<PAGE> 1
ANNUAL REPORT / OCTOBER 31 2000
AIM GLOBAL INFRASTRUCTURE FUND
[COVER IMAGE]
[AIM LOGO APPEARS HERE]
--Registered Trademark--
<PAGE> 2
[COVER IMAGE]
-------------------------------------
L'ECLUSE DE LA MONNAIE BY PAUL SIGNAC
THROUGHOUT HISTORY, MAJOR INFRASTRUCTURE PROJECTS SUCH AS
BRIDGES, CANALS AND ROADS HAVE BEEN VITAL TO A NATION'S SUCCESS.
NOW, THE DEFINITION OF "INFRASTRUCTURE" HAS EXPANDED TO
INCLUDE TELECOMMUNICATIONS, ELECTRICITY AND HIGH TECHNOLOGY--
THE INTANGIBLE BRICKS AND MORTAR OF THE MODERN ECONOMY.
-------------------------------------
AIM Global Infrastructure Fund is for shareholders who seek long-term growth of
capital. The fund invests in equity securities of companies in established and
emerging economies throughout the world that design, develop or provide products
and services necessary for creating and maintaining a country's infrastructure.
ABOUT FUND PERFORMANCE AND PORTFOLIO DATA THROUGHOUT THIS REPORT:
o AIM Global Infrastructure Fund's performance figures are historical, and
they reflect the reinvestment of distributions and changes in net asset
value.
o Had the advisor not waived fees and expenses during the fiscal year, 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 The fund's average annual total returns (including sales charges) for the
period ended 9/30/00 (the most recent calendar quarter-end) are as follows.
Class A shares, one year, 39.22%; five years, 13.60%; inception (5/31/94),
12.46%. Class B shares, one year, 40.36%; five years, 13.90%; inception
(5/31/94), 12.76%. Class C shares, one year, 44.20%; inception (3/1/99),
32.09%.
o During the fiscal year ended 10/31/00, the fund paid distributions of
$1.9215 per Class A, Class B and Class C share.
o International investing presents certain risks not associated with investing
solely in the United States. These include risks relating to fluctuations in
the value of the U.S. dollar relative to the values of other currencies, the
custody arrangements made for the fund's foreign holdings, differences in
accounting, political risks and the less er 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 its returns may be attributable to its investment in
IPOs, which may have a magnified impact due to its relatively small asset
base. As the fund's assets grow, there is no guarantee that 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 Dow Jones Industrial Average (the Dow) is a price-weighted
average of 30 actively traded blue-chip stocks.
o The unmanaged Lipper Global Fund Index represents an average of the
performance of global funds tracked by Lipper, Inc., an independent mutual
fund performance monitor.
o The unmanaged MSCI All Country (AC) World Index tracks the performance of
approximately 50 countries covered by Morgan Stanley Capital International
that are considered developing 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 NEITHER GUARANTEED
NOR INSURED 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 INFRASTRUCTURE 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
Chairman of in the investment industry. Ted has always shown the highest
the Board of degree of integrity and commitment to excellence, and I have
THE FUND always admired him. I'm also proud to be part of the team
APPEARS HERE] 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 INFRASTRUCTURE FUND
<PAGE> 4
ANNUAL REPORT / MANAGERS' OVERVIEW
AIM GLOBAL INFRASTRUCTURE FUND FAR EXCEEDS INDEXES
MARKET VOLATILITY HAS BEEN MAKING HEADLINES. HOW DID THE FUND DO?
Continuing its exceptional performance, the fund posted excellent results during
the fiscal year ended October 31, 2000. Its total return at net asset value (not
including sales charges) was 25.71% for Class A shares, 25.09% for Class B
shares and 24.94% for Class C shares. The fund greatly outdistanced its indexes,
especially the MSCI AC World Index, which produced a return of just 0.85%. The
Lipper Global Fund Index returned 11.92% for the same time frame.
This outstanding performance includes gains made during the more exuberant
market of late 1999 and early 2000. During the latter part of the fiscal year,
performance was affected by the sell-off in the technology sector and other
market difficulties. Net assets in the fund totaled $53.54 million as the fiscal
year ended.
WHAT MAJOR TRENDS HAVE AFFECTED THE MARKET?
A strong market rally in the first half of the fiscal year was followed by a
choppy, downward-trending market in the second half. The major market indexes
such as the S&P 500 peaked fairly early in 2000. As of the close of the fiscal
year, they had not regained the levels they reached in the spring, and many,
including the Dow and the S&P 500, recorded losses over the first 10 months of
2000.
Technology stocks led the market surge in late 1999 and early 2000 as the
Dow set a record in January. The tech-laden Nasdaq continued to soar to record
levels well into March. Toward the end of the month, however, investors became
concerned that tech stocks might be overvalued, sparking a sharp sell-off in
this sector. Investors were also concerned that the Federal Reserve Board (the
Fed) might continue raising interest rates to contain inflation by slowing
torrid economic growth. These concerns prompted a rush of selling that affected
nearly every stock-market sector and caused extreme volatility.
After raising interest rates in May, the Fed ceased its monetary tightening
policy for the remainder of the fiscal year. Markets rallied in late May and
June amid mounting evidence that economic growth was slowing, reducing the
probability of additional Fed rate hikes. However, in late summer and early
fall, rising oil prices, unrest in the Middle East and concern about corporate
earnings converged to produce another steep market decline. A number of major
corporations reported earnings disappointments in September and October, as
rising oil prices and a weak euro cut into profit margins.
WHAT CHANGES DID THE FUND MAKE TO DEAL WITH THESE TRENDS?
The fund used its great flexibility to take advantage of the growth occurring in
the new-economy infrastructure. In the old economy, infrastructure meant
primarily roads, transportation and power plants. Today's new economy relies
increasingly on communications and computing. The fund seeks out companies that
are primarily in the new economy as well as companies that may be identified
with the old economy but are "reinventing" themselves in the new economy. A good
example is Enron, an old pipeline company which has become heavily involved in
the deregulation of electricity and power markets and is performing quite well.
