<PAGE> 1
ANNUAL REPORT / OCTOBER 31 1999
AIM GLOBAL CONSUMER PRODUCTS
AND SERVICES FUND
[COVER IMAGE]
[AIM LOGO APPEARS HERE]
<PAGE> 2
[ COVER IMAGE ]
-------------------------------------
SHOPPERS
BY DIANA ONG (BORN 1940, CHINESE-AMERICAN)
ONG IS A PROLIFIC AND EXPERIMENTAL ARTIST WHO CONSTANTLY COMBINES
DIFFERENT MEDIUMS TO PUSH THE BOUNDARIES OF ART. SHE IS A TRUE
MULTIMEDIA ARTIST, PROFICIENT IN WATERCOLOR, ACRYLIC, ETCHING,
WOODCUT, SILKSCREEN, COMPUTER ART AND CERAMIC ART. THE ENERGY
AND DIVERSITY OF HER "SHOPPERS," CREATED WITH COMPUTER GRAPHICS,
FITTINGLY CHARACTERIZE MODERN GLOBAL CONSUMERS.
-------------------------------------
AIM Global Consumer Products and Services Fund is for shareholders who seek
long-term growth of capital through investments in companies around the world
that manufacture, market, retail or distribute consumer products and services.
ABOUT FUND PERFORMANCE AND PORTFOLIO DATA THROUGHOUT THIS REPORT:
o AIM Global Consumer Products and Services Fund's performance figures are
historical and reflect 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 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 Class A shares due to differences in sales charge structure and
expenses. Sales charges do not apply to Advisor Class shares.
o The fund's average annual total returns, including applicable sales charges,
for periods ended 9/30/99 (the most recent calendar quarter-end) are as
follows. For Class A shares, one year, 30.61%; inception (12/30/94), 25.24%.
For Class B shares, one year, 31.42%; inception (12/30/94), 25.73%. For
Class C shares, inception (3/1/99), 13.49%. For Advisor Class shares, one
year, 37.82%; inception (6/30/95), 29.05%.
o Because Class C shares have been offered less than one year (since 3/1/99),
all total return figures for Class C shares 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 $0.559
per share for Class A shares, Class B shares and Advisor Class shares.
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 Investing in a single-sector mutual fund may involve greater risk and
potential reward than investing in a more diversified fund.
o The fund's investment return and principal value will fluctuate, so an
investor's shares, when redeemed, may be worth more or less than their
original cost.
ABOUT INDEXES AND OTHER PERFORMANCE BENCHMARKS CITED IN THIS REPORT:
o The Dow Jones Industrial Average (the Dow) is a price-weighted average of 30
actively traded primarily industrial stocks.
o The MSCI All Country World Index tracks the performance of approximately 50
countries covered by Morgan Stanley Capital International that are
considered either developed or emerging markets.
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 The unmanaged Standard & Poor's Composite Index of 500 stocks (S&P 500) is
widely regarded by investors to be 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 CONSUMER PRODUCTS AND SERVICES 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 CONSUMER PRODUCTS AND SERVICES FUND
<PAGE> 4
ANNUAL REPORT / MANAGERS' OVERVIEW
FUND BEATS INDEX,
BOOSTED BY TECHNOLOGY HOLDINGS
HOW DID THE FUND PERFORM?
AIM Global Consumer Products and Services Fund posted impressive returns for the
fiscal year ended October 31, 1999. Total returns for the fund's Class A and
Class B shares were 42.20% and 41.52%, respectively. From inception on March 1,
1999 to the end of the fiscal year Class C shares gained 21.42%. These results
were computed at net asset value, that is, without the effect of sales charges.
The fund's Advisor Class shares returned 42.93% during the fiscal year. Fund
performance handily outpaced the MCSI All Country World Index, which posted a
26.41% gain for the same period.
Net assets totaled $185 million on October 31, 1999.
WHAT WERE MARKET CONDITIONS LIKE DURING THE FISCAL YEAR?
Investor concern over interest rates caused U.S. financial markets to be very
volatile in 1999. In June and August, the Federal Reserve Board (the Fed) raised
interest rates in two quarter-point moves. Investors were unsure what Fed
policymakers would do at their October meeting, and the uncertainty roiled the
markets. The Fed chose to leave rates unchanged but adopted a "tightening bias,"
indicating that it may be inclined to raise rates in the future.
During the summer, the equity market experienced a temporary broadening into
value, cyclical and smaller-cap stocks, but returned to its narrow, large-cap
growth focus in the fall. Most market trends of the last few years continued
during the third quarter. The largest stocks in the S&P 500 dominated that
index's return while the remainder produced lackluster results. In fact, despite
advances by the main market indexes, most stocks underperformed during this
time.
Across the Atlantic, merger activity continued to dominate. Toward the end
of the reporting period, the European merger market topped that of 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.
WHAT CONTRIBUTED TO THE FUND'S STRONG GAINS?
The fund's sterling performance can be credited to our exposure to the
technology sector, the only S&P 500 industry group to post a positive return
during the third quarter of 1999, when most sectors of the equity market
retreated. During the fiscal year, the fund had an overweight position in
technology and communications services companies. By prospectus, the fund is
able to invest 35% of its assets in companies outside the consumer products and
services sector. In the past we have used this out-of-sector allocation for risk
diversification. However, given the technology sector's strong growth during the
past few years, we have redirected this portion to fast-growing market leaders,
such as Microsoft, Nextel and Comverse Technology. As of October 31, technology
stocks accounted for approximately 22% of the fund's total net assets.
MICROSOFT IS ONE OF THE FUND'S LARGEST HOLDINGS. HOW WILL THE RULING IN THE
DEPARTMENT OF JUSTICE CASE AFFECT YOUR INVESTMENT?
After the close of the reporting period, a federal judge ruled that
Microsoft is a monopoly. As of this writing, neither a settlement nor an appeal
has been announced, and it is unlikely that a final decision will be made until
2001. While we cannot comment on our specific plans to buy or sell stocks, we
can say that as of this time, Microsoft remains a large holding in the fund. We
believe that the company's growth prospects remain
FUND VS. MSCI ALL COUNTRY
WORLD INDEX
As of 10/31/99
One-year returns, excluding sales charges
FUND CLASS A SHARES ....................................42.20%
FUND CLASS B SHARES ....................................41.52%
MSCI ALL COUNTRY WORLD INDEX ...........................26.41%
See important fund and index disclosures inside front cover.
