<PAGE> 1
SEMIANNUAL REPORT / APRIL 30, 1999
AIM
EASTERN EUROPE FUND
[COVER IMAGE]
[AIM LOGO APPEARS HERE]
<PAGE> 2
[COVER IMAGE]
-----------------------------------------
URBAN LANDSCAPE BY ILIA IVANOVITCH MACHOV
EASTERN EUROPE IS MAKING THE CHALLENGING TRANSITION FROM
A STATE-RUN TO A FREE-MARKET ECONOMY. BURGEONING NEW
ENTERPRISES ARE SPROUTING UP IN AND AROUND THE
REGION'S MANY PICTURESQUE CITIES AND TOWNS. WE
BELIEVE MACHOV'S PAINTING WITH ITS VIBRANT COLORS
CAPTURES THE REGION'S CHARM AS WELL AS ITS GREAT POTENTIAL.
-----------------------------------------
AIM Eastern Europe Fund is for shareholders who seek long-term capital
appreciation. The Fund invests primarily in equity and debt securities of
issuers located in Eastern Europe.
ABOUT FUND PERFORMANCE AND PORTFOLIO DATA THROUGHOUT THIS REPORT:
o AIM Eastern Europe Fund's performance figures are historical and reflect
reinvestment of all distributions and changes in net asset value. The Fund's
performance is computed at net asset value without a sales charge.
o The Fund's investment return and principal value, as well as its market
price per share, will fluctuate, so an investor's shares, when redeemed, may
be worth more or less than their original price.
o International investing presents certain risks not associated with investing
solely in the United States. These include risks relating to fluctuations in
the value of the U.S. dollar relative to the values of other currencies, the
custody arrangements made for the Fund's foreign holdings, differences in
accounting, political risks and the lesser degree of public information
required to be provided by non-U.S. companies.
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.
SHARE REPURCHASE SUMMARY FOR
AIM EASTERN EUROPE FUND
AS AN INTERVAL FUND, THE FUND IS REQUIRED TO MAKE ANNUAL OFFERS TO REPURCHASE A
PERCENTAGE OF ITS OUTSTANDING SHARES, WITH REDEMPTION PROCEEDS TO BE PAID TO
PARTICIPATING SHAREHOLDERS IN CASH. THE PERCENTAGE OF OUTSTANDING SHARES THAT
THE FUND WILL OFFER TO REPURCHASE IN EACH ANNUAL OFFER WILL BE ESTABLISHED BY
THE BOARD OF TRUSTEES SHORTLY BEFORE THE COMMENCEMENT OF THE OFFER, BUT IT WILL
NOT BE LESS THAN 5% OR MORE THAN 25% OF THE FUND'S OUTSTANDING SHARES.
AIM EASTERN EUROPE FUND
<PAGE> 3
SEMIANNUAL REPORT / CHAIRMAN'S LETTER
Dear Fellow Shareholder:
With only several months remaining in 1999, the question on
[PHOTO OF many of your minds may be, "How will the year 2000 computer
Charles T. issue affect AIM and my investments?" We would like you to
Bauer, feel comfortable.
Chairman of During March and April, AIM participated in an
the Board of industrywide test that gave us a chance to see how our
THE FUND technology systems might be affected by the changeover to
APPEARS HERE] the year 2000 (Y2K). Everything went as well as we had
hoped; in general, the industry sailed through the testing
process with flying colors. The financial industry has been
seen as a leader in planning for year 2000 concerns. Thus,
it was no surprise to most participants that the test was an
overwhelming success.
The general purpose of the process was to test
electronic interfaces among financial industry members in
the United States and to follow transactions through a
typical trading cycle--from order entry to the settlement process. Investment
banks, broker-dealers, custodian banks and mutual-fund companies all worked
together to make this possible. Approximately 400 firms were involved in the
testing; AIM was one of 70 asset managers.
TEST RESULTS EXCELLENT
During the testing process, thousands of transactions were submitted and
approximately 260,000 steps were tested. Of those, only a handful experienced
minor glitches--just 0.02% of the total number of transactions. All problems
were worked through quickly before the hypothetical trades were settled. Of
course, AIM will keep testing and planning throughout 1999 as a precaution.
AIM'S INTERNAL EFFORTS CONTINUE
As you know from our previous communications to you, AIM has been addressing
the year 2000 issue for several years. During 1998, we made substantial
progress on our preparations. We are now in the final phases of the project,
continually testing internal applications and our interfaces with outside
parties. On the investment side, our portfolio-management staff is evaluating
the Y2K preparedness of the companies in which we invest.
We feel that our preparations for 2000 are very comprehensive, and the
industrywide testing showed that our colleagues in the financial industry are
also working hard to be ready for the new year. We do not think shareholders
need to take any extraordinary measures with their investments to prepare for
2000. However, if you have any lingering concerns, it may reassure you to know
that AIM is finalizing contingency plans that will be ready if there are
unexpected problems. Our plans will give AIM employees guidelines to follow for
a wide variety of situations.
For a more comprehensive discussion of our Y2K efforts and for periodic
updates, please visit our Web site, www.aimfunds.com.
Sincerely,
/s/ CHARLES T. BAUER
Charles T. Bauer
Chairman
AIM Advisors, Inc.
-----------------------------------------
THE FINANCIAL INDUSTRY
HAS BEEN SEEN AS A
LEADER IN PLANNING FOR
YEAR 2000 CONCERNS.
-----------------------------------------
PLEASE NOTE THAT THE INFORMATION ABOUT THE YEAR 2000 IN THIS LETTER IS DEEMED
AIM'S YEAR 2000 READINESS DISCLOSURE.
AIM EASTERN EUROPE FUND
<PAGE> 4
SEMIANNUAL REPORT / MANAGERS' OVERVIEW
REBOUND IN EASTERN EUROPEAN STOCKS
BOOSTS FUND PERFORMANCE
STOCK MARKETS IN EASTERN EUROPE CONTINUED TO RECOVER FROM THE EFFECTS OF LAST
YEAR'S ECONOMIC CRISIS IN RUSSIA. HOW DID AIM EASTERN EUROPE FUND PERFORM DURING
THE PAST SIX MONTHS?