Even in the new economy, computing and communications depend on power
plants. Accordingly, energy remains one of our "infrastructure themes," along
with e-commerce and telecommunications. At the close of the fiscal year, the
fund's portfolio consisted of approximately 28% utilities, 31% technology and
25% telecommunications. While tech stocks faced some adversity in the second
half of the fiscal year, careful stock selection in this sector was a plus, and
we believe that in the longer perspective, technology remains an area of
enormous growth potential. Old-economy sectors continue to represent substantial
assets and earnings, and we remain alert to take advantage of
-------------------------------------
IN THE OLD ECONOMY, INFRASTRUCTURE
MEANT PRIMARILY ROADS,
TRANSPORTATION AND POWER PLANTS.
TODAY'S NEW ECONOMY RELIES
INCREASINGLY ON COMMUNICATIONS
AND COMPUTING.
-------------------------------------
[ART WORK]
FUND OUTSHINES INDEXES
One-year return as of 10/31/00,
excluding sales charges
================================================================================
FUND CLASS A SHARES 25.71%
FUND CLASS B SHARES 25.09%
FUND CLASS C SHARES 24.94%
LIPPER GLOBAL FUND INDEX 11.92%
MCSI ALL COUNTRY WORLD INDEX 0.85%
================================================================================
See important fund and index disclosures inside front cover.
AIM GLOBAL INFRASTRUCTURE FUND
2
<PAGE> 5
ANNUAL REPORT / MANAGERS' OVERVIEW
PORTFOLIO COMPOSITION
As of 10/31/00, based on total net assets
<TABLE>
<CAPTION>
===========================================================================================================================
TOP 10 EQUITY HOLDINGS TOP 10 INDUSTRIES TOP 10 COUNTRIES
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1. Vodafone Group PLC (U.K.) 7.10% 1. Telecommunications (Cellular/Wireless) 12.19% 1. United States 64.37%
2. Enron Corp. 7.02 2. Electric Companies 10.68 2. United Kingdom 10.92
3. Cisco Systems, Inc. 3.62 3. Telephone 10.30 3. Spain 3.43
4. SBC Communications, Inc. 3.45 4. Natural Gas 9.80 4. Italy 3.09
5. Juniper Networks, Inc. 3.28 5. Computers (Software & Services) 8.20 5. France 2.72
6. AES Corp. (The) 3.16 6. Computers (Networking) 7.66 6. Japan 2.58
7. Verizon Communications 2.21 7. Communications Equipment 7.24 7. Finland 1.92
8. NTT DoCoMo, Inc. (Japan) 2.07 8. Power Producers (Independent) 4.30 8. Netherlands 1.11
9. FPL Group, Inc. 1.97 9. Manufacturing (Diversified) 3.05 9. Canada 0.94
10. Nokia Oyj - ADR (Finland) 1.92 10. Electrical Equipment 2.90 10. South Korea 0.92
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>
good investment opportunities there as they arise.
WHAT WERE THE FUND'S TOP HOLDINGS AS OF OCTOBER 31?
o Vodafone's digital mobile-phone network provides coverage for 99% of the
U.K.'s population.
o Enron, North America's largest wholesaler of electricity and natural gas,
provides services for managing and transporting other commodities from coal
to bandwidth.
o Cisco is the worldwide leader in Internet networking, enabling people,
computing devices and computer networks to access or transfer information.
o SBC Communications provides telecommunications products and services
through a global network of leading brands such as Southwestern Bell and
Prodigy.
o Juniper Networks provides routers and other communications equipment for
Internet service providers and providers of other telecommunications
services.
o AES is a large independent power producer which operates and owns electric
power plants in several countries.
o Verizon, formed by the merger of Bell Atlantic and GTE, is the largest U.S.
provider (and one of the world's leading providers) of wireline and wireless
communications.
o NTT DoCoMo, Japan's largest and the world's third-largest provider of
cellular-phone service, leads in "i-mode" phones, which provide mobile
Internet service.
o FPL Group is engaged in the generation, transmission, distribution and sale
of electric energy to 3.8 million customers in Florida.
o Nokia supplies mobile-phone handsets, switching systems, multimedia
terminals and computer monitors for fixed and wireless telecommunications
networks.
WHAT IS YOUR OUTLOOK FOR THE NEAR TERM?
At the close of the reporting period, the economic climate appeared favorable
for stocks despite often extreme market volatility. The U.S. unemployment rate
was at its lowest level in three decades. Consumer spending, down for much of
the second half of the fiscal year, picked up again in September. And except for
higher oil prices, inflation was moderate.
Interest rates had stabilized as the Fed had taken a respite from its
monetary tightening policy. Perhaps most importantly, corporate profits, while
declining, were still impressive for many companies, particularly medium-sized
and smaller firms. However, because of a degree of uncertainty surrounding
near-term economic, political and international trends and developments, markets
may continue to be volatile.
-------------------------------------
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 GLOBAL INFRASTRUCTURE FUND
3
<PAGE> 6
ANNUAL REPORT / PERFORMANCE HISTORY
YOUR FUND'S LONG-TERM PERFORMANCE
RESULTS OF A $10,000 INVESTMENT
AIM GLOBAL INFRASTRUCTURE FUND VS. BENCHMARK INDEX
5/31/94-10/31/00
in thousands
================================================================================
AIM Global AIM Global
Infrastructure Infrastructure MSCI All
Fund, Fund, Country
DATE Class A Shares Class B Shares World Index
--------------------------------------------------------------------------------
5/31/94 9525 10000 10000
10/94 10392 10892 10574.6
10/95 10092 10525 11327.7
10/96 12008 12458 13095.3
10/97 13134 13559 15156.9
10/98 12502 12838 17090.9
10/99 15342 15678 21604.2
10/00 19286 19611 21788
$19286 $19611 $21788
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 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 that
index over the period 5/31/94-10/31/00. It is important to understand the
differences between your fund and an index. An index measures the performance of
a hypothetical portfolio. A market index such as the MSCI All Country World
Index is unmanaged, incurring no sales charges, expenses or fees. If you could
buy all the securities that make up a market index, you would incur expenses
that would affect the return on your investment.
