<PAGE> 1
ANNUAL REPORT / OCTOBER 31 2000
AIM LATIN AMERICAN GROWTH FUND
[COVER IMAGE]
[AIM LOGO APPEARS HERE]
--Registered Trademark--
<PAGE> 2
[COVER IMAGE]
-------------------------------------
CREAM PITCHER, RED APPLES BY ELSIE BUNGE
LATIN AMERICA, WITH ITS ABUNDANT RESOURCES, GROWING CONSUMER
POPULATION AND EXPANDING INDUSTRY, PRESENTS POTENTIALLY
ATTRACTIVE INVESTMENT OPPORTUNITIES. WE BELIEVE THAT ARGENTINE
ARTIST ELSIE BUNGE'S BRIGHTLY COLORED PAINTING CAPTURES BOTH
THE SPIRIT AND THE EXCITING POTENTIAL OF LATIN AMERICA.
-------------------------------------
AIM Latin American Growth Fund is for shareholders who seek long-term growth of
capital. The fund primarily invests in securities of a broad range of Latin
American issuers.
ABOUT FUND PERFORMANCE AND PORTFOLIO DATA THROUGHOUT THIS REPORT:
o AIM Latin American Fund's performance figures are historical, and they
reflect the reinvestment of distributions and changes in net asset value.
o Had the advisor not absorbed fees and expenses during the reporting period,
returns would have been lower.
o When sales charges are included in performance figures, Class A share
performance reflects the maximum 4.75% sales charge, and Class B and Class C
share performance reflects the applicable contingent deferred sales charge
(CDSC) for the period involved. The CDSC on Class B shares declines from 5%
beginning at the time of purchase to 0% at the beginning of the seventh
year. The CDSC on Class C shares is 1% for the first year after purchase.
The performance of the fund's Class B and Class C shares will differ from
that of its Class A shares due to different sales-charge structure and class
expenses.
o During the fiscal year ended 10/31/00, the fund paid distributions of
$0.1662 per Class A share, $0.0890 per Class B share and $0.0890 per Class C
share.
o Investing in emerging markets may involve greater risk and potential reward
than investing in more established markets.
o International investing presents certain risks not associated with investing
solely in the United States. These include risks relating to fluctuations in
the value of the U.S. dollar relative to the values of other currencies, the
custodial arrangements made for the fund's foreign holdings, differences in
accounting, political risks and the lesser degree of public information
required to be provided by non-U.S. companies.
o Investing in micro, small and mid-sized companies may involve risks not
associated with more established companies. Also, micro and small companies
may have business risk, significant stock-price fluctuations and
illiquidity.
o The fund's investment return and principal value will fluctuate, so an
investor's shares, when redeemed, may be worth more or less than their
original cost.
ABOUT INDEXES AND OTHER PERFORMANCE BENCHMARKS CITED IN THIS REPORT:
o The unmanaged MSCI Emerging Latin America Index is a group of securities
from emerging Latin American markets tracked by Morgan Stanley Capital
International.
o The unmanaged MSCI Emerging Markets Free Latin America Index is a group of
securities from emerging Latin American markets, excluding stocks non-local
investors cannot buy, tracked by Morgan Stanley Capital International.
o The National Association of Securities Dealers Automated Quotation System
Composite Index (the Nasdaq) is a market-value-weighted index comprising all
domestic and non-U.S.-based common stocks listed on the Nasdaq system. It
includes more than 5,000 companies, and it is often considered
representative of the small and medium-sized company stock universe. While
it includes many small and mid-sized company stocks, large-capitalization
technology companies tend to dominate the index.
o The unmanaged Standard & Poor's Composite Index of 500 Stocks (the S&P 500)
represents the performance of the U.S. stock market.
o An investment cannot be made in an index. Unless otherwise indicated, index
results include reinvested dividends, and they do not include 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 LATIN AMERICAN GROWTH FUND
<PAGE> 3
ANNUAL REPORT / CHAIRMAN'S LETTER
Dear Fellow Shareholder:
It's an honor to address you as the AIM Funds' new chairman.
[PHOTO OF I feel privileged to succeed Ted Bauer, who recently retired
Robert H. from the funds' board and will soon retire as A I M
Graham Management Group's chairman after a long, successful career
APPEARS HERE] in the investment industry. Ted has always shown the highest
degree of integrity and commitment to excellence, and I have
always admired him. I'm also proud to be part of the team
that launched AIM almost 25 years ago. From the beginning,
AIM has been a very people-oriented, service-minded company,
and I plan to carry on the tradition for our shareholders,
financial advisors and employees.
UNCERTAIN MARKETS
The markets this year have been particularly volatile and
confusing for many investors, especially for those who have
only experienced the bull market of the 1990s. After almost
a decade of double-digit returns, the S&P 500 was down 1.81% year-to-date as of
October 31, 2000. But market returns in the 20% to 30% range, such as we have
seen in recent years, are not typical. If you expect these kinds of returns
every year, you'll be disappointed. Historically, markets decline in one out of
every four years. What we're seeing now is a normal downturn. This appears to be
a worldwide trend. Throughout 2000, overseas markets generally have been more
turbulent than their U.S. counterpart.
REASONS FOR OPTIMISM
While investors may need to temper their expectations, there are plenty of
reasons to be optimistic. Economic fundamentals remain strong, and many believe
that the Federal Reserve Board may have succeeded in bringing the economy to a
"soft landing." Gross domestic product growth slowed to 2.4% in the third
quarter from the rapid pace of about 7% a year ago. With this slowdown, it seems
unlikely that the Fed will raise interest rates in the near future, and stable
interest rates provide a solid environment for both stocks and bonds.
In Europe, the region's economic and investment future continues to look
bright despite the weak euro. Restructuring, merger activity and tax reform bode
well for European economies. In Asia, most analysts think the continuing
strength of the U.S. economy will help boost Asian stock markets.
THE VALUE OF ADVICE
The current environment illustrates the value of professional money management.
Knowing when to buy and sell takes expertise and discipline even in the best of
markets. During downturns, many investors may be tempted to make decisions based
on emotions instead of strategy. The wisest choice is to rely on a professional
money manager to make these decisions for you.
In these uncertain times, it's important to keep market volatility in
perspective. Mutual fund investing should be a long-term endeavor. Remember why
you're investing, whether it's for your retirement or your child's education,
and think about your time frame. If you're unsure about whether your investments
can meet your goals, visit your financial advisor for help.
In the following pages, your fund's portfolio managers discuss market
activity, how they managed your fund during the fiscal year and their near-term
outlook. If you have any questions or comments, please contact us through our
Web site, www.aimfunds.com, or call our Client Services Department at
800-959-4246 during normal business hours. Information about your account is
available at our Web site and on our automated AIM Investor Line, 800-246-5463.
Thank you for your continued participation in The AIM Family of Funds
--Registered Trademark--.
Sincerely,
/s/ ROBERT H. GRAHAM
Robert H. Graham
Chairman
-------------------------------------
THE CURRENT ENVIRONMENT
ILLUSTRATES THE VALUE OF
PROFESSIONAL MONEY
MANAGEMENT. KNOWING WHEN
TO BUY AND SELL TAKES
EXPERTISE AND DISCIPLINE
EVEN IN THE BEST OF
MARKETS.
-------------------------------------
AIM LATIN AMERICAN GROWTH FUND
<PAGE> 4
ANNUAL REPORT / MANAGERS' OVERVIEW
GLOBAL TECH ROUT SPREADS TO LATIN AMERICAN MARKETS
INVESTORS FLOCKED TO LATIN AMERICA EARLY IN THE YEAR, THEN FLED FOR SAFER
HAVENS. HOW DID THE FUND PERFORM IN THIS ENVIRONMENT?
Against this backdrop, AIM Latin American Growth Fund posted returns, excluding
sales charges, of 11.61% for Class A shares and 11.10% for both Class B and
Class C shares for the fiscal year ended October 31, 2000. These returns include
gains made during late 1999 and early 2000, when markets were more exuberant
than they became later in the fiscal year. More recently, performance has been
affected by the sell-off in the technology sector and other market difficulties.
The fund's benchmark, the MSCI Emerging Markets Free Latin America Index,
returned 14.24% over the same period.
WHAT WERE MARKET CONDITIONS LIKE OVER THE REPORTING PERIOD?