AIM GLOBAL CONSUMER PRODUCTS AND SERVICES FUND
2
<PAGE> 5
ANNUAL REPORT / MANAGERS' OVERVIEW
strong, especially with the upcoming introduction of two new software products:
Office 2000 and Windows 2000. In the short term, the stock may be volatile, but
this is a core growth company that should continue to be a part of our
portfolio.
DID YOU MAKE ANY OTHER CHANGES TO THE FUND'S PORTFOLIO DURING THE FISCAL YEAR?
As earnings growth narrowed in 1999, we decided to cull the fund's total
number of holdings to 97, from 125 six months ago. Poor market conditions in the
retail arena also led us to reduce several long-term holdings that were
beginning to suffer from deteriorating quality. In keeping with AIM's
earnings-momentum investment strategy, we sold stocks with negative earnings
revisions. These sales generated realized capital gains in some cases, but
allowed us to concentrate on the highest-growth stocks. We believe that the
overall effect of focusing on the best-performing stocks has been positive and
should benefit fund performance over the long term.
WHERE DO YOU SEE OPPORTUNITIES FOR GROWTH?
International markets have rebounded dramatically since last year's
financial crisis. To take advantage of these recent trends, the fund may begin
to seek more investments outside the United States in the near future. As of
October 31, international investments represented 39% of the fund's total net
assets. We believe that on a risk/return basis there are excellent investment
opportunities overseas, so this figure may increase slightly in the future.
Several industries within the technology arena have also shown marked
improvement in 1999. Toward the end of the fiscal year, the semiconductor
industry was the strongest-performing area within the technology sector in terms
of stock price. Chipmakers recovered after several years in the doldrums and are
expected to post a 15% increase in production this year. Consequently, the fund
may adjust its technology holdings to include more profitable technology
companies, especially in the semiconductor industry.
WHAT IS YOUR OUTLOOK FOR THE NEAR FUTURE?
Shortly after the end of the fiscal year, Fed policymakers increased
short-term interest rates by a quarter of a percentage point, but shifted to a
neutral bias, indicating that they may or may not raise rates again for the rest
of the year. We believe that this move may improve investor confidence in the
near future since it means that the Fed is serious about heading off
inflationary pressures.
Moreover, the long-term outlook for global markets remains positive. The
U.S. economy continues to be strong, inflation is low and the country is
enjoying a budget surplus. Consumers are still confident about the future and
have money to spend from strong income gains over the past year. Although market
sectors will always go in and out of favor, we believe that high-growth consumer
products and services companies will continue to fare well in the current strong
business environment here and abroad.
PORTFOLIO COMPOSITION
As of 10/31/99, based on total net assets
<TABLE>
<CAPTION>
====================================================================================================================================
TOP 10 HOLDINGS TOP 10 INDUSTRIES TOP 10 COUNTRIES
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1. Nextel Communications, Inc. 1. Communications Equipment 9.22% 1. United States 53.56%
-Class A 2.37% 2. Banks (Major Regional) 5.53 2. United Kingdom 7.34
2. Nokia Oyj-ADR (Finland) 2.26 3. Telecommunications 3. France 6.26
3. Imasco Ltd. (Canada) 2.14 (Cellular/Wireless) 4.52 4. Canada 5.28
4. Nortel Networks Corp. (Canada) 2.01 4. Computers (Software & Services) 4.14 5. Japan 2.87
5. Microsoft Corp. 1.83 5. Health Care (Diversified) 3.74 6. Ireland 2.69
6. Tandy Corp. 1.65 6. Manufacturing (Diversified) 3.48 7. Italy 2.35
7. Comverse Technology, Inc. 1.62 7. Broadcasting 8. Finland 2.26
8. Nippon Telegraph & Telephone Corp. (Television, Radio & Cable) 3.16 9. Netherlands 2.03
(Japan) 1.58 8. Financial (Diversified) 3.06 10. South Korea 1.52
9. Carrefour Supermarche S.A.(France) 1.53 9. Retail (Computers & Electronics) 2.77
10. Pohang Iron & Steel Co. Ltd.-ADR 10. Tobacco 2.61
(South Korea) 1.52
The fund's portfolio is subject to change, and there is no assurance that the
fund will continue to hold any particular security.
====================================================================================================================================
</TABLE>
See important fund and index disclosures inside front cover.
AIM GLOBAL CONSUMER PRODUCTS AND SERVICES FUND
3
<PAGE> 6
ANNUAL REPORT / PERFORMANCE HISTORY
YOUR FUND'S LONG-TERM PERFORMANCE
RESULTS OF A $10,000 INVESTMENT
AIM GLOBAL CONSUMER PRODUCTS AND SERVICES FUND VS. BENCHMARK INDEXES
12/30/94-10/31/99
in thousands
================================================================================
AIM Global AIM Global
Consumer Consumer
Products Products
and and
Services Services
Funds Funds MSCI All
Class B Class A Country MSCI World
Shares Shares World Index Index
12/94 10000 10000 10000 10000
4/95 10175 9708 10672 10830
10/95 12712 12158 11150 11340
4/96 16012 15352 12651 12856
10/96 18828 18094 12889 13188
4/97 16630 16020 13954 14185
10/97 20702 20004 14918 15400
4/98 25301 24502 17613 18304
10/98 22391 21736 16822 17750
4/99 28180 27426 20272 21224
10/99 31488 30910 21264 22172
Source: Lipper, Inc.
================================================================================
Past performance cannot guarantee comparable future results.
MARKET VOLATILITY CAN SIGNIFICANTLY IMPACT SHORT-TERM PERFORMANCE. RESULTS
OF AN INVESTMENT MADE TODAY MAY DIFFER SUBSTANTIALLY FROM THE HISTORICAL
PERFORMANCE SHOWN.