The upswing in stock-market performance in Eastern Europe enabled the Fund to
post respectable gains. For the six-month period ended April 30, 1999, total
return at net asset value was 10.10% for the Fund.
WHAT WAS BEHIND THE IMPROVED PERFORMANCE OF EASTERN EUROPEAN STOCK MARKETS?
Developments outside the region played a significant role in the rebound of
Eastern European stocks. The Brazilian currency crisis in January rattled
stocks in emerging markets, including those in Eastern Europe. However, steps
were quickly taken to stabilize Brazil's currency, averting a more serious
crisis. Additionally, economies in several Asian nations showed signs of
recovery. As a result, investors began to shift more assets back in
emerging-market stocks.
In Eastern Europe, Russian stocks led the charge, soaring 65% in the first
quarter of 1999, and continuing their impressive gains through the end of the
reporting period. Polish and Hungarian stocks made more modest advances, but
were still solid performers.
IN LIGHT OF THE DRAMATIC RISE OF STOCKS IN RUSSIA, WHAT IS YOUR OPINION ABOUT
INVESTING IN THE COUNTRY?
We remain skeptical. The economic fundamentals are very poor in Russia. The
country's economy is expected to contract by at least 5% in 1999. Moreover, we
base our stock selection on corporate earnings growth. And the earnings
prospects for most Russian companies are not encouraging.
The rally in the Russian equity market was relatively narrow and confined
primarily to large-cap oil-company stocks. We took advantage of the run-up in
Russian stocks to divest the Fund of some of its holdings in the country.
Finally, the political situation remains clouded in Russia. This uncertainty
was heightened shortly after the reporting period ended when President Boris
Yeltsin dismissed Yevgeny Primakov as prime minister and named Interior Minister
Sergei Stepashin as his successor. Stepashin is Russia's fourth prime minister
in 15 months.
WHICH EASTERN EUROPEAN COUNTRIES DO YOU LIKE?
We like Hungary and Poland. Despite an economic slowdown in Western Europe,
some analysts are predicting that the Polish and Hungarian economies could each
grow by about 4% this year. The Hungarian and Polish governments have pursued
sound economic policies that have resulted in declining inflation and
unemployment rates.
In Hungary, corporate earnings growth is still strong and stock prices are
very attractive. While the most recent earnings reports in Poland were
generally a little disappointing, we are still finding companies there that are
performing well.
As of April 30, 1999, the Fund's geographic exposure was Hungary, 34.1%;
Poland, 19.9%; and Russia, 12.9%. The most significant change was the increase
in the Fund's Polish holdings from 15.3% on October 31, 1998.
BUDAPEST, WARSAW STOCK EXCHANGES DATE BACK TO 19TH CENTURY
While Eastern European countries are considered emerging markets, stock
exchanges are hardly new to the region. In Poland, for example, the first stock
exchange opened in Warsaw on May 12, 1817. By 1938, about 130 securities were
traded on the Warsaw exchange, including corporate, municipal and government
bonds as well as stocks.
In Hungary, the Commodity and Stock Exchange was established by decree of
Emperor Franz Joseph I in 1864. By the turn of the century, quotes of the
Budapest exchange were regularly published in Vienna, Frankfurt, Paris and
London. The Budapest exchange was closed for slightly more than a year in the
early 1930s after the Great Depression hit Hungary.
After World War II, the Warsaw and Budapest exchanges did not re-emerge
until the fall of communism in Poland and Hungary. The Budapest exchange
resumed operations in June 1990 while the Warsaw exchange was re-established in
April 1991. As of May 1999, there were nearly 120 stocks listed on the Warsaw
exchange and about 55 on the Budapest exchange. Indexes used to track the
performance of the stocks listed on these exchanges are the BUX for the
Budapest exchange and the WIG for the Warsaw exchange.
MERGER OF AIM EASTERN EUROPE FUND INTO AIM DEVELOPING MARKETS FUND PROPOSED
The Board of Trustees of AIM Eastern Europe Fund, a closed-end fund, has voted
in favor of the merger of the Fund into AIM Developing Markets Fund, an
open-end fund. The Board of Directors of AIM Developing Markets Fund also has
approved the merger. The shareholder meeting to consider the proposal will be
held in August. The merger is subject to shareholders' approval.
See important Fund and index disclosures inside front cover.
AIM EASTERN EUROPE FUND
2
<PAGE> 5
SEMIANNUAL REPORT / MANAGERS' OVERVIEW
PORTFOLIO COMPOSITION
As of 4/30/99, based on total net assets
================================================================================
Geographic Allocation Top 10 Equity Holdings
- --------------------------------------------------------------------------------
1. Hungary 34.13% 1. Magyar Tavkozlesi (MATAV) 12.21%
2. Poland 19.85 (Hungary)
3. Russia 12.92 2. MOL Magyar Olaj-es 10.54
4. Czech Republic 3.85 Gazipari Rt. (Hungary)
5. Austria 3.84 3. Surgutneftegaz (Russia) 7.37
6. Croatia 3.70 4. OTP Bank GDR (Hungary) 4.81
7. Estonia 3.66 5. Julius Meinl International AG. 3.84
8. Ireland 1.88 (Austria)
9. Lithuania 1.61 6. Bank Rozwoju Eksportu S.A. 3.03
10. Romania 1.61 (Poland)
7. Elektrim S.A. (Poland) 3.01
8. Pannonplast Rt (Hungary) 3.00
9. Kredyt Bank PBI. (Poland) 2.82
10 Pliva d.d. (Croatia) 2.75
The Fund's portfolio is subject to change, and there is no assurance that the
Fund will continue to hold any particular security.
================================================================================
BESIDES EARNINGS, WHAT OTHER FACTORS DO YOU TAKE INTO CONSIDERATION IN
SELECTING STOCKS?
In assessing the valuation of a stock, we compare its price to that of the
stocks of similar companies in Eastern Europe, in other developing markets in
Asia and Latin America, and in Western Europe and North America. We also like
companies that are potential takeover targets, as the value of a company's
stock normally appreciates when it is acquired.
Typically, we like companies, such as banks and manufacturers, that are
oriented toward meeting growth in domestic consumer demand. With a population
of about 450 million, Eastern Europe's potential lies primarily in its
prospects as a large consumer market.
WHAT WERE THE FUND'S INDUSTRY WEIGHTINGS?
