<PAGE> 1
ANNUAL REPORT / OCTOBER 31 2000
AIM GLOBAL CONSUMER PRODUCTS
AND SERVICES FUND
[COVER IMAGE]
[AIM LOGO APPEARS HERE]
--Registered Trademark--
<PAGE> 2
[COVER IMAGE]
-------------------------------------
SHOPPERS BY DIANA ONG
ONG IS A PROLIFIC AND EXPERIMENTAL ARTIST WHO CONSTANTLY COMBINES
DIFFERENT MEDIUMS TO PUSH THE BOUNDARIES OF ART. SHE IS A TRUE
MULTIMEDIA ARTIST, PROFICIENT IN WATERCOLOR, ACRYLIC, ETCHING,
WOODCUT, SILKSCREEN, COMPUTER ART AND CERAMIC ART. THE ENERGY
AND DIVERSITY OF HER "SHOPPERS," CREATED WITH COMPUTER GRAPHICS,
FITTINGLY CHARACTERIZE MODERN GLOBAL CONSUMERS.
-------------------------------------
AIM Global Consumer Products and Services Fund is for shareholders who seek
long-term growth of capital through investments in companies around the world
that manufacture, market, retail or distribute consumer products and services.
ABOUT FUND PERFORMANCE AND PORTFOLIO DATA THROUGHOUT THIS REPORT:
o AIM Global Consumer Products and Services Fund's performance figures are
historical, and they reflect the reinvestment of distributions and changes
in net asset value.
o When sales charges are included in performance figures, Class A share
performance reflects the maximum 4.75% sales charge, and Class B and Class C
share performance reflects the applicable contingent deferred sales charge
(CDSC) for the period involved. The CDSC on Class B shares declines from 5%
beginning at the time of purchase to 0% at the beginning of the seventh
year. The CDSC on Class C shares is 1% for the first year after purchase.
The performance of the fund's Class B and Class C shares will differ from
that of its Class A shares due to different sales-charge structure and class
expenses.
o During the fiscal year ended 10/31/00, the fund paid distributions of $5.67
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
custodial arrangements made for the fund's foreign holdings, differences in
accounting, political risks and the lesser degree of public information
required to be provided by non-U.S. companies.
o The fund participates in the initial public offering (IPO) market, and a
substantial portion of the fund's returns are 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
approximately 50 countries covered by Morgan Stanley Capital International
that are considered either developing or emerging markets.
o The unmanaged MSCI World Index is a group of global securities tracked by
Morgan Stanley Capital International.
o The National Association of Securities Dealers Automated Quotation System
Composite Index (the Nasdaq) is a market-value-weighted index comprising all
domestic and non-U.S.-based common stocks listed on the Nasdaq system. It
includes more than 5,000 companies, and it is often considered
representative of the small and medium-sized company stock universe. While
it includes many small and mid-sized company stocks, large-capitalization
technology companies tend to dominate the index.
o The unmanaged Standard & Poor's Composite Index of 500 Stocks (the S&P 500)
represents the performance of the U.S. stock market.
o An investment cannot be made in an index. Unless otherwise indicated, index
results include reinvested dividends, and they do not include sales charges.
AN INVESTMENT IN THE FUND IS NOT A DEPOSIT OF A BANK AND IS NOT INSURED OR
GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY OTHER GOVERNMENT
AGENCY. THERE IS A RISK THAT YOU COULD LOSE SOME OR ALL OF YOUR MONEY.
This report may be distributed only to current shareholders or to persons who
have received a current prospectus of the fund.
AIM GLOBAL CONSUMER PRODUCTS AND SERVICES 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 CONSUMER PRODUCTS AND SERVICES FUND
<PAGE> 4
ANNUAL REPORT / MANAGERS' OVERVIEW
TECH EUPHORIA, THEN SELL-OFF, FELT AROUND THE WORLD
HOW DID THE FUND PERFORM DURING THE REPORTING PERIOD?
High-tech stocks led worldwide equity rallies late in 1999 and early 2000. Heavy
profit-taking, however, plunged world markets into a sell-off in March. Despite
global market volatility, AIM Global Consumer Products and Services Fund posted
favorable returns for the fiscal year ended October 31, 2000. Total returns,
excluding sales charges, for the fund's Class A, Class B and Class C shares were
5.15%, 4.57% and 4.64%, respectively. These returns include gains made during
late 1999 and early 2000, when markets were more exuberant than they became
later in the fiscal year. More recently, performance has been affected by the
sell-off in the technology sector and other market difficulties. The fund's
performance, however, outdistanced that of the MSCI AC World and the MSCI World
Indexes, which returned 0.85% and 1.09%, respectively, for the same period.
WHAT WERE THE MAJOR TRENDS IN THE U.S. MARKETS DURING THE REPORTING PERIOD?
The mantra of world markets this past year could be "Easy dot-com come ... Easy
dot-com go." Markets had a real love/hate affair with tech stocks--there were
incredible bouts of optimism and pessimism, sometimes a day apart. As 1999 ended
and 2000 began, investors were giddy with TMT (telephone, media and
telecommunications) stock euphoria. Sky-high stock valuations seemed of little
consequence. In late March, however, tech optimism was replaced by skepticism
and heavy profit-taking by investors. Investors feared that stocks were now
overvalued and that the Federal Reserve Board (the Fed) might continue to raise
interest rates to slow torrid economic growth.
After raising interest rates in May, the Fed ceased its monetary tightening
policy for the remainder of the reporting period. (The Fed raised rates six
times between June 1999 and May 2000.) 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 (which hit 10-year highs during the third quarter), unrest in the Middle
East and (perhaps most importantly) 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.
Because of strong performance during the first half of the fiscal year, most
market indexes recorded gains for the reporting period. After tech stocks faded,
stocks in several other sectors (such as health care, financial services, energy
and utilities) posted healthy gains.
