<PAGE> 1
ANNUAL REPORT / OCTOBER 31 2000
AIM GLOBAL RESOURCES FUND
[COVER IMAGE]
[AIM LOGO APPEARS HERE]
--Registered Trademark--
<PAGE> 2
[COVER IMAGE]
-------------------------------------
OLIVE TREES: YELLOW SKY WITH SUN
BY VINCENT VAN GOGH
PEOPLE HAVE ALWAYS DEPENDED ON THE EARTH'S RESOURCES FOR OUR
SURVIVAL AND WELL-BEING. FROM OLIVE TREES TO OIL FIELDS, PINE
FORESTS TO URANIUM MINES, THE WORLD'S RICHES ARE BEING EXPLORED
AND DEVELOPED AS NEVER BEFORE. NOW TRADING IN A GLOBAL MARKET,
NATURAL RESOURCES FROM EVERY PART OF THE WORLD CONTINUE TO
SUPPLY US WITH THE BUILDING BLOCKS OF MODERN SOCIETIES.
-------------------------------------
AIM Global Resources Fund is for shareholders who seek long-term growth of
capital through investments in companies around the world that own, develop or
explore natural resources, or that supply goods and services to such companies.
ABOUT FUND PERFORMANCE AND PORTFOLIO DATA THROUGHOUT THIS REPORT:
o AIM Global Resources Fund's performance figures are historical, and they
reflect the reinvestment of distributions and changes in net asset value.
o Had the advisor not waived 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 In addition to the returns as of the close of the fiscal year found on page
4, 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, 0.99%; five years, 2.74%;
inception (5/31/94), 2.81%. Class B shares, one year, 0.50%; five years,
2.87%; inception (5/31/94), 3.09%. Class C shares, one year, 4.50%;
inception (3/1/99), 17.22%.
o International investing presents certain risks not associated with investing
solely in the United States. These include risks relating to fluctuations in
the value of the U.S. dollar relative to the values of other currencies, the
custody arrangements made for the fund's foreign holdings, differences in
accounting, political risks and the lesser degree of public information
required to be provided by non-U.S. companies.
o The fund participates in the initial public offering (IPO) market, and a
significant portion of the fund's return is attributable to its investment
in IPOs, which have a magnified impact due to the fund's relatively small
asset base. There is no guarantee that as the fund's assets grow, it will
continue to experience substantially similar performance by investing in
IPOs.
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 unmanaged MSCI All Country (AC) World Index tracks the performance of
the securities in more than 50 countries covered by Morgan Stanley Capital
International that are considered developed or emerging markets.
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 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 RESOURCES FUND
<PAGE> 3
ANNUAL REPORT / CHAIRMAN'S LETTER
Dear Fellow Shareholder:
[PHOTO OF It's an honor to address you as the AIM Funds' new chairman.
Robert H. I feel privileged to succeed Ted Bauer, who recently retired
Graham, from the funds' board and will soon retire as A I M
Chairman of Management Group's chairman after a long, successful career
the Board of in the investment industry. Ted has always shown the highest
THE FUND degree of integrity and commitment to excellence, and I have
APPEARS HERE] 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 GLOBAL RESOURCES FUND
<PAGE> 4
ANNUAL REPORT / MANAGERS' OVERVIEW
AIM GLOBAL RESOURCES FUND CONCENTRATES ON ENERGY
HOW DID AIM GLOBAL RESOURCES FUND PERFORM DURING THE FISCAL YEAR?
For the fiscal year ended October 31, 2000, the fund's Class A, Class B and
Class C shares returned 0.74%, 0.34% and 0.34%, respectively. Those performance
figures are at net asset value, that is, excluding sales charges. By contrast,
the fund's benchmark index, the MSCI AC World Index, returned 0.85% for the
fiscal year.
The fund's net assets totaled $26.8 million at the close of the fiscal year.
WHAT WERE THE MAJOR TRENDS IN THE FINANCIAL MARKETS?
U.S. stock markets were volatile for most of 2000, with significant sell-offs in
March through May and again in August through October. In the spring, investors
worried that the Federal Reserve Board (the Fed) would continue raising interest
rates to slow torrid economic growth and to forestall inflation. The Fed raised
the federal funds rate (the rate banks charge one another for overnight loans)
from 6.0% to 6.5% in May--the sixth increase since June 1999. But with data
showing that economic growth was slowing and that inflation was in check, the
Fed kept rates unchanged at its June, August and October meetings.
Early in 2000, investors became concerned that many technology stocks that
had propelled the markets higher in 1999 might have become overvalued. In late
summer and fall, rising oil prices and Middle East tensions made investors
skittish, sparking a second major stock-market sell-off. Investors also became
concerned about a string of corporate earnings warnings and disappointing
third-quarter earnings announcements by a number of major corporations. Higher
oil prices and a weak euro (the common currency adopted in 1999 by 11 European
nations) negatively affected corporate profits.
WHAT WERE THE MAJOR TRENDS IN THE ENERGY SECTOR?
Despite four production increases by OPEC member nations in 2000, oil prices
remained high at the close of the fiscal year. Indeed, the U.S. Energy
Information Administration reported that oil prices hit 10-year highs during the
third quarter, and that natural-gas prices averaged $4.48 per million BTUs, up
from $2.55 last year.
For several reasons, OPEC production increases seem not to have had much of
an effect in lowering world oil prices. First, production increases of 3.8
million barrels per day had little effect in a world that consumes roughly 76
million barrels per day. Second, Saudi Arabia is the only nation with any
significant additional production capacity. Third, Iraqi threats to withhold its
2.3 million barrels per day of exports from world markets created fears in
commodities markets of possible supply disruptions. And fourth, U.S. refining
capacity steadily declined in the 1980s and 1990s--meaning that even if oil
production were increased, processing bottlenecks could prevent it from reaching
end users.
Leading economists as well as the Fed remain concerned about the potential
effects of higher energy prices on the U.S. economy. In addition to cutting into
corporate profits, higher energy prices represent a stealth tax on consumers,
who could cut back on spending or demand higher wages as a means of paying
higher gasoline prices and higher home-heating bills.