Markets around the world were highly charged with incredible bouts of optimism,
then pessimism, sometimes just a day apart. As 1999 ended and 2000 began,
investors were giddy with TMT (telephone, media and telecommunications) stock
euphoria. Sky-high stock valuations seemed of little consequence. Then, in
March, tech optimism was replaced by skepticism. A global tech-stock meltdown
ensued. This volatile pattern continued throughout the summer and fall.
Global markets appeared to move in tandem. This curious phenomenon even held
up for Latin American and other emerging markets that comprise a relatively
small tech component. One possible reason for the correlation is the high
"intensity" of telephone and media companies in some of the region's indexes.
These companies provide proxies for the spreading of regional use of the
Internet and other information technology. Another reason for the correlation is
that when the volatility of the Nasdaq heightens, investors may sell or hedge
other assets with a perceived similar risk.
While emerging markets performed poorly this year, Latin America performed
better than some. Many Pacific Rim markets were hard hit by the tech sell-off
and rising oil prices. Some Eastern European markets suffered with the declining
euro. These factors seemed to take less of a toll on Latin America's largest
markets, Mexico and Brazil. Their markets suffered smaller losses by comparison.
Still, foreign interest has been drying up and many mutual funds devoted to
Latin America have witnessed cash outflows.
WHAT WAS THE ECONOMIC AND POLITICAL CLIMATE IN THE REGION?
Latin America, although recently rocked by the global tech sell-off and investor
aversion to risk, is changing for the better. Fiscal reform and improved term
structures for debt are now hallmarks of Latin American economies. (Argentina is
an unfortunate but notable exception.) Like other world markets, Latin America
has recently faced interest-rate fluctuations, rising oil prices and (as is
often the case in emerging markets) political change.
Politics, however, is actually a good word when used in conjunction with
Mexico's recent election. Opposition candidate Vicente Fox won a clear and
decisive victory in a smooth democratic election. This is the first time in
Mexico's history that one party has given way to another peacefully. (The PRI
party had ruled Mexico for the last seven decades.) And economically, Mexico has
turned around so well that Moody's upgraded Mexico's sovereign government debt
to investment-grade. Both Moody's and Standard & Poor's upgraded Mexico's
foreign-currency debt. Mexico's growth is headed for about 7% this year.
Like Mexico, Latin America's other major economy, Brazil, has been rewarded
for its reform. Unlike Mexico (where interest rates rose during the year),
Brazil's dropped. Its markets rallied when a surprise interest-rate cut of a
full per-
LATIN AMERICA
================================================================================
Mexico
Panama
Venezuela
Brazil
Colombia
Peru
Chile
Argentina
================================================================================
TOP COUNTRIES
As of 10/31/00, based on total net assets
================================================================================
1. Brazil 45.56%
2. Mexico 37.82
3. Argentina 6.85
4. Chile 5.17
5. Luxembourg 2.03
6. United Kingdom 1.25
7. Venezuela 0.56
8. Peru 0.43
================================================================================
See important fund and index disclosures inside front cover.
AIM LATIN AMERICAN GROWTH FUND
2
<PAGE> 5
ANNUAL REPORT / MANAGERS' OVERVIEW
centage point was declared in June. And Brazil has become a major exporter of
wood, steel and (of course) coffee. Unfortunately, Brazil is also a major
importer of oil. This has become an issue for Brazil as oil prices skyrocketed
this year.
Argentina, Chile and Peru have been plagued with political disharmony.
Buenos Aires was rocked with a bribery scandal that forced out top aides to
President Fernando de la Rua, throwing the capital into political turmoil. Some
sort of fiscal stimulus is needed in Argentina as the economy continues to
struggle at a time when U.S. interest rates are at some of their highest levels
in years. (The country currently pegs its currency to the U.S. dollar).
In Chile, exports are driving economic growth, particularly with a bounce in
copper prices. However, the domestic economy has been slow to recover with a
left-of-center president viewed with suspicion by the business community.
Corporate governance has been improved with minority shareholder rights
protected under the new legislation (the OPA law) now being implemented.
WHICH INDUSTRIES AND COUNTRIES PROVIDED THE BEST OPPORTUNITIES FOR THE FUND
DURING THE REPORTING PERIOD?
The iron and steel sector proved attractive as consolidation in the iron-ore
industry boosted returns from fund holding CAEMI Metal. Mining in Chile was also
positive for the fund as the price of copper rallied. Indeed, fund holding
Antofagasta started up a new mine last year because of the strong outlook for
copper.
In Mexico, we were bullish on Grupo Financiero Bancomer, the Mexican bank
that was recently purchased by Banco Bilbao Vizcaya. We feel that this bank is
attractively valued, and we expect it to improve return of equity through
cost-cutting and renewed lending.
In Brazil, we participated in the Petrobras issue, funding this position by
selling Ipiranga and CVRD. We believe that new management at Petrobras will
boost production so costly imports can be substituted for the company's own
production.
Positions in both Peru and Venezuela have been trimmed. Although there are
still some attractive valuations there, the political outlook seems uncertain.
WHAT IS YOUR SHORT-TERM MARKET OUTLOOK?
From fiscal reform to an improved term structure for debt, Latin America
continues to change--for the better. On a micro level, cross-border mergers and
acquisitions have introduced new management skills, fresh capital and more
aggressive capital-expenditure plans. And Mexico--the region's largest
economy--has proved that it can have a peaceful, smooth, democratic election.
This was great progress for the country.
In the short term, until investors lose some of their aversion to risk, the
market may remain capped. In the longer term, however, a soft U.S. economic
scenario may allow the region's macroeconomic fundamentals to remain solid and
may permit equity flows to return to the region once investors feel reassured
about the economy.
The past year has been volatile for markets the world over. But for the
long-term investor seeking diversification opportunities, Latin America is still
a compelling region.
================================================================================
PORTFOLIO COMPOSITION
As of 10/31/00, based on total net assets
<TABLE>
<CAPTION>
============================================================================================================
TOP 10 EQUITY HOLDINGS TOP 10 INDUSTRIES
------------------------------------------------------------------------------------------------------------
<S> <C>
1. Grupo Televisa, S.A.-GDR (Mexico) 6.40% 1. Telephone 20.01%
2. Petroleo Brasileiro S.A.-Cvt. (Brazil) 4.87 3. Banks (Regional) 9.61
3. Carso Global Telecom, Class A1 2. Beverages (Alcoholic) 9.05
(Mexico) 4.56 4. Entertainment 6.40
4. Fomento Economico Mexicano, 5. Iron & Steel 6.37
S.A. de C.V.-ADR (Mexico) 4.45 6. Oil & Gas (Exploration & Production) 5.63
5. Grupo Financiero Bancomer, 7. Paper & Forest Products 5.45
S.A. de C.V.-Class O (Mexico) 3.81 8. Manufacturing (Diversified) 4.93
6. Companhia Vale Do Rio Doce- 9. Electric Companies 4.64
Prf. A (Brazil) 3.18 10. Financial (Diversified) 3.96
7. Itausa Investimentos Itau S.A.
Pfd (Brazil) 3.01
8. Nortel Inversora S.A.-
ADR (Argentina) 2.85
9. Grupo Financiero Banorte,
S.A. de C.V.-Class O (Mexico) 2.84
10. Brasil Telecom Participacoes S.A.-
ADR (Brazil) 2.67
The fund's portfolio is subject to change, and there is no assurance that the
fund will continue to hold any particular security.
============================================================================================================
</TABLE>
------------------------------------
READ THIS REPORT ONLINE!
Early in 2001, a new service will be
available--electronic delivery of fund
reports and prospectuses. Soon, you can
read the same AIM report you are reading
now--online. Once you sign up for the
service, we will send you a link to the report
via e-mail. If you choose to receive your
reports online, you will not receive a paper
copy by mail. You may cancel the service
at any time by visiting our Web site.
Please visit our Web site at
www.aimfunds.com and go to "Your AIM
Account." Log into your account and then
click on the "View Other Account Options"
dropdown menu and select "eDelivery."
------------------------------------
See important fund and index disclosures inside front cover.