WHAT HAPPENED IN OTHER WORLD MARKETS OVER THE FISCAL YEAR?
The Japanese stock market mirrored its U.S. counterpart in terms of volatility
following the spring technology sell-off. However, there are signs that
corporate Japan is beginning to take a more aggressive stance toward
cost-cutting to bolster profits. Outside Japan, investment in Asia has weakened
because of political turmoil in many countries and interest-rate concerns.
European markets also moved largely with the Nasdaq. Beyond the market's
concern over high stock valuations, Europe had to contend with a weakening euro.
The euro, Euroland's 11-country common currency, hit a record low during the
reporting period. Since its launch in January 1999 at $1.15, the currency has
spent most of its existence below parity with the U.S. dollar. During the
reporting period, European investors bought dollar-based assets, and U.S.
investors tended to keep their money in U.S. markets. Near the end of the fiscal
year, the European Central Bank increased interest rates to 4.5%, spurred by
rising oil prices, a higher-than-expected rise in producer prices and
employment increases in Germany and France. On a positive note, European
economies remain strong. As a region, Europe is witnessing its best economic
growth in 10 years, with a 3.5% increase in its gross domestic product since
mid-1999.
WHAT SECTORS/COUNTRIES CONTRIBUTED TO THE FUND'S PERFORMANCE?
Over the fiscal year, the fund's performance has been driven by three main
sectors: oil and gas, health care and technology. The bias has been toward the
consumer elements of the better-performing energy/oil and technology sectors.
Over the second and third quarters of 2000, the fund
FUND VS. INDEXES
As of 10/31/00
One-year returns, excluding sales charges
================================================================================
FUND CLASS A SHARES 5.15%
FUND CLASS B SHARES 4.57%
FUND CLASS C SHARES 4.64%
MSCI WORLD INDEX 1.09%
MSCI ALL COUNTRY WORLD INDEX 0.85%
================================================================================
See important fund and index disclosures inside front cover.
AIM GLOBAL CONSUMER PRODUCTS AND SERVICES FUND
2
<PAGE> 5
ANNUAL REPORT / MANAGERS' OVERVIEW
[ART WORK]
PORTFOLIO COMPOSITION
As of 10/31/00, based on total net assets
<TABLE>
<CAPTION>
====================================================================================================================================
TOP 10 HOLDINGS TOP 10 INDUSTRIES TOP 10 COUNTRIES
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1. United Healthcare Corp. 2.95% 1. Health Care (Drugs-Generic & Other) 7.81% 1. United States 48.50%
2. EMC Corp. 2.64 2. Oil & Gas (Drilling & Equipment) 7.26 2. France 8.17
3. Dynegy Inc. 2.41 3. Computers (Peripherals) 4.04 3. United Kingdom 5.58
4. Novartis A.G. (Switzerland) 2.24 4. Banks (Major Regional) 3.19 4. Switzerland 4.93
5. Adobe Systems, Inc. 2.16 5. Oil (International Integrated) 3.16 5. Netherlands 4.37
6. Furukawa Electric Co., Ltd. (The) (Japan) 2.14 6. Health Care (Managed Care) 2.95 6. Germany 3.20
7. Pfizer Inc. 1.69 7. Oil & Gas (Exploration & Production) 2.84 7. Canada 2.57
8. Centrica PLC (U.K.) 1.68 8. Communications Equipment 2.78 8. Japan 2.14
9. CDW Computer Centers, Inc. 1.43 9. Health Care (Specialized Services) 2.78 9. Denmark 1.69
10. Brocade Communications Systems, Inc. 1.40 10. Computers (Software & Services) 2.71 10. Italy 1.63
The fund's portfolio is subject to change, and there is no assurance that the
fund will continue to hold any particular security.
====================================================================================================================================
</TABLE>
began to build significant weightings in health care and financials as these
sectors' fundamentals and earnings improved. Shifts in regional or country
allocation have been more a function of stock selection than regional strategy.
We did increase our weighting in Europe, however, to take advantage of a soft
market and better valuations there, especially in financial and energy
positions.
WHAT WERE SOME OF THE FUND'S TOP HOLDINGS?
o Dynegy: This company markets and trades electricity, natural gas, coal and
other energy products in the United States, the United Kingdom and
continental Europe. The company, which invests in power projects, has formed
alliances with utility companies to sell energy in deregulated markets.
o Novartis: The company's health-care operations, which account for 55% of
sales, include prescription drugs, contact lenses and ophthalmic
medications. Novartis is one of the world's top five pharmaceutical firms.
o Furukawa Electric: The company makes optical-fiber cable, optical fibers and
superconductive wire. It is also a top producer of electric wire and cable,
nonferrous metal and related products.
WHAT IS YOUR SHORT-TERM OUTLOOK FOR THE MARKET?
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, which slowed 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 stabilized as the Federal Reserve Board took at least a
temporary respite from its monetary tightening policy, which had periodically
roiled markets for more than a year. Perhaps most importantly, corporate
profits, while declining, were still impressive for many companies. However,
because of a degree of uncertainty surrounding near-term economic trends and
international developments, all 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 CONSUMER PRODUCTS AND SERVICES FUND
3
<PAGE> 6
ANNUAL REPORT / PERFORMANCE HISTORY
YOUR FUND'S LONG-TERM PERFORMANCE
RESULTS OF A $10,000 INVESTMENT
AIM GLOBAL CONSUMER PRODUCTS AND SERVICES FUND VS. BENCHMARK INDEXES
12/30/94-10/31/00
in thousands
================================================================================
AIM Global Consumer AIM Global Consumer MSCI MSCI
Products and Products and AC World World
Services Fund, Services Fund, Index Index
Class A Shares Class B Shares
--------------------------------------------------------------------------------
12/94 $9,525.00 $10,000.00 $10,000.00 $10,000.00
10/95 12,158.00 12,712.00 11,150.00 11,340.00
10/96 18,094.00 18,828.00 12,889.00 13,188.00
10/97 20,004.00 20,702.00 14,919.00 15,400.00
10/98 21,736.00 22,391.00 16,822.00 17,750.00
10/99 30,910.00 31,688.00 21,264.00 22,172.00
10/00 32,501.00 33,036.00 21,445.00 22,415.00
$32,501.00 $33,036.00 $21,445.00 $22,415.00
Source: Lipper, Inc.