ABOUT THIS CHART
The chart compares your fund's Class A and B shares to benchmark indexes. Use
of the indexes is intended to give you a general idea of your fund's relative
performance. It is important to understand differences between your fund and
these indexes. An index measures performance of a hypothetical portfolio. A
market index such as the MSCI All Country World 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 your
investment's return.
Since the last reporting period, the fund has elected to use the MSCI All
Country World Index as its benchmark. This index more closely reflects the
performance of securities in which the fund can invest because it includes some
emerging markets.
The fund 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.
AVERAGE ANNUAL TOTAL RETURNS
As of 10/31/99, including sales charges
================================================================================
CLASS A SHARES
- --------------------------------------------------------------------------------
Since Inception (12/30/94) 26.28%
1 Year 35.42
CLASS B SHARES
- --------------------------------------------------------------------------------
Since Inception (12/30/94) 26.77%
1 Year 36.52
CLASS C SHARES
- --------------------------------------------------------------------------------
Since Inception (3/1/99) 20.42%*
* Cumulative total return that has not yet been annualized.
ADVISOR CLASS**
- --------------------------------------------------------------------------------
Since Inception (6/30/95) 30.17%
1 Year 42.93
** Advisor Class shares were closed to new investors on March 1, 1999. Sales
charges do not apply.
================================================================================
Fund performance shown in the chart includes expenses and management fees. Class
A share performance reflects deduction of the maximum sales charge; Class B and
Class C share performance reflects deduction of the applicable contingent
deferred sales charge. For fund performance calculations and descriptions of the
indexes cited on this page, please refer to the inside front cover.
AIM GLOBAL CONSUMER PRODUCTS AND SERVICES FUND
4
<PAGE> 7
SCHEDULE OF INVESTMENTS
October 31, 1999
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
DOMESTIC COMMON STOCKS-53.56%
BEVERAGES (ALCOHOLIC)-1.34%
Adolph Coors Co. 12,800 $ 710,400
- --------------------------------------------------------------
Anheuser-Busch Companies, Inc. 24,600 1,766,587
- --------------------------------------------------------------
2,476,987
- --------------------------------------------------------------
BIOTECHNOLOGY-0.94%
Amgen, Inc.(a) 21,800 1,738,550
- --------------------------------------------------------------
BROADCASTING (TELEVISION, RADIO &
CABLE)-2.31%
AT&T Corp.-Liberty Media
Group-Class A(a) 45,700 1,813,719
- --------------------------------------------------------------
Comcast Corp.-Class A 40,400 1,701,850
- --------------------------------------------------------------
TiVo Inc.(a) 17,600 754,600
- --------------------------------------------------------------
4,270,169
- --------------------------------------------------------------
COMMUNICATIONS EQUIPMENT-4.44%
ANTEC Corp.(a) 31,900 1,547,150
- --------------------------------------------------------------
Comverse Technology, Inc.(a) 26,400 2,996,400
- --------------------------------------------------------------
Lucent Technologies Inc. 30,360 1,950,630
- --------------------------------------------------------------
Spanish Broadcasting System, Inc.(a) 40,600 1,080,975
- --------------------------------------------------------------
Sycamore Networks, Inc.(a) 3,000 645,000
- --------------------------------------------------------------
8,220,155
- --------------------------------------------------------------
COMPUTERS (NETWORKING)-0.81%
Cisco Systems, Inc.(a) 20,243 1,497,982
- --------------------------------------------------------------
COMPUTERS (PERIPHERALS)-0.92%
Lexmark International Group,
Inc.-Class A(a) 21,900 1,709,569
- --------------------------------------------------------------
COMPUTERS (SOFTWARE &
SERVICES)-4.14%
Adobe Systems, Inc. 36,000 2,517,750
- --------------------------------------------------------------
Microsoft Corp.(a) 36,500 3,378,531
- --------------------------------------------------------------
Oracle Corp.(a) 37,000 1,759,812
- --------------------------------------------------------------
7,656,093
- --------------------------------------------------------------
CONSUMER FINANCE-0.78%
Providian Financial Corp. 13,250 1,444,250
- --------------------------------------------------------------
ELECTRONICS (SEMICONDUCTORS)-0.92%
Altera Corp.(a) 35,000 1,701,875
- --------------------------------------------------------------
ENTERTAINMENT-0.88%
Time Warner, Inc. 23,300 1,623,719
- --------------------------------------------------------------
EQUIPMENT (SEMICONDUCTOR)-2.59%
Applied Materials, Inc.(a) 14,000 1,257,375
- --------------------------------------------------------------
KLA-Tencor Corp.(a) 17,000 1,346,187
- --------------------------------------------------------------
Lam Research Corp.(a) 26,000 2,195,375
- --------------------------------------------------------------
4,798,937
- --------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
FINANCIAL (DIVERSIFIED)-1.94%
Citigroup, Inc. 38,550 $ 2,086,519
- --------------------------------------------------------------
Fannie Mae 21,300 1,506,975
- --------------------------------------------------------------
3,593,494
- --------------------------------------------------------------
FOODS-2.10%
Dean Foods Co. 28,000 1,295,000
- --------------------------------------------------------------
Quaker Oats Co. (The) 37,000 2,590,000
- --------------------------------------------------------------
3,885,000
- --------------------------------------------------------------
GAMING, LOTTERY & PARIMUTUEL
COMPANIES-1.12%
Aztar Corp.(a) 82,000 794,375
- --------------------------------------------------------------
Station Casinos, Inc.(a) 53,000 1,281,937
- --------------------------------------------------------------
2,076,312
- --------------------------------------------------------------
HEALTH CARE (DIVERSIFIED)-3.74%
Allergan, Inc. 17,000 1,825,375
- --------------------------------------------------------------
Bristol-Myers Squibb Co. 29,000 2,227,562
- --------------------------------------------------------------
Johnson & Johnson 9,000 942,750
- --------------------------------------------------------------