AIM LATIN AMERICAN GROWTH FUND
3
<PAGE> 6
ANNUAL REPORT / PERFORMANCE HISTORY
YOUR FUND'S LONG-TERM PERFORMANCE
RESULTS OF A $10,000 INVESTMENT
AIM LATIN AMERICAN GROWTH FUND VS. BENCHMARK INDEX
8/13/91-10/31/00
in thousands
================================================================================
AIM Latin American MSCI Emerging MSCI Emerging
Growth Fund, Latin America Markets Free
Class A Shares Index Latin America Index
--------------------------------------------------------------------------------
8/13/91 9527 10000 10000
10/91 10967 11371.9 11236
10/92 10476 13358.2 12980
10/93 14360 17896 17649
10/94 19257 25603.3 25807
10/95 12101 17155.7 17722
10/96 14221 21155.7 21857
10/97 15433 26192.1 27114
10/98 9281 18803.4 19523
10/99 11223 23449.3 23657
10/00 12526 27731.9 27025
$12,526 $27,732 $27,025
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
This chart compares the performance of your fund's Class A shares to a
benchmark index over the period 8/13/91-10/31/00. (Please note that index
performance figures are for the period 7/31/91-10/31/00.) Since the last
reporting period, AIM Latin American Growth Fund has elected to use the MSCI
Emerging Markets Free Latin America Index as its benchmark instead of the MSCI
Emerging Latin America 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 Emerging Latin America 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. It is important to
understand the differences between your fund and an index. Your fund's total
return is shown with a sales charge, and it includes fund expenses and
management fees. An index measures the performance of a hypothetical portfolio.
A market index such as the MSCI Emerging Markets Free Latin America 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.
AVERAGE ANNUAL TOTAL RETURNS
As of 10/31/00, including sales charges
================================================================================
CLASS A SHARES
Inception (8/13/91) 2.47%
5 Years -0.29
1 Year 6.28*
*11.61% excluding sales charges
CLASS B SHARES
Inception (4/1/93) 0.32%
5 Years -0.18
1 Year 6.10*
*11.10% excluding CDSC
CLASS C SHARES
Inception (3/1/99) 27.54%
1 Year 10.10*
*11.10% excluding CDSC
================================================================================
The fund's average annual total returns as of the close of the reporting period
are shown in the table above. In addition, industry regulations require us to
provide average annual total returns (including sales charges) as of 9/30/00,
the most recent calendar quarter-end, which were: Class A shares, one year,
17.34%; five years, -0.32%; inception (8/13/91), 3.44%. Class B shares, one
year, 17.58%; five years, -0.23%; inception (4/1/93), 1.45%. Class C shares, one
year, 21.56%; inception (3/1/99), 36.28%.
Your fund's total return includes sales charges, expenses and management fees.
The performance of the fund's Class A shares will differ from that of its Class
B and Class C shares due to differing sales-charge structure and class expenses.
For fund performance calculations and a description of the index on this page,
please see the inside front cover.
AIM LATIN AMERICAN GROWTH FUND
4
<PAGE> 7
SCHEDULE OF INVESTMENTS
October 31, 2000
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
FOREIGN STOCKS & OTHER EQUITY
INTERESTS-99.67%
ARGENTINA-6.85%
Acindar Industria Argentina de
Aceros S.A.-Series B (Iron &
Steel)(a) 200,000 $ 179,038
--------------------------------------------------------------------
Banco Hipotecario S.A.-Wts.
(Banks-Regional), expiring
02/02/04(b)(c) 617 166,590
--------------------------------------------------------------------
Grupo Financiero Galicia S.A.-ADR
(Banks-Regional)(a) 119,816 1,744,820
--------------------------------------------------------------------
IRSA Inversiones y Representaciones
S.A.-GDR (Land Development) 46,066 958,749
--------------------------------------------------------------------
Nortel Inversora S.A.-ADR
(Telephone) 180,500 2,166,000
====================================================================
5,215,197
====================================================================
BRAZIL-45.56%
Brasil Telecom Participacoes S.A.
(Telephone) 150,766,000 1,184,336
--------------------------------------------------------------------
Brasil Telecom Participacoes
S.A.-ADR (Telephone) 37,500 2,032,031
--------------------------------------------------------------------
Caemi Mineracao e Metalurgica
S.A.-Pfd. (Iron & Steel) 8,750,000 1,191,411
--------------------------------------------------------------------
CIA Siderurgica Nacional (Iron &
Steel) 38,333,000 1,063,768
--------------------------------------------------------------------
Companhia Cimento Portland
Itau-Pfd. (Construction-Cement &
Aggregates) 650,000 103,483
--------------------------------------------------------------------
Companhia de Saneamento Basico do
Estado de Sao Paulo (Water
Utilities) 11,000,000 990,835
--------------------------------------------------------------------
Companhia de Tecidos Norte de
Minas-Pfd. (Textiles-Specialty) 11,622,000 858,184
--------------------------------------------------------------------
Companhia Energetica de Minas
Gerais-ADR (Electric Companies) 60,000 911,124
--------------------------------------------------------------------
Companhia Paranaense de
Energia-Copel (Electric
Companies) 68,692,000 482,052
--------------------------------------------------------------------
Companhia Paranaense de
Energia-Copel-ADR (Electric
Companies) 62,935 570,348
--------------------------------------------------------------------
Companhia Vale do Rio Doce-Pfd. A
(Iron & Steel) 105,000 2,419,482
--------------------------------------------------------------------
Eletropaulo Metropolitana-Eletricidade
de Sao Paulo S.A.-Pfd. (Electric
Companies) 28,000,000 1,568,997
--------------------------------------------------------------------
Embratel Participacoes S.A.-ADR
(Telephone) 55,000 890,313
--------------------------------------------------------------------
Embratel Participacoes S.A.-Pfd.
(Telephone) 109,450,000 1,755,671
--------------------------------------------------------------------
Itausa-Investimentos Itau S.A.-Pfd.
(Investment Management) 2,716,659 2,290,558
--------------------------------------------------------------------
Petroleo Brasileiro S.A. (Oil &
Gas-Exploration & Production) 128,000 3,706,939
--------------------------------------------------------------------
Petroleo Brasileiro S.A.-ADR (Oil &
Gas-Exploration & Production)(a) 20,000 581,250
--------------------------------------------------------------------
Tele Celular Sul Participacoes S.A.
(Telecommunications-Cellular/Wireless)(a) 44,674,000 86,564
--------------------------------------------------------------------
Tele Norte Leste Participacoes S.A.
(Telephone) 34,488,000 567,124
--------------------------------------------------------------------
Tele Norte Leste Participacoes
S.A.-ADR (Telephone) 52,183 1,154,549
--------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
BRAZIL-(CONTINUED)
Tele Norte Leste Participacoes
S.A.-Pfd. (Telephone) 92,412,000 $ 2,017,143
--------------------------------------------------------------------
Telecomunicacoes Brasileiras S.A.
(Telephone)(a) 86,027,000 901
--------------------------------------------------------------------
Telemig Celular Participacoes
S.A.-ADR
(Telecommunications-Cellular/Wireless) 10,000 525,000
--------------------------------------------------------------------
Telesp Celular Participacoes S.A.
(Telecommunications-Cellular/Wireless)(a) 1,000 6
--------------------------------------------------------------------
Telesp Celular Participacoes
S.A.-Pfd.
(Telecommunications-Cellular/Wireless)(a) 108,294,000 1,280,590
--------------------------------------------------------------------
Unibanco-Uniao de Bancos
Brasileiros S.A.-GDR
(Banks-Regional) 56,372 1,423,393
--------------------------------------------------------------------
Unibanco-Uniao de Bancos
Brasileiros S.A.-Units
(Banks-Regional)(d) 15,000,000 758,062
--------------------------------------------------------------------
Usinas Siderurgicas de Minas Gerais
S.A.-Class A Pfd.
(Manufacturing-Diversified) 360,300 1,849,144
--------------------------------------------------------------------
Votorantim Celulose e Papel
S.A.-ADR (Paper & Forest
Products) 52,254 901,382
--------------------------------------------------------------------
Votorantim Celulose e Papel
S.A.-Pfd. (Paper & Forest
Products) 45,587,000 1,523,148
====================================================================
34,687,788
====================================================================
CHILE-5.17%
Banco de A. Edwards-ADR
(Banks-Regional)(a) 26,700 320,400
--------------------------------------------------------------------
Compania Cervecerias Unidas
S.A.-ADR (Beverages-Alcoholic) 84,500 1,631,906
--------------------------------------------------------------------
Embotelladora Arica S.A.-ADR
(Beverages-Non-Alcoholic)(a) 40,500 138,449
--------------------------------------------------------------------
Quinenco S.A.-ADR
(Financial-Diversified) 102,400 857,600
--------------------------------------------------------------------
Sociedad Quimica y Minera de Chile
S.A.-ADR (Chemicals) 36,100 667,850
--------------------------------------------------------------------
Supermercados Unimarc S.A.-ADR
(Retail-Food Chains) 172,700 323,813
====================================================================
3,940,018
====================================================================
LUXEMBOURG-2.03%
Quilmes Industrial S.A.-ADR
(Beverages-Alcoholic) 187,164 1,544,103
====================================================================
MEXICO-37.82%
Alpha S.A. de C.V.-Class A
(Manufacturing-Diversified) 696,700 1,396,023
--------------------------------------------------------------------
Carso Global Telecom-Class A1
(Telephone)(a) 1,550,000 3,468,940
--------------------------------------------------------------------
Cemex S.A. de C.V.