Past performance cannot guarantee comparable future results.
================================================================================
MARKET VOLATILITY CAN SIGNIFICANTLY IMPACT SHORT-TERM PERFORMANCE. RESULTS
OF AN INVESTMENT MADE TODAY MAY DIFFER SUBSTANTIALLY FROM THE HISTORICAL
PERFORMANCE SHOWN.
ABOUT THIS CHART
This chart compares the performance of your fund's Class A and Class B shares to
benchmark indexes over the period 12/30/94-10/31/00. (Please note that index
performance figures are for the period 12/31/94-10/31/00.) Since the last
reporting period, AIM Global Consumer Products and Services Fund has elected to
use the MSCI World Index as its benchmark instead of the MSCI AC World Index.
The new index more closely resembles the securities in which the fund invests.
The fund will no longer measure its performance against the MSCI AC World Index,
the index published in previous reports to shareholders. Because this is the
first reporting period since we have adopted the new index, SEC guidelines
require that we compare the fund's performance to both the old and the new
index. It is important to understand the differences between your fund and an
index. Your fund's total return is shown with a sales charge, and it includes
fund expenses and management fees. An index measures the performance of a
hypothetical portfolio. A market index is not managed, incurring no sales
charges, expenses or fees. If you could buy all the securities that make up a
market index, you would incur expenses that would affect your investment's
return.
AVERAGE ANNUAL TOTAL RETURNS
As of 10/31/00, including sales charges
================================================================================
CLASS A SHARES
Inception (12/30/94) 22.38%
5 Years 20.55
1 Year 0.14*
*5.15%, excluding sales charges
CLASS B SHARES
Inception (12/30/94) 22.73%
5 Years 20.93
1 Year 0.25*
*4.57%, excluding CDSC
CLASS C SHARES
Inception (3/1/99) 15.43%
1 Year 3.78*
*4.64%, excluding CDSC
================================================================================
The fund's average annual total returns as of the close of the reporting period
are shown in the table above. In addition, industry regulations require us to
provide average annual total returns (including sales charges) as of 9/30/00,
the most recent calendar quarter-end, which were: Class A shares, one year,
15.11%; five years, 22.66%; inception (12/30/94), 24.47%. Class B shares, one
year, 15.27%; five years, 23.06%; inception (12/30/94), 24.84%. Class C shares,
one year, 19.27%; inception (3/1/99), 22.39%.
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 sales-charge structure and class expenses.
For fund performance calculations and descriptions of the indexes on this page,
please see the inside front cover.
AIM GLOBAL CONSUMER PRODUCTS AND SERVICES FUND
4
<PAGE> 7
SCHEDULE OF INVESTMENTS
October 31, 2000
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
DOMESTIC COMMON STOCKS-48.45%
AEROSPACE/DEFENSE-1.19%
Boeing Co. (The) 34,500 $ 2,339,531
==============================================================
BANKS (MAJOR REGIONAL)-1.18%
Northern Trust Corp. 27,300 2,330,737
==============================================================
BEVERAGES (NON-ALCOHOLIC)-2.18%
Pepsi Bottling Group, Inc., (The) 54,300 1,880,137
--------------------------------------------------------------
PepsiCo, Inc. 50,000 2,421,875
==============================================================
4,302,012
==============================================================
COMMUNICATIONS EQUIPMENT-1.71%
Cable Design Technologies Corp.(a) 44,700 1,030,894
--------------------------------------------------------------
Corning Inc. 30,500 2,333,250
==============================================================
3,364,144
==============================================================
COMPUTERS (HARDWARE)-1.28%
McDATA Corp.-Class B(a) 30,300 2,525,789
==============================================================
COMPUTERS (PERIPHERALS)-4.04%
Brocade Communications Systems,
Inc.(a) 12,100 2,751,237
--------------------------------------------------------------
EMC Corp.(a) 58,400 5,201,250
==============================================================
7,952,487
==============================================================
COMPUTERS (SOFTWARE &
SERVICES)-2.71%
Adobe Systems Inc. 55,800 4,244,287
--------------------------------------------------------------
Cybear Group(a) 5,211 3,583
--------------------------------------------------------------
i2 Technologies, Inc.(a) 6,400 1,088,000
==============================================================
5,335,870
==============================================================
ELECTRICAL EQUIPMENT-1.24%
General Electric Co. 44,500 2,439,156
==============================================================
ELECTRONICS (COMPONENT
DISTRIBUTORS)-0.78%
Arrow Electronics, Inc.(a) 48,000 1,536,000
==============================================================
ELECTRONICS (INSTRUMENTATION)-0.76%
Varian Inc.(a) 48,300 1,488,244
==============================================================
ELECTRONICS (SEMICONDUCTORS)-1.94%
Analog Devices, Inc.(a) 31,200 2,028,000
--------------------------------------------------------------
Integrated Device Technology,
Inc.(a) 31,900 1,796,369
==============================================================
3,824,369
==============================================================
ENTERTAINMENT-1.02%
Walt Disney Co. (The) 56,200 2,012,662
==============================================================
FINANCIAL (DIVERSIFIED)-1.20%
Citigroup Inc. 45,066 2,371,598
==============================================================
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
HEALTH CARE (DRUGS-GENERIC &
OTHER)-1.50%
Alpharma Inc.-Class A 11,300 $ 438,581
--------------------------------------------------------------
Andrx Group(a) 35,000 2,520,000
==============================================================
2,958,581
==============================================================