HOW DID YOU MANAGE THE FUND DURING THE FISCAL YEAR?
The fund entered 2000 almost evenly exposed to the basic-materials and energy
sectors. But as oil prices increased and as metals and forest-products stocks
underperformed, we undertook a strategic shift, moving from a broadly
diversified natural-resources portfolio to one dominated by energy stocks. For
example, we moved out of smaller European chemical companies and into North
American-based oil and gas stocks.
The fund did not initially hold many oil-company stocks because they had not
demonstrated significant earnings momentum. That adversely affected fund
performance. At the close of the fiscal year, however, all the fund's top 10
holdings were energy-related. Because we believe that the energy sector now has
significant earnings momentum, we have selected stocks within that sector that
we believe have the strongest earnings-growth potential.
--------------------------------------------------------------------------------
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 read-
ing 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 GLOBAL RESOURCES FUND
2
<PAGE> 5
ANNUAL REPORT / MANAGERS' OVERVIEW
PORTFOLIO COMPOSITION
As of 10/31/00, based on total net assets
<TABLE>
<CAPTION>
=================================================================================================================================
TOP 10 EQUITY HOLDINGS TOP 10 INDUSTRIES TOP COUNTRIES
---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1. Enron Corp. 6.03% 1. Oil & Gas (Exploration & Production) 32.44% 1. United States 65.67%
2. BP Prudhoe Bay Royalty Trust 4.50 2. Natural Gas 16.66 2. Canada 19.92
3. Dynegy Inc. 4.32 3. Oil & Gas (Drilling & Equipment) 9.59 3. France 3.74
4. Talisman Energy Inc. 4.10 4. Oil (International Integrated) 5.89 4. Denmark 2.30
5. Anadarko Petroleum Corp. 3.58 5. Oil (Domestic Integrated) 5.70 5. United Kingdom 1.77
6. EOG Resources Inc. 3.13 6. Electrical Equipment 3.52 6. Belgium 1.16
7. Stuart Energy Systems 3.10 7. Engineering & Construction 3.10 7. Ireland 1.12
8. Apache Corp. 3.09 8. Electric Companies 2.62
9. Chevron Corp. 3.06 9. Electronics (Instrumentation) 2.33
10. Conoco Inc. - Class B 2.87 10. Manufacturing (Specialized) 2.30
The fund's portfolio composition is subject to change, and there is no assurance
that the fund will continue to hold any particular security.
=================================================================================================================================
</TABLE>
Additionally, we sharply increased the fund's utilities holdings--from less
than 3% at the end of 1999 to roughly 18% at the close of the fiscal year.
Within the utilities sector, we believe that unregulated utilities will continue
to perform strongly. The fund now holds the stocks of several natural-gas
producers and marketers that are well positioned to take advantage of continued
strong natural-gas prices.
WHAT WERE SOME OF THE FUND'S TOP HOLDINGS?
At the close of the fiscal year, the fund's top holdings included:
o Enron-the number-one buyer and seller of natural gas and the leading U.S.
wholesale power marketer. Enron markets and trades other commodities,
including fiber-optic bandwidth; operates a gas-pipeline system in the
United States; provides energy consulting and construction and engineering
services; and is building a nationwide fiber-optic network.
o Dynegy-which markets and trades electricity, natural gas, coal and other
energy products in the United States, the United Kingdom and throughout
continental Europe. The company, which invests in power projects, has formed
alliances with utility companies to sell energy in deregulated markets.
o EOG Resources-an independent oil and gas company. EOG explores for,
develops, produces and markets oil and natural gas. With 3.2 trillion cubic
feet of proven natural-gas reserves, the company operates in the United
States, Canada and Trinidad.
o Apache-an oil and gas exploration and production company with onshore and
offshore operations in Australia, China, Egypt and Poland and throughout
North America. The company has proven reserves of more than 860 million
barrels of oil equivalent, about half of which is natural gas.
WHAT IS YOUR OUTLOOK FOR THE FUTURE?
We remain cautiously optimistic about the direction of the U.S. economy. While
economic growth is slowing, the economy continues to grow at a sustainable pace.
Unemployment dropped to 3.9% in September--matching a 30-year low. Consumer
spending continues to grow, albeit at a somewhat more subdued pace than last
year. Corporate profits, while declining, remain impressive; indeed,
fourth-quarter profits among S&P 500 companies are expected to grow from
year-ago levels. Interest rates seem to have stabilized as the Fed has taken a
respite from its string of interest-rate increases, which have roiled the
markets for more than a year.
We also remain cautiously optimistic about the continued strength of energy
prices. Oil prices in the $22 to $28 per-barrel range seem likely for the
foreseeable future. OPEC members appear intent on preventing an oil-price
collapse such as occurred in late 1998 and early 1999, when oil sank to $10 per
barrel. At the same time, they realize that soaring oil prices could result in
worldwide recession, and they appear ready to adjust production as needed to
prevent that from occurring.
See important fund and index disclosures inside front cover.
AIM GLOBAL RESOURCES FUND
3
<PAGE> 6
ANNUAL REPORT / PERFORMANCE HISTORY
YOUR FUND'S LONG-TERM PERFORMANCE
RESULTS OF A $10,000 INVESTMENT
AIM GLOBAL RESOURCES FUND VS. BENCHMARK INDEX
5/31/94-10/31/00
================================================================================
AIM GLOBAL AIM GLOBAL
RESOURCES RESOURCES
FUND, FUND,
CLASS A CLASS B
DATE SHARES SHARES MSCI ALL COUNTRY WORLD INDEX
--------------------------------------------------------------------------------
5/94 9,525 10,000 10,000
10/94 10,342 10,831 10,574.6
4/95 9,441 9,862 10,842.9
10/95 9,558 9,959 11,327.7
4/96 13,235 13,755 12,853.6
10/96 14,627 15,176 13,095.3
4/97 12,370 12,793 14,176.5
10/97 17,938 18,508 15,156.9
4/98 14,014 14,430 17,895
10/98 98,62 10,132 17,090.9
4/99 11,348 11,621 20,596
10/99 10,925 11,159 21,604.2
4/00 10,934 11,141 23,348.3
10/00 $11,006 $11,101 $21,788
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 Class B shares to a benchmark index.