AVERAGE ANNUAL TOTAL RETURNS
As of 10/31/00, including sales charges
================================================================================
CLASS A SHARES
Inception (5/31/94) 10.77%
5 Years 12.73
1 Year 19.77*
*25.71%, excluding sales charges
CLASS B SHARES
Inception (5/31/94) 11.06%
5 Years 13.01
1 Year 20.09*
*25.09%, excluding CDSC
CLASS C SHARES
Inception (3/1/99) 23.57%
1 Year 23.94*
*24.94%, excluding CDSC
================================================================================
Your fund's total return includes sales charges, expenses and management fees.
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 expenses. For
fund performance calculations and a description of the index cited on this page,
please see the inside front cover.
AIM GLOBAL INFRASTRUCTURE FUND
4
<PAGE> 7
SCHEDULE OF INVESTMENTS
October 31, 2000
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
DOMESTIC STOCKS & OTHER EQUITY
INTERESTS-64.37%
AEROSPACE/DEFENSE-2.04%
General Dynamics Corp. 9,000 $ 644,062
--------------------------------------------------------------
Northrop Grumman Corp. 5,300 445,200
==============================================================
1,089,262
==============================================================
BROADCASTING (TELEVISION, RADIO &
CABLE)-2.09%
Entravision Communications
Corp.-Class A(a) 13,500 238,781
--------------------------------------------------------------
General Motors Corp.-Class H(a) 18,500 599,400
--------------------------------------------------------------
Univision Communications Inc.-Class
A(a) 7,400 283,050
==============================================================
1,121,231
==============================================================
COMMUNICATIONS EQUIPMENT-3.82%
Aether Systems, Inc.(a) 5,200 419,250
--------------------------------------------------------------
Corning Inc. 5,100 390,150
--------------------------------------------------------------
Efficient Networks, Inc.(a) 7,700 323,039
--------------------------------------------------------------
JDS Uniphase Corp.(a) 3,700 301,087
--------------------------------------------------------------
Redback Networks Inc.(a) 3,700 393,819
--------------------------------------------------------------
WJ Communications, Inc.(a) 14,500 217,500
==============================================================
2,044,845
==============================================================
COMPUTERS (HARDWARE)-1.73%
Sun Microsystems, Inc.(a) 3,600 399,150
--------------------------------------------------------------
Sycamore Networks, Inc.(a) 8,300 524,975
==============================================================
924,125
==============================================================
COMPUTERS (NETWORKING)-7.66%
Cisco Systems, Inc.(a) 35,968 1,937,776
--------------------------------------------------------------
Juniper Networks, Inc.(a) 9,000 1,755,000
--------------------------------------------------------------
VeriSign, Inc.(a) 3,100 409,200
==============================================================
4,101,976
==============================================================
COMPUTERS (PERIPHERALS)-1.96%
Brocade Communications Systems,
Inc.(a) 2,700 613,912
--------------------------------------------------------------
EMC Corp.(a) 4,900 436,406
==============================================================
1,050,318
==============================================================
COMPUTERS (SOFTWARE & SERVICES)-7.46%
Ariba, Inc.(a) 4,900 619,237
--------------------------------------------------------------
BEA Systems, Inc.(a) 9,300 667,275
--------------------------------------------------------------
i2 Technologies, Inc.(a) 5,300 901,000
--------------------------------------------------------------
Oracle Corp.(a) 13,400 442,200
--------------------------------------------------------------
StorageNetworks, Inc.(a) 6,400 406,000
--------------------------------------------------------------
VERITAS Software Corp.(a) 6,800 958,906
==============================================================
3,994,618
==============================================================
ELECTRIC COMPANIES-5.76%
FPL Group, Inc. 16,000 1,056,000
--------------------------------------------------------------
Montana Power Co. (The) 21,200 598,900
--------------------------------------------------------------
Pinnacle West Capital Corp. 21,000 912,188
--------------------------------------------------------------
SEI Trust I-Series A, $3.13 Conv.
Pfd. 3,700 225,006
--------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
ELECTRIC COMPANIES-(CONTINUED)
Southern Energy, Inc.(a) 10,600 $ 288,850
==============================================================
3,080,944
==============================================================
ELECTRICAL EQUIPMENT-2.90%
Active Power, Inc.(a) 14,000 533,750
--------------------------------------------------------------
Capstone Turbine Corp.(a) 14,100 782,550
--------------------------------------------------------------
General Electric Co. 4,300 235,694
==============================================================
1,551,994
==============================================================
ELECTRONICS (DEFENSE)-0.93%
Raytheon Co.-Class B 14,600 499,138
==============================================================
ELECTRONICS (INSTRUMENTATION)-0.68%
Proton Energy Systems, Inc.(a) 13,700 366,475
==============================================================
ELECTRONICS (SEMICONDUCTORS)-1.43%
Analog Devices, Inc.(a) 5,000 325,000
--------------------------------------------------------------
Vitesse Semiconductor Corp.(a) 6,300 440,606
==============================================================
765,606
==============================================================
ENGINEERING & CONSTRUCTION-0.64%
Quanta Services, Inc.(a) 11,000 341,688
==============================================================
NATURAL GAS-9.80%
Dynegy Inc.-Class A 10,700 495,544
--------------------------------------------------------------
El Paso Energy Corp. 13,000 814,938
--------------------------------------------------------------
Enron Corp. 45,800 3,758,463
--------------------------------------------------------------
TNPC, Inc.(a) 10,700 177,888
==============================================================
5,246,833
==============================================================
OIL & GAS (EXPLORATION &
PRODUCTION)-0.62%
Apache Corp. 6,000 331,875
==============================================================
POWER PRODUCERS (INDEPENDENT)-4.30%
AES Corp. (The)(a) 29,976 1,693,644
--------------------------------------------------------------
Calpine Capital Trust III-$2.50 Conv.