HEALTH CARE (DRUGS-MAJOR
PHARMACEUTICALS)-1.69%
Pfizer Inc. 76,900 3,321,119
==============================================================
HEALTH CARE (MANAGED CARE)-2.96%
UnitedHealth Group Inc. 53,200 5,818,750
==============================================================
HEALTH CARE (SPECIALIZED
SERVICES)-2.06%
Laboratory Corp. of America
Holdings(a) 10,300 1,389,212
--------------------------------------------------------------
Quest Diagnostics Inc.(a) 27,800 2,675,750
==============================================================
4,064,962
==============================================================
INVESTMENT BANKING/BROKERAGE-2.08%
Lehman Brothers Holdings Inc. 22,800 1,470,600
--------------------------------------------------------------
Morgan Stanley Dean Witter & Co. 32,700 2,626,219
==============================================================
4,096,819
==============================================================
INVESTMENT MANAGEMENT-1.22%
Alliance Capital Management Holding
L.P. 50,000 2,400,000
==============================================================
NATURAL GAS-2.41%
Dynegy Inc.-Class A 102,400 4,742,400
==============================================================
OIL & GAS (DRILLING &
EQUIPMENT)-6.51%
BJ Services Co.(a) 38,200 2,003,113
--------------------------------------------------------------
ENSCO International Inc. 81,300 2,703,225
--------------------------------------------------------------
Global Marine, Inc.(a) 54,600 1,446,900
--------------------------------------------------------------
Marine Drilling Cos., Inc.(a) 81,700 1,950,588
--------------------------------------------------------------
Nabors Industries, Inc.(a) 35,100 1,786,590
--------------------------------------------------------------
Patterson Energy, Inc.(a) 39,900 1,122,188
--------------------------------------------------------------
Schlumberger Ltd. 6,200 471,975
--------------------------------------------------------------
Smith International, Inc.(a) 19,000 1,339,500
==============================================================
12,824,079
==============================================================
OIL & GAS (EXPLORATION &
PRODUCTION)-1.15%
Anadarko Petroleum Corp. 35,444 2,270,188
==============================================================
OIL & GAS (REFINING &
MARKETING)-0.58%
Valero Energy Corp. 34,400 1,137,350
==============================================================
POWER PRODUCERS (INDEPENDENT)-1.32%
Calpine Corp.(a) 32,900 2,597,044
==============================================================
RESTAURANTS-0.68%
Brinker International, Inc.(a) 34,000 1,334,500
==============================================================
</TABLE>
5
<PAGE> 8
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
RETAIL (COMPUTERS &
ELECTRONICS)-1.43%
CDW Computer Centers, Inc.(a) 43,600 $ 2,809,475
==============================================================
SAVINGS & LOAN COMPANIES-0.88%
Washington Mutual, Inc. 39,300 1,729,200
==============================================================
SERVICES (DATA PROCESSING)-0.75%
DST Systems, Inc.(a) 10,300 634,738
--------------------------------------------------------------
Learning Tree International, Inc.(a) 18,600 841,650
==============================================================
1,476,388
==============================================================
Total Domestic Common Stocks
(Cost $76,728,667) 95,403,454
==============================================================
FOREIGN STOCKS & OTHER EQUITY
INTERESTS-39.54%
AUSTRALIA-1.07%
Australia & New Zealand Banking
Group Ltd. (Banks-Major
Regional)(a) 284,700 2,102,933
==============================================================
BELGIUM-0.28%
ICOS Vision Systems Corp. N.V.
(Equipment-Semiconductor)(a) 18,100 541,869
==============================================================
CANADA-2.57%
Anderson Exploration Ltd.
(Oil-Domestic Integrated)(a) 132,300 2,425,457
--------------------------------------------------------------
Bombardier Inc.-Class B
(Aerospace/Defense) 143,700 2,253,398
--------------------------------------------------------------
Dynetek Industries Ltd.
(Manufacturing-Diversified)(a) 76,100 373,699
==============================================================
5,052,554
==============================================================
DENMARK-1.69%
Novo Nordisk A.S.-Class B (Health
Care-Drugs-Generic & Other)(a) 11,200 2,375,533
--------------------------------------------------------------
Vestas Wind Systems A.S.
(Manufacturing-Specialized) 17,700 958,731
==============================================================
3,334,264
==============================================================
FRANCE-8.17%
Alcatel Optronics S.A.
(Communications Equipment)(a) 11,000 654,394
--------------------------------------------------------------
Assurances Generales de France
(Insurance-Multi-Line) 27,200 1,488,872
--------------------------------------------------------------
Aventis S.A.
(Chemicals-Diversified)(a) 35,700 2,575,228
--------------------------------------------------------------
Azeo (Ez-Gaz it Eaux) (Investments) 17,300 1,123,146
--------------------------------------------------------------
Banque Nation de Paris (Banks-Major
Regional), Wts., expiring
07/15/02(b) 5,460 26,180
--------------------------------------------------------------
BNP Paribas (Banks-Major Regional) 21,100 1,819,302
--------------------------------------------------------------
Bouygues Offshore S.A. (Oil &
Gas-Drilling & Equipment) 29,800 1,466,807
--------------------------------------------------------------
Remy Cointreau S.A.
(Beverages-Alcoholic) 32,200 1,076,665
--------------------------------------------------------------
Sanofi-Synthelabo S.A. (Health
Care-Drugs- Generic & Other) 43,400 2,283,547
--------------------------------------------------------------
Societe Television Francaise 1
(Broadcasting-Television, Radio &
Cable) 30,000 1,637,046
--------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
FRANCE-(CONTINUED)
Total Fina Elf S.A.