(Construction-Cement &
Aggregates) 381,969 1,605,852
--------------------------------------------------------------------
Cemex S.A. de C.V.-Wts.,
(Construction-Cement &
Aggregates), expiring 12/13/02(b) 22,000 9,663
--------------------------------------------------------------------
Cintra S.A. (Airlines) 393,300 180,979
--------------------------------------------------------------------
</TABLE>
5
<PAGE> 8
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
MEXICO-(CONTINUED)
Consorcio Ara, S.A. de C.V.
(Homebuilding)(a) 365,000 $ 514,558
--------------------------------------------------------------
Controladora Comercial Mexicana
S.A. de C.V.-ADR-Units
(Retail-General Merchandise)(e) 1,250,000 1,385,693
--------------------------------------------------------------
Corporacion GEO S.A. de C.V.-Series
B (Construction-Cement &
Aggregates)(a) 521,000 591,723
--------------------------------------------------------------
El Puerto de Liverpool S.A. de
C.V.-Series 1 (Retail-Department
Stores) 45,941 54,291
--------------------------------------------------------------
Fomento Economico Mexicano, S.A. de
C.V.-ADR (Beverages-Alcoholic) 88,705 3,387,422
--------------------------------------------------------------
Grupo Bimbo S.A. de C.V.-Series A
(Foods) 579,800 805,244
--------------------------------------------------------------
Grupo Carso S.A. de C.V.-Series A1
(Manufacturing-Diversified)(a) 163,876 509,006
--------------------------------------------------------------
Grupo Financiero Bancomer, S.A. de
C.V.-Class O (Banks-Regional)(a) 4,691,257 2,904,439
--------------------------------------------------------------
Grupo Financiero Banorte S.A. de
C.V.-Class O
(Financial-Diversified)(a) 1,445,455 2,158,659
--------------------------------------------------------------
Grupo Industrial Maseca S.A. de
C.V.-Class B (Foods) 485,164 106,551
--------------------------------------------------------------
Grupo Posadas S.A.-Series A
(Lodging-Hotels)(a) 471,000 339,877
--------------------------------------------------------------
Grupo Posadas S.A.-Series L
(Lodging-Hotels)(a) 752,300 527,129
--------------------------------------------------------------
Grupo Televisa S.A.-GDR
(Entertainment)(a) 90,000 4,871,250
--------------------------------------------------------------
Industrias Penoles S.A. (Metals
Mining) 506,267 590,874
--------------------------------------------------------------
Kimberly-Clark de Mexico, S.A. de
C.V.-Class A (Paper & Forest
Products) 675,000 1,725,973
--------------------------------------------------------------
Nueva G.Mexico S.A.-Class B (Metals
Mining) 205,824 684,501
--------------------------------------------------------------
Pepsi-Gemex S.A.-GDR
(Beverages-Non-Alcoholic)(a) 222,100 971,688
==============================================================
28,790,335
==============================================================
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
PERU-0.43%
Union de Cervecerias Backus &
Johnston S.A.
(Beverages-Alcoholic) 1,173,686 $ 327,439
==============================================================
UNITED KINGDOM-1.25%
Antofagasta Holdings PLC (Gold &
Precious Metals Mining) 160,000 949,216
==============================================================
VENEZUELA-0.56%
Corporacion Venezolana de Cementos
S.A.C.A.-I (Constructions-Cement
& Aggregates) 759,439 262,725
--------------------------------------------------------------
Corporacion Venezolana de Cementos
S.A.C.A.-II (Constructions-Cement
& Aggregates) 502,029 166,438
==============================================================
429,163
==============================================================
Total Foreign Stocks & Other
Equity Interests (Cost $78,650,236) 75,883,259
==============================================================
<CAPTION>
PRINCIPAL
AMOUNT(f)
<S> <C> <C>
CORPORATE BONDS-0.00%
BRAZIL-0.00%
Companhia Vale Do Rio Doce-Non
Convertible (Cost $0) BRL 276,400 0
==============================================================
MONEY MARKET FUNDS-0.23%
STIC Liquid Assets Portfolio(g) 87,422 87,422
--------------------------------------------------------------
STIC Prime Portfolio(g) 87,422 87,422
==============================================================
Total Money Market Funds
(Cost $174,844) 174,844
==============================================================
TOTAL INVESTMENTS-99.90%
(Cost $78,825,080) 76,058,103
==============================================================
OTHER ASSETS LESS LIABILITIES-0.10% 75,024
==============================================================
NET ASSETS-100.00% $76,133,127
______________________________________________________________
==============================================================
</TABLE>
Investment Abbreviations:
ADR - American Depositary Receipt
GDR - Global Depositary Receipt
Pfd. - Preferred
Wts. - Warrants
Notes to Schedule of Investments:
(a) Non-income producing security.
(b) Acquired as part of a unit with or in exchange for other securities.
(c) Security fair valued in accordance with the procedures established by the
Board of Trustees.
(d) Each unit represents one preferred share of Unibanco and one preferred B
share of Unibanco Holdings.
(e) Each unit represents three B shares and one C share.
(f) Foreign denominated security. Par value and coupon are denominated in
currency indicated.
(g) The money market fund and the Fund are affiliated by having the same
investment advisor.
See Notes to Financial Statements.
6
<PAGE> 9
STATEMENT OF ASSETS AND LIABILITIES
October 31, 2000
<TABLE>
<S> <C>
ASSETS:
Investments, at market value (cost $78,825,080) $76,058,103
------------------------------------------------------------
Foreign currencies, at value (cost $26,113) 25,957
------------------------------------------------------------
Receivables for:
Investments sold 31,593
------------------------------------------------------------
Fund shares sold 2,656
------------------------------------------------------------
Dividends 362,249
------------------------------------------------------------
Collateral for securities loaned 2,435,363
------------------------------------------------------------
Other assets 10,507
============================================================
Total assets 78,926,428
============================================================
LIABILITIES:
Payables for:
Fund shares reacquired 115,686
------------------------------------------------------------
Collateral upon return of securities loaned 2,435,363
------------------------------------------------------------
Accrued advisory fees 78,410
------------------------------------------------------------
Accrued administrative services fees 4,098
------------------------------------------------------------
Accrued distribution fees 33,411
------------------------------------------------------------
Accrued trustees' fees 906
------------------------------------------------------------
Accrued transfer agent fees 42,219
------------------------------------------------------------
Accrued operating expenses 83,208
============================================================
Total liabilities 2,793,301
============================================================
Net assets applicable to shares outstanding $76,133,127
____________________________________________________________
============================================================
NET ASSETS:
Class A $42,347,478
____________________________________________________________
============================================================
Class B $33,047,028
____________________________________________________________
============================================================
Class C $ 738,621
____________________________________________________________
============================================================
SHARES OUTSTANDING, $0.01 PAR VALUE PER SHARE:
Class A 2,742,928
____________________________________________________________
============================================================
Class B 2,169,343
____________________________________________________________
============================================================
Class C 48,471
____________________________________________________________
============================================================
Class A:
Net asset value and redemption price per
share $ 15.44
------------------------------------------------------------
Offering price per share:
(Net asset value of $15.44 divided by
95.25%) $ 16.21
____________________________________________________________
============================================================
Class B:
Net asset value and offering price per share $ 15.23
____________________________________________________________
============================================================
Class C:
Net asset value and offering price per share $ 15.24
____________________________________________________________
============================================================
</TABLE>
STATEMENT OF OPERATIONS
For the year ended October 31, 2000
<TABLE>
<S> <C>
INVESTMENT INCOME:
Dividends (net of foreign withholding tax of
$238,208) $ 2,249,203
------------------------------------------------------------
Dividends from affiliated money market funds 106,903
------------------------------------------------------------
Security lending income 45,504
============================================================
Total investment income 2,401,610
============================================================
EXPENSES:
Advisory fees 1,006,288
------------------------------------------------------------
Administrative services fees 50,000
------------------------------------------------------------
Custodian fees 65,833
------------------------------------------------------------
Distribution fees -- Class A 298,720
------------------------------------------------------------
Distribution fees -- Class B 425,504
------------------------------------------------------------
Distribution fees -- Class C 7,773
------------------------------------------------------------
Interest 10,856
------------------------------------------------------------
Transfer agent fees 486,654
------------------------------------------------------------
Trustees' fees 8,959
------------------------------------------------------------
Other 127,728
============================================================
Total expenses 2,488,315
============================================================
Less: Fees waived (188,076)
------------------------------------------------------------
Expenses paid indirectly (10,743)
============================================================
Net expenses 2,289,496
============================================================
Net investment income 112,114
============================================================
REALIZED AND UNREALIZED GAIN (LOSS) FROM
INVESTMENT SECURITIES AND FOREIGN CURRENCIES
Net realized gain (loss) from:
Investment securities (353,147)
------------------------------------------------------------
Foreign currencies (292,259)
============================================================
(645,406)
============================================================
Change in net unrealized appreciation of:
Investment securities 12,728,960
------------------------------------------------------------
Foreign currencies 34,959
============================================================
12,763,919
============================================================
Net gain on investment securities and foreign
currencies 12,118,513
============================================================
Net increase in net assets resulting from
operations $12,230,627
____________________________________________________________
============================================================
</TABLE>
See Notes to Financial Statements.