Warner-Lambert Co. 24,000 1,915,500
- --------------------------------------------------------------
6,911,187
- --------------------------------------------------------------
HEALTH CARE (MEDICAL PRODUCTS &
SUPPLIES)-0.43%
VISX, Inc.(a) 12,600 788,287
- --------------------------------------------------------------
INSURANCE (MULTI-LINE)-1.00%
American International Group, Inc. 17,976 1,850,405
- --------------------------------------------------------------
INVESTMENT BANKING/BROKERAGE-1.20%
Morgan Stanley, Dean Witter,
Discover & Co. 20,100 2,217,281
- --------------------------------------------------------------
MACHINERY (DIVERSIFIED)-1.13%
Case Corp. 39,300 2,082,900
- --------------------------------------------------------------
MANUFACTURING (DIVERSIFIED)-1.35%
Tyco International Ltd. 62,400 2,492,100
- --------------------------------------------------------------
MANUFACTURING (SPECIALIZED)-0.66%
Briggs & Stratton Corp. 21,000 1,227,188
- --------------------------------------------------------------
OIL & GAS (DRILLING &
EQUIPMENT)-1.13%
Marine Drilling Companies, Inc.(a) 129,600 2,097,900
- --------------------------------------------------------------
RESTAURANTS-0.30%
Tricon Global Restaurants, Inc.(a) 13,600 546,550
- --------------------------------------------------------------
RETAIL (BUILDING SUPPLIES)-2.07%
Home Depot, Inc. (The) 30,200 2,280,100
- --------------------------------------------------------------
Lowe's Companies, Inc. 28,008 1,540,440
- --------------------------------------------------------------
3,820,540
- --------------------------------------------------------------
</TABLE>
5
<PAGE> 8
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
RETAIL (COMPUTERS & ELECTRONICS)-2.77%
Best Buy Co., Inc.(a) 18,000 $ 1,000,125
- --------------------------------------------------------------
Circuit City Stores-Circuit City
Group 24,800 1,058,650
- --------------------------------------------------------------
Tandy Corp. 48,600 3,058,763
- --------------------------------------------------------------
5,117,538
- --------------------------------------------------------------
RETAIL (DISCOUNTERS)-1.16%
Burlington Coat Factory Warehouse
Corp. 75,000 1,284,375
- --------------------------------------------------------------
Family Dollar Stores, Inc. 41,300 851,813
- --------------------------------------------------------------
2,136,188
- --------------------------------------------------------------
RETAIL (FOOD CHAINS)-0.57%
Safeway, Inc.(a) 30,000 1,059,375
- --------------------------------------------------------------
RETAIL (GENERAL MERCHANDISE)-1.47%
Wal-Mart Stores, Inc. 48,000 2,721,000
- --------------------------------------------------------------
RETAIL (HOME SHOPPING)-1.04%
Chemdex Corp.(a) 50,600 1,929,125
- --------------------------------------------------------------
RETAIL (SPECIALTY)-1.36%
Haverty Furniture Cos., Inc. 60,000 825,000
- --------------------------------------------------------------
Linens 'n Things, Inc.(a) 21,200 842,700
- --------------------------------------------------------------
Sonic Automotive, Inc.(a) 81,400 849,613
- --------------------------------------------------------------
2,517,313
- --------------------------------------------------------------
RETAIL (SPECIALTY-APPAREL)-2.50%
American Eagle Outfitters, Inc.(a) 21,200 907,625
- --------------------------------------------------------------
AnnTaylor Stores Corp.(a) 16,900 719,306
- --------------------------------------------------------------
Chico's Fas, Inc.(a) 44,000 1,380,500
- --------------------------------------------------------------
TJX Companies, Inc. (The) 59,600 1,616,650
- --------------------------------------------------------------
4,624,081
- --------------------------------------------------------------
SERVICES
(ADVERTISING/MARKETING)-1.13%
Outdoor Systems, Inc.(a) 49,400 2,093,325
- --------------------------------------------------------------
TELECOMMUNICATIONS (CELLULAR/
WIRELESS)-2.37%
Nextel Communications, Inc.-Class
A(a) 50,800 4,378,325
- --------------------------------------------------------------
TELECOMMUNICATIONS (LONG
DISTANCE)-0.41%
Global TeleSystems Group, Inc.(a) 32,000 766,000
- --------------------------------------------------------------
TELEPHONE-0.54%
NTL, Inc.(a) 7,250 546,469
- --------------------------------------------------------------
Qwest Communications International,
Inc.(a) 12,600 453,600
- --------------------------------------------------------------
1,000,069
- --------------------------------------------------------------
Total Domestic Common Stocks
(Cost $72,802,212) 99,069,769
- --------------------------------------------------------------
FOREIGN STOCKS & OTHER EQUITY
INTERESTS-37.70%
BELGIUM-1.09%
Fortis (B)
(Financial-Diversified)(a) 60,000 2,026,248
- --------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
CANADA-5.28%
Cominco Ltd. (Metals Mining) 118,000 2,083,814
- --------------------------------------------------------------
Imasco Ltd.
(Manufacturing-Diversified) 147,300 $ 3,951,878
- --------------------------------------------------------------
Nortel Networks Corp.
(Communications Equipment) 60,600 3,727,046
- --------------------------------------------------------------
9,762,738
- --------------------------------------------------------------
FINLAND-2.26%
Nokia Oyj-ADR (Communications
Equipment) 36,200 4,183,363
- --------------------------------------------------------------
FRANCE-6.26%
Banque Nation de Paris (Financial
Diversified), Wts., expiring
07/15/02(a) 5,460 32,282
- --------------------------------------------------------------
Banque Nationale de Paris
(Banks-Major Regional) 23,080 2,027,490
- --------------------------------------------------------------
Carrefour Supermarche S.A.
(Retail-Food Chains) 15,300 2,832,960
- --------------------------------------------------------------
Lafarge S.A. (Engineering &
Construction) 18,200 1,751,979
- --------------------------------------------------------------
Renault S.A. (Automobiles) 33,300 1,723,637
- --------------------------------------------------------------
SEITA (Tobacco) 29,400 1,639,304
- --------------------------------------------------------------
Societe Television Francaise 1
(Broadcasting-Television, Radio &
Cable) 5,000 1,567,555
- --------------------------------------------------------------
11,575,207
- --------------------------------------------------------------
GERMANY-1.10%
Mannesmann A.G.