(Oil-International Integrated) 13,600 $ 1,945,921
==============================================================
16,097,108
==============================================================
GERMANY-3.20%
Altana A.G. (Health
Care-Drugs-Generic & Other) 17,400 2,111,611
--------------------------------------------------------------
Bayerische Motoren Werke A.G.
(Automobiles)(a) 34,000 1,125,310
--------------------------------------------------------------
Hugo Boss A.G.-Pfd
(Manufacturing-Specialized) 3,900 986,301
--------------------------------------------------------------
Siemens A.G.
(Manufacturing-Diversified) 16,300 2,074,949
==============================================================
6,298,171
==============================================================
IRELAND-1.22%
Elan Corp. PLC-ADR (Health
Care-Drugs-Generic & Other)(a) 46,400 2,409,900
==============================================================
ISRAEL-0.77%
Teva Pharmaceutical Industries
Ltd.-ADR (Health
Care-Drugs-Generic & Other) 25,500 1,507,688
==============================================================
ITALY-1.63%
Bulgari S.p.A. (Consumer-Jewelry,
Novelties & Gifts)(a) 103,700 1,220,629
--------------------------------------------------------------
Ente Nazionale Idrocarburi S.p.A.
(Oil & Gas-Refining &
Marketing)(a) 368,000 1,992,494
==============================================================
3,213,123
==============================================================
JAPAN-2.14%
Furukawa Electric Co., Ltd. (The)
(Metal Fabricators) 160,000 4,208,404
==============================================================
NETHERLANDS-4.37%
Heineken N.V. (Beverages-Alcoholic) 35,700 1,938,996
--------------------------------------------------------------
ING Groep N.V. (Insurance Brokers) 31,800 2,183,794
--------------------------------------------------------------
Koninklijke Numico N.V. (Foods) 48,100 2,249,186
--------------------------------------------------------------
Royal Dutch Petroleum Co.
(Oil-International Integrated) 37,600 2,230,137
==============================================================
8,602,113
==============================================================
NORWAY-1.35%
Norsk Hydro A.S.A.
(Chemicals-Diversified) 66,900 2,660,742
==============================================================
SWEDEN-0.57%
Swedish Match A.B. (Tobacco) 329,500 1,131,124
==============================================================
SWITZERLAND-4.93%
Nestle S.A. (Foods)(a) 1,040 2,155,455
--------------------------------------------------------------
Novartis A.G. (Health
Care-Diversified) 2,904 4,406,169
--------------------------------------------------------------
Serono S.A.-Class B (Health
Care-Drugs-Generic & Other) 1,935 1,740,886
--------------------------------------------------------------
Straumann A.G. (Health
Care-Specialized Services) 653 1,411,509
==============================================================
9,714,019
==============================================================
UNITED KINGDOM-5.58%
Aggreko PLC (Services-Facilities &
Environmental) 187,700 1,005,259
--------------------------------------------------------------
</TABLE>
6
<PAGE> 9
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
<S> <C> <C>
UNITED KINGDOM-(CONTINUED)
Bunzl PLC (Paper & Forest Products) 195,400 $ 1,117,398
-----------------------------------------------------------------------
Centrica PLC (Oil & Gas-Exploration
& Production) 964,400 3,317,360
-----------------------------------------------------------------------
Shell Transport & Trading Co.
(Oil-International Integrated) 253,700 2,041,781
-----------------------------------------------------------------------
Spirent PLC (Communications
Equipment) 158,000 1,465,362
-----------------------------------------------------------------------
Tesco PLC (Retail-Food Chains) 533,800 2,035,675
=======================================================================
10,982,835
=======================================================================
Total Foreign Stocks & Other Equity
Interests (Cost $72,388,910) 77,856,847
=======================================================================
</TABLE>
<TABLE>
<CAPTION>
NUMBER
OF EXERCISE EXPIRATION
CONTRACTS PRICE DATE
<S> <C> <C> <C> <C>
PUT OPTIONS
PURCHASED-0.05%
Washington Mutual,
Inc. (Savings &
Loan Companies)
(Cost $73,342) 385 $45 Dec-00 107,078
=======================================================================
</TABLE>
<TABLE>
<CAPTION>
SHARES
<S> <C> <C>
MONEY MARKET FUNDS-6.77%
STIC Liquid Assets Portfolio(c) 6,664,746 6,664,746
-----------------------------------------------------------------------
STIC Prime Portfolio(c) 6,664,746 6,664,746
=======================================================================
Total Money Market Funds
(Cost $13,329,492) 13,329,492
=======================================================================
TOTAL INVESTMENTS-94.81%
(Cost $162,520,411) 186,696,871
=======================================================================
OTHER ASSETS LESS LIABILITIES-5.19% 10,223,630
=======================================================================
NET ASSETS-100.00% $196,920,501
_______________________________________________________________________
=======================================================================
</TABLE>
Investment Abbreviations:
ADR - American Depositary Receipt
Ltd. - Limited
Pfd. - Preferred
Wts. - Warrants
Notes to Schedule of Investments:
(a) Non-income producing security.
(b) Non-income producing security acquired as part of a unit with or in exchange
for other securities.
(c) The money market fund and the Fund are affiliated by having the same
investment advisor.
See Notes to Financial Statements.