7
<PAGE> 10
STATEMENT OF CHANGES IN NET ASSETS
For the years ended October 31, 2000 and 1999
<TABLE>
<CAPTION>
2000 1999
------------ ------------
<S> <C> <C>
OPERATIONS:
Net investment income $ 112,114 $ 1,204,092
------------------------------------------------------------------------------------------
Net realized gain (loss) from investment securities and
foreign currencies (645,406) (30,276,702)
------------------------------------------------------------------------------------------
Change in net unrealized appreciation of investment
securities and foreign currencies 12,763,919 48,078,005
==========================================================================================
Net increase in net assets resulting from operations 12,230,627 19,005,395
==========================================================================================
Distributions to shareholders from net investment income:
Class A (559,152) (703,214)
------------------------------------------------------------------------------------------
Class B (242,204) (122,741)
------------------------------------------------------------------------------------------
Class C (1,126) --
------------------------------------------------------------------------------------------
Advisor Class* (7,099) (9,487)
------------------------------------------------------------------------------------------
Share transactions-net:
Class A (13,979,698) (22,064,281)
------------------------------------------------------------------------------------------
Class B (10,270,500) (15,015,084)
------------------------------------------------------------------------------------------
Class C 711,686 158,037
------------------------------------------------------------------------------------------
Advisor Class* (537,577) (144,362)
==========================================================================================
Net increase (decrease) in net assets (12,655,043) (18,895,737)
==========================================================================================
NET ASSETS:
Beginning of year 88,788,170 107,683,907
==========================================================================================
End of year $ 76,133,127 $ 88,788,170
__________________________________________________________________________________________
==========================================================================================
NET ASSETS CONSIST OF:
Shares of beneficial interest $142,652,510 $167,043,253
------------------------------------------------------------------------------------------
Undistributed net investment income -- 675,072
------------------------------------------------------------------------------------------
Undistributed net realized gain (loss) from investment
securities and foreign currencies (63,720,298) (63,367,151)
------------------------------------------------------------------------------------------
Unrealized appreciation (depreciation) of investment
securities and foreign currencies (2,799,085) (15,563,004)
==========================================================================================
$ 76,133,127 $ 88,788,170
__________________________________________________________________________________________
==========================================================================================
</TABLE>
* Advisor Class shares were converted to Class A shares effective as of close of
business on February 11, 2000.
See Notes to Financial Statements.
8
<PAGE> 11
NOTES TO FINANCIAL STATEMENTS
October 31, 2000
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES
AIM Latin American Growth 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 nine separate series portfolios, each having an unlimited number of shares of
beneficial interest. The Fund currently offers three different classes of
shares: Class A shares, Class B shares and Class C shares. The Fund formerly
offered Advisor Class shares; however, as of the close of business on February
11, 2000 the Advisor Class shares were converted to Class A shares. Class A
shares are sold with a front-end sales charge. Class B shares and Class C shares
are sold with a contingent deferred sales charge. Advisor Class shares were sold
without a sales charge. Matters affecting each portfolio or class will be voted
on exclusively by the shareholders of such portfolio or class. The assets,
liabilities and operations of each portfolio are accounted for separately.
Information presented in these financial statements pertains only to the Fund.
The Fund's investment objective is growth of capital.
The preparation of financial statements in conformity with accounting
principles generally accepted in the United States of America requires
management to make estimates and assumptions that affect the reported amounts of
assets and liabilities at the date of the financial statements and the reported
amounts of revenues and expenses during the reporting period. Actual results
could differ from those estimates. The following is a summary of the significant
accounting policies followed by the Fund in the preparation of its financial
statements.
A. Security Valuations -- A security listed or traded on an exchange (except
convertible bonds) is valued at its last sales price as of the close of the
customary trading session on the exchange where the security is principally
traded, or lacking any sales on a particular day, the security is valued at
the closing bid price on that day. Each security reported on the NASDAQ
National Market System is valued at the last sales price as of the close of
the customary trading session on the valuation date or absent a last sales
price, at the closing bid price. Debt obligations (including convertible
bonds) are valued on the basis of prices provided by an independent pricing
service. Prices provided by the pricing service may be determined without
exclusive reliance on quoted prices, and may reflect appropriate factors such
as yield, type of issue, coupon rate and maturity date. Securities for which
market prices are not provided by any of the above methods are valued based
upon quotes furnished by independent sources and are valued at the last bid
price in the case of equity securities and in the case of debt obligations,
the mean between the last bid and asked prices. Securities for which market
quotations are not readily available or are questionable are valued at fair
value as determined in good faith by or under the supervision of the Trust's
officers in a manner specifically authorized by the Board of Trustees.
Short-term obligations having 60 days or less to maturity are valued at
amortized cost which approximates market value. For purposes of determining
net asset value per share, futures and option contracts generally will be
valued 15 minutes after the close of the customary trading session of the
New York Stock Exchange ("NYSE").
Generally, trading in foreign securities is substantially completed each
day at various times prior to the close of the NYSE. The values of such
securities used in computing the net asset value of the Fund's shares are
determined as of such times. Foreign currency exchange rates are also
generally determined prior to the close of the NYSE. Occasionally, events
affecting the values of such securities and such exchange rates may occur
between the times at which they are determined and the close of the customary
trading session of the NYSE which would not be reflected in the computation
of the Fund's net asset value. If events materially affecting the value of
such securities occur during such period, then these securities will be
valued at their fair value as determined in good faith by or under the
supervision of the Board of Trustees.
B. Securities Transactions and Investment Income -- Securities transactions are
accounted for on a trade date basis. Realized gains or losses on sales are
computed on the basis of specific identification of the securities sold.
Interest income is recorded on the accrual basis from settlement date.
Dividend income is recorded on the ex-dividend date.
On October 31, 2000, undistributed net investment income was increased by
$22,395, undistributed net realized gains (losses) increased by $292,259 and
paid in capital decreased by $314,654 as a result of book/tax treatment of
foreign currency transactions and net operating loss reclassifications. Net
assets of the Fund were unaffected by the reclassification discussed above.
C. Distributions -- Distributions from income and net realized capital gains, if
any, are generally paid annually and recorded on ex-dividend date. The Fund
may elect to use a portion of the proceeds from redemptions as distributions
for federal income tax purposes.
D. Federal Income Taxes -- The Fund intends to comply with the requirements of
the Internal Revenue Code necessary to qualify as a regulated investment
company and, as such, will not be subject to federal income taxes on
otherwise taxable income (including net realized capital gains) which is
distributed to shareholders. Therefore, no provision for federal income taxes
is recorded in the financial statements.
The Fund has a capital loss carryforward of $62,498,841 as of October 31,
2000 which may be carried forward to offset future taxable gains, if any,
which expires, if not previously utilized, in the year 2008.
