986,940) (5,533,407) $ (53,570,326)
=======================================================================================================================
</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(a) 1998(a) 1997(a) 1996 1995
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 9.26 $ 8.21 $ 7.11 $ 6.35 $ 6.21
- ------------------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income 0.20 0.17 0.21 0.22 0.24
- ------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments (0.05) 1.25 1.12 0.82 0.13
- ------------------------------------------------------------------------------------------------------------------------
Net increase from investment operations 0.15 1.42 1.33 1.04 0.37
- ------------------------------------------------------------------------------------------------------------------------
Distributions to shareholders:
From net investment income (0.11) (0.13) (0.21) (0.24) (0.22)
- ------------------------------------------------------------------------------------------------------------------------
From net realized gain on investments (1.50) (0.24) (0.02) (0.04) (0.01)
- ------------------------------------------------------------------------------------------------------------------------
Total distributions (1.61) (0.37) (0.23) (0.28) (0.23)
- ------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 7.80 $ 9.26 $ 8.21 $ 7.11 $ 6.35
========================================================================================================================
Total return(b) 1.03% 17.76% 19.01% 16.80% 6.27%
========================================================================================================================
Ratios and supplemental data:
Net assets, end of period (in 000's) $254,060 $306,279 $292,528 $286,203 $284,069
========================================================================================================================
Ratio of net investment income to average net assets: 2.34%(c) 1.87% 2.74% 3.17% 3.85%
========================================================================================================================
Ratio of expenses to average net assets: 1.65%(c) 1.65% 1.64% 1.66% 1.74%
========================================================================================================================
Portfolio turnover rate 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 based on average net assets of $297,130,261.
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 1995
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 9.25 $ 8.21 $ 7.11 $ 6.35 $ 6.21
- ----------------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income 0.14 0.11 0.16 0.17 0.20
- ----------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments (0.04) 1.25 1.13 0.82 0.13
- ----------------------------------------------------------------------------------------------------------------------
Net increase from investment operations 0.10 1.36 1.29 0.99 0.33
- ----------------------------------------------------------------------------------------------------------------------
Distributions to shareholders:
From net investment income (0.05) (0.08) (0.17) (0.20) (0.18)
- ----------------------------------------------------------------------------------------------------------------------
From net realized gain on investments (1.50) (0.24) (0.02) (0.03) (0.01)
- ----------------------------------------------------------------------------------------------------------------------
Total distributions (1.55) (0.32) (0.19) (0.23) (0.19)
- ----------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 7.80 $ 9.25 $ 8.21 $ 7.11 $ 6.35
======================================================================================================================
Total return(b) 0.42% 16.93% 18.28% 16.06% 5.57%
======================================================================================================================
Ratios and supplemental data:
Net assets, end of period (in 000's) $376,181 $483,307 $456,893 $383,966 $356,796
======================================================================================================================
Ratio of net investment income to average net assets: 1.69%(c) 1.22% 2.09% 2.52% 3.20%
======================================================================================================================
Ratio of expenses to average net assets: 2.30%(c) 2.30% 2.29% 2.31% 2.39%
======================================================================================================================
Portfolio turnover rate 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 based on average net assets of $453,590,643.
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 YEAR ENDED OCTOBER 31, JUNE 1, 1995
TO ------------------------------------------ TO
OCTOBER 31, 1999(a) 1999(a) 1998(a) 1997(a) 1996 OCTOBER 31, 1995
------------------- ------- ------- ------- ------ ----------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 8.05 $ 9.26 $ 8.20 $ 7.10 $ 6.35 $ 6.24
- ---------------------------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income (loss) 0.10 0.22 0.21 0.23 0.23 0.11
- ---------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on
investments (0.26) (0.05) 1.25 1.13 0.82 0.13
- ---------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment
operations (0.16) 0.17 1.46 1.36 1.05 0.24
- ---------------------------------------------------------------------------------------------------------------------------------
Distributions to shareholders:
From net investment income (0.02) (0.14) (0.16) (0.24) (0.26) (0.13)
- ---------------------------------------------------------------------------------------------------------------------------------
From net realized gain on investments (0.07) (1.50) (0.24) (0.02) (0.04) --
- ---------------------------------------------------------------------------------------------------------------------------------
Total distributions (0.09) (1.64) (0.40) (0.26) (0.30) (0.13)
- ---------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 7.80 $ 7.79 $ 9.26 $ 8.20 $ 7.10 $ 6.35
=================================================================================================================================
Total return(b) (1.98)% 1.30% 18.27% 19.23% 17.19% 3.83%
=================================================================================================================================
Ratios and supplemental data:
Net assets, end of period (in 000's) $1,344 $5,405 $7,239 $3,057 $3,085 $ 944
=================================================================================================================================
Ratio of net investment income to average
net assets: 1.69%(c) 2.69%(d) 2.22% 3.09% 3.52% 4.20%(e)
=================================================================================================================================
Ratio of expenses to average net assets: 2.30%(c) 1.30%(d) 1.30% 1.29% 1.31% 1.39%(e)
=================================================================================================================================
Portfolio turnover rate 89% 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 $944,451.
(d) Ratios are based on average net assets of $5,759,984.
(e) 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 Growth & Income 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 Growth & Income 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 SUB-ADVISOR
President and Chief Executive Officer, Gary T. Crum
A I M Management Group Inc. Vice President INVESCO Asset Management Ltd.
11 Devonshire Square
Arthur C. Patterson Carol F. Relihan London EC2M 4YR
Managing Partner, Accel Partners Vice President England
(a venture capital firm)
Mary J. Benson TRANSFER AGENT
Ruth H. Quigley Assistant Vice President and
Private Investor Assistant Treasurer A I M Fund Services, Inc.