It is intended to give you an idea of how your fund performed compared to this
index over the period 5/31/94-10/31/00.
It is important to understand the differences between your fund and this
index. An index measures the 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.
Keep in mind that the MSCI All Country Index is a broad market index that
encompasses stocks from many sectors. The fund invests only in natural resources
stocks.
AVERAGE ANNUAL TOTAL RETURNS
As of 10/31/00, including sales charges
================================================================================
CLASS A SHARES
Inception (5/31/94) 1.50%
5 Years 1.87
1 Year -4.01*
*0.74%, excluding sales charges
CLASS B SHARES
Inception (5/31/94) 1.78%
5 Years 2.01
1 Year -4.66*
*0.34%, excluding CDSC
CLASS C SHARES
Inception (3/1/99) 10.88%
1 Year -0.66*
*0.34%, excluding CDSC
================================================================================
YOUR FUND'S TOTAL RETURN INCLUDES SALES CHARGES, EXPENSES AND MANAGEMENT FEES.
THE PERFORMANCE OF THE FUND'S CLASS C SHARES WILL DIFFER FROM THAT OF ITS CLASS
A AND CLASS B SHARES DUE TO DIFFERING FEES AND EXPENSES. FOR FUND PERFORMANCE
CALCULATIONS AND A DESCRIPTION OF THE INDEX CITED ON THIS PAGE, PLEASE SEE THE
INSIDE FRONT COVER.
AIM GLOBAL RESOURCES FUND
4
<PAGE> 7
ANNUAL REPORT / FOR CONSIDERATION
[ART WORK]
CHOOSE YOUR INVESTMENT PALETTE
No two pieces of art are exactly alike. Just as an artist may use different
paints to create a piece, so does an investor use different kinds of investments
to create a portfolio. And as with art, tastes can change over time--most
investors have different goals at different stages in their lives, as well as
varying tolerance for risk. The biggest advantage mutual funds offer is the
potential for diversification. Providing funds with assorted objectives and
goals allows investors to shape their portfolios to their specific needs and to
spread their risk over several different funds, rather than painting their
portfolios all one color.
GROWTH VS. INCOME
If you look at the list of AIM's retail mutual funds on the back of your fund
report, you'll notice that they are divided into different types. Two that
frequently appear are growth and income. Common stock is normally the growth
component of a mutual fund with growth as a primary or secondary objective.
Bonds are typically the income components of a mutual fund with income as a
primary or secondary objective.
Let's take a closer look at the categories into which AIM's retail mutual
funds are divided. Keep in mind that funds listed under the same category don't
necessarily have the same kind of investment strategy or portfolio, even if they
have the same objective.
DOMESTIC MUTUAL FUNDS
GROWTH FUNDS
Growth funds typically invest in common stocks of companies whose businesses are
growing. Growth companies tend to reinvest their profits toward expansion of
their potential to produce greater returns instead of paying dividends. So
growth mutual funds focus on generating capital gains--increasing the value of
the stocks they hold--rather than current income, which means they generally
don't pay regular income dividends. Growth funds usually do, however, make one
capital-gains distribution per year, when there are gains.
An increase over time in the value of a growth fund's portfolio means the
fund's value, or share price, increases over time also. Shareholders in a growth
fund, then, make money by selling their shares for more than they paid for them.
Of course, the opposite is also true--shareholders can lose money by selling
their shares for less than they paid for them. Growth funds usually range from
moderate to very aggressive, depending on the size and types of companies in
which they invest.
GROWTH AND INCOME FUNDS
A growth and income fund generally invests in common and preferred stocks and
bonds of older, more established companies that have a longer track record of
growth and paying dividends.
A typical growth and income mutual fund will pay quarterly or annual income
dividends to its shareholders. (Monthly dividends are not common.) In this way,
growth and income funds can potentially provide long-term growth of investments
and also current income. These funds tend to be more conservative than growth
funds.
INCOME FUNDS
Income funds are generally designed to provide high current income rather than
long-term growth. To that end, income funds usually invest chiefly in
interest-paying corporate and government bonds. They may also own stocks of
companies that pay regular dividends. Some income funds are more aggressive than
others. The aggressiveness of a particular fund depends not only on the kinds of
securities in which it invests, but also on the fund's sector allocation and
maturity structure.
For example, Treasury securities are considered a relatively safe investment
because they are guaranteed by the U.S. government. However, lower risk also
means lower return potential. On the other hand, lower-rated corporate bonds,
often called junk bonds, involve more risk because they are not guaranteed--they
are only as good as the companies that issue them. But the added risk also means
higher return potential.
[ART WORK]
AIM GLOBAL RESOURCES FUND
5
<PAGE> 8
ANNUAL REPORT / FOR CONSIDERATION
Income funds are considered more conservative and are suited for investors
seeking income rather than growth.
TAX-FREE INCOME OR MUNICIPAL FUNDS
These funds provide shareholders with current income that is tax-exempt at some
level, depending on the securities in which they invest. So municipal mutual
funds appeal to investors who are looking to reduce income that would otherwise
be subject to tax. Municipal bonds or notes, which are issued by state or local
governments, are generally exempt from federal taxes. Federal securities, like
Treasury bonds, are usually exempt from state taxes. And then there are some
securities that are exempt from both federal and state taxes.(1)
MONEY MARKET FUNDS
A money market fund is one of the safest types of mutual funds available because
its main goal is preserving your investment while paying current income in the
form of interest. As a result, these funds tend to appeal to investors looking
for safety, liquidity and some income from their investment. Money market funds
invest in high-quality short-term securities such as commercial paper and U.S.
government agency securities. Although money market funds are not guaranteed or
insured by the U.S. government, the securities they hold are less risky than
other types of fixed-income securities. The trade-off for safety of principal
investment is a lower rate of return.(2)
INTERNATIONAL AND GLOBAL MUTUAL FUNDS
INTERNATIONAL GROWTH FUNDS
An international growth fund has the same objective as a domestic growth fund,
except it invests in stocks of companies located outside the United States. Like
their domestic counterparts, international growth funds tend to pay
distributions in the form of capital gains rather than dividends. An
international growth mutual fund might invest in a particular country, region or
continent depending on the investment strategy shown in its prospectus.