E. Foreign Currency Translations -- Portfolio securities and other assets and
liabilities denominated in foreign currencies are
9
<PAGE> 12
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 the portion of the
results of operations resulting from changes in foreign exchange rates on
investments and the fluctuations arising from changes in market prices of
securities held. Such fluctuations are included with the net realized and
unrealized gain or loss from investments.
F. Foreign Currency Contracts -- A foreign currency contract is an obligation to
purchase or sell a specific currency for an agreed-upon price at a future
date. The 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.
G. Expenses -- Distribution expenses directly attributable to a class of shares
are charged to that class' operations. All other expenses which are
attributable to more than one class are allocated among the classes.
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 sub-advisor and
sub-administrator. The Fund pays AIM investment management and administration
fees at an annual rate of 0.975% on the first $500 million of the Fund's average
daily net assets, plus 0.95% on the next $500 million of the Fund's average
daily net assets, plus 0.925% on the next $500 million of the Fund's average
daily net assets, plus 0.90% on the Fund's average daily net assets exceeding
$1.5 billion. AIM has contractually agreed to limit total annual operating
expenses (excluding interest, taxes, dividend expense on short sales,
extraordinary items and increases in expenses due to offset arrangements, if
any) for Class A, Class B and Class C shares to 2.00%, 2.50% and 2.50%,
respectively. During the year ended October 31, 2000, AIM waived fees of
$188,076.
The Fund, pursuant to a master administrative services agreement with AIM, has
agreed to pay AIM for certain administrative costs incurred in providing
accounting services to the Fund. For the year ended October 31, 2000, AIM was
paid $50,000 for such services.
The Fund, pursuant to a transfer agency and service agreement, has agreed to
pay A I M Fund Services, Inc. ("AFS") a fee for providing transfer agency and
shareholder services to the Fund. For the year ended October 31, 2000, AFS was
paid $307,783 for such services.
The Trust has entered into master distribution agreements with A I M
Distributors, Inc. ("AIM Distributors") to serve as the distributor for the
Class A, Class B and Class C shares of the Fund. The Trust has adopted plans
pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund's Class A
shares, Class B shares and Class C shares (collectively the "Plans"). The Fund ,
pursuant to the Plans, pays AIM Distributors compensation at the annual rate of
0.50% of the Fund's average daily net assets of Class A shares and 1.00% of the
average daily net assets of Class B and C shares. Of these amounts, the Fund may
pay a service fee of 0.25% of the average daily net assets of the Class A, Class
B or Class C shares to selected dealers and financial institutions who furnish
continuing personal shareholder services to their customers who purchase and own
the appropriate class of shares of the Fund. Any amounts not paid as a service
fee under the Plans would constitute an asset-based sales charge. The Plans also
impose a cap on the total sales charges, including asset-based sales charges
that may be paid by the respective classes. For the year ended October 31, 2000,
the Class A, Class B and Class C shares paid AIM Distributors $298,720, $425,504
and $7,773, respectively, as compensation under the Plans.
AIM Distributors received commissions of $12,961 from sales of the Class A
shares of the Fund during the year ended October 31, 2000. Such commissions are
not an expense of the Fund. They are deducted from, and are not included in, the
proceeds from sales of Class A shares. During the year ended October 31, 2000,
AIM Distributors received $5,658 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
For the year ended October 31, 2000, the Fund received reductions in transfer
agency fees from AFS (an affiliate of AIM) of $1,396 and reductions in custodian
fees of $9,347 under expense offset arrangements which resulted in a reduction
of the Fund's total expenses of $10,743.
NOTE 4-BANK BORROWINGS
The Fund is a participant in a committed line of credit facility with a
syndicate administered by Citibank, N.A.. 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, 2000, the Fund did not borrow under the line of credit agreement. The funds
which are party to the line of credit are charged a commitment fee of 0.09% on
the unused balance of the committed line. The commitment fee is allocated among
the funds based on their respective average net assets for the period.
NOTE 5-PORTFOLIO SECURITIES LOANED
The Fund may lend portfolio securities to the extent of one-third of the Fund's
total assets. Such loans are secured by collateral equal to not less than the
market value, determined daily, of the loaned securities. Such collateral will
be cash or debt securities issued or guaranteed by the U.S. Government or any of
its agencies. Cash collateral pursuant to these loans is invested in short-term
money market instruments or affiliated money market funds. Lending
10
<PAGE> 13
securities entails a risk of loss to the Fund if and to the extent that the
market value of the securities loaned were to increase and the borrower did not
increase the collateral accordingly and the borrower fails to return the
securities.
At October 31, 2000, securities with an aggregate value of $2,387,611 were on
loan to brokers. The loans were secured by cash collateral of $2,435,363
received by the Fund. For the year ended October 31, 2000, the Fund received
fees of $45,504 for securities lending.
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, 2000 was
$32,461,272 and $55,588,789, respectively.
The amount of unrealized appreciation (depreciation) of investment securities,
for tax purposes, as of October 31, 2000 is as follows:
<TABLE>
<S> <C>
Aggregate unrealized appreciation of
investment securities $ 14,201,241
----------------------------------------------------------
Aggregate unrealized (depreciation) of
investment securities (18,189,668)
==========================================================
Net unrealized appreciation (depreciation)
of investment securities $ (3,988,427)
__________________________________________________________
==========================================================
Cost of investments for tax purposes is
$80,046,530
</TABLE>
NOTE 7-SHARE INFORMATION
Changes in shares outstanding during the years ended October 31, 2000 and 1999
were as follows:
<TABLE>
<CAPTION>
2000 1999
-------------------------- ----------------------------
SHARES AMOUNT SHARES AMOUNT
---------- ------------ ----------- -------------
<S> <C> <C> <C> <C>
Sold:
Class A 1,665,667 $ 29,183,062 10,698,303 $ 130,700,031
------------------------------------------------------------------------------------------------------------------------
Class B 353,912 6,184,261 1,074,686 14,304,893
------------------------------------------------------------------------------------------------------------------------
Class C* 80,679 1,423,016 20,395 302,050
------------------------------------------------------------------------------------------------------------------------
Advisor Class** 4,828 77,585 103,353 1,459,954
========================================================================================================================
Issued as reinvestment of dividends:
Class A 30,264 511,470 56,745 633,836
------------------------------------------------------------------------------------------------------------------------
Class B 13,133 219,985 9,959 110,343
------------------------------------------------------------------------------------------------------------------------
Class C* 58 964 -- --
------------------------------------------------------------------------------------------------------------------------
Advisor Class** 422 7,096 833 9,259
========================================================================================================================
Conversion of Advisor Class shares to Class A shares:***
Class A 26,127 493,538 -- --
------------------------------------------------------------------------------------------------------------------------
Advisor Class (26,252) (493,538) -- --
========================================================================================================================
Reacquired:
Class A (2,543,866) (44,167,768) (12,381,943) (153,398,148)
------------------------------------------------------------------------------------------------------------------------
Class B (986,553) (16,674,746) (2,351,288) (29,430,320)
------------------------------------------------------------------------------------------------------------------------
Class C* (42,890) (712,294) (9,771) (144,013)
------------------------------------------------------------------------------------------------------------------------
Advisor Class** (7,477) (128,720) (106,874) (1,613,575)
========================================================================================================================
(1,431,948) $(24,076,089) (2,885,602) $ (37,065,690)
________________________________________________________________________________________________________________________
========================================================================================================================
</TABLE>
* Class C shares commenced sales on March 1, 1999.
** Advisor Class share activity for the period November 1, 1999 through
February 11, 2000 (date of conversion).
*** Effective as of the close of business February 11, 2000, pursuant to
approval by the Board of Trustees on November 2, 1999, all outstanding
shares of Advisor Class shares were converted to Class A shares of the fund.
11
<PAGE> 14
NOTE 8-FINANCIAL HIGHLIGHTS
The following schedule presents financial highlights for a share of the Fund
outstanding throughout the periods indicated.