Pfd. (Acquired 08/03/00; Cost
$550,000)(b) 11,000 610,500
==============================================================
2,304,144
==============================================================
SERVICES (COMMERCIAL &
CONSUMER)-0.77%
Convergys Corp.(a) 9,500 413,844
==============================================================
TELECOMMUNICATIONS
(CELLULAR/WIRELESS)-2.90%
Level 3 Communications, Inc.(a) 6,000 286,125
--------------------------------------------------------------
Phone.com, Inc.(a) 10,900 1,008,931
--------------------------------------------------------------
Western Wireless Corp.-Class A(a) 5,400 256,500
==============================================================
1,551,556
==============================================================
TELEPHONE-6.88%
Broadwing Inc.(a) 11,700 330,525
--------------------------------------------------------------
Qwest Communications International
Inc.(a) 6,600 320,925
--------------------------------------------------------------
SBC Communications Inc. 32,000 1,846,000
--------------------------------------------------------------
</TABLE>
5
<PAGE> 8
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
TELEPHONE-6.88%-(CONTINUED)
Verizon Communications 20,500 $ 1,185,156
==============================================================
3,682,606
==============================================================
Total Domestic Stocks & Other
Equity Interests (Cost
$22,242,544) 34,463,078
==============================================================
FOREIGN STOCKS & OTHER EQUITY
INTERESTS-30.03%
BERMUDA-0.12%
Global Crossing Ltd., $17.50 Conv.
Pfd.
(Telecommunications-Cellular/Wireless)
(Acquired 12/09/99, Cost
$100,000)(b) 400 63,600
==============================================================
BRAZIL-0.76%
Companhia Paranaense de
Energia-Copel-ADR (Electric
Companies) 45,000 407,812
==============================================================
CANADA-0.94%
Nortel Networks Corp. (Communications
Equipment) 6,600 300,300
--------------------------------------------------------------
Stuart Energy Systems (Engineering &
Construction)(a) 13,300 201,159
==============================================================
501,459
==============================================================
FINLAND-1.92%
Nokia Oyj-ADR (Communications
Equipment) 24,000 1,026,000
==============================================================
FRANCE-2.72%
Suez Lyonnaise des Eaux S.A.
(Manufacturing-Diversified) 3,650 556,944
--------------------------------------------------------------
Total Fina Elf S.A.
(Oil-International Integrated) 1,700 243,240
--------------------------------------------------------------
Vivendi S.A.
(Manufacturing-Diversified) 9,100 654,114
==============================================================
1,454,298
==============================================================
GERMANY-0.79%
E.On A.G.
(Manufacturing-Diversified)(a) 8,320 422,940
==============================================================
ISRAEL-0.74%
Check Point Software Technologies
Ltd. (Computers-Software &
Services)(a) 2,500 395,937
==============================================================
ITALY-3.09%
ACEA S.p.A. (Water Utilities) 72,800 966,266
--------------------------------------------------------------
Telecom Italia S.p.A. (Telephone) 126,300 687,053
==============================================================
1,653,319
==============================================================
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
JAPAN-2.58%
Nippon Telegraph & Telephone Corp.
(Telecommunications-Long Distance) 30 $ 273,015
--------------------------------------------------------------
NTT DoCoMo, Inc.
(Telecommunications-Cellular/
Wireless) 45 1,109,380
==============================================================
1,382,395
==============================================================
NETHERLANDS-1.10%
Versatel Telecom International N.V.
(Telecommunications-Long
Distance)(a) 30,000 591,933
==============================================================
SOUTH KOREA-0.92%
Pohang Iron & Steel Co. Ltd.-ADR
(Iron & Steel) 31,200 493,350
==============================================================
SPAIN-3.43%
Endesa S.A. (Electric Companies) 11,600 189,011
--------------------------------------------------------------
Endesa S.A.-ADR (Electric Companies) 39,600 660,825
--------------------------------------------------------------
Telefonica S.A. (Telephone)(a) 22,700 432,870
--------------------------------------------------------------
Union Electrica Fenosa, S.A.
(Electric Companies) 30,000 554,763
==============================================================
1,837,469
==============================================================
UNITED KINGDOM-10.92%
Bookham Technology PLC
(Communications Equipment)(a) 15,400 507,157
--------------------------------------------------------------
COLT Telecom Group PLC (Telephone)(a) 15,800 504,507
--------------------------------------------------------------
Jazztel PLC-ADR (Telephone)(a) 11,800 208,713
--------------------------------------------------------------
National Grid Group PLC (Electric
Companies) 95,060 824,371
--------------------------------------------------------------
Vodafone Group PLC
(Telecommunications-Cellular/Wireless) 913,891 3,803,513
==============================================================
5,848,261
==============================================================
Total Foreign Stocks & Other
Equity
Interests (Cost $10,143,907) 16,078,773
==============================================================
MONEY MARKET FUNDS-5.41%
STIC Liquid Assets Portfolio(c) 1,447,370 1,447,370
--------------------------------------------------------------
STIC Prime Portfolio(c) 1,447,370 1,447,370
==============================================================
Total Money Market Funds
(Cost $2,894,740) 2,894,740
==============================================================
TOTAL INVESTMENTS-99.81% (Cost
$35,281,191) 53,436,591
==============================================================
OTHER ASSETS LESS LIABILITIES-0.19% 99,061
==============================================================
NET ASSETS-100.00% $53,535,652
______________________________________________________________
==============================================================
</TABLE>
Investment Abbreviations:
ADR - American Depositary Receipt
Conv. - Convertible
Ltd. - Limited
Pfd. - Preferred
Notes to Schedule of Investments:
(a) Non-income producing security.
(b) Restricted security. May be resold to qualified institutional buyers in
accordance with the provisions of Rule 144A under the Securities Act of
1933, as amended. The aggregate market value of these securities at 10/31/00
was $674,100 which represents 1.26% of the Fund's net assets.