Oil-company stocks made up slightly more than 19.2% of the Fund's holdings as of
April 30, 1999. A surge in oil prices sparked a rally in this sector and helped
the Fund's performance. The Fund's other industry weightings included banks,
18.6%; telephone companies, 13%; and telecommunications, 7.8%.
WHAT WERE SOME OF THE FUND'S TOP HOLDINGS?
The Fund's top 10 holdings are similar to what they were at the beginning of the
reporting period. Two new additions to the top 10 are OTP Bank of Hungary and
Elektrim, a Polish conglomerate. Founded in the 1840s, nationalized in 1947 and
privatized in 1995, OTP is one of Hungary's largest banks with more than 400
branches. Elektrim, which recently changed its upper management, has divested
itself of 80 noncore businesses and is focusing on energy and
telecommunications.
The Fund's largest holdings remain Magyar Tavkozlesi (MATAV), a Hungarian
telecommunications company, and MOL Magyar Olaj-es Gazipari, a Hungarian oil
company.
The Fund's other major holdings include Pannonplast, a Hungarian plastics
firm and Bank Rozwoju Eksportu, a Polish bank.
WHAT IS YOUR OUTLOOK?
We remain optimistic about the long-term prospects for several Eastern European
countries, especially Hungary and Poland. Although the road hasn't always been
smooth, Poland and Hungary appear to be well on their way to making a
successful transition to a free-market, consumer-driven economy. Additionally,
Poland, Hungary, the Czech Republic and several other nations in the region
have exhibited a relatively high degree of political stability and appear to be
committed to democracy. Unfortunately, the same cannot be said of Russia, where
the economic and political situation remains troubling.
ABOUT THE PORTFOLIO MANAGERS
PETER JARVIS-Fund Manager with the Fund's sub-advisor, INVESCO Asset Management
Ltd. in London, since 1993, and since 1998, a member of the INVESCO Central and
Eastern Europe Asset Management Group specializing in Eastern Europe. Mr. Jarvis
became lead Portfolio Manager for the Fund in 1998. He received his B.A. Hons.
in Mathematics from St. John's College (Oxford University) in 1993.
JONATHAN BROCK-Senior Investment Manager with INVESCO Asset Management Ltd. in
London since 1994. Also since 1994, he has been a member of the INVESCO Central
and Eastern Europe Asset Management Group. Mr. Brock became Portfolio Manager
for the Fund in 1998. From 1991 to 1994, he was a Chartered Accountant with
Price Waterhouse in London. He received his M.A. Hons. in Classics from
Cambridge University in 1990.
NADYA WELLS-Investment Manager with INVESCO Asset Management Ltd. in London
since 1995. Also since 1995, she has been a member of the INVESCO Central and
Eastern Europe Asset Management Group. Ms. Wells became Portfolio Manager for
the Fund in 1998. From 1993 to 1995 she was with Ernst & Young Management
Consultancy in London. She received her B.A. Hons. in Modern History and Modern
Languages from Oxford University in 1993.
See important Fund and index disclosures inside front cover.
AIM EASTERN EUROPE FUND
3
<PAGE> 6
SCHEDULE OF INVESTMENTS
April 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS (a)
- ------------------ ------- ----------- ----------- ----------
<S> <C> <C> <C> <C>
Energy (26.9%)
- --------------
MOL Magyar Olaj - es Gazipari Rt. - Reg S - GDR (b)(c)... HGRY 218,800 $ 4,923,000 10.5
Oil
Surgutneftegaz - ADR (b)................................. RUS 430,000 3,440,000 7.4
Oil
Elektrim Spolka Akcyjna S.A.............................. POL 117,144 1,404,533 3.0
Energy Sources
Gazprom Reg S - ADR (b)(c)............................... RUS 73,794 784,061 1.7
Electrical & Gas Utilities
Ceske Energeticke Zavody AS (d).......................... CZK 550,000 777,592 1.7
Electrical & Gas Utilities
Unified Energy Systems................................... RUS -- -- 1.3
Electrical & Gas Utilities
Common (b)............................................ -- 6,920,000 346,000 --
Reg S GDR (b)(c)(d)................................... -- 50,137 288,288 --
Bitech Petroleum Corp. (d)............................... CAD 596,000 592,974 1.3
Oil
-----------
12,556,448
-----------
Services (25.9%)
- ---------------
Magyar Tavkozlesi Rt. - ADR (b).......................... HGRY 202,700 5,700,938 12.2
Telephone - Networks
Julius Meinl International AG............................ ASTRI 84,854 1,793,644 3.9
Retailers - Food
AS Eesti Telekom Reg S - GDR (b)(c)...................... EST 59,000 1,247,850 2.7
Telecom - Other
Telekomunikacja Polska S.A. Reg S - GDR (b)(c)(d)........ POL 170,681 1,062,489 2.3
Telecom - Other
SPT Telecom AS (d)....................................... CZK 70,000 1,017,859 2.2
Telecom - Other
Danubius Hotels and Spa Rt. (d).......................... HGRY 37,000 617,944 1.3
Leisure & Tourism
Russian Telecommunication Development Corp............... RUS -- -- 0.5
Telephone Networks
Non-voting (b)(c)(d)(e)(f)............................ -- 52,600 131,500 --
Voting (b)(c)(d)(e)(f)................................ -- 38,400 96,000 --
Nizhny Novgorod Sviazinform (b).......................... RUS 295,000 156,350 0.3
Telecom - Other
Chelyabinsk Svyazinform (b).............................. RUS 14,109 144,617 0.3
Telecom - Other
Samara Svyazinform....................................... RUS -- -- 0.3
Telephone - Regional/Local
Common (b)(c)......................................... -- 4,600 74,865 --
Preferred (b)(c)...................................... -- 8,900 44,545 --
Technoimpex (b)(d)(e)(f).................................. HGRY 1,400 -- --
Wholesale & International Trade
-----------
12,088,601
-----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
4
<PAGE> 7
SCHEDULE OF INVESTMENTS (cont'd)
April 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS -- CONTINUED COUNTRY SHARES (NOTE 1) ASSETS (a)
- ------------------------------- ------- ----------- ----------- ----------
<S> <C> <C> <C> <C>
Finance (18.6%)
OTP Bank Reg S - GDR (b)(c).............................. HGRY 52,745 $ 2,246,937 4.8
Banks - Money Center