International funds carry different risks than domestic funds because most
foreign markets are not as established as the markets in the United States.
Other risks include changes in the value of the U.S. dollar compared to foreign
currencies, accounting differences, political risks and foreign regulatory
differences.
GLOBAL GROWTH, GLOBAL GROWTH AND INCOME, AND GLOBAL INCOME FUNDS
These funds are similar to their domestic equivalents in terms of their goals
and the income distributions they pay. Global funds are comparable to
international funds in that they can invest in stocks of companies outside the
United States. But global funds can also invest substantially in U.S. stocks;
international funds generally do not. The amount of a global fund's portfolio
that can be invested in the United States varies greatly from fund to fund,
according to a fund's prospectus. Global funds carry the same risks as
international funds.
SPECIALIZED FUNDS
THEME FUNDS
Theme or sector funds invest primarily in a particular industry or sector of the
economy, either domestically or globally. Theme funds are required by prospectus
to invest a certain percentage of their assets in their industry or sector of
choice under normal market conditions. As a result, theme funds present greater
risk and potential reward than more diversified funds. The types of securities
held by a theme fund determine its goal of growth and/or income.
--------------------------------------------------------------------------------
TYPES OF FUND DISTRIBUTIONS
INCOME DIVIDENDS are paid from dividends and/or interest from securities in a
fund's portfolio. For example, if a company in which a mutual fund owns stock
distributes some of its earnings to its shareholders as a dividend, the fund
passes on those earnings to its own shareholders. Income dividends are usually
taxed as ordinary income.
CAPITAL GAINS represent the net profit realized from the growth in value of the
holdings in a fund's portfolio. These distributions are usually made once per
year. There are two types of capital gains:
o Short-term capital gains are paid from net profits gained when a mutual fund
sells stocks or bonds it has held for less than a year. Short-term capital gains
are taxed as ordinary income.
o Long-term capital gains are paid from net profits gained when a mutual fund
sells stocks or bonds it has held for more than a year. Long-term capital gains
are usually taxed at the capital-gains rate, which is typically lower than
ordinary income-tax rates.
--------------------------------------------------------------------------------
(1) Investors in tax-free income funds still have a risk of incurring taxes on
capital-gains distributions, for example, so it's wise to see your tax advisor
before investing in such funds.
(2) There is no guarantee that a money market fund will be able to maintain a
stable net asset value of $1.00 per share.
See the back cover for a complete list of AIM's retail mutual funds. For more
information about your fund's objective, read your fund prospectus. 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.
AIM GLOBAL RESOURCES FUND
6
<PAGE> 9
SCHEDULE OF INVESTMENTS
October 31, 2000
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
DOMESTIC COMMON STOCKS-65.67%
AUTO PARTS & EQUIPMENT-1.16%
IMPCO Technologies, Inc.(a) 15,800 $ 311,062
=============================================================
CHEMICALS-1.59%
Du Pont (E. I.) de Nemours & Co. 4,669 211,856
-------------------------------------------------------------
Solutia Inc. 16,800 214,200
=============================================================
426,056
=============================================================
ELECTRIC COMPANIES-2.62%
Avista Corp. 25,000 560,937
-------------------------------------------------------------
Southern Energy, Inc.(a) 5,200 141,700
=============================================================
702,637
=============================================================
ELECTRICAL EQUIPMENT-3.52%
Active Power, Inc.(a) 6,300 240,187
-------------------------------------------------------------
Capstone Turbine Corp.(a) 3,600 199,800
-------------------------------------------------------------
Electric Fuel Corp.(a) 55,000 501,875
=============================================================
941,862
=============================================================
ELECTRONICS (INSTRUMENTATION)-2.33%
Hydrogencis Corp.(a) 8,800 106,150
-------------------------------------------------------------
Proton Energy Systems, Inc.(a) 19,400 518,950
=============================================================
625,100
=============================================================
NATURAL GAS-15.46%
Dynegy Inc.-Class A 25,000 1,157,812
-------------------------------------------------------------
El Paso Energy Corp. 10,000 626,875
-------------------------------------------------------------
Enron Corp. 19,700 1,616,631
-------------------------------------------------------------
Equitable Resources, Inc. 8,500 493,000
-------------------------------------------------------------
TNPC, Inc.(a) 15,000 249,375
=============================================================
4,143,693
=============================================================
OIL & GAS (DRILLING & EQUIPMENT)-7.60%
BJ Services Co.(a) 12,400 650,225
-------------------------------------------------------------
Chiles Offshore, Inc.(a) 13,000 208,000
-------------------------------------------------------------
Cooper Cameron Corp.(a) 7,800 425,100
-------------------------------------------------------------
Oceaneering International, Inc.(a) 15,500 217,969
-------------------------------------------------------------
RPC, Inc. 5,200 64,675
-------------------------------------------------------------
Schlumberger Ltd. 5,500 418,688
-------------------------------------------------------------
Transocean Sedco Forex Inc. 952 50,456
=============================================================
2,035,113
=============================================================
OIL & GAS (EXPLORATION &
PRODUCTION)-20.07%
Anadarko Petroleum Corp. 15,000 960,750
-------------------------------------------------------------
Apache Corp. 15,000 829,688
-------------------------------------------------------------
Barrett Resources Corp.(a) 15,600 567,450
-------------------------------------------------------------
BP Prudhoe Bay Royalty Trust 100,000 1,206,250
-------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
OIL & GAS (EXPLORATION &
PRODUCTION)-(CONTINUED)
Cross Timbers Oil Co. 30,000 $ 564,375
-------------------------------------------------------------
EOG Resources, Inc. 21,300 838,688
-------------------------------------------------------------
Triton Energy Ltd.(a) 13,400 412,050
=============================================================
5,379,251
=============================================================
OIL & GAS (REFINING & MARKETING)-1.85%
Valero Energy Corp. 15,000 495,938
=============================================================
OIL (DOMESTIC INTEGRATED)-2.87%
Conoco Inc.-Class B 28,326 770,113
=============================================================
OIL (INTERNATIONAL INTEGRATED)-5.89%
Chevron Corp. 10,000 821,250
-------------------------------------------------------------
Exxon Mobil Corp. 8,492 757,380
=============================================================
1,578,630
=============================================================
PAPER & FOREST PRODUCTS-0.71%
International Paper Co. 5,200 190,450
=============================================================
Total Domestic Common Stocks (Cost
$16,236,311) 17,599,905
=============================================================
FOREIGN STOCKS & OTHER EQUITY
INTERESTS-30.01%
BELGIUM-1.16%
Solvay S.A. (Chemicals-Diversified) 6,100 310,606
=============================================================
CANADA-19.92%
Alberta Energy Co. Ltd. (Oil &
Gas-Exploration & Production) 20,000 736,594
-------------------------------------------------------------
Anderson Exploration Ltd.