(c) 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 $35,281,191) $53,436,591
------------------------------------------------------------
Foreign currencies, at value (cost $195,633) 197,544
------------------------------------------------------------
Receivables for:
Investments sold 156,625
------------------------------------------------------------
Fund shares sold 19,187
------------------------------------------------------------
Dividends 87,502
------------------------------------------------------------
Collateral for securities loaned 2,374,729
------------------------------------------------------------
Other assets 7,362
============================================================
Total assets $56,279,540
============================================================
LIABILITIES:
Payables for:
Fund shares reacquired 181,744
------------------------------------------------------------
Collateral upon return of securities loaned 2,374,729
------------------------------------------------------------
Accrued advisory fees 21,144
------------------------------------------------------------
Accrued administrative services fees 4,235
------------------------------------------------------------
Accrued distribution fees 37,768
------------------------------------------------------------
Accrued trustees' fees 888
------------------------------------------------------------
Accrued transfer agent fees 15,920
------------------------------------------------------------
Accrued operating expenses 107,460
============================================================
Total liabilities 2,743,888
============================================================
Net assets applicable to shares outstanding $53,535,652
____________________________________________________________
============================================================
NET ASSETS:
Class A $24,745,356
____________________________________________________________
============================================================
Class B $28,378,220
____________________________________________________________
============================================================
Class C $ 412,076
____________________________________________________________
============================================================
SHARES OUTSTANDING, $0.01 PAR VALUE PER SHARE:
Class A 1,343,110
____________________________________________________________
============================================================
Class B 1,590,458
____________________________________________________________
============================================================
Class C 23,128
____________________________________________________________
============================================================
Class A:
Net asset value and redemption price per
share $ 18.42
------------------------------------------------------------
Offering price per share:
(Net asset value of $18.42 divided by
95.25%) $ 19.34
____________________________________________________________
============================================================
Class B:
Net asset value and offering price per share $ 17.84
____________________________________________________________
============================================================
Class C:
Net asset value and offering price per share $ 17.82
____________________________________________________________
============================================================
</TABLE>
STATEMENT OF OPERATIONS
For the year ended October 31, 2000
<TABLE>
<S> <C>
INVESTMENT INCOME:
Dividends (net of foreign withholding tax of
$34,576) $ 451,954
------------------------------------------------------------
Dividends from affiliated money market funds 200,113
------------------------------------------------------------
Interest 21,916
------------------------------------------------------------
Security lending income 33,273
============================================================
Total investment income 707,256
============================================================
EXPENSES:
Advisory fees 551,358
------------------------------------------------------------
Administrative services fees 50,000
------------------------------------------------------------
Custodian fees 28,631
------------------------------------------------------------
Distribution fees -- Class A 127,803
------------------------------------------------------------
Distribution fees -- Class B 307,927
------------------------------------------------------------
Distribution fees -- Class C 1,909
------------------------------------------------------------
Transfer agent fees 155,887
------------------------------------------------------------
Trustees' fees 8,845
------------------------------------------------------------
Other 172,656
============================================================
Total expenses 1,405,016
============================================================
Less: Fees waived (116,307)
------------------------------------------------------------
Expenses paid indirectly (1,396)
============================================================
Net expenses 1,287,313
============================================================
Net investment income (loss) (580,057)
============================================================
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENT SECURITIES, FOREIGN CURRENCIES,
FUTURES CONTRACTS AND OPTION CONTRACTS:
Net realized gain (loss) from:
Investment securities 10,147,564
------------------------------------------------------------
Foreign currencies (66,282)
------------------------------------------------------------
Futures contracts (38,703)
------------------------------------------------------------
Option contracts written 38,001
============================================================
10,080,580
============================================================
Change in net unrealized appreciation
(depreciation) of:
Investment securities 1,683,622
------------------------------------------------------------
Foreign currencies (3,494)
============================================================
1,680,128
============================================================
Net gain on investment securities, foreign
currencies, futures contracts and option
contracts 11,760,708
============================================================
Net increase in net assets resulting from
operations $11,180,651
____________________________________________________________
============================================================
</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 (loss) $ (580,057) $ (65,857)
-----------------------------------------------------------------------------------------
Net realized gain from investment securities, foreign
currencies, futures contracts and option contracts 10,080,580 5,560,967
-----------------------------------------------------------------------------------------
Change in net unrealized appreciation of investment
securities, foreign currencies and futures contracts 1,680,128 5,993,037
=========================================================================================
Net increase in net assets resulting from operations 11,180,651 11,488,147
=========================================================================================
Distributions to shareholders from net investment income:
Class A -- (90,183)
-----------------------------------------------------------------------------------------
Advisor Class* -- (56,937)
-----------------------------------------------------------------------------------------
Distributions to shareholders from net realized gains:
Class A (2,273,919) (1,403,586)
-----------------------------------------------------------------------------------------
Class B (2,931,748) (1,925,203)
-----------------------------------------------------------------------------------------
Class C (1,316) --
-----------------------------------------------------------------------------------------
Advisor Class* (2,002) (392,100)
-----------------------------------------------------------------------------------------
Share transactions-net:
Class A 1,980,892 (6,581,799)
-----------------------------------------------------------------------------------------
Class B 30,946 (11,163,548)
-----------------------------------------------------------------------------------------
Class C 450,664 14,334
-----------------------------------------------------------------------------------------
Advisor Class* (22,973) (7,642,305)
=========================================================================================
Net increase (decrease) in net assets 8,411,195 (17,753,180)
=========================================================================================
NET ASSETS:
Beginning of year 45,124,457 62,877,637
=========================================================================================
End of year $53,535,652 $ 45,124,457
_________________________________________________________________________________________
=========================================================================================
NET ASSETS CONSIST OF:
Shares of beneficial interest $27,414,002 $ 22,848,512
-----------------------------------------------------------------------------------------
Undistributed net realized gain from investment
securities, foreign currencies, futures contracts and
option contracts 7,972,318 5,806,741
-----------------------------------------------------------------------------------------
Unrealized appreciation of investment securities and
foreign currencies 18,149,332 16,469,204
=========================================================================================
$53,535,652 $ 45,124,457
_________________________________________________________________________________________
=========================================================================================
</TABLE>
* Advisor Class shares were converted to Class A shares effective as of the
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 Global Infrastructure Fund (the "Fund") is a separate series of AIM
Investment Funds (the "Trust"). The Trust is organized as a Delaware business
trust and is registered under the Investment Company Act of 1940, as amended
(the "1940 Act"), as an open-end series management investment company consisting
of 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. At a meeting
held on May 23 and 24, 2000, the Board of Trustees approved a restructuring of
the Fund to eliminate the master-feeder structure. The Fund, which had invested
substantially all of its investable assets in the Global Infrastructure
Portfolio (the "Portfolio"), a Delaware business trust, would now invest
directly in the securities in which the Portfolio had invested. The
restructuring of the Fund was approved by Shareholders of the Fund at a meeting
held on September 1, 2000 and was completed on September 8, 2000.