(Machinery-Diversified) 13,000 2,044,659
- --------------------------------------------------------------
IRELAND-2.69%
Bank of Ireland (Banks-Major
Regional) 191,238 1,492,847
- --------------------------------------------------------------
CRH PLC (Construction-Cement &
Aggregates) 94,200 1,778,901
- --------------------------------------------------------------
Jefferson Smurfit Group PLC-ADR
(Containers & Packaging-Paper) 66,000 1,699,500
- --------------------------------------------------------------
4,971,248
- --------------------------------------------------------------
ITALY-2.35%
Banca Commerciale Italiana
(Banks-Major Regional) 145,467 867,729
- --------------------------------------------------------------
Luxottica Group S.p.A.-ADR
(Consumer-Jewelry, Novelties &
Gifts) 100,900 1,936,019
- --------------------------------------------------------------
Telecom Italia Mobile S.p.A.
(Telecommunications-
Cellular/Wireless) 247,300 1,545,421
- --------------------------------------------------------------
4,349,169
- --------------------------------------------------------------
JAPAN-2.87%
Nippon Telegraph & Telephone Corp.
(Telecommunications-Long Distance) 190 2,915,927
- --------------------------------------------------------------
Toyota Motor Corp.
(Automobile-Manufacturers) 69,000 2,389,238
- --------------------------------------------------------------
5,305,165
- --------------------------------------------------------------
NETHERLANDS-2.03%
ABN AMRO Holding N.V. (Banks-Major
Regional) 67,422 1,630,711
- --------------------------------------------------------------
Equant N.V.
(Computers-Networking)(a) 5,900 574,156
- --------------------------------------------------------------
</TABLE>
6
<PAGE> 9
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
NETHERLANDS-(CONTINUED)
Heineken N.V. (Beverages-Alcoholic) 30,325 $ 1,546,997
- --------------------------------------------------------------
3,751,864
- --------------------------------------------------------------
NORWAY-0.95%
Den Norske Bank A.S.A. (Banks-Major
Regional) 451,600 1,748,983
- --------------------------------------------------------------
SINGAPORE-0.95%
NatSteel Ltd. (Iron & Steel) 1,056,000 1,765,610
- --------------------------------------------------------------
SOUTH KOREA-1.52%
Pohang Iron & Steel Co. Ltd.-ADR
(Iron & Steel) 84,000 2,803,500
- --------------------------------------------------------------
SWITZERLAND-1.01%
Compagnie Financiere Richemont A.G.
(Tobacco) 980 1,871,686
- --------------------------------------------------------------
UNITED KINGDOM-7.34%
BG PLC (Oil & Gas-Exploration &
Production) 325,800 1,809,150
- --------------------------------------------------------------
Centrica PLC (Oil & Gas-Exploration
& Production) 964,400 2,802,495
- --------------------------------------------------------------
COLT Telecom Group PLC
(Communications Equipment)(a) 31,150 931,577
- --------------------------------------------------------------
Energis PLC (Telephone)(a) 56,500 1,803,027
- --------------------------------------------------------------
Imperial Tobacco Group PLC (Tobacco) 125,000 1,325,556
- --------------------------------------------------------------
Royal Bank of Scotland Group PLC
(Banks-Major Regional) 106,620 2,457,621
- --------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
UNITED KINGDOM-(CONTINUED)
Vodafone AirTouch PLC-ADR
(Telecommunications-
Cellular/Wireless) 51,000 $ 2,444,813
- --------------------------------------------------------------
13,574,239
- --------------------------------------------------------------
Total Foreign Stocks & Other
Equity Interests (Cost
$56,003,482) 69,733,679
- --------------------------------------------------------------
MONEY MARKET FUNDS-7.95%
STIC Liquid Assets Portfolio(b) 7,355,453 7,355,453
- --------------------------------------------------------------
STIC Prime Portfolio(b) 7,355,453 7,355,453
- --------------------------------------------------------------
Total Money Market Funds (Cost
$14,710,906) 14,710,906
- --------------------------------------------------------------
TOTAL INVESTMENTS-99.21% 183,514,354
- --------------------------------------------------------------
OTHER ASSETS LESS LIABILITIES-0.79% 1,459,553
- --------------------------------------------------------------
NET ASSETS-100.00% $184,973,907
==============================================================
</TABLE>
Investment Abbreviations:
ADR - American Depositary Receipt
Wts. - Warrants
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.