(Oil-Domestic Integrated)(a) 30,000 549,990
-------------------------------------------------------------
Baytex Energy Ltd. (Oil &
Gas-Exploration & Production)(a) 30,000 225,889
-------------------------------------------------------------
Cypress Energy Inc.-Class A (Oil &
Gas-Exploration & Production)(a) 75,000 356,020
-------------------------------------------------------------
European Goldfields Ltd. (Metals
Mining)(a) 44,000 50,416
-------------------------------------------------------------
Nexen Inc. (Oil & Gas-Exploration &
Production) 17,700 424,740
-------------------------------------------------------------
Petro-Canada (Oil-Domestic Integrated) 10,000 209,520
-------------------------------------------------------------
Placer Dome Inc. (Gold & Precious
Metals Mining) 64,700 531,203
-------------------------------------------------------------
Stuart Energy Systems (Engineering &
Construction)(a) 55,000 831,860
-------------------------------------------------------------
Talisman Energy Inc. (Oil &
Gas-Exploration & Production)(a) 35,000 1,098,835
-------------------------------------------------------------
Westcoast Energy Inc. (Natural Gas) 14,500 322,792
=============================================================
5,337,859
=============================================================
DENMARK-2.30%
Vestas Wind Systems A.S.
(Manufacturing-Specialized) 11,400 617,488
=============================================================
</TABLE>
7
<PAGE> 10
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
FRANCE-3.74%
Air Liquide S.A.
(Chemicals-Specialty)(a) 3,960 $ 468,139
-------------------------------------------------------------
Bouygues Offshore S.A.-ADR (Oil &
Gas-Drilling & Equipment) 21,700 534,362
=============================================================
1,002,501
=============================================================
IRELAND-1.12%
Jefferson Smurfit Group PLC-ADR
(Containers & Packaging-Paper) 16,500 299,063
=============================================================
UNITED KINGDOM-1.77%
Enterprise Oil PLC (Oil &
Gas-Exploration & Production) 60,000 474,608
=============================================================
Total Foreign Stocks & Other
Equity Interests (Cost
$7,854,729) 8,042,125
=============================================================
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
MONEY MARKET FUNDS-4.39%
STIC Liquid Assets Portfolio(b) 588,613 $ 588,613
-------------------------------------------------------------
STIC Prime Portfolio(b) 588,613 588,613
=============================================================
Total Money Market Funds (Cost
$1,177,226) 1,177,226
=============================================================
TOTAL INVESTMENTS-100.07% (Cost
$25,268,266) 26,819,256
=============================================================
LIABILITIES LESS OTHER ASSETS-(0.07%) (19,161)
=============================================================
NET ASSETS-100.00% $26,800,095
_____________________________________________________________
=============================================================
</TABLE>
Investment Abbreviations:
ADR - American Depositary Receipt
Notes to Schedule of Investments:
(a) Non-income producing security.
(b) The money market fund and the Fund are affiliated by having the same
investment advisor.
See Notes to Financial Statements.