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 -- Securities, including restricted securities, are
valued according to the following policy. 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
$580,057, undistributed net realized gains decreased by $2,706,018 and paid
in capital increased by $2,125,961 as a result of book/tax differences due to
utilization of a portion of the proceeds from redemptions as distributions
for federal income tax purposes, 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.
9
<PAGE> 12
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.
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 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. Covered Call Options -- The Fund may write call options, on a covered basis;
that is, the Fund will own the underlying security. Options written by the
Fund normally will have expiration dates between three and nine months from
the date written. The exercise price of a call option may be below, equal to,
or above the current market value of the underlying security at the time the
option is written. When the Fund writes a covered call option, an amount
equal to the premium received by the Fund is recorded as an asset and an
equivalent liability. The amount of the liability is subsequently
"marked-to-market" to reflect the current market value of the option written.
The current market value of a written option is the mean between the last bid
and asked prices on that day. If a written call option expires on the
stipulated expiration date, or if the Fund enters into a closing purchase
transaction, the Fund realizes a gain (or a loss if the closing purchase
transaction exceeds the premium received when the option was written) without
regard to any unrealized gain or loss on the underlying security, and the
liability related to such option is extinguished. If a written option is
exercised, the Fund realizes a gain or a loss from the sale of the underlying
security and the proceeds of the sale are increased by the premium originally
received.
A call option gives the purchaser of such option the right to buy, and the
writer (the Fund) the obligation to sell, the underlying security at the
stated exercise price during the option period. The purchaser of a call
option has the right to acquire the security which is the subject of the call
option at any time during the option period. During the option period, in
return for the premium paid by the purchaser of the option, the Fund has
given up the opportunity for capital appreciation above the exercise price
should the market price of the underlying security increase, but has retained
the risk of loss should the price of the underlying security decline. During
the option period, the Fund may be required at any time to deliver the
underlying security against payment of the exercise price. This obligation is
terminated upon the expiration of the option period or at such earlier time
at which the Fund effects a closing purchase transaction by purchasing (at a
price which may be higher than that received when the call option was
written) a call option identical to the one originally written.
H. Futures Contracts -- The Fund may purchase or sell futures contracts as a
hedge against changes in market conditions. Initial margin deposits required
upon entering into futures contracts are satisfied by the segregation of
specific securities as collateral for the account of the broker (the Fund's
agent in acquiring the futures position). During the period the futures
contracts are open, changes in the value of the contracts are recognized as
unrealized gains or losses by "marking to market" on a daily basis to reflect
the market value of the contracts at the end of each day's trading. Variation
margin payments are made or received depending upon whether unrealized gains
or losses are incurred. When the contracts are closed, the Fund recognizes a
realized gain or loss equal to the difference between the proceeds from, or
cost of, the closing transaction and the Fund's basis in the contract. Risks
include the possibility of an illiquid market and that a change in value of
the contracts may not correlate with changes in the value of the securities
being hedged.
I. 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 $116,307.
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
10
<PAGE> 13
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 $103,999 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 $127,803, $307,927
and $1,909, respectively, as compensation under the Plans.
AIM Distributors received commissions of $9,122 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 $6,965 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 $654 and reductions in custodian
fees of $742 under expense offset arrangements which resulted in a reduction of
the Fund's total expenses of $1,396.
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 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 $2,328,166 were on
loan to brokers. The loans were secured by cash collateral of $2,374,729
received by the Fund. For the year ended October 31, 2000, the Fund received
fees of $33,273 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
$34,698,925 and $39,280,658, 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 $ 19,709,582
---------------------------------------------------------
Aggregate unrealized (depreciation) of
investment securities (1,554,182)
=========================================================
Net unrealized appreciation of investment
securities $ 18,155,400
_________________________________________________________
=========================================================
Investments have the same cost for tax and financial
statement purposes.