7
<PAGE> 10
STATEMENT OF ASSETS AND LIABILITIES
October 31, 1999
<TABLE>
<S> <C>
ASSETS:
Investments, at value (cost $143,516,600) $183,514,354
- ------------------------------------------------------------
Foreign currencies, at value (cost $2,441,639) 2,424,475
- ------------------------------------------------------------
Receivables for:
Investments sold 4,528,952
- ------------------------------------------------------------
Fund shares sold 150,825
- ------------------------------------------------------------
Dividends and interest 179,289
- ------------------------------------------------------------
Other assets 28,752
- ------------------------------------------------------------
Total assets 190,826,647
- ------------------------------------------------------------
LIABILITIES:
Payables for:
Investments purchased 5,205,192
- ------------------------------------------------------------
Fund shares reacquired 272,640
- ------------------------------------------------------------
Accrued advisory fees 166,482
- ------------------------------------------------------------
Accrued distribution fees 130,099
- ------------------------------------------------------------
Accrued administrative services fees 4,247
- ------------------------------------------------------------
Accrued transfer agent fees 21,000
- ------------------------------------------------------------
Accrued trustees' fees 967
- ------------------------------------------------------------
Accrued operating expenses 52,113
- ------------------------------------------------------------
Total liabilities 5,852,740
- ------------------------------------------------------------
Net assets applicable to shares outstanding $184,973,907
============================================================
NET ASSETS:
Class A $ 73,695,007
============================================================
Class B $109,807,990
============================================================
Class C $ 232,240
============================================================
Advisor Class $ 1,238,670
============================================================
SHARES OUTSTANDING, $0.01 PAR VALUE PER SHARE:
Class A 2,393,840
============================================================
Class B 3,661,997
============================================================
Class C 7,745
============================================================
Advisor Class 39,217
============================================================
Class A:
Net asset value and redemption price per
share $ 30.79
- ------------------------------------------------------------
Offering price per share:
(Net asset value of $30.79 divided by
95.25%) $ 32.33
============================================================
Class B:
Net asset value and offering price per share $ 29.99
============================================================
Class C:
Net asset value and offering price per share $ 29.99
============================================================
Advisor Class:
Net asset value, redemption and offering
price per share $ 31.59
============================================================
</TABLE>
STATEMENT OF OPERATIONS
For the year ended October 31, 1999
<TABLE>
<S> <C>
INVESTMENT INCOME:
Dividends (net of $117,570 foreign withholding
tax) $ 1,509,215
- ------------------------------------------------------------
Interest 610,144
- ------------------------------------------------------------
Securities lending 104,422
- ------------------------------------------------------------
Total investment income 2,223,781
- ------------------------------------------------------------
EXPENSES:
Advisory and administrative fees 1,800,938
- ------------------------------------------------------------
Accounting services fees 49,731
- ------------------------------------------------------------
Custodian fees 88,399
- ------------------------------------------------------------
Distribution fees -- Class A 344,198
- ------------------------------------------------------------
Distribution fees -- Class B 1,032,430
- ------------------------------------------------------------
Distribution fees -- Class C 827
- ------------------------------------------------------------
Trustees' fees 8,975
- ------------------------------------------------------------
Transfer agent fees -- Class A 144,457
- ------------------------------------------------------------
Transfer agent fees -- Class B 216,650
- ------------------------------------------------------------
Transfer agent fees -- Class C 173
- ------------------------------------------------------------
Transfer agent fees -- Advisor Class 25,806
- ------------------------------------------------------------
Other 277,018
- ------------------------------------------------------------
Total expenses 3,989,602
- ------------------------------------------------------------
Less: Expenses waived (16,422)
- ------------------------------------------------------------
Expenses paid indirectly (1,368)
- ------------------------------------------------------------
Net expenses 3,971,812
- ------------------------------------------------------------
Net investment income (loss) (1,748,031)
- ------------------------------------------------------------
REALIZED AND UNREALIZED GAIN FROM INVESTMENT
SECURITIES AND FOREIGN CURRENCIES:
Net realized gain from:
Investment securities 44,400,506
- ------------------------------------------------------------
Foreign currencies 74,456
- ------------------------------------------------------------
44,474,962
- ------------------------------------------------------------
Change in net unrealized appreciation of:
Investment securities 20,689,784
- ------------------------------------------------------------
Foreign currencies 20,185
- ------------------------------------------------------------
20,709,969
- ------------------------------------------------------------
Net gain from investment securities and
foreign currencies 65,184,931
- ------------------------------------------------------------
Net increase in net assets resulting from
operations $63,436,900
============================================================
</TABLE>
See Notes to Financial Statements.
8
<PAGE> 11
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) $ (1,748,031) $ (1,905,277)
- ------------------------------------------------------------------------------------------
Net realized gain from investment securities and foreign
currencies 44,474,962 4,655,445
- ------------------------------------------------------------------------------------------
Change in net unrealized appreciation of investment
securities and foreign currencies 20,709,969 10,772,689
- ------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 63,436,900 13,522,857
- ------------------------------------------------------------------------------------------
Distributions to shareholders from net realized gains:
Class A (1,486,208) (5,574,558)
- ------------------------------------------------------------------------------------------
Class B (2,314,110) (8,128,120)
- ------------------------------------------------------------------------------------------
Advisor Class (341,039) (962,828)
- ------------------------------------------------------------------------------------------
Share transactions-net:
Class A (8,462,976) (2,635,230)
- ------------------------------------------------------------------------------------------
Class B (14,746,418) (1,579,168)
- ------------------------------------------------------------------------------------------
Class C 209,527 --
- ------------------------------------------------------------------------------------------
Advisor Class (17,338,191) 8,711,156
- ------------------------------------------------------------------------------------------
Net increase in net assets 18,957,485 3,354,109
- ------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 166,016,422 162,662,313
- ------------------------------------------------------------------------------------------
End of period $184,973,907 $166,016,422
==========================================================================================
NET ASSETS CONSIST OF:
Shares of beneficial interest $104,692,946 $144,231,004
- ------------------------------------------------------------------------------------------
Undistributed net realized gain from investment securities
and foreign currencies 40,244,803 2,459,227
- ------------------------------------------------------------------------------------------
Unrealized appreciation of investment securities and
foreign currencies 40,036,158 19,326,191
- ------------------------------------------------------------------------------------------
$184,973,907 $166,016,422
==========================================================================================
</TABLE>
See Notes to Financial Statements.
9
<PAGE> 12
NOTES TO FINANCIAL STATEMENTS
October 31, 1999
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES
AIM Global Consumer Products and Services 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 Consumer Products
and Services 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
$1,748,031, undistributed net realized gains was decreased by $2,548,031 and
paid-in capital increased by $800,000 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 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.
10
<PAGE> 13
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 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 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.
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 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 consumer products and services industry subjects the
Portfolio to greater risk than a fund that is more diversified.
H. 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
$16,422.
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 such fund based on its relative average daily net
assets. For the year ended October 31, 1999, AIM was paid $49,731 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 $371,278 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 $344,198, $1,032,430 and $827, respectively, as
compensation under the Plans.
AIM Distributors received commissions of $27,585 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
11
<PAGE> 14
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 $94 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 $1,368 under expense offset arrangements. The effect of the
above arrangements resulted in a reduction of the Fund's total expenses of
$1,368 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 $10,734,244 were on
loan to brokers. The loans were secured by cash collateral of $10,948,928
received by the Portfolio. For the year ended October 31, 1999, the Portfolio
received fees of $104,422 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
$272,531,597 and $321,676,079, 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 $41,092,549
- ---------------------------------------------------------
Aggregate unrealized appreciation
(depreciation) of investment securities (1,435,765)
- ---------------------------------------------------------
Net unrealized appreciation of investment
securities $39,656,784
=========================================================
</TABLE>
Cost of investments for tax purposes is $143,857,570.