Bank Handlowy W. Warszawie............................... POL 3.1
Banks - Money Center
Common................................................ -- 70,000 857,143 --
Reg S GDR (b)(c)...................................... -- 47,139 558,597 --
GDR (b)............................................... -- 2,590 29,290 --
Bank Rozwoju Eksportu S.A................................ POL 63,120 1,416,980 3.0
Banks - Money Center
Kredyt Bank S.A. Reg S - GDR (b)(c)(d)................... POL 63,770 1,316,850 2.8
Banks - Money Center
Vilniaus Bankas AB Reg S - GDR (b)(c).................... LIT 104,591 753,055 1.6
Banks - Money Center
Bank Slaski S.A.......................................... POL 13,000 593,622 1.3
Banks - Money Center
Eesti Uhispank - GDR (b)(d).............................. EST 86,000 462,250 1.0
Banks - Money Center
Zagrebacka Banka d.d. - GDR (b).......................... CRT 50,705 444,936 1.0
Banks - Money Center
Ergo Bank S.A............................................ GK 1 87 0.0
Banks - Money Center
-----------
8,679,747
-----------
Materials/Basic Industry (4.7%)
Pannonplast Rt........................................... HGRY 72,985 1,388,662 3.0
Plastics & Rubber
Stomil Olsztyn S.A....................................... POL 161,674 763,002 1.6
Plastics & Rubber
BorsodChem Rt. Reg S - GDR (b)(c)........................ HGRY 1,900 45,600 0.1
Chemicals
-----------
2,197,264
-----------
Investment Funds (4.5%)
Baltic Republics Fund Ltd. (b)(d)(f)..................... RUS 9,000 877,500 1.9
Country Fund
Romania Fund Ltd. (b)(d)................................. ROM 15,000 750,000 1.6
Country Fund
Ladenburg Thalmann Ukraine Fund Ltd. (b)(d).............. UKR 10,000 450,000 1.0
Country Fund
-----------
2,077,500
-----------
Consumer Non-Durables (3.3%)
Okocimskie Zaklady Piwowarskie S.A. (d).................. POL 190,000 979,082 2.1
Beverage - Alcoholic
Russkie Samotsvety (b)(c)(d)............................. RUS 50,000 287,750 0.6
Other Consumer Goods
</TABLE>
The accompanying notes are an integral part of the financial statements.
5
<PAGE> 8
SCHEDULE OF INVESTMENTS (cont'd)
April 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS -- CONTINUED COUNTRY SHARES (NOTE 1) ASSETS (A)
- ------------------------------- ------- ----------- ----------- ----------
<S> <C> <C> <C> <C>
Zaklady Piwowarskie w Zywcu S.A.......................... POL 2,728 $ 286,718 0.6
Beverage - Alcoholic
-----------
1,553,550
-----------
Consumer Durables (2.7%)
Mezogazdasagi Gepgyarto (d)(f)........................... HGRY 69,000 583,485 1.3
Auto Parts
North American Business Industries (d)................... HGRY 30,000 427,466 0.9
Auto Parts
Nizhnekamskshina (b)(d).................................. RUS 100,000 237,500 0.5
Auto Parts
-----------
1,248,451
-----------
Health Care (2.7%)
Pliva d.d. Reg S - GDR (b)(c)............................ CRT 81,000 1,283,850 2.7
Pharmaceuticals
-----------
1,283,850
-----------
TOTAL EQUITY INVESTMENTS (cost $60,341,362)................. 41,685,411 89.3
----------- -----
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
FIXED INCOME INVESTMENTS AMOUNT
-----------
<S> <C> <C> <C> <C>
Government & Government Agency Obligations (0.0%)
Deutsche Bank AG London Note linked to Gosudarstvennyie
Kratkosrochynie Obligatsii 0.00% due 6/9/99
(c)(d)(e)(f)(g)........................................ RUS $14,652,000 -- --
----------- -----
-- --
----------- -----
TOTAL FIXED INCOME INVESTMENTS (cost $1,698,293)............ -- --
----------- -----
</TABLE>
The accompanying notes are an integral part of the financial statements.
6
<PAGE> 9
SCHEDULE OF INVESTMENTS (cont'd)
April 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
PRINCIPAL VALUE % OF NET
REPURCHASE AGREEMENT AMOUNT (NOTE 1) ASSETS (a)
- -------------------- ----------- ----------- ----------
<S> <C> <C> <C> <C>
Dated 04/30/99, with State Street Bank & Trust Company,
due 05/03/99, for an effective yield of 4.85%,
collateralized by $7,015,000 U.S. Treasury Bonds, 12.75%
due 11/15/10 (market value of collateral is $10,154,213
including accrued interest). (cost $9,952,000).......... $ 9,952,000 $ 9,952,000 21.3
----------- -----
TOTAL INVESTMENTS (cost $71,991,655)*....................... 51,637,411 110.6
Other Assets and Liabilities................................ (4,945,351) (10.6)
----------- -----
NET ASSETS.................................................. $46,692,060 100.0
=========== =====
</TABLE>
- ------------------
(a) Percentages indicated are based on net assets of $46,692,060.
(b) U.S. currency denominated.
(c) Valued in good faith at fair value using procedures approved by the Board
of Trustees.
(d) Non-income producing security.
(e) Security issued under Regulatory S Rule 144A and additional restrictions
may apply in the resale of such securities.
(f) At April 30, 1999, the Fund owned the following restricted securities
constituting 3.6% of net assets which may not be publicly sold without
registration under the Securities Act of 1933 (Note 1). Additional
information on restricted securities is as follows:
<TABLE>
<CAPTION>
ACQUISITION VALUE
DATES SHARES COST PER SHARE
----------- ------ ---------- ---------
<S> <C> <C> <C> <C>
Baltic Republics Fund, Ltd.................................. 9/02/94 9,000 $ 900,000 $97.50
Mezogazdasagi Gepgyarto Rt.................................. 2/26/97 69,000 955,138 8.46
Russian Telecommunication Development Corp.:
Non-voting............................................... 12/20/93 52,600 526,000 2.50
Voting................................................... 12/20/93 38,400 384,000 2.50
Technoimpex................................................. 11/22/90 1,400 2,989,406 0.00
</TABLE>
(g) The issuer's obligation is limited to paying the holder a maturity value
based on the amounts that would have been paid to a direct holder of the
referenced zero coupon government security. In August 1998, the Russian
government announced the restructuring of its short-term debt. At that
time, interest accruals ceased due to this uncertainty. Details of the
restructuring have not been finalized.