</TABLE>
NOTE 7-CALL OPTION CONTRACTS
Transactions in call options written during the year ended October 31, 2000 are
summarized as follows:
<TABLE>
<CAPTION>
CALL OPTION CONTRACTS
----------------------
NUMBER OF CONTRACTS
PREMIUMS RECEIVED
--------- ---------
<S> <C> <C>
Beginning of year -- $ --
---------------------------------------------------------
Written 135 53,593
---------------------------------------------------------
Closed (135) (53,593)
=========================================================
End of year -- $ --
_________________________________________________________
=========================================================
</TABLE>
11
<PAGE> 14
NOTE 8-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 661,981 $ 12,809,797 162,299 $ 2,474,900
--------------------------------------------------------------------------------------------------------------------
Class B 222,164 4,334,670 80,398 1,180,744
--------------------------------------------------------------------------------------------------------------------
Class C* 32,764 654,226 976 14,334
--------------------------------------------------------------------------------------------------------------------
Advisor Class** 1 15 29,602 453,399
====================================================================================================================
Issued as reinvestment of dividends:
Class A 128,271 2,153,369 102,312 1,428,280
--------------------------------------------------------------------------------------------------------------------
Class B 164,254 2,682,268 126,907 1,737,353
--------------------------------------------------------------------------------------------------------------------
Class C* 81 1,316 -- --
--------------------------------------------------------------------------------------------------------------------
Advisor Class** 51 875 32,402 459,131
====================================================================================================================
Issued in connection with acquisitions:***
Class A 1,119 23,863 -- --
--------------------------------------------------------------------------------------------------------------------
Advisor Class (1,094) (23,863) -- --
====================================================================================================================
Reacquired:
Class A (670,570) (13,006,137) (701,304) (10,484,979)
--------------------------------------------------------------------------------------------------------------------
Class B (372,887) (6,985,992) (963,484) (14,081,645)
--------------------------------------------------------------------------------------------------------------------
Class C* (10,693) (204,878) -- --
--------------------------------------------------------------------------------------------------------------------
Advisor Class** -- -- (544,836) (8,554,835)
====================================================================================================================
155,442 $ 2,439,529 (1,674,728) $(25,373,318)
____________________________________________________________________________________________________________________
====================================================================================================================
</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 9-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 $16.33 $ 14.18 $15.01 $14.42 $ 12.11
-------------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income (loss) (0.15) -- 0.07 (0.01) (0.03)
-------------------------------------------------------------------------------------------------------------------
Net gains (losses) on securities (both realized and
unrealized) 4.16 3.07 (0.79) 1.32 2.34
===================================================================================================================
Total from investment operations 4.01 3.07 (0.72) 1.31 2.31
===================================================================================================================
Less distributions:
Dividends from net investment income -- (0.07) -- -- --
-------------------------------------------------------------------------------------------------------------------
Distributions from net realized gains (1.92) (0.85) (0.11) (0.72) --
===================================================================================================================
Total distributions (1.92) (0.92) (0.11) (0.72) --
===================================================================================================================
Net asset value, end of period $18.42 $ 16.33 $14.18 $15.01 $ 14.42
___________________________________________________________________________________________________________________
===================================================================================================================
Total return(b) 25.71% 22.72% (4.82)% 9.38% 19.08%
___________________________________________________________________________________________________________________
===================================================================================================================
Ratios/supplemental data:
Net assets, end of period (000s omitted) $24,745 $19,958 $23,531 $38,281 $38,397
===================================================================================================================
Ratio of expenses to average net assets:
With fee waivers 2.00%(c) 2.00% 1.99% 2.00% 2.14%
-------------------------------------------------------------------------------------------------------------------
Without fee waivers 2.21%(c) 2.22% 2.23% 2.08% 2.25%
-------------------------------------------------------------------------------------------------------------------
Ratio of net investment income (loss) to average net assets (0.75)%(c) 0.09% 0.52% (0.09)% (0.19)%
___________________________________________________________________________________________________________________
===================================================================================================================
Portfolio turnover rate 66% 49% 96% 41% 41%
___________________________________________________________________________________________________________________
===================================================================================================================
</TABLE>
(a) Calculated using average shares outstanding.
(b) Does not include sales charges.
(c) Ratios are based on average daily net assets of $25,566,123.
12
<PAGE> 15
NOTE 9-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 $ 15.94 $ 13.87 $ 14.75 $ 14.24 $ 12.03
-----------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income (loss) (0.24) (0.06) -- (0.09) (0.09)
-----------------------------------------------------------------------------------------------------------------
Net gains (losses) on securities (both realized and
unrealized) 4.06 2.98 (0.77) 1.32 2.30
=================================================================================================================
Total from investment operations 3.82 2.92 (0.77) 1.23 2.21
=================================================================================================================
Less distributions from net realized gains (1.92) (0.85) (0.11) (0.72) --
=================================================================================================================
Net asset value, end of period $ 17.84 $ 15.94 $ 13.87 $ 14.75 $ 14.24
_________________________________________________________________________________________________________________
=================================================================================================================
Total return(b) 25.09% 22.03% (5.31)% 8.83% 18.37%
_________________________________________________________________________________________________________________
=================================================================================================================
Ratios/supplemental data:
Net assets, end of period (000s omitted) $28,378 $25,134 $32,349 $57,199 $53,678
_________________________________________________________________________________________________________________
=================================================================================================================
Ratio of expenses to average net assets:
With fee waivers 2.50%(c) 2.50% 2.49% 2.50% 2.64%
-----------------------------------------------------------------------------------------------------------------
Without fee waivers 2.71%(c) 2.72% 2.73% 2.58% 2.75%
=================================================================================================================
Ratio of net investment income (loss) to average net assets (1.25)%(c) (0.41)% 0.02% (0.59)% (0.69)%
_________________________________________________________________________________________________________________
=================================================================================================================
Portfolio turnover rate 66% 49% 96% 41% 41%
_________________________________________________________________________________________________________________
=================================================================================================================
</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 $30,792,736.
<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 $15.94 $13.99
------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income (loss) (0.24) (0.03)
------------------------------------------------------------------------------------------
Net gains on securities (both realized and unrealized) 4.04 1.98
==========================================================================================
Total from investment operations 3.80 1.95
==========================================================================================
Less distributions from net realized gains (1.92) --
==========================================================================================
Net asset value, end of period $17.82 $15.94
__________________________________________________________________________________________
==========================================================================================
Total return(b) 24.94% 13.94%
__________________________________________________________________________________________
==========================================================================================
Ratios/supplemental data:
Net assets, end of period (000s omitted) $ 412 $ 16
__________________________________________________________________________________________
==========================================================================================
Ratio of expenses to average net assets:
With fee waivers 2.50%(c) 2.50%(d)
------------------------------------------------------------------------------------------
Without fee waivers 2.71%(c) 2.72%(d)
==========================================================================================
Ratio of net investment income (loss) to average net assets (1.25)%(c) (0.41)%(d)
__________________________________________________________________________________________
==========================================================================================
Portfolio turnover rate 66% 49%
__________________________________________________________________________________________
==========================================================================================
</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 $190,872.
(d) Annualized.