12
<PAGE> 15
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 487,583 $ 12,807,548 1,525,543 $ 35,645,676
- --------------------------------------------------------------------------------------------------------------------
Class B 423,749 10,940,298 1,214,959 28,040,109
- --------------------------------------------------------------------------------------------------------------------
Class C* 9,183 251,095 -- --
- --------------------------------------------------------------------------------------------------------------------
Advisor Class 21,722 582,165 675,379 15,761,998
- --------------------------------------------------------------------------------------------------------------------
Issued as reinvestment of dividends:
Class A 59,498 1,416,648 232,572 5,000,306
- --------------------------------------------------------------------------------------------------------------------
Class B 91,284 2,126,010 327,547 6,924,836
- --------------------------------------------------------------------------------------------------------------------
Advisor Class 14,024 340,931 44,088 962,424
- --------------------------------------------------------------------------------------------------------------------
Reacquired:
Class A (855,317) (22,687,172) (1,879,330) (43,281,212)
- --------------------------------------------------------------------------------------------------------------------
Class B (1,075,236) (27,812,726) (1,618,880) (36,544,113)
- --------------------------------------------------------------------------------------------------------------------
Class C* (1,437) (41,568) -- --
- --------------------------------------------------------------------------------------------------------------------
Advisor Class (638,988) (18,261,287) (345,732) (8,013,266)
- --------------------------------------------------------------------------------------------------------------------
(1,463,935) $ (40,338,058) 176,146 $ 4,496,758
====================================================================================================================
</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, DECEMBER 30, 1994
------------------------------------------ TO
1999(a) 1998(a) 1997(a) 1996(a) OCTOBER 31, 1995(a)
------- ------- ------- ------- --------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 22.16 $ 22.19 $ 20.98 $ 14.59 $ 11.43
- ----------------------------------------------------------- ------- ------- ------- ------- -------
Income from investment operations:
Net investment income (loss) (0.19) (0.19) (0.15) (0.22) 0.02(b)
- ----------------------------------------------------------- ------- ------- ------- ------- -------
Net realized and unrealized gain on investments 9.38 2.05 2.27 7.13 3.14
- ----------------------------------------------------------- ------- ------- ------- ------- -------
Net increase from investment operations 9.19 1.86 2.12 6.91 3.16
- ----------------------------------------------------------- ------- ------- ------- ------- -------
Distributions to shareholders:
From net realized gains on investments (0.56) (1.89) (0.91) (0.52) --
- ----------------------------------------------------------- ------- ------- ------- ------- -------
Total distributions (0.56) (1.89) (0.91) (0.52) --
- ----------------------------------------------------------- ------- ------- ------- ------- -------
Net asset value, end of period $ 30.79 $ 22.16 $ 22.19 $ 20.98 $ 14.59
=========================================================== ======= ======= ======= ======= =======
Total return(c) 42.20% 8.66% 10.55% 48.82% 27.65%
=========================================================== ======= ======= ======= ======= =======
Ratios and supplemental data:
Net assets, end of period (in 000's) $73,695 $59,880 $62,637 $76,900 $ 4,082
=========================================================== ======= ======= ======= ======= =======
Ratio of expenses to average net assets: 1.91%(d) 1.95% 1.99% 2.34% 13.63%(e)
=========================================================== ======= ======= ======= ======= =======
Ratio of net investment income (loss) to average net assets: (0.70)%(d) (0.83)% (0.87)% (1.24)% (11.11)%(e)
=========================================================== ======= ======= ======= ======= =======
Portfolio turnover rate 160% 221% 392% 169% 240%(e)
=========================================================== ======= ======= ======= ======= =======
</TABLE>
(a) These selected per share operating data were calculated based upon average
shares outstanding during the period.
(b) Before reimbursement net investment income (loss) per share would have been
reduced (increased) by $1.12.
(c) Total return does not include sales charges and is not annualized for
periods less than one year.
(d) Ratios are based on average net assets of $68,839,613.
(e) Annualized.
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 B
----------------------------------------------------------------
YEAR ENDED OCTOBER 31, DECEMBER 30, 1994
----------------------------------------- TO
1999(a) 1998(a) 1997(a) 1996(a) OCTOBER 31, 1995(a)
-------- ------- ------- ------- -------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 21.70 $ 21.86 $ 20.79 $ 14.53 $ 11.43
- ----------------------------------------------------------- -------- ------- ------- ------- -------
Income from investment operations:
Net investment income (loss) (0.31) (0.30) (0.24) (0.31) (0.04)(b)
- ----------------------------------------------------------- -------- ------- ------- ------- -------
Net realized and unrealized gain on investments 9.16 2.03 2.22 7.09 3.14
- ----------------------------------------------------------- -------- ------- ------- ------- -------
Net increase from investment operations 8.85 1.73 1.98 6.78 3.10
- ----------------------------------------------------------- -------- ------- ------- ------- -------
Distributions to shareholders:
From net realized gain on investments (0.56) (1.89) (0.91) (0.52) --
- ----------------------------------------------------------- -------- ------- ------- ------- -------
Total distributions (0.56) (1.89) (0.91) (0.52) --
- ----------------------------------------------------------- -------- ------- ------- ------- -------
Net asset value, end of period $ 29.99 $ 21.70 $ 21.86 $ 20.79 $ 14.53
=========================================================== ======== ======= ======= ======= =======
Total return(c) 41.52% 8.16% 9.95% 48.11% 27.12%
=========================================================== ======== ======= ======= ======= =======
Ratios and supplemental data:
Net assets, end of period (in 000's) $109,808 $91,613 $93,978 $87,904 $ 2,959
=========================================================== ======== ======= ======= ======= =======
Ratio of expenses to average net assets: 2.41%(d) 2.45% 2.49% 2.84% 14.13%(e)
=========================================================== ======== ======= ======= ======= =======
Ratio of net investment income (loss) to average net assets: (1.20)%(d) (1.33)% (1.37)% (1.74)% (11.61)%(e)
=========================================================== ======== ======= ======= ======= =======
Portfolio turnover rate 160% 221% 392% 169% 240%(e)
=========================================================== ======== ======= ======= ======= =======
</TABLE>
(a) These selected per share operating data were calculated based upon average
shares outstanding during the period.