* For Federal income tax purposes, cost is $73,487,655 and appreciation
(depreciation) of securities is as follows:
<TABLE>
<S> <C>
Unrealized appreciation:................ $ 4,476,804
Unrealized depreciation:................ (26,327,048)
------------
Net unrealized depreciation:............ $(21,850,244)
============
</TABLE>
Abbreviations:
ADR -- American Depositary Receipt
GDR -- Global Depositary Receipt
The accompanying notes are an integral part of the financial statements.
7
<PAGE> 10
SCHEDULE OF INVESTMENTS (cont'd)
April 30, 1999 (Unaudited)
The Fund's Schedule of Investments at April 30, 1999 was concentrated in the
following countries:
<TABLE>
<CAPTION>
PERCENTAGE OF NET ASSETS(a)
-----------------------------------
SHORT-TERM
COUNTRY (COUNTRY CODE/CURRENCY CODE) EQUITY AND OTHER TOTAL
- ------------------------------------ ------ ---------- -----
<S> <C> <C> <C>
Austria (ASTRI/ATS)......................................... 3.8 3.8
Canada (CAD/CAD)............................................ 1.3.. 1.3
Croatia (CRT/HRK)........................................... 3.7.. 3.7
Czech Republic (CZK/CZK).................................... 3.8 3.8
Estonia (EST/EEK)........................................... 3.7 3.7
Greece (GK/GRD)............................................. 0.0.. 0.0
Hungary (HGRY/HUF).......................................... 34.1 34.1
Ireland (IRE/EUR)........................................... 1.9 1.9
Lithuania (LIT/LTL)......................................... 1.6 1.6
Poland (POL/PLN)............................................ 19.9.. 19.9
Romania (ROM/ROL)........................................... 1.6 1.6
Russia (RUS/RUR)............................................ 12.9 12.9
Ukraine (UKR/UKR)........................................... 1.0 1.0
United States (US/USD)...................................... 0.0 10.7 10.7
---- ---- -----
Total 89.3.. 10.7 100.0
==== ==== =====
</TABLE>
- ------------------
(a) Percentages indicated are based on Net Assets of $46,692,060.
The accompanying notes are an integral part of the financial statements.
8
<PAGE> 11
STATEMENT OF ASSETS AND LIABILITIES
April 30, 1999
(Unaudited)
<TABLE>
<S> <C> <C>
ASSETS:
Investments in securities, at value
(cost $62,039,655) $ 41,685,411
- ---------------------------------------------------------------
Repurchase agreement, at value and cost 9,952,000
- ---------------------------------------------------------------
U.S. currency 255
- ---------------------------------------------------------------
Foreign currencies (cost $7) 7
- ---------------------------------------------------------------
Receivables for:
Securities sold 366,700
- ---------------------------------------------------------------
Dividends and foreign withholding
taxes 90,286
- ---------------------------------------------------------------
Total assets 52,094,659
- ---------------------------------------------------------------
LIABILITIES:
Payables for:
Capital shares repurchased 5,082,820
- ---------------------------------------------------------------
Repurchase offer expenses 104,263
- ---------------------------------------------------------------
Accrued printing and postage expenses 69,504
- ---------------------------------------------------------------
Accrued investment management fees 52,261
- ---------------------------------------------------------------
Accrued professional fees 33,318
- ---------------------------------------------------------------
Accrued trustees' fees and expenses 13,703
- ---------------------------------------------------------------
Accrued administration fees 6,272
- ---------------------------------------------------------------
Accrued custodian fees 1,692
- ---------------------------------------------------------------
Other liabilities 38,766
- ---------------------------------------------------------------
Total liabilities 5,402,599
- ---------------------------------------------------------------
Net assets applicable to shares
outstanding $ 46,692,060
- ---------------------------------------------------------------
Net asset value per share ($46,692,060/
5,864,783 capital shares outstanding) $ 7.96
- ---------------------------------------------------------------
NET ASSETS CONSIST OF:
Paid-in capital (Note 5) $ 82,802,588
- ---------------------------------------------------------------
Accumulated net investment loss (86,214)
- ---------------------------------------------------------------
Accumulated net realized loss on
investment securities and foreign
currencies (15,602,917)
- ---------------------------------------------------------------
Net unrealized depreciation on foreign
currencies (67,153)
- ---------------------------------------------------------------
Net unrealized depreciation of
investment securities (20,354,244)
- ---------------------------------------------------------------
Total -- representing net assets
applicable to capital shares
outstanding $ 46,692,060
- ---------------------------------------------------------------
</TABLE>
STATEMENT OF OPERATIONS
For the six months ended April 30, 1999
(Unaudited)
<TABLE>
<S> <C>
INVESTMENT INCOME:
Interest and other $ 405,138
- -------------------------------------------------------------
Dividends (net of foreign withholding tax of
$451) 3,249
- -------------------------------------------------------------
Total investment income 408,387
- -------------------------------------------------------------
EXPENSES:
Investment management fees 310,265
- -------------------------------------------------------------
Administration fees 49,634
- -------------------------------------------------------------
Professional fees 41,003
- -------------------------------------------------------------
Printing and postage expenses 38,852
- -------------------------------------------------------------
Custodian fees 22,633
- -------------------------------------------------------------
Trustees' fees and expenses 14,015
- -------------------------------------------------------------
Transfer agent fees 8,945
- -------------------------------------------------------------
Other expenses 21,664
- -------------------------------------------------------------
Total expenses before reimbursement 507,011
- -------------------------------------------------------------
Expenses reimbursed (12,410)
- -------------------------------------------------------------
Total net expenses 494,601
- -------------------------------------------------------------
Net investment loss (86,214)
- -------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) FROM
INVESTMENT SECURITIES AND FOREIGN CURRENCIES:
Net realized gain (loss) from:
Investment securities (6,184,796)
- -------------------------------------------------------------
Foreign currencies (17,604)
- -------------------------------------------------------------
(6,202,400)
- -------------------------------------------------------------
Net unrealized appreciation (depreciation) of:
Foreign currencies (10,210)
- -------------------------------------------------------------
Investment securities 11,078,421
- -------------------------------------------------------------
11,068,211
- -------------------------------------------------------------
Net realized and unrealized gain on investments
and foreign currencies 4,865,811
- -------------------------------------------------------------
Net increase in net assets resulting from
operations $ 4,779,597
=============================================================
</TABLE>
The accompanying notes are an integral part of the financial statements.