13
<PAGE> 16
REPORT OF INDEPENDENT ACCOUNTANTS
To the Shareholders of AIM Global Infrastructure Fund
and Board of Trustees of AIM Investment Funds
In our opinion, the accompanying statement of assets and
liabilities, including the schedule of investments, and
the related statements of operations and of changes in
net assets and the financial highlights present fairly,
in all material respects, the financial position of the
AIM Global Infrastructure Fund at October 31, 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
14
<PAGE> 17
PROXY RESULTS (UNAUDITED)
A Special Meeting of Shareholders of AIM Global Infrastructure Fund (the
"Fund"), an investment portfolio of AIM Investment Funds, a Delaware business
trust (the "Trust"), was held on September 1, 2000. The meeting was held for the
following purposes:
(1) To approve a new Investment Advisory Agreement for the Fund.
(2) To approve changing the fundamental investment restrictions of the Fund.
(3) To approve making the investment objective of the Fund non-fundamental.
(4) To ratify the selection of PricewaterhouseCoopers LLP as independent public
accountants of the Fund for the fiscal year ending in 2000.
The results of the voting on the above matters were as follows:
<TABLE>
<CAPTION>
VOTES WITHHELD/
MATTER VOTES FOR AGAINST ABSTENTIONS
------ --------- ------- -----------
<S> <C> <C> <C> <C>
(1) Approval of a new Investment Advisory Agreement............. 1,572,427 26,525 72,464
(2)(a) Modification of Fundamental Restriction on Portfolio
Diversification............................................. 1,206,125 39,097 426,194*
(2)(b) Modification of Fundamental Restriction on Issuing Senior
Securities and Borrowing Money.............................. 1,196,848 47,129 427,439*
(2)(c) Modification of Fundamental Restriction on Underwriting
Securities.................................................. 1,205,889 40,164 425,363*
(2)(d) Modification to or addition of Fundamental Restriction on
Industry Concentration...................................... 1,204,326 42,347 424,743*
(2)(e) Modification of Fundamental Restriction on Real Estate
Investments................................................. 1,203,791 45,913 421,712*
(2)(f) Modification of Fundamental Restriction on Purchasing or
Selling Commodities......................................... 1,196,282 48,177 426,957*
(2)(g) Modification of Fundamental Restriction on Making Loans..... 1,197,324 48,058 426,034*
(2)(h) Modification of Fundamental Policy on Investment in
Investment Companies........................................ 1,202,696 44,004 424,716*
(3) Approval of Making the Investment Objective of the Fund
Non-Fundamental............................................. 1,180,336 61,442 429,638*
(4) Ratification of the selection of PricewaterhouseCoopers LLP
as Independent Public Accountants of the Fund............... 1,580,147 22,849 68,420
</TABLE>
---------------
* Includes Broker Non-Votes
---------------
Effective September 30, 2000, Charles T. Bauer retired from his positions as an
officer and trustee of the Trust and Robert H. Graham succeeded Mr. Bauer as
Chairman of the Board.
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, Plantagenet Capital Chairman and President Suite 100
Management, LLC (an investment Houston, TX 77046
partnership); Chief Executive Officer, Dana R. Sutton
Plantagenet Holdings, Ltd. Vice President and Treasurer INVESTMENT MANAGER
(an investment banking firm)
Melville B. Cox A I M Advisors, Inc.
Frank S. Bayley Vice President 11 Greenway Plaza
Partner, law firm of Suite 100
Baker & McKenzie Gary T. Crum Houston, TX 77046
Vice President
Robert H. Graham TRANSFER AGENT
President and Chief Executive Officer, Carol F. Relihan
A I M Management Group Inc. Vice President and Secretary A I M Fund Services, Inc.
P.O. Box 4739
Ruth H. Quigley Mary J. Benson Houston, TX 77210-4739
Private Investor Assistant Vice President and
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>
REQUIRED FEDERAL INCOME TAX INFORMATION (UNAUDITED)
Of ordinary dividends paid to shareholders during the Fund's tax year ended
October 31, 2000, 29.13% is eligible for the dividends received deduction for
corporations. The Fund distributed long-term capital gains of $5,717,743 for the
Fund's tax year ended October 31, 2000 of which 100% is 20% rate gain.
16
<PAGE> 19
-------------------------------------
THE AMOUNT OF INVESTMENT
RISK YOU UNDERTAKE DEPENDS
ON SEVERAL FACTORS: YOUR
FINANCIAL OBJECTIVES, YOUR
RISK TOLERANCE AND YOUR
TIME HORIZON.
-------------------------------------
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.
<PAGE> 20
THE AIM FAMILY OF FUNDS--Registered Trademark--
<TABLE>
<S> <C> <C>
EQUITY FUNDS
DOMESTIC EQUITY FUNDS INTERNATIONAL/GLOBAL EQUITY FUNDS A I M Management Group Inc. has provided
leadership in the mutual fund industry
MORE AGGRESSIVE MORE AGGRESSIVE since 1976 and managed approximately
$183 billion in assets for more than eight
AIM Small Cap Opportunities(1) AIM Latin American Growth million shareholders, including
AIM Mid Cap Opportunities(2) AIM Developing Markets individual investors, corporate clients
AIM Large Cap Opportunities(3) AIM European Small Company and financial institutions, as of
AIM Emerging Growth AIM Asian Growth September 30, 2000.
AIM Small Cap Growth(4) AIM Japan Growth The AIM Family of Funds--Registered
AIM Aggressive Growth AIM International Emerging Growth Trademark-- is distributed nationwide,
AIM Mid Cap Growth AIM European Development and AIM today is the eighth-largest
AIM Small Cap Equity AIM Euroland Growth mutual fund complex in the United States
AIM Capital Development AIM Global Aggressive Growth in assets under management, according to
AIM Constellation AIM International Equity Strategic Insight, an independent mutual
AIM Dent Demographic Trends AIM Advisor International Value fund monitor.
AIM Select Growth AIM Global Trends AIM is a subsidiary of AMVESCAP PLC,
AIM Large Cap Growth AIM Global Growth one of the world's largest independent
AIM Weingarten financial services companies with $414
AIM Mid Cap Equity MORE CONSERVATIVE billion in assets under management as of
AIM Value II September 30, 2000.
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
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)
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. GIF-AR-1