8
<PAGE> 11
STATEMENT OF ASSETS AND LIABILITIES
October 31, 2000
<TABLE>
<S> <C>
ASSETS:
Investments, at market value (cost $25,268,266) $26,819,256
------------------------------------------------------------
Foreign currencies, at value (cost $227,873) 228,354
------------------------------------------------------------
Receivables for:
Fund shares sold 2,094
------------------------------------------------------------
Dividends 15,263
------------------------------------------------------------
Collateral for securities loaned 326,069
------------------------------------------------------------
Other assets 8,648
============================================================
Total assets $27,399,684
============================================================
LIABILITIES:
Payables for:
Investments purchased 105,600
------------------------------------------------------------
Fund shares reacquired 76,704
------------------------------------------------------------
Collateral upon return of securities loaned 326,069
------------------------------------------------------------
Accrued advisory fees 1,600
------------------------------------------------------------
Accrued administrative services fees 4,098
------------------------------------------------------------
Accrued distribution fees 19,441
------------------------------------------------------------
Accrued trustees' fees 742
------------------------------------------------------------
Accrued transfer agent fees 13,920
------------------------------------------------------------
Accrued operating expenses 51,415
============================================================
Total liabilities 599,589
============================================================
Net assets applicable to shares outstanding $26,800,095
____________________________________________________________
============================================================
NET ASSETS:
Class A $12,637,530
____________________________________________________________
============================================================
Class B $13,709,666
____________________________________________________________
============================================================
Class C $ 452,899
____________________________________________________________
============================================================
SHARES OUTSTANDING, $0.01 PAR VALUE PER SHARE:
Class A 1,033,899
____________________________________________________________
============================================================
Class B 1,154,463
____________________________________________________________
============================================================
Class C 38,132
____________________________________________________________
============================================================
Class A:
Net asset value and redemption price per
share $ 12.22
------------------------------------------------------------
Offering price per share:
(Net asset value of $12.22 divided by
95.25%) $ 12.83
____________________________________________________________
============================================================
Class B:
Net asset value and offering price per share $ 11.88
____________________________________________________________
============================================================
Class C:
Net asset value and offering price per share $ 11.88
____________________________________________________________
============================================================
</TABLE>
STATEMENT OF OPERATIONS
For the year ended October 31, 2000
<TABLE>
<S> <C>
INVESTMENT INCOME:
Dividends (net of foreign withholding tax of
$20,402) $ 538,824
-----------------------------------------------------------
Dividends from affiliated money market funds 112,419
-----------------------------------------------------------
Interest 1,520
-----------------------------------------------------------
Security lending income 13,297
===========================================================
Total investment income 666,060
===========================================================
EXPENSES:
Advisory fees 296,957
-----------------------------------------------------------
Administrative services fees 50,000
-----------------------------------------------------------
Custodian fees 13,478
-----------------------------------------------------------
Distribution fees -- Class A 69,673
-----------------------------------------------------------
Distribution fees -- Class B 163,259
-----------------------------------------------------------
Distribution fees -- Class C 2,711
-----------------------------------------------------------
Transfer agent fees 154,921
-----------------------------------------------------------
Professional fees 100,080
-----------------------------------------------------------
Trustees' fees 5,512
-----------------------------------------------------------
Other 81,185
===========================================================
Total expenses 937,776
===========================================================
Less: Fees waived (242,924)
-----------------------------------------------------------
Expenses paid indirectly (510)
===========================================================
Net expenses 694,342
===========================================================
Net investment income (loss) (28,282)
===========================================================
REALIZED AND UNREALIZED GAIN (LOSS) FROM
INVESTMENT SECURITIES AND FOREIGN CURRENCIES:
Net realized gain (loss) from:
Investment securities (359,827)
-----------------------------------------------------------
Foreign currencies (80,004)
===========================================================
(439,831)
===========================================================
Change in net unrealized appreciation
(depreciation) of:
Investment securities 603,678
-----------------------------------------------------------
Foreign currencies (630)
===========================================================
603,048
===========================================================
Net gain from investment securities and foreign
currencies 163,217
===========================================================
Net increase in net assets resulting from
operations $ 134,935
___________________________________________________________
===========================================================
</TABLE>
See Notes to Financial Statements.
9
<PAGE> 12
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 (loss) $ (28,282) $ (15,497)
------------------------------------------------------------------------------------------
Net realized gain (loss) from investment securities and
foreign currencies (439,831) (1,210,414)
------------------------------------------------------------------------------------------
Change in net unrealized appreciation of investment
securities and foreign currencies 603,048 5,873,517
==========================================================================================
Net increase in net assets resulting from operations 134,935 4,647,606
==========================================================================================
Share transactions-net:
Class A (3,338,400) (5,463,882)
------------------------------------------------------------------------------------------
Class B (6,401,000) (11,256,193)
------------------------------------------------------------------------------------------
Class C 428,516 43,424
------------------------------------------------------------------------------------------
Advisor Class* (22,444) (5,519,490)
==========================================================================================
Net increase (decrease) in net assets (9,198,393) (17,548,535)
==========================================================================================
NET ASSETS:
Beginning of year 35,998,488 53,547,023
==========================================================================================
End of year $ 26,800,095 $ 35,998,488
__________________________________________________________________________________________
==========================================================================================
NET ASSETS CONSIST OF:
Shares of beneficial interest $ 48,851,091 $ 58,323,182
------------------------------------------------------------------------------------------
Undistributed net realized gain (loss) from investment
securities and foreign currencies (23,601,065) (23,271,715)
------------------------------------------------------------------------------------------
Unrealized appreciation of investment securities and
foreign currencies 1,550,069 947,021
==========================================================================================
$ 26,800,095 $ 35,998,488
__________________________________________________________________________________________
==========================================================================================
</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.
10
<PAGE> 13
NOTES TO FINANCIAL STATEMENTS
October 31, 2000
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES
AIM Global Resources 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 long-term growth of capital. The Fund
invests substantially all of its investable assets in Global Resources 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, 2000, all of the shares of beneficial interest of the Portfolio were
owned by either the Fund or an affiliated INVESCO entity.
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 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 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
$28,282, undistributed net realized gains (losses) increased by $110,481 and
paid-in capital decreased by $138,763 as a result of differing 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
11
<PAGE> 14
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 $23,578,846 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 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 Portfolio may enter into a foreign currency contract to attempt to
minimize the risk to the Portfolio from adverse changes in the relationship
between currencies. The Portfolio may also enter into a foreign currency
contract for the purchase or sale of a security denominated in a foreign
currency in order to "lock in" the U.S. dollar price of that security. The
Portfolio could be exposed to risk if counterparties to the contracts are
unable to meet the terms of their contracts or if the value of the foreign
currency changes unfavorably.
G. Expenses -- Distribution expenses directly attributable to a class of shares
are charged to that class' operations. All other expenses which are
attributable to more than one class are allocated among the classes.
NOTE 2-ADVISORY FEES AND OTHER TRANSACTIONS WITH AFFILIATES
A I M Advisors, Inc. ("AIM") is the Fund's investment manager and administrator.
The Fund pays AIM investment management and administration fees at an annual
rate of 0.975% on the first $500 million of the Fund's average daily net assets,
plus 0.95% on the next $500 million of the Fund's average daily net assets, plus
0.925% on the next $500 million of the Fund's average daily net assets, plus
0.90% on the Fund's average daily net assets exceeding $1.5 billion. AIM has
contractually agreed to limit 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 $242,924.
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 and the Portfolio. 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 $101,769 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 $69,673, $163,259
and $2,711, respectively, as compensation under the Plans.
AIM Distributors received commissions of $4,984 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 $516 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 $400 and reductions in custodian
fees of $110 under expense offset arrangements which resulted in a reduction of
the Fund's total expenses of $510.