9
<PAGE> 12
STATEMENTS OF CHANGES IN NET ASSETS
For the six months ended April 30, 1999 and the year ended October 31, 1998
(Unaudited)
<TABLE>
<CAPTION>
APRIL 30, 1999 OCTOBER 31, 1998
-------------- ----------------
<S> <C> <C>
OPERATIONS:
Net investment income (loss) $ (86,214) $ (96,612)
- -----------------------------------------------------------------------------------------------------
Net realized loss on investment securities and foreign
currencies (6,202,400) (8,099,236)
- -----------------------------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) of
foreign currencies (10,210) (49,219)
- -----------------------------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) of
investment securities 11,078,421 (38,905,480)
- -----------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
operations 4,779,597 (47,150,547)
- -----------------------------------------------------------------------------------------------------
Distributions to shareholders:
From net realized gains on investments -- (28,514,192)
- -----------------------------------------------------------------------------------------------------
In excess of net realized gains on investments -- (19,505)
- -----------------------------------------------------------------------------------------------------
Total distributions -- (28,533,697)
- -----------------------------------------------------------------------------------------------------
Capital share transactions: (Note 5)
Cost of shares repurchased pursuant to annual repurchase
offer (Note 6) (5,187,083) (4,938,777)
- -----------------------------------------------------------------------------------------------------
Total decrease in net assets (407,486) (80,623,021)
- -----------------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 47,099,546 127,722,567
- -----------------------------------------------------------------------------------------------------
End of period $46,692,060* $ 47,099,546
=====================================================================================================
</TABLE>
* Including accumulated net investment loss of $(86,214).
The accompanying notes are an integral part of the financial statements.
10
<PAGE> 13
NOTES TO FINANCIAL STATEMENTS
April 30, 1999
(Unaudited)
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES
AIM Eastern Europe Fund ("Fund"), formerly G.T. Global Eastern Europe Fund, is
organized as a Massachusetts business trust and is registered under the
Investment Company Act of 1940, as amended ("1940 Act"), as a non-diversified,
closed-end management investment company.
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of income and expenses during the reporting period. Actual
results could differ from those estimates. The following is a summary of
significant accounting policies in conformity with generally accepted accounting
principles consistently followed by the Fund in the preparation of the financial
statements.
A. Portfolio Valuation-Equity securities are valued at the last sale price on
the exchange on which such securities are traded, or on the principal
over-the-counter market on which such securities are traded, as of the
close of business on the day the securities are being valued, or, lacking
any sales, are valued at the mean between closing bid and asked prices. In
cases where securities are traded on more than one exchange, or traded both
on an exchange and over the counter, the securities are valued on the
exchange or in the market determined by A I M Advisors, Inc. (the
"Manager") to be the primary market.
Fixed income investments are valued at the mean of representative quoted
bid and asked prices for such investments or, if such prices are not
available, at prices for investments of comparable maturity, quality and
type; however, when the Manager deems it appropriate, prices obtained for
the day of valuation from a bond pricing service will be used. Short-term
investments are valued at amortized cost, adjusted for foreign exchange
translation and market fluctuation, if any.
Investments for which market quotations are not readily available
(including restricted securities which are subject to limitations on their
sale) are valued at fair value as determined in good faith by or under the
direction of the Fund's Board of Trustees.
Portfolio securities which are primarily traded on foreign exchanges are
generally valued at the preceding closing values of such securities on
their respective exchanges, and those values are then translated into U.S.
dollars at the current exchange rates, except that when an occurrence
subsequent to the time a value was so established is likely to have
materially changed such value, then the fair value of those securities will
be determined by consideration of other factors by or under the direction
of the Fund's Board of Trustees.
B. Foreign Currency Translation-The accounting records of the Fund are
maintained in U.S. dollars. The market values of foreign securities,
currency holdings, and other assets and liabilities are recorded in the
books and records of the Fund after translation to U.S. dollars based on
the exchange rates on that day. The cost of each security is determined
using historical exchange rates. Income and withholding taxes are
translated at prevailing exchange rates when earned or incurred.
The Fund does not isolate that portion of the results of operations
resulting from changes in foreign exchange rates on investments from 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.
Reported net realized foreign exchange gains or losses arise from sales
and maturities of short-term securities, forward foreign currency
contracts, sales of foreign currencies, currency gains or losses realized
between the trade and settlement dates on securities transactions, and the
difference between the amounts of dividends, interest, and foreign
withholding taxes recorded on the Fund's books and the U.S. dollar
equivalent of the amounts actually received or paid. Net unrealized foreign
exchange gains or losses arise from changes in the value of assets and
liabilities other than investments in securities at period end, resulting
from changes in exchange rates.
C. Repurchase Agreements-With respect to repurchase agreements entered into by
the Fund, it is the Fund's policy to always receive, as collateral, U.S.
government securities or other high quality debt securities of which the
value, including accrued interest, is at least equal to the amount to be
repaid to the Fund under each agreement at its maturity.
D. Forward Foreign Currency Contracts-A forward foreign currency contract
("Forward Contract") is an agreement between two parties to buy and sell a
currency at a set price on a future date. The market value of the Forward
Contract fluctuates with changes in currency exchange rates. The Forward
Contract is marked-to-market daily and the change in market value is
recorded by the Fund as an unrealized gain or loss.
When the Forward Contract is closed, the Fund records a realized gain or
loss equal to the difference between the value at the time it was opened
and the value at the time it was closed. Forward Contracts involve market
risk in excess of the amount shown in the Fund's "Statement of Assets and
Liabilities." The Fund could be exposed to risk if a counterparty is unable
to meet the terms of the contract or if the value of the currency changes
unfavorably. The Fund may enter into Forward Contracts in connection with
planned purchases or sales of securities, or to hedge against adverse
fluctuations in exchange rates between currencies.