7
<PAGE> 10
STATEMENT OF ASSETS AND LIABILITIES
October 31, 2000
<TABLE>
<S> <C>
ASSETS:
Investments, at market value (cost
$162,520,411) $186,696,871
------------------------------------------------------------
Foreign currencies, at value (cost $7,945,040) 7,938,488
------------------------------------------------------------
Receivables for:
------------------------------------------------------------
Investments sold 4,053,583
------------------------------------------------------------
Fund shares sold 272,233
------------------------------------------------------------
Dividends 302,831
------------------------------------------------------------
Collateral for securities loaned 5,610,412
------------------------------------------------------------
Other assets 29,931
============================================================
Total assets $204,904,349
============================================================
LIABILITIES:
Payables for:
Investments purchased 1,748,139
------------------------------------------------------------
Fund shares reacquired 227,942
------------------------------------------------------------
Collateral upon return of securities loaned 5,610,412
------------------------------------------------------------
Accrued advisory fees 129,583
------------------------------------------------------------
Accrued administrative services fees 4,235
------------------------------------------------------------
Accrued distribution fees 143,953
------------------------------------------------------------
Accrued trustees' fees 3,295
------------------------------------------------------------
Accrued transfer agent fees 45,845
------------------------------------------------------------
Accrued operating expenses 70,444
============================================================
Total liabilities 7,983,848
============================================================
Net assets applicable to shares outstanding $196,920,501
____________________________________________________________
============================================================
NET ASSETS:
Class A $ 82,692,332
____________________________________________________________
============================================================
Class B $110,664,334
____________________________________________________________
============================================================
Class C $ 3,563,835
____________________________________________________________
============================================================
SHARES OUTSTANDING, $0.01 PAR VALUE PER SHARE:
Class A 3,078,176
____________________________________________________________
============================================================
Class B 4,276,551
____________________________________________________________
============================================================
Class C 137,648
____________________________________________________________
============================================================
Class A:
Net asset value and redemption price per
share $ 26.86
------------------------------------------------------------
Offering price per share:
(Net asset value of $26.86 divided by
95.25%) $ 28.20
____________________________________________________________
============================================================
Class B:
Net asset value and offering price per share $ 25.88
____________________________________________________________
============================================================
Class C:
Net asset value and offering price per share $ 25.89
____________________________________________________________
============================================================
</TABLE>
STATEMENT OF OPERATIONS
For the year ended October 31, 2000
<TABLE>
<S> <C>
INVESTMENT INCOME:
Dividends (net of foreign withholding tax of
$196,505) $ 1,497,717
------------------------------------------------------------
Dividends from affiliated money market funds 633,924
------------------------------------------------------------
Interest 21,592
------------------------------------------------------------
Security lending income 66,393
============================================================
Total investment income 2,219,626
============================================================
EXPENSES:
Advisory fees 2,032,116
------------------------------------------------------------
Administrative services fees 50,000
------------------------------------------------------------
Custodian fees 94,792
------------------------------------------------------------
Distribution fees -- Class A 431,352
------------------------------------------------------------
Distribution fees -- Class B 1,213,920
------------------------------------------------------------
Distribution fees -- Class C 18,599
------------------------------------------------------------
Transfer agent fees 399,263
------------------------------------------------------------
Trustees' fees 15,211
------------------------------------------------------------
Other 173,374
============================================================
Total expenses 4,428,627
============================================================
Less: Expenses reimbursed (6,151)
------------------------------------------------------------
Expenses paid indirectly (8,766)
============================================================
Net expenses 4,413,710
============================================================
Net investment income (loss) (2,194,084)
============================================================
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENT SECURITIES AND FOREIGN
CURRENCIES:
Net realized gain (loss) from:
Investment securities 27,078,834
------------------------------------------------------------
Foreign currencies (468,568)
============================================================
26,610,266
============================================================
Change in net unrealized appreciation
(depreciation) of:
Investment securities (15,821,294)
------------------------------------------------------------
Foreign currencies (81,049)
============================================================
(15,902,343)
============================================================
Net gain on investment securities and foreign
currencies 10,707,923
============================================================
Net increase in net assets resulting from
operations $ 8,513,839
____________________________________________________________
============================================================
</TABLE>
See Notes to Financial Statements.
8
<PAGE> 11
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) $ (2,194,084) $ (1,748,031)
------------------------------------------------------------------------------------------
Net realized gain from investment securities and foreign
currencies 26,610,266 44,474,962
------------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) of
investment securities and foreign currencies (15,902,343) 20,709,969
==========================================================================================
Net increase in net assets resulting from operations 8,513,839 63,436,900
==========================================================================================
Distributions to shareholders from net realized gains:
Class A (13,665,029) (1,486,208)
------------------------------------------------------------------------------------------
Class B (20,642,170) (2,314,110)
------------------------------------------------------------------------------------------
Class C (64,428) --
------------------------------------------------------------------------------------------
Advisor Class* (212,239) (341,039)
------------------------------------------------------------------------------------------
Share transactions-net:
Class A 13,348,888 (8,462,976)
------------------------------------------------------------------------------------------
Class B 16,239,334 (14,746,418)
------------------------------------------------------------------------------------------
Class C 3,656,493 209,527
------------------------------------------------------------------------------------------
Advisor Class* 4,771,906 (17,338,191)
==========================================================================================
Net increase in net assets 11,946,594 18,957,485
==========================================================================================
NET ASSETS:
Beginning of year 184,973,907 166,016,422
==========================================================================================
End of year $196,920,501 $184,973,907
__________________________________________________________________________________________
==========================================================================================
NET ASSETS CONSIST OF:
Shares of beneficial interest $151,709,567 $104,692,946
------------------------------------------------------------------------------------------
Undistributed net investment income (loss) (48,605) --
------------------------------------------------------------------------------------------
Undistributed net realized gain from investment securities
and foreign currencies 21,125,724 40,244,803
------------------------------------------------------------------------------------------
Unrealized appreciation of investment securities and
foreign currencies 24,133,815 40,036,158
==========================================================================================
$196,920,501 $184,973,907
__________________________________________________________________________________________
==========================================================================================
</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.
9
<PAGE> 12
NOTES TO FINANCIAL STATEMENTS
October 31, 2000
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES
AIM Global Consumer Products and Services Fund (the "Fund") is a separate series
of AIM Investment Funds (the "Trust"). The Trust is organized as a Delaware
business trust and is registered under the Investment Company Act of 1940, as
amended (the "1940 Act"), as an open-end series management investment company
consisting of 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 Consumer Products
and Services Portfolio (the "Portfolio"). The Portfolio is organized as a
Delaware business trust which is registered under the 1940 Act as an open-end
management investment company.