<TABLE>
<CAPTION>
CLASS A
-----------------------------------------------------
YEAR ENDED OCTOBER 31,
-----------------------------------------------------
2000(a) 1999 1998(a) 1997(a) 1996(a)
------- ------- ------- -------- --------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $13.97 $ 11.70 $19.50 $ 17.95 $ 15.38
---------------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income 0.06 0.21 0.13 0.11 0.09
---------------------------------------------------------------------------------------------------------------------
Net gains (losses) on securities (both realized and
unrealized) 1.58 2.20 (7.90) 1.44 2.59
=====================================================================================================================
Total from investment operations 1.64 2.41 (7.77) 1.55 2.68
=====================================================================================================================
Less distributions:
Dividends from net investment income (0.17) (0.14) (0.03) -- (0.08)
---------------------------------------------------------------------------------------------------------------------
Returns of capital -- -- -- -- (0.03)
=====================================================================================================================
Total distributions (0.17) (0.14) (0.03) -- (0.11)
=====================================================================================================================
Net asset value, end of period $15.44 $ 13.97 $11.70 $ 19.50 $ 17.95
_____________________________________________________________________________________________________________________
=====================================================================================================================
Total return(b) 11.61% 20.93% (39.86)% 8.52% 17.52%
_____________________________________________________________________________________________________________________
=====================================================================================================================
Ratios/supplemental data:
Net assets, end of period (000s omitted) $42,347 $49,789 $60,720 $159,496 $177,373
_____________________________________________________________________________________________________________________
=====================================================================================================================
Ratio of expenses to average net assets (including interest
expense):
With fee waivers 2.02%(c) 2.06% 2.17% 1.96% 2.03%
---------------------------------------------------------------------------------------------------------------------
Without fee waivers 2.20%(c) 2.65% 2.31% 2.06% 2.10%
=====================================================================================================================
Ratio of expenses to average net assets (excluding interest
expense):
With fee waivers 2.01%(c) 2.00% 2.00% 1.96% 2.03%
---------------------------------------------------------------------------------------------------------------------
Without fee waivers 2.19%(c) 2.59% 2.14% 2.06% 2.10%
=====================================================================================================================
Ratio of net investment income to average net assets 0.33%(c) 1.44% 0.78% 0.52% 0.46%
=====================================================================================================================
Ratio of interest expense to average net assets 0.01%(c) 0.06% 0.17% -- --
_____________________________________________________________________________________________________________________
=====================================================================================================================
Portfolio turnover rate 33% 30% 39% 130% 101%
_____________________________________________________________________________________________________________________
=====================================================================================================================
</TABLE>
(a) Calculated using average shares outstanding.
(b) Does not include sales charges.
(c) Ratios are based on average daily net assets of $59,744,037.
12
<PAGE> 15
NOTE 8-FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
CLASS B
------------------------------------------------------
YEAR ENDED OCTOBER 31,
------------------------------------------------------
2000(a) 1999 1998(a) 1997(a) 1996(a)
-------- ------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 13.79 $ 11.49 $ 19.23 $ 17.78 $ 15.21
-------------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income (loss) (0.03) 0.17 0.04 0.01 --
-------------------------------------------------------------------------------------------------------------------
Net gains (losses) on securities (both realized and
unrealized) 1.56 2.16 (7.78) 1.44 2.59
===================================================================================================================
Total from investment operations 1.53 2.33 (7.74) 1.45 2.59
===================================================================================================================
Less distributions:
From net investment income (0.09) (0.03) -- -- (0.01)
-------------------------------------------------------------------------------------------------------------------
In excess of net investment income -- -- -- -- (0.01)
===================================================================================================================
Total distributions (0.09) (0.03) -- -- (0.02)
===================================================================================================================
Net asset value, end of period $ 15.23 $ 13.79 $ 11.49 $ 19.23 $ 17.78
___________________________________________________________________________________________________________________
===================================================================================================================
Total return(b) 11.03% 20.36% (40.19)% 8.04% 17.02%
___________________________________________________________________________________________________________________
===================================================================================================================
Ratios/supplemental data:
Net assets, end of period (000s omitted) $33,047 $38,456 $46,599 $133,448 $137,400
___________________________________________________________________________________________________________________
===================================================================================================================
Ratio of expenses to average net assets (including interest
expense):
With fee waivers 2.52%(c) 2.56% 2.67% 2.46% 2.53%
-------------------------------------------------------------------------------------------------------------------
Without fee waivers 2.70%(c) 3.15% 2.81% 2.56% 2.60%
===================================================================================================================
Ratio of expenses to average net assets (excluding interest
expense):
With fee waivers 2.51%(c) 2.50% 2.50% 2.46% 2.53%
===================================================================================================================
Without fee waivers 2.69%(c) 3.09% 2.64% 2.56% 2.60%
___________________________________________________________________________________________________________________
===================================================================================================================
Ratio of net investment income (loss) to average net assets (0.17)%(c) 0.94% 0.28% 0.02% (0.04)%
===================================================================================================================
Ratio of interest expense to average net assets 0.01%(c) 0.06% 0.17% -- --
___________________________________________________________________________________________________________________
===================================================================================================================
Portfolio turnover rate 33% 30% 39% 130% 101%
___________________________________________________________________________________________________________________
===================================================================================================================
</TABLE>
(a) Calculated using average shares outstanding.
(b) Does not include contingent deferred sales charges.
(c) Ratios are based on average daily net assets of $42,550,374.
13
<PAGE> 16
NOTE 8-FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
CLASS C
-----------------------------
MARCH 1, 1999
(DATE SALES
YEAR ENDED COMMENCED)
OCTOBER 31, TO OCTOBER 31,
2000(a) 1999
----------- --------------
<S> <C> <C>
Net asset value, beginning of period $13.79 $10.21
-------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income (loss) (0.03) 0.12
-------------------------------------------------------------------------------------------
Net gains on securities (both realized and unrealized) 1.57 3.46
===========================================================================================
Total from investment operations 1.54 3.58
===========================================================================================
Less distributions from net investment income (0.09) --
===========================================================================================
Net asset value, end of period $15.24 $13.79
___________________________________________________________________________________________
===========================================================================================
Total return(b) 11.10% 35.06%
___________________________________________________________________________________________
===========================================================================================
Ratios/supplemental data:
Net assets, end of period (000s omitted) $ 739 $ 147
___________________________________________________________________________________________
===========================================================================================
Ratio of expenses to average net assets (including interest
expense):
With fee waivers 2.52%(c) 2.56%(d)
-------------------------------------------------------------------------------------------
Without fee waivers 2.70%(c) 3.15%(d)
===========================================================================================
Ratio of expenses to average net assets (excluding interest
expense):
With fee waivers 2.51%(c) 2.50%(d)
-------------------------------------------------------------------------------------------
Without fee waivers 2.69%(c) 3.09%(d)
___________________________________________________________________________________________
===========================================================================================
Ratio of net investment income (loss) to average net assets (0.17)%(c) 0.94%(d)
===========================================================================================
Ratio of interest expense to average net assets 0.01%(c) 0.06%(d)
___________________________________________________________________________________________
===========================================================================================
Portfolio turnover rate 33% 30%
___________________________________________________________________________________________
===========================================================================================
</TABLE>
(a) Calculated using average shares outstanding.
(b) Does not include contingent deferred sales charges and is not annualized for
periods less than one year.
(c) Ratios are based on average daily net assets of $777,298.
(d) Annualized.
14
<PAGE> 17
REPORT OF INDEPENDENT ACCOUNTANTS
To the Shareholders of AIM Latin American Growth 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 Latin American Growth Fund at October 31, 2000, and
the results of its operations, the changes in its net
assets and the financial highlights for the periods
indicated, in conformity with accounting principles
generally accepted in the United States of America. 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 auditing standards generally accepted in the United
States of America 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, 2000
by correspondence with the custodian and brokers, provide
a reasonable basis for our opinion.
PRICEWATERHOUSECOOPERS LLP
Boston, Massachusetts
December 18, 2000
15
<PAGE> 18
<TABLE>
<CAPTION>
BOARD OF TRUSTEES OFFICERS OFFICE OF THE FUND
<S> <C> <C>
C. Derek Anderson Robert H. Graham 11 Greenway Plaza
Senior Managing Partner Chairman and President Suite 100
Plantagenet Capital Management, LLC Houston, TX 77046
(an investment partnership); Dana R. Sutton
Chief Executive Officer, Vice President and Treasurer INVESTMENT MANAGER
Plantagenet Holdings, Ltd.
(an investment banking firm) Melville B. Cox A I M Advisors, Inc.
Vice President 11 Greenway Plaza
Frank S. Bayley Suite 100
Partner, law firm of Gary T. Crum Houston, TX 77046
Baker & McKenzie Vice President
SUB-ADVISOR
Robert H. Graham Carol F. Relihan
President and Chief Executive Officer, Vice President and Secretary INVESCO Asset Management Ltd.