(b) Before reimbursement net investment income (loss) per share would have been
reduced (increased) by $1.04.
(c) Total return does not include sales charges and is not annualized for
periods less than one year.
(d) Ratios are based on average net assets of $103,242,997.
(e) Annualized.
14
<PAGE> 17
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
------------------- -------------------------------------------------------------------
YEAR ENDED OCTOBER 31, JUNE 1, 1995
MARCH 1, 1999 TO ----------------------------------------- TO
OCTOBER 31, 1999(a) 1999(a) 1998(a) 1997(a) 1996(a) OCTOBER 31, 1995(a)
------------------- ------- ------- ------- ------- ----------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $24.70 $ 22.61 $ 22.50 $21.15 $14.64 $ 11.84
- ------------------------------------- ------ ------- ------- ------ ------ -------
Income from investment operations:
Net investment income (loss) (0.22) (0.05) (0.08) (0.04) (0.13) 0.04(b)
- ------------------------------------- ------ ------- ------- ------ ------ -------
Net realized and unrealized gain on
investments 5.51 9.59 2.08 2.30 7.16 2.76
- ------------------------------------- ------ ------- ------- ------ ------ -------
Net increase from investment
operations 5.29 9.54 2.00 2.26 7.03 2.80
- ------------------------------------- ------ ------- ------- ------ ------ -------
Distributions to shareholders:
From net realized gains on
investments -- (0.56) (1.89) (0.91) (0.52) --
- ------------------------------------- ------ ------- ------- ------ ------ -------
Total distributions -- (0.56) (1.89) (0.91) (0.52) --
- ------------------------------------- ------ ------- ------- ------ ------ -------
Net asset value, end of period $29.99 $ 31.59 $ 22.61 $22.50 $21.15 $ 14.64
===================================== ====== ======= ======= ====== ====== =======
Total return(c) 21.42% 42.93% 9.20% 11.15% 49.50% 23.65%
===================================== ====== ======= ======= ====== ====== =======
Ratios and supplemental data:
Net assets, end of period (in 000's) $ 232 $ 1,239 $14,523 $6,047 $7,446 $ 164
===================================== ====== ======= ======= ====== ====== =======
Ratio of expenses to average net
assets: 2.41%(d) 1.41%(e) 1.45% 1.49% 1.84% 13.13%(f)
===================================== ====== ======= ======= ====== ====== =======
Ratio of net investment income (loss)
to average net assets: (1.20)%(d) (0.20)%(e) (0.33)% (0.37)% (0.74)% (10.61)%(f)
===================================== ====== ======= ======= ====== ====== =======
Portfolio turnover rate 160% 160% 221% 392% 169% 240%(f)
===================================== ====== ======= ======= ====== ====== =======
</TABLE>
(a) These selected per share operating data were calculated based upon average
shares outstanding during the period.
(b) Before reimbursement net investment income (loss) per share would have been
reduced (increased) by $0.61.
(c) Total return does not include sales charges and is not annualized for
periods less than one year.
(d) Ratios are annualized and based on average net assets of $123,130.
(e) Ratios are based on average net assets of $12,297,480.
(f) 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.
15
<PAGE> 18
REPORT OF INDEPENDENT ACCOUNTANTS
To the Shareholders of AIM Global Consumer Products and
Services 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 Consumer Products and Services
Fund--Consolidated 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
16
<PAGE> 19
<TABLE>
<CAPTION>
BOARD OF TRUSTEES OFFICERS OFFICE OF THE FUND
<S> <C> <C>
C. Derek Anderson Robert H. Graham 11 Greenway Plaza
President, Plantagenet Capital Chairman and President Suite 100
Management, LLC (an investment Houston, TX 77046
partnership); Chief Executive Officer, Dana R. Sutton
Plantagenet Holdings, Ltd. Vice President and Treasurer INVESTMENT MANAGER
(an investment banking firm)
Samuel D. Sirko A I M Advisors, Inc.
Frank S. Bayley Vice President and Secretary 11 Greenway Plaza
Partner, law firm of Suite 100
Baker & McKenzie Melville B. Cox Houston, TX 77046
Vice President
Robert H. Graham TRANSFER AGENT
President and Chief Executive Officer, Gary T. Crum
A I M Management Group Inc. Vice President A I M Fund Services, Inc.
P.O. Box 4739
Ruth H. Quigley Carol F. Relihan Houston, TX 77210-4739
Private Investor Vice President
CUSTODIAN
Mary J. Benson
Assistant Vice President and State Street Bank and Trust Company
Assistant Treasurer 225 Franklin Street
Boston, MA 02110
Sheri Morris
Assistant Vice President and COUNSEL TO THE FUND
Assistant Treasurer
Kirkpatrick & Lockhart LLP
Nancy L. Martin 1800 Massachusetts Avenue, N.W.
Assistant Secretary Washington, D.C. 20036-1800
Ofelia M. Mayo COUNSEL TO THE TRUSTEES
Assistant Secretary
Paul, Hastings, Janofsky & Walker LLP
Kathleen J. Pflueger Twenty Third Floor
Assistant Secretary 555 South Flower Street
Los Angeles, CA 90071
DISTRIBUTOR
A I M Distributors, Inc.
11 Greenway Plaza
Suite 100
Houston, TX 77046
AUDITORS
PricewaterhouseCoopers LLP
160 Federal Street
Boston, MA 02110
</TABLE>
REQUIRED FEDERAL INCOME TAX INFORMATION -- UNAUDITED
AIM Global Consumer Products & Services Fund paid ordinary dividends in the
amount of $0.3870 per share during its tax year ended October 31, 1999. Of this
amount, 18.55% is eligible for the dividends received deduction for
corporations. The Fund also distributed long-term capital gains of $1,272,007
during the Fund's tax year ended October 31, 1999.
<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.
INVEST WITH DISCIPLINE
--Registered Trademark--
A I M Distributors, Inc. GCPS-AR-1