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
12
<PAGE> 15
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 no less than the
market value, determined daily, of the loaned securities. Such collateral will
be cash or debt securities issued or guaranteed by the U.S. Government or any of
its agencies. Cash collateral pursuant to these loans is invested in short-term
money market instruments or affiliated money market funds. Lending securities
entails a risk of loss to the Fund if and to the extent that the market value of
the securities loaned were to increase and the 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 $319,675 were on
loan to brokers. The loans were secured by cash collateral of $326,069 received
by the Portfolio. For the year ended October 31, 2000, the Portfolio received
fees of $13,297 for securities lending.
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, 2000 was
$29,894,843 and $38,725,160, 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 $ 3,174,505
---------------------------------------------------------
Aggregate unrealized (depreciation) of
investment securities (1,645,733)
=========================================================
Net unrealized appreciation of investment
securities $ 1,528,772
_________________________________________________________
=========================================================
Cost of investments for tax purposes is
$25,290,484
</TABLE>
13
<PAGE> 16
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 434,021 $ 5,508,796 1,483,872 $ 16,786,501
---------------------------------------------------------------------------------------------------------------------
Class B 255,733 3,154,314 623,453 7,240,416
---------------------------------------------------------------------------------------------------------------------
Class C* 77,757 964,884 10,161 124,881
---------------------------------------------------------------------------------------------------------------------
Advisor Class** 1,495 269,584 40,141 464,770
=====================================================================================================================
Conversion of Advisor Class shares to Class A shares***:
Class A 16,352 194,590 -- --
---------------------------------------------------------------------------------------------------------------------
Advisor Class** (16,069) (194,590) -- --
=====================================================================================================================
Reacquired:
Class A (708,505) (9,041,786) (1,968,466) (22,250,382)
---------------------------------------------------------------------------------------------------------------------
Class B (792,579) (9,555,314) (1,629,584) (18,496,610)
---------------------------------------------------------------------------------------------------------------------
Class C* (43,052) (536,368) (6,734) (81,457)
---------------------------------------------------------------------------------------------------------------------
Advisor Class** (7,719) (97,438) (477,178) (5,984,260)
=====================================================================================================================
(782,566) $(9,333,328) (1,924,335) $(22,196,141)
_____________________________________________________________________________________________________________________
=====================================================================================================================
</TABLE>
* Class C shares commenced sales on March 1, 1999.
** Advisor Class share activity for the period November 1, 1999 through
February 11, 2000 (date of conversion).
*** Effective as of the close of business February 11, 2000, pursuant to
approval by the Board of Trustees on November 3, 1999, all outstanding
shares of Advisor Class shares were converted to Class A shares of the fund.
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(a) 1998(a) 1997(a) 1996(a)
------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 12.12 $ 10.95 $ 20.65 $ 17.43 $ 11.44
-------------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income (loss) 0.02 0.02 (0.11) (0.25) (0.24)
-------------------------------------------------------------------------------------------------------------------
Net gains (losses) on securities (both realized and
unrealized) 0.08 1.15 (8.91) 4.08 6.28
===================================================================================================================
Total from investment operations 0.10 1.17 (9.02) 3.83 6.04
===================================================================================================================
Less distributions:
Dividends from net investment income -- -- (0.19) -- (0.04)
-------------------------------------------------------------------------------------------------------------------
Distributions from net realized gains -- -- (0.49) (0.61) (0.01)
===================================================================================================================
Total distributions -- -- (0.68) (0.61) (0.05)
===================================================================================================================
Net asset value, end of period $ 12.22 $ 12.12 $ 10.95 $ 20.65 $ 17.43
___________________________________________________________________________________________________________________
===================================================================================================================
Total return(b) 0.74% 10.68% (45.02)% 22.64% 53.04%
___________________________________________________________________________________________________________________
===================================================================================================================
Ratios/supplemental data:
Net assets, end of period (000s omitted) $12,638 $15,664 $19,463 $69,975 $48,729
___________________________________________________________________________________________________________________
===================================================================================================================
Ratio of expenses to average net assets:
With fee waivers 2.00%(c) 2.00% 1.98% 2.03% 2.20%
-------------------------------------------------------------------------------------------------------------------
Without fee waivers 2.80%(c) 2.30% 2.29% 2.13% 2.30%
===================================================================================================================
Ratio of net investment income (loss) to average net assets 0.18%(c) 0.19% (0.75)% (1.41)% (1.55)%
___________________________________________________________________________________________________________________
===================================================================================================================
Portfolio turnover rate 105% 123% 201% 321% 94%
___________________________________________________________________________________________________________________
===================================================================================================================
</TABLE>
(a) Calculated using average shares outstanding.
(b) Does not include sales charges.
(c) Ratios are based on average daily net assets of $13,934,536.
14
<PAGE> 17
NOTE 8-FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
CLASS B
---------------------------------------------------
YEAR ENDED OCTOBER 31,
---------------------------------------------------
2000(a) 1999(a) 1998(a) 1997(a) 1996(a)
------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $11.84 $10.75 $20.37 $17.29 $ 11.36
-------------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income (loss) (0.04) (0.04) (0.18) (0.33) (0.31)
-------------------------------------------------------------------------------------------------------------------
Net gains (losses) on securities (both realized and
unrealized) 0.08 1.13 (8.76) 4.02 6.25
===================================================================================================================
Total from investment operations 0.04 1.09 (8.94) 3.69 5.94
===================================================================================================================
Less distributions:
Dividends from net investment income -- -- (0.19) -- --
-------------------------------------------------------------------------------------------------------------------
Distributions from net realized gains -- -- (0.49) (0.61) (0.01)
===================================================================================================================
Total distributions -- -- (0.68) (0.61) (0.01)
===================================================================================================================
Net asset value, end of period $11.88 $11.84 $10.75 $20.37 $ 17.29
___________________________________________________________________________________________________________________
===================================================================================================================
Total return(b) 0.34% 10.14% (45.25)% 21.99% 52.39%
___________________________________________________________________________________________________________________
===================================================================================================================
Ratios/supplemental data:
Net assets, end of period (000s omitted) $13,710 $20,019 $28,996 $86,812 $57,749
___________________________________________________________________________________________________________________
===================================================================================================================
Ratio of expenses to average net assets:
With fee waivers 2.50%(c) 2.50% 2.48% 2.53% 2.70%
-------------------------------------------------------------------------------------------------------------------
Without fee waivers 3.30%(c) 2.80% 2.79% 2.63% 2.80%
===================================================================================================================
Ratio of net investment income (loss) to average net assets (0.32)%(c) (0.31)% (1.25)% (1.91)% (2.05)%
___________________________________________________________________________________________________________________
===================================================================================================================
Portfolio turnover rate 105% 123% 201% 321% 94%
___________________________________________________________________________________________________________________
===================================================================================================================
</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 $16,325,863.