A I M Management Group Inc. 11 Devonshire Square
Mary J. Benson London EC2M 4YR
Ruth H. Quigley Assistant Vice President and England
Private Investor Assistant Treasurer
TRANSFER AGENT
Sheri Morris
Assistant Vice President and A I M Fund Services, Inc.
Assistant Treasurer P.O. Box 4739
Houston, TX 77210-4739
Nancy L. Martin
Assistant Secretary CUSTODIAN
Ofelia M. Mayo State Street Bank and Trust Company
Assistant Secretary 225 Franklin Street
Boston, MA 02110
Kathleen J. Pflueger
Assistant Secretary COUNSEL TO THE FUND
Kirkpatrick & Lockhart LLP
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 Street
Boston, MA 02110
</TABLE>
REQUIRED FEDERAL INCOME TAX INFORMATION (UNAUDITED)
Of ordinary dividends paid to shareholders during the Fund's tax year ended
October 31, 2000, 19.06% is eligible for the dividends received deduction for
corporations.
16
<PAGE> 19
THE AIM FUNDS RISK SPECTRUM
On the back cover of this fund report, you'll find the funds in the AIM family
divided into the following categories: sector, international/global, domestic,
taxable and tax-free. You'll also notice that the funds in each category are
listed from more aggressive to more conservative.
Within each category of this risk spectrum, we assessed each fund on the
basis of three factors: its holdings, volatility patterns and diversification.
From that assessment, we assigned a degree of risk to each fund and ordered them
accordingly.
Mutual funds typically invest in stocks, bonds or money market instruments,
each with varying levels of potential risk and reward. Generally, the riskier
the investment, the greater the potential reward.
o Stock funds usually offer the most upside potential, but they also carry the
greatest risk. Funds that invest in large, well-established companies
generally have lower risk/reward potential than funds that invest in small,
fast-growing companies.
o Funds that invest in a broad range of industries are considered more
diversified and less risky--and potentially less rewarding--than funds that
invest in a single sector, such as technology.
o Funds that invest in international markets tend to have higher risk/reward
potential than those that invest solely in domestic securities.
o Bond funds are generally considered safer and therefore potentially less
rewarding than stock funds. Funds that invest in U.S. Treasury securities
typically have lower risk/reward potential than funds that invest in
higher-yielding junk bonds.
o Money market funds, while considered extremely safe, typically produce lower
returns than stock and bond funds. Moreover, it is possible that a money
market fund's returns will not keep pace with inflation.
The amount of investment risk you undertake depends on several factors: your
financial objectives, your risk tolerance and your time horizon. Are you saving
for your later years or are you investing to buy a large item, like a car or a
house, soon? Are you a young adult early in your work life, or are you
approaching retirement?
If your investment plan has a rather long time horizon, you may be able to
invest more aggressively because you could have time to recoup should you
experience losses. If your needs are more immediate, you may need to be more
conservative to meet your goal.
Because these factors change over time, it's a good idea to reassess your
portfolio periodically to make sure it still meets your needs. Your financial
advisor can help you figure out if your portfolio is right where it should be or
if it could use some fine-tuning.
In assessing your investments, remember to keep diversification in mind.
Such a strategy, where you spread your investments over several types of mutual
funds, may help mitigate volatility and/or risk in your portfolio because not
all investments behave the same way at the same time.
AIM has a large selection of mutual funds to choose from. See your financial
advisor for insight into which ones would best fit in your portfolio.
================================================================================
THE AMOUNT OF INVESTMENT
RISK YOU UNDERTAKE DEPENDS
ON SEVERAL FACTORS: YOUR
FINANCIAL OBJECTIVES, YOUR
RISK TOLERANCE AND YOUR
TIME HORIZON.
================================================================================
<PAGE> 20
THE AIM FAMILY OF FUNDS--Registered Trademark--
<TABLE>
<CAPTION>
EQUITY FUNDS
DOMESTIC EQUITY FUNDS INTERNATIONAL/GLOBAL EQUITY FUNDS
<S> <C> <C>
A I M Management Group Inc. has provided
MORE AGGRESSIVE MORE AGGRESSIVE leadership in the mutual fund industry
AIM Small Cap Opportunities(1) AIM Latin American Growth since 1976 and managed approximately
AIM Mid Cap Opportunities(2) AIM Developing Markets $183 billion in assets for more than
AIM Large Cap Opportunities(3) AIM European Small Company eight million shareholders, including
AIM Emerging Growth AIM Asian Growth individual investors, corporate clients
AIM Small Cap Growth(4) AIM Japan Growth and financial institutions, as of
AIM Aggressive Growth AIM International Emerging Growth September 30, 2000.
AIM Mid Cap Growth AIM European Development The AIM Family of Funds--Registered Trademark--
AIM Small Cap Equity AIM Euroland Growth is distributed nationwide, and AIM today is the
AIM Capital Development AIM Global Aggressive Growth eighth-largest mutual fund complex in the
AIM Constellation AIM International Equity United States in assets under management,
AIM Dent Demographic Trends AIM Advisor International Value according to Strategic Insight, an
AIM Select Growth AIM Global Trends independent mutual fund monitor.
AIM Large Cap Growth AIM Global Growth AIM is a subsidiary of AMVESCAP PLC,
AIM Weingarten MORE CONSERVATIVE one of the world's largest independent
AIM Mid Cap Equity financial services companies with $414
AIM Value II SECTOR EQUITY FUNDS billion in assets under management as of
AIM Charter September 30, 2000.
AIM Value MORE AGGRESSIVE
AIM Blue Chip AIM New Technology
AIM Basic Value AIM Global Telecommunications and Technology
AIM Large Cap Basic Value AIM Global Resources
AIM Balanced AIM Global Financial Services
AIM Advisor Flex AIM Global Health Care
MORE CONSERVATIVE AIM Global Consumer Products and Services
AIM Global Infrastructure
AIM Advisor Real Estate
AIM Global Utilities
MORE CONSERVATIVE
FIXED-INCOME FUNDS
TAXABLE FIXED-INCOME FUNDS TAX-FREE FIXED-INCOME FUNDS
MORE AGGRESSIVE MORE AGGRESSIVE
AIM Strategic Income AIM High Income Municipal
AIM High Yield II AIM Tax-Exempt Bond of Connecticut
AIM High Yield AIM Municipal Bond
AIM Income AIM Tax-Free Intermediate
AIM Global Income AIM Tax-Exempt Cash
AIM Floating Rate(5) MORE CONSERVATIVE
AIM Intermediate Government
AIM Limited Maturity Treasury
AIM Money Market
MORE CONSERVATIVE
</TABLE>
The AIM Risk Spectrum illustrates equity and fixed-income funds from more
aggressive to more conservative. When assessing the degree of risk, three
factors were considered: the funds' portfolio holdings, volatility patterns over
time and diversification permitted within the fund. Fund rankings are relative
to one another within The AIM Family of Funds--Registered Trademark-- and should
not be compared with other investments. There is no guarantee that any one AIM
fund will be less volatile than any other. (1) AIM Small Cap Opportunities Fund
closed to new investors Nov. 4, 1999. (2) AIM Mid Cap Opportunities Fund closed
to new investors March 21, 2000. (3) AIM Large Cap Opportunities Fund closed to
new investors Sept. 29, 2000. (4) AIM Small Cap Growth Fund closed to new
investors Nov. 8, 1999. (5) AIM Floating Rate Fund was restructured to offer
multiple share classes April 3, 2000. Existing shares were converted to Class B
shares, and Class C shares commenced offering.
FOR MORE COMPLETE INFORMATION ABOUT ANY AIM FUND, INCLUDING SALES CHARGES
AND EXPENSES, OBTAIN THE APPROPRIATE PROSPECTUS(ES) FROM YOUR FINANCIAL ADVISOR.
PLEASE READ THE PROSPECTUS(ES) CAREFULLY BEFORE YOU INVEST OR SEND MONEY. This
report is not authorized for distribution to prospective investors unless
preceded or accompanied by a currently effective fund prospectus. If used as
sales material after Jan. 20, 2001, this report must be accompanied by a fund
Performance & Commentary or by an AIM Quarterly Review of Performance for the
most recent quarter end.
[DALBAR LOGO APPEARS HERE] [AIM LOGO APPEARS HERE]
--Registered Trademark--
INVEST WITH DISCIPLINE
--Registered Trademark--
A I M Distributors, Inc. LAG-AR-1