E. Futures Contracts-A futures contract is an agreement between two parties to
buy and sell a security at a set price on a future date. Upon entering into
such a contract the Fund is required to pledge to the broker an amount of
cash or securities equal to the minimum "initial margin" requirements of
the exchange on which the contract is traded. Pursuant to the contract, the
Fund
11
<PAGE> 14
agrees to receive from or pay to the broker an amount of cash equal to the
daily fluctuation in value of the contract. Such receipts or payments are
known as "variation margin" and are recorded by the Fund as unrealized
gains or losses. When the contract is closed, the Fund records a realized
gain or loss equal to the difference between the value of the contract at
the time it was opened and the value at the time it was closed. The
potential risk to the Fund is that the change in value of the underlying
securities may not correlate to the change in value of the contracts. The
Fund may use futures contracts to manage its exposure to the stock market
and to fluctuations in currency values or interest rates.
F. Security Transactions and Related Investment Income-Security transactions
are accounted for on the trade date (date the order to buy or sell is
executed). The cost of securities sold is determined on a first-in,
first-out basis, unless otherwise specified. Dividend income is recorded on
the ex-dividend date, or as soon as the Fund is informed of the dividend.
Interest income is recorded on the accrual basis. Where a high level of
uncertainty exists as to its collection, income is recorded net of all
withholding tax with any rebate recorded when received. The Fund may trade
securities on other than normal settlement terms. This may increase the
risk if the counterparty fails to deliver and causes the Fund to
subsequently invest at less advantageous prices.
G. Taxes-It is the policy of the Fund to meet the requirements for
qualification as a "regulated investment company" under the Internal
Revenue Code of 1986, as amended ("Code"). It is also the intention of the
Fund to make distributions sufficient to avoid imposition of any excise tax
under Section 4982 of the Code. Therefore, no provision has been made for
Federal taxes on income and capital gains, or unrealized appreciation of
securities held, and excise tax on income and capital gains. The fund
currently has a capital loss carryforward of $7,904,518 as of October 31,
1998 which expires in 2006.
H. Distributions to Shareholders-Distributions to shareholders are recorded by
the Fund on the ex-date. Income and capital gain distributions are
determined in accordance with Federal income tax regulations, which may
differ from generally accepted accounting principles. These differences are
primarily due to differing treatments of income and gains on various
investment securities held by the Fund and timing differences.
I. Foreign Securities-There are certain additional considerations and risks
associated with investing in foreign securities and currency transactions
that are not inherent in investments of domestic origin. The Fund's
investments in emerging market countries may involve greater risks than
investments in more developed markets and the price of such investments may
be volatile. These risks of investing in foreign and emerging markets may
include foreign currency exchange rate fluctuations, perceived credit risk,
adverse political and economic developments and possible adverse foreign
government intervention.
J. Restricted Securities-The Fund is permitted to invest in privately placed
restricted securities. These securities may be resold in transactions
exempt from registration or to the public if the securities are registered.
Disposal of these securities may involve time-consuming negotiations and
expense, and prompt sale at an acceptable price may be difficult. At the
end of the period, restricted securities (excluding 144A issues) are shown
at the end of the Schedule of Investments.
K. Indexed Securities-The Fund may invest in indexed securities whose value is
linked either directly or indirectly to changes in foreign currencies,
interest rates, equities, indices, or other reference instruments. Indexed
securities may be more volatile than the reference instrument itself, but
any loss is limited to the amount of the original investment.
L. Securities Purchased on a When-Issued or Forward Commitment Basis-The
Fund may trade securities on a when-issued or forward commitment basis,
with payment and delivery scheduled for a future date. These transactions
are subject to market fluctuations and are subject to the risk that the
value at delivery may be more or less than the trade date purchase price.
Although the Fund will generally purchase these securities with the
intention of acquiring such securities, it may sell such securities before
the settlement date. These securities, if any, are identified on the
accompanying Schedule of Investments. The Fund has set aside sufficient
cash or liquid securities as collateral for these purchase commitments.
NOTE 2-RELATED PARTIES (SEE ALSO NOTE 8)
A I M Advisors, Inc. ("the Manager"), an indirect wholly-owned subsidiary of
AMVESCAP PLC, is the Fund's investment manager and INVESCO Asset Management Ltd.
is the Fund's investment sub-advisor. As of the close of business on May 29,
1998, Liechtenstein Global Trust AG ("LGT"), the former indirect parent
organization of Chancellor LGT Asset Management, Inc. ("Chancellor LGT")
consummated a purchase agreement with AMVESCAP PLC pursuant to which AMVESCAP
PLC acquired LGT's Asset Management Division, which included Chancellor LGT.
The Fund pays the Manager management fees, which are calculated and paid
monthly, at the annualized rate of 1.25% of the Fund's average weekly adjusted
net assets (which, for this purpose, means the average weekly value of the total
assets of the Fund, minus the sum of the accrued liabilities of the Fund, other
than borrowings used for investment purposes).
Princeton Administrators, L.P. ("Princeton") acts as administrator of the
Fund. The Fund pays administration fees to Princeton, calculated and paid
monthly, at the annualized rate of 0.20% of the Fund's average weekly adjusted
net assets. The Manager has voluntarily undertaken to reduce the fee to 0.15% of
the Fund's average weekly adjusted net assets through an annual reimbursement to
the Fund of 0.05% of the Fund's average weekly adjusted net assets.
NOTE 3-TRUSTEES' FEES
Trustees' fees represent remuneration paid or accrued to each trustee who is not
an "interested person" of AIM. The Trust may invest trustees' fees, if so
elected by a trustee, in mutual fund shares in accordance with a deferred
compensation plan.
NOTE 4-PURCHASES AND SALES OF SECURITIES
For the six months ended April 30, 1999, purchases and sales of investment
securities by the Fund, other than short-term investments, aggregated
$10,847,568 and $7,858,085, respectively. There were no purchases or sales of
U.S. government obligations by the Fund for the six months ended April 30, 1999.