The Portfolio has investment objectives, policies and limitations
substantially identical to those of the Fund. Therefore, the financial
statements of the Fund and Portfolio have been presented on a consolidated
basis, and represent all activities of both the Fund and Portfolio. Through
October 31, 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
$2,145,479, undistributed net realized gains decreased by $11,145,479 and
paid in capital increased by $9,000,000 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.
10
<PAGE> 13
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 Portfolio
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. Put Options -- The Portfolio may purchase put options. By purchasing a put
option, the Portfolio obtains the right (but not the obligation) to sell the
option's underlying instrument at a fixed strike price. In return for this
right, the Portfolio pays an option premium. The option's underlying
instrument may be a security or a futures contract. Put options may be used
by the Portfolio to hedge securities it owns by locking in a minimum price at
which the Portfolio can sell. If security prices fall, the put option could
be exercised to offset all or a portion of the Portfolio's resulting losses.
At the same time, because the maximum the Portfolio has at risk is the cost
of the option, purchasing put options does not eliminate the potential for
the Portfolio to profit from an increase in the value of the securities
hedged.
H. 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% of 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 reimbursed expenses of $6,151.
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 $267,569 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 $431,352,
$1,213,920 and $18,599, respectively, as compensation under the Plans.
AIM Distributors received commissions of $70,319 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 $1,969 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 $2,784 and reductions in custodian
fees of $5,982 under expense offset arrangements which resulted in a reduction
of the Fund's total expenses of $8,766.
11
<PAGE> 14
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 $5,500,404 were on
loan to brokers. The loans were secured by cash collateral of $5,610,412
received by the Portfolio. For the year ended October 31, 2000, the Portfolio
received fees of $66,393 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
$498,299,484 and $505,066,435, 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 $28,244,600
---------------------------------------------------------
Aggregate unrealized (depreciation) of
investment securities (4,198,111)
=========================================================
Net unrealized appreciation of investment
securities $24,046,489
_________________________________________________________
=========================================================
Cost of investments for tax purposes is
$162,650,382.
</TABLE>
NOTE 7-SHARE INFORMATION
Changes in shares outstanding during the years ended October 31, 2000 and 1999
were as follows:
<TABLE>
<CAPTION>
2000 1999
------------------------- --------------------------
SHARES AMOUNT SHARES AMOUNT
--------- ------------ ---------- ------------
<S> <C> <C> <C> <C>
Sold:
Class A 759,405 $ 22,447,775 487,583 $ 12,807,548
---------------------------------------------------------------------------------------------------------------------
Class B 668,315 19,040,288 423,749 10,940,298
---------------------------------------------------------------------------------------------------------------------
Class C* 141,025 3,973,222 9,183 251,095
---------------------------------------------------------------------------------------------------------------------
Advisor Class** 538 6,033,762 21,722 582,165
=====================================================================================================================
Issued as reinvestment of dividends:
Class A 464,329 12,875,835 59,498 1,416,648
---------------------------------------------------------------------------------------------------------------------
Class B 710,588 19,064,223 91,284 2,126,010
---------------------------------------------------------------------------------------------------------------------
Class C* 1,333 35,784 -- --
---------------------------------------------------------------------------------------------------------------------
Advisor Class** 7,418 212,234 14,024 340,931
=====================================================================================================================
Conversion of Advisor Class shares to Class A shares***
Class A 44,925 1,356,742 -- --
---------------------------------------------------------------------------------------------------------------------
Advisor Class (43,513) (1,356,742) -- --
=====================================================================================================================
Reacquired:
Class A (584,323) (23,331,464) (855,317) (22,687,172)
---------------------------------------------------------------------------------------------------------------------
Class B (764,349) (21,865,177) (1,075,236) (27,812,726)
---------------------------------------------------------------------------------------------------------------------
Class C* (12,455) (352,513) (1,437) (41,568)
---------------------------------------------------------------------------------------------------------------------
Advisor Class** (3,660) (117,348) (638,988) (18,261,287)
=====================================================================================================================
1,389,576 $ 38,016,621 (1,463,935) $(40,338,058)
_____________________________________________________________________________________________________________________
=====================================================================================================================
</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 were converted to Class A shares of the fund.
12
<PAGE> 15
NOTE 8-FINANCIAL HIGHLIGHTS
The following schedule presents financial highlights for a share of the Fund
outstanding throughout the periods indicated.
<TABLE>
<CAPTION>
CLASS A
---------------------------------------------------
YEAR ENDED OCTOBER 31,
---------------------------------------------------
2000(a) 1999 1998 1997 1996
------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $30.79 $ 22.16 $ 22.19 $ 20.98 $ 14.59
-------------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income (loss) (0.22) (0.19) (0.19) (0.15) (0.22)
-------------------------------------------------------------------------------------------------------------------
Net gains on securities (both realized and unrealized) 1.96 9.38 2.05 2.27 7.13
===================================================================================================================
Total from investment operations 1.74 9.19 1.86 2.12 6.91
===================================================================================================================
Less distributions from net realized gains (5.67) (0.56) (1.89) (0.91) (0.52)
===================================================================================================================
Net asset value, end of period $26.86 $ 30.79 $ 22.16 $ 22.19 $ 20.98
___________________________________________________________________________________________________________________
===================================================================================================================
Total return(b) 5.07% 42.20% 8.66% 10.55% 48.82%
___________________________________________________________________________________________________________________
===================================================================================================================
Ratios/supplemental data:
Net assets, end of period (000s omitted) $82,692 $73,695 $59,880 $62,637 $76,900
___________________________________________________________________________________________________________________
===================================================================================================================
Ratio of expenses to average net assets:
With fee waivers 1.82%(c) 1.91% 1.93% 1.84% 2.24%
-------------------------------------------------------------------------------------------------------------------
Without fee waivers 1.82%(c) 1.91% 1.95% 1.99% 2.34%
===================================================================================================================
Ratio of net investment income (loss) to average net assets (0.76)%(c) (0.70)% (0.83)% (0.87)% (1.24)%
___________________________________________________________________________________________________________________
===================================================================================================================
Portfolio turnover rate 259% 160% 221% 392% 169%
___________________________________________________________________________________________________________________
===================================================================================================================
</TABLE>
(a) Calculated using average shares outstanding.