P.O. Box 4739
Sheri Morris Houston, TX 77210-4739
Assistant Vice President and
Assistant Treasurer CUSTODIAN
Nancy L. Martin State Street Bank and Trust Company
Assistant Secretary 225 Franklin Street
Boston, MA 02110
Ofelia M. Mayo
Assistant Secretary COUNSEL TO THE FUND
Kathleen J. Pflueger Kirkpatrick & Lockhart LLP
Assistant Secretary 1800 Massachusetts Avenue, N.W.
Washington, D.C. 20036-1800
COUNSEL TO THE TRUSTEES
Paul, Hastings, Janofsky & Walker LLP
Twenty Third Floor
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 Growth & Income Fund paid ordinary dividends in the amount of $0.110,
$0.050, $0.019 and $0.140 per share to Class A, Class B, Class C and Advisor
Class shareholders, respectively during its tax year ended October 31, 1999. Of
this amount, 85.46% is eligible for the dividends received deduction for
corporations. The Fund also distributed long-term capital gains of $130,436,607
during the Fund's tax year ended October 31, 1999.
REQUIRED STATE INCOME TAX INFORMATION
Of the total income dividends paid, 22% was derived from U.S. Treasury
obligations.
16
<PAGE> 19
-------------------------------------
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<PAGE> 20
THE AIM FAMILY OF FUNDS--Registered Trademark--
<TABLE>
<S> <C> <C>
GROWTH FUNDS MONEY MARKET FUNDS A I M Management Group Inc. has
AIM Aggressive Growth Fund(1) AIM Money Market Fund provided leadership in the
AIM Blue Chip Fund AIM Tax-Exempt Cash Fund mutual fund industry since 1976
AIM Capital Development Fund and managed approximately $120
AIM Constellation Fund INTERNATIONAL GROWTH FUNDS billion in assets for more than
AIM Dent Demographic Trends Fund AIM Advisor International Value Fund 6.4 million shareholders,
AIM Large Cap Growth Fund AIM Asian Growth Fund including individual investors,
AIM Mid Cap Equity Fund AIM Developing Markets Fund corporate clients and financial
AIM Mid Cap Growth Fund AIM Euroland Growth Fund(4) institutions, as of September
AIM Mid Cap Opportunities Fund AIM European Development Fund 30, 1999.
AIM Select Growth Fund AIM International Equity Fund The AIM Family of Funds
AIM Small Cap Growth Fund(2) AIM Japan Growth Fund --Registered Trademark-- is
AIM Small Cap Opportunities Fund(3) AIM Latin American Growth Fund distributed nationwide, and AIM
AIM Value Fund AIM New Pacific Growth Fund today is the 10th-largest mutual
AIM Weingarten Fund fund complex in the United
GLOBAL GROWTH FUNDS States in assets under
GROWTH & INCOME FUNDS AIM Global Aggressive Growth Fund management, according to
AIM Advisor Flex Fund AIM Global Growth Fund Strategic Insight, an
AIM Advisor Large Cap Value Fund independent mutual fund monitor.
AIM Advisor Real Estate Fund GLOBAL GROWTH & INCOME FUNDS
AIM Balanced Fund AIM Global Growth & Income Fund
AIM Basic Value Fund AIM Global Utilities Fund
AIM Charter Fund
GLOBAL INCOME FUNDS
INCOME FUNDS AIM Emerging Markets Debt Fund
AIM Floating Rate Fund AIM Global Government Income Fund
AIM High Yield Fund AIM Global Income Fund
AIM High Yield Fund II AIM Strategic Income Fund
AIM Income Fund
AIM Intermediate Government Fund THEME FUNDS
AIM Limited Maturity Treasury Fund AIM Global Consumer Products and Services Fund
AIM Global Financial Services Fund
TAX-FREE INCOME FUNDS AIM Global Health Care Fund
AIM High Income Municipal Fund AIM Global Infrastructure Fund
AIM Municipal Bond Fund AIM Global Resources Fund
AIM Tax-Exempt Bond Fund of Connecticut AIM Global Telecommunications and Technology Fund(5)
AIM Tax-Free Intermediate Fund AIM Global Trends Fund(6)
</TABLE>
(1)AIM Aggressive Growth Fund reopened to new investors on November 16, 1998.
(2)AIM Small Cap Growth Fund closed to new investors on November 8, 1999. (3)AIM
Small Cap Opportunities Fund closed to new investors on November 4, 1999. (4)On
September 1, 1999, AIM Europe Growth Fund was renamed AIM Euroland Growth Fund.
Previously the fund invested in all size companies in most areas of Europe. The
fund now seeks to invest at least 65% of its assets in large-cap companies
within countries using the euro as their currency (EMU-member countries). (5)On
June 1, 1999, AIM Global Telecommunications Fund was renamed AIM Global
Telecommunications and Technology Fund. (6)Effective August 27, 1999, AIM Global
Trends Fund was restructured to operate as a traditional mutual fund. Before
that date, the fund operated as a fund of funds. For more complete information
about any AIM fund(s), including sales charges and expenses, ask your financial
advisor or securities dealer for a free prospectus(es). Please read the
prospectus(es) carefully before you invest or send money. If used as sales
material after January 20, 2000, this report must be accompanied by a current
Quarterly Review of Performance for AIM Funds.
[AIM LOGO APPEARS HERE]
Invest with DISCIPLINE
--Registered Trademark--
A I M Distributors, Inc.
GGI-AR-1