12
<PAGE> 15
NOTE 5-CAPITAL SHARES
At April 30, 1999, there were an unlimited number of shares of beneficial
interest authorized, at $0.01 par value per share. 16,045,345 shares were issued
and 6,516,426 shares remained outstanding.
NOTE 6-ANNUAL REPURCHASE OFFER
Pursuant to the Fund's policy of conducting annual repurchase offers, on March
26, 1999, the Fund offered to repurchase up to 10% of the outstanding shares of
beneficial interest in the Fund. The repurchase offer expired on April 16, 1999
and the shares were repurchased at the Net Asset Value ("NAV") at the close of
regular trading on the New York Stock Exchange on April 30, 1999, less a
repurchase fee equal to 2% of the NAV per share.
The Fund's transfer agent, Boston Equiserve, indicated that 2,265,574 shares
were validly tendered and not withdrawn prior to the expiration of the Fund's
repurchase offer. The shares accepted for tender (651,644 shares representing
10%) received cash at a repurchase offer price of $7.80, which was equal to the
Fund's net asset value of $7.96 as of April 30, 1999, less the repurchase fee.
After the repurchase offer, the Fund has approximately 5.9 million shares
outstanding; 651,644 shares were returned to the Fund's Treasury.
NOTE 7-LINE OF CREDIT
The Fund, along with certain other funds advised and/or administered by the
Manager, has a line of credit with each of BankBoston and State Street Bank &
Trust Company. The arrangements with the banks allow the Fund and certain other
funds to borrow an aggregate maximum amount of $250,000,000. The Fund is limited
to borrowing up to 33 1/3% of the value of each Fund's total assets. On April
30, 1999, the Fund had no loans outstanding.
Effective May 28, 1999, the above line of credit was superseded by the Fund's
participation in a committed line of credit facility with a syndicate
administered by The Chase Manhattan Bank. The Fund may borrow up to the lesser
of (i) $975,000,000 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. 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 8-SUBSEQUENT EVENT
The Board of Trustees of the Fund unanimously approved, on May 13, 1999, an
Agreement and Plan of Reorganization and Termination ("Plan") pursuant to which
the Fund would transfer substantially all its assets to AIM Developing Markets
Fund ("Developing Markets Fund"). As a result of the transaction, shareholders
of the Fund would receive Class A shares of Developing Markets Fund in exchange
for their shares of the Fund, and the Fund would cease operations.
The Plan requires the approval of the Fund's shareholders and will be submitted
to the shareholders for their consideration at a meeting to be held in August
1999. If the Plan is approved by shareholders of the Fund and certain conditions
required by the Plan are satisfied, the transaction is expected to become
effective before the end of August 1999.
13
<PAGE> 16
NOTE 9-FINANCIAL HIGHLIGHTS
Contained below is per share operating performance data for a Fund share
outstanding, total investment return, ratios and supplemental data. This
information has been derived from information provided in the financial
statements and market price data for the shares.
<TABLE>
<CAPTION>
YEAR ENDED OCTOBER 31,
SIX MONTHS ENDED -------------------------------------------------------------------
APRIL 30, 1999 1998 1997 1996 1995 1994
---------------- ------- -------- -------- -------- --------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
year $ 7.23 $ 18.62 $ 16.92 $ 14.75 $ 15.37 $ 14.07
- -------------------------------- ------- ------- -------- -------- -------- --------
Income from investment
operations:
Net investment income (loss) (0.01) (0.01) -- 0.24 0.11 0.02
- -------------------------------- ------- ------- -------- -------- -------- --------
Net realized and unrealized
gain (loss) on investments 0.74 (7.22) 3.57 2.11 (0.38) 1.52
- -------------------------------- ------- ------- -------- -------- -------- --------
Net increase (decrease)
from investment
operations 0.73 (7.23) 3.57 2.35 (0.27) 1.54
- -------------------------------- ------- ------- -------- -------- -------- --------
Distributions to shareholders
from:
Net investment income -- -- (0.07) (0.12) (0.02) (0.12)
- -------------------------------- ------- ------- -------- -------- -------- --------
Net realized gain on
investments -- (4.15) (1.80) (0.06) (0.33) (0.12)
- -------------------------------- ------- ------- -------- -------- -------- --------
In excess of net realized
gain on investments -- (0.01) -- -- -- --
- -------------------------------- ------- ------- -------- -------- -------- --------
Total distributions -- (4.16) (1.87) (0.18) (0.35) (0.24)
- -------------------------------- ------- ------- -------- -------- -------- --------
Net asset value, end of period $ 7.96 $ 7.23 $ 18.62 $ 16.92 $ 14.75 $ 15.37
================================ ======= ======= ======== ======== ======== ========
Market value, end of period $ 6.31 $ 5.81 $ 16.38 $ 13.75 $ 12.75 $ 13.00
================================ ======= ======= ======== ======== ======== ========
Total return (based on market
value) 8.60%(a) (52.79)% 35.81% 9.35% 0.73% (7.25)%
================================ ======= ======= ======== ======== ======== ========
Ratios and supplemental data:
Net assets, end of period (in
000's) $46,692 $47,100 $127,723 $122,204 $236,698 $246,610
================================ ======= ======= ======== ======== ======== ========
Ratio of net investment income
(loss) to average net assets:
================================ ======= ======= ======== ======== ======== ========
With expense reimbursement
(Note 2) (0.35)%(b) (0.12)% (0.02)% 1.09% 0.80% 0.15%
================================ ======= ======= ======== ======== ======== ========
Without expense reimbursement (0.40)%(b) (0.17)% N/A N/A N/A N/A
- -------------------------------- ------- ------- -------- -------- -------- --------
Ratio of expenses to average
net assets:
With expense reimbursement
(Note 2) 1.99%(b) 1.78% 1.88% 1.87% 1.79% 1.87%
================================ ======= ======= ======== ======== ======== ========
Without expense reimbursement 2.04%(b) 1.83% N/A N/A N/A N/A
- -------------------------------- ------- ------- -------- -------- -------- --------
Portfolio turnover rate 20% 70% 95% 69% 57% 65%
================================ ======= ======= ======== ======== ======== ========
</TABLE>
(a) Not annualized.
(b) Ratios are annualized and based on average net assets of $49,642,333.
N/A Not Applicable.
The accompanying notes are an integral part of the financial statements.
14
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