(b) Does not include sales charges.
(c) Ratios are based on average daily net assets of $86,270,364.
<TABLE>
<CAPTION>
CLASS B
-----------------------------------------------------
YEAR ENDED OCTOBER 31,
-----------------------------------------------------
2000(a) 1999 1998 1997 1996
-------- -------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 29.99 $ 21.70 $ 21.86 $ 20.79 $ 14.53
-------------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income (loss) (0.36) (0.31) (0.30) (0.24) (0.31)
-------------------------------------------------------------------------------------------------------------------
Net gains on securities (both realized and unrealized) 1.92 9.16 2.03 2.22 7.09
===================================================================================================================
Total from investment operations 1.56 8.85 1.73 1.98 6.78
===================================================================================================================
Less distributions from net realized gains (5.67) (0.56) (1.89) (0.91) (0.52)
===================================================================================================================
Net asset value, end of period $ 25.88 $ 29.99 $ 21.70 $ 21.86 $ 20.79
___________________________________________________________________________________________________________________
===================================================================================================================
Total return(b) 4.53% 41.52% 8.16% 9.95% 48.11%
___________________________________________________________________________________________________________________
===================================================================================================================
Ratios/supplemental data:
Net assets, end of period (000s omitted) $110,664 $109,808 $91,613 $93,978 $87,904
___________________________________________________________________________________________________________________
===================================================================================================================
Ratio of expenses to average net assets:
With fee waivers 2.32%(c) 2.41% 2.43% 2.34% 2.74%
-------------------------------------------------------------------------------------------------------------------
Without fee waivers 2.32%(c) 2.41% 2.45% 2.49% 2.84%
===================================================================================================================
Ratio of net investment income (loss) to average net assets (1.25)%(c) (1.20)% (1.33)% (1.37)% (1.74)%
___________________________________________________________________________________________________________________
===================================================================================================================
Portfolio turnover rate 259% 160% 221% 392% 169%
___________________________________________________________________________________________________________________
===================================================================================================================
</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 $121,391,977.
13
<PAGE> 16
NOTE 8-FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
CLASS C
----------------------------------
MARCH 1, 1999
(DATE SALES
YEAR ENDED COMMENCED)
OCTOBER 31, TO OCTOBER 31,
2000(a) 1999
---------------- --------------
<S> <C> <C>
Net asset value, beginning of period $29.99 $24.70
--------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income (loss) (0.35) (0.22)
--------------------------------------------------------------------------------------------------
Net gains on securities (both realized and unrealized) 1.92 5.51
==================================================================================================
Total from investment operations 1.57 5.29
==================================================================================================
Less distributions from net realized gains (5.67) --
--------------------------------------------------------------------------------------------------
Net asset value, end of period $25.89 $29.99
__________________________________________________________________________________________________
==================================================================================================
Total return(b) 4.56% 21.42%
__________________________________________________________________________________________________
==================================================================================================
Ratios/supplemental data:
Net assets, end of period (000s omitted) $3,564 $ 232
__________________________________________________________________________________________________
==================================================================================================
Ratio of expenses to average net assets:
With fee waivers 2.32%(c) 2.41%(d)
--------------------------------------------------------------------------------------------------
Without fee waivers 2.32%(c) 2.41%(d)
==================================================================================================
Ratio of net investment income (loss) to average net assets (1.25)%(c) (1.20)%(d)
__________________________________________________________________________________________________
==================================================================================================
Portfolio turnover rate 259% 160%
__________________________________________________________________________________________________
==================================================================================================
</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 $1,859,895.
(d) Annualized.
14
<PAGE> 17
REPORT OF INDEPENDENT ACCOUNTANTS
To the Shareholders of AIM Global Consumer Products and
Services Fund and Board of Trustees of AIM Investment
Funds
In our opinion, the accompanying statement of assets and
liabilities, including the schedule of investments, and
the related statements of operations and of changes in
net assets and the financial highlights present fairly,
in all material respects, the financial position of the
AIM Global Consumer Products and Services Fund 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 Unites States of America which require that we plan
and perform the audit to obtain reasonable assurance
about whether the financial statements are free of
material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the
accounting principles used and significant estimates made
by management, and evaluating the overall financial
statement presentation. We believe that our audits, which
included confirmation of securities at October 31, 2000
by correspondence with the custodian and brokers, provide
a reasonable basis for our opinion.
PRICEWATERHOUSECOOPERS LLP
Boston, Massachusetts
December 18, 2000
15
<PAGE> 18
<TABLE>
<CAPTION>
BOARD OF TRUSTEES OFFICERS OFFICE OF THE FUND
<S> <C> <C>
C. Derek Anderson Robert H. Graham 11 Greenway Plaza
Senior Managing Partner, Chairman and President Suite 100
Plantagenet Capital 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>
REQUIRED FEDERAL INCOME TAX INFORMATION (UNAUDITED)
Of ordinary dividends paid to shareholders during the Fund's tax year ended
October 31, 2000, 2.41% is eligible for the dividends received deduction for
corporations. The Fund distributed long-term capital gains of $22,141,838 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 FAC-
TORS: YOUR FINANCIAL OBJEC-
TIVES, 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>
<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 Aggressive Growth AIM International Emerging Growth AIM 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> <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. GCPS-AR-1