<TABLE>
<CAPTION>
CLASS C
----------------------------
MARCH 1, 1999
(DATE SALES
YEAR ENDED COMMENCED) TO
OCTOBER 31, OCTOBER 31,
2000(a) 1999(a)
----------- -------------
<S> <C> <C>
Net asset value, beginning of period $11.84 $10.00
--------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income (loss) (0.04) (0.03)
--------------------------------------------------------------------------------------------
Net gains on securities (both realized and unrealized) 0.08 1.87
============================================================================================
Total from investment operations 0.04 1.84
============================================================================================
Net asset value, end of period $11.88 $11.84
____________________________________________________________________________________________
============================================================================================
Total return(b) 0.34% 18.40%
____________________________________________________________________________________________
============================================================================================
Ratios/supplemental data:
Net assets, end of period (000s omitted) $ 453 $ 41
____________________________________________________________________________________________
============================================================================================
Ratio of expenses to average net assets:
With fee waivers 2.50%(c) 2.50%(d)
--------------------------------------------------------------------------------------------
Without fee waivers 3.30%(c) 2.80%(d)
============================================================================================
Ratio of net investment income (loss) to average net assets (0.32)%(c) (0.31)%(d)
____________________________________________________________________________________________
============================================================================================
Portfolio turnover rate 105% 123%
____________________________________________________________________________________________
============================================================================================
</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 $271,111.
(d) Annualized.
15
<PAGE> 18
REPORT OF INDEPENDENT ACCOUNTANTS
To the Shareholders of AIM Global Resources 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 Resources 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
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
Senior Managing Partner, Chairman and President Suite 100
Plantagenet Capital Houston, TX 77046
Management, LLC (an investment Dana R. Sutton
partnership); 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
TRANSFER AGENT
Robert H. Graham Carol F. Relihan
President and Chief Executive Officer, Vice President and Secretary A I M Fund Services, Inc.
A I M Management Group Inc. P.O. Box 4739
Mary J. Benson Houston, TX 77210-4739
Ruth H. Quigley Assistant Vice President and
Private Investor Assistant Treasurer CUSTODIAN
Sheri Morris State Street Bank and Trust Company
Assistant Vice President and 225 Franklin Street
Assistant Treasurer Boston, MA 02110
Nancy L. Martin COUNSEL TO THE FUND
Assistant Secretary
Kirkpatrick & Lockhart LLP
Ofelia M. Mayo 1800 Massachusetts Avenue, N.W.
Assistant Secretary Washington, D.C. 20036-1800
Kathleen J. Pflueger COUNSEL TO THE TRUSTEES
Assistant Secretary
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>
<PAGE> 20
THE AIM FAMILY OF FUNDS--Registered Trademark--
<TABLE>
<CAPTION>
EQUITY FUNDS
<S> <C> <C>
DOMESTIC EQUITY FUNDS INTERNATIONAL/GLOBAL EQUITY FUNDS A I M Management Group Inc. has provided
leadership in the mutual fund industry since
MORE AGGRESSIVE MORE AGGRESSIVE 1976 and managed approximately $183 billion
in assets for more than eight million
AIM Small Cap Opportunities(1) AIM Latin American Growth shareholders, including individual investors,
AIM Mid Cap Opportunities(2) AIM Developing Markets corporate clients and Financial institutions,
AIM Large Cap Opportunities(3) AIM European Small Company as of September 30, 2000.
AIM Emerging Growth AIM Asian Growth The AIM Family of Funds--Registered
AIM Small Cap Growth(4) AIM Japan Growth Trademark-- is distributed nationwide, and AIM
AIM Aggressive Growth AIM International Emerging Growth today is the eighth-largest mutual fund
AIM Mid Cap Growth AIM European Development complex in the United States in assets under
AIM Small Cap Equity AIM Euroland Growth management, according to Strategic Insight,
AIM Capital Development AIM Global Aggressive Growth an independent mutual fund monitor.
AIM Constellation AIM International Equity AIM is a subsidiary of AMVESCAP PLC, one
AIM Dent Demographic Trends AIM Advisor International Value of the world's largest independent financial
AIM Select Growth AIM Global Trends services companies with $414 billion in
AIM Large Cap Growth AIM Global Growth assets under management as of September 30,
AIM Weingarten 2000.
AIM Mid Cap Equity MORE CONSERVATIVE
AIM Value II
AIM Charter SECTOR EQUITY FUNDS
AIM Value
AIM Blue Chip MORE AGGRESSIVE
AIM Basic Value
AIM Large Cap Basic Value AIM New Technology
AIM Balanced AIM Global Telecommunications and Technology
AIM Advisor Flex AIM Global Resources
AIM Global Financial Services
MORE CONSERVATIVE AIM Global Health Care
AIM Global Consumer Products and Services
AIM Global Infrastructure
AIM Advisor Real Estate
AIM Global Utilities
MORE CONSERVATIVE
</TABLE>
<TABLE>
<CAPTION>
FIXED-INCOME FUNDS
<S> <C>
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)
AIM Intermediate Government MORE CONSERVATIVE
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. GRS-AR-1
